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sugar mills a public necessity and guarantee to capital invested 

 in them an annual return of 4 per cent, as the Government has 

 already done in the case of the railroads of the Islands. 



It has been suggested by others that the Government build 

 and operate the sugar centrals, charging the planters enough 

 for manufacturing their sugar to cover the cost of operation and 

 upkeep. Also, it has been suggested that the Insular Government 

 supply a part of the capital for the erection of sugar mills, the 

 provincial government a part, and local planters a part. 



People competent to speak on this matter assert that outside 

 capital would be available for the erection of all the mills needed 

 in the Islands if the Government would declare sugar centrals 

 a public utility and would confer upon their owners the right 

 to eminent domain with respect to the location of the mill, the 

 right of way of its railroad tracks and switches, its pipe lines, 

 sewers, and wharfs, and if the Government would follow the 

 practice of some of the States in preventing destructive competi- 

 tion by determining what regions can support a central and 

 allowing no public central to be erected except with a Government 

 franchise and in a region approved by the Bureau of Agriculture. 

 In consideration of the rights and privileges thus conferred upon 

 the mill owners, the Government should exercise the same control 

 over the management and operation of the sugar centrals as it 

 exercises over other public utilities, such as railroads, telephones, 

 and banks, with respect to the rates charged, the nature of the 

 contract between the mill owners and the planters, the location 

 and plans for the mill, railways, pipe lines, sewers, and wharves, 

 and make the central subject to governmental control with 

 respect to the efficiency of its management. 



Naturally in determining what is a fair return on the invest- 

 ment by the mill owners, or what is a fair charge for the 

 manufacture of the sugar from the cane, the Government would 

 consider the management of the mill in manufacturing the sugar 

 as well as the efficiency of the planters in the production of 

 cane. The Government should station at each such central an 

 efficient chemist bonded and appointed by the Government and 

 perhaps also a weighmaster and a record clerk. The three under 

 direct supervision of an official of the Bureau of Agriculture 

 should represent the planters and mill owners in all matters of 

 control and record of business. The Government would be 

 justified, perhaps, in taxing each central on the basis of its output, 

 the fund to be paid into the Treasury to the credit of the Bureau 

 of Agriculture to support the work of supervision and control. 



In an era of rapid expansion of such an industry there is 



