CREDITS ALLOWED 4. In the case of a domestic partnership or corporation: $3,000.00 Specific Credits... 5. Net income subject to tax of---_. COMPUTATION OF TAX $3,000. 00 118, 322. 14 6. 14.375% on the amount of item 5..-- CREDITS FOR TAXES IN CASE OF DOMESTIC PARTNERSHIPS AND 7. Income or excess-profits taxes paid or accrued during the 8. ADDITIONS TO THE TAX 9. Deficiency $11,333.36 (item 8 minus item 13) 11. Penalties... 12. 17, 008. 82 17, 008. 82 Total tax and additions (item 8 plus items 10 and 11) 13. Less: Tax assessed as per receipt No. 102. 18, 652. 16 5, 675. 46 14. 15. Total tax and penalties payable (item 12 minus items 13 and 14). 12, 976. 70 Pursuant to section 57 (a), of Act No. 74, of 1925, as amended by section 6, of Act No. 23, of November 21, 1941, the reconsideration of the deficiency herewith determined may be applied for, within fifteen (15) days immediately after the date of this notice, stating in your application the grounds on which the same is based; Provided, that in the case the application for reconsideration is not filed within the term above mentioned, the Treasurer shall levy and collect the deficiency determined. Respectfully, (Signed by) JORGE BERMÚDEZ, Assistant Treasurer of Puerto Rico. NOTICE. The determination of the net income is shown in the attached exhibit. EXHIBIT No. 58 Reference was made on page 586 in the testimony of Mr. Ortiz to the taxes the Puerto Rico Transportation Authority Bus Service (formerly the White Star Bus Line, Inc.) would pay if it were operated as a private company. This information, requested by the committee, was not furnished by Mr. Ortiz. EXHIBIT No. 59 In the testimony of Mr. Moe Goldman requests were made on pages 601 and 607 for a certified sworn statement showing cost of barrels on invoice shipped to Puerto Rico by the J. Younge Grain Co., and a financial memorandum regarding barrel transactions. This information was never supplied by Mr. Goldman and no replies were received to three letters addressed to him by the subcommittee under the dates of June 15, July 9, and August 24, 1943. The information requested of Mr. Goldman, however, was supplied in full by the J. Younge Grain Co., Peoria, Ill., in response to a letter written to it August 24, 1943, by H. Stewart McDonald, then counsel for the subcommittee. Copies of the three letters written to Mr. Goldman, Mr. McDonald's letter to the J. Younge Grain Co., and the letter and photostatic copies received from the J. Younge Grain Co., are as follows: Mr. MAX GOLDMAN, C/o Farber Electrical Co., San Juan, Puerto Rico. SAN JUAN, P. R., June 15, 1943. DEAR MR. GOLDMAN: Your recollection will serve to remind you that at the time you testified before the Bell committee you were directed to provide for the record a certified copy of an invoice showing the cost to you or to your principal in Peoria, Ill., of the barrels respecting which you testified as having been brought to Puerto Rico by steamer. The committee has not received the document in question. You should send the document to me at the Hotel Condado before Thursday evening, June 17, or to 315 House Office Building, Washington, D. C., after that date. DEAR MR. GOLDMAN: This letter is written as a follow-up to the letter written you under date of June 15, 1943, by Mr. H. Stewart MacDonald, counsel for the Subcommittee Investigating Political, Economic, and Social Conditions in Puerto Rico. In that letter Mr. McDonald asked that you provide for the official records of this committee a certified copy of an invoice showing the cost to you or to your principal in Peoria, Ill., of the barrels respecting which you testified before the subcommittee as having been brought to Puerto Rico by steamer. To date the committee has not received this information and it will be appreciated if you will give the matter your prompt attention, sending it to me here in Washington. Sincerely yours, C. JASPER BELL, Chairman. AUGUST 24, 1943. DEAR SIR: You will undoubtedly recall that during your interrogation by the Committee on Insular Affairs of the House of Representatives sitting in San Juan on June 9, 1943, you were asked for, and you agreed to provide for the committee, a certified and sworn statement showing the invoice cost of certain barrels which were shipped from Peoria, Ill., to San Juan. Also, you were at the same time asked for a financial memorandum covering the transaction of the barrels and the feedstuffs shipped in them, including the cost of the barrels to the Younge Grain Co., the price at which the feed was sold to the Food Distribution Administration and (quoting from the request of Mr. Crawford of the committee): (* * * these various economic factors which you stated a moment ago, finally coming down to the 30-cent profit to you as agent, and to some other kind of profit to the Peoria Grain Co. and the Illinois people so as to establish and support the statement you made to the effect the rum company was subsidizing the Treasury of the United States." It is my understanding that you never provided the memorandum asked for, and I am instructed by the committee to request that you do so immediately Very truly yours, H. STEWART MCDONALD, Counsel. AUGUST 24, 1943. YOUNGE GRAIN Co., Peoria, Ill. GENTLEMEN: I am writing this letter at the direction of the chairman of the Committee on Insular Affairs of the House of Representatives. During hearings taken by a subcommittee of the committee in Puerto Rico last June there was testimony respecting consignments of barrels shipped by you from the States to Puerto Rico, and the committee wishes to have the following information from you at your earliest convenience: 1. How many shipments of barrels were made by you to Puerto Rico during 1943; the number in each shipment; and the size and weight of the barrels involved. 2. The point of origin of each shipment; the route followed from point of shipment to final destination; and the name and address of the consignee of each shipment. 3. What Government agency gave formal approval of the shipment; what form of application was used for such approval; by whom the application was made; to whom it was made; and where and when it was granted, and by whom. The committee wishes to have copies of the application and of the document evidencing approval of each shipment. 4. The cost to you of each barrel; and the price you finally received upon sale or other disposition. 5. A full explanation of what disposition was made of each shipment. 6. How many barrels in each shipment were shipped empty, and as to those that were not shipped empty, with what and to what extent were they filled, and to whom the contents of such barrels were consigned. Your early attention is requested. Very truly yours, H. STEWART MCDONALD, Counsel. Mr. H. STEWART MCDONALD, Counsel, Congress of the United States, J. YOUNGE GRAIN CO., Peoria, Ill., September 7, 1943. Committee on Insular Affairs, Washington, D. C. DEAR SIR: Replying to your letter of August 24 having reference to a hearing by a subcommittee in Puerto Rico pertaining to barrels shipped by us from the United States to Puerto Rico. We note that this committee wishes to have six questions answered which you ask in your letter of the above date. Also that certain documentary evidence be furnished. We are enclosing herewith a statement showing contract numbers, delivery order numbers, number of barrels in each shipment, and also the gross, tare and net weights of each shipment, which we believe gives you more information than you are really asking for in your letter. We are also enclosing 8 photostatic copies of the orders shown in this statement, which cover a total of 21,406 barrels of wheat bran and screenings, and distillers dried grains, shipped to date. Answers to your questions are as follows: 1. How many shipments of barrels were made by you to Puerto Rico during 1943; the number in each shipment; and the size and weight of the barrels involved. Answer: See statement attached. 2. The point of origin; the route followed from point of shipment to final destination; and the name and address of the consignee of each shipment. Answer: See statement attached. 3. What Government agency gave formal approval of the shipment; what form of application was used for each approval; by whom the application was made; to whom it was made; and where and when it was granted, and by whom. The committee wishes to have copies of the application and of the document evidencing approval of each shipment. Answer: See photostatic copies and statement attached. 4. The cost to you of each barrel; and the price you finally received upon sale or other disposition. Answer: The empty barrels were the property of, and were furnished to us by, the Compania Ron Carioca Destileria, Inc., and the Virgin Islands Distillers. We filled the barrels with wheat bran and screenings or distillers dried grains, whichever the contract called for, to the full packed capacity. Each barrel of feed was sampled and weighed under the supervision of Mr. J. P. Stanfield, Food Distribution Administration, Grain Products Branch, United States Department of Agriculture, Peoria, Ill. A composite sample of the feed from each barrel was sent to the United States Laboratory, Grain Products Branch, Washington, D. C., for approval. After the quality of the feed in each barrel was approved it was applied on our contracts with the Food Distribution Administration, Washington, D. C., as per photostatic copies attached hereto. It was understood that upon arrival of the feed in barrels in Puerto Rico we were to empty the barrels into Government storage, free of any cost to the Government and the empty barrels returned to us. We, in turn, released the empty barrels to the Compania Ron Carioca Destileria, Inc., and the Virgin Islands Distillers, for their use and disposition. The actual weight of the feed was sold to the Food Distribution Administration, f. o. b. Peoria or Pekin, Ill., and we agreed to assume the freight charges on the weight of the barrels from Peoria to Puerto Rico. 5. A full explanation of what disposition was made of each shipment. Answer: All of the shipments shown in the attached statement were billed to Federal Surplus Commodities Corporation, port of export, New Orleans, Mobile, or Galveston, as shown on the attached photostatic copies of telegrams giving shipping instructions. 6. How many barrels in each shipment were shipped empty, and as to those that were not shipped empty, with what and to what extent were they filled, and to whom the contents of such barrels were consigned. Answer: This question has already been answered but we will repeat that each and every barrel was filled to its fullest capacity with wheat bran and screenings or distillers dried grains, and consigned to the Federal Surplus Commodities Corporation, who were in control of the shipment from Peoria to final destination. We believe that we have covered the case quite fully but if there is any additional information desired we will gladly furnish the same. We take it from the questions that you are asking that there is a firm or firms that have not operated according to the Government rules and regulations. If you find all of our transactions to be in accordance with instructions, which we believe they are, we hope that your committee will authorize the Grain Products Branch in charge of shipping instructions to allow us to complete our contracts which are unfilled because of being stopped pending your investigation. Very truly yours, J. YOUNGE GRAIN Co. (EDITOR'S NOTE.-The charts referred to above which show the contracts and applications between the United States Government and the J. Younge Grain Co. can be seen at the committee's office. The charts show that a total of 21,406 barrels of wheat bran, screenings, and distillers dried grains weighing 3,294,235 pounds had been shipped by the company from Peoria and Pekin, Ill. Copies of the nine orders from the Food Distribution Administration can also be inspected at the committee's office.) EXHIBIT No. 60 Reference was made on page 609 in the testimony of Mr. Benjamin Ortiz to a graph representing the percentage of workers in different agricultural activities. This was not submitted in evidence. EXHIBIT No. 61 Reference was made on page 611 in the testimony of Mr. Benjamin Ortiz to the tons of sugarcane marketed or produced by the sugarcane farms in Puerto Rico, 1940-41, and the Federal payments received by sugar growers in 1941. These statistics may be found on page 35 of the "Puerto Rican Economy During the War Year 1942," the confidential statistical report, data from which was deleted for war security reasons. It may be inspected, however, in the committee room upon presentation of proper authority attesting to an official need for the information. EXHIBIT No. 62 On page 619 Mr. Ortiz referred to the briefs which were filed in the case of Antonio Roig, against the public service commission in which case Mr. Roig declared that sugar production was not a public utility and that he would not countenance any intervention by the public service commission. Copies of these briefs can be obtained by writing either Mr. Ortiz or Mr. Roig. EXHIBIT No. 63 Reference was made on page 677 to a chart on the water storage curve of the Dos Bocas Reservoir, July 3, 1942, to June 14, 1943, which was supplied by Mr. Antonio Lucchetti. The chart can be seen at the committee's office in Washington. EXHIBIT NO. 64 On page 687 Mr. Crawford submitted a series of questions to Mr. Lucchetti for reply at a later date. Mr. Lucchetti has never supplied this information to either Mr. Crawford or to the committee. EXHIBIT No. 65 Reference was made on page 698 to a general report and a statement regarding the location of different projects set up by the Puerto Rico Land Authority, number of people being served, how much land each is to get, the cost for each person, and on page 703 reference was made the names of individuals who own tracts of land in Puerto Rico larger to than 50 acres. This information may be found in the following information supplied by Mr. José Acosta Velarde: Hon. C. JASPER BELL, LA FORTALEZA, Chairman, Subcommittee of Committee on Territories and Insular Affairs, DEAR CONGRESSMAN BELL: I am herewith enclosing two copies of the report of the Land Authority of Puerto Rico to your committee together with the letter of transmittal from José Acosta Velarde, its executive director, to Governor Tugwell. Mr. Acosta's letter is part of his report. Sincerely yours, Hon. REXFORD G. TUGWELL, A. FERNOS ISERN, Acting Governor. LAND AUTHORITY OF PUERTO RICO, Governor of Puerto Rico, San Juan, P. R. SIR: I have the honor to send you herewith a statement for the Bell committee on the land problem of Puerto Rico as well as upon the operation of the land authority. I have not yet had the opportunity to examine the transcript of my testimony before the committee. However, some news items have been called to my attention in which it is indicated that the newspapers at least misunderstood my testimony, because it is said that I suggested that the sugar mills in Puerto Rico might go out of business in the future because of the land law and the public utility law of Puerto Rico. In order that there can be no misunderstanding about this matter I wish to have the record show my views clearly and have them |