Island is indebted to you, Morgan Stubbe
Published on Sunday, March 14th 1999 on The San Juan StarIn 1952 a fellow by the name of James Morgan came to Puerto Rico from Michigan to set up a new company sponsored by FOMENTO. The company was Aero Components. Later he started another, Riquísima. A son born to him in 1958 was raised very much aware of Teodoro Moscoso's and FOMENTO's contribution to Puerto Rico's economic development. Little did this "FOMENTO brat" suspect that he too would one day head FOMENTO himself.
Tulane Bachellor and UPR Juris Doctor Jaime Morgan-Stubbe, having been admitted before the Puerto Rico and Federal Bars, joined the Litigation Division of the Federal Deposit Insurance Corporation (FDIC). There he handled commercial and banking litigation, assisted the FBI in criminal investigations, and was the FDIC liaison with the U.S. District Attorney's Office. He later specialized in Transportation, Corporate, and General Civil Law, becoming an expert in air and maritime transportation. He achieved the status of Proctor in Admiralty, certified by the Maritime Lawyers Association. It is small wonder then why Governor Pedro Rosselló tapped him, in August of '93, to head the Puerto Rico Maritime Shipping Authority. At age 34, he was the youngest PRMSA Executive Director ever. He spearheaded legislation to sell PRMA's assets, culminating in legislative approval for the sale a year later.
That behind him, it was time for another job. In November of '94 he was simultaneously appointed head of FOMENTO, an agency of the central government, and Chairman and CEO of PRIDCO, a public corporation. Traditionally, FOMENTO had been headed by one person and PRIDCO by another. Jaime, however, handled both jobs. Then he became the eye of the 936 storm, and essentially moved to Washington. He spent as much time with White House Staff, Members of Congress, and federal agency heads as he spent in his Hato Rey offices.
A columnist once commented that if 936 was repealed, Morgan-Stubbe would turn FOMENTO's lights off. As of last evening, however, FOMENTO's lights were still very much on. In FY 93-94, prior to Jaime joining FOMENTO, job commitment was at a record low of 4,926, machinery and equipment (M/E) investments were at $34.7 million, and PRIDCO had an occupancy rate of 78% and $44.6 million in revenue. By 1998, FOMENTO's job commitment was 11,063, M/E investment was at $315 million, and PRIDCO's occupancy rate was 86.5% with $54 million in revenue. What is surprising about the '98 occupancy rate –after the 936 repeal– is that there was better occupancy in spite of an increase of 1.4 million square feet of PRIDCO's real estate. Without a 936 lure! When reminded of the columnist's assertions, Jaime would nonchalantly answer with a quote from Shakespeare: "When the seas are calm, all ships show mastery at floating."
Though seldom mentioned, one of Jaime's major contributions is probably his handling of the Research and Development (R&D) Incentives Fund. One of Puerto Rico's best kept secrets is that, under Jaime's tenure, FOMENTO has disbursed $7,979,050 in R&D incentives during '94-'95; $11,923,109 during '95-'96; $15,067,012 during '96-'97; and $9,524,919 during '97-'98, when administrative changes in the R&D program were structured. This comes to a total of $44,494,090 in FOMENTO R&D incentives to date.
The fact is that, in spite of Puerto Rico's industrial development, precious little of what is manufactured here is designed or invented here. We essentially assemble what is developed elsewhere. The reason is that most industrial incentives, like 936, were based on tax benefits. Companies carry out their R&D where they are offered incentives to do so, and until recently we had been offering incentives to manufacture, but not to invent or develop. The R&D program, and Gov. Rosselló's new Science and Technology Policy, will now offer 200% tax benefits for moneys invested towards R&D in Puerto Rico. Jaime had quietly been doing his R&D incentives homework based on the governor's New Economic Development Model, and even before the governor officially implemented the new science policy. The first R&D incubator, sponsored by FOMENTO, will be inaugurated in Mayagüez next Friday.
Jaime was also instrumental and key player in fusing FOMENTO and PRIDCO, making the new agency leaner and more efficient, and saving the Puerto Rican taxpayer $5.4 million a year in payroll costs.
Jaime Morgan-Stubbe will be a tough act to follow. Who will fill his shoes for the next 18 months is still either a secret or an unknown. I would vote for his wife Jochefy, but then this would not alleviate the family disruption that Jaime wishes to remedy by resigning his post. Still, few mortals are given the opportunity of leaving a demanding position at their peak.
It was a pleasure and a privilege working with you, Jaime. Puerto Rico is indebted to you. May our lives cross again in some professional capacity, and may they cross frequently in any personal capacity.