THE American authorities and American enterprise have jointly taken hold of the municipal problem of Havana with considerable energy. This subject is of such vital importance, not only to the industrial reconstruction of Cuba, but to the future of the Island itself, that no apology is necessary for devoting an entire chapter to it. The problems which General Ludlow, the present Governor of Havana, has taken up energetically are those relating to the reorganisation of the police force, public works, water and gas supply, fire department, and other branches of local government. Private enterprise, both English and American, has lost no time in securing the street-railway system and some of the public theatres, and in various ways engaged in semi-public enterprises, the result of which will be greatly to improve existing conditions, and make Havana a much more desirable city, both for business and residence.

Next to the question of sanitary improvement, which is absolutely imperative unless the United States stands ready to sacrifice thousands of lives next summer, is the organisation of the police force for the preservation of life and property. For several years past it is said the attention of the police of Havana has been directed more to political arrests than to prevention of crime. Whether these rumours are well founded or not, General Greene, whose report upon the sanitation of Cuba was presented in the previous chapter, is not prepared to assert; but he contends that at the time he made his report, last December, the police force was completely disorganised. As it formerly existed, the police force of Havana consisted of two parts, namely: the Government police, under the direct orders of the civil governor of the province; and the municipal police, under the orders of the Alcalde, or Mayor. The functions of the latter were mainly those of inspectors, to look after the enforcement of city ordinances in regard to buildings, public health, and such matters. They numbered 200. The Government police consisted of a battalion called the Orden Publico, the colonel in command of which was chief of police. The battalion numbered about 1200 men, and was recruited from the Spanish army, among men who had passed through not less than six years’ service, who held the grade of sergeant, and who had won certificates of perfectly good character. This force was disarmed and shipped to Spain in November, on the ground of alleged mutiny; the facts being that they claimed the money belonging to them which had been deposited with the regimental paymaster, and by him embezzled.

In addition to the municipal police and the Orden Publico, there was a force, detailed from the Guarda Civil, whose total strength was about 3500 men. This force constituted the rural police of the entire Island, under the orders of the civil governor of each province. About 300 were used by the civil governor of Havana for duty in the suburbs of Jesus del Monte, Cerro, and other outlying neighbourhoods.

At the time the control of the city passed from Spanish into American hands, the police force consisted simply of the municipal police, about 200 in number, with a few additions, all of whom were temporarily organised into a Government police force after the disarmament of the Orden Publico.

The city, according to General Greene’s report, is divided into ten districts, and these are still further subdivided into thirty-nine barrios, or wards. The barrios correspond in a measure to the precincts in New York, and in each there was a celador, corresponding to a sergeant in New York. He received $100 per month, and had charge of the police in his barrio, or precinct. There were five inspectors, each of whom had two of the principal districts under his charge. They received $125 per month. They were in turn subject to the orders of the chief of police, and he to the orders of the civil governor. The appointments to all of the positions named were made by the Governor-General on the nomination of the Governor. Each inspector had an office on the ground floor of the house where he lived, and these were all connected by telephone, through the Telephone Exchange, with the Police Headquarters on Cuba Street, near Quarteles Street. Similarly, each of the celadors had an office in his own house. There were a large number of details for special service at banks, theatres, public offices, and similar places, and while the nominal strength of the Orden Publico was 1200, yet vacancy, sickness, and other causes reduced its effective strength to 800 or 900.

According to this report, in the opinion of the civil governor, a force of 600 carefully selected men, thoroughly well organised, under proper officers, will be ample for the security of life and property in this city. The orders of the President of the United States authorised the organisation of a force of 1000 men. Subsequently the Secretary of War telegraphed General Greene to employ such number of men as was necessary. In the judgment of the commanding general the number authorised by the President was sufficient, and the proposed organisation, inaugurated by General Greene and just completed under the direction of General Ludlow, aided by ex-Chief of Police of New York City, McCullough, is as follows:

The total expenses for salary would be $56,360 per month, or $676,020 per annum. In addition there would be expenses for rent of office, telephone, telegrams, patrol service, 100 horses for use in suburban districts, and other expenses, which would bring the total cost of the police up to about $723,660 per annum.

It is proposed to put the entire police management under charge of an officer of the volunteer army, and to give him a deputy chief, who shall be a resident of the Island, and, if possible, experienced in police matters. Similarly, to put officers of the army of junior rank as inspectors in the principal districts—six in number—and to give to each a deputy inspector, who will be a resident. At the beginning, it is deemed essential that the police management should be in the hands of army officers who can be relied upon, but each will have a deputy who will be a resident, and if possible thoroughly experienced in the police service. It may be necessary to change these resident officers once or more before the best men for the positions are finally found. After the system has been in operation, and the men have proved their efficiency, it will be possible for the army officers to be relieved, and the native or resident officers to assume full control.

In his report on the organisation of the Havana police force General Greene says:

In accordance with the President’s instructions, every officer and member of the police force will be required to subscribe the following oath, which will be printed in both Spanish and English:

The uniform of the new Havana police officer will consist of straw hat, dark blue blouse and trousers, tan-coloured shoes, and white gloves.

The public works needed in Havana are sewers, pavements, a new slaughter-house, buildings for the police, fire, and health departments, and new hospitals. All of these will require a very large sum of money, and the ability of the city to raise this money is not yet evident. For the present, all that can be done is thoroughly to clean, disinfect, and repair the existing public buildings, either owned or rented, so as to make them habitable for the public officials, both American and native. The means of communication are entirely inadequate. They consist of lines of tramways running out to Jesus del Monte, Cerro, and the foot of the Principe Hill. The tracks are in bad order, the cars are old and dirty, and they are drawn by three horses each. The live stock is in bad condition, and the stables are filthy. These lines are owned by a company called the Ferro Carril Urbano y Omnibus de la Habana, under a concession granted February 5, 1859. The same company also runs, in the suburban districts, a few lines of very small omnibuses, drawn by two mules. The service is extremely bad. In addition to these facilities for transportation there is a “dummy” line, running from the centre of the city to the western end of the Vedado, a distance of about four miles. The track is in bad order, and the service is unsatisfactory.

Undoubtedly one of the first enterprises that will be pushed to completion in Havana will be an entirely new tramway system, with mechanical traction. General Greene recognises the necessity of this when he says in his report:

General Greene is undoubtedly right in saying that the new sewerage, gas, and water pipes, tramways, and paving of Havana should all be done at one time. If a general plan of this sort were inaugurated, the streets could be taken one at a time and finished. It should be borne in mind that this sort of work cannot be done as it is done in American cities, by reason of the fact that the streets are so narrow that to pull part of them up and leave any room for traffic is impossible. Added to this, the paving which should be done in Havana is more like masonry work than ordinary paving, because in consequence of the tremendous rains in the rainy season when the streets practically become small rivers (for it is not an unusual thing to see small boys swimming in the street), the sort of pavements we are familiar with would be entirely inadequate.

In the chapter on Havana mention was made of the excellent water supply. While the following description of the water supply of Havana by General Greene partially covers the statement already made, it brings out an interesting point in relation to the necessity of not only encouraging but also insisting on the additional use of water in Havana. It is nothing less than criminal for a city so abundantly supplied with magnificent spring water as is Havana not to insist upon its more liberal use. The waterworks themselves were built by American enterprise and there can be no doubt that those responsible for their management will be glad enough to increase the use of the water, and in so doing reduce the price to the consumer. However this may be, the water supply of Havana is so closely allied to its sanitary condition, that whatever the United States Government may decide to do in regard to its sewerage should be taken up in conjunction with the water supply. It is not a matter that should be left to the decision of the people of Havana themselves, but should be managed with no uncertain hand by those in authority, and the supply paid for by the city if the people are too poor or too indifferent to appreciate the necessity of cleanliness. Note what General Greene says on this point:

Of the efficiency of the fire department, General Greene, in his report, said that he was unable to speak without further knowledge. “It is generally considered,” he says, “to be very satisfactory, and the inhabitants of the city take great pride in it.”

The fire department of Havana appears to consist of two branches—the Municipal Fire Department and the Commercial Fire Department, the former being partly supported at public expense and the latter at the expense of private individuals.

The Municipal Fire Department is organised as a battalion, as follows:

The only paid employes, however, are a few machinists, drivers, clerks, and a telegraph operator. The entire expense in the budget of 1897-98 is as follows:

The apparatus consists of five steam fire engines in Havana, one in Jesus del Monte, and one in Marianao; two hose-carts, and one hook and ladder carriage.

There are 78 fire-alarm stations and 356 water-plugs distributed in different parts of the city.

The debt of the city of Havana on December 31, 1898, according to a statement signed by the Mayor and Controller, was as follows:

By the end of this year the floating debt will be still greater, and the total obligations of the city at that time will probably be about $12,500,000.

HOUSE OF PARLIAMENT, HAVANA
HOUSE OF PARLIAMENT, HAVANA

The mortgage for the loan of 1889 to the Spanish Bank is a document of 158 printed pages, including the index. It recites that in 1877 the city borrowed from the Spanish Bank a sum of money which, together with its interest, amounted in 1889 to $3,177,053.25; that the city was in arrears for interest and sinking fund, and that lawsuits have been in progress to compel the city to pay; that the city also desired funds for the completing the water-works and other purposes, and it was finally agreed that the city would issue $6,500,000 6 per cent. fifty-year bonds for the purpose of taking up the existing debt and completing the water-works, the expense of which was estimated at $1,850,000; and that the balance of the loan, which was taken at 90, was to be turned over to the city for general purposes. There was a further provision that the loan might be increased to $7,000,000 in case the city found it necessary, and this was done. The sinking fund provides for withdrawal by lot and payment of a certain number of bonds every three months during the fifty years, the amount at the end of the first quarter being $5000 and the last quarter $100,000. As security for the loan the city gave a first mortgage on the following property:

together with all revenues and receipts from them during the period of the loan. In addition the municipality mortgaged as further security upward of fifty houses which it owns in various sections of the city. The amount of this loan was $7,000,000, which has been reduced by the operations of the sinking fund to $6,721,000. The mortgage of 1891 is also for fifty years and at 6 per cent., with the same property as security. The original amount was $3,000,000, which has now been reduced by the operations of the sinking fund to $2,882,000. The amount of arrears of interest and sinking fund on the two loans is $343,600.56, which figures as part of the floating debt first above stated.

The floating debt of Havana arises from the failure to pay practically any salaries, contractors, or bills for materials during the whole of the year 1898, and for some debts contracted prior to this year. The items are given as follows:

This is prima facie a valid obligation of the municipality, and should be funded. But before making a new loan for the purpose of paying these debts it would be only proper to have a court of claims established, before which all the creditors of the municipality could appear and definitely prove the amount of their claims and the date at which they accrued.

The debt question of Havana can not be disposed of lightly. In his instructive report on the municipal finances of Havana, General Greene gives it as his opinion that $12,500,000 is not excessive for a city of the size and wealth of Havana. Discussing the question with prominent financiers of Havana, the author found that these gentlemen agreed substantially with General Greene, some going so far as to declare the city could easily stand double the present debt, which would bring it up to $25,000,000. According to the last census, the only city comparable with Havana in the United States that carries a debt approaching this was Cincinnati, which had then a debt of $24,737,611. Cleveland, on the other hand, with a population about the same, had in 1890 a debt of only $6,143,206. The other United States cities of about the same population are respectively Pittsburg, debt, $10,026,806; Buffalo, debt, $10,843,029; Milwaukee, debt only $2,915,900; and San Francisco, less than $1,000,000 of municipal indebtedness. The debts of both Boston and Philadelphia were in 1890 less than $30,000,000. It will be bad financiering to burden Havana at present with more debt. When the budget is fully examined by expert accountants a large floating debt will be found, some of which it may be right and just to pay, and much of which is fraudulent. There will be long past-due gas bills, aggregating over $500,000; unpaid bills for street cleaning; salary accounts unadjusted, and a great variety of debts the validity of which may have to be tried in the courts. To meet current expenses the revenues of the city will have to be increased and honestly expended. Naturally, the city will have to bear its share of the important sanitary work which must be done in Havana, but as this work is for the general welfare of the Island, part of it may rightly be taken from the general funds. Judged from an American point of view, the municipal debt of Havana at the present moment is quite large enough, and great care should be taken not to increase it beyond the danger line.

The revenue of the city is derived entirely from licences and indirect taxation. Real estate is not directly taxed, and the municipality does not receive directly anything from it. The Island of Cuba imposes, among other taxes, a duty of 12 per cent. on the estimated rental value of all houses in the city and country, and it pays over to the city of Havana 18 per cent. of the amount thus collected on rents within the city limit. The Island of Cuba also levies a tax on industry, commerce, and professions, and it pays over to the city of Havana 25 per cent. of all such taxes collected within the city limits. The other sources of city revenue, which are directly collected by the municipality, are the rent of houses owned by the municipality, revenues of the waterworks, slaughter-house, and markets, taxes on meat, coke, and wood, licences on factories and business of all kinds, and various minor licences. The total estimated revenue for the year 1897-98 is slightly in excess of $2,000,000, and the principal items, taken from the budget, are as follows:

These receipts amount to something between $8 and $10 per head of a population estimated between 200,000 and 250,000.

The expenses of Havana are such as are common in every city, namely: expenses of the Mayor and Council (Ayuntamiento), police, fire, health, schools, charities, correction, courts, street cleaning, lighting, repairs and paving, interest, and sinking fund. There is only one unusual item, namely: a contribution of $100,000 towards the expenses of the government of the province. The items are shown in the following statement, taken from the budget of 1897-98:

The current annual estimated expenses of Havana, according to the printed budget, which the author has had translated for 1897-98, were $2,090,441.95, and the revenue, of course, is made to balance. This looks all right on paper, but it is exceedingly doubtful that the present authorities will find the real facts corresponding with these figures. The items that are excessively high are moneys spent for salaries, for office of mayor, for gas, for street cleaning, for charitable institutions, for paving, and for contingent expenses. By “excessive” is of course meant excessive when compared with what the city receives for the money thus expended. The officials do little or nothing for their salaries, the gas is wretched and intolerably expensive, the streets are not cleaned, only the vilest patchwork in the way of paving has of late years been done, and the charitable institutions, so called, are in a miserable and filthy condition. In spite of this, the city of Havana is mulcted to this extent for these purposes:

If honestly and economically expended, these sums would produce good results without greatly increasing the taxes. The interest and liquidation of the debt makes an annual charge of $676,195, about one-third of the present total revenue of Havana; which, if not excessive, is quite enough under existing conditions of the population. General Greene thinks the revenues may be with safety increased, say to $3,000,000. There is force in this, but probably the better way would be before the debt and taxes are increased to try what an honest expenditure of the present revenue will do for the rehabilitation of Havana. Here is what General Greene says on this subject:

TACON MARKET, HAVANA.
TACON MARKET, HAVANA.

“I am inclined to think, although further study might modify this opinion, that the wealth of Havana is such that a judicious system of taxation would yield a revenue of $15 per head, or upward of $3,000,000, and this, if honestly and judiciously collected and expended, would probably be twice the actual net revenue now enjoyed by the city. The collection of taxes of all kinds is now farmed out on a basis of five per cent. commission for collection, which is added to the tax. The tax collector states that there are no arrears, but this statement is vigorously disputed. The whole system of taxation is radically different from that used in American cities, and the system has been so long in operation, and is so intertwined with the system of taxation for the Island, that it would probably be unwise to attempt to introduce American methods during the period of military occupation, the duration of which is so uncertain. It would seem that all that can be done is to make an honest collection, substantially on the basis of existing laws, increasing such items as in the judgment of the military governor can stand an increase without hardship. Such arbitrary changes would create no surprise, as the population has for generations been accustomed to having them made by the Spanish Governor-General.”