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    "localId": "290018879",
    "label": "Report, Investigation of Political, Economic, and Social Conditions in Puerto Rico, Report of the Committee on Insular Affairs, House of Representatives",
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    "title": "Report, Investigation of Political, Economic, and Social Conditions in Puerto Rico, Report of the Committee on Insular Affairs, House of Representatives",
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    "seq": 21,
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    "ocrText": "36\nCONDITIONS IN PUERTO RICO\nCONDITIONS IN PUERTO RICO\n37\nThere are no minerals, except clay for glass and pottery making,\nthe point where further Federal contributions will not be necessary\nand no fuel or real source of power in the island. The hydroelectric\nwhen the wartime boom income to the island has dropped.\nprojects developed by the water resources authority are not adequate\nto maintain the heat and power necessary for the sustenance of large\nPRESENT TREND TOWARD TOTAL STATE CONTROL\nindustrial developments.\nPuerto Rico has only one tangible asset or resource other than the\nIt is the feeling of the subcommittee that the trend of government\nland and climate-an overabundant labor supply. In that respect\nin Puerto Rico is very obviously headed toward total state control as\nthe island economy might be compared to that of Switzerland.\nshown by the recitation above of what happened in Italy. It appears\nSwitzerland does not have adequate resources to maintain a large\nnow that if steps are not taken to curb the development of the activi-\nindustrial population devoting itself to processing imported materials.\nties of the various corporations and authorities that as soon as time\nAs a result Switzerland has developed several industries, such as the\nand available funds permit, the following consequences will result:\nmaking of watches, precision tools and instruments, and needlework.\n1. More than half of all farm land will be owned by the government and culti-\nThose industries require very small amounts of materials, most of\nvated under governmental direction. There are reasons to believe that agricul-\nwhich are available within its own limited economy. Those products\ntural efficiency will decline under such a system, causing much land to be taken\nunlike those which would be made under Puerto Rico's program are\nfrom sugar production, depriving many of gainful employment.\n2. All economic life, both governmental and private business, will fall under\nvaluable items.\nthe insular planning board with all development being subordinated to its wishes\nThe island of Puerto Rico has developed a sizable needlework\nand recommendations.\nindustry which is estimated to employ between 35,000 and 40,000\n3. All forms of water power and water resources will be under control of the\npeople. It appears then that if any industrial development is to be\ninsular water resources authority which in time will become another adjunct of\nthe political party in power instead of retaining its independent status compa-\nfostered in Puerto Rico, it should be along lines that would make use\nrable to that enjoyed by the Tennessee Valley Authority on the mainland.\nof the greatest number of people and use the island's limited resources\n4. The island's sugar mills, which have been declared to be public utilities by\nor such materials as could be imported at minimum costs for processing.\ninsular legislation which places control in the public service commission, either\nSubcommittee recommendations.-It is the subcommittee's recom-\nwill fail, requiring that they be taken over by the insular government, or else will\nbe kept in operation only at the expense of the small grower whose cane is ground\nmendation that the entire matter of industrial development be com-\nin the mills. Small sugar-cane growers have paid less in Puerto Rico than else-\npletely gone over and studied in the light of the foregoing statements.\nwhere in the world because mill operators also operated cane farms and considered\noutside cane as a means for filling in productive capacity of the mills.\nCONCLUSIONS OF SUBCOMMITTEE\n5. All means of transportation will be owned and operated by the transportation\nauthority.\n6. All communications systems will be owned and operated by the communica-\nMany have said that Latin America looks at the United States\ntions authority.\nthrough the eyes of Puerto Rico, judging the United States most by\n7. A large number of once private business enterprises will be owned and oper-\nour treatment of the island. While the subcommittee is inclined to\nated by the Development Company, which is empowered under its charter to\ndoubt the accuracy of that theory the subcommittee has a very deep\nengage in any form of business it chooses.\n8. A large share of local capital, including all Government surpluses and\nconcern because of the pattern of government established in Puerto\nreserves, will be deposited in the Development Bank, set up by the legislature to\nRico under the present insular administration's creation of the\nfinance the Development Company.\nvarious authorities. It is the subcommittee's feeling that the system\nIt is clearly seen that such concentration of insular moneys and\nnow being developed in Puerto Rico is alien to the form of government\npower as shown by the charts printed earlier in this report, would\ntraditionally followed on the mainland.\ngive the insular government total domination over all business life\nWhen the organic act was passed it was designed to guarantee and\nin the island, which is apparently the goal of the party in power in\nprotect the rights and privileges enjoyed by Americans on the mainland\nits eagerness to increase its power and control over the people in the\nbut it appears to the members of this subcommittee that political\nisland.\nleaders in Puerto Rico have charted a course which will eventually\ndestroy individual liberties of the people and enslave them eventually\nRECOMMENDATIONS FOR FURTHER ACTION\nby setting up a form of government wholly alien to our own.\nCertainly the people of the United States do not wish governmental\nThe authority granted to the Committee on Insular Affairs, and\ncontrol over the Nation's resources and business life to the extent that\nthrough it to any subcommittee thereof, to make the investigation of\nit exists in Puerto Rico. There is not an avenue of business in Puerto\nconditions in Puerto Rico carried with it the responsibility to make\nRico that has not been touched already or will be touched in the near\nsuch recommendations as might appear necessary for the betterment\nfuture by governmental controls and domination over various fields\nof conditions on the island.\nof endeavor. Since the Federal Government has contributed since\nDefinite recommendations were carried in the first three prelimi-\n1933 approximately $40,000,000 a year for the support of Puerto Rico,\nnarv reports of the subcommittee on temporary problems of the island\nthe subcommittee feels that the United States should continue to\ndealing with food importation and distribution, sale of molasses, and\nevidence its deep interest in Puerto Rican affairs, as there is no indica-\nthe run production restriction order. Those reports were reviewed\ntion that the many complex problems of the island_car be lessened to\nin the first part of this report."
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