Act of June 29, 1906, ch. 3613, 1285.

ized

Sec. 1. Porto Rico Use of Internal-Revenue Stamps in, Author-
Deputy Collector to Be Stationed at San Juan
Salary, etc.-Issue of Stamps-Additional Duties, 1285.
2. Bond, 1286.

Act of July 15, 1909, ch. 4, 1286.

Sec. 2. Reports to Be Made to an Executive Department, 1286. Act of Jan. 7, 1913, ch. 6, 1286.

Absence of District Judge Appointment of Special Judge, 1286.
Act of Oct. 3, 1913, ch. 16, 1287.

Sec. IV. D. Exemption of Imported Articles from Internal Revenue
Tax, 1287.

CROSS-REFERENCES

Experiment Stations in, see AGRICULTURE.

Salary of Resident Commissioner, see CONGRESS.

Acknowledgment of Deeds and Other Instruments, see NOTARIES PUBLIC.

Appeals and Writs of Error from Supreme Court and District Court, see JUDICIARY.

Depositories for Public Moneys, see PUBLIC MONEYS.

Porto Rico Infantry, see WAR DEPARTMENT AND MILITARY ESTABLISHMENT.

An Act Appropriating, for the benefit and government of Porto Rico, revenues collected on importations therefrom since its evacuation by Spain, and revenues hereafter collected on such importations under existing law.

[Act of March 24, 1900, ch. 91, 31 Stat. L. 51.]

[Appropriation of amount of customs revenue on importations from Port Rico for use of its government, etc.] That the sum of two million and ninety-five thousand four hundred and fifty-five dollars and eightyeight cents, being the amount of customs revenue received on importations by the United States from Porto Rico since the evacuation of Porto Rico by the Spanish forces on the eighteenth of October, eighteen hundred and ninety-eight, to the first of January, nineteen hundred, together with any further customs revenue collected on importations from Porto Rico since the first of January, nineteen hundred, or that shall hereafter be collected under existing law, shall be placed at the disposal of the President, to be used for the government now existing and which may hereafter be established in Porto Rico, and for the aid and relief of the people thereof, and for public education, public works, and other governmental and public purposes therein until otherwise provided by law; and the revenues herein referred to, already collected and to be collected under existing law, are hereby appropriated for the purposes herein specified, out of any moneys in the Treasury not otherwise appropriated. [31 Stat. L. 51.]

This section may be regarded as temporary and expired.
See the notes to the following paragraph of the text.

President's authority over expenditures. -- Under this statute, the President, by his order on April 23, 1901, allotted and set aside $500,000 of this appropriation "to be expended for public and permanent improvements in Porto Rico, under the supervision and subject to the approval of the governor and executive council of the island." This allotment did not exhaust the President's discretion as to who should supervise and approve this expenditure, nor did it confer upon the governor or executive council any permanent right to continue to do so, or beyond the pleasure

of the President, and he had the power to place the disbursement of such appropriation under the control of the "administrative authorities" instead of the "executive council." (1901) 23 Op. Atty.Gen. 450.

Erecting or equipping schoolhouses.The President could lawfully direct that a portion of the appropriation provided by this statute be used for the purpose of erecting and equipping schoolhouses in that island. (1900) 23 Op. Atty.-Gen.

329.

An Act Temporarily to provide revenues and a civil government for Porto Rico, and for other purposes.

[Act of April 12, 1900, ch. 191, 31 Stat. L. 77.]

[SEC. 1.] [Application of Act to Porto Rico and adjacent islands.] That the provisions of this Act shall apply to the island of Porto Rico and to the adjacent islands and waters of the islands lying east of the seventyfourth meridian of longitude west of Greenwich, which were ceded to the United States by the Government of Spain by treaty entered into on the tenth day of December, eighteen hundred and ninety-eight; and the name Porto Rico, as used in this Act, shall be held to include not only the island of that name, but all the adjacent islands as aforesaid. [31 Stat. L. 77.]

This is the first section of the "Foraker Act," or the "Porto Rico Civil Code." By the Treaty of Dec. 10, 1898, 30 Stat. L. 1754, Spain ceded to the United States the island of Porto Rico and the adjacent islands.

Subsequent provisions, superseding to a large extent many of those given in this title, are contained in the Act of March 2, 1917, entitled “An Act To provide a civil government for Porto Rico and for other purposes." See Pamph. Supp. No. 9, Fed. Stat. Ann., 1918 Supp. Fed. Stat. Ann.

In general. This act, called the "Foraker Act," provided a civil government for Porto Rico, which prior thereto was under a provisional government. Ochoa v. Hernandez y Morales, (1913) 230 U. S. 139, 33 S. Ct. 1033, 57 U. S. (L. ed.) 1427.

Taxation of machinery and boats in harbor of San Juan.- In Gromer v. Standard Dredging Co., (1912) 224 U. S. 362, 32 S. Ct. 499, 56 U. S. (L. ed.) 801, it was held that Porto Rico had power to tax certain machinery and boats which at the time of the levy of the taxes were in the harbor of San Juan, engaged in dredging work. The court said: "We have seen that by § 1 of the Foraker Act all of its provisions are made applicable to a certain defined area, and that the name Porto Rico'shall be held to include not only the island of that name, but all adjacent islands and waters of

the islands.' The governmental powers
conferred upon
Porto Rico must be co-
extensive with that area, subject to the
reservation that all laws passed shall not
be in conflict with the laws of the United
States, and the power of enacting such
laws is conferred upon the legislative as-
sembly. There is precaution against
abuse. They must be reported to Con-
gress, which has the power to annul them.
The purpose of the act is to give local
self-government, conferring an autonomy
similar to that of the states and ter-
ritories, reserving to the United States
rights to the harbor areas and navigable
waters for the purpose of exercising the
usual national control and jurisdiction
over commerce and navigation."

Citizen of Porto Rico not an alien immigrant. In Gonzales v. Williams, (1904) 192 U. S. 1, 24 S. Ct. 177, 48 U. S.

(L. ed.) 317, it was held that a citizen of Porto Rico is not an alien immigrant within the intent and meaning of the Immigration Act approved March 3, 1891, 26 Stat. L. 1084, ch. 551.

Cession. The relinquishment of sovereignty over and cession of domain by Spain to the United States of the island of Porto Rico by the Treaty of Paris of April 11, 1899, must be regarded as immediate and absolute from the date of its signature, subject only to the possibility of a failure of ratification. (1901) 23 Op. Atty. Gen. 551.

Extent of cession.- Under the treaty of peace with Spain the Culebra Islands constitute a part of Porto Rico. (1901) 23 Op. Atty. Gen. 564.

The United States possesses a valid and complete title to the whole of Miraflores Island. That island did not belong to Porto Rico before the cession, and by the treaty of peace title to it was transferred by Spain to the United States. (1904) 25 Op. Atty.-Gen. 193.

SEC. 2. [Tariff on foreign imports.] That on and after the passage of this Act the same tariffs, customs, and duties shall be levied, collected, and paid upon all articles imported into Porto Rico from ports other than those of the United States which are required by law to be collected upon articles imported into the United States from foreign countries: Provided, That on all coffee in the bean or ground imported into Porto Rico there shall be levied and collected a duty of five cents per pound, any law or part of law to the contrary notwithstanding: And provided further, That all Spanish scientific, literary, and artistic works, not subversive of public order in. Porto Rico, shall be admitted free of duty into Porto Rico for a period of ten years, reckoning from the eleventh day of April, eighteen hundred and ninety-nine, as provided in said treaty of peace between the United States and Spain: And provided further, That all books and pamphlets printed in the English language shall be admitted into Porto Rico free of duty when imported from the United States. [31 Stat. L. 77.]

-

SEC. 3. [Tariff as between Porto Rico and the United States to cease after certain time.] That on and after the passage of this Act all merchandise coming into the United States from Porto Rico and coming into Porto Rico from the United States shall be entered at the several ports of entry upon payment of fifteen per centum of the duties which are required to be levied, collected, and paid upon like articles of merchandise imported from foreign countries; and in addition thereto upon articles of merchandise of Porto Rican manufacture coming into the United States and withdrawn for consumption or sale upon payment of a tax equal to the internalrevenue tax imposed in the United States upon the like articles of merchandise of domestic manufacture; such tax to be paid by internal-revenue stamp or stamps to be purchased and provided by the Commissioner of Internal Revenue and to be procured from the collector of internal revenue at or most convenient to the port of entry of said merchandise in the United States, and to be affixed under such regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe; and on all articles of merchandise of United States manufacture coming into Porto Rico in addition to the duty above provided upon payment of a tax equal in rate and amount to the internal-revenue tax imposed in Porto Rico upon the like articles of Porto Rican manufacture: Provided, That on and after the date when this Act shall take effect, all merchandise

and articles, except coffee, not dutiable under the tariff laws of the United States, and all merchandise and articles entered in Porto Rico free of duty under orders heretofore made by the Secretary of War, shall be admitted into the several ports thereof, when imported from the United States, free of duty, all laws or parts of laws to the contrary notwithstanding; and whenever the legislative assembly of Porto Rico shall have enacted and put into operation a system of local taxation to meet the necessities of the government of Porto Rico, by this Act established, and shall by resolution duly passed so notify the President, he shall make proclamation thereof, and thereupon all tariff duties on merchandise and articles going into Porto Rico from the United States or coming into the United States from Porto Rico shall cease, and from and after such date all such merchandise and articles shall be entered at the several ports of entry free of duty; and in no event shall any duties be collected after the first day of March, nineteen hundred and two, on merchandise and articles going into Porto Rico from the United States or coming into the United States from Porto Rico. [31 Stat. L. 77.]

In accordance with the above section President McKinley issued his proclamation July 25, 1901, 32 Stat. L. 1983.

The use of internal revenue stamps was authorized and provision was made for a deputy collector, by the Act of June 29, 1906, ch. 3613, infra, p. 1285.

Constitutionality. This section is constitutional so far as it fixes the duties to be paid upon merchandise imported into Porto Rico from the port of New York. It cannot be successfully attacked upon the ground of its violation of that clause of the Constitution, art. I., sec. 9, declaring that

no tax or duty shall be laid on articles exported from any state." As Porto Rico is not a foreign country, goods carried from New York to Porto Rico are not 66 exports " from New York within the meaning of that clause. Dooley . U. S., (1901) 183 U. S. 151, 22 S. Ct. 62, 46 U. S. (L. ed.) 128.

The island of Porto Rico is a territory appurtenant and belonging to the United States, but not a part of the United States within the revenue clauses of the Constitution. This statute is constitutional as far as it imposes duties on imports from such island. Downes v. Bidwell, (1901) 182 U. S. 244, 21 S. Ct. 770, 45 U. S. (L. ed.) 1088.

66

Internal revenue tax.-This section provides that tariff duties shall cease, but the internal revenue tax upon Porto Rican articles remains as that imposed upon the like articles of domestic manufacture." Jordan v. Roche, (1913) 228 U. S. 436, 33 S. Ct. 573, 57 U. S. (L. ed.) 908. So, importations of bay rum from Porto Rico were subject to the same extended revenue tax as distilled spirits. Jordan v. Roche, (1913) 228 U. S. 436, 33 S. Ct. 573, 57 U. S. (L. ed.) 908.

Tobacco grown in Porto Rico after the cession of that island to the United States and brought into this country for warehousing, and afterwards exported to Canada and thence returned to the United States, was within the benefits of paragraph 483 of the Tariff Act of July 24, 1897, 30 Stat. L. 195, but subject to the internal revenue tax provisions of this section. (1903) 24 Op. Atty.-Gen. 612.

SEC. 4. [Disposition of duties-ports of entry-regulations - pay of agents.] That the duties and taxes collected in Porto Rico in pursuance of this Act, less the cost of collecting the same, and the gross amount of all collections of duties and taxes in the United States upon articles of merchandise coming from Porto Rico, shall not be covered into the general fund of the Treasury, but shall be held as a separate fund, and shall be placed at the disposal of the President to be used for the government and benefit of Porto Rico until the government of Porto Rico herein provided for shall have been organized, when all moneys theretofore collected under

the provisions hereof, then unexpended, shall be transferred to the local treasury of Porto Rico, and the Secretary of the Treasury shall designate the several ports and subports of entry in Porto Rico and shall make such rules and regulations and appoint such agents as may be necessary to collect the duties and taxes authorized to be levied, collected, and paid in Porto Rico by the provisions of this Act, and he shall fix the compensation and provide for the payment thereof of all such officers, agents, and assistants as he may find it necessary to employ to carry out the provisions hereof: Provided, however, That as soon as a civil government for Porto Rico shall have been organized in accordance with the provisions of this Act and notice thereof shall have been given to the President he shall make proclamation thereof, and thereafter all collections of duties and taxes in Porto Rico under the provisions of this Act shall be paid into the treasury of Porto Rico, to be expended as required by law for the government and benefit thereof instead of being paid into the Treasury of the United States. [31 Stat. L. 78.]

Receipts from sources other than duties and taxes. Storage charges, fines, penalties, and forfeitures, and other collections, not duties or taxes, made by customs officers in Porto Rico in the administration of the customs laws, should be deposited to the credit of the treasurer of the United States. (1903) 24 Op. Atty.-Gen.

621.

Disposition of head tax.— The head tax upon alien passengers brought into ports of Porto Rico should be accounted for and credited to the "immigrant fund," as is done with like collections upon alien passengers arriving at ports in the United States. Section 14, infra, gives force and

effect in Porto Rico to the immigration laws. (1902) 24 Op. Atty.-Gen. 86. Disposition of tonnage tax.- Tonnage tax collected in Porto Rico should be so deposited as to be available for the maintenance in part of of the marine hospital service. "It is reasonable to believe that Congress, in extending the laws of the United States not locally inapplicable to Porto Rico (sec. 14, infra, p. 1267), and in nationalizing Porto Rican vessels and admitting same to the benefits of our coasting trade (sec. 9, infra, p. 1264), intended that Porto Rico should have the benefits of the marine-hospital service." (1902) 44 Op. Atty.-Gen. 122.

SEC. 5. [Duties on imports, etc., on passage of Act.] That on and after the day when this Act shall go into effect all goods, wares, and merchandise previously imported from Porto Rico, for which no entry has been made, and all goods, wares, and merchandise previously entered without payment of duty and under bond for warehousing, transportation, or any other purpose, for which no permit of delivery to the importer or his agent has been issued, shall be subjected to the duties imposed by this Act, and to no other duty, upon the entry or the withdrawal thereof: Provided, That when duties are based upon the weight of merchandise deposited in any public or private bonded warehouse said duties shall be levied and collected upon the weight of such merchandise at the time of its entry. [31 Stat. L. 78.] This section may be regarded as temporary only and executed.

Constitutionality.-Sugar was imported prior to the passage of this statute from Porto Rico to New York, and entered in bonded warehouses. After the passage of the statute the sugar was withdrawn, from time to time, and the duties assessed under this Act were paid under protest. In an action to recover the duties paid it was held that this section is constitutional

wherein it provides that goods imported from Porto Rico before the passage of the Act, but remaining in bonded warehouse after its passage, are subject to the duties imposed by that Act. The statute is not void for lack of uniformity, nor as being in effect an ex post facto law. De Pass v. Bidwell, (S. D. N. Y. 1903) 124 Fed. 615.