Show II I I TAXATION IN ISLANDS Gov Taft Explains the Present Pres-ent System PLANS OF THE COMMISSION j i I No Internal Method of Taxing People for Support of General Government of the Islands A Poll Tax of One I Dollar Per Red Had Been Decided Upon for Adult Males but to Apply It Only to Paying Governmental Expenses of Towns and Provinces J i tie Archipelago Washington Feb 6GOV Taft appeared I ap-peared before tho Senate Committee today with the intention on the Philippines ton lon oC taking up the Philippines tariff bill and of devotlnfj his attention and tariff conditions of to the revenue trif conditons islands but before beginning tho Philippine Islund lut I to > ginning with the subject he replied a number of questions by Senator Carmack bearing upon subjects here In his tofore covered by the Governor testimony before the committee NOT OPPOSED TO U S Mr Cormack quoted from the report bf Gen ilacArthur of 1900 to tho effect ef-fect that there is substantial unity among the Filipino people In their opposition op-position to the United States ReplyIng Reply-Ing Gov Taft said the commission r had not originally accepted the Generals li Gen-erals conclusions and that the commissions I com-missions tour of the archipelago had tr convinced them they were correct in I their conclusion Originally the people I peo-ple of the Philippine Islands wore p1 oc I much aroused I doubt not he mousec but the opposition does not continue In its general aspect as-pect contnuc the second election f of President McKInley the great majority I ma-jority of the people of the Philippines Philip-pines have been favorable to peace ilncs of the sovereignty h and to tho acceptance eignty of the United States and it I would be Impossible to continue the j present system of guerrilla warfare I without the system of t6rrorlsm which now prevails That is my conclusion I and In s far as the statement differs from Gen MacArthurs report to that extent I differ from him I Gov Taft also said that he differed G Gen BeJl on the point of tho general desire of the inhabitants to 1 maintain hostilities in Batangas lie did not bcneve the common people felt GO inclined QUESTION OF TARIFF r Taking up the question or the tariff r Gov Taft explained tho present system I sys-tem of taxation in the Philippines saying I say-ing that under the decision of the Supreme Su-preme court no duties are now being collected on articles going Into the islands from the United States The plan of the commission had been to h have no internal system of taxation t for tho support of the general government l govern-ment of these Islands Under the Spanish ij Span-ish system there was a general poll tax J which netted about 7000000 while the receipts from the customs were only V I about 5000000 Even children wore t I taxed under that system thd Spanish I Span-ish rule there was also n tax upon business bus-iness enterprises and that system hod been continued ton extent by the i commission POLL TAX ON ADULT MALES i P The commission also had decided to maintain the poll tax > to the extent of j SI per head on adult males but to apply it only topa ing the governmental expenses ex-penses of the towns and the provinces I The people of the Islands had generally t urged the imposition of the poll tax of their i as necessary to get some numbers to work Under the Spanish regime the plan had been used to enforce I en-force a sort of slavery 1 t i NO LAND TAX IN ISLES t Gov Taft said there had never been i a land tax in the Islands and he attributed at-tributed this immunity to the influence influ-ence of the Friars who had large holdings I hold-ings and to the owners of large hal ha-l ciendas The commission had Imposed I a land taX There had been opposition to the system but this was dlsnpp ring 1 r-ing The income from this tux would be small for a time because of the fact due to the retarded development of the country that only 5000000 of the 65000000 acres of the agricultural lands S in the Philippines IB held by private t owrcraHOMESTEAD c HOMESTEAD SYSTEM Replying to inquiries by Senator Pat toraon the witness said the Spaniards Fj f had a method for acquiring Govern meet lands similar to our homestead Li system but Advantage had not been taken of it because of the It becue oC complications complica-tions of the Spanish methods He also said thoro had I been much fraud Inland In-land matters and ho urged that in urg i whatever regulations should b made jf for the disposal of the public lands of l the Philippines the rights of squatters 1 should bt J rccosnlzcd TAXABLE PROPERTY IN MANILA i Judge Taft said that the assessable it I taxable property in Manila would not M t exceed 30OOOOQO This he added S would not exceed onesixteenth of the valuation of the American cities of the b t same size and yet Manila would require re-quire a far larger expenditure than 3 would an American city of the same class One considerable item of ex posse for administration there would jv be that of maintaining sanitary conditions n condi-tions It was necessary at all times to guard against the plague and there I are from 15000 to 20000 lepers In the entire archipelago These conditions he explained rendered it necessary for I the central Government to bear part tnent of the expense of municipal Govern r ment GENERAL TAXATION I Taking up the subject of general tax gneral allen he aId the commission is j malt ing an effort t make the customs i tariff the only source of revenue and while ho said we should be glad to have free trade with the United j States In order to Insure the progress I t prgHa 1 or agriculture we cannot but feel that r if i 1 Is J lair to collect a tariff on goods gds coming Into the Phlllpines from the i United States It Is only fair to provide J pro-vide for tariff on Philippine articles coming Into the United State arlces CUSTOMS TAX NECESSARY In our Judgment the customs tax cUstn1 t 13 absolutely necessary aa the Govern ment could not be supported by direct I taxation Of course If there were no customs collection on goods coming r rront tho United States the cmin I would b to nullify all tariff rollM tlons a practically al the importa it tions into the Philippines Imprtn from tho United States or from Spain I i which would also be given free trade I under the peace treaty gen Ho said that the tariff adopted bj tho commission in a specific duty i amounting to from 15 to 3G nOr cent reduced to o ad valorem system and p tat L tho effort had been to place the Higher tariff on luxuries and the lower t on necessities thu reversing the Span Ish sistem rverng sistemDUTY i DUTY ON HESEP Replying to a question from Senator queslon fm JLxriKO as to the effect of the removal of tho export duty o hemp remova Xoted from the Philippines Gov Taft fcaid PhIppines that nothing could be done to change b thlt nothlns the conditions In that respect We can ondlJonsln hemp we can raise he sel The effect of the provision would be greater on sugar I apprehend appre-hend that the anxiety of foreigners to secure the hemp product of tho Philippines cule has led to the furnishing of much of the sinews of the war in the Philippines Explaining the reason for the adoption adop-tion of specific system Gov Taft said ton had been done In order to save both time and expense Wherever Chinamen are found he added smuggling is a fine arL INTERESTS OF ISLJ NDS In reply to a question from Senator Culberson concerning the effect of placing a lower tariff on American imports from the Philippines than upon Philippine exports from the United States Gov Taft explained that the commission had devoted no time to the Dlnglcy tariff law We were looking solely after the interests Inter-ests of the Philippines he said and It is true that the lower we get dues on our goods shipped to the United Slate the more trade will be developed SENTIMENTAL REASONS In this connection Senator Paterson cnnccton son reminded the witness that ho had In his report recommended a reduction i of 50 per cent and asked why such Q reduction had been suggested Gov Taft replied HI a bound to say that TaC at present our principal reason for asking a reduction Is sentimental Tho reducton effect of a reduction of 50 or even 75 fcct cent on Philippine Imports into the United States would not be great for the next few years and any concession con-cession of that character w6uld be beneficial In our dealing with the people peo-ple in the Philippines I wecnnsp back to them and say that Congress has recognized them in this they will appreciate the discrimination In their favor Such n course on the part of Congress would be a rent aid in givIng giv-Ing them assurance of the frIendly feeling feel-Ing of the American people EFFECT OF REDUCTION The exact effect of such a reduction is difficult to estimate Tobacco would be benefltted somewhat as would sugar sug-ar the product of this latter article amounting to about 175000 to 200000 tons annually But I am assured by the planters that the benefit of the proposed pro-posed reduction would not be great in actual money saving Asked to explain the statement in his report that the reduction would cause commerce with the Islands to Increase by leaps and bounds Gov Taft replied That Is a theoretical expression ex-pression but wo want the reduction very much I |