• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 Introduction
 Finances
 Legislation
 Office of the governor
 Departments
 Agencies
 Federal agencies
 Data






Group Title: Annual report of the Governor of Puerto Rico
Title: Annual report of the Governor of Puerto Rico. 1945.
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 Material Information
Title: Annual report of the Governor of Puerto Rico. 1945.
Series Title: Annual report of the Governor of Puerto Rico
Physical Description: Serial
Language: English
Creator: Tugwell, Rexford G.
Publisher: United States Government Printing Office
Publication Date: 1945
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Subject: Caribbean   ( lcsh )
Spatial Coverage: Caribbean
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Bibliographic ID: UF00054964
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
    Introduction
        Page 1
        Page 2
    Finances
        Page 3
    Legislation
        Page 4
        Page 5
    Office of the governor
        Page 6
        Bureau of the budget
            Page 6
        Executive secretary
            Page 7
            Page 8
        Office of information
            Page 7
        Office of statistics
            Page 9
    Departments
        Page 9
        Department of agriculture
            Page 9
            Page 10
            Page 11
        Department of education
            Page 12
            Page 13
            Page 14
        Department of health
            Page 15
            Page 16
            Page 17
        Department of interior
            Page 18
            Page 19
        Department of justice
            Page 20
            Penal institutions
                Page 21
            Courts
                Page 22
        Department of labor
            Page 23
    Agencies
        Page 24
        Agricultural experiment station
            Page 24
            Page 25
        Aqueduct and sewer service
            Page 26
        Board of elections
            Page 27
        Civil service commission
            Page 28
        Communications authority
            Page 29
        Development bank
            Page 29
        Development company
            Page 30
            Page 31
        Extension service
            Page 32
            Page 33
        Fire service
            Page 34
        General supplies administration
            Page 34
            Page 35
        Housing authority
            Page 36
        Industrial commision
            Page 37
        Institute of tropical agriculture
            Page 37
        Insurance
            Page 38
            Page 39
        Isabella irrigation service
            Page 40
        Land authority
            Page 41
        Minimum wage board
            Page 42
            Page 43
        Planning, urbanizing and zoning board
            Page 44
        Police
            Page 45
        Public amusement and sports commission
            Page 46
        Public service commission
            Page 47
        School of tropical medicine
            Page 48
            Page 49
        State guard
            Page 50
        State insurance fund
            Page 51
        Tax court
            Page 51
        Tobacco institute
            Page 52
        Transportation authority
            Page 52
        University of Puerto Rico
            Page 53
            Page 54
        Of the governor of Puerto Rico
            Page 55
        War emergency program
            Page 55
            Page 56
            Page 57
    Federal agencies
        Page 58
        Agricultural experiment station
            Page 58
        Commodity credit corporation
            Page 59
        Conciliation service
            Page 60
        Emergency crop and feed loan office
            Page 60
        Farm security administration
            Page 61
        Federal land bank of Baltimore
            Page 62
        Foreign funds control
            Page 62
        Forest service
            Page 63
        National labor relations board
            Page 64
        Office of defense transportation
            Page 64
        Office of price administration
            Page 65
        Office of supply
            Page 66
            Page 67
        Puerto Rico reconstruction administration
            Page 68
        Soil conservation service
            Page 69
        United States employment service
            Page 70
        Wage and hour division
            Page 70
        War production board
            Page 71
        War shipping administration
            Page 72
    Data
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
        Page 101
        Page 102
        Page 103
        Page 104
Full Text



FORTY-FIFTH ANNUAL REPORT
OF THE

GOVERNOR OF PUERTO RICO


HONORABLE


REXFORD


G. TUGWELL


1945














UNIVERSITY
OF FLORIDA
LIBRARIES


i







FORTY-FIFTH ANNUAL REPORT
OF THE

GOVERNOR OF PUERTO RICO


HONORABLE


REXFORD


G. TUGWELL


1945













































SAN JUAN, P. R.
SERVICE OFFICE OF THE GOVERNMENT OF PIUETO Rico
PRINTING DIVISION
1946



















TABLE OF CONTENTS
Page
INTRODUCTION----------------------------- ------------------------ 1

FINANCES------------------------- --------------------------------- 3

LEGISLATION ------- ---------------------------------------- 4

OFFICE OF THE GOVERNOR -_.- --------------------
Bureau of the Budget ----------------------------------- ---- 6
Executive Secretary----------- ---------- ------------------- 7
Office of Information--------- ----- ------------------------- 7
Office of Statistics----------------------------------------- 9

DEPARTMENTS
Department of Agriculture------------- -------- ---------- 9
Department of Education ----------------------------------------- -12
Department of Health--------------------------------- 15
Department of Interior---------------------------------- --- 18
Department of Justice----- ---------------------------------- 20
Penal Institutions------ --- --------------------------- 21
Courts---------------- ---------------------------- 22
Department of Labor----------------------------------------- 23

AGENCIES
Agricultural Experiment Station---------------------------- --- -- 24
Aqueduct and Sewer Service-------- ----------------------- 26
Board of Elections ---------- ----------------------------- 27
Civil Service Commision--------------------------------------- 28
Communications Authority --------- --------------------------- 29
Development Bank_-------- --- ----------------------------- 29
Development Company------- --------------------------------- 30
Extension Service -------------------------------- 32
SFire Service-------------------------------------------------- 34
General Supplies Administration------------------------------ 34
Housing Authority- ----- ---------- --------------- 36
Industrial Commission--------------------- ----37
Institute of Tropical Agriculture ------------- ---------- 37
Insurance-------------------------------- ------------------- 38
SIsabela Irrigation Service--------------------------------- 40
Land Authority---------------------------------------- 41
Minimum Wage Board-------- --------------------------- 42
Planning, Urbanizing and Zoning Board --------------------- 44
3 Police -------------------------------- 45
Public Amusement and Sports Commission----- --------------- 46
Public Service, Commission ------ ---------------------- 47
- School of Tropical Medicine------------- ------------------ 48
State Guard-----------------------------------------------------50
Nt












IV TABLE OF CONTENTS

AGENCIEs-Continued. Page
State Insurance Fund------------------------------------ --- 51
Tax Court------------------------------------------------------ 51
Tobacco Institute------------------------------------------------ 52
Transportation Authority----------------------------------------- 52
University of Puerto Rico------------------------------------- 53
War Emergency Program -------------------------------------- 55
Water Resources Authority --------------------- --------- --- 56

FEDERAL AGENCIES
Agricultural Adjustment Agency---------------------------------- 58
Agricultural Experiment Station -------------------------------- 58
Commodity Credit Corporation --------------------------- ---- 59
Conciliation Service--------------------------------------------- 60
Emergency Crop and Feed Loan Office------------------------------ 60
Farm Security Administration------------------------- -----61
Federal Land Bank of Baltimore-------------------------------- 62
Foreign Funds Control---------------------------------- -- 62
Forest Service -------------------------------------- ---- 63
National Labor Relations Board---------------------------------- 64
Office of Defense Transportation----------------- -------- 64
Office of Price Administration ------------------------- ---- 65
Office of Supply --- --------------------------------------- 66
Puerto Rico Reconstruction Administration-------------------------- 68
Soil Conservation Service------------------------------------- 69
United States Employment Service------------------------------- 70
Wage and Hour Division----------------------------- 70
War Production Board ------------------ ----71
War Shipping Administration--------------------------------- 72













FORTY-FIFTH ANNUAL REPORT OF THE GOVERNOR
OF PUERTO RICO

TIrE HONORABLE
THE SECRETARY OF THE INTERIOR,
Washington 25, D.C.

SIR:
Pursuant to law, I have the honor to submit the following report
as Governor of Puerto Rico, for the fiscal year ended June 30, 1945.
INTRODUCTION

Although the accomplishments of the year 1944-45 were not in-
considerable, they are overshadowed by the potential importance of
several of the things barely begun.
A clear-cut policy, to which all parties subscribed, was established
for an approach to a solution of the problem of Puerto Rico's future
political status. In my message to the First Regular Session of the
16th Legislature, I suggested that Congress should define the possi-
bilities, and permit Puerto Ricans to choose which they preferred in
a plebiscite vote. The Legislature embodied this thought in its Joint
Resolution Number One. Later the Legislative Commission on
Status, under the chairmanship of Luis Mufioz Marin, made a strong
presentation of the case in Washington before the Senate Committee
on Territories and Insular Possessions. All this added up to no
more than a beginning, but I believe a good one and definitely in the
right direction.
The Agricultural Company with capital funds of $10,000,000 was
created by the Legislature on my recommendation. This represents
another beginning which may well have a profound effect on the
future of the Island. Puerto Rico's only important natural resource
is land. Whatever progress may be made toward industrialization, it
will always be essential to get the greatest possible benefit from the
land in terms of economic value. In the Agricultural Company,
Puerto Rico, for the first time, has an agency specifically and exclusi-
vely charged with the realization of this vital purpose. It has the au-
thority and funds to develop new commercial crops, and to organize
markets for these crops both locally and abroad. In the end this
may contribute even more to the upbuilding of the Island's economy
than industrialization.








FORTY-FIFTH ANNUAL REPORT


In an overcrowded island such as Puerto Rico, the problem of
sanitation is greatly important and greatly complicated. Basic to its
solution are adequate water and sewerage systems. These the Island
has never had. In the last year, however, a real beginning was made
by the Aqueduct Service which took over the San Juan metropolitan
water system in December 1944. At its regular session, in February
1945, the Legislature reconstituted the Service, as the Puerto Rico
Aqueduct and Sewer Service, and turned over to it all of the water
and sewer systems on the Island. This opens the way for a com-
prehensive and unified program of improvement.
Notable evidences of progress in programs already launched in-
elude: the opening of the Puerto Rico Development Company's new
glass container factory; the increase in profits from Proportional
Profit farms operated under supervision of the Land Authority; the
thoughtful consideration and intelligent support given by the Legis-
lature to the Planning Board's Second Six-Year Financial Program.
Developments in the relationships between Insular and Federal
government agencies have been encouraging. Not many years ago,
it was common practice among the Federal agencies to hold them-
selves apart from the main stream of Insular life, an-inner-island
unto themselves, planning and executing programs without too much
thought to the over-all Insular economy. As new blood, new ideas
and vigorous and positive programs were introduced into the Insular
Government, definite advancement has been made in the development
of a closer relationship between the Federal and Insular agencies.
Within the past year there have been numerous instances of this
type of cooperation, some large and important, some minor, but all
indicating a healthful trend. At least one of these, the Cambalache
Experimental Forest, involves a four-way cooperative program. Un-
der it the U. S. Forest Service has established technical supervision
over 600 acres of forested limestone hills belonging to the Insular
Land Authority for the purpose of developing the forests, under a
20-year cooperative agreement, on a sustained yield basis. The Land
Authority pays for the services of certain personnel. The Federal
Soil Conservation Service is constructing necessary drainage works
and the Insular War Emergency Program has built a road for hauling
out the timber. This four-way cooperation means that farmers in
the area will be supplied with timber for much of their household
use.
Another healthful trend is toward the centralization of Federal
and Insular agencies since the activities of the Insular agencies of
government have been strengthened and modernized by progressive








OF THE GOVERNOR OF PUERTO RICO


Insular legislation. During the past year the Insular Civil Service
Commission, bolstered by Insular legislation comparable to that
prevailing in the Federal Civil Service, was functioning so satis-
factorily that the Civil Service Commission of the Federal Govern-
ment saw fit to turn over all of its local activities to the Insular
Commission. Several other Federal agencies are now considering a
similar delegation of functions.
While the OPA fortunately is still operating, the need for some
of the other war time agencies such as the WPB, the ODT, the
Foreign Funds Control and the Office of Supply has diminished, and
they have been discontinued or are in the process.
On the whole, the year's record was good in terms both of the
present and future.
FINANCES

More cash than ever before was available to the Insular Govern-
ment in 1944-45.
General Fund.-Cash deposits in the General Fund during the
fiscal year amounted to $84,194,409.22, including repayment receipts
and transfers from trust funds totalling $4,691,878.32. This, plus,
the cash balance of $82,052,783.65 on June 30, 1944, amounted to
$166,247,182.87, which represents the total resources recorded for the
year. Total disbursements amounted to $61,700,539.74, including
transfers to trust funds of $7,115,418.03, leaving an available cash
balance of $104,546,653.13 on June 30, 1945. Total net appropriation
liabilities came to $69,323,437.75, resulting in an unobligated surplus
of $92,231,876.80 on June 30, 1945.
Revenue collections totalled $79,496,103, a decline of $24,497,533
from 1943-44. This decrease was almost entirely due to the sudden
falling off U. S. internal revenue collections on rum. In spite of this
decline, revenues for the year were much larger than can be expected
in normal years.
The condition of the General Fund at the beginning and end of
the fiscal year is shown in the following condensed, comparative state-

CONDITION AS OF JUNE 30, 1944
Cash balance June 30, 1944---------------- $82, 052, 783: 65
Less: appropriation liabilities carried over from
previous year ---------------------------- 7,131. 670. 84

Condition on June 30, 1944, excess of resources
over appropriation liabilities------------------------ $74, 921, 112.81









FORTY-FIFTH ANNUAL REPORT


CONDITION AS OF JUNE 30, 1945
Cash balance, June 30, 1945 ----- ---- $104,546,653.13
Less: appropriation liabilities carried forward
to fiscal year 1945-46---------- -- 12, 314, 776. 33

Condition on June 30, 1945, excess of resources
over appropriation liabilities _-------------------- $92, 231, 876. 80

Gain during the year -------------------- $17, 310, 763.99

The gain in resources for the fiscal year 1944-45 is explained
as follows:
Increase in cash balance---------------- $22,493, 869.48
Less: Increase in appropriation liabilities --- 5, 183, 105. 49

Gain during the year -------------- $17, 310, 763. 99
Trust Funds. The cash balance in Trust Funds at the end of
the fiscal year was $32,058,728.13 as compared with $27,872,108.82
on June 30, 1944. Transfers from the General Fund to Trust Fund
accounts amounted to $7,115,418.03, while transfers from Trust Fund
accounts to the General Fund totalled $1,171,901.06.
All Funds. The total cash balance of the general and trust funds
increased from $109,924,893 as of June 30, 1944 to $136,605,381 as
of June 30, 1945.
Bonded Indebtedness. During the year the bonded indebtedness
of the People of Puerto Rico was increased by $880,000-from
$11,244,000 on June 30, 1944 to $12,124,000 on June 30, 1945. The
increase was effected as follows:
New issues of bonds------------------------- $2, 000, 000
Bonds amortized ----------------------$925, 000
Bonds retired before maturity-------- 195,000
1, 020, 000

Net increase----------------------------- 880,000

Interest charges on bonded indebtedness for the year amounted
to $481,050, as compared with $551,397.50 in the preceding fiscal year.

LEGISLATION
The Sixteenth Legislature met in Special Session on January 11,
and appropriated $16,000,000 to the Insular Emergency Council for
its emergency relief program for 1944-45. The Legislature stipulated
that the money should be used to provide work for the unemployed
and financial compensation for those who are unable to work; to









OF THE GOVERNOR OF PUERTO RICO


reduce the price, through subsidies, of certain subsistence commodi-
ties; to aid a food-crop growing program, and to further better
utilization of the lands and resources of Puerto Rico. This Act was
approved by the Governor.
The first regular session convened on February 12 and proved to
be one of the most productive in the history of the Legislature. A
total of 587 bills was passed and of these 328 were approved. The
most important of the new laws are those:
Creating the Agricultural Company for the encouragement
of the maximum possible commercial development of the agri-
cultural and related resources of the Island;
Abolishing the provision of the Land Act which limited
the power of the Land Authority to expropriate to five years
from the date of its establishment;
Abolishing the limitation to $5,000,000 on bond issues of the
Communications Authority;
Creating the Puerto Rico Aqueduct and Sewerage Service
and providing for the transfer, ownership, operation and devel-
opment thereby of all the public aqueducts and sewer systems
in Puerto Rico;
Abolishing the Victory Tax;
Amending the Income Tax Law in order to increase the
normal tax of individuals, nonresidents, and partnerships and
corporations which do not have their offices in Puerto Rico;
Providing for the application of soil conservation practices
to protect watersheds, alleviate floods, and reduce the rate of
silting of reservoirs for power, irrigation and domestic water
supply;
Appropriating $5,000,000 to establish the Coffee Insurance
Corporation of Puerto Rico in the Department of Agriculture
and Commerce, for the protection of coffee growers against
storm damages;
Creating the Puerto Rico Labor Relations Board;
Creating the Office of Information for Puerto Rico;
Creating an Office of Puerto Rico in Washington;
Appropriating $18,000,000 to the Land Authority to carry
out the provisions of Title V of the Land Law, relating to the
resettlement of agregados;
Appropriating $2,500,000 to the Transportation Authority
for the purchase of capital assets, acquisition of lands, and the
making of studies of means and systems of transportation;
Appropriating $1,850,000 to the Puerto Rico Housing
Authority for the development of low-rent housing projects;
Appropriating an additional $15,000,000 to the Develop-
ment Bank of Puerto Rico;
Appropriating the sum of $17,500,000 to the Puerto Rico
Development Company;








FORTY-FIFTH ANNUAL REPORT


Providing a standard classification and compensation plan
for all positions in the Classified Civil Service of Puerto Rico;
Appropriating $19,439,750 to the Insular Emergency Coun-
cil for various relief programs.
Several concurrent resolutions were also adopted. The most im-
portant of these was Joint Resolution No. 1, requesting Congress to
define the forms of political status "that Congress may be disposed
to grant upon approval of any of them by the People of Puerto
Rico". Subsequently, the Tydings-Pifiero Bill was introduced in
Congress in May, which provides for a plebiscite vote on three forms
of political status-independence, statehood and dominion.
The General Appropriation Act for 1945-46, as finally approved,
amounted to $35,466,599.33.

OFFICE -OF THE GOVERNOR
BUREAU OF THE BUDGET
Due to political disagreement in the Legislature, the budget for
1944-45 was an extension of the General Appropriation Act for
1943-44. Many of the decisions made during the budget estimate
period of 1943-44 as to the proportionate distribution of funds for
the following fiscal year were used as bases for allocations in the
1945-46 model budget.
The proposed expenditures from the General Fund for 1945-46
were divided into the following five sections representing broad
functional purposes:
Budget A-Operating Expenses.
Budget B-Public Debt.
Budget C-Special Relief.
Budget D-Contributions to Public Service Enterprises.
Budget E-Capital Improvements (including part of War
Emergency Program appropriations).
In accordance with the Governor's policy that expenditures for
all governmental services should be subject to examination annually,
and that provision be made for them from the General Fund, adminis-
tration bills were prepared by the Bureau eliminating many self-re-
newing appropriations and so-called trust funds.
The Bureau assisted the Civil Service Commission in preparing
a Classification and Compensation Plan. This plan was approved by
the Legislature in a separate Uniform Compensation Act effective
July 1, 1945.
The routine work of making amendments to executive budgets
was carried out during the year.








FORTY-FIFTH ANNUAL REPORT


Providing a standard classification and compensation plan
for all positions in the Classified Civil Service of Puerto Rico;
Appropriating $19,439,750 to the Insular Emergency Coun-
cil for various relief programs.
Several concurrent resolutions were also adopted. The most im-
portant of these was Joint Resolution No. 1, requesting Congress to
define the forms of political status "that Congress may be disposed
to grant upon approval of any of them by the People of Puerto
Rico". Subsequently, the Tydings-Pifiero Bill was introduced in
Congress in May, which provides for a plebiscite vote on three forms
of political status-independence, statehood and dominion.
The General Appropriation Act for 1945-46, as finally approved,
amounted to $35,466,599.33.

OFFICE -OF THE GOVERNOR
BUREAU OF THE BUDGET
Due to political disagreement in the Legislature, the budget for
1944-45 was an extension of the General Appropriation Act for
1943-44. Many of the decisions made during the budget estimate
period of 1943-44 as to the proportionate distribution of funds for
the following fiscal year were used as bases for allocations in the
1945-46 model budget.
The proposed expenditures from the General Fund for 1945-46
were divided into the following five sections representing broad
functional purposes:
Budget A-Operating Expenses.
Budget B-Public Debt.
Budget C-Special Relief.
Budget D-Contributions to Public Service Enterprises.
Budget E-Capital Improvements (including part of War
Emergency Program appropriations).
In accordance with the Governor's policy that expenditures for
all governmental services should be subject to examination annually,
and that provision be made for them from the General Fund, adminis-
tration bills were prepared by the Bureau eliminating many self-re-
newing appropriations and so-called trust funds.
The Bureau assisted the Civil Service Commission in preparing
a Classification and Compensation Plan. This plan was approved by
the Legislature in a separate Uniform Compensation Act effective
July 1, 1945.
The routine work of making amendments to executive budgets
was carried out during the year.








OF THE GOVERNOR OF PUERTO RICO


EXECUTIVE SECRETARY
Corporations and Cooperative. Associations: A total of 123 do-
mestic corporations was registered during the year, 19 more than
the previous year. Of the 56 which were dissolved, 26 of them
were effected by the usual procedure and the remainder by legis-
lative action. Three foreign corporations qualified themselves to con-
duct business in the Island and three foreign corporations withdrew.
Three cooperative associations of producers or consumers were
organized, four less than in 1943-44. Two of these associations
operate in the mercantile field, and one in tobacco. Six cooperatives
were dissolved during the year. Three cooperative marketing asso-
ciations were organized.
A total of 77 domestic, non-profit associations were registered,
five more than in 1943-44. Six were dissolved in accordance with
the law, and 30 by legislative action.
Passports: A total of 2,180 passports was issued during the
year, and 72 passports were renewed. The Office also investigated
and reported the birth records of 300 merchant seamen, who, claiming
to have been born in Puerto Rico, had applied to the State Depart-
ment for seamen's passports.
Exit Permits: Exit permits were issued to 158 persons in 1944-45
as compared with 135 during the previous year.
Trade Marks: A total of 236 domestic trade marks were regis-
tered as compared with 135 in 1943-44.
Fees: Fees collected by the Executive Secretary's Office amounted
to $17,292.68.
OFFICE OF INFORMATION FOR PUERTO RICO
The Office of Information for Puerto Rico, which, since June 1942
operated as a unit in the Governor's Office, was established as an-
independent agency of the Insular Government by Act No. 225
approved May 12, 1945. The principal duty of the Office of Infor-
mation for Puerto Rico, as defined in the Act, is "to carry out a
wide program of information and publicity for Puerto Rico in the
United States and other countries."
In the course of the year, the Office of Information launched its
first major project for publicizing Puerto Rico on the Continent.
This project was the production of six 15-minute documentary re-
cordings designed specifically for circulation in continental schools.
By arrangement with the Secretary of the Interior, the personnel
and facilities of the Radio Section of the Department's Division of









FORTY-FIFTH ANNUAL REPORT


Information were made available for this work. At the end of the
year, the production of the recordings had been completed. Plans
were well advanced for the preparation of supplementary informa-
tional material to be sent with them, and arrangements had been made
for distribution by the Federal Radio Education Committee, an or-
ganization affiliated with U. S. Office of Education.
As of July 1, 1945, some 3,000 continental schools, with an en-
rollment of 6,000,000, had the professional play-back machines nec-
cessary to reproduce the recordings. Many other schools will buy
these machines as soon as they become available after the war. The
potential school audience for the recordings within the next two years,
therefore, will be not far from 10,000,000.
The campaign to introduce Puerto Rico to continental Americans
is based on the assumption that Continentals generally know little
or nothing about the Island-even such rudimentary, points as its
geographic location and approximate population. This assumption
is supported by the evidence of those who have had occasion to
sample a cross-section of continental knowledge of the Island. The
object of the campaign, illustrated by the "This is Puerto Rico"
series, is simply to acquaint audiences on the Continent with the basic
facts concerning the Island.
The visit of the Legislative Commission on Political Status to
Washington in May, 1945, resulted in considerable special publicity
on the Continent. News commentators and columnists, including
Raymond Swing and Lowell Mellet, took notice of the Commission's
program. Editorials and special articles appeared in various news-
papers including the Washington Post, and the Commission's Chair-
man, Mr. Luis Mufioz Marin, spoke to a nation-wide audience in a
talk over the Columbia Broadcasting System. The Office of In-
formation worked closely with the Commission in connection with
public relation matters.
In Puerto Rico, the Office of Information took the first steps in
the development of a campaign designed to acquaint Puerto Ricans
with the functions and activities of the Insular Government. Ar-
rangements were made to obtain the services of Francisco Acevedo,
one of the Island's leading news commentators, to produce a series
of 15-minute semi-weekly programs, to be broadcast over three sta-
tions, under the title "Reportajes Oficiales". Everything was in
readiness for the inauguration of this series at the close of the fiscal
year.
During the year the Office of Information continued to handle
public relations for the Office of the Governor. A total of 697 press








OF THE GOVERNOR OF PUERTO RICO


EXECUTIVE SECRETARY
Corporations and Cooperative. Associations: A total of 123 do-
mestic corporations was registered during the year, 19 more than
the previous year. Of the 56 which were dissolved, 26 of them
were effected by the usual procedure and the remainder by legis-
lative action. Three foreign corporations qualified themselves to con-
duct business in the Island and three foreign corporations withdrew.
Three cooperative associations of producers or consumers were
organized, four less than in 1943-44. Two of these associations
operate in the mercantile field, and one in tobacco. Six cooperatives
were dissolved during the year. Three cooperative marketing asso-
ciations were organized.
A total of 77 domestic, non-profit associations were registered,
five more than in 1943-44. Six were dissolved in accordance with
the law, and 30 by legislative action.
Passports: A total of 2,180 passports was issued during the
year, and 72 passports were renewed. The Office also investigated
and reported the birth records of 300 merchant seamen, who, claiming
to have been born in Puerto Rico, had applied to the State Depart-
ment for seamen's passports.
Exit Permits: Exit permits were issued to 158 persons in 1944-45
as compared with 135 during the previous year.
Trade Marks: A total of 236 domestic trade marks were regis-
tered as compared with 135 in 1943-44.
Fees: Fees collected by the Executive Secretary's Office amounted
to $17,292.68.
OFFICE OF INFORMATION FOR PUERTO RICO
The Office of Information for Puerto Rico, which, since June 1942
operated as a unit in the Governor's Office, was established as an-
independent agency of the Insular Government by Act No. 225
approved May 12, 1945. The principal duty of the Office of Infor-
mation for Puerto Rico, as defined in the Act, is "to carry out a
wide program of information and publicity for Puerto Rico in the
United States and other countries."
In the course of the year, the Office of Information launched its
first major project for publicizing Puerto Rico on the Continent.
This project was the production of six 15-minute documentary re-
cordings designed specifically for circulation in continental schools.
By arrangement with the Secretary of the Interior, the personnel
and facilities of the Radio Section of the Department's Division of









OF THE GOVERNOR OF PUERTO RICO


releases was issued to newspapers, radio stations and news services.
An illustrated booklet describing war activities in Puerto Rico, en-
titled "Puerto Rico in the War", was published in both English
and Spanish and distributed on the Continent and in Puerto Rico.
Reprints of an article entitled "Let's Begin with Puerto Rico",
published in the May 1944 issue of Fortune Magazine were also dis-
tributed in the States. As part of its routine duties, the Office of
Information rendered editorial assistance in the preparation of the
Governor's Annual Report, and advised with various Insular Gov-
ernment agencies on special public relations problems.

OFFICE OF STATISTICS
The Office of Statistics continued to expand its activities during
the past year although unable to replace the trained statisticians lost
to the armed forces in 1943-44.
A monograph entitled "The Balance of External Payments of
Puerto -Rico" was published jointly by the Office and the University
of Puerto Rico. This study covered the period 1941-43 and will be
brought up to date in the near future.
A special study, including statistical data on various phases of the
economy of the Island, was made for presentation at the hearings
on the Tydings Bill for independence.
A list of Insular government publications was prepared upon re-
quest and a directory of Federal agencies stationed .in Puerto Rico
was published. A similar directory of Insular agencies is in pre-
paration.
The regular work of the Office continued to be the publication and
distribution of a monthly statistical report for circulation in conti-
nental United States, neighboring Caribbean countries, South America,
Central America and Canada. To keep the Division of Territories
and Island Possessions of the Department of the Interior informed
each month of the economic activities of the Island, tie Office of
Statistics furnished it with special compilations of statistical data and
various publications of other Insular agencies.

DEPARTMENTS
DEPARTMENT OF AGRICULTURE AND COMMERCE
During the last legislative session about 30 laws relating directly
or indirectly to agriculture were approved, and a total of $1,196,600
was appropriated for special purposes, such as improvement of
roads, purchase of lands and increased reforestation projects, in addi-
tion to a general appropriation of $1,036,230. The Department was









OF THE GOVERNOR OF PUERTO RICO


releases was issued to newspapers, radio stations and news services.
An illustrated booklet describing war activities in Puerto Rico, en-
titled "Puerto Rico in the War", was published in both English
and Spanish and distributed on the Continent and in Puerto Rico.
Reprints of an article entitled "Let's Begin with Puerto Rico",
published in the May 1944 issue of Fortune Magazine were also dis-
tributed in the States. As part of its routine duties, the Office of
Information rendered editorial assistance in the preparation of the
Governor's Annual Report, and advised with various Insular Gov-
ernment agencies on special public relations problems.

OFFICE OF STATISTICS
The Office of Statistics continued to expand its activities during
the past year although unable to replace the trained statisticians lost
to the armed forces in 1943-44.
A monograph entitled "The Balance of External Payments of
Puerto -Rico" was published jointly by the Office and the University
of Puerto Rico. This study covered the period 1941-43 and will be
brought up to date in the near future.
A special study, including statistical data on various phases of the
economy of the Island, was made for presentation at the hearings
on the Tydings Bill for independence.
A list of Insular government publications was prepared upon re-
quest and a directory of Federal agencies stationed .in Puerto Rico
was published. A similar directory of Insular agencies is in pre-
paration.
The regular work of the Office continued to be the publication and
distribution of a monthly statistical report for circulation in conti-
nental United States, neighboring Caribbean countries, South America,
Central America and Canada. To keep the Division of Territories
and Island Possessions of the Department of the Interior informed
each month of the economic activities of the Island, tie Office of
Statistics furnished it with special compilations of statistical data and
various publications of other Insular agencies.

DEPARTMENTS
DEPARTMENT OF AGRICULTURE AND COMMERCE
During the last legislative session about 30 laws relating directly
or indirectly to agriculture were approved, and a total of $1,196,600
was appropriated for special purposes, such as improvement of
roads, purchase of lands and increased reforestation projects, in addi-
tion to a general appropriation of $1,036,230. The Department was









OF THE GOVERNOR OF PUERTO RICO


releases was issued to newspapers, radio stations and news services.
An illustrated booklet describing war activities in Puerto Rico, en-
titled "Puerto Rico in the War", was published in both English
and Spanish and distributed on the Continent and in Puerto Rico.
Reprints of an article entitled "Let's Begin with Puerto Rico",
published in the May 1944 issue of Fortune Magazine were also dis-
tributed in the States. As part of its routine duties, the Office of
Information rendered editorial assistance in the preparation of the
Governor's Annual Report, and advised with various Insular Gov-
ernment agencies on special public relations problems.

OFFICE OF STATISTICS
The Office of Statistics continued to expand its activities during
the past year although unable to replace the trained statisticians lost
to the armed forces in 1943-44.
A monograph entitled "The Balance of External Payments of
Puerto -Rico" was published jointly by the Office and the University
of Puerto Rico. This study covered the period 1941-43 and will be
brought up to date in the near future.
A special study, including statistical data on various phases of the
economy of the Island, was made for presentation at the hearings
on the Tydings Bill for independence.
A list of Insular government publications was prepared upon re-
quest and a directory of Federal agencies stationed .in Puerto Rico
was published. A similar directory of Insular agencies is in pre-
paration.
The regular work of the Office continued to be the publication and
distribution of a monthly statistical report for circulation in conti-
nental United States, neighboring Caribbean countries, South America,
Central America and Canada. To keep the Division of Territories
and Island Possessions of the Department of the Interior informed
each month of the economic activities of the Island, tie Office of
Statistics furnished it with special compilations of statistical data and
various publications of other Insular agencies.

DEPARTMENTS
DEPARTMENT OF AGRICULTURE AND COMMERCE
During the last legislative session about 30 laws relating directly
or indirectly to agriculture were approved, and a total of $1,196,600
was appropriated for special purposes, such as improvement of
roads, purchase of lands and increased reforestation projects, in addi-
tion to a general appropriation of $1,036,230. The Department was










FORTY-FIFTH ANNUAL REPORT


also authorized by the Legislature to conduct a survey of the sugar
industry of the Island with the purpose of obtaining first hand in-
formation on the economic, technical and labor problems appertain-
ing to it.
Sugar and Rum: Despite a prolonged strike that involved the
entire industry for 36 days and delayed the harvest for more than
a month, the sugar yield was better than that of 1943-44. Up to
June 30, 1945, production reached 886,000 tons, but 40 mills continued
their grinding season, and at the end of August actual production
amounted to 963,775 tons-a gain of 240,164 tons over the preceding
year. Value of rum exports declined from about $35,000,000 to
$14,000,000.
Tobacco: This industry has been considerably stimulated by the
tobacco shortage in the United States and the accompanying-rise in
price. This year's crop amounted to an estimated 400,000 quintals
which is 115,000 more than was harvested in 1943-44. The cigar
industry was also given a great impetus by the emergencies of war.
A monthly average of 12,000,000 cigars was manufactured, half of
which were exported to the States.
Coffee: Although coffee cultivation on the Island has been de-
clining for some years, the 304,556 quintals harvested in 1944-45
represent a gain of more than 114,000 quintals over the 1943-44
crop. A cooperative association, the "Cafeteros de Puerto Rico",
assisted in the marketing of this product. Of importance to the
strengthening of coffee production is the appropriation by the last
Legislature of $5,000,000 for the establishment of a corporation, within
the Department of Agriculture and Commerce, to insure the coffee
crop against hurricane damage.
Pineapples: Exports of fresh pineapple were made possible for
the first time in two years by improvements in shipping facilities. Of
the estimated 550,000 crates of pineapple produced, 10,000 crates
were shipped to the Continent as fresh fruit, while 335,000 of the
350,000 cases of the canned product were also exported.
Coconuts: This crop has shown little change in production for
the past five years, although exports increased by almost 3,000,000
nuts over that of 1943-44. In all, 24,000,000 nuts were harvested
in 1944-45, a decline of 1,000,000 from the previous year.
Food Crops: Most food crops continued to register a decided
increase over-pre-war years, although the total food crop production
during the fiscal year was 21.4 per cent less than during the preced-
ing year. Vegetables were the only food that showed a gain (9.7 per









OF THE GOVERNOR OF PUERTO RICO


cent) over the production of 1943-44. Ninety-two per cent of all
vegetables consumed in the Island in 1944-45 were grown locally.
The Department distributed $104,215 worth of seed and fertilizer
to 21,314 farmers. A total of 21,000 acres was utilized in the plant-
ing program.
Fertilizer: One of the great handicaps to the crop-raising pro-
gram since 1942 was removed this year with the resumption of
shipping services and the attendant increase in importation of es-
sential fertilizer materials. The pre-war level of imports of this
commodity was surpassed, with a total of 168,757 tons being received.
This figure is significant, when compared with the 150,000 tons re-
ceived in 1940-41, and the 59,399 tons imported in 1942-43.
Animal Husbandry: The work of this division was centered
around six different lines of activity; (1) the eradication of bovine
tuberculosis; (2) eradication of contagious abortion; (3) calfhood
vaccination with "strain 18"; (4) vaccination against epizootic dis-
eases; (5) diagnosis and treatment of common ailments and surgical
operations; and (6) inspection of imported cattle.
The campaign against bovine tuberculosis continues to show
gratifying results, and the records for the past 10 years indicate
a steady and persistent reduction in the number of positive reactors.
The tick eradication program, on the other hand, was hampered by
insufficient veterinary personnel.
Soil Conservation: The Committee on Conservation of Agricul-
tural Wealth, working by cooperative agreement with individual
farmers, reported a favorable year in which contour farming was
applied to a total of 12,743 acres, 53,500 terraces were built on
475 acres and conservation practices were applied on 12,000 acres of
land under agreements made during the previous year. Application
of these methods resulted in substantial increases in sugar cane pro-
duction, coffee, food and forage crops.
Forestry: The forestry services received increased financial as-
sistance from the Insular Government. The Puerto Rico Planning
Board approved a six-year public works program relating to forestry
which was to start on July 1, 1945. This new program will include
the reforestation of public lands, the establishment of four new mass-
production nurseries, the purchase of new lands, the extension of soil
conservation practices on tillable lands, and the construction of new
roads and foot and horse trails within the Insular forests. The
Legislature appropriated $1,000,000 in 1945 for the first year of
this program.









FORTY-FIFTH ANNUAL REPORT


Proof of a growing public interest in this service is shown by
the demand of farmers for forest tree seedlings for wind-breaks,
shelterbelt, and productive woodlots. This demand exceeded the pro-
ductive capacity of the present nurseries of the Forest Service. In all,
the Service distributed 1,981,731 forest trees and 27,107 fruit trees.
Of the 42 states and two territories that receive Federal aid in farm
forest planting, Puerto Rico ranked fifth in number of trees actually
grown and distributed in 1944.
Plant Quarantine Service: A total of 4,998 airplanes and 811
ships arriving from foreign countries and the United States via
foreign countries were inspected, also 992 planes and 742 ships arriv-
ing from the United States and its territories. Of this total of 7,533
ships and planes, 552 were found with prohibited material and 1,237
with restricted material.
Fishing: The stimulation of a local fishing industry continued
to be the aim of the Division of Fisheries and Wildlife. The year's
accomplishments include the sale of fishing materials throughout the
Island, the construction of a freezing unit at Fajardo and the pur-
chase of 10 boats for the establishment of a fishing fleet.
Commerce: The total dollar value of exports fell from
$147,735,768 in 1943-44 to $116,203,959 in 1944-45. These figures,
however, do not reflect a general decline but rather the effect of a
marked decrease in the shipments of rum and sugar, the latter being
caused by the delay in the sugar harvest occasioned by the cane
workers' strike. Most other products exported from the Island
showed a decided increase over both last.year and the pre-war year
of 1939-40.
The most noticeable gain was registered in tobacco, both manu.
factured and unmanufactured, which rose from $7,881,337 in 1943-44
to $22,295,457 in 1944-45. Needlework, always one of the most im-
portant exports of the Island, increased by almost $4,000,000 over
1943-44, and by almost $6,000,000 over 1939-40.
DEPARTMENT OF EDUCATION
During the school year 1944-45, the ,efforts of the Division of
Supervision of the Department were centered around the evaluation
of the work done during the first three-year cycle of operation of
the school system under the 6-3-3 plan. An Island-wide survey was
made of the physical plant, distribution and assignment of teachers,
enrollment and materials of instruction. An intensive study was
also made of the administrative, supervisory and instructional work
being done in five selected school districts.









OF THE GOVERNOR OF PUERTO RICO


Total enrollment in all public and accredited private day schools
was 345,090, of which 330,870 were in public schools. This represents
an increase of 7.1 per cent over 1943-44. The gain resulted,
however, from an increase in the number of students attending school
either on a half day basis or under the interlocking system. The
number of those enrolled on a full basis actually declined by 10,233.
Only 53 per cent of the total school population (those between the
ages of 6 and 18) attended any public or private day school during
1944-45.
As in the preceding year, the greatest increase in enrollment
occurred at the secondary level. Senior high schools enrolled 19,604
or 25.7 per cent more pupils than in the previous year and junior
high schools enrolled 53,372 or an increase of 13 per cent. Element-
ary school enrollment, however, declined by one per cent in rural areas.
Two major obstacles to the extension of educational services in
Puerto Rico are the lack of buildings and trained teacher personnel.
Of the 2,733 school buildings in use in 1944-45, 1,089 were not
government owned. The six-year program for 1944-45 to 1949-50
estimates that 8,124 additional school rooms are needed to equalize
educational opportunities on the Island. Eighty-six new school rooms
were constructed during the fiscal year.
The war has accentuated the teacher problem by causing many
teachers to leave their profession either to enter the armed forces
or for more remunerative work in other fields. This has made neces-
sary the employment of many emergency teachers who lack proper
training or experience. Of the 7,556 teachers employed in the public
schools in 1944-45, 53 per cent were normal school or college gra-
duates.
Expenditures for educational purposes during the fiscal year
totalled $18,789,356.33, equivalent to $56.79 per pupil enrolled.
Lunch-rooms, which were operated in every municipality, functioned
at a cost of $4,857,844.46. Of this sum the Federal government
provided food valued at $2,527,866.
The schools continued to contribute generously to the war effort.
War bond and stamp sales amounted to $1,871,387.20, or $833,767.90
more than were sold in the previous year.
The teaching of English at all levels of instruction was handi-
capped by lack of experienced teachers. Various methods of teacher
guidance were adopted to cope with this problem. Institutes were
held throughout the Island for teachers of English. The basic voca-
bulary and reading materials were revised as the result of teacher
reports. Circular letters and bulletins devoted to different aspects









FORTY-FIFTH ANNUAL REPORT


of teaching English were distributed among the teachers. Five junior
high schools experimented successfully with an English Laboratory
period which represented a doubling of the time previously devoted
to the subject.
The course of Community Problems that was introduced in all
elementary schools in 1942-43 was supplemented by the publication
.of a new paper called Problemas de la Comunidad to furnish students
with material on the economic and social conditions of Puerto Rico.
Teacher guidance in this subject was strengthened through demon-
stration lessons, group conferences and the distribution of bulletins
containing background material.
There are now 141 second unit schools in rural areas where junior
high school courses are offered. Since 1931 these schools have been
Enlarging their curriculum to include courses in vocational agriculture
for boys and in home economics for the girls. The six-year pro-
gram in education has endorsed this policy and recommends that
small farms, not to exceed 10-12 acres each, be purchased for. the
use of second unit schools wherever the land now in use has been
under lease or is insufficient for agricultural practices. Seven farms
.,valued at $19,710 have already been acquired and negotiations started
for the purchase of 49 other parcels of land.
On the senior high school level, attention was focused on the
improvement of teaching techniques and further revision of the cur-
riculum to fit the needs of the school population. The college pre-
paratory course is being eliminated and a more general course substi-
tuted for it.
Classes for adult education in all of the 77 municipalities had a
total enrollment of 4,330 as compared to 8,009 last year. Classes
were organized for illiterate students, advanced groups, English
groups, sixth grade and eighth grade groups. At the end of the
school year 221 eighth grade diplomas and 641 sixth grade diplomas
were granted.
At the beginning of the year 1945, the extension day schools
were reorganized as regular high schools. Total enrollment was
2,541 and 146 high school diplomas were issued. Summer high schools
were organized in 19 towns and enrolled 3,312 students.
Increasing emphasis is being placed on the use of visual aids to
instruction in all schools on the Island. The Bureau of Adult and
Extension Activities has developed a sizable library of movies, slides
and stereographs, and acts also as the distribution center for educa-
tional films released by the Office of Inter-American Affairs.









OF THE GOVERNOR OF PUERTO RICO


During the past school year the Bureau maintained 500 radio
sets in public schools for the reception of educational and cultural
programs broadcast by the School of the Air.
The stimulus given Trade and Industrial Education by the war
was removed with the discontinuance of the War Production Train-
ing Program in May 1945 and the consequent loss of Federal funds.
Plans are being made to reorganize this Division on a permanent
regular basis. During the year 1944-45 more than 400 students were
placed in Army and Navy projects and returning veterans were
enrolled in various courses. The Legislature appropriated $847,000
for the construction of vocational school buildings at Ponce, Arecibo
and Mayagiiez and $10,000 for the purchase of equipment and sup-
plies for the Division of Trade and Industrial Education. The equip-
ment of the regular shops was greatly improved by the transfer of
materials from the shops of the War Production Training Program.
Total enrollment in all-day classes in vocational agriculture for
the year 1944-45 was 4,405. School farm activities produced an
income of $31,820.08 up to May 31, 1945. Of this sum, $6,423.77
was distributed among pupils engaged on farm projects in the second
unit schools. Active chapters of the Future Farmers of America
functioned in 92 schools with a membership of 3,279.
The cost of rehabilitating disabled veterans is financed entirely
by the Federal government. By June 30, 1945 the Division of Voca-
tional Rehabilitation had a total case load of 4,287 disabled persons,
of whom 11 have been transferred to the Veterans' Administration.
DEPARTMENT OF HEALTH
The vital statistics for the calendar year 1944 show no sig-
nificant change in Puerto Rico's population problem. The actual rate
of population increase is about 55,000 per year. Estimated as of July
1, 1944, the inhabitants of the Island numbered 2,012,167, which re-
presents an average density of 586 persons per square mile. The
birth rate in 1944 was 41.0 per 1,000 and the death rate was 14.8
per 1,000, both being small increases over those of 1943. Neverthe-
less, the death rate was the second lowest ever recorded in Puerto
Rico.
The chief causes of death continued to be diarrhea and enteritis,
tuberculosis and pneumonia. These, together with diseases of the
heart, nephritis, cancer and malaria, were responsible for 18,400 deaths
or 62 per cent of the total. While the number of deaths resulting
from diarrhea and enteritis was greater than in 1943, deaths from
tuberculosis in 1944 declined 1.1 per cent.









FORTY-FIFTH ANNUAL REPORT


Of the 42,463 cases of communicable diseases reported during
1944, 26.4 per cent were cases of malaria, 26.1 syphilis, 15.8 tuber-
culosis, 12.4 gonorrhea, 5.7 measles, 5.6 influenza and 3.6 whooping
cough. All remaining causes of reportable sickness combined were
responsible for only 4.4 per cent. The only diseases which reached
epidemic proportions during the calendar year 1944 were measles
and whooping cough.-
There was a moderate increase in the amount of immunization
work done by the Public Health Units. A total of 58,807 persons
was vaccinated against smallpox in 1944 as compared with 51,536
in 1943; 16,929 children were immunized against diphtheria, nearly
double the total for 1943 and 37,243 persons were inoculated against
typhoid fever as compared with 32,472 in 1943.
In its antituberculosis program the Department is seriously ham-
pered by lack of equipment, hospitals and trained personnel. Facili-
ties for the examination and care'of tuberculosis cases are limited to
20 clinics and five hospitals with a total bed capacity of 1,500. In
1944 a total of 118,016 persons were examined in the tuberculosis
clinics; 132,634 persons were fluoroscoped; 18,042 chests were X-
rayed; 10,378 cases were treated with artificial pneumothorax; 49,543
cases were administered pneumothorax insufflations; and 3,913 new
cascn were discovered. The Traveling X-Ray Unit fluoroscoped 11,380
persons of whom 221 were found positive. A total of 4,478 persons
was examined in schools and in factories.
Considerable progress was made in anti-malarial work performed
by the Bureau of Malaria Control with field workers provided by the
War Emergency Program. During the year 1944-45 these field
workers made a house to house survey of some 87,937 families with
clinical symptoms of malaria. In the course of these visits 41,386
blood smears were taken, of which 5,165 (12.5 per cent) were positive.
All of the positive cases were given a follow-up five day treatment.
Temporary measures for the control of the anopholine included
construction and reconditioning of open drainage ditches, opera-
tion of tide gates, clearance of vegetation in outfalls, rivers, lagoons
and irrigation reservoirs, and operation of mosquito traps. At
Arroyo, Guayama, Salinas, Santa Isabel, Ponce and Rio Piedras
drainage operations of a permanent character were carried out during
1944-45. A major drainage project was undertaken at Santa Isabel
which consisted of the installation of subsoil drainage systems, lining
of earth ditches with pre-cast inverts and side slabs, construction of
main outfalls and the manufacture of the pre-cast concrete products
used in carrying out this work.









OF THE GOVERNOR OF PUERTO RICO


A shortage of engineers made it impossible to complete an Island-
wide malaria survey but considerable progress was made at Ponce
and Arroyo through the joint efforts of the Bureau and the United
States Public Health Service.
The malaria mortality rate per 100,000 population fell from 58.9
in 1943 to 49.9 in 1944 and the morbidity rate from 810.3 in 1943
to 557.1 in 1944. A survey of statistics on malaria from 1930 to the
present shows that this disease is steadily being brought under control
in Puerto Rico.
The treatment procedure for the control of venereal diseases was
considerably changed during the fiscal year in order to permit the use
of penicillin. In addition to the diagnostic center already operating
at Manati, three new ones were created at San Juan, Ponce and Agua-
dilla and a rapid treatment center was organized at Caguas exclusi-
vely for the 10-day treatment of syphilis. A total of 13,831 cases
of syphilis and 5,914 cases of gonorrhea received treatment at the
venereal disease clinics and 5,466 cases were attended at the rapid
treatment centers.
School hygiene services of the Bureau of Maternal and Infant
Hygiene included the inspection of 54,758 children by nurses; the
examination of 11,392 children by health officers; and the vaccination
and immunization of 53,740 children.against smallpox, diptheria and
typhoid fever. The Bureau also conducted 5,585 clinic sessions for
prenatal care; gave dental care to 13,274 school children; supervised
the work of 1,728 licensed assistant mid-wives; and held more than
3,000 consultations on nutrition problems. The Nutrition Section
also delivered 250 talks to school children and other groups, presented
90 films on nutrition and conducted 130 demonstrations on the proper
preparation of food.
The Crippled Children's Bureau has 60 beds available for its use
in each of three district hospitals and 77 beds in the Convales-
cent Home at Guaynabo. During 1944-45, 919 cases were treated, 545
patients were hospitalized and 508 operations were performed.
The laboratory work of the Department was performed by the
eight district public health laboratories and in the clinical laboratories
of the five district hospitals, the five tuberculosis hospitals, the
psychiatric hospital and the one venereal disease hospital. In all,
755,838 tests were made. The Bureau of Chemistry analyzed 10,989
samples of food, drugs, milk, cosmetics and miscellaneous materials.
Of the 9,204 samples of milk examined, 261 were found to be adul-
terated.









FORTY-FIFTH ANNUAL REPORT


An effort was made to improve the training of public health per-
sonnel at the School of Tropical Medicine, at the University of
Puerto Rico and in the United States. In all, 116 employees or
future employees benefited by this special training program during
the year. A plan for increasing the number of public health units
and for reorganizing the supervisory system was approved by the
Legislature.
Hospital services increased despite the shortage of doctors and
nurses. The five district hospitals under the supervision of the Divi-
sion of Insular Medical Services cared for more than 19,000 patients
in 1944-45 and 1,947 cases were hospitalized in the Insular Hospital
of Psychiatry.
Direct relief is administered by the Division of Public Welfare
from funds provided by the War Emergency Program. By June
30, 1945, 26,466 cases were receiving monthly public assistance
(usually $7.50) and 47,832 applications for aid were pending. In
addition to the $2,200,233.45 expended on these regular monthly
grants, $14,485.19 were spent on emergency relief out of Insular
funds and $6,937.26 of Federal funds were applied to Civilian War
Assistance and assistance to enemy aliens.
Child Welfare services were considerably extended during 1944-45,
with a total of 9,155 cases handled as compared with 6,658 in 1943-44
and 2,607 in 1942-43. The Bureau of Child Welfare helped 7,955
of these children to remain in their own homes or in the homes
of relatives and placed the majority of the others in foster or board-
ing homes.
Public water supplies and sewerage systems are supervised and
controlled by the Bureau of Sanitary Engineering, and 1,343 inspec-
tions were made during the fiscal year. Ten new sewerage systems
were approved and are now under construction.
The newly-organized (October, 1944) Tyhpus and Plague Control
Section entered upon a program of rat extermination. A total of
185 buildings were inspected of which 119 have already been com-
pletely rat-proofed.
DEPARTMENT OF THE INTERIOR
The war forced this Department to limit its activities chiefly
to maintenance of existing work and planning for post-war projects.
In addition, work performed by the War Emergency Program, in-
volving expenditures of more than $2,000,000, was sponsored by the
Department, which contributed about 10 per cent of the total cost.
Road construction in 1944-45 was limited because of restrictions








OF THE GOVERNOR OF PUERTO RICO


on construction and difficulties in obtaining equipment and materials.
Only seven road contracts were undertaken, of which six were with
Federal aid. The cost of these roads was estimated at almost
$1,000,000 but only $283,156.29 was spent during the year. The
Department sponsored and supervised the construction operations
on 65 secondary roads, a section of Insular Road No. 2 and the
approaches to the Rio Hondo Bridge. The total amount expended
during the year on the 65 municipal roads by the WEP was $1,516,380
and the contribution of the Department was $219,698. The length
of Insular roads constructed was 7.05 kilometers and the length of
secondary roads was 39.381 kilometers.
At the end of the fiscal year there were 3,068.8 kilometers of
Insular and municipal roads under maintenance, with a total expendi-
ture of $1,738,327. The cost of maintenance per kilometer ($566)
was the highest since the year 1937-38--an increase of exactly $100
over that of last year.
Survey work was greatly intensified. A total of 229.7 kilometers
of roads was located, representing more than $10,000,000 in
post-war construction. Designs were prepared for 114.05 kilo-
meters of highways at an estimated cost of more than $3,000,000.
In addition, the work of preparing a topographical aerial map of
Puerto Rico was continued jointly with the United States Geological
Survey.
Construction of public buildings was handicapped by restriction
on construction materials by the War Production Board. Building
projects with a total value of $1,254,250 were begun and completed
during 1944-45, and plans prepared by other governmental and
private agencies for additional projects valued at $605,426.35 were
revised by the Division of Public Buildings. Repairs, alterations and
improvements of public buildings in the amount of $387,000 were
carried out by the WEP and additional rehabilitation work was
performed by the Department using budgetary funds totalling
$160,000.
The Engineering Division for Piers and Harbors spent $106,046.74
on the construction and improvement of various ports. Plans were
prepared for new projects, at an estimated cost of $224,000, for the
ports of San Juan and Vieques. An estimate was made for the
construction of a marginal wharf on the North Shore of the Martiu
Pefia Channel and the filling-up of the "El Fanguito" area at a
cost of $4,037,500. A six-year program for the years 1945-46 to
1950-51 for improving the harbors of Puerto Rico at an estimated
outlay of more than $10,425,000 was also prepared.








FORTY-FIFTH ANNUAL REPORT


Registration of automobiles, which reached a very low point in
1942-43, continued to increase. The number of motor vehicles regis-
tered rose from 27,648 in 1943-44 to 28,233 in 1944-45 and a total
of $977,480.97 was realized from licenses, number plates, permits,
transfers and examination fees. The gasoline tax paid .per motor
vehicle averaged $141, which is the highest since 1937-38. The
minimum was $75 for the year 1940-41, and $94 was the average for
the period 1937-1945.
The Bureau of Mines continued its research aimed at the develop
ment of the mineral wealth of the Island. As a result of the Bureau's
exploration of deposits of kaolin, the Puerto Rico Development Com-
pany decided to establish a ceramic plant at Kilometer 9 on the Isla
Verde Road. A project for the exploration of the marble resources
of the Island was started. Three prospecting permits were issued;
two for oil and natural gas and one for placer gold.
The rapid resumption of shipping is demonstrated by the report
of the Bureau of Docks and Harbors. A total of 1,647 vessels en-
tered the Island ports as against 1,410 last year, and docking charge
collections increased from $110,485.16 in 1943-44 to $122,645.33.
Collections by the San Juan Harbor Board, which supervises con-
struction of improvements and maintains and operates wharves and
bulkheads built by the Insular Government, amounted to $120,568.79,
a decrease of $39,000 from the previous year.
An Insular Parks Service was established by an Act of the Legis-
lature, consolidating the former Parks Commission for San Juan and
the Insular Service of Parks and Recreation. Work was carried out in
the construction of bleachers, playgrounds, planting and maintenance
in the San Juan area. Surveys and plans were completed for
athletic fields in a number of other municipalities. The develop-
ment of 77 acres of the Luquillo Beach area is under preparation.

DEPARTMENT OF JUSTICE
In spite of restricted personnel, the Department of Justice, in
addition to its regular activities, cooperated with the military and
naval authorities in the investigation and prosecution of criminal
cases involving members of the armed forces. The election campaign
of 1944 also added to the responsibilities of the Department. In
cooperation with the various governmental officials, every effort was
made to insure an orderly election, and the result was one which
impartial observers have declared to be the most peaceful in Puerto
Rico's history.









OF THE GOVERNOR OF PUERTO RICO


A total of 105 formal opinions were rendered during the year.
Among these were the following:
Holding that the Governor of Puerto Rico is not empowered
to offer a reward for the arrest of a person charged with
having committed a felony.
Holding that a corporation cannot lawfully engage in the
practice of law nor can it do so indirectly by employing quali-
fied lawyers to practice it.
Holding that the Governor of Puerto Rico is not under
obligation to submit interim appointments to the Senate when
the latter is convened in special session.
Holding that one of the implications of Section 34 of the
Organic Act is that the over-riding by the Legislature of
the Governor's veto to a bill must be restricted to a vetoed
measure considered as a unit without amendment or change
of any kind.
The Attorney General's office made reports to the Governor on
389 of the bills passed by the Insular Legislature during its regular
session in 1945.
'The drastic reductions in court personnel occasioned by the war
continued to make it impossible to handle all the civil cases in which
the People of Puerto Rico had an interest. As of June 30, 1944,
there were 1,923 civil cases pending in Insular and Federal Courts.
During the fiscal year 443 new cases were initiated; 1,097 were
decided; and 1,299 were pending at the end of the year.
During the past year the Fajardo Sugar Company, the Carmen
Central and the Central Alianza signed consent decrees whereby
their respective land holdings will pass to the Land Authority as
soon as a satisfactory valuation is arrived at. Other companies
have offered to sign consent decrees in,the near future. Litigation
with regard to the 500-acre limitation included the citation of over
200 lessees in connection with the quo-warranto suit of the People
of Puerto Rico against Eastern Sugar Associates.
The Tax Court gave decisions on 751 cases, and had 503 cases
pending on June 30, 1945.
The Registries of Property handled a total of 35,666 documents
during the fiscal year, of which 30,638 were recorded, 1,719 were
withdrawn or refused and 3,309 were pending on June 30, 1945.
Penal Institutions
The Insular Penitentiary and seven district jails are under the
jurisdiction of the Department. The daily average number of pri-
soners was 2,677, as compared with 2,617 for the previous year. On









-FORTY-FIFTH ANNUAL REPORT


June 30, 1945, there were 3,030 prisoners serving sentences or await-
ing trial. The total expense of maintaining the Penitentiary and dis-
trict jails was $414,491.59. Deducting the value of the prisoners'
services, the maintenance cost per prisoner was 34 cents per day,
or an increase of one cent over the per capital expenditure in 1943-44.
At the end of the fiscal year, 233 minors were in the Industrial
School at Mayagiiez. Instruction was provided in academic subjects
as well as in various skilled trades. The School is partly self-sustain-
ing and produced $11,451.73 in industrial and agricultural goods
during 1944-45.
The Industrial School for Girls at Ponce reported 53 girls on
June 30, 1945. All pupils are provided with opportunities for
academic and industrial instruction which meet the requirements of
the public school system of the Island. At the end of the fiscal year
10 girls received sixth grade diplomas; seven received certificates
of industrial sewing and 17 completed a first aid course given by
the American Red Cross.
There were 41 boys in the Juvenile Home on June 30, 1945,
all of whom were receiving academic education.
By a legislative act of May 1945, the Insular Industrial Schools
for Boys and Girls and the Juvenile Home were transferred from
this Department to the Department of Health.
The Advisory Parole and Pardon Board received 198 new applica-
tions for clemency during the fiscal year. Favorable recommenda-
tions were made to the Governor on 88 petitions, 24 of which he
granted. Unfavorable recommendations were made on 106, all of
which were denied.
Courts.
Supreme. Court: During the fiscal year the Supreme Court, with
only four judges, handled 1,017 cases, of which 826 were decided
and 191 were pending on June 30, 1945.
District Courts: The District Courts handled a total of 24,746
civil cases of which 9,999 were disposed of, leaving 14,747 pending
at the end of the fiscal year. Of the 9,596 criminal cases received,
4,467 were felonies, 2,825 were misdemeanors and 2,304 were appeals
from lower courts. Of these, 5,291 were disposed of.
Municipal Courts: The Municipal Courts processed 19,315 civil
cases and 176,385 criminal cases. Disposition was made of 7,557 civil
cases and 126,209 criminal cases.









OF THE GOVERNOR OF PUERTO RICO


Justice of the Peace Courts: The Justice of the Peace Courts
handled 20,112 criminal cases during the year and disposed of 15,396.

DEPARTMENT OF LABOR

Keeping pace with'the increased social and labor legislation, the
Department, to the extent of budgetary means, has revitalized its
services for the enforcement of labor laws, for the mediation 'and
conciliation of labor disputes, the settling of wage claims, the formula-
tion of'safety regulations, and the compilation of labor statistics.
Monthly data gathered and reported by the recently (1943) created
Bureau of Labor Statistics show that the cost of living is 'still in-
creasing at a more rapid rate than wages of labor. The cost'of living
index registered a 1.4 per cent increase in average retail prices for
wage earners' living essentials during the fiscal year.
The Mediation and Conciliation Service disposed of 206 situations
involving 352,510 workers. Of these, 180 were disputes between
employers and employees, of which 54 ended in strikes directly
affecting 145,603 workers.
The sugar industry strike for higher wages was the most import-
ant labor dispute of the year. It lasted 36 days and directly involved
140,000 workers. The situation was adjusted when the War Food
Administration raised the subsidy for sugar to 55 cents per 100
pounds, on the basis of which the agricultural workers received an
increase of 23 cents per day and the factory workers an increase
of three cents per hour. Other major strikes occurred in the Com-
munications Authority and the Puerto Rico Glass Corporation.
The Industrial Supervision Service inspected 13,602 industrial
establishments employing 188,864 workers. In addition, 41,403 in-
dustrial homeworkers were covered in visits to 9,434 homes. Of
1,261 violations reported, 957 were settled. In the course of home
industry inspections, only five violations of home work laws were
found. A total of 8,141 wage claims were made to the Supervision
Service of which 7,313 were settled. Payments amounting to $94,964
were made by employers in settlement of these claims..
The Children's Bureau issued 2,890 age certificates and work
permits during 1944-45 as compared with 2,126 in the previous year.
A total of 9,203 inspections was made of all kinds of establishments
for compliance with Federal and Insular child labor laws. These
inspections revealed that 1,448 minors were illegally employed.









FORTY-FIFTH ANNUAL REPORT


The Employment Service made a record number of placements
during the fiscal year, finding employment for 1,548 persons. A
total of 462 laborers were recruited by this Service for contractual
labor for two war industries in the United States. Lack of trans-
portation facilities made it impossible for the Service to assist in filling
similar requests for workers from several other American firms.
The Legal Division dealt with 5,426 claims involving $396,806.15.
At the end of the year, 668 cases involving $241,650.93 were pending.
The Division also handled 717 share-cropping cases, of which 660
were settled, 23 were rejected, 20 were waived and 14 were pending
on June 30, 1945. Thirty criminal cases were investigated and 425
civil cases were filed with the municipal and district courts and the
Supreme Court of the Island.
The Homestead Division supervises and inspects workmen's set-
tlements at Santurce, Guaynabo, Arecibo and Salinas and has juris-
diction over 2,197 small farms scattered throughout the Island. Dur-
ing the year, 304 titles of ownership were granted to tenants of these
farms and communities who, upon investigation, were found unable
to pay their rents. On May 10, 1945, a legislative act transferred
the workers' settlements to the Puerto Rico Housing Authority and
the government farms to the Land Authority.
The Bureau of Publications and Workers' Education continued to
offer a program of lectures, institutes and informative bulletins
designed to promote better understanding of various labor problems
and labor legislation.
AGRICULTURE EXPERIMENT STATION
(University of Puerto Rico)
As war demands gradually eased off during the past year, the
Experiment Station began to shift the emphasis of its research from
immediate war-time needs to the development of a long-range program
aimed at bettering the Island's economy. Objectives are the im-
provement of methods of production and distribution, and the develop-
ment of superior strains of plants and animals resistant to pests and
disease.
Research activities in improving crop cultivation included exper-
imental work with fertilizers, liming, planting distances, spraying
and dusting materials, intercropping and strip-cropping techniques.
In animal husbandry, efforts -were directed toward the develop-
ment of new breeds of livestock capable of higher productive ability









FORTY-FIFTH ANNUAL REPORT


The Employment Service made a record number of placements
during the fiscal year, finding employment for 1,548 persons. A
total of 462 laborers were recruited by this Service for contractual
labor for two war industries in the United States. Lack of trans-
portation facilities made it impossible for the Service to assist in filling
similar requests for workers from several other American firms.
The Legal Division dealt with 5,426 claims involving $396,806.15.
At the end of the year, 668 cases involving $241,650.93 were pending.
The Division also handled 717 share-cropping cases, of which 660
were settled, 23 were rejected, 20 were waived and 14 were pending
on June 30, 1945. Thirty criminal cases were investigated and 425
civil cases were filed with the municipal and district courts and the
Supreme Court of the Island.
The Homestead Division supervises and inspects workmen's set-
tlements at Santurce, Guaynabo, Arecibo and Salinas and has juris-
diction over 2,197 small farms scattered throughout the Island. Dur-
ing the year, 304 titles of ownership were granted to tenants of these
farms and communities who, upon investigation, were found unable
to pay their rents. On May 10, 1945, a legislative act transferred
the workers' settlements to the Puerto Rico Housing Authority and
the government farms to the Land Authority.
The Bureau of Publications and Workers' Education continued to
offer a program of lectures, institutes and informative bulletins
designed to promote better understanding of various labor problems
and labor legislation.
AGRICULTURE EXPERIMENT STATION
(University of Puerto Rico)
As war demands gradually eased off during the past year, the
Experiment Station began to shift the emphasis of its research from
immediate war-time needs to the development of a long-range program
aimed at bettering the Island's economy. Objectives are the im-
provement of methods of production and distribution, and the develop-
ment of superior strains of plants and animals resistant to pests and
disease.
Research activities in improving crop cultivation included exper-
imental work with fertilizers, liming, planting distances, spraying
and dusting materials, intercropping and strip-cropping techniques.
In animal husbandry, efforts -were directed toward the develop-
ment of new breeds of livestock capable of higher productive ability









OF THE GOVERNOR OF PUERTO RICO


under tropical conditions. Experiments were also conducted to de-
termine optimum protein levels for milk production and the com-
parative grazing value of pastures.
In its cultivation of new sugar-cane varieties, the Station con-
firmed the superiority of its PR-903 variety over several standard
varieties now being grown on the Island. Experiments with dif-
ferent fertilizers demonstrated that ammonium nitrate may be satis-
factorily substituted for ammonium sulphate in sugar-cane fertiliza-
tion.
Experiments with coffee cultivation showed that maximum yields
are obtained on Catalina soils when phosphorus is applied. A new
fertilizer formula for coffee was also discovered during trials com-
pleted this year.
Comparative tests with cotton varieties in the Isabela region
indicated that St. Vincent and Monserrat Sea Island types, recently
introduced by the Station, yielded 60 per cent better than the stand-
ard types grown on the Island. The Monserrat variety, because of
its quality and uniformity, was recommended for extensive commer-
cial production.
In its crop improvement program, the Station continued to seek,
by selection and breeding, better varieties of vegetables and fruits.
Field experiments conducted this year confirmed the high yielding
capacity and high Vitamim A content of UPR-3, a new sweet potato
recently introduced by the Station. Better varieties of native white
beans were developed through selection. Studies are being made of
the disease known as "bunchy top" which has handicapped the suc-
cessful production of papayas in Puerto Rico. One conclusion
reached was that native varieties are more tolerant of the disease
than those heretofore cultivated for commercial purposes.
The necessity of systematic application of lime to acid soils has
previously been amply demonstrated by the Station's experimental
work. Recently completed tests show decided increases in yield and
quality of crops and forage grasses when adequate lime applications
are made: increases of 50 per cent for legumes, 25 per cent for
forage grasses, and significant increases in sugar cane, coffee, and
other crops. Soil studies completed by the Station show that 1,190,661
acres of land in Puerto Rico require lime applications at the rate
of one to six tons of calcium carbonate per acre.
Promising lines of native swine have been developed through
cross-breeding and selection of native stock. These lines have been









FORTY-FIFTH ANNUAL REPORT


found to be more resistant to common serious diseases of swine
and are almost as efficient in the utilization of feeds as the best
imported types.
The Station again distributed large quantities of selected seeds
and propagating material among farmers and government agencies.
-AQUEDUCT AND SEWER SERVICE
The fiscal year 1944-45 marked the establishment of a unified
sewer and water service system for the whole Island. The Puerto
Rico Aqueduct Service was organized in May 1944 as a subsidiary
of the Water Resources Authority. On December 23, 1944 the new
corporation assumed control of the San Juan-Rio Piedras water
system. Shortly thereafter the Service took over the water works of
Bayam6n, Catafio and Guaynabo. These three towns, together with
Rio Piedras, are all served by the aqueduct of the City of San
Juan and are known collectively as the Metropolitan Area. On
June 1, 1945, the Corozal project was transferred to the control of
the new corporation.
Due to the magnitude of the task facing the new Aqueduct Ser ice
in its first year of operation, no attempt was made at Island-wide
reform. Efforts were first directed at the establishment of an effi-
cient system in the Metropolitan Area. Considerable improvements
were made in the physical plant. The quality of the water was
raised by filtration and chlorination to meet the standards set
by the United States Public Health Service. Extensive repairs were
made in the transmission and distribution lines. Work was started
on the installation of a new reinforced concrete main on Mufioz
Rivera Avenue. Plans were made for increasing the capacity of
the Guaynabo filter plant.
During the year, the Federal Works Administration proceeded
with its program for the improvement of the San Juan Water Works.
The estimated cost of this project is $5,000,000. When completed, it
will be transferred to the Insular Government upon payment of
$1,500,000 by the City. This project includes the construction of
a new storage dam at Cidra, the installation of a new 36 inch pipe
line between Aguas Buenas and the Guaynabo Filter Plant, the
laying of a 42 inch concrete conduit from Trujillo Alto to Martin
Pefia and the construction of one clear water reservoir of 10,000,000
gallons capacity at Trujillo Alto.
Reforms were achieved in the collection service which greatly
increased revenues. More than 600 new connections were made in the









OF THE GOVERNOR OF PUERTO RICO


distribution lines. A total of 1,400 water meters were installed at
new connections, and at connections formerly unmetered, and more
than 1,100 meters were repaired and reinstalled. San Juan and Rio
Piedras were divided into zones and a monthly meter reading and
billing service was established for the first time. As a result of
the reorganization, collections rose from $53,679.43 in January, to
$85,655.41 for the month of June 1945. Total collections for the
six-months period from December 23, 1944 to June 30, 1945 were
$383,998.01. The average monthly collection in the same period was
approximately $64,000, which exceeds by about 30 per cent the
monthly average of the City for the previous year of maximum col-
lection, which was 1943-44.
The financial situation of the Service was favorable at the end
of the fiscal year. Cash receipts from all sources amounted to
$645,483.22, exclusive of legislative appropriations of $1,540,000.
Disbursements totalled $616,816.01, leaving a balance on hand of
$1,568,667.21.
The Service was reconstituted on a more comprehensive basis by
an Act of the Legislature establishing it as the Puerto Rico Aqueduct
and Sewer Service and transferring to the new organization the
ownership, operation and development of all aqueduct and sewer
systems in Puerto Rico.
BOARD OF ELECTIONS
Although the quadrennial elections held on November 7, 1944
was one of the most significant and widely publicized elections in the
history of Puerto Rico, it was conducted with unusual orderliness and
fairness. The spectacular rise of the new Popular Democratic Party
(the Populares) since 1938 and its program of social and economic
reform caused this election to attract more than usual attention,
not only on the Island but also on the Continent. Violence was
predicted, but there was none. Presidents of all political parties
pledged their cooperation to ensure a fair election and instructed
their followers not to attempt to vote if they had not been legally
registered and to avoid all unfair practices.
The four leading parties in this election were the Republican,
the Liberal, the Socialist and the Popular Democratic. The first three
united in their opposition to the latter. Despite this concerted action,
the Populares won an overwhelming victory, with a majority of
approximately 175,000 votes more than the combined votes of their
opponents. By winning 37 of the 39 seats in the House of Repre-
sentatives and 17 of the 19 seats in the Senate they now hold undis-


27









FORTY-FIFTH ANNUAL REPORT


puted control of both houses of the Legislature. The party also
elected its candidate for Resident Commissioner and won in 75 of
77 municipal elections. The election returns for the Resident Com-
missioner were as follows: for the Popular Democratic candidate,
385,280; for the opposition candidate, 208,516.
"The great gains made by the Populares are best demonstrated
by a comparison with the results of the 1940 election. At that time
they elected only 10 senators and 18 representatives, and the Coalition
of the Union Republicans and Socialist parties succeeded in electing
their candidate for Commissioner to Washington.
Some 190,103 new.voters registered in 1944, but of these, 45,723
were excluded from the rolls because of death, change of residence
or challenge. The final registration lists contained 719,759 names.
The heaviest vote in the history of the Island was recorded with a
total of 595,150 votes cast, of which I-'2, 2.. were accepted.
Due to the sweeping victory of the Populares, the work of the
general canvass of the returns of the election by the Insular Board
of Elections was greatly simplified and expedited. This work was
started on November 13 and was completed on December 7. In the
1940 election, it lasted from November 11, 1940 until January 25,
1941.
At the instigation of the Board of Elections, a bill was introduced
in the Senate to legalize the registrations of about 88,000 persons
who were unable to vote because of defective registration. The
.measure was intended to prevent a recurrence of such il., b!...--
ment in the next election. However, this bill failed to gain the
approval of the Legislature.
CIVIL SERVICE COMMISSION

The outstanding accomplishment of the Civil Service Commission
for the fiscal year was the compilation of information, revision of
job specifications and study of all available data for the preparation of
a uniform classification and payment plan. The resulting report
became the basis for the new Uniform Compensation Act which was
unanimously approved by the Legislature in 1945.
Further modernization of the Civil Service in Puerto Rico was
effected by the preparation, with the assistance of the Public Ad-
ministration Service of Chicago, of a Manual of Personnel Proce-
dures. This became effective on July 1, 1945.
During the year 75 non-competitive examinations for promotion
were held, 1,135 permanent and 4,680 temporary appointments were
made and 473 promotion and salary increases were approved. A









OF THE GOVERNOR OF PUERTO RICO


slight increase in the number of provisional appointments was the
result of the cancellation-of about 80 obsolete registers by the Com-
mission. Establishment of registers of eligibles is pending completion
of the work of setting up job specifications, and the holding of
open competitive examinations.
There are now 9,660 classified and about 15,000 unclassified em-
ployees in the Puerto Rico Civil Service, including all teachers,
police and employees of the various "authorities", none of whom
are covered by the Civil Service laws.

COMMUNICATIONS AUTHORITY

The war emergency again prevented the Communications Au-
thority from carrying out its program to improve and modernize
the telephone and telegraph systems that are under its jurisdiction..
Unable to secure the necessary equipment and materials, it never-
theless completed much of the preliminary work that this program!
involves.
Plans for the installation of automatic telephone exchanges were
completed during 1944-45, and the contract for their installation
awarded. The central office of the Communications Authority in
Caguas was repaired and made ready for conversion to the automatic
system. Extensive line repairs were made in anticipation of the new
service. The long distance lines were moved away from the highways
to the open fields where there are no trees to interfere with trans-
mission. Twenty-four hour telephone service was provided for the
towns of Aguas Buenas and Las Piedras. All towns on the Island
now have continuous telephone service.
The ultimate aim of the Puerto Rico Communications Authority
is to unite all the telephone and telegraph lines within the Island
under its control. Accordingly, another attempt was made last year
to acquire the properties of the Porto Rico Telephone Company
whose franchise expired in September, 1944. The legislative com-
mission appointed in 1944 to investigate this proposal failed to take
any action and the matter is still pending.

DEVELOPMENT BANK

The average return on the Bank's marketable securities for the
fiscal year was 2.24 per cent, exclusive of additional income from
the sale of investments which amounted to $86,543.93. The market
value of the Bank's investment portfolio as of the close of the fiscal
year was approximately $350,000 in excess of book value.









OF THE GOVERNOR OF PUERTO RICO


slight increase in the number of provisional appointments was the
result of the cancellation-of about 80 obsolete registers by the Com-
mission. Establishment of registers of eligibles is pending completion
of the work of setting up job specifications, and the holding of
open competitive examinations.
There are now 9,660 classified and about 15,000 unclassified em-
ployees in the Puerto Rico Civil Service, including all teachers,
police and employees of the various "authorities", none of whom
are covered by the Civil Service laws.

COMMUNICATIONS AUTHORITY

The war emergency again prevented the Communications Au-
thority from carrying out its program to improve and modernize
the telephone and telegraph systems that are under its jurisdiction..
Unable to secure the necessary equipment and materials, it never-
theless completed much of the preliminary work that this program!
involves.
Plans for the installation of automatic telephone exchanges were
completed during 1944-45, and the contract for their installation
awarded. The central office of the Communications Authority in
Caguas was repaired and made ready for conversion to the automatic
system. Extensive line repairs were made in anticipation of the new
service. The long distance lines were moved away from the highways
to the open fields where there are no trees to interfere with trans-
mission. Twenty-four hour telephone service was provided for the
towns of Aguas Buenas and Las Piedras. All towns on the Island
now have continuous telephone service.
The ultimate aim of the Puerto Rico Communications Authority
is to unite all the telephone and telegraph lines within the Island
under its control. Accordingly, another attempt was made last year
to acquire the properties of the Porto Rico Telephone Company
whose franchise expired in September, 1944. The legislative com-
mission appointed in 1944 to investigate this proposal failed to take
any action and the matter is still pending.

DEVELOPMENT BANK

The average return on the Bank's marketable securities for the
fiscal year was 2.24 per cent, exclusive of additional income from
the sale of investments which amounted to $86,543.93. The market
value of the Bank's investment portfolio as of the close of the fiscal
year was approximately $350,000 in excess of book value.










FORTY-FIFTH ANNUAL REPORT


Cooperation between local banks and the Development Bank was
intensified during the year, by reason of common investments in many
.enterprises. Approximately equal deposits of the Bank's funds are
held in each of the various banks.
The Bank cooperated with the Department of Finance in a study
,and reorganization of Insular and Municipal Trust Funds. Out of
this came an investment of $38,813,000 in the Sixth and Seventh War
Bond Drives. To this the Bank added $27,290,000 from its own
funds, bringing the total investment in the bonds to $66,103,000. The
Bank assisted the Treasurer in arranging the purchases and aided
in the redemption or refunding of both Insular and Municipal obli-
gations. It also made progress in an analysis of the Treasurer's
Refunding Program.
An additional appropriation of $15,000,000 was allotted to the
Bank by the Legislature.
DEVELOPMENT COMPANY

Since the establishment of the Puerto Rico Development Com-
pany in 1942 to advance the industrial possibilities of the Island,
some of its projects have become operating plants, some are in process
of construction and organization while others are still in the stage
of preliminary investigation.
The glass container factory operated by the Puerto Rico Glass
Corporation, a subsidiary of the Development .Company, started
operation in January 1945 with a capital stock amounting to
$3,026,000. A strike of employees caused it to shut down in Feb-
ruary for a period of 86 days, but the dispute was finally settled
and operations were resumed or June 25, 1945.
The Pulp and Paper Corporation, another subsidiary, has been
repeatedly held up in its building of a paperboard mill by delays
in deliveries of construction material and machinery. However, on
June 30, 1945, 13 months after it was started, the mill was 95 per
cent completed and 75 per cent of the equipment was installed.
The total capital stock issued by this corporation now amounts to
$1,325,000.
A thoroughgoing study of the possibility of developing a ceramic
industry on the Island was made by the Company and, in Septem-
ber 1944, a project for the construction and operation of a general
ceramic plant was approved by the Board of Directors. This plant
will be equipped to manufacture structural tile, bricks, sewer pipe
and other heavy glazed products, in addition to stoneware, garden-
ware, dinnerware and sanitary ware. To carry out this project, the


30









OF THE GOVERNOR OF PUERTO RICO


Puerto Rico Clay Products Corporation was organized late in 1944.
All the preliminary work for the construction of the plant was com-
pleted by June 1945, and orders for machinery have been given a
priority rating. The funds available for use by this company
amount to $247,504.75.
The capital structure of the Puerto Rico Cement Corporation,
acquired by the Development Company in 1942, was reorganized dur-
ing the year. Authorized capital stock was increased to $2,500,000.
Production amounted to 642,712 barrels-an increase of 8.3 per cent
over that of 1943-44.
Although the organization of the Company was not yet complete
at the end of the fiscal year, the following departments are now in
operation: Research and Development; Manual Industries and De-
sign.: Finance. In addition, a Law Division and a Traffic Division
have been set up. Steps are now being taken to organize an In-
dustrial Relations Department.
Plans under consideration by the Research and Development De-
partment include plants for making wallboard, cotton cloth, food yeast,
shoes, vegetable oils and shortening, and for meat-packing.
The objective of the Manual Industries and Design Department
is to stimulate the introduction and growth of semi-mechanized and
handicraft industries on the Island. Projects include furniture and
cabinet making, needlework, a silk industry, basketry and doll manu-
facture.
Rapid progress has been made in furniture design. A Wood
Products Section has been engaged in developing new designs and
techniques, and assisting privately owned enterprises in the organiza-
tion of woodworking factories engaged in the manufacture of furni-
ture. Its services were secured by the Fine Woods Manufactures
Inc. and, since August 1944, this plant hds been making furniture
of modern design which has been well received by the market. A
small private enterprise producing a distinctive line of bamboo
furniture has also been set up as a result of work undertaken by
the Company in cooperation with the Agricultural Experiment Sta-
tion of the U. S. Department of Agriculture.
A complete study of the needlework industry in Puerto Rico was
sponsored by the Company, and plans made to start a post-war
program for it.
In cooperation with the War Emergency Program and the Carib-
bean Silk Corporation, a silk project has been started. A nursery
of mulberry cuttings has been established, and the work of transplant-
ing young stock to a permanent site is in progress. A pilot plant








FORTY-FIFTH ANNUAL REPORT


will be set up in this plantation to test the feasibility of raising silk
worms in Puerto Rico.
The Manual Industries and Design Department also completed
arrangements for the organization of textile and ceramic labora-
tories. Technicians were retained by the Company for the purpose
of organizing these laboratories. Part of the necessary equipment
and materials were ordered.
All of the legal work of the Company is handled by the Law
Division. The Division served in the organization of three additional
subsidiaries, the preparation of all bids and contracts, and the draft-
ing and revising of collective bargaining agreements with labor unions.
Specialized transportation services are provided by the Traffic
Division. Rates for this service are lower than those prevailing
among common carriers, and a profit of $7,517.22 was realized from
operations' for the period ending June 30, 1945:
A Finance Department, which began functioning on July 1, 1945,
will handle not only the financial affairs of the Company, but also will
offer assistance to its operating subsidiaries. The activities of the Com-
pany for the period under review have been financed primarily from
the funds obtained through an issue of temporary financing collateral
bonds. The total authorization amounted to $5,000,000, of which
$3,500,000 had been issued by the end of June 1945. Shortage of
funds to finance projects, which has previously been a handicap, was
relieved in May 1945, when the Legislature appropriated $17,500,000.
The value of investment in stock of subsidiary corporations on June
30, 1945 was $4,532,430 against a total of $2,596,490 on June 30,
1944. Administrative, general and financial expenses amounted to
~122,~! 10 for the year, and of this amount $82,114.02 constituted
interest expense.
EXTENSION SERVICE
(University of Puerto Rico)
The Extension Service, in cooperation with the U. S. Department
of Agriculture, engaged in a variety of activities designed to help
rural families to raise their standard of living. The Service's report
covers the period from December 1, 1943 to November 30, 1944.
The food production program was carried out with the assistance
of 36 War Emergency Production Assistants. Vegetable seeds were
distributed among farmers and 4-H Club members for a total of
23,774 Victory Gardens covering 3,694 acres of land. Almost 7,000
tons of food were produced in these gardens.










OF THE GOVERNOR OF PUERTO RICO


Better methods of food preparation and conservation were taught
by 28 Home Demonstration Agents assisted by 21 Preservation and
14 Canning Assistants. More than 53,000 families were given this
instruction. The increase in the amount of food thus preserved dur-
ing the year 1944 over 1943 is shown by the following figures:

1943 1944

Cans. .......... .. ...... ........................ ................ 19,241 100,763
P'int jars .... .. ... ..... ........ ... ... ..... .............. 3, 274 5,971
Quart jars .................. ....... ........... ................ ....... 5, 401 7,191
Pounds of meat, lard, fruit pastes, etc... .............. .. ............. 1,225 5,381


In cooperation with the WEP, six industry centers were main-
tained where 600 Extension farm women and 4-IH girls were trained
in different crafts, such as fabrication of articles from maguey, coco-
nut, carey, straw and drawn work. At the completion of their train-
ing, 173 of these women were transferred to mass production centers
established by the Puerto Rico Development Company. A total of
8,934 articles, valued at $5,139.45, was made at these production
centers. Home Demonstration agents also trained 4-H girls and
farm women in the making of articles from native fibers and in needle-
work. The value of such articles sold by farm families during the
past year was estimated at more than $14,000.
The Extension Service gave special attention to a clothing con-
servation program. More than 3,000 farm families were given assist-
ance in the renovation, repairing and remodelling of used garments.
In addition, 2,930 families were assisted in clothing construction pro-
blems and 2,043 others in the selection of clothing and textiles.
Other activities of the Service included instruction in hygiene and
nutrition, improvement of recreational facilities in rural communities,
holding of extension schools on farm management, establishment and
supervision of 4-H Clubs and camps and the distribution of various
publications of the Service.
The nine Demonstration Farms of the Extension Service continued
to render many valuable services to farmers. More than 10,000
farmers visited these farms to take advantage of method demonstra-
tions, free breeding services of purebred stock from the farms, for
free propagation material, or to buy poultry and live stock. The
most important materials distributed free of charge were coffee seed-
lings, vegetable seedlings, cassava cuttings, coffee seeds and guava
seedlings.








FORTY-FIFTH ANNUAL REPORT


FIRE SERVICE
Two unusually disastrous fires occurred in 1944-45. In February
1945, the worst fire in the history of the Island took place at Lares.
In all, 198 houses were destroyed, and the damage was estimated
at $308,748. In March, another major fire broke out in Aguadilla
where 43 houses were burned down.
The total number of fires handled during the year was 145, as
compared with 75 during the preceding year. Total damage was esti-
mated at $2,101,428. Bayam6n suffered the greatest amount of prop-
erty damage, with losses calculated at $714,525. Fires caused the
death of eight persons, most of them children under eight years
of age.
Lack of uniformity in hydrants and inadequate fire-fighting equip-
ment continued to handicap the Fire Service. A survey made during
the year showed that 80 per cent of the hydrants are in urgent
need of repair or replacement, and that the number of existing
hydrants is wholly inadequate. Although there were no funds with
which to purchase new equipment, several pieces were received which
had been contracted for during the previous year. New equipment
delivered included 15 fire trucks and 16,000 feet of hose. Eight of
the 33 pumpers which were transferred from the Civilian Defense
during 1943-44 were remounted on new Ford chassis purchased
during the year.
In October, the Service's Central office was installed in the new
Insular Fire College building in Santurce.

GENERAL SUPPLIES ADMINISTRATION
Activities of the General Supplies Administration during the
past year included the allocation of shipping space; recapitulation
of import statistics; procurement, importation and distribution of
lumber and coffee; and the enforcement of a system of priorities for
the purchase of fuel oil. An additional duty was assumed in April
1945, when the Administration agreed to accept responsibility for
the continuation of the price support program for food crops and
the agricultural market news service, which had formerly been carried
on by the Office of Supply of the U. S. Department of Agriculture.
The work of allocating shipping space increased considerably
during the year as more commodities were released from govern-
ment control. The policy of giving preference to the most essential
items was continued.








FORTY-FIFTH ANNUAL REPORT


FIRE SERVICE
Two unusually disastrous fires occurred in 1944-45. In February
1945, the worst fire in the history of the Island took place at Lares.
In all, 198 houses were destroyed, and the damage was estimated
at $308,748. In March, another major fire broke out in Aguadilla
where 43 houses were burned down.
The total number of fires handled during the year was 145, as
compared with 75 during the preceding year. Total damage was esti-
mated at $2,101,428. Bayam6n suffered the greatest amount of prop-
erty damage, with losses calculated at $714,525. Fires caused the
death of eight persons, most of them children under eight years
of age.
Lack of uniformity in hydrants and inadequate fire-fighting equip-
ment continued to handicap the Fire Service. A survey made during
the year showed that 80 per cent of the hydrants are in urgent
need of repair or replacement, and that the number of existing
hydrants is wholly inadequate. Although there were no funds with
which to purchase new equipment, several pieces were received which
had been contracted for during the previous year. New equipment
delivered included 15 fire trucks and 16,000 feet of hose. Eight of
the 33 pumpers which were transferred from the Civilian Defense
during 1943-44 were remounted on new Ford chassis purchased
during the year.
In October, the Service's Central office was installed in the new
Insular Fire College building in Santurce.

GENERAL SUPPLIES ADMINISTRATION
Activities of the General Supplies Administration during the
past year included the allocation of shipping space; recapitulation
of import statistics; procurement, importation and distribution of
lumber and coffee; and the enforcement of a system of priorities for
the purchase of fuel oil. An additional duty was assumed in April
1945, when the Administration agreed to accept responsibility for
the continuation of the price support program for food crops and
the agricultural market news service, which had formerly been carried
on by the Office of Supply of the U. S. Department of Agriculture.
The work of allocating shipping space increased considerably
during the year as more commodities were released from govern-
ment control. The policy of giving preference to the most essential
items was continued.








OF THE GOVERNOR OF PUERTO RICO


Monthly imports of dry cargo for civilian use increased from
80,719 short tons in July 1944 to 109,634.79 in June 1945. A total
of 984,208 short tons was received during the year. The Division of
Finance and Statistics compiled monthly reports covering stocks
in the Island of the most important food commodities. The Division
also analyzed 834 manifests of steamships covering all incoming civi-
lian cargo.
The procurement and distribution of lumber by the Administra-
tion was continued until November 1944, when dealers were again
permitted to handle their own importations within the limits pre-
scribed by the War Production Board and shipping space allocations.
During the fiscal year, the Administration bought 8,026,860 board
feet of lumber with a total value of $621,663.02.
A threatened coffee shortage caused the Administration to attempt
to build a stockpile during the harvest season. It was impossible,
however, to obtain an adequate supply in the local market, due to
the short crop and the reluctance of the growers to sell at OPA
prices. Importations from the Dominican Republic by the War Food
Administration caused local growers to release some of their stores,
and a coffee crisis was averted.
Bunker "C" fuel oil was again rationed in accordance with the
priority system promulgated in 1942. A total of 3,825 permits for
industrial use was issued for this commodity.
An emergency stockpile of construction materials was again built
up for use in case of a hurricane and was disposed of at the close
of the storm season.
On November 17, 1944, the Governor appointed the Administrator
sole buyer of surplus war property for all Insular departments and
agencies and municipalities. Commodities totalling $104,795.55 in
value were purchased up to June 30, 1945.
The General Supplies Administration also encouraged the Victory
Garden Program by contributing $2,410.04 worth of seeds to the De-
partment of Agriculture for distribution among small farmers.
The Administration took over the Price Support Program on
April 16, 1945. The major activity during this short period was the
preparation of a Procedure and Manual of Instructions. Contracts
were entered into for the use of warehouses where Produce Centers
were established and for using the services of the Vegetable Marketing
Cooperatives sponsored by the U. S. Department of the Interior as
purchasing agents of the Program in various localities. A campaign
was conducted through the radio and various Insular and Federal
agencies to acquaint farmers with details of the program.








FORTY-FIFTH ANNUAL REPORT


The Market News Service broadcast a daily summary of agricul-
tural prices over three different radio stations. Price reports were
also mimeographed and distributed, upon request.
A net profit of $19,934.63 realized from commercial operations
reduced the net cost of maintenance of the General Supplies Admi-
nistration to $40,273.13 as against a budgetary appropriation of
$72,609.51.
HOUSING AUTHORITY
WVar restrictions on building continued to prevent the development'
of new housing-projects. As in the previous year, the funds of the
Federal Public Housing Authority, on which the Insular program
has depended, were reserved for housing connected with the war
effort. Puerto Rico could not qualify for such housing. An annual
appropriation by the Insular Government of $30,000 for administra-
tive expenses has allowed the Authority to continue its other activi-
ties.
Two new laws passed during the last legislative session will serve
to make the Authority less dependent on Federal aid in the future.
One act appropriated $1,850,000 for the development of housing pro-
jects, and the other provided $1,000,000 for slum control. Under the
latter Act, the Planning Board may declare -"slum districts", and
the Housing Authority may then hire inspectors and watchmen to
enforce the regulations of the Board with respect to the development
of such areas, or may proceed to eliminate them through voluntary
purchase or condemnation of land and buildings.
Disastrous fires in the towns of Lares and Aguadilla in February
of 1945 left 258 families homeless. The Insular Emergency Com-
mittee placed at the disposal of the Authority the sum of $600,000
to rehouse the victims. Designs for the reconstruction of Lares have
already been completed.
In cooperation with the War Emergency Program, a slum survey
was made of each town that is under the territorial jurisdiction of
the Housing Authority. Under a law passed the previous year,
appropriating $2,200,000 for the development of housing projects,
sites were inspected and located in 71 towns approved by the Plan-
ning Board and Health Department, and survey parties were sent
out to prepare survey and topographical maps for the purchase of
land and the preparation of site plans. In all, 18 property surveys
and 15 topographical maps were completed. The Planning Division
of the Authority was reorganized in 1945, and the programs for the
towns of Lares and Aguadilla were developed by this Division.









OF THE GOVERNOR OF PUERTO RICO


Twelve completed housing projects, containing a total of 2,113
dwellings units, are now being operated by the Authority. Rent
collections in 1944-45 amounted to $126,727.84 with a vacancy and
collection loss of only 0.42 per cent.
Social activities carried out in cooperation with various welfare
organizations were continued from previous years. Nev activities
include the establishment of day nurseries in two projects and an
elementary school in one project; the organization of Agricultural
Extension Service units in two projects; tenant associations in five
projects; and baseball and softball teams in seven projects.
INDUSTRIAL COMMISSION
The work of the Industrial Commission was considerably lightened
this year due to the final liquidation in 1943-44 of all claims that
had been pending from the old Workmen's Compensation Trust
Fund. A total of 1,505 cases were registered with the Commission
during the year, and 154 pending cases were carried over from
1943-44. Decisions were rendered in 1,534 cases, leaving 125 pend-
ing on June 30, 1945. In addition, 188 cases were reconsidered and
851 public hearings were held. Twenty five cases were appealed to
the Supreme Court. In 20 of these, the decisions of the Commission
were upheld.
The Medical Advisor examined and reported on 1,104 cases, and
rendered 60 reports in connection with workmen brought before the
Commission by the medical division of the State Fund. He also took
part in hundreds of public hearings.
The budget of the Industrial Commission for the fiscal year
amounted to $75,499.89. Of the $60,098 allowed to salaries, only
$56,802.91 was expended.
The Commission continued its practice of publishing in the daily
press a brief summary of its most important decisions.
INSTITUTE OF TROPICAL AGRICULTURE
During the third year of its existence, the Institute of Tropical
Agriculture widened the scope of its investigations in plant phy-
siology and started research in agrostology and economic geography.
Research was continued in soil minerology and plant nutrition, and
the field of mycology was extended to include a study of the fungus
flora of the Dominican Republic and other Caribbean countries.
A small plant introduction service was organized during the year
for the purpose of keeping a record of plants introduced by the
Institute. Several specimens were brought in from Barbados and









OF THE GOVERNOR OF PUERTO RICO


Twelve completed housing projects, containing a total of 2,113
dwellings units, are now being operated by the Authority. Rent
collections in 1944-45 amounted to $126,727.84 with a vacancy and
collection loss of only 0.42 per cent.
Social activities carried out in cooperation with various welfare
organizations were continued from previous years. Nev activities
include the establishment of day nurseries in two projects and an
elementary school in one project; the organization of Agricultural
Extension Service units in two projects; tenant associations in five
projects; and baseball and softball teams in seven projects.
INDUSTRIAL COMMISSION
The work of the Industrial Commission was considerably lightened
this year due to the final liquidation in 1943-44 of all claims that
had been pending from the old Workmen's Compensation Trust
Fund. A total of 1,505 cases were registered with the Commission
during the year, and 154 pending cases were carried over from
1943-44. Decisions were rendered in 1,534 cases, leaving 125 pend-
ing on June 30, 1945. In addition, 188 cases were reconsidered and
851 public hearings were held. Twenty five cases were appealed to
the Supreme Court. In 20 of these, the decisions of the Commission
were upheld.
The Medical Advisor examined and reported on 1,104 cases, and
rendered 60 reports in connection with workmen brought before the
Commission by the medical division of the State Fund. He also took
part in hundreds of public hearings.
The budget of the Industrial Commission for the fiscal year
amounted to $75,499.89. Of the $60,098 allowed to salaries, only
$56,802.91 was expended.
The Commission continued its practice of publishing in the daily
press a brief summary of its most important decisions.
INSTITUTE OF TROPICAL AGRICULTURE
During the third year of its existence, the Institute of Tropical
Agriculture widened the scope of its investigations in plant phy-
siology and started research in agrostology and economic geography.
Research was continued in soil minerology and plant nutrition, and
the field of mycology was extended to include a study of the fungus
flora of the Dominican Republic and other Caribbean countries.
A small plant introduction service was organized during the year
for the purpose of keeping a record of plants introduced by the
Institute. Several specimens were brought in from Barbados and








FORTY-FIFTH ANNUAL REPORT


Jamaica by the Director in the course of his trips on behalf of the
Anglo-American Caribbean Commission.
The Plant Physiology Department continued research begun in
the previous year on the hormone mechanism of tropical plants, and
explored the practical possibilities of results obtained. The usefulness
of hormones for selective sprays for weed extermination was de-
monstrated. The chemical used promises to become a successful
herbicide for graminaceous crops such as sugar cane. Experimenta-
tion with plant propagation by means of cuttings dipped in a chemical
solution instead of by seeds was continued with highly successful
results. Crop control of pineapple production (relating to the time
of flowering and the size of fruit) was perfected with the use of
hormone treatments, and the method is already being utilized by
pineapple growers on plantations adjacent to the Lajas experimental
farm.
The Department of Economic Geography carried out field studies
in Brazil, Bolivia and the Caucas Valley in Colombia. Data gathered
on these expeditions is now being organized for publication. A pro-
gress report was submitted to the Planning Board by the committee
which has been investigating the irrigation possibilities of the Lajas
Valley in the southwestern part of the Island. This committee,
composed of representatives of Insular and Federal agencies under
the chairmanship of the Director of the Institute, was appointed in
1943-44 to make the survey.
The Department of Agrostology, organized in July 1944, started
a project to determine the autoecology of various species of tropical
grasses and their adaptation to different ecological zones, growth
habits, etc. A detailed survey of all grasses native to Puerto Rico
is being made. Exotic species introduced from other tropical coun-
tries are being grown in various study stations in different ecological
zones of the Island for comparison with native species. One of these
experimental planting stations has been established at the Isabela
Sub-station and others are planned at Lajas, Coamo, Adjuntas and
Rio Piedras. More than 100 species of grasses have already been
introduced in Puerto Rico from Venezuela, Curazao, St. Thomas,
St. John and St. Croix.
INSURANCE
The records of the Office of the Superintendent of Insurance show
that the amount of insurance business carried on in Puerto Rico in
the calendar year 1944 was exceeded only in the record-breaking year
of 1942, when a total of $9,250,729.13 in premiums was collected.









OF THE GOVERNOR OF PUERTO RICO


Furthermore, the difference of $768,379.14 in premiums paid in 1942
and 1944 is not so significant when it is considered that the increase
in 1942 was principally due to the increase in marine insurance rates
while the increase in 1944 over 1943 was due to a greater volume
of insurance written.
The volume of insurance premiums and losses paid for the calendar
years 1943 and 1944 is shown below:
PREMIUMS RECEIVED
Per Cent
Coverage 1943 1944 1944 of 1943

Fire and Fire and Marine (adjusted)............. $2,978,497.32 $3,953,926.03 132.75
Casualty and M iscellaneous ......................... 1,182,194.06 1,201,027.82 101.59
Life and Health (adjusted)......................... 2,788,802.24 3,327,396.14 119.31
TOTALS (adjusted)....................... $6,949,493.62 $8,482,349.99 122.06

LOSSES PAID
Fire and Fire and Marine.......................... $677,130.18 $183,646.42 71.43
Casualty and Miscellaneous.......... ............. 306,219.18 347,646.42 113.64
Life and Health....................... ........ 680,114.19 665,534.80 97.86
TO ALS.................. ........... $1,663,463.55 $1,497,163.06 90.00

The business of life insurance continues to grow in the Island.
The amount of new insurance written in 1944 was $15,957,226, as
compared with $13,500,000 in 1943.
Fire insurance coverage was the highest since the years 1920 and
1921. Property values were insured in the amount of $281,247,916
with premium collections totalling $1,412,496.83. The premium in-
come was the highest on record. Losses paid amounted to 17 per
cent of the premiums received during the year.
Hurricane insurance had a record-breaking year attributable to
the popular belief that a hurricane was over-due on the Island. The
value of property insured was $53,983,020, and premium receipts
increased by $182,009.62. Losses paid amounted to seven cent of
premiums received.
A drastic reduction in the earthquake insurance rate caused a
jump in the amount of insurance written from $28,123,240 in 1943 to
$71,386,690 in 1944, with the premium income practically unchanged.
Losses amounted to .003 per cent of the premiums paid.
Automobile fire, property damage and collision insurance increased
34 per cent over 1943 in premiums paid. Losses amounted to 19 per
cent of the premium income.
Marine insurance written in 1944 surpassed all previous records.
Property valued at $341,886,698 was insured with premium payments









FORTY-FIFTH ANNUAL REPORT


totalling $1,713,202.33-an increase of 37 per cent over premiums
paid in 1943. Losses were higher than in 1943 but were still less
than seven per cent of the premiums paid.
The Puerto Rico Hospital Service Association, which started
operating on January 1, 1944, had an unfortunate year financially.
Membership premiums were fixed too low in proportion to the cost
of hospital and medical services. Premium income amounted to
$84,893.97 while hospital and medical service claims totalled $88,406.83
and operating expenses amounted to $25,654.01. Efforts are under
way to put the Association on a self-supporting basis.
During the fiscal year 1944-45, 67 companies were authorized to
transact insurance business in Puerto Rico. Forty five were organized
under the laws of the United States, 13 under the laws of Great
Britain and eight under the laws of Canada.
On June 30, 1945, deposits in trust for the protection of policy
holders in Puerto Rico amounted to $1,974,000.

ISABELA IRRIGATION SERVICE

Three hydroelectric plants are now being operated by the Isabela
Irrigation Service.
Production of energy in 1944-45 amounted to 8,498,440 kwh., an
increase of 2,704,410 kwh. over that of the previous year. Total
power generated and purchased totalled 11,604,755 kwh. Energy
delivered came to 9,756,378 kwh., of which 3,034,200 kwh. were sold
for $298,972.05.
A total of 60,105 acre-feet of water was diverted from the Guaja-
taca Reservoir in order to meet the requirements for the production
of electric energy. The run-off into the reservoir was 69,555 acre-
feet, 9,450 acre-feet more than the draft.
Out of the total volume of water drawn from the reservoir, 4,845
acre-feet were delivered for irrigation purposes; 1,425 acre-feet were
sold under direct orders; and 3,299 acre-feet went to municipal
waterworks and for domestic and industrial use.
Funds contributed by the War Emergency Program helped to
finance the lining of an additional 2,263 lineal feet of the main canal,
reconstruction of the road to Plant No. 3 and the lining of the Moca
Canal.
Soil investigations were continued in connection with the pro-
posed extension of the irrigation and hydroelectric facilities in the
municipalities of Hatillo, Camuy and Quebradillas.









OF THE GOVERNOR OF PUERTO RICO


LAND AUTHORITY

In the course of the year, the Land Authority acquired 14,558.4
cuerdas of land, of which the largest single parcel purchased was
5,704.7 cuerdas belonging to the Compafia Azucarera del Toa. As
of June 30, 1945, the total amount of land bought by the Authority
during the first three years of operation was 43,346.2 cuerdas, valued
at $6,183,214.61. This represented an average value of $142.60 per
cuerda.
Of the land distributed by the Authority during 1944-45, 1,658.1
cuerdas costing $199,740.52 were assigned as homestead plots to agre-
gados (landless farm workers) under Title V of the Land Law, and
12,653 cuerdas, valued at $1,919,388.53, were made into proportional
profit farms. Up to June 30, 1945, a total of 14,930.3 cuerdas had
been distributed to agregado resettlers, about 27,222 cuerdas had been
set aside for proportional profit farms and 1,194 had been used for
the establishment of 89 individual farms.
The second year of operation of the six proportional profit farms
already established on the Cambalache Project was even more success-
ful than the first. In December 1944, the original parcel was aug-
mented by the purchase of 500 acres. The net income for the crop
year 1945, which ended on July 30, was $90,308.75 as compared
with $69,232 in 1944. Of this profit, $11,643.77 will be distributed
to the lessees, $69,388.84 to the laborers and the remainder reserved
for contingencies.
Four new proportional profit farms were organized on the Toa
Project. The net profit realized by these farms from the 1945 crop
was $71,109.46, of which $10,666.45 will be distributed to lessees and
$46,221.16 to laborers.
About 3,000 cuerdas of the Cambalache Project have been set aside
for reforestation under the War Emergency Program. A total of 863
cuerdas was replanted to forest and fruit trees during the past year.
Continuing the agregado resettlement program, 37 new rural com-
munities comprising 3,790 parcels were established during the year.
At the end of the year, parcels of from one fourth to three
cuerdas had been assigned to 13,103 agregados living in 101 com-
munities. A total of 1,106 plots was set aside for the construction
of schools, churches and other public services. In these communities,
subsistence crops to the value of $477,619 were being cultivated at
the close of the year and more than $240,000 worth of farm animals
were owned by the agregados.
One cuerda = 0.07 of an acre.











42 FORTY-FIFTH ANNUAL REPORT

MINIMUM WAGE BOARD

The Board issued wage orders establishing minimum wages, maxi-
mum hours of work and general working conditions in the following
fields of activity: (1) theaters and motion picture establishments;
(2) retail trade; (3) manufacture of bakery, confectionary and
related products; and (4) dairy farms, milk pasteurization plants
and milk distribution.
The Mandatory Decree for theaters and movie houses established
two zones on the Island. In Zone I (San Juan and Rio Piedras), a
minimum hourly wage rate of 35 cents is prescribed, with a daily
minimum wage of $1.40 for four hours or less and $1.05 for three
hours or less. The hourly minimum for employees of Zone II-is 25
cents, with a corresponding daily rate of $1 and $.75 respectively.
The Decree covering retail trade established wage differentials for
three zones. For each zone, three occupational categories are re-
cognized: messengers, store clerks in establishments selling chiefly
commodities priced at 25 cents or less, and all other employees. Em-
ployees in each of the groups are classed as either permanent or
temporary. A 40-hour week- and an eight-hour day with double
the minimum rate for overtime were established. The Decree also'
provides for a 15-day annual vacation and sick leave with full pay..
The wage rates established are shown in the following table:

MINIMUM WAGE RATES

CLASSIFICATION Zone I Zone II Zone III
Weekly Hourly Weekly Hourly Weekly Hourly

(a) Messengers
Permanent................... $9.00 .......... $7.50 .......... $6.00 .
S Temporary..............:... ..... ..... $0.225 .......... $0.1875 ....... $0.15
(b) Store Clerks, 5, 10 & 25-cent stores
Permanent.................... 10.00 .......... 8,50 .......... 7.00 .
Tem porary ................. .... ...... 0.25 .......... .20 .......... 0.175
(c) All Other
Perm anent... ................. 12.00 .......... 10.00 .......... 8.00
T em porary................. .. ..... ........ 0.30 .......... .25 ......... 0.20

The Decree relating to bakeries, confectionaries and related prod-
ucts set wage differentials according to zones and types of producers.
Zone I includes San Juan and Rio Piedras and Zone II embraces
the rest of the Island. Type "A" producers are those who process
daily 500 pounds of flour or less, regardless of the zone in which their
establishment is located. Hours of work are limited to eight per
day and 48 per week, with double the minimum wage for overtime.
The wage rates established are as follows:











OF THE GOVERNOR OF PUERTO RICO 43


Minimum Hourly Rates
Branch and Occupation
Type A
Producers Zone I Zone II

BAKERIES:
M aster bakers .............................. ................ 0.550 $0.825 $0.600
Dough mixers .................................... ......... 0.425 0.675 0.475
Rollermen.................. ................................ 0.375 0.575 0.425
Dough molders ............. ........................ ........ 0.325 0.525 0.375
Bench-hand helpers......................................... 0.225 0.425 0.275
Other ........................................... .......... 0.200 0.250 0.200
CONFECTIONERIES:
M aster bakers ............................................... ......... 0.50 0.40
Baker helpers................... ............................ ..... ...... 0.35 0.25
Other ...................................................... ............. 0.25 0.20
CRACKER FACTORIES:
Skilled occupations................. ...................... ............ 0.45 0.35
Sem skilled occupations.... ................................. ...... ..... 0.35 0.25
Unskilled occupations ....................................... ......... .. 0.25 0.20
VERMICELLI FACTORIES:
Pretzel-stick-machine operators............................. ............ 0.60 0.45
Pretzel-stick-machine helpers.............................. ............ 0.45 0.35
Other....................... ........................ ...... ............ 0.25 0.20

Regulations adopted for the dairy industry provide for an eight-
hour day and 48-hour week, with double the minimum rate for hours
worked in excess of the eight hour maximum, and time and a half
for hours worked in excess of the weekly 'maximum. Permanent
employees are entitled to a 15-day annual leave with full pay. For
workers employed on dairy farms, an hourly minimum of 20 cents
was fixed for Zone I (the Metropolitan Area) and 18 cents for
Zone II (the rest of the Island). Hourly rates for workers engaged
in milk pasteurization and distribution, with the exception of mes-
sengers and janitors, are 30 cents in Zone I and 25 cents in Zone
II. Among dairy farm-workers, milk furnished to employees may
be considered as part payment of their salaries at a price of 10
cents per quart in Zone I and eight cents in Zone II.
Mandatory decrees of 1944-45 affected over 20,000 laborers and
the estimated increase in their annual payroll amounted to $2,460,000.
Section 5 of the Minimum Wage Act, which became effective on
January 15, 1945, requires that all employers subject to the Board's
wage orders must keep on file detailed information with regard to
their employees for a minimum period of three years.
Investigations of laundries, transportation services and .the
construction industry were completed during the year by the
Division of Research and Statistics, and Minimum Wage Committees
were appointed to study working conditions in these industries.
A total of 144 general inspections were made by the Board's
seven wage and hour inspectors during the year. Claims amounting









FORTY-FIFTH ANNUAL REPORT


to $168,788.38, on behalf of 5,140 workers, were made, of which
$28,571.50 were collected.
During the year the Legal Division handled a total of 83 appeals
to the United States Circuit Court of Appeals from judgments of
the Supreme Court of Puerto Rico invalidating the Board's Man-
datory Decree No. 2 providing for retroactive-wage payments in
the sugar industry.
PLANNING BOARD

The activities of the Planning Board continued to increase during
the fiscal year 1944-45 due to the further development of the plan-
ning duties authorized by law, and expansion of the social, economic
and physical program of the Island.
The Board received 393 proposals from Insular agencies and
municipalities for public improvements. Of these, 305 projects
were approved, 29 were disapproved, 26 were withdrawn by the
proponents and 33 were pending on June 30, 1945.
The projects approved represent a total investment of
$27,999,044.15 in capital improvements. The largest single item was
for housing, with $9,012,000.00 allotted to the Puerto Rico Housing
Authority for 15" projects- and $1,140,800.00 to the San Juan
Housing Authority for five projects. A total of 171 projects of
the War Emergency Program was approved, calling' for expen-
ditures of $7,107,251.53. To the Water Resources Authority was
assigned $6,733,976 for the development of the power resources of
the Island.
The Second Six-Year Financial Program of the Board was pre-
sented to the Insular Legislature in February 1945. The program
calle for a total outlay of $496,118,464 from the General Fund, and an
additional expenditure of $31,414,500 from Insular Trust and
Federal Funds. Of the amount to be derived from the General
Fund, approximately 26 per cent was assigned to public enter-
prises designated to stimulate the Island's economy, such as the
Puerto Rico Development Company, the Agricultural Company, the
Land Authority and the Water Resources Authority. About 16
per cent was set aside for capital improvements including schools,
health and public welfare facilities, roads and housing. Current
expenditures accounted for approximately 56 per cent.
The Urban Development Division continued the work of previous
years in connection with zoning regulations, an urban land-use
survey, a master plan of airports, housing standards and policies,
the development of design standards for Land Authority settlement









OF THE GOVERNOR OF PUERTO RICO


projects and industrial planning for the Metropolitan Area. In
September 1944, new subdivision regulations relating to zoning
were put in effect. These regulations are intended to prevent the
haphazard growth of towns and cities on the Island. Field work
was completed for the land-use maps in 14 municipalities, bringing
the total to 21.
Accomplishments of the Mapping Division were meager due to
the lack of technical personnel, engineering equipment and trans-
portation facilities for field work. However, most of the basic work
necessary to fix the definite lines of major thoroughfares within the
Metropolitan Area was completed during the year. Work on the
Map of Territorial Boundaries was finished in 14 municipalities.
Studies of transportation facilities in rural zones, which were begun
in 1942-43 in cooperation with the Department of Interior, were
concluded, and a report has been prepared for discussion at public
hearings. Results of this research showed that while 70 per cent
of the Island population is rural, only 17 per cent of the farms
are located on roads. The Report proposes an investment of
$147,568,000 in road improvement and construction during the next
50 years.
The Division of Insular Industries and Services continued studies
relating to the expansion of health and educational facilities on the
Island. A preliminary distribution of classrooms was prepared by
years and by municipalities for the purpose of determining the funds
needed for school construction in the Six-Year Financial Program.
Sites proposed by the Department of Education for the construction
of school buildings were inspected by the Division. before being
submitted to the Board for approval. The Division also began the
study of sites submitted by the WEP for the construction of 128
public health units.
POLICE
An 11 per cent increase in crime was recorded for the fiscal year.
Crimes against the person increased 21.5 per cent while property
crimes decreased 1.8 per cent from last year.
The principal increases were as follows: traffic violations, 34 per
cent; aggravated assaults, 32 per cent; rape, 31 per cent; negligent
manslaughter, 23 per cent. Robberies declined 17 per cent.
Ninety six per cent of all known offenses were cleared, a five per
cent increase over last year.
Of the 76,045 persons arrested in 1944-45, 87 per cent were from
urban zones. As in preceding years, the age group most frequently
represented among persons arrested was that of 20 to 24.









FORTY-FIFTH ANNUAL REPORT


'The problem of juvenile delinquency continued to grow in im-
portance. A total of 1495 minors was charged as against 319 last
year. Petit larceny was the most common offense, with 784 persons
thus charged, while burglary was second with 354. The Police
Athletic League, which was instituted in 1943 to combat juvenile
delinquency, was temporarily suspended during the election campaign
in 1944. Four units of the League were later reestablished, and,
on June 30, had a membership of 2,300. Athletic equipment was
provided by the Public Amusement and Sports Commission.
Opportunities for additional training were made available to the
Insular Police during the year. Through the cooperation of the U. S.
Army, several hundred guardsmen received training and refresher
courses in the use of firearms. The F. B. I. sent an official represen-
tative to Puerto Rico to give instruction in the use of all police
arms. Through the cooperation of the Chancellor of the University,
a judo training program was instituted, and later was carried on by
the Insular Police. Certificates of competence were issued to 370
,men who took the course. Several conferences were held with the
F. B. I. at which lectures were given and experiments were conducted
on scientific detection of crime. The U. S. Army conducted a
refresher course for police officials on field work in traffic control.
Plans were started to train members of tAe police force in the
United States.
The Traffic Division reported a total of 15,310 traffic violations,
an increase of 2,855 from last year. Convictions totalled 6,511.
There were 341 acquittals and 11,732 cases were pending trial at
the end of the year.
The Detective Bureau investigated 6,476 criminal offenses and
2,319 non-criminal offenses-a total of 8,795 cases.
The Policewomen's Bureau investigated 428 complaints, cleared
407, dismissed one and reinvestigated 11 cases.
The Bureau of Criminal Identification and Investigation received
17,567 finger print records and sent 8,442 to the Federal Bureau
of Investigation in Washington. The Photographic Laboratory
handled a total of 1,373 photographs.
Motor vehicle accidents increased from 4,053 in 1943-44 to
4,898 in 1944-45. While the number of persons killed was the
same as last year, the number of injured persons increased 21 per
cent.
PUBLIC AMUSEMENT AND SPORTS COMMISSION
Public interest in organized sports has been stimulated by the
programs offered by the Public Amusement and Sports Commission.









OF THE GOVERNOR OF PUERTO RICO


During the last fiscal year there was a noticeable -increase both in
the number of those participating in athletic events and in spectator
attendance.
Baseball is one of the most popular sports on the Island. More
than 7,000 boys took part in the amateur baseball competition
sponsored by the Commission last year. A team representing Puerto
Rico competed in the Seventh Amateur World Series held in Cara-
cas, Venezuela. In addition, baseball equipment distributed through-
out the Island was used by more than 6,000 boys in 58 municipalities.
As a result of elimination contests in amateur boxing held at
Sixto Escobar Park in San Juan, champions in each of the five
classes were sent to New York to enter the Golden Gloves tournament.
Three of these candidates won championships (flyweight, bantam-
weight and featherweight) and subsequently fought in the National
Boxing Tournament in Chicago, winning two national championships
for Puerto Rico.
Puerto Rican basketball teams played successfully in the United
States, Cuba and St. Thomas, and were hosts to a visiting Mexican
team. A tennis team from Santo Domingo competed here at the
invitation of the Commission and toured all the military camps.
Professional sports sponsored by the Commission in 1944-45
included baseball, boxing and cockfighting. A baseball league repre-
senting Ponce, Mayagiiez, Santurce and San Juan competed for the
Island championship, and 248,835 persons paid $109,865.30 to see
the League games. Four cockfighting contests were held instead
of the usal two.
The sum of $18,477.85 was collected by the Commission during
1944-45.
PUBLIC SERVICE COMMISSION

The number of cases filed with the Public Service Commission
during the fiscal year totalled 3,052. Forty three cases were carried
over from the previous year. Of the cases before the Commission,
2,982 were decided, 19 were awaiting decision on June 30, 1945,
and the remaining 94 were either pending hearings or were being
studied.
Valuation reports of 35 sugar mills had been submitted by the
appraisal engineers at the end of the year. Ten of these reports
were considered and discussed, and an advisory committee of
engineers was appointed by the Commission to study operational
methods and the problem of machinery depreciation in sugar mills.
Public hearings for the determination of rates were held in connec-









FORTY-FIFTH ANNUAL REPORT


tion with three sugar mills, and final decision by the Commission is
now pending.
Plans were started during the year by the Sugar Technology
Division for a Technical Laboratory for the purpose of calibrating
and standardizing laboratory instruments used in sugar mills.
In the enforcement of laws and regulations relating to weights
and measures, the Commission filed 1,049 complaints in court,
mainly for shortweighing, defective or altered instruments and
violations of the law regulating the weight of loaves of bread. The
Bureau tested 113,185 weighing and measuring devices in the Island
during the year.
A major improvement was effected in the telephone service of
the San Juan-Santurce area with, the successful installation of
automatic exchanges on June 3, 1945. The cost of the conversion
was $2,840,077.75.
A new type of bus was put into service on the Rio Piedras-San
Juan run for testing purposes. Its pay-as-you-enter turnstile and
ample seating capacity made it very successful, and the Transpor-
tation Authority plans to add several more buses of this type to the
fleet next year.
SCHOOL OF TROPICAL MEDICINE
Physical improvement in the School during the year included
the installation of air-conditioning systems in the Blood Bank and
in the Department of Chemistry, and the completion of a new
laboratory for the Department of Hygiene. Plans for a new unit
to house the Department of Hygiene were included in the Six-Year
Plan of the Insular Government, and $240,000 for its construction
were voted by the Legislature in 1945.
In the training field, a new course in sanitary science was offered
in addition to public health nursing, medical technology and sanitary
inspection. A total of 108 students was enrolled for the 1944-45
session, many of them on scholarships from the Insular Department
of Health.
In cooperation with the Army Medical Laboratory, the Depart-
ment of Bacteriology continued its studies to determine the presence
of hemolytic streptococci in Continental and Island troops. Studies
on bacillary dysentery included investigations of the Shigella group.
The incidence of murine typhus infection among the rat population
of Puerto Rico is being investigated. More than 2,000 routine
bacteriological and serological examinations were completed in the
laboratories of the Department, of which 1,389 were for the
Hospital.








OF THE GOVERNOR OF PUERTO RICO


Important studies in nutrition were made by the Department of
Chemistry. Experiments were continued to determine the influence
on the growth and reproduction of the albino rat of the addition to
a rice and beans diet of vitamin A, proteins, calcium and brewer's and
Torula yeasts. Another aspect of this study concerned the ability of
the rat to resume growth and to reproduce after a period of stunting
in early life on the rice and beans diet. Trials were run to determine
the biological and nutritive value of various types of yeast as well as
of other protein foods. Work was completed on an investigation
of the riboflavin content of some 93 items of tropical foods native
to Puerto Rico and neighboring islands. The Department also
offered a course of 20 lectures on the chemistry of food and nutrition.
The Department of Clinical Medicine went on with its research
in tropical disorders. Data was gathered on 19 new cases of sprue,
and experiments were made with yeast therapy. Filariasis and
schistosomiasis also received considerable attention. Deficiency stu-
dies were made of 387 hospitalized patients. During July and
August of 1944, lectures were given on various tropical and deficiency
diseases as part of a refresher course offered to all doctors on thL
Island.
Three new cases of chromoblastomycosis discovered by the Depart-
ment of Dermatology and Mycology were subjected to careful inves-
tigation. The therapeutic value of sulfamerazine and penicillin was
tested on these patients. Seven new cases of ringworn were regis-
tered during 1944-45. A total of 557 specimens was examined for
the presence of fungi.
The Department of Medical Zoology completed work on the skin
test for the diagnosis of S. mansoni infections and in collaboration
with Army personnel in Panama and San Juan started additional
studies of the immunologic diagnosis of this infection. The Depart-
ment also cooperated with two visiting colleagues from the College of
Physicians and Surgeons of Columbia University on the chemotherapy
of filariasis. Their experiments with the use of Neostibosan, a
compound of pentavalent antimony, on a control group of filariasis
patients have produced promising results. Studies of the biology of
the cat liver fluke were terminated. The work of classifying biting
gnats of the genus Culicoides was continued in collaboration with the
Army. An educational film on schistosomiasis was produced in the
Department through the united efforts of the Department of Clinical
Medicine and Pathology and the U. S. Public Health Service.
A preliminary rat survey of San Juan in connection with typhus
fever research was completed by the Department of Pathology. The








FORTY-FIFTH ANNUAL REPORT


Department also performed 35 autopsies and received 4,239 specimens
for examination.
Services of the Hospital were curtailed in 1944-45 due'to the
shortage of doctors and nurses: In the course of the year, the
nursing staff fell to less than one third of normal. It was finally
necessary to discontinue using one entire floor of the hospital. The
number of operations. performed declined to 176.
The Outpatient Department attended 10,550 persons, the largest
number in the history of the clinics. Of the 911 new cases admitted,
more than half were suffering from schistosomiasias and filariasis.
The Dermatological Clinic treated 161 cases. All the clinics of the
preceding year were continued, and a new clinic for venereal diseases
was opened in May 1945 under the auspicies of the U. S. Public
Health Service as a training center for clinic personnel.
The control of the Blood Bank was transferred from the Office
of Civilian Defense to the School. A total of 5,196 persons donated
blood during the fiscal year. Plasma production amounted to 746
units, bringing the grand total to 2,661 units. The Hospital distri-
buted on request all but 755 units among municipal, district and
charity hospitals and the Army, Navy and Air Forces. The School
cooperated with the U. S. Army Medical Corps in studies to
determine the incidence of the blood factors Rh, M and N among
Puerto Rican donors and enlisted men at the Rodriguez General
Hospital in San Juan.
The appropriations for all activities of the School and Hospital
for the fiscal year totalled $444,446.90. -This sum includes funds
allowed to the School by Columbia University, the University of
Puerto Rico and the Insular Government.

STATE GUARD
The State Guard continued to be severely handicapped by rapid
personnel turnover, amounting to 89.5 per cent for the year. On
June 30, 1945, officers numbered 406 and enlisted men 2,056 as com-
pared with 400 officers and 2,300 enlisted men on June 30, 1944.
Authorized armory drills were held once a week, and there were
many additional evening drills. Correspondence courses, based on
Army Extension Courses, were offered to officers and non-commis
sioned officers. Officers' Schools were held weekly in six cities under
the direction of U. S. Army officers. Schools for non-commissioned
officers and unit classes were also carried on. Considerable additional
equipment was obtained from the Ordnance Office of the Antilles
Department of the U. S. Army.









OF THE GOVERNOR OF PUERTO RICO


STATE INSURANCE FUND

At the close of the year, the State Insurance Fund had accumu-
lated a total surplus, including reserves, of $4,528,928.17. Of this
amount, the sum of $2,250,000 is invested in United States Savings
and Treasury bonds.
Net premiums collected for the policy year 1944-45 were
$2,612,890.69, a gain of 11.5 per cent over the preceding year. Using
1943-44 payrolls as a basis, total reductions in premium rates in
1944-45 amounted to $406,429.35, while total increases amounted
to $9,520.65, leaving an estimated net gain to the employers of
$396,898.65.
The accident frequency rate continued the downward trend regis-
tered for the past 10 years. As of June 30, 1945, the number of claims
registered was 41,577, a decrease of 2,387 over last year. Twenty-
one death claims were compensated and 35 were pending on June
30, 1945.
Accident prevention activities were intensified during the year.
Three hundred and nine inspections and 467 follow-up visits were
made to factories, construction works, farms, piers, warehouses and
quarries. Safety education was provided in meetings of employers,
foremen of sugar cane plantations and factories and labor union
groups. Data was gathered for the drafting of a new safety code
for quarrying and stevedoring operations.
The number of employers insured this year was 4,005, bringing
the total to 13,309 as compared with 10,236 in 1944. At the end
of the year, there were 164 classifications of workers.
The budget approved for the year 1945-46 amounts to approxi-
mately 10.7 per cent of the premiums collected. According to law,
the State Insurance Fund may use 15 per cent of the annual
premium income of the preceding year.
TAx COURT

The work of the Tax Court is summarized in the following table:

Pending New cases Concluded Pending
Nature of Case June 30, in during June 30.
1914 1944-45 1944-45 1945

Incom e taxes................. .... .. ... ...... 521 81 480 122
Property taxes. .......... ................. .. .... 429 133 254 308
Inheritance taxes .................... ............. 5 1 2 4
Excise taxes................... ....... ............. 24 18 12 30
Victory taxes .................................... 16 11 2 25
Reimbursements.............. .. ........... 4 10 1 13
Injunctions ................... ..... ... ....... .. .. ........ ... 1 .. .........
TOTALS ........................ ..... 999 255 751 503









OF THE GOVERNOR OF PUERTO RICO


STATE INSURANCE FUND

At the close of the year, the State Insurance Fund had accumu-
lated a total surplus, including reserves, of $4,528,928.17. Of this
amount, the sum of $2,250,000 is invested in United States Savings
and Treasury bonds.
Net premiums collected for the policy year 1944-45 were
$2,612,890.69, a gain of 11.5 per cent over the preceding year. Using
1943-44 payrolls as a basis, total reductions in premium rates in
1944-45 amounted to $406,429.35, while total increases amounted
to $9,520.65, leaving an estimated net gain to the employers of
$396,898.65.
The accident frequency rate continued the downward trend regis-
tered for the past 10 years. As of June 30, 1945, the number of claims
registered was 41,577, a decrease of 2,387 over last year. Twenty-
one death claims were compensated and 35 were pending on June
30, 1945.
Accident prevention activities were intensified during the year.
Three hundred and nine inspections and 467 follow-up visits were
made to factories, construction works, farms, piers, warehouses and
quarries. Safety education was provided in meetings of employers,
foremen of sugar cane plantations and factories and labor union
groups. Data was gathered for the drafting of a new safety code
for quarrying and stevedoring operations.
The number of employers insured this year was 4,005, bringing
the total to 13,309 as compared with 10,236 in 1944. At the end
of the year, there were 164 classifications of workers.
The budget approved for the year 1945-46 amounts to approxi-
mately 10.7 per cent of the premiums collected. According to law,
the State Insurance Fund may use 15 per cent of the annual
premium income of the preceding year.
TAx COURT

The work of the Tax Court is summarized in the following table:

Pending New cases Concluded Pending
Nature of Case June 30, in during June 30.
1914 1944-45 1944-45 1945

Incom e taxes................. .... .. ... ...... 521 81 480 122
Property taxes. .......... ................. .. .... 429 133 254 308
Inheritance taxes .................... ............. 5 1 2 4
Excise taxes................... ....... ............. 24 18 12 30
Victory taxes .................................... 16 11 2 25
Reimbursements.............. .. ........... 4 10 1 13
Injunctions ................... ..... ... ....... .. .. ........ ... 1 .. .........
TOTALS ........................ ..... 999 255 751 503









FORTY-FIFTH ANNUAL REPORT


Total taxes involved in all cases which were before the Court
during the fiscal year are as follows:
Determined by the Treasurer---- -------- $8,776,441.22
Alleged to be correct by complainants--------- 4, 757, 091. 09
Difference in controversy------------- --- 4, 016,350.13
The Court held 154 public hearings during the year. A total of
53 decisions of the Court were appealed to the Supreme Court of
Puerto Rico through certiorari proceedings, of which 31 were denied,
13 were sustained, one was reversed and nine were pending on June,
30, 1945.

TOBACCO INSTITUTE
The activities of the Tobacco Institute represented largely a contin-
uation of last year's projects. These included experimentation in
agronomy, plant pathology genetics, chemistry and economic studies
of the industry in general. -
Agronomic research sought the production of a high quality wrap-
per or binder leaf for the cigar industry. In addition to its research
activities, the Agronomy Department distributed, free of charge, 828
pounds of selected seed to tobacco growers and government agencies.
The Department of Pathology and Genetics intensified its efforts
to produce varieties of tobacco resistant to the blackshank disease and
to mosaic," and to obtain a variety of a high nicotine content that
may be used in the production of nicotine sulfate. Supplementing
the experiments of the Agronomy Department, particular attention
was given to the development of wrapper and binder varieties. The
objective, of course, is to increase the self sufficiency of the local cigar
industry.
The Institute cooperated with the Federal Department of Agri-
culture and with various Insular Government agencies in issuing
regular reports on the tobacco industry in Puerto Rico.
The available cash balance at the beginning of the fiscal year was
$70,004.17. The income for the year amounted to $55,912.33, of
which $4,398.75 resulted from the liquidation of the "Cooperativa
Agricola Industrial Tabacalera de Puerto Rico". Disbursements
totalled $52,629.60, leaving a balance on hand of $7:1,2-; '"1

TRANSPORTATION AUTHORITY
As in the the previous year, the activities of the Transportation
Authority were limited to the operation of the bus service within
the Metropolitan Area of San Juan.









FORTY-FIFTH ANNUAL REPORT


Total taxes involved in all cases which were before the Court
during the fiscal year are as follows:
Determined by the Treasurer---- -------- $8,776,441.22
Alleged to be correct by complainants--------- 4, 757, 091. 09
Difference in controversy------------- --- 4, 016,350.13
The Court held 154 public hearings during the year. A total of
53 decisions of the Court were appealed to the Supreme Court of
Puerto Rico through certiorari proceedings, of which 31 were denied,
13 were sustained, one was reversed and nine were pending on June,
30, 1945.

TOBACCO INSTITUTE
The activities of the Tobacco Institute represented largely a contin-
uation of last year's projects. These included experimentation in
agronomy, plant pathology genetics, chemistry and economic studies
of the industry in general. -
Agronomic research sought the production of a high quality wrap-
per or binder leaf for the cigar industry. In addition to its research
activities, the Agronomy Department distributed, free of charge, 828
pounds of selected seed to tobacco growers and government agencies.
The Department of Pathology and Genetics intensified its efforts
to produce varieties of tobacco resistant to the blackshank disease and
to mosaic," and to obtain a variety of a high nicotine content that
may be used in the production of nicotine sulfate. Supplementing
the experiments of the Agronomy Department, particular attention
was given to the development of wrapper and binder varieties. The
objective, of course, is to increase the self sufficiency of the local cigar
industry.
The Institute cooperated with the Federal Department of Agri-
culture and with various Insular Government agencies in issuing
regular reports on the tobacco industry in Puerto Rico.
The available cash balance at the beginning of the fiscal year was
$70,004.17. The income for the year amounted to $55,912.33, of
which $4,398.75 resulted from the liquidation of the "Cooperativa
Agricola Industrial Tabacalera de Puerto Rico". Disbursements
totalled $52,629.60, leaving a balance on hand of $7:1,2-; '"1

TRANSPORTATION AUTHORITY
As in the the previous year, the activities of the Transportation
Authority were limited to the operation of the bus service within
the Metropolitan Area of San Juan.









OF THE GOVERNOR OF PUERTO RICO


Despite the urgent need for greater transportation facilities in
the Metropolitan Area, little expansion of the bus service was possible
due to the difficulty of obtaining either new buses or essential parts
for the reconditioning of the old ones. Although the total fleet was
increased from 95 to 138 during the year, an average of 40 units
was undergoing repair at all times. Eventually, it was necessary
to take more than this number out of service, since no spare parts
could be purchased. Only one new bus was added. At the end
of the year, the fleet was down to 98 units.
In spite of these limitations, the number of passengers carried rose
to 26,807,917, an increase of eight per cent over the preceding year.
Although there was an increase in gross income of $200,504, net profits
declined from $57,698.23 in 1943-44 to $16,144.38 in 1944-45. A
general increase in wages and salaries accounts for this decrease.
The work started by the Airport Committee appointed by the
Planning Board in the preceding year was continued, and a preli-
minary plan for airports was prepared and submitted to the Com-
mittee for their consideration. Negotiations are under way for the
eventual transfer of Army and Navy Auxiliary Airports on the Is-
land to Insular control.
The outlook for the coming year is more promising, as the restric-
tions on shipping and procurement of supplies from the Continent are
relaxed. The Insular Legislature appropriated $2,500,000 for the
purchase of new transportation equipment and the construction of
airports.
UNIVERSITY OF PUERTO RICO

No changes were made in the organization of the University dur-
ing the past year. The institution now includes the Colleges of
Humanities, Social Sciences, Natural Sciences, Law, Education, Phar-
macy, Business Administration, Agriculture and Mechanic Arts. Ini-
tial steps have been taken for the establishment next year of a School
of Public Administration, a School of Nursing and a Social Research
Center.
In keeping with the University's policy of encouraging profes-
sional improvement of its teaching staff, 31 members of the faculty
were on leave of absence for this purpose, 17 of them with pay.
Scholarships were granted to 42 graduate students for advanced study
in the United States. Nineteen visiting professors and instructors,
most of them from Spain and the United States, offered courses at
the University during the 1944-45 -school year.









FORTY-FIFTH ANNUAL REPORT


Research work was carried on in the Agricultural Experiment
Station, the School of Tropical Medicine, the Institute of Meteorology
and the National Defense Radio Research Program. An English
Institute was inaugurated to make a study of the language problem
and the teaching of English in Puerto Rico.
Total student enrollment was eight per cent higher than for
1943-44. The total number of students enrolled at Rio Piedras was
6,589 and at Mayagiiez, 711. Enrollment for the 1944 summer ses-
sion at Rio Piedras was 4,873 and at the College of Agriculture and
Mechanic Arts in Mayagiiez, 435.
Degrees conferred in all colleges totalled 501 for the academic year
and 126 for the summer session. In addition, 308 Normal diplomas
and 15 Secretarial Science diplomas were granted in the course of
the year.
Several changes were effected in the curriculum. The number, of
law courses was reduced from 34 to 26 for the purpose of intensi-
fying the studies required. Plans are being considered to increase
the Law curriculum from three to four years. An accelerated pro-
gram was offered to Normal students to meet the pressing demand
for more elementary school teachers. Students were able to finish
the two-year regular course in one year and two 12-week summer
sessions. The College of Education adopted a system of professional
guidance for its students.
Increased efforts were directed toward the improvement of the
physical, economic and social welfare of the student body. Dormi-
tory facilities were improved during the past year with the purchase
by the University of. a formerly privately owned dormitory which ac-
commodates 96 students. A study of room and boarding facilities in
Rio Piedras and Mayagiiez was undertaken. Health services included
physical examinations, medical advice, and the referral of cases to
specialists through the Blue Cross Hospital Service. A cafeteria
was established for the first time on the campus at Rio Piedras. An
average of 4,800 lunches was served monthly. One hundred stu-
dents were allowed free lunches and several others were given a
special price for meals, upon recommendation of the Student Services
Board.
Financial aid to students amounted to more than $150,000, as
compared with $100,000 in 1943-44. In addition, the Universitywas
responsible for the distribution of a $50,000 fund granted by the
Insular Legislature for scholarships to high school students.









OF THE GOVERNOR OF PUERTO RICO


The Insular Legislature, in its 1945 session, appropriated funds
amounting to $3,124,000 for capital improvements to the physical
plant of the University. Under the direction of the Chancellor, a
master plan for the future expansion of the institution is being
worked out in conformity with the Six-Year Financial Program of
the Planning Board.
WAR EMERGENCY PROGRAM
The employment situation did not improve appreciably during
the year despite the continued induction of men into military service
and the employment of persons on military projects. At the end
of the fiscal year, the roll of persons registered with WEP employ-
ment offices and awaiting assignment was 194,943. This number, to-
gether with the 19,733 persons working on WEP projects on June
30, 1945, brings the number of known unemployed to 214,676. The
daily average of persons employed by WEP during the year was
31,612.
Construction work ranked first in number of men employed and
funds expended. Sixty-seven per cent of all money spent for con-
struction was for work on highways, roads and streets, and these
projects accounted for a daily average of 17,001 workers. Second in
importance was the construction, repair and improvement of public
buildings. There were 122 such projects in operation during the
year, including schools, hospitals and government buildings. Other
projects involved the building and repair of water and sewer sys-
tems, reforestation, flood control and malaria control.
Two major construction projects were performed by WEP for
the Puerto Rico Development Company. The building of the glass
factory, which was started by private contractors, was taken over
by WEP in March 1944 and was completed in September of that
year. In May 1944, WEP started work on a paper-board mill for
the Company and completed it by June 30, 1945, except for the
installation of 5,000 lineal feet of concrete pipe for mill effluent.
Under the direction and supervision of the Community Services
Division, a wide variety of projects was operated during the fiscal
year. Twenty-four new sewing centers were established, bringing
the total to 44. About 2,500 women were employed in these centers
making garments and other articles for distribution to hospitals and
charitable institutions. The number of nursery schools was increased
during the year from 28 to 37, with an enrollment of about 1,500
children of pre-school age. An average of 3,699 meals was served









OF THE GOVERNOR OF PUERTO RICO


The Insular Legislature, in its 1945 session, appropriated funds
amounting to $3,124,000 for capital improvements to the physical
plant of the University. Under the direction of the Chancellor, a
master plan for the future expansion of the institution is being
worked out in conformity with the Six-Year Financial Program of
the Planning Board.
WAR EMERGENCY PROGRAM
The employment situation did not improve appreciably during
the year despite the continued induction of men into military service
and the employment of persons on military projects. At the end
of the fiscal year, the roll of persons registered with WEP employ-
ment offices and awaiting assignment was 194,943. This number, to-
gether with the 19,733 persons working on WEP projects on June
30, 1945, brings the number of known unemployed to 214,676. The
daily average of persons employed by WEP during the year was
31,612.
Construction work ranked first in number of men employed and
funds expended. Sixty-seven per cent of all money spent for con-
struction was for work on highways, roads and streets, and these
projects accounted for a daily average of 17,001 workers. Second in
importance was the construction, repair and improvement of public
buildings. There were 122 such projects in operation during the
year, including schools, hospitals and government buildings. Other
projects involved the building and repair of water and sewer sys-
tems, reforestation, flood control and malaria control.
Two major construction projects were performed by WEP for
the Puerto Rico Development Company. The building of the glass
factory, which was started by private contractors, was taken over
by WEP in March 1944 and was completed in September of that
year. In May 1944, WEP started work on a paper-board mill for
the Company and completed it by June 30, 1945, except for the
installation of 5,000 lineal feet of concrete pipe for mill effluent.
Under the direction and supervision of the Community Services
Division, a wide variety of projects was operated during the fiscal
year. Twenty-four new sewing centers were established, bringing
the total to 44. About 2,500 women were employed in these centers
making garments and other articles for distribution to hospitals and
charitable institutions. The number of nursery schools was increased
during the year from 28 to 37, with an enrollment of about 1,500
children of pre-school age. An average of 3,699 meals was served









FORTY-FIFTH ANNUAL REPORT


daily to these children. The Home Industries Project continued
functioning with the cooperation of the Agricultural Extension Serv-
ice and the Puerto Rico Development Company. The number of
units was increased from six to 16. Of these, five were training cen-
ters and 11 were production centers for the manufacture of articles
to be sold in local and foreign markets in cooperation with the
Development Company. During the last year, 28,623 articles were
produced, of which over 3,000 were sold. The Food Production Pro-
ject produced 4,614,173 pounds of fresh vegetables for distribution
among school lunchrooms, nursery schools and public welfare insti-
tutions.
VWEP cooperated with the Department of Agriculture and Com-
merce in programs for encouraging food crop production and soil
conservation, and with the Federal Experiment Station in various
research activities.

WATER RESOURCES AUTHORITY

Although war conditions retarded the plans of the Water Re-
sources Authority for increasing the power generation facilities on the
Island, some progress was made. Increased plant capacity was made
available during the fiscal year by an interconnection with the Ceiba
Naval Base steam-electric plant. This gave the system an additional
8,000 kilovolt-amperes.
The installation of two 7,500 kilovolt-ampere units in the Dos Bo-
cas hydro-electric plant further increased the installed capacity of
all plants operated by the Authority to 101,038 kilovolt-amperes. The
additional capacity of the hydro-eletric plants was absorbed by
increased consumption and, until more hydro power is made avail-
able, a further demand must be supplied from other sources, princi-
pally from oil-burning steam-electric plants.
Total production of power by PRWRA plants in 1944-45 amounted
to 262,409,950 kwh., as compared with 253,672,230 kwh. in the preced-
ing fiscal year. Power purchased from outside sources this year came
to 13,253,750 kwh.-an increase of nearly 5,500,000 kwh. over the
preceding year. Of the total production, 96,481,130 kwh. were
generated by steam plants and 165,928,820 kwh. by hydro-electric
plant. This represents a distinct gain in the proportion of power
generated by hydro-electric plants-from 56.5 per cent of the total
in 1943-44 to 63.2 per cent in 1944-45.









OF THE GOVERNOR OF PUERTO RICO


Practically all design and construction activity centered around
the new hydro-electric plant at Caonillas which was begun in the
previous year. Plans were drawn for the construction plant, and
studies and reports were made on various problems relating to the
project. All necessary land surveys were completed and the ap-
praisal of the lands, crops, structures and improvements was accom-
plished with the assistance of the Land Authority. Actual construc-
tion work was considerably retarded by difficulties in obtaining equip-
ment and materials, and lack of trained personnel. However, pre-
paration of the dam foundation and the erection of the mixing and
aggregate processing plants were well under way by the end of June
1945.
The Dos Bocas project neared completion with the installation of
generating units Two and Three in 1945.
Planning activities of the Authority also included studies and field
investigations of new dam sites throughout the Island. Several pos-
sible locations in the San Juan area were investigated for the installa-
tion of an underground power substation. Studies and plans were
made in connection with the installation of a new generating unit
and water intake at the Santurce Steam Plant.
The operation of the irrigation works of the South Coast Irriga-
tion District is now administered by the Water Service Division of
the Authority with headquarters at Guayama. Deliveries of water
were normal with the exception of the months of January through
May of 1945 when deficiencies occurred due to a prolonged drought
from November 1944 to April 1945. Improvements made during
the year included the lining with concrete of certain sections of the
Juana Diaz and Patillas canals, the construction of two concrete cul-
verts at Guayabal Dam and the construction of standard delivery out-
lets to replace those which were obsolete. The District's hydro-clec-
tric plants generated 17,479,090 kwh.
Not including the South Coast Irrigation District, revenues
from the sale of electricity rose from $4,959,849.76 in 1943-44 to
$5,186,617.91 in 1944-45. The price averaged 2.30 cents per kwh.
The number of consumers increased by almost 5,000.











58 FORTY-FIFTH ANNUAL REPORT

FEDERAL AGENCIES
AGRICULTURAL ADJUSTMENT AGENCY
(Department of Agriculture)

Final figures for the 1943-44 sugar cane program of the AAA
showed total authorized payments of $12,214,037.97 to 13,000 growers.
Quantitive distribution of 1944 payments is set forth in the follow-
ing table:

Number Total
Payment intervals of amount of
applications payment

Under $250........................................... 8,598 $794,106.62
250.01- 500 ...................................................... 1,685 '596,782.95
500.01- 1,000....................................................... 1,120 776,819.78
1,000.01- 1, 500 ...................................................... 386 470,304.78
1, 500.01- 2,000 ..................................................... 172 295,181.82
2,000.01- 3,000........ .. ................................ 232 569,229.29
3,000.01- 4,000...................................................... 132 460,639.69
4,000.01- 5,C00 ..................................................... 103 461,998.50
5, 000.01- 6, 000..... ................................................. 60 326, 637.02
6,000.01- 7,000 ..................................................... 64 413,937.76
7,000.01- 8,000 ......... ............................................ 33 247,927.35
8,000.01- 9,000...................................................... 30 256,565.41
9,000.01- 10,000............................................ 23 217,909.89
10, 000.01-and over. .................................................. 153 6,325, 997.11
TOTALS............... .. ...... .... 12,791 $12,214,037.97

Total sugar-cane acreage harvested in 1944 was 280,363.4, a de-
crease of 29,872 acres from the 1942-43 season. A total of 5,600,451.3
tons of sugar cane was ground as compared with 8,666,692 during the
previous season. The number of acres planted to food crops in 1944,
in compliance with the requirement that seven per cent of sugar
cane acreage be used for this purpose, was 70,601.7, which is 20,176.3
acres more than in 1942-43.

AGRICULTURAL EXPERIMENT STATION
(Department of Agriculture)

In cooperation with the Insular Government, the Federal Exper-
iment Station of the U. S. Department of Agriculture continue
its studies in vanilla, essential oils and spice crops and utilization
of bamboo.
Experiments were continued to determine the effects of different
mulch and light treatments on the growth of the vanilla plant. The
second measurements taken one year after planting indicate that
Seller mulch mixed with limestone produced better growth by high
significance than other treatments with the exception of Toa mulch
used alone.
Following up last year's studies on the role of oxygen in the
curing process of vanilla, a new experiment was conducted to show











58 FORTY-FIFTH ANNUAL REPORT

FEDERAL AGENCIES
AGRICULTURAL ADJUSTMENT AGENCY
(Department of Agriculture)

Final figures for the 1943-44 sugar cane program of the AAA
showed total authorized payments of $12,214,037.97 to 13,000 growers.
Quantitive distribution of 1944 payments is set forth in the follow-
ing table:

Number Total
Payment intervals of amount of
applications payment

Under $250........................................... 8,598 $794,106.62
250.01- 500 ...................................................... 1,685 '596,782.95
500.01- 1,000....................................................... 1,120 776,819.78
1,000.01- 1, 500 ...................................................... 386 470,304.78
1, 500.01- 2,000 ..................................................... 172 295,181.82
2,000.01- 3,000........ .. ................................ 232 569,229.29
3,000.01- 4,000...................................................... 132 460,639.69
4,000.01- 5,C00 ..................................................... 103 461,998.50
5, 000.01- 6, 000..... ................................................. 60 326, 637.02
6,000.01- 7,000 ..................................................... 64 413,937.76
7,000.01- 8,000 ......... ............................................ 33 247,927.35
8,000.01- 9,000...................................................... 30 256,565.41
9,000.01- 10,000............................................ 23 217,909.89
10, 000.01-and over. .................................................. 153 6,325, 997.11
TOTALS............... .. ...... .... 12,791 $12,214,037.97

Total sugar-cane acreage harvested in 1944 was 280,363.4, a de-
crease of 29,872 acres from the 1942-43 season. A total of 5,600,451.3
tons of sugar cane was ground as compared with 8,666,692 during the
previous season. The number of acres planted to food crops in 1944,
in compliance with the requirement that seven per cent of sugar
cane acreage be used for this purpose, was 70,601.7, which is 20,176.3
acres more than in 1942-43.

AGRICULTURAL EXPERIMENT STATION
(Department of Agriculture)

In cooperation with the Insular Government, the Federal Exper-
iment Station of the U. S. Department of Agriculture continue
its studies in vanilla, essential oils and spice crops and utilization
of bamboo.
Experiments were continued to determine the effects of different
mulch and light treatments on the growth of the vanilla plant. The
second measurements taken one year after planting indicate that
Seller mulch mixed with limestone produced better growth by high
significance than other treatments with the exception of Toa mulch
used alone.
Following up last year's studies on the role of oxygen in the
curing process of vanilla, a new experiment was conducted to show








OF THE GOVERNOR OF PUERTO RICO


the effect of aeration on the bean tissue during curing. This is
effected by cutting the beans into various-sized pieces. The tests
showed that excessive aeration resulted in excessive oxidation and a
consequent loss of vanilla aroma. Another study showed that con-
ditioning vanilla above room temperature gave a superior product.
In cooperation with the War Emergency Program, sweet corn
and soybean seed were grown to increase local food production. Dur-
ing the year 2,054 pounds of sweet corn, 3,581 pounds of soybeans
and 8,562 ponds of yams were furnished for distribution.
A new vegetable program was initiated this year to determine the
adaptability of certain vegetables to different altitudes on the Island.
The program extends over a period of two years and involves ap-
proximately 45 vegetables. The sites selected for the plantings were
Mayagiiez (50 feet), Maricao (2,000 feet) and Toro Negro (3,300
feet). Most vegetables did well at Mayagiiez during the dry season.
Cole crops did well at the higher altitudes of Maricao and Toro Negro.
The vegetative growth of peas was definitely correlated with the coolor
temperatures, with best results at Toro Negro. Tomatoes and head
lettuce did better at Mayagiiez.
Five plants of the Tonkin bamboo were received from Southern
China by the Bureau of Plant Industry. Considerable quantities of
bamboo were shipped to South and Central America in collaboration
with the Office of Foreign Agricultural Relations. These shipments
represent the first attempts made to disseminate the more important
bamboo species which have been introduced into Puerto Rico to other
areas in the Western Hemisphere. Studies were made of the curing
of bamboo.
Agronomic studies were made to determine the optimum height
at which to harvest the oil of the lemon and citronella grasses. A
survey was made of the bay rum tree to determine the factors which
affect the percentage and quality of oil in the leaves and to find
the best species for propagation. Processing studies were made on
different methods of extracting the oils from these species.

COMMODITY CREDIT CORPORATION
Sugar Branch
(Department of Agriculture)

The Commodity Credit Corporation has completed its third year
of a program to stimulate the production of sugar on the Island.
In 1943, CCC, as successor to Defense Supplies Corporation, pur-
chased the unshipped balance as of August 1, 1943 of the 1942-43









FORTY-FIFTH ANNUAL REPORT


Puerto Rican raw sugar crop. This amounted to approximately
$26,005,734.58 to raw sugar producers on their warehoused stock and
to $2,826,989.01 to refiners on 46,781 tons (raw value) of refined
stock.
In 1944, CCC purchased the entire raw sugar crop of about
725,000 short tons and provided loans to sugar mills amounting to
$2,200,000. In addition, it made support payments to cane growers
of 20 cents per 100 pounds on the raw sugar processed from their cane.
Approximately 95 per cent of the Island's cane growers benefited
from these support payments which totalled about $2,750,000.
In 1945, CCC again purchased the 'entire raw sugar crop and
loaned about $9,400,000 to mills on their unshipped stocks. Support
payments were made to growers at the rate of 45 cents per 100 pounds
of raw sugar and to processors at the rate of 10 cents per 100 pounds.
Labor shared proportionally in the support payments both in
1944 and 1945. In 1944 agricultural labor received 10 cents per day
over and above the basic wage rates determined by the Secretary of
Agriculture. In 1945 the share of agricultural workers was 23 cents
per day, while mill workers received a wage increase of 24 cents
a day from the mill assistance payments made by CCC.
The price paid by CCC for raw sugar during these three years was
$3.46 F.A.S. Puerto Rican ports. The CCC also gave assistance to
the sugar industry by absorbing the increase in freight rates resulting
from the war. Freight differentials up to seven cents per 100 pounds
were paid on freight over 28 cents per 100 pounds, and four cents
per 100 pounds allowance was paid for excess freight costs on sugars
shipped from non-customary ports.
CONCILIATION SERVICE
(Department of Labor)
The Conciliation Service of the United States Department of Labor
settled a total of 231 cases, involving 506,491 workers. Of the cases
settled, 125 were strikes or threatened strikes, 76 were controversies,
one was a lockout, and 29 were special situations.
EMERGENCY CROP AND FEED LOAN OFFICE
Farm Credit Administration
(Department of Agriculture)
During the fiscal year 1944-45 the loans approved and disbursed
by the Emergency Crop and Feed Loan Office to the farmers of
Puerto Rico for the cultivation and harvesting of crops were as fol-
lows:









FORTY-FIFTH ANNUAL REPORT


Puerto Rican raw sugar crop. This amounted to approximately
$26,005,734.58 to raw sugar producers on their warehoused stock and
to $2,826,989.01 to refiners on 46,781 tons (raw value) of refined
stock.
In 1944, CCC purchased the entire raw sugar crop of about
725,000 short tons and provided loans to sugar mills amounting to
$2,200,000. In addition, it made support payments to cane growers
of 20 cents per 100 pounds on the raw sugar processed from their cane.
Approximately 95 per cent of the Island's cane growers benefited
from these support payments which totalled about $2,750,000.
In 1945, CCC again purchased the 'entire raw sugar crop and
loaned about $9,400,000 to mills on their unshipped stocks. Support
payments were made to growers at the rate of 45 cents per 100 pounds
of raw sugar and to processors at the rate of 10 cents per 100 pounds.
Labor shared proportionally in the support payments both in
1944 and 1945. In 1944 agricultural labor received 10 cents per day
over and above the basic wage rates determined by the Secretary of
Agriculture. In 1945 the share of agricultural workers was 23 cents
per day, while mill workers received a wage increase of 24 cents
a day from the mill assistance payments made by CCC.
The price paid by CCC for raw sugar during these three years was
$3.46 F.A.S. Puerto Rican ports. The CCC also gave assistance to
the sugar industry by absorbing the increase in freight rates resulting
from the war. Freight differentials up to seven cents per 100 pounds
were paid on freight over 28 cents per 100 pounds, and four cents
per 100 pounds allowance was paid for excess freight costs on sugars
shipped from non-customary ports.
CONCILIATION SERVICE
(Department of Labor)
The Conciliation Service of the United States Department of Labor
settled a total of 231 cases, involving 506,491 workers. Of the cases
settled, 125 were strikes or threatened strikes, 76 were controversies,
one was a lockout, and 29 were special situations.
EMERGENCY CROP AND FEED LOAN OFFICE
Farm Credit Administration
(Department of Agriculture)
During the fiscal year 1944-45 the loans approved and disbursed
by the Emergency Crop and Feed Loan Office to the farmers of
Puerto Rico for the cultivation and harvesting of crops were as fol-
lows:









OF THE GOVERNOR OF PUERTO RICO


Number Average
Crop of Amount Amount
Loans of Loans
Coffee.......................................................... 364 $275,115 $755
Sugar ........................................ ................. 1,961 670,785 398
Tobacco ...................................... ................. 2,490 407,830 164
Miscellaneous crops............... ..... ..................... 163 83,360 511
TOTALS..................................... 4,978 $1,437,090 $309

FARM SECURITY ADMINISTRATION
(Department of Agriculture)

Loans made by the Farm Security Administration are of two,
kinds: farm ownership and rural rehabilitation. The purpose of
FO loans is to enable eligible persons who do not own farm land
to buy land or to develop and enlarge an uneconomic unit into a
family-type farm. Rural rehabilitation loans are designed to provide.
assistance to worthy low-income farmers who are unable to secure
the necessary credit for successful farm and home operations on
reasonable terms from other sources.
Farm ownership loans totalling $169,902 were extended to 49
families during the year. The average loan was $3,467.38. Supple-
mental FO loans amounting to $31,615 were made to 76 established
borrowers, largely for the purpose of construction of dairy barns or
enlargement of homes.
Rural rehabilitation loans for the year aggregated $1,038,728 for
a total of 6,230 loans. Of these 2,149 were initial loans and 4,081 were
supplemental loans. This credit was used for operating expenses
such as seed, feed, fertilizers, home equipment, etc. In addition to
the loans, 3,367 revised Farm and Home Plans were approved. Up
to June 30, 1945, a total of 13,300 persons had borrowed money for
rural rehabilitation, of whom 10,880 were still active clients.
Special services were provided to 18 different groups represent-
ing 299 families plus financial assistance amounting to $41,865. Group
services are a means by which two or more low-income farmers
may provide themselves with such services as sires, machinery, etc.,
which they could not otherwise obtain individually on an economically
sound basis.
Collections for the year were slightly ahead of maturities. A
total of $924,783.16 was collected, of which $824,934.24 were for rural
rehabilitation and $99,848.92 were for FO loans.
Various health services are provided by the FSA in its rural
rehabilitation program. Four different groups comprising 442 fami-
lies were organized into health insurance associations at an average









FORTY-FIFTH ANNUAL REPORT


-cost per family of $16. Sanitary facilities which were completed
during the year included the construction or improvement of 821
privies, and the furnishing or improving of 125 individual water
:supplies. Rural water supply systems were approved in 22 communi-
ties serving a total of 658 families at a cost of $51,646.
The FSA assisted. in the distribution of 315,000 tree seedlings
among 1,152 of its clients.
For the second consecutive year, the Brethren Service Organiza-
tion allotted high grade Guernsey heifers to under-privileged low-
income farm families in Puerto Rico and asked FSA to select the
families and distribute the stock. This year 23 heifers were received
and distributed and, in addition, two young high bred bulls were re-
ceived which will be used as sires on a group service basis to improve
the milk stock for a number of farm families.

FEDERAL LAND BANK OF BALTIMORE
On June 30, 1945, outstanding loans totalled $10,882,714.38, dis-
tributed as follows: Federal Land Bank loans, $8,177,480.43; Federal
Farm Mortgage Corporation loans, $2,705,233.95. The net delin-
-quency on Federal Land Bank loans amounted to $117,949.92, about
:$29,000 more than in the preceding year. Net delinquency on Land
Bank Commissioner loans was $15,843.27, as compared with $6,312.31
in the previous year.
The volume of new loans increased from 283 in 1943-44 to 510
in 1944-45 and the value of the loans from $1,310,500 to $2,010,100.
Fifteen farms were acquired by the Land Bank by foreclosure as
compared with 18 in 1943-44.

FOREIGN FUNDS CONTROL
(Treasury Department)
Approximately 65 firms were "blocked" in Puerto Rico during
the war. In addition, personal holdings consisting of land, build-
ings, bank deposits, mortgages, negotiable instruments, etc., were
"blocked". The total of all "blocked" interests in Puerto Rico
.amounted to approximately $75,000.
A census taken to determine the kind, location and value of prop-
erty owned abroad by residents of Puerto Rico revealed that 226-
persons held property abroad valued at approximately $10,250,000.
Sixty per cent of the holdings were in Spain, and the rest in the
Dominican Republic, France, Germany, Italy and Japan.









FORTY-FIFTH ANNUAL REPORT


-cost per family of $16. Sanitary facilities which were completed
during the year included the construction or improvement of 821
privies, and the furnishing or improving of 125 individual water
:supplies. Rural water supply systems were approved in 22 communi-
ties serving a total of 658 families at a cost of $51,646.
The FSA assisted. in the distribution of 315,000 tree seedlings
among 1,152 of its clients.
For the second consecutive year, the Brethren Service Organiza-
tion allotted high grade Guernsey heifers to under-privileged low-
income farm families in Puerto Rico and asked FSA to select the
families and distribute the stock. This year 23 heifers were received
and distributed and, in addition, two young high bred bulls were re-
ceived which will be used as sires on a group service basis to improve
the milk stock for a number of farm families.

FEDERAL LAND BANK OF BALTIMORE
On June 30, 1945, outstanding loans totalled $10,882,714.38, dis-
tributed as follows: Federal Land Bank loans, $8,177,480.43; Federal
Farm Mortgage Corporation loans, $2,705,233.95. The net delin-
-quency on Federal Land Bank loans amounted to $117,949.92, about
:$29,000 more than in the preceding year. Net delinquency on Land
Bank Commissioner loans was $15,843.27, as compared with $6,312.31
in the previous year.
The volume of new loans increased from 283 in 1943-44 to 510
in 1944-45 and the value of the loans from $1,310,500 to $2,010,100.
Fifteen farms were acquired by the Land Bank by foreclosure as
compared with 18 in 1943-44.

FOREIGN FUNDS CONTROL
(Treasury Department)
Approximately 65 firms were "blocked" in Puerto Rico during
the war. In addition, personal holdings consisting of land, build-
ings, bank deposits, mortgages, negotiable instruments, etc., were
"blocked". The total of all "blocked" interests in Puerto Rico
.amounted to approximately $75,000.
A census taken to determine the kind, location and value of prop-
erty owned abroad by residents of Puerto Rico revealed that 226-
persons held property abroad valued at approximately $10,250,000.
Sixty per cent of the holdings were in Spain, and the rest in the
Dominican Republic, France, Germany, Italy and Japan.









OF THE GOVERNOR OF PUERTO RICO


"Subsistence" remittances and certain business instructions may
now be exchanged with liberated areas under a license from the
Treasury. During the year, 941 such licenses were issued by this
Office.

FOREST SERVICE
(Department of Agriculture)

The total area of Federally owned forest lands, comprising the
Luquillo Division in the Eastern section of the Island and the Toro
Negro Division in the central part, remained at 32,433 cuerdas on
June 30, 1945.
The natural forest stands in the Caribbean National Forest are
benefiting from application of sound methods of silviculture. Pro-
duction of board feet of lumber increased from-1,320,000 in 1943-44
to 3,733,500 in 1944-45. The number of individual sales rose from
504 to 2,239 and the average number of men gainfully employed in
cutting and removing the products rose from 63 to 235. Sale of
forest products gave a financial return to the Federal Government of
$27,696.92 (25 per cent of which is returned to the Insular Govern-
ment).
The area of new forests in Puerto Rico resulting from past plant-
ings on denuded and partially stocked lands aggregated 9,929 cuer-
das well-stocked and 8,637 partially-stocked at the end of the fiscal
year. Of the total area, 5,774 cuerdas were on Federal lands and
12,792 on Insular lands. An intensive technical survey of these
plantings was completed and a long-term plan for future reforestation
on the Island was prepared.
Research activities dealt with forest regeneration, production and
utilization. Investigations in nursery practice and planting have
continued with all native and exotic tree species for which seed sup-
plies were available. Some 28 new exotic species were received from
Brazil, Cuba, Jamaica and Florida. In cooperation with the Puerto
Rico Land Authority, forest planting is being studied in an experi-
mental forest on the. dry limestone hills west of Barceloneta. Per-
manent plots are being established in all forest types to permit deter-
mination of the growth rate under forest conditions of all important
tree species of the Island. During the past year, nearly 4,000 trees
were permanently tagged for this purpose.








FORTY-FIFTH ANNUAL REPORT


NATIONAL LABOR RELATIONS BOARD
During the past year the National Labor Relations Board of the
24th Region handled 170 cases that involved a total of 24,602 workers.
Of the 57 cases of alleged unfair labor practices, 53 were settled
informally and four were recommended for formal action by the
NLRB in Washington. A total of 132 employees were reinstated
in their jobs and received back pay amounting to $1,870.39.
Of the 113 representation cases filed, 31 were settled by consent
election, in which the parties agreed that the Regional Director or
agent for the Board should hold an election by secret ballot to de-
termine which union was entitled to collective bargaining rights.
During the cane cutting season of 1945, a total of 41 representation
cases were filed under the NLRB to take jurisdiction in the sugar
mills. The Board dismissed these petitions on the ground of lack of
substantial showing. The Insular Labor Relations Board thereupon
assumed jurisdiction and ordered an association-wide election under
the general supervision of the NLRB and the Commissioner of Con-
ciliation of the Department of Labor.

OFFICE OF ,DEFENSE TRANSPORTATION
The program initiated by the Office of Defense Transportation in
1943 to eliminate the overloading of trucks was continued with even
greater success during the past fiscal year. The educational program
in truck maintenance and restrictions on overloading and speeding
produced profitable results for truck owners. The delay in the grind-
ing season occasioned by the strike among the cane workers caused
the ODT to permit a 10 per cent overloading of the cane trucks in
order to speed up the delivery of cane. However, only 33-per cent
of the centrals requested such permission. Reports furnished by the
centrals to the ODT showed that average overloading for the year
amounted to only 1.24 per cent, as compared with 2.05 per cent in
1943-44 when no crisis occurred in the sugar harvest.
Truck allocation in the United States was transferred ,from the
War Production Board to the Office of Defense Transportation on
July 1, 1944. During the year the Division approved applications
for acquisition of 751 motor trucks of all classes.
Conversion of motor trucks to buses without consent of the ODT
was prohibited by a General Order issued during the year.
Public passenger transport needs in Puerto Rico were adequately
served. As of June 30, 1945, the ODT had made 3,577 favorable








FORTY-FIFTH ANNUAL REPORT


NATIONAL LABOR RELATIONS BOARD
During the past year the National Labor Relations Board of the
24th Region handled 170 cases that involved a total of 24,602 workers.
Of the 57 cases of alleged unfair labor practices, 53 were settled
informally and four were recommended for formal action by the
NLRB in Washington. A total of 132 employees were reinstated
in their jobs and received back pay amounting to $1,870.39.
Of the 113 representation cases filed, 31 were settled by consent
election, in which the parties agreed that the Regional Director or
agent for the Board should hold an election by secret ballot to de-
termine which union was entitled to collective bargaining rights.
During the cane cutting season of 1945, a total of 41 representation
cases were filed under the NLRB to take jurisdiction in the sugar
mills. The Board dismissed these petitions on the ground of lack of
substantial showing. The Insular Labor Relations Board thereupon
assumed jurisdiction and ordered an association-wide election under
the general supervision of the NLRB and the Commissioner of Con-
ciliation of the Department of Labor.

OFFICE OF ,DEFENSE TRANSPORTATION
The program initiated by the Office of Defense Transportation in
1943 to eliminate the overloading of trucks was continued with even
greater success during the past fiscal year. The educational program
in truck maintenance and restrictions on overloading and speeding
produced profitable results for truck owners. The delay in the grind-
ing season occasioned by the strike among the cane workers caused
the ODT to permit a 10 per cent overloading of the cane trucks in
order to speed up the delivery of cane. However, only 33-per cent
of the centrals requested such permission. Reports furnished by the
centrals to the ODT showed that average overloading for the year
amounted to only 1.24 per cent, as compared with 2.05 per cent in
1943-44 when no crisis occurred in the sugar harvest.
Truck allocation in the United States was transferred ,from the
War Production Board to the Office of Defense Transportation on
July 1, 1944. During the year the Division approved applications
for acquisition of 751 motor trucks of all classes.
Conversion of motor trucks to buses without consent of the ODT
was prohibited by a General Order issued during the year.
Public passenger transport needs in Puerto Rico were adequately
served. As of June 30, 1945, the ODT had made 3,577 favorable









OF THE GOVERNOR OF PUERTO RICO


recommendations to the Public Service Commission for issuance of
certificates of necessity and convenience. New operations of public
operators were kept to a minimum during the year. Six new opera-
tions and 48 additional units for the existing fleet were authorized.
Surveys made .by the Public Service Commission, and a joint survey
made by the OPA and the ODT showed an excess of bus transporta-
tion in the San Juan metropolitan area. The ODT therefore recom-
mended to the Public Service Commission, in October 1944, the re-
moval from service of a certain number of buses during off hours,
.and at the same time recommended to the OPA that gasoline rations
be reduced on such units after the Public Service Commission had
acted.
Service on the American Railroad was much improved as a result
of the replacement of several old locomotives by new ones, shipments
of ties, and the decline of military traffic.
The congestion in pier traffic continued to improve under ODT
control. Most receivers cooperated in the General Order that mer-
chandise must be removed from piers within 48 hours from the time
it was dispatched from ships.
Enforcement of General Orders by penalties, which began in
November 1943, was strengthened after July 1, 1944 by authorized
cooperation of the Insular Police in reporting violations. During the
year a total of 5,429 violations of speeding was reported and 1,358
units were penalized by suspension of gasoline rationing over periods
of one to six weeks.

OFFICE OF PRIDE ADMINISTRATION

The price control program was considerably expanded during the
year. The Price Panel system was extended to include all of the
77 municipalities in the Island, with two or more panels operating
in the larger cities. In addition to their primary function of
acting as mediators between merchants and consumers in the settle-
ment of cases involving price violations at the retail level, the Price
Panel also disseminated information to merchants regarding OPA
regulations and conducted surveys to determine the degree of com-
pliance with the regulations. During the year the Panels held 4,647
hearings and made 43,882 visits to retail stores.
According to statistics gathered by the Insular Bureau of Labor
Statistics, living costs for wage-earner families in Puerto Rico rose
1.4 per cent during the fiscal year as compared with an advance of
1.2 per cent during the preceding year.








FORTY-FIFTH ANNUAL REPORT


At the beginning of the fiscal year, there were seven rationing
programs in full operation: gasoline, tires and tubes, automobiles,
bicycles, stoves, milk, and steel containers. Rationing of all of these
items continued throughout the year with the exception of bicycles,
restrictions on which were removed in October 1944. Kerosene was
added to the list in August 1944.
A system of restriction orders was instituted for the sale of certain
scarce items including rice, lard, laundry soap, kerosene, shortening
and cigarettes. Merchants were limited to a certain percentage of
the available supply of each commodity, based on their sales during
a selected base period.
Since the initiation of rent control in February 1944, the rent
situation has been considerably improved. During the year, 80,491
registrations were filed with the Rent Division of the OPA. Of this
total, 79,618 were housing registrations and the rest were hotels and
rooming houses. A total of 11,612 of the housing registrations were D
registrations, whose maximum rents _were subject to revision. The
Rent Division revised 975 of these and ordered reductions in 499
cases. In addition, 1,560 cases for the reduction of rent were handled
and 871 rent adjustments were ordered, with refunds to tenants
amounting to $3,513. A total of 448 landlords' petitions for rent
adjustment were reviewed and 233 were granted. The Division made
3,614 inspections and held 15,180 personal interviews during the year.
These investigations showed that less than 10 per cent of the housing
registrations were above the prescribed ceiling level.
The consumer education program was intensified by the OPA in
cooperation with the local press, radio stations, public schools and
various civic and labor organizations. Consumer Committees conti-
nued to be organized during the year throughout the Island, reaching
a total of 287 committees and subcommittees.

OFFICE OF SUPPLY
War Food Administration.
(U. S. Department of Agriculture)
The Office of Supply continued its operation of importing, ware-
'housing and selling to wholesalers certain essential foods and supplies
during the current fiscal year.
With the lessening of shipping hazards brought about by the
diminishing dangers from submarine warfare and with the resulting
additional space available for transportation of commodities from the
Gulf and from the Atlantic seaboard, the Office of Supply turned back








OF THE GOVERNOR OF PUERTO RICO


numerous articles to the trade for private importation by established
business concerns in Puerto Rico.
Included in the group returned to the trade during the fiscal year
were such items as animal feeds, insecticides, seeds, fertilizers, butter,
cooking oils and vegetable shortening, salmon, onions, potatoes, various
meat products and several varieties of cheese. The Office of Supply
retained control for the most part only of those items in which short-
ages existed in world food supplies. At the end of the current fiscal
year, the Office of Supply was importing only the following: dried
beans, bloaters, shell corn, cornmeal, cheese, fatback, canned pilchards,
dry and semi-dry codfish, hard and soft flour, garbanzos, lard, canned
milk, pigsfeet, rice and laundry soap. In addition, some small
amounts of dressed beef were imported from the United States and
also from Santo Domingo.

Approximately 350,000 tons of the above-mentioned items were
imported into Puerto Rico through the ports of San Juan, Mayagiiez
and Ponce from July 1, 1944 through June 30, 1945. The majority
foodstuffs imported was subsidized by the U. S. Department of
Interior while the U. S. Department of Agriculture paid for all
transportation, administrative and warehousing costs so that, in
the main, foodstuffs made available to the residents of Puerto Rico
were on a par with or slightly under the cost for identical items
in the States.
During the year the Price Support and Market News Service
Programs were suspended but, through the Food Distribution Pro-
gram of the Office of Supply, the Federal Government made available
to the Insular Government, as it did to State Governments, foodstuffs
for the School Lunch and Milk Station programs. These were valued
at $3,000,000. About 1,250 school lunch units in schools, and 400
milk stations throughout the Island participated in this program and
an average of 215,000 children were served a free lunch daily. Other
foods, in addition to those furnished by the Office of Supply, were
purchased by the Insular Department of Education in an effort to
achieve a more balanced diet for the children. Among the foods
distributed by the Office of Supply were evaporated milk, cornnleal,
canned tomatoes, wheat flour, rolled oats, oleomargarine, vegetable
shortening, vienna sausages, dried beans and dried fruits. This part
of the program also provided the services of-skilled nutritionists and
dietitians.









FORTY-FIFTH ANNUAL REPORT


PUERTO RICO RECONSTRUCTION ADMINISTRATION
Since 1942, much of the work formerly done by PRRA has been
assumed by the Insular Government, Work Projects Administration
and other agencies. Accordingly, PRRA's activities have been
limited chiefly to protection of investments previously made and
to conservation of the most essential features of its broad program
of rural rehabilitation. Funds made available to this agency for the
year 1944-45 from the Puerto Rico Revolving Fund amounted to
$1,190,324.
Rental collections for housing during the fiscal year totalled ap-
proximately $343,000 as against outlays for management and main-
tenance of $225,000. This income came from PRRA's 1,210 urban
family dwelling units, nominal rentals from 4,610 rural parcels of
about three acres each on which no houses have been built, 6,254
rural houses built in previous years and from 235 additional rural
houses constructed during 1944-45. As of June 30, 1945, all of the
urban houses and 98.6 per cent of the rural homesteads were occupied.
Under the policy of encouraging tenants to become owners. 312
occupancy agreements in the urban zone and 4,526 in the rural dis-
tricts had been converted by June 30, 1945 into long term purchase
agreements.
The Central Service Farms project, financed by Federal and In-
sular funds, aims at rural rehabilitation through the stimulation of
subsistence farming. Approximately 16,000 acres in subsistence crops
and 3,500 acres in cash crops were planted on lands of the Federal
government occupied by PRRA resettlers. Seed produced on 322
acres of seed beds in the seven Central Service Farms and fertilizers
and insecticides were distributed to needy resettlers. Resettlers were
paid for labor performed on the Central Service farms, for main-
tenance of intra-farm roads and for operation of PRRA's 37 rural
waterworks systems.
Health services have been considerably improved in several PRRA
settlements by local Civilian Public Service Camps. In addition to
the two rural hospitals established by these camps at Castafier and
La Plata in 1943-44, health units are now in operation in the Zal-
duondo, San Just and Comerio areas.
SThe fiscal year was a financially successful one for PRRA co-
operatives. The Lafayette Sugar Mill cooperative processed 207,000
tons of cane as compared with 179,000 tons in the previous year
and sold all sugar produced to the Commodity Credit Corporation.
The butyl alcohol subsidiary plant of this cooperative had a capacity









OF THE GOVERNOR OF PUERTO RICO


production of over 5,000,000 pounds of solvents. Interest on the
PRRA loans of over $3,000,000 was paid in advance and $250,000
was paid on the principal two years ahead of schedule. The Los
Cafios Sugar Mill cooperative also paid off a substantial part of its
obligation.
Five vegetable marketing cooperatives financed by PRRA increased
their volume of business from $300,000 in 1943-44 to approximately
$500,000 in 1944-45. All met their installment obligations to PRRA
on time and one paid four years in advance. Two new vegetable
marketing cooperatives were financed by PRRA with loans totalling
$29,000.
The Cotton Growers Cooperative Association, to which at one time
loans aggregating $125,000 had been made, reduced its existing
$63,750 loan to $30,000. The Cooperativa de Cosecheros de Cidra,
organized and financed during 1943-44, processed nearly one fourth
of the Island's total production of citron.

SOIL CONSERVATION SERVICE
(U. S. Department of Agriculture)

The Soil Conservation Service, in cooperation with the Insular
Committee for Conservation of Agricultural Wealth, worked out com-
plete conservation plans with farmers and cooperated with the Insular
and Federal Experiment Stations on research.
Cooperative agreements covering 12,743 acres were signed with
178 farmers. This brings the toal number of farms operating under
such agreements to 4,753 and the acreage to 73,439. Of the acres
under agreement, crop rotation was practiced on 3,479 acres; peren-
nial grasses were planted on 561 acres; old pastures were improved
and new pastures were established on 2,577 acres; 37,015 trees were
planted; and 53,500 individual terraces were constructed in coffee
and other orchard crops. Small farm irrigation systems were de-
veloped on 50 acres. Plans for contour farming were made for all
the land agreements.
On the farms placed under agreement during the year, 917 acres
of idle brushland were converted to food and feed crops. These
produced an estimated 11,400 tons of sugar cane, 630,000 pounds of
subsistence food crops and 2,400 tons of forage.
The service also assisted in various educational programs for the
Island. Assistance was given the U. S. Department of Agriculture









FORTY-FIFTH ANNUAL REPORT


in the preparation of the script for a motion picture on soil conserva-
tion for use in Puerto Rico. One hundred and fifteen group meetings
were held with farmers. A 30-hour training course dealing with
erosion control practices for maintenance of army camps was given
to 300 service troops of the Antilles Department.

UNITED STATES EMPLOYMENT SERVICE
(War Manpower Commission)
The recruitment program of Puerto Rican workers for employ-
ment in essential industries on the mainland was discontinued on
June 30, 1944 as a result of the denial of Congressional authorization
for the purpose. However, in view of previous commitments, 450
unskilled workers were recruited and cleared from San Juan in
August 1944. This made a total of 3,030 men cleared through this
office for work in the States.
Pending further instructions from Washington, activities of the
Employment Service from September 1944 to January 1945 were
limited to assisting in the establishment of the Readjustment Al-
lowance Office in Puerto Rico, as created under the Veterans Ad-
ministration by the G. I. Bill of Rights of June 1944. Six local
employment offices for veterans were established in the six largest
towns on the Island in February 1945. Up to June 30, 1945, 6,284
applicants were interviewed, occupationally classified and registered.
Of this number, 214 were placed with government and private em-
ployers.

WAGE AND HouR DIVISION
(Department of Labor)

The Wage and Hour Division made 172 complete plant inspections
involving 16,177 employees in the course of the year. Violations of
the Fair Labor Standards Act were found in 139 of these inspections.
Restitution of back wages amounting to $148,587 was made to 11,076
workers. The Division also investigated about 300 individual com-
plaints which did not require complete plant inspection.
The Mayagfiez office, in addition to its regular inspection work,
checked 4,786 needlework designs and computed wages due to home-
workers for this work. This office also investigated 15,853 requests
of employers for authority to make deductions from homeworkers'
pay because of poor work or damaged goods.









FORTY-FIFTH ANNUAL REPORT


in the preparation of the script for a motion picture on soil conserva-
tion for use in Puerto Rico. One hundred and fifteen group meetings
were held with farmers. A 30-hour training course dealing with
erosion control practices for maintenance of army camps was given
to 300 service troops of the Antilles Department.

UNITED STATES EMPLOYMENT SERVICE
(War Manpower Commission)
The recruitment program of Puerto Rican workers for employ-
ment in essential industries on the mainland was discontinued on
June 30, 1944 as a result of the denial of Congressional authorization
for the purpose. However, in view of previous commitments, 450
unskilled workers were recruited and cleared from San Juan in
August 1944. This made a total of 3,030 men cleared through this
office for work in the States.
Pending further instructions from Washington, activities of the
Employment Service from September 1944 to January 1945 were
limited to assisting in the establishment of the Readjustment Al-
lowance Office in Puerto Rico, as created under the Veterans Ad-
ministration by the G. I. Bill of Rights of June 1944. Six local
employment offices for veterans were established in the six largest
towns on the Island in February 1945. Up to June 30, 1945, 6,284
applicants were interviewed, occupationally classified and registered.
Of this number, 214 were placed with government and private em-
ployers.

WAGE AND HouR DIVISION
(Department of Labor)

The Wage and Hour Division made 172 complete plant inspections
involving 16,177 employees in the course of the year. Violations of
the Fair Labor Standards Act were found in 139 of these inspections.
Restitution of back wages amounting to $148,587 was made to 11,076
workers. The Division also investigated about 300 individual com-
plaints which did not require complete plant inspection.
The Mayagfiez office, in addition to its regular inspection work,
checked 4,786 needlework designs and computed wages due to home-
workers for this work. This office also investigated 15,853 requests
of employers for authority to make deductions from homeworkers'
pay because of poor work or damaged goods.









OF THE GOVERNOR OF PUERTO RICO


In June 1945, Industry Committee No. 4 recommended minimum
rates of pay for 57 classifications of work in 11 different industries.
A summary follows:
Chemical, petroleum, etc. ---------------------------- 32-40 cents per hour
Communications, utilities and transportation industries- 40 cents per hour
Foods and beverages------------------------------ 18-40 cents per hour
Construction ------------------------------------ 32 cents per hour
Gloves------------------------------------ ---- 35 to 40 cents per hour
Leather processing------------------------------ 20 cents per hour
Leather manufacture ----------------------------- 30 cents per hour
Textiles ---------------------------------------- 15 to 25 cents per hour
Basketweaving ----------------------------------- 15 to 20 cents per hour
Rubber products---------------------------------- 40 cents per hour
Lumber and wood products------------------------ 15 to 32 cents per hour
Metal, plastics, machinery, etc.--------------------- 20 to 40 cents per hour
Paper, printing, paper products-------------------- 25 to 35 cents per hour
Stone, clay, and glass products------------------- 25 to 35 cents per hour
Wholesaling, warehousing and distribution --------- 35 cents per hour

WAR PRODUCTION BOARD

As in the two preceding years, the WPB established a "Hur-
ricane Stockpile" of construction materials which were kept frozen
for the entire hurricane season. At the end of the season the mate-
rials were released, upon specific authorization, for essential main-
tenance and repair work.
The lumber shortage continued to be serious, although imports
were slightly higher in 1945 than in the preceding war years. During
the years 1942, 1943, 1944 and 1945 there was imported into Puerto
Rico and the Virgin Islands from continental United States 26,761,000,
10,826,000, 25,419,000 and 28,693,000 FBM, respectively.
Because of the urgent necessity for building materials, the WPB
recommended that Washington approve the authorization of four
concrete block-making plants to be located at strategic points on the
Island. The authorization was granted and the new construction
material was used extensively.
Distributors applications for priority assistance were rated in
the San Juan Field Office after September 1944. This provided
consumer goods for essential requirements which had been lacking
for a period of several months due to depleted stocks and inability
to secure appropriate assistance to rebuild inventories. From the
time of its establishment until June 30, 1945, the office received 1,567
distributors applications. Of these 1,121 were approved for commo-
dities valued at $1,272,590.









FORTY-FIFTH ANNUAL REPORT


During the year 1945, Puerto Rico produced 36,221,000 gallons of
black strap molasses. The rum distilleries in Puerto Rico received
11,840,000 gallons and the Virgin Islands 3,956,000 gallons; 3,925,000
gallons were made available for industrial alcohol production,
1,600,000 for butynol production; and 14,900,000 gallons were ex-
ported to the United States for production of industrial alcohol.
The construction of large Army and Navy installations and the
program of industrialization in Puerto Rico created an abnormal
demand for electric energy. The utility power suppliers embarked
upon a program of expansion of facilities, such as hydro-electric
plants, auxiliary generating units, mobile power sub-stations, etc.
The kwh. production was stepped up from 190,337,894 kwh. in 1940-41
to 293,142,790 kwh. in 1944-45. In order to make this step-up pos-
sible, the Office of War Utilities, War Production Board, Washington,
granted priority assistance for approximately $9,000,000 of materials.
Electric service connections for industry and essential civilian require-
ments were authorized in the sum of approximately $750,000.

WAR SHIPPING ADMINISTRATION
During the first six months of 1945, the War Shipping Administra-
tion provided north-bound tonnage for 41 per cent of the 963,618
short tons of the 1944-45 sugar crop. This was 17 per cent less than
the first six months of 1944 when 58 per cent of sugar export stocks
had been shipped. The five-week strike among the sugar cane workers,
during F]ebruary and March of this year, contributed to this dif-
ference.
Adequate shipping space northbound was also provided by the War
Shipping Administration for other commodities produced and manu-
factured such as rum, tobacco, canned fruit, needlework, citron,
alcohol and hides. Southbond cargoes totalling 833,555 long tons
of foodstuffs and general cargo were brought to Puerto Rico.
Other services provided by this Administration included the re-
patriation of 331 merchant seamen to the United States and placing
of 397 seamen on vessels. The United Seamen's Club in San Juan,
sponsored by War Shipping Administration, furnished lodgings folr
3,090 merchant seamen, served meals to 7,048 and gave financial as-
sistance in the amount of $2,480.
I have the honor to be, Sir your obedient servant,
R. G. TUGWELL,
Governor.























TABLES












OF THE GOVERNOR OF PUERTO RICO


TABLE 1.-Receipts, disbursements, and cash balances, general and
trust funds, fiscal year 1944-45

Item General Trust Funds Total
Fund
Dollars Dollars Dollars
Cash balance July 1, 1944. ............................ 82,052,784 27,872,109 109,924,893
RECEIPTS: 43, 619,114
Revenue ............................................... 79,49, 103 79,496, 103
Non-revenue ........................................... 6,428 6,428
Repayments ....................... ...................... 3,519,977 3,519,977
Trust funds ........................................... 43,619,114
Transfers............................................. 1,171, C01 7,115,418 8,287,319
TOTAL ........................................ .166,247,193 78,606,641 244,853,834
DISBURSEMENTS:
Fiscal year 1943-44..................................... 1,121,062 1,121,062
Fiscal year 1944-45..................................... 42,698,484 42,698,484
No fiscal year......................................... 9,151,842 9,151,842
Indefinite appropriations ............................. 1,613,734 1,613,734
Trust funds .............................................. 45,376,012 45,376,012
Transfers.............................................. 7,115,418 1,171,901 8,287,319
TOTAL ....................................... 61,700,540 46,547,913 108,248,453
Cash balance June 30, 1945............................ 104,546,653 32,058,728 136,605,381

SOURCE: Office of the Auditor of Puerto Rico.


TABLE 2.-General Fund revenue receipts by sources, years ending
June 30, 1941-45
(All figures in dollars)

Source 1914-45 1943-44 1942-43 1941-42 1940-41

Customs............................ 2 10,0 250,000 1,985,000 2,450,00 2,85,000 840,000
U. S. Internal Revenue................ 37,448,469 63,844,358 13,550,072 13,939,989 4,477,481
Beverage taxes......................... 6,142,914 5,479,072 4,289,469 4,141,495 2,823,883
Excise taxes........................... 11,960,090 12,300,061 8,330,219 8,791,515 8,619,606
Victory tax............................ 4,347,103 3,239,305 573,870 -
Income tax............................ 16,317, 687 16,243,029 11,319,106 7,635,383 2, 843, 433
Property tax .......................... 349,409 427,646 359, 430 367,469 377,004
Inheritance tax ........................ 242, 141 185, 866 113, 140 84, 456 222, 658
Telegraph and telephone receipts...... 90, 377 186, 872 162, 939
Court fees and fines ................... 45,747 42,025 45, "54 47,294 38,136
Harbor and dock fees.................. 34.259 37, 194 38, 231 49, 450 51,330
Miscellaneous receipts ................. 336,327 255,081 264,111 239,424 203,230
TOTAL..................... 79,439,049 103,993,637 41,478,979 37,568,347 20,659,700


SOURCE: P. R. Department of Finance, Bureau of General Accounting.












76 FORTY-FIFTH ANNUAL REPORT


TABLE 3.-Disbursements and transfers from the general
fund, fiscal years 1944-45 and 1943-44

Item 1944-45 1943-44
Dollars Dollars

Disbursements ............................................................. 54, 585, 122 45,004,001
Legislative.................................. ............................ 773, 146 528,811
Judicial..................... ... 1,054,408 1,021,575
Attorney General............ .... ............ .. 716, 742 673, 997
Office of the Auditor .................................................... 444,789 312,132
Department of Finance ................................................. 1,817,631 1,606,738
Department of the Interior ............................................. 966,612 929,676
Department of Education............................................ 12,961,252 7,767,938
Department of Agriculture and Commerce.......................... 543,501 535,430
Insular Police............................................................ 2,362,937 2,252,262
Department of Health .................... ........................... 3, 315, 352 2, 771, 792
Department of Labor.................................. .. ....... 379, 767 377, 998
University of Puerto Rico........................ .......... ........... 430,197 426,371
War Emergency Program..................... ......................... 16,182,383 12,322,607
General miscellaneous.................................................. 10,181,157 10,984,216
All other................................................................. 2, 455, 248 2,492,458
Transfers ................ ............................................... 7,115,418 5,648, 72
Total disbursements and transfers ........................... 61,700, 540 50,652,793

SOURCE: Office of the Auditor of Puerto Rico.











OF THE GOVERNOR OF PUERTO RICO 77


TABLE 4.-Excise tax collections for general and trust funds by
important single source, years ending June 30, 1941-45
(All figures in dollars)

Item 1944-45 1943-44 1942-43 1941-42 1940-41

GENERAL FUND:
Cigars and cigarettes............... 5,672,105 5,973,208 3,281,631 3, 731,631 3,123, 325
Petroleum products:
Gasoline (3 cents a gallon)..... 1,326,564 1,205,623 994, 543
Gas and diesel oil.............. 352,962 473,626 509,133 288,494 189, 229
Kerosene...................... 280,812 263,755 283,251 208,180 211,283
Fuel oil ......................... 108,195 112,509 104,253 134,599
Lubricating oils ............... 99,873 107,498 71,181 110,399 80, 84
Lubricating grease .............. 10,839 14,233 13,588 21,224 15,348
Vehicles:
Self-propelling, etc............. 784,230 677,985 228,309 858,067 931, 803
Other than self-propelling...... 22,593 1,584
Sugar ............................. 776,535 816,694 980,433 1,090,468 737,544
Internal revenue licenses........... 438,541 454,527 360, 396 340,469 302,390
Notarial instruments............... 387,675 379,326 359,484 368,442 301,527
Pneumatic tires, inner tubes, etc... 307, 568 177, 608 188, 572 73, 025 118, 240
Cosmetics, perfumery, etc.......... 291,052 337,248 109,342 129,446 93,061
Jewelry ............................ 192,537 206,312 113,006 49,143 33,670
Electrica and fluid gas apparatus.. 169, 002 354, 656 87, 417 112, 356 82, 953
Cinematographic films............. 116,660 116,760 112,700 114,079 109,758
Cement-hydraulic................ 88,455 46,426 11,647 27,832 38,867
Phonographs, radio, etc............ 73,157 38,609 27,969 147,053 75,898
Matches........................... 73,027 50,934 105,594 77,253 49, 30
Electric ans and ventilators ...... 70, 800 55, 505 64,031 161,176 114,315
Mats, rugs, linoleums, etc.......... 50, 338 23, 690 7, 172 28, 055 19, 069
Chewing gum, bonbons, etc ........ 42,726 69,057 34,262 91,485 99, 813
Fines-administrative .............. 30,257 34,525 39,529 24,477 13, 007
Affidavits ......................... 24,372 27,881 32,689 30,670 26,994
Adding and calculating machines.. 21,127 9,308 9,338 14,083 13, 486
Photographic cameras & accessories 20, 015 33, 518 37, 004 '10,891 8, 134
Court fees. ................ ...... 18,384 16,296 -2,558 27,261 25, 917
Cock-fighting....................... 14,565 17,549 19,238-
Contracts.......................... 12,200 43,890 108,232 130,446 92,055
SPECIAL FUNDS:
Gasoline. ........................ 3,095,328 2,813,174 3,471,433 3,557,415 2,889, 187
Cigarettes. ....................... 996,252 1,050,239 488,947
Auto and chauffeur licenses........ 971,950 1,023,131 1, 538, 556 02, 364 561, 745
Public shows. ..................... 609, 599 585, 311 355, 625 204, 427 134, 690
Molasses:.
Malaria fund .................. 73, 051 88, 765 168,794 122, 209 138, 058
University fund................ 58, 548 72, 731 122,100 92, 571 109, 206
Tobacco ............................ 42,714 25,616 42,613 51,285 37,030
Milk stations ..................... 41,227 38,12 31,149 21,017 17, 02
Auto P. A.......................... 40,473 57,770 143,336 57,745 -

SOURCE: P. R. Department of Finance, Bureau of Excise Taxes.


TABLE 5.-Surplus of resources over appropriation liabilities at end
of year, general fund, fiscal years 1940-45

Surplus
Fiscal year end of yr. Increase

Dollars Dollars
1944-45. ....... ................ ................... ....... 92, 231, 877 17, 310,764
1943-44. ... ... ......... ... ...........74, 921, 113 67,808,317
1942-43..................... .... ....... .................... 7, 112,796 7, 942, 173
1941-42....... ... ......................................... 15,054,969 10, 650, 412
1940-41 .......................................................... .......... 4,404, 557 2,960, 418
1939-40 ......................................................... .......... 1,444,139

I Decrease.
SOURCE- Office of the Auditor of Puerto Rico.












78 FORTY-FIFTH ANNUAL REPORT


TABLE 6.-Indebtedness of the Insular Government of Puerto
Rico, end of fiscal years 1940-45

Bonded Notes Decrease
Fiscal year debt payable Total debt
Dollars Dollars Dollars Dollars
1944-45............................................ 12,124,000 12, 124,000 880,0001
1943-44............................................. 11,244,000 11,244,000 5,154,000
1942-43........................... ................... 16,398,000 16,398,000 7,937,000
1941-42. ............... ...................... 23,700,000 635,000 24,335,000 2,794,000
1940-41 .................. ......... ....... 26,975,000 334,000 27,309,000 586,000
1939-40. .......... .............................. 27, 200, 000 695,000 27,895,000 -

1 Increase.
SOURCE: Office of the Auditor of Puerto Rico

'TABLE 7.-Assessed valuation, debt incurring capacity and outstand-
ing indebtedness of the Insular Government of Puerto Rico,
end of fiscal years 1944-45 and 1943-44

Item 1944-45 1943-44
Dollars Dollars
Assessed property valuation............................ 368,368,918 351,182,003
Debt incurring capacity-10 per cent of assessed valuation................. 36,836,892 35,118,200
Insular bonds outstanding:
Workmen's Relief bonds of 1930.. ..... ......................... 125,00 150, 000
Guayama Irrigation bonds ........................................ 2,875,000 3,195, 000
Road bonds.................. .............................2... .... 2,000,000 2,000,000
Public improvement bonds. ............................................. 2,000, 000 2,000, 000
Public hospital charity bonds of 1938 .............. ................. 150,000 200,000
Isabela Irrigation consolidation bonds of 1938 ........................ 1,200,000 1, 500,000
Isabela Irrigation bonds.................................. .............. 1,400,000 1,475, 000
R funding bonds ........................................................ 150, 000 150, 000
Consolidation bonds of 1935.. ................................... 200, 000 488, 000
City of Ponce lot and building bonds..................I ............ 84, 00 86,000
Land Authority bonds of 1944 ....................................... 970,000
Land Authority bonds of 1944 (Series B)........................... 970,000
Add:
Temporary loans contracted by municipalities and chargeable against
Insular Government borrowing capacity ............................ 412,378 636,903
Less:
Refunding bonds secured by equal amount of municipal and
school bonds.................. ...................................... 150,000 150, 000
Sinking funds: ................ ................... ..................... 1,197, 159 904,682
For: Ponce District building bonds .... ........................ 2,838 2,788
Road public improvement and homestead bonds.............. 229,533 641, 548
Isabel [ ...... bonds........ ..................... 244, 303 260,346
Land .\.i' .. : bands redemption fund ........................ 720,485 -
Net outstanding indebtedness............... ...................... 11,189,219 10,826,226
Net available debt margin......................................... ..... 25,617,673 24,291,974


SOURCE: Office of the Auditor of Puerto Rico.




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