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legislature, called for a special session, was asked by the
Governor to approve an additional appropriation of Sixteen
Millions for the war emergency fund. The minorities, whose
votes were needed for the approval of the bill, expressed
their willingness to approve an additional appropriation of
twenty-one millions, on condition that a representative of
the minorities should be allowed to sit in the board having
control of the fund. The President of the Senate refused
to accept that reasonable condition and the legislature
adjourned without giving the Governor additional funds. The
Governor immediately took the position that the original
appropriation was self-renewing; that the consent of the
legislature was unnecessary and that he, as Chief Executive,
was authorized to go on expending money for the duration of
the war emergency.
Senator Iriarte, in his capacity as a taxpayer, brought
action in the District Court of San Juan to enjoin the expendi-
ture of public funds without the consent of the Legislature.
District Judge Romany, after hearing the parties, issued a
restraining order. The government brought the case for review
by the Supreme Court. After hearing the parties, the Supreme
Court affirmed the judgment rendered by Judge Romany and held
(1) that a taxpayer in Puerto Rico has legal capacity to appear
before a court of justice and demand that a public officer be
enjoined from spending public funds without legislative authority,
and (2) that under a democratic system of government the Executive
is not superior to the Legislative and is not authorized to dis-
burse public funds without legislative consent. The Supreme Court
issued the injunction but suspended its effect to give the
Government an opportunity of taking an appeal to the Circuit
Court. The opinion of the Supreme Court was unanimously affirmed
by the Circuit Court of Appeals and by the Supreme Court of the
United States.
In his recent message to the Legislature the Governor
informed the people of the Island that the Insular Government
used a total of fifty-one millions from the rum tax for work
relief, and he added: "We ought not to conceal from ourselves
that our own work-relief program has been pretty much a failure.
This has not been because of poor administration. It has been
because those who have benefited by it would not really respect
its purpose. We could pay out the money, but we could get only
small returns in completed public works". These words need no
comment.
The Agricultural Development Company's Case. This Company
was organized as one of the agencies of our super-government.
It has at its disposal between ten and fifteen millions of the
public funds, which are disbursed without the intervention of
the Insular Auditor or Treasurer, upon warrants issued by the
manager of the Company and countersigned by one of his subordinates
appointed by him. The manager is a man named Fennell, the same
one who made himself famous by wasting several millions in wild
-2-
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"ocrText": "legislature, called for a special session, was asked by the\nGovernor to approve an additional appropriation of Sixteen\nMillions for the war emergency fund. The minorities, whose\nvotes were needed for the approval of the bill, expressed\ntheir willingness to approve an additional appropriation of\ntwenty-one millions, on condition that a representative of\nthe minorities should be allowed to sit in the board having\ncontrol of the fund. The President of the Senate refused\nto accept that reasonable condition and the legislature\nadjourned without giving the Governor additional funds. The\nGovernor immediately took the position that the original\nappropriation was self-renewing; that the consent of the\nlegislature was unnecessary and that he, as Chief Executive,\nwas authorized to go on expending money for the duration of\nthe war emergency.\nSenator Iriarte, in his capacity as a taxpayer, brought\naction in the District Court of San Juan to enjoin the expendi-\nture of public funds without the consent of the Legislature.\nDistrict Judge Romany, after hearing the parties, issued a\nrestraining order. The government brought the case for review\nby the Supreme Court. After hearing the parties, the Supreme\nCourt affirmed the judgment rendered by Judge Romany and held\n(1) that a taxpayer in Puerto Rico has legal capacity to appear\nbefore a court of justice and demand that a public officer be\nenjoined from spending public funds without legislative authority,\nand (2) that under a democratic system of government the Executive\nis not superior to the Legislative and is not authorized to dis-\nburse public funds without legislative consent. The Supreme Court\nissued the injunction but suspended its effect to give the\nGovernment an opportunity of taking an appeal to the Circuit\nCourt. The opinion of the Supreme Court was unanimously affirmed\nby the Circuit Court of Appeals and by the Supreme Court of the\nUnited States.\nIn his recent message to the Legislature the Governor\ninformed the people of the Island that the Insular Government\nused a total of fifty-one millions from the rum tax for work\nrelief, and he added: \"We ought not to conceal from ourselves\nthat our own work-relief program has been pretty much a failure.\nThis has not been because of poor administration. It has been\nbecause those who have benefited by it would not really respect\nits purpose. We could pay out the money, but we could get only\nsmall returns in completed public works\". These words need no\ncomment.\nThe Agricultural Development Company's Case. This Company\nwas organized as one of the agencies of our super-government.\nIt has at its disposal between ten and fifteen millions of the\npublic funds, which are disbursed without the intervention of\nthe Insular Auditor or Treasurer, upon warrants issued by the\nmanager of the Company and countersigned by one of his subordinates\nappointed by him. The manager is a man named Fennell, the same\none who made himself famous by wasting several millions in wild\n-2-"
}