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BOARD OF PHARMACY.

During the year this board examined 21 candidates for licenses to practice as druggists, of whom 12, or 57.14 per cent, passed.

A number of matters have come up for decision by the board, including requests for its basing the examinations on the textbooks used in the University of Porto Rico and making their scope more general. The board, however, did not see its way clear to grant these petitions, for the reason that its examinations for licenses are intended for graduates of any school or college and that experience has fully demonstrated the need of their being made as searching as possible.

The board has refused to accept a principal teacher's certificate as the equivalent of the legal requisite of a high-school education, has sent to the attorney general for proper action a number of cases where in its judgment there was conclusive evidence that licenses had been improperly issued, and has reported to the police for investigation some drug stores whose owners have not met all the requirements of law.

BOARD OF TRUSTEES OF THE UNIVERSITY OF PORTO RICO.

The University of Porto Rico has had a successful year and presents a creditable record of achievement for 1916-17. The enrollment of students reached 1,174, being 124 more than the number enrolled during the previous year. The work accomplished in all departments has been marked by increasing efficiency..

The board of trustees has established important regulations concerning courses of study, conferring of diplomas, credits from other institutions, etc., as well as the necessary rules for the examination of candidates for admission to the bar.

The special course for the preparation of rural teachers, including work in agriculture, rural hygiene, sanitation, and elementary science, which was adopted this year, has proved a success, and when further additions to the faculty become possible, the normal department should, in addition to the courses now established, provide special courses for the preparation of teachers for primary, intermediate, and upper grades of elementary schools.

The law course has been extended from three to four years, and one additional instructor has been appointed and the registrar has also conducted some classes.

The course in pharmacy has also been extended one year, from two to three years, and an additional instructor has also been provided. The practice school building at Rio Piedras has been altered so as to provide an assembly hall, but there is still pressing need for new buildings, and there ought to be a gymnasium which could serve at place for indoor military drill for the cadets as the same time as well as a recreation hall and social center for the university.

The campus roads have been provided with electric lights, and a fund has been obtained by voluntary subscriptions for the purpose of erecting on the campus a memorial to the late Hon. Luis Munoz Rivera, a distinguished patriot, who at the time of his death was Porto Rico's resident commissioner at Washington.

A part of the university reserve funds has been used for the purchase of liberty bonds; and two instructors have entered the officers' training camp.

The college of agriculture and mechanic arts at Mayaguez has made steady progress throughout the year, with an enrollment of 290 students, being the largest number ever enrolled during any

year.

The courses have been divided into collegiate and subcollegiate; the latter extends four years beyond the common-school course and is designed to offer a thorough practical education to boys who are unable to continue in college until they receive a degree.

A new and up-to-date 10-room science building has been opened for use during the past year, and besides this a machine shop has been fitted up, completing the shop equipment in mechanic arts; and in addition to these a new chemical laboratory, and also a laboratory for soil analysis and crop experimentation have been provided, and other necessary laboratories are being installed.

Much experimental work has been carried out along the lines of crop fertility, the preparation of soils, and the effects of certain fertilizers upon various crops, with very satisfactory results. The college has also joined in the nation-wide movement for the increase of food supply by furnishing plots of land to those who would plant them. A report of the board of trustees will be found herein annexed to the report of the commissioner of education.

CARNEGIE LIBRARY.

This handsome and commodious building has been open to the public a little more than a year, and the attendance has gradually increased until it has now reached 150 daily.

One of the main features of this new building is a large children's room, and especial attention has been given to the securing of appropriate books and periodicals for this important department. Two clerks are in charge of this department, whose duties are to look after the juvenile patrons and present to them the uses and benefits of the library.

A plan has been developed to put into operation a system of traveling libraries, so that some 40 municipalities may participate in the benefits of this institution, and if found to be practicable the scheme will be gradually extended until it reaches all the towns of the island.

The total accessions for the year amounted to 1,830 books, 1,567 by purchase and 263 by gift; notable among these latter is the collection of the late Manuel Maria Sama, comprising more than 200 volumes by Porto Rican authors. Of the total accessions, 720 books were in Spanish and 1,110 in English. Large orders for books were placed both in the United States and Spain, but due to transportation difficulties, caused by the war, they have not yet arrived. This explains the apparent falling off in the number of books acquired during the year, since books are not listed as accessions until actually received.

IRRIGATION COMMISSION.

This commission completed its work and dissolved on June 30, 1917, having formed and put in operation the permanent irrigation district. The duties imposed upon the commission by law were: (1)

REPORT OF THE GOVERNOR OF PORTO RICO.

To fix the boundaries of the permanent irrigation district; (2) to determine the irrigable lands that should be included therein; and (3) to value the water concessions. All of these rather difficult duties were performed, and the commission adjourned sine die on the date above mentioned.

The number of acres of land included in the district, in both the eastern and western divisions, is 33,230 acres.

In the eastern division all of the lands suitable for irrigation were Of this actually included in the district, namely, 17,992 acres. area, 16,314 acres contribute toward paying the cost of the system and 1,677 acres represent the value of the concessions acknowledged by the commission. In the western division, unfortunately, there is not water enough to enable the commission to include all the lands which might be irrigated by the canals of the system, together with the lands holding water concessions from the Jacaguas River. The commission included, therefore, 4,800 acres of lands holding concessions and 10,438 acres of other lands, making a total of 15,238 acres of land in this division that are actually irrigated by the impounded waters of the irrigation system. There are at present 7,000 acres of good lands not irrigated in this division, which lands are now nearly all planted in cane.

The boundaries of the permanent irrigation district were fixed so that it extends from the canals of the system on the north to the Caribbean Sea on the south, and from the Jacaguas on the west to the Patillas River on the east.

years,

The commission recommended that, in view of the great success that has attended the operation of the irrigation system for the past three and in view of the fact that there is not sufficient water to irrigate fully all the good lands lying under the canals, every effort be made to increase the supply of water (1) by increasing the capacity of the reservoirs so as to impound and save more of the flood waters of the streams, (2) by making a study of the subterranean waters for the purpose of bringing them to the surface by means of pumps to be operated by the electric current generated at the Carite hydroelectric plant.

They also recommended that this Carite plant be enlarged so as to provide current for this purpose.

INSULAR GOVERNMENT FINANCE.

As shown in the report of the treasurer, published elsewhere in this volume, the outstanding feature of the work of the department of finance during the past year was the revision of the assessment of the real and personal property of the island subject to the property tax, as provided for at the legislative session of 1916. This arduous and important task was successfully accomplished during the year and, as was confidently expected, the result was a large increase in the assessed value of the property for purposes of taxation. The last general revision had taken place in the years 1909-1912, and had resulted in an aggregate assessment of about $180,000,000. The new revision raised this total to nearly $242.000,000. In addition to producing a permanent increase of about $620,000 in the annual revenues of the insular government, this increase of assessments will add about $62,000 per year to the sinking fund for the payment of

the outstanding bonded indebtedness of the island, which will make it possible to retire these bonds more rapidly than heretofore. In this connection it should be stated that the policy has been agreed upon to use a part of the accumulated sinking funds to purchase in the open market, at not more than par value, bonds which are not subject to recall and retire them. As the accumulated sinking funds already amount to more than $2,000,000, and as there is every reason to believe that the market price of Porto Rican bonds may under present conditions fall to par or less, it is considered a wise policy to purchase and cancel the older issues, thereby reducing the total indebtedness and effecting a saving in interest.

Very important changes have taken place in the finances of the insular government since the last report. These changes affect both sides of the account as to receipts and are as follows:

The new organic act contained an amendment establishing prohibition in Porto Rico after March 2, 1918, unless this was disapproved by a majority of the voters at the general election to be held on July 16, 1917. This amendment, however, was approved by a large majority of the voters at the election mentioned and therefore the insular government will lose almost immediately all of the revenues hitherto derived from all forms of taxes upon alcoholic beverages. The loss of revenues will amount to about $1,500,000 annually. Fortunately for Porto Rico this loss had already been made good in part by the generosity of Congress in granting to the local treasury the internal-revenue taxes on cigars manufactured in the island and shipped to the United States, and by the increase in the revenue derived from the income tax under the new law passed by Congress in September, 1916. The balance of the loss due to prohibition will undoubtedly be replaced by new forms of local taxation passed by the new legislature which is at this writing holding its first session. Owing to the general prosperity now prevailing, it will be relatively an easy matter to provide taxes to replace these revenues, and it is not anticipated that any serious financial embarrassment will result from prohibition, while on the other hand many incidental benefits are expected.

The appropriation act for the fiscal year 1917-18 was passed by the legislature in April before the vote on prohibition was taken, but the appropriations were so conservative that it is believed that few, if any, alterations in the current budget will be necessary.

The revenue for the year 1917-18 from all sources, as estimated by the treasurer as available for appropriations, amounted to $5,005,350, making due allowance for the possible effects of the approval of the prohibition amendment which would take effect unless disapproved March 2, 1918. The sum total of appropriations was, according to the digest of the auditor, $5,471,169, but of this total some $500,000 were no-fiscal year and contingent appropriations which are not expended unless the condition of the treasury is such as to make it prudent.

The following summary of the transactions of the insular treasury is intended to present in the most concise form possible a general view of the income and expenses, as well as the receipts and disbursements from all sources and for all purposes during the fiscal year; it also shows the total cash on hand and the amount available for expenditure at its close.

Summary of the transactions of the insular treasury for the fiscal year 1916-17.

Customs receipts during the year amounted to....
Internal-revenue receipts accruing to the insular government, made up
of $34,660.27 from inheritance tax, $635,754.38 from property tax,
$1,050,244.74 from tobacco tax, $410,107.52 from income tax, $93.75
from industrial and commercial licenses, $228,820.77 from license
taxes, $1,192,909.04 from tax on spirits and liquors, and $419,012.40
from other taxes, aggregated..

Receipts from fees, fines, and other miscellaneous sources amounted to

Making the total actual revenue collected on account of the

fiscal year 1916-17...

There also reverted to and were paid into the treasury on account of general fund, representing repayment of loans to municipalities and school boards, repayment of unexpended funds to appropriations, sales refunds from the working capital account of the bureau of supplies, printing and transportation, and various other minor transfers, aggregating...

Making the total insular treasury receipts on account of general funds available for expenditure under appropriations. Receipts on account of trust funds, representing $1,926,614.10 in property and industrial and commercial license taxes on account of municipalities and school boards, $526,162.84 from sales of irrigation bonds, interest on balances, etc., $182,807.94 in bond-redemption tax, and $1,534,294.09 from miscellaneous sources and transfers, amounted to...

$378,000.00

3, 971, 602. 87 909, 815. 34

5, 259, 418. 21

1, 508, 650. 53

6,768, 068. 74

4, 169, 878. 97

Bringing the total receipts of the treasury for the year up to.. 10, 937, 947. 71 This amount, added to the cash balance in the treasury at the close of 1915-16..

Made the total to be accounted for....

On account of appropriations by the legislative assembly there were expended during the fiscal year:

For legislative expenses.

For all services, public works, improvements, and
expenses incurred by and effected through the
various branches of the executive department of
the insular government...

For the support of the judiciary.
For miscellaneous purposes....

Or a total of..

Further disposition of available funds in loans to municipalities and school boards, transfers and repayments to appropriations, including repayable advances to the working capital fund of the bureau of supplies, printing and transportation, and municipal and school

$63, 474.62

4,049, 760. 32

428, 076. 16
180, 320. 64

4, 721, 631. 74

board bonds redeemed and sold, amounting to........ 1,624, 727. 93

Brought the total amount expended and disposed
of up to....

Reducing the amount at the disposal of the government to.....
Disposition of trust funds, represented by payments to municipalities
and school boards on account of taxes collected for them of $1,925,-
413.50; expenditures from irrigation fund, $537,024.55; other expendi-
tures, repayments, and transfers, $924,952.57; in all aggregating..

Reduced the amount to the credit of the government at the end
of the year in available resources to..

Segregating from this the amount representing funds held in trust for
specific purposes..

There remains available for expenditure under legislative appro-
priation...

2,901, 648. 13

13, 839, 595. 84

6, 346, 359. 67

7, 493, 236. 17

3, 387, 390. 62

4, 105, 845. 55

3, 524, 369.38

581, 476. 17

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