The judgments, which are called "sentencias," are divided into three parts. The first part, called "resultando," contains a statement of the facts as found by the judges from the evidence; the second part, called the "considerando," consists of the application, in a very logical manner, of such laws as may be involved upon the facts, and finally indicates, argumentatively, what the decision must necessarily be; then follows the decision or third part, called "fallo.”

These "sentencias," or final judgments, are prepared with the utmost care, and in language and phraseology are generally models of elegant diction and the faultless use of words.

THE SUPREME COURT:

Appeals in criminal matters from the police courts and the municipal courts may be taken to the district courts, and their conclusion is final. In criminal matters which are cognizable in the first instance in the district courts an appeal may be taken to the supreme court of the island. But the only evidence that reaches the latter court is the evidence preserved in the "sentencia," or judgment, as last pointed

out.

It follows, therefore, that the supreme court must accept the statement of facts thus prepared by the lower court. No latitude is given, nor is there opportunity for a reversal of a judgment by the supreme court on the facts. There is left for its consideration only the application of the laws to the facts thus found. It is merely a court of cassation. In the absence of an intermediate tribunal, where the facts thus ascertained by the trial court and set forth in its judgment might be reviewed upon the evidence, it would perhaps tend to a furtherance of justice if the supreme court were made a regular court of appeals, so that each case could have proper consideration in that court upon the merits. Matters of fact which may have escaped the attention of the trial court and in which there may be manifest error can not now be considered by the supreme court except as a court of cassation.

In civil cases in the supreme court the evidence appears of record and can be considered by the court in reaching a final conclusion, but the evidence usually comes to it in a narrative form. It often contains, however, original documents, which may be consulted. The record is not required to be printed, nor is it prepared in duplicate. But one copy reaches the court, and consequently it is passed around from hand to hand among the five judges and the lawyers. representing the respective parties.

I desire to call your special attention to the fact that in criminal cases an appeal may be perfected to the supreme court simply on a motion by the defendant. No costs are required to be paid; no bond is demanded; no brief is necessary. Nor is it necessary for the defendant to have a lawyer to appear on his behalf in that court.

Nevertheless, the court must give to such a case the same consideration that it gives to any other appeal, and must set forth its judgment with the same elaboration and care that it would give to a contested case.

The result is that in every criminal case an appeal to the supreme court is perfected as a matter of course. In the meantime the accused may be enjoying his liberty on bail. A further result is that the docket of the highest court in the island contains more cases of a criminal nature than of a civil nature. Under the Spanish Government defendants in criminal cases were required indirectly to pay costs because of the rule which made it necessary for the records to be prepared on stamped paper. With the abolition of stamped paper by the American administration all costs have disappeared.

Matters heard and disposed of by that court during the last calendar year are set forth in the following schedule:

Supreme court of Porto Rico-December 31, 1899, to December 31, 1900.

There are 378 officials and employees in the entire judicial system of the island; the appropriation for the next year, including contingent expenses, is $176,150.. Of the whole number of employees there is not a single American; of the whole number of judges there are but four Americans, a fact which is of interest in that it indicates the general policy heretofore pursued by the civil government in this department of putting responsibility so far as possible upon the Porto Ricans themselves. Of these four Americans one is an associate justice of the supreme court of the island. Up to the 1st day of March last he was the sole representative of the American bar on the bench of Porto Rico. On account of his ability and learning, both in the common law and in the civil law, he has been peculiarly useful in helping to shape the jurisprudence of the island to the new conditions of government. The other three American judges have been appointed within the last month to the district courts, which are next in importance to the supreme court. It is hoped that their presence on these courts of general jurisdiction will aid in bringing the two systems of jurisprudence wherever they may come into conflict into some sort of working harmony.

The judicial system of the island has lately been the subject of adverse comment in the United States. Although my opportunities for observation have been limited to a short period of time, I am

nevertheless of the opinion that such comments are not fully justified by the facts. It is probably true, as has been said in the United States by the same critics, that no court that ever existed in Porto Rico enjoyed the confidence of the whole people more fully than the late provisional court established by the military authorities and consisting entirely of American judges. It is probably also true that the desire is now observable on the part of the Porto Ricans themselves to take their cases to the United States district court whenever possible, because they feel that without regard to political or other considerations justice will be there administered.

It is also probably true that with respect to their own insular courts the same confidence does not exist; it is said, and it is probably true, that in some of these courts and in some cases political considerations do sometimes influence results. This seems to be the belief not only of the Americans here, but of the Porto Ricans themselves. This, however, is to be said that the Porto Ricans are as well aware of these defects as the Americans, and there seems to be a genuine desire and effort to improve the judicial system, not only in the honest administration of the law, but in the law itself. The supreme court of the island, which is the court of last resort, seems beyond question to enjoy the esteem and respect of the people without regard to party. This affords strong ground for a hopeful view of the situation, and my belief is that American capital may be invested here with the confidence of protection by the court. But whether the judicial system as now established, which preserves the old Spanish law to a large extent, will be sufficient to meet the requirements of the new commercial activities which are confidently expected, is a question for future consideration. By many of the American lawyers here it is thought that it would have been wiser at once to have provided a system of American law for the island; by others it has been said that so radical a change would have worked a great hardship. I do not feel that I have been here long enough to venture an opinion on so important a question, but as the relations between Porto Rico and the United States will grow closer as time goes on, it is apparent that some modifications bringing the two systems of law into closer harmony, so that the judges will have some understanding of each system and the method of thought and construction which each system requires, are absolutely necessary.

Very respectfully, yours,

Hon. CHARLES H. ALLEN,

Governor of Porto Rico, San Juan.

JAS. S. HARLAN,

Attorney-General.

CHAPTER III.

REPORT OF THE TREASURER OF PORTO RICO TO THE GOVERNOR OF PORTO RICO, COVERING OPERATIONS OF THE OFFICE OF THE TREASURER FROM MAY 1, 1900, TO MARCH 31, 1901.

Bureau of internal-revenue agents (May 1, 1900, to January 31, 1901).
Bureau of tax-law revision...

164

167

Revenue act of January 31, 1901

170

Bureau of internal-revenue agents (February 1, 1901, to March 31, 1901).
Bureau of assessment.

174

182

OFFICE OF THE TREASURER OF PORTO RICO,
San Juan, April 1, 1901.

SIR: The financial history of Porto Rico from the establishment of civil government on May 1, 1900, constitutes an interesting and instructive narrative. In no other branch of the insular government have more important or more significant changes been effected. The financial operations of the island, other than those relating to audit, have been consolidated into a single department and modifications in the system of revenue and in administrative machinery have been introduced to the degree of constituting a fiscal reconstruction of the island. There has been no sharp rupture from existing methods, nor any abrupt disregard of local conditions, but the consistent attempt has been made to introduce into the financial affairs of Porto Rico, with all possible certainty and expedition, those elements of equity,

stability, and integrity which political existence under the American flag must preeminently bring with it.

The significance of the financial changes effected during the first year of civil government can be best introduced by a statement of the conditions prevailing prior thereto. During the first six months of the American occupation of Porto Rico the essential revenues of the island were received and disbursed by an officer of the United States Army, acting as collector of customs for Porto Rico. On May 8, 1899, by an Executive order of the President of the United States, the office of treasurer of Porto Rico was established as an organic part of the military government of the island and the position filled by the appointment of an army officer. Detailed rules and regulations were promulgated by the War Department on May 11, 1899, to carry into effect the Executive order and, on July 1, 1899, the system of accounting therein provided was inaugurated.

The functions of the treasurer under the military government were, in the main, confined to the custody and disbursement of public funds, together with incidental duties assigned from time to time by the military governor. The financial administration of the island, including the collection of insular taxes and dues and the supervision of municipal finances, was vested successively in a secretary of finance, in a department of finance, and in a civil secretary.

.

The act of Congress approved April 1, 1900, establishing civil government in Porto Rico, provided for the appointment of a treasurer of Porto Rico, and defined his duties in the following terms:

He shall collect and be the custodian of the public funds, and shall disburse the same, when appropriated by law, on warrants signed by the auditor and countersigned by the governor, and shall perform such other duties as may be prescribed by law.

On April 27, 1900, while serving in Porto Rico under appointment of the Secretary of War, as special commissioner to revise the laws relating to taxation in Porto Rico, I was advised of my appointment, by the President of the United States, as treasurer of Porto Rico, and on May 2, 1900, having duly qualified therefor by the execution of a bond, approved as to form by the Acting Attorney-General, in the sum required by the executive council, with surety approved by the governor, I entered upon the duties of this office.

The changes in the financial administration of Porto Rico, incident to the transition from military to civil government, were facilitated by certain provisions of General Orders, No. 102, of April 30, 1900, issued by the military governor on the eve of the introduction of civil rule. The office of the civil secretary was therein discontinued, and so much of its duties, responsibilities, records, and personnel as related to (1) internal revenue, (2) financial affairs of municipalities, was transferred to the treasurer, together with the duties performed. by the treasurer under the military government.