Report of the governor general of the Philippine Islands. [1915]
Philippines. Governor.

Page  [unnumbered] tt: B 683,776 IIS:-B A ii. & i'~' ANNUAL REPORTS, WAR DEPARTMENT FISCAL YEAR ENDED JUNE 30, 1915 REPORT OF THE PHILIPPINE COMMISSION..,: f I ~~.. 1t ~ I d A;._ c~.W TO THE SECRETARY OF WAR JULY 1, 1913, TO. DECEMBER 31, 1914 (IN ONE PART) WASHINGTON GOVERNMENT PRINTING OFFICE 1915

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Page  I ANNUAL REPORTS, WAR DEPARTMENT FISCAL YEAR ENDED JUNE 30, 1915 REPORT OF THE PHILIPPINE COMMISSION TO THE SECRETARY OF WAR JULY 1, 1913, TO DECEMBER 31, 1914 (IN ONE PART) - a^ 0,, *>' * *:: j

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Page  III CONTENTS. Page. Report of the Philippine Commission......................3........ 3 Legislation................................................... 3 Exclusive legislative jurisdiction of the commission......... 3 As a chamber of the Philippine Legislature............. 4 Bills failing of passage............................................ 6 Recommendations...................... 9 Report of the Governor General (July 1, 1913, to December 31, 1914).... 11 Changes in personnel.......... 14 Work of the bureaus and offices in 1914.......... 31 Public utilities commission........................................ 31 Municipal board of the city of Manila............................ 32 Philippine board of the Panama-Pacific International Exposition.. 33 Bureau of audits............................................ 33 Executive bureau................................................... 33 Bureaus of executive departments......................... 38 Department of the interior............................................ 38 Bureau of health.......................... 38 Mountain Province, Nueva Vizcaya, Palawan, and Mindoro.... 39 Bureau of lands..................................... 40 Bureau of science....................... 42 Bureau of forestry.............................................. 43 Weather bureau4 3.......................... 43 Game laws............................... 44 Department of commerce and police..44................ 44 Philippine constabulary.................................. 44 Bureau of public works......................................... 45 Baguio... 46 Bureau of posts.......................... 47 Bureau of coast and geodetic survey............................ 48 Bureau of labor.............................................. 48 Department of finance and justice............................ 48 Bureau of justice.................................48..... 48 Bureau of custotms........ M.............................. 3248 Bureau of internal revenuea...ci..c.............. 49 Philippine finances............................................ 53 Government aid to business..................................... 55 Insular treasurer.............................................. 55 Department of public instruction................................... 56 Bureau'of agriculture.... 58 Bureau.............................................. 38 Bureau of supply...........5.9........................... 59 Bureau of prisons............................................. 60 Bureau of printing.................. 60 Philippine library........................................... 60 Department of Mindanao and Sulu................................. 60 P Philippine bill......................... 62 U inlited States Army...................................... 62 tUnited States Navg y.....6......................3........... 63 NeButrality. of.-*.......................63 - - - * **............. 63 Coular orps................................................ 63 Report of the retary of the interior (July 1, 1913, to Deceber 31, 1914)............. 65 IDepartm e tipesonnel...................6................ 6.. 5 I IBMorale of he den t.m.....et...6....................... 66 Publichearin and consultation with citizens....f......... 67 Co laitsf citizen................67 e p r etof for the b non-ist ian people......................6.... 68 u.erision................................. 68 IB:e,. a u. of pr sons........................................... 60

Page  IV IV CONTENTS. Report of the secretary of the interior-Continued. Work of the delegate for the non-Christian people-Continued. Spirit of cooperation.......................................... Mountain Province............................................ Personnel.................................................... Peace and order................................................ Constabulary.......................................... Public works and trails................................ Education.......................... Sanitation.............................................. Agricultural and industrial development..................... Apayao........................................... Benguet...................................................... Bontoc....................................................... Ifugao........................................................ Kalinga.................................................... Lepanto and Amburayan.............................. Nueva Vizcaya......................................... Palawan........................................... M indoro.......................................................... Non-Christian inhabitants' fund.................................... Bureau of health..................................................... Personnel......................................... Filipino and American cooperation in the health work............... General health conditions.................. Situation in the provinces............................ Sanitary measures.............................................. Traveling exhibit..................................... Soil pollution..............................................Manila water supply................ Provincial water supply...................................... Sanitary markets................................ Garbage receptacles.......................................... M ilk................................................... M osquito fish................................................ Infant mortality.......................... Midwives.................................................. Specific diseases............................................... Cholera.a t....... C....................................... Leprosy and the Culion leper colony........................... Beriberi.......................................... Malaria...................................................... Typhoid fever.................................... Plague...................................................... Typhus fever............................................. Cancer........................................ Diphtheria.............................................. Pharmacy examinations...........................'............ Philippine General Hospital.........................'. Reorganization.............................. Personnel... —l............................... Pay-patient department............................. Medical attendance for government employees..... Nursing and midwifery................................. Clinical laboratory...........................'........ Professional work of the hospital.................. Dormitory space.......................................... Recommendations...................................... Legislation.......................... Health reorganization act.. —.............. '............... Medical service for government employees............. Government charities............................... Act regulating the profession of medicine.............. Profession of dentistry.................................... Regulation of the profession of nursing..................... Hydrophobia-prevention act..............................

Page  V CONTENTS. V Report of the Secretary of the Interior —Continued. Bureau of health-Continued. Page. Appropriations......................... 93 Legislation passed at the session of 1913 -14, after the department's last annual report...................................... 94 Ordinances, city of Manila...................................... 94 Recommendations................................................. 95 Quarantine service...........-......................................96 Personnel............................................................ 96 Effectiveness...................................:.................. 96 Sanitary conditions in the Orient..-........................ 97 Cholera..-..-..- -------------------—. --- —.. ---................ 97 Garbage from vessels in port.............................. 97 Smallpox vaccinations -..................................... 98 Aid to other services.............................................. 98 Recommendation.. —. --- —-—.. --- —-----—. --- —- ---------—. 98 Bureau of lands..........-....................................... 98 Personnel..-...-.. ----------—........... --- —-........ 98 Receipts of the bureau -........................................... 98 Public lands, their irrigation and their relation to the food supply.... 98 Irrigation........................................................ 99 Land titles and the cadastral survey.........-.......-...... 99 Setl lement of public lands............................... 100 Administration of the friar lands................................... 101 San Lazaro estate - -............................. — —.................... 102 Manila reclamation No. 1.- ---------------- --------.. 103 Foreshore property..-......... -................................ 103 Bureau of science -......................................... 103 Personnel.......-...............-............................. 103 Organization -........-............................. 104 Scope of work...-..-.-.....-......................... - 105 Publications......-.........-.......-................... —.. 105 Photographs -................-................................... 105 Work of the bureau in aid of health and sanitation - -........-.. 105 In aid of agriculture and forestry...-............................. 107 In aid of industries --.....-............-..-........-......-..... 107 In aid of public works......................................... 108 Mining and assay work................-.......................-.. 108 Fisheries........................................................... 108 Philippine museum.............-..........................-...... 109 Power and gas-producer plants.................................. 109 Library-........................................................ 109 Aquarium........................................................ 110 Bureau of forestry -...........-....... 110 Personnel......................................................... 110 Bureau as a revenue-producing investment...... —.......... 111 Measurement in the round.................. -................ 111 Inadeqluacy of bureau funds and personnel.............. 111 Administration.. —.................................................. 112 Commercial development of the forests............................. 112 Communal forests and household uses......-.................... 114 Conservation and caingins —.......-..............-...........- 114 Phenological reports........ —.....-.......-..-.......... ---- ----- 116 Public lands....................................................... 116 Training of Filipino rangers and foresters at the forestry school...... 116 Cooperation............... —..................................... 117 Weather bureau..................-... 117 Publications in aid of agriculture and commerce.................... 117 Typhoons............ —............................................. 117 Seismic department..............................- -.......... --- —-—........ 118 Magnetism....................................................... 118 Astronomy...y................................... 118 Recommendations................................................. 119 Method of obtaining more detailed information.......................... 119

Page  VI CONTENTS. port of the secretary of commerce and police (July 1, 1913, to Dec. 31, 1913). Bureau of constabulary............................................ Pension fund..................................................... Peace conditions by districts....................................... Municipal police................................................ Bureau of public works....................................... Personnel...................................................... Legislation............................................ Cash account.............................. Road work........................ Trunk roads in Luzon............................................. Bridges and culverts............................ Buildings................................. Building work in Manila........................................ W ater supply............................................... Irrigation, river control, and water projects....................... Naguilian road............................................. Benguet road and automobile line.......................... Baguio............................................ Miscellaneous..................................................... Bureau of navigation........................................ Personnel......................................................... Navigation division............................................... Marine railways and repair shops.............................. Interisland transportation......................................... Port work and lighthouse-construction division....................... Lighthouse maintenance division.................................... Bureau of posts...................................................... Postal division........................................ Second-class publications.......................................... Telegraph diision................................................ Postal savings bank division........................ Revenues exclusive of the postal savings bank....................... Comparative statement of expenditures for fiscal year 1913 and six months ending Dec. 31, 1913.................................... Summary of accounts, bureau of posts, for the six months ending Dec. 31, 1913................................................ Bureau of coast and geodetic survey............................ Personnel........................................................ Tidal observations............................................... Table of distances................................................ Geographic names................................................. Fishing boundaries................................. Compilation of gazetteer of Philippine geographic names............ W ork of vessels................................................... Bureau of labor............................................ Force and organization...................................... Free employment agencies......................................... Labor accidents................................................... Claim s.......................................................... Strikes...................................... Office of the supervising railway expert................................. Changes in peiomnnel............................................. Legislative or administrative acts affecting railroads.................. Manila Railroad Co........................................... Tarlac Railway Co....................... Construction and operation of railroad lines........................ Manila Railroad Co.......................................... Accidents................................................ Philippine Railway Co..................................... Daet Tramway Co. Daet ramway Cot...................................... Manila Electric Railroad & Light Co., and Manila Suburban Railways Co............................................... Manila SuburLan Railway Co...............................

Page  VII CONTENTS. VII Report of the secretary of commerce and police-Continued. Page. Office of the consulting architect....................................... 172 Work performed............................................. 172 Personnel....................................................... 173 Corporations........................................................ 173 Irrigation council.................................................... 174 Report of the secretary of commerce and police (fiscal year ending Dec. 31, 1914). 175 Bureau of consta1 ulary................................................ 175 Peace and order.................................................. 178 Consta1 ulary activities................................... 179 Health conditions...-........ —.........-.. - —..... 180 Consta1' ulary academy............................................ 180 Municipal police.................................................. 180 Recommendations.............................................. 181 Bureau of pu' lic works............................................. 181 Changes in personnel........................................... 182 Organization diagram.................................... 183 General.......................................................... 184 Filipinization..................................................... 185 Summary of work for the year................. 185 M otor vehicles.................................................. 186 Water supply.................................................... 186 Municipal water supply.................................. 187 Water supply in the department of Mindanao and Sulu......... 187 Roads.................................. 187 Maintenance of roads and trails, department of Mindanao and Sulu. 188 Bridges................................................. 189 Department of Mindanao and Sulu........................ 189 Financial statement..................................... 190 Building work............................... 191 Building work in the department of Mindanao and Sulu....... 192 Naguilian and Benguet roads.................................192 Bureau of posts....................................................... 195 Postal division................................................... 196 Money-order division........................................... 198 Telegraph division............................................... 199 Postal savings bank division........................... 200 Revenues, exclusive of the postal savings bank....................... 202 Comparative statement of expenditures for six months ended DecemI er 31, 1913, calendar year 1913, and fiscal year 1914............. 203 Summary of accounts,. ureau of posts, for the fiscal year ended Decem[er 31, 1914.................................................... 204 Bureau of coast and geodetic survey.................................... 205 Changes in personnel................................ 205 Statement of accounts........................................ 206 Work accomplished I y the different ships during the new fiscal year 1914.......................................................... 207 Bureau of lal or....................................................... 208 Changes in personnel............................................ 208 Free employment agencies....................................... 209 Expenditures.................................................... 210 Complaints and claims............................................ 210 La or accidents.................................................. 211 Strikes........................................................... 211 Effect of the European war.............................. 212 Corporations...................................................... 212 Irrigation council................................................ 212 Report of the secretary of finance and justice (six months ending Dec. 31,1913). 213 Judiciary............................................................. 213 Supreme court.................................. 213 Court of first instance of Manila..................................... 214 Courts of first instance in the Provinces.............................. 214 Court of land registration....................................... 215 Justice of the peace courts........................................ 217 Bureau of justice........................................ 217 Personnel..................................................... 217

Page  VIII VtII CONTENTS. Report of the secretary of finance and justice-Continued. Page. Bureau of the treasury................................................ 218 Financial statement............................................... 218 Fidelity bond premium fund...................................... 220 Banks and banking............................................. 221 Bond issues....................................................... 222 Gold-standard fund................................................ 222 Circulation........................................................ 223 The earthquake fund of 1863................................... 223 Bureau of custom s..................................................... 224 Change in personnel-............2................................. 224 General trade conditions.......................................... 224 Imports.................................................. 225 Exports........................................................ 225 Customs collections............2........................ 227 Foreign carrying trade................................. 227 Consular duties-.................................................. 228 Coastwise shipping............................................... 228 Immigration and emigration................................. 228 Arrastre and piers............................................ 228 Personnel....................................... 229 Expense of conducting the bureau................................ 229 Bureau of internal revenue......................................229 Collections..................................................... 229 Cost of collection.................................................. 230 Distilled spirits, wines, and liquors.................................. 231 Tobacco products and matches..................................... 231 License taxes...................................................... 233 Banks and bankers................................................ 233 Cedulas personales................................................. 234 Franchise taxes.................................................. 234 San Lazaro estate rentals............................................ 234 Opium............................................................ 234 Report of the secretary of finance and justice (fiscal year ending Dec. 31, 1914). 235 Judiciary......................................235 Supreme court..................................................... 235 Court of first instance of Manila................................... 236 Courts of first instance in the Provinces................ 237 Court of land registration and general land registration office.......... 237 Justice of the peace courts..................................238 Bureau of justce..................................238 Adminsitration of estates..............................239 Bureau of the treasury........................ 240 Financial statement............40 Fidelity bond premium fund............................242 Banks and banking........................................243 Bond issues-........-........... — ------ ----------- 245 Gold-standard fund....................245 Circulation.........................-........ 246 Expense of conducting the bureau.......................246 Bureau of customs....................................246 General trade conditions..............................246 Imports..................... ------------ -- -—.................................... 24 Imports-247 Exports.......................................................... 24 Exports-~~I~,,~,,,....,,,..,______l__~____l__~_ 247 Customs col.ections......................-24 -Consular -du —tie —s --- —-------------- 248 Conxsular duties........................ Foreign carrying trade.................................... 249 Coastwise shipping............................................ 249 Immigration and emigration.......-.......................... 250 Divisions transferred to the bureau of customs from the former bureau of navigation................................250 Bureau of internal revenue.....'....2................ 250 Changen personnel.................................. 252 Change in personnel........252 Collections..................... Apportionment of internal-revenue taxes..........- 253 Cost of collection......................... Alcohol products.....-2.................................53................[. 253

Page  IX CONTENTS. IX Report of the secretary of finance and justice-Continued. Bureau of internal revenue-Continued. Page. Tobacco products and matches..................................... 254 License taxes-.................................................. 255 Banks and bankers............................................... 256 Insurance companies................................... 256 Franchise taxes.................................................. 256 Income tax.............................. -............256 Opium............................................... 257 Legislation................................................ 257 General business conditions...................................... 258 Report of the secretary of public instruction (six months ending December 31, 1913)................................................................ 261 Bureau of education.................................................. 261 Finances....................................... 263 Teaching force.................................................... 263 Desire for education....................................... 264 Industrial instruction.............................................. 265 Construction of school buildings and acquisition of school sites...... 265 Insular schools..................................................... 265 Educational work among the non-Christian people................... 266 Private schools..................................................... 266 Bureau of agriculture.............................................. 267 Division of animal husbandry....................................... 267 Veterinary division............................................. 268 Division of agronomy......................................... 269 Division of horticulture............................................. 269 Locust extermination............................................... 269 Fiber division...................................................... 269 Demonstration and extension division.............................. 271 Bureau of supply...................................................... 272 Bureau of prisons....................................................... 273 Bilibid prison........................................................ 274 M aintenance................................................... 274 Industrial division................................................ 274 Religious services.................................................. 274 Provincial prisons.................................... 275 School work....................................................... 275 Improvements..................................................... 275 H ealth........................................................... 275 Iwahig penal colony................................................ 275 Bureau of printing..................................................... 276 Report of the secretary of public instruction (fiscal year ending December 31, 1914)................................................................. 277 General statement...................................................... 277 Bureau of education................................................... 279 General statement.................................................. 279 Changes in the directorate...................................... 280 Educational progress since the American occupation.................. 280 Aims and purposes of the bureau of education................ 280 Financial support of public-school work-........................ 281 Insular....................................................... 281 Provincial.................................................... 282 Municipal.............................................. 283 Organization of the bureau of education....................... 283 American teacher.......................................... 284 Filipino teacher.............................................. 284 Conventions, assemblies, and institutes....................... 285 Textbooks and publications........................................ 286 Insular schools.................................................... 286 School work among the non-Christians........................ 286 General statement........................................ 286 In non-Christian province-.............................. 287 In Christian provinces................................... 287 Department of Mindanao and Sulu..........2................. 288 Dormitories....................................................... 288 Courses of study.........................-................... 289

Page  X CONTENTS. Report of the secretary of public instruction-Continued. Bureau of education-Continued. Academic instruction...............-......... —......... --- —---- A thletics.................................................... Industrial instruction.............................................. Buildings, sites, and grounds............... —...... —. — -- ------ Schools as a civil factor...........-..................-.... --- —-- Extent of English speech in the Philippines.................... Health of the school children............................... ---- Cooperation with governmental and other agencies................... What sufficient money would mean to the Philippine school system.. Bureau of agriculture........................................ --- —- -- Crop conditions................................................. Rice-................... --- -----------------.. -------- --- Corn.......................................................... Sugar................................... Coconuts..................................... A- aca........................... ---. --- —------------- To- acco...................................................... Personnel...................... ---.... —...... ---..... --------- Food-production campaign.............................-........ Cooperative agricultural societies..........-................ American agricultural colony................................. Philippine agricultural exhiLit at the Panama-Pacific International Exposition......................... ---...-...-.............. Division of animal hus, andry................................ Puf lic live-stock' reeding....................... -.. —... Veterinary division....................................... Rinderpest..................... Immunization against rinderpest by simultaneous inoculation.... Division of agronomy.............................................. Division of horticulture........................................... Fi' er division.................................. Demonstration and extension division.............................. Division of pu' lications.................................. Bureau of supply............................................ Division of cold storage.......................................... Bureau of prisons................................................... Personnel................................................. Prison population and the status of crime........1.......... Bili id prison.......................................... Numn er of prisoners.............................................. Maintenance............................................. Industrial division............................................ School............................................................ Improvements and repairs....................................... Health and sanitation....................................... Provincial prisons................................................ Iwahig penal colony....................................... Bureau of printing................................................... University of the Philippines......................................... Personnel....................................................... Attendance and graduates....................................... Financial statement................................. College of liberal arts............................................ College of agriculture.......................................... College of medicine and surgery.................................. College of law.................................................... College of veterinary science...................................... College of engineering........................................ School of fine arts................................. Physical education..................................... Private schools.................................... Philippine library............................................... Personnel...................................... Financial statement.............................. Page. 289 290 290 292 292 292 293 293 293 294 294 294 294 294 295 295 295 296 296 296 296 297 297 297 298 298 298 299 300 300 301 301 302 305 305 305 305 306 306 306 307 307 307 308 308 308 309 310 310 310 311 311 311 311 312 312 312 312 312 312 314 314 314 a J I

Page  XI CONTENTS. XI Report of the secretary of public instructioni-Continued. Page. Public-welfare board................................. 317 Sales agency........................................-.............. 318 Summary of statistics for the fifteenth annual report of the director of education............................................................... 318 Department of Mindanao and Sulu........................................ 325 Area............................................. 326 Population............................................................326 egilation.......... 327 Policy of government.-...........-................................... 332 Organization..................................... 333 Finance...................................................... 334 Public order................................................ 338 Justice............................................................... 342 Public health........................................................ 344 Potable water supply........................................ 347 Public instruction................................................... 349 Private schools................................................... 353 Prisons -...,,,,,,,,,,,,,,,,,,, 355 Prisons............................................................... 355 Disciplinary control............................................... 355 Finance......................................................... 357 Public works......................................................... 358 Agriculture.......................................................... 360 Forests.............................................................. 364 Mineral products..................................................... 368 Marine products............................................ 368 Public rands......................................................... 370 Agricultural colonies................................................. 373 Commerce and shipping............................................... 381 M anufactures......................................................... 384 Banks and credits -8.......................................... 385 Missions and other private philanthropies..................... 387 Political conditions............................................... 393 Inspections........................................................... 396 Personnel of the department government............................... 397 Christian, Mohammedan, and pagan relations........................... 398 Recommendations.................................................... 401

Page  XII -_-~~__~I I —::: -::::::::-:~:-...,.~.; _;.I;. i:;~;: ~a -..i. I;; 3i..-i. —

Page  1 REPORT OF THE PHILIPPINE COMMISSION.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 8329 ---15.....

Page  2 ~~ " —

Page  3 ANNUAL REPORT OF THE PHILIPPINE COMMISSION TO THE SECRETARY OF WAR. JULY 1, 1913, TO DECEMBER 31, 1914. MANILA, July 23, 1915. SIR: The Philippine Commission has the honor to submit its fifteenth annual report, covering the fiscal year 1914 (the period from July 1 to December 31, 1913), and the new fiscal year 1914 (the period from January 1 to December 31, 1914). On December 19, 1913, the Legislature enacted Act No. 2305, making the fiscal year uniform for all branches of the government and coincident with the calendar year. Formerly the fiscal year for the insular government ended on June 30 of each calendar year. Attention is called to the fact that the part of this report which refers to legislation also embraces part of the fiscal year 1915, for the reason that the Legislature was in session on December 31, 1914, and did not adjourn until February 5, 1915; consequently data with respect to the work of the Legislature, to be of any value, must cover the entire period of session. If that part of this report which refers to legislative matters were closed as of December 31, 1914, it would show no more than the status of bills on that date, which, in many cases, would be changed on the following legislative day. LEGISLATION. EXCLUSIVE LEGISLATIVE JURISDICTION OF THE COMMISSION. Acting within its exclusive legislative jurisdiction over all that part of the Philippine Islands inhabited by Moros or other nonChristian tribes, the Commission enacted during the period covered by this report 48 acts, of which the following are perhaps the most important: No. 2280. An act appropriating the sum of 50,000 for the establishment, in that part of the Philippine Islands inhabited by Moros or other non-Christian tribes, of colonies and plantations for the cultivation of rice and other food cereals, for the better distribution of the population, and for other purposes. No. 2287. An act prohibiting the sale of intoxicating liquors, with certain exceptions, in the Mountain Province, Nueva Vizcaya and Agusan, except in certain districts. No. 239. An act changing the name of the Moro Province to the department of Mindanao and Sulu, placing the province of Agusan under the urisdiction and control of the governor of the said department, and for other purposes. No. An act making extensive to the department of Mindanao and Sulu the povisos of the provincial government act and othe acts relative to the cedla tax and increased cedula tax, under certain conditions, and repealin coduik U n creA sed cedula ta aling~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.1:::

Page  4 4 REPOBT OF THE PHILIPPINE COMMISSION. act No. 306 of the Legislative Council of said department and all other acts inconsistent herewith. No. 2399. An act extending the provisions of Act 2300 to the territory inhabited by Moros or other non-Christian tribes and penalizing the taking away of any uncivilized person or member of any non-Christian tribe for the purpose of exploiting or exhibiting such person as a spectacle, and for other purposes. No. 2402. An act making applicable to that part of the Philippine Islands inbabit(ti by Moros or other non-Christain tribes Acts Nos. 2339 and 2347 of the Philippine Legislature. No. 2403. An act making applicable to that part of the Philippine Islands inhalited by Moros or other non-Christian tribes certain acts of the Philippine Legislature. No. 2404. An act to aid in the harmonizing of the non-Christian and the Christian inhabitants of the Philippine Islands, creating the position of delegate of the secretary of the interior for the non-Christian people and making appropriation therefor. No. 2400. An act appropriating f35,000 to aid the non-Christian people of the Mountain Province and to promote their union with the Christian people of the Philipp)ines. No. 2408. An act providing a temporary form of government for the territory known as the department of Mindanao and Sulu, making applicable thereto, with certain exceptions, the provisions of general laws now in force in the Philippine Islands, and for other purposes. No. 2409. An anet extending to the department of Mindanao and Sulu the provisions of general laws providing for the organization, jurisdiction, procedure, and fees of justice of the peace courts, with certain exceptions, and for other purposes. No. 2417. An act making applicable to the department of Mindanno and Sulu all laws reIating to the bureau of agriculture now in force in provinces and municipnlities organized under Acts Nos. 83 and 82, and their amendments, aud for other purposes. No. 2418. An act extending to the Mountain Province the provisions of general laws providing for the organization, jurisdiction, procedure, and fees of jnustice of the peace courts, with certain exceptions, and for other purposes. No. 2429. An act providing a procedure for the first election of third members of provincial boards in the various provinces of the department of Mindanao and Sulu. and authorizing the governor of the department to fix the date for the holding of the first municipal elections therein, and for other purposes. No. 2441. An act providing that the property tax in the province of Nueva Vizcnya shall be assessed against real property only and that the rate of levy phall be increased from one-half to seven-eighths of 1 per cent, and for other purposes. No. 2513. An act making appropriations for) the maintenance of a hospital ship for use in the department of Mindanao and Sulu, and for other purposes. AS A CIHAMBER OF TIHE'PHILIPPINE LEGISLATURE. During the period covered by this report, there were held two regllar sessions and one special session of the Third Philippine I gislature; namely, the second session, which convened at Manila on October 16. 1913, and adjourned on February 3, 1914; the special sessi(n of 1914, which convened at Manila on February 6, 1914, pllrsuaint to proclamation by the Governor General, and adjourned on Fel 'rularv 28, 1914; and the third sessions, which convened at Manila on October 16, 1914, and adjourned on February 5, 1915. )lring these three sessions there were introduced in the Commission, as a chamber of the Legislature, 174 bills, o which 108 were passed by the Commission and sent to the Assembly for concurrence, of which 83 were enacted. One of the first resolutions adopted by the new Philippine Commission was that providing that all of its sessions except those necessarily executive should be open to the piblic and to the press. The Commission received from th(

Page  5 REPORT OF THE PHILIPPINE COMMISSION. 5 Assembly for ccncurrence 290 bills, which had been passed by the Assembly, of which 106 were enacted. The total number of bills enacted by the Legislature during this period is 189. Of these acts the following are perhaps the most important: No. 2288. An act appropriating the sum of ~175,000 Philippine currency for public schools. No. 2300. An act confirming existing legislation prohibiting slavery, involuntary servitude, and peonage in the Philippine Islands, subject to modifications as provided in sections 268, 269, 270, and 271 of the act of the Congress of the United States approved March 4. 1909, entitled "An act to codify, revise, and amend the penal laws of the United States," and adopting measures for preventing violations of said laws. No. 2305. An act to make the fiscal year uniform for all branches of the government and coincident with the calendar year, and to fix the time for making annual reports for officers of the different branches of the government, and for other purposes. No. 2307. An act creating a board of public utility commissioners and prescribing its duties and powers, and for other purposes. No. 2308. An act abolishing the bureau of navigation and transferring to other bureaus certain property, equipment, functions, and duties hitherto appertaining thereto; providing for the sale of certain property, authorizing the sale or lense of the marine railway and repair shop, and repealing certain provisions of law relating to the bureau of navigation. No. 2333. An act relative to untrue, deceptive, and misleading advertisements. No. 2339. An act revising and consolidating the laws relative to internal revenue. No. 2342. An act regulating the labeling, sale, and advertising of patent and proprietary medicines, fraudulent therapeutic appliances and devices, and for the protection of the people of the Philippine Islands against the exploitation of such articles. No. 2347. An act to provide for the reorganization of the courts of first instance and of the court of land registration. No. 2352. An act providing for the taking of a census of the Philippine Islands, making an appropriation therefor, and for other purposes. No. 2360. An act providing for the sale of the land known as the San Lazaro Estate, in the city of Manila. No. 2380. An act providing for the inspection, grading, and baling of abaca (Manila hemp), maguey (cantala), sisal, and other fibers. No. 2427. An act revising the insurance laws and regulating insurance business in the Philippine Islands. No. 2432. An act amending Act No. 2339, the internal-revenue law of 1914, by imposing increased and additional taxes, and for other purposes. No. 2436. An act creating the fidelity fund and repealing Act No. 1739, as amended. No. 2451. An act amending paragraph 8 of section 12 of Act No. 1148, by providing that all timber cut in public forests shall be measured in the round, and specifically authorizing a reasonable deduction for certain natural defects, except as herein otherwise provided. No. 2462. An act providing new regulations for the examination of dentists and the practice of dentistry in the Philippine Islands, and for other purposes. No. 2465. An act to amend Act No. 2083, as amended, entitled "An act to fix the amount of the gold-standard fund, created under Act No. 938, authorizing the deposit of the excess of the amount so fixed to the credit of the general fund of the treasury and authorizing the investment of a portion of the said goldstandard fund " so as to authorize additional investment. No. 2468. An act reorganizing the Philippine health service, and for other purposes. No. 2473. An act to facilitate to laborers the exercise of their rights in all cases falling under the provisions of Act No. 1874. No. 2479. An act creating a central sugar board for the purpose of promoting and assisting in the establishment of sugar centrals in the Philippine Islands, providing for the repayment of the funds advanced by the government in connection with sugar centrals, and for other purposes. No. 2486. An act fixing a tax upon every person or entity engaged in recruiting or contracting laborers in the Philippines, and amending subsection (a) of section 53 of Act No. 2339.

Page  6 6 REPORT OF THE PHILIPPINE COMMISSION. No. 2490. An act to create a board of dental hygiene for the purpose of establishing and maintaining free dental clinics for children matriculated in public and private schools of primary instruction in the Philippine Islands, and for other purposes. No. 2493. An act to amend Act No. 310, regulating the practice in the Philippine Islands of medicine and surgery in all their branches, to repeal section 1 of Act No. 1632 and Act No. 1651, and to provide for the examination and registration of nurses in the Philippine Islands. No. 2507. An act providing for a board of marine examiners, for the examination and licensing of watch officers and engineers on Philippine vessels in the coastwise trade and for the high seas, license, fees, compensation, and penalties in certain cases, and repealing certain acts relating thereto. No. 2.)8. An act regulating the creation and operation of "Rural Agricultural Cooperative Associations," and for other purposes. No. 2510. An act for the purpose of establishing a public-welfare board for the Philippine Islands, and defining its powers, functions, and duties. BILLS FAILING OF PASSAGE. Several bills relating to matters of moment were considered by the Legislatulre during the period of this report, but failed of passage. Of these the following are perhaps the most important: ORIGINATED IN THE COMMISSION. ". B. 119. An act providing for the retirement of superannuated and disabled oti:cers and enlisted men of the Philippine Constabulary, amending Act No. 1638. C. B. 129. An act to regulate the sale of polished rice and imposing a license tax on dealers in polished rice in the Philippine Islands. C'.. 157. An act relating to local improvements in the city of Manila, and providing for the levying of special assessments therefor. C. B. 168. An act to regulate radio communication. (C. B. 225. All act amending Act No. 2098 entitled "An act relating to contracts of personal service and advances thereunder, and providing punishment for certain offences connected therewith," by providing that any person charged withll the violation of said act shall be entitled to a trial by jury. ORIGINATED IN THE ASSEMBLY. A. F. 461. An act providing for the reimbursement of traveling and subsistecea expenses to witnesses in criminal actions. A. B. 478. An act providing for the adoption of military instruction in the public schools andf in the University of the Philippine Islands. A. I..8. A\n act establishing provisions to favor the diffusion and extension of agricultural instruction and demonstrations in the provinces, subprovinces, and municipalities of the Philippine Islands. A. R. 619. An act regarding public auctions. A. B. 661. An nct to provide for the acquisition and installation, under certain.mditions, of machines or apparatus for drying copra, and to appropriate n~r sid ]mnpose the sum of t50,00 out of any funds in the insular treasury not otherwise appropriated. A. 1. (;i;7. An act providing for the creation in Manila of a military academy. A. BI. GW;. An act to reorganize the provincial boards in the provinces governed by and ornized under Act No. 83, a amend th esed. A. B. 745. An act reorganizing the bureau of agriculture in these Islands. The act paed bv the Commission and the Legislature during the period covered by this report are numbered 2280 to 2516, inclusive. Certtifid P)tinted copies of these acts have already been furnished. It is noteworthy that both houses reached an agreement on the a)propriation bills for the fiscal years 1914 and 1915, these acts being ~ os. 231 n 2431, respectively. Act No. 2319 was enacted on Januar3 31, 1914, and was the first^ ppropriation act passed by the Legisla ture since Act No. 1989. which was enacted on April 19, 1910. men^ a enctd on April 19, 1910.

Page  7 REPORT OF THE PHILIPPINE COMMISSION. 7 Of the acts passed by the Philippine Commission in its exclusive legislative jurisdiction a brief word of explanation will be sufficient. Acts numbered 2396, 2399, 2402, 2403, 2417, and 2418 were passed by the Philippine Commission in accordance with the established practice of making applicable to the department of Mindanao and Sulu and the so-called non-Christian provinces acts of the Philippine Legislature, passed by both the Philippine Commission and the Philippine Assembly for the benefit of the regular provinces, acts which are considered by the Commission as being also desirable for the special governments or non-Christian provinces. Act No. 2280 appropriated the sum of P50,000 for the purpose of establishing colonies of Christian peoples in the Moro Province, now the department of Mindanao and Sulu, for the purpose of cultivating rice and other food cereals. There are immense tracts of land in Mindanao which are exceedingly rich agriculturally and to which it is the policy of the government to transfer Filipinos from the overcrowded provinces for the purpose of colonization. This plan has also the benefit of bringing into closer relation and better understanding the Filipinos and their Mohammedan neighbors of the south. The plan, which was inaugurated before the advent of the present administration, has entirely justified itself, and additional colonies have been established, notably, the American colony at Momungan, Mindanao. Act No. 2287, regulating the sale of intoxicating liquors in certain districts of the Mountain Province, Nueva Vizcaya and Agusan, is for the benefit and protection of the non-Christian inhabitants of those provinces. Act No. 2309 was enacted, as indicated by its title, for the purpose of changing the name of the former Moro Province to the department of Mindanao and Sulu, in pursuance of the plan more quickly to develop the Mohammedan and pagan inhabitants of the Moro Province and of the province of Agusan in the matter of self-government. By a later act, No. 2408, providing for a temporary form of government for the territory known as the department of Mindanao and Sulu, this plan was still further carried out by dividing the department of Mindanao and Sulu into provinces and making provision for autonomous municipal governments. The purpose of acts numbered 2404 and 2406 is apparent from their titles as is also the purpose of Act No. 2409. Act No. 2429 provides machinery for carrying into effect the plans of the Philippine Commission with relation to the department of Mindanao and Sulu already referred to. Act No. 2513 was passed for the purpose of providing a hospital ship for use in the department of Mindanao and Sulu. Owing to the immense area of the department and the great distances to be covered, the hospital ship, carrying physicians and nurses to give aid to the Mohammedan and pagan residents, will be of incalculable benefit. It might here be said that physicians are being supplied the various provinces of the department of Mindanao and Sulu as rapidly as funds permit. The purpose of the acts originating or passed by the Philippine Commission as a chamber of the Philippine Legislature are set forth above quite fully in their titles.

Page  8 8 REPORT OF THE PHILIPPINE COMMISSION. Act No. 2305 was necessary for the reason that although the municipal and the provincial fiscal years coincided with the calendar year, the insular fiscal year since the organization of the Philippine government extended from July 1 to June 30. The advantage of having all the fiscal years the same is apparent. Act No. 2307, creating the board of public utility commissioners, is based on the New Jersey public utility law, and the operation of the board of public utility commissioners has had an excellent effect in the Philippine Islands. Act No. 2308, abolishing the former bureau of navigation, was passed because of the fact that it was no longer necessary to have a separate bureau for the purpose of performing the functions embraced in the bureau of navigation and as well for the reason that expense of administration of that bureau had for several years been increasing disproportionately for the service rendered. The wisdom of passing this act is shown by the considerable saving effected, with continued and increasing efficiency. Acts numbered 2333 and 2342 were both passed primarily for the purpose of regulating the sale of proprietary medicines and fradulent therapeutic appliances and devices in the Philippine Islands, as is shown by their titles. Act No. 2339 brought into effect the codified laws relative to internal revenue which were prepared by the code committee. By this act the internal-revenue laws to the date of its passage are made easily available, not only for the officials administering the act but as well to merchants and others affected thereby. Act No. 2347 was passed for the purpose of readjusting some of the judicial districts of the Philippine Islands, a number of which were too large to be handled by one judge, and for the further purpose of proviuding additional judges, known as auxiliary judges, to care for the increal.sing public business in the courts in some provinces. An act similar to this had been advocated by the preceding administration and its effect has been excellent. All judges in the service at the time of the passage of this act were reappointed. Act No. 2352, providing for the taking of a census of the Philippine Islands, made an appropriation of n25,000 for preliminary work in this connection. The last previous census was taken in 1903 and is a dmittedly inaccurate, owing to the unusual conditions prevailing at the time of its taking. Inasmuch as not only the apportionment of legislative districts is dependent in the Philippine Islands upon poletlation, but the distribution of internal-revenue tax is also dependent thereon, the importance of such a new census is apparent. Act No. 2380, providing for the inspection, grading, and baling of Manila hemp and other fibers, is of great importance. Manila hemp was gradually losing its long-established place in the fiber world, owing to the unequal grading of the different export houses in the Philipines. By the present act the government establishes the grades and is responsible for the proper marking of the bales. For the services rendered a small charge is made, not sufficient in any way to inc, ese the price of the hemp, but sufficient to cover the expense to which the government is put. Act No. 2407 brings into effect in the Philippine Islands the provisions of law covering insurance business which have been found necessary and advisable throughout the United States.

Page  9 REPORT OF THE PHILIPPINE COMMISSION. 9 Act No. 2432, amending the internal-revenue law and imposing increased and additional taxes, was primarily for the purpose of securing to the insular government additional revenue required, owing to the falling off of customs receipts due to the disturbances caused by the European war. This act was later approved by an act of the Congress of the United States, which recognized the necessity to the Philippine government of the additional revenues. Act No. 2451, amending Act No. 1118 by providing that all timber cut in public forests shall be measured in the round and specifically authorizing a reasonable deduction for certain natural defects, was enacted for the purpose of increasing the forest revenue receipts and will take effect July 28, 1915. Act No. 2468 reorganizes the health service and creates a council of hygiene, whose duties are of an advisory character. Act No. 2479, creating a central sugar board, is for the purpose of promoting and aiding the establishment of sugar centrals and the necessary machinery and equipment throughout the Philippine Islands by means of governmental aid. By this act the sum of not to exceed 12,000,000 is made available for investment by the insular treasurer with the approval of the Governor General for the purposes indicated. The result of this act will be extremely beneficial, inasmuch as there are at present nowhere near the necessary number of centrals for the manufacture of the output of the sugar of the Philippines. As a result, the sugar crop of the Philippines is low grade and is sold at a minimum price after the crops from other parts of the world are disposed of. Act No. 2486 is for the purpose of regulating the emigration of laborers from the Philippines by labor-recruiting bureaus. Act No. 2508 not only regulates the creation and operation of rural agricultural cooperative associations but as well provides methods and means for their organization and continuation and for the supervision of their actions. Act No. 2510 was passed for the purpose of creating a board to coordinate so far ads possible the acts of all government agencies and influences interested in public-welfare and social-service work and such private agencies and organizations as receive governmental support for social work, and to secure so far as possible the wise expenditure of all government funds appropriated to charitable and public-welfare purposes. The purpose of the board created by the act is also to promote the organization of private institutions for charitable purposes and to investigate social conditions in the Philippine Islands with a view to relief where necessary. The condition of trade, commerce, business, statistics, and finances are discussed thoroughly in the reports of the Governor General and of the several secretaries of departments which accompany this report and are not therefore included here. RECOMMENDATIONS. It is not believed necessary to make any recommendations for legislation by Congress in view of the fact that the so-called " Jones bill" will probably receive further consideration in the next session of the Congress of the United States.

Page  10 10 REPORT OF THE PHILIPPINE COMMISSION. The Philippine Commission urgently recommends the passage of this proposed act, which provides for the extension of the autonomy of the Filipino people by granting to them greater participation in their government. It is urged that at the coming session of Congress the Jones bill or a similar act, as it passed the House of Representatives and as favorably reported by the Senate Committee on the Philippines, be enacted. In the opinion of the Philippine Commission, modification of the bill, if any is made, should be in the way of making its provisions even more liberal. We consider it particularly important that the preamble of the bill substantially as it was passed by the House of Representatives be enacted. We consider such a definite statement of intention necessary in order that a better understanding may be established between both peoples and that stability of business may be established and assured. The gratitude of the Filipino people for the passage of the Philippine bill through the House of Representatives is set forth in the resolution of both houses of the Philippine Legislature in joint session October 16, 1914. The personnel of the Philippine Commission on December 31, 1914, was as follows, and no change has been made in the Commission up to the date of this report: Francis Burton Harrison, Governor General, ex officio President. Henderson S. Martin, Vice Governor (ex officio Acting President during absence of President) and secretary of public instruction. Rafael Palma. Victorino Mapa, secretary of finance and justice. Jaime C. de Veyra. Vicente Ilustre. Vicente Singson Encarnacion. Clinton L. Riggs, secretary of commerce and police. Winfred T. Denison, secretary of the interior. At the date of the adoption of the report Clinton L. Riggs, secretary of commerce and police, is on leave of absence in the United States owing to ill health, and Winfred T. Denison, secretary of the interior, is absent on an inspection trip in the Province of Mindoro. Very respectfully, FRANCIS BURTON HARRISON. HENDERSON S. MARTIN. RAFAEL PALMA. VICTORINO MAPA, V. ILUSTRE. JAIME C. DE VEYRA. V. SINGSON ENCARNACION. To the honorable the SECRETARY OF WAR, Washington, D. C.

Page  11 REPORT OF THE GOVERNOR GENERAL. JULY 1, 1913, TO DECEMBER 31. 1914. MANILA, June 20, 1915. GENTLEMEN: I have the honor to present to the Philippine Commission the following report of the Governor General for the semifiscal year 1914 (July 1 to Dec. 31, 1913) and for the calendar year 1914. Following the inauguration of Woodrow Wilson as President of the United States and the selection of Lindley M. Garrison as Secretary of War an almost complete change was made in the membership of the Philippine Commission, Commissioner Rafael Palma being the only member of the former Philippine Commission to remain in office. The present Philippine Commission is composed as follows: Francis Burton Harrison, of New York, appointed Governor General and President of the Commission September 2, 1913 (arrived in the Philippines Oct. 6, 1913). Henderson S. Martin, of Kansas, appointed Vice Governor, secretary of public instruction, and member of the Philippine Commission December 1, 1913 (arrived in the Philippines Jan. 26, 1914). Rafael Palma, of Cavite, appointed member of the Philippine Commisison on July 6, 1908. Victorino Mapa, of Capiz, appointed secretary of finance and justice and member of the Philippine Commission October 30, 1913. Jaime C. de Veyra, of Leyte, appointed member of the Philippine Commission October 30, 1913. Vicente Ilustre, of Batangas, appointed member of the Philippine Commisison October 30, 1913. Vicente Singson Encarnacion, of Ilocos Sur, appointed member of the Philippine Commission on October 30, 1913. Clinton L. Riggs, of Maryland, appointed secretary of commerce and police and member of the Philippine Commission December 1, 1913 (arrived in the Philippines Feb. 23, 1914). Winfred T. Denison, of New York, appointed secretary of the interior and member of the Philippine Commission January 27, 1914 (arrived in the Philippine Islands Mar. 2, 1914). Thus, in pursuance of his theretofore announced policy, President Wilson nominated and the Senate confirmed a majority of Filipinos upon the Commission. Since the membership of the lower house, the Philippine Assembly, was already composed entirely of elected Filipinos, this placed the majority vote of the Philippine Legislature in the hands of the Filipino people. To anyone familiar with recent legislative history in the Philippines such a course was not only just and merited, but wise. No appropriation bill had been passed for the three fiscal years 1911, 1912, and 1913, owing to the failure of the two houses of the Legislature to agree upon an appropriation for the current expenses of the government. For these three years disbursements were made by the Governor General, act11

Page  12 12 REPORT OF THE PHILIPPINE COMMISSION. ing under the provision of law which authorizes him, whenever the Legislature fails to pass the supply bill, to advise the treasurer to disburse the same amounts appropriated in the last annual appropriation bill. For these three years the appropriation bill which formed a basis for the disbursements made by the advice of the Governor General was that enacted in Baguio at the session of the Philippine Legislature held there in 1910. The provision of the law above mentioned was construed by the then administration to permit the Governor General in his discretion to direct the treasurer of the Philippine Islands to vary the items and amounts of the " last annual appropriation bill," and thus the Governor General exercised the most important function of the Legislature by edict or "letter of advice." It had been the contention of the Philippine Assembly and certain of the officers of the executive branch if the government that the provision of law above referred to restricted the Governor General to an allotment of funds to each of the bureaus and offices of the government, not in excess of the amounts last appropriated for such bureaus and offices by acts of the Legislature. The administration. however, held that the Governor General was only restricted in his letter of advice to allot a total not in excess of the total amount last appropriated for all the bureaus and branches of the government, and that in his discretion the Governor General could, as was done, allot a lesser sum to one office and a greater amount to another. Tlli app)ointlnent of a Filipino majority on the Commission at once brought together the two houses of the Legislature and broke tlle deadlock which had existed. Several of the points at issue in inlmediately preceding years were speedily adjusted by the lower and upper houses. One of the most notable of these points of disagreement had been the insistence of the Assembly upon the right of the Legislature to exercise more complete control over the expenditures of the government, particularly with reference to the socalled reimbursable funds. Those bureaus of the government which were income-produlcing had been permitted to expend, in the discretion of the executive officers, the funds thus accruing. One result of this was great and increasing extravagance; another was a tendency of bureaus wllinch received income from other departments of the government to charge as nmuch as possible, in order to make a favortllle showing and increase the amounts they could expend. The Assembly had in vain insisted that these abuses should be corrected. This was not done lntil January. 1914, when the new Philippine Legilltlll pssel ly 1 llnanimolls vote the first general appropriation bill since 1910. By this law the income-receiving bureaus of the government were obliged to deposit in the insular treasury, to the credit of the general fInds, such income, and, at the end of the new fiscal yeal, December 31. 1914, to revert into the treasury all unexPended balances, thuls giving the Legislature control of the purse stings of thle go'vernlent. Under the appropriation and other legislation of this new Legislatuire abollt five and a half million pesos, or about 19 per cent of the total expenditures of 1913, were saved during the calendar year 1914. That this economy was vitally necessary and put into effect just in time appears from the fact that in the calendar year 1913 the government spent niore than P'7,00,000 in excess of its income. This

Page  13 REPORT OF THE GOVERNOR GENERAL. 13 had followed on three years, when from two to two and a half millions had yearly been expended in excess of ordinary income. The surplus was depleted and bankruptcy would have followed unless a check had been called. Not alone in this particular was the increased efficiency of the newly constituted Legislature apparent. For example, a campaign had been directed against the Filipino people in certain quarters of the United States based upon the alleged refusal of the Filipinos to legislate against slavery which, it was alleged, existed in the islands. There was in fact a legal doubt whether existing law in the Philippines did prohibit slavery and penalize it and, consequently, one of the first acts of the new Legislature was to pass, by unanimous vote, a drastic antislavery law, applying to the islands, as supplementary to existing law, the provisions of the United States statute against slavery and peonage. It thus appears that the failure to pass such a law until that time was due rather to some inherent defect in the methods of those demanding its passage than to any lack of desire on the part of the Philippine Legislature to prevent such abuses. As a matter of fact, official investigations showed that slavery as it is understood in the United States and in the Philippines did not generally exist, as was asserted by interested persons who apparently exploited the cases of peonage which came under their notice for political reasons. Many of the reforms effected by the new Legislature are touched upon in the immediately preceding report of the Philippine Commission. A well-founded apprehension about the condition of the treasury above alluded to made it imperative that retrenchments should be undertaken, and of a drastic nature. One of the most effective of these economies lay in the abolition of the bureau of navigation, which had outlived its usefulness and was increasingly extravagant, and the distribution of such of its property and functions as it was desirable to preserve to the bureaus of customs and public works. In the bureau of customs alone work formerly performed by the bureau of navigation was done at a saving of more than P400,000 during the year 1914, without loss of efficiency. Another feature of the appropriation bill passed by the new Legislature was the reduction of certain salaries of the government, a point mooted for several years previously. It was evident that the size of some of the salaries was out of all proportion to the size of the treasury and the value of the work performed; and in a time of economy, in the financial crisis which had fallen upon them as an inheritance from the system of expenditures uncontrolled by legislative action, the legislators determined to effect some salary cuts. A rule was adopted by which salaries of P10,000 or over were cut 10 per cent, salaries below P 10,000 and amounting to;6,000 or over, were cut 5 per cent, but salaries less than P6,000 were not reduced, in order not to infringe upon incomes providing ('nly necessary living expenses. At the same time, another rule excluded from the operations of salary reductions the judges, and engineers, scientists, and other technical officers or employees of the government. While some dissatisfaction necessarily was felt at first )y, many of those affected, it is believed that most of them recognized the necessity of the action of the Legislature.

Page  14 14 REPORT OF THE PHILIPPINE COMMISSION. In this discussion of the accomplishments of the new Legislature it is not essential to rehearse all of the legislation and point out all the reforms accomplished. It is desirable, however, to emphasize the complete success of the policy of giving the Filipinos a majority of the Commission. Legislative machinery which had refused to work, or had been working with loud jolting and jarring, suddenly began to work with speed, quietness, and efficiency. Almost all of the bills which passed the Commission did so by unanimous vote of the members present. Frequent consultations about pending legislation took place daily between members of the two houses. Of the Assembly bills considered in the Commission, 108 out of 263 were passed, while the Assembly passed 86 out of 105 Commission bills. Now that a satisfactory basis for a budget has been established, and a new system is in working order by which the calendar year is made the fiscal year, the appropriation bill for 1915 was passed in December, 1914, for the first time so early in a session, and for the first time an extra session of the Legislature was unnecessary. In previous years, even when an appropriation bill was not passed, many days of the last weeks of the session had been devoted to discussions of the bill, thus interfering with proper consideration of other measures. This occasion is taken to express my deep appreciation of the consideration accorded the recommendations of the Governor General by the Legislature, and as a member of the Commission to express admiration for the ability and conscientious hard work of my colleagues. One who has had opportunity for intimate observation can not doubt for a moment the ability of the Filipinos to enact their own legislation, conservatively and without extravagance, with diligent attention to the needs of the Filipino people, and with a comprehension of these needs such as it is difficult, if not impossible, for men of another race to acquire. CHANGES IN PERSONNEL. The action of the national administration in filipinizing the Commission was followed by increased representation of Filipinos in the executive branches of the government. Filipinization of the government service was the policy of President McKinley in his organic letter of instructions, and has been indorsed with emphasis as a principle by succeeding Presidents and by most of the Governors (eneral of the islands. Under whichever principle the Philippine question is even now discussed, whether of eventual independence or local self-government of the islands, it is obviously necessary to give the Filipinos an opportunity to fill any offices for which they demonstrate their ability. In fact, the law requires this, as is indicated by the following excerpt from the civil-service act: SEc. 6. In the appointment of officers and employees under the provisions of this act, the appointing officer in his selection from the list of eligibles furnished to him by the director of civil service shall, where other qualifications are equal, preferFirst. Natives of the Philippine Islands or persons who have, under and by virtue of the Treaty of Paris, acquired the political rights of natives of the islands. Second. Persons who have served as members of the Army, Navy, or Marine Corps of the United States and have been honorably discharged therefrom. Third. Citizens of the United States.

Page  15 REPORT OF THE GOVERNOR GENERAL. 15 In addition to the justice of the policy of filipinization, it is obvious to all that efficiency must result when capable Filipinos are placed in office, because thereby the confidence and cordial cooperation of the people are obtained. An administrative efficiency which may sparkle in the lecture room is not necessarily perceptible in action when the cooperation of the people can not be obtained or when the opposition of the people is invited. In spite, however, of the well-established policy of filipinization, it was found that on July 1, 1913, there were actually more Americans in the permanent civil service than in 1907 or 1908. The undersigned therefore adopted the policy of nominating Filipinos for offices for which they were fitted, whenever opportunity presented itself. At the present writing, of the thirty-one bureaus or offices of the government, eight have a Filipino at the head, instead of four, the highest number theretofore occupying such positions. It is now the announced policy, moreover, to appoint Filipinos to office, whenever vacancies exist, in the position of assistant chiefs of bureaus in which Americans are the chiefs. This has been done, since the undersigned became Governor General, in the bureaus of health, internal revenue, agriculture, and prisons. In the same period, moreover, Filipinos have been given a majority on the municipal board of the city of Manila, and Filipinos have been appointed to the offices of city attorney and prosecuting attorney of the city of Manila, to the latter office for the first time; Filipinos have been given a majority of the judicial positions of the courts of first instance; representation on the city council of the city of Baguio; and an increased number of administrative offices in the special government provinces, as well as many promotions in the clerical grades. Further progress in the higher branches of the government should be made when suitable opportunities offer. In a consideration of the official personnel of the insular government it should be remembered that the civil-service laws do not cover the positions of chief and assistant chief of bureaus. Such high officials bear a large share in carrying out the practical operations of the governmental policy and the wisdom of permitting the appointment of such officials without reference to the civil-service law is apparent when it is brought to mind that the Governor General or secretary of department must depend for efficiency in his policies upon the loyal cooperation and genuine support of the bureau chiefs immediately subordinate to him. The changes made by the undersigned in this class of officialsj however, have been generally governed by the rule of promotion in the insular service, and the net result has been that those at the heads of bureaus have now a longer average term of service in the insular government than was before the case. In discussing the changes made in the personnel of the government since the undersigned assumed office four factors enter into consideration: First, filipinization (above discussed); second, dismissals or forced resignations for the usual causes (misconduct or inefficiency); third, reduction in the personnel of the government (in large part in the bureau of public works) because of necessarily reduced appropriations by the Legislature; and, fourth, in two or three of the cases cited below the desire of the Governor General to insure loyal coop

Page  16 16 REPORT OF THE PHILIPPINE COMMISSION. eration in the new policies from those working with him in the government. Moreover, the reorganization of the higher personnel offered an opportunity of removing the antagonism which had grown up between certain of the executive branches of the government and the Filipino people, and thus to bring the government into touch with the people and insure a consideration of their wishes and needs. An American administration in the Philippines which considers itself free from the necessity of consulting the reasonable ideas of the people which it serves is certain to arouse antagonism between the races and dissatisfaction with efforts, however well intentioned, to administer the public affairs. In every case where civil service laws have had any bearing the spirit as well as the letter of the civil service has been observed by this administration. Reference is made in another section of this report to improvements inaugurated in the spirit of the civil service. Attention is invited to the fact that very few employees other than school-teachers have been brought out from the United States during the pjriod under discussion to fill vacancies in the insular service. While it now appears that there were as of January 1, 1915, 1,978 Americans in the insular service, as against about 2,600 on October 1, 1913, approximately 300 of that decrease may be attributed to the rule adopted of not importiing from the United States new employees for clerical or subordinate positions. Although in recent years about 500 Americans on an average have left the insular service annually, approximately 300 new untrained men were brought out from the United States. Somewhat more than 200 of these vacancies may be attributed to the reduced expenditures of the government following on the approprition bill enacted to curb certain extravagancies and abolish useless offices in view of the threatened deficit in the treasury. To mention, then, in more detail the changes in the higher personnel of the government, the first which invites comment is the position of the executive secretary. When in December, 1913, Brig. Gen. Pershing, United States Army, resigned his office as governor of the Moro Province in pursuance of orders to return to duty in the United States, the undersigned decided upon the appointment, for the first time, of a civilian as governor of the Moro Province. The executive secretary, Frank W. Carpenter, because of his knowledge, ability, and tact, and long executive training, was selected to fill this important post, the salary being raised by the Commission in its excluusive jurisdiction over the non-Christian territories, to i18,000 a year from the previous figure of f12,000, so that Gov. Carpenter should not suffer a reduction of the salary he had received as executive secretary. The vacancy as executive secretary was filled by the appointment of Attorney General Ignacio Villamor, ata salary of ff1,500, who, after holding the post with discretion and success for 17 months, has since been elected by the board of regents as president of the University of the Philippines. The position of first assistant executive'secretary was consolidated with the position of secretary to the Governor General, then vacant, and the position of private secretary to the Governor General, also vacant, was abolished. The former first assistant executive secretary, Thomas Cary Welch, resigned upon request, and his place was taken first by Stephen Bonsal, and three months later, when the latter

Page  17 REPORT OF THE GOVERNOR GENERAL, 17 be.came a member of the board of public utility commissioners, by Samuel Ferguson, who had served 10 years in the insular service and had lately been a special agent in the executive bureau. Manual de Yriarte remained as second assistant executive secretary. Robert M. Shearer, a special agent of the bureau, was made third assistant executive secretary; William W. Barclay, a special agent in the bureau, was made fourth assistant executive secretary, and during his absence in the United States as director general of the Philippine Panama-Pacific Exposition Board, Argus 0. Zinn, formerly private secretary to Secretary Dean C. Worcester, was made, until his resignation to return to the United States, acting fourth assistant executive secretary. Since the departure of Mr. Zinn, E. A. McCreary, provincial treasurer of Iloilo, has been acting fourth assistant executive secretary. William A. Randall remained as special agent during the development of the special work in connection with the land-tax revision. The position of chief clerk of the executive bureau, made vacant by the promotion of the former chief clerk to the position of secretary to the board of public utility commissioners, was filled by the appointment of a Filipino, formerly a chief of one of the divisions of the executive bureau. The position of assistant chief clerk was filled by the promotion of a clerk in the bureau. By Act No. 2352 provision was made for the taking of a census of the Philippine Islands under the direction of the executive secretary. A new appointment in that bureau was made as a result of this act, J. Lindsay Johnson, of Georgia, being appointed census assistant, a temporary position. The only other appointments in the executive bureau from the United States were that of the assistant chief of the division of legislative records, the position of chief of the division having become vacant by resignation and the then assistant chief having been promoted, and, for a few weeks only, a private secretary, who accompanied the undersigned from the United States and immediately returned home, whereupon his position was abolished. In the bureau of audits William H. Phipps resigned, and his place as insular auditor was filled by the Secretary of War by promotion of Clifford H. French before the arrival of the undersigned in the islands. Such other vacancies as occurred in this bureau in the regular course of events were filled by promotion in the bureau. The new insular auditor.initiated a plan of reorganization in the bureau by which trained Filipinos will gradually have a greater share in the work of the bureau in the provinces. In the bureau of civil service Dr. Bolivar L. Falconer resigned in December, 1914, to return home, on account of ill health, and Harry L. Hershey, the chief examiner, who had been eight years in the insular service, was apopinted director of civil service. The former assistant director, John E. Enright, left the service on December 31, 1914, when the office of assistant director was unappropriated for by the Legislature. Only one appointment was made to the bureau of civil service, that of a clerk in the executive bureau, who was transferred at the request of the director of civil service to the position of examiner. 8329 —15-2

Page  18 18 REPORT OF THE PHILIPPINE COMMISSION. The board of public utility commissioners, modeled on the board of the State of New Jersey, was created by Act No. 2307 of the Legislature, and there were appointed at the end of January, 1914, a chairman, for six years, Mariano Cui (a judge of the court of first instance); Stephen Bonsai, for four years (secretary to the Governor General); and Clyde A. Dewitt, for two years, a member of the Manila bar, some years before a teacher in the bureau of education. The board of rate regulation was abolished by the same act and its duties given to this board, as was also the case with the functions of the office of supervising railway expert; Loomis F. Goodale, until then supervising railway expert, being retained by the new board as an inspecting engineer. The Philippine board of the Panama-Pacific Internation Exposition was reorganized when it became necessary actively to undertake the work of preparation and departure from the islands for San Francisco. Commissioner Palma and Manuel Tinio, director of the bureau of lands, resigned their places on the board when their other official duties in the Philippines made such resignation appear to them advisable. Leon Ma. Guerrero, former secretary of the, board sent to the St. Louis Exposition, become president of this board; William W. Barclay, the fourth assistant executive secretary, was appointed director general and member, and Francisco Liongson, governor of the province of Pampanga, was appointed a member. T he position of secretary to the board was consolidated by act of the Legislature with that of director general, and Daniel R. Williams, who had held the former post during the preliminary work, was suitably compensated by appropriation for that purpose. In the bureau of health, Dr. Victor G. Heiser, after 10 years of distinguished service as director, resigned in December, 1914, to take up a wider field of work with the Rockefeller Foundation, and Dr. J. D. Long, of the United States Public Health Service. formerly assistant directior of the bureau of health of the Philippines, was made director, upon the recommendation of Dr. Heiser. In December, 1913, the post of assistant director of health being vacant, the undersigned, after consultation with Dr. Heiser, appointed to the position Dr. Vincente de Jesus for 12 years a member of the staff of the bureau of health. Doctor Heiser's resignation was accepted with regret and the assurance that if he would stay his position as director of health would be permanent so long as the undersigned remained Governor General. As his valuable services were thoroughly appreciated, all of his official acts were strongly sup ported by this administration. His resignation was entirely voluntary, to assume what seemed to him a more important or far reaching office. No other changes except routine were made in this bur eau.s de tis In the bureau of lands a special situation was considered to exist The director, Charles H. Sleeper, a diligent official of the government, was closely identified with the policy of the former administration which permitted the sale of the friar lands in large quantities to agricultural corporations. This was contrary to the wishes of the ilipino people, and was forbidden by law as to the other public lands of the insular government. The matter is too well Iown in Congress and in the islands to need further discussion at

Page  19 REPORT OF'THE GOVERNOR GENERAL. 19 this point. The undersigned believed that it was wise to give the Filipino people a directing voice in the question of public and friar lands, and thus requested the resignation of Director Sleeper and appointed in October, 1913, as director of the bureau of lands, Manuel Tinio (then director of the bureau of labor). The assistant director, John R. Wilson, resigned of his own accord, and the provincial treasurer of the province of Pangasinan, Walter E. Jones, was in April, 1914, appointed to that position, after 14 years service in the insular and provincial governments. Manuel Tinio, the director of lands, resigned effective October 1, 1914, and Rafael Corpus, then solicitor general of the government of the Philippine Islands, was appointed in his place. Mr. Tinio who, as above stated, was appointed director of lands from the position of director or labor, which he had successfully filled under previous administrations, went into office with a prophecy on the part of many persons not well disposed toward him that he would fail. Shortly after his induction into office, rumors to the effect that he was a poor executive, if not actually venal, became circulated in the city of Manila and the province of Nueva Ecija, of which Mr. Tinio is a native. The Governor General requested the secretary of the interior, Mr. Tinio's immediate superior in office, to investigate these charges. This was done and the secretary of the interior advised the Governor General orally that there was no foundation for the rumors. These rumors, however, insistently and persistently continued, and the Governor General then requested that the secretary of the interior make a formal investigation. Prior to the first investigation Mr. Tinio had indicated his desire to be relieved from office, owing to the fact that he met with much concealed opposition in the bureau, apparently on the part of employees opposed to having as their chief a Filipino. He was persuaded to retain his office, and no action was taken on his request to be relieved, and he was advised that he would be supported by the administration in every proper way. The first investigation of the charges mentioned was an informal one, made without the knowledge of Mr. Tinio. When the second investigation was made Mr. Tinio was advised thereof, and immediately notified the Governor General that he would not present his resignation, and that he demanded a full and complete investigation. The secretary 6f the interior, after an exhaustive inquiry, reported to the Governor General that Mr. Tinio's actions were free from any indication of mismanagement or criminal action. Immediately upon the conclusion of the investigation and report to the Governor General Mr. Tinio resigned, as above set forth. The rumors began within three months after his assumption of office and were based on alleged illegal grants of homesteads. Under the laws of the Philippine Islands, five years of occupation must ensue before a homestead can be granted, and the average length of time in the Philippines has been eight years. All homestead applications passed through the hands of subordinates, both Americans and Filipinos, in the bureau of lands. The groundlessness of the charges made against Mr. Tinio can thus be understood.

Page  20 20 BREPORT OF THE PHILIPPINE* COMMISSION. Certain rearrangements of the staff of the bureau of lands, to promote efficiency and further the work of both American and Filipino employees, is discussed in the report of the secretary of the interior. In the bureau of science the vacancy already existing as director was filled by the promotion of the assistant director, Alvin J. Cox, and the post of assistant director left vacant. Certain plans of retrenchment and economy were deemed necessary by the Legislature in providing for this bureau, as mentioned in the report of the secretary of the interior, the general intention being to direct the work of the bureau into channels as practical as possible, especially during the period of financial stringency. In the bureau of forestry the veteran director, George P. Ahern, resigned in November, 1914, to retire from office on account of the condition of his eyes, and the assistant director, William F. Sherfesee, was promoted to the position of director. The place of assistant director, thus vacated, was not appropriated for by the Legislature for the year 1915. No other changes, except routine, were made in this bureau. No changes were effected in the weather bureau which is still presided over by the well-known scientist, Father Jose Algue, S. J. In the constabulary, the acting chief, Col. James G. Harbord (captain, United States Army), was returned by operation of law to duty in the United States in December, 1913, and Col. William C. Rivers (major, United States Army), the assistant chief, who was also subject to return to duty in the United States in 1914, was made brigadier general and chief of constabulary from January 1, 1914, to March 31, 1914. On April 1, 1914, Herman Hall (major, United States Army), formerly for some years colonel and assistant chief of constabulary, and lately aid-de-camp to the Governor General, was made brigadier general and chief of constabulary. In June, 1914, however, Congress having extended the operation of the socalled "Manchu" law to field officers, Gen. (Maj.) Hall was obliged to resign the command of the constabulary, and return to duty with his regiment until the requisite period of his service with troops should expire in January, 1915. Col. Wallace C. Taylor, the senior colonel, was thus made acting chief of constabulary from June, 1914, to Jalnuary, 1915, when Brig. Gen. Herman Hall again assumed command. During the year 1914, Col. Mark L. Hersey (major, United States Army) and Col. John B. Bennet (major, United States Army) were also returned to duty with their troops by the operation of law. Col. Peter Traub (major, United States Army) was appointed to one of the vacancies thus existing, and Col. Marcus D. Cronin (major, United States Army) to another. Thus, in January, 1915, there were the following positions in the Philippine Constabulary which were filled by officers of the United States Army-chief, two colonels and assistant chiefs, and one inspector; instead of a chief, four colonels and assistant chiefs, and two inspectors as formerly. The present policy is to give increased representation in the highest grade to senior civilian officers of the constabulary in recognition of their long service. Thus in 1914 Col. Crame was promoted from lieutenant colonel; Col. John R. White (since retired on account of ill health), from lieutenant colonel; Col. Edward W. Griffith (since resigned), from lieutenant colonel; Col. George D. Long (since retired on ac

Page  21 REPORT OF THE GOVERNOR GENERAL. count of ill health), from lieutenant colonel; and Col. Charles C. Smith, from lieutenant colonel. Other vacancies in the constabulary above the lower grades have been filled by promotion, except in the case of Capt. Vernon L. Whitney, who was reappointed as captain in the constabulary in recognition of his services to the government as governor of Jolo. The bureau of public works has had no change at the head, Warwick Greene remaining as director; but various changes were effected in the bureau upon a plan designed by the director at the request of the Governor General, and adopted by the Legislature in the appropriation bill of 1914. In a time of financial stringency it was deemed necessary to effect a reorganization of this bureau by way of economy and retrenchment, a plan which, in some of its features, had previously been under contemplation in the recent past. The net result of this inevitable retrenchment was the reduction of the force of the bureau in 1914 from 470 employees on June 30, 1913, to 353 employees in the classified service, consisting of 124 Americans and 229 Filipinos; and a rearrangement of the distribution of work which brings greater efficiency. It may herewith be observed that this greatly reduced force is handling with entire competency the public works for 1915, the largest program undertaken in recent years. By Act No. 2314 of the Legislature the office of consulting architect was made a division of the bureau of public works. Consulting Architect William E. Parsons resigned, and the assistant, George C. Fenhnigen, was appointed to the office. In the bureau of posts Charles C. Cotterman resigned to devote himself to business in Manila, and the director of internal revenue, William T. Nolting, was appointed director of posts. Mr. Nolting has since resigned to enter business in South America. No changes other than routine have occurred in this bureau. The Manila post office has, however, been to a considerable extent filipinized. The bureau of coast and geodetic survev on the 1st of March, 1914. changed its director, Capt. William C. Hodgkins taking the place of Capt. Welker, both of the United States survey service, pursuant to regulations of that service. In the bureau of labor Manuel Tinio was made director of the bureau of lands, as above mentioned, and the assistant director, Bernardino G. Monreal, was made director of labor. Faustino Aguiilar was made assistant director. The bureau of justice experienced several changes, due to promotion. The attorney general, Ignacio Villamor, became executive secretary. Ramon Avancefia, up to that time a judge of the court of first instance, became attorney general on January 2, 1914. Solicitor General George R. Harvey became a judge of the court of first instance on July 1, 1914, and Rafael Corpus, member of the Assembly from Zambales, took his place. Subsequently Mr. Corpus was appointed director of lands, and the positon of solicitor general was left Vacant, the Legislature having failed to appropriate for the position. George A. Malcolm, an assistant attorney of the bureau, left the bureau of justice to devote his time to the work of the law school of tlhe University of the Philippines, of which he is dean. Robert C. PRound, whose former position as law clerk of the bureau of internal (I)venue was abolished as a result of the reorganization of that

Page  22 22 REPORT OF THE PHILIPPINE COMMISSION. bureau, was transferred to the position of an assistant attorney of the bureau of justice. Richard U. Strong, formerly in the bureau of lands, was similarly appointed an assistant attornev. James R. Burgett, by transfer from the United States civil service, was appointed an assistant attorney of the bureau in January, 1914, and later, in July, 1914, was appointed auxiliary judge of the court of first instance. The resignation of the insular collector of customs, Henry B. McCoy, was requested in October, 1913, and Bernard Herstein, of New York, was appointed to that position. Dr. Herstein had been an expert attached to President Taft's Tariff Board, and later an adviser to the congressional committees during the Underwood revision of the tariff. The bureau of customs has been charged by Act No. 2308 of the Legislature with the duties of the division of vessels, marine railwav and repair shops, and lighthouses of the former bureau of navigation. Both in these particulars and in the collection of revenue Collector Herstein has effected large economies in pursuance of the terms of the appropriation bill of January, 1914. No changes except those of a routine nature are otherwise recorded in the bureau of customs beyond the reduction of employees in the clerical force required by the terms of the appropriation bill. The collector of internal revenue, William T. Nolting, having been transferred to the directorship of the bureau of posts, on January 1, 1914, James J. Rafferty, deputy collector of customs in Zamboanga and for 12 years in the insular service, was appointed collector of internal revenue. In the calendar year 1914, in spite of the depression in trade due to the European war, the bureau of internal revenue collected P22,550,109.37, or P365,208.14 more than in the calendar year 1913. The resignation of Deputy Collector Henry B. Steere was requested and Venancio Concepcion, of Cagavan Province, was appointed deputy collector in January, 1914. Other changes in the bureau are of an ordinary routine nature, the filipinization started by Collector Nolting having been continued by Collector Rafferty. No changes are noted in the bureau of the treasury except a slight reduction of force with resultant economies of p3,000 per annum In the large bureau of education the only change in the personnel to be remarked upon was the promotion of Walter W. Marquardt, the senior division superintendent, to be second assistant director of education, an existing vacancy. Forty-five new American schoolteachers were brought out to the Philippines in 1914. The school attendance was raised from 440,050 to 621,030 during the year and 1,000 new primary schools provided for by appropriation. Considerable extension of school work among the non-Christian people was also undertaken. In the personnel of the University of the Philippines no important changes were made in 1914, except the appointment of Sixto de los Angeles to the board of regents to fill an existing vacancy. The personnel of the bureau of agriculture had several important changes. Director F. W. Tavlor resigned in March, 1914, to return to the United States, and Assistant Director Harry T. Edwards, who was serving his thirteenth year in the insular service, was made director. To the position of assistant director, Adriano Hernandez,

Page  23 REPORT OF THE GOVERNOR GENERAL. 23 the governor of the province of Iloilo, was appointed. In December, 1914, William E. Cobey, chief clerk of the bureau, was made second assistant director. In this bureau particularly, dealing as it does so intimately with the daily life of the Filipino people, it is believed more rapid filipinization would bring the bureau more closely into touch with the populace it serves. In the bureau of supply no changes were made except a reduction of 11 American and 11 Filipino employees, due to necessary economies prescribed by the Legislature. The director of the bureau of prisons, Mortimer L. Stewart, resigned in December, 1913, to become editor of a Manila newspaper, and his place was filled by the appointment of Dr. Walter H. Dade, warden of the San Ramon Penal Farm in Mindanao. The assistant director, Lafayette Dorrington, resigned, having secured an appointment in the federal service, and Dr. Charles G. Thomson, of the bureau of agriculture, was appointed in his place. Julius W. Quillen, the second assistant director, having been appointed in August, 1914, superintendent of the Iwahig Penal Colony, Manuel Guarina, the former governor of the province of Sorsogon, was appointed in his place. The position formerly occupied by Director Dade as superintendent of the San Ramon Penal Farm was filled by the appointment of Joseph B. Cooley, of the bureau of constabulary. No other changes are noted in the personnel of the bureau of prisons. John S. Leech, the director of printing, was asked to resign by the Governor General, owing to the fact that he took an active part in inciting the employees of his bureau to send cablegrams to the President of the United States and other persons, alleging that certain action was contemplated by the Philippine Legislature when, as a matter of fact, no such action was under consideration, and the immediate superiors of Mr. Leech were not requested by him for information. The resignation of James Hoggsette, assistant director of the bureau of printing, was requested because of his refusal, upon request, to furnish information regarding the acts above referred to when such information was in his possession. Their places were filled by promotion from the top of the bureau, Edward E. Gessler being appointed director and Samuel H. Musick assistant director. No other changes are recorded. In the Philippine Library and in the sales agency board during 1914 no changes of importance were made. The personnel of the Philippine judiciary remains much as it was before, although the courts of first instance were upon July 1, 1914, reorganized by Act No. 2347 of the Legislature. Victorino Mapa resigned from the supreme court in October, 1913, to become a member of the Philippine Commission and secretary of finance and justice. His place upon the supreme court was filled by President Wilson by the appointment of Manuel Araullo, the president of the Philippine code committee. The increasing business of the courts necessitated a larger bench in the court of first instance, and in addition a reorganization of that court was necessary, because of the size of the territory to be covered by each judge and the inconvenience of the existing arrangement. Moreover, the work of the land registration court was falling so far behind the necessary requirements that it was decided to distribute the work of this court

Page  24 24 REPORT OF THE PHILIPPINE COMMISSION. among the judges of first instance. With these needs in view, a judiciary reorganization act, No. 2347, effective July 1, 1914, was passed. Prior to the passage of this act there were in existence, besides the supreme court, the courts of first instance, consisting of 16 regular provincial judicial districts, the mountain district, 3 branches of the Manila court of first instance, and also the general land registration court, with 5 judges, as well as 4 judges of the court of first instance at large; or, in all, 29 judges. The reorganization act abolished the court of land registration, creating in place thereof the general land registration office, the duties of which are solely administrative, and the judicial functions of the old court of land registration were transferred to the judges of the court of first instance. The reorganization act also created 26 judicial districts, giving the ninth judicial district, which comprises the city of Manila, 4 judges, and providing for 7 auxiliary judges, making in all 36 judgeships. All of the judges in the service at the time of the reorganization were reaplpointed, including those serving in the court of land registration, and the following new judges and auxiliary judges were also namred: lHermogenes Reyes, from 1904 to 1906, served as fiscal, or prosecuting attorney, of the province of Bulacan, and in 1907 as a member of the provincial board of Bulacan; from 1909 to 1912 as delegate to the Philippine Assembly from the first district of Bulacan; from 1912 to the date of his appointment as judge he practiced law in the province of Bulacan. Vicente Miranda was a practicing attorney of wide experience in the city of Manila, whose standing both as a lawyer and a member of society is excellent. willialm M. ( onnor, jr., entered the Philippine service as a teacher in 1)02; in 1903 was appointed to a position in the provincial goverlnment of the Moro Province; the same year was appointed assistant attorney of the Moro Province, in which position he served until Septenbllr 26, 1908, when he wtas appointed attorney for the Moro Province. IHe was appointed city attorney of the city of Manila April 1. 1914, and in that position was serving at the time of his nappointlent as juldge. Andres Borroneo was appointed originally to the Philippine servapntmSel veaas nssistant tlttorley in the bureau of justice until. his Mcnne el iMrcenio 1901 in ust, 1904, was appoint ed deputy fiscal of s2rie J3nuary 1, 1902, and sex'ed in the pov nt of filppinecivl' ntil 1 e proince of Cebu from which position he resigned in 1905; was appointed fisca l of the province of oho in ote fiscal of the provinc of Ceb in 1909, an od from that position appointed judge. James R. Burgett was transferred from the United States service and served as assistant attorney in the bureau of justice until his s ir j e c uil his appointment as ajudge Mllanuel \ ivencio del R 1osario was appointed to the Philippine civil se,'vice Janar 1. 1. 'i Ja r ~1, 1902, and served in the court of first instance,,ntil 1903. when he was appointed provincial secretary of the proxVin.ce of Sorsogon; was appointed fiscal of the province of Albav JuEnO 1, 1905, and served continuously as such until his appointment au x iliary jud ge.. Fernando Salas was appointed originally to the civil service of the Philippine Islands FIebruary 11, 1902, and resigned the same year;

Page  25 REPORT OF THE GOVERNOR GENERAL. 25 April 11, 1903, was appointed assistant attorney in the bureau of justice, and served until July, 1905, when he resigned. On December 21, 1909, he was appointed fiscal of the province of Rizal, and was serving in that position when appointed auxiliary judge. Cayetano Lukban was appointed fiscal of the province of Cagayan and Isabela on August 24, 1910; was promoted to fiscal of the province of Ilocos Sur May 6, 1914, in which position he was serving when appointed auxiliary judge. Fermin Mariano had no previous experience in the Philippine civil service, but bore an excellent reputation as a lawyer and citizen. Tomas Flordeliza was appointed fiscal of the province of Ambos Camarines July 8, 1907, and served in that position until his appointment as auxiliary judge. Each of these appointments was made on the merit system, and met with general approval throughout the Philippine Islands. In the selection of'new judges and the reassignment of the judges already serving the Governor General before recommendation to the Philippine Commission consulted the secretary of finance and justice, and reassignments were made with a view to the convenience of the judges then in the service. The Governor General reports with regret the death on December 19, 1913, of Charles A. Low, judge of the fourteenth judicial district. To the position left vacant by the death of Judge Low, George N. Hurd, then a judge at large of the court of first instance, was appointed on February 7, 1914. Bartolome Revilla on January 21, 1914, was appointed to the position of judge at large, theretofore held by Judge Hurd. Ramon Avancenia, judge of the twelfth judicial district, comprising the provinces of Leyte and Samar, was appointed attorney genera] January 2, 1914. The position left vacant by Judge Avancefia's appointment was filled by the appointment of Jesse George, formerly judge of the court of land registration. Mariano Cui, judge of the seventh judicial district of the old organization, was appointed chairman of the board of public utility commissioners February 3, 1914. He was succeeded as a judge of the court of first instance by George R. Harvey, former solicitor general, whose appointment became effective February 4, 1914. Charles S. Lobingier, judge of the court of first instance, district of Manila, in the old organization, resigned from the service February 15, 1914, to accept appointment as judge of the United States Court at Shanghai. His resignation was accepted effective June 30, 1914, the position vacated by him being left unfilled until the reorganization on July 1, 1914. A. S. Crossfield, judge of the court of first instance, district of Manila, in the old organization, resigned on June 30, 1914, to take up the practice of law. Judge Crossfield's resignation was accepted with regret, as he had rendered long and faithful service as a judge of the former court of customs appeals and of first instance in Manila. The positions left vacant in the old organization by the resignations of Judge Lobingier and Judge Crossfield may be considered as being now filled by the appointments in the new organization of Judge Campbell and Judge Harvey. Judge Campbell had many years' service as assistant attorney of the bureau of justice and as

Page  26 26 REPORT OF THE PHILIPPINE COMMISSION. judge of the court of first instance, first district, mountain district, and tenth judicial district. The code committee, upon the promotion of Manuel Araullo to the supreme bench, received a new president in Francisco Ortigas, a member of that committee for four years, while Macario Adriatico, member of the Assembly from Mindoro, was appointed to the vacancy on the committee. It is with regret that the Governor General has to report the death on May 12, 1915, of Rafael del Pan, member of the code committee. Judge del Pan was appointed to the committee on July 28, 1909, and served as member thereof until his demise. In the provincial service, the officials are for the most part elective, except in the special government provinces, which are discussed in the reports of the secretary of the interior and the governor of the department of Mindanao and Sulu. In the Mountain Province the personnel built up by former Secretary of the Interior Dean C. Worcester has been practically unchanged, except one resignation of a lieutenant governor, accepted for cause. Elsewhere, wherever possible, gradual filipinization is taking place, so as to extend the scope of local self-government, as, for example in Mindoro, where Juan Morente, jr., was appointed governor to fill a vacancy caused by the resignation of Capt. Stone of the Philippine Scouts. The following governors of provinces have also been appointed by the undersigned, pursuant to law, to serve until the next election: Cavite, Antero Soriano; Iloilo, Amando Avancefa; Laguna, Marcos Paulino; Pampanga, I tonorio Ventura. In the municipal service of the city of Manila, several changes in the personnel have taken place. Arcadio Arellano was appointed a member of the municipal board in October, 1913, to fill an existing vacancy, and in April, 1913, W. A. Hastings resigned to return to tle United States, his place being filled by the appointment of Dr. Albert P. Fitzsimmons, mayor of Tecumseh, Nebr., and formerly in the United States Army Medical Corps in the Philippines. The secretary of the municipal bcard resigned July 31, 1914, to enter private business in Manila, and the chief of the provincial division of the executive bureau was appointed to his place. Upon the resignation of City Attorney Fisher N. Nesmith, Jose Escaler, a practicing lawyer and member of the board of regents of the University of t ppins, was appointed to the osition. Thresgnation ent. the police deprtent consideble friction ws found to exist as a result of the two recent investigations and it was tholght best by the undersigned to 'reorganize the head of the department. Conseqluently, the resignation of John. Harding, the chief of Police, was askred and received. In his place Assistant Chief of olice George Seaver was promoted to chief of police, and the senior captain, Alesxander Harmon, was promoted to assistant chief. Tpl resignations of two police captains were also requested, and their app ces filed, one b promotn in the force and the other by the ppointment of John rHughes, of New Jersey, who served until

Page  27 REPORT OF THE GOVERNOR GENERAL. 27 August, 1914, when he resigned and returned to the United States. The position thus left vacant was filled by the promotion of Sergt. Manning, the next ranking officer. In the department of city schools, upon the promotion of Walter W. Marquardt to be assistant director of education, Luther B. Bewley was appointed superintendent. In the department of engineering and public works the only change was the appointment of Jose P. Katigbak to the vacant position of assistant city engineer. As before stated, Act No. 2352 provided for the taking of the census of the Philippine Islands under the direction of the executive secretary. J. Lindsay Johnson, of Georgia, as already set forth, was appointed one of the census assistants and Epifanio de los Santos, fiscal of the province of Bulacan, was appointed to the second and Charles R. Cameron, secretary of the Department of Mindanao and Sulu, was app;onted to the third position as census assistant. All these positions are temporary. The changes in the personnel of the insular service following on the changes of membership of the Philippine Commission under the present administration in Washington have thus been discussed in detail because of the evident misunderstanding in the United States as to what changes occurred and as to the reasons for making such changes. Such misunderstanding has been due in great part to a campaign of actual misrepresentation conducted both by disgruntled persons formerly in the Philippine service and by persons not in sympathy with the policy of the present administration, especially so far as concerns the future attitude of the American Government to the people of the Philippine Islands. It will be observed that the rule of promotion in the insular service has been usually followed in filling vacancies in the 24 instances when vacancies occurred in the heads or assistant heads of bureaus; that in consequence these officials now average longer terms of service than previously was the case; that in only 5 cases in the insular service and 4 cases in the service of the city of Manila were resignations administratively forced upon officers of the government; that in 17 cases resignations were voluntarily presented either to accept positions elsewhere in the service, to enter business, or to return to the United States for reasons of health or otherwise; that in only 6 cases-except in the constabulary, health, and coast and geodetic survey, where regularly occurring vacancies were filled by officers of similar branches of the United States service-were the higher offices filled by selection in the United States, viz, insular collector of customs, one auxiliary judge, member board of public utility commissioners, member of the municipal board of the city of Manila, assistant director of the census, and one police captain, since resigned. By direction of the Governor General, the practice of sending to the United States for employees for purely clerical duties has been stopped, and practically no employees of any kind were brought over during the year 1914 except school-teachers and technical employees. In Executive Order No. 21, dated February 18, 1914, the views of the Governor General in this connection are set forth as follows: In the exercise of power conferred by act of Congress of July 1, 1902, known as the Philippine bill, and by Act No. 1698 of the Philippine Commission, known

Page  28 28 REPORT OF THE PHILIPPINE COMMISSION. as the "revised civil-service act," the Governor General hereby approves and promulgates the following amendment of section 5 of Civil Service Rule III, as promulgated by Executive Order No. 5, series of 1909: 5. Examinations in the Philippine Islands shall be held in Manila and in the Provinces upon such dates as the Director may deem best for the interest of the service and the convenience of applicants, and examinations in the United States will be held under the auspices of the United States Civil Service Commission at the request of the Director: Provided, That when there are names on the proper eligible register of the Bureau of Civil Service no appointment shall be rmde to a position in the classified civil service of a person residing outside the Philippine Islands unless, after comment by the appointing officer and the Director, the Governor General shall decide that the eligibles do not possess the technical knowledge and training or other qualifications or requirements necessary for the position sought to be filled or that the best interests of the service require the appointment of a nonresident. As further stated in the report of the director of the civil service, "on account of the increasing number of better educated Filipinos who were able to qualify in the first and second grade examinations appointing officers have almost ceased making appointments in Manila from the third (the lowest) grade register of eligibles, and there has been a marked decrease in the number of eligibles appointed from this register in the provinces. For this reason the third-grade examination was given only once during 1914." As demanded by the economies put into effect by the Legislature, there was a general reduction of personnel throughout the insular service and the municipal service of Manila in 1914. Of the appointees from examinations, only 6 per cent were Americans and 94 per cent Filipinos, instead of 11 and 89 per cent, respectively, in 1912 and 1913. In the classified service but 54 Americans were brought from the United States in 1914, of whom 45 were teachers; and in the unclassified service 39 Americans were brought from the United States, 18 as. constabulary officers and 10 as superintendents of agricultural experiment stations; the other 11 were, except as above mentioned chiefly technical experts. On August 22, 1914, after the breaking out of the European war the u,nder signed issued an order looking to greater econom v, on account of the alarming drop in customs receipts, and directed the suspensio n oO f promotions for the present, and that positions which became vacant should not be filled. This rule was graduall relaxed as the revenues improved, in order to maintain the efficiency o the service. l)uring the whole year there were 2,944 appointment the insular and provincial service and in the city of Manila by promotion, reduction, reinstatement, and transfer, as compared with 31243 for the fiscal year 1913. Ioif the year 1914 about 29f per cent of the American officerssation. e f the service, as fthe record of tio o poiton 18 wr separated for cause, and 10 died. The rctor of civil service, shows the record of

Page  29 REPORT OF THE GOVERNOR GENERAL. 29 separations of Americans from the service in every year from 1903: Numaler of separations Per cent of separations Number of of Americans, of Americans. Americans Fiscal year ended June 30. in the -------- ____ service on Volun- Invol Ttal Volul- Tnvo Total. January 1 tary. untary. tary. ntary. 1903....-........ —...-.... ---... --- —. 2,777 617 269 886 22 10 32 1904..................... 3,228 787 313 1,100 24 10 34 1905................................... 3,307 614 195 809 18 6 24 19071................................... 2,616 536 90 626 20 4 24 1908.................................... 2,479 407 77 484 17 3 20 1909.............. -..... -....... 2,659 376 62 438 14 2 16 1910.......................... 2,6331 508 92 600 19 4 23 1911.................................. 2,633 i 481 71 1 552 18 3 21 1912................................ 2,680 412 50 462 15 2 17 1913................................... 2,623 461 44 505 17 2 19 July to December, 1913, half year......... 2,623 187 98 285 7 4 11 1914...................................... 2 2,148 478 155 633 22 7 29 1915, half year (estimated)................ 1,978 200 20 220 10 1 11 1 No data for 1906 are available. 2 July 1. It will be noted that in the years 1903, 1904, and 1905 the number of separations was greater than in 1914. The needs and activities of the government are growing year by year as is observable in other modern governments and there was an increase in the number of Filipino employees on the pay roll on July 1, 1914. Considered for the whole 18 months period from January 1, 1913, to July 1, 1914, the table shows a decrease of 475 in the number of Americans and an increase of 920 in the total number of Filipinos. Of this increase of Filipinos, 113 are telegraph operators in the bureau of posts, not formerly carried in these statistics. " The actual increase in the number of Filipinos, therefore," says the director of civil service, "is 807, of whom 10 are in the legislative branch of the service, 33 are in the judiciary, 85 in the municipal service of Manila and Baguio, 266 in the provincial service, and 413 in the bureaus and offices of the executive branch of the Philippine civil service. * * * Of the increase in the executive branch of the service, 142 are in the bureau of posts (many new post offices), 96 in the bureau of education, 60 in the bureau of forestry (expansion of work which increased revenues), 50 in the bureau of lands, and the remainder in small numbers in the other bureaus and offices."' Of the apparent increase of Filipino employees in the provincial service, 95 are due to the reassessment of land values throughout the islands for purposes of taxation, a temporary work which should soon be completed. The director of civil service reports that on December 31, 1914, there were in the service 1,978 Americans and 7,394 Filipinos, a total of 9,372; and that the decrease in the total number of employees since July 1, 1914 (above table), is 59, a decrease of 170 Americans and an increase of 111 Filipinos. In order to provide for the transfer to the Federal service of employees separated from the insular service through filipinization or reduction of force prior to the completion of the three years of service previously required, the President on June 15, 1914, on recommendation of the United States Civil Service Commission, issued

Page  30 30 REPORT OF THE PHILIPPINE COMMISSION. an amendment of section 10 of Rule X reducing the term of service required in the insular service to two years, if authorized by the United States Civil Service Commission, "if he (applicant for transfer) is especially recommended by the War Department because of his efficiency and good character." From October, 1913, to June, 1914, the Bureau of Insular Affairs secured the transfer of 54 persons to the Federal service upon separation from this service, at an average salary of $1,400. It is probable that all who desire it can secure such transfers if they will go to Washington personally and are willing to enter at the usual entrance salary. Nevertheless, the recommendation of the secretary of the interior, in his report herewith, is concurred in, that in each deserving case the next vacancy occurring in the Federal service should be made available, in order to give employees separated by filipinization a priority of recognition. The policy of filipinization is recognized in theory by each successive administration in Washington, and every concession made of employment in the United States Federal service is but a just reward for meritorious service here. Two orders of the undersigned, in October, 1913, soon after his arrival in the Philippines, are intended to strengthen the morale and enforce the spirit as well as the letter of civil service. The first is Executive Order No. 103, dealing with financial investments in the islands made by civil service and all other government emplovees. Existing executive regulation forbade investments by employees and officers of the government in the islands without permission, but it had been the practice to grant such permission freely. This was contrary to the spirit of administration in similar establishments of recognized high standard, and was not always conducive to the singleness of purpose requisite for efficiency in the civil service here. The practice of permitting or encouraging officials to invest in the country they are sent out to administer verges dangerously upon the old system of government by chartered companies for commercial exploitation, a system which is being generally abandoned elsewhere as unsatisfactory in that it leads to oppression, maladministration, and often to suppression of the facts as to the true state of public affairs. Aside from the temptation to be unfairly influenced by such investments in the conduct of office, the time and attention of the employee was thus apt to be absorbed to the detriment of his official work. Moreover, under policies announced by all administrations that American occupation of the islands is not to be permanent, the official with investments here is apt to be unduly influenced in his attitude toward such policy, as well as to believe he was being made to suffer an unfair hardship if his turn came to return to the United States under the process of filipinization. In addition to this, there was the determined opposition of the Americans and Filipinos in business in the Philippines to the practice of officers and employees of the Philippine governmnent ngagng in dirnect competition with such business men. Therefore, in RExecutive Order No. 103, series of 1913, it was stated that henceforth executive permission to invest or to seek outside employment would be granted only in case the investment or employment would clearly appear to offer no interruption of work, or interference with the time or strength due the government, or cause unfair com

Page  31 REPORT OF THE GOVERNOR GENERAL. 31 petition with established business conducted by private persons. Investments already made under former executive permission were not to be disturbed unless they tended unduly to influence the official in the performance of his official duties or to impair the credit of the government. The other order referred to was in reference to political organizations. By a circular of the director of civil service, dated June 25, 1909, and approved by the Governor General, officials and employees of the government had been forbidden to engage in political activities, but this prohibition had subsequently been interpreted to refer only to political organizations of parties in Filipino politics; a subsequent circular of the director of civil service, dated December 9, 1913, and approved by the Governor General, made it clearly appear that this rule applied to activities in the work of American political parties in the islands as well. In concluding this report of the civil-service administration of the government, it is desired emphatically to state that in all questions affecting the civil service the spirit, as well as the letter of the law and regulations in force, has been observed. The officials and employees of this government are to be congratulated upon the unselfishness with which they have cheerfully devoted their best efforts to the service, upon their diligence and devotion to their work, and upon the fact that with reduced force in many bureaus and offices, made necessary by economy, the work of the government has not only not diminished in efficiency, but in general has actually increased. WORK OF THE BUREAUS AND OFFICES IN 1914. After the discussion of changes in the personnel of the gqvernment, a brief reference will be made to the work of the bureaus and offices. The accompanying reports of the secretaries of department make unnecessary at this point an extended description of matters elsewhere mentioned. PUBLIC UTILITIES COMAIISSION. Reference has already been made to the creation by Act No. 2307 as amended, of the board of public utility commissioners, and the composition of its membership. The creation of such a board was urged by Acting Governor General Gilbert in his last report, that of September 25, 1913, and the law was enacted on December 19, 1913, with my earnest recommendation. The relation of the public to the public service corporations, the attitude of such corporations toward the public, and, in the Philippine Islands, the relation of the government to the interest-guaranteed bond issues of the railroads are all of vital importance. It was evident, from recent transactions in the islands, that the interests of all these entities were not sufficiently conserved by existing agencies. It is believed that the public utilities commission has already amply demonstrated the wisdom of its creation and that it is absolutely essential that this agency should be supported and maintained by the government to protect its vested interests in the guaranty of railroad bonds. The time of the board was occupied for at least five months with an investigation into the method of acquiring right of way on the southern lines of the Manila Railroad Co., in which the government has

Page  32 32 REPORT OF THE PHILIPPINE COMMISSION. particular fiduciary interest by reason of its bond guaranty, and the board reported to the undersigned that frauds of an approximate amount of 1900,000 had been committed in the- acquisition of this right of way, which sum had already been bonded, or was about to be bonded, and the interest on the bonds to be guaranteed by the government. After consultation with the attorney general, this report of the board of public utility commissioners and other reports on this matter in the hands of the Governor General, were turned over to Louis M. Southworth, of the Manila bar, to act on special retainer on behalf of the bureau of justice, to prosecute any or all persons found to be guilty of criminal acts in connection with these right-of-way frauds. At the same time the board of public utility commissioners adopted certain regulations which will, it is believed. prevent a repetition of the practices which created these frauds. In addition to the railroad right of way case above mentioned 163 other cases came before this board in 1914, and of those 137 were disposed of. MUNICIPAL BOARD OP THE CITY OF MANILA. The work of the municipal board of the city of Manila during the year 1914 has been marked by conservative administration of the city's finances. At the end of 1913 the municipal board was found to have incurred with the insular treasury an overdraft of about 1~666,154.59 for the current expenses of the city. In general it may be said that the financial situation of the city of Manila demanded the utmost economy, and this was exercised by the board. During the year 1914 the overdraft was reduced by the sum of P617,017.14, showing the excellent care and attention devoted by the board to this end. Anong the economies adopted were the reorganization of several of the city departments and the reduction of the salaries of the higher-paid officials, including those of the board members themselves, in accordance with the general plan adopted by the insular Legislature for insular officials. While a normal program of public works was put into effect during the year 1914, it is obvious that the gowing demands of the people of the city of Manila for public improvements, such as the dredging of esteros, the creation of new sanitary barrios, the extension of streets, and the building of bridges can not be undertaken unless new sources of revenue are obtained. The undersigned has on several occasions urgently recommended to the Legislature the enactment of a special assessment law similar to that in force in the large cities of the United States to make the burden of new public improvements fall primarily upon the holders of property principally benefited by such works. Until this is done it is not believed that the city of Manila can keep pace with the just expectations for large public worls and the proper demands of its residents. TI'he workl of the city departments-police, fire, schools, and engineering-hlas been highly creditable and must be commended. Particulr mention is due the police department for its efficiency in the protection of public and private property and in its complete freedom from scandal or just reproach. Attention should also be called to the excellent work of the police in caring for the sufferers from the great September food. In this connection the city engineering

Page  33 REPORT OF THE GOVERNOR GENERAL. 33 department is to be commended for the rapid replacing by a temporary structure of the Bridge of Spain, which was practically destroyed by the flood, and for the fact that the new temporary bridge was built by administration at a saving of P15,445 under the lowest bid submitted by contractors. The entire cost of the new temporary structure was but P22,555.38. The amount appropriated by the board for public schools in the city of Manila is regularly increased year by year. PHILIPPINE BOARD OF THE PANAMA-PACIFIC INTERNATIONAL EXPOSITION. The Panama-Pacific Exposition is now in progress and a complete report of the work of the Philippine board will not be available until the end of the exposition. Visitors to the exposition speak in high terms of the Philippine exhibit, and for this success the board itself, the bureaus of education, public works, science, health, forestry, agriculture, and the Philippine library, as well as the provincial and private exhibitors, are to be commended. The constabulary band, with the consent of the secretary of commerce and police, pursuant to authorization of the Legislature, was sent to the San Francisco exposition in December, 1914. BUREAU OF AUDITS. The activities of the bureau of audits during the year 1914 have been marked by increased efficiency, accompanied by reduction in expenses and extension of participation in the work of audit to Filipino employees, according to a plan worked out for this purpose by the new auditor. The insular auditor has, in addition, been in constant communication with the Legislature, advising both houses of the financial condition of the treasury, with a view to assisting in the preparation of the appropriation bills in the form of which he has moreover suggested various improvements. EXECUTIVE BUREAU. The report of the executive secretary, published separately, covers fully the work of the bureau during the year 1914, and it is necessary to refer only to a few of the many subjects covered. In an increasing degree the provincial governments are encouraged to more complete exercise of the powers of self-government and to be accustomed to less active supervision by the executive bureau. The executive secretary nevertheless takes a careful interest in the operation of provincial and municipal governments, and especially in the vigorous campaigns against rinderpest and locusts has had occasion to visit many of the localities afflicted. With a few exceptions, in which disciplinary measures extended to the suspension of the municipal presidents at fault, the people of the various sections cheerfully and uncomplainingly devoted their time to a vigorous campaign against these agricultural pests. It is now perfectly understood that the Imcusts while in the hopper stage can be destroyed before any serious damage is done, but no method has yet been devised of killing the pests when they have reached the flying stage. It is thus of vital 8329-15 — 3

Page  34 34 REPORT OF THE PHILIPPINE C(OMMISSION. importance that vigorous action be taken in regard to locusts as soon as they appear from the egg. Moreover, it is recommended that the insular government should organize locust-extermination forces in the wild and unsettled regions of the Philippines, so that the eggs of the locusts may be located and destroyed before hatching. It is too much to expect that the inhabitants of settled localities shall without organization and compensation forsake their own agriculture and enter upon locust extermination in the distant and uninhabited localities where the insects usually are hatched. The public lectures of former Executive Secretary Ignacio Villamor and the active campaigns of Col. Wallace C. Taylor, of the constabulary, have done much to call this situation to the attention of the people. Rinderpest is a great and ever-present menace to the agricultural welfare of the islands. In practice it was found unsatisfactory to attempt military quarantine by the insular government. Many times the size of the present establishment of constabulary would be required, and at times the whole of their effort would have to be devoted to the quarantine. The full cooperation of the people themselves in the eradication of rinderpest is the only practical method of quarantine, and by increasing education on the subject, as well as ceaseless efforts to keep the people alive to the danger, this cooperation is gradually coming about. During the year 1914, 3,940 cases of rinderpest were reported in the islands, as against 4:972 cases in the year 1913, 3,091 cases in the year 1912, and 2,516 cases during the period July 1 to December 31, 1911. Act No. 2303 of the Legislature, giving to the provincial boards the responsibility in this matter, invites the fullest assistance from the localities affected, and as followed up by ceaseless vigor on the part of the insular and provincial authorities will, it is believed, greatly improve the situation. In this connection the new system of inoculation adopted has proven of great success in the provinces of Pampanga and Iloilo, and as funds are available will gradually be extended to other provinces. It is noticeable also that the virulence of the disease is gradually wearing itself out and that the proportion of deaths in recent cases is diminishing. Until rinderpest is brought under full and complete control, agriculture in the islands can hardly be restored to the prosperous condition which existed many years ago. Not until rinderpest is eradicated will the people of the Philippines become once more exporters instead of as now inmporters of rice, the staple food supply of a majority of the inha bitants. For more than two years the commanding general of the Philippine del)11artment permitted the use of the Philippine Scouts by the insular gove rt1nmient for the p1urpose of assisting in the animal quarantine, which is imposed in an effort to suppress rinderpest. The Philippine Scouts rendered excellent service, and their work was thoroughly valued by the officials of tie government, and their unfailing cuourtesy and thoughtfulness was appreciated bji the people of thle municipalities in ewhich they served on this never-popular dty as is evidenced by many resolutions from municipal councils thanking th officers aenlisted men of the scouts for their efforts. After a conference by the Governor General, the secretary of public instruction, who has dlirect control of the rinderpest operations, and fficials of the turcau of agriculture and the officers Commanding t-i~ui~ie ndth oficrscommandnaI

Page  35 REPORT OF THE GOVERNOR GENERAL. 35 the battalion of scouts used on rinderpest quarantine duty it was decided, on the recommendation of all, that the scouts be withdrawn inasmuch as after two years of operation it was felt no considerable improvement was noticeable. This, however, was in no way attributable to failure on the part of the scouts to do all that was required of them. The Governor General desires here to make of record the thanks of the Philippine government to the commanding general, Philippine department, and to the officers of his command for the services rendered. The executive secretary is also charged by law with the duty of conducting the new census of the islands. The first and only census was made in 1903, and, owing to confused conditions existing in the islands at that time, it is believed the new census will be more accurate and will show a greatly improved general condition. The finances of the government did not permit of the census being taken, as was hoped, early in 1915, but it is expected that next year the work will be accomplished. Meanwhile the executive secretary and his assistants in the census work have prepared a thorough and satisfactory plan for the census. It is of peculiar importance in the Philippines that a census be taken as soon as possible. Here, as in the United States, the apportionment of popular representatives is based upon population, as are also the distribution of insular financial aid to provinces and the apportionment of the provincial share of the internal-revenue tax. As before stated, the first census is believed to have been imperfect, owing to conditions which prevailed at the time it was taken. In addition to this, without doubt there has been a considerable increase in population since 1903, and such increase is probably greater than the normal increase in the United States, owing to the fact that comparatively greater strides have been made in the past 11 years in the control of diseases which have worked havoc in the Philippine Islands heretofore, while in the United States similar diseases have been well under control for several decades past. The executive bureau has likewise taken an active part in the foodproduction campaign made necessary not only by the temporary paralysis of commerce incident to the breaking out of the European war but also by rinderpest, locusts, flood, and finally the great drouth of 1914. The bureaus of education, constabulary, and agriculture conducted an active campaign to induce the people to plant quickgrowing food crops, which was attended with most satisfactory results. One of the most important works of the executive bureau is the reassessment of land values throughout the provinces for the purpose of taxation. Most gratifying results have already been shown, and the revenues of the provinces and municipalities will be greatly increased in consequence. In a large proportion of cases land had been left unassessed or had been assessed far below its proper value. The total number of taxable parcels registered in the tax registers in the Philippine Islands on January 1, 1914, was 1,953,032, as against 2,151,627 on December 31, 1914, an increase of 198,595 parcels. The total number of exempt parcels in the Philippines on January 1. 1914, was 476,645, as against 488,475 on December 31, 1914, an increase of 11,830.

Page  36 36 B~EPORT OF THE PHILIPPINE COMMISSION. 36 The total valuation of taxable real property carried 'in the tax registers in all the provinces of the Philippine Islands on January 1, 1914, was T3O1,895,852. These figutres were increased on December 31, 1914, to 11-370,13~q2,704. The total. valuation of exempt property on those'dates was V1157,888,931 and fPTO,405,739, respectively, an 'increase @f 1 G8,236Q852 in taxable property and 1*12,51G,8O8 in exempt property. The foregoing figures do not include the city of Manila, the department of Mindanno and Sulu, the provinces of Palawan, Mindoro, Nueva Vizcaya, JBatanes, and the Mountain Province where the g-eneral land-tax laws are not applicable. rThe additional annual revenue resulting from the increase of NIMS,236.852 in taxable valuation will, beginning with the year 19l15, be as follows: Provinces: General fund ----- ------- - -- — p170, 842. 12 Road and bridge fund ------------- 85,421.-06 __________P256, 263. 18 Municipalities: (CXenoend fund ---------------— 170,842. 12 School f und --- —-----------— 170, 842. 12 - - 341,084. 24 Total --- —--------------------- - 597, 947.42 Another feature of the work of the executive bureau is the supervision of loans of the insular trust f unds, namely, the insurance fund, the public works bonds sinking funds, the friar lands bonds sinking futnd, and the gold standard fund. Loans from the first three f unds bear' interest at the rate of 4 per cent per annum; those f rom the gold standard fund at 3 per cent per annum. The law permits the lending of the above funds to provinces and municipalities for permanent public improvements, which are construed to be, market buildings, slaughterhouses, municipal buildings, municipal and provincial school buildings, provincial capital buildings, bridges, artesian wxells, waterworks, and sewers, and also, expressly, cadastral survey work. During the year 1914 the repayments of loans previous ly granted, exc'luding interest, amounted to 1*1,056,873, and new loans in the amount of P1149O,OOO were granted during the year for the following purposes and in the amounts shown: Provincial:Roads and bridges --- —----------- s ~PP469-, 000 Provincial schools~ --- —--------— # _ 25,000 Provinciaol capital buildings ~~ --- —------- 134. 000 Provincial telephone system ~~ --- —------ 7, 000 Total provincial — - - - - - - - - - - - - - - - - - - - Municipal1: Market b)uildings, and slaughterhouses ~ ~ ---- P526,000 School buildings --- - -- - - - -- - - - -- - - - 66, 500 Munticip ii " presidencies --------------- 13. 000 Waiterworks --- —--------------- 85. 000 Brldgs --- —----------------- 17,800 Tot I municipal -- - - - - - - - - - - - - - - - - - - - City of Manila: For public works and imnprovements in the city of Manila ---?635, 000 707, 800 147,200 Grand total ----------------------— 1,490,000

Page  37 REPORT OF THE GOVERNOR GENERAL. 37 On January 1, 1915, there was available in the trust fund for loans P627,038.82, and during the year 1915 the repayments of loans, excluding interest, will amount to P1,145,170.30. Each of the projects for which loans are made is carefully investigated and must be favorably recommended by the executive office before the loan is made. The report of the executive secretary also shows the gradual filipinization of the 43 provincial and 757 municipal governments, which in the case of the latter is almost complete. In 1914 there were 37 American and 134 Filipino provincial officials, as against 40 and 113 in 1913, while in municipal offices there were 116 Americans and 13,272 Filipinos, as against 121 and 12,384 in 1913. Three hundred and eighteen administrative cases against municipal officers and justices of the peace were handled by the bureau in 1914, and the action taken by the executive is'shown in his report. Eight hundred and nineteen municipal presidents were in office in 1914, and 12 were found guilty of offenses requiring removal. Of the 733 justices of the peace, 13 were tried and removed; and of the 541 auxiliary justices of the peace, 4 were tried, of whom 3 were removed and disqualified. Of the 634 municipal treasurers, only 1 was tried and removed. The report of the executive secretary shows that the expenditure by the insular government in the form of insular aid to the provinces was increased to the amount of approximately P1,000,000. This is in large measure due to the reduction by the Legislature of the amount of surcharge by the bureau of public works to the provinces from 6 to 3 per cent in the appropriation bill of January, 1914. From the executive secretary's report it appears also that the expenses of government of the 36 provinces of the islands increased in all about P1,000,000 in 1914 over 1913. It is found upon examination that this increase is in part explained as follows: (a) New cost of revision of land assessments, approximately 1300,000. (b) Increased participation of both provinces and municipalities in the extension of district health organizations. (c) Increased participation in the expense of public education. (d) Administrative expense, P131,000. A further apparent increase is due to a change in subprovincial bookkeeping. There are six subprovinces in the Philippine Islands attached to regular provinces for administrative purposes, it being much more economical to administer them in this way than for each to have a complete set of officials. Under the law 30 per cent of the collections in each subprovince go to the province to which it is attached in payment of the expenses of administration. Heretofore when taxes were collected 70 per cent was credited directly to subprovincial funds and 30 per cent directly to the provincial funds of the province to which attached. Under changed bookkeeping metho(ds prescribed by the insular auditor the entire amount collected in [ subprovince is now first credited in toto to subprovincial funds and then the amount due the province is transferred, thereby constituting a payment which appears as a disbursement. This is, of course, balanced by a corresponding amount being taken up by the province

Page  38 38 REPORT OF THE PHILIPPINE COMMISSION. as a receipt. The practical result is that while the disbursements are increased a certain amount, the receipts are also increased exactly the same amount, and there is no increase of actual expenditures for 1914 over the amount expended in 1913. BUREAUS OF EXECUTIVE DEPARTMENTS. The other bureaus and offices of the government are assigned to the supervision of the several secretaries of department and their operations for the period under discussion are fully set forth in the reports published herewith. It is necessary, therefore, only to make special reference to certain matters calling for particular attention. DEPARTMENT OF THE INTERIOR. Under the secretary of the interior are the bureaus of health, lands, science, forestry, and weather. BUREAU OF HIEALTH. This is one of the most important divisions of governmental work and one in which the public, both in the United States and in the Philippines, has evinced the most interest. Inasmuch as before the arrival of the secretary of the interior on March 2, 1914, the undersigned was acting secretary of the interior, he was able, both during that period and subsequently, to come in close touch with the development of health work in the islands. Dr. Victor G. Heiser, for so many years the director of health, had, as elsewhere mentioned, left the insular service for a wider field of work with the Rockefeller Flondation, and upon his recommendation his fellow member of the United States Public Health Service, Dr. John D. Long, was appointed director of health. It is confidently expected that Dr. Long will ably carry on and extend the work initiated by Dr. Heiser. The bureau has under preparation, moreover, extensive plans for new health and sanitary work in the provinces, which will receive an increasing amount of the time and attention of the director. Under the supervision of the bureau of health and the bureau of quarantine service Manila has become one of the most healthful cities in the Far East, and outbreaks of the cholera and the plague, which are epidemic in certain neighboring countries, are speedily and successfully handled by the health authorities at Manila. Many of the fatal diseases so common in the United States are infrequent or almost unknown in the Philippines. The Philippine General Hospital takes its rank with the finest institutions of its kind elsewhere, and the Legislatlure has shown every interest in appropriating for its work and for health work in general. Vaccination is general throughout the islands, and smallpox, which used to cause 30,000 deaths annually, is ow almost nknown. although a small outbreak occurred in the province of Saimnar in 1914. The time has now come, having the support of the p le who are accustomed to and admire the efficiency of the health work in the city of Manila. for a vigorous extension of sinilar health measures throughout th.e islands. A prime factor in this campaign is the rapidly increasing number of artesian

Page  39 REPORT OF THiE GOVERNOR GENERAL. 39 wells, so that already a majority of the municipalities are enjoying a good water supply. This is not only a preventive of active disease, such as cholera, but of many slower and less frequently fatal infections of the intestines. In some municipalities where artesian wells have been drilled the death rate has been observed to drop 50 per cent. A system was begun and put into practice during 1914 by which quinine was sold at cost price by the municipal treasurers, it having been found by experience that inferior quinine at high prices had exposed the people to the ravages of malaria. Another health measure was the passage by the Legislature of a bill prohibiting the publication of misleading advertisements, by which it is hoped the use of fraudulent patent medicines may be prevented. During the cholera epidemic in the Luzon provinces in the summer of 1914 excellent assistance was rendered by Dr. Edward Earl Munson, United States Army, who, in the absence of Dr. Heiser on vacation, acted in an advisory capacity to the secretary of the interior on health matters. He received the most thorough support from the administration in all of his requests for assistance. It is believed that the health officer should be the first man to follow the establishment of peace and order in the non-Christian sections of the islands. By this means the confidence of the people is more easily obtained and a firm basis established for the future work of civilization. It is hoped, therefore, that the Legislature will continue its enthusiastic support of health work by furnishing adequate and constantly increasing funds for the spread of the knowledge of sanitation among the non-Christian peoples. The greatest problem which lies before the bureau of health today is the prevention of the unnecessarily high rate of infant mortality. Over 60 per cent of the infants born in the Philippines fail to reach the age of 5 years, many of them dying of probably preventable causes. This is not only distressing to the sense of humanity but it is a serious economic weakness in the islands. The island of Java alone, smaller than the island of Luzon in territory, contains more than three times the population of the entire Philippine Islands. When the government shall have solved the problem of infant mortality it will have conferred the greatest blessing possible upon the Filipino race. 'IiHE MOUNTAIN PROVINCE, NUEVA VIZCAYA, PALAWAN, AND MINDORO. The work of the secretary of the interior in the Mountain Province maintains and continues with notable success the excellent foundation laid by former Secretary of the Interior Dean C. Worcester. Peace and order among the people of the Mountain Province are most satisfactory; increasing numbers of non-Christians traveling from one subprovince to another and to the plains below clearly demonstrate a growing sense of confidence and security; the construction of trails and school buildings and of irrigation works continues; a marked advancement in education and sanitation is recorded for the year 1914; and particular interest has been taken in agricultural and industrial development. It is impossible to speak too highly of the work of the personnel of the Mountain Province, who at their lonely stations and generally upon their own initiative

Page  40 40 REPORT OF THE PHILIPPINE COMMISSION. and resources are called upon to deal with the vital problems of daily life among a large and but partly civilized population. That the work of government and civilization is being carried on by them without bloodshed and with so little friction, marks a notable record in the work of the American people in the Philippines. Particular attention is invited to the work accomplished by the secretary of the interior and his staff in promoting friendly relations between the people of the mountains and the Filipinos of the plains. By this policy the isolation in which the mountain people were left for so many generations will gradually be removed and the way opened for a more rapid spread of civilization. By this means, also, the distrust heretofore reported to exist between the hill people and the civilized people of the plains will be eliminated and a feeling of mutual regard and respect will be engendered. It is obvious that common feelings of nationality and common sense of responsibility among the peoples of the Philippines can only be secured by bringing them into association and contact with each other; maintaining and strengthening the barrier which has in the past been erected between them will not serve. The leper colony at Culion continues to be improved, and additional facilities have been devised for the comfort and recreation of the colonists. The leper problem has received the most earnest attention of the secretary of the interior, and a recent report from Dr. Heiser and Dr. Mercado indicates that a specific for leprosy may have been discovered. BUREAU OF LANDS. Eight years, on an average, has up to the present time been required for securing a patent on a homestead on public lands of the Philippines. Some part of this delay has been correctly traced to administration, and reforms have now been made which will shorten the period considerably. Nevertheless, it is obvious that the work of homesteading is proceeding too slowly for the general public interest. Amendments to the public land laws are essential, and can be made by the Philippine Legislature if given that power, as proposed in the pending bill in Congress. Aside from the legal or administrative difficulties of securing a homestead right, the settler or claimant, being upon the public lands, is known to be often hampered bIy the large proprietors of his immediate vicinity. Everythingl is being done and should be done to counteract this evil and to encourage the people to take out homesteads and show them their rights in the prem ises. The administration of the collection of the rents received from the friar lands has never been entirely satisfactory to the government, the bureau of lands being in arrears from year to year in the following amounts: In the year 1909, when the sales began, the delinquencles were 'P99,000; in 1910 this was reduced to p90,000. In 1911, owing to droulght, the bureau fell -210,000 behind, making a total delinquency of p300,000. In 1912, again owing to drought, it fell i976,000 still further behind, increasing the total delinquency to *5 76.000. In 1913, which was a year of exceptionally good crops, it collected an amount equal to the current obligation, and reduced

Page  41 REPORT OF THE GOVERNOR GENERAL. 41 the accrued delinquencies by P36,000 to a total of P540,000. In 1914, which has been a year of exceptionally bad crops, it has again fallen behind to the extent of 1P280,000 (about the same amount as 1912), making a total of accumulated deficit for all these years of 9820,000. While many of these arrears are entirely unavoidable and, indeed, based upon conditions which are impossible to escape, such as droughts, floods, insect pests, and other causes for the failure of crops, it seems to the undersigned that there may be some radical defect as an underlying cause of delay in the collection of rents. At the time that the friar lands were purchased by the government a question of apparent great political significance was solved, and it is probable that the price paid was more liberal than would have been the case in a strictly business undertaking. Therefore, to fix rents and sales prices with a view to early reimbursement of such a capital investment may possibly have aided in defeating the rapid taking up and cultivation of these lands. There is ground for believing that the rents and sales prices in some places are too high and that arrears are not to be avoided unless some more equitable basis of fixing them can be brought about. The matter is being investigated and considered by the secretary of the interior and the director of lands. A solution will probably be found in extending the term of payment, so that the annual installments will be decreased. Another subject which calls for comment is the work of the cadastral survey. The director of lands has estimated that it will cost?50,000,000 to complete the cadastral survey of the islands. Under the law the insular government and the provincial governments assist the landowner by the payment of a portion of the cost of survey and a loan for most of the balance. Additional facilities were given by Acts Nos. 2344, 2356, and 2368, passed by the Philippine Legislature on February 28, 1914, by which the trust funds of the government were made available for loans to provinces and municipalities for the payment of their shares of the cost of cadastral surveys. Nevertheless, the work is not proceeding with sufficient rapidity, and the bureau of lands is studying the question of offering further facilities to landowners to secure cadastral titles. While the system of cadastral survey was first initiated in 1910, the law was passed in 1912, so that an accumulation of cases was suddenly thrown on the courts. The reorganization of the courts of first instance is intended to expedite the registration of land titles by taking the work away from five judges in the court of land registration and distributing it among the judges of the courts of first instance. This new arrangement was in force for only the last six months of 1914, but the results so far indicate the necessity, in several provinces, of greatly increased attention to cases of land registration by judges of first instance. The matter becomes one of great importance when judged f'rom the point of view of the borrowing capacity of the landowner. A man with a cadastral title can secure loans by mortgage from the Agricultural Bank or from other sources of capital and thus obtain tte money to extend his agricultural operations. Those, however, vWho have not yet been able to obtain a cadastral or other valid title are at the mercy of money lenders, who extort from 30 to 60 per cent annual interest on their loans.

Page  42 REPORT OF THE PHILIPPINE COMMISSION. 42 The bill which became Act No. 2508 of the Legislature of December, 1914, authorizing the establishment of cooperative agricultural associations under government supervision for the purpose of lending money to the farmers, after the model of similar rural-credit associations in Germany and Italy, can hardly become of much effect unless an antiusury law be passed by the Legislature. It is recommended that the Legislature further encourage the lending of money to the farmers under governmental direction. If the farmers of the Philippines are to await the completion of the cadastral survey, at the present rate of progress the work will be of little practical use to the majority of the men of this generation. In any event the capital of the Agricultural Bank should be largely increased by the Legislature; if possible by transfer from other capital accounts, rather than by appropriation for current revenues. Vast areas of the public lands in certain sections of the islands are uninhabited, while other portions of the Philippines are overpopulated. The government is successfully undertaking the transfer of numbers of persons to the unoccupied sections of the Philippines under a system of agricultural colonies, affording them facilities for starting life anew in the sections to which they have been moved. A new experiment was started in 1914, when the agricultural colony at Morungan, Mindanao, was founded, with P100,000 of government aid by way of loans, to be repaid in convenient periods. Some 46 unemployed Americans, former employees of the army, navy, or insular government, with their Filipino families, were colonized under the direction of the bureau of agriculture at Momungan, halfway between Overton and Keithley, in a climate adapted to outdoor labor by Americans. The first year of operation indicated unqualified success, and measures have been set on foot to found another similar colony consisting of former employees of the quartermaster department of the army and others now unemployed with Filipino families dependent upon them. The agricultural colonies at Cotabato, composed of Filipinos selected chiefly from among the densely populated districts of Cebu, experienced a complete crop failure on account of the drought in 1914. BUREAU OF SCIENCE. The work of the bureau of science is of great importance to the people of the Philippine Islands. The problem for administrators is how to turn the results of scientific investigations into practical daily use. Research work of an ethnological nature or of interest solely to the scientific world should be undertaken and conducted by private enterprise rather than by governmental agencies. The most valuable work which can be done by the bureau of science is in connection with agricultural development and sanitation. Particularly in relation to its bacteriological work the bureau of science receives and should receive the complete support of the government. In its agricultural research work there appears to be some duplication of work by the bureau of agriculture, and a plan is being considered for consolidation of this feature of the work of the bureaus of science, agriculture, and education and the University of the Philippines.

Page  43 REPORT OF THE GOVERNOR GENERAL. 43 BUREAU OF FORESTRY. The excellent and solid development of the forest resources of the Philippines is a monument to the work of the bureau of forestry. Increased appropriations were given this bureau in 1914 and again for the year 1915, upon the well-established principle that each increase in the appropriation increases the revenues received from the bureau. By giving, in December, 1913, to the Kolambugan Lumber Co., in Mindanao, a concession to work the forests there, the government has opened up a new prospect of establishing the more valuable Philippine lumber in the world markets. The only point at which the work of the bureau of forestry might invite criticism under the present laws is that at which the bureau touches upon the administration of the homestead laws. It is recommended that a liberal interpretation of the law be made by the bureau in order to encourage homestead settlers. During the year the Department of Commerce of the United States has called our attention to the increasing demand for rattan in the United States and the fact that the Philippines are the greatest natural home of the rattan growths. In fact, it seems probable that a considerable part of the " Borneo rattan" of commerce really comes fron the Philippines. An investigation by the bureau of forestry discloses the fact that a steady and growing demand awaits the enterprise of business firms in the islands in organizing the collection and transportation of rattans. The industrial shops in Bilibid will also furnish a considerable demand for home consumption. Minor forest products, such as gum kauri and damar, and the oil from the nut of the lumbang tree, known commercially as China nut oil, all of which are used in large quantities in the varnish trade in the United States, are found in abundance in the Philippines and await business enterprise here. Well-organized and well-managed lumber companies in the Philippines enjoy to-day a demand market which exceeds their power to supply. A return to the former system of collection of the forest revenaes is advocated, by which the bureau of forestry itself assessed and collected its income, following the custom in the United States and other countries. This would put the authority and responsibility in the hands of trained foresters and would undoubtedly increase the revenues of the Government. WEATHER BUREAU. Under the direction of Father Algue, S. J., the weather bureau continues to be the most scientific and useful institution of its kind in the Orient. The weather bureau of the Philippine government is one of the greatest humanitarian agencies in the Far East. It is the sole source of advice of approaching typhoons for China, Hongkong, and the islands of the Asiatic archipelago, and to its cabled warnings of approaching typhoons may be attributed the saving of numbers of lives on the high seas of the Orient.

Page  44 44 REPORT OF THE PHILIPPINE COMMISSION. GAME LAWS. Mention should also be made of the establishment by the secretary of the interior during 1914, pursuant to law, of closed seasons for the protection of the game birds and animals of the Philippines, a measure rendered necessary by the rapid depletion of the game of the islands. DEPARTMENT OF COMMERCE AND POLICE. After the resignation of Acting Secretary of Commerce and Police Frank L. Branagan, in October, 1913, and until the arrival of Secretary Clinton L. Riggs, on February 23, 1914, Commissioner Jaime C. de Veyra acted as secretary of commerce and police. The department of commerce and police comprises the following bureaus: Constabulary, public works, posts, coast and geodetic survey, and labor. PHILIPPINE CONSTABULARY. Chanlges in the personnel of the constabulary have already been discussed herein above. The Legislature dealt most liberally in the appropriation for the constabulary in the appropriation bill of January, 1914, and again in 1915. A constabulary academy was founded at Baguio January 31, 1914, and has proved of much service in securing officers for admission as third lieutenants. The esprit of the constabulary corps continues to be most excellent, and officers and enlisted men alike, both in their military and civil duties. are entitled to the highest commendation. Many of the officers of the constabulary are detailed on special governmental work throughout the islands, and in the opinion of the undersigned the constabulary appropriation should be reimbursed for the salaries of these officers who are not occupied in strictly constabulary duties. The Legislature has failed to pass an act providing for a retirement and pension fund for the constabulary, but a voluntary fund has been established by an assessment upon the pay of the officers and men, and under the operation of this, in addition to several of the enlisted men, two of the highest officers of the constabulary were retired for ill health in 1914 on a very generous pension, limited, however, to a five-year term. A great deal of time and attention of the constabulary has beer devoted during 1914 to the detention and apprehension of the agitators of the so-called Ricarte movement. The matter is discussed at length in the report of the secretary of commerce and police. On Christmas eve, 1914, a demonstration was made by the Ricarte organization, resulting in the apprehension of a number of persons by the police in the city of Manila and by the constabulary in an adjoining province. The participators in the Ricarte disturbances were among the most ignorant and low class of persons, and no one of importance was found to be concerned. They possessed no firearms and inflicted no personal injuries, and those inManila surrendered immediately upon the firing of three shots in the air by the police. From his safe position in Hongkong Ricarte has for several years past been appealing to his ignorant followers in the Philippines to rise against the government. At the same time Ri

Page  45 REPORT OF THE GOVERNOR GENERAL. 45 carte agents collect considerable sums of money from these deluded persons in the Philippines by the sale of " commissions " in his socalled army at prices ranging from 50 cents to $5, and this seems to be the principal motive of the Ricarte organization. It appears probable that the demonstration on Christmas eve came as a result of the impatience of the persons whose cupidity had been aroused by Ricarte agents and who resented an endeavor to postpone again the date fixed for disorder and robberies. A similar so-called uprising occurred in Zambales early in September, 1913, and vigorous and successful attempts have been made by the constabulary to bring to trial those responsible for these abortive disorders. The overt act in the botanical gardens and in Rizal Province was undoubtedly due to the rash and uncontrollable leadership of one Timoteo Cariaga, a fugitive from justice on the charge of homicide, and naturally a desperate man. His followers were apparently misled by promise of support from sources from which support was not forthcoming and had not at any time been possible. BUREAU OF PUBLIC WORKS. A considerable reorganization and reduction of the force of this bureau was undertaken in 1914, as elsewhere detailed. Nevertheless the bureau was able to carry on with great efficiency the public works program of 1914 and likewise to undertake the large program of public works for 1915, with one exception the largest in the history of the Philippine government. Road building of the most scientific kind is rapidly extending throughout the islands and linking up the sections of first-class road from province to province. Attention is paid to the needs of the islands as a whole, and special stress is laid upon the opening up of country agriculturally productive or susceptible of immediate agricultural settlement. Immediate beneficial results are noticeable. The most notable new road construction beside the opening of the Manila North Road through the potentially rich lands of Nueva Ecija, was the initiation of the building of the Naguilian Road to connect Bauan on the west coast of northern Luzon with Baguio. The famous Benguet Road connecting the summer capital of Baguio with the plains has been the subject of much controversy. Originally projected at an estimated cost of PP150,000, the total cost of construction of the 45 kilometers was eventually nearly *4,000,000. The Benguet Road was opened to traffic in the latter part of the fscal year 1905 and since that time the cost of maintenance and of restoring the road after the storms ran generally between P160,000 and 9350,000. The reason for the high cost for maintenance and repair was that the Benguet Road follows the course of a deep canyon down which the tropical rainfall is precipitated in enormous volumes, frel'uently causing the river to rise 50 to 60 feet from its bed and tearlg out bridges and engulfing the road. In November, 1913, a committee of the Commission, composed of Messrs. Singson and de Vevra, made a careful investigation of the route and recommended the construction of what is commonly known as the Naguilian Road, to replace the Benguet Road and avoid the necessity of the large annual appropriations for repair of the latter. The Naguilian Road

Page  46 46 REPORT OF THE PHILIPPINE COMMISSION. lies for the most part near the top of a ridge, and although slightly longer than the Benguet Road will be subject to far less destruction by the elements. Two bridges are planned for the Naguilian Road, one over the Naguilian and one.over the Ripsuan River at the foot of the mountains, but it-is not intended to undertake the construction of these for the time being, since collapsible or floating bridges will serve the purpose of the traffic during the rainy season. In accordance with the recommendation of Messrs. Singson and de Veyra the Commission appropriated P100,000 for the new work necessary, which was commenced in February, 1914. In March, 1914, an additional 1135,000 was appropriated and in September, 1914, P60,000; so that during the fiscal year 1914 it was estimated that about P300,000 had been spent on the road, which will be completed during the present year. Meanwhile the Benguet Road has been kept in safe condition for the traffic from Baguio, but the only repairs now made are of a provisional nature. Upon the request of the residents of the city of Baguio the government initiated the collection of tolls on the Benguet Road to pay for the cost of keeping the bridges there in safe condition until the time came to divert the traffic to the Naguilian Road. At the present time the Benguet Road is maintained entirely through toll receipts. If the Benguet Road were to be kept open permanently, there would be necessary in the very near future a heavy expenditure for new bridges. It is not believed that the traffic of Baguio will necessitate more than one road, so that the Naguilian will soon replace the Benguet Road. BAGUIO. In a discussion of the Naguilian road the subject of the use of Baguio as a summer government presents itself. In the winter of 1914 the Legislature discontinued the appropriation for transferring the bureaus of the government to Baguio during the heated period. This was done to save the annual expenditure averaging P170,000 customary for the Baguio exodus. At the same time the teachers' canmp, numbering about 350 teachers, was held as usual in Baguio for about six weeks. At no time in the past had the whole government force been transported to Baguio, and at no time had the whole Fersonnel of the insular government shown a desire to go to Baguio. Expense, domestic arrangements, and other elements had entered in, as well as the fact that the high altitude of Baguio (4,500 feet) did not agree with the health of all, though beneficial to the majority. Nevertheless, the employees are still encouraged to take their 28 days' vacation leave each year in Baguio if they desire. TThe future of Baguio as a health resort seems assured, and it is confidently believed the fame of Baguio will increase and will attract a growing number of visitors from the islands and from near-by col)onies as the years go on. The construction of the NaguiHan road and the pending construction of the railroad to Baguio will still further reduce the cost of living there and facilitate the transportation of visitors. The finances of Baguio are now in an improved condition and the primary ex.pendit.es for public works have been satisfactorily completed. It is believed that further public improvements, in addition to the construction of an adequate water

Page  47 REPORT OF THE GOVERNOR GENERAL. 47 supply, should comprise improved roads, trails, and telephone systems to the outlying districts of the Mountain Province. Not only as a health resort, but also as the commercial capital and center of distribution of the Mountain Province, Baguio will soon be independent of the need of insular-government aid. Various measures have been under consideration for the encouragement of the tourist traffic of the Philippines. The enormous economic benefit to Japan, for example, of the tourist trade encourages us to wish that the Philippines might have their share. The natural beauties of these islands, their romantic history, and their great modern development should engage the attention of all tourists who visit the Orient. The problem has been how to care for the transportation and comfort of visitors. The Manila Hotel now supplies modern accommodation in the capital city, while the linking up of the adjacent provinces by first-class roads already affords or soon will give opportunities by automobile for visiting Pagsanhan, Atimonan, Taal, Sibul, and other famous scenic or health resorts. The government should offer assistance for the construction and maintenance of small but comfortable hotels at these and other points. Particular attention is invited to the unrivalled system of trails in the Mountain' Province, most of which are accessible to travel by vehicle or by horse, while comfortable rest houses are being rapidly constructed throughout the mountains. The road program of 1914 was normal, but owing to the economies necessary that year the construction of insular public buildings was restricted. By means of loans from insular trust funds, however, a practically normal building program was possible in the provinces and municipalities. The program for 1915 contains large provisions for insular public buildings. The work of drilling artesian wells proceeds as rapidly as the equipment of the bureau permits, as does also the construction of waterworks for the larger cities of the Philippines. Iloilo stands most in need of a modern waterworks, but the engineering difficulties entailed have up to the present time prevented the adoption of a plan for this city. At the present writing, the springs and upland water courses of Guimaras Island appear to be the most feasible source, by piping 3 kilometers under the straits to Iloilo. Generally speaking, pure water is the most important benefit that the bureau of public works can give to the population of the Philippines, and the bureau has been well supplied with funds by the Legislature for this purpose. Irrigation work on a large scale has been suspended pending the adoption of a comprehensive plan throughout the islands. Large irrigation projects can not be undertaken, of course, without a bond issue, but irrigation by small cooperative associations, aided by the government, may solve the more pressing problems. BUREAU OF POSTS. The bureau of posts is constantly extending its service into new communities and is therefore steadily increasing the number of its (imployees. The chief problem of the bureau at the present time s the substitution of wireless stations for the present submarine cables, which are costly to maintain and subject to frequent inter

Page  48 48 REPORT OF THE PHILIPPINE COMMISSION. ruption. It is recommended that an interisland wireless system be installed as rapidly as possible. BUREAU OF COAST AND GEODETIC SURVEY. The work of this bureau is paid for 65 per cent by the United States Government and 35 per cent by the Philippine government. It is of the utmost importance to the commerce of the islands as well as to foreign commerce, and Congress generously contributed its share for the years 1914 and 1915. BUREAU OF LABOR. In addition to the maintenance of four free employment agencies the bureau of labor is charged with the duty of looking after the welfare of laborers in the Philippine Islands. During 1914 the bureau investigated 10 strikes, all of which occcured in Manila and vicinity, and was able to obtain amicable settlements of 4 of them. The bureau of labor also investigates the claims of laborers' wages due them and alleged not to have been received, as well as other grievances against employers. Where unable to arrive at a satisfactory adjustment the bureau assists the laborers to prosecute their claims in court. The European war has bad but little effect upon the employment of laborers in the Philippines. Although by September 1, 1914, out of a total of 44,926 laborers employed in the various commercial and industrial concerns of the islands, 1,448 had been dismissed, by October 1, 1914, there were 4:5,861 laborers employed in such establishment-an actual increase over the number employed before the war. The bureau of labor is directed entirely by Filipinos, and has been conducted in a very satisfactory manner. DEPARTaMENT OF FINANCE AND JUSTICE. This department comprises the bureaus of justice, customs, internal revenue, and the treasury. BUREAU OF JUSTICE. The report of the secretary of finance and justice covers fully the work performed by the courts of the Philippine Islands during the period under consideration and the operation of the bureau of justice. BUREAU OF CUSTOMS. The customs revenues of the Philippines showed a decrease of 1,989,059.10 during the year 1914, as compared with 1913. This is due chiefly to two causes. The Underwood tariff law of October 4, 1913, abolished the export tax on Philippine products, which explains f1.32.5,150 of the decrease above mentioned. The other element of chief importance is the European war, which for the first few weeks after the outbreak entirely paralyzed the foreign commerce

Page  49 REPORT OF THE GOVERNOR GENERAL. 49 of the Philippines. During the months of August, September, and October, 1914, there was a marked decrease in customs collections in consequence, but subsequently our foreign trade revived and began to run close to the normal level again. Another element which accounts for the decreased customs duties in 1914 is the decreased importation of rice, which indicates a prosperous condition in the rice section of the Philippines during the year under discussion. The imports from the United States, which are duty free under the law, increased proportionately during the year 1914, so that they now represent 50 per cent of our importations, and it is expected that this figure will further increase during the year 1915. The operation of the bureau of customs was carried on during the calendar year 1914 at a total cost of P1,059,275.70, which is 0207,539.54 less than the total expenditure for similar services during 1913. The foreign-carrying trade showed a slight decrease in the number of vessels under 1913, but the coastwise shipping trade showed increased activity during the year. The scope of the work performed by the bureau of customs was enlarged by the addition of the division of vessels and lighthouses and the marine railway and repair shop of the former bureau of navigation. The divisions of vessels and lighthouses maintenance of the former bureau of navigation were carried on without any loss of efficiency at a reduction in cost from *1,421,477.58 in 1913 to P999,581.10 in 1914. In this connection it is believed that the expense of maintenance of the large cable ship Rizal is an unnecessary burden on the treasury, and arrangements should be made by the government to dispose of this vessel and secure a smaller vessel of lighter draft and higher speed. BUREAU OF INTERNAL REVENUE. The total amount of internal revenue collected during the year 1914 was P'22,550,109.37, as compared with the total collection during the calendar 1913 of P'22,184,901.23, an increase of P365,208.14. Of this the insular government's share during the year 1914 was I10,642,143.25, as compared with P110,334,274.13 in 1913. During the 1913-14 session of the Philippine Legislature Act No. 2339 entitled "An act revising and consolidating the laws relative to internal revenue" was passed. This act was the first of the codes prepared by the code committee presented to the Legislature and was promptly passed by it. It is believed to be a model of taxation law in form and arrangement. In the main, the rates of taxation were not changed by that act. During the latter part of the year 1914, however, the decrease in customs revenues hereinbefore mentioned presented to the administration the necessity of new sources of revenue to maintain the government, especially since no reserve surplus in the treasury was available for the emergency. Thereupon on December 23, 1914, the Legislature passed Act No. 2432, effective January 1, 1915, imposing increased additional internal revenue taxes upon an estimate that ap)proximately 15,000,000 of additional internal revenue would be needed to meet the requirements of the Government during the year 1915. Act No. 2432 imposed new taxes as follows: An ad valorem tax of I1 per cent on the gross output of mines. 8329-15 ---

Page  50 50 REPORT OF THE PHILIPPINE COMMISSION. A specific tax of from 1i to 4 centavos per liter of volume capacity on motor spirits and refined or manufactured mineral oils. A specific tax of P1 per metric ton on coal. A privilege tax on opticians. A privilege tax of P8 per annum on manufacturers and wholesale dealers in motor spirits, mineral oils, and lubricating oils. A privilege tax of I20 per annum upon retail dealers in leaf tobacco. Increased taxes were imposed as follows: Percentage tax on business from one-third of 1 per cent to 1 per cent, except in the case of common carriers upon whom a tax of 1 per cent was already imposed. A fixed privilege tax of P8 per annum upon persons subject to the percentage tax. An additional tax upon proprietors of cockpits of 25 centavos for each cockfight. The tax on owners of race tracks was increased from P60 to P300 for each day on which races are run. The tax on distilled spirits produced from palm sap or cane was increased from 25 centavos to 35 centavos per proof liter. The tax on beer and other fermented liquors was increased from 4 centavos to 6 centavos per liter. The tax on smoking tobacco was increased from 48 centavos to 60 centavos per kilogram. The tax on cigars was changed from P2, P4, and P6, respectively, according to the wholesale price, to a flat rate of P6 per thousand for all cigars. The tax on cigarettes weighing not more than 2 kilograms per thousand was increased from n1 to P1.20 per thousand. Section 26 of Act No. 2432 and amendments thereto limited the new and increased taxes to the calendar year 1915, thus indicating clearly the emergency nature of the legislation. The cost of operation of the bureau of internal revenue during the year 1914 was P551,795.10, as compared with 1600,044.26 for the fiscal year 1913 and 1644,109.24 for the fiscal year 1912. The report of the collector of internal revenue shows by an analysis of the business percentage tax collection that despite the war about the same volume of business was transacted in 1914 as duling 1913. These taxes amounted to 2.,175,566.11 in 1914, (:s compared with P2,140,936.75 during the preceding year. Particular attention is being given by the bureau of internal evenule to increasing the export of Philippine cigars and just before the preparation of this report the collector of internal revenue left on a journey to the United States to further these plans. General trade conditions in the islands have been affected, first, by the world-wide depression of 1912-1914 and later with increased violence by the European war. During the two years preceding the war extensive restrictions of credit were observable in the United States, to some extent traceable to the calling in of investments by the bankers of European countries, apparently with a view to future possible warlike preparations there. ni'1 _, t re possible warlike prep.rat'ons there..Upon the outbreak of the war, and for the month of Auiigust especially, complete paralysis of the forei.

Page  51 REPORT OF THE GOVERNOR GENERAL. 51 trade of the islands resulted. Gradually the credit facilities improved and commerce resumed a more normal volume. The complete tying up, however, of the enormous fleet of German merchant vessels was a heavy blow to Philippine commerce, since an increasingly large portion of our commerce was with the German Empire and possessions. Considering the severe effects of the war upon the commerce of other countries it may be said, however, that the Philippine Islands are comparatively fortunate. Some apprehension existed during August and September of 1914 as to the markets for our staple products and the prices of copra and hemp fell for a short time to the lowest figures known in a generation. But a demand soon made itself felt from the United States and from some of the belligerent countries for our products and copra and hemp rapidly resumed a price but little below the average. The closing of the world's markets to European sugar created a shortage in the sugar supply and the high prices which resulted in the New York market are a source of great benefit to the sugar planters of the Philippines. While the high price of to-day is no doubt temporary, for some time to come the sugar producers of the Philippines will enjoy considerable prosperity. The government in 1914 renewed the deposit in the Bank of the Philippine Islands properly guaranteed, made first in 1913, of the sum of 12,000,000 to be lent by the bank to the sugar producers at a rate of interest not exceeding 8 per cent. This was for the purpose of enabling the planters to recover from the effects of the drought of 1912 and to finance their large crops. In 1914 the increase in sugar exports in the Philippines over the preceding year amounted in value to over P8,000,000, which should be largely increased in 1915, during which year a similar sum of P2,000,000 will be deposited in the bank to aid agriculturists. During the year the sum of P600,000 was also deposited with the International Banking Corporation to be lent to the Mindoro Co., the deposit being guaranteed by the bank, which in turn is guaranteed by the company's assets, estimated at more than P4,000,000, already invested in the Philippines. Copra production, although of rapidly increasing volume, would be more profitable to the planters if the method of drying the copra were in better conformity with the demands of the consumers. Philippine copra brings the lowest price of any produced in the large copra-producing sections of the world, due entirely to the fact that our product is improperly dried and prepared for market. Nevertheless, the increasing use of coconut oil in the world's markets will provide a steady and profitable future for the copra trade here. It is recommended that the government construct a drying plant to demonstrate the value of the most approved methods of manufacturing copra. Copra properly dried brings at least a peso more a picul than does that produced by present methods. The hemp-inspection law, elsewhere referred to, will undoubtedly improve the grade and standard of Philippine hemp and restore the product, in which these islands have a natural monopoly, to its leading place in the fiber commerce of the world. Tobacco has been hampered by a falling off in the demand in the United States for Philippine cigars. This is, unfortunately, due to the poor quality of numerous shipments made during the year 1912-13, when the demand for these products was very active in the

Page  52 52 REPORT OF THE PHILIPPINE COMMISSION. United States. Many worm-eaten and inferior cigars were then shipped to the American markets. The government is cooperating now actively with the cigar manufacturers in an endeavor to correct this situation in the United States and to find there a compensating market for the temporary loss of the German and Austrian markets. It may be generally said of conditions in the Philippines during the latter part of 1913 and the year 1914 that business in the staple products continued to increase at a normal rate. Purely retail mercantile business, especially among the merchants of the Escolta in Manila, was affected by political uncertainties about the future of the Philippine Islands, which uncertainties have been always more or less a deterrent to the investment of American capital here, and will not be laid to rest until at least the passage of the pending Philippine bill in Congress. The Manila merchants drew down their stocks largely during the early months of 1914, but as fundamental business requirements based on agriculture continued to expand the demand for mercantile products was renewed, and it is believed that these merchants have now found it necessary to replenish their stocks. A significant feature of Philippine commerce during the year 1914 has been the fact that the exports have surpassed the imports, thus creating a favorable balance of trade for the Philippines. Up to July, 1914, and during the few months immediately preceding that date the export trade of the Philippines was assuming recordbreaking proportions. The temporary breakdown due to the outbreak of the European war has now been overcome and the export trade is once more expanding. In the month of January, 1915, the exports were -3,685,286 more than in January, 1914, and prices have been fairly well maintained on the whole. The collector of customs in his report dwells upon the fact that the import trade of the Philippines is gradually being absorbed under free trade by the United States. While the advantage of this to the Philippines is not always apparent in the prices to buyers here, since only partial free trade and hence only partial competition exists, nevertheless it is an unqualified advantage to the United States. General free trade would induce competition with the American prices and favor.the consumer in the Philippines, but this is impossible under our revenue requirements. In 1914, 50 per cent of our imports came from the United States, and this figure will probably increase. Restriction of shipping facilities owing to the conflict in Europe has caused a considerable increase in freight rates, an undoubted hardship on the producers here, but this same situation appears to be true of all the commercial countries of the world, and Philippine commerce must bear its share of the disturbance of conditions. The striking expansion of our commerce during the last decade keeps pace with the wonderful modern development of oriental trade. In China, for example, from 1906 to 1913 trade with all the world increased 50 per cent, and a similar expansion is noticeable in Japan. In concluding this discussion of business conditions in the Philippines, it is well to emphasize once more the fact that the prosperity of these islands depends upon the staple products. If our present expectations of our commerce in copra, hemp, and sugar are fulfilled, the year 1915 will be a remarkable year for the Philippines. In

Page  53 REPORT OF THE GOVERNOR GENERAL. 53 the prosperity thus accruing to the islands the merchants will have their share, and Manila merchants may expect to reap their portion of the benefit. Those American houses in Manila which have sought an extension of their trade with the Filipino people have secured a firm foundation for a profitable business. The elementary principles of business would seem to indicate a necessity on the part of the merchants of cultivating the good will of those to whom they wish to sell. It should be stated that the total foreign trade of the Philippine Islands for the vear 1914 amounted to P194,556,574, as against P202,171,484 for 1913. The imports were T97,177,306, as compared with P106,625,572 in 1913, and the exports were P97,379,268, as against P95,545,912 for 1913, showing a decrease of P9,448,266 of imports and an increase of P1,833,356 in exports. It is to be noted, however, that the last six months of 1914 are responsible for P14,845,834 of the falling off in imports showing clearly the effects of the war, while in the same six months the exports fell off P5,096,828, thus indicating that the first half of 1914 saw an increase in our exports of P66,930,184, as compared with the same period of 1913. Imports of cotton goods alone showed a decrease of P3,776,114; iron and steel of P2,630,460; cement, about half a million; automobiles and parts and meat products, about P400,000 each; wheat flour and other food stuffs of about half a million. The chief increases were in the importation of coal, amounting to about P400,000, and in leather goods, which increased to the extent of nearly a million pesos. PHILIPPINE FINANCES. Upon the inauguration of the new administration in the islands in October, 1913, the condition of the treasury was the question of greatest concern. For several years past petitions had been made to Congress in the name of the Philippine government for permission to float a further bond issue, but this permission having been denied by Congress, tentative efforts were in preparation by the administration here in 1912-13 to devise a plan to check extravagance. One factor in the extravagance was undoubtedly the failure of the appropriation bill and the consequent disbursement of the revenues by executive officers without the check of the Legislature. Another factor lay in the uncontrolled discretion given the bureau chiefs to spend the revenues of their respective bureaus. Still another cause may be traced to the effort of each bureau chief to make as good a showing of work accomplished as he could without concern for the general condition of the treasury. As heretofore stated, for three years prior to 1913 the government had expended from two to two and a half million pesos yearly in excess of its ordinary income, and in 1913 had expended more than P7,000,000 in excess of such income. Annual expenses of bureaus anld offices alone increased more than P2,600,000 from 1910 to 1913. Thlls, toward the close of 1913, the surplus of the insular treasury, Which in 1910 amounted to practically P19,000,000, was greatly reduced, a large part of the assets still remaining to the government 1ting in such form as not immediately to be available for general

Page  54 54 REPORT OF THE PHILIPPINE COMMISSION. appropriation, although the surplus during this period was replenished by transfer from the gold-standard fund. Alexander Hamilton long ago said that sound finance is the foundation of the independence of states. Especial stress has been laid by the legislative and executive officials upon the necessity for putting our finances upon a sound basis. No more than an individual can a nation with impunity go on living for an indefinite time beyond its income. Drastic economy was therefore incumbent upon the new administration, and a large portion of the difficulties encountered by all officials may be traced to this source. By the reduced appropriations of the January, 1914, appropriation bill and owing to the unceasing vigor of bureau chiefs and executive heads, the net expenditures of the government for the year 1914 were P5,657,603.85 less than in 1913. The total expenditures of the insular government for salaries as shown by the insular auditor for the year ended December 31, 1913, were P17,368,314.79, while the total expenditures for such salaries for the year ended December 31, 1914, were P15,875,925.25, a decrease of P1,492,389.54. Nevertheless, and in spite of this economy, the revenue deficit for 1914 was, as stated by the auditor, P2,841,118.81. There would, it is probable, have been no excess whatever of expenditures over revenue had it not been for the European war, which caused a sudden fall in our customs receipts approximating P1,500,000 under what had been reasonably expected; and the additional fact that the Underwood tariff bill, by striking out export taxes in the Philippines, deprived this government of the further sum of approximately P2,000,000 during 1914. A further element is the increasing demand upon the insular treasury by the provincial governments. The undersigned concurs most heartily in the recommendations of the auditor in his current report that taxation be revised in the Philippines, so as to encourage the provinces to true self-government by making them self-supporting, thus allowing the insular government to go forward with many insular public improvements. Nothing in administrative practice is more difficult than to reduce the expenditures of a government, and great credit is due to the officials and employees of the insular government in that they cooperated so earnestly with the Legislature in its effort to avert financial disaster. In the month of December, 1914, Pl,582,752.58 of surplus accumulations in the various sinking funds were, on the advice of the insular auditor, transferred to the general funds of the treasury by act of the Legislature. This reduced the decrease of the general surplus in the treasury in 1914 to P1,258,366.23. With the liquid surplus reserve drawn down to the danger point, with the necessity of contraction in the personnel and in the expenditures of the government, with the abolition of the export tax, and, to crown all, the outbreak of the European war, it can be readily appreciated what times of financial stringency the Philippine government has passed through. With the imposition of the emergency internal-revenue law of December 23, 1914, it is hoped and believed that the treasury at the end of the calendar year 1915 will be firmly and soundly upon its feet, with a genuine cash surplus for the current year, for the first time in five years. It is moreover to the internal revenue that thle

Page  55 REPORT OF THE GOVERNOR GENERAL. 55 people of the Philippines must look for the means to defray any increase in current expenses in the near future. Customs revenue, with the present tendency of our imports to come in increasing ratio from the United States, can not be expected to furnish it, and whatever may be the merits of a bond issue for permanent improvements no economist would approve the issue of bonds to meet current expenses when any other reasonable solution of the difficulty may be found, as has been done here. GOVERNIMENT AID TO BUSINESS. While it is a safe maxim that the best service a government can render to business is to interfere with it as little as possible, nevertheless emergencies have arisen making exceptions to this rule necessary in the Philippines. Reference has been made elsewhere to the government deposits in aid of the sugar planters. During the August crisis the government was further prepared to assist with treasury funds in the holding for market of staple commodities in the Philippines, but fortunately that situation righted itself without need of such assistance. In August and September also the government was able to secure from the governments of near-by countries concessions in the relaxation of embargoes laid by those countries upon the export of their products to the Philippines. This was especially the case in regard to the exportation of rice from French IndoChina, coal from Japan, and meats from Australia. In addition, we found reasons for believing that a corner in milk and rice was imminent in the Philippine markets. Thereupon the insular government obtained from the commanding general of the Philippine department of the United States Army permission to sell to the people part of the army's large store of canned milk at cost price. As soon as this was known the price of milk in the open market fell to a reasonable figure, and government intervention was further unnecessary. The government dealt with the rice situation in a somewhat similar way. Through the courtesy again of the commanding general of the Philippine department the use of the United States Army transport Warren was obtained in August, 1914, to bring a large cargo of rice from Indo-China which was held by the government and sold at reasonable prices in those municipalities in the Philippines where corners were attempted to be put through by local dealers. This action of the government had the effect of causing rice again to drop to a normal figure. INSULAR TREASURER. In the reports of the secretary of finance and justice published herewith is found a very full synopsis showing the condition of the insular treasury and of the various funds and bond issues on December 31, 1913, and on December 31, 1914. Particular attention is invited to the operation of the Agricultural Bank, of which the insular treasurer is manager. Long-time mortgage loans amounting to P1,330,230 were made during the year 1914, making the total of such loans outstanding on December 31, 1914, more than P4,000,000.

Page  56 56 REPORT OF THE PHILIPPINE COMMISSION. Owing to the fact that funds available for such loans were practically exhausted by July 1, 1914, few additional loans were made during the last six months of the year. However, early in the year 1915 arrangements were made whereby the repayments of loans to the bank during the calendar year 1915 can be anticipated, and additional loans may be made not in excess of P500,000. One of the recommendations which will be made by the Governor General to the next Philippine Legislature is that additional funds immediately be made available for deposit in the Agricultural Bank, to be lent in amounts not to exceed *35,000, as at present contemplated by the law. It is hoped that at least P4,000,000 may thus be set aside, and from year to year additional capital should be provided. This suggestion is now being carefully studied and the action taken will be set forth in the next report. The activities of the bank, at the request of the merchants of the islands, have been extended to the collection of drafts against shipments of merchandise to points at which Agricultural Bank agencies are established. The bank undertakes the collection of such drafts and the service rendered is growing in favor. The Governor General believes that additional facilities should be extended farmers and that the bank should be permitted to make short-term loans on growing crops. This, however, is a procedure which will require careful study and investigation, and it may not be possible to take final, decisive action during the present year. Another feature of the bank's activities, if proper safeguards can be established, could profitably include the lending of money to sugar planters and other agriculturists in the islands, as is now done through the Bank of the Philippine Islands. As elsewhere stated, the government has for each of three years deposited a sum not in excess of P2,000,000 with the Bank of the Philippine Islands, at 14 per cent interest per annum, which is lent by the bank to the sugar growers of the south at interest not exceeding 8 per cent per annum and for a period of not exceeding one year, with the usual guaranties. (wing to the conditions attendant upon the disturbed state in Europe, sales of exchange to the United States are increasing and the gold-standard fund should show a marked increase in earnings for the year 1915. DEPARTMIENT OF PUBLIC INSTRUCTION. This department contains the bureaus of education, agriculture, supply, prisons, printing, the Philippine Library, and the former sales agency, which was abolished at the last session of the Legislature. Vice Governor Henderson S. Martin, who is also secretary of public instruction, was called to the United States at the end of October, 1914. for the purpose of giving his views on the Philippine bill then before the Senate Committee on the Philippies, and the effect of his testimony has been excellent. Commissioner Rafael Palma acted as secretary of public instruction after the resignation of Secretary of Public Instruction Gilbert, on October 17, 1913, until the arrival of Secretary of Public

Page  57 REPORT OF THE GOVERNOR GENERAL. 57 Instruction Martin, on January 26, 1914. From October 30, 1914, to February 6, 1915, the Governor General acted as secretary of public instruction, and from February 6, 1915, to March 27, 1915, Commissioner Palma again acted as secretary of public instruction. The report of the secretary of public instruction is so comprehensive that it is unnecessary at this point to make detailed observations upon the important work of the public schools. The report of the director of education is printed as a separate document and is also available. The reports above referred to indicate that greater interest than ever before was taken in educational work in the islands during 1914. The following figures, taken from the report of the secretary of public instruction, indicate the increase in the number of schools, teachers, and pupils: 1912-13 1913-14 Number of schools...............................................2,934 4,235 Number of teachers...................7............................7,671 9,462 Annual enrollment............................................................ 440,050 621,030 Average monthly enrollment................................................. 329,756 489,070 Average daily attendance........................................... 287,455 428,552.~~~~~~~~~~~~~~~~~~~48 Particular emphasis was laid also upon progress in athletics, so that now 95 per cent of the boys and girls in public schools are participating in athletics or are receiving physical training. Mention is made in the report of the secretary of public instruction of the necessity of further appropriations for school purposes, and in this connection attention is invited to the fact that in the year 1914 23~ per cent of all the expenditures of the Philippine government were for educational work, a record which it is believed is not surpassed elsewhere in the world. In the desire for continuation and extension of this vast program of educational work, both Americans and Filipinos unite. The educational work in the Philippines is a particular source of pride to the people of the United States, and, moreover, the political principles of all parties demand that as rapidly as possible the Filipino people should receive the most modern education to fit themselves for their future responsibilities. Filipinos are equally eager to carry on this great work of education, and the Legislature votes with the greatest generosity all funds available for these purposes. Other Governors General have from time to time made mention of the desire of the Filipino people for education. The tremendous pressure brought upon the Legislature of the Philippines to appropriate funds for education can hardly be understood by one not on the ground and subjected to the influences which are brought to bear. The Filipino representatives of the people are under continuous pressure to secure additional appropriations for this purpose, and at times it would appear that other functions of the government are in danger of being tempoirrily overlooked to make way for education. That this desire for education is not artificially created is evidenced )b the fact that in more than 15(0 municipalities throughout the 'liilippine Islands certain of the public schools are maintained whollv or partially by voluntary contributions of the residents of tle municipality.

Page  58 58 REPORT OF THE PHILIPPINE COMMISSION. The secretary of public instruction calls attention to the fact that there are approximately 1,200,000 children of school age in the Philippines, while the total enrollment for the present year will approximate 630,000. As explained by him, however, this should not be taken to indicate that half the children in the islands are being neglected. Special stress is laid upon the extension of school work in the Mountain Province and other regions inhabited by nonChristian peoples. It is the opinion of the Governor General that particular emphasis should be laid upon primary education and industrial education, so that eventually all the people of the Philippine Islands shall have the elementary foundations of modern education and, as far as possible, shall have been taught some useful trade or occupation. The American teaching force is about 80 less than during the school year 1913-14. It is believed that the present number of American teachers should be maintained for the present, although Filipino teachers are rapidly demonstrating their ability to carry on a high class of educational work. During the year 1914, 60 new standard concrete school buildings were constructed and 5 reconstructed, making a total of 748 permanent school buildings in the islands in addition to 783 of mixed material and 1,910 of temporary or light material. The girls' dormitory building in Manila was also completed in 1914, and will accommodate about 260 girls. BUREAU OF AGRICULTURE. Following upon the successful rice crop of 1913, the crop of 1914 was damaged by the great drouth to such an extent that it will probably disclose a decrease of 25 per cent, and urgent recommendations are made by the director of the bureau for the development of irrigation works to avoid similar shortages in the future. At the same tinge, the director invites attention to the fact that corn is becoming rapidllv more popular as a food product and that the bureau is inducing the people to plant corn in ever-increasing quantities. The crop for the year ending June 30, 1914, is reported as being 6,265 746 cavans, an increase of 44 per cent over the preceding year. The siugar crop of 1914 exceeds that of the year before by 20 per cent. The production of coconuts is also increasing. The production of lekiemp (abta) had recovered from the effects of the 1912 drouth, but the otbreak of the war entailed a drop in prices and curtailment of prodction. The crop of tobacco was larger than that of the preceding year, but the prices were not encouraging. For 1915 it is estimated this tobacco crop will be very small. The work of the bureau in the food production campaign has been referred to elsewhere. A great deal of attention was given by the bureau also to the formation of cooperative agricultural societies, tnd a total membership of 12,000 had been organized by the end of the year. The bureau makes a strong recommendation for immunization of the cattle of the islands against rinderpest by simultaneous innoculation. It is still believed that quarantine alone is not a sufficient

Page  59 REPORT OF THE GOVERNOR GENERAL. 59 measure to restore the cattle of the islands to their normal numbers. Simultaneous innoculation is reported to be the most successful solution of this problem by those best qualified to judge, and is now being undertaken with success in several provinces. Act No. 2380 was passed in February, 1914, to provide for the inspection, grading, and baling of hemp and other fibers, and the fiber division of the bureau of agriculture prepared itself to undertake this important work when the law went into effect on the first of January, 1915. The fiber inspection law provides for a standardization of the commercial grades of the principal Philippine fibers; for a system of government inspection of fiber graded and baled by private establishments; and for instituting educational campaigns among the producers. The necessity for this law became apparent from the fact that the grading of Philippine fibers was very much confused in the markets of the world and our hemp products were gradually losing in competition with other fibers. No greater benefit could be conferred upon the hemp producers of the Philippines than a steady and assured market at the high prices which are deserved by Philippine hemp. This is the real purpose of the fibergrading law, and although it met at first with some opposition, due to misunderstanding on the part of the producers, it is gradually receiving the support and indorsement not only of exporters but of the producers themselves. It is desired here to invite attention to the liberal annual appropriations for the bureau of agriculture; to such appropriations as have been made for irrigation projects; to the fact that during the last three years approximately P4,000,000 has been lent to agriculturists directly by the Agricultural Bank; and to the yearly loans, through the Bank of the Philippine Islands, of an additional P2,000,000 of government funds to the sugar producing farmers of certain provinces. All this in connection with the liberal appropriations for road building throughout the provinces, which directly benefits the farmer by enabling him to market his produce cheaply, leads to the conclusion that the government is fully alive to the needs of the agriculturists. BUREAU OF SUPPLY. Owing to the necessity for general retrenchment, the volume of business done by the bureau of supply in 1914 was less than for the three years preceding. The amount of total purchases was P5,247,001.51, which is lower than the total amount of sales, namely, P5,962,276.30, showing a decrease in the stock carried of T715,274.79. Sixty-seven and one-half per cent of the total purchases of the bureaus and of the provinces was made from local merchants in the Philippines, and if the purchases made by the provinces within their own borders were included, the local purchases of the bureau would undoubtedly rise to 80 per cent of the whole. During the year the rate of surcharge was reduced to 5 per cent, which is less than the former cost of operation of the bureau. The business of the division of cold storage showed a decrease of approximately P100,000, owing to the development of private ice companies in Manila.

Page  60 60 REPORT OF THE PHILIPPINE COMMISSION. BUREAU OF PRISONS. The prison population of the Philippine Islands on December 31, 1914, was 6,763, of whom 1,645 were confined in provincial prisons, the rest in insular institutions. A considerable betterment in the provincial jails is noted during the year 1914 in the line of discipline, efficiency, and the sanitary conditions. Improvements at the Iwahig penal colony were made during the year, and the condition of the colonists was in general satisfactory. Several escapes occurred and some local disorder was created subsequently by the escaped colonists who had taken to the forests and mountains of Palawan. Most of the prisoners have since been apprehended. BUREAU OF PRINTING. A decrease in the amount of work of this bureau during the year 1914 resulted in a reduction in the number of employees, both American and Filipino, which has produced a saving of nearly P60,000 in the salary list alone. The work of training Filipino craftsmen is carried on with undiminished interest and success. The output of the bureau decreased by approximately 11 per cent, and the director reports that, on the whole, the work of the bureau was carried on with increased efficiency. PIILIPPIN E LIBRARY. The Philippine Library had a marked increase in circulation, due partly to the removal by the secretary of public instruction of all charges for the use of books. DEPARTMENT OF MINDANAO AND SULU. Reference has already been made to the appointment of Executive Secretary Frank W. Carpenter as governor of the department of Mindanao and Sulu. This department includes territorially the old Moro Province and the provinces of Bukidnon and Agusan in the island of Mindantao. formerlYy under the jurisdiction of the secretary of the interior. This territory comprises almost the entire MohamItledan poplationl of the "hilippines and presents special problems tOI' considelration. The success of Gen. Pershing when governor of tie MIoro Province irn disarining the rebellious inhabitants made possible for the first time the real pacification of these regions. The ground then was read for an xtnsion of mode civilizing agencies undertakel by Gov. Carpenter and his success is one of the bright pages of the American occupation of the Philippines. The population of MIoroland, hitherto so turbulent, is now peaceful and devoting itself to the arts of agriciulture. Everywhere in regions onl recently the scene of warfare the ground is devoted to crops. With a continuation of the tactful management now in control, the spread of doctors with modern dispensaries, of school-teachers, engineers:nd surveyors has begn throughout the department of Mindanao u,nd Sulu. The work f the arin of the military waus thoroughly done in the de

Page  61 REPORT OF THE GOVERNOR GENERAL. 61 partment and the undersigned acquiesced in the judgment of the commanding general, J. Franklin Bell, in December, 1913, in removing the American soldiers from Mindanao and at the same time decided upon the substitution of a government by civilians for a government by a military officer in that region. In the Moro country, as well as in the Mountain Province, a new policy was inaugurated of cultivating confidence and good will between the non-Christians and their Christian neighbors. Especial stress was laid upon the fact that all the inhabitants of the Philippine Islands were destined to form a united people with a common nationality. Earnest efforts have been made to eradicate the distrust with which the Mohammedans viewed the people of other religions and most gratifying results of harmony and cooperation are already beginning to appear. Christian Filipinos from the northern islands have been installed as government officials, especially as school-teachers, in many of the remote portions of the Moro country and have been uniformly successful; in no instance has any violence been offered them or any obstruction placed in their way. The undersigned concurs in the urgent recommendation of the governor of the department for largely increased appropriations for the establishment of schools in Mindanao and Sulu. In addition to the colony of Cebuanos in the Cotabato valley in the heart of Dato Piang's Mohammedan population, colonies have been undertaken for the settlement of Ilocanos in Bukidnon, among the Bukidnons and Manobos. Extensions of telephone and telegraph lines are proceeding on a large scale, and public order continues to be most excellently maintained. Plowed fields or growing crops are conspicuous in regions which but recently were uncultivated and unfriendly. Even in Jolo, the scene of so much disorder in former years, better conditions of peace and agriculture obtain than at any time since American occupation. Act No. 2513 of the Legislature appropriated funds for the maintenance of a hospital ship to serve the inhabitants of the islands of Mindanao and Sulu, upon the understanding that part of the expenses of operation were to be borne by the Rockefeller Foundation. The organic act for the reorganization of the government of Mindanao and Sulu, passed by the Commission in July, 1914, divides the department into seven provinces, the officials of which are appointed by the governor of the department, while in both the provinces and the municipalities the election of officials is provided for as rapidly as warranted. Local autonomy is granted the native inhabitants wherever feasible. The authority of the bureaus of the insular government is gradually extended over the department, so as to incorporate this large territory into the general administration of the Philippines. The customs revenues of the department are now turned directly into the insular treasury, and the expenses of department administration are met out of the insular treasury by appropriation of the Philippine Commission upon a budget prepared by the department governor. The expenditures are made by the department legislative council. The general laws of the Philippines, administered by the courts of first instance and the regular justice of the peace courts, are gradually completing the assimila

Page  62 62 REPORT OF THE PHILIPPINE COMMISSION. tion of the Mohammendan population, due consideration, however, being given to the religious customs of this people. THE PHILIPPINE BILL. The Philippine Commission in its report printed herewith makes mention of the importance of the early passage by Congress of the pending Philippine bill. The extended powers of self-government offered to the Filipino people by this measure will afford the best demonstration to the world of the capacity of the Filipino people, and will give unmeasured satisfaction to the people of these islands. The preamble of the bill, containing as it does an unequivocal statement of the intention of the people of the United States to give ultimate independence to the islands, will be regarded by the Filipino people as an affirmation of the often-expressed policy of our country toward them. Every nation as well as every individual must have an ideal, and all Americans should unite with the Filipino people in cherishing for their future ideal that independence which we value so highly for ourselves. The Filipinos, citizens of all nations residing in the Philippines,:all parties, and all factions realize that business as well as political conditions will improve upon a statement of definite policy by the Congress of the United States. Prevailing uncertainty will come to an end immediately upon the enactment of such a measure as that advocated. Every sentiment of good faith on the part of the United States calls for an affirmation of the statements heretofore made by the representatives of the United States in the Philippine Islands, that eventually the people of the Philippines are to be given their independence. All who have resided in the Philippine Islands must appreciate the tremendous achievements of the United States in the islands since American occupation. We are perhaps somewhat prone to underestimate, however, the part which the Filipino people have borne in cur success. Only through their willing cooperation in executive administration and in the expenditure of their revenues, as expressed in the acts of the Legislature, of their provincial boards, and of their municipal councils, have we been able so easily and so rapidly to make the tremendous strides and improvements in order, sanitation, and public works of which we are so proud. UNITED STATES ARMY. Gen. J. Franklin Bell was in command of the Army when the present Governor General arrived in the Philippines and until April, 1914, when he was relieved by Maj. Gen. Thomas H. Barry. Nothing could be more cordial or satisfactory than the relations maintained between the insular government and the Army under these distinguished officers. Occasion has been taken in several places in this report to refer to the active assistance given to the insular government in administrative matters by the Army, and the undersigned takes this occasion to express his deep appreciation of the many acts of kindness and courtesy shown insular government officials by the Army. The policy of gradual withdrawal of the permanent use of

Page  63 REPORT OF THE GOVERNOR GENERAL. 63 the Army in civil matters has now been completely carried out, even the Philippine Scouts being at the present time entirely relieved from civil duties, except in the cases of Capt. Allen S. Fletcher, whose excellent work in the hinterland of Lanao is of great service to this government, and two hospital stewards of the Army on partially civil duty in Mindanao and Sulu. UNITED STATES NAVY. Similarly the officers of the United States Navy stationed in the Philippines have been of the greatest aid and assistance to the insular government, especially in the solution of many of the delicate questions involved in the enforcement of our neutrality during the European war. Rear Admiral Reginald F. Nicholson and subsequently Admiral William C. Cowles, in command of the Asiatic station, have lent every assistance, personal and official, requested by the insular government. NEUTRALITY. The presence in Philippine waters of many vessels belonging to the belligerent nations, the questions of the export and import of conditional contraband of war, and many other matters connected with the enforcement of our neutrality as directed by President Wilson have occupied the time and attention of the executive during many days since the war began. CONSULAR CORPS. The undersigned has met with uniform courtesy and consideration from the members of the consular corps, and desires to express herewith his appreciation. While this report deals particularly with the period from July 1, 1913, to December 31, 1914, it has been necessary for proper correlation to mention matters occurring since the latter date. Very respectfully, FRANCIS BURTON HARRISON, Governor General. The PHILIPPINE COMMISSION, Manila.

Page  64

Page  65 REPORT OF THE SECRETARY OF THE INTERIOR. JULY 1, 1913, TO DECEMBER 31, 1914, THE GOVERNMENT OF THE PHILIPPINE ISLANDS, DEPARTMIENT OF THE INTERIOR, Manila, Maarch 31, 1915. GENTLEMEN: I have the honor to present the thirteenth annual report of the operations of the department of the interior, covering the period of six months between July 1 and December 31, 1913, and also the fiscal year 1914, which coincides with the calendar year. In some cases it has been necessary to include reference to incidents which happened shortly after this period in order to complete the account of certain transactions. DEPARTMENT PERSONNEL. Hon. Dean C. Worcester, who was the head of the department of the interior from its beginning, the creator of its organization, and ihe dominant motive power of its multiform activities, resigned his position on September 15, 1913. Under his guidance, a work of historical importance was accomplished: Modern sanitation was introduced, and so perfected that Manila now ranks among the healthiest cities of the world, while many diseases, formerly widespread throughout the islands, were suppressed or controlled; a great medical school and the finest hospital in the Orient were created; some 400,000 wild men were brought under government control, so that their territory, formerly almost in constant warfare, is now peaceful and safe; the vast domain of public lands was brought under administrative control for useful development; the utilization and conservation of an almost unparalleled wealth of forest was provided for through a bureau of forestry, very efficiently organized; valuable laboratories were established, controlled by a staff of able men under the bureau of science; and commerce and agriculture were aided by the work of the weather bureau, continued under Father Algue. For these great services, and for many others, the Philippine Islands are immensely indebted to Secretary Worcester. The Governor General was acting secretary from his arrival in October, 1913, until the arrival of the undersigned on March 2, 1914. Mr. A. 0. Zinn, private secretary, generously continued his supervision of the office after the departure of Secretary Worcester, notwithstanding his great personal need of rest from an excessively long period of uninterrupted labor. His services were invaluable, and when he was promoted to be acting fourth assistant executive secretary, I was genuinely sorry to lose his aid. 8329-15 ----5 65

Page  66 66 REPORT OF THE PHILIPPINE COMMISSION. When the position of "Delegate" was created to superintend the work among the non-Christians, I followed the advice of my predecessor, confirmed by my own experience, and asked Mr. Zinn's permission to nominate him for it. This had been the field of his keenest interest, his knowledge of it was very wide, and his views were full of constructive value. To my sincere regret, he was unable to accept, owing to the condition of his health, and he finally returned to the United States. His departure was a severe loss to the department, and was regretted by everybody in it, as well as by a wide circle of friends and associates in all branches of the service. I-e was succeeded as private secretary by Mr. Charles C. Batchelder, who was later appointed to the position of Delegate, and in turn succeeded by Mr. Addison E. Southard, then chief clerk of the bureau of science. Early in i915, Mr. Southard was offered an appointment as private secretary to the American minister at Peking, and at the same time received an opportunity to take the consular examination. As he had long desired to enter the Diplomatic and Consular Service, I was obliged to give him up, to my great regret. His resignation is another serious loss to the department. Mr. Roland B. Pendergast was appointed private secretary to succeed Mr. Southard. THE MORALE OF THE DEPARTMENT. The zeal of the men of the department in the performance of their duties has continued to be admirable, and the spirit of cooperation most satisfactory. Indeed, the chief difficulty is excessive overtime and holiday work. This appears to be an old habit of the department, but, creditable as it is from the point of view of morale, it is not just and ought to be rendered unnecessary. In the secretary's office the higher members of the staff work practically all day and most evenings, Saturday afternoons, and Sundays; and the two stenographers and the copyist work frequently Saturday afternoons and average an hour apiece overtime on the regular davwork. In the offices of the bureaus a great deal of Sunday, Saturday afternoons, and evening work is done, in addition to overtime work in day hours averaging about 17 hours per month for every employee. This condition has existed for a great many years, not only in this department but in others. I respectfully recommend, in justice to the employees, that sufficient force be provided to do the work required by law without this imposition upon them. Another undesirable condition which has existed in the service from the very beginning, notwithstanding frequent agitation, is the failure to provide proper terms of transfer for American employees into the home civil service on the termination of their work here. At least as far back ts 1906 this necessity was pointed out by Mr. A. W. Fergiusson then executive secretary, in his annual report (Rept. Phil. Coen., 190. Pt. I, p. 97), but, unfortunately, his recommendation was never acted on.

Page  67 REPORT OF THE SECRETARY OF THE INTERIOR. 67 Theoretically, it is true, Americans leaving the Philippine service may be transferred into the home service, but the privilege is of little practical avail, because the employee must first find a suitable vacancy in America, and, even if he succeeds in doing this, he must still persuade the head of the department to grant him the appointment, instead of promoting some one already in line in the same department. Naturally the man in the Philippines has very little chance in such a competition, and can seldom get in, except at the bottom or at a serious reduction in pay. I recommend that the home government be requested to consider some amendment to the civil-service rules by which, for example, American employees leaving the Philippines could have an absolute right to the next vacancy occurring in the home civil service, which the United States Civil Service Commission should certify to be appropriate to their experience and qualifications. PUBLIC HEARINGS AND CONSULTATION WITH CITIZENS. In order to avoid mistakes due to unfamiliarity with the local conditions and the language, traditions, and customs of the people, I have resorted freely to public hearings on all matters of general public importance. During the year the department has participated in at least 18 such hearings. In many matters the department has made a distinct effort to hold personal consultations with citizens interested in any especial branch of the department's work, and, above all, with persons inclined to oppose any method or plan of the department. Frequently, also, the department has invited the advice and cooperation of unofficial voluntary committees, containing usually a representative of those who opposed the proposed plan, a representative of the department, and third persons particularly familiar with the general subject. Often these measures have revealed some justification for the objections advanced, and also some practical way of modifying the department's action so as to adapt it to existing conditions without injustice or injury to anyone. Sometimes they have disclosed pure misunderstanding of the department's intentions, due to no fault of anyone, but merely to differences of language or misinterpretation of acts. As even such misunderstandings, however, lead to irritation and opposition, obstruct efficient and smooth administration, and prevent harmonious cooperation with the public (especially between different races), the department has sought to prevent them, or, when they occur, to correct them, with precisely the same care which it uses to prevent or correct any positive mistakes. COMPLAINTS OF CITIZENS. Another helpful method of preventing such mistakes, or of correcting them, has been painstaking attention to complaints of indiVidulal citizens. For administrative purposes the department has acted on the assumption that every complaint, wherever it may originate, is likely to have some justification, that it indicates at least

Page  68 68 REPORT OF THE PHILIPPINE COMMISSION. irritation, and that such irritation should be alleviated wherever possible. As a rule, these assumptions have proved sound. WORK OF THE DELEGATE FOR THE NONCHRISTIAN PEOPLE. CREATION OF THE OFFICE OF DELEGATE. Following the recommendation of my predecessor I introduced a bill into the Commission to centralize the work of the department among the non-Christians, placing it in charge of a new offcer, known as "Delegate of the secretary of the interior for the nonChristian people." Hitherto it has been in direct charge of the secretary. Upon the passage of this bill, Mr. Charles C. Batchelder was appointed to the position, and, as the results show, has carried on his difficult work with a deep insight into its requirements. He has pushed the campaign of economic, sanitary, and educational development with great vigor, and has encouraged and fostered increasingly friendly relations between the non-Christians and the Christian Filipinos. SuPERRviION. Close supervision of affairs has been maintained by personal visits both of the secretary and of the Delegate. They have kept in close touch with the governors and the lieutenant governors, and have also held numerous councils throughout the provinces, at which individuals have had every opportunity to give their points of view. The secretary has visited Palawan repeatedly, and has also made tours of Mindoro, Nueva Vizcaya, and the Mountain Province, as well as of Agusan, Bukidnon, Lanao, Zamboanga, Cotabato, and Jolo, in the department of Mindanao and Sulu. In his tour of Nueva Vizcaya and the Mountain Province he was accompanied all the way by Commissioner de Veyra, and through considerable portions of the journey by the Governor General, Secretary Riggs, and ommis Palma. Commissioner Ilustre joined the party for a conference at Bontoc, and also visited other parts of the province. Throughout this journey councils were held with the native leaders, whose chief requests were always for schools and doctors, and for dynamite for use in constructing irrigation ditches. SPIRIT OF COOPERATION. Perhaps the pleasantest feature connected with the administration of the work among the non-Christians is the enthusiastic working together for common objects of the employees of the insular government, American and Filipino alike, regardless of the particular organization or bureau to which they belong. This is true not only of the officers and employees in the special provinces, but also of the bureau chiefs and employees in Manila, who are brought into close official relations with the work of the Delegate.

Page  69 REPORT OF THE SECRETARY OF THE INTERIOR. 69 TIlE MOUNTAIN PROVINCE. PERSON NEL. Gov. E. A. Eckman and the other provincial officials, who are familiar with the local conditions and have the confidence of the inhabitants, have rendered excellent service in carrying out the policies of the department for the welfare of the inhabitants. Since the departure on leave of the provincial treasurer, Mr. C. W. Olson, his work has been very satisfactorily performed by Mr. Jose Martinez, who became thoroughly familiar with the routine during his previous experience as chief clerk. Mr. Samuel E. Kane, formerly lieutenant governor of Bontoc, assumed on February 1 the duties of lieutenant governor for the united subprovinces of Lepanto and Amburayan, relieving Lieut. Govs. E. A. Seidenspinner, of Lepanto, and E. de Mitkiewicz, of Amuburayan. Mr. Sharon R. Mote, head teacher of Benguet, was appointed actting lieutenant governor of Bontoc, to fill a vacancy, and has been on leave during the last few months. Capt. Harry Davis officiated as acting lieutenant governor of Bengiuet during the absence of Lieut. Gov. Evans, who is at Fort Bayard. No other chainges have been made in the higher officials, and only ordinary routine changes in the subordinates. PEACE AND ORDER. The already-established arrangements for preserving peace and order have continued to prove most satisfactory. Only four murders were known to have taken place in the Mountain Province during 1914 in the entire population of about 400,000. CONSTrABULARY. The constabulary have continued to render excellent service in patrol work, and have also cooperated in sanitation, in the work against locusts, and in many other ways. Several of the constabulary officers have cheerfully, without additional remuneration, performed much work which would usually be imposed upon the civil functionaries; but which could not be undertaken by them owing to pressure of other duties. PUBLIC WORKS AND TRAILS. Outside of the ordinary maintenance and improvement of roads,nd trails, there were constructed 39 kilometers of new trail connecting the subprovinces of Kalinga and Apayao, 55 kilometers of new trail in Kalinga subprovince, 3 kilometers of new trail between Bagnen and Sagada, 28 kilometers of new trail between Tukucan and Tinglayan, 20 kilometers of new trail between Natonin and Butigui districts of Bontoc subprovince, and 12 kilometers of new trail between K. 33, Mountain Trail, and Adaoay, of Benguet subprovince.

Page  70 70 REPORT OF THE PHILIPPINE COMMISSION. The province now has a total mileage of graded cart roads and trails of 1,564 kilometers. Eighteen new school buildings of light materials were constructed. EDUCATION. The advance in education during the past year has been marked. New schools have been established in many of the isolated regions, and the total attendance has increased over 60 per cent, as appears from the following figures: Attend- AttendSubprovince. ance lFeb- ance I eb- Per cen ruary, 1914 ruary, 191. increase. Am urayan.......................................................... 1,005 1,320 31 A pavao................................................................ Benmuotl..........................................2 1,472 61 on'oc............................................................... 225 366 63 K R gao............................................................ i4 < X!-~~~~~~~u..~~~~~~~~59 0064ti 85 Ka toga.........-... —...............~......6................... 61 176 190 Lepanto...................................................... 643 1, 139 78 Total...... —............................. 3,205 5,232 61 This iimprovement in attendance has not been due entirely to new schools. - ht in part to the establishment of local school boards. The inflllential head men who have been appointed on these boards have given splendid cooperation in improving attendance and arousing interest in school matters. The iincreased attendance of girls is particularly gratifying, as formerly almost the entire enrollment consisted of boys, because the natives preferred to keep the girls at home for drudgery in the houses and fields. They now realize that girls should receive the same opportinities for education as their brothers, and so send them to school. The great difficulty is the scarcity of experienced teachers. In severall towns the people have provided school sites and buildings in the hope that some day teachers will be sent to them, and in most cases their desire will be gratified in the near future. Other towns are willingl to pay and subsist good teachers to enable their children to advance as fast as other towns which have schools. Even the additional appropriation which the Commission made last summer has not been sufficient to meet the growing demand. The work of the bureau of education now being conducted among the mountain peoples deserves the highest praise. The excellent service of the American teachers is well know but no one can fail to be impresed with the enthusiasm, genuine patriotism, and painstaking etffort shown by the young Filipino teachers ho are en ged nalities can safely be relied upon to bring about an eventual solution of the problem of the elevation of the mountain peoples in the scale of civilization. The best results will clearly be secured by adapting the education to the immediate necessities. The division superintendent of schools, Mr. D. M. Thomas,' -with the support of the director of education, 'Appointed Industrial supervisor od member of the provincial board early in 1915.

Page  71 REPORT OF THE SECRETARY OF THE INTERIOR. 71 shows a clear appreciation of the requirements, and is giving special attention to teaching agriculture and various industries to the boys and domestic science and household industries to the girls, without sacrificing academic requirements. SAN ITATION. The special appropriation for doctors, nurses, and sanitary inspectors has produced excellent results in improving the sanitary conditions of the province. The doctors are making frequent inspections of the villages in their districts, advising the people in matters of health and sanitation, and distributing quantities of quinine and other simple medicines. The inhabitants have shown good response to these efforts, willingness to cooperate, and pride in the condition of their villages. Native Ifulgao sanitary inspectors have done especially good work under the direction of Lieut. Gov. Tomlinson. Arrangements have been made for a school connected with the Bontoc Hospital to train the natives as practicantes and sanitary inspectors, and students from the province are being trained in Manila in nursing and midwifery. In addition to the hospital at Bontoc branch hospitals have been established in Cervantes, Kiangan, and Lubuagan, with a doctor in attendance at each place. These hospitals and doctors are doing here the pioneer work which they always accomplish so successfully. At first the sick refused to comle to the hospitals and the relatives even declined to allow them to be treated in their own homnes. Thlis opposition has practically disappeared, and now patients are broght nmany days' journey to receive treatment wherever a doctor is stationed. They show much appreciation and gratitude and the results are most satisfactory. During the months of September, October, and November a cholera epidemic appeared in the towns of Tagudin and San Gabriel, which caused the death of 26 persons before it was stamped out. If it had not been for the three artesian wells drilled in Tagudin last year the loss of life would undoubtedly have been much greater. The teachers stationed in Tagudin rendered invaluable assistance, 1both practical and educational. Great aid in improving the sanitary and economic situation has been given by a survey of the province made, through the courtesy of the commanding general, by Maj. E. L. Munson of the United States Medical Service, who showed a complete grasp of a complicated situation and made most helpful suggestions, which are being carried out. AGRICULTURAL AND INDUSTRIAL DEVELOPMENT. The rapid increase of population, taken in connection with the frequent loss of crops due to drought and locusts, and the growing demands of the inhabitants for articles which accompany an ascent in the scale of civilization, make it essential to increase the production of food and to extend industry. The immediate situation is rendered difficult by the fact that the work on the Naguilian Trail has been completed and construction of the railroad to Baguio has been suspended, owing to the war, so that

Page  72 72 REPORT OF THE PHILIPPINE COMMISSION. people who desire to work for wages can no longer support themselves by these employments, as they have been doing in the past. The increase of the food supply can not be accomplished by opening up new land, because practically all the available land has been, or is rapidly being, brought into use. Effort, therefore, must be directed to improving the cultivation of existing fields through the introduction of new plants, better varieties of existing plants, agricultural implements, the use of fertilizers, and especially of leguminous plants. The bureau of agriculture has assisted by furnishing a large number of seeds and cuttings of various kinds and by providing supervision. Ten more nurseries and seedling stations have been established, besides those already existing in La Trinidad, Bontoc, and Lubuagan. Eight cooperative school gardens and three mission gardens have been started, which are rendering excellent assistance in the introduction of profitable crops and in giving instruction and aid in seed selection. In all of these stations, coffee, cacao, kapok, papaya, mango and nmulberry trees lha-e been planted in quantity, and will be distributed to the people for planting in permanent locations during the next rainy season. Further, Hawaiian pineapples, sugar-cane points, potatoes, upland and irrigated rice, American sweet potatoes, bananas, mangos, beans, corn, peanuts, cowpeas, and various other vegetables have been distributed direct to farmers, and special attention has been paid to the distribution of the varieties of bamboo which flourish at high altitudes, in order to provide the materials for better lhouses. Perhaps the most promising agricultural resource of the province is the encouragement of the coffee industry, which was formerly a great source of revenue before the blight made the cultivation of Arabica coffee practically impossible. The natives have taken great interest in the distribution of Robusta coffee, owing to the fact that it resists the blight. and the demand for seeds has increased so rapidly that there is difficulty in keeping pace with it. The Robusta has been thoroughly tried in the Philippines and elsewhere, and with care and patience the restoration of the industry may be hoped for. The inhablitants are apparently awAre of the necessities of the situa~tion and their demands for new plants and seeds appear to be insatiable. They are, further. very anxious to increase their crops by irrigationl and the policy has been followed of giving provincial assistance to all who wish to help themselves. Therefore dynamite and the necessary superintendence are furnished at cost to all. Locusts aIpleareid in large numbers in Apayao, Ifugao, and Kalinga subprovinces, but no great amount of damage was caused except in Apavao and northern Kalinga, where secondary crops were immediately planted. The people cheerfully turn out to catch locusts wherever they appear, and the pest is therefore very easily controlled in most districts, although in Apayao, eastern fugo, and northern Kalinga there is great difficulty, owing to the large stretches of uninhabited territory in these subprovinces and their proximity to the

Page  73 REPORT OF THE SECRETARY OF THE INTERIOR. 73 vast cogon plains of the west part of Cagayan Valley, where locusts breed in enormous swarms and migrate to cultivated areas for food. The hills of Benguet, Lepanto, and Amburayan are well adapted for stock raising and formerly supported large herds. Efforts are being made to restore them as a source of wealth to the inhabitants, and these efforts have been greatly aided by the bureau of agriculture, which has lent bulls and stallions to various communities, where considerable intelligent interest has been shown in increasing the herds and in securing better animals. The breeds of swine and poultry are also being improved. Rinderpest occurred among carabaos and hogs in the Tinglayan district of Bontoc and in several settlements of Kalinga subprovince, but very effective quarantines were maintained with the aid of the people and deaths were kept to the minimum. The native household industries are being fostered, especially weaving and wood carving, lace making, embroidery, and similar arts, all of which have been a part of the school instruction for some time. In order to keep the graduates of these schools in touch with their former teachers it is proposed to start special communities made up of married pupils, who will be assisted to build sanitary and convenient houses. Village centers will be erected, in which they can pursue their industries and also teach others who have not had an opportunity to profit by the instruction in the schools. The reorganized provincial exchanges will assist by furnishing raw materials and will purchase and dispose of the finished product. The introduction of the silk industry is another possibility which is being tried out. Father Jurgens, of the Belgian mission in Bontoc, with the aid of an experienced teacher supplied by the bureau of education, has had excellent success with silk worms secured from the bureau of science. The people have shown a great deal of interest as the result of the exhibition given by Father Jurgens at the Cervantes fair and many of them wish to give the industry a trial. Mulberry trees in large quantities have been set out at Lubuagan, Kiangan, Bontoc, Guinaang, Tinglayan, and Sabanga, in order to feed the silk worms if the experiment proves successful. These industries are being guided with a realization of the fact that the exports from the Mountain Province must necessarily be articles of relatively great value in relatively small bulk, because the expense of transportation to the lowlands makes it impossible to export the usual bulky agricultural products to any considerable extent. APAYAO. The temporary provincial buildings at Kabugao, the hospital at Tauit and the school at Talifugu are progressing, and the construction and repair of the trails continues. A horse trail has recently JIw:en opened from Ripang to Kabugao. The action of two native volunteers in killing the noted outlaw Subngay, who was resisting arrest, has produced an excellent effect. Subngay had fired upon Lieut. Gov. Conner, Capt. Rhea, Capt. Roberts, and Mr. Barton. Great credit is due to Lieut. Gilfillan, who made the arrangements for the capture, and secured the

Page  74 74 REPORT OF THE PHILIPPINE COMMISSION. cooperation of the neighboring people under most difficult circumstances. This is the first time that any of the natives have openly and positively allied themselves with the government to the extent of attempting to bring in outlaws. Public opinion supports the volunteers who assisted the authorities. A number of firearms have been turned in, and only three outlaws are at large out of the original band of over 80, who have been causing trouble since 1912. The tactful work of Gov. Conner in securing the confidence of the people is showing its results on every hand. BENCGUET. The work on the Naguilian Trail has been completed, so that it is now easily passable for automobiles; but work on the railroad has ceased, owing to the financial conditions resulting from the war. The inhabitants show much interest in the improvement of stock and agriculture, and many of the principal men are enthusiastic leaders in the woirk of civilization, especially in matters of education. The assembly of l)residentes held at Trinidad elected Mr. Asterio Favlis, the Iroxvincial fiscal, to represent them in presenting any necessary nmatters to the Philippine Commission. BONTOC. Progress in Bontoc has been mainly agricultural and educational. Some of the more advanced girls from the Bontoc schools were taken, with their books, laces, and looms, on a visit to various towns, in orler to give a practical demonstration of the benefits of school work. The result has been an increased attendance in the girls' school in Bontoc. Notwithstanding his exacting duties as road supervisor, which require frequent absences, Gov. E. A. Eckman has found time to do excellent work in arranging for the cultivation and distribution of large qllantities of seeds and seedlings of various kinds. IFUGAO. (ov. 0. A. Tomlinson has shown an enthusiastic devotion to the welf:are of his people, and a sympathetic understanding of their points of view. iHe has been especially successful in sanitation and in agricultural development. The relations between the Ifugaos and the Christians and nonChristians of the neighboring provinces continue satisfactory. Work was continued on the Kiangan water works and irrigation system. The road from Kiangan to Bagabag is being steadily improved, so that carts are now constantly transporting goods at a cost of less than 10 centavos per kilo from Manila to Kiangan, thus lowering the price of supplies of all kinds. A number of school buildings have been completed in different places. The bureau of education has stimulated interest in improved agriculture in many ways.

Page  75 REPORT OF THE SECRETARY OF THE INTERIOR. 75 KALINGA. The new Lubuagan-Bontoc Trail has been opened to traffic, and has proved a great convenience. The work on the trail from the east to the Abra line is also progressing satisfactorily, and other trails are well maintained. Drought and locusts caused much trouble, but Gov. W. F. Hale met the emergency by destroying the locusts and causing the planting of quick-growing crops. He has also shown much energy in increasing the acreage of cereals, and varying the food supply with vegetables and fruits, showing a clear insight into one of the main necessities of the inhabitants. During the past year he caused at least 60,000 trees of various kinds to be set out, the larger part of which were coffee trees. No cases of headhunting have been reported during the year, and all the persons guilty of crimes of violence have either been apprehended, or presented themselves for trial. Gov. Hale spent a large part of his time during the last two months in a most successful endeavor to adjust permanently, before the end of the year, all old feuds, so as to eliminate existing causes of friction between the different settlements. LEPANTO AND AMBURAYAN. The roads and trails in the province have been well kept up, and the Bontoc-Cervantes-Tagudin Road is in excellent condition for carts, and has been opened to automobile traffic as far as Butac. The Cervantes provincial building has been improved, and part of it has been remodeled into a residence for the lieutenant governor. The jail has been repaired, and offices arranged in it for the provincial doctor. The waterworks have been completed and are appreciated by the inhabitants. Notwithstanding the fact that he was suffering from a broken leg, Lieut. Gov. Kane made the arrangements for a most successful agricultural fair in Cervantes, at which more than 6,000 people were present, of whom over 2,500 were Igorots, Bontocs, and Kalingas, and over 800 were Ilocano traders. The intercourse on this occasion between the people of the lowlands and of the Mountain Province produced an excellent effect without the slightest friction or disorder. The exhibits of stock, textiles, and agricultural products were most creditable and have given a real stimulus to economic development. NUEVA VIZCAYA. Gov. Grove has shown great energy in advancing the welfare of Nueva Vizcaya. Trails have been well maintained. The Bagbag-Isabela Road was finished as regards grade and dirt work and opened to cart traffic on June 1. The traffic soon showed that the original plan for an 8-foot road for light cart traffic, to be open only during the dry season, was inadequate, and the road is being enlarged to a width of 18 feet. Eleven kilometers of this dimension were completed during the Year, and the whole will probably be finished during 1915. The widening of the Villaverde Road was continued to kilometer 51.

Page  76 76 TREPORT OF TIHE PHILIPPINE COMMISSION.. Work upon it is proceeding rapidly, and upon its construction through to San Nicolas a most desirable means of communication between Manila and the provinces of Nueva Vizcaya and Isabela will be available. General health conditions under the supervision of the health officer, assisted by sanitary inspectors, are improving steadily, owing to their frequent trips to the different barrios and sitios. Nineteen wells have been sunk with the jet rig outfit, with the result that there has been a noticeable improvement in health during the year. This work will be prosecuted vigorously with the assistance of the people, who show their appreciation of good water by assisting with voluntary labor. Public order has been very satisfactory. Except a few minor offenses, settled by township and justice of the peace courts, there were but four crimes against law and order tried by the court of first instance during the year. The arrival of the constabulary company at Maquebenga has caused a great improvement in conditions in that vicinity, and no disturbances of any kind have been reported for some months. A determined effort is being made to give permanent possession of their lauds to the inhabitants, with the result that many free patentees and homesteaders have perfected their claims. More applications for Torrens titles were considered at the last session of the court of first instance than in all previous sessions since American occupation. Many farmers have had their lands surveyed and will present their applications at the next term of court. A number of new buildings of strong materials were constructed by the owners, and the value of their property is continually being increased by the construction of small communal irrigation canals, the clearing and leveling of land, making it suitable for irrigation, and the opening up of cheaper routes for the transportation and sale of their products. In the Christian communities nearly all families are landowniers, while tenants are rare. There are no large holdings, and very few over 16 hectares. As the inhabitants of the Cagayan Valley devote themselves almost exclusively to the growing of tobacco and corn, this section rovidles an excellent demand for all the surplus rice grown in Nueva Vizcaya, and the new road to Echague has enabled the provincial atllorities to bring goods from Manila to Bavambong via Aparri at the low rate of 7t centavos per kilo. Owiing to the energy of the authorities but little damage was done by locists, althouglh the province was invaded a number of times by swarms from other provinces, so that the inhabitants were almost colntiuously engaged in the extermination of hoppers during the Iast eight months of the year. Surra, foot-and-moutlh'disease, and rinderpest appeared, but, owing to tile prompt quarantine instituted and the cooperationof the local with the provincial authorities, the outbreaks were confined to small area, and the province is believed at present to be free of these diseases. Great interest has been taken in public instruction, and it is believed that the province has as large a per cent of children in school as an.y other unit of the bureau of education. Schools and home

Page  77 REPORT OF THE SECRETARY OF THE INTERIOR. 77 gardens have been of great value, and a demand for garden products has caused a much larger area than usual to be planted with vegetables, all of which are doing exceedingly well. The work among the Ilongot and Negrito inhabitants on the east coast was continued by Capt. F. A. Whitney, P. C., during the absence of Capt. Wilfrid Turnbull, P. C., on leave. The latter has now resumed charge and is taking steps to make permanent the settlements at Calabgan and Pinagpatian and to teach agriculture to the Negritos and Ilongots. PALAWAN. The situation in Palawan has been satisfactory on the whole, although the physical situation of the Province and other existing conditions have always made improvement very difficult. Acting Gov. H. J. Detrick has continued in charge of the affairs of the Province, to which he has devoted himself with much energy. The vacancy caused by the voluntary resignation of Mr. John T. Clark as provincial treasurer, to enter into private business, was filled by the appointment of Mr. Amb. Pablo, promoted after successful service in other Provinces under the department of finance and justice. To the great regret of the department, Mr. Finnigan, who was not only superintendent of the reservation at Aborlan, but also the teacher in charge of the Aborlan Farm School, was recently murdered by some escaped colonists from the Iwahig Penal Colony. During the three years and a half of his service he had improved the condition of the Tagbanuas living on the reservation very materially and had won their full confidence. Under his guidance they had begun to reside in comfortable houses, to raise an abundance of fruits, vegetables, and other foods, and were contented and happy. They had given up their nomad habits to such an extent that after his death 300 of them assisted in the pursuit of his murderers instead of deserting the reservation, as might have been expected. He deserves the highest praise for his excellent work and self-sacrificing devotion, and the people among whom he lived deeply regret his loss, which is much deplored by the department. Every possible effort is being mnade to improve inland communications. Work on the trails has been pushed vigorously until there are 309 kilometers of provincial roads. One hundred and ninety kilometers of the Puerto Princesa-Bonobono Trail are passable on horseback. A first-class trail connects Punta. Separacion with Alfonso XIII on the west coast, and the Tapul-Bahile Trail connects with Buenavista on the east coast. One-third of the Coron-Busuanga Trail has been finished, and horses may be ridden over the entire length at present. A second-class road from Cuyo to San Carlos is llnder construction. A new dock at Puerto Princesa is being built, and also a water system, which will bring water 2 kilometers and render the place no longer dependent upon cistern water. The Coron water system has been finished, and the extension to the Cuyo water system will soon be completed.

Page  78 78 REPORT OF THE PHILIPPINE COMMISSION. The state of public order continues satisfactory. At least five years have passed since any Moro raids have occurred north of Brooke's Point, and the Moros south of that point have been kept well under control, and appear to be contented. On their petition, approved by Lieut. Reid, the limits of their reservation were extended to the west coast in March, 1914, and thus far no ill effects have resulted. The Legislature created the position of lieutenant governor and appropriated adequate funds for it, to take charge of the southern portion of Palawan, which includes the Aborlan reservation and the Moro country, with headquarters at Brooke's Point. Lieut. Frank Ieid, who had been in charge of these Moros for sone years, but had been recalled to his regiment in August, 1914, resigned his position in the Philippine Scouts early in 1915 to accept appointment to this new position, in order to devote his entire attention to improving the economic and agricultural condition of the inhabitants and to advancing their civilization. Mr. C. M. Weber, who had assisted Lieut. Reid by taking charge of the Moros on the west coast, was appointed to take his place during his temporary absence, and subsequently to succeed Mr. Finnigan at Aborlan. Owing to the efforts of the head forest ranger the caifigin evil is abating, being replaced by a marked activity in homesteading. The giving of definite titles to lands is being facilitated in every way. The province is entirely free from rinderpest and surra, and a plague of locusts was quickly exterminated by the energetic action of the authorities and people of Cuyo. Tihe exceptionally dry season caused a failure in the rice harvest, which was made up in part by the planting of quick growing crops and garden vegetables. The main exports are timber of various kinds, rattan, tan barks, nigue, almaciga, and beeswax. Much of the rattan is taken to Kudat and thence to Borneo and Hongkong, from where it is shipped not only to the United States and Europe but to the Philippines. This is due to the fact that the natives do not know the proper method of preparing rattan, but it is hoped that the investigations already made by the bureau of science will make it unnecessary hereafter to ship rattan to Singapore and Hongkong for treatment. Communications were maintained during the year by the steamship Ianglina, operated by Pujalte & Co., which touched at Coron, Culion, Ctiyo, Araceli, Puerto Princesa, Brookes Point, and Balabac, thus giving an outlet for the products of the island. The provincial steamer Florence makes trips between the different points and also to Kudat, Borneo, thus relieving the inconvenience caused by the withdiawal at the beginning of the year 1914 of the special customs authorization for the clearance from Balabac to Kudat of boats under 30 tons capacity. A controversy arose during the year between one of the lumber companis and the province over the debts of Tagbanua laborers. The department referred the matter for investigation to a committee consisting of Gov. Detrick, Assemblyman Sandoval, and Mr. Finnigan, the superintendent in charge of the Tagbanua Reservation at

Page  79 REPORT OF THE SECRETARY OF THE INTERIOR. 79 Aborlan. Following the report of this committee, very substantial reductions in these debts were made by the employers, and regulations were established by the department by which all advances to Tagbanua laborers are prohibited unless approved by the superintendent, and then only for limited purposes and in small amounts. It was also provided that all wages must be regularly paid in cash, without deduction, excepting for the small advances authorized by the superintendent and excepting deductions of not more than onehalf of the wages until the remaining old debts are discharged. Under this system the Tagbanuas have at least begun to receive actual cash for their labor, instead of getting farther and farther into debt the more they worked. The province has been provided with a district health officer and three sanitary inspectors. Three more sanitary inspectors are necessary to protect Coron, Bacuit, and Cuyo, which are still without any medical assistance of any kind, and the department hopes to be able to provide them soon. By the energy of Mr. Amb. Pablo, the acting treasurer, and that of the local officials cooperating with him, the revenues of the province were increased by 70 per cent in 1914. MINDORO. Mr. Juan Morente, jr., was appointed governor on February 12, 1914. Large numbers of cacao, coffee, orange, and mango trees have been set out, and promise to be of great value to the province in the near future. At present there are about 150,000 coconut trees bearing fruit, but very soon over 400,000 will be productive, and a great increase in the export of copra may be expected. Good success has attended the corn demonstrations conducted by the schools, and also the home and school gardens. The example set by these institutions has been beneficial in increasing the food supply in general. Cattle raising is also proving a successful industry, and lumber, sugar, hemp, gums, and other forest products are also exported. The lack of communication has been one of the great handicaps of the province of Mindoro, but work has been progressing on the construction of roads, and the recent appropriation of P30,000 for this purpose will give an impetus to the growth of the province by opening rich agricultural lands in the vicinity of Lake Naujan, which are now inaccessible. There are at present eight artesian wells, and more will be provi(led as fast as possible. Outbreaks of cholera were suppressed by the energy of the officials of the bureau of health. Owing to the death from malaria of Mr. Jesse D. Ward, the nlangyan agent, work for this people has been interrupted, but funds have been made available, and plans are being perfected for aTssisting them with schools, exchanges, and permanent settlements. The supervisor-treasurer, Mr. Thomas I. Weeks, has been very $ibcient in his management of the funds of the province, and has been most energetic in projecting and carrying out plans for the economic development of the province.

Page  80 so REPORT OF THE PHILIPPINE COMMISSION. NoN-CHRISTIAN INHABITANTS' FUND. The provincial boards of Albay, Antique, Ambos Camarines, Bataan, Capiz, Ilocos Sur, Iloilo, Isabela, Mountain, Mindoro, Nueva Ecija, Nueva Vizcaya, Occidental Negros, Oriental Negros, Palawan, Pangasinan, Rizal, Tarlac, and Zambales have shown a most gratifying willingness to accept the suggestions of this department that the non-Christian inhabitants' funds, which have been accumulating for many years, should be expended for the benefit of the nonChristians, and have made appropriations for industrial and agricultural schools, plow animals, seeds, agricultural implements, trails, and such other means of advancement as seemed advisable in each case. In many instances these funds have been used for gathering together the nomadic non-Christians in settlements where they could be assisted under proper superintendence to better their conditions. Special reservations of land have been made for these wandering people in a number of places, and, under the necessary supervision, they have shown a willingness to give up the making of caifgins, and to settle permanently upon the site reserved. The bureau of forestry has taken special interest in this work. as it tends to prevent destruction of the forests, and the bureau of education has constantly given valuable suggestions and even consented in many cases to assume direct charge of the work, which is being conducted along lines approved by experience. THE BUREAU OF HEALTH. PERSONNEL. The position of assistant director, which had been vacant for many years, was filled on January 22, 1914, by the appointment of Dr. Vicente de Jesus, who has cooperated most harmoniously with his American colleagues in the bureau. During the absence of Dr. IHeiser, the director of the bureau, who was on leave in the United States from the middle of July to the latter part of November, the commanding general courteously permitted the department and Dr. de Jesus, who was acting director of the burealu, to consult Maj. Edward L. Munson, of the Medical Corps, United States Army, in an advisory capacity, a favor for which the department and the bureau are most grateful. Shortly after the close of the year, but before the writing of this report, Dr. Hleiser, who had been for 12 years in the service and for 10 years director of health, resigned to accept a position of even greater importance with the Rockefeller Institute. He is to investigate health and sanitarv conditions in the Orient, to prosecute researches into tropical diseases, and to institute measures for their prevention on a large scale. While the Philippine Islands will share in the benefit of this great work, his resignation, nevertheless, is a serious loss. The success of Dr. Heiser's service in the Philiopines has attracted the attention of observers throughout the world, and the department, as well as the whole people of the Philippines, is greatly in his debt.

Page  81 REPORT OF THE SECRETARY OF THE INTERIOR. 81 Dr. John D. Long, who is a surgeon of the United States PublicHealth Service, has been appointed, at Dr. Heiser's suggestion, to succeed him. Dr. Long became very well known to the Filipino people during his past years of efficient service. He speaks Spanish and Tagalog fluently, and his appointment, which is most satisfactory to the department and to the bureau, has been received with great cordiality by the Filipino people. FILIPINO AND AMERICAN COOPERATION IN TIIE HEALTI WMORK. It has been the greatest satisfaction to find not only the numerous Filipino members of the bureau of health but also the leading Filipino medical men, the Filipino press, and the Legislature willing and even eager to support the work of the bureau in every possible way. No one could ask for a more helpful disposition or more active cooperation, and even the general public, which in every community is likely to obstruct sanitary measures, is here certainly remarkably acquiescent and amenable to reason. GENI ERAL HEAJLTHI CONDITIONS. The effectiveness of the bureau's work has continued its steady gain without interruption, as is shown by the decrease in the death rate in Manila, which is the only portion of the islands having complete vital statistics. These statistics (printed in full in the report of the director of health) show that the average death rate for the fiscal year 1914 was 24.67 per thousand, which is the lowest on record for any fiscal year. The rate in the calendar year 1913 was, however, 23.82, and owing to the change in the period comprised in the fiscal year by which it has now been made to coincide with the calendar year, this figure may be taken into consideration. The first and second quarters of 1914 each showed a better record than over before, and the third and fourth quarters were better than any year excepting 1913. In June, 1914, the death rate was the lowest for any month on record. These records for Manila reflect the general conditions throughout the islands, as compared with former years. Manila is the center of communication with all parts of the Archipelago, and no considerable damage could occur elsewhere without being in some way reflected here. In fact, the conditions in the provinces have been unusually good. In Cebu, which has vital statistics more reliable than those generally to be found outside of Manila, the death rate was only 16 per thousand, which was the lowest ever known there. SITUATION IN THE PROVINCES. Flor some years representatives of the provinces have felt that the city of Manila was receiving an unfair proportion of the sanitary service, as out of a total expenditure of the bureau of health, for instance for the year 1913, of P2,307,218.78 for operating expenses. depreciation, and interest on capital account, only P1,194,901.51, or 8329-15 -6

Page  82 82 REPORT OF THE PHILIPPINE COMMISSION. about 52 per cent, had been assigned to the whole territory outside Manila, though it has 97 per cent of the population. It must not be assumed, however, that the city should have reimbursed the insular government for the whole of its share of this expense, because it is only one item in a long account of mutual services which has never been balanced. Also, as Manila is the center of communication for all parts of the Archipelago, the first principles of sanitation require that it should be the earliest point to receive attention. There seems to be a general agreement that the time has come for greater attention to the sanitation of the provinces, and during the past year the bureaui has made considerable progress in this field. The act passed by this Legislature reorganizing the bureau contained thoroughly satisfactory legislation for this purpose, and will render greater advances possible during the coming year. In (( eb the district health officer reports that artesian wells a nil reservoirs have largely replaced the insanitary wells; vaccination of 11 the inhabitants is nearing comnpletion; a threaltened invasion of cholera was slccessfully rep.lled; the campaign against soil pollution lhas mad(le goodl progress; pers-ons requiring hospital care were tralnsferred from, all ports of the prrovince to the Southern Islands Hospital and treated-; all known lepers have been isolated; trachoma examinations have been made in the schools; and, in general, modern health mCeasulres have been very successfully carried out, with the reslilt, as before stated, that the available figures show a death rate below 16 per thousand. Sanitation in the department of Mindanao and Sulu has not been undler the bureau of health, and so this department can not be given credit for tie remarkable work which has been done there. It may be proper to refer to it, however, in order to complete the smmlll-lary of the health and sanitary work of the entire Philippine Islands. This work in Mindanao and Sulu has been conducted by the Army alnd lnder charge of Maj. E. L. Munson, Medical Corps, United States Army. In July he was succeeded by Dr. Jacobo Fajardo, who has successfully continued the work. 'fhree hospitals and 47 dispensaries have been established; drinking water reservoirs are under way in Jolo and Zamboanga; sanitary pails are being installed; 34,000 vaccinations have been performed; mlunicipal sanitation in some of the towns is good and much progress is beilnf ntade in others. The establishment of dispensaries and Ilos)itals has not only resulted in bringing relief to the sick and slffering. but has been a most important factor in promoting order. The introduction of Filipino doctors and practicantes among the Moros haes proved a helpful measure toward the pacification of the Moro Province. SANITARY MEASURES. TRAVELING EXHIBIT. A railroad car has been equipped as an exhibit and has made trips into the provinces in charge of Dr. Simpao, who is making an effective educational campaign by means of illustrated lectures as well as by the exhibit.

Page  83 REPORT OF THE SECRETARY OF THE INTERIOR, 83 SOIL POLLUTION. The campaign against soil pollution has made much progress during the year. Health Bulletin No. 13, entitled "The Disposal of IHiuman Wastes in the Provinces," was issued, and its contents are being taught in the public schools. As a result of the efforts put forth it is estimated that at least 100,000 sanitary pails have been installed. MANILA WATER SUPPLY. The Manila water supply should be enlarged, as during the dry season, which ended in the month of June, it became necessary to supplement the supply from the Montalban watershed by pumping from the Mariquina River into the city reservoir. As previous experience has shown that when such measures were necessary an increase in morbidity and mortality invariably resulted, it was decided to use calcium hypochlorite for the sterilization of the water. The average bacterial count at the reservoir was 200 colonies per cubic centimeter; in the city, after sterilization, the count averaged from 37 colonies per cubic centimeter to 55 colonies per cubic centimeter, and the usual increase in morbidity and mortality was averted. After the sterilization, the colon bacillus was found at rare intervals only. Notwithstanding the success of these measures this year the shortage of water in Manila during the dry season is a serious menace to the safety of its population, and steps should be taken immediately to provide an increased supply, which should also be available for those towns in the Mariquina Valley and near Manila in which the installation of artesian wells has proved impracticable. PROVINCIAL WATER SUPPLY. In the provinces successful artesian wells have been drilled as follows: Fiscl 1 year: 1]14,__ ________________ ---_______ _ 150 1913_. ---1.. —_ -__ --- —-—. -— _ -------- 145 19(12 --- —-_________________ _.____ --- — ___ ----__ — -______ —_- 147 1911___ _-___________________ —_ — - -------— 224 During the six months between the fiscal year 1913, which ended June 30, 1913, and the next fiscal year, which began on January 1, 1914, 84 such wells were drilled. SANITARY MARKETS. The construction of sanitary markets has been encouraged throughout the islands, and loans are being made by the insular government to municipalities for the purpose of constructing them, as in the past. These projects are becoming increasingly popular, as experience has shown that they are a prime factor in improving the health of the community, and the rentals form a steady source of income for the municipalities.

Page  84 84 REPORT OF THIE PHILIPPINE COMMISSION. GARBAGE RECEPTACLES. Garbage receptacles of standard type are now avaailable in Manila. and are rented to individuals by the city for sums ranging from 87] centavos per month to 25 centavos per month, depending upon the size and type of can desired. This has resulted in a much more universal use of garbage cans than formerly. MILK. The fresh-milk supply of the city of Manila is still very unsatisfactory, although a few dairies have complied with the standards of the commission on milk standards appointed by the New York milk comlnittee. The Legislature has given an appropriation to the '; Gota de Leche Society for the Protection of Infants" for the construction of a building in which to place the milk-sterilizing plant which was donated by Mr. Nathan Strauss, of New York. As soon as this building is completed and the plant installed it is believed that mulch more rapid progress can be made in improving the milk supply through the demonstrations that may be made here. Canned milk has been imported in large quantities on account of the poor quality of the fresh milk available in the islands. Excellent canned natural whole milk can be bought for about 24 centavos per liter. Due to competition, however, some dealers imported skimmed canned milk. As this was not suitable for food for children, the Legislature placed a tax upon it of 20 centavos for each kilogram of gross weight of milk and containers, which has effectively discouraged its further sale. MOSQUITO FISH. A supply of mosquito fish (Cambusia afflnis) from Hawaii were introduced into the fish ponds, esteros, and fountains of Manila for the purpose of destroying mosquito larvce. At first, a number of these fish were destroyed by native mud fish, locally called dalag, but now they appear to be gaining headway against these enemies, and may eventually be of considerable use. INFANT MORTALITY. The committee composed of Dr. W. E. Musgrave (chairman), Dr. Luis Guerrero, Dr. Proceso Gabriel, Dr. Joaquin Quintos, and Dr. Jose Albert, appointed under the authority of an act of the Legislatlre to investigate tle cause of the excessive infant mortality in the Ph lippines, made a report showing that over 60 per cent of the infants born fail to reach the age of 5 years, most of them dying from preventable causes. In a country which has such resources and such need of labor for their development, this is a very serious misfortune, even if we consider nothing but the economic aspect. Lack of adequate sanitation in the provinces outside of Manila; defects in the food supply, especially those which produce beriberi (which causes more of the deaths than any other disease); lack of

Page  85 REPORT OF THE SECRETARY OF THE INTERIOR. 85 social betterment activities, including especially lack of facilities for training midwives; and the want of a proper system for isolating the insane and preventing their propagation-these, in the judgment of the committee, are the principal causes for the extraordinary infant mortality. These causes are discussed elsewhere in this report, excepting the question of the insane, which has received considerable discussion and study during the year, but has not reached a formulated program. MIDWIVES. The Legislature passed an act authorizing courses in midwifery in the Training School for Nurses, and the instruction will begin in April, 1915. SPECIFIC DISEASES. CHOLERA. Cholera has occurred in the Philippine Islands in the years 1882, 1892, 1902, and every year since. In 1914 it appeared in July, almost simultaneously in Manila and the province of Rizal. Upon the departure of Dr. Heiser shortly after the beginning of this outbreak on his long overdue vacation, Maj. E. L. Munson, Medical Corps, United States Army, was courteously permitted to advise the department and the bureau on the suppression of the disease. Investigation showed the existence of a large number of cholera carriers, and the bureau found it necessary to isolate these persons in San Lazaro hospital for periods of about 10 days each. In the early stages of this campaign some opposition occurred because these patients were apparently in perfect health, and they and their friends could not understand why their liberty should be interfered with. The bureau, however, explained the necessities of the situation with the greatest patience to all persons interested, and by this means and through the cooperation of leading Filipino physicians (who gave it most readily and heartily), and also of the press, the opposition was removed, and the disease was soon effectively controlled, never reaching the proportions of 1911 or any of the preceding years. LEPROSY AND THE CULION LEPER COLONY. Dr. Paul C. Clements, as director, has continued his successful administration of the colony at Culion, assisted by Dr. Jose Martin, the assistant director, and upon his retirement by Dr. Vicente Frias. The Sisters of St. Paul de Chartres and Fathers Tarrago and Tomas 'lave continued their devoted work. As a result of investigations conducted by a committee of the Philippine Assembly and by the department in consultation with ('ommissioner Ilustre, Drs. de los Angeles and Santos of the Assembly committee on health, Dr. Velarde of the Colegio Medico Farmaceutico, Villa Real of the bureau of justice, and Mr. Miranda of the Assembly staff, several changes were made at the colony. Compulsory labor on public works was abolished, but at the same time payments of money gratuities were discontinued to all the able

Page  86 86 REPORT OF THE PHILIPPINE COMMISSION. bodied men and a wage scale for all corners was substituted. This system has provided better and more regular labor at less cost and it has also had a tonic moral effect toward making the colony as nearly as possible a normal community. The effort to encourage colonists to undertake normal occupations, especially agriculture, has been continued by the building of a rotad into the adjacent farming land, by legislative provisions for an agricultural supervisor, and for work animals and agricultural implements. The systematic planting of coconuts has been begun. The nursing personnel was increased by the addition of two more Sisters of St. Paul de Chartres and the demand for more medical assistance was met by the establishment of a new medical position by the Legislature in the appropriation act. This position has been filled by the appointment of Dr. Oswald E. Denney, who, in addition to his clinical work, has undertaken a systematic research into the causes and transmission of leprosy. Pending an increase of the appropriation the ration was improved withott added expense by slightly reducing the quantity of meat on meat days and using the resultant saving to provide fish for additional days, so that either meat or fish was issued for every day in the week. The Legislature has now increased the appropriation for food from p200,000 to p240,000 so that still further inprovements can be made. While the methods of diagnosis preliminary to the transportation of patients to Culion were as secure as possible against error, it appeared that they were not sufficiently convincing to the patients and their friends, and an unfortunate impression existed that errors were occurring. rThis impression arose from the fact that cases adjudged to be positive upon the report of one physician would frequently show negative results on examinations by other physicians. The reason for this was that the leprosy germs are sparsely distributed in the system, so that any number of negative slides migllt result even from an unquestionably positive case; and so while any number of negative slides should be overruled by a single positive one. he general public, however, could not be expected to know tills fact and therefore leper suspects and their families would be fil!ed with false hopes upon receiving negative reports and with bitter doubts of the accuracy of positive reports. To devise for the department a solution of these conditions a committee was a ppointed, consisting of I)r. FIernando (Calderon. of thle University of the l'hiippi nes, assistlnt dean of the College of Mledicine aInd Surgery, and assistant chief of the Philippine Geeneral Ilospital diision of the bureau of health; Dr. 1. Santos, of the Philippine Assenmbly; Dr. A. P. Goff, the chief of the San Lazaro Hospital division; Dr. E. Mercado, of the bureau of health; Dr. John A. Johnston, of the bureau of science; Dr. Luis Guerrero, representing the Colegio MIedico Farmaceutico; and Mr. C. C. Batchelderl of the secretary's office. This committee recommended the formation of a standing committee of three, consisting of one American, Dr. Johnston, of the bulrela of science, and two FIilipinos, Dr. Mercado, of the bureau of health, who had given much study to the stbject of l eprosy, and D ir. lonfez, of the Colegio Medico Fa-rmaleettico o pass finally upon -" microscopic analyses, and especially to make their examination of "all

Page  87 REPORT OF THE SECRETARY OF THE INTERIOR. 87 slides at joint meetings, so that they should all pass upon the same slides and make a united report. This recommendation was put into effect. The same committee recommended the construction of two inexpensive buildings at San Lazaro Hospital for isolation of suspects, pending final diagnosis, so as to avoid danger of their being infected by the positive cases. In order to give the colonists the satisfaction of seeing friends and relatives, and also to correct prevailing ideas about the conditions at the colony, the department arranged for a holiday visit of relatives and friends of the lepers from various parts of the islands. At the same time a delegation representing the Women's Club of Manila visited the colony, carrying a bountiful shipload of Christmas gifts. For the entertainment of these visitors the colonists provided an elaborate and successful program of festivities, including a concert, baseball and other athletic games, a competitive decoration of houses, a parade of decorated rafts, and an original play in Tagalog. These excursions appear to have worked a considerable change in the feeling not only of the colonists but of the families and friends from whom they are separated. Following this celebration a library of some 7,000 volumes, collected largely by Comrmissioner and SenTora de Veyra, has been sent there. BERIBERI. Beriberi caused 1,042 deaths during the year in Manila alone. It is one of the chief causes of the alarming excess of infant mortality throughout the islands. Further trial of tiqui tiqui has confirmed its value as a specific, but it is expensive, and the bureau of science was able to produce only enough for treatment of 700 infants. The permanent solution of the problem appears to lie in preventive measures. The experience of the year has strongly confirmed the opinion that the disease does not occur where unpolished rice, instead of polished, is used, and therefore I concur in the recommendation of my predecessor that the use of the polished variety be discouraged by taxation. MALARIA. Malaria was the subject of extensive investigations made during the year by the bureau of science and reported by Dr. M. A. Barber. The result indicates that the disease is transmitted only to small extent, if at all, by the A. rossi, and not extensively by the A. maculatus, but principally by the A. febrifer. As the A. febrifer breeds principally along the edge of rapidly flowing streams, where experience appears to show that it can be effectively eradicated at comparatively small cost, this discovery is likely to be of much practical value. The bureau distributed throughout the provinces 785,000 tablets of quinine of 5 grains each. While undoubted benefit has resulted from their distribution, no definite data have so far been obtained. TYPHOID FEVER. Typhoid fever is probably widely distributed over the islands, but no large outbreak or unusual condition has been reported. Every

Page  88 88 REPORT OF THE PHILIPPINE COMMISSION. effort is being made to suppress this disease by vaccination, improvement of water supply, and other sanitary measures, and also by a systematic educational campaign through lectures, pamphlets, and letters. PLAGUE. Plague, both rodent and human, has disappeared from the islands as a result of the vigorous antirat campaign, accompanied by the active enforcement of the ordinance in reference to rat-proof construction, and probably assisted to a great extent by the flood which occurred during September. The last case occurred on September 12. 1914. Measures will be continued with vigor, however, to prevent a return of the disease. TYPHUS FEVER. Typhus fever occurred only in a small outbreak in Mindanao, reported by Capt. George B. Foster, Medical Corps, United States Army. Eighteen cases, with one death, occurred. The disease was probably introduced by some Japanese laborers who came from Japan at a time when it was prevailing there very extensively. The outbreak was satisfactorily and rapidly handled. CANCER. Cancer has been generally supposed not to be as prevalent in the Philippines as in temperate countries. The opportunity afforded, however, in the Philippine General Hospital for the study of this disease rather indicates the contrary, but sufficient statistics have not as yet been obtained to justify a positive statement. DIPHTHERIA. Diphtheria occurred at intervals in the city of Manila throughout the year, but at no time was the number of cases sufficient to cause any particular uneasiness. THE PIHARMACY EXAMINXATIONS. In the early part of the year the irritation which had been growing for a long time in regard to the policy of the pharmacy board became urgent. Protests were lodged against the character of the examination prescribed by this board for pharmacy licenses, chargSng that the examination was of an arbitrary, catch-question type, better suited to prevent competent and well-trained pharmacists from entering the profession than to keep the unfit out. Two large public hearings were held on this matter, after which tie department appointed a committee which scrutinized the examinati(n p)lpei and advised the elimination of a number of questions as unsuitable. No other changes could legally be made, but the board was requested to mark the papers in a liberal spirit in order to pa ss those who were evidently qualified for efficient service. The board accepted these suggestions and a more successful examination

Page  89 REPORT OF THE SECRETARY OF THE INTERIOR. 89 was held. Protests and appeals of disappointed candidates were referred to an independent committee, which sustained the board. Subsequently, however, being unwilling to follow the opinion of the attorney general that they were bound by law to issue a license to a certain pharmacist who had practiced under the Spanish government, and being also unwilling to adapt future examinations to what appeared to be the just requirement of the islands, all three memlbers resigned and successors were appointed. THE PI-LIPPINE GENERAL HOSPITAL. REORGANIZATION. After several public hearings and numerous conferences with persons interested some changes were made in the administrative organization of the hospital. The former distribution of responsibility between the bureau of health, represented by a superintendent of the hospital responsible for certain phases of the work, the College of Medicine and Surgery, represented by a chief of staff responsible for certain other phases, and a School of Nursing, more or less independent of both, was replaced by a system in which all responsibility was centralized in one person, who is both chief of the Philippine General Hospital, division of the bureau of health, and dean of the College of Medicine and Surgery in the University. Thus far the change has worked well. PERSONNEL. Under this plan Dr. W. E. Musgrave, dean of the College of Medicine and Surgery and chief of staff in the hospital, was appointed chief of the Philippine General Hospital, division of the bureau of health. He has succeeded in eliminating public dissatisfaction to a large extent and in stimulating a spirit of loyal cooperation among the officers and employees. Prof. Fernando Calderon, vice dean and chief of the department of obstetrics in the College of Medicine and Surgery, has been appointed assistant director of the hospital. PAY-PATIENT DEPARTMENT. In order to avoid a feeling among private physicians that some of them might be discriminated against in caring for their private patients in the hospital, the pay-patient section was entirely separated from the other service of the hospital. MEDICAL ATTENDANCE FOR GOVERNMENT EMPLOYEES. This subject is discussed in connection with the act of the Legislatnre which dealt with it. The service has been made more satisfactory by the special emPlloyment of two attending physicians (Dr. George B. Angle and I)r. Perpetuo Gutierrez), two attending surgeons (Dr. P. K. Gilman and Dr. Jose Eduque), and an obstetrician (Dr. Mariano Tolentint).

Page  90 90 REPORT OF THE PHILIPPINE COMMISSION. NURSING AND MIDWIFERY. The legislation in aid of these services is mentioned elsewhere. The school has steadily grown in efficiency, under the successful management of Miss Elsie P. McCloskey, the superintendent. CLINICAL LABORATORY. With the approval of the director of the bureau of science, the clinical laboratory, which was a branch of the bureau of science, though located in the hospital, was transferred to the management of the director of the hospital. PROFESSIONAL WORK OF THIE IOSPITAL. During the year 7,193 patients were treated within the hospital proper, 60,675 patients were given free dispensary service, and 21,174 patients were dealt with by the receiving service (including attending physicians and surgeons offices), or a total in all services and departments of 175,728 "patient visits" for the year, which makes an average of nearly 600 for each working day. Of the patients treated within the hospital proper, 732 were Americans; 6,125 Filipinos; and 336 were of other nationalities. DORMITORY SPACE. The overcrowding of physicians, nurses, and pupils has been somewhat relieved by the completion of the free-dispensary building, with space for 30 internes and resident members of the staff, and by the renting of the old Mercado dormitory, formerly occupied by the bureau of education, for occupation by the young male nurses and pupils of the training school. These young men, by unanimous vote, very courteously gave up their more attractive quarters in one of the dormitories on the hospital grounds and accepted these more distant accommodations in order that the young women in the school might have the better dormitories and conveniences. RECOMMENDATION S. i ior hospitail lneeds Ilorle l(dormitory space and pavilion for tlh care of delirious and noisy patients. The estab)lishment of n public welfare and social service department shouldl be provided for in order to relieve the congested wards from patients who, tbhough convalescent, still require some attention. LECISLATION. Several of the acts passed by the Legislature in aid of the health service were not finally enacted until the beginning of the calendar vear 1915, but as they really form a part of the history of the Legislature of 1914, they will be referred to here.

Page  91 REPORT OF THE SECRETARY OF THE INTERIOR. 91 THE HEALTH REORGANIZATION ACT. This act is the most useful single piece of legislation of this Legislature in support of sanitation and health. It was approved by the Colegio Medico-Farmaceutico and the Medical Association of the Philippines, as well as by this department. It provides a systematic organization of personnel, radiating from the director through chiefs of division, deputy chiefs, medical inspectors, senior surgeons, and junior surgeons, all arranged in regular civil-service grades, with a secure system of civil-service entrance and promotion. The organization is arranged in four divisions, one each for general inspection, sanitation in the provinces, sanitation in Manila, and hospitals and dispensaries. Geographically the system spreads out from Manila into districts and subdistricts, covering each section of the Archipelago, and very satisfactory provisions are made for organizing provincial and municipal sanitation as a part of the general service, but with obligatory financial assistance from the local revenues. A feature of the bill which I believe will prove helpful and important is the creation of an advisory council of hygiene of seven members, to be appointed by the Governor General, on nomination of the secretary of the interior, one each from the Colegio MedicoFarmaceutico, the Philippine Islands Medical Association, the University of the Philippines, the University of Santo Tomas, and the bureau of health, together with one lawyer and one property holder. The powers of this council are entirely advisory, but in a service which includes officers of a different race from the public the cooperation of such a body is expected to be most useful. MEDICAL SERVICE FOR GOVERNMENT EMPLOYEES. At the beginning of the American occupation it was provided that the government should furnish medical attendance to its employees and their dependents without charge. This was due to the scarcity of medical men in those days, and the peculiar situation of American employees. Under the conditions of recent years, however, when the persons authorized to receive this service have come to number nearly.10,000, mostly Filipinos, the privilege has been considered by many to be no longer desirable. Thus far it has been possible only because relatively few of the Filipino employees realized their right to it or cared to take advantage of it. Also, when applied to so large a number of persons, it has come to be a serious government competition with private physicians and pharmacists, a competition which has been particularly unfair in that government employees who preferred to consult private physicians were debarred from receiving the special services of the hosPltal and laboratory on the same terms with their fellow employees who consulted the official physician or surgeon. Under these circumstances the Legislature passed an act abolishinr the privilege, effective Januarv 1, 1918, a date beyond the period of the longest existing contract, but limiting it, in the meantime, to

Page  92 92 REPORT OF THE PHILIPPINE COMMISSION. the employee himself. his wife and minor children(instead of all dependents, as heretofore), and excluding treatment for diseases caused by fault of the patient. Government employees, however, are to be allowed a priority in admlission to free wards and a discount of 33W. per cent from the usual charge for all hospital, dispensary, laboratory, or other special services. This arrangement was reached after several hearings, in which all points of view were presented. It has been accepted as fair by all parties. GOVERNMENT CHARITIES. In the past practically all of the public charities have been administered by the bureau of health, though the organic laws also provide for the administration of matters of a charitable nature by the secretary of public instruction. In order to eliminate the duplication of effort by the department of public instruction, the bureau of health, and private institutions. the Legislature passed an act to bring about the coordination of all these institutions under a board within the department of public instruction, but containing the secretary of the interior and the director of health as members. THIE ACT IEGULATING THIE PROFESSION OF MEDICINE. The medical profession in the islands has been injured by the continuation of a practice inherited from the Spanish occupation of licensing a class of inadequately trained practitioners known as cirujanos ministrantes, a sort of second-class physician. These cirujanos received a distinct type of license, which allowed them to practice in any place so long as no regular physician settled there. The arrangement created much friction in many directions, which has been constantly increasing, because the graduation of these practitioners has been continued in added numbers year after year. The present Legislature, after several public hearings before a committee, in which all points of view were thoroughly discussed, passed an act equally satisfactory to all parties. On the one hand, it protected the just rights of the cirujanos already licensed (including those who had already begun their studies) by allowing them to practice wherever now established: and, on the other hand, it protected the medical profession and the public by prohibiting any further licensing of this class of practitioners. The colleges which have been training these cirujanos are making plans for improvement of their curriculum so as to prepare students only for the regular medical examination. THE PROFESSION OF DENTISTRY. The dental profession has been in an even more unfortunate con' dition. Only 29 persons in the whole Archipelago are qualified as regular dental practitioners, and no school in the islands has been producing,ny more.

Page  93 REPORT OF THE SECRETARY OF THE INTERIOR. 93 Seventy-nine persons are qualified as second class, or cirujano dentistas, and several schools have been rapidly turning out more of these insufficiently trained practitioners. The law has permitted these cirujanos to practice, but only in places where no regular dentist is established. To remedy this situation the University of the Philippines has just introduced courses in the medical school for training men to take the regular license; and Santo Tomas University, and possibly other existing dental colleges which have been training men in the past for the cirujano license, are expected to improve their courses in order to give the regular degrees. In an act which revises the former law regulating the practice of dentistry, the Legislature has limited the future practice of dentistry to those who are either fully qualified dentists or cirujano dentistas already licensed or matriculated. Such cirujanos are permitted to practice anywhere in the islands as soon as they have had three years' experience, prior to which time they are limited to places in which rto fully qualified dentist is established or in which they are taking studies in dentistry. In another act the Legislature has authorized a board of three dentists to examine school children, the expenses of the service being undertaken by private persons. Dr. Louis Ottofy, Dr. Antonio F. Oliveros, and Dr. A. V. de Dios were appointed members of this board and have generously consented to serve. THE REGULATION OF TIE PROFESSION OF NURSING. The necessity for nurses throughout the islands is so great and the supply so limited that it is inadvisable to require special examination for nurses' license, and accordingly the act passed by this Legislature authorizes the issue of such licenses to all persons holding diplomas from a hospital school of nursing having facilities and curriculum of a certain standard. It permits any intermediate graduate, if person of good moral character and not guilty of abuse of the privilege, to practice as a second-class nurse. THE HYDROPHOBIA PREVENTION ACT. An act prepared by Dr. Ieiser was passed giving the bureau of health authority to order the muzzling of dogs in any locality into which hydrophobia has entered or is in danger of entering. THE APPROPRIATIONS. For the year 1914 the appropriation for the bureau of health was 91,734,468.34, though the bureau had expended only P1,699,276.86 Cut of the P1,852,761.73 of its appropriation for the preceding year. For 1915 the appropriation Las been increased over last year to P1,840,596.70, which is satisfactory to the bureau, considering the necessities of economy.

Page  94 94 REPORT OF THE PHILIPPINE COMMISSION. LEGISLATION PASSED AT THE SESSION OF 1913-14, AFTER THIEDEPARTMENT 's LAST AN NUAL R~EPORT. The legislative session which occurred in October of 1913, passed the following acts of im-portance to the health service: Act No. 2317. Amendment to food and drugs act requiring statement on the palckalge. of qvandtit or numlber of units in coi)tenlts. Act No. 2339. Section 72, placing a tax on skimmed milk. Section 124 providesq forpi J ilum. on skimmned-milk containers the statement. This m-illk is not suitible foi nouri slimenet for infa nts les;s thimii I ye.ar of,ae. Act No. 2:342) prohibits false, fraudulent, or misleading, advertisements or labels of patent m.id proplie~tary medicines, aind the adlvertisemenit and sale of fniui(luleit tlieraj entice (Ivices;. Act 'No 2'248:appropriates V1-5.00 for the encouragement of athletics. Act No. 2370 aoppropriates V,70,000 for the support of variou01s specified semipublie churities, in lieu of a lum-p sum. for the medical and surgical treatment of tle, p)00r. Act JNo. 2)716 approprlateq P1-,000 for extract of tiquitiqul to be used for the, tre-tm aet of ibei iben-i (istrilbued under the direction of the Philippine Nationail Leag)ue for the Protection of Early Infancy. Act No. 237,8 aipprojpri'.tes: For filling in lowhl d in Mani,11la~ --- —- --- -- -- - -- -- - -- - f~1O 000 For Slu Lazni-to Hlospitali, construction and equipment of iiew creInII torv~ --- - --- -- -- - -- - - -- - - -- - -- - --- - - -- - - 0, 000 Culion leper colony: For hospild IbI illdings aind houses. --- —------------- 5. 0(00 F"or illprovelnelit of Wvater systems and general repairs~~ --- —15. 000 Bil hibld Pri son, saul ittion diii -Iion, for permanent sanitary improvemieiits~~ — - - - - - - - - - - - -- - - - - - - - - - - - - - - 3, 000 'For tb rlle of airtesian1 wvel~40 0 Act No. 2:381, provides for the restriction of the use of opium and other prohlibited dru-1gs. Act No. 2382 amnends previous acts regulating the practice of pharmacy in the Phi11lippinle Iln Act No. 2395. among other things, appropriates ~3,000 for repair of bureau of health buildings in the territories inhatbited by the non-Christia-n tribes. Act No. 2400 appropriates P-21,170 for bureau of health work in the Mountain Province alnd subprovincees. Act No. 2-407 approp~riates for the maintenance of public dispensaries and hospit~lls iii lMiidanaio andl Suml. Act No. 2408 iprovides aI temporary form of government for the territory known as the depa-rtment Of M~lindannlo and Sulu, and, among other matters, provides for a health othecer and. assistants. Act No. 2-123 -appropriates 1*130.000 toward the expense of dispensaries, hospitals, tad health service in the department of Mindanao and Sulu. ORDINANCES, CITY OF MANILA. The follow ing Manila ordinances have reference to matters of sanitation and disease prevention: 21.2 appropriates V-6,00 for the construction of drains on Calles Melchor Ca no tand Lorenzo Chacon. 217 provides for rat-proof construction In buildings to be erected. 222 approlpriates?,4,791.85 to cover deficit on account of Public charities. 2251 defines a-,reas which are not to be contaminated with rubbish or garbage. 226 appropriates, P-1200 for the support of the orphan asylum maintained by, the Belgian Ca'noness'efs Mlissionaries. 231 provides that pure water shall be furnished for drinking purposes to patrons of hotels, restaurants, boarding houses, etc.

Page  95 REPORT OF TIHE SECRETARY OF THE INTERIOR. 95 RECOMMENDATIONS. The following are the recommendations made by Dr. Heiser in his final report as director of health, with the department's comment: (I) That an appropriation be made to construct additional buildings for the insane, and to provide for the maintenance of a largely increased number. The present facilities are entirely inadequate to meet the needs of even the mlost urgent cases of insanity. This subject has received much study during the year, and various plans are under consideration. (2) That legislation be enacted for the more centralized control of sanitation in the provinces, with sufficient appropriations to improve the sanitary conditions. This was done. (3) That legislation be enacted for the purpose of discouraging the consullption of polished rice lamong those who use it as a staple article of diet. Tile accomplishment of this object would prob:hbly result in th-l saving of manly thousands of adult lives, prevent thousalnds of cases of illness, and bid fair to mlake a great reduction in the infant mortality. Several conferences were held on this subject, as a result of which the department recommends the imposition of a progressive tax on polished rice, and that efforts be made to obtain international cooperation in gradually suppressing the use of it. (4) That there be constructed an additional isolating pavilion for dangerous conimunic;ible diseases and better kitchen facilities for the insane at the San Lazaro Hospital. These matters have been provided for. (5) That steps be immediately taken to provide an increased water supply for the city of Manila. The experience of the past three years shows that the shortt;,ge of water during the dry season is a serious menace to the health of Manila. This increased water supply should be sufficiently adequate to provide wi;ter for those towns in the Mariquina Valley and near Manila in which the installation of artesian wells has proved impracticable. The department concurs in this recommendation. (6) An appropriation for a pupil nurses' home. The increased number of pupils at the Philippine Training School for Nurses authorized by the Legislhture makes it urgently necessary to have additional living accommodations. The department concurs in this recommendation. (7) That legislative authority be given to abate nuisances on private property and to make the cost thereof a lien against such property. A clause to accomplish this was introduced in the bill to amend the charter of the city of Manila and will undoubtedly be considered by the committee authorized by joint resolution of the two Houses of the Legislature to discuss this bill. (S) That legislation be enacted to make compulsory the muzzling of dogs for several years. The enforcement of such an act and the regulation of the entrance of dogs into the islands would result in the eradication of rabies, which is now responsible for many deaths each year. This was done by the Legislature. (9) The appearance of cholera during the year has again forcibly demonStrated the desirability of additional research work with regard to this disease. The department concurs in this recommendation.

Page  96 REPORT OF THE PHILIPPINE COMMISSION. (10) On account of the large number of persons who contract leprosy each year and the enormous expense of maintaining them, further research into the transmissibility and curability of this disease is urgently demanded. The department concurs in this recommendation, hopes that all possible means of research will be applied to this subject, and will give every assistance and cooperation to their prosecution. As stated earlier in this report, the new medical position created by the Legislature for the Culion Leper Colony has been filled by Dr. Oswald E. Denny, a trained bacteriologist, who will devote a considerable portion of his time to this research. (11) Additional funds should be made available to assist the provinces in the extension of the efforts which they are making to establish hospitals. The department considers this a matter of great urgency. The hospitals should be small and inexpensive but numerous. THE QUARANTINE SERVICE. PERSONNEL. Thle bureau of quarantine service of the Philippine government was conducted, as in the past, by officers of the Public Health Service of the IUnited States detailed for duty in the Philippine Islands. The officer assigned to duty at the quarantine office of the port of Manila assumed the duties of chief quarantine officer for the Philippine Islands. Surg. Victor G. Heiser, P. H. S., continued to be the incumbent throughout the year, but during his absence, from July into November, Asst. Surg; B. J. Duffy acted in his place and rendered effective service, especially in the cholera campaign. EFFECTIVENESS. The regular quarantine stations were maintained at Manila, Mariveles, )longapo, Iloilo, Cebu, Zambcanga, and Jolo. Severe epidemics of plague existed during the year at Hongkong and Anoy, and, indeed, all the way from Java to Shanghai; smallpox was prevalent in Singapore, Borneo, Sydney, and New Castle: typhus fever in Japan and on the China coast; yet, though all of these places are in close commercial contact with the Philippines, none of the diseases effected entrance through the quarantine, excepting a slight infection of typhus fever, which appeared in Dansalan. Mindanao, and resulted in 15 cases, with 1 death. The enforcement of the quarantine laws and regulations of the United States, with the necessary machinery for giving them practical effect in the Orient, in the very midst of the world's great ilfected centers of lquarantinable disease, affords an excellent opportunity quicldv to test the effectiveness of the measures which are prescribed. A' review of that experience shows that the Philippines can be protected against the invasion of such diseases with a minimum amount of disturbance to commerce. Stool examinations for cholera vibrios have proved effective against the entrance of cholera; antirat measures, including a successful type of rat-proof construction of the new piers, precautions to prevent rats from passing out of

Page  97 REPORT OF THE SECRETARY OF THE INTERIOR. 9 P V I vessels, and fumigation to kill them on vessels, have prevented infections of plague, in spite of the fact that this disease is frequently brought to the doors of the Philippines; rigid vaccination of the personnel of all vessels has made smallpox almost a negligible factor; and precautions taken at ports of departure have kept typhus fever out of the islands for many years. SANITARY CONDITIONS IN THE ORIENT. The influence of America and American sanitary demands have improved the sanitary condition of the Orient more than is generally realized. In this general improvement the enforcement of the United States quarantine laws and regulations has had not a little part. All vessels bound for United States ports are required to carry out at every port of call measures and restrictions that are intended to prevent infection from gaining access to such vessels. This has created in the port cities an atmosphere of respect for such requirements. The agents of vessels have often demanded and required many sanitary improvements in foreign ports and also have had included in the port regulations many new sanitary requirements which act as a protection to the vessels. At a number of ports disinfection stations have been installed by shipowners or other persons, and the quarantine, bathing, and disinfecting operations, as well as the sanitary supervision of cargo required by the United States, has had a very widespread beneficent influence. The bureau of quarantine service is kept in touch with the occurrence of quarantinable diseases in all port cities by its close relationship with the officers of the United States Public Health Service, the same service which conducts the quarantine service in the Philippines, whose officers are stationed in the American consulates in foreign ports and whose work in the Orient is largely for the benefit of the Philippine Islands. CHOLERA. It seems clear that the outbreak of cholera in the Philippines in the summer of 1914 was not due to the introduction of the disease from foreign countries. The first cases occurred among natives of the islands who were permanent residents and had not come into contact with any foreign infections. The fact seems to be that the disease had become mildly endemic in the Philippines and that cholera carriers are more or less constantly present here. Duiring this outbreak the quarantine service cooperated most effectively with the bureau of health by examinations of all interisland vessels which might have scattered the disease into other domestic ports. GARBAGE FROM VESSELS IN PORT. Considerable progress was made during the year in enforcing the glllations against garbage dumping by vessels anchored in port. this garbage, floating ashore, furnishes food for the rats along the water front. By preventing this and by trapping and poisoning them ashore it has been possible to exterminate the rats almost entirely from the shore district. 8329-15-7

Page  98 98 REPORT OF THE PHILIPPINE COMMISSION. SMALLPOX VACCINATIONS. The quarantine service made 9,000 vaccinations against smallpox during the year, including vaccinations of all steerage passengers. AID TO OTHER SERVICES. In addition to its regular service the bureau conducts the inspection of all immigrants in accordance with the United States immigration laws and also the meat inspection work under the food and drugs act. RECOMMENDATION. The chief recommends that an appropriation of 710,000 be made for a disinfecting building at Iloilo, as that port is now without adequate disinfecting facilities. An appropriation was formerly available for this purpose, but reverted to the treasury, owing to a delay in securing title to the land. BUREAU OF LANDS. PERSONNEL. Mr. Manuel Tinio resigned as director on September 30, 1914, and was succeeded by Mr. Rafael Corpus on November 11, 1914. At the time of his appointment Mr. Corpus was solicitor general and he was formely a member of the Assembly, where he took an important part in the preparation and enactment of the cadastral survey act. Both by his equipment as a lawyer and by his knowledge of tle lland situation he is remarkably well fitted for his duties. His points of view toward the problems of the bureau, including especially the necessity of protecting poor and ignorant landholders:nld lhomesteaders, have proved in complete harmony with the policy of the department. -le has also succeeded in placing the relations between the Americans and Filipinos in his bureau on a very satisfactory basis. Mrt. Walter E. Jones was appointed assistant director on April 11, 1914. At the time of his appointment Mr. Jones was provincial treasurer of Pangasinan; he had previously been provincial treasurer of Rizal, provincial treasurer of Tarlac, and still earlier a clerk in the bureau of internal revenue. In these positions he acquired an excellent knowledge of land questions and he has been most effective in the work of the bureau. RECEIPTS OF THE BUREAU. The receipts from all sources for the fiscal year 1914 aggregated ~11,849,917.68, an increase of 151,081.48 over the collections for the fiscal year 1913. THrE iIUBLIC LANDS, THEIR IRRIGATION AND THEIR RELATION TO TlHE F OOD SUPPLY. At least s5,000,000 people could be fed from the lands of the Philippine Islands, and yet the actual production is so inadequate

Page  99 REPORT OF THE SECRETARY OF THE INTERIOR. 99 that the existing population of only approximately 10,000,000 is compelled to import large quantities of food, even including rice. Among the many causes which contribute to this unfortunate condition are some (such as rinderpest, locusts, lack of labor, and inefficient agricultural methods) which are the subject of consideration by other branches of the Government, but several extremely important causes lie, wholly or in part, within the field of the bureau of lands. IRRIGATION. Irrigation is insufficient throughout the islands, and it ought to be developed on a large scale, both on the public lands and in existing agricultural territory. By such a policy the value and productivity of the lands can be enormously increased with relatively small expense. The department recommends that a systematic effort be made to this end. If large-scale irrigation works are not possible, funds could be loaned to put in pumps in many places. LAND TITLES AND THE CADASTRAL SURVEY. Almost as important as irrigation as a first basis for permanent improvement is the clarification of land titles. Of the 9,000,000 hectares of occupied lands in the islands only 548,693 hectares have thus far received registered titles under the American Torrens system, and many of the records of old Spanish titles have been lost or destroyed while others are without basis of property survey. The result is an oppressive handicap on agriculture, because the owners, or occupiers of lands, can not furnish adequate security for loans, and so are forced to pay excessive rates of interest, even as high in some instances as 50 per cent, and frequently 25 or 30 per cent. To correct this and reduce the interest rates to a basis reasonably consistent with prosperous development, trustworthy surveys of the lands are absolutely essential, and they must cover practically the entire area of agricultural lands in the islands, as thus far they exist for only 1,287,535 hectares out of the estimated total of 30,000,000 hectares of agricultural lands, public and private. This great task is already under way, and the system for accomplishing it appears to be satisfactory. This is the so-called cadastral survey, which is a method first used under Secretary Worcester in 1911 and formally established by law in February, 1913. It contemplates the surveying of all the parcels in large areas consecutively, thereby avoiding the prohibitive cost of isolated special slrveys for scattered individual lots. The new appropriation act provides satisfactorily for an immediate increase in the surveying organization and for maintaining the regular system of training men, by school and field work, for still further increases. As these surveys are completed they have to be made effectual by adjiudications of the titles, and this is and always has been, an extremely difficult work to accomplish satisfactorily, owing to the enormous number of the cases. Prior to the beginning of 1914 cases involving a total of 32,389 parcels had been filed, of which only 12,860 had been decreed, leav1ng arrears -of 19,529.

Page  100 — N ~r /~\ -LT 100 REPORT OF THE PHILIPPINE COMMTlVlllUN. The great increase in the surveying work brought about by the cadastral survey act caused the filing of cases covering the enormous number of 43,184 parcels in 1914, but the courts were unable to adjudicate more than 3,474 in the year. Now, at the close of 1914, the accumulated arrears number 59,239, adjudications for which would require 20 years more at the present and past rate, regardless of the enormous number of additonal parcels which the survey will continue to cover year after year. This is a very serious matter, because every case means a difference between an interest rate of 25 or 30 per cent and one of 6 or 8 per cent. The delay also causes increased labor and expense to the government through the necessity of constant revision of the surveys to meet changing condition. Whether the details of so enormous a number of purely routine cases, mostly uncontested, ought to be or economically can be imposed upon the courts is exceedingly doubtful. This question and plans for trying a system of arbitrators are under consideration by the secretary of finance and justice in conference with this department. SETTLEMENT OF PUBLIC LANDS. The area of unoccupied public lands is so vast that only a relatively small part of it is needed to furnish all the agricultural development necessary for the existing population, but the distribution of this necessary part is of great importance and must be made as speedily as possible. Several parts of the islands are seriously overcrowded and new lland must be opened up for the surplus population. Movements of this nature are already making successful progress-one in Cotabato, Mindanao, one in I)avao, Mindanao, both chiefly under the supervision of Gov. Carpenter, of the department of Mindanao and Sulu; one in Nueva Ecija, Luzon, one in Cagayan, Luzon, and one in Bohol. The general progress of distribution of the public lands by homesteads, sales, and leases is dilatory and unsatisfactory, and always has been, as appears from the following figures, showing the number of homestead applications filed each year from the beginning, and the number which have been left still pending at the end of each year, without even the preliminary action to initiate the applicant's rights: Number of v7 omestead those filed durFiscal year. applicationsad ing ar re A ate applicat ions n - undisposed of OTISd Tmaining undis- dipe o posed of at end at endof year. of year.............................................227 209 209............................................. 197 579 363.... 507 1918.....................-*-.......2,669 1,861 2,429 1W9q).....................'"""'"......................... 2,196 1,751 2,920 1910......................:::::::::::::::::::::: 1,854 1, 616 3,266 1911.............1.............,427 1,221 3,270 1912................................................ 2, 789 2,294 4,084 1913...............................'................... 3,105 2,666 4,430 1914................................::::......... 4,468 3,910 6,168 1914.......,,.................... 5,552 4,703 7,391

Page  101 REPORT OF THE SECRETARY OF THE INTERIOR. 101 The number of applicants shown by these figures will be increased in the near future by the systematic transfers of population referred to above, and also by educational work among the ignorant classes, to be done by an additional force of public-land inspectors just authorized by the Legislature. This increase was suggested by Secretary Worcester some years ago. The excessive delays revealed by the figures will be avoided, at least in part, by having these additional inspectors supervise the applications filed by ignorant persons, in order to prevent mistakes, and by changes in the routine, so as to eliminate all steps which can be eliminated. Under the existing system, for example, a homestead application has to pass through the following course: From the point of its origin in some outlying province it travels first to the bureau of lands in Manila; if found there to be in proper form it is next sent to the bureau of forestry in Manila; that bureau then sends it back to the province from which it started, for report from the local forestry representative on the question whether the land is better suited for agriculture than for forest; after this it must return to the bureau of forestry in Manila, and again to the bureau of lands, and if it still survives the approval will then be transmitted back to the province. Besides the delays caused by the general lack of communication throughout the islands, each of these journeys has its incidental interruptions and every stop causes loss of momentum. Indefinite delays are the inevitable result. Such matters are very intricate and a remedy that seems obvious may not prove practicable, but the two bureaus concerned are arranging to test a change, by which the application will be referred to the local forest station in the province before it leaves for Manila, and so the double journeys will be eliminated. Furthermore, whenever applications for homesteads are expected in considerable numbers in any given territory, the bureau of forestry will endeavor to make its examination of that whole territory in advance, so that it may report immediately, without having to make a special examination for every lot. By this and other changes in routine the department hopes to eliminate all unreasonable delay, and thereby to encourage, as well as quicken, the development of the public lands. ADMINISTRATION OF TIHE FRIAR LANDS. The friar lands, which were purchased by the Philippine government in 1904-5, and aggregate 1.54,660 hectares (over one-third of them vacant), are the most important lands of the government outside of the public domain. Their cost was approximately -14,000,000, for which amount bonds were issued, the sinking fund and interest requirements to be provided from sales and leases of the land. The financial management of these estates, to meet these obligations, has always presented a very difficult question, which has not yet been solved. In the year 1909, when the sales began, the delinquencies were 199,000; in 1910 this was reduced to P90,000. In 1911, owing to drought, the bureau fell P210,000 behind, making a total delin

Page  102 102 REPORT OF THE PHILIPPINE COMMISSION. qtlency of P300,000. In 1912, again owing to drought, it fell P276,000 still further behind, increasing the total delinquency to t576,000. In 1913, which was a year of exceptionally good crops, it collected an amount equal to the current obligation, and reduced the accrued delinquencies by P36,000 to a total of P540,000. In 1914, which has been a year of exceptionally bad crops, it has again fallen behind to the extent of P280,000 (about the same amount as 1912), making a total of accumulated deficit for all these years of P820,000. These enormous delinquencies have been due, in part, to repeated failures of crops, resulting from drought, locusts, the rinderpest, and insufficient irrigation; in part to the fact that the prices fixed for the occupied portion of the lands have necessarily been made very high in order to carry the government debt incurred from both the occupied and unoccupied portions; and possibly also partly to some overindulgence to purchasers and tenants. In 1914, 4,177 suits were filed to collect delinquencies. Unless there is substantial improvement in the agricultural situation some radical change in the existing plan will be necessary, and it may prove advisable in any event. The present director of lands has taken up this subject with much vigor, and has several possible solutions under consideration. Meanwhile the aid of the friar land loan fund has been continued and extended, so that it is now being applied to all the estates, and has also been made available for payment of installments and interest on lots, as well as for the former purposes of cultivation of sugar, purchase of animals, machinery, implements, and the construction of buildings. As a further relief to the purchasers and tenants, the interest rates on this fund were recently adjusted, so as to stand on the same basis with the rates fixed by the agricultural bank. This fund has been successfully administered, and now shows an aggregate profit of over 25 per cent. Act No. 2379 was passed on February 28, 1914, limiting the sale of these friar lands to 16 hectares for an individual, or 1,024 hectares for a corporation. SAN LAZARO ESTATE. The San Lazaro estate in the city of Manila is another special property of the government, existing as a trust for the benefit of lepers. It contains lands aggregating 1,027,675 square meters, and valued at p3,573,535. As the presence of this large area of insular government property within the city of Manila is unfortunate for the city, because of the loss of taxation, and is inconvenient to the insular government for administrative reasons, the Legislature passed Act No. 2360 on February 28, 1914, providing for the sale of the area, on installments, with preference to the existing tenants. Under this law, contracts for the sale of more than half of the property at prices aggregating 11,031,759 were executed during the year, and the contracted installments were duly collected. Many of these transactions are likely to be revised, because of an amending law passed in February, 1915, to meet the construction put upon the original act by the legal officers of the government.

Page  103 REPORT OF THE SECRETARY OF THE INTERIOR. 103 The plan as amended seems to be satisfactory to the bureau of lands, the tenants and the public generally, and it should also protect the interests of the lepers, though their rights are practically not affected, because the annual appropriations always made by the Legislature are greatly in excess of the income from the trust. MANILA RECLAMATION NO. 1. The Manila reclamation No. 1 (Act No. 1654) has never been developed. The original intention was to transfer the customhouse to this district, and thus make it an important commercial center. The customhouse, however, has not been transferred, and the expected development will not be likely to occur until after that has been done. In the meantime, the prices upon which leases have been offered are prohibitive, having been based upon the hypothesis that the development would be prosecuted immediately. The total annual receipts from the few blocks which have been leased amount to only P14,556.59. The public-works appropriation act passed by the Legislature in February, 1915, authorizes the construction of the proposed new customhouse. FORESHORE PROPERTY. The foreshore property (Act No. 1654) still continues to proceed slowly. Prior to this year nine leases were executed, giving a total rental of P12,133.50. During the year one lease was executed, carrying a rental of P450, and five more will be ready for execution at an early date, the surveys having been made and notices published. Four other applications are pending investigation. BUREAU OF SCIENCE. PERSONNEL. Dr. Alvin J. Cox, assistant director, who was appointed acting director in May, 1912, following the death of Dr. Paul C. Freer on April 17, 1912, and who has continued to direct the affairs of the bureau since that date, was recommended for the position of director of the bureau of science by my predecessor, and was appointed on January 22, 1914. The biological laboratory has suffered the loss of Dr. E. L. Walker, its chief, who resigned (notwithstanding an offer of promotion) to accept a position as associate professor of tropical diseases in the Hooper Institute at San Francisco. Dr. D. C. Willets resigned to accept a position as technical assistant in the United States Health Service. The resignation of Mr. Theodore Bolanes was accepted on August 4, 1914, and Mr. L. D. Macmillan was dropped for lack of an appropriation for his position. Dr. Liborio Gomez was transferred to the bureau of constabulary in August, 1913, and Dr. J. D. Jungman, who was appointed an assistant in the laboratory coincidently with the transfer of Dr. Gomez, was subsequently transferred to the Philippine General Hospital.

Page  104 104 REPORT OF THE PHILIPPINE COMMISSION. Dr. M. A. Barber was promoted to succeed Dr. Walker as chief of the laboratory and Mr. Ariston M. Guzman returned to the laboratory from his leave in the United States. The remaining vacancies could not be filled immediately, owing to the emergency economy order necessitated by the outbreak of the European war, but as the revenues improved some of them were filled, and the division will be put on a normal and satisfactory basis very soon. The only changes in the personnel of the botanical section were those caused by the death of C. B. Robinson and the resignation of P. W. Graff. Dr. Robinson was murdered by the natives of Amboina on December 5, 1913, owing to superstitious fear on the part of the natives. Dr. Iobinson's loss is a severe one to science as well as to the bureau. Mr. Merrill went to Buitenzorg, Java, and there received the botanical collection made by Dr. Robinson, which was in excellent condition, and brought it to Manila, where it has been arranged for study. Dr. t1. D. Gibbs, chief of the division of organic chemistry, and assistant to the director, resigned on April 15, 1914, to accept a position with the United States Department of Agriculture, Washington, D. C., and Mr. W. C. Reibling, chief of the division of general, inorganic, and physical chemistry, went on leave in April, and resigned September 15, 1914, to accept a position as superintendent, American Tar Products Co., St. Louis, Mo. Mr. Francisco D. Reyes and E. Natividad severed their connection with the bureau on April 16 and October 31, 1914, respectively. Dr. Iarvey C. Brill, Mr. G. W. Heise, and Mr. W. B. O'Brien were appointed to vacant positions in July, 1913, and Mr. Francisco Pefia in December, 1913. The detail of chemists to the university for teaching purposes has been discontinued, except one for a course in cement testing, but Mr. W. B. O'Brien's services were transferred entirely to the universitv. The vacancies in the chemical laboratories have not all been filled as yet and the department is carefully considering what additions can be made in view of the necessity for economy. Dr. H. Otley Beyer, formerly in the ethnological division, was transferred to the university, where he was appointed to the newly created professorship of ethnology. Mr. Charles Martin, photographer, resigned to enter private business. Mr. C. S. Banks, of the entomological section, was transferred to the university, and Mr. Willie Schultze, who had been for 10 years entomologist, resigned to accept a position in commercial life. ORGANIZATION. The long pending proposal to combine the bureau of science with the College of Agriculture of the University of the Philippines came up again this year, and was referred by his excellency, the Governor General, to a special committee, consisting of Commissioners Palma and Singson. The department opposed the plan, and the committee decided against it.

Page  105 REPORT OF THE SECRETARY OF THE INTERIOiR. 105 SCOPE OF WORK. No changes have been made in the scope of the bureau's work, excepting the direction of its scientific research so as to give relatively greater emphasis to the industrial and sanitary service of the islands, and relatively less to other studies. The principal change made in this direction was the elimination of ethnological research, with its attendant photography and publications, but the educational features of this work have been taken up by the University of the Philippiies. These steps were taken because the ethnological research already made, and the publications and photographs connected with it are already sufficient for the necessities of practical administration over the non-Christians and in order to decrease the expense, so that the money might be available for their education, industrial development, and for sanitation in their territory. In leaving on his vacation the director of the bureau reported that the bureau was on a substantial basis and its administration moving smoothly and satisfactorily, with the hearty support of the department. PUBLICATIONS. The department has been compelled, for reasons of economy, to reduce the extent of scientific publications and to make those which are still published less expensive. The Philippine Journal of Science has been continued and has published a large amount of material touching upon the commercial and scientific interests of the Philippines. The bureau has also published two important documents directly relating to the practical economic development of the country, "The Mineral Resources of the Philippine Islands " and " The Industrial Resources of the Philippine Islands," and a useful series of post cards and booklets for sale at the Aquarium. PHOTOGRAPHS. Rumors which appear to have been current in America that the bureau's collection of photographs has been impaired are entirely without basis. Not a single photograph, negative, or film has been destroyed or disturbed. Certain pictures have been withdrawn from general public sale for reasons which would be evident to anyone who inspected them, but even these are still available to applicants who have a legitimate claim. Photographing in connection with ethnological research has been dlliminated with the discontinuance of that research and for the same reasons. WORK OF THE BUREAU IN AID OF HEALTH AND SANITATION. Since September the Philippine General Hospital has undertaken ts own laboratory work, which has reduced the routine work of

Page  106 106 REPORT OF THE PHILIPPINE COMMISSION. the biological laboratory along certain lines, but these reductions have been more than offset by increased work in other lines, as appears from the following figures: Twelve Six months months Calendar Nature of examination. ending ending year June 30, December 1914. 1913. 31,1913. Feces................................................... 24,530 24,502 126,022 Sputum.5,770 1,919 2,095 Sputum......................................................... 5,770 1,919 2,095 B1 oo.............................................................. 23,450 8,780 6,398 Bloo I culture........................................ 226 185 392 Wi tal test............................ 388 316 599 Wassermann test.................................... 727 798 1,288 Leprosy............................................................ 848 243 1,142 Urines................................................. 6, 974 5, 309 4,275 Gono o cci........................................................ 20, 522 8,541 16,383 W aters........................................................... 1,077 1,211 2,118 Necropsies........... 130 142 412 tIi stological examinations.......................................... 606 322 181 Ralbies............................... 11 14 35 Pl gue............................................................. 45 13 64 Rats for plague.................................................. (1) 27,564 113,337 M iscellaneo us.......................................... 57,916 796 1,649 Total......................................................... 153,220 80,655 276,390 1 Included under miscellaneous. During the cholera campaign of 1914 it was necessary to call upon the officers and employees of the division to perform an enormously increased amount of overtime work in the laboratory, a demand to which they submitted with great generosity. All possible outside assistance was provided for them, and the bureau had the special good fortune of securing the services of Hospital Sergt. Edward Theurick, United States Army, and Hospital Apprentice (first class) Hugh Lane, United States Navy. The pathologist performed 412 autopsies, mostly as diagnostic measures for the bureau of health, and 609 pathological specimens have been examined for the Philippine General Hospital and.private physicians. The manufacture of serums and vaccine has continued as usual. Tiqui-tiqui extract, amounting to 58 liters, was prepared under the provisions of Act No. 2376 for the experimental treatment of infantile beriberi. The work on rabies was continued, and 163 patients were given the Plasteur treatment. The most important research work on the subject of health has been described above in the paragraph on malaria transmission. Considerable other important work has been accomplished on cholera, tuberculosis, leprosy, plague, and other diseases. The division of chemistry has under way, in various stages of progress, investigations in field-water survey work and in the curative chemical properties of a number of oils which have been confused with true chaulmoogra oil, and in an attempt to isolate a principle which will cure leprosy. Officers of the bureau participated in the annual session of the Philippine Islands Medical Association in November, 1914, and read important papers on cholera, malaria, beriberi, leprosy, and the germicidal action of glycerol.

Page  107 REPORT OF THE SECRETARY OF THE INTERIOR. 107 Dr. E. L. Walker was appointed by the Governor General as one of the delegates from the Philippine Islands to the third biennial congress of the Far Eastern Association of Tropical Medicine, held in Saigon in November, 1913. IN AID OF AGRICULTURE AND FORESTRY. The botanical section has enlarged the herbarium by the additions of 10,730 Philippine and foreign specimens for the six months ending December 31, 1913, and 18,738 for the calendar year 1914. Approximately 14,186 and 24,622 duplicates, respectively, for the two periods have been distributed by exchange to various scientific institutions and to individuals. Mounted sheets totalling 431 and 678 specimens, respectively, have been loaned to specialists for study. During the calendar year approximately 9,000 identifications, including unnamed Philippine material incorporated in the herbarium, plants from Borneo and Amboina, and specimens from the College of Agriculture and the Silliman Institute have been made, and over 600 duplicate unmounted specimens have been sent to specialists for identification. The investigations on the relation of environmental factors to the physical types of vegetation on Mount Maquiling are nearly completed. The classification of Philippine birds has been carried on as a basis for the suppression of those which are injurious, and the encouragement of those which are beneficial, to agriculture and forestry. A press bulletin was issued in September, entitled " Birds in Their Economic Relation to Man through Agriculture and Forestry." The teaching function of the entomological section was taken over by the University of the Philippines, but the collection has been maintained and increased by nearly 2,000 numbers, representing several times that number of insects. The number of chemical analyses of sugar and sugar cane samples has increased. The sugar central act recently passed by the Legislature provides a means for scientific training of employees in the best chemical processes of handling sugar manufacture, and will add to the importance of the work of the sugar laboratory in Iloilo. This laboratory has been much used by both producers and dealers for umpire polariscopic analyses. Chemical researches have been made in regard to soils and soil moisture in relation to tropical agriculture. IN AID OF INDUSTRIES. In furtherance of the silk industry, which was introduced into the islands as a result of the work of the bureau, it is now raising about 10,000 silk worms every generation. In August the industry was introduced into a new province. The eight years' experience in growing silk worms without their suffering any disease adds to the confidence of the department in the permanent value of this industry to the islands, and the department recommends that a technically

Page  108 108 REPORT OF THE PHILIPPINE COMMISSION. trained officer be provided to supervise it and to encourage its introduction. Chemical researches are being carried on in regard to the following subjects: The efficiency and value of different commercial paints to determine their actual value under local conditions; the chief causes of the diminished durability in a tropical climate of the galvanized iron available on the market, and the problems involved in corrosion and protective coatings in general; a study of the modifications of native smelting processes which can be put into effect by small producers for an improvement in yield, quantity, and economy of production of iron; lime burning; the production of a cheap puzzolan cement from volcanic tuff and lime, which can be substituted for Portland cement in certain classes of construction; gas producer operation; a continuation of the study of the salt industry and resources of the Philippine Islands; a study of clay and shale suitable for use in the manufacture of clay products, such as building and paving bricks, tire, common pottery, etc.; a study of inexpensive modifications of the method of local tanning which can vastly improve local leather in weight, finish, durability, and, particularly, as to odor; the examination of calumpang, the Catanduanes nut, and further work on the lumbang bauncalag, with drying tests of the oil; methods of rectifying vlang-ylang oil; the destructive distillation of Philippine woods with temperature control and a study of their products; a continuation of the effect of storage on various Philippine distilled wines and alcoholic distilled beverages; the extraction of the perfume of the gardenia and the camia flowers; the fermentation and manufacture of cacao from the dried bean; and the nipa palm as a commercial source of sugar. IN AID OF PUBLIC WOCRKS. A reduction in the expenditure made for public works during the year resulted in a reduction of the routine work of the bureau on cement and other material. The geologists have done considerable work in the examination of drill cuttings from deep wells drilled by the bureau of public works. MINING AND ASSAY WORK. The regular assays for private parties and for prospectors in new districts, the cyanidization of ores, consultations with mining prospectors and operators, and examinations of mineral specimens and rocks have required a great deal of time. The demand by private parties for services of geologists is greater than the division can supply. The paper on Tayabas petroleum, by Mr. W. E. Pratt and Dr. W. D. Smith. and the printing and distribution of "The mineral resources of the Philippine Islands for 1913" should stimulate development. Also the investigation of the Angat, Bulacan, iron ores and notes on the geology and underground water resources of Panay have been completed. FISHERIES. Expert advice has been given regarding methods of fishing, the formulating of pearling and fishing laws, information regarding the

Page  109 REPORT OF THE SECRETARY OF THE INTERIOR. 109 location of fishing banks and pearling beds, and instructions regarding the construction of fish ponds. The economic fisheries industries of the islands, such as the production of window shells and other commercial shells, fish culture, the curing of trepang and other fishery products, the establishment of sardine canneries, etc., have been stimulated in many ways. Mr. Alvin Seale has worked out a method of conserving the pearl fisheries and of increasing the revenues from them for the departinent of Mindanao and Sulu. The mosquito-eating fish brought from Honolulu have multiplied very rapidly, and several thousands have been reared and distributed in the vicinity of Manila, so that the bureau has an ample stock for distribution. The black bass, Mycropterus salrmoides, brought originally from the United States in 1907, have increased in a most satisfactory manner, and the two lakes and Trinidad River at Baguio are now well stocked. A shipment of black bass was established in Lake Lanao, Mindanao, on December 22, 1913. The spawning pond for black bass built near the bureau of science is now stocked with between three and four dozen fine bass, which will probably spawn in 1916. PHILIPPINE MUSEUM. The splendid collection of Philippine hats, basketry, tools, weapons, agricultural implements, brass work, clothes and cloths, etc., illustrating the life of the people of the islands, was kept open to the public until November, when the best of the exhibit was sent to San Francisco as part of the bureau of science display at the PanamaPacific International Exposition. THE POWER AND GAS-PRODUCER PLANTS. The manifold functions of the central power plant for the Philippine General Hospital, the bureau of science, and the College of Medicine and Surgery, which is under the direction of the bureau of science, have previously been described in the reports of this department. The addition of Dutch-oven furnaces to the boilers has practically eliminated the smoke under normal conditions and has obtained a saving of nearly 3 per cent in the consumption of fuel. The producer gas generator and the gas engine work satisfactorily. The direct-connected gas-engine engine dynamo unit is about three times as economical for the production of electric power as are the steam-driven generator units. For eight months the producer gas plant has been operated day and night, except when it was stopped for cleaning and repairs. LIBRARY. The organization and routine of the library have been continued unchanged. All new material has been and is being classified and catalogued as received, and progress is being made on the unclassified collection. The better-trained Filipino assistants, who are obtained under the apprentice system, are very useful in classifying and are being encOuraged to learn library work.

Page  110 110 REPORT OF THE PHILIPPINE COMMISSION. During the college year 1913-14 instruction for two or three recitation periods per week was given to the five-year students in the College of Medicine and Surgery of the University of the Philippines, to familiarize them with the index medicus. This work has been extended during 1914-15 to include from 8 to 10 recitation periods, and, in addition, elementary work in the use of the library shelf list, dictionary catalogue, and union catalogue, and in the use of reference books, has been given. Twenty-three students, each receiving one lesson per week, are enrolled in this course. The librarian of the bureau of science also cooperates in a course in library training offered by the College of Liberal Arts of the University of the Philippines. It is necessary to bind 1,000 volumes annually to keep the current scientific literature of the library in shape for government employees, the students of the University of the Philippines and others using the same. Owing to the lack of funds, only 200 volumes have been sent to the bindery during the calendar year, and the binding is getting very much behind. The period during which the library is open was reduced from 80 hours per week to 62 hours on account of the small library staff, by changing the closing hour from 9 p. m. to 6 p. m. on five days per week and the opening hour from 7.30 a. m. to 8 a. m. on six days. As the use of books has decreased somewhat with the reduction in the library hours, it is hoped that funds will be available to enable the old schedule to be restored. AQUARIUM. The aquarium, the building within the irregular pentagon of the bastion of the Puerta Real Gate of the old walled city, was opened in February during the 1914 Philippine Exposition. The exhibition tanks contain a large and complete display of curious and brightly colored fishes, sea anemones, crabs, sea urchins, starfish, etc. In the aquarium at present there are 756 specimens. representing 154 species of fishes, 10 species of crabs, 3 species of suckers, 2 species of turtles, and a number of species of prawns and other shellfish. Since it was opened there have been 33,621 paid and 28,052 free admissions. The latter consist of those who attended during the opening days, when we had certain free days, and of students and teachers of schools who have been admitted by special arrangement. BUREAU OF FORESTRY. PERSONNEL. In the latter part of the year, Maj. George P. Ahern, who had been the head of the bureau ever since its organization, in 1900, found himself compelled to undergo a serious operation on his eyes (happily successful) and to give up,permanently, residence in the Tropics. His resignation became effective on November 27, 1914. The enthusiasm which Maj. Ahern brought to his pioneer work of forest conservation in the Philippines, his foresight, his refusal to be discouraged by the many obstacles which lay in his path, and

Page  111 REPORT OF THE SECRETARY OF THE INTERIOR. 111 Ilis many acts of personal thoughtfulness and kindness have won for him a permanent place in the affections of his associates and subordinates, all of whom most heartily wish him unlimited happiness and success in the future. After the resignation of Maj. Ahern, Mr. W. F. Sherfesee, who had been assistant director since July 1, 1912, became acting director, and was appointed director on January 1, 1915. Four American foresters resigned during the year, and either returned to the United States or accepted more lucrative positions elsewhere. To fill these vacancies, a new appointee arrived from the United States on August 16, 1914, and provisional appointment has already been made of two additional men to arrive during the early part of 1915. The Filipino ranger force was augmented by the appointment of 29 graduates of the forest school. THE BUREAU AS A REVENUE-PRODUCING INVESTMENT. As a means of increasing revenues without taxation, I recommend a substantial increase in the scale of appropriation which has been set for the forestry bureau in past years. A long course of experience has proved that every increase of investment in this bureau has been simultaneously accompanied by still larger increases in the profits from the forests. Ever since the organization of the bureau, in 1901, it has brought in a profit of substantially 100 per cent every year over and above its expenses, the amount of profit expanding in almost exact ratio with the increase in expenditure. Until an adequate relationship is finally brought about between the value of the forestry resources and the lumber industry on the one hand and the personnel of the bureau on the other-a condition vwhich is far off-the department believes that heavy increases in appropriation will return a profit of nearly peso for peso to the government in the same year for which they are made. MEASUREMENT IN THE ROUND. The profitable returns from the forests will probably be still greater in the future, owing to the passage by the Legislature of a bill, long slought by the department, providing for the measurement of timber, for revenue purposes, in the round, instead of after sawing. INADEQUACY OF BUREAU FUNDS AND PERSONNEL. The public forests of the Philippines cover 40,000,000 acres of land (16,000,000 hectares), mostly rough, with poor or few trails, and difficult to traverse. They are scattered from one end of the Archipelago to the other. The stand of merchantable timber is estimated at 200,000,000,000 board feet. The members of the bureau of forestry must administer, investigate, and protect this property; prevent illegal cutting; put out forest fires; inspect license areas and homestead, lease and sale applications; Prevent waste and theft in the thousands of free cuttings made

Page  112 112 REPORT OF THE PHILIPPINE COMMISSION. by the local inhabitants for timber or other forest products for personal use; study and estimate the areas of proposed timber concessions, as well as supervise the concessions already in existence; make forest maps of communal forests and forest reserves, and also conduct the large amount of office work necessitated by the constant use of the forests by the inhabitants of the islands. It is also necessary that they should carry on such research work as has been previously referred to in this report, and, also, train up the future personnel of the bureau through the maintenance of the forest school. Yet for all these and other duties the permanent force of the bureau on December 31, 1914, consisted of 1 director of forestry, 5 foresters, 1 wood technologist, 1 wood expert, 1 instructor in forestry, 2 assistant foresters, 86 rangers, 2 draftsmen, and 25 clerks. In addition to this permanent force there were employed, on a temporary status, 1 assistant forester, 2 forest nurserymen (1 of whom devotes but one-third of his time to the work of the bureau), 1 ranger, 3 draftsmen, 3 messengers, 2 laborers, 1 carpenter, 2 varnishers, and 19 guards. The inadequacy of such a force for such duties would be self-evident, even if it were not proved by the very excessive amount of overtime work performed both in the Manila office and in the field. ADMINISTRATION. All details of the bureau's administrative procedure have been carefully scrutinized and compared, with a view to bringing about all possible simplification. The additional available personnel, small though it is, resulting from graduation in the forest school, has been of the very highest val e. Two new forest stations were established, a number of new subdistrict or forest stations opened, and the field work has been expedited and intensified. To emphasize the position and authority of the forest rangers, it is very desirable that they should be provided with uniforms, but their salaries are so small that it would not be reasonable to require them to incur the initial expense. I recommend that the Legislature authorize the bureau to furnish each such employee with two complete suits, thereafter requiring him to provide his own. COMMERCIAL DEVELOPMENT OF THE FORESTS. 1The forests owned by the Philippine government contain an estimated amount of 200,000,000,000 board feet of varieties suitable for every purpseost of it easily accessible under modern logging conditions. The total value of forest products now realized annually is only cut y,000,000, whereas 60,000,000 could be realized without It is estimated that nine times as much timber rots in the forests every year as is cut and utilized under license. Nevertheless, so little has this great property been developed that, at least until very recently, it has not even supplied the domestic

Page  113 REPORT OF THE SECRETARY OF THE INTERIOR. 113 market, and the imports have greatly exceeded the exports. The figures for the last two fiscal years are as follows: Fiscal year. Exports. Imports. 1913......................................P......................-..-............ P-473,744 -l1,713,894 1914.................................. 753,254 1,543,578 It will be noticed that an increase in exports and a decrease in imports occurred in the last year. No very great improvement in these conditions can be hoped for until the relations between the United States and the Philippine Islands are more definitely defined than they have ever been hitherto, because the necessary capital will not be invested until political conditions are determined. The uncertainty which has always existed is paralyzing, and any decision, whatever it is, if it is definite, will be better for these enterprises. Nevertheless, the bureau of forestry has been making progress in the development of the industry, and it already ranks second in economic importance in the Philippines, as it is surpassed by agriculture alone. Three thousand four hundred and eighty-four commercial licenses of all sorts were granted during 1914, as compared with 2,803 during 1913. Excluding from these figures the firewood, rattan, and minor forest products, the total was 1,483 for the year 1914, as compared with 1,217 for 1913. This year has marked a decided depression in the industry, due in part to the effect of the European war and in part to certain unfortunate conditions which have been developing in it for a long time. These conditions have resulted in many branches of the industry from careless management rendered possible by the very wide margin between cost and selling price, due to the great excess of demand over supply. To rectify these conditions, the bureau is encouraging the adoption of such rules for grading and inspection as will insure to Philippine lumber the sound commercial reputation which its qualities deserve. In furtherance of the program to develop the export market, the bureau has established a large exhibit at the Panama Exposition, showing especially the possibilities of those species of Philippine forest products which can be produced in quantities sufficient for large, regular shipment. The best of the material which the bureau has gathered during the past 10 years has been supplemented by a large and valuable collection secured by loan or purchase especially for the occasion. Extra supplies of lumber have been taken, together with skilled carpenters, Polishers, and other woodworkers, in order that a visiting lumber dealer or consumer may see for himself the realized possibilities of Philippine lumber and by actual demonstration under his own superVision settle all doubts as to its suitability for his own purposes. The active cooperation of all Philippine lumber producers has been invited, and their attention has been called to the fact that the exhibit will not fulfill the purposes for which it has been prepared unless the 8329-15 8

Page  114 114 REPORT OF THE PHILIPPINE COMMISSION. lumbermen are ready and able to fill the resulting orders. They have, therefore, been invited, either individually or jointly, to maintain representatives at the bureau exhibit in San Francisco, who should, if possible, be authorized to take orders and to guarantee shipments. Two popular pamphlets have been prepared for wide distribution at the exposition, entitled, respectively, "The Forest Resources of the Philippines" and "The Export Woods of the Philippines," and there is also a large and complete collection of forest maps, reports, bulletins, etc., so that a visitor interested in any particular detail of the industry may obtain all available information. The research work of the bureau has been directed to such sub jects as promise to afford prompt and substantial returns. The dif. ferent commercial woods and certain minor forest products are studied to develop methods of gathering and marketing them so as to increase the profits derived by the licensees. The operations of large lumber companies are examined to develop such systems of forest management as will permit in after years at least as profitable a cut as is now being obtained. Methods of reforestation are tried out intensively on a small scale so as to avoid unnecessary risk or loss in larger operations of the same kind. To the small extent that funds permit forest areas now lying almost or wholly idle are cruised and mapped to induce the development of the timber they contain by the establishment of lumbering enterprises. To allow such areas to remain untouched is a dead loss to the country, both in forest revenue and in failure to utilize the overmature timber before it rots. CO3IMUNAL FORESTS AND HOUSEHOLD USES. New communal forests to the number of 42 were established in 1914. and 40 reports on proposed new reservations were received at the close of the year, which will soon be proclaimed. The total number of these forests now amounts to 216, distributed in all parts of the islands. These communal forests are reservations made by civil proclamations for the exclusive use of the inhabitants of the municipalities for which they are established. As the benefits of these reservations are becominll appreciated throughout the provinces the applications are constantly becoming more numerous, and additional personnel will be necessary to deal with them. The general use of the forests by the public has also increased, 2,350 private gratuitous licenses having been granted during the year, as against 1,248 in 1913. The number of commercial licenses for firewood, rattan, and other minor forest products locally used increased from 1,586 in 1913 to 2,001 in 1914. CONSERVATION AND CAINGINS. From the conservation point of view the chief difficulty encolun tered by the bureau has always been the popular custom in the remote parts of the islands of making caifigins, which are clearings made by burning a patch of forest to be cultivated for one or two

Page  115 REPORT OF THE SECRETARY OF THE INTERIOR. 115 crops and then abandoned, whereupon the land grows up in a rough grass known as cogon. This practice involves a ruthless destruction of valuable forest and also, as pointed out elsewhere, it is largely responsible for the even more immediately disastrous destruction of agricultural wealth by locusts, which depend upon these waste areas of cogon for breeding places. Various measures are being employed to stop this unfortunate practice. Legal prosecution has been more effective this year than heretofore, partly due to the aggressive stand taken by the attorney general and partly to the cumulative efforts of the bureau, but even with this improvement only 269 out of 895 cases reported have been acted on during the year (249 were convicted). Long experience seems to have demonstrated that the custom is too deep-seated to be uprooted by laborious processes of the criminal law, at least until a great deal of educational work has been done and a fuller understanding of the evil and its consequences has become more general. An active educational campaign on this subject and on the whole matter of conservation will be conducted during the year, in an effort to acquaint the great body of people throughout the islands with the benefits resulting from preservation of the forests and the harm which will occur if they are neglected or destroyed. A circular in the local languages is being prepared for wide distribution, which will set forth the privileges of each resident of the islands and explain the laws prohibiting forest abuses. In the distribution of these circulars the assistance of the provincial and municipal officials and of the native newspapers, as well as of the bureaus of constabulary and education, will be sought. All the rangers of the bureau will be instructed to hold meetings in the towns which they visit and to talk to the people on these subjects along lines prescribed by the bureau. Besides this fundamental remedy of education, the most promising other constructive step appears to be the provision of a substitute for cainigins by inducing or requiring the people now cultivating in this way to gather in settlements and take up permanent homesteads. Once started in this new method of living, they seem to prefer it, especially where schools are available, as at the Aborlan school reservation in Palawan. For this purpose considerable attention has been paid by the bureau, especially during the latter part of the year, in cooperation with the bureau of lands, to inducing the " remontados " of the province of Rizal, the Negritos of Bataan, the Palawanes on the island of Dumaran, in Palawan, and other "monteses" to abandon the practice of making caifigins and settle permanently on suitable tracts of land. Proposed reservations have been examined and lands set aside. With the continuance of these measures and with systematic educational propaganda on the subject, especially through the influence of the Filipino students and graduates of the forest school (who come from all the provinces), and the spread of the communal forest system, which has a considerable educational value, the caiingin evil is gradually receding.

Page  116 116 REPORT OF THE PHILIPPINE COMMISSION. In the meantime, if funds were made available, existing areas o cogon could be reforested by the broadcast sowing of ipil, a tree of commercial value for firewood and one of the few species capable of competing with the pernicious cogon. PHENOLOGICAL REPORTS. In order to furnish more accurate information than has been derived in the past on the periodicity of flowering and fruiting of the various tree species in different parts of the Archipelago, and in order to encourage habits of correct observation on the part of the field personnel of the bureau, a system of so-called phenological reports was established during the month of December, 1914, which it is expected will result in information of decided interest and value. PUBLIC LANDS. The year just closed shows a heavy increase in the number of homestead applications. Five thousand eight hundred and ninety parcels of public land were examined by forest officers to ascertain their relative forest or agricultural value, as compared with 3,131 during 1913. Instructions recently issued by the department promise to eliminate much of the delay which was previously necessary in making these examinations. TRAINING OF FILIPINO RANGERS AND FORESTERS AT THE FORESTRY SCHOOL. The forestry school, which was established by the Philippine Legislature in 1910, continues to yield most gratifying results in training Filipino rangers and foresters for the work of the bureau. In 1914, 29 students were graduated as rangers, making a total to date of 73. All of these have entered the bureau of forestry, at initial salaries ranging from T50 to 1G60 per month, with the exception of a private student from China, who returned to his country. There are still a few of these private students in the school, five from China, maintained by the China famine relief forestry fund, and two from Guam, maintained by the United States Navy. The rest of the student body is made up of government pensionados, who are students supported by government scholarships, under contract to enter the bureau of forestry on the completion of their studies and to serve a period at least equal to that of their scholarships. Higher courses are offered leading to the degree of bachelor of science in forestry, and two graduate rangers are expected to take this degree during the coming year, while a number of others are planning to begin their work for it. The various acts under which the forest school has been operating have authorized the expenditure of relatively small sums for necessary school equipment and for the maintenance of grounds and buildings. The last session of the Legislature appropriated P10,000, which will permit the erection of a building to provide the most

Page  117 REPORT OF THE SECRETARY OF THE INTERIOR. 117 immediately necessary lecture room and laboratory space. Funds are urgently needed to permit the construction of living quarters for the students, as the houses which hitherto have served for this purpose were constructed solely of light materials and have now reached the point when their further maintenance is uneconomical and altogether unsatisfactory. The erection of temporary buildings in the first place was reasonable, inasmuch as the school started out somewhat as an experiment. The experiment has proved a gratifying success, and the erection of permanent buildings is now not only warranted but would be a measure of real economy. COOPERATION. The bureau has performed various duties in cooperation with other organizations of the government, including the bureau of lands in the settlement of monteses, the various locust boards in the suppression of locust swarms, the welfare committee in the observation of clean-up week, the province of Bataan in trail building, and the bureau of education and the bureau of science in various projects. A plan is under considerfation to utilize the field force of the bureau in the administration of the game laws. THE WEATHER BUREAU. This bureau has continued its usual vigilant work on behalf of agriculture and commerce. Father Algue recently sustained a severe accident, from which, however, he is fortunately recovering. It was caused by the overturning of his calesa on a bad portion of the road while he was on his way to make an inspection of the station at Taal. PUBLICATIONS IN AID OF AGRICULTURE AND COMMERCE. Owing to the strict economy that had to be practiced, the bureau has been unable to expand and extend its work, but, nevertheless, nmuch was done in the study of the climatological conditions of the islands in so far as these conditions affect the agricultural prosperity of the country. For this object, an elaborate monograph was published on the annual amount and distribution of the rainfall i the Archipelago; and in order to call general attention to the climate of the islands, a pamphlet was prepared on the subject for the Philippine board of the Panama-Pacific International Exposition for distribution during the exposition at San Francisco. TYPHOONS. The year 1914 was one of comparative freedom from destructive storlls, only two doing any serious harm. There were, however, many typhoons which influenced the islands slightly and which latr on did great damage in the neighboring countries, so that during the year 127 typhoon warnings were sent to the foreign Oservatories of the Far East.

Page  118 118 REPORT OF THE PHILIPPINE COMMISSION. SEISMIC DEPARTMENT. The year 1914 was one of relatively small seismic activity, only 153 disturbances being registered as against 396 in 1913. The greatest of these earthquakes was the one which occurred on March 17, 1914, in Samar and which had its epicenter in the " Great Deep" of the Pacific. This hollow or valley in the bottom of the ocean is about 60 kilometers from the northeast coast of Mindanao in the Pacific. It was discovered by the German survey ship the Planet in 1912, when a depth of 9,780 meters was found. For the purpose of studying more closely the relation between the frequent seismic movements in the Visayas and Mindanao and the " Great Deep" a 180-kilogram Weichert seismograph was acquired during the year and will shortly be installed in Butuan. A new seismic station was founded on the Island of Guam, which, on account of its proximity to the famous Challenger Deep, is very interesting from a seismological standpoint. We were greatly helped in the installation of this new station by the United States naval authorities and especially the governor of the island, Capt. Maxwell, United States Navy, who did all that was possible to facilitate the work, and who offered to house the instrument and provide the personnel necessary for its maintenance. The instrument installed in Guam is a Weichert seismograph with a pendulum of 180 kilograms. A series of experiments was made in the workshop of the observatory with the object of evolving a new form of seismograph which could be installed on the ground floor of houses of even light construction, would record all local shocks, yet at the same time would be simple enough to be maintained by an ordinary third-class observatory. The experiments were successful, and a modified form of the Omori type was obtained, which is giving good results. MAGNETISM. There was renewed activity in the magnetic department during the latter part of the year, because in July there arrived from the department of magnetism of the Carnegie Institute, Washington, D. C., the corrections and calculated instrumental errors of the magnetic instruments installed in Antipolo, and consequently the measurement of the photographic curves of the past three years was begun. Special magnetic observations were made during the total eclipse of the sun in Allgult, 1914, in conjunction with the International Committee on Magnetism. ASTRONOMY. The time service of the Philippines was greatly improved during the year. For this work a new transit instrument of the latest type was acquired, and it has given excellent results. Much care was given to the determination of the various constants of the instrument. During the year 900 star transits were observed.

Page  119 REPORT OF THE SECRETARY OF THE INTERIOR. 1.19 The time ball was connected up with the chronograph in order to check the time of fall. The greatest errors during the year were: Second. Second. Feb. 11_ --- — ----------- 0. 54 Aug. 17 -______. ----. ---- 0.33 July 7 --- —--- ----------.37 Sept. 15 ------ ---------.33 July 1,, 18.. --- —--------.30 In February, 1914, a series of drawings of the planet Mars were made with the help of the big telescope at the request of Prof. Pickering, of Harvard. Seven hundred and thirty observations of solar radiation were made by means of the Angstrom compensating pyrheliometer, and daily records were obtained from the new Callendar sunshine recorder. Thirty-three ship's chronometers were corrected and rated during the year. There was but little change in the secondary stations of the bureau during the past year. One station was closed, viz., the one in Silang, Cavite, and arrangements were made for the opening of a new one at Glan, southern Mindanao. The present stations of the weather bureau are: The central station, Manila; 1 branch observatory, Baguio; 1 magnetic observatory, Antipolo; 1 seismic and geophysic station at Ambulong, Taal; 7 first-class stations; 10 second-class stations; 25 third-class stations; and 10 rain stations. Ninety-one per cent of the weather bureau is Filipino. There were 8 separations from the service during the year-1 death, 2 dismissals, and 5 resignations. The salary of 20 of the Filipino employees of the bureau was raised at the beginning of the year. Some of those who obtained this promotion had been in the service for more than 30 years. Valuable improvements costing 1*4,236 were made by the Manila observatory and paid for from the private funds of the staff. These improvements were the Repsold transit, the Callendar sunshine recorder, and new magnets for the magnetometers. The motor launch of the seismological station of Ambulong, Taal, was damaged during the floods and typhoons of September last, and was repaired by an employee of the bureau of customs. RECOMMENDATIONS. It is recommended that stations of the weather bureau be established in all the provincial capitals in order to facilitate the spread of typhoon warnings and other weather information. METHOD OF OBTAINING MORE DETAILED INFORMATION. The annual reports of the Delegate and of the directors of bureaus and their subordinates are on file and open to inspection. Such of thern as are printed may be had upon application. The department will furnish any information within its field that may be applied for, either from these reports or otherwise, as desired. Respectfully submitted. WINFRED T. DENISON, Secretary of the Interior. To the PHILIPPINE COMMISSION, Manila, P. I.

Page  120 I I I t t I

Page  121 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. JULY 1, 1913, TO DECEMBER 31, 1913. DEPARTMENT OF COMMERCE AND POLICE, Manila, March 26, 1915. GENTLEEN: I am submitting herewith report of the work of the department of commerce and police for the period beginning July 1, 1913, and ending December 31, 1913. The lion. Frank A. Branagan was acting secretary of commerce and police from July 1 until November 30, the date of his resignation from the insular government, and the undersigned was appointed acting secretary of the department by Executive Order No. 102, dated December 1, 1913, and continued to serve for the remainder of the time covered by this report. The Hon. Clinton L. Riggs was appointed secretary of this department on tie 29th day of November, 1913, but did not take over the duties of the office in the period covered by this report. On December 13, 1913, the bureau of navigation was abolished by Act No. 2308, and the duties were divided between the bureau of public works and the bureau of customs. The board of rate regulation created by Act No. 1779, which had supervision over the rates of every public-service corporation and was empowered to fix, revise, and regulate rates, was abolished in D)ecember, 1913, by Act No. 2307, and its powers and duties transferred to the board of public utility commissioners. BUREAU OF CONSTABULARY. Chief of constabulary: Brig. Gen. H. H. BANDHOLTZ, July 1, 1913, to July 6, 1913. Acting Chief of constabulary: Col. JAMES G. HARBORD, July 7, 1913, to December 14, 1913; Col. WM. C. RIVERS, December 15, 1913, to December 31, 1913. Officers and employees of the bureau at the close of the year. Americans, Filipinos, Total, Total, 1913. 1913. 1913. 1912. )iretors,,,s.................... 1 A It............................................................................ 1 Assislant directors............................. 9 1 10 9 Assistant to director................................... 1 lnspeotor for Philippine Commission.................. 1..1 2 s............................................. 278 57 335 314 erks................................................ 16 46 62 60 essngers...................................................... 7 7 7 Stenographers.......................... 5 2 7 6 'ranslators...................... 1 2 2 nt....................... 3 16 19 18 iscejllaneious............................... 4 16 20 19 121

Page  122 122 REPORT OF THE PHILIPPINE COMMISSION. Changes in personnel, excluding officers and enlisted men. Americans, Filipinos, Total, Total, 1913. 1913. 1913. 1912. Appointments: Classified service................................... 2 12 14 5 Unr lassifie l service.......................... 4 10 14 27 Reinstatements................................................... 2 Removals: ClassifieI service.................................. UnQlassified service................................ 1 1 2 1 Resignations, voluntary: (lassifie I service................................... 3 5 8 13 Unclassified service................................ 2 4 6 18 Resignations, due to economy: Classifie I service..... 1.......................... I......... 1 Un-lassified service...................1............. 1.... Transfers to bureau.................................... 2 2 4 9 Transfers from bureau............... 2 2 5 Deaths.. D eaths........................................ I............................................. S-teamcnt of number of American and Filipino officers and employees at the time of CrenderCig reports submitted to show relative numbers of Americans and Filipinos employed, excluding enlisted men. Dates. Americans. Filipinos. Total. Salary expenditures. June 30, 1905........................ 259 5... 2........... June 30. 10..................... 3 221 527.............. June 30, 19()07.......28..........28 107 393.. June 30, 1908..................................... 2 125 410. Jln3() 1.................... 284 113 397 1 i;,135,715.83 June l 30,' 19 1........... - -------—. ---. — 295 93 388 1,142,610.05 June 3, 112............................. 298 104 402 1,163,327.86 June 30, 113...... 291 121 412 1;187,160.38 D) ec. 31, 1913.......................................... 319 12 1 41 2 1,118.76 13c. 31, 1313..........319 146 465 680,118.78 1 The constabulary records are not available showing the expenditures for previous years. On December 31, 1913, the actual strength of the constabulary, inclhlding the medical division and the band, was 321 officers and 4,6St2 enlisted men distributed throughout the Archipelago in 136 stations. Strength of enlisted force, December 31, 1913. Officers. Enlisted men. eadqurtrs.......................10 25 M edical division....................................................... 10 25 District of Northlern Luzon...........................4 7.... Medical division. - * - - - - - ---. --- —- ------ --------- ------ 46 758 District of Central Lnuzon. --- ----------------------- -—. ---6-4 --- —- 3 14 Medical division.................... —.. --- —------—.............. 64 1,092 Santd ical division 3 "" " " " " "*"**- -------— * *-*-................. 36 6.4 District of Visd4naov.. 4 23 --- -------------—........ 3 82 District of Coena Luzon................................................ 2 17 M edical division- 574 25 Santa.......................................................... Medical division 5... General service, lippne consta lar........................ 3............. 5 Constabu lar ian..... y 5 137 Constabhulary school 1 79 Palawan 6 12 Absent with leaveis......... 2............ 5 0 On detached service from the bureau....'.2......... 26... Total..... CTon _tbu ~arvl b a n d " "*"****-**-*...-......321 4,682

Page  123 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 123 For the purpose of discipline, instruction, and inspection the islands are divided into five constabulary districts, each in charge of an assistant chief. The number of companies of constabulary now is 107, an increase of 11 companies in the past 12 months. The smaller provinces have one company each and the larger provinces as many as four companies. Act No. 2268 of the Philippine Commission, dated February 17, 1913, authorized six additional companies and Act No. 2289, dated November 4, 1913, five additional companies. All the additional companies are stationed in the islands of Mindanao and Palawan and the Sulu group. The constabulary system depends for the maintenance of order in a given province on men enlisted in the province, the advantage of knowledge of local conditions, territory, and dialect having been found after years of trial to outweigh the disadvantages. The Moros in the south and hill people in the north render excellent service in keeping the peace among their own people, and the time has arrived when enlistments can be made among the Ilongot and Isneg people to more effectively police the untraveled mountain regions in the north inhabited by these tribes. Some of both of these tribes desire to become soldiers and we have officers who know enough of their dialects and possess the confidence of their chiefs so that this can be taken up when funds become available. The condition of the constabulary with reference to training and discipline is very good. The number of offenses against discipline among officers has been small, and the criminal or disciplinary offenses among the men infrequent. All newly appointed officers are sent to the constabulary school at Baguio for preliminary instruction for three months. The Legislature has authorized the appointment of a number of provisional officers or cadets, at a nominal salary, for a six-months' course of instruction at Baguio, the selected ones forming an eligible list for appointment as third lieutenants. Request has been sent to the War Department that efforts be made to have all the newly appointed officers who come out this year selected from military colleges having Army officers detailed as instructors. PENSION FUND. This fund now amounts to t1240,402.50, which has been contributed by the officers and men. The question of providing an adequate pension for officers and enlisted men of the constabulary has been considered by the Legislature, but no definite action has been taken up to this time. PEACE CONDITIONS BY DISTRICTS, District of northern Luzon.-Col. W. C. Rivers was in charge of this district until December 23 last, when he was relieved by Col. John R. White. There was no organized brigandage in the district, although the usual number of crimes of violence and other offenses against individuals or property occurred. The constabularv in this, as well as in other districts, was constantly employed in the effort to prevent crime by means of systematic small patrols throughout the country districts. A good deal of animal stealing took place in

Page  124 124 REPORT OF THE PHILIPPINE COMMISSION. La Union. In Candon, Ilocos Sur, there was some unimportant trouble between the president and other town officials. A stevedore strike in Aparri in November seemed to threaten violence at one time, but through the efforts of the municipal officials and the constabulary the trouble was averted. Peace conditions have been good in the mountain region among the hill tribe, although vengeance or personal fueds resulted in several murders and the constabulary was called on to keep the peace between different villages. Conditions continued to improve in Apayao Province and great improvement is predicted there when the station of Tauit is moved farther into the interior where the various Isneg chiefs can visit the station and keep in touch with the provincial governor without passing the rancherias of enemies among their own people. Funds for this purpose are available now. Disti4ct of central Luzon.-Col. W. C. Taylor was in charge of this district. No organized outlaw bands were reported and the number of thefts, robberies, and murders was about as usual. The capture of a well-known outlaw, Severino Perez, on November 23, 1913, will no doubt improve conditions in the swamps on the BulacanBataan border. In Zambales, on August 11, some members of a secret organization called "Esperanza de la Patria " took two shotguns from private citizens and took to the mountains. They lost their way in the hills, ran short of provisions, and a number surrendered with the two shotguns to the police and volunteers who had turned out from the citizens at San Marcelino. The constabulary, under Lieut. Col. Griffith and Capt. Nicholson, later arrested the leaders, Basilio de Guzman and Bias Sison, and they, with about G6 followers were tried by the courts and sentenced to imprisonment to terms varying from six months to one year. Two priests of the Filipino Independent Church have since been arrested for complicity with this movement and are now awaiting trial. )istr;ct of southern Luzon.-Lieut. Col. C. C. Smith was in charge of this district. There was no disturbance of public order of any implortance in this district. A small band of Negrito outlaws was broken up by the constabulary in December by the killing and captulre of the leaders. A few of the remnants of the old Otoy band of Ptilajanes are reported to be living in the remote regions of Samlar and to have one of two firearms. The leader has since been captured by the constabulary and the senior inspector is endeavoring to settle these people in one of the rancherias of the interior where they can form a barrio and go to farming. I)i1sft~ct of the Visayas.-This district was under the charge of Col. T.. Mair. No organized bands were reported. An outlaw called Oto Derable and his five sons, who have led a roaming life in the mountains along the Antique border, are still at large. Oto and his people are said to have several firearms but have committed no depredations. Some of the mountain people in the interior of Negros committed an assualt on some of their own people, killing about 7, and 20 of the assailants have since been arrested by the constabulary. There are a number of ignorant people who live in the mountains between Iloilo and Capiz under the general leadership of two brothers named Batalones, who are reported by the low

Page  125 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 125 land people occasionally as intending to make a foray. These people are engaged in farming and it is difficult to get in touch with them in the rough country they inhabit. A constabulary station is kept at Tapaz on the Capiz side and at Calinog on the Iloilo side, in an effort to get in touch with these people. District of lindanao.-This district was in charge of Col. Hershey. The departure of Brig. Gen. J. J. Pershing, United States Army, in December, who had been governor of the Moro Province for four years, and the appointment of the Hon. Frank W. Carpenter as his successor, followed the removal of the American troops from Mindanao. The garrisons there now are composed of Philippine Scouts and Philippine Constabulary. This places heavier responsibility on the constabulary and adds much to the work in that region. Four companies of constabulary have been temporarily loaned for duty in Mindanao until the newly formed companies there are trained. Peace conditions in Lanao, Cotabato, and Davao are very good. On the island of Jolo there is a band of outlaws; a number have rifles and have committed some depredations on their own people. Patrols are maintained, with the idea of protecting the law-abiding and capturing or destroying the outlaws. MUNICIPAL POLICE. The municipal police are administered under Act No. 2169. The law empowers the chief of constabulary to make rules for the instruction and discipline of the police and to prescribe the armament, and the senior inspectors and other constabulary officials in the provinces inspect and report upon the condition of the police monthly. A new manual of the municipal police was issued in September, and will be of assistance in uniformly providing rules and regulations for all towns in the Archipelago. Formerly the municipal councils had power to change and did change the personnel of the police after each election. The new law corrects this defect and provides that the chiefs and members of the municipal police force of each town are appointed only after examination and have the protection of the civil-service law and are removed only for cause. This not only prevents wholesale changes in the whole of the force at one time, but insures a better class of men for the work. The principal difficulty (and a real one in a number of places) found so far is that some of the towns have not the revenues from which to pay a living wage to the policemen, and estimates have been submitted in the effort to get the insular government to assist some of the poorer towns in paying the salaries of the police. One of the most important things the constabulary can now do is assisting the provincial governors and municipal presidents to continue to improve the municipal police. As the municipal police improve, the constabulary work in the towns and well-settled portions of the provinces will be less and the constabulary will be left more free to look out for the distant sections and to keep in touch with the hill people. During the past six months peace conditions throughout the islands have been excellent and the number of crimes committed by individuals has been normal.

Page  126 126 REPORT OF THE PHILIPPINE COMMISSION. BUREAU OF PUBLIC WORKS. WARWICK GREENE, DIRECTOR OF PUBLIC WORKS. The larger results of the year's work. July 1 to July 1 to In existDec., 31, ec31, ence Dec. 1912. 1913. 31, 1913......~~~~~~~~~ Heavily surfaced road constructed and designated first class........kilos.. 71. 1 136.5 1 2,233.8 Reinforce I concrete bridges and culverts constructed...........number. - 232 186 1 3,046 Successful artesian wells completed.................................do.... 78 84 2902 Reinforced concrete buildings completed...........................do.... 67 51 (s Including the Benguet Road and city of Baguio. 2 Including Agusan, Mountain Province, Palawan, Tagudin, Nueva Vizcaya, and the city of Manila. a Earlier records incomplete. Compared with one-half of the expenditure for the previous fiscal year of 12 months this is an increase (+) or decrease (-) as follows: Per cent increase Amount, (+) or decrease (-) Total of expenditure supervised..................................., 407,466.45 + Total expended upon road and bridge work......................... 2,840,453.83 + 6 Expended upon road maintenance work...................... 839,981.26 + 6 Expended upon building work............................................., 406,881. 80 +51 Expended upon irrigation work, including river control...................... 191359.76 -45 Expended upon water supply........................................ 259195.17 -8 A ll of the funds expended by the bureau are derived from the cur-_..........._. 59,195.1 All of the funds expended by the bureau are derived from the current revenue of the islands. PERSONNEL. The reduction in number of bureau personnel continued, mainly as a result of employees separating of their own volition. No separations were made on the initiative of the bureau except after thorough consideration of the merits of the case and available funds. The statistics as to engineers follow: Number of individual engineers employed during the year. Total. Filipino. 1911..1.3.... 15 153 1912'.............................................................................. 141 1 1913............................. 141 13 1914 (6 m onths)........................................................ - - 126 1 101 Il Average salary and length of service of individual engineers. salary.g Average length of service. 1911.................... 1912......................................... 3,983. 51 2 years 15 days. 1913...............................""...................... 4,146.20 2 years 9 months. 1913. ----4,146. 20 2 years 9 months. 1914 (6. onths).......... *. - --...... 4,194.36 3 years 2 months 20 days. 194(6 months)................................. 44,221.65 3 years 7 months 11 days.

Page  127 REFPORT OF THE SECRETARY OF COMMERCE AND POLICE. 127 LEGISLATION. The only new legislation of importance affecting the bureau of public works, and passed before the end of the year, was Act No. 2308, enacted December 19, 1913. It provided for the assumption of the duties heretofore performed by the bureau of navigation in connection with the construction of lighthouses and accessory buildings, of docks and other port works, of facilities for loading and unloading vessels, together with the dredging work, etc. Financial condition of the bureau of public works. A mount bureau Cash account Total worth appropriation balance oawor. Idevoted to bureau. June 30, 1910................P........................ 135, 931.54 P959,148. 60 () June 30, 1911.............................. 493,259.41 1,356,677.20 P184,834.70 June 30, 1912................................. 141,942.06 1,574,509.28 156,000.00 June 30, 1913............................................ 89,365. 27 1,520,396.06 137, 965. 00 Dec. 31, 1913.......................................... 110,733.20 1,139,232.00 136,000. 00 1 Not comparable. The abrupt falling off in total worth at the end of 1913 is due to charging off P'611,775.72 for depreciation of equipment, being the first charge for the purpose ever made in the bureau accounts. If the figures were on the same basis as in previous years, the total worth would be P1,861,740.92. CASH ACCOUNT. The cash account on June 30, 1912, showed that the insular treasury in financing the bureau of public works, had advanced over t900,000; the accounts receivable exceeded P1,100,000, and accounts payable reached almost 1800,000. The bureau was doing a business in supervising engineering work of about P10,000,000 per year. The amount advanced by the treasury, and the two bill items, were entirely too large. Efforts to better this situation had made progress, but the pressure of other work in the accounting division had prevented it being no more than partial. A new campaign was at once begun and consistently and continuously carried on for the more prompt payment of the bureau's own debts and for the application of an insistent pressure upon the bureau debtors. Results once obtained in the items of bills receivable and bills payable, the draft on the treasury would automatically reduce itself. The following tabulation shows satisfactory results from this policy: Accounts receivable. June30,1912. June 30, 1913. Dec. 3 1, 1913. Decrease, 18 months. Per cent. Provinces................................. P-496,439.64 P288,099.31 fP167,065. 41 66 bureaus................................. 472,480.31 313,761.75 118,946.27 75 Persons and firms......................... 112,134.84 96,234.51 54,120. 79 52 Municipalities.............................. 55,661.22 28, 681. 09 6,271.65 89 Total............................... 1,136,716.01 726,776.66 346,404.12 70

Page  128 128 REPORT OF THE PHILIPPINE COMMISSION. Accounts payable. June 30, 1912- ------------- 799,073.06 June 30, 1913_________ --- —-------------.276, 508. 23 Dec. 31, 1913 --------------------------------------- 252,939.42 Expenditures supervised by the bureau of public works, July 1, 1913, to Dec. 31, 1913. Road and bridge work --- —------- ----- 2, 840, 453.83 Building work ---_ --- —- ----------- 1, 406, 881.80 Irrigation and river control______ — _ --- —------ --- 191, 359. 76 Water supply ----_ --- —------------- 259, 195. 17 Miscellaneous work _______ --- —-- ----------------- 326, 976.17 General office —_ ____ --- — -----------— 3 382, 599. 72 Total _______ -------------------------- 5, 407, 466. 45 NOTE.-One-half of the total expenditure supervised during the fiscal year 1913 (July 1, 1912, to June 30, 1913) was p5,142,796. Profit and loss account (fiscal year 191.) six months ending Dec. 31, 1913. Dr. Cr. Transfer to building min ntenance, al- P159,000.00 Appropriation Act No. 1989.....P... 286, 000.00 teration, and repair. Transfer for prior year's expense... 29,039.08 Transfer.......................... 9, 000.00 Maintenance of improvements....... 2,237.63 Transfer to prior year's expense..... 29,039.08 Bureau administration and miscella- 420, 560.01 Receipts from operation......... 103, 582.50 neous expense. Equipment rentals.................. 25, 407.92 Maintenance of equipment........... 43, 404.25 Surcharges 313,089.16 Equipment rentals canceled......... 40,001.02 Refund of prior year's expense...... 935.05 (ain from operation................. 72,811.72 Total......................... 767,053.71 Total........................ 767, 053.71 NoTE. —The sum of P45,944.26 was charged out under heading administration to account of deterioration of supplies in stock. LIABILITIES. Capital Dec. 31, 1913: Cash from insular treasury....... 668, 675.47 Pernanent inmprovemsents....... 97,582. 54 Equipment on hand........... 1,041, 649.46 1,807,907.47 Accounts payable........... 252, 939.42 Returned to insular treasury, including 1t72,S11.72 gain in operation, counting both the net bureau appropriation and bureau earnings, as per profit and loss account above.. 110, 733.20 Total......................... 2,171,580.09 ~ ----~~~ — ~~~~-~-~-~2,171,580.09 ASSETS. Bureau of public works plant: Permanent improvements, real estate, and equipment on hand July 1, 1913................ 1, 431, 030.79 Net expenditure from capital upon improvement and equipment, being the value of items purchased lessreturn from items sold........................... 53,648.47 Net assets brought into account, being public property acquired from projects, etc., less other property transferred, valueless propertydroppedorcondemned, etc............................ 266,328.46 Subtotal................. 1, 751,007.72 Less depreciation charged off........ 611, 775. 72 1,139, 232.00 Supplies on hand at end of half year 632,183.11 Accounts receivable-making no allowance for bad debts.......... 346, 404.12 Cash in hands of disbursing officers.. 53, 760.86 Total....................... 2,171,580.09

Page  129 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 129 FIRST-CLASS ROAD CONSTRUCTED AND DESIGNATED. Fiscal year ending December 31, 1913 (6 months). Kilometers. 11l0LO................. 21.6 Capiz................ I I 14.5 13.7 A ILi jL~~n. I2V.tU,.l lo............. Nueva Ecija......... La Union............ Bulacan......... Isabela............ Cebu............... Negros Oriental...... Tarlac............ Batangas............ Tayabas............. Cagayan............. Leyte................ Samar............... Pangasinan.......... Sorsogon............ Bohol................ Negros Occidental... Ambos Camarines... Albay............... La Laguna........... Pampanga........... Ilocos Sur........ Cavite............... Bataan........... Benguet............ Surigao.............. Ilocos Norte.......... Misamis............. Rizal........... Zambales............ I I _L I, J 11.2 11.1 I r 7.2 I 6.6 - I I I 6.0 5.5 5.0 4.2 4.0 3.0 3.0 2.9 2.8 2.5 2.5 2.1 2.0 1.4 1.4 1.4 * 0.8 0.1 0 0 0 0 0 0 0 FIRST-CLASS ROAD CONSTRUCTED. Fiscal year. Kilometers. 1910.......................................................... 249.0 191.1.......................................................... 357.4 1912....................................................... 291.4 1913.......................................................... 257.6 1913. rr~r~ 257.6 1914..........................................1[6 months].. 136.5 NoTE. —Benguet includes the city of Baguio. 8329-15- 9

Page  130 130 REPORT OF THE PHILIPPINE COMMISSION. Roads in existence-all classes-Dec. 31, 1913. Provindes. First class. Kilometers. Cebu................................................... 152.5 Pangasinan............................................ 141.6 Negros Occidental..................................... 104.4 Nueva Ecija...................................... 448.4 Batangas...................... 70.2 Iloilo................................................... 145.3 Leyte........................................... 99.0 Pamtpanga............................................ 41.6 Bulacan..5...................................59. 9 Albay............................................ 133.4 Cagayan............................................ 16.0 ohol................................................. 46.3 Tayabas............................................ 115.0 Antique.......................... 46.7 La Laguna............................................ 101.6 Cavite............................................. 52.6 Capiz................................ 106.6 Ambos Camarines....................................... 113.5 Ilocos Sur.......................................... 102. 2 Ria.................................. 97.9 Ilocos Norte............................................ 54.8 Misarnis................................................ 21.7 Isabela.............................................. 32.7 Tarlac................................................. 33.4 Negros Oriental.............................. 33. 5 Sanar............................................. 47.5 Sosogon....................................... 70.1 Zanmbales......................................... La Union.52. 4 La Union.......................................... 51 4 Benguet1......................................... 61.9 Suri.an........................................0.....Surigao..........,.....................::::::;:^[ \9.1 Second Third class. class. Kilometers. 302.1 126.4 39.4 3.5 123.0 70.9............ 98.2 104.2 45.4 47.7 118.5 71.0 89.7 50.7 45.4 38 3 25.9 82.3 42.3 116.4 71.3 22.2 11.2 115.0.2 71.7 54.7 20.5 16.5 Kilometers. 143.5 254.2 321.2 339.6 171.5 121.0 215.7 156.7 113.3 89.2 178.6 51.0 24.3 68.1 49.6 96.1 48.6 52.6.5 35.9 2.5 78.3 116.1 116.9 13.0 95.7 63 9 55.9 8.5 8.2 20.5 28.0 Total. Kilometers. 598 1 522.2 465 0 391.5 370.7 337.2 314.7 296.5 277.4 268.0 242.3 215.8 210.3 204.5 201.9 194.1 193.5 192.0 185.0 176.1 173.7 171.3 171.0 161.5 161.5 143.2 134.2 127.6 115 6 70.1 57.0 53.6 I I I 1 Benguet includes city of Baguio. Roads in existence at end of each fiscal year. Years. First and second classes. Kilometers. 2,656.6 3,999.6 4,131.6 4,258.4 Third class. Total. 1911.......................................................... 1911. - 1912............................... 1913........................................................ 1914 1.................................................._.. 1 Six months only. Kilometers. 2,956.7 3,216.7 3,118.1 3,138. 7 Kilometcrs. 5, 613.3 7,21!.3 7, 249. 7 7,397.1

Page  131 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 131 COST OF ROAD MAINTENANCE. AVERAGES PER KILOMETER FOR ISOLATED CAMINERO SYSTEM. Fiscal year ending December 31, 1913 (6 months). Rizal.............. Zambales......... 368.05 Bohol............. I 339.53 1 b ~4 ki-il 1432.20 Fs Albay, -............... Tarlac............... I Pangasinan........... I I *?324.86 g r323.94 P'323.92 N 'P322.94 I P317.56 P313.72................ I I Cavite............... I I I I Leyte................ II I I II II Misamis............ I I UO.Y Samar.......... Laguna............ i III I I Sorsogon............ P La Union........... I 2 Surigao.............. 02( 1P288.83 P288.28 '276.10 66.39 i5.74 Nueva Ecija. Ilocos Norte. Cagayan.............~........~......... I I, ALL PROVINCES.. Bataan..........., -I ' II 1r264.72 P0255.73 _ P254.86 -I 251.39 P0246.65 I P243.42 1 232.98 I~-c i.I Yampanga...........p I I Batangas......., I I I....... Negros Occidental... II - '214.7t Bulacan 4, - I r""""P -" -' i L '189.26 l liOCOs ur............ --- T1181.30 O178.45 Isabela............... I I Capiz..... _..._ '174.5. Ambos Camarines... Tayabas............. Antique............ Cebu................ Negros Oriental...... __________________ _ P1 0 O166.26 I Il________ III OP150.05 ____________________ 1148.66 _IIIIIIIln_ _ P148.20 _rs101~GA S111.96 GANG SYSTEM. Average cost per kilometer for the year excluding Benguet Road P100.45. TOTALS. 1912 Isolated Caminero system.................... 0826.972.11 Gang system................................. 588,178.42 Total............................... 1,415,150.53 1914 1913 [6 mos. only.] O11,096.854,29 10539, 5O0. 88 482, 250. 53 300, 420. 38 1,579,104.82 839,981.26 G ang maintenance totals include the cost of maintaining the Benguet Road.

Page  132 132 REPORT OF THE PHILIPPINE COMMISSION. ROAD WORK. Increase Compared Kilometers during with increase iL existence 6 months, for one-half Dec. 31, 1913. July 1-Dec. 31, fiscal year 1913 '19113. ithis is an increase of Per cent. First-class road........................................ 2,233.8 136. 5 First and second class road........................... 4,258. 4 126. 8 92 First, second, and third class road, excluding trails.... 7,397.1 147.4 78i.-~ _-~- _ - -- The increase in first-class road represents both the new construction and the official first-class designation for maintenance purposes, there being no new work in the Mountain Province. The sum of the first and second class roads, as above, represents the length of road continuously open to productive vehicle traffic, and is the road statistic which requires least qualification. The amount of funds expended upon first-class road construction was 35 per cent of the road and bridge funds-practically the same as heretofore. The total first-class construction passing inspection for designation, as noted above, was 136.5 kilometers. The expenditure upon this class of construction was reported by the district engineers to be P1,027,622.61. On this basis, the new heavily surfaced (or first-class) road cost somewhat over 1*7,500 per kilometer. The surfaced road and its classification by kinds of surfacing is shown below: Kilometers. Stone surfacing- ---— ___- ___ _ __ _ 800.1 Gravel surfacing_......... —_____________I,.. Coral surfacing.~______.___ _ 5 --- —5 --- —--------------— _. -------------- 756. The scientific study of road construction, which the bureau depends upon to keep its road work abreast of modern developments in highway specification and practice, continued through the year. No especial change was evident in the amount of traffic upon the roads. The isolated caminero system at the beginning of the year was maintaining 2,111.4 kilometers of road. This length increased steadilv until the average length maintained for the six months became 2,146.3 kilometers. The cost of the caminero system was IP251.39 per kilometer, which is equivalent to a yearly ratq of P502.78, as compared with P555 per kilometer for the fiscal year of 1913. Gang maintenance covered nearly all the remaining length of the road continuously passable for productive traffic. The cost of the gang maintenance was 1100.45 per kilometer for the six months, compared with P127.53 for similar work during the 12 months of 1913. The heavy gang maintenance work is done just after the rainy season, which is the cause of the apparently high cost. Maintenance work required funds to the extent of 1'840,000, or 30 per cent of all money expended upon road and bridge work. The accompanying chart shows the detail of the work, the character of which is completely outlined in the reports for the last two years.

Page  133 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 133 TRUNK ROADS IN LUZON. Work was vigorously pushed on the two trunk roads running from Manila to the two ends of the island of Luzon. Until the final location is made at all points the total lengths are somewhat variable, but the Manila-North Road will be not far from 600 kilometers in length and the Manila-South Road about 550 kilometers. The length of the first-class portion of the northern road has increased 37 per cent in the last 18 months, while the increase in the first-class part of the southern trunk road was 19 per cent in the same period. BRIDGES AND CULVERTS. The cost of designing bridges and culverts was reduced one-seventh during the 6 months, the figure for the 12 months ending June 30, 1913, having been 2.2 per cent of the engineer's estimate of cost, falling to 1.9 per cent for the 6 months ending December 31, 1913. It is to be noted that the superstructures of the reinforced concrete girder bridges have been standardized for a live load of one 121-ton road roller. This class of design work is therefore now limited to preparing substructure plans and adapting the standard superstructures to the specific location. Contracts were awarded for the construction of 17 bridges, with an aggregate contract price of P202,000. Bids for one bridge, at an estimated cost of 115,000, were rejected as being too high, and the work is being carried out by administration. The reinforced concrete girder type of bridge on reinforced concrete pile bents continues to provide a satisfactory and economical type of permanent construction. Seventy-five per cent of the designs prepared for crossings, calling for reinforced concrete girder type of bridge, were of this type of substructure. One of the most important structures designed during the period covered by this report was the Agno River Bridge at Bayambang, Pangasinan, on the Bayambang-Bautista Road. The proposed structure consists of four 39.62-meter (130 feet) steel spans, on concrete substructure, with timber pile foundations. The over-all length of the bridge is 161.93 meters. The estimated cost to construct is 110,000. Plans for this bridge were 70 per cent completed on January 1, 1914. From the standpoint of aesthetic design the Molawin Bridge. over the Molawin River on the grounds of the Los Baios agricultural college, Laguna, was one of the most interesting projects handled. The plans for this proposed structure call for a two-rib reinforced concrete arch, parabolic in outline and of 15-meter clear span. The floor system of the main span is carried on columns resting on the arch rilbs and skewback of abutments. An approach span on each end provides additional waterway and adds to the finished appearance of tlle bridge. The location is ideal for such a structure the crossing bing over a comparatively deep ravine section, and the foundations c(nsist of adobe stone. The over-all length of the proposed bridge is 33 meters and the estimated cost to construct is P15,000. The essential bridge and culvert statistics appear on the next two pages.

Page  134 134 REPORT OF THE PHILIPPINE COMMISSION. BRIDGES AND CULVERTS COMPLETED. Fiscal year ending Dec. 31, 191 3 (6 months). Bulacan......................... 254.64 Bohol................ 102.80 Albay.......... 89.08 Leyte................ 69. 70 -12 Sorsogon............. 41.40 Misamis............. W - 39.00 Nueva Ecija......... 38.90 - 12 Tayabas............. 3 34.92 Capiz................4 30.50 Ilocos Sur 0..2..... 28.00 La Union............ 27.00 Iloilo................ - 23.00 Occidental Negros... 21.00 Samar............... 1 21.00 Cebu................. 17.00 Isabela.1...... 12.00 -9 Rizal................ 10.25 —,8 Batangas.......... 10.00 Cagayan............ 10.00 Cavite............... 9.30 Bataan............ 8.50 '5 La Laguna........... 7.00 Zambales............ 6.50 Tarlac............... 2.00 Ilocos Norte.......... 1.50 Pangasinan.......... 1.50 Benguet 1. 20 Benguet............. 20 Ambos Camarines... 1.00:J ---=3 Number of structures. Total span meters. NoEr.-No structures were completed in the provinces of Antique, Oriental Negros, Pampanga, Surigao, and city of Baguio. REENJORCED CONCRETE BRIDGES AND CULVERTS. Fiscal year. Number. Meters of span. 1912.................. 346.....,56.60 1913.................. 5 4. 504. 2,008.05 1914 (6 months only)...... 16.... 12, 784.61 Number of Total span Ffcal year. structures. meter. 1910....................... 3,234.00 191............5 470................ 2013.75 1912............358....................... 1,700.06 913914.5082.....642.34 1914 (6 months only).::: 190.... 2,64234 NoTE.-These figures include durable bridges and culverts only. During the 6 months of 1914, 15 timber structures were completed, with a total span of 376.01 meters.

Page  135 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 135 BRIDGES AND CULVERTS. Total meters span in existence December 31, 1913. Thousands. 0 1 2 3 4 5 6 7 8 9 10 11 Concrete............... 11,984. 46 Timber................ 9,385.46 Stone *.................. 6,665.68 Steel.................... 3, 384. 46, REINFORCED CONCRETE BRIDGES AND CULVERTS. Fiscal year. Meters, total span. 1911 7,709.09 1912 9,215.69 1913 11,223.74 1914 [6 mos. only.] 11,984.46 Durable................................................................. 21034.60 Temporary........................................................................... 9,385.46 Total....................................... 30,420.06 * Includes all durable structures other than steel and concrete. BRIDGES AND CULVERTS. Number of structures in existence December 81, 1913. Steel................. 127 Timber.............. 1,168 * Stone............... 2, 728 Concrete.............3,046 REINFORCED CONCRETE BRIDGES AND CULVERTS. Fiscal year. Number. 1911........................................................, 004 1912............................................ 2,350 1913.............................2,854 1914 (6 months only)......................................... 3 046 Durable..... 5,901 Temporary................... 1,168 Total...................................... 7,069 * Includes all durable structures other than concrete and steel.

Page  136 136 REPORT OF THE PHILIPPINE COMMISSION. BUILDINGS. The demand for public works has continued to be considerably in excess of the number which can be built with available funds. As a consequence, and following the policy of recent years, the new buildings are practically confined to those required for reasons of health and education. Fifty-four buildings were completed during the six months, of which 51 classify either as school accommodation or as sanitary improvement. The policy of standardizing plans of buildings which would be required in many different localities was continued. At present the schools, the municipal markets and accessory tiendas, the provincial jails, and to some extent the smaller presidencias are standardized. A certain amount of individuality obtains in the majority of these standard type buildings by reason of location and amount of funds available, also by reason of the addition of a room on this structure, a clock tower on that, etc. These changes do not seriously affect the economy obtained, first, in the designing room; second, in the limitation of the sizes of reinforcing steel to a reasonable number; and third, in4the establishing of mhrket sizes of door and window work. It is largely owing to this standardization that the government has been able to meet a reasonable number of the requests for new buildings. Over nine-tenths of the buildings erected in the six months were standardized to a large extent. Progress continued to be made in changing the wooden-truss and galvanized-iron roof construction to the more sightly and durable tile construction on steel trusses. The policy of durable construction was even more rigidly adhered to than heretofore, as is evident from the following tabulation: Buildings constructed of reinforced concrete. Capacity. Concrete Year. Number conP~Yeaer. | iNumber. Concrete All strucbuild- build- tion. ings. ings. Cubic Cubic 1n11 meters. meters. Percent. 19.12.. *"*". - -- ---—...................... 54 132,144 206,368 64 191:1 """"""-"""""""".-.-. ---. --- 96 183,673 255,640 72 1914n-ths)................................... 108 346,626 409,025 (6 months).............................................. 51 169, 853 184,160 92 The item concrete buildings in this tabulation does not include buildings of combination concrete and wood. It does include buildings with open sides provided the posts are of concrete. Other statistics for the half year are given in the following table:

Page  137 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 137 Buildings completed, fiscal year ending Dec. 31, 1913 (six months). ExecuProvinces. mive n-d Schools. Publc Tiendas. adininis- markets. trative. Cebu......... ---. ---..................-..................... 1 3 4 2 CebIloilou........................................................... 2 2 3 Illoio..2................................ i 2 2 3 Layuna.........- —................................... 2 1 Lyt...................................... 1 2.......... ay.................................................... 1 Tayabas.2. Capiz............................................................. 1 Occidental Negros...................................................... 1 1 Pampanga......................................1 1 Pangasinan...........................2............... Tarlac.................1..........1...... Bo'bol.................................. oCa.ayan.............1................. Cavite........................................................... Caie................................... 1........... Manila............................................................................ Niieva Ecija........................................................ Oriental Negros........................................... Sorsogon................................................ ~Zamba~les~.1.'.............................. Zam balesi................................................... ' Total.................................................... 4 25 115 210 1Including markets at Carcar, Cebu, 2 buildings. 2 Tiendis supplementary to public markets, including Tiendas at Carcar, Cebu, 2 buildings; Santa Barbara, Iloilo, 2 buildings. Total cost, P 796,494.02. Total buildings, 54. The above figures include only buildings completed during the six months. No buildings were constructed by the bureau of public works in Ambos Camarines, Antique, Bataan, Benguet, Ilocos Norte, Ilocos Sur, La Union, Rizal, Misamis, Samar, Surigao, and City of Baguio. BUILDING WrORK IN MANILA. The reconstruction of the cold storage at the ice plant has been continued throughout the year and is now rapidly approaching completion. Three sections have been completed, at an average cost of approximately V110,000 each. The fourth section is in course of reconstruction, and preparation for the reconstruction of the fifth and last section is now being made. The balance of heavy construction work for the six months ending December 31, 1913, consisted mainly of installing floors in the bureau of supply bodegas, the construction of the dispensary and the girls' dormitory, Taft Avenue. The concrete work on the girls' dormitory has been completed up to the level of the third floor, and although the fact that this building is a distinctly architectural piece of work, requiring the greatest care and attention to details and finishing, makes progress somewhat slow, the contractor anticipates completing this work well within the contract time (October, 1914). The amount of the contract is P252,000 and the work completed to December 31, 1913, is approximately P130,000. The aquarium has been completed and accepted by the director of the bureau of science during the period under review. Minor repairs and alterations prevented its being opened to the public until Febru

Page  138 138 REPORT OF THE PHILIPPINE COMMISSION. ary, 1914. The iron frames which incase the glass windows of the aquarium have been waterproofed with bitumistic enamel, and various plumbing defects discoverable only after actual operation of the system have also received attention. The south bureau of supply bodega floor was completed during the latter part of July and the installation of the north bureau of supply bodega floor was commenced immediately after and was completed on September 10, 1913. The completed work has since proved satisfactory in all respects. The floors were designed to carry 1,000 pounds per square foot, and the area that has since been operated with this load has proved satisfactory. It is possible that the above-mentioned 1,000 pounds per square foot may be increased in course of time, after the piles have developed a greater bearing power, due to the solidification of the substrata and the higher skin friction developed. The expenditure for general repairs to buildings occupied by the insular government has been reduced considerably in comparison with previous years. In view of the financial situation of the insular treasury, no building repairs have been made except those essential to stability. Decorative features and alterations that tended only to greater convenience were disapproved in all cases when bureau of public works funds were involved. The result has been that only 1119,848.31 was expended on repair work in buildings occupied by the insular government in the city of Manila and the constabulary cuartels in the provinces. Labor conditions during the period under review have been satisfactory, inasmuch as there has been no difficulty in securing skilled and unskilled labor. This is probably caused by the falling off in amount of private building work. WATER SUPPLY. The inhabitants of the islands continue to evince a lively and widespread interest in the improvement of local water supply. This work, above all other work performed by the bureau of public works, aims directly at a lessening of the death rate and an improvement in the physical well-being of the Filipino. While any census of the users of the supply already provided is impracticable, our engineers report that at least one-tenth of the population of the islands is within carrying distance of one or another of the new sources of supply. The system of driving artesian wells, as developed by the bureau, continued to be the largest factor in opening new sources of supply. The number of successful wells in existence at various periods was as follows: June30, 1905__ - _ 2 June 30, 1910.. 302 June 30, ~1900 — ------ 5 j June 30, 1911 - ___ ___ __ 526 June 30, 1907__ --- - 54 June 30, 1912-__________ 673 June 30, 1908 -------------------- 68 3' ___ _ 68 June 30, 1913 —.-_, _________ 818 June 30, 909 _____________ 151 Dec. 31, 1913___- ___ ---- 902 The increase for the 6 months was 84 wells, or 10 per cent over the figure for the beginning of the year. Of these wells 55 successful an 5 unsuccessful were drilled with deep-well rigs. Twenty-three of the deep wells were flowing wells. The total depth of deep wells drilled was 7,966.56 linear meters. The expenditure was ~174,656.87, making the average cost per meter

Page  139 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 139 i21.92, which includes the charges of all kinds except depreciation. At the end of the year 21 deep-well rigs were in commission. There was no change in the distribution of charges between the insular and provincial artesian-well policy. During the six months one other water-supply project was completed at a cost of P17,978.07, leaving 10 projects of this class active on December 31, 1913. The spillway of the Osmenia waterworks dam was completed and stood successfully a depth of water of 30 centimeters over the lip of the dam. A steel footbridge has been completed over the spillway. The water-supply system at Bayambang, Pangasinan, has been extended until all the important street corners have faucets and fire plugs. The supply is a flowing artesian well yielding 500 gallons per minute. A water-supply system, costing P7,200, was completed at Boac, Marinduque. The source of supply is two artesian wells connected to a pumping plant. Every other street corner is supplied with a public hydrant. IRRIGATION, RIVER CONTROL, AND WATER PROJECTS. Irrigation work, more than any other work of the bureau, was affected by the financial stringency. Irrigation funds available December 31, 1913, were only P132,425.16, of which all but 16.991.27 had been allotted to projects. Recent legislation made no new appropriation. The irrigation construction at San Miguel, Tarlac, was completed on November 30, as scheduled. One thousand and eighty hectares were irrigated last season. No new work of importance was undertaken during the year in either irrigation or river control. As a result of Act No. 2152, providing a system for the appropriation of public waters, 15 original applications were filed. each requiring investigation for the purpose of safeguarding the interests of the public. Under the same law five adjudications of water-right controversies were made, as follows: O'Donnell, Moriones, and Tarlac Rivers, project irrigation No. 219; Porac, Caulamain, and Gumain Rivers, project irrigation No. 223; Angat River, project irrigation No. 226; Santa Rosa, San Cristobal, and Dismo Rivers, project irrigation No. 231; and Ange River (Pampanga), project irrigation No. 238. The total expenditures on the above classes of work were: Irrigation, P169,776.91; river control, P121,582.85. NAGUILIAN ROAD. A consideration of the cost of maintaining the Benguet Road in past years, together with the fact that the cost of maintenance and reconstruction would increase rapidly in the future, pointed to the necessity of securing,.if possible, a less expensive highway from the lowlands to Baguio. This subject received considerable study during the year. On December 26, 1913, the Hon. Vincente Singson, member of the Philippine Commission, and the undersigned were appointed a committee by resolution of the Commission to go over the Benguet and.

Page  140 140 REPORT OF THE PHILIPPINE COMMISSION. Naguilian Roads and make an investigation of the advisability of continuing the Benguet Road or of abandoning it and improving the Naguilian Road. The committee recommended that the TBenguet Road be maintained only until the Naguilian Road could be constructed, and that it then be abandoned. The bureau of public works recommends that the Naguilian Road be reconstructed and surfaced in such a manner as to make it available for all classes of traffic between Bauang in the province of La Union and the city of Baguio. The estimated total cost of the road from Bauang to Baguio, including the construction of the Naguilian and Ripsuan Bridges, is P760,000. The Ripsuan Bridge will be constructed during the coming dry season and an aerial tramway will be built across the Naguilian River for use in connection with the existing floatable bridge until funds become available for the construction of a permanent bridge. BENGUET ROAD AND AUTOMOBILE LINE. Several bad slides occurred on the Benguet Road, but the passenger and express freight business was handled throughout the year without serious delay. The maintenance of the road cost p129,768.01 for the six months, making no deduction for corral receipts. The automobile equipment assigned to the Baguio office included the 18 I)e Dion cars with 4 trailers and 8 Yorkshire steam wagons with 4 trailers. The steam wagons hauled 529,878 kilos of freight at a total cost of 1l8,773.66. Repairs cost 23 per cent of this total. The number of passengers carried by the automobile line was 4,092, as compared with 6,739 for the same six months of the year before. The freight carried totaled 771,947 kilos, of which 35,418 kilos, or 5 per cent, was express. Expenses and receipts for the six months were: Cost of operation ---— ____.__..________________.__ P91 724. n9 Cost of repairs_ —.-__._________________ __ _______ _ 45 035. 79n Total-.._____....__________- -________136, 760.7 Total receipts__- -------— ____________________ 7S,589.02 fLoss —~ —___ F15,171. 73 Loss _ _ --- —-— __ --- —------------- -___-__________ 5171. 73 BAGUIO. The future of Baguio is assured by the fact that, although for the first time in five years none of the insular bureaus moved their office to Baguio, all the government and private cottages were rented and occupied and the hotels were fairly well filled. Expensive improvements were made at the country club. The number of auto parties from Manila increased markedly, there being as many as 12 cars making the trip on one day in the easter holidays. The total expenditure supervised by the bureau in Baguio, exchlsive of the cost of maintaining the Benguet Road and certain work done for private parties, was P69,231.44 for the six months. MISCELLANEOUS. The automobile line on the Island of Panay completed its second year of operation. The receipts from operation were only 63 per

Page  141 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 141 cent of the P97,394.89 which the line cost for operation and repairs for the six months. Since the receipts for the previous year amounted to only 49 per cent of the cost of the line, the situation is improving. Special attention was given to the discharge of the duties placed upon the bureau by the laws relative to motor-vehicle traffic. The number of such vehicles registered on December 31, 1913, was 2,646, an increase of 477 for the six months. During the same period 19 chauffeur licenses were suspended and 18 revoked. There were 82 convictions for violation of the law. On October 13, 1913, the bureau issued its first printed technical handbook, replacing the typewritten Road and Bridge Manual issued to bureau engineers in 1908. This publication sums up the experience of local engineers with the tropical climate, heavy rainfall, earlier Spanish work, and available labor and work animals. BUREAU OF NAVIGATION. FRANK P. HELM, DIRECTOR; K. S. HECK, ASSISTANT DIRECTOR. PERSONNEL. No changes were made in the principal administrative officers of the bureau except that during the absence of the director, on leave in the United States from September 10 to the end of the year, Mr. K. S. Heck, assistant director and chief of the division of port works and lighthouse construction, assumed his duties as acting director. The number of employees and changes in all divisions of the organization were as follows: Offcers and employees Dec. 31, 1913. Americans. Filipinos. Others. Total. Director...........1................ 1 Assistant director and chief.................................................. Division of port works................................. 1...................... 1 Second assistant director............................. 1............ 1 Marine superintendent.................................. 1.................... 1 Marine supetor of machine ryndent.....................1............ Inspector of machinery...................................... 1........................ 1 lMelical inspector...................1............. 1 Master mecha nic........................................................ 1 Lighthouse inspectors......2.............. 2...............2 Clerks, accountants, and stenographers................14 62 1 77 Captains..14.............................. 14 Chief engineers............................... Deck officers... 11.. 20 Assistant engineers, marine....................1 16 17 Machinists and oilers......................................... 58..... 58 Firemen and coal passers....................................... 94 94 Quartermasters................. 43.... 43 Boatswains... 14......14 Sailors.... ----...141 14...1 hoips, c.wairents......................................... 141......... 141 Ships'carpenters........................................ 9 Stewards and cooks................................. 34....35 ress boys.................................... 3...................... 36 Pm atron3s...36........... 11 Launeh engineers.................................................. 15 15 oxswains............................. 20...20 op and yard men........... 9 262 91 362 Wsttchmren...,, 12........... 12 anatehmenin es............................................ 1 2 Ligl;house keepers and assistants.................. 181.......... 181 Licslthouse keepers' apprentices........................... 24 24 Boatmnen, lighthouse division.................. 81 81 Assistant engineers (civil), surveyors, and surveymen.. 7 8 15 Construction parties.......... 6 81 3 90 rewigemens..........................................7 80 87 Total................................ 86 1,295 95 1,476 _~~~~~~~~~~~~~~~~~6 _I

Page  142 142 REPORT OF THE PHILIPPINE COMMISSION. Which compares with previous years as follows: Date. Americans. Filipinos. Others. Total. June 30, 1907.......................................... 109 1,204 52 1,365 June 30, 1908.................................. 116 1,484 140 1,740 Jua 30, 1909.......................................... 149 1,490 205 1,844 Jun 30, 1910...................................... 182 2,141 296 2 619 Jun3 30,1911........................................... 150 1,793 125 2,060 Junj 30, 1912........................................... 117 1,284 38 1,449 June 30,1913........................................... 110 959 41 1,110 Dec.31,1913......................................... 86 1,295 95 1,476 The figures for June 30, 1913, are somewhat misleading, for the reason that the shop force was reduced to very much below the normal during the month of June on account of the exhaustion of funds appropriated for other divisions of the bureau and departments of the service for construction and repair work ordinarily done by the shops. The average number of employees was reduced instead of increased, as the figures would seem to indicate. NAVIGATION DIVISION. A fleet of 34 vessels (exclusive of motor boats), composed of 1 cable ship, 14 cutters, 4 seagoing launches, 13 harbor and river launches, and 2 ketches equipped with auxiliary kerosene engines, was maintained during the year, 21 of which, including the cable ship, 6 cutters, 3 seagoing launches, and 11 harbor and river launches, were in actual operation at the close of the year. Of the remaining 13 craft, 2 cutters were loaned to and operated by the bureau of coast and geodetic survey and 1 to the department of Mindanao and Sulu, while 5 cutters, 1 seagoing launch, 2 harbor and river launches, and the 2 auxiliary ketches were out of commission. The self-propelling snag boat on the Cagayan River formerly operated by this division was transferred to the port works division. In order to maintain a sufficient number of vessels in commission to fill the transportation requirements of the government during the busier months, and yet keep the net cost of operation within the available funds, the policy pursued during previous years, of chartering the cable ship and occasionally a cutter for commercial voyages, was continued, P96,432.39 being collected for such services during the half year. The gross cost of operation and maintenance of the fleet, including salaries of administrative officials, was 1647,820.78, the receipts from operation ~1192,532.62, the large difference between cost and receipts being due, as heretofore, to the fact that no revenue was derived fromn the operation of the two lighthouse tenders or from towing launches assigned to the port works dredging fleet, together with the fact that the charges collected from other departments of the government are less than the cost of operation for the time vessels are actually used by them, while no allowance is made for idle time between voyages. Aid was furnished to a number of vessels, mariners and others in distress, as follows: On October 6, 1913, the British steamship Melbourne, bound from Newcastle, Australia, for Cebu, with coal, was stranded on a slb

Page  143 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 143 merged reef 21 miles off the northeast coast of Siargao Island. The master put off in a small boat, and after a perilous trip of five days, the last two without food or water, arrived at Surigao, where an appeal for aid was made to the provincial governor, who advised Cebu and Manila by telegraph. The lighthouse tender Corregidor, then at Cebu, was immediately dispatched to the scene of the wreck, the crew of 45 men was taken off, notices were posted warning all concerned against looting, and arrangements made with the constabulary at Surigao to place a guard on the vessel. Another cutter was dispatched under charter from Manila, with salvage gear and representatives of the underwriters and owners, who attempted to refloat the vessel. Coal was thrown overboard to lighten the ship, but after success was apparently assured the winds of the northeast monsoon, which had just set in, became so strong that the seas generated on the open Pacific Ocean and to which the vessel was fully exposed, became so heavy that the work had to be abandoned. The Melbourne was broken up by the waves and entirely disappeared within 12 hours after its abandonment. On December 10 the seagoing launch Scout was dispatched to Brookes Point, Palawan, to assist the lorcha Ana Vasquez, which, while bound from Himamaylan, Negros, to Iloilo, was struck by a storm and her rigging damaged to such extent that she drifted helpless before the northeast winds for 16 days, until she finally drifted on to the Palawan coast near Brookes Point, over 300 miles off her course. The lorcha was towed by the Scout to the town of Lara, where materials for repairs were secured, and the passengers, of whom there were a considerable number, were returned to their homes at Himamaylan. At 11.40 p. m. of December 23, while the cutter Basilan, bound from Manila to Culion, was passing Point Calavite, Mindoro, cries indicating distress were heard. The vessel was stopped, the launch and small boats lowered, and after a thorough search of four hours a total of 10 people, who had been clinging to pieces of wreckage since the capsizing of their vessel, at about 7 p. m., were picked up. Two passengers and 2 members of the crew were lost when the illfated vessel sank. MARINE IRAILWAYS AND REPAIR SHOPS. The scale of operation in this, the only self-supporting division of the bureau, was reduced approximately 5 per cent, as compared with the previous year, on account of the reduced appropriations for construction and repairs in all departments of the service. Work to the total value of q1274,697.38 was done, however, with a total expenditure of P252,190.20, including t9,003.253 for repairs to tle plant, leaving a net income from operation of e22,145.78, out of whiclh V*2,437.53 was spent for new equipment, leaving a net balance of ~19,708.25. INTERISLAND TRANSPORTATION. tlnder the supervision of this division, the functions of which are to mlaintain a regular inspection service on all vessels operating under

Page  144 144 REPORT OF THE PHILIPPINE COMMISSION. contract with the government for the purpose of enforcing compliance with the provisions thereof and to supervise the operation of such government vessels as may be assigned to commercial runs where transportation facilities are not furnished by privately owned vessels, the regularity of service, accommodations, sanitary, and other conditions on all contract vessels were maintained in excellent condition. Of the eight contracts in force with subsidies, aggregating P123,544 per annum, the primary object of two, viz, routes 10-A and 10-B, is to maintain a regular, fast, and first-class weekly service between Manila and Iloilo and Manila and Cebu, respectively; in other cases the object is to maintain a more frequent as well as regular and firstclass service than would otherwise be furnished, such as, for instance, on route 1, the schedule for which provides for a monthly call at the Batanes Islands, where previously calls were made only during three consecutive months of the year, when weather conditions were most favorable; route 2, which provides for a regular service to ports on the east coast of Luzon; and route 8-A, for service to Palawan, where calls would otherwise be seldom made. In addition to contract service the bureau cutter Negros was operated over route F, between Cebu and Surigao, with intermediate stops at all important ports on the north coast of Mindanao and at Dumaguete, Oriental Negros, some of which ports are irregularly served by small commercial vessels running out of Cebu, but between which there is practically no connection except via Cebu, where transshipment is effected between vessels on the different runs. As the heaviest traffic is between the various Mindanao ports and Cebu, a considerable portion of which is carried by the commercial vessels, the earnings of the Negros (P9,916.65) were much less than the cost of operation (934,049.70). The seagoing launch Scout was operated between Cebu and Tacloban with trips via all important ports of southern Leyte, alternating with trips via all important ports of northern Leyte, under an agreement whereby any excess of cost of operation over receipts was paid by the provincial government. The seagoing launch Malecon was also operated from August 12 to the end of the year under a similar agreement with the subprovince of Romblon, on alternate trips from Romblon to Tablas and Romblon to Sibuyan. PORT tORK AND) LIGHT-IOUSE-CONSTRUTCTION DIVISION. Under this division, the functions of which are indicated by its name, comparatively few new projects were undertaken during the half year on account of the limited funds available therefor. All projects under way on July 1, however, were either completed or continued, while all existing improvements were maintained in as good condition as the available funds would permit. (a) Vitas jetties.-At Manila the only important new project under way at the beginning of the period was the construction of two jetties at the mouth of the Vitas Estero, in North Tondo, the object of which is to confine the waters from three esteros emptying into the bay in the immediate vicinity to one common mouth in order that the combined waters may maintain a navigable entrance chan nel without the assistance of dredges.

Page  145 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 145 A number of large concrete blocks, cast by the Spanish port works engineers for use on the Manila breakwaters, but not placed, were used on the jetties which were extended as far as the available funds (P25,000) would permit. The total length built was 310 linear meters of the south jetty and 45 linear meters of the north one. (b) Manila dredging.-No maintenance dredging was done in the Pasig River, for the reasons that the channel was in fairly good condition at the beginning of the period and it was foreseen that the reduction of funds for current port works expenses from P304,000 allotted for the previous year to P268,800 for the year July 1, 1913, to June 30, 1914, together with the addition of a large seagoing dredge to the fleet to meet the increasing necessity for redredging and enlarging the deep-water basin of the outer harbor and for maintaining the newly enlarged channel at Iloilo, would require the utmost economy if operations were to be continued throughout the year. Some dredging (54,000 cubic meters) was done in the outer harbor alongside piers 3 and 4 and in the fairway between the piers and the harbor entrance, and some 10,000 cubic meters removed from the bar at the mouth of the river during October and November by the new seagoing dredge, the limited amount being due to the necessity for sending the dredge to Iloilo at the earliest possible date, and the work done was intended chiefly as training for the crew, who had never manned a vessel of this type before. Work was continued in the esteros, however, and 83,335 cubic meters of material dredged from various channels, as follows: Vitas, 42,594; Reina, 15,112; Provisor, 2,492; San Miguel, 9,605; Bancusay, 13,360; and Pandacan, 172, practically all the excavated material being used for filling low insanitary lands in the vicinity of the work. (c) Steel piers.-The steel piers were maintained in good order as usual. Two new gangways for the use of passengers boarding and leaving vessels were built; the northern half of the wood block pavement on pier 5 was partly relaid and entirely resurfaced with hot coal tar, pitch, asphalt, and sand; one panel of reinforced concrete floor slab near the front entrance, damaged by the heavy traffic of large motor trucks, etc., was replaced; the steel floor system and shed framing were cleaned and repainted where required; 74 broken fender piles were replaced by new ones and 82 additional piles driven in clumps or dolphins alongside of pier 5 to fend off vessels 6 feet from the pier in compliance with the requirements of the bureau of health, etc. (d) Pasig River walls.-The old Pasig River and canal walls built prior to the American occupation were repaired in numerous places near the customhouse, the old office of the captain of the port, between the foot of the Malecon Drive and the canal leading to the Outer harbor, and along the canal itself, where numerous cracks and other defects had developed, and a portion of the stone paving around the office building on Engineer Island where settlement had been uneven was relaid to grade. (e) Breakwaters.-About 70 tons of stone was placed on the inner slope of the south breakwater, where a portion of the surface laver ad started to slide, but aside from this no further repairs were 8329-15 10

Page  146 146 REPORT OF THE PHILIPPINE COMMISSION. required on either breakwater, both of which are now in very good condition. (f) Mariveles Wharf.-The reconstruction in permanent materials of the quarantine-station wharf at Mariveles was started on September 15, 1913, by the Atlantic, Gulf & Pacific Co., of Manila, under contract approved June 21, and at the close of the year was approximately 75 per cent completed. (g) Cebu.-At Cebu, where the 250-meter, reinforced-concrete wharf was completed during June, 1913, the riprap dike and wall beneath the wharf for retaining the back fill was completed over a length of approximately 100 meters, and the berths in front of the wharf dredged to 28 and 30 feet at mean low water by the removal of 19,094 cubic meters of sand, mud, and small bowlders, thus making the wharf available for the largest vessels visiting the port. The embankment supporting the Arrastre tracks beyond the west end of the wall, and which had been damaged by the serious typhoon of October, 1912, was protected from a recurrence of such damage by placing some 498 tons of heavy riprap along the exposed slopes, at an approximate cost of P1,200. (h) Iloilo.-At Iloilo the redredging of the lower reach of the river, discontinued during the latter part of the fiscal year 1913 on account of the shortage of funds, was resumed on July 21 and continued throughout the remainder of the year, dredge No. I removing 205,505 cubic meters, while the seagoing dredge, which did not arrive until December 19 and began work on the 22d, removed an additional 27,000 cubic meters. The maintenance of this channel will always require periodical redredging. There is no feasible way to stop the deposition of silt constantly going on (more rapidly during the southwest monsoon than during the northeast). The construction of the proposed groin or jetty off Molo Point, if built to a sufficient length to cause the erosion of a new channel across the Oton bank, would tend to check it to a certain extent by throwing the heavily silt-laden water across the Oton bank into the deeper channel at a greater distance from the river mouth, thus allowing a portion of the silt to settle before reaching the river mouth; but this will not be sufficient to stop the silting entirely. Work on the new reinforced-concrete wharf in the upper reach of the river was begun in August and continued through the remainder of the year, with 32.3 linear meters of wharf completed, an additional 18 meters partly completed, and foundation piles driven over a total length of 120 meters at the close of the year. (z) Cagayan River.-The latter part of the calendar year being the flood season on the Cagayan River, comparatively little work was done by the snag boat in the main channel. Advantage was taken of this fact to make a number of necessary repairs to boilers and machinery, and the remainder of the time spent in dredging a canal for the use of river craft entering and leaving Aparri. (j) Lighthouse construction and repairs.-Two new minor lights were established on temporary supports, and the work of placing the existing lighthouse system upon a permanent basis was carried forward as rapidly as the available funds would permit.

Page  147 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 147 Twenty-three new structures of permanent materials, replacing temporary construction, were built, including 4 reinforced-concrete keepers' dwellings, 3 steel towers, 4 reinforced-concrete towers or beacons, and 12 minor structures, such as kitchens, cisterns, steel flagpoles, etc., all in accordance with standard plans. A new day mark was erected at the head of the Pasig River for the guidance of vessels navigating the Laguna de Bay. Repairs to roofs, ceilings, floors, windows, doors, etc., were made at 11 light stations, and 5 channel beacons rebuilt or repaired. Two projects not included in the above list were under way at the close of the year. (k) Surveys. —A complete resurvev of the Pasig River from Laguna de Bay to the Ayala Bridge at Manila, with accurate soundings, together with original surveys of the Mariquina River from Pasig to the Santolan pumping station, and of the Pateros and Taguig esteros from the Pasig River to Laguna de Bay, were made. At Zamboanga a series of borings over the proposed wharf site were being taken at the close of the year for the determination of the character of materials and foundation difficulties to be dealt with during construction. LIGHTHOUSE MAINTENANCE DIVISION. The number of lights in operation was increased by two, one on the eastern end of Malamaui Island at the entrance to Isabela Channel, a small lens lantern mounted upon a timber tower erected by a company of lumber dealers operating sawmills at Isabela, Basilan, the other a small lens lantern on the boat landing at Maasin, Leyte, while three oil-burning lights, viz, the two south breakwater lights at Manila and one at San Nicolas Shoal, Manila Bay, were changed to automatic flashing acetylene, of the American gas-accumulator system, while a sixth-order occulting light was temporarily substituted for the first-order flashing light at Cape Engafio pending the repair of typhoon damages to the lantern. The personnel, consisting of 181 keepers and assistants, 24 apprentices, and 81 boatmen, all Filipinos, was maintained at the same number throughout the period, with no serious complaints as to the services rendered. Two lighthouse tenders were operated during practically the entire period, all buoys in the southern or second district were cleaned and painted, and as a whole the lighthouse establishment was in a very satisfactory condition at the close of the year. BUREAU OF POSTS. DIRECTOR, C. M. COTTERMAN; ASSISTANT DIRECTOR, W. G. MASTERS. Officers and employees of the bureau at the close of the fiscal year 1913. iector ---------- ______________.. — --— __________________________________ — 1 Asistant directorae. ___ 1 SulerintendeDts and other officials....... —_ 9 District inspectors ----_ - ---------------------- 6 ostmlasters --- —--------—. — ---- - 660

Page  148 148 REPORT OF THE PHILIPPINE COMMISSION. Clerks ---... -.. — -..... —. —.. --- -- ----------- 243 Messengers and porters ----------—. --- —-------------------- 173 Railway postal clerks — ___._ —. _ __ --- —----------- __ 13 Letter carriers --— ____ -—. --- —----—. --- —-------------------------- 78 Telegraph operators_ --- —-_ --- —-. ------------------------- 276 Linemen_- _ —__ __ ____.-.. ---.____ --- —— ____ --- —----- 312 Mechanics and enginemen__ ----------—._ ----—. ---- _ 21 Drivers and teamsters_ --------------------------- 13 Mail carriers and contractors -- ------------- -------- 318 Total_-____________ --- —---------— _ _ 2,624 CHANGES IN PERSONNEL. Number appointments: Classified service —__ —_________ — _ ---_____ ---- 21 Unclassified service -_____ _______ --- —------— __ 496 Number reinstatements______ ---- -— _ _ --- —----- 2 Number removals: Classified service-___ _____ _ --- —------------- 2 Unclassified service_ _ __ ______ —........... _ ---- 76 Number resignations, voluntary: Classified service --------— ___ — ______ --- —— _ 17 Unclassified service -------— ____ __ --- —-- 335 Number transfers to bureau_- ---— __ ---__ — _ --- —__ — 3 Number deaths _____ --- —--------— _____ --- —-- 4 The following statement of the number of American and Filipino officers and employees, exclusive of mail carriers and contractors, at the close of each of the last 10 fiscal years and the six months ending December 31, 1913, is submitted to show the increase in the relative number of Filipinos employed: Ameri- Fili- Total. cans. pinos. June 30,1904..................... Junm 30,1905................................................................... June 30, 190......................................... June 30, 1907.......................... June 30,190.............................. June 30,1909.......................'- -—...... June 30, 1910.................................'........................ June 30,1911.............................. June 30, 1912........................ '..................................... June 30, 1913........................................................ Dec. 31,1913....................................... 197 380 156 456 223 780 210 881 237 1,128 201 1,166 191 1,380 194 1,704 190 1,858 179 2,047 178 2,128 577 612 1,003 1,091 1,365 1,367 1,571 1,898 2,048 2,226 2,306 The number of post offices, money order, savings bank, and telegraph offices, and municipalities with free-delivery service at the close of the year is shown in the following statement: Dates. Post offices. Moneyorder offices. Savings bank offices. Dec. 31, 1913.........661 66une 30,1913............. Increas e..........._.................. " Municipalities with Telegraph freeo-.ces. delivery service. 293 452 290 440. 1 3 12 285 275 10 437 437 0

Page  149 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 149 POSTAL DIVISION. Free-delivery letter-carrier service was established in 9 municipalities, making a total of 448 municipalities outside of Manila in which this service was in operation on December 31, 1913. The cost of this service outside of Manila was P45,519.99, an increase of i33,484.39 over an equal period of the preceding year. The letter carriers in the city of Manila delivered 1,326,213 pieces of mail, an increase of more than 1.3 per cent over the last year, and collected 1,036,237 pieces from street letter boxes, a decrease of about 9 per cent. The number of articles bearing special-delivery stamps and delivered by special messengers in Manila amounted to 8,997. The mail advertised in Manila amounted to 14,925 pieces, of which 1,473 were subsequently delivered, the balance being turned into the dead-letter office for disposition. The collect-on-delivery service, established January 1, 1913, which provides a means to meet the requirements of persons who wish to pay at the time of their receipt for articles sent to them through the mails and also meet the requirements of merchants and others who wish to recover, through the agency of the post office, the charges on articles supplied by them, is growing in favor. During the last six months of this service, 2,489 such packages, involving collections amounting to p23,251.57, were handled. SECOND-CLASS PUBLICATIONS. On July 1, 1913, 69 publications printed in the islands were listed as second-class matter, and 7 news dealers held permits to mail publications at the second-class rate of postage. During the 6 months 9 new publications and 1 news dealer were admitted, and 3 publications and 2 news dealers were discontinued. On December 31, 1913, there were 75 second-class publications and 6 registered news dealers. Statement of second-class postage paid during the fiscal year 1913 and the six months ended December 31, 1913: Fiscal year 1913 ----— 1 --- —-_ ---- 5,998.79 Six months ended Dec. 31, 1913 ----_ — ------— ___- — _ — 9,011.82 The following is a summary of the registered mail handled: Fiscal year Six months Fisca y ended D ec. 191 31, 1913. Pieces of mail registered at Philippine offices.................................... 617,876 327,595 Pieces received from United States.......................................... 51,031 17,281 Pieces received from foreign countries........................................... 72, 425 42,177 Pieces sent to United States.................................................... 72,722 40, 660 'ieces sent to foreign countries............................................. 47,143 28,024 Pieces sent from one Philippine office to another Philippine office............... 498, 011 258,911 Pieces handled by the Manila post office......................................... 650, 805 305,181

Page  150 150 REPORT OF THE PHILIPPINE COMMISSION. The exchange of mails with the United States and foreign countries is summarized as follows: Fiscal year Six montbs 1913. ended Dec. 31,1913. Number of mails dispa' ched from the United States and received at Manila.... 96 5 Number of pouches of letters received from the United States.)............ 973 509 Number of pouches of registers received from the United States................ 3,597 673 Number of sacks of papers and merchandise received from the United States.... 21,361 12, 57 Number of mails sent to the United States.............................. 112 50 Number of mails therein............................................. 73 37 Number of pouches of letters sent to the United States.......................... 973 447 Number of pouches and sacks of rezisters sent to the United States.............. 2,722 8 1,312 Number of sacks of papers and merchandise sent to the United States......... 2,945 1,379 Number of bags sent to United Statesships and troops in foreign countries...... 1,250 4390 Number of ba ~s received from United States ships and troops in foreign countries. 621 313 Number of mails received from foreign countries........................ 644 343 Number of bazs received from foreign countries................................. 9,636 4,790 Number of mails sent to foreign countries...................................... 623 315 Number of bags sent to foreign countries....................................... 4, 525 2,18 Net weight of letters, grams, sent to foreign countries........................... 9,203,189 5,341 746 Net weight, grams, of other articles sent..2.........4.................... 26,966,583 14,238 400 Number of parcel-post packages sent to foreign countries........................ 3,381 6 2,044 Number of parcel-post packages received from foreign countries................. 6,895 7 3,981 1 Including 72 sacks and 158 cases. 5 Including 126 from Honolulu and 68 from Guam. 2 Including 7 cases. 6 Including 845 registered parcels. 8 Including 1,037 sacks and 1 case. 7 Including 364 registered parcels. 4 Including 138 to Honolulu and 8 to Guam. The following is a summary of articles received and disposed of in the dead letter office: Registered Ordinary Ordinary Tol. articles. letters packages. ota ARTICLES RECEIVED. FromUnited States.................................. 5 1,985 68 2,058 Foreign countries............................10 1,083 13,19 Manila post office and other Philippine sources..... 195 28309 2096 3000 Returned after attempt to find senders..........................1, 621 1,621 I......._,2 DISPOSITION MADE. Returned to United States.................... Returned to foreign countries........................ Request matter, returned to senders in the Philippines... Opened and returned to senders........................ Containing money, drafts, stamps, etc., returned to senders............................................ Containing other valuable matter, returned to senders... Destroyed.............................................. Containing money, drafts, stamps, etc., filed............. Containing other valuable matter, filed.................. trr+CI*'n Q4.n~n11~.~C~ n - 210 32, 998 2,267 35,475........... 3,689 540 4,229........... 2,548 747 3,295 37 1,172 75 1,284............ 14,095 37 14,132...~..-...66.......... 66............ 13 14 8 11,391 814 12,213........... 27.........27 165 9 41 215 _WVU1.23,8634 % v t * uu"* t1V l ux....-.-.-.........................210 32,998 2,267 35,475 At the close of the year there were on file in the dead-letter office 367 registered articles and 39 letters containing money, drafts, or stamps and 1,166 letters and packages containing other valuables. During the year money to the amount of 198 was taken from letters which had been on file more than one year and turned into postal revenues as miscellaneous receipts.

Page  151 REPORT OF THE SECRETARY OF COMMERCE AND POLICE, 151 The following is a comparative statement of the money-order business for the fiscal year 1913 and the six months ending December 31, 1913: Number of orders issued payable in the Philippines................ Amount of same..................................... Fees on same...................................................... Number of Philippine orders paid and repaid here.................. Amount of same................................................... Deposits of money-order funds received at Manila from provincial offices............................................................ Number of orders issued payable in the United States and possessions.............................................................. Amount of same.................................................... Fees on same....................................................... Number of orders issued for payment in other countries............. Amount of same.................................................. Fees on same........................................................ Number of orders of the United States and other countries paid in the Philippine Islands............................................ Amount of same.................................................... Amount of Philippine orders paid in the United States and other countries......................................................... Fiscal year 1913. Six months ended Dec. 31, 1913. 200,653 PO12,848,999.08 P59,891.46 197,838 O12,857,359.26 P-10,067,750.52 68,157 P-3,556,645.40 P131,315.60 2,962 P137.560.24 O1,599.88 10.236 P-519,118.14 P3,265,816.68 153,282 P8,552,365.08 P49.298.48 116,771 P6,738,374.22 P5,206,580.34 34,856 P1,764,600.76 P15,586.00 1,354 P56. 381.28 T687.20 5,190 26i3,170.72 Pl1,936,226.96 TELEGRAPH DIVISION. The following is a summary of the telegraph business: Fiscal year 1913. July 1 to Dec. 31, 1913. Telegrams sent. Number. Value. Number. Value. Insular, provincial, and municipal, official............. 149,524 P.141,500.28 47,419 P45.938.58 Weather bureau......................... 51,398 45,173.12 17,335 29,893.78 Federal Government, official........................ 9,087 12,205.64 4,550 7,722.76 Commercial........................................ 528,696 412,035.86 25, 199 225,660. 28 Total............................... 738, 705 610,914.40 325,503 309,215.40 The changes in the telegraph service are summarized as follows: Fiscal year Fiscal year 1912. 1913. July I to Dec. 31, 1913. Telegraph lines built........................ kilometers.. Telegraph lines rebuilt '........................ do.... Telephone lines converted to telegraph.................do.... Destroyed by typhoons............................ do.... Shortened in rebuilding.............do.... Telegraph land lines abandoned......................do.... Telegraph cables laid...................... do.... Telegraph cables recovered...................... do.... Telegraph wires at close of year.......................do.... Telegraph cables at close of year....................... do.... Telegraph offices opened....................... number.. Telegraph offices closed...............................do.... Telegraph offices at close of year........................do.... 374.2 162.8 24.1.............. 199.753 321.167 7, 277.90 1,732.940 37 8 270 109.48 890.56 62.10 11.27 26.36........... 162.621 7,431.85 1,895.561 23 290 290 43.4 25.1.............. 23.4 7,450.16 1,872.161 7 3 293

Page  152 152 REPORT OF THE PHILIPPINE COMMISSION. POSTAL SAVINGS BANK DIVISION. Summary of the Postal Savings Bank Service. Fiscal year Fiscal year F ca l yea r 1911. 1912. 1913. 1913. Number of bank offices at close of year: First class...................26 39 39 40 Second class................. 270 267 269 268 Third class................... 118 131 129 129 Total............................ 414 437 437 437 Number of new accounts opened during the year...........................19,285 12,442 9,854 5,390 Number of accounts closed during the year................................. 3,583 5,444 5,747 3,028 Number of accounts open at close of the year.......................... 2 804 35, 802 39,909 42,271 Increase over prior year................ 15,702 6,998 4,107 2,362 Average amount of each open account at close of year.................. 72. 89 P66. 73 P62.15 P66.76 Number of deposits during the year.... 63613 61,641 56,387 33,651 Average amount of deposits........... r44.30 '50. 39 P52. 49 P49.35 Total deposits made by depositors...... 2,818,161.95 P3,106,419.23 P2,959,875.80 P1, 638, 739. 30 Annual accrued interest placed to credit of depositors June 30................. 27,993.51 34,116. 81 P37,244. 45 P22,100.83 Number of withdrawals during the year. 22,004 29,064 32,075 17, 255 Average amount of withdrawals........ P110. 25 P96. 92 P90. 58 P76.45 Total amount of withdrawals.......... P2,425,927. 32 2,816,907.30 P2,905,624.30 P1,319,189.73 Savings bank stamps sold.............. 31,963. 65 P22,444.35 P16,934.60 311, 532.20 Savings bank stamps redeemed........ 27, 596. 00 P21,346.00 17, 161.00 P11, 151.00 Savings bank stamps outstanding...... 6,359. 05 P7, 457. 40 T7,231.00 P7, 618. 20 Classification of depositors. New Accounts Open accouts closed Open accounts opened from July accounts June 30, f irom uly 1 Dec. 31, 1913. 1 1913 to Dec. 31,, 9.1913.. _.Dec. 31, 1913. 1913. 1913. As to nationality: Am ericans....................................... Filipinos...................................... Europeans...................................... Asiatcs............................................ Societies..................................... As to occupation: Professional..................................... Clerical..................................... Students........................................... Mercantile.................................. Agricultural....................................... Artisans.......................................... Domestics......................................... Laborers........................................ Soldiers and sailors............................... Policemen and firemen........................... Women, no occupation............................. Children........................................... Miscellaneous, unclassified........................ As to sex: Male............................................ Female.............................................. As to marriage relation: M arried.......................................... Unmarried..........-........................ Un. ia, Z R.. _..'' --- ~ — 5,221 32,906 1,036 684 60 4,435 4,293 16,298 1,622 1,673 2,338 1,410 2,377 2,554 614 957 1,056 222 30,951 8,898 9,600 30,249 972 4,148 167 99 4 518 702 1,597 261 220 384 309 367 606 105 153 154 10 4,210 1,176 1,558 3,828 949 1,892 100 79 8 355 307 1,052 114 94 150 86 148 513 37 100 51 13 2,380 640 672 2,348 5,246 38,162 1,103 704 56 4.598 4,688 16,843 1.769 1, 99 2, 72 1,633 2, 596 2,647 682 1,010 1,159 219 32,781 9,434 10 4861 31, 29

Page  153 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 153 Statement of expenditures and income of the Postal Savings Bank. Fiscal year Fiscal year 1911. 1912. EXPENDITURES. Salaries and wages..................... Expenses personnel..................... Office expenses............................... Rentals........................................ Incidental expenses............................ Total operating expenses................. Interest paid on closed accounts................ Premiums paid on bonds purchased............ Accrued interest paid on bonds purchased...... British income tax paid on Manila R. R. Co. bonds........................................ Interest added to accounts at close of year as deposits..................................... Total................................. INCOME. Earnings for year collected during year........ Accrued earnings uncollected at close of year account not due............................... Total.............................. Net deficiency.......................... P?63, 201.90 233.78 11,781.72 2,457.71 1,286.21 Fiscal year 1913. P67, 581.51 265.44 12,927.35 2,753.90 781.29 From July 1 to Dee. 31, 1913. -66, 078.27 218.36 11,270.81 2,720.72 1,235.55 t-40,078.82 160.93 5,929.13 1,443.49 411.56 78,961.32 81.523.71 84,309.49 48,023.93 5,815.03 7,528.23 6,869.49 1,869.65 2,000.00...................................... 4,911.11......................................................... 449.02.............. 27,993.51 34,116.81 37,244.45 22,100.83 119,680.97 123,168.75 128,872.45 71,994.41 51,582.44 90,626.20 88,151.31 10,653.95 39,577.10 25,569.53 35,237.92 55,914.61 91,159.54 116,195.73 123,389.23 66.5 8.56 28,521.43 6,973.02 5,483.22 5,425.85 Investments of bank funds at close of year. June 30, June 30, June 30, July 1 to Dee. 1911. 1912. 1913. 31, 1913. LOANS TO BANKS. International Banking Corporation, at 3* per cent.......................................... 70, 000. 00 9P70,000. 00 P?70.000.00 9P70,000.00 Bongkong & Shanghai Banking Corporation, at 3- per cent.............................. 70,000.00 70,000.00 170,000.00 170,000.00 Chartered Bank of India, Australia & China, at I3 per cent................................... 240,000.00 420,000.00 340,000.00 490,000.00 BONDS. Philippine Ry. Co. bonds, at 4 per cent.... 50, 00. 505,000.00 505,000.00 505,000.00 Manila R. R. Co. bonds, at 4 per cent.......... 323,875.50 323.875.50 323,875.50 323,875.50 City of Manila bonds. at 4 per cent............ 4t0, 000. 00 4 60,000.00 460,000.00 4t0,000.00 Real estate mortgages, 8 per cent and 10 per cent. 407,800.00 509.680.00 623,798.50 751,380.00 Total.................................. 2,076,675.50 2,358,555.50 2,492,674.00 2,770,255.50 Assets and liabilities of the bank. June 30, June tO, June 30, July 1 to Dec. 1911. 1912. 1913. 31, 1913. ASSETS. Loans to banks................................ Bonds.............................. Bonds........ Real estate mortgages.......................... Itterest account........................ Cash il hands of postmasters................... Total.................................... LIABILITIES. I)ePlo:it fund. due depositors................... a1tln fund, stamps outstanding.............. Insulur treasurer, cash advanced from general fluids to pay expense........................ Total.................................... 9380,000.00 1,288,875.50 407,800.00 39,577.10 36,976.02 P560,000. 00 1,288,875.50 509, 80.00 25,569.53 53,283.58 P9580,000.00 1,288,875.50 623,798.50 35,237.92 27,422.96 9730, 000.00 1,288,875.50 751,380.00 55,914.61 33,104.22 2,153,228.62 2,437,408.61 2,555,334.88 2,859,274.33 2,099,474 49 2,388,986.42 2,480,482.37 2,822,132.77 6,359.05 7.457.40 7,231.00 7,618.20 47,395.08 40,964.79 67,621.51 29,523.36 2,153,228.6 8 1 2,1,53,228.62 j 2,437,408.61 1 2,,555,334-88 2,859,274.33

Page  154 154 REPORT OF THE PHILIPPINE COMMISSION. Revenues exclusive of the Postal Savings Bank. Fiscal year July 1 to Dec. 1913. 31, 1913. BY ITEMS. Stamp sales for postage............................................ 9 311,165.96 Stamp sales fir registry fees.......................................86016 52,415.20 Stamp sales for commissions on C. O. D. parcels........................... 336.80 560.52 Miscellaneous postage paid in cash....................................... -. 5,269.96 2, 46. 98 Secon i-class postage................................................- 15, 998.79 9,011. 82 Box rents............................................................. 29,544.90 14,668.55 Unclaimed matter and sale of waste paper........................ 106. 85 684. 20 Money-order fees........................................................... 92,498. 53 47,51202 Stamp sales for telegrams 3....................................... 553,394.53 301,210.38 Telegrams paid in cash................................................... 12, 37. 25 8,005. 02 Miscelaneous (telegraph division).....:....................-....... 867.81 56. 30 Total receipts from all divisions................................... 1,420,993.17 747,746.95 BY DIVISIONS. Postal division.............................................................. 761,885.03 390,963.23 Money-order division........................................................ 92,498. 53 47,512.02 Telegraph division...................................................... 566,609.59 309,271.70 Total.............................................. 1,420,993.17 747,746.95 The foregoing statement shows gains of 2.06 per cent in the postal division, 2.07 per cent in the money-order division, and 9 per cent in the telegraph division. The total revenues are 5.3 per cent greater for the period from July 1 to December 31, 1913, than they were for an equal period in the preceding fiscal year, while the cost of operation and maintenance was increased 10.23 per cent The following is the revenue account, bureau of posts, for the fiscal year 1913 and the six months ending December 31, 1913: Six months Fiscal year ended Dec. 1913. 31, 1913. Stamp sales......................................................... 1,263-663.35 1665,352.06 Second-class postage......................................... 16,694. 52 9,011.82 Box rents................................................................... 29,544.90 14,668.55 Money-order fees........................................................... 92, 498.53 47,512.02 Unclaimed matter, etc..............................................106. 85 408. 80 Receipts from operation.................................................. 13,485. 02 10,793. 70 Total................................................................. 1,415,993.17 747,746.95 Receipts from operation: Telegram...................................................... 12,347. 25 7,727.02 Miscellaneous........................................................ 6,137.77 3,066.68 Total........................................... 18,485.02 10, 793.70 Reduction of income............................ 5 0 Total..............*............................13,485.02....... Miscellaneous receipts from operation: Postal and telegraph, postal savings bank......................46996 2734.98 Fines..6 275.4098 Fines.......................,....... '. Percentage on sales........................ 0........................' -- 50 Sales of suoplies not carried in the assets of the bureau of posts........ 445 16.11 5. Inci lentals......... 44 548......... 0. Inc lentalo.................................................... 96. 22,0 Total......................................... 6,137. 77 3,066.68 I

Page  155 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 155 Co, parative statement of expenditures for fiscal year 1913 and six months ending Dec. 31, 1913. Accounts as classified by the insular auditor. Fiscal year 1913. (B) Plant and equipment: (1) Permanent buildings and structures................................ (6) Construction of telegraph lines..................................... (8) Land transportation equipment.................................... (10) Stationery machinery....................................... (11) Portable machinery, tools, etc...................................... (12) Furniture and fixtures........................................ (13) Miscellaneous equipment...................................... Total............................................................ (D) Salaries and wages.......................................... (E) Office expenses: (1) Expenses of personnel............................................... (2) Transportation..................................................... (3) General olfice expenses...................................... (4) Rentals............................................................. (5) Special service....................................................... (6) Incidental general expenses....................................... Total............................................................ (F) Maintenance: (1) Buildings and structures....................................... (6) Telegraph and telephone lines...................................... (8) Land transportation equipment.................................... (10) Stationary machinery..................................... (11) Portable machinery, tools, etc-..................................... (12) Furniture and fixtures....................................... (13) Miscellaneous equipment....................................... Total........................... (C) Supplies on hand....................................................... (I) Prior year's expenses: (D) Accrued leaves and half salaries............................... (E) Traveling expenses of appointees from United States............... Total............................................................ P30,154.25 30,107.54 42,783.56 (4,100.00) 4,007.56 58, 719.64 45.48 Six months ended Dec. 31, 1913. P-3,028.09 11,705.30 (973.23) (2,306.00) (128.51) 7,670.39 (11.38) 161,718.03 18,984.66 967,852.26 525,255.92 20,814.01 10,562.92 314,470.72 180,733.02 71,601.45 34,267.96 26, 128.12 13,312.59 170.47 101.49 13,431.39 2,335.36 446,616.16 241,313.34 12,009.47 2,629.63 433,821.25 163,022.23 4,206.02 4,689.97 203.39.............. 243.38 775.32 4,553.11 8,459.73 1.62 42.94 455,038.24 179,619.82 86,912.27 46,956.72.............. 56,196.38.............. 3,017.83................59,214.21 I Total expenses of bureau................................ 1,944,312.42 1,071,344.67 Summary of accounts, bureau of posts, for the six months ending Dec. 31, 1913. DEBIT. To allotment of the Governor General for current expenses _ --- —---- ----- To Act No. 2191, for the construction and maintenalnce of wireless telegraph stations ------- ---------- To receipts from operation from July 1 to Dec. 31, 1913: Stamp sales for postage_ -____ --- —--— _ 364,141.68 Secoud-class postage_ —9 — --- --- 9,011.82 Box rents ---- _ _____ --- —------------ 14, 668. 55 Money-order fees-__ --- —------------ 47, 512. 02 Unclamlled matter, etc__ --- —---------- 684. 20 Miscellaneous postage paid in cash --- —-2, 2,456. 98 Telegraph revenues --------------------- 309, 271. 70 To amount brought forward from fiscal year 1913, for contingent obligations_ --- —--------------------- P540, 000. 00 57,000.00 747,746. 95 145,691.94 1,490,438. 89 Total -

Page  156 156 REPORT OF THE PHILIPPINE COMMISSION. CREDIT. Total expenditures ---- -. --- —--------- P1, $71, 344. 67 Contingent obligations --- —---- 111, 057. 65 Contingent obligations (Act No. 2191) ----------------- 52, 905. )) Unexpended balance (surplus) --- —_ --- —-------- 253,130. 5S Total - -------------------------- 1,490,438.89 Statement of assets and liabilities, Dec. 31, 1913. ASSETS. Permanent improvements, plant and equipment: Buildings and structures_ ----------- P37, 350. 96 Telegraph and cable lines --- —------- 1, 568, 792.29 Land transportation equipment --- —-- 66, 172. 30 Portable machinery, tools, etc_ --- —--- 22. 352. 39 Furniture and fixtures --- —----------- 327,919.06 Miscellaneous equipment --- —------- 675. 57 P2, 023, 262. 57 Supplies on hand ---- __, --- —- ____ ---- -- -- 176,694. 78 Accounts receivable --- —------------------- 3, 308. 35 Cash: Insular treasury- __ --- —- ------- 140,112. 61 In hands of postmasters — __ --- —-- --- 64, 836.46 In hands of others officers ----------- 8,101. 34 213,050.41 Total -— __ --- —-___ --- —--- ---------- 2, 416, 316.11 LIABILITIES. Accounts payable __-_____ --- —--------- 105, 301.11 Contingent obligations. --- ____ --- —— ___ 111,057.65 216, 358. 7i) Net worth, Dec. 31, 1913 --- —-— ___,__ --- —--— ______ 2, 199, 957.35 Total - ____________ ---- _____________ ___ 2, 416, 316.11 BURIEAU OF COAST AND GEODETIC SURVEY. P. A. mWEL.KER, DIRECTOR, JULY 1 TO DECEMBER 31, 1913. The work of the coast and geodetic survey in the Philippine Islands was carried on under the same general plan as has applied since January, 1902, providing for the division of expenses between the Government of the United States and the government of the Philippine Islands. Except during intervals when repairs were necessary, the parties attached to the five steamers, namely-Pathfinder, Fathomer. Rrombion, Marinduque, and Research-available for duty, were continuously engaged in surveying. Personnel, Dec. 31, 1913. OFFICE FORCE. Director ------- 1 Computing division-_ __ -"~_ --- Drawing division_ ---- -__ 2. Nautical division-_ ----- Geographical division- —......."__'"__ 5 Corresponding, accounting, and property divisionZLI"~-____ ~ ~~ --- Z --- —- Total --- --- _ 48 _ _ _ _ _ _ _..... _ _................

Page  157 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 157 FIELD FORCE. Assistants and aids (normal force)_____ ______ --- —-------- - 17 Watch officers, surgeons, engineers, and mates-___~_ --- —--------- 15 Recorders ---------------- 10 Petty officers, seamen, and firemen_ —.__ ----___- --- __-_._ —_._-_ 181 Tide observers, laundrymen, and messmen — _ —____ --- — --- --— _ 41 Total - 264 Officers and employees of the bureau at the close of the year. Americans, Filipinos, Total, Total, 1913. 1913. 1913. 1912. Director...-..............1................................ 1 1 Accountant.-1 - 1........................................ 1 1 Draftsmen-cartographer......................................... 2 2 Clerks.......................................................... 1 2 3 3 Junior draftsmen...............................................21 21 Messenger............................................................1 1 1 CHANGE IN PERSONNEL. Appointments: Classified service............................................ 3 3 Unclassified service.....-...-.............................. 1..... Reinstatem ents......................................................... 1 Removals: Classified service.......................................................... Unclassified service......................................................... Resignations, voluntary: Classified service....................................-.. 1 Unclassified service..................... 1.............................. Resignations due to economy: Classified service.-................-...-...... -.-...... -......................................-...-. Unlassified service..................................................... Unclassified service........................................ Transfers: To bureau.................................................................... 1 From bureau........................................ 1..................... Deaths................................................................................ Statement of number of American and Filipino offcers and employees at the time of rendering reports submitted to show relative numbers of Americans and Filipinos employed. Dates. Americans. Filipinos. Total. Salary expenditures. June 30, 1905..... June 30, 1906..................... June 30, 1907............................................... June 30, 108s June 30, 1909............................................. June 30, 19109........................................... June 3oi 19i0.........................................,rune 30, 1912......................................... JUne 30, 1912............................................... --- —------- Jne 30, 1913 )ec. 31,1913.................................... Six months. 3 3 3 5 5 4 3 4 4 4 19 19 21 22 22 24 25 23 25 25 22 22 24 27 27 28 28 27 29 29?'25,840.00 25,849.00 26,360.00 34,960.00 35,596.00 34,864.00 33,304.00 36,404.00 37.504. 00 1 18,852.00 The above statement does not include the director of coast surveys. who is an officer of the United States Coast and Geodetic Survey, nor per diems paid by the government of the Philippine Islands to he officer detailed to said position by the Superintendent of the inited States Coast and Geodetic Survey.

Page  158 158 REPORT OF THE PHILIPPINE COMMISSION. TIDAL OBSERVATION S. Under the direction of the commanding officers of the vessels long series of automatic tide-gauge observations were obtained at varioius places throughout the islands. These are referred to in detail in the individual reports of these officers. Two gauges were loaned to the bureau of lands for aperiod of about three months in exchange for the results of the tidal observations which an observer detailed from that bureau obtained with the same in the vicinity of the mouth of the Cotabato River, Mindanao. The automatic gauge at Manila was in constant operation during the entire year. The results of these observations prove to be of great value for use in the establishment of reference planes for. surveys and in the preparation of tideprediction tables for the use of the navigator. TABLE OF DISTAN CES. The annual revision of table of distances between ports of the Philippine Islands for the use of the board of rate, regulations has been in progress during the period of this report. This work is referred to more in detail in the report relating to the drafting division of the Manila office. GEOGRAPHIC NAMES. Great progress has been made in this list of names. Approximately 100,000 names have been obtained, with the prospect of having them assembled in alphabetical form for publication in the near future. This matter is referred to more in detail under the part of this report relating to the drafting and geographic divisions. FISHING BOUNDARIES. During the month of September of this year the dispute in relation to the rights for fishing within certain boundaries of Manila Bay was referred to this bureau by the secretary of commerce and police of the government of the Philippine Islands. The legal points involved were thoroughly investigated and the delimitations of the boundaries, indicating the rights in accordance with the best information available, was represented upon maps and transmitted to the secretary. This subject is further referred to in the report of the chief of the geographical division. The following is a list of publications issued from the division during the period covered by this report: Charts: Agents.- --... 6 Military authorities-_~__ __ ___ -------------- 2 Naval authorities ---------------------— " --- —---------------.1 Naval authorities~~2.35 Civil authorities — -. ---... ~~~..~... ---------- 2 United States Coast and Geodetic Survey, vessels ----------------- 5.) United States Coast and Geodetic Survey, suboffice___ Miscellaneous parties 77 Sold for cash —_ _____ --- —-------- -------- -- 741 Total2,.s_. ______. ---...... --- —---. --- —------------— i ---. --- —- 2,

Page  159 REPORT OF THE SECRETARY OF COMMERCE AND POIICE. 159 Tide Tables: Issued for official use --— _ — ---— ___ --- —_ — __ --- - --- 58 Agents --- — -------------- ------------ 18 Sold for cash-_ ---- ------- ---- 34 Total --- —-------------------- 110 Nautical Almanacs: Sold for cash__ --- —— _ --- —--— _ --- — 86 Miscellaneous: Sailing direction issued_ —__ — ___ --- —__ — ---- - 562 Catalogues issued_ --- —---------------------- 74 Notices to mariners issued_ _______ --- —-— __ -— __ _ 500 New charts published: No. 4410. Tablas Island and vicinity. No. 4432. Southwestern Negros. No. 4273. Silangan Pass and Hondagua harbor. No. 4638. Anchorages on Dinagat, Siargao, and Bucas Islands. COMPILATION OF GAZETEER OF PHILIPPINE GEOGRAPHIC NAMES. The compilation of complete lists of geographic names to be published, as described in a special report on this subject dated June 30, 1913, has progressed steadily. On that date it was reported that 34,500 names of barrios. and sitios had been received; 29,500 of these had been arranged alphabetically and copied into record books. It was subsequently found necessary to return about 40 per cent of these for correction, rearrangement, and additional information. On December 31, 1913, the total number received amounted to 91,500 names of barrios and sitios. It is now estimated that the list of barrios and sitios will contain when completed about 100,000 names and that the general alphabetical list will contain about 120,000 names. The number of miles of detailed or actual shore line surveyed during the past 9' years is as follows: Miles. Miles. 1905-_____ --- —--------- 494 1910 --- —------------- 1, 637 1906-______ --- —--------- 626 1911 --- —---------------- 1, 229 1907 --- —_____________ ---- 1,495 1912 --------------- 1, 316 1908 ______________ ---__ -—, 573 1913 --- —--— __ --- —- 945 1909-_______ __________ 1,017 1914 (half year) ---- ------- 610 The number of miles of general coast line surveyed, as measured on charts by using 3-mile spaces of dividers, is as follows: Miles. Miles. 1905_______________________ 257 1910-_ --- —-----— _ — --- 1,190 1906 __ __________ --- 443 1911__ --- —--- 542 1907-____ ______ --- —---- 375 1912 -------------------- 748 1908__ —__ ____________ 964 1913 --- —--------------- 605 1909_______________ - ---- 760 1914 (half year) --- —------- 284 The number of miles of sounding lines run during the same period is as follows: Miles. Miles. S1905- ------- - 7,573 1910 --- —------------- 19, 208 1906- ----- - 11, 457 1911 -------------------- 23, 432 1907 -__-._____ --- —---- 23, 339 1912_ _- _ --- —--------- 25, 297 o90 --- —------ 24,454 1913 --- —--------- 22,288 -0) __..._ ----_ 22,552 1914 (half yeac) -------- - 15,739

Page  160 160 REPORT OF THE PHILIPPINE COMMISSION. WORK OF VESSELS. Pathfinder.-This vessel was engaged in general surveys consisting of triangulation, topography, and hydrography on the east coast of the island of Mindanao until October 10, and data were secured for the preparation of charts for this region, which was almost unknown previously. On October 22 the vessel proceeded to Olongapo for the installation of wireless-telegraph apparatus and repairs. While the vessel was laid up for repairs a survey of the approaches to Manila, between Subic Bay and Fortune Island, was begun and continued until the end of the year. Fathomer.-A secondary scheme of triangulation was carried over Busuanga Island and the small adjacent islands to the north of it. Topographic surveys were executed on the south and east shores of Busuanga and on the east and west shores of Coron Island and in the Cuyos. Owing to the extensive area assigned to this steamer for the purpose of execution of hydrographic surveys, the locality of the work was frequently changed in order to take advantage of the most favorable weather conditions. Between Mindoro and Busuanga, Framjee bank and Magallanes bank remain to be developed for shoals. Very few of the shoals in this region have ever been charted, and there are indications of dangers to navigation. It was necessary to space soundings in depth from 150 to 300 fathoms as close as 6 to 10 in 5 miles. This irregularity extends over an area of approximately 900 square miles. The submarine sentry was in use during the entire time while engaged in soundings in localities where there were indications of shoals and proved very valuable. Fifteen stations for observing direction and strength of current were occupied in the northern part of the Sulu Sea and in the southern part of Mindoro Strait. Five stations were occupied for the determination of the declination of the magnetic needle. Romrblon.-This steamer engaged in the hauling of material and in the erection of a wharf at Port Uson, which place was to be used to obtain supplies and water. The wharf is 324 feet long and 18 feet wide, except the outer 24 feet, which is 16 feet wide. A concrete dam was built at the source of water supply and a pipe laid to the wharf, a distance of about 600 feet. A considerable amount of tertiary triangulation was executed during the period of this report, the work extending from Taytay Bay, on the east coast of Palawan, to the northern part of that island. The topographic work executed consisted of the mapping of the shores of the south coast of Batas Island, the north and west coasts of Maitiaguit Island, the shore of Sharks Fin Bay on Palawan Island, the west coast of Malabuctun Island, the western of the two bays on the north coast of Linapacan Island, the north coast of Gatoc Island, all of Popototan Island, and a number of unnamed smaller islands. Launch and boat hydrography was executed in Sharks Fin Bay and in the region between Maitiaguit and Batas Islands, on the coast of Linapacan Island, and the north coast of Culion. The entire region about the Calamianes and the island of Palawan is

Page  161 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 161 filled with shoals and dangers to navigation, and hydrography requiring very close development is necessary. An automatic tide gauge was installed south of Batas Island, where observations were obtained during the year. Maarinduque.-Field work was done by this steamer on the east coast of Palawan, and topographic and hydrographic surveys were made. During the months of July and August the progress of the work was considerably delayed by stormy weather, and the work was transferred to the southern side of Dumaran Island. An automatic tide gauge was operated at Araceli. Research.-This steamer was engaged in surveys of the northern part of Samar Sea. in the vicinity of San Bernardino Strait, and between the islands of Samar and Masbate. A topographic survey of Destacado Island and the entire Naranjos group was finished, and also the east coast of Masbate and Port Cataingan to Black Rock Pass. The hydrographic work covered approximately that part of the Samar Sea lying between Dumurug Point, on the east coast of Masbate, and the outlying islands Tagapula and Capul and the southern part of Ticao Island. Strong tidal currents prevailed in San Bernardino Strait. An automatic tide gauge was in operation at Mauo River and also at Naro Bay. The steamer investigated the report of an uncharted shoal at Port Laguimanoc. BUREAU OF LABOR. DIRECTOR OF LABOR, MANUEL TINIO; ASSISTANT DIRECTOR OF LABOR, BERNARDINO G. MONREAL; JULY 1, 1913-DECEMBER 31, 1913. Officers and employees of the bureau at the close of the year. Americans, Filipinos, Total, Total, 1914. 1914. 1914. 1913. birectors.............................................. 1 Assistant directors............ -.................. 1 1 Chief clerk..........................1.......... I 1 1 Chiefs of division........................................ 1 1 Clerks............................................... 20 20 19 Messengers......................................... 5 5 5 Chauffeurs............................................................. CHANGES IN PERSONNEL. Appointments: Classified service........................1.... 1.......... Unclassified service.................................. 11 11 13 Reinstatements...................................................... IRemovals: Classified service...........-....................................... Unclassified service.............................................. 3 Resignations (voluntary): Classified service............................................. 2 2 1 Unclassified service..................................... 7 8 Resignations due to economy: Classified service................................................... T Unclassified service...................................................... Transfers: To bureau............................ 1 1 1 From bureau.....................................2 D 1 1........8329-.....15....1.......... 8329-15 - -11

Page  162 162 REPORT OF THE PHILIPPINE COMMISSION. Statemnw~t of numnber of American and Filipino officers and employees at the time of rendering reports submitted to show relative numbers of American8, and Filipinos em'ployed. Salary Dates. Americans. Filipinos. Total. expenhi. tures. June 30, 1910............................. 17 17 1-16,374.24 June 30, 1911............................. 22 22 25,406.19 June 30, 1912............................. 26 26 28, 778. 68 June 30, 1913............................. 28 28 29,224.00 Dec. 31, 1913............................. 30 30 16,684.05 FORCE AND ORGANIZATION. The f ollowingy is a comparative statement showing the force, of this bureau duringthie, last two fiscal years: 1913 1914 D ivisions.-_ _ _ _ _ _ _ _ _ _ Officers meqsen- Officers Messenand clerks. gers. and clerks. gers Central office....................... 11 1 14 Manila free employment agency............. 2 1 2 Cebu free employment agency.............. 4 1 3 Iloilo free employment agency.............. 3 1 3 Ilb cos Sur free employment agency............ 3 1 3 Total....................... 23 5 25 FREE EMPLOYMENT AGENCIES. The following statement shows the operation of the four free employment agencies of the bureau during the first semester of the fiscal year 1914 (July 1 to December 31, 1913) as compared with the last semester of the fiscal year 1913 (January 1 to June 30, 1913): Second semester of the fiscal First semester of the fiscal year 1913. year 1914. Free employment agencies. Laborers Laborers regis- placed. FE p] Manila...................1,119 Cebu.............................. 3,592 Iloio............................I 1,528 flocos Sur.................. 245 Total.~~~~~~~~6,484 I 529 3,245 1,332 192 rcent- Laborers Lbrr Percent-t age. regi abrrs ae [aced. tered. pce. placed. 47.09 1,352 766 56.10 90.33 1,190 1,026 86.22 87.17 841 678 80.02 78.36 154 II1 72.08 81.71 3,537 2,581 72.97 5, 298 The following is a statement of the number of emigrants sent ou1t by the four agencies during the first semester of the fiscal year 1914, as compared with the number of those who have been sent out during the secoril semester of the fiscal year 1913:

Page  163 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 163 Last First semester of semester of Agencies. 3fiscal fiscal year Increase Decrease. 1913 (:an. 1914 (July 1 to June 1 to Dec. 30,1913) 31, 1913). Per cent. Per cent. Manila.......... —..-......-...................-.... 158 169 6.96............ Cebu........................................... 2,957 863............ 70.81 Iloilo..................................... 1 173 365......... 68. 86 Ilocos Sur................................... 449 283........... 36.97 Total.........................4,737 1,680................ 64.53 __~~~~~~~~~~~~1 1...... LABOR ACCIDENTS. The following table shows the number of labor accidents which have been investigated by the bureau during the semester of from July to December, 1913: Number of accidents ------------ 89 Victims -- ------— ___________ ---- --------- - 102 Deaths_ --- —---— __ --- —-------------— ____,. ___ 22 Permanent disability. --- —---- ------------------ 7 Temporary disability -_ __ _______ --- —--------------- 71 Result doubtful -________________ --------- 2 CLAIMS. During the period of from July 1 to December 31, 1913, 324 claims from complainants of different professions were submitted to the bureau. These claims amounted to P'7,645.39, of which amount P1,349.41 was recovered through conciliatory arrangements made by this bureau, while f1,037.16 could not be recovered and the amount of P5,258.82 is still pending. STRIKES.. From July 1 to December 31, 1913, this bureau attended to six strikes which took place in Manila and in the provinces. A description of the strikes follows: First.-On August 9, 1913, 29 operators employed in the central office of the Manila Telephone & Telegraph Co. struck for an increase in wages. Settlement is still pending. Second.-On August 29, 1913, 300 of the laborers in the La Prueba Tobacco Factory struck, owing to a disagreement as to the prices to be paid for filling a certain cigar order. The laborers returned to work at the end of five days. Third.-On September 22, 1913, 190 laborers employed in La Flor de Intal Tobacco Factory struck because the manager arbitrarily reduced the prices paid for fabricating a certain class of cigars, claiming that he had to sell them at a lower price. The strike lasted 11 days, at the end of which time the laborers returned to Work. Fourth.-On November 11, 1913, 38 laborers of the General Philippine Tobacco Co., Carlatan, La Union, went on a strike, alleging various grievances. These were all temporary employees, and returned to work after being out 11 days.

Page  164 164 REPORT OF THE PHILIPPINE COMMISSION. Fifth.-On November 11, 1913, a large number of stevedores at Aparri struck, claiming that the enforcement of order No. 22 of the board of rate regulation worked a hardship. The stevedores returned to work on the understanding that their complaint would be investigated. The settlement of this matter is now pending. Siath.-On November 19, 1913, 19 cigarette-machine tenders employed in La Grandeza Cigarette Factory struck for a raise in wages of 5 centavos per day and for shorter hours. The increase was grantedthem and they returned to work, the matter of shorter hours being left for adjustment later. In conclusion: Of the six strikes, two are still unsettled, the papers connected therewith being in the hands of the government. These two strikes are those involving the telephone company and the port of Aparri. The strikes involving La Prueba and La Flor de Intal in Manila and the Compania General de Tabacos de Filipinas at Carlatan have been settled in favor of the employers, and the one involving La Grandeza cigar factory is the only one which has been settled in favor of the strikers. OFFICE OF THE SUPERVISING RAILWAY EXPERT. SUPERVISING RAILWAY EXPERT L. F. GOODALE, JULY 1, 1913 -DECEMBER 31, 1913. Officers and employees at the close of the year. Class. mericans, Filip os tal, 1913 T otal, 1912. Supervising railway expert................................ 1 Stenographer..................................1 1.. 1 Engineers........................................2.....2 2 Messenger................... 1....................... 1 CHANGES IN PERSONNTEL. No changes were made. Statement of number of American and Filipino officers and employees at the time of rendering reports submitted to show relative numbers of Americans and Filipinos employed. Dates. Americans. Filipinos. Total. penar _ ~ ~ ~ ~ ~ ~~~~~..... r exture June 30, 1906 1...1................... - - 1 2P14 000. 00 June 30, 1907.6 410 51' 710.0 June 30: 1908... 6 1 7 0,700. 00 June 30, 1908.............................4 1 5 39 310. 00 June 30, 1910........................ 4 1 5 40' 360.00 June 30, 1911....................................... 4 1 5 40' 30.00 June 30, 1912.......................1,000........ June30,.. 1912......::: --- -- 4 1 5 28360.00 June 30 1913...................4 1 5 28360.00 D ec. 31, 1913........................................... 4 I 613 Dec. 3 19,4 1 5 16, 613.33 JOne employee in the States; office not as yet organized. 2This covered the salary of the supervising railway expert only, his assistants and staff being paid from the appropriation of the bureau of public works.

Page  165 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 165 LEGISLATIVE OR ADMINISTRATIVE ACTS AFFECTING RAILROADS. MANILA RAILROAD CO. On August 30, 1913, the gold-fund contract was modified in some particulars, among which was the extension of the time for the completion of the Baguio line on June 1, 1915, instead of August 1, 1914 TARLAC RAILWAY CO. On April 21, 1913, the Governor General, by letter to the president of the above company, declared the franchise granted by the Philippine Commission to said company by Act No. 1448 forfeited. The Philippine Commission, by Act No. 2282 of September 1, 1913, granted a franchise to Herbert C. Heald to construct, maintain, and operate, by steam or other power, from kilometer 24 on the Benguet Road to the city of Baguio, an aerial cableway. No work had been done on this line to the end of the old fiscal year 1914. CONSTRUCTION AND OPERATION OF RAILROAD LINES. Progress of construction, results of operation, and statistics in relation to railroads of the Philippine Islands on December 31, 1913, are given below: MANILA RAILROAD CO. Construction. Kilometers. Graded during the year____ --- —------------------- 56. 5 Track laid during the year --- —---------------- -- 32 Put in operation during the year_- _ ------— 11. 6 In operation in 1912 -__ --- —----------- ---------- 715 In operation December 31, 1913_ _ --------------- - ------- 773. 2 NOTE.-No details for sidings. Gauge of track 1.07 meters. Operating revenues. Items. 1912 1913 ncrease (+) or decrease (-). Revenue from transportation: Freight service..................... -.-.... —... - -1, 258,546. 64 P1, 720,977.07 + -462, 430.43 Passenger service............................ 3,072, 011.69 3, 459, 500. 50 + 387, 488.81 Switching service.............................. 8,461.19 19,376.06 + 10,914.87 Special train service.............................. 4,589.36 4,105.42 - 483.94 Total............................................ 4,343,608. 88 5,203, 959.05 - 860,350.17 Revenue from operation other than transportation: Station and train privileges........................ 6,448.59 7, 436. 08 + 987. 49 Storage of freight and baggage.................... 3,901.30 2,786. 72 - 1,114.58 Car service................................ 455. 42 7,232.49 + 6, 777.07 Rent of buildings and other property............... 6,408.87 9,634.39 + 3,225.52 Miscellaneous..................................... 6,152.32 4,116.11 - 2,036.21 Total............................................. 23,366. 50 31,205. 79 + 7,839.29 Joint facilities revenue, credit: Joint facilities of southern lines in connection with northern lines............ 1,238.23 1,322.93 + 84. 70 Total operating revenues......................... 4,368,213.61 5,236,487. 77 + 868,274.16

Page  166 166 REPORT OF THE PHILIPPINE COMMISSION. Operating expenses. Increase (+) or Items. 1912 1913 decrease (-) decrease (-) Maintenance of way and structures P................ P590,979.84 P673, 917.75 + P82,937.91 Maintenance of equipment............................. 288,599.49 384,802.90 + 96,203.41 Traffic expenses........................................ $42676,40 48,9840.69 + 6,164.29 Traffi exp espnses..... 42,676.40 48, 840. 69 + 6,164.29 Transportation expenses...................... 927,603.24 1,257,551.96 + 329,948.72 General expenses..................................... 208,918.50 241,958.75 + 33, 040.25 General e xpenses.. 208, 918.50 241,958. 75 + 33, 040.25 Total.................................. 2,058, 777.47 2,607,072.05 + 548,294.58 Income account. Total operating revenues............................... P4,368, 213.61 P5, 236, 487. 77 + 868,274.16 Total operating expenses.........................-.. 2,058, 777.47 2,607,072.05 + 548,294.58 Net operating revenues........................... 2,309, 436.14 2,629,415.72 + 319,979.58 Taxes................................................ 45, 737.38 45,118.71 - 618.67 Operating income.............................. 2,263,698.76 2,584,297.01 + 320,598.25 Other income: Hire of equipment................................ 195.00 1,991.12 + 1,796.12 Interest accrued on funded debt owned............................ 52,029.30 + 52,029.30 Interest on securities, loans, and accounts........ 596,086.10 250, 858. 82 - 345,227.28 Miscellaneous income.............................. 8,044.42 20,109.54 + 12,065.12 Total............................................. 604 325.52 324,988.78 - 279, 336.74 Gross income....... 2,868,024.28 2,909,285.79 + 41,261.51 Deductions from gross income: Rent by southern lines of joint facilities..... 45,951. 15 56,400.67 + 10,449.52 Inl erest on funded debt..2..... 007, 338.80 2,115, 876.01 108,537.21 Other interest.. 386,229. 76 126,568. 69 - 259,661.07 Other deductions.................43,115. 76 + 43,115.7 Total deductions................................. 2,439,519.71 2,341,961.13 - 97, 558.58 Net corporate income............................ 428,504.57 567,324.66 + 138,' 820.09 Percentage of operating expenses to operating revenues- 47.1 49.7 + 2.6 Equipment owned. Locomotives........................................... Cars in passenger service: First class............................... First and second class combination................. First and second class and baggage............... Secoun class........................................ Third class................................... Baggage, express, and postal............ O ther.............................................. Parlor........................... Total............................................. Cars in freight service: Box............................ Flat...................... Stock.................................... R efrigerator....................................... Tank. T ank........................................... O ther............................................. Total............................................ Cars in company's service: Officers and pay....................... Gravel...................... Derrick........................................ Caboose....................................... Other............................................... Total...................... Total cars owned................................. 1 Report incc 90 100 + 10 10 1......... 10 39 45 -6............ 18 18 10...........10 104 112 +. 38 38-.17 17....... — 1 1. _~I1....... -......... 219 231 + 12 924 943 + 19 95 202 +107 53 53........ 56 67 + 11 11 11. 77 140+ 63 1,217 1,418 +01 = 1 —.,_. __-_ _ 519 (1)...... 199 i................... 20...... 14 16........................ 254.... 1,690 1,771.............. --: *+ 8i

Page  167 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 167 ACCIDENTS. No train accidents of consequence were reported. The reports show 18 persons killed and 25 injured during the present year. Of the killed 5 were employees, 12 were trespassers, and 1 killed at a highway crossing; of the injured 18 were employees, 1 a passenger, and 6 trespassers. PHILIPPINE RAILWAY COMPANY. Operation. Gauge of track, 1.07 meters (3 feet 6 inches). The operating results for the calendar years 1912 and 1913 were as follows: Length of lines. Kilometers, December 31 -Territory covered. 1912. 1913. Main Sidings. Total. in Sidings. Total. line. sing. mdgs Total. Panay-Iloilo to Capiz............... 1....... 40 2.34 118.74 116.40 1.78 118.18 Cebu-Danao to Argao.........3.....95.60 3.23 98.83 95.60 2.80 98.40 Total............................. 212 5.57 217.57 212 4.58 216.58 Operating revenues. Calendar Calendar Increase ( Items. or deyear 1912. year 1913. cre -). Revenue from transportation: Freight service......................................... r183,382.09 P180, 883.67 -P2, 498.42 Passenaer service........................................ 3440, 453.34 430,517.34 - 9,936.00 Switching revenue...3................................ 3,139.50 10,239.00 + 7,099.50 Total................................................... 626,974.93 621,640.01 - 5,334.92 Revenue from operations other than transportation: Station and train privileges.......................................... 72.00 + 72.00 Storage, freight............................. 201.81 + 201.81 Storage, bagda, e.............................75 +.75 Rent of buildings and other property..................... 3209.53 5,226.80 + 2,017.27 Miscellaneous............................................. 122,839.45 14,034.07 -108,804.38 Total............................................... 126,048.98 19,535.43 -106,513. S Total operating revenues.............................. 753,023.91 641,175.44 -111,848.47 Operating expenses. Maintenance of way and structures........................... P156,759.31 Maintenance of equipment.................................. 181,602. 47 T ralli e xpenses...................................... 30,199.90 Transportation expenses.................................. 223,603.97 General expenses..................................... 62,633.95 Total.................................................. 654,799.60 _ \~~~~~~~~~~~~~i796 P169,355.20 +P12,595. 89 103,605.37 - 77,997.10 28,128.52 - 2,071.38 221,305.30 - 2,298.67 54,586.53 - 8,047.42 576,980.92 - 77,818.68"

Page  168 168 REPORT OF THE PHILIPPINE COMMISSION. Income account. Calendar year 1912. Calendar year 1913. Items. Increase (+) or decrease (-). -- 111,848.47 - 77,818.68 Total operating revenues.................................... Total operating expenses................................. Net operating revenues................................ Outside operation, net revenue.............................. Total net revenue..................................... Taxes....................................................... Operating income..................................... Other income....................................... Gross income.......................................... Interest accrued on funded debt.............................. Other deductions....................................... Total deductions..................................... Net corporate loss............................................ Additions and betterments charged to income................ Balance, debit to profit and loss........................ Percentage of operating expenses to operating revenues...... P753,023.91 P641,175.44 654,799.60 576,980.92 98,224.31 64,194.52 - 34,029.79 () 11,617.80 + 11,617.80 98,224.31 75,812.32- 22,411.99 3,765.28 3,491.42 — 273.86 94,459.03 72,320.90 - 22,138.13 4,812.44 2,782.83 - 2,029.61 99,271.47 75,103.73 - 24,167.74 670,153.34 681,098.66 + 10,945.32..........'.... 631.58 + 631.58 670,153.34 681,730.24 + 11,576.90 570,881.87 606,626.51 + 35,744.64 35,569.32 6,445.56 - 29,123.76 606,451.19 87.0 613,072.07 + 90.0 + 6,620.88 3.0 1 Included in operating revenues. Equipment owned. Locomotives................................................. Cars in passenger service: Parlor and first-class combination................. First and second class combination....................... Second class........................................... Third class........................................... Second class and baggage combination................... Baggage, express, and postal......................... Other cars in passenger service............................. Total................................................ Cars in freight service: Box...................................... Flat.................................................... Stock........................................... Coal.................................................... Other cars in freight service...................... Total................................................. Cars in company's service: Derrick cars............................. Other road cars..............':......::.....:.' Total.................................... Total cars in service............................ I c 1 u I JLU............. 1 7 12 21 6 1 2 1 7 12 21 6 1 2 501 50 79 79.............. 79 79 46 45 -1 5 6 +1 5 4 -1 58 57 -1 193 191 -2 2 2.2........... 4 5 +1 6 249 7 248 +1 -1 - -~~~~~~~~~~~~ - One car lost in flood following a typhoon.

Page  169 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 169 DAET TRAMWAY CO. Operation. Gauge of track, 0.91 meters (3 feet). Length of line, 7.24 kilometers. Revenue from transportation. Increase (+) Items. 1912 1913 or decrease (-). Freight service revenue.................................. () 28,112.11.............. Passenger service revenue............................... () 5,260.41............. Total revenue....................................................... 33,372.52.............. Operating expenses. Maintenance of way and structures............................. T3, 075.88.............. Maintenance of equipment..........................,1..4............ 2,3948.......... Traffic expenses........................................................... 343.61.............. Transportation expenses......................................... 7,686.90.............. General expenses........................................................ 5,408.90.............. Total.....(.................................... () 18,906. 77.............. Net operating revenue...................................... 14,465.75............ Taxes...................................................... (1) 861.67.............. Operating income.........()............. 13,604. 08 Equipment owned. Loomotives.............................. None........ Bulls.............................................(1).............. Cars in passenger service................................................ 4.............. Cars in freight service........................................ 12.............. Cars in company's service................................... 1............... Total cars owned..................................... (2) 17............ 1 No report for calendar year 1912. No accidents are reported. 2 None reported. MANILA ELECTRIC RAILROAD & LIGHT CO. AND MANILA SUBURBAN RAILWAYS CO. Electric lines. Gauge of track, 1.44 meters (4 feet 8~ inches). Construction. During the calendar year 1913, 2.85 kilometers of main track and 2.11 kilometers of second track and sidings were added to the property of the Manila Electric Railroad & Light Co. No other oonstruction work was done on either line.

Page  170 170 REPORT OF THE PHILIPPINE COMMISSION. Revenue from operation. Items. 1912 1913 Increase (+) or decrease (-). Revenue from transportation.......................... P1, 315,064.74 P1, 425,882.08 + P- 10, 817.34 Station and car privileges..................-..... 12,490.20 16,110.55 + 3,620.35 Rent of tracks, terminals, buildings, and other property. 4,109.00 1,820.20 - 2,288.80 Sale of power...2................................... 269, 001.26 318,698.30 + 49,697.04 Sale of light...................................... 1,232,534.19 1,229,969.80 - 2, 564.39 Miscellaneous..................................... 13,562.83 1,682.11 - 11,880.72 Total operating revenues...................... 2,846,762.22 2,994,163.04 + 147,400.82 Operating expenses. Maintenance of way and structures..................... 208,021.63 P177,151.30 -P30,870.33 Maintenance of equipment.............................. 122, 741.70 125,836.05 + 3,094.35 Traffic expenses................................... 9,072.93 11,787.19 + 2,714.26 Transportation expenses......................508,259.11 581,659.85 + 73,400.74 General and miscellaneous expenses.................. 481,170. 75 524,864.98 + 43,694.23 Total operating expenses......................... 1,329,266.12 1,421,299.37 + 92,033.25 Income account. Total operating revenues........................... Total operating expenses.......................... Net operating revenue............................ Miscellaneous income: Interest on deposits and on securities owned...................................... Gross income less operating expenses............ Deductions from income: Taxes.............................................. Interest on funded debt............................ Interest on floating debt............................ Total deductions................................. Net income....................................... 1) isposition of net income: Reserve for replacements and renewals........... Dividends on common stock........................ Total............................................. Surplus for year............................... Percentage of operating expenses to operating revenues, railroad only.............................. P2,846,762.22 '2,994,163.04 + P147,400.82 1,329,266.12 1,421,299.37 + 92,033.25 1,517,496.10 1,572,863.67 + 55,367.57................ 18,830.31 + 18,830.31 1,517,496.10 1,591,693.98 + 74,177. 78 96,034.34 97,834.22 + 1,799.88 (') 360,000.00................ (1) 120,000.00............................... 577,834.22................................ 1,013,859.76................ (l) 147,199.92............... (1) 700,000.00.............. --- — 87,9.9 59.0 847,199.92 766,659.84 47.5 - 11.5 I ________________________ I _ ___ I --. --- Equipment owned. Passenger cars..............................114 Freight cars....................... Work cars............................................. Sprinkler cars........................................ 1 Total cars........................................ 117 Noreport for calendar year __191 1 No report for calendar year 1912. Report shows 10 persons killed and 672 injured in the operation of the line during the calendar year 1913. Track has been maintained in fair condition.

Page  171 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 171 MANILA SUBURBAN RAILWAYS CO. Revenues from operation. Items. Calendar year Calendar year Increase(+)or 1912. 1913. decrease(-). Revenue from transportation............................ P269, 302.48 P257, 452.595 — l11, 849.885 Revenue from sale of power.................................. 552.40 2,991.78 + 2,439.38 Revenue from sale of light............................. 59,086.47 61,094.84 + 2,008.37 Miscellaneous........................................ 3,963.88 250.13 - 3,713.75 Total operating revenues......................... 332,905.23 321,789.345 - 11,115.885 Operating expenses. Maintenance of way and structures....................... P15, 332.71?6, 802.33 -- 8, 530.38 Maintenance of equipment........................... 5,162.65 4,757.55 - 405.10 Traffic expenses..................................................... Transportation expenses.................................. 94,528.21 94,476.34 - 51.87 General and miscellaneous expenses...................... 15,460.40 18,435.32 + 2,974.92 Total operating expenses...................... 130,483.97 124, 471.54 - 6,012.43 Income account. Total operating revenues............................... P332,905.23 1 321,789.345 -l11, 115.885 Total operating expenses..................... 130,483.97 124,471.54 - 6,012.43 Net operating revenue.............................. 202,421.26 197,317.805 - 5, 103.455 Miscellaneous income: Interest on deposits............................ 3,858.87 + 3,858.87 Gross income less operating expenses.................. 202,421.26 201,176.675 - 1,244.585 Deductions from income: Taxes................................................ 9,298.23 9,086.72 - 211.51 Interest on funded debt.............................. () 65,000.00................ Interest on sinking fund............................. (1) 6,500.00................ Total deductions..................................... 80, 586.72............... Net income........................................... 120,589.955............... Disposition of net income: Reserve for replacements and renewals............ (. ) 12,799.92............. Dividends on common stock......................... ( 106,000.00................ Total.............-.............................. 118,799.92............... Surplus for year......................................................... 1,790.035............... Percentage of operating expenses to operating revenuerailway only..................... 39.4 14.8 - 24.6 Equipment owned. asse ger cars......................... 6 Freight cars..................................... 7................ Total cars............1....................... 13................ No report for calendar year 1912. Report shows no persons killed with 20 injured during the calendar ytar 1913 in the operation of the line. Line has been maintained in good condition.

Page  172 172 REPORT OF THE PHILIPPINE COMMISSION. Summary of grading, tracklaying, and of lines put in operation on all lines during the half year. Kilometers. Roads. R~oads'. Grading Track Lines completed. laid. opened. Manila R. R. Co......................................... — --—.... 56 5 32.0 11.6 Philippine Ry. Co.............................................................. Manila Electric R. R. & Light Co............................... - 2. 9 2.9 2.9 Manila Suburban Rys. Co............................................................. Daet Tramway Co................................................. Cebu Electric Line......................................... Total.......................... - -......-.....-.........- 59. 4 34.9 14.5 The financial operations of this office for the half year were as follows: Financial statement. RESOURCES. Principal account surplus -_____ — __ —_ --- —--- ------------- 3, 895. 59 Allotment fiscal year 1914-___ --- —---------- P20, 000. 00 Less reversions --- —— __ —_ --- —---- - __ — 3, 493.38 ------ 16, 506.62 Total available --------— __ — _______ — ---- - 20, 402. 21 EXPENDITURES. Maintenance of furniture and fixtures___ ---- ---- ---------- 16.58 Administration: Salaries and wages___-____ __ --- —--------- 15, 567.78 Expenses of personnel --- —---- ----------- 665.04 Office expenses — _____ --- —----------— ___ 1, 246. 62 Incidental expenses ---— ______ --- —--— ___ _ 7,031.12 24, 510. 56 Prior fiscal year —_____ --- —------------------— _ 5, 829.71 Total expense of operation _ --- —---— ________ _____ 30, 340.27 Income: Receipts from operation ----_____- ___________ 14,150.14 Prior year income__-______ -— ______________ 274.49 --- - 13, 875. 65 Net cost of operation —_ ------— _ 16, 481. 20 Capital expenditures, furniture and fixtures.__.__ --- ____ —___ _ 25.42 Total net expenditures-_____-_____ ______ __ 16,506.62 Balance reverting to the treasury -- ----—. — 3, 895.59 OFFICE OF THE CONSULTING ARCHITECT. CONSULTING ARCIIITECT, WILLIAM E. PARSONS. WORK PERFORMED. During the period from July 1, 1913, to December 31, 1913, 122 projects, which, if completed, will cost approximately P9,556,529.51, have been handled by this office.

Page  173 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 173 Plans for 26 of these projects, amounting in value to P736,176.74, were prepared and finished during the fiscal half year, and plans for 95, amounting to P8,820,352.77, were in course of preparation or under consideration. A comprehensive plan for the improvement of Manila, based on the Burnham plan but revised and adjusted to actual conditions, has been prepared. It is intended that this plan should serve as a guide for improvements and for street and park extensions as needs may require and as funds become available. Plans for the extension and beautification of San Pablo and Laguna and for the development of the portion of Iloilo between the customhouse and Iloilo Straits have been completed. The work of this period also includes planting schemes for the provincial parks at Cabanatuan and Iloilo. Preliminary plans for the capitol have been brought to completion. A model of the entire group, with adjacent streets and parks, at the scale of 1-500, has been executed. The expense of the office during the half year was as follows: Salaries (including that of consulting architect)- --- - 40, 167. 26 Transportation, per diems, subsistence, etc --- —-— _______ — __ _ 575. 48 Office expenses, rental of office, furniture, stationery, etc ------ 4,187.98 Total --------— __ --- —------- 44,930.72 PERSONNEL. Oficers and employees of the consulting architect's office at the close of the year 191:. Class. Americans, Filipinos, Total, Total, class. 1913. 1913. 1913. 1912. Consulting architect............................... I........... 1 Assistant architect...................1.................. 1 1 Chief draftsman.................................... 1.......... Architectural draftsmen........................ 2 5 7 8 Chief clerk............................................. 1 Junior draftsmen................................................... 8 8 11 Estimator.,,,,,........................................ 1 2 Specification writer.................................... 1 Stenographer....................................... 1 Messengers............................................4 4 3 Clerk................1 Total............................................ 9 17 26 31 i-_._..__.. Changes in personnel, July 1 to Dec. 31, 1913. Appointments....................................... 11 6 Reinstatements................................................................. Removals 4 Transfers: To office.........................................1........................ t...rom office........................................... Deaths........... CORPORATIONS. The following table shows the number of licenses issued to foreign Corporations and the number of articles of incorporation and other documents filed by the division of archives, patents, copyrights, and

Page  174 174 REPORT OF THE PHILIPPINE COMMISSION. trade-marks of the executive bureau for the six months ending December 31, 1913: Licenses issued to foreign corporations --- —------------ ----- 8 Articles of incorporation of domestic stock corporations ----—.___ — __ 49 Articles of incorporation of domestic nonstock corporations.- _ __ --- —-- 11 Articles of incorporation of religious corporations ____ --- —___ ---- _ 1 Amendments to articles of incorporation____ --- —------— ____ --- — -_- 6 Changes of names of corporations __ --- —----. --- —— ____ _ 3 Certificates of increase of capital stock__ —____ --- —- _ _ --- —-- -. 7 Letters of appointment. ----__ --------------------- 1 By-laws -------— __-_-_ ----___ --- —-------- -_ --- _- - 47 Amended by-laws ----- --------------------------— __ — 5 The total amount of fees collected for the issuance of licenses and the filing of documents was P4,602. IRRIGATION COUNCIL. The irrigation council created by Act No. 2152 held five meetings during the latter half of 1913 to consider applications for water rights. The work of the council is shown as follows: Applications brought before the council_ -------— ___ ---___ __-____ _ 14 Applications approved -_____ --- —-—.-. ---.-_ _________ 7 Applications rejected ---_____ — -___ — __ — ___ --- —---- _ —__- 0 Applications pending further action_ -----—,_- ---- -----— _-______- _ 7 Respectfully submitted. JAIME C. DE VEYRA, Acting Secretary of Commerce and Police. To the PHILIPPINE COMMISSION.

Page  175 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. FISCAL YEAR ENDING DECEMBER 31, 1914, DEPARTMENT OF COMMERCE AND POLICE, Manila, March 30, 1915. GENTLEMEN: There is submitted herewith the report of the department of commerce and police for the fiscal year beginning January 1 and ending December 31, 1914. The undersigned assumed the duties of secretary of department on the 23d day of February, 1914, relieving the Hon. Jaime C. de Veyra, who had been acting secretary of commerce and police since the 29th day of November, 1913. On the 16th of January, 1914, by Act No. 2314 the office of consulting architect was transferred to the bureau of public works, and the consulting architect under the provisions of this act performs the duties of his office as an officer of the bureau of public works instead of a bureau chief as formerly. On the 31st of January, 1914, by Act No. 2320 the office of supervising railway expert was abolished and the duties of that office were transferred to the board of public utility commissioners. The bureaus of this department at present are the constabulary, public works, posts, coast and geodetic survey, and labor. BUREAU OF CONSTABULARY. Chief of constabulary: Brig. Gen. WILLIAM C. RIVERS, January 1, 1914, to March 31, 1914; Brig. Gen. HERMAN H. HALL, April 1, 1914, to June 26, 1914. Acting chief of constabulary: Col. WALLACE C. TAYLOR, June 27, 1914, to December 31, 1914. Officers and employees of the bureau at the close of the year, Dec. 81, 1914. Americans, Filipinos, Total, Total, 1914. 1914. 1914. 1913. Chief of constabulary........................................ 1 1 Assistant chiefs of constabulary...................... 9 1 10 10 Assistant to chief................... 1nspector of constabulary.............. 1 1 Clerks................................................ 230 esseners.. 7 M essenLer::...................................... 7 7 tenograph....................................... 2 7 raslators........ 1 2 2 ise...................:::n:t:s:.......,. '.. 29 29 19 mscellaneous.......................... 20 175

Page  176 176 REPORT OF THE PHILIPPINE COMMISSION. Changes in personnel, excluding officers and enlisted men. Americans, Filipinos, Total, Total.1914. 1914. 1914. 1913. Appointments............................... 21 66 87 71 Renmstatements................................................... 5 3 Removals......................................... 2 4 6 6 Resignations.......................................... 38 31 69 58 Transfers: To bureau.................................... 1 2 3 3 Flom bureau................................................... 2 2 D eaths.................................................3........... 3 6 Statenment of number of American and Filipino offcers and employees at the time of rendering reports submitted to show relative numbers of Americans and Filipinos employed, excluding enlisted men. Americans. Filipinos. Total. Salary ex. penditures. June 30, 1905........................................... 269 259 528 (1) June 30, 1906.3....................................... 306 221 527 (1) June 30, 1907........................................ 286 107 392 (1) June 30, 1908............................. 285 125 410 (1) June 30, 1909......................................... 286 105 391 (1) June 30, 1910.............................. 285 113 397 '1, 135,715.83 June 30, 1911.......................................... 295 93 388 1,142,610.05 June 30, 1912.......................................... 298 104 402 1,163,327.86 June 30, 1913.......................................... 291 121 412 1,187,160.38 Dec. 31, 1913.......................................... 319 146 465 680,118. 76 Dec. 31, 1914.......................................... 258 190 448 1,302,275.84 1 Figures for these years are not available. Actual strength of enlisted force, Dec. 31, 1914. ___Oficers~~men.. Headquarters..................................................... 18 Medical division............................................................... District of Northern Luzon............................................ 42 710 M edical division..............................................................3 14 District of Central Luzon 56 1,081 Medical division....... ------------- 2 20 District of Southern Luzon.................... ' -34 633 Medic 1 division.2 14 Medical division........................................................... 2 14 District of Visatashen...........4 8............................ 30 M edical division.......................................... 2 16 District of Visayna o............................................................... 27 Medical division...................... 418 Santa Lucia Barracks.1. Medical division............ ^ """""""""""""""""*** --- -" " General Service, Philippine Constabulary........................... [ *7 131 Constabulary band............. 80 Constabulary academy-....-... " "* --- —-34 11 M edic aldivision................................................... 34 ' Medical division.2 Constabulary of Palawan 2 56...... Medical division........ 2 On detached service from bureau........ Total................................27 4,768 ~ —~ ~"~"'^.^[ 1* 80327 Report of the medical division, authorized strength 19 officers and 100 enlisted men. Constabulary cases treated in hospital ________________________ - 932 Constabulary cases treated in quarters. - ---------- ____ --- 3, 075 Miscellaneous cases other than constabulary -— _________________ --- —- 594 Members of constabulary treated by other than constabulary medical officers 160 Days lost in hospital _ ----------------— ~-~-~-~"'~' —'"""~~ —~~ — _~ 13 512 Days lost in quarters...-_____...____ — 21. 523 Malaria is responsible for the greatest number of cases, while wounds are next.

Page  177 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 177 Statement of accounts, 1914. DEBIT. To appropriation act 2319: Salaries and wages -----—:_ —__ --- — P2, 254, 810. 22 Contingent expenses-___ _ --- —--— _ 1, 259, 333. 43 - 3, 514, 143. 65 To unexpended balance of appropriation in act No. 2289 ----__-. 96, 075. 00 To act No. 2366 (abolishing commissaries) --— _- ---— __ 3, 589. 26 Receipts from operation- __ --- —----- 10, 705. 50 Receipts fronm sales of commissaries__ ____ --- - 449.27 11,154. 77 Receipts from sales of fixed assets_ ---_._-__ —___ __ --- - 24, 710. 97 Total ---------------- 3,649, 673.65 CREDIT. Total expenditure __ --- _ --- —— _ — ___ _ __ --- —--- 3, 592, 340.24 Reversions to general fund__ ____ --- —--- -_ ___ --- — 35, 865. 74 Unexpended balance_-____ __ __ --- —---- -— _ ---- 21,467. 67 Total -- ---------------------- 3, 649, 673. 65 Statement of assets and liabilities. ASSETS. Real estate (land) ------------- - 95,645.65 Plant and equipment: Buildings and structures: --- —--- ----- P535,223. 29 Water transportation ---__ --- —-------- 72,603.47 Land transporation --- —----— ___ --- —-- 115,995. 37 Ordnance and ordnance stores-_ ____ --- —- 460,964. 34 Portable machinery and implements_ --- —---- 17,116. 66 Furniture and fixtures_-__ --- —-------- 346,175.12 Miscellaneous equipment__-_____ --- ---- 50,404.37 1, 598, 482. 62 Prepayments -— _ --- —--------------- - 5, 685. 68 Accounts receivable -------- ------ 10, 784.93 Insurance claims__ --- —--- -------.- 2, 500.48 ----— h:- 13,285. 41 Cash: Insular treasury _ --- — ----------- - 68 632. 66 Collection and disbursing officers_ - ---------- 296,089. 62 364, 722. 28 Total- ____ --- —------------------------ 2, 077, 821. 64 LIABILITIES. Accounts payable_ --- —----------- ------- -- 362. 225.70 Bond fund, act No. 1954_ -—.__ _ --- —. _ --- —- ---— _ 100,000.00 Net worth_ --- —------------------ 1, 615, 595. 94 Total -------— _ -------------- 2,077, 821. 64 Summary of licenses issued by the chief of constabulary under Act No. 1780, to possess or carry firearms to December 31, 1911. Rifles. Dec. 3 1914............................. ec31 1913................................................... Increase, 1914. Dencre as, 1914.................................... 832cre, 1914. 8329 —15 ----12 Revolvers. 2,268 2,238 30.......... Shot- Total guns. 511 540.......... 4,265 7,044 4,119 6,897 146 176............29.......... 147

Page  178 178 REPORT OF THE PHILIPPINE COMMISSION. Arms in hands of municipal police. Owners. Rifles. Ca- Revol- Shot- Total. bines. vers. guns. Municipalities, 1913............................ 17 9 1,309........ 1 335 Municipalities, 1914................................ 20 1, 446 5 1, 471 Increase, 1914........................................... 11 137 5 153 Decrease, 1914......................................... 17....................17 Net increase, 1914...................................... 136 PEACE AND ORDER. Conditions have been generally good. The American troops were withdrawn from Mindanao and Jolo in October, 1913, their responsibilities being assumed by the Philippine Constabulary. The wild tribes and the mountain people have occasioned no trouble of consequence, and ruptures in general peace have been confined to outlawry among some Moros, the escape of prisoners from San Ramon Farm and the Iwahig Penal Colony, and the attempts of some of the more radical members of a revolutionary society, controlled by Artemio Ricarte, to establish a field force. The Ricarte movement has been more or less active since 1911, its avowed purpose being to work for a government controlled by its own members and sympathizers. Its real purpose seems to be the collecting of funds. In July, 1913, there was a small outbreak in San Marcelino, Zambales Province. This was participated in by 30 men under the leadership of Blas Sison and two priests of the independent church, commonly known as Aglipayanos, but the band was quickly broken up by officials and constabulary. In February, 1914, Aurelio Concepcion was arrested in Taytay, about 30 miles from Manila, for selling Ricarte commissions and attempting to organize a field force. Ricarte's Hongkong paper, " The Cry of the People," was excluded from the Philippine mails by the secretary of commerce and police in March, 1914, which resulted in cutting off the income of those followers who were soliciting contributions for revolutionary purposes under the guise of subscriptions to a newspaper. In July, 1914, Ricarte distributed printed copies of his constitution for the "Rizal Islands," thus indicating his aspirations not only to change the name, but to have his government supersede any that might be established here. Organizers from Manila circulated in the provinces of Rizal, Tarlac, Nueva Ecija, Tayabas, Iloilo, and Antique, selling commissions from lieutenant to colonel for from 50 centavos to 10 pesos each. Miguel Suba in Nueva Ecija, Leoncio Panganiban and Bernardino Bagay in Tayabas, Concordia Dalida in Iloilo, and Felix Vasquez in Antique were organizers arrested and sentenced to terms of imprisonment. Modesto Victorino, Ricarte's right-hand man in Manila, was arrested August 18 and taken to Tarlac for trial. He was sentenced to six years' imprisonment. Arrests have since been made of the organizers Daniel Cagado and Estanislao Ancero in Marapipi and Leyte islands. The arguments used to sell commissions were, in general, to the effect that this was the opportunity to get in on the ground floor so that when independence or an insurrection should come, the Ricarte army would be in control and the

Page  179 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 179 class of people it represented would be in a position then to equalize the distribution of the wealth of the country. The European war and the military exercises of the Guias Nacionales, the Dimas-Alang, and the Sailors' Union awakened the war spirit and furnished argument for the Ricartistas to unite the lower classes for their own benefit. The arrest of Modesto Victorino effectually broke up what was intended as a movement on the outskirts of Manila scheduled for August 26. When August 26 came around only two groups found courage to assemble, although it is known that quite a number of men left Manila in search of the rendezvous. One group of 12 was picked up by the constabulary at Balintawak, 10 miles north of Manila, and another of 30 was run into Bulacan Province, where it disbanded. Brigido Santiago, the leader of this field force, was captured and given a jail sentence. His immediate superior, Rufino Vicente, apparently lacked courage to take the field. He has since been captured. The prompt action of the constabulary in arresting and dispersing these agitators no doubt kept this movement from assuming more serious proportions. The next event was similar to that of the Mandak uprising in 1910, in that its leader was at liberty on bond awaiting the confirmation of the supreme court of a sentence for manslaughter, and in his desperation to avoid imprisonment became overconfident of the forces and extent of the revolutionary spirit, which he felt himself fitted to lead. This was the Christmas eve attempt of Timoteo Cariaga. The streets of Manila were filled with companies of Dimas-Alang and National Guides, drilling in preparation for Rizal Day parade, and there were the usual number of Christmas eve gatherings. The group of eight men picked from the crowd in the Botanical Gardens and belonging to Cariaga's outfit were of the lowest type. Tomas Enrile, who was to work in conjunction with Cariaga, was satisfied to take possession of the municipal building at Navotas, 12 miles from Manila. His outfit was dispersed by the local police, while he was himself captured by the constabulary a few days later. The following arrests of organizers and leaders have been made since December 24: Rufino Vicente and Tallada, of Rizal Province; Ciriaca Geirosa and Moises Marca, of Laguna Province; Bernabe Bagsic, of Pampanga and Bulacan Provinces, and several minor agents. In the provinces of Cebu and Pampanga attempts were made by certain religious fanatics to organize militant bands similar to those in past years, but they were quickly suppressed. The increase in cost of living due to the war, the drought, and locust pest has not had an appreciable effect as to crime to date. CONSTABULARY ACTIVITIES. Aside from its usual duties in the matter of peace and order, the constabulary devoted a great deal of time to the campaign against locusts and to quarantine against cholera and rinderpest. The efficlent services performed in this connection reflect great credit on the Constabulary organization. Two new stations were established in the interior of northern Luzon, one at Macabenga, to the east of Bayombong, and one at Cabugao, which is farther up the river from Tauit, in Apayao. These stations will more effectively control a people hitherto difficult to reach.

Page  180 180 REPORT OF THE PHILIPPINE COMMISSION. An appreciable falling off in the use of opium is recorded since the enactment of the law imposing a heavier penalty and providing for the deportation of recidivist Chinese. The price of opium has quadrupled in 12 months. The constabulary was charged with enforcing the gambling law three years ago and a steady progress has been made against this evil. HEALTH CONDITIONS. The health of the constabulary has been excellent. There is considerable decrease in the number of sick treated in the hospitals and quarters this year as compared with last year. Malaria fever has been reduced in all the districts except the district of Mindanao. In the districts of southern Luzon and the Visayas the number of cases was reduced fully one-half. In the district of Mindanao the number of cases of malaria has increased four times the number reported last year, apparently due to the opening of new stations in that district. The number of cases of venereal diseases, dysentery, and beriberi has decreased from the number reported for the previous year. Tuberculosis has increased considerably, due perhaps to the strict medical inspection given the men. The following is the hospital report: Cases treated in hospitals ---________ --- —---------------- 932 Cases treated in quarters______________ --- —---------- 3,075 Days lost in hospitals ----— _ --- —— __ ----_ - 13, 771 Days lost in quarters ---_ --- —---- ______ ---- 21,724 Deaths, officers --------- -----—. --- —----- 3 Deaths, enlisted men______ — _ ___ --- —------------- 29 Diseases causing the largest number of admissions to hospitals and quarters. Malaria_ _ ____ --- —---- 1, 260 Dysentery ------------- --- 18 Wounds -____ --- —------ 201 Bronchitis-__ --- —--- 86 Venereal diseases___ _-_ --- —-- 196 Denaue__ --- —------- 84 Furunculosis -_-__-____ --- —--- 174 Diarrhea --- —- ---— __ -— _- 72 Abscess _ ___ --- —------- 143 Tuberculosis_____ ---- ----- 45 Indigestion___ --- —----- _116 In addition to the above cases treated bv our medical officers there were 165 officers and enlisted men treated by other than constabulary medical officers. Against this, our medical officers have treated free of charge about 4,164 indigent patients and employees of other blreaus. These figures do not include the indigent patients treated by our medical officers who, in addition to their constabulary work, are in charge of dispensaries amongst the non-Christian tribes. CONSTABULARY ACADEMY. During the year there have been in the academy two classes of third lieutenants and one class of Filipino cadets. Provision has been made for a Filipino cadet class for 1915, to which will be admitted some of those who failed of appointment in 1914 and some noncommissioned officers, together with new nominees. MUNICIPAL POLICE. The undersigned desires to call attention to the fact that the inducements to enter the service and the guaranty of continuance are insufficient to attract a large number of applicants to the municipal

Page  181 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 181 police force. Many municipalities are unable to fill the grade of patrolman with eligibles certified by the examining board. It is noted that in some instances municipal officials are disposed to appropriate more funds for a larger and more efficient police force, but such estimates have been refused approval by the provincial treasurers. RECOMMENDATIONS. The marksmanship of the constabulary is not up to the standard that could be reasonably expected in such an organization, and it is recommended that the Legislature appropriate additional funds for the purchase of ammunition for target practice. In many of the provincial capitals the constabulary force is quartered in rented buildings in the main streets of the town. It seems desirable that grounds be obtained in the suburbs, and it is recommended that the Legislature give this matter consideration at its next session. The constabulary is greatly in need of proper transportation facilities in the shape of motor boats, motorcycles, and automobiles. As this class of transportation has revolutionized the work of the military and police, it is believed that more ample provision should be made by the Legislature for the purchase of this class of equipment. Following the precedent established by all civilized countries, which is believed to be the proper course, it is recommended that the attention of the Legislature be again called at its next session to the necessity for an adequate pension and retirement fund for the constabulary. Such a bill was proposed at the last session, but failed to receive approval. It is recommended that every effort be made to secure the passage of such a law at an early date. BUREAU OF PUBLIC WORKS. DIRECTOR OF PUBLIC WORKS, WARW1CK GREENE. Bureau officers and employees. In charge Adminis- f oforganizaDirector. trative tion uni ots A al.ll o ice r and in nad. other. Total. ocrs. visory capacity. June 30, 1913: Americans............................ 1 4 49 121 17 Filipinos....................................... 1 294 295 Total......................................... Dec. 31, 1913: Americans............................ Filipinos...................................... Total.................................. ee. 31, 1914: Americans....,,.......................... Filipinos....................................... Total.......................................... 1 4 50 415 470 1 4 46 85 136..................2 239 241 1 1 48 324 377 *1___ I - - 1 4 62 57 124............................. 13 216 229 4_75 273 353 4 75 273 353

Page  182 182 REPORT OF THE PHILIPPINE COMMISSION. Number of American and Filipino officers and employees. Employed on date stated. Date. Total salaries. Ameri. cans Filipinos. Total. June 30, 1913....................... 175 295 470 p466,773.24 (previous 6 months). Dec. 31, 1913................. 136 241 377 388,770.52 (previous 6 months). Dec. 31, 1914.................. 124 229 353 759,139.85 (current year 1914). Number of American and Filipino officers and employees. Salary exDates. Americans. Filipinos. Total,.penditure for the year. Pesos. June 30, 1905............................................... 44 26 70 (1) June 30, 1906........................................ 80 51 131 (1) June 30, 1907............................................... 98 83 181 (1) June 30, 1908............................................... 144 109 253 (1) June 30, 1908. i 3 144 109 253 (l) June 30, 1909.......................................... 247 251 498 (1) Jlme 30, 1910............................................... 260 306 566 (1) June 30,1911.................................... 354 372 726 (1) June 30, 1912............................... 244 327 571 (1) June 30, 1913................................ 175 295 470 (1) Dec. 31, 1913.......................136 241 377 2388,770.52 Dec. 31, 1914.............................. 124 229 353 759,139.85 1 Data for these years not available. 2 Six months. 3 Year. From July 1, 1911, to December 31, 1913, a varying number of district officers and employees engaged on work supervised by the bureau were paid by the provinces. No account is taken of these men in the foregoing two tabulations. CHANGES IN PERSONNEL. The figures in the following tabulation include all officers and employees engaged upon work supervised by the bureau by whatever branch of the government paid. The years mentioned are calendar years: Appointments............................................ Reinstatements................ Separations for cause............... '" - Voluntary resignation............................ Separatiods-economy............................. Transfers to bureau................ Transfers from bureau.............................. Deaths........................... - Americans, Filipinos, Total, Total, 1914. 1914. 1914. 1913 43 258 301 396............ 5 5 5 2 22 24 83 36 139 175 377 54 13 67 45 24 12 36 8 4 11 15 13 2............ 2 2 _ _ _ ~~~~~~~~~

Page  183 ( ORGANIZATION DIAGRAM OF THE BUREAU OF PUBLIC WORKS DECEMBER 31, 1914 m... DIRECTOR OF PUBLIC WORKS DIVISION OF ARCHITECTURE Consulting Architect DESIGNING DIVISION Chief Designing Engineer I ADMINISTRATION DIVISION Assistant to the Director _~ ADMINISTRATION DIVISION CONSTRUCTING DIVISION Chief Constructing Engineer | ---___ t Water Rights _ Water Supply, Irrigation and Other Hydraulic Design [ Accounts I Design of Port and River Control Works I Building, Bridge, Lighthouse, and Other Structural Design Drafting, Blue-print and Photo--— _- graphic Work Planfile and Library Disbursements and Collections Property Records Division of Automobiles and Machinery Registration and Regulation of Motor Vehicle Traffic Road, Engineering DisBridge, tricts, Building, Water Supply, Benguet Road, Port Works, River Control, Insular Building Lighthouse, and and Port Work, Other Construc- Manila, tion and Maintenance Special Projects Highway Specification and Practise Benguet Automobile Line 1-3 H 0 0 z 0 t O C1 0 g4 aE_ 00 I Panay Automobile Line ----

Page  184 184 REPORT OF THE PHILIPPINE COMMISSION. GENERAL. During the year the organization of the bureau of public works was simplified and its cost reduced. The consulting architect was placed under the director of public works by Act No. 2314 and port works transferred by Act No. 2308 from the old bureau of navigation to the bureau of public works, which was reorganized under four principal divisions, as follows: (1) Administrative.-Assistant to the director in charge. General administration work of the bureau, including director's office, accccunts, property, records, cashiers, etc. (2) Architectural.-Consulting architect in charge. Architectural and structural design of all buildings, monuments, etc. (3) Design.-Chief designing engineer in charge. All engineering and technical designing work of the bureau excepting buildings. (4) Constructing.-Chief constructing engineer in charge. All construction work of the bureau and the administration of all the district engineers' offices. Chief constructing engineer also acts as principal assistant to the director in the general administration of the bureau. In addition, preliminary steps toward extending the jurisdiction of the bureau over public works in Mindanao and Sulu were taken by sending bureau engineers to various public works positions in that department. The appropriation act for 1914 contained the following provision: All insular and provincial public works projects shall be carried out under the supervision of the bureau of public works unless otherwise directed by the secretary of commerce and police. The general supervision over public works in the special provinces, thus given the bureau, has been exercised only in special cases during the past year. Under the law the supervision of the bureau is now extended over all public works in the islands except municipal public works in the city of Manila and in municipalities which do not make specific request of the bureau to take charge. The new organization of the bureau has worked well, although the reduction of personnel has prevented the preparation of designs and plans and the carrying on of some administrative and construction work as rapidly as formerly. While the capacity of the bureau for turning out work is not as great as in former years, yet the efficiency per peso of expenditure is much greater. Due to this policy of stringent economy and reduced insular appropriations for public works a considerable reduction in personnel was made. During the course of this reduction many valuable men were lost-men who had given the bureau long, efficient, and loyal service. At the same time advantage was taken of the situation to weed out many of the less efficient men. Hard times in the United States as well as in the Philippines also enabled the bureau to make some personnel adjustments on more favorable terms to the government than would have been possible in more prosperous times, although the administration and the Legislature followed the wise course of not reducing technical salaries. The engineers of the bureau have been treated very liberally, considering the general policy of the government. Reduced revenues on the part of the

Page  185 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 185 insular government meant reduced expenditures, particularly for insular public works, and this involved reduced personnel for the bureau. On the whole, the morale of the bureau of public works has not suffered much from a drastic reduction of its force. This reduction, with other related matters, has naturally caused great discontent in some quarters. FILIPINIZATION. The development of a Filipino technical personnel is proceeding as rapidly as circumstances will permit. At the end of the year six districts were in charge of Filipino engineers. Systematic progress continues to be made in the development of Filipinos in the clerical positions, including stenographers, as well as in the foremen and skilled labor classes. The clerical force in all the district offices is now completely filipinized. From present indications, the great impediment which wellordered development of Philippine public works will in time come to face will be a dearth of Filipino civil engineers, resulting from the fact that comparatively few men are now preparing themselves for the profession. Compared with the number who are entering the other professions, such as law and medicine, the number is very small and will be entirely inadequate to supply the Filipino engineers that will be needed in the future. It is believed that when a Filipino has qualified for a position formerly held by an American, his salary should be based not on what the American formerly received, but on what is a proper salary under the conditions prevailing in the Philippines. No question of the relative ability of the two is involved in this distinction; it is solely a question of economics. This is the policy laid down by former Gov. Gen. Smith, and it is believed to be entirely sound. As most of the employees, other than Filipinos, come from the United States, it is obligatory on the Philippines, economically a poor and undeveloped country, to pay salaries on the United States scale, which is the highest in the world. This is an artificial scale for the Philippines and only adopted because of necessity. It would be an economic crime to apply this very high scale to the remuneration of Filipino engineers or other Filipino employees. They should receive salaries proportionate to the economic conditions of the Philippines. Any other policy would be economically false and would be an injustice to the taxpayers. SUMMARY OF WORK FOR THE YEAR. Comparison of total expenditures supervised. July 1, 1910-June 30, 1911 --- — ------. 793.119. 59 July 1, 1911-June 30, 1912___ ---- ------------------- 9, 720.441.83 July 1, 1912-June 30, 1913-__ --- —------- -— _- -— _ 10, 285.591.99 July 1, 1913-Dec. 31, 1913 --- —----- 5. 407,466. 45 Jan. 1, 1914-Dec. 31, 1914 --- —------------------------- 9, 894293. 00 During the year P9,894,293 were spent under the direction of the bureau of public works. Of this, P5,434,596.42 were from insular Sources and P4,437,635.25 from provincial and municipal sources.

Page  186 186 REPORT OF THE PHILIPPINE COMMISSION. A comparison of this with expenditures in prior years is shown in the preceding table. The sum was spent as follows: Construction and maintenance of roads and bridges --- —---- 5, 652, 436. 94 Artesian wells --- —-- --------- - ---- -------- 452, 013.43 Waterworks --- —--- -------------------- --- Buildings -— __ --- —--— _ — ----------- — _ 2, 703, 485.94 Port works, construction and maintenance_ ---- --------- 391, 533. 19 Miscellaneous ---------------- -------------- - 694, 823.50 MOTOR VEHICLES. The motor vehicles in use in the Philippine Islands continued to be registered by the bureau. Summaries of such registration follow: Registered during calendar year 1914 --- —--- ---------------- 826 Registered prior to Dec. 31, 1913_______ ---- __ --- --------- 2, 646 Total~ -----— __ --- —----------------------- 3,472 Automobiles and motor trucks, including all four-wheeled vehicles, e. g., ambulances, fire engines, delivery wagons, etc___- __ ---- ------ - 2,610 Motor cycles, including all motor vehicles of three wheels or less, e. g., package carriers, etc ------------------ -— _ --- —--- 862 Total — __-___ ____ --------------- - 3,472 WATER SUPPLY. Artesian wells, deep wells completed by the bureau of public works, calendar year 1914. Total otalin Total cost, Number, depths in gallons including Num r. meters.m per depreciameters. minute. tion. Successful: Flowing................................................. 42 4,988 1,496 -86,228.75 Flowing....... -—.. * --- —- * 42 4,988 1, 496 pS6, 228.75 Pumping............................................. 61 6,937 2,668 132,038.28 Total.103 11,925 4,164 218, 267.03 Unsuccessful............................17 3,208........ 66,312.45 Successful wells driven by provinces, calendar year 1914. Number. Depths inmar meters Remarks. Flowing........ 47 2,832 Pumping....1...... 122 JAll of these wells were driven by jet-boring rigs. Total........ 48 2,954 NOTE.-Total cost figures for these jet-rig wells are not given because accounts available to the bureau do not cover all wells drilled, and because such accounts as are available make no charge for a considerable amount of labor furnished voluntarily and no allowance for depreciation and cost of supervision. Successful artesian wells in existence, 9k-year period. June 30, 1,905 --- —June 30, 1906 --........______ June 30, 1907 -----—...._-___ June 30, 1908 -------— ______June 30, 1909 —. ----________June 30, 1910 -—. --- —______ 2 June 30, 1911 673 ---- -.. —.- 526 5 June 30, 1912 -_,- -81-__ 673 54 June 30, 1913._....... ---.... 818 68 December 31, 1913-. --- —-- 902 151 December 31, 1914 —.-, —.. 1053 302

Page  187 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 187 MUNICIPAL WATER SUPPLY. Projects completed in 1914 in addition to artesian wells. Province. Municipality. Name of project. Populatio Cost. _~ ~ ~ ~ ~~~rTmopoct IA_ _, ______. Tayabas.......... Sariaya........... Sariaya waterworks................. 4,160 P37,843.73 Tayabas......... Boac, Marinduque. Boac waterworks.................... 4,000 6,618.70 WATER SUPPLY IN THE DEPARTMENT OF MINDANAO AND SULU. Seven successful wells have been drilled in the period January 1 to December 31, 1914. In addition to these three other successful wells were driven prior to 1914. The wells are all in the province of Agusan and are included in the statistics above. The principal other water-supply improvements in existence in the department on December 31, 1914, were as follows: Zamboanga.-Open canal constructed by the Spanish administration. Jolo.-Two systems exist-one constructed by the United States Army and consisting of a pumping plant and a 240,000-gallon tank, with a 6-inch connection to the walled city of Jolo, the other built by Spanish administration and comprising a small dam, a 4-inch pipe line, and a public fountain. Siasi.-A gravity water system constructed by the United States Army and consisting of a small dam, a 2-inch pipe line, and four and five public fountains. Parang, Cotabato.-A pumping plant connected to a steel tank supplies the municipality with house connections and hydrants. This work was constructed by the United States Army. Camp Keithley.-United States Army pumping plant. Camp Overton.-United States Army gravity water supply. Isabela, Basilan.-A large lime-masonry reservoir fed by springs. ROADS. Length of road in existence and increase for 1914. [Decreases are in brackets.] Kilometers ofFirst- Second- Third- Totaclass class class ota Trail. road. road. road. roads. Dec. 31 1914.................................. 2,564.0 2,024.3 2,875.7 7, 44.0 915.8 Dece 31,1913............................... 2,233.8 2,024.6 3, 138.7 7,397.1 378. 4 rease during 1914................................ 30.2 [.31 263. 0] 6.9 537. 4 PNOTE.-All figures include Benguet Road, City of Baguio, and Romblon, Masbate, and Abra iroriices. The 1914 figures also include the Provinces of Zamboanga the portion of the Naguilian-Baguio oa, in the Mountain Province and the Manila-North road in the Subprovince of Amburayan. In the 2 pTrtment of Mindanao and gulu there are about 80 kilometers second class, 199 kilometers third, and,g00 kilometers of trail. None of this is included in the above tabulation except the 54.4 kilometers of on class, 15 kilometers of third class, and 141.9 kilometers of trail in the Province of Zamboanga.

Page  188 188 REPORT OF THE PHILIPPINE COMMISSION. Relation of first-class road construction and maintenance. Designated first-class road at end of year. First-class road constructed during year. Fiscal year ending Kilometers. June 30, 1908........................................ 397.0 June 30, 1909...................................... 553.5 June 30, 1910......................................... 916. 6 June 30, 1911........................................ 1,423. 6 June 30, 1912.......................................... 1,780.3 June 30, 1913........................ - - ----- 2, 035. 4 Dec. 31, 1913 (period of 6 months).................... 2,171. 6 Dec. 31, 1914................................. 2, 495.5 Kilometers. No data. No data. 249.0 357.4 291.4 257.6 136.5 330.2 Average maintained throughout the year by the Caminero system. Kilometers. No data. No data. 963.4 1,441.7 1,785.3 1,976.3 2,146.3 2,317.6 Road maintenance. Caminero system. Gang system, excluding Benguet Road and department of Mindanao and Sulu. Calendar year. Average maintained. Kilometers. 2,317.6 2,060.3 Total cost. Maintained. Total cost. Total maintenance, excluding Benguet Road and department of Mindanao and Sulu. Kilometers. 4,736.4 3,782.0 954.4 Total cost of road maintenance. Pesos. 1,496, 737.84 1, 414,840.92 81, 896.92 -. Pesos. Kilometers. Pesos. 1,098,082.54 2, 418. 8 398,655.30 1,077,130.26 1, 21.7 33', 710.66 1914........................ 1913.................... Increase during 1914... 257.3 20,952.28 697.11 60,944.64 Average cost of caminero system per kilometer, maintained 1 year. Calendar year 1913-. --— _________________.____________- 522. 80 Calendar year 1914 --.-_______________.________ —__-_ 473.80 Road-maintenance costs, 5i-year period. Fiscal year ending Average cost per kilometer per year, excluding Benguet Road. Caminero Gang system. system. Total expended on road maintenance under bureau of public works supervision including Benguet Road, but excluding Mindanao and Sulu. June 30, 1910............................................... 570. 02 () (2) June 30, 1911 492. 02.112. 87 1 119 June 30, 1912............................................. 463.20 143.00 1,415, June 30, 1913....................................555.00 127.53 1,579, Dec. 31, 1913 (6 months only)................251.39 100. 45 839 Dec. 31, 1914.................... 473.80 164. 82 1,548:. — 703.53 )150.53 104.82 981. 6 573.85 1 No data. 2 Incomplete data. MAINTENANCE OF ROADS AND TRAILS, DEPARTMENT OF MINDANAO AND SULU. The charges to maintenance of roads, bridges, and trails for 1914 totaled P66,751.67 for five of the seven Provinces. Figures for Agusan and Bukidnon are not available.

Page  189 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 189 BRIDGES. Durable bridges and culverts in existence and increase for 1914. All durable structures. Year endingTotal Total menumber. ter span. Dec. 31, 1914.....................................................,206 23,973.12 Dec. 31, 1913...................................................................... 5,906 2 Dec. 31,1913 ------—.. ----------------------------..5,901 21,034.60 Increase during 1914.................................................. 305 2,938.52 NOTE.-All figures include Benguet Road and city of Baguio, also Romblon, Abra and Masbate. The 1914 figures also include the Provinces of Zamboanga and Lanao, the portion of the Naguilian-Baguio Road in the Mountain Province, and the Manila-North Road in the sub-Province of Tagudin. Reinforced-concrete structures in existence. Total Total meFiscal year ending- Total Total me June 30, 1911.......................................................... 2,004 7,709.09 June30, 1912.................................................................... 2,350 9,215.69 June 30, 1913................................................................. 2,854 11,223.74 Dec. 31, 1913 3....0 6......1....................................... 3,046 11,984.46 Dec. 31, 1914................4.......................................... 3,247 13,071.04 NOTE.-The term "Durable bridges and culverts" includes structures of reinforced concrete, steel, brick, and all substantial stone structures, whether of adobe or other material. All of the reinforced-concrete structures were built under American administration, together with a large number of steel and miscellaneous structures. DEPARTMENT OF MINDANAO AND SULU. The department engineer reports the following durable bridges in existence in Zamboanga and Lanao Provinces on December 31, 1914: Number. Total meter span. Concrete S teel o a................................. Total....................................................................... Total....................................................................... 5 2 7 50.3 184.6 234.9 These figures are exclusive of a Spanish suspension bridge at Pantar, Lanao, for which the figures for the length of span are not available. No durable road structures were reported for the other five Provinces of the department.

Page  190 190 REPORT OF THE PHILIPPINE COMMISSION. FINANCIAL STATEMENT. Distribution of expenditure. Provincial, Purpose. Insular. municipal, Total. and other. Roads and bridges.............................. P2,349,312.13 P3,303,124.81 P,5,652,436. 94 Buildings............................................... 1,778,652. 88 924,833.06 2, 703, 485.94 Port works......................................... 389,776. 69 1,756. 50 391,533.19 W ater supply....................................... 318,703. 79 133,309.64 452,013.43 Miscellaneous......................................... 598,150.93 96,672. 57 694,823.50 Total................................. 5,434,596.42 4,459,696.58 9,894,293.00 NOTE.-The insular figures include aid given to provinces and the amount by which the legal surcharge failed to cover the actual expenses of supervision. (Act No. 2319.) Comparison with the calendar year 1913 is not possible because the accounts were not balanced on December 31, 1912. The figures in the second column include loans, the provincial surcharges, and the insular surcharges on provincial and other work. The figures above are exclusive of expenditures in the Department of Mindanao and Sulu, where P363,596.92 were expended on the public works during the calendar year 1914. A total of P2,820,984.46 was expended for department of public works between September 2, 1903, and December 31,1914. Port works includes harbor improvements and improvement of Pasig and Iloilo Rivers. Revenue earned by the bureau from operation accounts. New fiscal year July 1, 1913, to Source of revenue. 1914 (calendar Dec.31,1913 (fisyear 1914). cal y ar 1914). _ ~ ~~~~~~~~. _l Carried to bureau account............................................................... P368,842.39 Surcharges............................................ P375,076. 23 Miscellaneous: Blue-print section............................... P6,119.55 Photo section...................................... 1,117.52 Rental of baggaga room............................ 944.00 Miscellaneous receipts, Manila....................... 1,555.45 9, 736. 52 Receipts from operation prior fiscal year............................. 2,611.39 Gain on sales of fixed assets......................................... 201.45 Loss on sales of supplies....................................... (398. 57) Not carried to bureau account........................................................... 91,224. 85 Benguet auto line................................. 1P196,731.87 Regulation of motor vehicle traffic.................. 16,335.00 Cottages and dormitory, Baguio...................... 12,303.78 Water supply systems............................. 9,497.50 Panay auto line..........................1....... 11,301.44 Operation of Baguio storehouse................... 7,159.65 Baguio telephone systems.................. 6,093.88 Benguet Road toll collection.......................... 6,646. 64 Corrals......................................... 3,027.04 Miscellaneous receipts, Baguio....................... 5,639.88 274,736.68 I Total...................................................... 661,963.70 460,067.24 Profit and loss account, bureau, of public works, fiscal year ending Dec. 81, 1914. DEBIT. Salaries-_______-___ --- —------— __ 613, 777. 95 Maintenance of equipment —.-_ _. ----___-_ _______ -- - 18,660.79 Contingent expenses__ -1___ --- — -_ --- — --- --— ___ _ 123, 697.40 Depreciation of equipment________ ------------— _- 45,359.28 Extraordinary expense, losses, section 49, act No. 1792___________ 1,023.97 Loss on sales of supplies_____-__ --- —--- --— _ ----____-_ 398. 57 802, 917. 96 CREDIT. Surcharges ---____ —___ ___-_ --- —---------- -------------— ___ 375, 076.23 Miscellaneous receipts -___ ---- ------ -------------- 9, 736. 52 Receipts from operation prior fiscal year -------— _-_ _ ---- 2, 611 39 Gain on sales of fixed assets ------— __ -_ - ------— ____ ___ 201. 45 Net cost of operation —___ -______-_ —__- ____ — — _ _ - 415, 292. 37 802, 917.96

Page  191 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 191 Summary of operation account, bureau of public works, fiscal (or calendar) year 1914. DEBIT. Net cost of operation ------— _____ --- —------ 415, 292. 37 Purchase of equipment ----__- -_ --- —------------- 20, 606.79 Reverted to insular treasury_-______ --- —----------- 798, 371. 93 1, 234, 271. 09 CREDIT. Appropriation --- —------------- ------- 1, 057, 836. 00 Emergency board --- —------------------------ 1, 010. 67 Liquidation of fixed assets ------- ------------------ 174, 591. 91 Assets brought into account -----— _________ --- --- --- 832. 51 1, 234, 271.09 Assets and liabilities, bureau of public works, Dec. 31, 1914. ASSETS. Cash in the hands of disbursing officers_____ --- —__ ---- - P106, 312. 28 Supplies___ --- —--------------- - -_ 470, 201.31 Accounts receivable__ --- —---------------- - 247, 025.43 Permanent improvements --- —- - -------------- ---- 744,149.18 Equipment —_ — ---- ----— _ P2, 221, 356. 58 Less provision for depreciation - _ ---- --— _ 928,132.34 -1,293,224. 24 2,860, 912. 44 LIABILITIES. Cash from insular treasury___ --- —-------------- -- 566, 686.69 Accounts payable --- —------------- ------------------ 256,852.33 Capital account — --------------------- 2,037, 373.42 2,860,912.44 BUILDING WORK. The figures in the tabulations below exclude all structures of less than 100 cubic meters capacity. Markets and schools completed. Markets and tit ndas. Schools. Calendar year. Percentage Percentave Completed. reinforced Completed. reinforced concrete. concrete. 1914 51 (1) 69 (') 1913.........,.,,,,,,,..1,,,),,,,........ 37 _. Increase......................................... 14 () 18 () 1 Figures not available at time of rendering report. NOTE.-Buildings are classified under reinforced concrete when the outside walls, or in the case of mar. kets the interior posts, are of that material.

Page  192 192 REPORT OF THE PHILIPPINE COMMISSION. Summary, four and one-half years. Buildings completed. Fiscal year 1911_ --- —---— _ --- —--------------- 158 1912-__, --- —-------------------------- 181 1913 --- —-— _ --- —--------------- 144 1914 (only 6 months' duration) ---------------------- 54 New 1914__ --- —--------------------------- 136 BUILDING WORK IN THE DEPARTMENT OF MINDANAO AND SULU. The department engineer reports the following important items completed during the calendar year 1914: Department high school, Zamboanga --- —--- --------------- 23, 619.49 Guard quarters, San Ramon, Zamboanga_____ --- —--------- 5,415. 54 Granary and copra dryer, San Ramon, Zamboanga --- —------ 1,882.90 Cottage 2, San Ramon, Zamboanga --- —-- --------------- 5, 762. 26 NAGUILIAN AND BENGUET ROADS. In October, 1913, this bureau recommended that a first-class road be constructed to Baguio from Bauang, on the west coast, through Naguilian to Baguio. This recommendation was based on the expense and difficulty of maintaining the Benguet Road as well as the reluctance of either branch of the Legislature to appropriate money for the same. The matter was investigated by a committee appointed by the Commission, composed of Messrs. Singson and de Veyra, who, after a careful investigation and after full consideration of the data submitted by this bureau, recommended the construction of what is commonly known as the Naguilian Road. In accordance with this recommendation, the Commission appropriated P100,000 for a part of the necessary work, and the actual construction of the road was commenced in February, 1914. At that time there already had been constructed a first-class road from Bauang to Naguilian (8 kilometers), a second-class road from Naguilian to Ripsuan (7 kilometers), a narrow cart road (passable for light automobile traffic in the dry season) from Ripsuan to Urisan (28 kilometers), and lightly surfaced road from Urisan (8 kilometers). On March 31, 1915, the project will be completed, so far as the road itself is concerned, and there will then be a first-class road from Bauang to Baguio, a distance of 50 kilometers, the road having been somewhat shortened, owing to improved location. To complete the project, there will only be necessary two bridges, one over the Ripsuan River at a reasonable cost and one over the Naguilian River at a very high cost. A collapsible bridge over Ripsuan and a cableway at Naguilian will enable traffic to use the road during the rainy season, pending the construction of the bridges. Appropriations to date from insular funds have been as follows: Allotment from special province funds by the secretary of the interior______ --- —----------------- 23, 189. 23 Act No. 2312-Jan. 15, 1914 --- —---- ----------------- 100,000.00 Act No. 2397-Mar. 10, 1914- --------- ----------------- 135, 000.00 Act No. 2411-Sept. 16, 1914_____ — _ --- —------------- 60, 000. 00 Total ------ ---------------------------- 318, 198. 23

Page  193 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 193 By Act No. 2440, dated January 5, 1915, P52,000 was appropriated for maintaining the Mountain Province portion of the road during the fiscal year 1915. On the main section of this road, that is, on the section between Baguio and Ripsuan, there had been spent from these appropriations at the close of the fiscal year 1914, 1r300,042.75. The total cost of the project is somewhat difficult to get at, but approximately as follows: Bauang to Naguilian_ --- —-----------.. -- 171, 109. 38 Naguilian to Ripsuan____ —_ --- —-------------- 97, 779.59 Ripsuan to Baguio: City of Baguio --- —----------------------- 58, 743. 27 Expenditures under supervision of government of Mountain Province --- — ----------- 85, 017. 85 Expenditures under supervision of bureau of public works --- —----- -------------- 318,198. 23 461, 959. 35 Total --- —------ ------------- -- 630, 848. 32 The total cost of the Benguet Road, length 45 kilometers, was 93,923,694.10, averaging V87,200 per kilometer. The construction of steel bridges at Ripsuan and Naguilian (estimated at P390,000) will bring the total cost of the Naguilian Road to about P1,021,000, or an average of r20,400 per kilometer. In comparing the cost of the two projects, however, it must be borne in mind that work can be done now much cheaper, owing to experience and to improved organization, than was possible during 1901-1905, the period of the construction of the Benguet Road. In comparing the relative advantages of the two roads it must also be remembered that the Benguet Road is the shortest route from Manila and that it established wagon communciation for the first time between Baguio and Dagupan, at that time the terminal of the railroad and the nearest railroad station to Baguio. Had the Naguilian Road been built at that time it would not have put Baguio in communication with the railroad, which was not extended north to Bauang until some years after the Benguet Road was started. But even making these allowances, it seems that the Naguilian route is the best and cheapest for a roadway into Baguio, and that it would have been better if it had been selected originally instead of the Bued Canyon, the location of the Benguet Road. Hindsight, however, is proverbially easier than foresight, and with the limited information possessed by the original investigation it is not difficult to see why the Bued Canyon was selected. It is believed that the maintenance of the Naguilian Road will be much cheaper than that of the Benguet Road. The selection of a ridge instead of a canyon location in a country subject to the enormous rainfall of the Benguet Mountains (it has reached 46 inches in 24 hours) and the elimination of the very large number of bridges necessary on the Bued Canyon route are sure to reduce the cost of upkeep and furnish a road on which there will be much less interruption of traffic from the effects of the heavy rainfall that usually accompanies the typhoons. 8329-15 — 13

Page  194 194 REPORT OF THE PHILIPPINE COMMISSION. In short, it is believed that the Naguilian Road will be cheaper both in first cost and in maintenance than the Benguet Road and much more satisfactory in service. At the same time it must not be overlooked that an excessive rainfall and an unstable geological formation are to be encountered on the Naguilian as well as on the Benguet Road, and that storms like those of July and September, 1911-not to mention others in 1909 and 1910-will do great damage to the Naguilian Road. But the cost of repairs and the length of interruption to traffic should be much less than on the Benguet Road. The Benguet Road was opened to traffic in the latter part of the fiscal year 1905. Since that time its cost by fiscal years has been the following: Maintenance of Benguet Road, nine and one-half year period. 1906 (old fiscal year)__ --- —-____ ---__________.__ —_- - P128 879.24 1907 (old fiscal year) _______-.- _____ --- —_________ ___ 84.916.55 1908 (old fiscal year)__ --- -----— _ --- —-------- - 164,363.65 1909 (old fiscal year)-___ _ ___-. _ ---_ ---____-____ - 299,947.19 1910 (old fiscal year) -—,__ --------------------------- 358, 685.82 1911 (old fiscal year) —__,-__-,_ ---- -— ___ ---______ 166.528. 4 1912 (old fiscal year)_____ ---— _-_____ --- —------- 253. 471.58 1913 (old fiscal year) -,__ --- —------------------ 179, 276. 2 1914 (fiscal year, 6 months). - --- -------------— _ 129, 768.01 1914 (new fiscal year) ---__ --- —-------------. — 51, 836.01 The above cost includes both maintenance and improvements (including the construction of five steel bridges and various concrete and masonrv work) and the cost of restoring the road after the tremendous damage done it by various storms. The low cost in 1914 is due to the fact that the 1914 rainy season did less damage to the road than any since construction was started, and to the fact that bridges are not being replaced; in fact, they are not being maintained in good condition. The only repairs now made are of a provisional nature, and sufficient only to keep the bridges safe for the reduced loads now permitted. As bridge repairs and replacements used to form one of the heaviest items of expense in the upkeep of the road, the adoption of a policy of provisional repairs only has greatly reduced the cost. If, however, the road were to be kept open to traffic in the future, the time would come when a very heavy expenditure would be necessary for bridge replacements. At the present time the Benguet Road is maintained entirely from toll receipts.

Page  195 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 195 BUREAU OF POSTS. DIRECTOR, WILLIAM T. NOLTING; ASSISTANT DIRECTOR, WILLIAM G. MASTERS. Officers and employees of the bureau at the close of the year. Americans. Filipinos. ------ Total, Total, Classi- Unclas- Classi- Unclas- 1914. 1913. fled. sified. fled. sified. Director.......1I.............................................1 1 Assistant director........................1.................. 1 Superintendents...33.............6..............................3 6 6 Cashier......................................................... 1 1 Disbursing officer.......................1...................... 1 1 District inspectors................................... 11 2............... 13 6 Clerks................................................... 10 1 217 13 241 240 Railway postal clerks................................................. 13 Sten'graphers...................................... 5 1 10 8 Translatrs....................................... 1 1...... 2 2 Postmasters.......................................... 3 16 2 663 684 660 Telegraph operators.......2........5................... 235 252 276 Mechanics........................................... 2 2 12 16 14 Linemen...................................... 1 39 259 299 310 Enginem en........................................................... 7 8 8 Teamsters and drivers................................................ 14 14 13 Letter carriers, Manila...........30........................ 30 30 Letter carriers, Prsvinces.............................................. 549 549 548 Emplbyees, office of director.................................................. 24 24 23 Employees, post offices.-......................................... 140 140 145 Stamp agents....................................................... I........ 16 16........ Mail contractors and messengers....................... 5...... 313 318 318 Total........................................... 40 82 269 2,246 2,637 2,624 Changes in personnel, not including mail contractors and messengers. Americans, Filipinos, Total, Total, fiscal 1914. 1914. 1914. year 1913, July 1-Dec. 31. Appointments..................................... 22 988 1,010 520 Reinstatements.................................... 15 6 2 Removals.......................................... 4 144 148 78 Resignations: Due to economy......................... 32............ 32................ For other causes............................... 48 768 816 352 Transfers: To bureau..................................... 4 2 6 3 From bureau.................................. 2 3 5 Deaths............................................. 2 6 8 4 Number of American and Filipino officers and employees, exclusive of mail contractors and messengers, at the time of rendering reports submitted to show relative number of Americans and Filipinos employed. Amen- Filip^- Total. Expenditure, Dates. calns. no. Total. salaries and Dates. cans. nos. wages. June 30, 1905...................................... 156 456 612 P439,161.33 June 30, 1906.................................................... 223 780 1,003 531,959.57 June 30, 1907..................................................... 210 881 1,091 628,422.88 June 30' 1907."""'"""""""""""""""""". 210 881 1,091 628,422.88 June 30, 1908..................................................... 237 1,128 1,365 756,142.94 June 30, 1909................................. '......... 201 1:166 1,367 742,842.68 June30 1909.""""""""""""'""""""""'""" 201 1,166 1,367 742,842.68 June 30' 1910............................................... I 191 1,380 1,571 790,512.63 June 30 1911................................... 194 1, 704 1,898 879,794.92 June 30, 1912................................................. 190 1,858 2,048 932,243.69 June 30, 1913...................................................... 179 2,047 June 30'1913.1""""""""""'""""""".'-. l79 2,047 2,2?6 1,990,754.09 Dec. 31, 1913..................................................... 178 2,128 2,306 679,655 98 Dec. 31, 1913.........."........................................ 1178 2,128 2,306 679,655.98 Iec. 31, 1914..117 2,202 2,319 1,267,278.58

Page  196 196 REPORT OF THE PHILIPPINE COMMISSION. The expenditures shown for the years prior to 1913 do not include salaries and wages of teamsters and chauffeurs, cable employees, mechanics, linemen, and laborers, nor the money value of unpaid accrued leave. The number of Americans employed at the close of the year 1914 was 61 less-or 34.2 per cent less-than the number employed at the beginning of the year. The total annual salaries of the Americans separated from the service was P171,700. The increase in the number of Filipinos employed was 74, or 3.4 per cent. Number of post offices, money-order, savings-bank, and telegraph offices, and municipalities with free-delivery service at the close of the year. MuniciPost Money- Savings- Tele- palities Dates. offices. order bank graph with free offices. offices. offices. delivery service. Dec. 31,1914......................................... 685 302 439 303 447 Dec. 31, 1913...................................... 661 285 437 293 449 Increases................0....... 24 17 2 10........ Decreases................................................... 2 POSTAL DIVISION. Free-delivery letter-carrier service was discontinued in two municipalities, making a total of 447 municipalities in which this service was in operation on December 31, 1914. The cost of this service, outside of Manila, was P91,111.07, an increase of P2,010.52, or 2.2 per cent, over the previous year. The letter carriers in the city of Manila delivered 2,934,780 pieces of mail, an increase of 7.5 per cent over the previous year, and collected 3,016,828 pieces from street letter boxes, an increase of 17 per cent. The number of articles bearing special-delivery stamps and delivered by special messenger in Manila amounted to 19,112. The mail advertised in Manila amounted to 22,450 pieces, of which 1,729 pieces were subsequently delivered, the balance being turned in to the dead-letter office for disposition. During the year 10,936 collect-on-delivery packages were handled, an increase of 7,164, or 189.9 per cent, while the collections amounted to P101,161.51, an increase of P'58,052.21, or 134.4 per cent. One branch post and telegraph office for the transaction of all classes of postal business and 16 substations for the sale of postage stamps and the registration of mail matter were established in Manila. The number of articles registered at the stations was 3,615, and the amount received from the sale of postage stamps was P12,969.83. For the convenience of the public, on July 1, 1914, facilities were provided in the Manila post office for the wrapping of parcels. A uniform charge of 10 centavos is made for each parcel wrapped, and a charge of from 25 to 50 centavos is made for each box or mailing tube furnished. During the six months a total of 985 were handled, 824 of which were wrapped during the last three months, while the total revenue derived from this source was P125.91.

Page  197 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 197 During the year a parcel-post convention was executed with French Indo China for the exchange of parcels between the two countries, and negotiations are now under way for such conventions with Japan, Singapore, Macao, Australia, and the German post office at Shanghai. An effort is being made to arrange for the exchange of such parcels with Netherlands East Indies, Siam, Ceylon, and India through the intermediary of either the Hongkong or Singapore offices. At the beginning of the year 75 publications printed in the islands were listed as second-class matter and 6 newsdealers held permits to mail publications at the second-class rate of postage. During the year 11 new publications were admitted and 13 publications were discontinued, so that on December 31, 1914, there were 73 secondclass publications and 6 registered newsdealers. The amount of second-class postage paid was t118,412.76, an increase over the previous year of I1,104.71, or 6.3 per cent. The following is a summary of the registered mail handled: Calendar Fiscal Increase year year or de1913. 1914. crease. ___ Per cent. Pieces of mail registered at Philippine offices............................. 597,595 644,494 + 7.8 Pieces received from the United States................................... 42,796 27, 738 -35.0 Pieces received from foreign countries............................ 7 8,389 70,010 -10.7 Pieces sent to the United States..............................-.......... 77, 021 72, 481 - 5.8 Pieces sent to foreign countries.......................................... 51,595 52, 972 + 2. Pieces sent from one Philippine office to another Philippine office........ 468,979 519,041 +10.6 Pieces handled by the Manila post office............................. -599,212 647,959 + 8.1 In addition, there were received 8,742 insured parcels originating in the United States addressed for delivery in Manila. The exchange of mails with the United States and foreign countries is summarized as follows: Calendar Fiscal year year 1913. 1914. Number of mails dispatched from the United States and received at Manila......... 104 97 By transports.................. ----............................- -- ----....................12 13 By liners.......-......-..... — --- ------------- -- -- ---------- --- -- 92 84 Number of arrivals -.... ------—........ --- —---------------- --- -- -- ---- --- 87 69 Number of pouches of letters received from the United States...................... — 998 964 Number of pouches and sac'cs of rezisters received from the United States.......-... 1,759 1,247 Number of sac':s of papers and merchandise received from the United States........ 24,057 24, 764 Number of mails sent to the United States....... —....................- ------- ----- 12 84 By transports........................-.......... --- — --- ----- ------- - ------—.................. ---- 12 13 By liners...................... --- —-.... —.. --- —. --- —------------ 9-*-" 7 71 Number of arrivals therein..... ------------ - ---- -------. 4 Number of pouches of letters sent to the United States.... -.. --- —--- -- - 88 849 Number of pouches and sacks of registers sent to the United States 2....-.4 —8 —8 Number of sack's of papers and merchandise sent to the United States.. -.. —. ---- -- 2, 784 2, 687 Number of bans sent to United States ships and troops in forein countries.-..- -- 61 313 Number of bags received from United States ships and troops il foreign countries.. 217 251 Number of mails received from foreign countries............................ --- —----- - 3 599 Number of bars received from forei..n countries. 97 —1-5 --- —( --- —2 --- —------- 7 843 Nulmber of mails sent to foreign countries..... -- ---- ----- - - - ------- - --- 26 3, 05 Number of bar^s sent to foreign countries.....................................4....... 4, 23 605 Net wei ht of letters, grams, sent to foreign countries......................... 11,262,45 9, 724,502 Net weicht, grams, of other articles sent. 24 —87 --- —-4-2 ---4 --- —------------- ---- 27746 24,103,400 Number of parcel-post pac'-a(es sent to foreign countries... -2 --- —-------------- 365- I 3 28 Number of parcel-post packages received from foreign countries...... --- —.. --- —-- 7,80 5. 6 Owing to the interruption of regular service, due to the European War, the number of mails received from foreign countries was 64 less than the number received during the previous year, while there was a

Page  198 198 REPORT OF THE PHILIPPINE COMMISSION. decrease of 89 in the number of mails dispatched to foreign countries. The decrease in the net weight of letters sent to foreign countries was 1,537,953 grams, and the decrease in the weight of other articles 3,375,346 grams. The following is a summary of articles received and disposed of in the dead-letter office: Registered Ordinary Orrinary Tota. articles. letters. packages. ARTICLES RECEIVED. FromUnited States........................................ 3 1,805 15 1,823 Foreign countries................................ 25 3,297 319 3,611 Manila post office and other Philippine sources......... 434 50,329 1,027 51,70 Returned after attempt to find senders..00................... 3,400........... 3, Total accounted for................................. DISPOSITION MADE. 462 58,831 1,361 60,654 _ Returned to United States............................................. 2,775 170 2,945 Returned to foreign countries..............................-., 3,560 300 3,860 Request matter returned to senders in the Philippines... 66 2,397 196 2,659 Ojene I and returned to senders........................................ 27,262 83 27,345 Containing money, drafts, stamps, etc., returned to senders............ 85....... 85 Containing other valuable matter returned to senders................ 1 2 3 lDestroye 1........................................... 12 22,687 587 23,286 Containing money, drafts, stamps, etc. filed......................... 52........ 52 Containing other valuable matter, filed..................... 384 12 23 419 Total accounted for................................ 462 58,831 1,361 60,654 At the close of the year there were on file in the dead-letter office 751 registered articles and 91 letters containing money, drafts, or stamps, and 1,201 letters and packages containing other valuables. During the year money to the amount of P139.55 was taken from letters which had been on file more than one year and turned into postal revenues as miscellaneous receipts. MONEY-ORDER DIVISION. The following is a comparative statement of the money-order business for the calendar year 1913 and the fiscal year 1914: Calendar year Fiscal year 1913. 1914. Number of orders issued payable in the Philippines................ 220,943 254,880 Amount of same...................................... P13,524,226.56 14, 880, 007.02 Fees on same................................................ P64,020. 22 P72,685.42 Number of orders issued payable in the United States and other countries......................................................... 71,769 70,683 Amount of same......................................... 3,668,084. 86 3,80, 714.06 Fees on same....................................................... P32,731.08 P33,389. 92 Number of Philipy ine orders paid and repaid here.................. 215,458 255 070 Amount of same.................................................... P13,346,075. 22 P14,869,831.82 Number of or ers of the United States and other countries paid in the Philiprine Islands................................................ 10,685 10,448 Amnunt of same................................................... 1543,461.64 P547,852.74 Amnolnt of Philippine orders paid in the United States and other countries..................................................... 3,921,537.16 3,846,930. 66 De o;its of money-order funds received at Manila from provincial offices............................................................. 10, 552,260. 54 11,420,832. 26 The money-order service was established at 17 additional offices. The total number of all orders issued was 325,563, an increase of 32,851, or 11 per cent, and the amount of these orders was s1?,684,721.08, an increase of P1,492,409.66, or 8.6 per cent. The fees

Page  199 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 199 amounted to 9106,075.34, from which VP258.51, to pay the cost of bank exchange in settlement of balances due Hongkong, was deducted before these fees were transferred to the postal funds, as provided by law. The foreging statistics of money orders issued and paid in the islands include 9,621 telegraphic transfers by means of the moneyorder service, amounting to P2,.3C0.741.16. upon which the moneyorder fees amount to P8.697.77, and P16,158.50 for the telegrams required to make the transfers. The amount of the transfers shows an increase over 1913 of 10 per cent, money-order fees of 17 per cent, and telegraphic tolls collected of 23 per cent. The total amount of money orders sent out of the islands by means of the money-order service was: —3,804,714.06, being an increase of 4 per cent. As the amount of United States and foreign orders paid in the islands was only iP547,852.74, the balance against us is P3,256,861.32. TELEGRAPHT DIVISION. The following is a summary of the telegraph business: Calendar year 1913. Fiscal year 1914. Telegrams sent. --- -- - ___- Number. Value. Number Value.. ____ ___ _ Insular, provincial, and municipal, official............. 99,206 Weather bureau..................................40.321 Federal Government, official....................... 8. 833 Commercial.............................. 520.105 Total............................................ 68, 465 P99.033.46 65 647 98 13.9i;8.00 449,678.42 90.427 32.454 5.415 563,417 691,713 P103.2f67.26 57.891.62 8.294.24 509,095.26 678.548.38 628.327.86 The number of commercial telegrams for the year ended December 31,1914, as compared with the corresponding period ended Decemnber 31, 1913, increased 8.3 per cent, while the amount of revenue thereon increased 13.2 per cent. The federal business decreased 38.6 per cent in number and decreased 40.6 per cent in amount. The insular, provincial, and municipal government, excluding the weather bureau, increased 8,779, or nearly 8.8 per cent in number, while the increase in revenue over the previous year was 14,233.80, or 4.2 per cent. The weather bureau business decreased nearly 19.4 per cent in number and decreased -7,756.36, or more than 11.8 per cent, in amount. The increase in the total number of telegrams was 23,248, or 3.4 per cent, and the increase in revenue was f5$0.220.52, or 7.9 per cent. The changes in the telegraph service are summarized as follows: Calendar Ficeal year, year, 1913. 1914. T1elegraph lines built........................, kilometers.. 62.6 543.8 Telegraph lines rebuilt.......................................... do -.... 708 812 Telegraph lines rebuilt.................................................... 100. Destroyed by typhoons...........-..-..-..... -- -—.- - '........................ Teleeraph land lines abandoned........1 -.1................. —*......... Telegraph cables laid................-... -.-.-.-.-.-. --- — -..... '............. 134. 32 Telegraph cables recovered and abandoned........-.......................... **.... 4 i 7. 77.86 Telegraph wire, at close of year................- -......8....... o... Telegraph cables at close of year..............................................-.. —.... 16 1. 74 Telegraph offices opened.......................- -.........1.. 6mber. '1* 1 4 Telegraph offices closed................. —.. — -- —.................... do... 2 3 03 Telegraph offices at close of year.......... -- -......................3-.........

Page  200 200 REPORT OF THE PHILIPPINE COMMISSION. During the year 10 additional telegraph offices were established and new lines were constructed from Balayan to Nasugbu, Batangas; Dapitan to Oroquieta, Misamis; Lopez to Calauga, via Hondagua, Tayabas; Malicboy to Laguimanoc, Tayabas; and a loop to Apalit, Pampanga. The increased volume of business made necessary the construction of a second wire from Dumaguete, Oriental Negros, to Valladolid, Occidental Negros, and from Dapitan to Misamis, Misamis, a total of 543.8 kilometers of new construction. POSTAL SAVINGS BANK DIVISION. Summary of the Postal Savings Bank Service. From July 1 to Calendar year Fiscal year Dec. 31, 1913. 1913. 1914. Number of bank offices at close of year: First class......................................... 40 40 271 Second class....................................... 268 268 168 Third class19........................... 129 129................ Total........................................... 437 437 439 Number of new accounts opened during the year....... 5,390 9,947 12,622 Number of accounts closed during the year........ 3,028 5,751 6,017 Number of accounts open at close of the year........... 42,271 42,271 48,876 Increase over prior year................-........ 2,362................ 6,605 Average amount of each open account at close of year... P'66. 76 P66. 76 P6. 81 Number of deposits during the year.................... 33,651 60,716 72,080 Average amount of deposits.......................... P48. 70 P51. 28 P50.62 Total deposits made by depositors.................... P1, 638, 739. 30 P3,113,236.40 P3,649,034.93 Annual accrued interest placed to credit of depositors at close of year..............................22,100. 83.............. P45,101.29 Number of withdrawals during year................ 17,255 32,952 39,092 Average amount of withdrawals....................... P76. 45 P86.64 PI85.65 Total amount of withdrawals........................... P1,319,189. 73 P2,854,828. 28 P3,348,253.58 Savings bank stamps sold............................... P11,538. 20 P19,077.80 P21,519.20 Savings bank stamps redeemed......................... Pl, 151.00 P19,565.00 1P20,948.00 Savings bank stamps outstanding....................... P17,618.20 P7,618.20 P18,189.40 Classification of depositors. Open New Accounts Open accounts S closed accounts Dec. 31, opened during Dec. 31, 1913. year. 1914. year. As to nationality: Americans.............................................. 5,246 2,085 1,994 5,337 Filil inos.................................................. 35,162 9,890 3,638 41,414 Europeans............................................... 1,103 356 240 1,219 Asiatics.................................................. 704 282 140 846 Societies.................................................. 56 9 5 60 As to occupation: Professional............................................... 4,598 1,222 643 5,177 Clerical..................................................... 4,688 1,645 666 5,667 Students................................................ 16,843 3,375 1,765 18,453 Mercantile.................................................. 1,769 595 261 2,103 Agriculture................................................ 1,799 552 187 2,164 Artisans.................................................... 2,572 874 368 3,078 Domestics................................................. 1,633 678 267 2,044 laborers................................................... 2,596 1,062 311 3,317 Sol iers and sailors........................................ 2,647 1,341 1,070 2,98l Policemen and firemen..................................... 682 342 112 912 Women, no occupation..................................... 1,010 397 205 1,202 Chil lren................................................... 1,159 482 137 1,04 Miscellaneous, unclassified................................. 219 48 20 247 As to sex: Male...................................................... 32,781 9,905 4,774 37,912 Female..................................................... 9,434 2,708 1,238 10,904 As to marriage relation: Married................................................... 10,486 3,930 1,535 12,Sl Unmarried................................................ 31,729 8,683 4,477 35,I93

Page  201 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 201 Statement of income and expenditures of the Postal Savings Bank. Fiscal year From July 1 1913. to Dec. 31, 1913. Fiscal year 1914. I I I I INCOME. Earnings for year collected during year....................... Accrued earnings uncollected at close of year account not due. Total.................................................. Net deficiency..................................... EXPENDITURES. Salaries and wages...................................... Expenses, personnel..................-.................. Office e penses................................... Rentals........-...................... -- ncidental expenses......................................... Total operating expenses............................. Interest paid on closed accounts.................... -..... British income tax paid on Manila R. R. Co. bonds........... Interest added to accounts at close of year as deposits......... P88,151.31 iP10, 653.95 35,237.92 55,914.61 123,389.23 66,568.56 153,762.94 5,483.22 5,425.85........ 67,581.51 40,078.82 72,485.14 265.44 160.93 2,566.45 12,927.35 5,929.14 12,142.00 2,753.90 1,443.49 2,728.16 781.29 411.55 38.95 84,309.49 48,023.93 89, 960.70 6,869.49 1,869.65 7,590.10 449.02.......................... 37,244.45 22,100.83 45,101.29 T92, 586.58 61,176.36 I_ Total........................................- 128,872.45 Net surplus......................-... —..... --- —-........ --- 71,994.41 142,652.09 11, 110.85 Investments of barit funds at close of year. June 30, 1913. Dec. 31, 1913. Dec. 31, 1914. LOANS TO BANKS. International Banking Corporation, at 31 per cent...... P70,000.00 P70,000.00 P70,000.00 Hon4kong & Shanghai Banking Corporation, at 3~ per cent............................ 170,000.00 170,000.00 170,000.00 Chartered Bank of India, Australia & China, at 3~ per cent.................................... 340,000.00 490,000.00 640,000.00 BONDS. Philippine Ry. Co. bonds, at 4 per cent.....:.......... 505,000.00 505,000.00 505,000.00 Manila R. R. Co. bonds, at 4 per cent...........-.....- 323,875.50 323, 975. 5 323., 75.50 Citv of Manila bonds, at 4 per cent.............- —..... 460,000.00 460,000.00 460,000.00 Real estate mortages, 8 per cent and 10 per cent....... 623, 798.50 751,380.00 887,500.00 Total........................................... 2,492,674.00 2,770,255.50 3,056,375.50 Assets and liabilities of the bank. June 30, 1913. Dec. 31, 1913. ASSETS. Loans to banks......................................... Bonds..................................... Real estate mortgages........ —. --- —--------------- Interest account................ —. -..*.. —*-** --- Cash in hands of postmasters....... --- — --------------- Cash in insular treasury.............. - —........... - Total.......................................... LIABILITIES. Deposit fund, due depositors..................... --- —Stamp fund, stamps outstanding........ —...... ---. - Reserve fund, earnings in excess of expenditures for year 1914............................................ Insular treasury, cash advanced from general fund to pay expenses.................................. P580,000.00 1,288,875.50 623,798.50 35,237.92 27,422.96 2,555,334.88 2,480,482.37 7,231.00 P730,000.00 1,288,875.50 751,380.00 55,914.61 33,104.22 2,859,274.33........ 2, 959, 274. 33 Dec. 31, 1914. P880,000.00 1,288,875.50 887,500.00 61,176.36 68,217.34 1,546.46 3,187,315.66 2,822,132.77 3,168,015.41 7,618.20 8,189.40 11,110.85 67,621.51 29,523.36................ 2,555,334.88 2,859,274.33 3,187,315.66 Total...........................................

Page  202 202 REPORT OF THE PHILIPPINE COMMISSION. Revenues, exclusive of the Postal Savings Bank. July 1 to Dec. Calendar year Fiscal year 31, 1913. 1913. 1914. BY ITEMS. Stamp sales for postage.............................. P318,121.16 P625,309.05 IP610,805.85 Stamp sales for registry fees............................ 45,460.00 87, 745.44 91, 18.56 Stamp sales for commissions on c. o. d. parcels......... 510. 52 897 32 2,401. 56 Miscellaneous postage paid in cash.................... 2,456.98 5,191.96i 4,928.28 Second-class postage.................................... 9,011.82 17,308.05 18,412.76 Box rents.......................................... 14, CC8. 55 30,195. 75 31,089.03 Unclaimed matter and sale of waste paper.............. 684.20 724.94 368.80 Money-order fees...................................... 47,512.02 95,106.49 105,519.05 Stamp sales for telegrams....................... 301,210.38 608,300.35 610,838.20 Telegrams paid in cash............................. 8,005.02 20,027.51 67,710.18 Miscellaneous (telegraph division).................. 56.30 56.30 3,952. 76 Miscellaneous (postal division).............................. 381.41 4,307. 85 Total................................... 747,746.95 1,491,244.67 1,551,982.88 BY DIVISIONS. Postal division...............-.............. 390,963.23 767,754.02 763,932.69 Money-order division............................ 47,512.02 95,106.49 105, 549.05 Telegraph division..................................... 309,271.70 628,384.16 682,501.14 Total............................................. 747,746.95 1,491,244.67 1,551,982.88 Comparing the fiscal year 1914 with the calendar year ended December 31, 1913, shows a loss of P3,821.33, or one-half of 1 per cent, in the postal division, a gain of P110.442.56, or 10.9 per cent, in the money-order division, and a gain of P54,116.94, or 8.6 per cent, in the telegraph division. The total revenues increased P60,738.19, or 4 per cent, while there was a decrease in the expenditures of P232,166.07, or 10.8 per cent. The expenditures for the calendar year 1913 exceeded the revenues by P655.860.00. or 45.4 per cent, while the expenditures for the year 1914 exceeded the revenues by P362,955.72, or 23.4 per cent. The following is the revenue account, bureau of posts, for the six months ended December 31, 1913, the calendar year 1913, and the fiscal year 1914: July 1 to Dec. Calendar year Fiscal year 31, 1913. 1913. 1914. Stamp sales.............................-......... Second-class postage.................................. Box rents............................................ Money-order lees..................................... Unclaimed matter, etc................................. Receipts from operation........................... Total........................................ Receipts from operation: Telegrams.......................................... M iscellaneous....................................... Total............................................. Miscellaneous receipts from operation: Postal receipts (Postal Savings Bank)............ Fines..................................... Percentage on sales............................... Telephone maintenance.......................... Sales of articles not carried as assets................ Gains on purchases................................. P665,352.06 9,011.82 14,6(8.55 47,512.02 408.80 10,793.70 P1,322,252.26 17,308. 05 30,195.75 95,106.49 449.54 25,932.58 P1,315, 664.17 18, 412. 76 31,089.03 105,549.05 3C8.80 80,899.07 747,746.95 1,491,244.67 1,551,982.88 8,005.02 20,027.51 67,710.18 2,788.68 5,905.07. 13,188.89 10,793.70 25,932.58 80,899.07 *- 2,456.98 275.40 50.80 5,191.96 275.40 91.30 4,928.28 347.44 75.51 3, 4 5. 65 321.54 445. 2(................ 281.11................................

Page  203 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 203 July 1 to Dec. Calendar year 31, 1913. 1913. Miscellaneous receipts from operation-Continued. Payment by ITichauco & Co., to cover deficit of Sisiman telegraph office............. Share of province of Batangas of Balayan-Nasugbu line.-. --............................. Acouisition of assets through receipts from operation............................................ -.... Prior year income................,.......................................... Sales of supplies............................................... Sale of fixed assets................................................................ Incidentals.............................. -t-50 P'-5.30 Total......................................... 2,788.68 5,905.07 Fiscal year 1914. P313.39 608.97 83.71 8(4. 70 1,240.68 493.82................ _ _ 13,188.89 Comparative statement of expenditures for six mnonths cndled Decem1ber 31, 1913, calendar year 1913, anid fiscal year 1914. Accounts as classified by the insular auditor. July 1 to 1 31, 1913 )ec. Calendar year Fiscal year 1913. 1914. (B) Plant and equipment: (1) Permanent buildings and structures......... (4) Wharf............................... (6) Construction of telegraph lines............... (8) I and transportation equipment.............. (10) Stationary machinery................ (11) Portable machinery, tools, etc............. (12) Furniture and fixtures.................. (13) Miscellaneous equipment.................... Total................................. (D) Salaries and wages............................... (E) Office expenses: (1) Expenses of personnel....................... (2) Transportation...................... (3) General office expenses......-........... (4) Rentals....................-........... — (5) Special service..-........................ (6) Incidental general expenses................. Total...................................... (F) Maintenance: (1) Builhiinls and structures.................. (6) Telegraph and telephone lines............... (8) Land transportation equipment...........-. (11) }'ortable machinery, tools, etc............... (12) Furniture and fixtures.................. (13) Miscellaneous equipment............. —. ---Total..................................... (C) Supplies.................................. —.. ---. (1) Prior year's expenses........... —.- ---- Capital value of fixed assets sold................... Cost of goods sold................... —............ P,3,028. 09 11, 705. 30 973. 23 2, 306. 00 128. 51 7,670. 39 11.38 P11,198. 83 24,357.13 39,612. 05 2,306. 00 1, 40t. 53 22,337. 56 1.38 P-52,905.99 1, 843.00 40, 255. 61 25, 838. 67 646. 85 28,921. 38 22,701.10 18,984. 66 96, 604. 72 121,435. 26 525,255.92 1,022. 286.36 1,194,793. 42 10, 562. 92 25,001.64 49, 530. 40 180,733.02 423,849.48 293,234.30 34, 267.96 t61,849.06 82,4S0.91 13,312. 59 26, 589. 43 27,584.70 101.49 197.44 25.46 2, 335. 36 13,391. 05 1, 9(8. 52 241,313.34 550,878.10 454,764.29 2,629. 3 6,837.11 1,760. 89 163,022. 23 405,644. 68 125,901.95 4, 69.97 6,952.20 3,100.40 775.32 893.72 172.00 8,459. 73 9,76i3. 19 2,256.09 42.94 44.56 3,899.10 179,619. 82 430,135. 46 137, 090. 43 46,956. 72 10, 700.56 44,304.86 59,214.21 57,900.59 5,121.66...............'........ ' 2492. 86 i-........................ 1,240.68 I Total expenditures.................-. - 1, 071,344.67 6 2, 147, 104. 67 1,914,938. 60 __-1 _8 __

Page  204 204 REPORT OF THE PHILIPPINE COMMISSION. The salaries and wages of linemen, cable employees, mechanics, teamsters, and laborers for the period July 1 to December 31, 1913, amounting to 114,321.24, and for the calendar year 1913, amounting to 1224,418.09, were charged to maintenance of telegraph and telephone lines (F-6), whereas for the fiscal year 1914 the salaries of these employees are included in the salaries and wages account (D), in which is also included the money value of unpaid accrued leave. Summary of accounts, bureau of posts, for the fiscal year ended Dec. 31, 191/f. DEBIT. Brought forward for contingent obligations, Dec. 31, 1913 _ — __ --- —-------- T_111, 057. 65 Appropriations: Act No. 2319- ----— ____., 925, 409. 00 Act, emergency________- - 2, 819.24 Act No. 2191 --- —-— ___ _ 52, 905. 99 Act No. 2264-____________ 50, 000.00 Act No. 2378___ ---- ___ 20, 000. 00 Act No. 2407_ ---__ --- — 35, 000.00 ------— 2,086,134.23 Appropriated surplus (supplies taken up)______ 3,167.69 Receipts from operation: Stamp sales______ --- —---— _______ _ 1, 315. 664. 17 Second-class postage —_____________ — 18, 412. 76 Box rents - ------------------------- 31, 089. 03 Money-order fees_ —__-_ ---- -- _ --- 105, 549. 05 Unclaimed matter, etc --- —---- ------ 368.80 Miscellaneous receipts --- —----- -------- 80, 899. 07 P2, 200, 359.57 1_ 551. 9R82_ 8 Total ---------- ----- 3, 752, 342.45 CREDIT. Total expenditures --- —----------------------------- - 1, 914, 938. 60 Unexpended balances: Act No. 2264 --- —__ ____ --- —------- 23. 457. 75 Act No. 2378_ — ________ --- —---- 20, 000. 00 Act No. 2407 ------------------------ 23, 014. 21 66,471.96 Reversions: Revenues --------- ---------------- 1, 551, 982.88 Unexpended balance _____ ---- __ --- — 218, 949.01 -1,770,931.89 Total ---- ------------------- 3, 752, 342. 45 Statement of assets and liabilities, Dec. 31, 1914. ASSETS. Permanent improvements, plant and equipment: Buildings and structures-________ ---- P33. 256. 95 Wharves-__ -------- ---------- ---- 1, 843.00 Telegraph and cable lines_______- ____ _ 1,570.519. 86 Land-transportation equipment-___ — ---- 40, 264.02 Portable machinery, tools, etc ---- ------- 22, 763. 55 Furniture and fixtures____- _ __ ---- --- 365,154.86 Miscellaneous equipment _____- ---- --- 23, 383. 88 - P2, 057, 186. 12

Page  205 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 205 Supplies on hand --- —______________..-_ ______ 135, 557. 61 Accounts receivable -------— _____-____ --- _ - 8, 657.13 Cash: Treasury -------- ------ ----------- 37, 747.67 Postmasters ------------- 7_ --- —_- 79. 304.70 Other officers ----------- __ —_ — -- 2, 643.79 44,200.82 Total — _ __ --- —------- 2,245, 601. 68 LIABILITIES. Accounts payable ------ -------------- 188,415. 56 Net worth, bureau of posts, Dec. 31, 1914 ----, 2,057,186.12...... 2,245, 601. 68 BUREAU OF COAST AND GEODETIC SURVEY. DIRECTOR OF COAST SURVEYS: P. A. WELKER, JANUARY 1, 1914, TO FEBRUARY 28, 1914; W. C. HODGKINS, MARCH 1 11914, TO DECEMBER 31, 1914. Officers and employees of the bureau at the close of the year. Americans, Filipinos, Total, Total, 9 1914. 1914 1914. 1913. Director.................................. 1............1 1 Accountant.....-..1 --- —----- -............ 1 1 Draftsmen-cartographers......................... 2.2 2 Clerks......................... 1 2 3 Junior draftsmen....................- -— 20 — 21 Messenger..........................................1 1 CHANGES IN PERSONNEL. Appointments.......................3... - 3 Remsta~tements.-............... --- ------—....................... ---Removals.-... —. —............ —.- -- - - -- -- ---------------. —.-....... Transfers: To bureau...............................- -............ From ureau...........................-... —. ---- -... — -....... --- —. —.. D eaths...................... —................................................................... Statetment of number of American and Filipino offcers and employees in the Bureau of Coast and Geodetic Survecy at the time of rendering reports submitted to show relatire numbers of Americans and Filipinos employed. Dates. June 30, 1905.................... --- —-- ---- ------------ June 30, 190i....................... --- —---—......... - June 30, 1907.............................................. June 30,1908................................ --- — June 30, 1909........................- ---- —.......... --- June 30, 1910............................................... June 0, 191l........................... ---- --. ---.. June 30, 1912..................... —. - —. ---—.......... June 30, 1913....................................... Dec. 31, 1913....... —..............-............. ---Dec. 31, 1914............................................... Americans. Filipinos. Total. penditures. 3 3 3 5 5 4 3 4 4 4 4 19 19 21 22 22 24 25 23 24 24 23 22 22 24 27 27 28 28 27 28 28 27 T"25,840 25,840 26,360 34,960 35,596 34,864 33,304 36, 404 37,504 118,852 37,344 1 Six months.

Page  206 206 REPORT OF THE PHILIPPINE COMMISSION. The above statement does not include the director of coast surveys, who is an officer of the United States Coast and Geodetic Survey, nor per diems paid by the government of the Philippine Islands to the officer detailed to said position by the Superintendent of the United States Coast and Geodetic Survey. Statement of accounts. DEBIT. To balance brought forward (Act No. 2264), " Launch for S. S. Research "__- ------------- --------- __3, 000. 00 To appropriation Act No. 2319, "Bureau of coast and geodetic survey "-___ — ________ --- —--------------------- 196, 230. 00 To sales of fixed assets__ - — __ --- —---------------- 25. 00 To receipts from operation: Sales of maps —__________ --- —------ P923. 00 Sales of waste property-4813 --- —------- 481. 13 ---- 1,404.13 Total_ - -____________-___ --- —----- 200, 659.13 CREDIT. Total expenditures under Act No. 2264 ----_ --- —- 2, 756.91 Total expenditures under Act No. 2319 -- __ __ --- —--- 191, 107.48 -193, 864. 39 Receipts from sales of fixed assets and receipts from operation reverted to the treasury —_ __ ____ __ --- —-- -----— _._- 1,429.13 Unexpended balance, Act No. 2264 ----— ______ _ _ --- —---- 243.00 Unexpended balance, Act No. 2319 _ --- —--------------— _- 5, 122. 52 Total_____-_______ --- —------------- 200, 659.13 Statement of assets and liabilities. ASSETS. Water craft and appurtenances_-______ --- —- - P190, 625. 05 Hand tools__-___ --- —-------— _ 810. 56 Furniture and office equipment______ --- —---- 9, 062. 75 Miscellaneous equipment-__ --- —------------- 2, 726. 77 — 203, 225.13 Supplies on hand __- ---------------------------- 267.52 Accounts receivable ---7 --- —---- _ --- —------ 797.47 Cash: In treasury --- —--------------------- 2, 826. 69 In hands of chiefs of parties______ --- —---- 18, 500. 00 - 15,673.31 Total__ ----_______ __ --- —------------- - 219, 963.43 LIABILITIES. Accounts Net wortl payable -_ _ ---------------— _I --- —-------------------------- -------------- 16, 738.30 203, 225. 13 219, 963. 43 Totnl

Page  207 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 207 Work accomplished by the different ships during the new fiscal year 1914. [All distances are in statute miles.] Path- Fathom- Marin- Rom- finder. er. duque. blon. Research. Totals. Triangulation: Square miles of area covered........ 889 5 1,288 385 1,448 4,590 Signals and scaffolds erected.......... 33 35 23 4 52 187 Station occupied (horizontal angles).. 3 29 4 32 23 154 G egraphical positions determined.... 36 36 20 53 76 221 Magne'ic stations occupied............... Base lines measured.............. 1.................. A zimuth stations occupied.................................. Topography: Souare miles area covered............. 179 77 83 117 214 670 Miles of coast line surveyed.......... 153 259 68 266 144 890 Miles rivers and creeks surveyed...... 89 17 2 4 27 139 Miles of roads surveyed........... 12 20 9 41 Topographic sheets completed....... 1 11 4 9 6 41 Hydrography: Square miles of area sounded.......... 10,580 1,251 723 1,495 549 14,598 Miles run while sounding............. 4,475 8,155 5,116 8,044 2,114 27,904 Number of soundings made........... 27,0'2 77,613 153,793 87,366 25,627 371,431 Tidal stations established............. 10 3 1 5 5 24 Fydrographic sheets completed....... 13 2 2 9 6 32 Number of days in the field. 279 215 320 319 300 1,433 The localities covered by the operations of the steamers of the bureau of coast and geodetic survey were as follows: The party on the Fathomer was employed throughout the year in the survey of the large area extending from the coast of Panay across the Cuvo Islands to the Calamian group, with additional work in the vicinity of Iloilo in an attempt to locate the position of a shoal in the southwestern approach to that port which had been reported earlier in the year by another vessel. The operations of the Marinduque were confined to the east coast of Palawan, around Dumaran Island, up to the end of November. For the remainder of the year she was employed in the survey of several shoals in Coron Bay, Calamian Islands. During the year the steamer Pathfinder was employed on several different pieces of work. From January 1 to February 4 she was engaged in the survey of the approaches to Manila Bay. After repairs at Olongapo the steamer proceeded on March 1 to the southern coast of Mindanao, where the party was engaged in a survey of the coast from Parang across the delta of the Mindanao River and southward to Port Lebak, until the end of July. During August and the first half of September the Pathfinder worked on the eastern coast of Mindanao and completed the junction, near Hinatuan, between the surveys previously executed on that coast, proceeding to the southward from Surigao and to the northward from Cape San Agustin. She afterwards made a special examination of certain parts of the Sulu Sea, particularly in the vicinity of Moyune Shoal, where the British steamship Bengloe had stranded on September 13, 1914, and of a shoal on the eastern coast of Negros. The steamer Research was employed throughout the year in the survey of the region between Masbate and southern Luzon, which includes Ticao Island. In addition to this regular work of the Party, an examination was made of a shoal in Cebu Harbor and another north of Negros, near the small Baliguian Island. The Romblon was engaged throughout the year in the survey of the region extending from the northern end of Palawan to the

Page  208 208 REPORT OF THE PHILIPPINE COMMISSION. southern end of Culion and west of the latter island. This area includes a great number of islands of various sizes, almost all of which have now been surveyed. During the year covered by this report, no change was made in the general plan of operations or in the previously existing arrangement for the division of expenses between the Federal and the Insular Governments. The five steamers in the service of the bureau were kept at work in the field continuously except when repairs became necessary, and except that toward the end of the year it became necessary to call in two of the vessels in order to avoid the possibility of overrunning the appropriation. The time so lost from the field work was utilized in repairing the vessels and in bringing up the office work of computation and drawing. BUREAU OF LABOR. DIRECTOR, BERNARDINO G. MONREAL; ASSISTANT DIRECTOR, FAUSTINO AGUILAR, JANUARY 1, 1914-DECEMBER 31, 1914. Officers and employees of the bureau at the close of the year. Americans, Filipinos, Total, Total, calendar calendar calendar calendar year 1914. year 1914. year 1914. year 1913. Director........................................................... 1 Assistant director................................................ 1 Chief clerk............................................. 1 1 Attornev.................................................. 1 1 Chief of division............................................... 1 Clerks..,.................................................. 19 19 20 M essengers............................................. 5 55 Chauffeur........-..................................-..-. 1 1 CHANGES IN PERSONNEL. Appointments: Classified service........1............................ I 1 1 Unclassified service............................... 9 9 22 Reinstatements...................................................... Removals: Classified service..................................................... Unclassified service............................. 2 2 2 Resignations (voluntary): Classified service................................................. 2 Unclassified service......................... 7 7 13 Resignations, due to economy: Un lassified service............................................... Unclassified service............................................ 1 1............ Transfers: To bureau. 2 To bureau................................................................ 2 From bureau....................................................... 2 D eaths.................................................................................... Statement of number of American and Filipino offcers and employees at the time of rendering reports submitted to show relative numbers of America(8s and Filipinos employed. Dates. Americans. Filipinos. Total. Salarye-. June 30, 1910............................................................ 17 17 16374.24 June 30, 1911............................................... 22 22 2.50 June 30, 1912.......................................... 26 26 2 8,778. 6) June 30, 1913................................................ 28 28 29,224.00 Dec. 31, 1913................... 30 30 16, (s 03 Pec. 31, 1914.................... 30 30 38,149.4::::::::::::::::::::.:::.::_:::_

Page  209 IEPORT OF THE SECRETARY OF COMMERCE AND POLICE. 209 The following comparative statement shows the personnel of this bureau during the last two fiscal years: Yew fiscal year 1914 Fiscal year 1914 (Jan.-Dec., 1914). (July-Pec., 1913). Divisions. Officers Officers Messen and em- ee and employees. gers. ployees. gers. Central office........................................... 18 2 14 1 Central office-18 2 14 1 Free employment agency, Manila.....................2 1........ 2 1 Free employment agency, Cebu........................ 2 1 3 1 Free employment agency, Iloilo............................. 2 1 3 1 Free employment agency, Ilocos............................... 1 3 1 Total................................................... 25 5 25 5 FREE EMPLOYMENT AGENCIES. The following statement shows the activities of the four free employment agencies of this bureau during the calendar year 1914: Per cent Labor- Labor- o t Free employment agencies. ers reais- ers ortered. placed. pce M anila............................................................ 3,200 2,599 81.22 Cebu.....3................................................. 337 3162 93.36 Iloilo.............................................- -- ---------- 1,300 884 67. (9 Ilocos.............................................:.................... 608 528 86. 84 Total........................8...........-...... ---.....- - 8, 501 7,173 82.00 The following comparative statement shows the activities of the four free employment agencies of this bureau during the last two calendar years: Regist Free employment agencies. 1914:ered. Per cent of- Placed. Per cent of1913 In- De- 1914 1913 In- De1913 crease crease. crease.crease. 2,471 22.78........2,599 1,29 50.17....... 4,782........ 41.19 3,162 4,271........ 35.07 2,36981.39 884 2,010........ 127.38 '399 34.37..-.... 528 303 42.61........ 10,021 17..88 7,173 7,879...... 9.84 i Manila.............................. Cebu............................... Iloilo................................ Ilocos............................ 3,200 3,387 1,306 608 Total......................... 8501 The memorandum order of the Governor General, dated August 22, 1914, is responsible for the decreases shown in the Cebu and Iloilo agencies, as immediately upon the receipt of this order no more money was expended for the transportation of emigrant laborers and per diems for recruiting agents. In Manila and Ilocos the recruiting was not suspended, as in the former the employment of laborers is largely local and entails but little expense, and in the latter it was necessary to recruit laborers for the agricultural colony at Abulog, Cagayan. Of the total of 7,173 placed during the year, 4,028 represents emigrant laborers sent by the four agencies to other localities. 8329-15-14

Page  210 210 REPORT OF THE PHILIPPINE COMMISSION. EXPENDITURES. This bureau exercised as much economy as possible, and therefore out of a total appropriation of P54,324.20 but Pt51,341.66 was expended. State ment of accounts, 191,4. DEBIT. To appropriation Act No. 2319: Salaries and wages______ --- —---------- *37, 312.20 For the purchase and repair of equipment ---____ 960. 00 For the purchase of office supplies-____________ 760.00 Transportation of officers, employees, and per diems or allowances in lieu thereof_______ _ 5,000.00 Transportation of emigrant laborers and maintenance of same- -— ____ -.________ _ 4,. 000.00 Street-car tickets —_____________ --- —---- 72.00 Ca blegrams, lpostage, and telegrams --- —__700. 00 Printing and binding_- _ ____ --- —----- - 2, 200. 00 Care and maintenance of office building -_____- 700. 00 Rent of offices____ ____ --- —-— _______ _ 1, 500.00 Telephone rentals_____-_ --- —-------- 720. 00 Incidental expenses --- —---- ---- — _ - 400. 00 Receipt from operation and sales of fixed assests — -— ______ p54, 324. 20 11.35 Total__ --- —------------------------- 54, 335, 55 CREDIT. Total expenditure_____ —___ __ -------- 49 441.609 Unexpended balance --- —---------- ---— __ — - 4, 893. 89 Total --- —-------------------------- 54, 335.55 Statement of assets and liabilities. ASSETS. Equipment: Tralnsportation equipment_ — — _ ----. ----.. — 4. 55. 01 Furniture and fixtures _-_-_ --- —--- --- - 9, 941. 47 -_____- 3P14,526. 4S Accounts receivable__________-___ ----_ --------- 120. 00 In treasury-______ — ___ --- —--------- 6, 955. 79 In other offices --- —-- ------- --- 100. 00 7, 055. 79 Total ___ --- —-------------------- 21, 702. 79 LIABILITIES. Accounts payable- -----— ___ --- —__________ 6. 206. 57 Continhent obligations__ ---- ----- - ----- --- 759. 2-2 Net worth____________ --- —------- 14. 640.48 Total____ --- —------------------ 21, 702. 27 COMPLAINT'S AND CLAIMS. The bureau, through its four offices, investigated 753 complhints, involving 1,334 laborers and workers in various trade. Their claims amounted to P20,618.05, mostly for wages due; and of this amrnont the bureau helped to recover P6,931.09 through amicable settlement

Page  211 REPORT OF THE SECRETARY OF COMMERCE AND POLICE. 211 and brought suit for P4,221.71 against the parties concerned, the balance of the claims being withdrawn for various reasons by the parties making them. LABOR ACCIDENTS. The following table shows the number of labor accidents which were investigated by the bureau during the year: Nurmber of accidents ------. —_._____________ 267 Number of victims ________ --- —--- ___________________ 291. Number of deaths___ —______-__ __ ______________________________ 60 Pertnnent disability-______ ---- ____-__ ______ ___-_-__ 1S Temporary disability_ -------— ____ __________ ___ 213 STRIKES. During the year 10 strikes occurred in Manila and the provinces. Of these, 4 were satisfactorily adjusted, but in the remaining 6 no settlement could be reached. These strikes occurred as follows: On January 17, 1914, 32 laborers in the warehouses of the Manila Railroad at Caloocan struck because free transportation to Pampanga was refused them, to which they were entitled according to their agreement, and also because laborers sent out of Manila were offered higher wages. This strike was settled at the end of 10 days to the satisfaction of both parties. On January 27, 1914, the cigarmakers of " La Grandeza " cigarette factory of Manila demanded that their foreman be discharged, alleging uncalled-for exaction on his part. The company retained the foremen and employed other workers and the cigarmakers who had refused to work for the foreman went elsewhere. On February 19, 1914, 15 typesetters in the office of El Comercio, of Manila, took offense at the manner in which they were addressed by the manager, mixed up the type, and left their work. New typesetters were employed to take their place. On March 14, 1914, 100 of the laborers employed in the Lilzon Sugar Refining Co. of Malabon, Rizal, struck because a monthly increase in wages, which had been promised them, was withheld. The increase was granted and the laborers returned to work. On April 13, 1914, the laborers employed in the branch of the "La Germinal " Co. at Malabon, Rizal, struck because the managemnent had reduced the scale of wages to the one in force in other cigar factories. The laborers remained out for eight days, at which time they returned to work. On June 27, 1914, the laborers employed in the " La Emperatriz" cigarette factory struck for the same reason as those in the " La Germinal." The manager agreed to stick to the old scale except in the case of one brand of cigars. The laborers therefore returned to work after having been out 12 days. On October 5, 1914, 16 of the regular laborers in the "El Siglo" cap and hat factory, Manila, struck because there was only enough Wolk for them for three davs a week. After six days the strike was settled by agreeing to give work every day to 12 of the laborers. On October 15, 1914, laborers employed in the " La Flor de Fidela" cigar factory, Manila, struck because the manager attempted to

Page  212 212 REPORT OF THE PHILIPPINE COMMISSION. reduce the wages. They returned to work after 12 days at the old scale, with no reduction in wages. On October 30, 1915, laborers employed in the "Helios" cigar factory, Manila, struck for an increase in wages. The strike lasted 33 days, after which some of the laborers returned to work and others went to other factories. On December 23, 1914, laborers employed in the "La Minerva" cigar factory, Manila, struck when their demand that a fellow laborer who had been discharged be taken back was not complied with. The strike lasted five days. The number of employees involved in the above strikes was 1,017, most of whom were laborers in the cigar factories. EFFECT OF THE EUROPEAN WAR. By September 1, 1914, out of 44,926 laborers employed in the different commercial and industrial establishments, the number dismissed due to the European war was 1,448. By October 1, 1914, there were 45.861 laborers employed in such establishments, making an increase of 935 over the number employed before the war, so that it will be seen that the laboring classes have not been very much affected by the war in Europe. CORPORATIONS. The number of licenses issued to foreign corporations and the number of articles of incorporation and other documents filed by the division of archives, patents, copyrights, and trade-marks of the executive bureau for the year ending December 31, 1914, are as follows: Licenses issued to foreign corporations — _______________________- 10 Articles of incorporation of domestic stock corporations-______________ 76 Articles of incorporation of domestic nonstock corporations --— ______ 22 Articles of incorporation of religious corporations -----— ________________ 3 Certificates of increase of capital stock --- —— ___________________________ - 11 Amendments to articles of incorporation ----------— _________ 20 By-laws - ----—.___________ ----- -. ---- -— _- 84 Amended by-laws --- __ ---- __ —___ —_-.__._____ ---- - 15 The fees collected for the issuance of the licenses and filing the above documents amounted to P7,618. IRRIGATION COUNCIL. Six meetings of the irrigation council were held during the year 1914 to consider applications for water rights. The disposition made of the applications presented to the council was as follows: Applications carried over from the preceding year ---- --------- Applications brought before the council this year ---_ --- —-- --- 20S Applications approved —_____________ --- —-------- 106 Applications rejected --- —-____ --- —--------------- 5 Applications pending further action__-___________ --- ---- __ --- 104 Respectfully submitted. CLINTON L. RIGGS, Secretary of Comrmerce and Police. To the PHILIPPINE COMMISSION.

Page  213 REPORT OF THE SECRETARY OF FINANCE AND) JUSTICE. SIX MONTHS ENDING DECEMBER 31, 1913. DEPARTMENT OF FINANCE AND JUSTICE, Manila, August 1, 1914. SIRS: I have the honor to submit for your consideration the following report of the work performed during the period from July 1 to December 31, 1913, by the judiciary and the various bureaus under the executive control of the department of finance and justice. This report, unless otherwise stated, will cover only the six months ended December 31, 1913. The undersigned assumed charge of the department on November 1, 1913, relieving the Hon. Gregorio Araneta, who had resigned from the office of secretary of finance and justice of these islands. I shall review the work of the department under the headings of the general bureaus, beginning with the judiciary. I.-JUDICIARY. SUPREME COURT. The condition of the docket of the supreme court is satisfactory. There were filed during the period July 1 to December 31, 1913, 269 civil and 285 criminal cases, a total of 554, as against 500 civil and 488 criminal cases filed during the fiscal year ending June 30, 1913. There were decided 205 civil and 273 criminal cases, a total of 478, as against 289 civil and,529 criminal cases, a total of 818, for the fiscal year 1913. One hundred and thirty cases were otherwise disposed of, of which 79 were civil and 51 were criminal, as compared with 161 cases, 73 civil and 88 criminal, for the preceding 12 months ending June 30, 1913. On December 31, 1913, there were 959 cases pending, of which 627 were civil and 332 were criminal, compared with 1,013 cases pending on June 30, 1913, of which 642 were civil and 371 were criminal. )f the cases pending at the end of the calendar year 1913, 483 were submitted but no decision rendered, and 476 were not yet ready for hearing on account of briefs not having been filed. One hundred and twenty-three candidates for admission to the bar were examined during the period under consideration, as compared with 247 for the fiscal year 1913. Twenty-two passed the examination, as against 95 for the preceding 12 months. The total amount of fines, fees, and costs collected by the court during the last six months of 1913 was 17,328.72, as compared with V13,973.49 for the fiscal year ending June 30, 1913. 2 213

Page  214 214 REPORT OF THE PHILIPPINE COMMISSION. COURT OF FIRST INSTANCE OF MANILA. During the period July 1 to December 31, 1913, 622 civil cases, including probate and guardianship, were filed and 523 were disposed of, as compared with 1,080 filed and 823 disposed of during the preceding fiscal year, or approximately six-tenths of the number of cases filed during that year. There remained at the close of the year 1,821 civil cases, as against 1,722 pending on July 1, 1913. In the criminal branch 744 new cases were filed, as against 1,589 during the previous fiscal year, and 844 disposed of, as against 1,471 during the preceding year; there remaining, therefore, 86 criminal cases at the close of the year 1913, as against 186 pending on July 1, 1913. There were 5 customs-appeal cases pending on July 1, 1913, and during the six months covered by this report 12 were filed and 7 disposed of, leaving 10 cases pending at the end of the year. The above figures show an increase in the number of cases filed, both civil and criminal, and a great number pending at the close of the year, notwithstanding there were comparatively more cases disposed of than during the same length of time in the fiscal year 1913. Experience has demonstrated that three judges, and occasionally one of the formerly-called " judges-at-large," sitting on the bench of Manila were not sufficient to keep up to date the docket of that court. It is hoped, however, that the increase in the number of judges provided for by Act No. 2347, which took effect July 1, 1914, will in a large measure tend to remedy this condition. The total collections made by the court of first instance of Manila amounted to P42,457.90, as against P81,752.78 during the preceding fiscal year. COURTS OF FIRST INSTANCE IN TIE PROVINCES. In the provincial courts during the last six months of 1913, 1,834 ordinary civil and 442 probate cases were filed, as compared with 3,229 ordinary civil and 661 probate cases filed in the same courts during the preceding fiscal year. One thousand one hundred and( ninety-one of the total number of civil cases pending at the beginning of the six months and filed during that time were decided and 1.115 were dismissed, as against 1,985 civil cases decided and 1,571 dismissed during the fiscal year 1913. There were pending at the close of the year 2,906 ordinary civil and 2,655 probate cases, a total of 5,561, as compared with 3,072 ordinary civil and 2,519 probate cases, a total pf 5,591 civil cases pending on July 1, 1913. There were also filed during the six months in the same courts 4,421 criminal cases, or approximately 55 per cent of the total nlimber of criminal cases filed during the preceding fiscal year, which was 8,006. Of these cases and those pending at the beginning of the six months, 2,635 were decided and 2,209 were dismissed, as compared with 4,318 criminal cases decided and 3,320 dismissed during the preceding fiscal year. Two thousand two hundred and eighty-ninle criminal cases were pending on the calendars of the various provincial courts on December 31, 1913, as compared with 2,712 cases pending on July 1, 1913, which is a reduction of a little more than 15 per cent from the number of criminal cases pending at the end of the previous fiscal year.

Page  215 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 215 The above figures show that the increase in the work of the courts of first instance in the provinces noted during the past years has progressively continued during the period under consideration, which demonstrates the need for more judges, in order that judicial matters may be promptly dispatched. In this connection it is gratifying to mention that the Philippine Legislature, recognizing this need, passed at its last session Act No. 2347, reorganizing the judicial districts and providing for more judges, which legislation, it is expected with good reasons, will greatly improve the condition of business in the courts of first instance. Another important piece of legislation in line with the prompt settlement of probate cases is Act No. 2331, which permits the judge in settling estates of small value to proceed summarily without the appointment of an executor or administrator or a committee to appraise the estate or allow claims against it when the amount of the estate does not exceed P'3,000. The collections made by the crurts of first instance in the provinces during the period covered by this report amounted to Pt78,789.51. as co npared with P156,538.17 in the fiscal year 1913. COURT OF LAND REGISTRATION. The following table is a summary of the work of the court of land registration during the six months covered by this report: Number of applications filed --- —------------------- 610 Total number of cases disposed of_ --- —------------------ 399 Applals taken to supreme court 1 --- —- - -------------- Total c;: ss published in Gazette ------ -------------- 452 Tot 1 number of cases in which decrees issued._ --- —---- 373 T, t 1 number of decrees issued --- —---- --------------- 3. 227 Tctal number of parcels covered by decrees --- —- -------- 3, 909 Tc tal area decreed (square meters) ----- ------------ 555,106. 584 Total reservations instituted: Ci ii. --- —--------------------------- 18 Military___ --- —--------------------- --- P32. 5.2. 56 ---- ----------- ^^^ Receipts -------------------- ---- ----- -.0, 770. 05 To'al costs of publication, Officinl Gazette ---- 1 --- —..230 Alpiroximante total expense of the court --- —-------------- 2 920 Approximate value of properties --- —---------------------- 87,99720 Applications presented to this court may be considered under three headings, as follows, filed under the provisions of: Act No. 496 (voluntary) - ----- ------------ Section 61, Act No. 926 (public land act) ------------------ -- 1'7 Act No. 2259 (cadastral act) --- —--------------------- ' Total-_-_ —1__ --- —--- -- _ --- —----—.. 619 These figures show a marked increase in the business of the court during the period under consideration, 930 applications only having been filed for the full period of fiscal year 1913. Act No. 22.,) (cda stral act) is now effective in a number of the principal provinces and municipalities, and as the cost of proceedings under said aet is only a fraction of the costs under Act No. 496, private individuials who are not in immediate need of titles are waiting until their lands can be registered under the cadastral act.

Page  216 216 REPORT OF THE PHILIPPINE COMMISSION. The business transacted by the court of land registration during the period July 1 to December 31, 1913, and also the status of all cases filed to June 30, 1913, is shown by the following table: Confirmed. Denied. Pismissed. Total. Final disposition........................ 255 8 9 272 Decided, but subject to appeal....................... 98 6 5 109 Appealed to supreme court...................... 13........... 5 18 Total business for period....................... 366 14 19 399 Previous appeals pending.......................... 70 9 4 83 Prior final disposition made............................ 7,547 292 654 8,493 Total business transacted........................ 7,983 315 677 8,975 Pending on dockets........................................................... 822 Total cases, Dec. 31, 1913............................................. 9,797 During the period above mentioned final decrees were issued in 373 cases, there being 3,227 decrees. involving 3,909 parcels, and embracing an area of 555,106,584 square meters. While the number of cases decreed during the past six months is less than one-half the number decreed during the whole of the fiscal year 1913, the number of decrees issued, as well as the area and number of parcels involved, is far in excess of 50 per cent over the figures for the whole of last fiscal year. The decrees issued average 124 a week, or a little over 20 for each working day. These results are attributed directly to cadastral proceedings. A summary of the work, since the organization of the court, in respect to number of parcels and area registered, is as follows: Fiscal year. Cases. Parcels. Area. Square meters. 1903.................................................................. 19 19 32, 026 1903.....-......... —.,....-.....-...... 19 19 32026 1904................................................................ 178 186 287,377,677 1905......................................................... 339 357 66,358,448 1906.................................................................. 436 520 34 29, 86 1907.............................................................................................. 58 728 342,013,921 1908............................................................ 729 1,057 416,838,596 1909.................................................................. 896 1,255 285,636,213 1909........................... 89)6 1,255 285,616,213 1910.................,....................... 707 1,178 66),052,931 1911.........,,,.....,,......,,.............. 1,203 3,080 821,933,207 1912.................................................................. 1,252 575 470,479,164 1913.............................................. 845 5,260 783,767,795 July 1 to Dec. 31,1913..3...3..................................... 373 3,90 555,106,584 Total.................................................... 7,575 20,124 4, 730,586,218 Nineteen reservation proceedings were instituted during the past six months, 18 of which were civil reservations containing 24 parcels with an area of 14,963,236 square meters; one military reservation, containing one parcel, with an area of 115,284 square meters. The registration of city properties has been relatively the same as in previous years, considering the number of cases, but the values of the properties involved are greater, in proportion to the time, than last year, and are as follows: Fiscal year. Cases. Valuation. Fiscal year. Cases. Valuation. Manila: Provinces: 1913................... 214 4,951,265. 00 1913.............. 716 16,863,215.2 1914.................. 104 3,834,598.98 1914.................. 515 4,453,398.22

Page  217 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 217 The values of the properties in 29 cases filed during the last six months are not known, 19 of which are cadastral cases and 3 cases filed under the provisions of section 61, Act No. 926, all of which cover large areas. Therefore the values given in the above statement would be materially increased if these cases could be included. The receipts of the court, as well as the applications filed, show an increase over the fiscal year 1913, considering that this report covers only one-half year. The apparent decrease in the value of the properties involved is due to the fact stated above, i. e., that the values of 29 cases are not known, therefore not included in the totals. A comparative statement of the business for the last six months, relative to receipts, and that of the preceding fiscal year, follows: Fiscal year 1913: July 1 to Dec. 31, 1913: Cases filed____ 930 Cases filed —___- 619 Receipts --- —--—. 49,484. 13 Receipts _ --- _ '32, 582. 56 Valuation ------- P21, 814,480. 72 Valuation -— _ — 1P8, 287, 997. 20 JUSTICE OF THIE PEACE COURTS. The reports submitted by the judges of the courts of first instance regarding the work of justice of the peace courts in their respective districts show that during the period July 1 to December 31, 1913, there were filed 29,802 criminal and 5,767 civil cases, as against 72,239 and 16,794 cases, respectively, filed during the period July 1, 1912, to June 30, 1913, showing a large decrease in the number of cases filed during the period under consideration. There were decided 27,223 criminal and 4,099 civil cases, a total of 31,322 cases, as against 64,569 criminal and 12,465 civil cases, a total of 77,031 cases, for the fiscal year 1913. Four thousand four hundred and twentyone cases were otherwise disposed of, of which 2,682 were criminal and 1,739 were civil, as compared with 12,145 cases, 7,719 criminal and 4,426 civil cases, for the fiscal year 1913. At the close of the year there were 4,474 cases pending, of which 3,965 were criminal and 509 were civil, compared with 5),855 cases pending on July 1, 1913, of which 5,139 were criminal and 716 were civil. The amount of costs, fines, and fees collected during the last six months of 1913 was P149,848.03, against ~i353,575.05 during the fiscal year 1913. The above figures do not cover the business of these courts in some provinces of the archipelago, for the reason that it has not been possible to secure accurate reports of the work of justices of the peace, owing principally to frequent changes in the personnel of the courts and their lack of familiarity with the preparation of statistics. II.-BUREAU OF JUSTICE. PERSONNEL. On December 16, 1913, the Hon. Ignacio Villamor was promoted from the position of attorney general to that of executive secretary, and the Hon. George R. Harvey, solicitor general, was designated as attorney general, in which capacity he acted from that date until the beginning of the year 1914, when he was relieved by the Hon. Ramon Avancefia, former judge of the court of first instance of the

Page  218 218 REPORT OF THE PHILIPPINE COMMISSION. twelfth judicial district, who was appointed to fill the office of attorney general of these islands. With the exception of the appointments of Alva J. Hill and Roman Lacson to the vacancies in the positions of assistant attorneys no other changes took place in the legal staff of the bureau of justice during the period covered by this report. The legal work performed by the bureau of justice during the last half of 1913, as compared with the fiscal year 1913, is shown in condensed form in the following manner: Fiscal July 1 year to Doc. 1913. 31,1913. Cases in the supreme court in which briefs and arguments were presented........... 639 343 Cass in the supreme court in whi-h the bureau of justice appeared by motion..... 7 53 Cass in the court of land registration in which the bureau of justice appeared and opposed r3gistration................................................ 445 154 Cases in the court of land registration examined, but no opposition pres3nted....... 489 222 Civil cas~,s conducted in the courts of first instance................................. 192 63 Written opinions rendered by the attorney general to the chief executive, heads of the four departments, chiefs of bureaus, and other officials.......................... 200 183 The above statement of work performed by the bureau of justice during the six months ending December 31, 1913, when compared with the report of similar duties performed during the preceding fiscal year shows a slight increase of cases handled in the supremie court, with a very decided reduction in court of land registration cases receiving the attention of this office. There has also been a considerable increase in the number of opinions rendered, the same being 183 opinions rendered during the six months, as against 200 opinions written in the bureau during the preceding fiscal year. The expenditures of the bureau of justice during the six months covered by this report, including the sum of 9:22,524.83 set aside on account of accrued leave adjustment, amounted to 199,749.12. III.-BUREAU OF THE TREASURY. FINAN CIAL STATEMEN T. The following statement shows the balances on hand at the close of the fiscal period July 1 to December 31, 1913, the receipts, withdrawals, and currency exchanges during the fiscal period under consideration, and the balances on hand at the close of business on December 31, 1913: General funds: Balance on hand at close of business June 30, 1913 ---- p-23, 783, 872. SS Receipts for fiscal period July 1 to Dec. 31, 1913, account ofCash deposits, all sources ---.______ —_ 28. 349. 355. 15 Currency exchanges ___ --- —--— _ 32. 453, 342.12 - 60, 802. 697. 2 Total ---___ __ --- —— _________ ___ --- —- 84, 586, 570. 15 Withdrawals for fiscal period July 1 to Dec. 31, 1913, account ofWarrants paid -------- - ----— _ - 34. 337, 807. 58 Currency exchanges___ --- —— _ 32, 453. 342. 12 -66, 791,149. 70 Balance on hand Dec. 31, 1913 ---_____ --- —--- 17, 795, 420.45

Page  219 REPO(RT OF THE SECRETARY OF FINANCE AND JUSTICE. 219 Depository accounts: Bal-nce on hand at close of business June 30. 1913___ -------------------- -7,634,383.52 Deposits during fiscal period July 1 to Dec. 31, 1913____ _____ --- —------- - 65, 373,640.49 t;l'____ ___ --- —----------- 73, 008,024.01 Withdrawals during fiscal period July 1 to Dec. 31, 1913 --- —-- ---------- 61, 925,488.77 BIllnce on hand Dec. 31, 1913-________ --- - - 11__, 082, 535. 24 Silver certificalte reserve account: Baolance on hand at close of business June 30. 1913__ — __________ --- —- - --- -- 31, 568,431. 00 Certificates issued during fiscal period July 1 to Dec. 31, 1913_- ____ — ---- 2,140,000.00 Total __ --- —--- ------------ 33, 708, 431.00 Certificates retired during fiscal period July 1 to Dec. 31, 1913 --- — ------ 3. 662, 861.00 Balance Dec. 31, 1913 ----- --------------- 30,045,570.00 TotNl of funds for which insular treasurer was accountable at close of business Dec. 31, 1913 --- 58, 923, 525. 69 This balance was distributed as follows: United States Philippine Philippine currency. currency. currency. In Treasury vaillts................ ---.......... --- —-. $816,918.72 1P37,414, 61. 74 On deposit witn lo: al banks on op.n account............. --—......... — 2,175, 279. 1i Time deposits with local banks........................................ 1,147,891.69 On deposit with authorized depositaries in the United States....................... —.. —.................. 8,275,327.83............... Total............................* —.... 9,092,246.55 40,439,032.59 FP58,923,525.69 The "general funds" balance of 117,795,420.45 in the foregoing statement includes the balances of various trust funds, and is made up as follows: Gold-staindard fund. --- —------------------------- -10, 444. 21 92 Clold-standarlflld fulnd.~____________________ ______ ________ __ p10, 444.271.92 Frii:r-lands bonds sinking fund. Act. No. 1749 ---..____ 637T.4()5.14 Manlila sewer and waterworks bonds sinking fund, Act No. 1323- (94,007.93) nir i ~__ 1 lo6. 007. 90 Money-order fund ---- ------ --------- ----- 1,1 6.007. 90 Colist;i l)lary ieension and retirement fund. Act No. 1638_ ---- 1 6.1s. Assurance fund, Act No. 496 --- —- -- -- - 23, 111. 34 Ilis1l;r insuralnce fund, Act No. 1728 - ------------- - 2 5. 43 Fidelity bond premium fund -~,_8.3 — ---— 2 --- —-------- -, 498. 32 Iubllic works;and permanent improvement bonds sinking fund, 23 Act No. 1729_ --- — -------------------------------- (29'523 36) Postal savings bank fund --- —------------------— (2 3.36) Iisu;rance fund, city of Manila ---------------------------- 4. Cell wv terworks bonds sinking fund, Act No. 2009 -— 4 --- — 5 842 50 5. 204, 813. 49 Gelneral fund --- —----------- ----------------- - Total_____-__ 17, 795,420.45 Total ------------------------------- The "depository balance" of 11l,082,535.24 in the same statement includes the following accounts: hAgriultural Bank- 568, 075.80 Agricultural Bank.. --- —--------------------------.- 4. 0 000.. >llrnlhllm mlemorial fund ------------------------------ 1. 00. 00 Ci'vite electric-light franchise, section 2. Act No. 667 ------ 5. 64 1 oiuth of July fund ------------- --------------- -- 51, 10. 06 lInsular disbursing officers_ ------------

Page  220 220 REPORT OF THE PHILIPPINE COMMISSION. Memorial-monlument fund, Act No. 1840______- __ ----.'25.5 52 Treasurer of the United St:ates_________-_ ____________ 3, 225. 204. 98 Trust funds, sec. 11, Act No. 1510____ _-_ --- —----— _ — 51,091.26 United Stttes disbursing officers-_____________-_____ - 7,165,771.66 Marinos Mercantes in liquidation-_________________________ 10. 77 Overage account ----------------— __________ --- 125. 83 Memnorial-Day fund ___ --- —-_________________ 271. 95 Antituberculosis society _________________ --- —-__ 10, 554. 77 Total ___- ________ --- —---------------- 11, 0S2, 535. 24 The " certificate reserve fund " balance of P30,045,570 in the statement consists of silver pesos held in the treasury against which have been issued an equivalent amount of silver certificates. The sum of 12,176,279.16, shown in the statement distribution of funds as an open account with local banks, pertains entirely to the general fund of the treasury. This is a working balance subject to withdrawal at any time. The fixed or time deposits of P1,147,891.69 with local banks, appearing in the same statement, draw interest at the rate of 3~ per cent per annum, and pertain to the following funds: General fund ______________________________- 1, 100. 000.00 Fidelity deposits, sec. 11, Act No. 1510 --— ___ _ --- —--- 46, 652.72 Conservatory of music fund____-___________________ 1, 238.97 Total --------------------- 1,147,891.69 In addition to the foregoing time deposits carried in the insular treasurer's cash accountability, there is on time deposit with local banks the sum of P1,488,000 pertaining to the treasurer's investment accountability. There is also on fixed deposit with these banks the sum of P5,629,500, provincial and municipal funds, for which the bureau is not accountable. The total time or fixed deposits with local banks therefore amounts to t8,265,391.69, all of which draws interest at the rate of 31 per cent per annum. The amount with authorized depositories in the United States, $8,275,327.83, consists of the following funds: Gold-standard funds --- —---------------------- $6, 944, 540. 18 General fund ---------- ---------------- --- 1,330, 787. 65 Total --------- -------------------- ---- 8, 275, 327. 83 Of the foregoing amount, $7,711,048.30 draws interest at the rate of 3 per cent and the remainder at the rate of 2~ per cent per annum. The $7,711,048.30 on which interest at the rate of 3 per cent is received is on open account and is divided amongst 13 depositories. It is understood between the government and each of these' depositories that this money is to remain undisturbed unless 30 days' notice that same is to be withdrawn be given the depository. This understanding, however, is not an obligation, and in case of emergency these deposits may be withdrawn without previous notification. FIDELITY BOND PREMIUM FUND. During the fiscal period under consideration shortages were paid amounting to P21,854.08. This fund, which on January 1, 1908, originated with a capital of P122,553.14, amounted on December 31, 1913, to P518,902.42, showing a gain of P396.349.28 after deducting all losses paid during the six years of the fund's existence. It is

Page  221 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 221 believed that its annual earnings will be more than sufficient to meet any defalcations likely to occur. Based on the total amount of bonds in effect and on the annual rate charged by the official surety companies prior to the inauguration of the present system, the government would have paid said companies during the past six years approximately T474,550, while the total losses certified and paid from the fidelity bond premium fund during that period amounted to P103,662.34. From January 1, 1908, to December 31, 1911, the fund charged a premium of 1 per cent for bonds executed, and on January 1, 1912, the rate was reduced to three-fourths of 1 per cent. A further reduction was made on July 1, 1912, and the rate in effect during the fiscal half-year under consideration has been one-half of 1 per cent. The total amount of bonds in effect on December 31, 1913, was 78,910,650, and the cost of administration during the half year was less than 12,350. This cost, as in previous years, has been borne by the appropriation for the treasury bureau. BANKS AND BANKING. Agricultural Bank.-The amount loaned by the bank during the fiscal period under consideration was greater than that loaned dluring the entire preceding fiscal year, the figures being ~1,147,920 and I1,028,650, respectively. The number of applications was 172, and the number of loans made was 147. Eleven loans, amounting to P27,600, were repaid, making the number of loans entirely repaid and partial payments of interest amount to 49 and *165,203. No foreclosure proceedings were instituted during this period. At the close of the six months under consideration there were outstanding loans amounting to P2,742,970. The profit and less account on December 31, 1913, showed the net profits to be t102,940.48, as compared with 1P95,410.45 for the entire previous fiscal year, making the total surplus of net profits at the close of the fiscal period Pt314,254.16. The expenses of the bank for the six months ending December 31, 1913, were V10,569.18, being slightly in excess of those for the same period of the preceding year. The increased expenses are fully explained by the bank's increased business during the six months under consideration. Private banks.-During the fiscal half year the following institutions were examined by deputies of the insular treasury: The Bank of the Philippine Islands, Manila, and its Iloilo, Zamboanga, and Jolo branches; and " El Hogar Filipino." A comparative consolidated statement of the resources and liabilities of all the commercial banks in the Philippine Islands at the close of business on June 30 of the fiscal year 1913 and for the six months ending December 31, 1913, shows the following: June 30,1913. Dec. 31,1913. Increase. Decrease. Total resources................. 67,403, 92.95 63, 745,929. 22.................. 3,657, 263.73 Loans and discounts........ 11,653,880.07 9,591,993.41.................. 2,061, 86. 66 Overdrafts.................. 24, 503,305. 11 24,375,639. 62...........127, 665. 49 Current accounts. 15, 025,675.38 13,057,169.76........ 1,968,505.62 Fixed deposits........;..;... 12,015, 607.66 14,370,101.29 2,354,493. 63.................. The Monte de Piedad and Savings Bank is not included in the foregoing statement.

Page  222 222 REPORT OF T IE PHILIPPINE COMMISSION. GUARANTY OF INTEREST ON BOND ISSUES OF RAILWAY CORPORATIONS. Under authority of an act of Congress, approved February 6, 1905, the insular government guarantees 4 per cent interest for a period not to exceed 30 years on the first-lien bonds issued by the Philippine Railway Co. for the construction of certain lines in the islands of Panay and Cebu. Under the same authority and like conditions interest is also guaranteed on the 4 per cent first-lien bonds of what are known as the southern lines of the Manila Railroad Co. During the fiscal period July 1 to December 31, 1913, bonds to the par value value of $774,000 were issued by the latter company. The combined issues of both companies on December 31, 1913, totaled $15,628,000 United States currency, and the annual liability of the insular government under its guaranty amounts to $625,120 United States currency. BOND ISSUES. The total bonded indebtedness of the insular and municipal governments of the Philippine Islands at the close of the fiscal period July 1 to December 31, 1913, was as follows: Friar-lands bonds, *14,000,000; public works and permanent improvement Londs, P10,000,000; city of Manila sewer and waterworks construction bonds, iP8,000,000; city of Cebu bonds, V250,000; grand total, V32,250,000. This is the same amount of bonded indebtedness of the insular and municipal governments of these islands on June 30, 1913. GOLD-STANDARD FUND. The unit of value in the Philippine Islands is a theoretical gold peso, containing 12.9 grains of gold 900 fine, equivalent to one-half of the gold dollar, the unit of value in the United States. The circulating medium of the Philippine Islands is a silver peso, containing 308.64 grains of silver 800 fine. For the purpose of maintaining the silver peso on a parity with the gold peso a gold-standard or goldreserve fund was created. This fund has been fixed by Act No. 2083 of the Philippine Legislature in a sum equivalent to 35 per cent of the money of the government of the Philippine Islands in circulation or available for that purpose, which act also provides that any excess in the fund over this percentage shall be transferred from the gold-standard fund to the general fund of the treasury and made available for appropriation. Under this provision the surplus of p570,154.36 which accumulated during the six months ended December 31, 1913, has been transferred to the general fund, making the total amount of surplus thus transferred since the passage of said act P4,856,720.05. Act No. 2083 further authorizes the loaning of the investment portion of this fund, under certain conditions, to provinces and municipalities for public works and public improvements, and to the Manila Railroad Co. for the purpose of completing certain sections of new lines of railroad. Under these conditions t3,746,876 of the fund have been loaned to provinces and municipalities and P3.900,000 to the Manila Railroad Co. The amount of exchange on New York sold through the fund diring the six months was M17,312,578.56, as compared with P9,361,894.16 for the six months ending December 31, 1912. The net income from all sources was =P603,269.89, showing a decided increase over the previous fiscal year.

Page  223 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 223 CIRCULATION. The total exports of Spanish-Filipino and Mexican currency, both by the government and commercially, during the period July 1, 1903, to December 31, 1913, amounted to Pfs. 33,683,558.30. It is estimated that Pfs. 350,000 still remain in the islands. The recoinage of the silver currency of the first issue is progressing satisfactorily. During the period under consideration P105,000 was withdrawn from circulation and forwarded to the San Francisco Mint for recoinage. The total silver coinage of the first issue received was I32,779,281.80. Of this 130,208,101.20 was returned to the mint for recoinage, leaving a balance in circulation of P2,571,180.60. The total silver coinage of the present authorized weight and fineness received from the United States mint amounts to *50,234,845.57. Silver certificates to the amount of P30,045,570 were in circulation, and 1P22,657,861 were in the treasury vaults on December 31, 1913. The total amount of bank notes issued by the insular treasurer to the Bank of the Philippine Islands for circulation amount to i5,328,492.50. The total amount of money in circulation at the close of the fiscal period was P50,697,252.78. Based on the census of 1903, which gave the population of the islands at 7,635,426, the per capita circulation of the islands on December 31, 1913, was P6.64. THE EARTIQUAKE FUND OF 1863. For the relief of those damaged by the earthquake which took place in the Philippine Islands on June 3, 1863, certain moneys were subscribed and paid into the treasury of the Philippine Islands by the Queen of Spain and various other subscribers throughout the Spanish dominions. A central relief board was appointed by royal order, dated October 6, 1863, to distribute this fund, and on September 22, 1866, said relief board allotted a portion of this fund to various sufferers, a list of which, together with the amounts allotted, was published in the Gaceta de Manila dated April 7, 1870. It appears that the amounts allotted were not paid to the persons entitled thereto, and in the year 1883 the government of the Philippine Islands deposited in the Monte de Piedad of Manila the sum of '80 000 gold pertaining to this fund. Certain persons, and the heirs of others, whose allotments had not been paid petitioned the present government of the Philippine Islands for payment and the Philippine Legislature, by Act No. 2109. directed the treasurer of the Philippine Islands to bring suit to recover from the Monte de Piedad all funds, together with interest thereon, deposited by the Spanish Government in the Mcnte de Piedad pertaining to this fund. It further directed that all sums recovered in accordance with the provisions of the act referred to shall be kept as a special fund for the benefit of those persons damaged, or the heirs of such persons, who have not yet received the anmounts allotted them, and to distribute the amount recovered to raid persons or their heirs, executors, etc., pro rata. Complaint was filed by the attorney general, representing the insnlar treasurer, on May 3, 1912, to which complaint the defendant

Page  224 224 REPORT OF THE PHILIPPINE COMMISSION. demurred. This demurrer was dismissed by the court of first instance on December 17, 1912. On January 2, 1913, the defendant filed an answer denying the allegations of the complaint. On November 7, 21, and 25, 1913, the case was heard before the court of first instance, and on February 19, 1914, judgment was rendered in favor of the plaintiff. From this judgment the defendant took an appeal to the supreme court, and the case is now pending decision by the court. IV.-BUREAU OF CUSTOMS. CHANGE IN PERSONNEL. The following change in the personnel appointed by the Governor General has occurred since the last annual report: Dr. Bernard Herstein, of New York, was appointed insular collector of customs November 4, 1913, vice Mr. Henry B. McCoy, resigned. GENERAL TRADE CONDITIONS. The total value of the commerce between the islands and other countries during the period July 1 to December 31, 1913, amounting to P104,373,646, as compared with P122,223,880 for the last six months of 1912, sustained a decrease of P17,850,234. Imports amounted to P56,077,896, as compared with P62,107,390 for the like period during the previous year. The diminution is accounted for by the reduction of rice importations from P12,901,024 in 1912 to P3,34S,492 in 1913. The total exports reached the sum of P48,295,750, as against P60,116,490 in 1912. The decrease in exports is largely due to the effect of the droughts and typhoons of 1912 on our principal products. Shipments of hemp fell off with a decrease of P3,847,320 in the total value of hemp exported. The exportations of copra to the United States in the last six months of 1913 have been almost doubled, while the value of this product exported to other countries in the same period dropped from P13,497,682 in 1912 to P8,335,658 in 1913. The values of sugar and manufactured tobacco exported to the United States have also sustained a considerable decrease, although the exportations of these products to foreign countries were practically the same for the two periods, there being a slight increase during the preceding year in the shipments of tobacco. The exportations of cigars and cigarettes to the United States showed also a large decrease, while a slight increase is noted in the shipments of the same to foreign countries. Somewhat increased prices of hemp and copra compensated in some measure for the decrease in exportations of these staples. Forty-four per cent of the total trade of the islands during the last six months of the calendar year 1913 was with the United States, as compared with 41 per cent for the same period of 1912, which is an evidence of the constantly increasing trade between the two countries noted in previous reports. The comparisons above made of imports and exports between periods of but one-half year's duration are not, however, free from defect as would be desired, for the obvious reason that radical increases or decreases that the figures for a half year show may partially or wholly disappear when the comparison is for an entire year.

Page  225 REPORT OF THE SECRETARY OF FINANCE ANDl JUSTICE. 225 IMIVPORTS. Cotton goods head the list of imports this year, with the value of P-12,432,994, as compared with ~11,867,084 for the six months of the previous year. The value of this staple imported from the United States during the period covered by this report was p*7,437,5632, an increase of 1~359,958 over 1912; and importtations of this class of merchandise were made from foreign countries to the value of 1~4,9915,432, against r14,789,480 for 1912. Machinery and other iron and steel rank second among imported articles, the value of the importations of the same having increased from 1*6,483,876 in 1912 to NcO,493,856 in 1913. The importations of machinery from the United States were valued at P=2,303.908, which, compared with ~1,-461,738 for 1912, shows a gain of 1*842,170, or 58 per cent. An even larger increase is shown in the importations of machinery from foreign countries, the value for 1913 being M*,687',742, while that for 1912 was "970,546. The value of the other iron and steel imported from the United States was 1*5,135,556, which is 1*2,082,632 greater than the value of similar articles imported from that country during the latter half of 1912. Like importations from other countries were valued at 111,3GG,6050, a slight increase over the same period of 1912, when the value reached Vi,1 98,668. Owing to the increased production of rice in the islands during the year 1913 this commodity, which in former years stood either first or second among our imports, has been relegated to third place, the valuie of importations of the same having dropped from 1112,901,024 in 1912 to 113,348,492il in 1913, or a decrease of 1~9,552,532. Importations of milk, condensed and fresh, rose from P851,178 in 1912 to P-1,01G,788 in 1913. tels fcutIre The United States continues at the head ofthlitocunre sending merchandise to these islands, with imports of P~28,652,396, as compared with 1~26,074,044 for the like period in 1912, an increase of?=2,578,352; while the total imports from foreign countries dropped from P-36,033.346 to P-27,425,500. Next comes the United Kingdom with imports of P5,152,080, as compared with P5,715,762 in 1912. Japan 'takes third place, with imports to the value of VP3,936,024. Germany fllows wit 3,323,69G, forcing French East Indies f rom, second in previous years to fifth plciprsfo hs late County beng rduce fro I'11064,756 during the six monthso 1912 to P2,9989,982 for the like period in 1913; then comes Austral~?msia, France, Spain, Hawaii, Switzerland, and British East Indies in the order named. EXPORTS. H-emp continues at the head of our exports. The total shipments,Of hem p for the last six months of 1(913 were valued at 1*2;1,261284, compared with f,2-5,108,t304 in 1.912, a decrease of 1*3,8471320. The Value of exportations of this staple to th onted Soutates d roppe fromi 113,047,674 to -vo9.39412,220, and those to othe countrie forom T'12060 930 to P11,86?,0G4. Of this latter amount P8,4O d9 worth of hemp~ was exported to the IUnited Kingdom, as comparedwt 918,499,626 in 1912.

Page  226 226 REPORT OF THE PHILIPPINE COMMISSION. Copra was exported to the value of T10,240,342, compared with P14,444,690 in 1912. rWhile the value of copra exported to other countries dropped from 113,497,682 in 1912 to '8,335,658 during the last six months of 1913, the exportation of this commodity to the United States has increased approximately 100 per cent, P 1,904,681 worth of copra having been exported to that country in the same period, against p947,008 in 1912. Exportations of this article to France, which has been for years the greatest consumer of our copra, dropped from P8.735,426 in 1912 to P4,623,650 in 1913. The exportation of sugar during the last six months of 1913 amounted to 65,383,183 kilos, valued at 15,994,422, compared with 120,589,939 kilos, valued at 1f10,911,724 in 1912. Shipments of sugar to the United States were ~4,851,258 less than in 1912. The value of exportations of this product to foreign countries was practically the same for the two periods-P3,846,298 worth having been shipped in the last half of 1912 and f33,780,254 in 1913. Of this latter figure, P1,607,392 represents the amount of sugar exported to Japan, as compared with P1,146,376 in 1912. The diminished exportation of this product to the United States was due rather to the lack of demand tlian to the short supply, the price paid for it being extremely low owing to the competition with sugar from Hawaii, Cuba, and Porto Rico. There is a decrease in the value of manufactured tobacco exported to the United States. In 1913 the value was P1,248,686, while in 1912 it was 12,184.388. Exportations of this commodity to foreign countries show a slight increase over the preceding year, having been valued in 1913, during the period covered by this report, at P1,351,176, compared with 1*1,121,218 in 1912. The increase in the exportation of cigars to the United States noted in the years 1910, 1911, and 1912 has not continued during the period under consideration. During the six months covered by this report 25,065,223 cigars were shipped to the United States, approximately one-half the number shipped during the like period of 1912, which was 49.984,354. The shipment to other countries increased from 46,332,759 to 55,618,143. Exportations of cigarettes to the United States during this period also showed a large decrease, 4.284,900 having been shipped in 1913 and 9,228,500 in 1912. A slight increase appears in the exportation of this product to foreign countries. Exports other than those already mentioned were valued at P5,591,236, as compared with P3,572,606 in 1912. Of the first amount, P12,782,774 represents the trade with the United States, as compared with P1,060.054 for the last six months of 1912. Among these miscellaneous items of exports the largest is coconut oil, which made a remarkable progress during the period covered by this report, exportations having increased from 1P80 in 1912 to Pl1,(667,73 in 1913. Shipments of coconut oil to the United States amounted to P11.653.368. Then come knotted hemp, valued at P806,544; magnuy, P486,308; shells, P400,832; native hats, 1*392,856; lumber andt timber, P-342.266; coconut cake, 1219,150; pili nuts, 1188,270; embroideries, 1*168,698; ilang-ilang, P74,520, etc. The United States continues to occupy first place among the colntries receiving goods from the Philippine Islands, the total amount exported to that country during the last six months of 1913 being

Page  227 REPORT OF TIE SECRETARY OF FINANCE AND JUSTICE. 227 1=17,665,400, compared with 124,495,134 for the like period of 1912. The United Kingdom, with exportations to that country of 19,275,420, compared with 1*9,342,688 for the same period of 1912, retains second place, leaving France, as in the previous fiscal year of 1913, in third place, exportations to that country being reduced from 1*9,429,476 in 1912 to 15,142,840 in 1913. Japan continues occupying fourth place, exports to that country having increased from 13,357,518 in 1912 to P3,552,368 in 1913. Then follow in order Spain, THon ngkon, Germany, British East Indies, and China. CUSTOMIS COLLECTIONS. The total gross collections of the bureau during the last half of the calendar year 1913 from all sources were 1*6,807,053.24, as compared with 1*9,701,266.43 for the same period in 1912. The collections from import and export duties and wharf agewere P*6,553,315.83, being 1P2,889,765.93 less than in 1912. Import duties collected amounted to P5,689,642.77, a decrease of P11,994,772.29. The larger portion of this decrease was due to the falling off of rice impnortations, the import duty collected on rice alone being P 1.844,294 less than in the preceding year. Export dllties collected were PI467,133.26, a decrease of G688,605).16. The collection of export duties ceased on October 4, 1913, this tax having been removed by the United States tariff act of 1913. Wharfage fees have also diminished from 1*602,928.28 in 1912 to P1396,539.80 in 1913. The foregoing figures represent all the receipts of the bureau, including the amount accruing to the government of the department of Mindanao and Sulu, the amount accruing to the credit of the appropriation of the bureau, salaries of bonded warehouse keepers, collections on account of extra services of employees, and collections subject to refuind. Of the above gross collections P6,333,509.09 accrued to the insular government and IP224,166.20 to the department of Mindanao and Sulu, tlhe latter having the benefit of customs collections at Zamboanga and Jolo. FOREIGN CARRYING TRADE. From July 1 to December 31,1913, the total number of entrances and clearances of vessels engaged in foreign trade was 818, an increase of 32 over the corresponding period of the preceding year. The following table shows the distribution of the vessels under the various flags and their net tonnage: 1912. 1913. Nationality. Nu Ne t ton- Number. Net tonNumber. nage. nage. Amerieian 1.Y I1 >3, 4104 33 21S,9 36 mritis n.. 4..............4 — 4fi 874,;2fi 417 921,550 r................................ -.-. — 11... 13, 2'76 2 1,994 Cronan h..133....................... ~ 133 21(7,758 107 251,136 rnl...................................................:]] ]] 33 4 501 0 tr+\~ l~~~~~~ee..sr~ 119 35j (004( 164 5(11. 0f67 PJilipane se....................,............. 07 25, 306 oc..inee............................................? lii........ine..................... 2 1,962..................... 786i 1,788,542 819 2,014.60O Totnal....................................{ 32 226,118 Increase 1913.........................................................."

Page  228 228 REPORT OF THE PHILIPPINE COMMISSION. CONSULAR DUTIES. The work performed by the insular collector of customs in his capacity as American consul under the provisions of section 84 of the act of Congress of July 1, 1902, involved the shipment of 447 American seamen, the discharge of 251, and the care of a number of destitute seamen. Of the latter, 2 were furnished board, and lodging and transportation to the United States secured for 18, at the expense of the State Department of the Federal Government. COASTWISE SHIPPING. A comparison of the two periods in 1913 and 1912 shows that the activity in coastwise shipping remained practically the same. Although the total number of vessels licensed at the port of Manila, where the bulk of the documentation is done, was slightly less than in 1912, the total tonnage was greater, due to the increased number of coastwise steamers and the decrease in harbor and lighterage craft. Inspection.-During this period the officers of the hull and boiler division inspected 245 vessels, of which number 185 were steamers, 55 sailing vessels, and 5 motor boats. A total number of 99 vessels were admeasured, the majority of which were barges, scows, lighters, bancas, etc., engaged in lighterage and harbor business. Marine officers.-At the close of the calendar year 1913 there were 970 marine officers, holding unexpired licenses and certificates of service, available for service on Philippine vessels. During the last six months of that year the board on Philippine marine examinations examined 107 applicants for marine licenses of all grades, of which number 87 qualified and 20 failed. IMMIGRATION AND EMIGRATION. During the six months ended December 31, 1913, immigrant aliens to the number of 1,762 and nonimmigrant aliens to the number of 3,292 were admitted to the Philippine Islands. During the same period 910 aliens departed without intention to return and 4,331 left the islands temporarily. One hundred and forty-two Americans and 172 Filipinos arrived from and 169 Americans and 188 Filipinos departed to foreign countries. Five hundred and eighty Filipinos and 1,895 Americans arrived from the United States and its possessions and 2,611 Filipinos and 1,565 Americans departed therefor, The aliens arriving from the United States numbered 51 and those departing for that country 146. The total number of persons arriving in the islands was 7,894, and 9,920 departed. One hundred nnd forty aliens seeking admission were debarred and 147 alien residents deported to the countries from whence they came, in accordance with law. ARRASTRE AND PIERS. From July 1 to December 31, 1913, 133,369 tons of cargo were handled by the Manila arrastre plant, a slight increase over 1912, when the tonnage handled was 132,197. The receipts from operation amounted to 0111,548.84 and the expenditures were P111,192.62, of which amount P87,892.72 was for salaries and wages and "23,299.90 for contingent expenses.

Page  229 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 229 PERSONNEL. The total number of employees in the bureau was reduced during the six months covered by this report from 780 to 760, the reduction being equally divided between the Americans and Filipinos. EXPENSE OF CONDUCTING THE BUREAU. The total cost of the operations of the bureau during the six months was -563,753.19, of which amount P457,760.71 was expended for salaries and wages and P105,992.48 for contingent expenses. V.-BUREAU OF INTERNAL REVENUE. COLLECTIONS. The following is a resume of the collections made by the bureau of internal revenue during the period from July 1 to December 31, 1913: Items. 1912 1913 Internal-revenue taxes............................... 6.,945, 965.08 P-6, 62!), 727. 71 United States internal-revenue taxes........................... 317. 876. 45 175, 656. 53 Opium taxes..............4.. —........................... 46,071.44 42, 852.65 Weihrts and measures taxes......4.......5 —...... 45, 988. 03 62, 720. 72 Franchise taxess.............................. --- —------------ -----------— 14 — 10114, 41. 44 Franchise taxes.308,145.14 114,949.44 Justice of the peace fines and fees................................... 80 Sisiman nlatadero......................... -.... 37,5. -5. — -----— 9 ---. 37,575. 90 17,771.33 San Lazaro estate re ntals.................................... ----------- 25,037.97 27, 396. 7 San Lazaro estate eourt costs.......................-... --- —------- -. 7.24 240.'92 Sales of public mineral lands.......................................... --- 324. 70 1, 77. 69 Subscriptions to publicity fund.............................. 6,949.62 3,559.14 Total..................................... 7,746, 360.37 7, 2(i7,044.31 Municipal taxes, city of Manila........................................ 1 63 1,524, 914.11 Grand total.....................................................9,358, 660.00 8,791,958.42 From the foregoing table it will be seen that the amount collected during this period, as compared with a total collection during the same period of 1912, shows a decrease of t566,701.58, or about 6 per cent. The greatest falling off has been on the collections of taxes on domestic and imported distilled spirits, domestic manufactured tobacco, cigars and cigarettes, and merchants' and manufacturers' percentage tax, due to restrictions of credits by large merchants and manufacturers. The following table shows the internal-revenue tax collections made during the period July 1 to December 31, 1913, and the increase or decrease as compared with the corresponding period of the preceding year: Source 1912 I 1913 Increase. Decrease. Distilled spirits: P115,710.97 oes..tic...1, 334, 943.0 P1,2192233............. l,7097 DIomestic......................... --- — P 334 33. 0. -- 4,389.38 Imported................. 142,331.30 137,941.38....49......... Wnes and imitation wines: 35 0898 7, 4. Domestic.....27,630.95 35,08. 7,45....... Importe............ 50,004.27 54,760.74 4,756.47......... fermented liquors: Domesti..c.......... 70,250.00 74,300.00 4,050.10................ Imported.................. 8...5.. 8,52 13, 50..2

Page  230 230 REPORT OF THE PHILIPPINE COMMISSION. Source. 1912 1913 Increase. Decrease. Smoking and chewing tobacco: Domestic................ Imported.......................... Cigars: Domestic.......................... Imported.................. Cigarettes: Domestic........................... Imported............... Matches: Domestic......................... Imported...................... Dealers in alcohol and tobacco products. Merchants, manufacturers, and comm on carriers......................... Occupations, trades, and professions.... Cedulas, personal.................... Banks and bankers................... Insurance companies................... Forest products........................ Documentary stamps.................. Miscellaneous........................ Total............................ P155,968.08 49,873.12 108,369.00 1.32 2,167, 08. 58 1,542.64 117,490.00 64.266.75 315,775.50 1,114, 333.94 259,363.97 505,393.00 128,717.17 2,130.89 174,539.90 147,48. 50 21.48 6,945,965.08 P113,599.78................ P042,368.30 54,596.09 P4,722.97............... 103,031.14................ 5,337.86 50.66 49.34............... 2,123,399.83................ 43,698.75 4,004.13 2,461. 49............... 106,146.66............... 11,313.34 81,404.20 17,137.45................ 338,799.84 23,024.34.............. 1,016,321. 82 323,210.00 406,543.00 129,839.66 10,343.18 160,913.31 127,616.40 14.06 6,629,727.71 63,846.03 1,122.49 8,212.29 136,976.00 98,012.12 98,850.00 13,626.59 19, 868.10 7.42 453,212.83 Of the total amount of internal-revenue collections during the period under consideration there accrued to the insular treasury P4,305,325.61, to provincial treasuries P1l,091,523.38, and to municipal treasuries T1,232,878.72, as compared with P4,584,625.35, P1,1(;3,024.13, and P1,198,315.60, respectively, for the corresponding period of 1912. The following table shows the city of Manila taxes and other revenues collected during the six months ending December 31, 1912, and 1913: Items. 1912 1913 I eal-eqtate tax.......................................................... Matadero receipts......................................... Market receipts........................................................ Municipal licenses...................................................... Rentals of city property....................................... Municipal court receipts......................................... Pail system............................................................ Odorless-excavator service...................................... Buildine permits........................................................ W ater rents............................................................ Board of health fees............................................ Cementerio del Norte...................................... Justice of peace fees..................................................... Franchise taxes......................................................... Rice sales...................................... Construction and repair of streets, bridges, sidewalks, and curbs......... Transportation, insular government................................... Other minor receipts, miscellaneous, and internal-revenue dividend.... Total............................................................. P454,460.23 44,807.07 175,935.75 127,935.91 11,943.72 42.445.21 31,829.58 7,637.00 14,661.74 188,173.48 6,215.20 12,611.15 6,487.35 18,314.81 159.88 29,840.56 40,095.01 398,715.98 1,612,299.63 T462, 037.48 65,892.48 183,827.50 134,354 47 12,947.76 54,557.96 31,083.27 8,491.00 16,105.00 198,266.06 2,329.70 10, 00. 70 2,700.i0 16,651.87................ 21, 124.03 15,741.63 288,794.60 1,524,914.11 COST OF COLLECTION. The cost to the government of making the above collections, including the enforcement of certain laws, ordinances, and regulatiolns which are not revenue measures, was P-297,735.81, equal to 3.38 centavos for each peso collected. This is an abnormally high rate of cost of collection, and the next six months, that is from January to Jlne, 1914, will show an abnormally low rate, as certain annual taxes, slch as the cedula tax, are due and payable during a period in the first

Page  231 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 231 half of the calendar year. To illustrate: The total collections for the period from January 1 to June 30, 1913, exceeded those for the period from July 1, 1912, to December 31, 1912, by P4,067,442, or over 43 per cent. The foregoing amount also includes expenditures incident to the enforcement of the opium law, as no fund was provided for this work as there had been in former years. DISTILLED SPIRITS, WINES, AND LIQUORS. Distilled spirits.-The total output from registered distilleries during the last half of the fiscal year was 5,308,529 proof liters. Of this amount 385,345 was removed from distilleries without the payment of tax as denatured alcohol for industrial purposes. This was 50,419 liters more denatured alcohol than was used for the same period of 1912. On December 31, 1913, there were in operation throughout the islands 75 registered stills of modern type. Thirty illicit stills were captured by internal-revenue agents during the six months covered by this report. Wines.-The following comparative statement shows the quantity in gaulge liters of domestic and imported wines and imitation wines on which taxes were collected during the period from July 1 to December 31 of 1912 and 1913: Domestic. I Imported. Kind. i 1912 1913 1912 1913 ____________________________________________ ____________________________________________ ---- --- - __I___ * Containing not more than 14 per cent alcohol.........-....... 290,556 386,829 500,737 570,011 Containing more than 14 per cent alcohol......... --- —..... --- 33,66 32, 742 55,190 64,958 Sparkling wines..................................7.. 007 6,351 Total..42.....2............................... 32,252 419,571 562,934 641,320 This table shows an increase in the consumption of both domestic and imported wines. Fermented liquors.-Taxes were collected during the period from July 1 to Deceirber 31, 1913, on 2,072,013 gauge liters of beer, of which 1,857,500 liters were of domestic make and 214,513 liters were imported, as compared with 1,967,385.50 gauge liters for the corresponding six morths of 1912, of which 1,756,250 liters were of domestic manufacture and 211,135.50 liters were imported. There were exported during the six months covered by this report 22,615 liters, as compared with 6,779 liters during the same Period of 1912. The total output of domestic beer for the period July-December, 1913, exceeded by 101,250 liters that of the corresponding six months of 1912. TOBACCO PRODUCTS AND MATCHES. Smoking and chewing tobacco.-The following comparative statement shows the quantities of domestic and imported smoking and

Page  232 232 REPORT OF THE PHILIPPINE COMMISSION. chewing tobacco on which taxes were collected during the period from July 1 to December 31, of 1912 and 1913: I Domestic. Imported. 1912 1913 1912 1913 Kilos. Kilos. Kilos los. Smoking................................................... 232,393 137, 635 56,738 48,961 Chewing.........12......................... 103323 94,896 63,770 64,216 Total 3 76....3............................. 335.716 232,531 120,508 113,177 In addition to the domestic smoking and chewing tobacco consumed in these islands on which the tax was paid, the exports during the period covered by this report amounted to 30,495 kilos. Cigars.-The total production of cigars for the six months ending December 31, 1913, was 125,260,944. Of this amount 44,254,339 were consumed in the PhiliFpine Islands, 54,634,052 were exported to foreign countries, and 26,372,553 were shipped to the United States. During the period from July 1, 1913, to December 31, 1913, as compared with the same period of the preceding year, there was a decrease of about 49 per cent in the number of cigars shipped to the United States. The greater part of this decrease is due to the fact that some of the factories which recently started for the export business taxed themselves beyond their capacity and as a result turned out cigars of inferior quality. Other causes of this decrease is the receipt in the United States of worm-eaten and musty cigars and the fact that this staple is not well advertised in that country. Cigarettes.-The total production during the period covered by this report was 2,143,531,197. Of this number 2,117,661,662 were consumed in the islands, and 25,869,535 were exported to foreign countries. China, as in previous years, received by far the greater part of the cigarettes exported, 11,485,600 having been shipped to that country during the six months ending December 31, 1913. The consumption in the United States amounted to 5,358,075. Leaf tobacco.-The following comparative statement shows the quantity of leaf tobacco produced, the quantity used in the manufacture of cigars, cigarettes, smoking and chewing tobacco, and the quantity exported during the calendar years 1912 and 1913: 1912 1913 Kilos. Klas. Leaf tobacco on hand by dealers and manufacturers at beginning of calendar year 20,937,655 25,47 9, 4,9 Prod action.............................................3 4310.............04. 343, 52, (85 Total............................................................. 51,368,69 59,041, Quantity used in the manufacture of(igars.............................................................. 3,222,745 2,91,14 Cigarettes..7......3................................... 7, 74 743 7,6(. 247 Smoking tobacco........................................................... 400,600?12, 1 Ches ing tobacco........................................................... 204,063 0, Total..................................................................... 11,602,151 1 1,1 7 Exported in the leaf: To the United States....................................................... 41932 4] To other countries....................................................... 12,518.917 13, Ci, f Total........................................12,560.849 13,07 o7, 74 There were also exported 408,317 kilos of cuttings, clippings, and waste during 1912.

Page  233 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 233 1912 1913 Exported as cuttings and waste: Kilos. ilos. Cuttings.....................................................................................,513 W aste............................................................................... 505, 250 Total............................................................................... 569, 763 Disposed through retailers to consumers (no tax is imposed on cigars and cigarettes made by hand by the actual consumers thereof) and shrinkage......... 1,726,170 2, 525,324 Total..................................................................... 25,889,170 27,322,888 Balance on hand by dealers and manufacturers at end of calendar year.......... 25,479,489 31,718,686 N:)TE.-A II figures given above are for unstemmed leaf with the exception of amounts exported as cuttings and waste. Matches.-The quantity of matches consumed in the islands during the period July 1 to December 31, 1913, was 468,877.15 gross boxes, as compared with 454,391.88 gross boxes for the corresponding period of 1912. LICENSE TAXES. Dealers in alcohol and tobacco products.-There was collected from this source during the period from July 1 to December 31,, 1913, P338,799.84, as compared with ~315,775.50 collected during the same period of 1912, an increase of P23,024.34. Merchants, manufacturers, and common carriers.-There was collected as percentage taxes during the six months ending December 31, 1913, P1,016,321.82, as against P1,114,333.94 collected during the same period of the preceding years. Of this amount 91.7 per cent was paid by merchants, 6.4 per cent by manufacturers, and 1.9 per cent by common carriers. Occupations, trades, and professions.-Of the total amount collected under this head, 74.2 per cent was paid by the proprietors of cockpits and theaters, 9.5 per cent by lawyers, doctors, civil engineers, and surveyors, and 16.3 per cent by all other occupation license taxpayers. Six hundred and eleven municipalities availed themselves of the provisions of the law authorizing the imposition by municipal councils of additionl taxes on cockpits. There were 25 municipalities in which no cockpit licenses were issued during the period covered by this report. BANKS AND BANKERS. The following comparative statement, based upon the taxes assessed and collected, shows the average amount of capital emploved by, average amount of deposits with, and average amount of circulation by banks during the period from January 1 to June 30, of 1912 and 1913: 1912 1913 tp12, 349,441.33 P12,39, 07.50 Average capitalg.e....................-.......... 29,355,956 56 29.660,227.68 Average deposits................................. 4'934,~4.01 5,354,782..40 Average circulation.................934, 84.01 5,354,782. 40

Page  234 234 REPORT OF THE PHILIPPINE COMMISSION. CEDULAS PERSONALES. A decrease of P98,850 is shown in collections from the sale of cedulas personales, or certificates of registration, during the period from July 1 to December 31, 1913. This decrease is principally due to the large amount of delinquent cedula taxes collected during the preceding year. FRANCHISE TAXES. Of the amount of franchise taxes collected P67,769.86 accrued to the insular treasury, 143,968.75 to Manila and other municipal treasuries, and 1P3,210 to provincial treasuries. SAN LAZARO ESTATE RENTALS. The following is a summary of work accomplished during the six months ending December 31, 1913, in the collection of rentals from the tenants of the San Lazaro estate: Sites rented June 30, 1913___________ __ --- —---— 2., 218 Sites rented Dec. 31, 1913 ---- -------- ------ ------- 2, 216 Tenants June 30, 1913 -------------------- -- 1,406 Tenants Dec. 31, 1913___ --— _________ --- —---- 1,392 Amount collected July to December, 1912 --- —-------------- 25, 037.97 Amount collected July to December, 1913 ------------------ P27, 39(. 78 Amount delinquent June 30, 1913_____ --- —---------------. 47.25 Amount delinquent Dec. 31, 1913____ --- —-------- _9, 691. 25 By Executive Order No. 22, dated February 20, 1914, the collection of rents from the San Lazaro estate has been transferred to the bureau of lands, beginning on that date. OPIUM. The following is a summary of the operations under the opium law during the period from March 1, 1908 (the date on which the importation, traffic in, use, and possession of opium, except for medicinal purposes, became unlawful), up to and including December 31, 1913: Persons charged with violations-_______ --- —------------ 8. 549 Convictions (including compromised cases)1____________ _ _- 6.305 Total amount of fines imposed —_______________ —____ - 869, 377. 96 Average amount of fines imposed_ — ____ ______ ________ 2 ---- 45.95 Tot:al amount of fines paid__ --- —-5___ — 5______ 76, 21(;. 01 Average amount of fines paid__ — __ --- —-— _ --- ---- P24S. 90 Imprisonment sentences___ ---- --------------------- 2. S04 Average term of implrisonment --- —__ --- —_- 3 months and 22 days. Alien offenders deported --- —---- ----------- -- 1,85 There were 167 cases pending before the courts at the close of the period ended Dec. 31, 1913. Respectfully submitted. VICTORINO MAPA, Secretary of Finance and Justice. To the PHILIPPINE COMMISSION.

Page  235 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. FISCAL YEAR ENDING DECEMBER 31, 1914. DEPARTMENT OF FINANCE AND JUSTICE, Manila, March 20, 1915. SIRS: I have the honor to submit for your consideration the following report of the department of finance and justice covering the calendar year 1914: JUDICIARY. SUPREME COURT. The volume of business transacted by the supreme court during the calendar year 1914 was about the same as during the fiscal year 1913. On December 31, 1913, there were 959 cases pending on the dockets of the court, of which 627 were civil and 332 were criminal. There were filed during the period January 1 to December 31, 1914, 538 civil and 389 criminal cases, as compared with 500 civil and 488 criminal cases during the fiscal year 1913, a decrease of 61 cases. There were decided 363 civil and 462 criminal cases, a total of 825, compared with 289 civil and 529 criminal cases, a total of 818, for the fiscal year 1913. At the close of business, December 31, 1911, there were 1,061 cases pending, of which 802 were civil and 259 were criminal, as compared with 1,013 cases pending at the end of the fiscal year 1913, of which 642 were civil and 371 were criminal. Of the cases pending at the end of the calendar year 1914, 377 were submitted, but no decision rendered, and 684 were not yet ready for hearing, on account of briefs not having been filed. One hundred and ninety-four candidates for admission to the bar were examined during the year, as against 123 for the preceding year. Fifty-four passed the examination, as against 22 for the previous year. Volume XXVI of the Philippine Reports has been completed and published in English and Spanish during the year. This brings the reports down to February 20, 1914. The total amount of fees, fines, and costs collected by the court during the year was 120.283.78, as compared with t13,973.49 for the fiscal year 1913. Of the first amount, P6,510 represents the bar examination fees. 235

Page  236 236 REPORT OF THE PHILIPPINE COMMISSION. COURT OF FIRST INSTANCE OF MANILA. The following is a summary of the business conducted in the court of first instance of the city of Manila during the calendar year 1914: Fiscal Calendar year year 1913. 1914. CIVIL BRANCH. Cases pending at beginning of the year: Ordinary ci vil.................................................................. 424 673 Probh te and gu irdi inship..........................................833. 1,148 Prob ite i id -u Ir ii Inhip which were considered as decided but are still pending. 208.......... Cases filed during the year: Ordinary civil................................................................. 870 1,022 Probate and guardianship.............................................. 210 205 Total to be disposed of....................................................... 2,545 3,048 Cases decided during the year: Ordinary civil.................................................................. 438 625 Probate and guardianship....................................79 92 Cases dismissed: Oriinary civil.................................................................. 305 222 Probate and guardianship...................................... 1.......... Total decided and dismissed........................823 939 Cases pending at the end of the year: Ordlinary civil.................................................................. 551 848 Probate and guardianship...................................................... 1,171 1,261 Total pending................................................................ 1,722 2,109 CRIMINAL BRANCH. Cases pending at beginning of the year............................................. 68 86 Cases filed during the year......................................................... 1,589 1,180 Total to be disposed of........................................................ 1657 1, 266 Cases decided during the year................................................ 1, 36 1,076 Cases dismissed.................................................................... 85 100 Total disposed of........................................................... 471 1,176 Cases pending at the end of the year...................................... 186. 90 CUSTOMS APPEAL CASES. Cases pending at the beginning of the year..................................... 4 10 Cases filed during the year.......................................................... 1 16 Total to be disposed of.................................................. 22 26 Cases deviled and dismissed during the year....................................... 17 16 Cases pending at the end of the year.................................... 5 10 The above figures show that the number of civil cases filed during the year 1914 is greater than that for the fiscal year 1913 by 147. One thousand one hundred and eighty criminal cases were filed, as compared with 1,589 during the fiscal year 1913. Nine hundred arnd thirty-nine civil and probate cases were disposed of, compared with 823 for the fiscal year 1913, an increase of 116 in the number disposed of, this notwithstanding 2,109 civil and probate cases were pending at the close of the year 1914, as compared with 1,722 at the end of the fiscal year 1913. But 90 criminal cases remained undisposed of on December 31, 1914, against 186 on June 30, 1913. With respect to customs appeal cases, 16 of said cases were filed, as against 18 in 1913^ of which 10 remained undisposed of, as against 5 at the end of the previous year mentioned.

Page  237 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 237 The total collections for the court of first instance of Manila amounted to P50,141.27, compared with P81,752.78 for the fiscal year 1913. COURTS OF FIRST INSTANCE IN THE PROVINCES. There were filed during the calendar year 1914, 3,687 civil cases, including probate cases, compared with 3,890 civil cases during the fiscal year 1913, a decrease of 203 cases. There were 3,386 civil cases disposed of, compared with 3,556 during the fiscal year 1913, showing a decrease of 170 in the number of cases disposed of. On December 31, 1914, there were pending 3,109 ordinary civil and 2,619 probate cases, a total of 5,728, compared with 3,072 ordinary civil and 2.519 probate cases, a total of 5,591 civil cases pending at the end of the fiscal year 1913, an increase of 137 in the number of cases pending. There were 7,799 criminal cases filed during the year, as compared with 8,006 for the fiscal year 1913, a decrease of 207. There were 7,887 criminal cases disposed of during the year, compared with 7.638 during the fiscal year 1913, an increase of 249 in the number of criminal cases disposed of. The number of criminal cases pending at the end of the year was 2,085, as compared with 2,712 at the close of the fiscal year 1913, showing a decrease of 627 in the number of cases pending. The above figures show that the increase in the work of the courts of first instance noted in previous years has continued during the year under consideration. The aggregate number of civil and criminal cases disposed of during the year (11,273) was greater than that for the fiscal year 1913 (11,194) by 79, yet there was an increase of 137 in the number of civil cases pending at the close of the year. While better results were expected from the operation of Act No. 2347, reorganizing the courts of first instance and the court of land registration, and providing for a greater number of judges, which took effect July 1, 1914; however, the lapse of time covered by this report-July 1 to December 31, 1914-during which said act has been effective, is deemed too short in order to appreciate its effect. The collections made by the courts of first instance in the provinces during the year 1914, as reported by the clerks of court, amounted to P138,758.88, as compared with P156,538.17 in the fiscal year 1913. COURT OF LAND REGISTRATION AND GENERAL LAND REGISTRATION OFFICE. The former court of land registration was discontinued on Ji1ly 1, 1914, in accordance with the provisions of Act No. 2347. Jurisdiction in cases for the registration of land titles was, by the abovementioned act, transferred to the various courts of first instance; and a central office, known as the general land registration office, was created, to which was transferred the regular administrative work formerly devolving on the clerk of the court of land registration. The head of this offce is known by the title of chief of the general land registration office." There were filed during the year 55 cadastral cases, including 2C,045 parcels of land, and a total area of 446,798,761.31 square meters. The number of regular applications was 902 and the number of cases disposed of 792. There were 49 appeals taken to the I

Page  238 238 REPORT OF THE PHILIPPINE COMMISSION. supreme court during the year; 891 cases were published in the Official Gazette, and decrees were issued in 781 cases, the total number of decrees amounting to 3,956 and the number of parcels covered by such decrees was 5,873, involving an area of 756,339,874 square meters. There were also instituted 36 civil and 1 military-reservation proceedings, involving 60 parcels and an area of 142,835,522 square meters. The amount of P34,209.31 was received in connection with the applications for registration, and the cost of publications and advertisements in the Official Gazette amounted to P26,272.52. The approximate total expenses of the court and office amounted to more than 1*165,695.50. Tie approximate value of property registered is f*8,337,786. The land-registration work since the transfer of jurisdiction to the courts of first instance has not developed to such an extent as to justify drawing a comparison between the present system and that under the old organization. It is possible that the work of the year 1915 will prove a better basis on which to make comparisons with the work of the old organization than the last half of the year 1914, as that period of time was devoted in a large measure to perfecting the new organization and determining its necessities. The chief of the general land registration office reports that 523 cases were decided by the court of land registration, abolished June 30, 1914, and 269 cases by the courts of first instance outside of Manila, a total of 792 cases disposed of during the year 1914. JUSTICE OF THE PEACE COURTS. During the year 1914, 166 justices of the peace and 185 auxiliary justices of the peace were appointed, compared with 159 and 101, respectively, for the fiscal year 1913. Five justices of the peace and 14 auxiliary justices of the peace declined appointment; 33 and 57, respectively, resigned; 19 and 17 were relieved from office, not having qualified under Act No. 2041, as against 48 and 9, respectively, for the fiscal year 1913. Ten justices of the peace and 6 auxiliary justices of the peace died. Thirteen, or 1.77 per cent, of the 733 justices of the peace were removed for cause; the same number and per cent were disciplined; 5, or 0.68 per cent, were found not guilty, and one administrative case against a justice of the peace was pending action by the Governor General at the end of the year, making a total of 32, or 4.37 per cent, the number of justices of the peace investigated. Of 541 auxiliary justices of the peace, 4, or 0.74 per cent, were investigated. Of these, 3, or 0.55 per cent, were removed, and 1, or 0.18 per cent, was found not guilty. BUREAU OF JUSTICE. The Hon. Ramon Avanceina assumed office as attorney general January 2, 1914, by appointment from the position of judge of the court of first instance for the twelfth judicial district, vice Hon. Ignacio Villamor, appointed executive secretary. The Hon. George R. Harvey was transferred from the office of solicitor general to that of judge of the court of first instance for

Page  239 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 239 the seventh judicial district February 4, 1914, and the Hon. Rafael Corpus appointed to succeed him April 1, 1914, serving in that capacity until promoted to the position of director of lands, November 11, 1914. The legal work performed by the bureau of justice during the calendar year 1914, as compared with the previous fiscal year, is shown in condensed form in the following summary: Fiscal Calendar year 1913. year 1914. Cases in the supreme court in which briefs and arguments were presented........... 6.29 440 Cases in the supreme court in which the bureau of justice appeared by motion....... 75 84 Cases in the court of land registration in which the bureau of justice appeared and opposed registration.................................... — 445 305 Cases in the court of land registration examined, but no opposition presented...... 489 369 Cases conducted in the courts of first instance...........................-........ 192 111 Cases conducted in the justice of the peace court of Manila......................... 1,463 4,221 Written opinions rendered by the attorney general to the chief executive, heads of the four departments, chiefs of bureaus, and other officials......................... 200 478 These figures show that while there was during the year a slight decrease in the amount of work performed by the bureau of justice in the higher courts, there has been an increase of more than 100 per cent in the number of opinions rendered and cases conducted in the justice of the peace court of the city of Manila, as compared with the fiscal year 1913. Of the 4,221 cases conducted in the justice of the peace court of the city of Manila at least 99 per cent were in representation of the director of lands for the purpose of enforcing payment of delinquent installments by tenants and purchasers of lots in the friar-lands estates. ADMINISTRATION OF ESTATES. The number of estates of deceased American civil service employees, the administration of which devolves upon the attorney general under the provisions of Act No. 2136, is decreasing from year to year. Following is a list of officers and employees of the civil service whose deaths occurred within the period covered by this report, and whose estates are or have been administered by the attorney general, viz, William C. Hager, patrolman, police department, city of Manila; John McDonald, teamster, city of Manila; E. W. Reynolds, assistant attorney, bureau of justice; Mont Richards, foreman, bureau of public works; Jesse D. Ward, provincial service of Mindoro; Isaac Williams, road foreman, bureau of public works; Henry G. Wood, lieutenant, Philippine Constabulary. During the fiscal year 1914 the administration of the estates of the following deceased civil service employees was closed, viz, Charles A. Low, Erastmus A. -Horning, Frank 'B. Jenkins, John W. Stephenson, Charles M. Hatton, James W. Wakeley, E. W. Reynolds, W. C. Ilager, Jesse D. Ward, Henry G. Wood. rhe estates of the following named deceased are in course of administration by the attorney general December 31, 1914, viz, Thomas L. Carter, Lewis G. Wilford, John McDonald, C. D. Clifford, A. R. Travers, Isaac Williams.

Page  240 240 REPORT OF THE PHILIPPINE COMMISSION. Settlement of the estates of Thomas L. Carter, C. D. Clifford, and A. R. Travers has not been effected for the reason that no heirs at law of said deceased can be located. Funds, estates of deceased employees. Balance December 31, 1913__________________ __,4, 642. 23 Receipts calendar year 1914 —__ --- —---— _ — - 15, 825. 83 ------ TP20, 468.06 Disbursements calendar year 1914 ------— _. ____ — 1, 366. 98 Balance December 31, 1914___- __ --- —---------- 1,101. 08 20,468. 06 BUREAU OF THE TREASURY. FINANCIAL STATEMENT. The following statement shows the balances on hand at the close of the calendar year 1913, the receipts, withdrawals, and currency exchanges during the calendar year under consideration, and the balances on hand at the close of business on December 31, 1914: General funds: Balance on hand at close of business Dec. 31, 1913-_____ --- —-------- 17, 795, 420. 45 Receipts for calendar year 1914, account ofCash deposits, all sources _-__ ---- - 56, 727, 722.83 Currency exchanges___ ---- __- - - 54, 651, 654. 58 P129, 174, 797. 86 Expenditures for calendar year 1914, account ofCash withdrawals, all sources ---- 61,137, 234. 78 Currency exchanges_ _ ---. --- —-- 54, 651, 654.58 115,788,889.36 Balance on hand Dec. 31, 1914 —____ --- —-------- 13, 385,908.50 Depository accounts: Balance on hand at close of business Dec. 31, 1913 ---_- ___1, --- —— __ 11,082,535.24 Deposits during calendar year 1914 -Treasurer United States and United States disbursing officer -_ --- —- P66, 258,088. 32 Insular disbursing officers --------- 43, 603, 274. 94 109, 861,363. 26 Total —__________ --------- 120, 943, 898. 50 Withdrawals during calendar year 1914 -Treasurer United St;tes and United States disbursing officers ---— _ P69, 340,760.42 Insular disbursing officers ------ 43,684, 463.06 Total-_ --- —----------- 113, 025, 223.48 Balance on hand Dec. 31, 1914. 7,9 9 T5 1

Page  241 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 241 Silver certificate reserve account: Balance on hand at close of business Dec. 31, 1913 _- ______________ __ 30,045, 570. 00 Certificates issued during calendar year 1914 ------- ----------------- 14, 290, 000. 00 Total ---------- 44, 335, 570. 00 Certificates retired during calender year 1914 ------- ---------------- 10, 436, 848. 50 Balance Dec. 31. 1914__________ --- —----- Total of funds for which insular treasurer was accountable at close of business Dec. 31, 1914 _ --- — This balance was distributed as follows: Distribution of funds. t-33, 898, 721. 50 55, 203, 305. 02 United States Philippine currency. I currency. ___ ___ _. _ I. Philippine currency. In treasury vaults -.......-....... —.- $514,304.16 39, 851, 161.97 On deposit with local banks on open account...-.... 3, 09, 025.82 Time deposits with local banks.... —....-..-. —... ----..1 ----- I 1, 3C, 784.13 On deposit with authorized depositories in the United: States......-...........-...-........ ---. 4, 961,362.39 -.........-...-.. Total.-.......... —.....-.... ---. — 5,475, 666.55 44,251,971.92 Pr55,203,305.02 The "general treasury " balance of P13,385,908.50 in the foregoing statement includes the balances of the various trust funds, and is made up as follows: General fund ---------- --------- 225, 334. Gold-sta ndard fund --- ---- - ---- --- --- - 9, 62. 224. 92 Friar-lands bonds sinking fund, Act No. 1749 -- (96, 41'). 54) Public-works bonds sinking fund, Act No. 1729 -__-. --- —---- 45, 051. 94 Manila sewer and waterworks bonds sinking fund, Act. No. 123-44. 88. 17 1323 ______ ________ --- —--------- ------------------------ _ _4,. Celbu waterworks bonds sinking fund, Act No. 2009 --- —--—, (85. 00 Money-order funds --- —----------------------- 92, 075. 45 Postal savings bank fund, Act No. 1493 --- —--------------- ---- 435.61 Assurance fund, Act No. 496 -------------------------,. Constabulary pension and retirement fund, Act No. 163 --- 5, 170. 64 Insula'r insurance fund, Act No. 1728 --------------------- (178, 316. 42) Fidelity bond premium fund, Act No. 1739 --- —----- (418. 437.74) Insurance fund, city of Manila -------— 2 --- —------—, 0.7 -Total-................... 13,385, 908. 50 Total- ------------------------------ - 13,38,908 50 The "depository balance " of P7,918,675.02 in the same statement includes the following accounts: Agricultural Bank of thle Philipp)ine overnment -- --- 50,612.80 Ilurlnham nmemorial fund --- —------ -------.17 — 4, 00. 00 The Manila Railway Co. (1906') Ltd --- —------------------ 17 Fonrth of July celebration fund --- —- - - ----------- 5.,5 Memorial monument fund. Act No. 1840 --- —---- -. --- —-- 157. 4 137.43 Treasury overage account --- —--------------------— ~' --- —---- 'R~e{:16 5 72. 88 _______________ 3 3 Antituberculosis society — --- ---------------------,2.8 Trust fund, Act No. 2392 —Pototan Electric Liglt & Power Co ---- 1,00000 Trust fund, Act No. 2393-Silay Electric & Ice Plant Co --- — 1, 000.00 Trust find, sec. 2, Act No. 1510 —Manila Railway Co --- —---- 141 5 Carite electric light franchise-sec. 2, Act No. 667- ----- 293.2 Trust fund, sec. 1, Act No. 1592 —condemnation proceedings 293. 24 8329-15 16

Page  242 242 ItEPORT OF THE PHILIPPINE COMMISSION. Insular disbursing officers________ ___ --- —----- 48,177.12 United States disbursing offi.cers_..- _ ----- - __ 1, 213, 553.30 Treasurer of the United States__________________________ 2, 115,177.46 United States disbursing ofticers.___ --- —-_________ ----____ ___ 4,311,974.83 Total_ — _ ___ --- —-_.,_ — _ —__-_ ----- _ 7, 918, 675. 02 The "certificate reserve fund" balance of p33,898,721.50 in the statement consists of silver pesos held in the treasury against which have been issued an equivalent amount of silver certificates. The sum of 3.,099,025.82 shown in the statement " distribution of funds" as on open account with local banks pertains entirely to the general fund of the treasury and draws interest at the rate of 1 per cent per annum. This is a working balance subject to withdrawal at any time. The fixed, or time, deposits of 1I,301,784.13 with local banks, appearing in the same statement, draws interest at the rate of 1 per cent and 31 per cent per annum and pertains to the following funds: General fund at 1 per cent per annuml ----______________- - 1, 250.000.00 General fund at 3- per cent per annum n-___-___-______-____ 1, 282.33 Fidelity deposits, sec. 11, Act No. 1510, at 3~ per cent per annull 50, 501. 80 Total ----------------— ____ __________ -_ 1, 301, 784.13 In addition to the foregoing time deposits carried in the insular treasurer's cash accountabilitv there is on time deposit with local banks the sum of T1,028,000 pertaining to the treasurer's investment accountability, an itemized statement of which appears in the " investment schedule" of this report. There is also on fixed deposit with these banks the sum of p14,900,000 Agricultural Bank funds. The total time or fixed deposits with local banks, therefore, amounts to P7,229,784.13, of which P5,979,784.13 draws interest at the rate of 3~ per cent per annum and tl:1.250,000 draws interest at the rate of 1 per cent per annum. The amount with authorized depositories in the United States, $4,961,362.39, consists of the following funds: General fund -— _ -— __ _______ ---------- ___$443, 109.62 Gold-standard fund ------— __ __________________ --- — 4, 518, 252.77 Total ________________ --- —--------------- -- 4, 961, 362. 39 Of the foregoing amount, $4,193,109.62 draws interest at the rate of 3 per cent, and the remainder at the rate of 2- per cent per annum. The $4,193,109.62 on which interest at the rate of 3 per cent is received is on open account and is divided amongst 12 depositories. It is understood between the government and each of these depositories that this money is to remain undisturbed unless 30 days' notice that same is to be withdrawn be given the depository. This understanding, however, is not an obligation, and in case of emergency these deposits may be withdrawn without previous notification. FIDELITY BOND PREMIUM FUND. The fidelity bond premium fund, by means of which the government insures itself against losses and defalcations on the part of its ccountable officers and employees, has been in operation seven years. It originated with the capital of P122,553.14, and prior to the reversion

Page  243 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 243 made on December 31, 1914, amounted to P561,616.28. The cost of operation averaging 14.857 per annum, or P34,000 in all, has been paid from the appropriation for the treasury bureau. After paying all losses incurred and making allowance for the cost of administration the actual profit accruing to the government from the operation of this fund since its inception has been fi405,063.14. The total amount of bonds in effect on December 31, 1914, was I10,362,500 and the cost of administration during the present calendar year was P4,800. The minimum rate charged by private bonding companies prior to the establishment of the fidelity bond premium fund was 1 per cent per annum. The rate in effect at the present time is one-half of 1 per cent per annum. Based on the rates charged by the private surety companies prior to the inauguration of the present system, it is estimated that the government would have paid such companies during the past seven years approximately P560,000. It will therefore be seen that from a business standpoint the fidelity bond premium fund has been extremely successful and highly profitable. During the calendar year under consideration shortages in the accounts of the insular, provincial, and municipal officials amounting to 126,913.28 were certified by the insular auditor and paid by the fidelity bond premium fund, and the total shortages during the period of seven years amount to P131,000. BANKS AND BANKING. Agricultural Bank.-Long-term mortgage loans amounting to P1,330,230 were made during the year, making the total of such loans outstanding on December 31, 1914, P4,073,200, as against P2,742,970 on December 31, 1913. Practically all of the amount loaned during the year under consideration was placed during the first six months, after which operations of this character ceased, owing to the fact that the bank's funds available for long-term mortgage loans were exhausted. Efforts were made to secure from the Legislature additional capital by an appropriation from the general fund of the government, but because of decreased revenues and pressing needs from other sources the Legislature was unable to provide additional funds for the bank. The operations of the bank, in so far as long-term loans are concerned, will therefore be practically suspended during the coming year, as lendable funds will be limited to the bank's interest earnings. The attitude of the Legislature toward the bank has been extremely sympathetic, and it is confidently expected that at the next session ample provision will be made to enable the bank to continue its operation. On December 31, 1914, the bank's delinquent-interest list was considerably larger than on the same date of the preceding year, but this gives no cause for alarm; more than 50 per cent of the amount delinquent is due from borrowers in Negros Occidental, and is due to the fact that the sugar-milling season commences in December and the product is not marketed until after the close of the fiscal Year. In this connection it is but fair to state that during the months of January and February, 1915, a large percentage of the delinquent interest pertaining to this province was liquidated.

Page  244 244 REPORT OF TIE PHILIPPINE COMMISSION. Five mortgages were foreclosed during the calendar year 1914 for noncompliance with the conditions of the contract between the bank and the borrower, but it is thought that the securities held are ample to fully protect the bank's interest. There are at present in operation 27 agencies of the bank in provinces having no commercial banking facilities. Such agencies are yet in the experimental stage, and are limited in their activities to the sale of interisland exchange, the collection of commercial drafts, and the acceptance from the public of time and current deposits. The total deposits, both time and current, on December 31, 1914, amounted to:644,708.64, as compared with P234,897.46 on June 30, 1913, the date of the last published report of the bank. The possibility of utilizing these deposits for short-term loans to farmers on the security of crops harvested and stored is at present receiving consideration. The difficulties encountered in this connection are lack of suitable warehouse facilities throughout the provinces and difficulty in obtaining insurance on produce at points where agencies are located. At the request of the Manila Merchants' Assocation the bank accepts for collection drafts against shipment of merchandise to points at which its agencies are established and undertakes the collection of such drafts. This feature of the bank's activities has been but recently established and is rapidly meeting with favor. Private banks.-During the calendar year 1914 the following institutions were examined and reported on by deputies of the insular treasurer, who under the law has supervision over trust companies, mutual benefit societies, building and loan associations, and banking institutions of every kind: The Hongkong and Shanghai Banking Corporation, Manila and Iloilo branches; the Chartered Bank of India, Australia, and China, Manila branch and its subagencies at Iloilo and Cebu; the International Banking Corporation, Manila branch and its subagency at Cebu; the Bank of the Philippine Islands, Manila and its Iloilo and Zamboanga branches; and the Monte de Piedad. A comparative consolidated statement of the resources and liabilities of all the commercial banks in the Philippine Islands at the close of business on December 31, 1914, shows the following: Dec. 31, 1913. Dec. 31,1914. Increase. Decrease. Total resources.................... P63,745,929.22 66,639, 866. 94 2,893,937. 72....... Loans and discounts............... 9,591,993.41 9,387,878.01........P24,11.37 Overdrafts.................375,639.62 26,971,309.13 2,595,669. 51........ Current accounts................... 13,057,169. 76 16,600,369.46 3,543,199.70........ ---.. Fixed deposits.................... 14,370,101.29 11,468,664.29................. 2,901,37 The Monte de Piedad and Savings Bank is not included in the foregoing statement. GUARANTY OF INTEREST ON BOND ISSUES OF RAILWAY CORPORATIONS. Under authority of an act of Congress approved February 6, 1905 the insular government guarantees 4 per cent interest for a period not to exceed 30 years on the first-lien bonds issued by the Philippine

Page  245 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 245 Railway Co. for the construction of certain lines in the islands of Panay and Cebu. Under the same authority and like conditions interest is also guaranteed on the 4 per cent first-lien bonds of what are known as the southern lines of the Manila Railroad Co. During the calendar year 1914 bonds to the par value of $3,490,000 were issued by the latter company. i The combined issues of both companies on December 31, 1914, totaled $19,126,000 United States currency, and the annual liability of the insular government under its guaranty amounts to $765,040, United States currency. BOND ISSUES. The total bonded indebtedness of the insular and municipal governments of the Philippine Islands at the close of the calendar year 1914 was as follows: Friar-lands bonds, 1P14.000,000; public works and permanent improvement bonds, P12,000,000; city of Manila sewer and waterworks construction bonds, P6,000,000; city of Cebu bonds, P250,000; grand total, P32,250,000, this being the same amount of bonded indebtedness of the insular and municipal governments of these islands at the close of the fiscal year 1913. GOLD-STANDARD FUND. This fund, the origin and functions of which have been referred to in detail in previous annual reports, is fixed by statute in a sum equivalent to 35 per cent of the money of the government of the Philippine Islands in circulation, or available for that purpose. On December 31, 1914, the Philippine coinage in circulation and available therefor amounted to P:52,731,969.87, requiring, under the provisions of law, a gold-standard or reserve fund of P18,456,189.45. Act No. 2083 provides that any excess in the fund over and above the percentage referred to above shall be transferred from the goldstandard fund to the general fund of the treasury and made available for appropriation. Under this provision, the surplus of T861,238.39 which accumulated during the year ending December 31, 1914, has been transferred to the general fund, making the total amount of surplus thus transferred since the passage of this act P5,717,958.44. The act further provides that 50 per cent of the gold-standard fund may be loaned, under certain conditions, to provinces and municipalities of the islands for public works and permanent improvements, and that a certain portion of this 50 per cent may, under certain conditions, be loaned for short periods to the Manila Railroad Co. for the purpose of completing certain sections of new lines of railroad. Under these conditions, P3,816,040 of the fund has been loaned to provinces and municipalities and P4,827,000 to the Manila Railroad Co. The amount of exchange on New York sold through the fund during the year was P22,016,056.58, as compared with P29,276,402.86 Ar the preceding year. As an offset to the amount sold in Manila on New York, the insular treasurer furnished the Treasurer of the United States credits in Manila to the extent of P16,000,000 in exchange for an equivalent amount credited by the Treasurer of the

Page  246 246 REPORT OF THE PHILIPPINE COMMISSION. United States to the gold-standard fund in New York. The earnings of the gold-standard fund from the sale of exchange and interest on deposits and loans amounted to P857,486.70 for the year under review, as against P1,028,721.02 for the preceding year, and the net income of the fund from all sources was 1914,955.09, as compared with P1,002,855.50 for the preceding year. CIRCULATION. The total exports of Spanish-Filipino and Mexican currency, both by the Government and commercially, during the period July 1, 1903, to December 31, 1914, amounted to Pfs. 33,706,128.89. It is estimated that Pfs. 330,000 still remain in the islands. The withdrawal from circulation of the Philippine silver currency of the first issue and its recoinage into coins of lesser weight and fineness is progressing satisfactorily. During the year under consideration P152,502.20 was withdrawn from circulation and forwarded to the United States Mint at San Francisco for recoinage. The total silver coinage of the first issue received was P32,779,281.80, of which amount P30,360,603.40 was returned to the mint for recoinage, leaving a balance in circulation of P2,418,678.40. The total silver coinage of the present authorized weight and fineness received from the United States mint amounts to P50,315,120.07. Silver certificates to the amount of P33,898,721.50 were in circulation and P21,766,848.50 were in the treasury vaults on December 31, 1914. The total amount of bank notes issued by the insular treasurer to the Bank of the Philippine Islands for circulation amounts to P5,327,492.50. The total amount of money in circulation at the close of the calendar year 1914 was 1P52,575,117.74. Based on the census of 1903, which gave the population of the Philippine Islands at 7,635,426, the per capita circulation of the islands on December 31, 1914, was iP6.88. EXPENSE OF CONDUCTING THE BUREAU. The authorized personnel of the bureau of the treasury remained the same as for the preceding fiscal year, and the cost of conducting the bureau during the calendar year 1914 was P112,539.50, as compared with ]P115,471.86 for the fiscal year 1913. BUREAU OF CUSTOMIS. GENERAL TRADE CONDITIONS. The balance of trade in commodities at the close of the year 1914, as indicated by customs statistics, was in favor of the Philippine Islands, the imports amounting to $48,588,653 and the exports to $48,689,631, an excess in exports over imports of $100,981. The total trade for the calendar year-$97,278,287-was, however, less tlhan that of 1913-$101,085,742. This reduction is accounted for by the falling off of imports during the last six months of the year, especially after the beginning of the European war, as the value of products imported between January 1 and June 30, 1914, amounted to

Page  247 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 247 $27,972,622, whereas from July 1 to December 31, 1914, it amounted to only $20,616,031, a decrease of $7,356,591. The total trade figures for the past two years are given below: Calendar year Calendar year Increase in Decrease in 1913. 1914. 1914. 1914. /~~~~~~~~ Total imports..... —.......... — ----- - $53,312, 786 $48,588,653 i............. $4,724,133 Total exports.................. 47 772, 956 48,689.634 $916,678....... Totaltrade............. 101.085,742 97,278,287......................Approximately 50 per cent of the trade of the is s d g Approximnately 50 per cent of the trade of the islands during 1914 was with the United States, the export trade with that country amounting to slightly more than 50 per cent and the import trade to slightly less than that amount. The gain made by the United States in export trade with the Philippine Islands from $16,434,018 in 1913 to $24,427,710 in 1914 was at the expense of the United Kingdom, France, Japan, China, Hongkong, and Germany, all of which countries showed a reduction in export business for the year 1914. Italy and the Netherlands are the only other countries that increased their trade with the Philippines during the past year. IMPORTS. The value of imports during 1913 was $53.312,786, while that of 1914 was $48,588,653, a decrease of $4,724,133, due to reduced importations during the last six months of the year. Importations from Japan, the French East Indies, and China increased during the year. On the other hand, importations from the United States decreased from $26,676,261 in the preceding year to $24,020,295 in 1914, and practically the entire remainder of the decrease for the year, approximately $2,068,267, was proportionately divided between the United Kingdom, Germany, and France. The decrease of $4,724,133 in the value of products imported during 1914, compared to 1913, is made up mainly of decreased importations of meat products-$2,053,250 to $1,866,274; manufactlures of cotton, $11,844,301 to $9,956,244; and manufactures of iron and steel, $8,613,904 to $6,983,444. Only the importations of rice and manufactilres of leather show any sulbstantial increase for the year, the latter product having increased from $1,0.-3,448 to $1,557,824. Rice to the value of $3.276,148 was imported in 1914, compared with $3.164,591 in 1913 and $13,008,506 in 1912. At no time since 1899 has the importation of rice reached the low mark set in 1913 and 1914. The most noticeable increases among the lesser classes of imports are those in the values of carabao brought into the country-from 2.6(6 in 1913 to $66,557 in 1914, and other cattle from $165,938 to $241,766. EXPORTS. The total export trade of the islands reached a higher mark$48,689,634-during 1914 than during any previous year since 1899, "with the exception of 1912. This total represents an increase of $916,678 in export trade over the year 1913.

Page  248 248 REPORT OF THE PHILIPPINE COMMISSION. The exportation of sugar shows the greatest increase, not only in quantity but also in value. The large crop of cane harvested in the latter part of 1913 and sold during 1914, the greater demand and higher prices prevailing in foreign markets, and the substantial increase in the amount of high-grade centrifugal sugar produced by centrals recently installed, contributed to increase the quantity of that product exported from 157,333,707 k'los, valued at $7,032,889 in 1913, to 236,498,001 kilos, valued at $11,059,593, in 1914. Approximately 75 per cent of this sugar, representing the better grades, was shipped to the United States, and the remainder to China and Japan. The increase in the exportation of coconut oil from 660 kilos, valued at $40, in 1912, to 5,010,429 kilos, valued at $1,146,339, in 1913. and 11,943,329 kilos, valued at $2,619,183, in 1914, represents the establishment of an industry which, it is believed, will be an important factor in the future economic welfare of the islands. Notwithstanding the increased exportation of coconut oil, 87,344,695 kilos of copra were exported in 1914, compared with 82,219,363 during the preceding year. However, due to the sharp break in the prevailing prices in foreign markets immediately following the outbreak of the war in Europe, and to the fact that over 60 per cent of the quantity exported was shipped during the last half of the year, when the market had not recovered from the stagnation of August and September, the value received for the large shipments of 1914 amounted to but $7,980,270, whereas $9,545,724 was obtained for the smaller quantity exported during 1913. The exportation of hemp decreased slightly during the year, 116,386,575 kilos of that product, valued at $19,194,815, having been shipped in 1914, compared with 119,821,435 kilos, valued at $21,121.084, in 1913. The other reduced exportations which brought down the general high average for the year made by coconut oil and sugar are those of the various, classes of tobacco, the shipment to other countries of cigars alone having fallen off from $3,012,234 in value in 1913 to $2,315,159 in 1914. CUSTOMS COLLECTIONS. The gross collections of the bureau during the calendar year 1914 were $5,948,546.14, compared with $6,943,075.69 in 1913, a decrease of $994,529.55. Of this decrease, $662,575.20 represents the reduction caused by the abolishment of the export tax in October of 1913, and $391,394.18 the loss of revenue caused by decreased importations. The general increase in export trade is reflected in the amount of wharfage collected, which was $525,488.25 in 1914, compared with $407,308.50 in 1913. The abolishment of duty collected on export products, the decreased importations of rice, and the increased percentage of import trade with the United States are the principal causes of the loss of customs revenue during the past year. It is probable that rice ilmportations will be temporarily increased during the year 1915, which will, of course, involve a corresponding increase in revenue. Importations of merchandise, the growth, product, or manufacture of tl1e United States during the year, amounted to approximately 50 p ' cent of the total import trade of the islands, an increase of about 5 per cent over the fiscal year 1913, although the total value of such

Page  249 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 249 importations was less than in that year. For several reasons, the principal one being the European war, it is expected that this percentage of merchandise from the United States entitled to free admission to the islands will be considerably increased during the year 1915 and thereafter, with a corresponding reduction of import duty collected. The gross collections reported above represent all receipts of the bureau of customs and include collections made for account of the Department of Mindanao and Sulu. Collections at the port of Jolo and Zamboanga were credited to the Department of Mindanao and Sulu, and the expense of operation of those ports was met by appropriation of the department. Since July 1, 1914, internal-revenue taxes on imported merchandise have been collected directly by customs employees and deposited to the credit of the bureau of internal revenue. These collections during the last half of 1914 amounted to approximately $150,000, which sum will undoubtedly be greatly exceeded during the coming year, as a considerable part of the revenue to be derived from the recent amendment to the internal-revenue law will be collected on imported products. CONSULAR DUTlIES. During the vear 1914, under the authorization contained in section 84 of the act of Congress of July 1, 1902, the insular collector of customs, in the capacity of American consul, provided temporary board and lodging for 12 destitute seamen, and furnished transportation for 11 of such persons from Manila to the United States, the expense involved being charged to the State Department of the United States Government. During the same period 857 American seamen were shipped and 535 discharged. FOREIGN CARRYING TRADE. During the calendar year 1914 there entered the Philippine Islands from foreign ports 772 vessels having a total tonnage of 1,912,756, and there were cleared for foreign ports 747 vessels, having a total tonnage of 1,931,249. During the calendar year 1913, 811 vessels of 1,915,448 tonnage entered the Philippine Islands from foreign ports and 794 vessels —1,977,767 tonnage-cleared for such ports, which totals are slightly in excess of those for the year 1914. COASTWISE SHIPPING. The coastwise shipping trade of the islands showed increased activity during the year. The number of coastwise vessels entered at all ports totaled 11,034, while 11,074 vessels were cleared from the same Ports, compared with 9,885 vessels entered and 10,0(7 cleared during the calendar vear 1913. Of the various ports, Iloilo shows the most SUlbstantial gain; practically one-half of the total entrances and clearances being at that port, and the only decrease in movement of Steamers was at Manila, where a slightly smaller number of vessels entered and cleared during the year than in 1913. The number of vessels engaged in coastwise traffic decreased during the year, 98 vessels having been wrecked or destroyed, whereas I I i i

Page  250 250 REPORT OF THE PHILIPPINE COMMISSION. the decrease from the same cause in 1913 was but 54. Many of these boats have already been replaced, as Philippine built vessels of small tonnage constituted the greater portion of those wrecked or destroyed. Four hundred and four vessels have been inspected by the hull and boiler division during the year, an increase of Q over the total for the fiscal year 1913, of which 309 were steamers and 95 sailing vessels. Twenty vessels were awaiting inspection at the close of the year and 11 were recorded as being out of commission. One hundred and seventy-three vessels were admeasured, 77 of which were steamers, 6 steam launches, 39 sailing vessels, 18 motor boats, and the remainder were boats of the smaller types. Frequent sanitary inspections by a medical officer in the employ of the bureau of customs and periodical examinations and tests by steamship inspectors during the year of the life-saving and fire equipment of coastwise vessels have effectively guarded the health and safety of both passengers and crews, for the only lives lost during the year through marine accidents, etc., have occurred on small water craft exempt from inspection. IMMIGRATION AND EMIGRATION. During the calendar year 1914, 17,076 persons sought admission to the Philippine Islands and 17,136 departed therefrom. Of the number who entered 4,032 were immigrants and of the number departing 1,364 were emigrants, an apparent gain to the islands by immigration of 2.668 residents. During the same period 9,181 resident aliens departed from the islands with the intention of returning thereto within one year, and 7,200 of those who had previously departed with the same intention returned from abroad. There were 3,296 citizens of the United States who departed from the islands during the year, whereas but 2,466 entered; also, 1,410 Filipinos left the islands during the year and only approximately one-half that number, dr 736, returned. There was a marked increase in the number of Chinese who entered the islands for the first time during 1914, but the number of Japanese and East Indian immigrants was considerably less than in 1913. DIVISIONS TRANSFERRED TO THE BUREAU OF CUSTOMS FROM THE FORMER BUREAU OF NAVIGATION. The expense of operating the divisions of vessels and lighthouse maintenance, which, together with the marine railway and repair shop, were transferred to the bureau of customs by Act No. 2308, was reduced without detriment to the public service from $710,738.79 in 1913 to $499,790.55 in 1914. A brief statement of the operation of these divisions and reference to interisland transportation and tle marine railway and repair shop follows. Division of vessels.-There were in operation during the year the cable ship Rizal, the cutters Polillo, Samar, Mindoro, Basilan, aud Corregidor, the seagoing launch Ranger, and the river and b:y launches Malecon, Jolo, Ethel, Ilocano, and Moro, exclusive of tlhe launches used for strictly customs purposes. The cutter NTeqros and the seagoing launch Scout were in use by the bureau until Jllne and March, 1914, respectively.

Page  251 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 251 The cable ship Rizal was engaged in cable-repair work only a few days during the year, and when not required for other official purposes was chartered to private parties for salvage work or for transporting freight within Philippine waters or in waters adjacent to the Philippine Islands. The earnings of the Rizal from this source during the year amounted to $32,697.81. The cutters have been engaged mainly in the transportation of official passengers and freight and in lighthouse work, and the sums collected for the services rendered to the various bureaus and provincial governments by the division during the calendar year 1914 amounted to $154,828. The cutter Mindanao is still under charter to the department of Mindanao and Sulu, and the expense of its operation is borne entirely by that department. The seagoing launch Ranger is constantly used by the bureau of constabulary in southern waters. A number of vessels not longer required by the Philippine government were disposed of during the year, among them were the cutter Panay, the seagoing launches Scout and Rover, and the river and bay launch Guy Howard. The cost of operating government transportation during the calendar years 1913 and 1914, deducting from the former year the expense of launches transferred to the bureau of public works under the provisions of Act No. 2308, was as follows: 1913 _ —____-___ --- —-------- --------- -------- $610,750.44 1914_______________ ------—. ---- 409,636.80 Lighthouse maintenance division.-There were 148 lights of various types maintained by the Philippine government in 1913. At the close of December, 1914, there were 151, and since the latter date acetylene lights have been established on Comiran Island, Black lRock, and Manucan Island, in the Sulu Sea, which assures a well-lighted route between Balabac Straits and the islands of Panay and Negros. It is proposed to establish lights in the near future on an island north of Alabat, in Lamon Bay, east of Luzon; on the island Sibago, near the east entrance to Basilan Straits; and on the island of Tatalan, in the Tapiantana group, between the islands of Basilan and Jolo. Owing to the satisfactory results that have been obtained by the use of acetylene lights, they are being gradually substituted for the smaller flashing and occulting lights which are more expensive to maintain. The cost of operating the lighthouses in the Philippine Islands. not including the expense of lighthouse tenders, which is borne by the division of vessels, during the calendar year 1914 was $90,153.75, compared with $99,988.35 in 1913. Mlarine railway and repair shop.-The shop, which is conducted Without appropriation, has confined its operations to government vork, for which a charge has been made equivalent to the cost of labor, material, supervision, etc., pius a surchrge of 10 per ent. A dispensary has been maintained at Engineer Island for the benefit mainly of the employees of the marine railway and repair shop and the division of vessels. During the last calendar year thelre were treated by the medical inspector and his assistants 2,408 cases, and minor operations were performed and dressings applied to the number of 1,412.

Page  252 252 REPORT OF THE PHILIPPINE COMMISSION. The value of the work performed for the various insular bureaus, provincial governments, and for the quartermaster department of the United States Army was $293,767.51 in 1914. Interisland transportation.-At the beginning of thev year there were in operation eight steamship lines, all but one of which were paid subsidies by the Philippine government. The contracts expired, however, on July 26, 1914, and were renewed for the balance of the year on routes Nos. 1, 2, and 8A under the provisions of Act No. 2351, by which $10,000 was appropriated. Route 10B, between Manila and Cebu, was also continued by contract but without the payment of a subsidy. Expense of conducting the bureau.-The operation of the entire bureau was carried on during the calendar year 1914 at a total cost of $529,637.85, which is $103,769.77 less than the total expense for 1913. Of the former amount, $5109'26.70 was borne by the insular government and $18,711.15 by the department of Mindanao and Sulu. BUREAU OF INTERNAL REVENUE. CHANGE IN PERSONNEL. The following changes in the personnel appointed by the Governor General took place during the year 1914: Mr. James J. Rafferty, formerly collector of customs of the port of Zamboanga, was appointed collector of internal revenue January 10, 1914, vice Mr. William T. Nolting, appointed director of posts. Mr. Venancio Concepcion was appointed February 1, 1914, deputy collector of internal revenue, vice Mr. Henry Steere, resigned. COLLECTIONS. The following is a summary of the collections made by the bureau of internal revenue during the calendar years 1913 and 1914: Item. 1913 1914 Alcohol and tobacco products removed or imported for consumption in the Philippine Islands: Manufa, tured in the Philippine Islands......................... Im ported.................................................. Licenses: Dealers in alcohol and tobacco prod ucts......................... Merchants, manufacturers, and common carriers............... Occupations, trades, and professions............................ Banks and bankers............................................. Insurance companies............................................ Documentary-stamp taxes.................................... Cedulas........................................................ Forest products.............................................. Miscellaneous stamp colle tions................................ United Stqtes internal-revenue taxes collected on Philippine tobacco products shipped to the United States............................. Income taxes........................................................ Opium.............................................................. Weights and measures........................................... Franchise taxes........................................ Jlstice of peace fines and fees................................... City of Manila taxes and revenues (various acts of the Philippine Comm ission)............................................... San Lazaro estate (Fxecutive Order No. 15, series 1906)........... San Iazaro estate, court costs...................................... Sales of public mineral lands (Act of Congress approved July 1, 1902).. Sisiman Matadero................................................... Subscription to publicity fund................................... Grand total............................................. -7,874,285.44 692,866. 61 689,354.50 2,140,936.75 668,892.32 272,364.00 40,286.20 280,916. 14 4,081,347.00 377,037.26 151.01 432,188.44 88,602.31 139,869.59 200,587.71 402,477.50 3,676,746.53 55,836.10 298.72 1,767.69 56,311.31 12,178.10 22,184,901.23 P7, 986,137. 52 672, 517.36 715,806.64 2,175,566.11 717,104.96 255,307.67 43,400.92 261,084.43 4,090,130. 00 442, 660.61 30.32 363 39,. 19 285, 93 2.8. 39, 220). 9 135', 280. 13 211,772.37 373,272. 4 3, 709,1 5.75 1 1)35. -10 2, 703 i;4 61 06(;2.0 2,207.81 22,550,109.37 1 These collections made by the Director of Lands since February 20, 1914.

Page  253 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 253 The foregoing figures show that the total amount collected during the year 1914 was 122,550,109.37, as compared with a total collection during the calendar year 1913 of 122,184,901.23, an increase of '365,208.14, or about 1.6 per cent. APPORTIONMENT OF INTERNAL-REVENUE TAXES. Of the total amount of internal-revenue collections during the calendar year 1914 there accrued to the insular treasury 19,399,511.16, to provincial treasuries, P4,705.1182.81, and to municipal treasuries, P3,390,332.60, as ccmpared with 19,204,091.52, 14,689,091.58, and P3,364,723.72, respectively, for the year 1913. COST OF COLLECTION. The net cost to the government for the operation of the bureau of internal revenue during the year 1914 was P55)1,795.10, as compared with 1600,044.26 for the fiscal year 1913. The total collections for the year under consideration being 122,550,109.37, this makes the cost of collection 2.45 centavos for each peso collected, as compared with 2.64 centavos for each peso collected during 1913. ALCOHOL PRODUCTS. Distilled spirits.-The total output from registered distilleries during the year was 11,847,354 proof liters, being over 8 per cent more than during the preceding calendar year when the pro(Iuction was 10,813,114 proof liters. The quantity of denatured alcohol used for industrial purposes, and removed without payment of taxes, was greater by over 120,000 proof liters than the quantity so removed during 1913, and almost three times as much as was used during the fiscal year 1912. On December 31, 1914, there were in operation throughout the islands 79 registered stills of modern type, as compared with 75 in operation December 31, 1913. Sixty-six illicit stills were captured by internal-revenue agents during the year 1914. lVines.-A slight falling off is shown in taxes collected on imported wines, but this is more than offset by the increased collections on the domestic product. The following comparative statement shows the quantity of domestic and imported wines and imitation wines on which taxes were collected during the calendar years 1913 and 1914: Quantities in gauge liters. Domestic. Imported. Kind. - - 1913 1914 1913 1914 Still wines...........23,294 1,000,331 1,113.606 992,667 arn...........................,9......1.................1 12,849 7,547 T t8,2Sparkli9g eines --— 1 —000,331 —1, --- ——............... 1 Total.. —................................ 823,294 1,000,331 1126,455 1,,214 _ _ Fermented liquors.-Taxes were collected during the calendar year 1914 on 4,394,155.50 gauge liters of beer, of which 3,915,000 liters Were of domestic make and 479,155.50 were imported, as compared

Page  254 254 REPORT OF THE PHILIPPINE COMMISSION. with 4,238,263.50 gauge liters for the preceding year, of which 3,765,000 liters were of domestic manufacture and 473,263.50 were imported. There were exported during the year 1914, 79,387 gauge liters of domestic beer, as compared with 57,223 liters during 1913. The total output of domestic beer exceeded that of the year 1913 by 155,892 gauge liters. TOBACCO PRODUCTS AND MATCIES. Smoking and chewing tobacco.-The following comparative statement shows the quantities of domestic smoking and chewing tobacco on which taxes were collected during the calendar years 1913 and 1914: Kind. 1913 1914 Kiles. Kios. S-okin-..-....- --— 2..........-......-.......-....-...... --- ——.. 2_87.523 2t69i. 59 Chewing........-.......-............. —... ----.- 195,0)1 175,832 Totale..................................................................... 482,524 445, 491 Taxes were collected also on 253,133 kilos of imported smoking and chewing tobacco in 1913 and on 273,772 kilos in 1914. In addition to the domestic smoking and chewing tobacco consumed in these islands on which the tax was paid, the exports of smoking tobacco during the calendar year 1914 to other countries amounted to 42,603 kilos, as compared with 55,156 kilos in 1913. Cigars.-The total production of cigars during the year 1914 was 243,134,200, against 282,096,996 in 1913, a decrease of 38,962,796. Of the first number 90,624,757 were consumed in the Philippine Islands, 93,171,150 were exported to foreign countries, and 59,338,293 were shipped to the United States, as compared with 94,048,488, 113,916,608, and 74,131,900, respectively, in 1913. 'The decrease of cigar trade with Europe is due chiefly to the effect of the European war, while the cigar trade with Australia has also been affected by the war and the new import duty established in that country. One cause of the decrease of the cigar trade with the United States, according to investigations made into the matter, appears to be the reaction following the dumping of a large quantity of cigars on consignment on the market in 1912, which were in part disposed of either at a loss to the manufacturers, or became worm-eaten and musty, resulting in the retirement of several factories from the export business in the following year. Another reason for the decrease is probably the lack of systematic advertising of Philippine cigars in the United States. As our cigar trade with Europe and Australia has been greatly affected by the war, we must sell in the vast market of the United States the cigars which the two countries first named fail to take from us. The tobacco industry being one of the largest sources of wealth of these islands the government should make every effort to promote the trade of this staple in general, and the trade with the United States in particular, since from every 1,000 cigars sent to the United States we receive a revenue of P6, which the United

Page  255 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 255 States Government imposes as internal revenue taxes on Philippine cigars consumed in that country and turns over to us as a gift, whereas cigars exported to foreign countries pay no taxes to the government of the Philippine Islands. Cigarettes.-The total production during the year 1914 was 4,411,922,312, against 4,434,807,247 in 1913. Of the first number 4,366,293,508 were consumed in the islands, and 45,628,804 were shipped abroad, as compared with 4,388,233,154 and 46,574,093, respectively, in 1913. China continues to occupy first place among the countries receiving cigarettes from the Philippine Islands, 20,421.310 having been shipped to that country during 1914. Next comes Japan, with exportations to that country of 8,926,985 cigarettes, as compared with 1,477,300 cigarettes in 1913. Matches.-The quantity of matches consumed in the islands during the year 1914 was 899,504.48 gross boxes, of which 527,875 gross boxes were of domestic manufacture and 371,629.48 gross boxes were imported, as compared with 941,211.53 gross boxes for the year 1913, of which 585,116.65e gross boxes were of domestic make and 356,094.88 gross boxes were imported. LICENSE TAXY.S, Dealers in alcohol and tobacco products.-There were collected as specific license taxes during the new fiscal year 1914 1715,806.64 as against P689,354.50 collected during the calendar year 1913. Of this amount 30.7 per cent was paid by dealers in distilled and manufactured liquors, 33 per cent by dealers in tobacco products, 30.5 per cent by dealers in beer, tuba, bassi, tapuy, etc., and 5.8 per cent by manufacturers and peddlers of liquors and tobaccos. Merchants, manufacturers, and common carriers.-There were collected as percentage taxes during the new fiscal year 1914, 12,175,566.11, as against P2,140,936.75 collected during the calendar year 1913. Of this amount 98 per cent was paid by merchants and manufacturers and 2 per cent by common carriers. Occupations, trades, and professions.-There were collected as specific occupation-license taxes during the new fiscal year 1914 p717,104.96, as against P668,492.32 collected during the calendar year 1913. Of this amount, 72.7 per cent was paid by the proprietors of cockpits and theaters, 27.3 per cent by lawyers, doctors, civil engineers, surveyors, brokers, photographers, and other occupatianlicense taxpayers. By the provisions of the internal revenue law the license-tax collections from owners of cockpits accrued intact to the treasuries of the various municipalities in which such taxes were collected. Six hundred and forty-nine municipalities availed themselves of the provisions of the law authorizing the imposition by municipal councils of additional taxes on cockpits. The rate of the additional license taxes thus imposed ranges from P4 to P12,500 per year. There were 16 municipalities in which no cockpit licenses were issued during the period covered by this report. (Ccdulas.-There were collected from the sale of cedulas personales during the year P4,090,130. as compared with 14.081,347 dlring the preceding year, an increase of P-8,783. There were sold 26,970 nore cedulas during the year than during 1913, the greater increase

Page  256 256 REPORT OF THE PHILIPPINE COMMISSION. in the number of cedulas sold as compared with the increase in tax being due to the larger proportion of cedulas sold before the delinquency period arrived in 1914. BANKS ANDI) BANKERS. The following comparative statement, based upon the taxes assessed and collected, shows the average amount of capital employed by. average amount of deposits with, and average amount of circulation by banks during the period from July 1, 1912, to June 30, 1913, and from July 1, 1913, to June 30, 1914: July 1, 1912, to July, 1913, to June 30, 1913. June 30, 1914. Average capital.........................1.................... - - 4. 624, 603. 16 P! 1,925,970. O Average deposits................................................... 29,885,713.37 29,006, 2-5.00 Average circulation................................................. 5, 38. G83. 69 5,353,973.89 INSURANCE COMrPA-NIES. The following table, based on tax statements rendered, shows the total amount of each kind of insurance on which premiums were paid and the average rate of premiums paid during the calendar years 1912 and 1913: Total amount Average Total amount Avereao Kind of insurance. rate of rate of of insurance. premium. of insiu.rance. pmi 191?. Per cent. 1913. Per cent. Fire...................... -...............P 159, 019,638.36 1.1 160,462,784.91 1.2 Marine............................... 145,064,016.51.35 140,514,668.95. Life............................... 26, 510, 480.33.......... 32,842,491.00 Accident.............-................... 585,000.00.5 1,161,345.00.86 Fidelity and surety........................... 2,755, 278.19.6 4,469,374.57.8 Typhoon and earthquake.................... 1,015,410. 00.6 1,635,075.00.5 Motor cars.................................................187,510.00 5.2 Personal baggage..................................................... 9,850.00 1.9 FRAN CIISE TAXES. Of the amount of franchise taxes collected, P131,924.94 accrued to the insular treasury, PD75,068.26 to the city of Manila and other municipal treasuries, and P4,779.17 to provincial treasuries. INCOME TAX. The collections in the Philippine Islands during 1914 under the income-tax law of Congress of October 3, 1913, amounted to P285,932.85. Owing to the distance from Washington, it was some time before the proper forms and regulations were received in Manila, which caused many persons to become delinquent in the filing of their returns. It appearing that it would be unjust to exact penalties from persons who were in no way to blame for the delay, the penalties incurred by delinquent persons were remitted by this departmelnt

Page  257 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 257 acting under the authority contained in section 5293 of the United States Revised Statutes, in connection with paragraph M of the income-tax law, upon the condition that the returns be filed on or before May 1, 1914. The first year has seen a vigorous educational campaign by the internal revenue officers, intended to familiarize the public with the provisions of the law. The collection of the full amount of taxes due could not be expected under such a complicated law as the income-tax law during the first year of its enforcement. It is therefore reasonable to presume that the collections from this source during the year 1915 will be considerably augmented. OPIUM. The following is a summary of the operations under the opium law (Act No. 1761) during the period from March 1, 1908 (the date on which the importation, traffic in, use and possession of opium, except for medical purposes, became unlawful), up to and including June 30, 1914, the latter date being the last day upon which the bureau of internal revenue was charged with enforcing this law: Persons charged with violations_ -—. ---- 8 --- —------ ss23 Convictions (including cases compromised) - - - -------, 44G Total amount of fines imposed__ --- —-------------- 01406. 16 Total.amount of fines paid, including fines in cases pending June 30. 1914, paid up to Dec. 31, 1914 --- —-------------------- 9615.090. 8 Imprisonment sentences _._. — ------------ --------—.- 83 S Alien offenders deported ----—. — ------------ ------- 19 LEGISLATION. Several important acts bearing on the bureau of internal revenue have been passed by the Philippine Legislature and the Philippine Commission during the year just ended. The most notable of these is Act No. 2339, the internal-revenue law of 1914, being "An act revising and consolidating the laws relative to internal revenue." This law is a remarkably simple, straightforward, and complete exposition of one of the most complex subjects of legislationtaxation. Act No. 2339 includes in one act what was formerly included in Act No. 1189, the internal-revenue law of 1904, as amended, Act No. 1519, the weights and measures law, as amended, and those porltions of Act No. 1761, the opium law, which pertained to the taxation of opium and other prohibited drills and the regulation of the legal traffic in said drugs. The same Legislature which enated Act No. 2339 shortly afterward passed Act No. 2381, which is a revision of the opium law. The most important feature of Act No. "281, as it affects the bureau of internal revenue, is section 11 which provides that the chief of constabulary shall exercise slpervision over the enforcement of the act. Act No. 2339 was made ap)licable to that part of the Philippine Islands inhabited bh Moros,and other non-Christian peoples bv Act No. 2402 of the Philippine Comnission, and Act No. 9381 Was made applicable in the same territory by Act No. 2403 of the Philippine Commission. A lonfer time in which to pay bank and license taxes was provided feor in Act No. 2339. It was impossible to pay these taxes within the 8329 —1 5-V

Page  258 258 REPORT OF THE PHILIPPINE COMMISSION. time fixed by Act No. 1189 and the time was formerly extended by regulation of the bureau of internal revenue. In the latter part of 1913 the insular auditor questioned the legality of this proceeding and insisted on the collection of back penalties from the banks which had acted entirely in good faith and had paid the taxes due from them within the time granted them by the collector of internal revenue. Accordingly, in order to remedy the condition, the Legislature passed Act No. 2336 to afford relief to these banks and to ratify the action of the various collectors of internal revenue in extending the time for the payment of these taxes without penalty. During the year 1914, owing to the European war, the revenues began to fall off to such an extent as to make additional sources of revenue imperative. Pursuant to the recommendation of the Governor General in his message to the Third Philippine Legislature, there was enacted on December 23, 1914, Act No. 2432, entitled "An act amending act numbered twenty-three hundred and thirty-nine, the internal-revenue law of nineteen hundred and fourteen, by imposing increased and additional taxes, and for other purposes." It was estimated that in the neighborhood of P5,000,000 additional internal revenue would be needed to meet the needs of the government during the year 1915. Act No. 2432 was intended to meet that need. Among the new taxes imposed, the following are worthy of mention: An ad valorem tax of 1 per cent on the output of mines. A specific tax on motor spirits and refined or manufactured mineral oils. A specific tax on coal. The most notable of the increased taxes imposed are the following: P'ercentage tax on business from one-third of 1 per cent to 1 per cent, except in the case of common carriers, against whom a tax of 1 per cent was already imposed. An additional tax upon proprietors of cockpits of 25 centavos for each cockfight. The tax on distilled spirits produced from palm sap or cane was increased from 25 centavos to 35 centavos per proof liter. The tax on beer and other fermented liquors was increased from 4 centavos to 6 centavos per liter. The tax on smoking tobacco was increased from 48 centavos to 60 centavos per kilogram. The tax on cigars was changed from a tax of i2, P4, and P6, respectively. according to the wholesale price, to a flat rate of P6 per thousand for all cigars. The tax on cigarettes weighing not more than 2 kilograms per thousand was increased from P1 to P1.20 per thousand. This emergency revenue law provides that the increased taxation should be in force only during the year 1915. GENERAL BUSINESS CONDITIONS. Despite the European war, internal-revenue figures on the business percentage tax indicate that about the same volume of business was transacted during 1914 as during 1913. These taxes amounted to 22,175,566.11 during the year, as compared with t2,140,936.75 during the preceding year. This tax fell off about 14 per cent iln

Page  259 REPORT OF THE SECRETARY OF FINANCE AND JUSTICE. 259 Manila and about 6 per cent in the principal hemp and copra producing provinces. On the other hand, there was an increase of 24 per cent in the sugar provinces. The business done in the other provinces shows a slight gain. The decrease in the value of imports is reflected in the decrease in the percentage tax collected in Manila. The falling off in business taxes collected in the hemp and copra producing provinces is explained by the decrease value of hemp and copra exported during the year, as compared with the preceding year, while the increase in the value of sugar exported is accompanied by an increase in the business tax collections in the provinces where sugar is grown and marketed. Respectfully submitted, VICTORINA MAPA, Secretary of Finance and Justice. To the PHILIPPINE COMMISSION.

Page  260 I

Page  261 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. SIX MONTHS ENDING DECEMBER 31, 1913. GENTLEMEN: I have the honor to submit the thirteenth regular report of the secretary of public instruction. Because of the change of the fiscal year to coincide with the calendar year, the report covers only the six months ending December 31, 1913. As you know, I assumed office as secretary of public instruction on the 1st of December, but did not arrive in Manila until after the close of the year. In consequence, the matters referred to herein were transacted under my predecessors, and I shall not endeavor to do more than make a brief report of these matters, reserving my comments and recommendations for a later period. On the 16th of October Hon. Newton W. Gilbert, who for the past few years has occupied the office of secretary of public instruction, left the Philippine Islands on leave of absence, and subsequently resigned from the service. Following his departure and until I arrived the affairs of the department were administered by the Hlon. Rafael Palma, the senior member in point of service of your honorable body. I shall review the work of the department under the headings of the several bureaus. BUREAU OF EDUCATION. Following the death of Mr. Frank Russell White, on August 17, Mr. Frank L. Crone was in September promoted to the directorship; Mr. Charles H. Magee to be assistant director; and Mr. John D. I)e Huff, theretofore superintendent of city schools, to be second assistant director of education. These gentlemen have entered upon the discharge of their duties. The allotment of 1f50,000 which last July the Governor General made for the purpose of opening a thousand new primary schools was supplemented by the legislature in November by an appropriation of P175,000, thus providing the sum necessary to maintain these schools during the year. This increase has been followed by an increase of more than 100,000 in attendance. For September, which may be taken for a typical month, the enrollment was 525,959. Of these boys and girls, 486,511 were in the primary grades, 33,579 in the intermediate grades, and 5,869 in the secondary grades. The total number of schools was increased from 2,934 in March of last year to 4,304 in September. In August the percentage of attendance was 89. The following synopsis of the organization of the bureau of education, which is taken from the current report of the director, may be of interest: The general office of the bureau, as organized at the present time, consists of the offices of the director of education, the assistant director of education, and the second assistant director of education, the office of the chief clerk, and 261

Page  262 262 REPORT OF THE PHILIPPINE COMMISSION. seven divisions-property, accounts, industrial instruction and publications, technical, buildings, academic, and records. To each director there are as signed certrin lines of work. The director has under his direct charge the following: Salaries, discipline, appointments, assignments of teachers, buildings, appropriations, and questions of policy and administration. The assistant director: Industrial instruction, property, and, for the present, office managenment. The second assistant director: Public.tions, statistics, except industrial information, courses of study, textbooks, and examinations. In addition to the duties enumerated, both assistant directors attend to such special duties as the director may assign to them. The field organization of the bureau of education consists of 37 divisions, including the Philippine Normal School. the Ihilippine School of Arts and Trades, and the School of Household Industries, which are considered as distinct divisions. and the Philippine School of Commerce and the School for the Deaf and the Blind, which are insular schools under the administration of the superintendent of the city of Manila. Under the control of division superintendents are 33 provincial schools, all of which give one year of high-school work, 27 two years, 17 three years. and 14 the full high-school course. There are 17 provincial trade schools, not including the Philippine School of Arts and Trades, the principals of which respond directly to the local division superintendent. the remaining provinces being supplied with manual-training departments attached to the provincial high schools. The divisions are divided into districts., the lowest nnumber for any province being 2. the highest number 15, in charge of supervising teachers, who respond directly to the division superintendent of schools. Of the 314 supervising teachers, 185 are Americans and 129 Filipinos. In addition. 33 provinces are supplied with division industrial supervisors. The total number of industrial supervisors is 78. of whom 44 are Americans and 34 Filipinos. There are in the various provinces, including the trade schools. 277 intermediate schools. Of this number 120 respond directly to the local division superintendent of schools, while the remainder are directly under the control of supervising teachers. As a general rule the Important intermediate schools are independent of the control of the supervising teacher. The duties of the supervising teacher are thus outlined by the director: While the duties of the directors of education and division superintendents are readily understood, there seems to be a lack of understanding as to the functions of supervising teacher. This is due somewhat to the fact that the supervising teacher is often referred to as a "supervisor." The bureau of education has been very careful to retain the term "supervising teacher," since it exactly expresses the function of this official. He is not only a supervisor, and as such in charge of the business control of the schools within his district, but he is in every sense a teacher, and the greater part of his work will consist of teaching for some time to come. The nature of the instruction given by the supervising teacher changes from year to year. At first a large number of the teachers were in the lowest primary grades. As long as this was true it was necessary for the supervising teacher to confine his efforts largely to instructing his teachers in the most elementary work. It often happened that the teachers taught one day what they had learned the day before. As soon as the teachers reached a certain degree of aca demic attainments the instruction took the direction more and more of training in methods, school organization, 'etc. At the present time, although a large majority of the teachers have co(mpleted the intermediate course, and although many are of secondary attainments, few, if any, enter the school service with a thorough knowledge of school organization and methods of teaching. Strictly speaking, the supervising teacher serves as a critic teacher, and must guide and direct the teachers under his charge. He must ascertain their weaknesses and correct them as far as is possible. He must teach them how to keep their registers and make reports. He is in a position to advise his subordinate teachers as to the best manner of dealing with the people of his community. Athletics, industrial work, and school programs require his careful attention. In addition to these functions as a teacher, the supervising teacher lULS many other duties. He either makes out or approves pay rolls and expe)se accounts. This is no small task, especially if he is in one of the larger districts which may contain as many as 11 towns. If a school building is to be (con structed, much of the work of securing a suitable site falls on him. In n- (s

Page  263 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 263 aises he takes the initiative. In securing temporary school buildings much of tle work falls on the supervising teacher, even if the mulnici)al officialls are energetic and helpful. Before the people of the community he represents the bnrea1u of education. and questions come to him constnntly for discussion and decision. He is expected to make out attendance reports, special reports as called upon, and to handle the property of the schools of his district. In iiany eases the supervising teacher has tlken so deep an interest in the people of his district that he finds his slpre time taken up in service to the comminunity in general. Many have supplied themselves with simple remedies to treat the vnrious diseases which are easily cured at the begiining but which result in the de:th of many people annually. While there has been no epidemic in recent years. the experience gained lduring the cholera olltlreak of 1902 and epidemics of fever since that time leave no doubt that the supervising te;clhers stand ready to help wherever they may be, even where their own lives may be endangered. FINANCES. The regular appropriation for the bureau of. education for the six months amounted to P1,810,000 for work in the Christian provinces and '126,850 for the support of non-Christian schools. In addition, there were appropriations for the school year of Pr50.000 for the support of teachers who were sent to insular schools for further instruction, p30,000 for the support of students receiving similar instruction, and P:50,000 for the maintenance of the School of Household Industries. For the construction of school buildings P250,000 were available during the fiscal year for aiding municipalities in the construction of barrio schools and T150,000 for aiding municipalities in the oonstruction of central school buildings. Provincial support.-Provinces are authorized to support provincial, secondary, agricultural, commercial, and normal schools. The bureau of education furnishes the teachers; the provincial expenditures are limited to the construction of school buildings, rent, and miscellaneous incidental expenses. Figures are not at hand yet to show the amount spent during the period covered by this report, but during the last fiscal year the sum was P183,285.63. Municipal support.-The majority of the schools are supported by the municipalities in which they are located. They furnish the teachers and pay the expenses of the schools. Municipal revenues for these purposes are derived from the land tax, a proportion of the internal-revenue collections, and direct transfers to the school fund from the general fund of the municipalities. During the last fiscal year municipalities paid for the support of their respective schools the sum of P2,211,091.36. TEACHING FORCE. The most important work which the schools have been called upon to do is the training of Filipinos to serve as teachers in them. For this purpose the normal school was created, and recently there has been established in the university a course-in teaching. For several years the government has also made direct appropriations to enable promising teachers to take additional study and training in special Schools, and to send each year to these schools a number of the brightest pupils in the various public schools, in order that they might be directly trained for teaching. In this way a satisfactory Filipino teaching force has been built up and insular teachers reeeive a fair salary for their services. On the 31st of last March

Page  264 264 REPORT OF THE PHILIPPINE COMMISSION. there were employed in the public schools some 9,483 teachers, including about 150 student apprentices. Of these, 7,671 were municipal teachers-that is, they are employed by and receive their salary directly from the municipalities; 1,812 were insular teachersthat is, they are employed by and receive their salaries directly from the bureau of education-658 were Americans; and 1,154 were Filipinos. The American teachers were employed in the following work: Teach- Supering. vising. Primaiv..............................1.......... Interm ediate............................................................... 166.......... Secondary........................................................................... 153 Industrial.................................................................... 7642 Supervisors........................................................... 206 The average annual salary received by insular Filipino teachers is P609.54. This, however, includes a number of teachers in the nonChristian provinces who receive small salaries. If those are eliminated the compensation of Filipino insular teachers averages P654.95 a year. The average annual salary of American teachers is H2,793.19. It will be seen at once, therefore, that if the teaching force should be completely Filipinized there would be a saving of over P1,000,000 a year in the insular school budget. There is no difficulty in obtaining municipal teachers. During the past school year 10,938 boys and 4,102 girls completed the primary course, while 3,643 boys and 1,052 girls completed the intermediate course. From this number an adequate supply of municipal teachers can, of course, be drawn. The substitution of properly trained Filipino for American teachers is more difficult, however, inasmuch as the work which they are called on to perform requires that they must have completed the secondary, and, in some cases, a university course. During the past school year 284 boys and 58 girls completed the secondary course, while the director of education states that during the present year nearly 400 boys and 75 girls will be graduated therefrom. The majority of these graduates would be qualified to teach in intermediate schools, and some, perhaps, in secondary schools. In addition, a large number of young men and women are graduated each year from the normal school and the university. These graduates should be qualified to occupy any position in the teaching force where experience is not a prerequisite. It is not desirable, nor would it be possible, completely to Filipinize the schools at the present time, but it would seem that as the American teachers from time to time leave the service, their places should be filled by young Filipinos who have been trained in the public schools, and that now there is a sufficient supply to take their places. In view of the decreased revenues of the government, it would seem that only in this way could the normal growth of the school work be provided for. THE DESIRE FOR EDUCATION. The intellectual awakening of the Philippines which followed the American occupation and the establishment of a mcdern school system is one of the most gratifying results of American control in the

Page  265 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 265 islands. Everywhere there is the keenest desire for education, and a large proportion of the boys and girls who finish one school desire to enter another, so that the demand for intermediate, secondary, and university education is far greater than can be met. Where intermediate and secondary schools have been opened it is almost impossible to close them, even though the pupils can be accommodated elsewhere and there are no funds for their support. In many cases private citizens themselves desire to raise funds for the salaries of teachers and the general expenses for schools which must otherwise be discontinued. It is because of this intellectual awakening and desire for growth and development that the American teachers have an opportunity of doing so important a work in introducing western methods and ideals, and in keeping the schools in close touch with western culture. Through the introduction of English, the people of the Philippine Islands have had access to a literature undreamed of by them, and, not only in the schcols, but in the public libraries, works of history, travel, biography, and science are greatly sought, not only by the coming generation, but by many of the older generation who learned English because they found that their horizon was immeasurably widened through the reading of English prose and verse. INDUSTRIAL INSTRUCTION. The industrial work in the schools continues quite satisfactory. Each year sees an increase in the number of boys and girls who have learned some useful art or trade, and almost all pupils who have at one time or another been in the public schools have learned to malke something with their hands. CONSTRUCTION OF SCIOOL BUILDINGS AND ACQUISITION OF SCHOOL SITES. During the past six months 26 Gabaldon school buildings were completed, which brings the total of these buildings up to 206, containing 780 classrooms. The various branches of the CGovernment now possess a total of 618 permanent school buildings with 3,252 rooms. During the period from June 1 to December 31 last, 175 standard barrio sites were secured and 56 standard central sites. Our schools now possess 818 standard barrio sites and 445 standard central school sites. A standard site is one which provides sufficient ground for a lawn, gardens, playgrounds, and accessory buildings. INSULAR SCHOOLS. The School of Household Industries, which instructs mature women in lace making and embroidery, has continued to show satisfactory results. Its graduates now number 250. Other insular schools are in thoroughly good condition. Last June, with the cooperation of the bureaus of navigation and customs, a course in samanship was opened in the Manila School of Arts and Trades. About 30 pupils are enrolled in this course, which, it is hoped, ill furnish an adequate supply of trained navigators for interisland ships.

Page  266 266 REPORT OF THE PHILIPPINE COMMISSION. EDUCATIONAL WORK A3MONG TIHE NONCHRISTIAN PEOPLE. No changes in the character of this work have been made during the period covered by this report; in consequence there is nothing of special interest to be noted herein. PRIVATE SCHOOLS. The following general statement of the work of the private schools is taken from the report of the special representative of the secretary of public instruction, who deals with these matters: The work with the private schools and colleges during the past year has been characterized in general by an eagerness on the part of the institutions concerned to become thoroughly acquainted with requirements made by the Secretary of public instruction, and by willingness and endeavor to conform to those requirements. Special attention has been devoted to the further substitution of English instruction for Spanish in the higher courses. With few except ons all primary and intermediite work is at present in the English language. There has been improvement in the quality of instruction given. This is especially true of the primary and intermediate courses. Considerable time has been given to the introduction and standardization of industrial instruction end sonie progress can be reported in that important phase of school work. Athletic g.mnes have been emphasized, and not only the boys' colleges but also some of the girls' colleges have taken up the various gaies with enthusiasm. More uniformlty has been attained in the courses in the several schools and more definite and more satisfactory -arrangements have been made governing the relations of private schools among themselves and with the public schools. The following is the list of private schools and colleges which have received Government approval: Colleges. Authority granted. Ateneo......................... Bachelor of arts... San Beda........................- -..do............. Silliman............................ do........... San Juan de Letran...................do............. Assumption.......d......................... Colegio Seminario....................do....... San Virente de Ferrer................. do............. San Caries..................do......... San Arustin...........................do............. San Alberto Magno....................do........... San Jacinto...........d.............do............ St. Vincent of Paul............ do.......... Lice....H..................... High School...... La Consolaci6n.............. do............. La Salle................,........ do............ Assumption.................... do............. St. Scholastia........................do............. Burgos Institute......................do............. Cole.id-Merc-antil...................do.... St. BrilHet's Academy................ do........... Ntra. Sra. del Rosario.............. do.......... Centr) Escolar.................... do............. Coleio-Seminario.....................do............. Rosary............................ Intermediate...... La Concordia....................... do............. Sta. Isabel.......................... do.......... Inmaculada Concepci6n........... do............ Instituto de Mujeres............do............. Sacred Heart................... do............. Sta. Isabel.............................do............ St. Agustin's School..................do............. Jaro Girls' Academy..................do........... Industrial School Rep.,.................do............ Sta. Rosa...........................do............ La Beaterio..........................do............ St. Agnes Academy...................do......... San Jos6.......................do........... Tondo Convent................ Primary Holy Ghost............................ do............. Light of To-morrow............... d......... 1" do....... Date of ap- Course Location. prova _ adopted. I May 12,1908 May 3,1910 Feb. 11,1910 Apr. 8,1910 June 11,1910 Jan. 11,1910 June 16,1910 Feb. 19,1912 Dec. 2,1912 Jan. 15,1913 June 6,1913 Nov. 19, 1913 June 3,1910 Feb. 4,1910 Feb. 19,1912 Feb. 23,1912 Jan. 15,1913 Jan. 20,1913 May 21,1913 June 19,1913 Jan. 20,1913 Jan. 11,1911 Jan. 15,1913 Jan. 11,1911....do........,..do.... June 28,1911 Feb. 23,1911 Aug. 16,1913 Aug. 11,1912 Jan. 15,1913 Feb. 26,1913.....do........ Jan. 15,1913 Feb. 10,1913 Dec. 2,1913 Feb. 16,1912 Feb. 26,1913 Aug. 16,1913 Dec. 16,1913 I I Stahdard.........do...........do............do..........do...........do............do............do...........do...........do............do............do............do....... do...........do............do............do............do............do..........do...........do............do............do..........do...........do..........do...........do...........do............do...:........do..........do...........do............do...........do...........do...........do...........do............do...........do........... do. —.... Manila. Do. Dumaguete. Manila. Do. Vigan. Jaro. Cebu. IlIlo. Dagupan. Tucuegarao. Calbayog. Manila. Do. Do. Iloilo. Manila. Do. Do. Batangas. Manila. Do. Nueva Caceres. Vigan. Manila. Do. Cebu. Manila. Tuguegarao. Nueva Caceres. Tagudin. Jaro. Do. Manila. Do. Albay. Jaro. Manila. Tayum. Malabon. NOTE.-Colleges having authority to grant the degree of bachelor of arts have also authority to grait primary and intermediate certificates and high-school diplomas.

Page  267 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 267 BUREAU OF AGRICULTURE. Conditions as regards staple crops have been satisfactory during the past six months. At the time of planting it seemed that the rice crop, which would be harvested during the latter part of 1913, would be as large as the unusual crop of the preceding year. During the growing season, however, weather conditons were not favorable, so that the yield is estimated to have been some 20 to 25 per cent less.. The area planted to corn continues slowly to increase, and it is believed that when the figures have been compiled a slight increase in the yield per hectare will also be found. Corn has become one of the staple crops of the islands, and its planting is widespread throughout them. The sugar crop should equal, if not prove greater than, that of last year. There is also an increase in the output of centrifugal sugar. This is most satisfactory and encouraging. inasmuch as centrifugal sugar commands a much higher price than native sugars. At the San Carlos factory planters received as much for their cane direct from the fields as they formerly received for their manufactured sugar. Several modern plants have been installed during the vear, and several are in process of construction. During the first half of the last six months there was a fair output of copra, but in Laguna and Tayabas, which are large producers of this product, a severe drought greatly reduced the production for November and December. While the tobacco crop is not large, it is fairly satisfactory. The production of hemp has gradually increased, but the quality, unfortunately, continues to be low. The amount of maguey planted continues slowly to increase, while the quality of the fiber renains practically as it has been heretofore. There have been no serious outbreaks of rinderpest, and the area of infection has been steadily reduced. Although the numbler of provinces infected at the close of the year was the same as on June 30, the number of infected municipalities was reduced from 23 to 6i; and of infected barrios from 71 to 20. The locust pest, which at one time threatened to sweep the islands, was fortunately kept under control by means of a thorough organization of a trained force in the bureau to combat it. During the period covered by this report the number of permanent American employees has been reduced from 91 to 89, and the temporary employees from 64 to 58. The number of permanent Filipino employees has been increased from 70 to 77, while the temporary employees have been reduced from 266 to 227. These reductions have come largely through retrenchment in the veterinary division. On December 31 there were in the bureau 145 American employees and 304 Filipino employees of all grades and classes. DIVISION OF ANIMAL HUSBANDRY. This division has to do with the purchase of live stock required by the insular government and the city of Manila; the sale of animals raised by the bureau; the management of the Alabang and Trinidad stock farms; and the supervision of public live-stock breeding. During the period of this report 152 animals were purchased and 98 sold. For breeding purposes 3 stallions and a number

Page  268 268 REPORT OF THE PHILIPPINE COMMISSION. of high-grade Berkshire hogs were imported from the Uh;ited States. Nothing noteworthy has taken place at the Alabang stock faril. The work of fencing has been continued. Pastures planted with paspalum have become available, and the brood mares and young stock turned into them for pasturage were kept in thoroughly satisfactory condition. One of the most important features of the work done at Alabang is the raising of high-class boars for breeding purposes, and to this end quarantine shed No. 4 has been remodeled as a swine shed. At the Batangas breeding station it has been demonstrated that pure-bred stallions may be subsisted on forage grown locally, and Rhodes grass has been substituted for timothy hay. Public livestock breeding was carried on in Batangas, Catanduanes, Manila, Rizal, Ilocos Sur, the Mountain Province, and Occidental and Oriental Negros. VETERINARY DIVISION. No shipments of cattle or carabao were received from Indo-China, while 70 head of dairy and breeding cattle were imported from Australia. On December 6 General Order No. 31 was promulgated, providing for the importation of cattle and carabao from French IndoChina at the port of Iloilo, where they are to be immunized against rinderpest. During the same month a veterinarian was sent to Hongkong to immunize cattle and carabao which it is proposed to import under the provisions of General Order No. 4, dated November 8, 1911. Shipments from interisland ports to Manila amounted to 3,525 cattle and 1,003 carabaos. These animals are now subject only to a 10 days' quarantine in Manila. Wiinderpest campaign.-On July 1, 1913, rinderpest was known to exist in Albay, Bulacan, Cagayan, Ilocos Norte, La Union, Pampanga, Pangasinan, and Tayabas. On December 31, of these provinces, only Cagayan, Ilocos Norte, Pampanga, and Pangasinan were known to be infected, while the disease had reappeared in Batangas, La Laguna, the Mountain Province, and Tarlac, so that the total number of provinces infected was the same. The greatest number of provinces infected at any one time during the period covered by this report was 10; the smallest 5. The number of municipalities infected at the beginning of the period was 23 and barrios 71. The number at the close of the period was: Municipalities, 16; barrios, 20; while the number of new cases per week had been reduced fr(ol 76 to 29, and the deaths per week from 54 to 22. During the entire period 1,536 cases were reported, with 946 deaths, as compared jith 1,900 cases and 1,094 deaths during the preceding six months. The only province in which thoroughly satisfactory progress has n(ot been made is Pampanga; it continues to show a greater amount of disease than any other one province. Considerable work in the way of immunizing has been done at the Calamba sugar estate and in Ilocos Norte. Between October 1 and December 31, 1,062 animals were immunized in the municipalities of Dingras and Solsona, Ilocos Norte, with only 9 losses, and at a trifling cost for serum.

Page  269 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 269 DIVISION OF AGRONOMY. Experimental work with rice and corn has been continued. Experiments with sugar cane have been continued both at Alabang and La Carlota. Forage crops.-It has been demonstrated that Rhodes grass can be satisfactorily grown and cured in the Philippines, and that it produces a hay quite as nourishing and palatable to stock as timothy. Unfortunately the use of corn fodder is not general. With the increased production of corn a large quantity of fodder could be gathered each year, if only the people could be taught to use it. DIVISION OF HORTICULTURE. More positive results of an economical horticultural nature have been had during the last six months than during any previous period of the same length in the history of the bureau. Heretofore the work has been in large part preparatory. Direct benefits to the Philippine planters are now beginning to be realized. Some 50 kilos of roselle seed have been produced for distribution, and a large number of pineapple suckers have been sent out. A thousand seedlings of the alligator pear are being distributed to cooperators and planters. From the Singalong experiment station 13,500 trees, plants, roots, and cuttings have been distributed to government institutions and farmers, and over 200,000 packages of tested seeds were distributed without charge to growers. LOCUST EXTERMI.NATION. As has been stated, wide damage to the crops was threatened by the locust infestation of the present year. An additional appropriation of P50,000 for combating it was made by the Legislature, and through the active cooperation of insular, provincial, and municipal officials excellent results were obtained. Field operations in cooperation with provincial officials were carried on in Albay, Ambos Camarines, Sorsogon, Tayabas, Batangas, La Laguna, Cavite, Rizal, Bulacan, Pampanga, Nueva Ecija, Occidental Negros, Iloilo, Pangasinan, Tarlac, Capiz, and the Mountain Province. Aside from the field operations a large amount of important data on the locust question, has been collected by the bureau, and the effect of defoliation from locust attacks on sugar cane, corn, and coconuts has been studied. It has been found that there are 10 crops seldom or never attacked by locusts which can be planted during the periods of severe infestation-camote (three varieties), mongos, camoting cahoy, gabi, ubi, cowpea, banana, tobacco, maguey, and beans. FIBER DIVISION. While a marked improvement has been noticed in the condition of hemp plantations, they have not vet recovered from the ill effects of the droughts and typhoons of 1912. Unless extraordinary setbacks are met with thev should, during the year 1914, regain their former condition of productiveness. A large number of plantations, howevrl, are too old and must be renewed if the industry is to be further

Page  270 270 REPORT OF THE PHILIPPINE COMMISSION. developed. The average quality of hemp produced in the Archipelago Continues to be low and unsatisfactory. The director of agriculture gives the following explanation of this fact: A thorough investigation of the recent tendency on the part of producers to prepare low-grade instead of high-grade fiber, or, in other words, to g lin quantity at the expense of quality. has shown that the fundamental reason for this action is the lack of sufficient discrimination in prices in the grades of fiber above " midway," on the part of buyers. For instance, " superior good current" and " good current " were paid for in Leyte at the rate of 30 and 25 centavos per kilo, respectively; while the prices paid at the time in Manila for the same grades were 55 and 45 centavos per kilo, respectively. On the other hand, "current U. S." and " superior seconds" were paid for in Leyte at the rate of about 18 and 14 centavos per kilo, as compared with 22 and 19 centavos per kilo paid at the time in Manila for the same grades. In other words, the Manila and Leytd prices for abacd during December were as follows: Price per kilo. Differenee. Manila. Leyte. Centa- Centa- Centavos. vos. vos. Superior good current........................................................... 55 30 25 Good current................................................................. 45 25.0 Current U. S................................................................... 22 18 4 Superiar seconds.............................. —......... 19 14 5 These figures clearly indicate that the provincial buyers, while they pay legitimate prices for the grades " current " and below, hardly pay more than 60 )per cent of the Manila prices for the grades " good current" and above. At the above rate the producers justly claim that it is to their advantage to prepare the lower grades. A large portion of the blame for the present predomlinince of inferior fiber in the market, and, as a consequence, for the present critical condition of the abaca industry in general, is justly placed upon the shoulders of the provincial and municipal buyers. The producers, during the several colnferences they had with the chief of this division, have expressed unanimous desire to produce a higher standard of fiber providing they receive for these grades prices in proportion to the Manila prices, as they do for the lower grades. Conditions in the remaining aback provinces are essentially the same as in Leyte, and the producer is helpless against the buyer who manipulates prices at his pleasure. Unless the present condition of affairs is remedied, efforts toward improving the quality of abaca will be largely futile. Grading and baling. —In addition to the detrimental effect of the continued production of an inferior quality of abaca, the industry has recently suffered considerably from defective grading and baling of abaca and its adulterations by provincial buyers, with damaged fiber or with fiber of a wild species of Musa commonly known as " pacol." This evil has not only tended to discredit abacal in the world's markets, but it has also produced a condition in the local market bordering on chaos. The house marks of some establishments are so erratic and inconstant as to render impossible a correct conception as to what gri e they represent. The fiber is also often pressed damp and in such a tangled condition as to render imperative its regrading and rebaling by the exporters. As conditions exist at present, there is no general accepted standard of classific:ltion, no restriction as to manner of baling, and no protection to the exporters against defective or false grading and packing. In consequence of all this a large proportion of the fiber exported from Manila and Cebu is graded alnd belle1l twice, and the producer is, of course, indirectly paying for the mistakes, ne('ligence, or tricks of the provincial buyers. For every ton of abacnr the p1'1 -ducer has been paying p28, half of which is to cover the cost of grading.;it baling in the provinces and the other half for the same operations repeatedl i Manila and Cebu.

Page  271 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 271 Afaguey.-As I have stated there has been a slight increase in the production of maguey. During October an employee of the buireau of agriculture was sent to Siquijor, 'where, on the whole, the soil is poor, for the purpose of distributing maguey and sisal plants, and teaching the farmers how to plant and care for them. This dlistribi)1 -tion will be continued on a larger scale during the present ye'a r' Cotton.-Extensive experiments in the growing of cotton ate nlow in process, but definite res~ults can not be announced before the cotton plants have matured during the coming spring. The following fiber plants and seeds were distributed during the past six months: Maguey and sisal plants ----------------— pbuits-_ 47. 104) Kapok seed -----------------------— kilos-_ 810. 5 Cotton seed --- —-------------------— do --- 13 DEMONSTRATION AND EXTEN.\SION DIVISION. On F ebruary 7, 1913, the Legislature passed Act No. 2226 providing for the establishment of " stations for practical instruction in methods concerning agriculture and a System of agricultural (leinonstration and development." This act, which provides for the -annual expenditure of =P150,000, became effective on July 1, 191.3. in order to organize the work, the bureau of agriculture divided the Archipelago into 15 agricultural districts, and it is proposed to establ ish in each district a station from which cooperative-plot work can be Carried on with a force of traveling inspectors. On December 31 (1,1flo 1 -stration stations had been established in 10 districts and 18 pro, iic(3s. These districts are as follows: Distr-ict No. 1, Isabela and Caga van; district No. 2 Mountain Province and Nueva Vizcaya; district No. 3, Ilocos Norte, Ilocos Sur, and La Union; district No. 5, Pa.'mpargi), lBulacan, and Nueva Ecija; district No. 7, Rizal, Lagutna, and 0Ca ite; district No. 8, Batangas, Tayaibas, and Mindoro; District 'No. 9., Afi.bos Camnarines, Albay, and Sorsogon; District No. 11, j Ioil(o. Capiz,7 and Occidental Negros; District No. 13, Cebti, Bohol,;m11d Oriental Negros; district No. 14, Aguisan, Surigao, a nd MAlis'! mis. Just what it is proposed to do at these stations may be gathered f e the following statement of the director of agriculture regardingr the wINork of district No. 3: Ia July, 1913, an -agricultural inspector was sent to Vgn icSMi.t organize the demonstration work in this district, Nhiich iii liiiles tile 'i Of Ilocos Suir, Ilocos Norte, and La Union. a-nd covers 1ini arei 260 kIdlometer-s, I~~and fromn 10 to 70 kilometers!in width Th'le demlonstration wvork in this district has been (lividedl iiti) fomr suhd('' l(IiS-Ilocos Norte, Ilocos sur, Abra, Lnd I a nIon Eac Ie lilipiflo assistant inspector. in charge. With the he,-irty support of l)riiiileiil MInt municipal otticials, 52 plots for cooperative demionstration frinning wvere loCaItedl by the end of the year. Thirty-five of these plotts were 5(iO a 1tIaiitcd before the end of the ra~iny sea-son. The remaining plots wvill be lanited WWIt the first rains of may or June, 1914. The denionstratioll jilots aile (li vided ON'er the territory as follows: 110cos Norte --- —------------------------— 11 L-a Unioii --- —--------------------------— 12

Page  272 272 REPORT OF THE PHILIPPINE COMMISSION. So far the work in La Union has been with tobacco only; with the coming season, however, Moro maize will be planted. In the other divisions the plots were planted with Moro maize and American vegetables, the latter being sown in seed flats and later set out in the field. The tomatoes have produced well and matured fruit two weeks earlier than native varieties. Several of the cooperators have planted seeds of native citrus fruits to produce seedlings, which will be budded with better varieties. Many requests are being received for seeds and plants by farmers of this district who have seen the results obtained on the demonstration plots. The demand for better vegetables was so great that propagation tables, holding 12 seed flats each, were placed in the Vigan and Laoag markets, and tomato, eggplant, and papaya seedlings grown for distribution to the people coming to market. Seedlings were distributed and the boxes replanted about every 15 days. This method of distribution will insure the marketing of fresh vegetables the entire year. Although only a few seedlings were given to each person, the supply did not begin to satisfy the demand. This idea has proven so successful that it will be extended to other towns of the district. During the coming year efforts will be made to improve the native crops by better agricultural practice and to push the introduction, of new varieties that have proven successful. A nursery will be established in each province from which new and better varieties of fruit will be distributed. The various municipalities will be assisted in beautifying their plazas and in extending roadside tree planting. Demonstrations of steel plows and cultivators will be made. Tobacco-seed cleaners will be placed in the tobacco-growing regions for the free use of planters. BUREAU OF SUPPLY. The figures given in this report are approximate, inasmuch as statements of transactions in the United States have not yet been received and verified with the figures on hand. However, it is evident that there has been a decrease in the volume of business. Purchases during the period amounted to approximately T2,832,325.19, divided as follows: Percent. Amount. Purchased locally,9..1 4............................................. 69.5, 970,047.82 Purchased in the United States 2.................................... 28.2 808, 735.48 Foreign purchases............................................................... 1.8 53,541.89 The following table shows the total volume of sales for each year since the establishment of the bureau: Increase fiscal year- Amount. decrease (-). 1902.......................................................................... 19073................,,......................................... 1904..................................... 190.5 '............................................................ 1905.......................................................................... 1907...................................................... 1908........................................................................ 1909......................................................................... 1910.......................................................................... 1911.................................................................. 1912.......................................................................... 1913................................................................ 1913 (July 1 to Dec. 31)........................................................ Per cent. P1,970,549. 78..... --- 3,134,141.98 +59.05 5,309,474.37 +69.41 4,936,976.79 - 7.01 3,605,250.07 -26.97 3,311,572.52 - 8.146 4,275,990.23 +29. 12 6,002,615.14 +40.38 5,916,705.02 - 1.43 7,014,021.55 +18.516 7,518,357.20 + 7.19 7,001,095. 83 - 6.8 3,174,214.43 - 9.32 63,170,964.91.....-.........;L-CC Total..................................;.................................

Page  273 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 273 There was on hand December 31, 1913, merchandise of a cost value of approximately P2,212,000, an increase of about P42,103.22. This increase is due to the receipt of a large order of roofing iron placed in May, 1913. This iron is a substitute for Apollo steel sheets which has been used and which was found to be unsatisfactory. A heavier coating of spelter has been added and practical tests have shown beyond a doubt that iron deteriorates less rapidly than steel. and, although the iron sheets with the 21 ounces of spelter cost more than the Apollo steel, it is believed that the prolonged life of iron roof as against steel will result in a large saving to the government. The following table shows the percentage of operating expenses as compared with the net (cost) value of sales: Per cent. Per cent. 1902____ --- —----------- 16. 51 1909_ --- —-------------- 6. 78 1903 -__. --- —---------- 15. 52 1910__ --- —--- -------- -- 7. 54 1904_____ --- —----------- 12. 4 1911 ----- ------ 6.. 0 905 --- —- -------- 12. 50 1912 --- —__ --- —------- 7.49 1906_ --- —------------- 10. 92 1913_ --- —------------- 7. 73 1907______ --- —-------- 10. 77 191.3 (July 1 to Dec. 31)-____. 7. 60 1908 --- —--------- 8. 62 Notwithstanding the fact that the bureau of supply moved during November and December all sections but one of its immense stock from the old rented buildings into its new bodegas in the new port district, it has still shown a reduction in cost of operation. Now that the bureau is installed in its new warehouses, and by concentration of stock and labor, the estimated cost of operation will be reduced by approximately 185,000. The following table gives the volume of tonnage handled by the shipping division July 1 to December 31: Metric tons. Coal_ — ________________ --- —- ----- ----- 17, 914.50 Cokel__________ --- —---------------- 131.99 Cement (29,722 barrels) ----------- ---------------- 5.379. 68 General supplies: 531.030 packages ---- ---------------- ------- 22, 419.96 Foreign countries (46 packages) --- —- --------------- 13.00 Lumber (1,878,429 feet b. m.) ------------ -------------------.86 Total _. --- —. —. --- —-----------—. 49. 615.99 Changes in the personnel of the bureau during the six months' period ending December 31, 1913, were as follows: Thirteen classified Filipino clerks regularly appointed; separated from the service by transfer, discharge, and resignation, 7 classified Filipino clerks and 6 classified American clerks; promoted to the next higher rating, 8 classified Filipino clerks and 2 classified American clerks. The changes in the temporary and emergency employees were as follows: Appointments, 10 Americans and 11 Filipinos; promotions, 1 American and 7 Filipinos; reductions, 1 American and 1 Filipino; separations, 6 Americans and 6 Filipinos; discharge, 1 American; death, 1 American-a total of 20 Americans and 25 Filipinos. BUREAU OF PRISONS. Mr. Mortimer L. Stewart, former director of prisons, presented his resignation, effective December 31, and Mr.. A. Dorrington, assistant director, who had been granted leave of absence, cabled his 8329-15 —18

Page  274 274 REPORT OF THE PHILIPPINE COMMISSION. resignation from the United States, to take effect at the expiration of his leave. Dr. W. H. Dade, theretofore superintendent of San Ramon penal colony of the Moro Province, was appointed director of prisons. No assistant director has as yet been named. On December 31 the prison population of the islands was distributed as follows: Bilibid Prison_ --- —---------- --- 1 --- —--- ---------- 2, 10 Iwahig penal colony —___ --- —--------------------------- 1,083 Working at Corregidor__ ----------------------- 1,149 Constabulary stations~ -__ ---____ ------------------- 62 Working at provincial prisons — _______________ --- —----- 57 San Lazaro Hospital —____ —_ --- ----------- 45 Hospicio de San Jose______ —_ --- —----- 13 Loloniboy Institute --- —------ ----------- ------ 29 Luneta station___ --- —--- -------------- 25 Confined in provincial prisons___ — _ --------------- ------ 2,018 Total-__ --- —---------------- 7,191 On June 30 the total number of insular and provincial prisoners was 7,250, showing a decrease of 59 prisoners during the last six months. The average number of insular prisoners, however, was 5,322.84, an increase of 94.71 over the figures for the preceding fiscal year. BILIBID PRISON. On December 31, 2,710 prisoners were confined in Bilibid Prison, 167 less than were in confinement on June 30. The number of commitments by the courts was 2,054, a decrease of 149 over the preceding six months. A considerable decrease in commitments for adultery was noted, while those for embezzlement and misappropriation of funds remained about the same. The conduct of the prisoners has, in general, been quite satisfactory. They were divided on December 31 as follows: First class, 1,839; second class, 590; third class, 122; and 159 detention prisoners. MAINTENANCE. At Bilibid Prison the average total gross cost of maintenance of each prisoner was 00.31 —; at the Iwahig penal colony it Aas i0.46+; or an average for the two institutions of T0.34-4. The total net cost per prisoner was, at Bilibid p0.28+; at Iwahig, P0.39+; making a general average of P0.31+. INDUSTRIAL DIVISION. There was a considerable decrease over the preceding fiscal yenr during the six months ending December 31 in the receipts of this division. The income of the industrial division amounted to T147,034.62, the expenses to P120,924.62, leaving a profit of 126.110. which, added to T2,019.98, the profit of sales stock, shows a total profit of 128,129.98. RELIGIOUS SERVICES. Religious services have been conducted each Sunday by two rerular Catholic chaplains and by volunteer clergymen representing the various denominations of the city.

Page  275 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 275 PROVINCIAL PRISONS. The provincial prisons continue to show improvement in the matter of discipline, management, and sanitation. To a considerable extent this is due to the cooperation of the constabulary authorities who make monthly inspections of the various provincial prisons and report their findings to the bureau. SCHOOL WORK. On December 31, 1,596 prisoners were enrolled in the schools maintained in the prisons. This enrollment was divided as follows: Alphabet -----------— _ --- _ ------------- 545 Low chart_ ----___ — _____-___ --- —---------- 402 Advanced chart --- —___________ ------------- 205 First-year book-_________ _____ __ _____ --- —___ _ _ — 154 First reader_______________ 1 ---1 ---- ------- l( Second reader _-___________ ________ --- —------------ 82 Third reader__________ --- —-------------------- 22 Teachers ____ --- —----------------— 2 25 IMPROVEMENTS. The quarantine and contagious buildings and hospital kitchen have been completed and concrete floors laid in several buildings. HIEALTH. The general death rate was 20.62 per 1,000 per annum-a decrease of something more than 9 per 1,000 per annum over the fiscal year ended June 30, 1913. Tuberculosis.-The death rate for tuberculosis was 13.57 per 1.000 per annum, or almost double that for nontuberculous cases, which was 7.05. Of 627 prisoners examined for transfer to Corregidor, 129 were found clinically positive for tuberculosis. The medical authorities in the prisons are continuing their efforts to reduce the large mortality from this disease. IWAHIG PENAL COLONY. The colony population on December 31 was 1,176, divided as follows: Pelal colonists ---------------- -------- ---------- 1 Free colonists --- —----------------------- Colonists' families~1. Colonists' flamilies_ --- —------------------------------------------------ 1 Emli)loyees' families --- —----------------- ---------------- 21 Officers and employees -----------------------------------— 2 Total____ --- —----------------—, --- —------- 1,176 During the half year 122 colonists were received from Bilibid and 198 returned thereto. The value of colony products turned in during the period of this report was:13,382.30.

Page  276 276 REPORT OF THE PHILIPPINE COMMISSION. BUREAU OF PRINTING. On October 21 the resignations of Mr. John S. Leech, director of printing, and Mr. James A. Hoggsette, assistant director of printing, took effect, and Mr. E. E. Gessler, formerly superintendent of work, was designated acting director. On December 15 Mr. Gessler was named director of printing and Mr. Samuel H. Musick was promoted to be assistant director. On December 31 there were 470 on the rolls of the bureau, of whom 441 were Filipinos, 27 Americans, and 2 East Indians. The American employees are divided as follows: Administrative, 2; craftsman instructors, 16; clerical, 6; inspecting watchmen, 2; foreman of laborers, 1. The Filipinos were classified as follows: Craftsmen, 120; junior craftsmen, 36; apprentices, 124; machinists, 1; press feeders, 2; carpenters, 4; clerks, 24; cocheros, 7; helpers, 88; laborers, 27; messengers, 8. The cost of the product of the bureau during the period in question was P432,827.05. The present property assets of the bureau amount to something less than =1,000,000, which does not include the value of grounds and buildings or of the stock of Official Gazettes and public documents kept for sale. Due to the change of the fiscal year to coincide with the calendar year, -it has been impossible, on such short notice as was had, to obtain much of the data that is usually available for the annual report of this department. For that reason I have had to confine myself to a somewhat general statement of conditions existing in the various bureaus under the department of public instruction. The reports of the directors of these bureaus, for the six months ended December 31, 1913, are submitted herewith, and are recommended to the study and consideration of your honorable body. Very respectfully submitted. HENDERSON S. MARTIN, Secretary of Public Instruction. To the PHILIPPINE COMMISSION.

Page  277 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. FISCAL YEAR ENDING DECEMBER 31, 1914. DEPARTMENT OF PUBLIC INSTRUCTION, Manila, P. 1., April 10, 1915. GENTLEMEN: The undersigned has the honor to submit the fourteenth report of the secretary of public instruction covering the period January 1, 1914, to December 31, 1914. The undersigned arrived in Manila shortly after the beginning of this period, and within the next few months made two rather extensive trips for the purpose of familiarizing himself with the islands and their peoples. Sixtv-four towns in Romblon, Iloilo, Occidental Negros, Oriental Negros, Cebu, Bohol, Surigao, Leyte, Samar, Albay, and Camarines were visited on the first trip. On the second 34 municipalities in the Mountain Province, Ilocos Norte, Cagayan, the Batanes, Ilocos Sur, Abra, Union, and Pangasinan were visited. Although it was impossible to spend a very long time in any one town, either on these or later visits, yet the knowledge obtained has been found very useful. During part of the time covered by this report the undersigned was absent in the United States on official business. During part of my absence His Excellency the Governor General performed the duties of secretary of public instruction; the last part of the time Hon. Rafael Palma was acting secretary of public instruction. GENERAL STATEMENT. Greater interest in education was shown during the year 1914 than ever before, and, notwithstanding the liberal action of the Legislature, the resources at the disposal of the bureau of education were not adequate to meet all demands. Nevertheless arrangements were made to take care of as large a number of pupils as possible with the materials and force available. In the three chief lines of work satisfactory progress was made; the standard of attainment in academic instruction was maintained, and particular attention was given to improving English instruction; physical education was engaged in by a very large proportion of all pupils, and school grounds were, in many cases, used as public playgrounds; and industrial work was Standardized and adapted to meet local needs to a greater extent than ever before. lThe most notable advance in the work of the bureau of agricultlltr was in getting into closer touch with the farmers. In 23 provinces farmers ctltivated plots under the direction of the bureau staff. I'lle distribution of selected seeds and plants, visits by inspectors, tlie formation of cooperative agricultural societies, and the publicatiol of "The Philippine Farmer" helped to make the influence of 277

Page  278 278 REPORT OF THE PHILIPPINE COMMISSION. the bureau more strongly felt. Locusts and the rinderpest were troublesome, but their ravages were decreasing toward the end of the year. A useful service was rendered in pushing a popular food production campaign, an undertaking made necessary on account of the European war and the drought. The business carried on by the bureau of supply decreased, yet the cost of operation decreased in still greater proportion. In spite of economies, however, the reduction of the surcharge from 10 per cent to 5 per cent early in 1914 made the bureau fall a little short of being self-supporting. The purchase of rice from Saigon in the amount of P449,661.22 was an emergency measure designed to insure stability in the local market. The division of cold storage earned less than in 1913, due to the development during the year of private firms dealing in ice and in distilled and artesian water and to the lowering of the government rates charged for ice and water. The number of prisoners in charge of the bureau of prisons decreased about 6 per cent during the year, and there was probably a real decrease in crime. A decrease was also effected in the per capita cost of maintenance, while the ration was made more satisfactory. Various causes contributed to the reduction of the business done by the industrial division, the products of which have a deservedly good reputation for quality. The bureau of printing continued to emphasize the training of apprentices and junior craftsmen. The work turned out showed a decrease over that of the past year, but the difference between the product and the cost of operation increased, an indication of efficient management. The work of standardizing the private schools and' bringing them more nearly up to the degree of efficiency of the public schools was continued. Advances still remain to be made, especially as regards physical education and industrial training. On July 1, 1914, the privilege of the circulation division of the Philippine library was made free to all and the library became a real public library. This action, together with the opening of the periodical division on Sundays and most holidays, resulted in a very marked increase in the circulation of books, newspapers, and magazines. The use of the library by students from educational institutions, both public and private, increased greatly during the year. Act No. 2324 authorized the sales agency board to close up the agency's affairs at any time, and provided that it should be abolished on and after January 1, 1915. Act No. 2438 extended the time of its existence to include February 28, 1915. The function of the agency has been not only to sell articles but also to encourage the production of commercial articles. Naturally such preliminary development work has proved unprofitable, and the financial stringency made the continuance of the agency inadvisable. The University of the Philippines experienced a healthy growth during the year. The organization of the school of education il July, 1914, should prove helpful in preparing Filipino teachers fo' secondary schools. The number of students who are taking up gr'1i culture and forestry is encouraging, but in a few of the colleges the attendance is still small, despite the fact that they offer opportullities for both useful and remunerative careers.

Page  279 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 279 The public welfare board was organized during the vear for the purpose of coordinating the efforts of all government agencies and influences that were interested in social service work and of all private organizations that received government support for such work. The board also aims to promote the organization of private institutions that will render a social service and to investigate social conditions, in order to determine where relief is needed and the form it ought to take. A beginning in such work was made in 1914, and pending legislation will undoubtedly soon give the board a legal status that will enhance its power for good. Following this is a brief account of the work of the several bureaus in this department. Respectfully submitted. HENDERSON S. MARTTN, S ecretary of Public Instruction. To the PHILIPPINE COMMISSION, Manila, P. 1. BUREAU OF EDUCATION. GENERAL STATEMENT. THE YEAR'S WORK. In practically every line of work substantial progress is to be reported. The following figures indicate the increase in the number of schools, teachers, and pupils: 1912-13 1913-14 Number of schools................................................................. 2,934 4,235 Number of teachers....................................................... 7,671 9,462 Annual enrollment......................... 440,050 621,030 Average monthly enrollment.................................................... 329,7.56 489,070 Average daily attendance.................................................... 287, 455 428,552 The percentage of attendance was 88. As a result of the establishment of additional schools, which reqtired many new teachers, the improvement in the attainments of Filipino teachers has been less rapid than usual. The latest figures ndicate that 4,196 teachers have finished the intermediate grades, 908 have finished one or more years of the secondary course, 337 are lil-school graduates, 10 are graduates of the University of the ilippines, 42 are government students returned from the United tates, and 240 are graduates of the Philippine Normal School or the ilippine School of Arts and Trades. The number of American teachers has been further reduced by employing a smaller number tha1n usual in the United States, and their places have been taken by tli best F1ilipino teachers obtainable. the progress in academic work has been generally satisfactory..Xitlinations at the close of the school year 1913-14 were rather (lhore difficult than usual in certain subjects, and the English requirel'nIts were made much more stringent, which explains many failures.

Page  280 280 REPORT OF THE PHILIPPINE COMMISSION. The work in good manners and right conduct is worthy of particular mention. The progress in athletics has been remarkable. Reports from every division in the islands indicate that fully 95 per cent of the boys and girls in the public schools are taking part in athletics or physical training in one form or another, and thousands of people who have never attended the public schools are participating in games through the direct influence of the bureau's athletic program. The program of industrial instruction has been carried out more satisfactorily than in any previous year. This result is largely due to the measures taken to provide for the standardization of industrial instruction and its closer adaptation to meet local needs. The necessity of effecting every possible economy has held up work on the new buildings for the Philippine School of Arts and Trades, and on many municipal projects. From January 1, 1914, to December 31, 1914, 60 standard-plan buildings with 327 rooms and 5 reconstruction projects were completed. Altogether 748 permanent buildings of all classes with 3,950 rooms have been completed. During the year 268 standard school sites have been secured, bringing the total number up to 1,338. Arrangements have been made to place the schools of the department of Mindanao and Sulu under the administrative control of the bureau of education, January 1, 1915. CHANGES IN THE DIRECTORATE. After the death of Mr. Frank Russel VWhite, director of education, in August, 1913, Mr. Frank Linden Crone was appointed director of education; Mr. Charles Henry Magee, assistant director; and Mr. John David De Huff, second assistant director. Mr. De Huff returned to the United States on leave in November, 1913, and presented his resignation in March, 1914. He was succeeded by Mr. Walter William Marquardt, who was appointed second assistant director of education July 23, 1914. Mr. Magee returned to the United States November 23, 1914, where he will have charge of the bureau of education exhibit at the PanamaPacific International Exposition.,EDUCATIONAL PROGRESS SINCE THE AMERICAN OCCUPATION. Since the establishment of the bureau of education, nearly 14 years ago, a great public-school system has been developed. This achievement has been made possible only through persistent struggles against adverse conditions. Buildings and equipment have had to be renewed and teachers have had to be trained. The people, in general, have had to be educated to appreciate the value of the public schools, and their interest in them and their readiness to support them is in distinct contrast to the apathy which existed at the time the system was founded. Their change of attitude is an indication of an intellectual awakening which scarcely finds a parallel in history. AIMS AND PURPOSES OF THE BUREAU OF EDUCATION. In determining aims to be achieved through the activities of the bureaul of education, definite recognition has been given to the prilciple that public schools exist for the purpose of giving to each land

Page  281 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 281 every citizen an education which will nt him for the freest, happiest, and most efficient life possible in the sphere to which his activities will probably be confined. Briefly stated, the problem which the government must face is, first, to give the great mass of the population a primary e(ducattion; second, to give an intermediate education to those who will constitute the substantial middle class of the country; and, third, to provide secondary and higher instruction for those who are to assume leadership in thought and action. It is the aim of the bureau of education to bring 800,000 pupils into the public schools at the earliest possible date. There are approximately 1,200,000 children of school age in the islands, while the total annual enrollment for the school year 1913-14 was 621,000, tlnn for the present school year it will approximate 630,000. At first thought it would appear that fully one-half of the children of the Philippine Islands are being totally neglected. This, however, is not the case, for under present conditions a considerable proportion of boys and girls do not pursue their studies beyond the age of 10 or 11 years. Provided the enrollment for each year remains at about 600,000, there is, therefore, a constant tendency for the number reached by the schools to approach in a period of years the total number of school age in the regions where schools have been establlishied. If facilities were available, however, it is believed that 200,000 more children would enter school without the ulse of compulsion and without placing schools in villages where the attendance wclll(d fall much under 40. After approximately 800.000 were in school the problem would change somewhat, for it would be necessary to extend the school system to include barrios where the number of pupils would be extremely small and to make some provision for those children who belong to families more or less isolated. Consideration has been given to the advancement of the salaries of municipal teachers, and in spite of inadequate municil)al school revenues progress has been made. As fast as conditions permit provision will be made for further increases in the salaries of mlnicil)al teachers, who, as a class, are greatly underpaid. At present the aim is to increase the average salary to V30 and to fix the mininmum salary at VP20. This schedule would meet the sit ation for the next vear or so, at the end of which time it would be necessary to make further salary adjustments. FINANCIAL SUPPORT OF PUBLIC-SCHOOL WORK. INSULAR. The current appropriation of the bureau of edlucation made aailable for educational work in all provinces, inclluding tile non-(hl'istiml provinces-Mountain, Nueva Vizcaya, Agllsan, and Bukidnonthe sum of P4,078,033.50. This sum was augmented by the following supplementary appropriations: Act No. 2388, for the establishmenlt of the Ph'ililine SNutical School. 00 iII the sum of. —0 --- —--- ----------------- A(t No. 2398, for non-Christian lvnsisonados tos i;l r1 sc(hools. ill the 2. 750 I:mount of-.. ----t --- —----- -- —.

Page  282 282 REPORT OF THE PHILIPPINE COMMISSION. By Act No. 2406. passed by the Philippine Commission July 14, 1914, P21,000 additional was appropriated for the extension of educational wcrk in the Mountain Province. This amount was later reduced by P1,800 to provide for an irrigation project, leaving available a balance of P19,200. To the current appropriation should also be added balances from the following acts brought forward from the previous fiscal year: Act No. 1984, teacher pensionados___ --- —---— ___-___ ____ 1*26, 324. 02 Act No. 2288, for support of 1,000 primary schools, for property and inspectionl___________ --- —------------------------ 23, 036. 83 making a total available for current expenses of the bureau of education in the amount of P4,145,144.35 and for the Mountain Province, P19,200, making a total for expenditure for education under the direction of the director of education of 14,164,344.35. This amount included provision for various special activities of the bureau which were formerly provided for by special appropriations, including student and teacher pensionadoships, the support of the School of Household Industries, and the support of the school in non-Christian provinces. The appropriation also provided insular aid for the support of the 1,000 new primary schools authorized by Act No. 2288, for the barrio schools originally authorized under the Boyles Act No. 1866. for the support of schools on friar-land estates, and for special schools in Palawan and Mindoro, for the period July 1, 1914, to December 31, 1914, only. As the appropriation for the fiscal year July 1 to December 31, 1913, provided insular aid for a full-year period, July 1, 1913, to June 30, 1914, and this money was transferred to the provincial treasurers prior to December 31, 1913, the aid given by the bureau of education during the calendar year 1914 was less by P151,356 than the amount actually required to maintain the schools as established for one full year. The following appropriation bills for permanent improvements were also passed by the Legislature: Act No. 2378, for aid to municipal governments in the construction of central and intermediate school buildings, to be allotted by the secretary of public instruction, in the sum of --- — - 135, 000.00 For buildings at the Central Luzon Agricultural School, Nueva Ecija, in the sum of- -----— __________________ ---- 15,000.00 Total__ --- —------------- -------- 150, 000. 00 Act No. 2029. for aid to municipalities in the construction of permanent barrio schoolhouses____________- -------— _ 250, 000.00 Under:,cts Nos. 1688, 1959, 1989, 1994, 2029, 2059. 2070, 2194, 2264, and 2283, which appropriated sums for buildings, balances were brought forward from previous fiscal years amlounting to —__ 530, 516. 9S Total of funds available for permanent improvements ----__ 930, 516.98 PROVINCIAL. The provinces'are authorized by law to support provincial secondary schools, agricultural, commercial, and normal schools. The provinces furnish practically no teachers, and provincial expenditures for school purposes are limited by present regulations, although not by law, to the payment of rent, wages of janitors, the constrlcltion and repair of buildings, the purchase of furniture, machinery,

Page  283 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 283 and other equipment, and the improvement of school grounds. During the year 1914 approximately i246,377.17 of provincial funds was expended for educational purposes. MUNICIPAL4 In addition to the municipal school revenue from the land tax, internal-revenue collections, and transfers from general funds, voluntary contributions in the form of money, materials, and land have been generously made by the people of many municipalities. It has been suggested that legislation be enacted which will permit municipalities, in their discretion, to increase the land tax for school purposes. Pupils' funds have also helped in financing minor school activities. The total municipal school income from regular sources during the year 1914 amounted to approximately p2,234,142.66, while expenditures totaled P2,440,337.55. ORGANIZATION OF THE BUREAU OF EDUCATION. The following chart indicates graphically the present organization of the bureau of education: Directors. General office: Traveling inspectors Superintendents of Division slperintcndents of Chief clerk. and instructors. insular schools. schools. Accounting div. I I _ Property div. Assistants. Heads of depart- I Miscellaneous div. ments. Supervising Princirals of Industrial div. I teachers. high. trade. and Div. of buildings and Instructors. I intermediate grounds. Assistant schools. Academic div. superv ising I Records div. teachers. Instructors. Principals of Principnls of intermediate central and schools. barrio schools. Instructors. Instructors. Responsibility for the conduct of school work rests upon the director of education, who has under his immediate charge the assignment of teachers, buildings, appropriations, and questions of policy and administration. The assistant director has charge of industrial instruction, property, museums, and normal institutes; the second assistant director, of publications, statistics, textbooks. industrial information, and examinations. In addition to the duties enumerated, both assistant directors attend to such special duties as the director may assign to them. The field organization of the bureau of education consists of 37 divisions, including the Philippine Normal School, the Philippine School of Arts and Trades, and the School of Household Industries, each in charge of a division superintendent, who is responsible to tle director. The 34 provincial divisions are divided into districts, thlle smallest number in any Province being 2, the largest number 15, in charge of supervising teachers, who are under the immediate di: ection of the division superintendent of schools. Of the 240

Page  284 284 REPORT OF THE PHILIPPINE COMMISSION. supervising teachers, 138 are Americans and 102 Filipinos. In addition to these supervising teachers, 33 divisions are supplied with division industrial supervisors; and there are attached to the general office 20 industrial instructors and inspectors, who give attention to provincial needs. The total number of industrial supervisors is 113, of whom 54 are American and 59 Filipinos. Seven divisions have academic supervisors. Under the control of division superintendents there are 35 provincial high schools and 18 provincial trade schools, not including the Philippine School of Arts and Trades, the principals of which are responsible directly to the division superintendents of schools. Of the 277 intermediate schools, 120 of the most important are directly responsible to the local division superintendents, while the remainder are under the control of the supervising teachers. THE AMERICAN TEACHER. The American teaching force is now about 80 less than during the school year 1913-14. It is believed that the number of American teachers should be maintained practically as it stands for some time to come. If all graduates of the University of the Philippines should enter the teaching service it would be a number of years before an adequate number of Filipinos were prepared to handle secondary instruction. The American teaching corps ranks very high, both in education and efficiency. The bureau of education has been able to secure highgrade teachers at a comparatively low entrance salary by holding out the hope of advancement in the service. THE FILIPINO TEACHER. The problem of securing adequately trained teachers has always been, and is still, one of great importance. The Philippine Normal School, the Philippine School of Arts and Trades, the provincial secondary schools, the intermediate schools, and the University of the Philippines have prepared teachers. Other agencies for the training of teachers are teachers' classes held by supervising teachers, division normal institutes, and teachers' vacation assemblies at Baguio and Manila. A consistent attempt has been made to gradually increase the salaries paid both insular and municipal teachers. At the present time the salary situation of insular teachers is satisfactory, the average being t600 per year for all teachers and P650 for those in the Christian Provinces. The average salary of the 7,578 municipal teachers in March, 1914, was P21.34 per month. To fix the minimum salary at 120 and the average salary at P-30 is highly desirable, but it would involve an increased expenditure of more than T700,000 per year, which is out of the question in view of the present condition of government revenues. The question of equal salary for American and Filipino teachtll has always been a difficult one. The employment of American teac1lers at larger salaries is largely accounted for by the following con,'siderations: (1) With a few exceptions, their academic and pro fc-" sional attainments are much greater; (2) they 'render service att

Page  285 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 285 great distance from their homes; (3) they are employed on the basis of the much higher scale of salaries in the United States; (4) their living expenses in the Philippines are much greater; (5) they are compelled to make expensive journeys to the United States frequently in order to retain their health and efficiency; (6) the revenues of the country are not sufficient to permit the payment of similar salaries to a larger number of teachers. The need of trained teachers of high attainments who have had valuable experience in teaching and organizing schools makes the employment of American teachers necessary, but they are also needed (1) to give the people a common language to serve as a medium of the highest culture and as a factor in national unity; and (2) to bring the Filipino youth into contact with democratic ideals embodied in personalities, for no agency is so potent in the establishment of a democratic social order as personal relationships with those who, in thought and action, reflect democratic principles. Justice requires that Filipino teachers be given every opportunity to do the highest class of work for which they are prepared and that they receive adequate compensation. They are being given the chance to assume new responsibilities, but they are not being prepared rapidly enough to supply the places of all Americans who resign. The government should provide enough funds to pay Filipino teachers as much as they would receive if engaged in other occupations requiring similar qualifications and the same energy and ability. In the insular teaching force we have been gradually approaching this very desirable situation, but it has not been possible in the municipal teaching force. The teaching force, both Amercian and Filipino, is to be coimmended for its energy, loyalty, and devotion to duty. A great nmajority of teachers not only have shown these qualities in their work of teaching and supervising, but also by tact and sympathy have earned for themselves places in their communities that make their influence for good felt in every direction. Nowhere is there offered the teacher the opportunity of rendering service of greater significance than in the public schools of the Philippines, and nowhere are teachers making a better use of their opportunity. CONVENTIONS, ASSEMBLIES, AND INSTITUTES. Conventions, assemblies, and institutes are agencies employed to secure information to be used in deciding the policy of the bureau of education and to train teachers for their many duties. Every year all division superintendents and head teachers are brought together for at least a week. Committees study and report upon general conditions and specific lines of work. The discussions held enable both directors and superintendents to get in touch with one another's problems and to come to agreement upon various debatable points of policy or procedure. The thirteenth annual convention of division superintendents will be held in Baguio May 17 to 21, 1915. Every year since 1908 several hundred American and Filipino teachers at their own expense have availed themselves of the privileges of the camp maintained by this bureau at Baguio. Noted lec

Page  286 286 REPORT OF THE PHILIPPINE COMMISSION. turers give courses upon educational and other subjects, and cllferences are held for supervising teachers, for industrial teachers, and for high-school principals and teachers. In 1915 a special cotirs.i for Filipino supervising teachers will b:e given. In 1914 a limited number of selected teachers from the provinces took definite and clearly outlined courses in the Philippine Normal School and Philippine School of Arts and Trades, and in turn taught them to their fellow provincial teachers at the division normal institutes. This new plan proved so satisfactory in standardizing industrial instruction that it will be continued in the 1915 vacation assembly. In addition to industrial work, special stress will be placed upon music, drawing, penmanship, and methods of teaching. In 1914 in 33 provinces Filipino teachers were convened for division normal institutes. Five weeks' instruction similar to that given in the vacation assembly at Manila, but adapted to meet local needs. was offered by the best American and Filipino teachers available. From time to time teachers' classes are held by supervising teachers in order to help the classroom teachers and principals to solve the i arious problems of school administration. TEXT-BOOKS AND PUBLICATIONS. To-day all primary and intermediate texts, with the exception of music and most supplementary texts, have been prepared for the Philippine schools. Special secondary texts in commercial geography, colonial history, and economic conditions have been publishedl, and chapters of Philippine material have been added to the texts il physical geography, United States history, and biology. These books are adapted to the needs of the Philippine schools and students adl compare favorably with similar texts in the United States. A conmittee carefully considered texts in 1913, pointed out desirable changes, and recommended adoptions for a 5-year period. INSULAR SCHOOLS. Include the Philippine Normal School, Philippine School of Arts and Trades, Philippine School of Commerce, Central Luzon Agricultural School, the School for the Deaf and the Blind, the School of Household Industries, and the Philippine Nautical School. In all of these schools the attendance for 1914 was great, and good work was done. The records of graduates show that the training given is preparing them for efficient work in the service of the government and in business and industry. SCHOOL WORK AMONG THE NON-CHRISTIANS. GENERAL STATEMENT. The importance of education among the non-Christian people is shown by the fact that they form about 12 per cent of the population of the Archipelago, and that about 50 per cent of the land area is either inhabited by them or is more or less under their control. Public schools are maintained for non-Christians in both the no,1 -Christian and the Christian provinces. Since January 1, 1914 -

Page  287 REPORT OF TIE SECRETARY OF PUBLIC INSTRUCTION. 287 schools in the non-Christian provinces have been supported from the regular appropriation for the bureau of education. In addition, Act No. 2406 provided P19,200 as special insular aid to the schools of the Mountain Province. Schools for non-Christians who reside in the Christian provinces are supported from the regular appropriation of the bureau and from provincial special non-Christian funds. Schools are also maintained in the non-Christian provinces for the large number of Christians who inhabit them. During 1914 increased attention has been given to the education of the non-Christians. During the school year 1913-14, 89 schools, having an average daily attendance of 3,506, were maintained in Nueva Vizcaya, Bukidnon, Agusan, and the Mountain Province. For non-Christians in the Christian provinces 50 schools were conducted, with a daily average attendance of 1,640. IN NON CHRISTIAN PROVINCES. In every phase of school work the Mountain Province has made progress, for an attempt has been made to meet the particular needs of each locality. In Nueva Vizcaya school work has been undertaken among the Igorots and Ilongots with great success. Practical training in gardening and agriculture is given in seven settlement farm schools of which two are for Igorots, three for Ilongots, and two for Negritos. The problem of the government as regards Agusan-Bukidnon is to attract the backward people to settlements. Forty settlement farm schools have helped to further this policy. IN CIRISTIAN PROVINCES. Twenty schools, with an average daily attendance of about 500, are maintained in Abra for the education of the Tinguanes, and the pupils have made good progress. The Aborlan Agricultural School in Palawan has been very successful in inducing the Tagbanuas to settle on a large tract of land close to the school farm, where they are taught to live in a civilized way. The Villar Settlement Farm School in Zambales is the first for Negritos to achieve unqualified success. In Camarines a very successful school has been conducted at Consosep, and two schools have been established for a peculiar seafaring people known as the Dumagat; the one for Negritos and one for the mixed people of Moriones. At Santa Ines, Rizal, a settlement farm school was recently established for the purpose of raising the standard of living of the Remontados, whose economic condition was deplorable. In each non-Christian school the bureaul of edlcation is giving instruction in better living to the following peoples: Moros, Tagbanuas, Negritos, Ifugaos, Kalingas, Apuyaos Benguet Igorots, Ilongots, Dumagats, Manobos, Mandayans, and Mangyans. It has been the constant aim of the bureau of education to make the olicy of the schools in the non-Christian provinces coincide as closely as possible with the policy of those responsible for the general governient of these provinces. The schools have operated to reduce tribal lntagonisms, and in this way have been of assistance to provincial authorities.

Page  288 288 REPORT OF THE PHILIPPINE COMMISSION. It is with deep regret that I report the death of Mr. John 1H. Finnigan, who was responsible for much of the improvement in Aborlan during the past few years. He was killed December 1, 1914, by escaped convicts from the Iwahig penal colony. Mr. Finnigan was not only superintendent of the Aborlan school, but also acted as the representative of the province in the government of the reservation. THE DEPART3MENT OF MINDANAO AND SULTU. On August 1,1914, a member of the bureau of education was regularly appointed to the office of superintendent of schools for the department, and on January 1, 1915, the schools of the department will come under the administrative control of the bureau. A division superintendent has been assigned to each of the provinces of Cotabato, Davao, Lanao, Sulu, and Zamboanga, and each province is being divided into supervising districts.1 An industrial supervisor and a supervisor of industrial training for girls' schools are attached to the department office. These changes were made possible by increased appropriations. For 1914 the total insular, department, and provincial appropriations were P249,888. In addition department funds in the amount of P20,200 were appropriated for the construction of school buildings, making a total of p270,088 appropriated for public instruction. In the month of December, 1914, there were 239 teachers in the department, as against 125 for the school year 1913-14. Of these, 15 were Americans, 200 were Christian Filipinos, and 16 were Moros. The department has provided for the organization of two types of agricultural schools, for three lines of marine work for the schools of the South Sulu district, for advanced instruction in lace making and embroidery-given to older pupils and to adults in localities where the conditions are favorable, and courses of study adapted to the different localities are being worked out for girls. Group games have been organized in nearly every school in the department, in which at least 80 per cent of the pupils participate. Indoor baseball and volley ball are the most widely introduced games. Nine combination dispensaries and schools have been established since June, 1914, through the cooperation of the department health officer and the superintendent of schools. The young men in charge of these institutions are graduates of the Philippine Training School for Nurses in Manila. They devote approximately one-half of their time to school ork and one-half to dispensary work. DORMITORIES. In November, 1914, Normal Hall, a three-story concrete dormitory for the girls of the Philippine Normal School, was completed at the cost of p300,000. Reinforced concrete dormitories for girls are maintained in connection with the high schools at Iloilo and Tacloban. Dormitories for girls are also found at Vigan, Ilocos Sur, and Bacolod, Occidental Negros, while the Leyte High School maintain' 1 The provinces of Agusan and Bukidnon which have always been under the jurisdic tion of the bureau of education in educational affairs have recently come under the a', ministrative control of the department in all other matters.

Page  289 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 289 a dormitory for boys in a temporary building. Were funds available, dormitories would be established in connection with other provincial schools. Mailag Agricultural School, the School of Household Industries, the School for the Deaf and Blind, the Central Luzon Agricultural School, the Bua Girls' School, the Bontoc Girls' School, and the Baguio Industrial School for Boys lodge and board pupils on the school premises. TIE COURSES OF STUDY. Through a process of evolution a primary course of four years, an intermediate course of three years, and a secondary course of four years have been developed, offering instruction in academic subjects, physical training, and industrial work. The courses are adapted to the age and needs of the pupils and the conditions existing in the islands. The courses are constantly being changed as the necessity for further adjustment becomes evident. No important changes have taken place during 1913-14, but a few minor adjustments have been made. ACADEMIC INSTRUCTION. Industrial instruction and physical training have been established on a firm basis. While they will continue to receive adequate emphasis, the time has come for giving more consideration to the problems of academic instruction. The satisfactory solution of these problems is rendered difficult by the following: The many phases of school work pursued necessarily decrease the time available for any one school activity; in spite of consistent effort to prepare teachers, many of the present force possess inadequate academic attainments and insufficient training; the use of unsuitable buildings and inadequate equipment still exists in practically every division; the lack of sufficient revenues makes large classes a necessity, and in many places attendance is still irregular. Considering these difi(clties it is believed that the results secured in the academic subjects are very creditable. Among the most important reasons for making English the language of instruction are the following: (1) Linguistic unity is the most important step toward national unity; (2) English means contact with ideals compatible with democratic government; (3) English is the commercial language of the world, especially of the Far East. Although English is the language of instruction, investigations show that public-school pupils of the third and fourth grades have about the same ability in the use of the dialect as pupils who have attended the vernacular schools for the same length of time. Supervisors of academic work have been appointed in seven divisions. Although this plan has been in operation only a short time, the good results already secured indicate the desirability of its extension. Special attention has been directed to the first grade this year for the purpose of removing the causes which have held many pupils in this grade for an unduly long period. Authority was given to pronote deserving pupils in the first three grades of the primary course 8329-15 19

Page  290 290 REPORT OF THE PHILIPPINE COMMISSION. at any time during the year, and as a result several thousand pupils were advanced to the next higher grade. Emphasis has been placed upon the use of lesson plans by all teachers in the primary grades. The stringent requirements in English, first prescribed for the 1913-14 school year, have been continued, 75 per cent in the English subjects being required and a mark being given upon the English used in every examination. The practice of permitting a choice of questions in all subjects was definitely adopted this year; a few examinations were eliminated and inspections substituted. AT'1L'ETIC S. The athletic program of the bureau of education consists of group games; the specials forms of athletics such as baseball, basket ball, track and field sports; playground activities; color competitions; and calisthenics. The aim sought is to have every pupil take part in games or athletics that will result in his securing suitable physical training. This athletic program has been carried out most effectively. During the school year this bureau hoped to realize its aim with respect to 80 per cent of all the pupils enrolled in the public schools, but reports from the various school divisions indicate that more than 95 per cent of the pupils are now taking part in games and athletics in one form or another. The very general interest in athletics on the part of all classes is traceable directly or indirectly to the influence of the public schools. Other agencies have, of course, contributed their share toward the spread of athletics, but the bureau of education is primarily responsible for the general enthusiasm. The general participation in games and athletics has resulted in great improvement in the physical development of the younger generation, and the moral influence of clean, healthy sports has been felt. INDUSTRIAL INSTRUCTION. Steps toward the introduction of industrial and vocational work into the regular school curriculum were taken in the early days of the school system. Outlines for work began to appear in 1904-5; but from the year 1908 dates the real growth, culminating in the definite instruction along both these lines of work which to-day form an integral part of the present courses of study. Many pupils trained in different manual occupations have obtained positions at a satisfactory remuneration. This has done much to convince the public at large of the dignity of manual labor and its place in any progressive country. The growing demand for skilled teachers in industrial subjects has been met by instruction in teachers' classes, division normal institutes, and vacation assemblies, and by a reorganization of the intermediate course to include special courses in teaching and normal industrial instruction. Of a total of 55 distinct courses offered at the 1914 vacation assembly, 43 were taught in the division normal institutes to 4,597 men and 2,140 women teachers. Household industries, woodwork, housekeeping, and agriculture have been made the four principal lines of industrial instruction.

Page  291 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 291 This bureau has undertaken to extend the established home industries and to introduce new ones to supplement agriculture and other existing industries during periods of inactivity and, by thus insuring an income during all seasons, to promote the prosperity of the entire country. Commercial work is now given in all trade schools and provincial school shops. During the year 1914 there were 19 authorized trade schools, with an attendance of 2,304 pupils and an output of PI147,672.62. Of this amount the pupils received P-27.191.70 for work done outside of school hours; the cost of material was P'77,547.96, and the government surcharge amounted to V*27,071.13. During the same period 13 provincial school shops with 748 pupils sold P10,981.37 worth of work, and 267 municipal school shops with 4,722 pupils produced articles to the value of P37,894.28, thus making a total value of the work turned out by school shops during the year 1914 P196,548.27. The 1914 insular exhibition of this bureau was held in connection with the second Philippine exposition in February, 1914. It was housed in its own special building erected by students of the Philippine School of Arts and Trades. All provinces sent samples of the industrial work made in the schools. Over 51,000 articles were placed on exhibit, valued at nearly P99,000. The instruction in housekeeping aims to fit girls graduating from the primary grades to make their own garments and to cook simple meals, the ingredients and the utensils common to the average home being used. In the intermediate grades definite courses are prescribed in garment making, cooking, hygiene and sanitation, weaving, embroidery, lace making, and crochet. The instruction in agriculture emphasizes home-extension work, seed selection, and the intensive cultivation of local and staple crops. There are 4 agricultural schools with dormitory accommnodations in the islands; 8 farm schools organized as model Filipino farms, each adapted to meet conditions in its particular province; and 48 settlement farm schools in the non-Christian provinces operated as industrial communities, whose attractions are designed to induce primitive peoples to form permanent settlements. Gardening is required in all schools. Extension work is carried on by teachers by supervising the home gardens of pupils and by visiting farmers to advise them regarding seeds and other agricultural matters. Civico-educational lectures on agricultural topics are given in the barrio schools to adults by teachers and other interested persons. Corn demonstrations, corn and garden exhibits, and corn-growing contests have been instrumental in stimulating the interest of the people in the production of both a greater and a better variety of field and garden produce. The fact that such a large proportion of school-made articles is of a salable nature and that pupils are being trained as prodcers of commercial work, brings up the problem of the disposal of articles made in the schools and in the homes of the people. Furthermore, a considerable number of lines of industrial work carried on in the public schools are now so highly standardized and the prospects for introducing them into the homes so favorable that the commercial aspect of the situation is a matter of not only future, but immediate

Page  292 292 REPORT OF THE PHILIPPINE COMMISSION. concern. In the present stage of development of these industries government aid in marketing the product appears to be a necessity. BUILDINGS, SITES, AND GROUNDS. The present program of the bureau of education with reference to buildings, sites, and grounds may be summarized as follows: (a) The construction of permanent buildings, if possible; and, if not, tie construction of temporary buildings meeting certain minimum requirements. (b) The acquisition of standard sites as a prerequisite to the allotment of insular funds for school buildings. The minimum requirement for barrio school sites is 5,000 square meters, and for central schools it is 10,000 square meters. (c) The improvement of school grounds according to carefully prepared plans. (d) The provision of suitable school furniture for every school. (e) The provision of suitable sanitary facilities in connection with all public schools. School grounds are considered as improved when they meet three or more of the following requirements: (1) Inclosed with a woven-wire fence, with concrete or first-group timber posts. (2) Properly filled and leveled for lawn and playgrounds. (3) Possessed of a well-kept lawn. (4) Provided with adequate playground facilities. (5) Properly planted with trees and shrubs. (6) Provided with permanently surfaced walks. TILE SCHOOLS AS A CIVIL FACTOR. Definite training for citizenship is given in the primary, intermediate, and secondary courses. Various literary societies afford pupils practice in conducting meetings at which questions of interest to all citizens are discussed. The public schools are making a notable contribution to the body politic. Of the 240,000 voters of the present time a considerable percentage who are qualified as voters because of education claim an education in English. During the school year 1912-13, 10,938 boys completed the primary course, and the next year the number reached 11,398. These primary graduates for only two years constitute approximately 221 per cent of the present voters claiming educational qualifications. The graduates of the intermediate and secondary courses are, of course, still better prepared for citizenship. In 1914, 3,540 boys and 1,045 girls completed the intermediate grades, and from them will come many local leaders. In the same year 340 boys and 67 girls completed the secondary course, which fits them for leadership in a broad way. THE EXTENT OF ENGLISH SPEECH IN THE PHILIPPINES. It is difficult to estimate with any degree of exactness the amount of English spoken in the Philippines. It is safe to say, however, that the knowledge of English is far more general than the knowledge

Page  293 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 293 of Spanish. Aside from those who have learned English in the public schools, including 86,195 who have completed the primary course, 20,166 the intermediate course, and 1,416 the secondary course, there are many who have acquired a working knowledge of this language by picking it up in connection with their work, by home study, by study abroad, or by attending private schools. Some indication of the spread of English is shown by the reports of the director of civil service. During the half year ending December 31, 1913, 4,377 applicants for positions took examinations in English and 490 in Spanish, as against 2,433 in English and 3,011 in Spanish for the year ending July 1, 1904. THE HEALTIH OF THE SCHOOL CHILDREN. A pupil completing the primary course has received instruction in the fundamental principles of hygienic living, the importance of cleanliness, of wholesome food, of pure water, of fresh air, and of exercise. The work of the primary course is amplified in the intermediate course, special emphasis being placed on sanitation for the Tropics and a regular course in physiology and hygiene being given. Largely as a result of this instruction, the physical condition of the children of the public schools has greatly improved in the past few years. It is regretted that a lack of funds has prevented the inauguration in the schools of a complete system of medical inspection. COOPERATION WITH GOVERNMENTAL AND OTIER AGENCIES. The bureau of education has entered upon a great variety of activities that might appear to belong to other branches of the government or to charitable agencies. This condition has resulted from the fact that there has been work to do, and the bureau of education has been the organization best equipped to do it. Such action is in harmony with current thought, which is advocating the complete utilization of the schools, not only for the sake of the children themselves but also for the benefit of the community. WHAT SUFFICIENT MONEY WOULD MEAN TO THE PIIILIPPINE SCHOOL SYSTEM. The Philippine public schools have been unable to reach over one-half of the children of school age at any one time. They have been forced to use inadequate buildings, unsuitable equipment, and poorly prepared teachers. They have been unable to give each pupil the individual attention he deserved, both in respect to instruction and health. In spite of all these circumstances that have limited progress, encouraging advancement has been made. Were there sufficient funds to put into effect all the plans of the bureau of education, both the extent and the efficiency of the service rendered would be greatly increased. The placing of sufficient funds at the disposition of the bureau would mean the following: An opportunity for every boy and girl in these islands to secure at least a primary school education; more efficient instruction of every student;

Page  294 294 REPORT OF THE PHILIPPINE COMMISSION. better school surroundings for every child as regards sites, buildings, and equipment; more adequate provision for the health of school children, including the employment of visiting nurses and a complete system of medical inspection of pupils; and investigations to secure facts upon which to base future changes in the course of study. BUREAU OF AGRICULTURE. CROP CONDITIONS. The following brief summary shows the general condition of the staple crops of the Philippine Islands for the year ending December 31, 1914: RICE. The rice-planting season began two or three weeks earlier than usual, which resulted in the planting of an exceptionally large area. As the season progressed the weather conditions were highly favorable, so that by the middle of September there were excellent prospects for a bumper crop of rice. However, a long period of dry weather followed and seriously damaged the rice crop in nearly all parts of the islands. It is estimated that the crop for 1914, as a result of the drought, will show a decrease of 25 per cent below that of the calendar year 1913. The annual increase in consumption averages about 50,000 short tons of cleaned rice. Under normal conditions the Philippine Islands would have consumed a million tons of cleaned rice this year. The experience of 1914 strongly emphasizes the urgent need for the development of irrigation works in the rice-growing provinces, particularly in Bulacan, Pampanga, Tarlac, Nueva Ecija, and Pangasinan. The losses sustained this season in these provinces would have been almost entirely prevented if adequate irrigation had been available. CORN. The popularity of corn as a good product continues to increase year by year. This cereal is now being used for a greater variety of purposes and is more generally planted than ever before. As a result of the educational work that has been carried on in the provinces, both by the bureau of agriculture and the bureau of education, more attention is now being given to the selection of good seed corn and to the use of improved cultural methods. The corn crop for the year ending June 30, 1914, is reported as 6,265,746 cavans, which is an increase of 44 per cent over that of the preceding year. SUGAR. It is conservatively estimated that the 1914 sugar crop will exceed that of the preceding year by 20 per cent. This increase is due both to the increased areas planted and to favorable weather conditions during the growing season. The milling season began slightly in advance of the usual date, because of the prospect of abnormally high prices. The San Carlos Central, which completed its first sea

Page  295 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 295 son's operation during the first part of the year, is the first large modern plant to be completed and in full operation in the islands. The results obtained at this central for the first season were highly satisfactory, and it has been an agency of no little importance in emphasizing the desirability of installing similar centrals in other sugar-producing districts. The large central of the Calamba sugar estate was completed and placed in operation during the latter part of the year. COCONUTS. It was not until this year that the coconut plantations fully recovered from the disastrous effects of the drought and typhoons of 1911-12. The production of copra early in the year indicated that normal production was again attained, but following the outbreak of the European war the market price dropped to a very low figure, and for a short period there was practically no market for this product. As a result of this situation production was largely curtailed. During the last three months of the year there was a material improvement in the copra situation. ABACA. The abaca plantations throughout the islands have almost entirely recovered from the effects of the 1912 drought. In the southern provinces of Luzon considerable damage was done to abaci by the typhoon of June, 1914. The first six months of the present year showed that the production of abaca was approaching its normal status, and the total production for the year would probably have exceeded 130,000 metric tons available for export had it not been for the outbreak of the European war, with the consequent drop in prices and curtailment of production. There has been a noticeable improvement in the quality of fiber produced since July, 1914. This improvement is largely due to the educational campaign now being carried on by the bureau of agriculture in connection with the new system of fiber inspection. TOBACCO. There has been no material change in the tobacco situation. The 1913 crop was not large nor were the prices encouraging to the producers. The crop for the year ending June 30, 19.14, shows an increase in production of about 700,000 kilograms over that of the preceding year. The prospects for the new year are not encouraging as the dry season began unusually early, and there has been but little rainfall since. Many of the planters in the Cagayan Valley lost a part, or all, of their seed beds. A large amount of carefully selected tobacco seed was distributed throughout the tobacco districts lpevious to the planting season. Considerable interest has been shown by the manufacturers in the efforts of the bureau of agriculture to provide a satisfactory means by which the. losses on manufactulredl tobacco due to the ravages of the cigarette beetle might be elininated. Four of the local manufacturers have been processing their product with uniform success.

Page  296 296 REPORT OF THE PHILIPPINE COMMISSION. PERSONNEL OF THE BUREAU OF AGRICULTURE. On February 15, 1914, Mr. F. W. Taylor resigned the directorship of the bureau. Mr. H. T. Edwards was detailed as acting director, and on April 1, 1914, was appointed director of agriculture. Mr. Adriano Hernandez, formerly governor of the province of Iloilo, was appointed assistant director of agriculture on May 27, 1914. There has been a decrease of 21 Americans and 6 Filipinos in the classified positions. FOOD-PRODUCTION CAMPAIGN. In August, 1914, following the outbreak of the European war, a food-production campaign was organized by the bureau of agriculture. The purpose of this campaign was to develop a more general interest in the cultivation of food crops, to organize different forces that might cooperate in this work, and to furnish direct assistance to individual farmers where such assistance was needed. The bureau of education, the bureau of constabulary, the local agricultural societies, and the provincial and municipal officials have furnished valuable cooperation in this work. As a result of this campaign there has been a large increase in the area planted to food crops, and thousands of families have been directly benefited. COOPERATIVE AGRICULTURAL SOCIETIES. In no country of the world is cooperation in agriculture more necessary than in the Philippine Islands. In June, 1914, the first steps were taken to organize both provincial and municipal agricultural societies throughout the Philippine Islands. It is proposed at a later date to unite all of those societies into one organization by the formation of an insular agricultural society having representatives in each province. At the close of the year a total of 22 provincial societies and 187 municipal societies, having a membership of over 12,000, had been organized. The interest that has been shown by the farmers in this work is highly encouraging, and there is every prospect that this cooperative movement will be an important factor in the agricultural development of the islands. THE AMERICAN AGRICULTURAL COLONY. In the early part of 1914 a number of private individuals organized in Manila the " Mindanao Colony Association." The purpose of this organization was to devise some means of furnishing assistance to unemployed Americans with Filipino families in the islands. The majority of the members of this organization had formerly been in the employ of the government. The Mindanao Colony Association conceived the idea of establishing an American colony similar to the Filipino colony at Cotabato, and petitioned the Governor General that arrangements be made for the establishment of such a colony. In compliance with this petition a committee was appointed to investigate and recommend a suitable site for the proposed colony. This committee visited various sites in northern Mindanao and unanimously recommended that the colony be established at Momungan, Lanao.

Page  297 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 297 On April 8, 1914, the Governor General, under the provisions of Act No. 2254, set aside the sum of p100,000 for the establishment of American colonies, and directed that these colonies be administered by the director of agriculture. On July 15, 1914, 24 colonists with their families were sent to the colony at Momungan, and at the end of the year there were 46 families located at this place. At the close of the year it was reported that the colonists were making excellent progress and that there was every prospect for the ultimate success of the project. PIILIPPINE AGRICULTURAL EXHIBIT AT THE PANAMA-PACIFIC INTERNATIONAL EXPOSITION. The work of collecting and preparing a Philippine agricultural exhibit for the Panama-Pacific International Exposition was assigned to the bureau of agriculture during the year 1913. In the preparation of this exhibit emphasis was given to the four leading exports of the islands. The materials for the exhibit were collected from the larger commercial firms in Manila and from the farmers in the more productive districts of the islands. DIVISION OF ANIMAL HUSBANDRY. The sales of bureau breeding stock have far exceeded those of the previous year. The total receipts from all animal sales were I720,558, of which amount approximately tP15,500 may be considered as receipts from the sale of breeding stock. The demand for improved breeding animals throughout the year has exceeded the supply, and this demand is rapidly increasing, especially among the Filipino stockmen and farmers. When it is considered that live stock raising is one of the most important industries of the islands and that the value of all classes of animals, with the possible exception of carabaos, could be increased from 25 per cent to 50 per cent by upgrading, the importance of the work of introduction and production of improved breeding animals is very evident. PUBLIC LIVE-STOCK BREEDING. Generally speaking, the work accomplished during the year under this project has been very gratifying. The average number of services is considerably larger than that of the previous year and a number of additional animals have been assigned to the work. Better methods of organization have been instituted and more attention has been paid to the instruction of the people in the care and handling of their brood stock. As a consequence, better results are being obtained from the number of services rendered. Bureau sires have been assigned to 10 additional districts. At the close of the year 1913 a total of 21 sires of various classes Were assigned to this project and at the close of the present year a total of 54 sires were assigned to the work. The greater part of these animals are being maintained by the provinces and municipalities, the bureau paying the salary of the superintendent or inspector in charge of the work.

Page  298 298 REPORT OF THE PHILIPPINE COMMISSION. VETERINARY DIVISION. RIN DERPEST. On January 1, 1914, this disease was prevalent in 16 municipalities located in 8 provinces, namely, Batangas, Cagayan, Ilocos Norte, Laguna, Mountain, Pampanga, Pangasinan, and Tarlac. Act No. 2303 of the Philippine Legislature, providing that the provincial governors should have the direction of, and be responsible for, the enforcement of the measures prescribed by the director of agriculture relative to quarantine and disinfection, has led to considerable change in the work of the veterinary division. On February 20 simple regulations for the handling of dangerous and communicable animal diseases in accordance with the new law were issued in English and Spanish. Several provinces were induced to employ experienced live-stock.inspectors recommended by the bureau. The executive secretary has been indefatigable in his efforts to induce provincial and municipal officials to maintain effective measures. At the end of the year 6 provinces with 17 municipalities were known to be infected. This was a gain of 2 provinces, but a loss of 1 municipality. The largest number of provinces reported as infected at any one time during the year was 12 on September 28; the smallest, 4 on January 19. The largest number of municipalities was 50 on July 13 and the smallest 9 on January 19. The number of the new cases ranged from 195, during the week ending July 4, to 14 for the week ending December 12. Deaths varied from 152, for the week ending August 29, to 9 for the week ending October 17. During the year 3,940 cases of rinderpest with 2,715 deaths were reported. This is a decrease of 1,032 cases and of 271 deaths from those of the preceding calendar year. IMMUNIZATION AGAINST RINDERPEST BY SIMULTANEOUS INOCULATION. Experience has demonstrated that, when rinderpest has already spread universally in a country destitute of fenced inclosures and in which herd mingles with herd in the most perfect freedom, its eradication by the ordinary quarantine and sanitary measures is practically impossible. As long as these conditions prevail, it is feasible to adopt those measures that help lower the virulence and mortality of the disease and assist nature in producing a race of animals highly resistant to the disease. These results are best obtained by the immunization of cattle and carabaos by simultaneous inoculation. During the past year this work has been extended in so far as was consistent with the limited funds available. Importation of carabaos and cattle for work and breeding purposes from French Indo-China was resumed in the month of Mav. All animals were received at the immunizing station in Iloilo alld were immunized by simultaneous inoculation. This method llhl satisfied both the importers and hacenderos and no disease has beenl introduced. Owing to the threatened shortage of meat due to the embarVo on the exportation of foodstuffs from Australia, General Order

Page  299 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 299 No. 34 was issued on September 19, 1914, permitting cattle embarked at the ports of French Indo-China to be discharged and landed for slaughter only at the Pandacan Quarantine Station in Manila. Since that time, 2,199 such cattle have been landed, of which 1,473 were passed for food and 5 condemned amongst those slaughtered up to December 31. This measure has effectively prevented any shortage in the meat supply and has caused a marked reduction in the wholesale prices of beef. During the year a total of 2,208 cattle and 26 carabaos have been received at this station. DIVISION OF AGRONOMY. RICE. Investigational work has been carried on with both lowland and upland varieties. Two experiments were conducted with the object in view of obtaining extra early maturing varieties having at the same time satisfactory productive power. No variety is retained which does not produce an average crop of 2,000 kilograms, or more, of rough rice per hectare. Experiments have also been conducted to more definitely ascertain the effects of the rate of seeding seed bed upon the vitality of seedlings; the effect upon yield and maturing period when seedlings of varying ages are used; the actual effect and value of transplanting seedlings compared with the broadcasting method; and comparative tests of propagation methods. In advance of the regular rice-planting season arrangements were made to supply approximately 1,200 rice farmers with one-ganta samples of selected and improved seed rice. The results obtained in this work were most encouraging. Many cooperators secured splendid yields on the plots planted with bureau seed, who failed to harvest any crop whatever from the areas planted with their own seed. Forty to eighty cavan yields have been common from the areas planted with the bureau seed, where very poor crops have resulted when ordinary seed was planted. The interest in seed quality is growing substantially as a consequence of this work, and the bureau has already acquired, and placed in storage, more than 1,000 cavans of superior seed in addition to the amount of seed produced on its own lands. This seed will be distributed during the next planting season. The most valuable features of the rice work this season have been the distribution of selected seed under proper supervision; the production and selection of improved seed for distribution; and the seed selection educational campaign by the distribution of rice posters. SUGAR. The sugar specialist of the bureau has devoted mich time to isiting sugar producers in Oriental and Occidental Negros, Cebu, Panay, Tarlac, Batangas, Laguna, Rizal, Bulacan, and Pampanga, giving personal instruction in s ugarhouse work, the use of improved cane varieties, preparation of land. planting, cultivating, irrigation, and harvesting. As the milling season approached illustrated lecttires were given in Tarlac, I)ampanga, Rizal, Laguna, and Batangas provinces.

Page  300 300 REPORT OF TIHE PHILIPPINE COMMISSION. GRASSES AND FORAGE CROPS. There is no change to be recorded in the hay problem, but more interest is being shown in the fodder problem, especially among the more progressive owners and managers of plantations. DIVISION OF. HORTICULTURE. This division has supervision of all seed and plant introduction and distribution work, of the Lamao and Singalong horticultural stations, and of the locust campaign. Seeds and plants have been distributed in larger quantities than during any previous year. Seed requests to the number of 500 a day are handled during the planting season. Special attention is now being given to the production and distribution of selected seed of the staple crops of the islands. At the Lamao Experiment Station various lines of experimental work with tropical fruits and vegetables have been carried on. This station furnishes the greater part of the plant material used for distribution. The islands have suffered during the year from an extremely serious and widespread infestation of locusts. Swarms of locusts have peen present in every province in the Island of Luzon, as well as in many of the other islands of the Archipelago. As a result of the active locust campaign carried on under the direction and supervision of the bureau the losses occasioned by this pest have, in most localities, not been serious, and the area of infestation has been largely reduced. FIBER DIVISION. During the six months from July to December of this year 29 employees were added to the force of this division in order to prepare for the enforcement of Act No. 2380 of the Philippine Legislature, entitled "An act providing for the inspection, grading, and baling of abaca (Manila hemp), maguey (cantala), sisal, and other fibers." The work of the fiber division during the period covered by this report included preparation for the enforcement of the fiber grading and inspection law (Act No. 2380); investigations pertaining to abaca (Manila hemp), agave and allied fibers, kapok and allied flosses, cotton, and miscellaneous tropical fibers; and distribution of fiber plants. The fiber-inspection law provides for a standardization of the commercial grades of the principal Philippine fibers, for a system of Government inspection of fiber graded and baled by private establishments, and for the institution of educational campaigns among the producers. The enforcement of the fiber inspection was assigned to the fiber division of the bureau of agriculture. As this law did not become effective until January 1, 1915, the work during the year was of a preparatory nature. This preparatory work was commenced soon after the law was passed, when the chief of the fiber division was detailed to visit the United States and

Page  301 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 301 Great Britain for the purpose of holding conferences with the principal buyers and manufacturers of Philippine fiber. It was desired to ascertain the requirements of the consuming markets, and to learn along what lines an improvement in the old methods of grading and baling fiber for export should be instituted. This visit clearly demonstrated that the great majority of the manufacturers regarded the law favorably, as was shown by their promises of support and cooperation. Immediately following the return of the chief of the fiber division, bureau of agriculture General Order No. 33 was published in accordance with section 2 (c) and (b) of the fiber-inspection law. This general order prescribes regulations covering the following subjects: Designation of the official standard grades for each fiber covered by the law, determination of the standard grades and types thereof, and additional regulations regarding baling and labeling. Samples of the standard grades established by General Order No. 33 were prepared and distributed among grading establishments, manufacturers, and other interested organizations and individuals. The next step taken was the training of an adequate force of fiber inspectors and assistants, which was one of the most important activities of this division. It is gratifying to state that the fiber inspectors are now qualified to begin their inspection work in an efficient and thorough manner. The work of the eight assistant inspectors who were detailed on educational duty among the producers in the principal fiber-producing provinces has already shown encouraging results. DE3IMONSTRATION AND EXTENSION DIVISION. The purpose of the demonstration and extension work is to provide a suitable means for showing the farmers of the islands in an effective and practical manner the value of improved agricultural methods. At the close of the year 22 American and 50 Filipino employees were engaged in this work, and cooperative field demonstrations were being carried on in 23 different provinces. As a result of the work of the demonstration and extension division thousands of families in the provinces are being directly benefited, and the farmers in the districts where this work is carried on are learning that improved methods will bring improved results. DIVISION OF PUBLICATIONS. The work of the division of publications is carried on under the following heads: Publication and distribution of the Philippine Agricultural Review; publication of bulletins, circulars, and pamphlets; supervision of the bureau of agriculture library; miscellaneons printing on the planotype and roneo, and miscellaneous translations. During the period from January 1 to December 31, 1914, an average of 1,936 English and 1,376 Spanish copies per month of the Philippine Agricultural Review were distributed. There were 232 Paid subscribers to the English and 143 to the Spanish edition. As

Page  302 302 REPORT OF THE PHILIPPINE COMMISSION. exchanges for the foreign and local periodicals 186 English and 70 Spanish copies were sent out each month. There were 1,518 English copies and 1,154 Spanish copies of each edition distributed to school libraries, government officials, and other persons. Two special numbers were issued during the year entitled " Cacao " and "The Philippine Exposition." Ending with the September, 1914, issue, the Spanish edition of the Review was discontinued, and the issues of the English edition for October, November, and December were combined in one number. During the year 1915 the Review will appear as a quarterly instead of a monthly, and in English alone, and will serve as a record of the technical and scientific work of the bureau. To meet the needs of the farmers of the Archipelago a monthly paper, called The Philippine Farmer, will be issued in both English and Spanish, and will contain only such material as will be of actual benefit and interest to the agriculturists of these islands. It is believed that by the division of the material formerly contained in the Review into two publications much better results can be obtained both with the farmers of the islands and our readers abroad. The following bulletins and circulars have been issued during the period from January 1 to December 31, 1914: Copies. Subject. Author. English. Spanish. BULLETINS. No. 29, Duration of the Infectiveness of Virulent Rinderpest W. H. Boynton....... 1,000.......... Blood in the Water Leech, Hirudo Boyntoni Wharton. No. 30, Experiments upon the Transmission of Rinderpest.. A. R. Ward, F. W. 1,000.......... Wood, and W. H. Boynton. No. 31, An Atypical Case of Rinderpest in a Carabao........ W. H. Boynton....... 1,000.......... CIRCULARS. No. 26, Cacao Culture................................ J.. Wester......... 2,000 2,000 No. 27, Banana Culture................................... W. Barrett........ 2,000 3,000 No. 28, Propagation of the Seedless Breadfruit.............. P. J. Wester.......... 2,000 3,000 No. 29, Guinea Grass.........................H........... Jacobson...... 2,000 3,000 No. 31, Sugar-Cane Distribution.................... C..W. Hines... 1,000 1,000 No. 32, Sugar-Cane Cultivation.................................do............... 2,000 2,000 BUREAU OF SUPPLY. The following table shows the total volume of sales for each year since the establishment of the bureau: Fiscal year1902___________ --- —---------------— __ 1, 970. 549. 78 1.903 (59.05 per cent increase) -----— _ _ ________ ____ 3, 134, 141.98 1904 (69.41 per cent increase)-____- ____ --- —--- - 5,309. 474.37 1905 (7.01 per cent decrease) ----- -— ____ __________ 4, 936, 976.79 1906 (26-97 per cent decrease) -______ __ ---- ________ 3, 605, 250.(07 1907 (8.146 per cent decrease) -- __________________ 3, 311, 572.52 1908 (29.12 per cent increase) __ --- —____ --- _____- 4,275,990. 23 1909 (40.38 per cent increase) ____- __________ 6, 002 615. 14 1910 (1.43 per cent decrease)- _ _______ ---- 5. 916, 705. 02 1911 (18.546 per cent increase) ___-_______________ — 7,014,021.55

Page  303 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 30. Fiscal year-Continued. 1912 (7.19 per cent increase) ________-_______________ 17, 518, 357. 20 1913 (6.88 per cent decrease) ____ —.______________ 7, 001, 5.83 Six months ended Dec. 31, 1913 (9.27 per cent decrease)-. 3,17.6 030. 60 Fiscal year 1914 (14.55 per cent decrease) ____- _________ 5,9962.276.30 Total -_______________ --- —— ___________________ 69, 135, 057.38 The total purchases during the year 1914 (exclusive of direct order and payment system purchases) amounted in value to 15,247,001.51, made up as follows: Local purchases (61.38 per cent)-__-_____ --- —--- ___. 220. 743. 93 Importations from the United States (28.44 per cent)__ --- - 1,492, 120. 10 Foreign importations (10.18 per cent)___ ------------- 534, 137.48 Total --- —---------------------- 5, 247, 001.51 Direct order and payment system purchases (approximately) ------------ -1,- - 000, 000. 00 1,000, 000. 00 Local purchases__ --- —- -- ------ 3, 220, 743.93 Total local purchases___ ____ ---- --- 4, 220, 743. 93 Total, all purchases made by or through the bureau — _ 6, 247. 001. 51 Total local purchases (67.55 per cent) --- —----------- 4.220, 743.93 Importations from the United States (23.89 per cent) -___ — - 1, 492. 120. 10 Foreign importations (S.56 per cent) --- —- ------------ 534,137. 48 Total_ _ --- —-------------------- ---------------—... --- 6,217.)01.51 The amount of total purchases (P5,247,001.51) is considerably lower than the amount of sales (iP5,962,276.30) whereas in a number of former years the purchases were in excess of the sales. This is the result of conservative buying with a view to reducing stocks as much as possible consistent with economical operation. Local purchases made by the bureau amounted to 61.38 per cent of the total purchases which includled a large purchase of rice from Saigon. The income from the direct order and payment system purchases, on which the bureau gets a surcharge of 2 per cent, was approximately P20,000, indicating that the purchases were V1,000,000, and this, added to the purchases by this bureau, makes t4,220,743.93 and shows that 67.55 per cent of the total purchases of the bureau and provinces was made from local merchants. This does not include purchases made by provinces within their borders, which would undoubtedly raise the local purchases to over 80 per cent of the total purchases. Municipalities are not required to purchase through this bureau and do purchase very little in this manner. Incliding the purchases made by municipalities, the total local purchases of the government will exceed 90 per cent of all supplies sed. Examination of a number of vouchers from various towns in various provinces indicates that the prices paid are much higher than those charged by the bureau, including the authorized surchare. Sales stock was decreased during the year from I2,208,378.32 to Pl,982,819.90. As rice to the value of l100,54'2.52, which was sold uin December lbut not completely delivered until January, was ineluded in these figures, the actual stock value was Pl,882,277.38, or a. decrease of V326,100.94.

Page  304 304 REPORT OF THE PHILIPPINE COMMISSION. Attention is invited to the following table showing totals of all purchases by years since the establishment of the bureau: Year. Foreign impor- Per United States Per Local pur- Per Total. tations. cent. importations. cent. chases, cent. 1902...................... 440,285.38 20.79 -1, 677,800. 73 79. 21 12,118,086.11 1903 (58.356 per cent increase)....................... 743,459.80 22.16 2,610,650.98 77.84 3,354,110.78 1904 (59.30 per cent increase)......................... 1,832,760. 56 34.30 3,510,660.01 65.70 5,343,420. 60 1905 (20.176 per cent decrease)....................... 1,129,516.84 26.48 3,135,808.86 73.52 4,265,325.70 1906 (19.19 per cent decrease)........................ 1,090,740.24 31.65 2,356,055. 71 68.35 3,446,795.95 1907 (19.416 per cent decrease)....................... 596, 63.03 21.48 2,180,923.68 78.52 2,777,566.71 1908 (33.866 per cent increase)....................... 993,588. 36 26. 72 2,724,652.31 73.28 3,718,240. 70 1909 (50,427 per cent increase)......................... 1,783,771.56 31.89 3,809,478.31 68.11 5,593,249.87 1910 (4.847 per cent decrease). Pf161,752. 71 3.04 1,842,909.43 34. 63 3,317,481.80 62. 33 5,322,143.94 1911 (15.36 per cent increase).. 200,755.86 3.27 2,126,406.11 34.63 3,812,545.44 62.10 6,139,707. 41 1912 (25.42 per cent increase). 142,771.30 1.86 2,838,718.64 36.86 4,718,927.37 61.28 7,700,417.31 1913 (5.856 per cent decrease). 228,379. 88 3.15 1,373,499.43 18.95 5,647,621.87 77.90 7,249,501.18 6 months ending Dec. 31, 1913 (20.36 per cent decrease)..... 77,938. 65 2. 70 801,747.95 27.87 2,003,995. 60 69. 43 2,886,682.20 1914 (15.95 per 1 84,476.26 1.60 1,492,120.10 28.44 3,220,74393 61.38 5,247,001.1 Ventdereas.},// 2449, 66l. 22 8. l:^ )1,4<2.120.10 /a28.44 3,220,743.93 61.38 5,247,001.51 cent decrease).f 2449,661.22 8.58 Total...... 1,345,735.88....... 19,089,167.43....... 44,727,346.66....... 65,162,249.97 1 This figure represents purchases of general merchandise. 2 This figure represents purchases of rice, which is outside the regular business of the bureau. The gross income from surcharges, etc., during the year 1914 amounted to P:335,996.74, and the actual cost of operation (including a deterioration of stock charge of P21,199.59) was iP359,071.!98, leaving a net loss of P23,075.24. This is partially offset by prior year credits of:5,150.83, making the actual net loss December 31, 1914, P17,924.41. Early in the year 1914 the surcharge was reduced to 5 per cent. The lowest per cent of cost of operation for any year was 6.3 per cent, and that when the sales of the bureau were over P7,000,000. In 1914 the cost of operation decreased 28.15 per cent, the sales decreased 14.55 per cent, and the percentage of cost of operation dropped to 6.47 per cent of the cost of goods sold. The following civil service changes were made during the past year: American. Appointments................................................... -.. Separations.................................................................... Promotions..................................................................... R eductions..................................................................... Changes in temporary and emergency employees: Appointments............................................... Promotions......................................................... Separations.......................................................... 11 8 7 1 5 0 9 Filipinos. 20 23 28 4 4 B1 y transfer.

Page  305 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 305 DIVISION OF COLD STORAGE. The business of this division for the year shows a decrease, the Cross earnings for the entire year being P508,007.39, as compared with P614,973.78 for the year 1913. The 1914 earnings, itemized, were as follows: Cold storage --- —-- ---------— ______ ----____ 7, 55. 32 Sales of ice_ --- —--------------— 22, 745. 39 Sales of water_______ --- —------------ 34, 954. 92 Electric current_ --- —--------------- _- 1.723. 2.0 Rental of launches_ — __ --- —--------- -1 J., 26,S. 75 Transportation ------------- ------------------- 15.00 Miscellaneous --------- ---------------------- 4, 714. 32 Total__ --- —--- ------ -------- _508, 007.39 The decrease of approximately P100,000 in the year's earnings of the division is attributable to the organization and development of companies dealing in ice and distilled and artesian water. Coldstorage earnings were affected slightly, while ice and water sales show the bulk of the decrease. This was due not so much to the decreased volume of sales as to the fact that it was found desirable to lower the rates for ice and water. The cost of operation during the year was P313,066.40, to which the following charges were added: Repairs to buildings ------------- ------------------ 182, 241. 35 Depreciation on equipment sold ---- ------------------ 12,973. 78 Total --- —---- ----------------- _195, 215.13 Which shows a loss of P274.14 on the current year's operations. BUREAU OF PRISONS. IPERSONNEL. During the period covered by this report two changes occurred among the prison officers, namely, the appointment of Dr. Charles G. Thompson as assistant director vice Mr. L. A. Dorrington, resigned, and the appointment of Mr. Mario Guarifia, of Sorsogon, vice Mr. J. W. Quillen, transferred to the Iwahig Penal Colony. These changes were made effective July 1, 1914. THE PRISON POPULATION AND THE STATUS OF CRIME. On December 31, 1914, the prison population of the Philippine Islands was distributed as follows: Bilibid Prison --- ---- ------------ -----— ___ 1,240 Iwahig Penal Colony. --- —— 1,24 --- —-----—..- --. Working at Corregidor --- —-------------------- - 30 Constabulary stations -------- _ --- __ --- —---------— _~___- 29 8n1 Ramon Penal Farm --------------— 2. --- —-- 1. Inlslar prisoners working at provincial jails ----. ---- -------------- 43 San Lazaro Insane Asylumn __ --- —-------------- ----— _ 12 [lospicio de San Jose-_ --- —------------------------ 27:Ioloinboy Institute ---------------------------- - ---- 23 Iuleta police station --- —2 --- —-------— 3 _...._ --- — 1,645 Confinled in provincial prisons --- —------------ ---- Total-____..._ 6, 763 Total --. _ ------------------ 8329 --- " 5. ----20

Page  306 306 REPORT OF THE PHILIPPINE COMMISSION. This represents a decrease of 428, or about 6 per cent, in the number of prisoners confined, taking the prison population on December 31, 1913, as a basis. The number of insular prisoners on December 31, 1912, was 5,173, and on December 31, 1914, 5,118. These prisoners are insular only in the sense that they are Bilibid prisoners, under the immediate control of the insular bureau headquarters, and either confined in Bilibid Prison or detailed from there for work in other places. The average number of insular prisoners confined during the year was 5,158.54, while the average number confined during the period covered by the previous report was 5,322.84. The number of provincial prisoners on December 31, 1913, was 2,018, and on December 31, 1914, 1,645, a decrease of 373. Contrary to the consensus of public opinion, aroused probably by the energy displayed on the part of house thieves and pickpockets during the past few months in the city of Manila, there has been a slight reduction in the total number of convictions for crime in the last year. This is probably due not to less effort on the part of the police or any greater ability on the part of offenders to evade the authorities, but to an actual decrease in crime. The following comparative table, showing the number of convictions for the more serious and some of the most frequent offenses committed during the last two years, gives some indication of the status of crime in general: 1913 1914 1913 1914 _.. _ _ _ ___ _ __ Abduction.................... 40 35 Infraction ordinance 135...... 158 91 Adultery............... 78 49 Infraction ordinance 152...... 36 76 Arson..........8......... 18 5 Insurrection................. 0 Attempted rape............... 28 Murder.............. 102 95 Brigandage................... 8 1 Parricide..................... 24 26 Concubinage................. 6 11 Perjury...................... 12 9 Embezzlement............... 172 86 Rape......-. ---. 26 23 Embezzlement with falsifica- Robbery (various forms). 264 225 tion...................... 4 15 Seduction................... 6 Homicide.................... 116 126 Theft........................ 468 504 Illegal marriage.............. 32 24 Violation of cedula law....... 264 214 Infraction city ordinances.... 836 981 The figures given for 1913 are based upon the number of commitments during the last six months of that year. BILIBID PRISON. NUMBER OF PRISONERS. The number of prisoners in Bilibid Prison on December 31, 1913, was 2,710, and on December 31, 1914, 2,609, a decrease of 101. The number of commitments by the court was 3,890, as against 4,259 for the preceding 12 months. MAINTENANCE. The per capita cost of maintenance has been materially reduced. incidental to the reduced cost of subsistence brought about by change in the ration table. The change consisted in the adoption oi more native vegetables than heretofore used in lieu of potatoes anl

Page  307 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 307 onions and other imported products, resulting in a diet more satisfactory to the prisoners and costing approximately 1 centavo less. As last year, religious services have been conducted each Sunday by two regularly employed catholic chaplains and by volunteer protestant ministers representing the various denominations at least once each week. Beginning January 1, 1915, one regular catholic chaplain will be employed at P1,800 per annum in lieu of the two now employed at P1,200 per annum each. This change is being made in order that better service may be rendered the prisoners by requiring the presence of the one chaplain during the remgular oftice hours every day instead of the weekly visits made by the two, as at present. INDUSTRIAL DIVISION. There has been a slight reduction in the amount of business done the past year as compared with 1913. The European war lessened business activities generally in the Philippine Islands and caused a tightening of money, and the introduction of cholera into the prison during the latter half of the year made it necessary to close down some of the shops and maintain a strict quarantine for a considerable time. The total output of the division amounted to P311,i00.(1, and the net earnings were PI31,535.33. SCHOOL. The primary educational work among the prisoners has been considerably facilitated by the completion during the year of a new school building and the furnishing of more school supplies. There was also inaugurated a school for the women prisoners under the direct supervision of a woman teacher detailed from the bureau of education. On December 31, 1914, there were 1,240 prisoners enrolled in the school, divided as follows: Grade I, chart and first-year book --- — ------- -------------- 840 Grade II, first reader --- —--------------------------- Grade III, second reader -------------------------- ------ ------ Grade IV, third reader --- —------------------------- ------ 1,240 In addition to the starting of a school for women there has been established a night school in mechanical drawing. For the present the activities of this school are limited to instruction similar to that given in the public schools, and the enrollment is confined to prisoners who work in the shops and who desire to improve their knowledge of furniture building and mechanical construction in general. IMPROVE3MENTS AND REPAIRS. Aside from the routine repair and construction work, three new brigades and a school building were completed during the year and concrete floors were substituted for the old floors in the general offices.

Page  308 308 REPORT OF THE PHILIPPINE COMMISSION. HEALTH AND SANITATION. The health of the prisoners has been good, the chief cause of death, as in previous years, being pulmonary tuberculosis. Asiatic cholera was introduced in the prison during the last quarter, and on December 31 there had been 189 carriers, 52 cases, and 6 deaths reported. Of contagious and infectious diseases other than cholera, considering the population, the record has been exceptionally good, there being in all but 69 cases recorded. Only one case of beriberi developed in the prison during this period. PROVINCIAL PRISONS. Great strides have been made by the provincial officials in bringing about a general improvement in the administrative management of provincial jails during the past year. Discipline is noticeably better and the standard of efficiency among all provincial prison officers and employees materially increased. The constabulary, as heretofore, have rendered valuable assistance by their monthly inspections, and where the warden was found wanting in knowledge of prison work he has been sent to Bilibid for a course of instruction. THE IWAHIG PENAL COLONY. The number of prisoners in attendance exceeded that of any previous year, the daily average for the different classes in the colony being as follows: Free colonists_ ___- _ ____ --- —------------------ 53 Prisoner colonists —.________.__ __ ---_- -—.______.____- 1, 243 Number of colonists' families_ ------—. ---. — __-________.-__ ---__ 52 Total --- ------------------------- 1, 348 The increase in the total value of products raised on the colony was *8,375.87, which resulted in a reduction of VP0.04582 in the average daily cost of the imported materials used for the ration. Rice, corn, vegetables, and meat constituted the chief products. Health conditions were generally good, and the new hospital building provides proper accommodations for all patients. The conduct of the colonists was good, although the number of escapes was abnormally large. The reduction in the number of troops stationed near by and the release of a large number of trustworthy petty officers and capataces, together with the arrival of an exceptionally large number of new colonists, did much to increase the number of escapes. Constructions and improvements effected during the year were a hospital, five dormitories, poultry house, tank tower, kitchen and bakery, four docks at outstations, three kilometers of first-class road, five kilometers of fence, many bridges and culverts. In addition, repairs were made on buildings, roads, launches, machinery, telephone lines, and trails. The sawmill produced 120,000 board feet of lumber, some of which was used in the building of two boats in which to transport supplies to the outstations.

Page  309 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 309 BUREAU OF PRINTING. In the bureau of printing the vocational training feature was continued during the year. Two hundred and four apprentices and junior craftsmen were advanced, 10 less than last year-1913. At the end of the year the number of apprentices and junior craftsmen employed was 138-28 less than at the close of the previous year. A considerable saving was effected by reducing the number of both American and Filipino employees of the bureau. An annual salary reduction of P31,600 resulted from decreasing the number of Americans employed by 7, leaving a total American force of 23. An annual salary reduction of 128,400 was made by decreasing the number of Filipinos employed by 103. Except in a very few cases, the separations from the service have resulted from voluntary resignations or deaths. In no case was the regular work of the bureau interfered with. An earnest effort has been made to induce Filipinos to qualify for the more responsible positions by making them assistants to the foremen of the divisions, one permanent assignment of this nature having been made in the bindery division 'during the year. Filipino employees are now executing all the work of the accounting division under the supervision of an American accountant. In the office of the receiver of work a Filpino employee has been assigned to the important work of revision under the supervision of a craftsman instructor. During the year the bureau turned out work to the amount of 1P814,008.14, which was 191,994.64 less than the output for the preceding year. However, the difference between the cost of operation (1697,175.96) and the output was P116,832.18, or 133,933.71 more than for the preceding year. The amount of printing done for the insular government was -544,693.64; for the provinces and the city of Baguio, P216,088.90; for the city of Manila, P-24,171.22; and for the Federal Government and outside parties, 112,300.53. The total cost of the printing paper consumed was P164,889.36, which sum represented an increase in the cost of book paper and cardboard and bristol board, but decreases in writing paper, bond and ledger paper, and envelopes. The number of reams of paper used was 329 greater than during the previous year, and the number of packages delivered was 2,260 more, although their weight was 75,190 pounds less than that of the 1913 output. The reimbursable appropriation with which the bureau has been operated for several years reverted to the general unappropriated surplus of January 1, 1914, and an appropriation of 1P666,553.53 was made in lieu thereof. Of this sum *556,053.88 was expended, leaving a balance of P100,499.65. Outstanding liabilities at the end of the year amounted to P150,869.68, of which P92,390.36 was contingent, and P58,479.32 accounts payable. The value of public documents and publications sold was 141,986.63. There was a debit balance of 1P5,516.59 for the Official (lazette (English) and a credit balance of 1*6.219.93 for the Geceta Oficial (Spanish). The number of paying subscribers to both editions at the end of the year was 1,507; of those receiving free copies,

Page  310 310 REPORT OF THE PHILIPPINE COMMISSION. 915. Issues of blank forms from stock amounted to '182,759.57, and receipts into stock, P193,187.15. The power plant was made to render service throughout the year by reason of careful supervision. One part of this plant has been in use since 1902 and the other since 1904, and its replacement can be delayed only a little longer. It is planned to install a new oil internal-combustion engine plant during the year 1915. Coal gas was installed in the bureau during the year for use in place of carbide and gasoline. As a summary of the work of the bureau of printing for 1914, the following points are mentioned: The output decreased by approximately 11.54 per cent; the decrease in the number of Filipino employees was about 12.24 per cent, and in the number of American employees about 14.81 per cent; the program of training Filipinos and preparing them for responsible positions was continued. On the whole, the work of the bureau was carried on with increased efficiency. THE UNIVERSITY OF THE PHILIPPINES. PERSONNEL. The following members constituted the board of regents throughout the year: Vice (iov. Henderson S. Martin, chairman; President Murray Bartlett, Secretary Winfred T. Denison, Commissioner Rafael Palma, Right Rev. Jeremias J. Harty, Justice Finley E. Johnson, Frank L. Crone, Ignacio Villamor, Rafael Corpus, Jose Escaler. James F. Kemp was appointed secretary of the board of regents and of the university early in 1914, the office of registrar being abolished and the duties of that position transferred to the office of the secretary. During 1914 two deans, one professor, five associate professors, eight assistant professors, five instructors, one lecturer, one demonstrator, two assistants, and two other employees resigned or withdrew. Their places were, as a rule, filled either by appointment or by promotion. ATTENDANCE AND GRADUATES. The attendance for the year increased 38 per cent, as shown by the following comparative table: 1913-14 1914 College of Liberal - rts.......................................................... 368 537 Registered in other colleges...................................................... 51 146 -317 — 391 College of Medicine and Surgery............................................. 104 1s9 College of A griculture........................................................... 294 College of Veterinary Science.-32........................... 31 2 College of Engineering- 12 40 College of Enineering........................................................... 12 College of Law.............................!.............................................. 0 152 Registered in other colleges..................................................... 7 111 143 ---- 141 Total registration in colleges............................................... 901 1, 1 4 School o Fine Arts....................................................... 602 911 Total................................................1........... 1,503 2, 075

Page  311 REPORT OF THE SECRETARY OF PUBLIC INSTRUCTION. 311 The comparatively small registration in the College of Veterinary Science and the College of Engineering indicates that these fields, which present opportunities for great usefulness, are not as yet adequately appreciated. The 1914 graduating class was nearly twice as large as that for 1913, 97 degrees being conferred. FINANCIAL STATEMENT. The balance brought forward from 1913 was T420,784.14, Act No. 2319 appropriated P300,000; fees amounted to P:15,718.72; and miscellaneous receipts totaled 19,993.82. Of this income of P746,496.68, expenditures were made amounting to P618,734.12, the chief items being as follows: Salaries, P432,557.86; wages, P48,762.36; supplies, P39,244.81; building and improvements, 130,839.97. On December 31, 1914, there was a balance of Pi127,762.56. COLLEGE OF LIBERAL ARTS. A student council was organized in 1914, which produced excellent results in matters pertaining to discipline. In all of the disciplinary cases referred to the council its advice was followed. The School of Education was inaugurated at the beginning of the academic year, and a large number of students registered in the threeyear course. This school is under the direction of the dean, the director of education, and the chiefs of the departments in which the students have registered for their major studies. The first vacation session was held in 1914, with 120 students in attendance. COLLEGE OF AGRICULTURE. The land occupied by the college was increased to 127.2365 hectares by the purchase of 32.3822 hectares adjoining that already in use, and the facilities of the college were improved by the completion of a laboratory building constructed at a cost of approximately p30,000. COLLEGE OF MEDICINE AND SURGERY. Closer relations between the college and the Philippine General Hospital were effected by placing the hospital under the direction of the dean of the College of Medicine and Surgery, as chief of the Philippine General Hospital, division of the bureau of health. This step greatly improved the clinical facilities open to students. Dulring the year the course in pharmacy was transferred from the College of Liberal Arts and became the School of Pharmacy, under the College of Medicine and Surgery. This arrangement gave students better opportunities for practical work, as the dispensary of the Philippine General Hospital was placed under the charge othe d(i ector of the School of Pharmacy. The requirements for matriculation in the College of Medicine and Surgery were raised at the beinning of the academic year to include one year's instruction of "~inning of the academic year.to i u,.. the number college grade, but such action did not result in reducing the number of students. Throughout the year the need of increased laboratory facilities was acutely felt.

Page  312 312 REPORT OF THE PHILIPPINE COMMISSION. COLLEGE OF LAW. The efficiency of the school was increased by the appointment of a permanent dean, who gave all his attention to teaching and to the work in connection with his office. A further increase in efficiency was effected by the enlargement of the permanent faculty. COLLEGE OF VETERINARY SCIENCE. All the graduates of this college successfully passed the examination given by the board of veterinary examiners as required by law, which fact furnishes practical proof of the efficien