Show SITUATION lION lIONIS 1 IS SERIOUS if Many any Difficulties Confront Administration of Cuban Cuban Cuban Cu Cu- ban Government POOR MANAGEMENT OF NATIONAL FUNDS FUNDS' island Government Spends I i Money Honey Without Reference Reference Refert Refer- Refer t ence to Income SY FREDERIC DERIO J. J HASKIN HAVANA JIMANA A Cuba a May 11 One One of ot moat serious of If the many difficulties ties lir J confronting the island of C Cuba ba is is 15 financial situation What Whatever Ter may miLy a d jn in n favor or of Cubas Cuba's ability to itself it ft must be admitted that I rf n i I that management of the national inin cs the tho administration tion in power ay r ry y has not ot been an au unexampled cess The fact of tho matter i that t Jw uban government ha handles it its t n l Cs about bo t like a boy bo- boat at the age Men n n. his 1115 ex expenditures aro limited only hi bis ability to contract debts debt Like If 0 Cuba has shown a disposition to l t itself to expenditures With without t f reference to the condition of the ury or the prospective c income of 1 go cut The foe American minister In Havana vana ana n tho state depa department department- in aro trin to to i induce duce e Cuba Guba to to fol fol- w those thoe sound o nd principles principles' of finance I kich idi base IJas expenditures on on income t efforts is' is of tho Uni United d States itIs t this is direction have not be been beI I re- re ed In tn n many any quarters in Cn Cuba a. a is is a which wh ch becomes t o obvious almost as asla as asas 1 la as the tho iu iU investigator estimator ator lands and in Ha HaNot Not those theo elfo efforts ft only aro are un- un but tho they ha met with tho government ov tru true that in iu some sonic of the thc n or j forms of f extra 3 z n has T ir ifa l recognition co of or r the e ita jor of r the te state department ment 3 as for r Q cc r. r in itu in the CA case care of the tbt proposed ed d 1000 subsidy id for or L a i r railroad in th the tho tern teru era end od of the island Th Cuban ole foe fe already Ite dr had bad parsed th thA m neurn pi the tho words word of ed of admonition n from jn t n reached ed On Ca n tho the 51 r hand the president since that thai I if f. a J for a an n appropriation n of for th tb the of sew sew- ewel ew- ew I ge el and sanit sanitation Work T in Havana naVaDa c is f th the senate has passed a bill hiJI y enacted by t lie h house u lating 1 J for forthe th ext extension sion famous gea seaside drive in In Havana O n a as t tho H MAlecon All MI r critics ti R Re e that were Cuban fin finances nc in In od shapo tn this extension would bo ho do do- dorable ruble rable but few fc Amor Cans feel fee that ider der pre pres ut it is is warrant warrant- ill U Likewise the Cuban government nt hi tH its herpes mu must be d wl with h expensive e monuments cven even though ther i j not n money ono enough h in the tr treas treasury as ury ff T to ml meet t the outstanding vouchers Hard to Gc Get Truth Too truth about the financial situation situ in in Cuba is ie hard bard to ascertain In If act no on one knows exact exactly the present statue statu I of the government No Noe e can An Pet It c t ft l balance sheet of the c gov ov- ov v t s o prati u and ind the tho government govern govern- ment eat ent itself Jf- Jf dreading to see the re one one such a statement would make states dates to one The principal if it by tl the tte minority in iu congress ring rin the government to its knees knees' B is il innocent little resolution providing pro an n iDe ti ton of the finance es of ot e Gomez Gorm administration tion Some time r co President Gomez professing Biu that u c could not think of becoming a can can- for cor re election came rame out in a on Governor Go Asbert Tm Tm- hereafter Vice Tice President as ha had a resolution introduced i in 1 ie e Cuban ton congress r s providing pro for an em of the financial opera opera- q one of ot President nt Gomez This on was aa 84 referred to a eom committee It end nd aeo operated d upon the mind of the ban president that bo ho immediately throw hi bis support from Governor Go ibert short A little later after Gomez o. o made mad his peace with Zayas a m er or tho house made some point point- inq iriel about tb the status of ot tb the in in- t a. a ioni and again the more mere eug- eug w of pressing tho the resolution won r him the point be bad had ur ed mus not he be supposed from al all of IB ia that the warning of the United at ate ales a agai against a extravagance on the the Cuban government KO bore no uit- uit It The very fame ame day that it was wa Unc ne d that t the senate had bed passed parsed o C bill Dili 1 for 0 of f the te Malecon an an- un cement m nt w wa also alro made mane that the had ad sed tho the dent of the hospital for the jn inanc t G would have ha to cut dw down tho the Continued on I page Rire V FINANCIAL SITUATION IS IS' SERIOUS Continued from page paJO 1 t allowance e for the support of of th the tho in in in- pane Eane from 22 22 to 14 cents a 3 a da day President President Pres Pres- President ident Taft in his letter Jetter to the Uie Cuban minister denin denying that tho the United States was contemplating a a. third intervention intervention in in- in declared that the government govern govern- ment moat of the United States asan aan act of ot friendship has hns indicated where here dangers danger are and has baa adopted what wen well bat has nas been called a preventive pre policy that thatis is a policy which consist consists in doing all within its ih power to avoid every reason Teason that w would uld make intervention p possible at Rt any ti time In spite pite of this advice of marking the places where danger is isto isto isto to be found Cuba Cub continues to to skate kate upon tho the thin ice of financial Tax 12 Per er Capita How Bow heavily the burden of this mismanagement mis management falls upon the people may be shown hown from the statement that whereas the United Stat States collects about 3 per capita in customs duties the Cuban collections amount to about 12 per capita Even Evon this does docs not 8 suf su- su fice fico to meet the expenditures of the government nt and a a. new double standard standard stand stand- ard tariff is iSI bein being pr proposed posed to add revenues rev ounce to tho the treasury This Thin now new ow tariff would levy bevy an additional 30 30 per percent ce cent duty duty a against the products of alt all nations nation L tr trade de balance against Cuba It Itis IS said that during the four years of tho Gomez administration the Cuban government o win will have expended in the nei neighborhood of and much of this money has not gone into its Us proper channels While substantial public improvements have bave b been en made they are said to have cost entirely too much Some idea idoa of how financial matters are handled in Cub Cuba may be gathered from a n statement as to the disposal of some old iron by the tho gov gay government Bids were called for the tho sale of this old material and the highest bid received was a a. ton for both bronze and iron Tho The contract was awarded at that price The Cuban press thereupon made char charges es of ot graft and th the president rescinded the contract contract con tract which had already been signed Later bids bide were again asked for and aud an American bid for the iron iron and a ton for the bronze A local newspaper charged cd several weeks a ago that notwithstanding this high bid the American would not get Jet the contract because he h had d refused to divide profits profit Government in Trouble The government is just now norr in rather serious difficulty culty over the claims ns of Great Britain Germany and France Prance growing rowin out of money furnished by bJ financiers of ot those countries to the Cubans Cubans Cu Cu- bans in their fi fight ht for liberty Cuba refused to reco recognize nize their claims until the three governments would act in conjunction This joint account was taken and Cuba wa was asked to refer the matter to the Hague tribunal This it refused to do and arid asked that it be submitted to the toe president of the United States for arbitration Now Tow Cuba wants a a. sort of joint commission established for the special purpose of ot passing upon these claims Another of Cubas Cuba's financial difficulties grows rows out of the pay of those soldiers who rho hadnot had hadnot hadnot not been beon reimbursed d for their services ser durin during Cubas Cuba's struggle le for or freedom Jn After waiting for fourteen years for his bis pa pay Geneal brought suit in the Cuban courts for and the supreme court awarded him the full amount It is is estimated that the thc total claims similar to that of General Yvon net will amount to anywhere from three to fourteen million dollars A loan Joan of was ns effected some somo years ago for the tho payment of tho the soldiers Man Many were unable to get their documentary proof iu ill iii proper form before tho the list closed These are arc the thc men whoso claims claim have havo been approved by the Cu Cuban ii- ii ban courts In his campaign for election election elec elec- tion General Gomez mn made e the payment t. t of the y veterans one of tho the planks s of his platform Later r lie he excused himself from making them b by ertin as asserting that tho the American government o under tinder the Platt Piatt amendment would not allow the time hur burden en ento to be bl imposed on the lbS treasury Valuable concessions It is generally agreed that a J. J number of concessions granted by bJ the present government o will mean great fortunes to those who possess them P Perhaps the thc most moat valuable of these is is the concession for the of the harbors harbou of or the island In return for their t ork in deepening the harbors the Campania de IC Puerto Puertos is is to receive a toll talI of SO 80 cents per ton on merchandise from tho United States and 1 a ton on ou that from other countries entering the ports of Havana Hn with t a flat r rate tc of 10 cents a ton on coal Tho The value of this concession ma may bo ho ima imagined ined from tIlE time fa fact t that shares of stock which cost COt absolutely ly nothing ar are now s selling at from 60 to 70 A loan Joan of was promptly negotiated this serves c as as th the working capital of the concessionaires Tomorrow CARIBBEAN POLITICS IX ww wm Cuba Avert AVet Intervention |