Two Years' Legislation in Porto Rico: The Work of the First Legislative Assembly of Porto Rico, 1900-1902

THE problem of endowing our newly acquired insular possessions with political institutions and systems of law at once conforming to American ideals of individual liberty and political justice, and yet adapted to the peculiar conditions in each island and the character of its inhabitants, constitutes one of the greatest of the many responsibilities now resting upon the American people. Of the various possessions to which this problem relates Porto Rico occupies an unique position from the fact that it is the first of the possessions coming to us from Spain to be granted a civil government and a considerable measure of local autonomy. It is in this island, then, that the United States is really making its first essay in the field of governing a dependency. The capacity of the United States to govern another people may be said there to be on trial. More than this, it is certain that the results there actually accomplished will exercise a profound influence upon the management of affairs in our other possessions. If the policies pursued in Porto Rico meet with success, they will undoubtedly be used as a guide for action elsewhere. Everything, therefore, that is done in Porto Rico in the way of working out the problem of government and administration assumes an interest and importance to the whole United States almost as great as to Porto Rico itself.

Civil government was organized in Porto Rico on May 1, 1900. Its constitution is found in the so-called “ Foraker Act,” approved by Congress April 12, 1900, which provides the Organic Act under which civil government is established on the island. This act did little more than set forth the bare outlines of a scheme of central government, leaving to the Porto Ricans its subsequent elaboration. Briefly, the act provided that the government of the island should be administered by a Governor and six chiefs of executive departments known as the Secretary, the Attorney-General, the Treasurer, the Auditor, the Commissioner of the Interior, and the Commissioner of Education, all appointed by the President with the advice and consent of the Senate. The exercise of legislative powers was vested in a Legislative Assembly consisting of an Executive Council, or upper house, and a House of Delegates, or lower house. The Executive Council was composed of eleven members, — the six chiefs of executive departments already named, and five others, citizens of Porto Rico, appointed by the President. The House of Delegates was made to consist of thirty-five members, to be elected by the people of Porto Rico. The Governor was given the usual power of veto of legislation, while Congress remained the final authority with full power to legislate regarding the affairs of the island in any particular.

While Congress thus provided for a form of insular government, it made almost no provision regarding the fundamental laws that should regulate Porto Rican affairs. The greatest freedom was given to the newly constituted government to work out the great problems of revenue, of education, of public works, of local government, and, in fact, of practically every question requiring the exercise of governmental authority. A great responsibility was thus thrown upon the persons entrusted with the administration of affairs in the island. Whether the bestowal of so large a measure of independent government was or was not a wise act would be determined according to the way in which the great powers entrusted to those in authority were exercised by them. The two sessions of the first Legislative Assembly have now been held, the first sitting for sixty days in the months of December, 1900, and January, 1901, and the second during the months of January and February, 1902, and it is a matter of no little interest to attempt to sum up the manner in which it has performed its novel duties and the extent to which it has met the great responsibilities thrown upon it.

Properly to appreciate the work of these two sessions it is necessary to understand something of the conditions under which the law-makers worked. As the Legislative Assembly of Porto Rico is organized, the American members of the government, constituting a majority of the Executive Council, are able to control the action of that body. The lower house is composed entirely of representatives elected by the people of Porto Rico, and, therefore, represents the will of the island in respect to all matters. The consequence of this condition of affairs is that though the Executive Council and the Governor through his power of veto can prevent legislation which they believe to be undesirable, they cannot secure legislation that they may desire without the consent of the lower house. Any measure to become a law must, therefore, meet with the approval of both the representatives of the United States and of Porto Rico.

Generally speaking, the essential point of difference between the two bodies is that of location of power in the central or insular government, or in the local or municipal governments. The American representatives feel the necessity for exercising a considerable degree of control for some years to come, and this control they can only exercise through the insular government. The Porto Ricans, however, almost without exception, are demanding a greater voice in affairs, and as they absolutely control local government in the island they desire to have governmental duties and functions as far as possible made municipal functions. This essential difference in the positions of the American and the Porto Rican representatives in the Assembly must always be borne in mind in the framing of any policy affecting the political institutions of the country. Not a measure can be brought forward, whether regarding the organization of a system of taxation, of a public health service, of the regulation of industry, or what not, but that it is subjected to the closest scrutiny of the House of Delegates with a view to determining if its administration cannot be entrusted to the local authorities.

When the first Legislative Assembly convened on December 1, 1900, it had before it several imperative tasks for accomplishment. The first and most important of these was probably that of providing a revenue law. The system for the raising of revenue which had existed under the Spanish régime had been slightly modified by certain general orders issued by the military authorities, but even in its modified form, was of a character so inequitable to individual taxpayers, and so inefficient in the methods of its administration, that its continuance could not for a moment be contemplated. The urgency of devising a new revenue system for the island had already been recognized by the War Department, and the President had sent a special commissioner, Dr. J. H. Hollander, a trained economist, to visit the island and report upon the steps that should be taken for reorganizing its finances. Upon the inauguration of civil government the wise step was taken by the President of appointing this special commissioner to the important office of Treasurer of the island. The man best fitted for the task was thus put in a position where he could exercise a direct influence in having the plans which he deemed desirable adopted. Dr. Hollander, before the meeting of the legislature, had carefully drawn up a revenue act providing for a fiscal system closely following American practice in taxation. This system was embodied in a bill and promptly introduced into the legislature. It immediately met with intense hostility on the part of the Porto Ricans, because it contemplated the shifting of the burdens of taxation to the owners of property, — to whom such burdens properly belong. In spite of this hostility the act was finally passed, with slight modifications, and became the law under which the insular government now obtains its revenue.

Though this act has been in operation but little over a year, it has vindicated the claims of its author, and those who were its strongest opponents are now among its greatest admirers. It provided that the insular revenue should be obtained from the following sources: (1) excise and license taxes upon the manufacture and sale of liquors and tobacco in their various forms, and upon certain classes of commercial papers; (2) a general property tax upon all real and personal property, with certain liberal exemptions, of one half of one per cent; (3) a tax upon inheritances ; and (4) certain miscellaneous imposts of minor importance. In addition to the proceeds of these taxes, it should be stated that Congress had provided with great liberality that the net receipts from all customs duties collected in Porto Rico on foreign importations should be turned over to the insular treasury. The act, furthermore, made elaborate provision for carrying out the assessment of property on the island for purposes of taxation. This in itself was a stupendous task, and, considering the short time that was available for its performance, was in the main successfully carried through. This was the first great accomplishment of the first session of the legislature.

The reputation of this assembly for ability to transact business does not, however, rest wholly upon the enactment of this law. One of the distinct pledges of the American government was to provide an adequate system of public schools. This work had already been begun and notable results accomplished under the administration of the military authorities. That this work, however, might be systematized and made a permanent undertaking there was required a fundamental school law. A bill providing for such a law was drafted by the Commissioner of Education, and was duly enacted. It outlines a scheme of public instruction comparable to that which exists in many of the American states, and its workings thus far have given great satisfaction. Under it local school boards have been created all over the island ; the municipalities have been required to devote a certain percentage of their income to school purposes ; schools have been established in all important centres, and their work has been received with great enthusiasm by all classes of the population. In addition to this general educational law special acts were passed providing for the sending of twenty young men and women to the United States at the expense of the insular government, — to be educated in the various arts and trades best qualifying them to assist in the improvement of conditions in Porto Rico, — and a further number of young men to pursue advanced studies, for a period not to exceed five years, in such subjects as the Legislative Assembly and the Commissioner of Education should determine. An annual appropriation of fifteen thousand dollars was made for carrying out the provisions of these two acts.

Among other laws going to the very basis of the legal constitution of the island that met with successful action at this first session was a law introducing trial by jury. This act was drawn with great care by the present Governor of Porto Rico, Honorable William H. Hunt, who then held the office of Secretary. Another law provided for the creation and maintenance of an insular police force. This was an imperative necessity, as many of the municipalities did not possess financial resources permitting them to maintain a police force on a proper basis. It also gave to the insular authorities a body of men through whom order could be maintained throughout the island, of which there was great need.

Other important acts were those providing for the organization of police courts throughout the island of Porto Rico, for the abolition of the board of charities, and the creation of the new office of director of charities, the creation of the office of director of prisons and the determination of his powers and duties, the establishment of a penitentiary, the condemnation and use of lands for cemetery purposes, and, finally, an act authorizing the larger municipalities of the island to incur bonded indebtedness to an extent not exceeding in any one case seven per cent of the total value of the property of such municipalities for purposes of taxation, the proceeds of which were to be devoted to the making of urgent public improvements. Under this act a number of the municipalities have already successfully floated issues of bonds at or above par, and a beginning in the application of the sums thus realized has been made.

The second session of the legislature was productive of even more important results. It assembled with the great advantage of the experience gained in the preceding session. The members of both houses had become familiar with parliamentary procedure, committee work, and the drafting of bills, and it was thus able to accomplish within the sixty days, which constitutes the maximum length of the session permitted under the Organic Act, a much greater volume of work.

While the first session accomplished the fundamental task of providing a revenue and a school system for the island, the second session performed the equally important work of definitely adopting a series of codes covering the more important branches of law, and of thoroughly reorganizing the entire system of local government. In addition to this work a large number of very important laws were also enacted.

Prior to the organization of civil government on the island, the Secretary of War had appointed a special commission to prepare codes relating to these different branches of law. This commission went out of existence with the organization of civil government, but one of the first acts of the first Legislative Assembly was to provide for a new commission to continue the work of the old. This commission completed its labors shortly before the assembling of the second session of the Legislative Assembly, and promptly upon the convening of the latter laid before it drafts of a penal code, a code of criminal procedure, a civil code, and a political code. Both houses of the legislature went over these proposed codes with great care, examining each feature in detail, and as a result made important changes, most or all of which were undoubtedly in the line of betterment. The improvement that will be brought about by the adoption of these codes cannot well be overestimated. Owing to the change of government, — first from the Spanish to the United States military authorities, and then from the military to the civil authorities, — there had inevitably arisen uncertainty regarding the laws in force, and many of the laws that the civil government received as a legacy from prior governments were framed on principles so contrary to American practice that the substitution of other laws for them was extremely desirable. With these four codes duly enacted Porto Rico will now be able to continue her advancement under a system of law closely in accord with American practice and principle.

Second only in far-reaching effect to the enactment of these codes should be reckoned the important action taken by the Legislative Assembly for the reorganization of the whole system of local government upon the island. The Organic Act related only to the provision of a scheme of central government for the island, and contained no provision whatever regarding municipal affairs, local government being thus allowed to continue in practically the same form as under the Spanish régime. Without entering into details, it may be said that this system presented almost every defect that it would seem a local government could well present. Authority and responsibility were not definitely located ; the form of government was on a scale far more expensive than the resources of the municipalities could afford ; public office was administered as a means of gratifying private ends rather than the public good ; extravagance and misdirection in the expenditure of municipal funds were prevalent, but a small part of the public revenues being spent for public improvements, while the majority went for the payment of excessive salaries, or for the salaries of useless officers ; the obligations of the municipalities were persistently disregarded, and many of them were burdened with obligations the results of deficits running back a number of years, and which they were wholly unable to pay; discriminations of the most unfair character were made between taxpayers, some being greatly overburdened, while others standing in the favor of those in authority were practically exempt from taxation ; and, finally, there existed a hopelessly complicated system for regulating the relations that existed between the insular government and the local governments.

The defects of this system were both in organization and in administration. As regards organization the chief points of criticism were: the excessive number of local divisions into which the island was divided ; the unsatisfactory relations which existed between the governments of these districts and the central government ; and the entrusting of both legislative and executive powers to the same set of individuals within the municipality, thus making it possible in certain cases for one man or a few men absolutely to control the government.

This small island was divided into sixty-six local divisions called municipalities, each of which was endowed with a scheme of government fitted for a large city, though many comprehended only sparsely settled rural districts. An obvious measure of reform, therefore, consisted in the reduction of the number of these municipalities. This was accomplished by a special act, which provided for the consolidation of twenty-one of the weaker municipalities with the remaining stronger ones, leaving the island divided into forty-five instead of sixtysix separate local divisions. It is doubtful whether this consolidation went far enough, but it was believed to be as radical a measure as was advisable at the present time.

Nothing short of a complete reorganization of the scheme of government could meet the other two evils. A bill was therefore carefully prepared providing a new scheme of local government for the island, and after receiving some amendment was duly enacted. The general principles upon which this act is framed are the following : —

In the first place a complete change is made from the old system — whereby, as has been said, legislative and executive powers were exercised by the same parties — to one where they are rigidly divorced. This is accomplished by providing that the mayor of a municipality shall no longer be the president of the municipal council, as under the old system, and by providing that all appointments with the exception of that of comptroller, whose essential functions are those of checking the administration of finances by the executive, shall be taken away from the council, where they formerly rested, and be given to the mayor.

There is an equally complete change in the manner in which the insular government will exercise its control over the administration of affairs in the municipalities. The old system required the local authorities to get an authorization or permit before they could take any step of importance. This, while apparently giving to the central government a very great power over local affairs, in practice resulted frequently only in vexatious interference. The central government was utterly unable to pass upon the wisdom of every proposal brought before it, and the fact that the local authorities had to secure such authorization weakened to a very great extent their own sense of responsibility. The new system is framed upon the theory of frankly entrusting to the local authorities original power to act within their jurisdiction regarding local affairs without intervention on the part of the central government so long as they act in a legal and just manner. Should, however, the local authorities be guilty of action contrary to law or working injustice between individual citizens, the central government has then full power to intervene on appeal being made to it, or on the matter coming to its attention in any way. Considerable apprehension has been expressed regarding the wisdom of thus entrusting the management of affairs to the local authorities, but it is evident that if a beginning is ever to be made in the building up of responsible local self-government in Porto Rico it must be by giving to the local authorities the power of independent action so long as this power is not abused.

The third important principle involved in the new law is that in respect to the authority of the insular government as exercised through the Treasurer over the management of the financial affairs by the municipalities. The act as framed gives to the Treasurer full power to prescribe the manner and form in which municipalities shall keep their accounts, deposit all moneys, audit all claims, et cetera; to require such reports from municipal treasurers and comptrollers as he deems fit; and, finally, and most important of all, to have their accounts inspected at any time by examiners especially appointed by him for this purpose. Under these provisions it will now be possible for the Treasurer of the island to require all of the municipalities to keep their books according to an uniform system and in accordance with the most approved rules of public accounting. He will also be able to keep himself informed of exactly how the affairs are being administered, whether irregularity or dishonesty exists, and to bring about the prompt removal and punishment of offenders. It is hardly necessary to comment upon the tremendous significance of these powers in bringing good local government to the island.

Another very important feature of the bill relating to municipal finances is that which provides that if any municipality fails to make adequate provision in its budget for any fiscal year for the meeting of any deficit resulting from the operation of prior years, or of expenditures for which it is obligated in consequence of contracts already entered into, or of all payments imposed upon it by the laws of Porto Rico, or of all payments on account of final judgments rendered against it by any competent tribunal, its budget for the next fiscal year shall not become effective until it has been submitted to and duly approved by the Treasurer of Porto Rico, and that officer is given full power to make such changes in the budget in the way of eliminating or reducing items of expenditure, or in raising the rates of the proposed taxes, that he deems necessary. It will be observed that according to this provision municipalities are to be treated exactly as are ordinary corporations. Within the limits of their charters they are allowed full freedom of action as long as they meet all of their legal obligations, but as soon as they default in any respect the state steps in — in one case by the intervention of the Treasurer, and in the other by the appointment of a receiver under the authority of the courts — to manage the affairs of the defaulting corporation until all legal requirements have been complied with. There are a great many other features of this bill which are of interest, but limitations of space prevent us from entering into further details.

Mention has been made that one of the defects of the old system was that municipalities utterly failed to perform a number of the most important duties properly falling to local governments, the revenues instead being expended upon extravagant salaries or the remuneration of useless officers. This failure was especially apparent in respect to the maintenance of public schools and the opening and improvement of local highways. To correct this evil two special laws were passed: the one provides that each municipality shall devote a certain proportion of its income to the constitution of a school fund, to be used in promoting public education in conjunction with the expenditures for the same purpose made by the insular government; the other divides the island into a number of road districts, and provides that not less than twentyfive per cent of the income derived from the tax upon real estate situated in the rural districts shall be carried to a road improvement fund, to be exclusively expended for the betterment of local roads. The insular government, as is well known, has already done a great deal in the way of the construction of main thoroughfares, and is still devoting large sums to the working out of a comprehensive system of public trunk highways. This work would fail of accomplishing the results desired unless improved local roads, to act as feeders, were constructed by the municipal authorities. With this act in practical operation Porto Rico will in time be given a system of improved highways of which many states in the Union might well be envious.

Another matter in respect to the municipalities urgently requiring action was that of making some provision regarding the heavy floating debt with which they were burdened. An act was accordingly passed which provides that each municipality having a floating indebtedness may issue certificates of indebtedness in liquidation of all claims against it due and unpaid on July 1,1902, which certificates shall bear interest at the rate of three per cent and be retired in five annual installments.

All of these acts that have been mentioned go in force on July 1, 1902, and on that date, therefore, the new fortyfive municipalities will start upon a new life under a new form of government with their old obligations definitely adjusted, and with new services to look after two of their most important functions : that of providing for public education, and for road improvement. Only time can tell how this new system will work, but it at least represents a step that had to be taken sooner or later, and permits the people of Porto Rico to make the essay of local government under more favorable conditions than they have ever heretofore enjoyed, while at the same time leaving to the insular government full power to intervene wherever failure results.

A great deal of attention has been given to this subject of local government, as it is one of such fundamental importance. The second session of the legislature, however, found time to take important action in a number of other directions. A law was thus passed vastly simplifying and improving the system for the assessment of property on the island for purposes of taxation ; while another act corrected features of the revenue system passed by the first session that had been found to work badly in practice. The most important of these changes introduced were the more definite separation of the sources from which the incomes of the insular and municipal governments, respectively, should be derived : in raising slightly the license taxes upon saloons, restaurants, merchants, and others selling liquor and tobacco ; in providing that each piece of real property should be separately listed, assessed, and taxed, instead of the holdings of each individual being assessed as a whole, —a matter which often made it impossible to determine whether a particular property was encumbered by a lien on account of unpaid taxes or not; in making the corporation tax strictly an insular tax ; and in correcting an omission in the first law which failed to state specifically the method to be followed in assessing foreign corporations.

Another act that will have the most beneficial effect upon the industrial development of the island was that putting upon the statute books a general corporation law. This law is modeled closely after that of the state of New Jersey, which possesses features especially desirable in the case of a new country awaiting development. Under it the investment of capital in the island under the corporate form of management will be much stimulated, and one of the obstacles that have stood in the way of the influx of foreign capital will be removed.

To attempt to comment at any length upon other important measures becoming law would require an examination of almost every department of public affairs. Thus, the whole system of the protection of public health and the duties of the insular and local authorities in respect to sanitation and prevention of disease was put upon a more definite and satisfactory basis by a general law providing for the appointment of a director of public health and a superior board of health, and defining their respective duties. An act was passed for the regulation and government of the insular police force of Porto Rico and permitting its extension throughout the island of Porto Rico. The political system of the island was improved by the enactment of a general election law embodying the chief features of the Australian ballot and regulating in detail the manner of holding elections. The organization of building and loan associations and their regulation were provided for by a law modeled closely after the Massachusetts statute though incorporating several of the good features of other acts. Thirty thousand dollars was appropriated for the representation of Porto Rico at the Louisiana Purchase Exposition at St. Louis in 1903. The Governor was authorized to coöperate with the United States Geological Survey in having a topographical survey and map of the island prepared, and an adequate sum of money was placed at his disposal for this purpose. The purchase of land for the use of the new United States Agricultural Experiment Station was authorized. A conservative employers’ liability law was enacted. Provision was made for the establishment and maintenance of an asylum for the indigent blind. The carrying of firearms and concealed weapons was regulated. Gaming was prohibited. Cruelty to animals was made a misdemeanor. The judicial system of the island was modified in various ways so as to introduce needful changes and make it conform to American practice. Finally must be mentioned the passage at each session of that most important of laws, the general appropriation act. These acts, carrying each between two and two and a quarter million dollars, determined the whole programme of the government for the ensuing fiscal years. Inevitably there existed much difference of opinion regarding the wisdom of certain items that were included and of the failure to include others. The demand for appropriations for certain works was very great, and the final passage of the acts carrying total appropriations well within the financial resources of the treasury constitute not the least claim of the first Legislative Assembly as a conservative and public-spirited body.

In conclusion, when the facts are taken into consideration that each session of the legislature was limited by law to a duration of sixty days ; that one of its houses, at least, was composed of members exercising for the first time legislative functions, and were, consequently, wholly unfamiliar with parliamentary procedure ; that there was an essential difference between the two houses in respect to the extent to which power should be conferred upon the people of Porto Rico acting through their local governments ; that many of the measures proposed represented radical changes from existing customs ; that the patriotic purposes of the United States were still questioned by a portion of the population, — when these and numerous other difficulties are appreciated, this record of the first genuine legislative body that the island has ever enjoyed cannot but be considered as a remarkably creditable one. Yet this is but the beginning of the real work of endowing Porto Rico with institutions and laws conforming to Anglo-Saxon ideals. The problems that confront the United States cannot be solved by a few months of legislative activity. The great questions are questions of administration rather than of legislation. Whether the laws that have been passed will prove successful or not will depend wholly upon the manner in which they are administered, and the tact and ability with which the American representatives exercise their delicate functions of control and supervision. Years will be required before the difficulties involved in the political problem will be brought under control, the new system of local government perfected, and the thousand and one details of the administrative machinery satisfactorily worked out. Only the most conscientious and sustained activity on the part of those entrusted with authority in our insular possessions will bring about the full realization of the high aims that the American people have set before them in respect to the government of the countries that have lately come under the protection of the American flag.

William F. Willoughby.