A 3' i.1 - 4 4 I q I I - ( I GOVERNMENT OF THE PHILIPPINES...~~~~~~~~~~~~~~~~~~~~~~~~~~ HEARINGS BEFORE THE COMMITTEE ON THE PHILIPPINES UNITED STATES SENATE SIXTY-THIRD CONGRESSTHIRD SESSION ON H. R. 18459 AN ACT TO DECLARE THE PURPOSE OF THE PEOPLE OF THE UNITED STATES AS TO THE FUTURE POLITICAL STATUS OF THE PEOPLE OF THE PHILIPPINE ISLANDS AND TO PROVIDE A MORE AUTONOMOUS GOVERNMENT FOR THE ISLANDS DECEMBER 14, 1914 fl e4 - C~,"" PART 1 WASHINGTON GOVERNMENT PRINTING OFFIOE 1914 p - COMMITTEE ON THE PHILIPPINES. GILBERT M. HITCHCOCK, Nebraska, Chairman. DUNCAN U. FLETCHER, Florida. JOSEPH L. BRISTOW, Kansas. JAMES A. REED, Missouri. COE I. CRAWFORD, South Dakota. HARRY LANE, Oregon. GEORGE P. McLEAN, Connecticut. WILLARD SAULSBURY, Delaware. HEINRY F. LIPPITT, Rhode Island. JOSEPH E. RANSDELL, Louisiana. WILLIAM S. KENYON, Iowa. JOHN F. SHAFROTH, Colorado. JOHN W. WEEKS, Massachusetts. JOHNSON N. CAMDEN, Kentucky. WILbARa D. EAKIN, Clerk. II - & 11 I GOVERNMENT OF THE PHILIPPINES. MONDAY, DECEMBER 14, 1914. UNITED STATES SENATE, COMMITTEE ON THE PHILIPPINES, Washington, D. C. The committee assembled at 10 o'clock a. m. Present: Senators Hitchcock (chairman), Fletcher, Reed, Lane Saulsbury, Ransdell, Shafroth, Bristow, Lippitt, Kenyon, and Weeks. STATEMENT OF BRIG. GEN. FRANK M'INTYRE, CHIEF OF BUIREAU OF INSULAR AFFAIRS, WAR DEPARTMENT. The CHAIRMAN. Gen. McIntyre, I believe your title is "Chief of the Bureau of Insular Affairs," is it not? Gen. McINTYRE. Yes; Chief of the Bureau of Insular Affairs. The CHAIRMAN. Will you please explain to the committee what the office is, and what jurisdiction you have over the insular possessions 'of the United States. Gen. MCINTYRE. By law the Bureau of Insular Affairs of the War Department is the agent of the Secretary of War in dealing with the insular possessions that are under the jurisdiction of the War Department, and those insular possessions are, at present, the Philippine Islands and Porto Rico; the Philippine Islands by law and Porto Rico by Executive order. The CHAIRMAN. Your bureau also has some jurisdiction over other matters, has it not? Gen. MCINTYRE. Such other duties as are assigned to it. We have had assigned to us the receivership of customs in Santo Domingo; i and that is about the extent of our general jurisdiction. Et The CHAIRMAN, You have nothing to do with Hawaii? Gen. MCINTYRE. We have nothing to do with Hawaii, or with the small islands of the Pacific that are under the Navy Department,. and we have, of course, nothing to do with Alaska, which comes 4 under the Interior Department. Senator KENYON. And you have nothing to do with Panama? Gen. MCINTYRE. Nothing to do with Panama. Senator FLETCHER. When was the Excutive order made with reference to Porto Rico? Gen. MCINTYRE. It was made in 1909. It was made after the passage of the act which we call the Olmsted Act, which was an act continuing the appropriations in case the legislature failed to appropriate. 280950 6 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. Gen. McIntyre, the committee has before it H. R. 18459, passed by the House, being "An act to declare the purpose of the people of the United States as to the political status of the people of the Philippine Islands, and to provide a more autonomous government for those islands." I think the committee would like to hear you upon the legislative features of this bill, omitting for the present the preamble, which relates to policy. Will you, in your own way, describe what changes this bill would make in the form of the government in the Philippine Islands, if passed as it came from the House of Representatives? Gen. MCINTYRE. Shall I take the bill by sections and refer to the present law, or would you prefer a short general statement, and then a detailed examination of the bill? The CHAIRMAN. I think a short statement would be desirable-a general review of the changes proposed. Senator RANSDELL. I would like to hear that, because I am not very familiar with the subject. Gen. MCINTYRE. Yes. With reference to the legislature first; at the present the upper house of the legislature is composed of a commission, which is appointed by the President, by and with the consent of the Senate, and is composed of nine members; the Governor General and four of these members have also executive duty, the four members being the heads of executive departments, and the other four members are legislative members. The lower house is composed of 81 members, elected from that number of districts, which include the entire territory which is classed as Christian and civilized territory. The legislature thus composed has legislative jurisdiction over all of the territory in the islands, except that portion inhabited by the non-Christian tribes. Over that territory the commission has exclusive jurisdiction. This bill provides that the lower house shall be composed of 90 members, instead of 81. The 9 additional members are to be representatives of the territory now under the exclusive jurisdiction of the commission, and they are to be appointed by the Governor General to represent those people without confirmation by the Philippine Senate, and without reference to residence. The senate is to be elective hereafter, 2 senators from each of 12 districts. Eleven of the districts will include the territory now represented in the legislature. The additional district will include the non-Christian territory, and for that district the Governor General is to appoint the two senators. The CHAIRMAN. Must they be residents of that district? Gen. MCINTYRE. Not necessarily residents, and not with reference to the Philippine Senate. They are the absolute appointees of the governor general to represent that territory. To this legislature thus organized is given jurisdiction over the entire territory now included in the Philippine Islands. That is, it is given the legislative jurisdiction which the commission now has, as well as that which the legislature now has. Senator SHAFROTH. Have they ever ascertained how many islands there are in the Philippines? Gen. MCINTYRE. Well, the estimates vary somewhat; it depends so much on what they count as an island; some of the islands are so GOVERNMENT OF THE PHILIPPINES. 7 small; they will run up to about 3,000, if you count all of the little islands, many of which are uninhabited and many without water. The CHAIRMAN. What is the legislative body to be called as a whole? Gen. MCINTYRE. It is to be called the Philippine Legislature. And under the act as it passed the House, the members of the lower house are elected for three years; the members of the senate at the first election will be elected for three and six years, respectively, one for three years in each district, and one for six years; and after that the senators are elected every six years. The CHAIRMAN. What are their qualifications in each branch of the legislature? Gen. MCINTYRE. The qualifications in each branch are, in the senate, that senators shall be qualified electors over 30 years of age; that they shall be able to read and write the English or the Spanish language, and that they shall have resided for a certain period in the Philippine Islands and for at least one year preceding election in the district. Now, a point with reference to the qualifications in the bill. The qualifications in the bill are drawn about as the present qualifications for members of the lower house of legislature. Senator KENYON. How long must a member of the lower house have resided in the Philippines? Gen. MCINTYRE. He must be an elector; and the rule now is that an elector must have been a resident for six months in the municipality in which he is to vote. This bill simply says that a man must be an elector. The CHAIRMAN. You say the number of the lower house is increased from 81 to 90? Gen. MCINTYRE. To 90; yes. The CHAIRMAN. And the number of members of the upper house has increased from 9 to 24? Gen. MCINTYRE. Yes; to 24. The CHAIRMAN. And the upper house, instead of being altogether appointive, is elective, except for two members? Gen. MCINTYRE. Except for two members. The CHAIRMAN. And those two members are appointed by the Governor General, and represent the non-Christian tribes? Gen. MCINTYRE. Yes. The CHAIRMAN. What is the difference between the powers of the present legislature as constituted and the proposed legislature, if any? Gen. MCINTYRE. By this bill the existing laws are continued in effect, and with the exception of those laws which are reenacted in this bill the legislature is given general legislative powers in the Philippine Islands, subject, however, to the condition that the legislation must be approved by the Governor General, or, if disapproved by the Governor General, it must thereafter be passed by a vote of three-fourths of the membership of each house; and it is then submitted to the President of the United States, who is vested with absolute veto power. Senator KENYON. If it should be passed over the Governor General's veto, then it may be vetoed by the President? 8 GOVERNMENT OF THE PHILIPPINES. Gen. MCINTYRE. Then the President can absolutely veto it, and, finally, all bills passed must be reported to Congress, which has the right to'annul them. Senator WEEKS. What is the argument in favor of giving the Governor General power to appoint nine members, as I recall it, of the lower house, without the confirming power of the senate? Gen. MCINTYRE. The object of that, as stated, was to meet the objection that if the matter was left to the legislature there might be unfair treatment of the wild people. The idea was to remove that possibility of criticism by enabling the Governor General, who is himself the appointee of the President, by and with the advice and consent of the Senate of the United States, to have that absolute power. If I may pass now to the judiciary, I will say that in the judiciary of the Philippine Islands there is no change in the bill, except one clause which I will come to later on in going into the details of the bill, with reference to appeal to the Supreme Court. At present there is an appeal from the Supreme Court of the Philippine Islands to the Supreme Court of the United States, in addition to the usual grounds, where the amount in controversy is $25,000 or more. That ground of appeal is stricken from the present law by this bill. Otherwise the courts are continued as at present, and there is no change in the organic law. The CHAIRMAN. Has the court the power to declare unconstitutional any act of the legislature? Gen. MCINTYRE. It has. That is, it is not deprived of that power in this bill, and it has exercised that right. Senator FLETCHER. And there is no appeal from that to the Supreme Court of the United StatesGen. MCINTYRE. There is an appeal. Senator FLETCHER (continuing). Except as to constitutionality? Gen. MCINTYRE. There would be an appeal to the Supreme Court of the United States. Senator LIPPITT. The relations of the court and the legislature are very similar to what they are here, are they? Gen. MCINTYRE. Very similar; they are practically the same. Now, with reference to the executive, the Governor General continues with all of the authority which he now has. As at present, he is to be appointed by the President, by and with the advice and consent of the Senate. At present he is a member of the upper house, being the president of the commission. Under this bill he becomes more like the chief executive of an American State or Territory; he is not a member of either house, but he is given what he does not have now, the usual powers of veto. The CHAIRMAN. And that veto may be overridden by what vote of the legislature? Gen. MCINTYRE. By three-fourths. The CHAIRMAN. Of each house? Gen. MCINTYRE. Of each house. But in that case, the legislation comes to the President, who has the right to definitely veto it. Senator SHAFROTH. That is an absolute veto. Gen. MCINTYRE. Yes; absolute. Senator WEEKS. Has that ever been done? GOVERNMENT OF THE PHILIPPINES. 9 Gen. MCINTYRE. That is not~the law at present. Senator WEEKS. That is not the law now? Gen. MCINTYRE. No. You see, at present there is some question as to whether anyone has the power of veto in Philippine legislation, except, of course, Congress; Congress has at present absolute power. Senator LIPPITT. Where is that in the bill? Gen. MCINTYRE. The veto? Senator SHAFROTH. Is not the law at the present time that the Governor General has absolute control? Gen. MCINTYRE. No; the governor general is president of the commission; he is a legislative member of the upper house; he has no veto at all. The probability is, and it has been so held, that the secretary of war has a veto. That came from the condition that by the old organic act the original instructions of the President to the Philippine Commission were continued in effect, and under those instructions the Philippine Commission was authorized to legislate under the direction and control of the Secretary of War. Senator LIPPITT. You said that a three-fourths vote was necessary to pass a bill over a veto. Is it not a two-thirds vote? Gn. MCINTYRE. Yes; I should have said two-thirds. It is in the bill. I was giving it from memory. Senator LIPPITT. That is on page 16. Gen. MCINTYRE. Yes; two-thirds of all the members. The CHAIRMAN. Gen. McIntyre, will you tell the committee about what is the population of the Philippine Islands? Gen. MCINTYRE. The population by the last census was 7,635,426. Of course, that was taken in 1903, and the population is now doubtless more than 8,000,000. The CHAIRMAN. And as to the revenues, how have they been, approximately, during the last few years? Have they exceeded the needs of the islands? Have they been sufficient? Gen. MCINTYRE The revenues have been ample. The finances of the islands have always been in good condition. The CHAIRMAN. Some of the revenues have been used in the making of improvements, have they not? Gen. MCINTYRE. Yes; 20 per cent, in round numbers, of all the revenues collected in the Philippine Islands have been devoted to permanent improvements in those islands. Senator SHAFROTH. They had to contract a bonded indebtedness of $5,000,000, however, did they not? Gen MCINTYRE. Yes; they have an indebtedness of $5,000,000 for public works. Senator RANSDELL. What was the character of the public works? Gen. MCINTYRE. Harbor works, bridges, roads, schools, and public buildings of various kinds. Those show the general nature. Senator WEEKS. How is the revenue obtained? Gen. MCINTYRE. The revenue is obtained from customs duties in part. Insular revenues come from the customhouses, and covering the entire field, that has been one-half of the entire revenue; at present it is a little less than one-half. They have also internal revenues. Those are the two principal sources of revenue; and then they have miscellaneous revenues, arising from the handling of the business of the Government. 10 GOVERNMENT OF THE PHILIPPINES. Senator WEEKS. Is their internal revenue of about the same character as ours. Gen. MCINTYRE. They are a good deal alike; but they have some matters which we do not have; they have a percentage tax on business. Senator LIPPITT. Their principal item of internal revenue is the tax on business, is it not? Gen. MCINTYRE. That is one of the principal sources. Senator LIPPITT. That is the principal source, is it not? Gen. MCIlNTYRE. Yes; one of the principal sources for the central government. The internal-revenue department of the central government also collects certain revenues that go to the Provinces and municipalities; one of the principal sources, year in and year out, is the cedula tax. Senator LIPPITT. What is that? Gen. MCIN;TYRE. The cedula tax corresponds to our poll tax, and it is one peso for each man between the ages of 18 and 60, with certain exceptions, and it can be doubled by the Province if the Province desires to devote the additional amount to roads and public works within the Province. Senator LIPPITT. That tax can not amount to more than $2,000,000 can it? Gen. MICINTYRE. I think it does. Senator LIPPITT. If there are 8,000,000 inhabitants, I do not think there could be more than 3,500,000 men between those ages. Gen. MCINTYRE. I have the figures here and can give them to you. Senator LIPPITT. Never mind; you need not look it up now. Gen. MCINTYRE. Well, that is about what it amounts to. For instance, in 1913 the Provinces received from that tax P:3,108,615.75 and the municipalities received P1,071,581.25. Senator RANSDELL. What is the value of a peso in our money? Gen. MCINTYRE. Fifty cents gold; it is based on our coinage50 cents. The CHAIRMAN. Does the Central Government collect all taxes? Gen. MCINTYRE. The Central Government collects all taxes except certain license taxes that the municipalities are authorized to impose. That is, the cedula taxes, for instance, are collected by the collector of internal revenue and his deputies, and goes partly to the Provinces and partly to the municipalities. There are certain taxes collected by the treasurers of the municipalities themselves, certain taxes imposed in the municipalities. They have a provincial treasurer and they have a municipal treasurer, who is ordinarily the deputy of the provincial treasurer, so that the collector of the Province is ordinarily responsible for those. The CHAIRMAN. How many Provinces are there? Gen. MCINTYRE. Thirty-three Christian Provinces "fully organized," represented in the assembly; and then several specially organized Provinces, which are also represented in the assembly; and certain non-Christian Provinces. The CHAIRMAN. These revenues are turned into what part of the treasury when they are collected? Gen. MCINTYRE. They are paid into the general fund of the treasury and charged to the special account. GOVERNMENT OF THE PHILIPPINES. 11 The CHAIRMAN. And then they are paid out to the several Provinces for their use? Gen. MCINTYRE. Part to the Provinces and part to the municipalities. The CHAIRMAN. They do not go originally into the provincial treasury or municipal treasury, but first they go into the central treasury? Gen. MCINTYRE. Yes; that is, they are taken up on the books of the collector of internal revenue, even though they may be placed, for convenience, in some local bank or local custodian. The CHAIRMAN. Now, as to the other disbursements; are the municipal treasurers and the provincial treasurers subject to the central treasurer of the islands or to a central auditor? Gen. MCINTYRE. A central auditor who audits all expenditures in the islands of every class and kind. The CHAIRMAN. So that the central government exercises a surveillance over the provincial and municipal governments and checks them up? Gen. MCINTYRE. Yes; checks them up. The report of the auditor, for instance, which we get each year, includes a thorough report of the disbursements of the central government and of the provincial governments and of the municipal governments. Senator FLETCHER. What is the form of the provincial governments and the municipal governments Gen. McINTYRE. The provincial government has as a governing body, a provincial board, which consists of the elective governor and the treasurer, who is a civil-service official appointed by the Governor General, and an elective official designated as the third member. Those have all the legislative authority of the Province. They have also a provincial fiscal, who is the prosecuting attorney of the Province, who is appointed in a manner similar to that of the appointment of the treasurer. The CHAIRMAN. Would the new legislature under this bill have the power to change that method of government? Gen. McINTYRE. Under this bill, subject to the approval of the Governor General, and in case of veto of the President, they would have. The CHAIRMAN. So that the new legislature under this new formation of government might have the power to vest in the local governments the power to collect taxes and the power to disburse them, without any central check? Gen. MCINTYRE. It is possible that such would be the case. Senator FLETCHER. Do you know of any disposition to do that? Gen. MCINTYRE. NO; I do not. Judging by the acts of the legislature as it now exists, I think the disposition is not to do that. I think the disposition of the legislature at present is rather conservative, and that they are rather inclined to see the necessity for the present of considerable supervision over the local governments. Senator FLETCHER. The present system seems to be satisfactory to the people of the islands? Gen. MCINTYRE. I think it is. I think gradually there might be certain changes, but there seems to be no desire for a radical change at present. 12 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. Has not the present Legislature of the Philippine Islands the power over the customs tariffs? Gen. MCINTYRE. At present not. After the passage of the organic act-that is, the present organic act-the legislature there perhaps had the same power which is given in this act-that is, to pass a tariff act-and the tariff act until 1905 in effect in the Philippine Islands was the result of local legislation. But in 1905 Congress elected to pass a tariff act, and thereafter, just as would be the case under this bill, the local legislature could not alter or amend that. This bill, with reference to the tariff, would have this effect: It would continue in effect the present tariff, giving, however, authority to the Philippine Legislature to provide its own tariff applicable to the islands in so far as it did not affect trade with the United States, but the trade relations between the United States and the islands would continue under the exclusive jurisdiction of Congress. Thereafter, of course, if Congress elected to pass a tariff act for the Philippines, the Philippine Legislature would be excluded from that field, just as it is at present by our tariff act of 1909. Congress passed a tariff act in 1905, and another tariff act in 1909, affecting the Philippine Islands. So that at present the Philippine Legislature is excluded from that field. The CHAIRMAN. And it exercises at present jurisdiction only over internal-revenue taxes? Gen. MCINTYRE. Internal taxes only. The CHAIRMAN. But it receives the revenue from the customs fixed by the Congress of the United States? Gen. MCINTYRE. Yes, sir. Senator WEEKS. How much money has the United States spent in the Philippine Islands for maintenance of the military forces there and for other purposes since 1900? Gen. MCINTYRE. It is impossible to tell that, Senator. The expenditures for the Army are not divided along any territorial lines whatever; it is impossible to say what they would be in the Philippines. Senator WEEKS. Well, could not the War Department tell how much had been expended for the Army? Gen. MCINTYRE. The War Department can-and it has several times in the past gone over the matter-tell very nearly, of course, the amount that has been disbursed in the islands for the payment of troops and by quartermasters for the construction of barracks and quarters and for transportation of the Army. But it is very difficult to get at the exact amount, because there are so many indirect charges there. Senator WEEKS. How much has the Navy spent there? Gen. MCINTYRE. The Navy usually report that they have spent nothing; but that is on the theory that their ships are in commission anyhow, and that those expenditures would continue whether the vessels were in the islands or not. Senator WEEKS. How about the maintenance of navy yards? Gen. MCINTYRE. They have maintained navy yards there and there has been some construction, but that has been the usual form of reply to these inquiries. GOVERNMENT OF THE PHILIPPINES. 13 Senator WEEKS. Well, how much have we expended for forts and other similar expenses? Gen. MCINTYRE. Well, of course, the engineers report that; I could get those figures and give it to you up to the last report which has been made. Senator WEEKS. For what other purposes has the United States Government spent money in the Philippines? Gen. MCINTYRE. The United States Government has spent about one-half of the cost of the coast and geodetic survey of the islands. That is divided between the Government of the Philippine Islands and that of the United States. They spent $3,000,000, appropriated. by an act of Congress, for the assistance of the people who were suffering from the effects of the insurrection and from a semifamine after the insurrection; and that is about all. Senator SHAFROTH. The House committee reported two years ago that there had been an expenditure of about $50,000,000 a year, directly and indirectly, by this Government. Senator LIPPITT. How much of our Army is there? Gen. MCINTYRE. About 12,000 men. Senator SHAFROTH. The late Senator Hoar estimated a number of years ago that they were costing us about $100,000,000 a year at that time. Senator WEEKS. Mr. Chairman, if those figures can be obtained in any definite shape, I think this is a good time for us to find out what the expenses have been, directly and indirectly, connected with the Philippine Islands. I have not examined the subject, and I do not know that they can be furnished any more accurately than they have been; but if it is possible, I think the committee ought to have those figures. Senator RANSDELL. DO you mean from the beginning? Senator WEEKS. Yes; from the beginning. The CHAIRMAN. Senator Weeks, will you specify exactly what you would like to have? Senator WEEKS. As nearly as possible, the military expenditures for the maintenance of troops and for fortifications. Senator LIPPITT. May I interrupt you a moment? Do you mean the cost of the conquest of the islands or the cost subsequent to the conquest? Senator WEEKS. No; subsequent to the conquest-for fortifications, the expenditures of the Navy for construction, and development of navy yards --- The CHAIRMAN (interposing). Do you mean the development of navy yards simply within the Philippines? Senator WEEKS. Yes; simply in the Philippines, of course-the cost of the Coast and Geodetic Survey and for all other civil purposes. The CHAIRMAN. Well, this Government has not spent anything for civil purposes over there, has it? *Senator WEEKS. Well, it did spend $3,000,000, as Gen. McIntyre testified, after the insurrection for the assistance of the people. Gen. MCINTYRE. That was known as the congressional relief fund. Senator WEEKS. The congressional relief fund. The CHAIRMAN. And the Coast and Geodetic Survey and all other civil purposes? 14 GOVERNMENT OF THE PHILIPPINES. Senator RANSDELL. In a general way you want to find out all of the money that has been expended? Senator WEEKS. Yes; that is what I want. Senator RANSDELL. I suppose that would cover it. Senator LIPPITT. I would like to ask the Senator if he would not like to have that statement made so that those expenditures would be given for each year, and not merely in a bulk sum? Senator WEEKS. To determine whether they are increasing or decreasing? Yes; I would like to have it in that form. Gen. MCINTYRE. I think I could furnish it as nearly as anybody can, because we have from time to time called for such information as that. But if it is satisfactory, I should like to have a definite understanding as to the date from which we are to begin. You see, during the insurrection, when we were puttiig down the insurrection, the military were collecting all of the revenues of the Islands. We had a military government there at that time, and we expended a great deal of Philippine revenues, called " Public civil fund." Of course, that was accounted for just like appropriations from Congress. You take the organic act — Senator WEEKS (interposing). When did the organic act go into effect? Gen. MCINTYRE. July 1, 1902. Senator WEEKS. That was the date I had in mind. Gen. McINTYRE. Yes. Senator LIPPITT. That did not go into effect until a little later, did it, about the 1st of January, 1903? Gen. MCINTYRE. My impression is that certain features of it went into effect later, but the organic act itself, I think, went into effect immediately. You see the organic act of July 1, 1902, really continued the form of government precisely as it had been; there was no change at all; it recognized and approved all that had been done, and simply changed it in some respects. Senator LIPPITT. Yes. Gen. MCINTYRE. The assembly part, of course, only came in five years later. Senator LIPPITT. How many men does the Army now have in the Philippines? Gen. MCINTYRE. About 12,000. Senator LIPPITT. Is that what they have been in the habit of having? Gen. McINTYE. That would be about the average since, perhaps, 1904. Senator LIPPITT. What does it cost to maintain 12,000 men in the Philippines-in a general way? I suppose you have some estimate of what the United States is spending to maintain those 12,000 men there now? Gen. MCINTYRE. That is now kept separately, ordinarily. I will be very glad to submit that data just as nearly as it can be obtained, and I will do so. Senator LIPPITT. I see that there are estimates in regard to that all the way from $600 to $1,200 a man. Gen. McINTYRE. Yes. The old estimate was $1,000 per man, but that is very indefinite; and then, of course, there have been many GOVERNMENT OF THE PHILIPPINES. 15 definite reports covering the past several years. I think the statements have been more definite than accurate; because it is a difficult thing to get at. Senator SHAFROTH. The House report takes the total number of men in the service and the total number in the Philippine Islands and gets the proportion, and says it is about $26,000,000 a year. The CHAIRMAN. In addition to that there is the constabulary over there. Gen. MCINTYRE. There is the constabulary, but that is supported by the Philippine Government. The CHAIRMAN. Is that separate from the Regular Army? Gen. MCINTYRE. That is altogether separate from the Regular Army. Senator KENYON. How many of those are there? Gen. McINTYRE. Usually about 3,000 or 4,000; the number varies. Senator LIPPITT. In the estimate of costs that you are going to submit I think it would be a very good thing if you would submit an estimate of what you think the Army is now costing us, and tell us the basis upon which you arrive at that estimate. Gen. MCINTYRE. Yes. Senator KENYON. If it would be a proper question, I would like to ask you, Gen. McIntyre, what effect the climatic conditions in the Philippine Islands have on the personnel of the Army? Gen. MCINTYRE. On that there is a considerable disagreement; but, of course, it is notorious that long residence in the Tropics injuriously affects most people from the Temperate Zone. But you will find a good many articles by medical men and others stating that a man leading a proper life in the Tropics is not injured. But that seems to run counter to experience. Now, shall I start with the bill and go through it section by section, Mr. Chairman? The CHAIRMAN. I think that would be wise-just to take the bill, beginning with the first section, and go through it. (The bill referred to is as follows:) [H. R. 18459. Sixty-third Congress, second session.] AN ACT To declare the purpose of the people of the United States as to the future political status of the people of the Philippine Islands, and to provide a more autonomous government for those islands. Whereas it was never the intention of the people of the United States in the incipiency of the War with Spain to make it a war of conquest or for territorial aggrandizement; and Whereas it is, as it has always been, the purpose of the people of the United States to withdraw their sovereignty over the Philippine Islands and to recognize their independence as soon as a stable government can be established therein; and Whereas for the speedy accomplishment of such purpose it is desirable to place in the hands of the people of the Philippines as large a control of their domestic affairs as can be given them without, in the meantime, impairing the exercise of the rights of sovereignty by the people of the United States, in order that, by the use and exercise of popular franchise and governmental powers, they may be the better prepared to fully assume the responsibilities and enjoy all the privileges of complete independence: Therefore Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the provisions of this Act and the name "The Philippines" as used in this Act shall apply to and include the Philippine Islands ceded to the United States Government by the treaty of peace concluded between the United States and Spain on the eleventh day of 16 GOVERNMENT OF THIE PHILIPPINES. April, eighteen hundred and ninety-nine, the boundaries of which are set forth in Article III of said treaty, together with those islands embraced in the treaty between Spain and the United States concluded at Washington on the seventh day of November, nineteen hundred. SEC. 2. That all inhabitants of the Philippine Islands continuing to reside therein who were Spanish subjects on the eleventh day of April, eighteen hundred and ninety-nine, and then resided in said islands, and their children born subsequent thereto, shall be deemed and held to be citizens of the Philippine Islands, except such as shall have elected to preserve their allegiance to the Crown of Spain in accordance with the provisions of the treaty of peace between the United States and Spain, signed at Paris December tenth, eighteen hundred and ninety-eight, and except such others as have since become citizens of some other country: Provided, That the Philippine Legislature, herein provided for, is hereby authorized to provide by law for the acquisition of Philippine citizenship by those natives of the Philippine Islands who do not come within the foregoing provisions, the natives of the insular possessions of the United States, and such other persons residing in the Philippine Islands who are citizens of the United States, or who could become citizens of the United States under the laws of the United States if residing therein. SEC. 3. That no law shall be enacted in said islands which shall deprive any person of life, liberty, or property without due process of law, or deny to any person therein the equal protection of the laws. Private property shall not be taken for public use without just compensation. That in all criminal prosecutions the accused shall enjoy the right to be heard by himself and counsel, to demand the nature and cause of the accusation against him, to have a speedy and public trial, to meet the witnesses face to face, and to have compulsory process to compel the attendance of witnesses in his behalf. That no person shall be held to answer for a criminal offense without due process of law; and no person for the same offense shall be twice put in jeopardy of punishment, nor shall be compelled in any criminal case to be a witness against himself. That all persons shall before conviction be bailable by sufficient sureties, except for capital offenses. That no law impairing the obligation of contracts shall be enacted. That no person shall be imprisoned for debt. That the privilege of the writ of habeas corpus shall not be suspended, unless when in cases of rebellion, insurrection, or invasion the public safety may require it, in either of which events the same may be suspended by the President, or by the governor general, wherever during such period the necessity for such suspension shall exist. That no ex post facto law or bill of attainder shall be enacted nor shall the law of primogeniture ever be in force in the Philippines. That no law granting a title of nobility shall be enacted, and no person holding any office of profit or trust in said islands, shall, without the consent of the Congress of the United States, accept any present, emolument, office, or title of any kind whatever from any king, queen, prince, or foreign State. That excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishment inflicted. That the right to be secure against unreasonable searches and seizures shall not be violated. That slavery shall not exist in said islands; nor shall involuntary servitude exist therein except as a punishment for crime whereof the party shall have been duly convicted. That no law shall be passed abridging the freedom of speech or of the press, or the right of the people peaceably to assemble and petition the Government for redress of grievances. That no law shall be made respecting an establishment of religion or prohibiting the free exercise thereof, and that the free exercise and enjoyment of religious profession and worship, without discrimination or preference, shall forever be allowed; and no religious test shall be required for the exercise of civil or political rights. No public money or property shall ever be appropriated, applied, donated, or used, directly or indirectly, for the use, benefit, or support of any sect, church, denomination, or system of religion, or for the use, benefit, or support of any priest, preacher, minister, or other religious teacher or dignitary or sectarian institution as such. Polygamous or plural marriages are forever prohibited. G b~~~b ~~1* t':; - ':__ - afhat no moAey shall be pai out of the treasury except in pursuance of an. arelprflatl6 'by law. That the rule of taxation in said islands: shall be uniform. - That no bill which may be enacted into law shall embrace more thair one' suabeert and thtat subject shall be expressed in the title of the bill. That no warrant shall issue but upon probable cause, supported by oathi or affirmation, and particularly describing the place to be, searched and toxI person or things to be, seized. That all money collected on any tax levied or assessed for a special: purpo: shall be treated as a special fund in the treasury and paid out for such pur peOs only. SEC. 4. That all expenses that may be incurred on account of the Governmefit of the Philippines for salaries o ofofficials and the conduct of their offices andf d4artments, and all expenses and obligations contracted for the internal imi provement or development of the islands, not, however, including defenses, bairaefls, and other works undertaken by the United States, shall, except as otherwiOs specifically provided by the Congress, be paid by the Government of the Ph.ilippines. - S. 5. That the statutory laws of the United States hereafter enacted' shaill. not a1pply to the Philippine Islands, except when they specifically so provide, or it ig so provided in 'this Act. SEC. 6. That the laws now in force in the Philippines shall continue in force and effect, except as altered, amended, or modified herein, until altered, amended, or repealed by the legislative authority herein provided or by Act of Congress of the United States. gSc. 7. That the legislative authority herein provided shall have power, when not inconsistent with this Act, by due enactment to amend, alter, modify, or, repeal any law, civil or criminal, continued in force by this Act as it may frour time to time see fit. This power shall specifically extend with the limitation herein provided- ato the tariff to all laws relating to revenue and taxation in effect in the Philip1 pines. S... That general legislative power, except as otherwise herein provided,. Is' hereby granted to the Philippine Legislature, authorized by this Act. SEC. 9. That all the property and rights which may have been acquired in- th(e Philippine Islands by the United States under the treaty of peace with Spain signed December tenth, eighteen hundred and ninety-eight, except such land' or other property as has been or shall be designated by the President of thOSl United' States for military and other reservations of the Government of the United States, and all lands which may have been subsequentl acquired by thet Government of the Philippine Islands by purchase under the provisions of see tibns sixty-three and sixty-four of the Act of Congress approved July first, nineteen hundred and two, except such as may have heretofore been sold and' disposed of in accordance with the provisions of said Act of Congress, art hereby placed under the control of the government of said islands to be admin-; istered or disposed of for the benefit of the inhabitants thereof, and the Philip. pine Legislature shall have power to legislate with respect to all such matters as it may deem advisable; but acts of the Philippine Legislature with reference to; lnd, timber, and miniing, hereafter enacted, shall not have the force of law-: until approved by the President of the United States: Provided, That upon' the" approval of such an act by the Governor General, it shall be by him forthwithr: transmitted to the President of the United States, and he shall approve or disapprove the same within six months from and after its enactment and sublmission for his approval, and if not disapproved within such time it shall be: come a law the same as if it had been specifically approved: Provided further, That where lands in the Philippine Islands have been or may be reserved' for- any public purpose of the United States, and, being no longer required for the^ purpose for which reserved, have been or may be, by order of the President, placed under the control of the government of said islands to be administered for the benefit of the inhabitants thereof, the order of the President shall bey regarded as effectual to give the government of said islands full control andf" power to administer and dispose of such lands for the benefit of the inhabitants of said islands. SEC. 10. That, while this Act provides that the Philippine Government shall' have thie authority to enact a tariff law, the trade relations between the islands 73560-14 — 2 18 GOVERNMENT OF THE PHILPPINtS. and the United States shall continue to be governed exclusively by laws of the Congress of the United States: Provided, That tariff acts or acts amendatory to the tariff of the Philippine Islands shall not become law until they shall receive the approval of the President of the United States, nor shall any act of the Philippine Legislature affecting the currency or coinage laws of the Philippines become a law until it has been approvide by the President of the United States: Provided further, That the President shall approve or disapprove any act mentioned in the foregoing proviso within six months from and after its enactment and submission for his approval, and if not disapproved within such time it shall become a law the same as if it had been specifically approved. SEC. 11. That no export duties shall be levied or collected on exports from the Philippine Islands, but taxes and assessments on property and license fees for franchises, and privileges, and internal taxes, direct or indirect, may be imposed for the purposes of the Philippine Government and the provinicial and municipal governments thereof, respectively, as may be provided and defined by acts of the Philippine Legislature heretofore enacted, and, where necessary to anticipate taxes and revenues, bonds and other obligations may be issued by the Philippine Government or any provincial or municipal government therein, as may be provided by law and to protect the public credit: Provided, howcever, That the entire indebtedness of the Philippine Government created by the authority conferred herein shall not exceed at any one time the sum of $10,000,000, exclusive of those obligations known as friar land bonds, nor that of any province or municipality a sum in excess of seven per centumr of the aggregate tax valuation of its property at any one time. SEC. 12. That general legislative powers in. the Philippines, except as herein otherwise provided, shall be- vested in a legislature which shall consist of two houses, one the senate and the other the house of representatives, and the two houses shall be designated "The Philippine Legislature ": Provided, That, until the Philippine Legislature as herein provided shall have been organized, the existing Philippine Legislature shall have all legislative authority herein granted to the Government of the Philippine Islands, except such as may now be within the exclusive jurisdiction of the Philippine Commission, which is so continued until the organization of the legislature herein provded for the Philippines. When the Philippine Legislature shall have been organized, the exclusive legislative jurisdiction and authority exercised by the Philippine Commisson shall thereafter be exercised by the Philippine Legislature. SEc. 13. That the members of the Senate of the Philippines, except as herein provided, shall be elected for terms of six and three years, as hereinafter provided, by the qualified electors of the Philippines. Each of the senatorial districts defined as hereinafter provided shall have the right to elect two senators. No person shall be an elective member of the senate of the Philippines who is not a qualified elector and over thirty years of age, and who is not able to read and write either the Spanish or English language. and who has not been a resident of the Philippines for at least two consecutive years and an actual resident of the senatorial district from which chosen for a period of at least one year immediately prior to his election. Sec. 14. That the members of the house of representatives shall, except as herein provided, be elected triennially by the qualified electors of the Philip pines. Each of the representative districts hereinafter provided for shall have the right to elect one representative. No person shall be an elective member of the house of representatives who is not a qualified elector and over twenty-five years of age, and who is not able to read and write either the Spanish or English language, and who has not been an actual resident of the district from which elected for at least one year immediately prior to his election. SEC. 15. That until otherwise provided by the Philippine Legislature herein provided for the qualifications of voters for senators and representatives in the Philippines and all officers elected by the people shall be as follows: Every male citizen of the Philippines twenty-one years of age or over (except insane and feeble-minded persons and those convicted in a court of competent jurisdiction of an infamous offense since the thirteenth day of August, eighteen hundred and ninety-eight), who shall have been a resident of the Philippines for one year and of the municipality in which he shall offer to vote for six months next preceding the day of voting, and who is comprised within one of the following classes: (a) Those who prior to the thirteenth day of August, eighteen hundred and ninety-eight, held the office of captain municipal, gobernadorcillo, alcalde, tenientes, cabeza de barangay, or member of any ayuntamiento. GOVERNMENT OF THE PHILIPPINES. 19 (b) Those who own real property to the value of five hundred pesos, or who' annually pay thirty pesos or more of the established taxes. (c) Those who are able to read and write either Spanish, English, or a native language. SEC. 16. That for the purposes of the first election hereafter to the Philip-. pine Legislature, the Philippine Islands shall be divided by the Philippine Commission into twelve senate and ninety representative districts. In establishing senate and representative districts the commission shall establish in the territory not now represented in the Philippine Assembly one senate and nine representative districts. The first election under the provisions of this Act shall be held on the first Tuesday of June, nineteen hundred and fifteen, and there shall be chosen at such election one senator from each senate district for a teim of three years and one for six years. Thereafter one senator from each district shall be elected from each senate district for a term of six years. That at said first election each representative district shall elect one representative for a term of three years, and triennially thereafter: Provided, That the Governor General of the Philippine Islands shall appoint, with-' out the consent of the senate and without restriction as to residence, senators and representatives who will, in his opinion, best represent the senate district and those representative districts which may be included in the territory not now represented in the Philippine Assembly: Provided further, That thereafter electtions shall be held only on such days and under such regulations as to ballots, voting, and qualifications of electors as may be prescribed by the Philippine Legislature, to which is hereby given authority to redistrict the Philippine Islands and modify, amend, or repeal any provision of this section. SEC. 17. That the terms of office of elective senators and representatives shall be six and three years, respectively, from the sixteenth of October following their election. In case of vacancy among the elective members of the senate or in the house of representatives, special elections may be held in the districts wherein such vacancy occurred under such regulations as may be prescribed by law, but senators or representatives elected in such cases shall hold office only for the unexpired portion of the term wherein the vacancy occurred. Senators and representatives appointed by the Governor General shall hold office until removed by the Governor General. SEC. 18. That the senate and house of representatives, respectively, shall be the sole judges of the elections, returns, and qualifications of their elective members, and each house may determine the rules of its proceedings, punish its members for disorderly behavior, and, with the concurrence of two-thirds, expela member. Both houses shall convene at the capital on the sixteenth day of October next following the election and organize by the election of a speaker or a presiding officer, a clerk, and a sergeant at arms for each house, and such other officers and assistants as may be required. The legislature shall hold annual sessions, commencing on the sixteenth day of October, or, if the sixteenth day of October be a legal holiday, then on the first day following which is not a legal holiday, in each year. The legislature may be called in special. session at any time by the Governor General for general legislation, or foraction on such specific subjects as he may designate. No special session shall continue longer than thirty days, exclusive of Sundays. The legislature is hereby given the power and authority to change the date of the commencement of its annual sessions. ". The senators and representatives shall receive an annual compensation for their services, to be ascertained by law, and paid out of the treasury of the Philippine Islands. The senators and representatives shall, in all cases except treason, felony, and breach of the peace, be privileged from arrest during their attendance at the session of their respective houses and in going to and returning from the same; and for any speech or debate in either house they shall not be questioned in any other place. SEC. 19. That every bill and joint resolution, which shall have passed both houses of the legislature, shall, before it becomes a law, be presented to the Governor General. If he approve the same he shall sign it; but if not he shall return it with his objections to that house in which it shall have originated, which shall enter the objections at large on its journal and proceed to reconsider it. If, after such reconsideration, two-thirds of the members elected to that house, shall agree to pass the same, it shall be sent, together with the objections, to the other house, by which it shall likewise be reconsidered, and if approved by two-thirds of all the members elected to that house it shall be sent to the Governor General, who shall transmit the same to the President of the United States. The vote of each house shall be by the yeas and nays, GOVERiUMENT OF THB PHILIPPIW4B&d and the names of the members voting for and against shall be entered on the journal. If the President of the United; States approve the same he shall siga it and it shall become a law. If he shall not approve same he shall returh it to the Governor General so stating, and it shall not become a law: Provide4; That if any bill or joint resolution shall not be returned by the Governor General as herein provided within twenty days (Sundays excepted) after it shall have been presented to him the same shall become a law in like manner as if he had signed it, unless the legislature by adjournment prevent its return, in which case it shall not be a law: Provided further, That the President of, the United States shall approve or disapprove an Act submitted to him under the provisions of this section within six months from and after its enactment and submission for his approval; and if not approved within such time, it shali become a law the same as if it had been specifically approved. The Governor General shall have the power to veto any particular item or items of an appropriation bill, but the veto shall not affect the item or items to which he does not object. The item or items objected to shall not take effect except in the manner heretofore provided in this section as to bills and joint resolutions returned to the legislature without his approval. All laws enacted by the Philippine Legislature shall be reported to the Congress of the United States, which hereby reserves the power and authority to annul the same. If at the termination of any fiscal year the appropriations necessary for the support of government for the ensuing fiscal year shall not have been made, the several sums appropriated in the last appropriation bills for the objects and purposes therein specified, so far as the same may be done, shall be deemed to be reappropriated for the several objects and purposes specified in said last appropriation bill; and until the legislature shall act in such behalf the treasurer shall, when so directed by the Governor General, make the payments necessary for the purposes aforesaid. SEC. 20. That the qualified electors of the Philippine Islands shall, on the first Tuesday in June, nineteen hundred and fifteen, and at the general elections thereafter provided for the election of senators and representatives to the Philippine Legislature, elect two Resident Commissioners to the United States, who shall be entitled to an official recognition as such by all departments upon presentation to the President of a certificate of election by the Governor General of said islands. Each of said Resident Commissioners shall, in addition to the salary and the sum in lieu of mileage now allowed by law, be allowed the same sum for stationery and for the pay of necessary clerk hire as is now allowed to the Members of the House of Representatives of the United States, to be paid out of the Treasury of the United States, and the franking privilege allowed by law to Members of Congress. No person shall be eligible to election as Resident Commissioner who is not a bona fide elector of said islands and who does not owe allegiance to the United States and who is not more than thirty years of age and who does not read and write the English language. The two Resident Commissioners elected in June, nineteen hundred and fifteen, shall hold their office from the first Monday in the month of December following until the fourth of March, nineteen hundred and twenty-two. and the term of their successors shall be for six years, beginning from the fourth of March following their election. In case of vacancy in the position of Resident Commissioner caused by resignation or otherwise, the Governor General may make temporary appointments until the next meeting of the Philippine Legislature, which shall then fill such vacancy; but the Resident Commissioner thus elected shall holds office only for the unexpired portion of the term wherein the vacancy occurred. SEC. 21. That the supreme executive power shall be vested in an executive officer, whose official title shall be " The Governor General of the Philippine Islands." He shall be appointed by the President, by and with the advice and consent of the Senate of the United States, and hold his office at the pleasure of the President and until his successor is chosen and qualified. The Governor General shall reside in the Philippine Islands during his official incumbency, and maintain his office at the seat of government. He shall, unless otherwise herein provided, appoint, by and with the consent of the Philippine Senate, such officers as may now be appointed by the Governor General, or such as he is authorized by this Act to appoint, or whom he may hereafter be authorized by law to appoint; but appointments made while the senate is not in session shall be effective either until disapproval or until the next adjournment of the senate. He shall have general supervision and control of all of the departments and bureaus of the Government in the Philippine Islands as far as is not inconsistent with the provisions of this Act, and shall be commander in chief of all locally created armed forces and militia. He may grant pardons and reprieves and GOVE0KWMENT OF THE TH:ILtPPINES. 21 remit fines and forfeitures, and may veto any legislation enacted as herein provided. He shall submit within ten days of the opening of each regular session of the Philippine Legislature a budget of receipts and expenditures, which shall be the basis of the annual appropriation bill. He shall commission all officers that he may be authorized to appoint. He shall be responsible for the faithful execution of the laws of the Philippine Islands and of the United States operative within the Philippine Islands, and whenever it becomes necessary he may call upon the commanders of the military and naval forces of the United States in the islands, or summon the posse comitatus, or call out the militia or other locally created armed forces, to prevent or suppress lawless violence, invasion, insurrection, or rebellion; and he may, in case of rebellion or invasion, or imminent danger thereof, when the public safety requires it, suspend the privileges of the writ of habeas corpus, or place the islands, or any part thereof, under martial law: Provided, That whenever the Governor General shall exercise the authority granted in this section, he shall at once notify the President of the United States thereof, together with the attending facts and circumstances, and the President shall have power to modify or vacate the action of the Governor General. He shall annually and at such other times as he may be required make such official report of the transactions of the government of the Philippine Islands to an executive department of the United States to be designated by the President, and his said annual report shall be transmitted to the Congress of the United States; and he shall perform such additional duties and functions as may in pursuance of law be delegated or assigned to him by the President. SEC. 22. That, except as provided otherwise in this Act, the executive departments of the Philippine Government shall continue as now authorized by law until otherwise provided by the Philippine Legislature. When the Philippine Legislature herein provided shall convene and organize, the Philippine Commission, as such, shall cease and determine and the members thereof, except the Governor General and heads of executive departments, shall vacate their offices as members of said commission. The Philippine Legislature may thereafter by appropriate legislation increase the number or abolish any of the executive departments, or make such changes in the names and duties thereof as it may see fit, and shall provide for the appointment and removal of the heads of the executive departments by the Governor General, and may provide that heads of executive departments shall have seats in either or both houses of the legislature, with the right of debating or voting or both: Provided, That all executive functions of the government must be directly under the Governor General or within one of the executive departments under the supervision and control of the Governor General. There shall be established by the Philippine Legislature a bureau, to be known as the Bureau of Non-Christian Tribes, which said bureau shall be embraced in one of the executive departments to be designated by the Governor General, and shall have general supervision over the public affairs of the inhabitants of the territory represented in the legislature by appointive senators and representatives. SEc. 23. That the President may from time to time designate the head of an executive department of the Philippine Government to act as Governor General in the case of a vacancy, the temporary removal, resignation, or disability of the Governor General, or his temporary absence, and the head of the department thus designated shall exercise all the powers and perform all the duties of the Governor General during such vacancy, disability, or absence. SEC. 24. That the supreme court and the courts of first instance of the Philippine Islands shall possess and exercise jurisdiction as heretofore provided and such additional jurisdiction as shall hereafter be prescribed by law. The municipal courts of said islands shall possess and exercise jurisdiction as now provided by law, subject in all matters to such alteration and amendment as may be hereafter enacted by law; and the chief justice and associate justices of the supreme court shall hereafter be appointed by the President, by and with the advice and consent of the Senate of the United States. The judges of the court of first instance shall be appointed by the Governor General, by and with the advice and consent of the Philippine Senate: Provided, That the admiralty jurisdiction of the supreme court and courts of first instance shall not be changed except by Act of Congress. That in all cases pending under the operation of existing laws, both criminal and civil, the jurisdiction shall continue until final judgment and determination. SEC. 25. That the Supreme Court of the United States shall have jurisdiction to review, revise, reverse, modify, or affirm the final judgments and decrees of the Supreme Court of the Philippine Islands in all actions, cases, causes, and 22 GOVERNMENT OF THE PHILIPPINES. proceedings now pending therein or hereafter determined thereby in which the Constitution or any statute, treaty, title, right, or privilege of the United States is involved; and such final judgments or decrees may and can be reviewed, revised, reversed, modified, or affirmed by said Supreme Court of the United Stttes on appeal or writ of error by the party aggrieved within the same time, in the same manner, under the same regulations, and by the same procedure, as far as applicable, as the final judgments and decrees of the district courts of the United States. SEc. 26. That the Government of the Philippine Islands may grant franchises and rights, including the authority to exercise the right of eminent domain, for the construction and operation of works of public utility and service, and may authorize said works to be constructed and maintained over and across the public property of the United States, including streets, highways, squares, and reservations, and over similar property of the government of said islands, and may adopt rules and regulations under which the provincial and municipal governments of the islands may grant the right to use and occupy such public property belonging to said Provinces or municipalities: Provided, That no private property shall be damaged or taken for any purpose under this section without just compensation, and that such authority to take and occupy land shall not authorize the taking, use, or occupation of any land except such as is required for the actual necessary purposes for which the franchise is granted, and that no franchise or right shall be granted to any individual, firm, or corpoLation except under the conditions that it shall be subject to amendment, alteration, or repeal by the Congress of the United States, and that lands or rights of use and occupation of lands thus granted shall revert to the governments by which they were respectively granted upon the termination of the franchises and rights under which they were granted or upon their revocation or repeal. That all franchises or rights granted under this Act shall forbid the issue of stock or bonds except in exchange for actual cash or for property at a fair valuation equal to the par value of the stock or bonds so issued; shall forbid the declaring of stock or bond dividends, and, in the case of publicservice corporations, shall provide for the effective regulation of the charges thereof, for the official inspection and regulation of the books and accounts of such corporations, and for the payment of a reasonable percentage of gross earnings into the treasury of the Philippine Islands or of the Province or municipality within which such franchises are granted and exercised: Provided furtier, That it shall be unlawful for any corporation organized under this Act, or for any person. company, or corporation receiving any grant, franchise, or concession from the government of said islands, to use, employ, or contract for the labor of persons held in involuntary servitude; and any person, company, or corporation so violating the provisions of this Act shall forfeit all charters, grants, or franchises for doing business in said islands, in an action or proceeding brought for that purpose in any court of competent jurisdiction by any officer of the Philippine Government, or on the complaint of any citizen of the Philippines, under such regulations and rules as the Philippine Legislature shall prescribe, and in addition shall be deemed guilty of an offense, and shall be punished by a fine of not less than $10,000. SEc. 27. That, except as in this Act otherwise provided, the salaries of all the officials of the Philippines not appointed by the President, including deputies, assistants, and other employees. shall be such and be so paid out of the revenues of the Philippines as shall from time to time be determined by the Philippine Legislature. The salaries of all officers and all expenses of the offices of the various officials of the Philippines appointed as herein provided by the President shall also be paid out of the revenues of the Philippines. The annual salaries of the following-namned officials appointed by the President and so to be paid shall be: The Governor General, $18,000; in addition thereto he shall be entitled to the occupancy of the buildings heretofore used by the chief executive of the Philippines, with the furniture and effects therein, free of rental; chief justice of the supreme court, $10,500; associate justices of the supreme court. $10.000 each. SEc.-28. That the provisions of the foregoing section shall not apply to provincial and municipal officials; their salaries and the compensation of their deputies, assistants, and other help, as well as all other expenses incurred by the Provinces and municipalities, shall be paid out of the provincial and municipal revenues in such manner as the Philippine Legislature shall provide. SEc. 29. That all laws or parts of laws applicable to the Philippines not in conflict with any of the provisions of this Act are hereby continued in force and effect. -oovarMNT OF THE PHILIPPITES., Gen. MC'NTY~Et Yes. The first section is descriptive simply of the territory to which the bill applies, and is identical with, the territory at present governed by the Philippine organic act. Section 2 of the bill is section 4 of the present organic act as amended by the act of March 23, 1912, with the following slight changes: In line 8, after the word "islands" in the present act, the words "and as such entitled to the protection of the United States" have been omitted. The CHAIRMAN. That is, they have been omitted from the bill as it passed the House? Gen. McINTYRE. -Yes. Senator KENYON. You said line 8 Gen. MCINTYRE. Line 18, I beg your pardon. And the words, "and as such entitled to the protection of the United States," have been stricken out by the House. Senator.SHAFROTH. That is line 18 of section 2? Gen. MCINTYRE. Yes. The CHAIRMAN. That is, they appear in the original organic act? Gen. MCINTYRE. Yes; they appear in the original organic act. The CHAIRMAN. But they have been omitted from the present bill Gen. MCINTYRE. Yes. The CHAIRMAN. Can you state why? Gen. MCINTYRE. I think that was considered surplusage. I can find no other reason. Senator LIPPITT. Regarded as what? Gen. MCINTYRE. Regarded as surplusage-that it was unnecessary. In the proviso to that same section, in line 7 on page 3, the words "who are citizens of the United States, or" have been inserted. Those words do not appear in the present act. The CHAIRMAN. They appear in the present bill, do they not? Senator LIPPITT. They do not appear in the organic act? Gen. MCINTYRE. No; they are in this bill, but they are not in the organic act. Senator LIPPITT. Yes. The CHAIRMAN. Well, what is the effect of the insertion of those words Gen. MCINTYRE. The effect of the insertion of those words is to give to the Philippine Legislature the power to pass an act under which an American citizen could become a citizen of the Philippine Islands if he so desired. The CHAIRMAN. And that is not possible now? Gen. MCINTYRE. It is not possible now. They have no authority by which a man could become a citizen of the Philippine Islands at all, because this proviso was never used. It was passed by Congress in 1912, authorizing the legislature of the Philippine Islands to pass a naturalization law, but it has not yet passed one. The CHAIRMAN. Can you give the committee an estimate of the number of American citizens now resident in the Philippines? Gen. MCINTYRE. I would like to look into that, to see if I can get some more definite statement. The number is not increasing; the number is not so large now as it was shortly after the close of the insurrection. I think more Americans have left the islands than ^~~~ zGOVERNMENT OF THE PHILfLPPiiN. hiave gone there since that time, but I should have to go back for a definite statement to the figures in the census of 1903, and I will insert those figures later, if I may. The CHAIMAN. You may insert them in the record. (The statement referred to is as follows:) The census of 1903 showed: Americans (United States) -______-__________________ _ ______ 8,135 Male ---— ______________._______ ___ 6,920 Female — _____________ --- ___________.__ --— 1,215 Senator KENYON. What are these Americans in the Philippine Islands principally doing? Gen. MCINTYRE. Well, omitting those in the Army and those in,civil office, they are distributed very generally in all classes of occu-.pations. I should say that more are in mercantile business-importmg and exporting-than in any other occupation, although some are interested in agriculture and some in mining. Practically all of the mining at present is under American auspices. Senator KENYON. Is that done generally by corporations or by individuals? Gen. MCINTYRE. The mining is practically all by incorporated companies; but it is done in a small way, and the corporation are usually composed of a very few Americans living out there, some.Filipinos, and some Spaniards. Senator KENYON. Are there any Americans interested in sugar? Gen MCINTYRE. There are some Americans interested in sugar, and there are some Americans interested in hemp, and some intersted in coconuts, and in fact in practically all the industries. The Americans have distributed their activities quite generally, but they are not very largely interested, except in mercantile pursuits. Senator RANSDELL. Is the sugar industry growing very much? Gen. MCINTYRE. It is growing; but it has not yet reached the maximum which it reached during the Spanish period. It is very near that, and probably next year it will be just about that amount. Senator RANSDELL. Is there not quite a large area in the Philip-:pine Islands that could grow cane sugar successfully? Gen. MCINTYRE. Very large. Well, some estimates seem extreme;.but as a matter of fact, there is an immense territory in the Philippine Islands that is suitable for sugar-cane growing. Senator RANSDELL. Are the conditions there as favorable as they are in Java? Gen. McINTYRE. The natural conditions are quite as favorable; in fact, we have reports from experts of the Department of Agriculture that, so far as the land is concerned, the conditions there are better, but, of course, the great difficulty is in the lack of labor, and in the fact that you can not get this land, which is being held up under our land laws, which are very restrictive. Senator LIPPITT. What is the amount of land that a corporation or an individual can acquire for sugar producing? Gen. MCINTYRE. An individual can not acquire from the public domain-he can from private sources —more than 16 hectares, which is about 40 acres. And a corporation can only acquire 1.024 hectares, about 2,500 acres. VOV nMB OB uaF. iS Senator iriPPI. Then an individual caa acquire opy 40 acres of Government land? Gen. MCINTYRE. From the public domain, only 40 acres. Senator KENYON. He can buy all he wants to from private parties? Gen. MCINTYRE. Yes; he can buy all he wants from private persons. The CHAIRMAN. Is the public domain composed of what is called the "friar lands "? Gen. MCINTYRE No. We have in the Philippine Islands-it is estimated, because an accurate survey has not been made-about -60,000,000 acres of public lands. About 30,000,000 acres of that is fairly good agricultural land and the remainder is classed as more suitable for forest purposes than for agricultural purposes, and its operation would come under the forestry bureau. The friar lands were, of course, relatively very small, about 400,000 acres; and a good deal more than one-half-I have the figures here. The total friar lands are approximately 154,000 hectares, and there has now been disposed of 96,000 hectares and there is undisposed of 58,000 hectares. Senator RANSDELL. Of forest lands? Gen. MCINTYRE. No; these are friar lands. The question was as to the friar lands. And the part which has been disposed of has been, generally speaking, the part which was occupied and under cultivation by tenants. The part which has not been disposed of is very largely the land which was not under cultivation. Senator RANSDELL. Are we to infer from your statements that the land laws are such as to prevent or make very difficult the further development of the sugar industry in the Philippines? Gen. MCINTYRE. Yes, sir. Senator RANSDELL. What is the difficulty, then, with those laws? Gen. MCINTYRE. The difficulty is, of course, that if you went to the Philippine Islands to become interested in sugar you would be practically forced to purchase land which had been used in the production of sugar before. That is, you could only purchase of the new land about 40 acres-that is, from the Government. Senator RANSDELL. Yes. The balance is practically restricted, then, to that for actual settlement at the rate of not over 16 hectares, or 40 acres, to any one individual? Gen. MCINTYRE. Yes, sir. Senator RANSDELL. Then, unless we change the law, it is going to be very difficult to increase the production of sugar in the Philippine Islands? Gen. MCINTYRE. It can be quite materially increased by improving the methods of cultivation, but further than that it would be very difficult to increase it. Senator RANSDELL. Until the natives themselves acquire this land and gradually put it into sugar,? Gen. MCINTYRE. Yes, sir. Senator RANSDELL. There can be no very rapid increase? Gen. MCINTYRE. No, sir. Senator SHAFROTH. Gen. McIntyre, do any of the Americans locate upon any of those public lands? Gen. MCINTYRE. Some of them. Senator SHAFROTH. And live on the lands? Gen. MCINTYRE. Yes, sir; and live on the lands. GOVERNMENT OF THIE PHILIPPINES. Senator SHAFROTH. What proportion of Americans do that? Can you estimate how many? Gen. McINTYRE. I should say very few. I take it that not more than a thousand Americans in the entire Philippine Islands have occupied lands, and a great many of those have not acquired their lands directly from the Government; they have acquired lands from prior private owners. Senator SHAFROTH. Then, they do not till the soil themselves-the Americans-but where they do have holdings they lease them, generally, do they? Gen. MCINTYRE. That would be true very largely, though not absolutely. There are some Americans, of course, who have taken up lands, men who have been teamsters with the Army, or men who have been soldiers and were discharged over there; they start out very much as the same men do in this country, and they have cultivated the land themselves. Senator RANSDELL. What are the principal agricultural crops in the Philippines besides sugar, rice, and hemp? Gen. MCINTYRE. The copra, or product of the coconut, the product is sold in the Islands altogether as copra; that is, the meat of the coconut is dried, and that is sold for the purpose of making coconut oil. Then there is tobacco which is produced there. Senator SHAFROTH. Gen. McIntyre, referring to the subject that I have been asking you about, could you give an estimate of the proportion of Americans who take up land, compared to the other people who till lands? Gen. MCINTYRE. Yes, sir; I will be glad to put in the record the best information I can get on that point. (The statement referred to is as follows:) In the 1903 census 815,453 persons were reported as engaged more or less extensively in agriculture. Of this number, 99.8 per cent were Filipinos. Of the remainder there were 778 classed as white, comprising American and Europeans. The number of American owners has been increased, but the total number would be less than 1,000. The CHAIRMIAN. Is there the same limitation on the acquisition of the friar lands, limiting them to 40 acres for an individual and 2,500 acres for a corporation, that exists as to the acquisition of lands on the public domain? Gen. MCINTYRE. The understanding is that there is no such limitation under the law. It was so held by the attorney general of the Philippine Islands, and b.y the Attorney General of the United States. It was held that the lands purchased from the friars were the property of the Philippine Government, as distinguished from the property of the United States in lands which were being administered by the Philippine Government, and that there was no restriction on the amount which could be sold an individual or a corporation, other than the restriction which the Philippine Legislature itself might put upon it. At present, however, the sales are being restricted. The CHAIRMAN. Can you tell us how the payments are being made for those friar lands? Are they all cash, or on time? Gen. MCINTYRE. The original act and the act which is in force, contemplate the sale of these lands to the tenants who have been occupying the lands, in so far as they were occupied; and they GOVERNMENT OF THE PHILIPPINES..27 provided for deferred payments at the rate of interest provided for the bonds; and the period to be such that the entire number of payments would be made before the bonds became due. That is, most of the lands were sold on 20 annual payments, and the deferred payments bore the interest which the bonds bore-that is, 4 per cent interest. The CHAIRMAN. Did the bonds aggregate $7,500,000? Gen. MCINTYRE. Seven million dollars of bonds; and the amount paid for the lands was a little less than $7,000,000. Senator RANSDELL. Were all the lands which the friars owned acquired by the Philippine Government? Gen. MCINTYRE. No; they still own some lands. The acquirement was by private contract-that is, it was a mutual agreement-and they bought all of the lands the Government thought it was essential for it to buy; and of course they were also limited to those which the friars were willing to sell. Senator RANSDELL. Do they own any considerable body of land still? Gen. MCINTYRE. Well, nothing as compared to these lands; but still they have holdings that are of considerable value, but not so much in quantity; most of it has been disposed of. They still own some lands. Senator LIPPITT. Was there not one lot of those friar lands sold in a large block, some 50,000 acres in one bulk'? Gen. MCINTYRE. Yes. That was the San Jose estate in Mindoro. That was sold in bulk. That was an estate which was not in a populous section; in fact, it was an unoccupied estate, and it was sold in that way. Senator LIPPITT. IS that estate still held in bulk; what has become of it? Gen. MCINTYRE. That is still held in bulk, and they are gradually putting the land in sugar, although they have got as yet only a very small part of it in sugar. Senator LIPPITT. IS that owned by Americans? Gen. MCINTYRE. Yes, sir. Senator LIPPITT. You speak of these limitations in regard to the development of sugar, due to the difficulty of acquiring land. Have the Americans bought, or do they own, sugar lands to any extent in the Philippine Islands? Gen. MCINTYRE. The only holdings of which I know are, first, this San Jose estate, which would be the largest sugar estate if it were under cultivation; but of course it was wild land when it was purchased, and I understand that only about 6,000 acres of it have been plantedSenator RANSDELL (interposing). What do you mean by "wild land "; do you mean covered by timber or forest growth? Gen. MCINTYRE. Partly by forest growth and partly by this wild grass-cogon grass. Senator RANSDELL. Is that quite difficult to get rid of? Gen. MCINTYRE. That is quite difficult to get rid of, and it is quite expensive to put the cane in the first year; and in order to plant cane, there is a very considerable amount of work to be done. Senator LIPPITT. I do not suppose all of that land is suitable for sugar? OfViR-MENT OF THE iPHILIPPIENBS. Gen. McINTYRE. Well, I take it that most of that estate would be; and the only question that would arise would be whether it would be more profitable to put in sugar or in rice. Ordinarily a man having land of that kind would grow rice, because all of the laborers eat rice; it is absolutely necessary; he has to grow it or buy it; so that would be a matter to be considered. Senator LIPPITT. Those are the friar lands-that 50,000 acres? Gen. MCINTYRE. Those are friar lands. Senator LIPPITT. Has any corporation acquired the full amount of lands from the Government that they would be entitled to for sugar purposes? Gen. MCINTYRE. I am not sure of anyone who has done that for sugar, although there are apparently a very few corporations that have purchased the limit that they were entitled to under the law. Senator LIPPITT. Is that amount of land enough land to form an efficient sugar estate-2,500 acres? Gen. MCINTYRE. Not if you were to have a central or factor on the estate; that would not be enough to run a factory; but, of course, if there were convenient factories in the vicinity, that would be quite enough land for a small corporation. Senator LIPPITT. Well, it would not be enough to justify the establishment of a factory with full equipment for making sugar in it? Gen. MCINTYRE. No; it would have to be developed in connection with some neighboring factory, to which factory the cane would have to be sold. Senator LIPPITT. Well, has that fact held back the development of the sugar in the Philippines? Gen. MCINTYRE. That has to some extent; then, of course, the labor is another difficult proposition in the Philippine Islands. Senator LIPPITT. Do you mean the difficulty of obtaining labor? Gen. MCINTYRE. The difficulty of obtaining labor. You see, the labor is fairly well employed, from the tropical standpoint, at present. Senator LIPPITT. What does labor get in the Philippine Islands? Gen. MCINTYRE. Well, the price of labor has gone up very rapidly since the Americans have been in the islands. Senator LIPPITT. What was it to start with? Gen. MCINTYRE. Well, I should say that labor on agricultural lands would be about 20 cents a day with rations. Senator RANSDELL. Now? Gen. MCINTYRE. No; that would have been about what the amount was when the Americans went there. I should say now it would be about three times that. Senator RANSDELL. That would be 60 cents a day? Gen. MCINTYRE. Yes. And men who work around the city-stevedores and men of that class-get considerably more. Senator RANSDELL. Well, that is a great deal higher than the wages paid in China and Java, is it not? Gen. MCINTYRE. Very much. But you see we apply in the Philippine Islands the United States imigration laws, and, while, of course, labor is very cheap in the countries around there where the population is very dense, the Philippine Islands have anything but a dense population, and the labor is fairly well occupied in the present con OMaAweMs AO THEB - P1WP1 ditionss, rand for any great: dVvelopmen there a ma hlia: malte eonosiderable, efort to get the labor. Senator RANSDELL. How do the- wages of th sugr: llberer ^M in C ubia compare with those in the Philippine ISland&s; do you know? Gen. MCINTYRE. I know that in. Cuba they, pay generally a good deals more than that. Senator RANSDELL. I understand they area higher thiere Gen. MCINTYRE. Yes. Senator SAULSBURY. You spoke about: 2,50 acres not being enoughl for a corporation to warrant the construction of a factory. Is there any provision of law which would: prevent the samRne menf from organizing another corporation and in that way acquiring an additional amount of land? Gen. MCINTYRE. Yes, sir; under the present organic act the mani who owns stock in an agricultural corporation can not own, stock in another corporation engaged in agriculture. Senator SAULSBURY. I see. So that it is not possible: under the~ present law to efficiently organize a sugar-making company completely? Gen. MCINTYRE. That is absolutely true at present. The only way at present would be to organize a company; and that has been done on the lands of the old owners from the Spanish times. Now, in Negros, which is one of the principal sugar-growing islands, they sre organizing corporations to build these factories or centrals, but of course they expect to get their cane from the old growers, who have been producing sugar from the Spanish times. Senator LIPPITT. They contract for that, do they? Gen. McINTnRE. Yes, sir. Senator SHAFROTH. The growers are independent of the factory entirely in that event, are they? Gen. MCINTYRE. Yes; although gradually they become more or lessa dependent on the factory, because that is the place they have to go to sell their product. Senator LIPPrIT. Well, of course, if they build the factory they have: to make a number of those contracts? Gen. McINTYRE. Yes; they must do that. Senator LIPPrrT. They must make long-term contracts, so as toguarantee themselves a product for the factory? Gen. MCINTYRE. Yes, sir. I did not fully answer the question of. the Senator about the friar lands, because we got away from it. We spoke of the friar sugar lands, and then we spoke of the San Jose estate. I wanted to add that quite a considerable part of the Calamba estate, another one of the friar lands, has been bought, and that is being used as a sTigar estate. - Senator LIPPITT. It has been bought by the same people, do you mean? Gen. MCINTYRE. No; not by the same people. It was on a different island; it was a somewhat analogous case, although the amount was not so large, and it has not attracted so much attention. Senator SAULSBURY. Who bought that estate of 50,000 acres? Gen. MCINTYRE. It was purchased by three men, Mr. Havemeyer,Mr; Welsh, and Mr. Senff, who has since died. Senator RANSDELL. As a general proposition, when the natives or any others desire to settle on those lands at the rate of 40 acres 3.0 GOVERNMENT OF THE PHILIPPINES. each, how long must they remain in possession of the lands, so as to acquire a title which they can transfer to somebody else? Gen. MCINTYRE. About five years. Senator RANSDELL. SO that you have about the same restrictions that we have in the United States? Gen. MCINTYRE. Yes, sir. That is, for homesteading; of course a man could buy his land outright and get title in that way. Senator SHAWROTH. What do they have to pay for ordinary lands in the Philippines, bought from private parties? Gen. MCINTYRE. The price of land bought from private parties varies a good deal; and good sugar land bought where it could be utilized would be very expensive. The very fact that a man must buy from a limited number of people-that he can not go on the public domain, but is restricted to this class of lands-makes the price quite high. Senator SHAFROTH. Well, outside of sugar lands, are not the lands in the Philippines very cheap? Gen. MCINTYRE. If you want lands in small quantities they are very cheap. Senator LIPPITT. What do you mean by "very cheap " Gen. MCINTYRE. That is, in quantities such as you could get from the Government, you would not have to pay any more-they fix an almost nominal price; almost the same price that the Government fixes as a minimum after surveying the land; it is practically sold to you at option, and you practically have to pay what some one else is willing to offer for the land, and there is no competition. I will see if I can get the exact figures. Senator SHAFROTH. Some one told me that raw land could be bought in the Philippines at from $1 to $3 an acre. Gen. MCINTYRE. That is, that could be bought at that price from the Government; they do not get that much for it. Senator RANSDELL. But you said that the Government would not sell more than 40 acres to one person? Gen. MCINTYRE. Yes; under those restrictions. Now, you take the friar lands, by and large, the parts that have been sold at about the rate of $144 a hectare-that is, 2.4 acres for $144, making it very nearly $60 an acre. But that. of course, included land which had been occupied; it included in a great many places houses, because there were villages on these lands, and in some cases a city of considerable size would be on the land. Senator LIPPITT. Then that is not quite a fair estimate. Gen. MCINTYRE. No; that would be rather expensive. Senator LIPPITT. Take the large cities, like Manila, for instance, there is a good deal of land that is used for agriculture around them? Gen. McINTYRE. In the vicinity? Senator LIPPITT. Yes; in the vicinity, and I suppose the value of land for agricultural purposes depends largely on its position with relation to a market? Gen. MCINTYRE. Yes. Senator LIPPITT. Have you any idea what agricultural land in proximity to Manila, for instance, is worth? Gen. MCINTYRE. If you will permit me, I should like to get that information and furnish it to you. GOVERNMENT OF THE PHILIPPINES. 31 * Senator LIPPITT. I did not know whether you would have it in your mind or not. Gen. MCINTYRE. No; I would have to guess. (The statement referred to is as follows:) The difficulty in giving the prices of agricultural land in the Philippine Islands arises from the fact that transfers by sale are so rare that the price is not even approximately fixed, it being so largely dependent on how much the owner may need money or how much the purchaser may desire a particular piece of land. Good government lands in the Philippine Islands may be purchased at $2 per acre. The matter, however, is complicated by the fact that land which has been lying fallow for a number of years in the Philippine Islands can not be cleared for the first crop at a less cost than $6 per acre, while frequently the cost for clearing for the first crop would not be less than $20 per acre. Taking actual sales of lands near Manila and other cities, under cultivation but without valuable improvements, about $50 per acre would seem to be the average value of first-class lands. The CHAIRMAN. Gen. McIntyre, you stated that about 60,000,000 acres of the public domain still remain? Gen. McIrTYRE. Yes. The CHAIRMAN. Can you tell us about what the amount of government domain was at the beginning of the American occupation? Gen. MCINTYRE. Well, the amount has not greatly diminished; the errors in guessing the total are greater than the amount that has been disposed of; we have disposed of very little. The CHAIRMAN. Is that due largely to the limitations, or to the want of demand? Gen. MCINTYRE. I think it is due largely to the limitations, and to the fact that for a number of years it was difficult to get people who desired the land; that is people who were desirious of owning land; there had never been any difficulty about getting lands in the Philippines. The CHAIRMAN. Does the Philippine Government-the central or insular government-levy any tax on lands? Gen. MCINTYRE. The central government does not, but all the provincial and municipal governments do. The land tax is collected by the provincial treasurer. The CHAIRMAN. It is analogous to our condition, then, where counties and cities and States levy taxes on lands in this country, but the Federal Government does not? Gen. MCINTYRE. Yes, sir; the central government levies no land tax. Senator LIPPITT. I would like to ask you, Gen. McIntyre, where this land that the Government owns is situated? When you say they own this land, do you mean all these great number of uninhabited islands, or do you mean land that is of some use? Gen. MCINTYRE. Well, the land is of some use, but of course you will understand that it is the land which is remaining after selection; you see the people have selected their land, and they have selected it much more with reference to the centers of population than with reference to the value. Senator LIPPITT. I would like to go further back than that. What was this land that our Government acquired as a result of the conquest of the islands; was that land that had never been in individual ownership? Was it simply unappropriated land? OK2) 32 ~~GOV-EUNMtN2 OF; THB PHILIPPUJIS" Gen. McIs:TYn. It wasi the Crown lands of Spai, the public lands which had never been in private ownership. Senator LIPPITT. Crown lands;. did Spain assume to own all of the land in the Philippines at one time? Gen. MCIN TYRE. At one time, yes. Senator LIPPITT. And then Spain gradually gave private title to the lands? Gen.MCINTYRE. Yes; private title. Senator LIPPITT. And what they did not give private title tob be longed to Spain? Gen. MCINTYRE. Yes; it belonged to Spain. Senator LIPPITT. And so the public lands are composed of everything that Spain had not given title to? Gen. McINTYRE. Yes. Senator LIPPITT. And all the land that they had not given title to belonged to the Spanish Government' Gen. MCINTYRE. Yes, sir. Senator LIPPITT. SO that a large part of this public land is of no use and would not be of any use for many years? Gen. MCINTYRE. Yes; that is correct. Senator LIPPITT. Unless the Philippines had an enormous increase in population? Gen. MCINTYRE. Unless they increase very rapidly. Senator LIPPITT. IS there any great quantity of it that is so located that it might naturally be taken up if it was free to. be taken up in the easiest way? Gen. MCINTYRE. I think so. The land which is now occupied and: owned is the land near the centers of population, and it would be simply a question of extending out a little farther. Senator LIPPITT. Yes. Gen. MCINTYRE. But the Philippines, with the exception of one or two islands, are so settled that the land is not what we would call far from a settlement at all in the United States; there is very little of it like that. Senator KENYON. But some of those settlements would not be very desirable to live near, would they? You spoke awhile ago of the non-Christian people-the wild people: Gen. MCINTYRE. Well, I was speaking in this matter with reference to the other parts of the islands; and, of course, the nonChristian people are being developed, so that a good many of the people who have settled on the lands have gone, from choice, near the non-Christian people, with the idea of getting their labor. The wild people now do not make a situation that frightens anybody. Senator KENYON. You spoke of the Christian population and the non-Christian population. What do you mean by that? It is sometimes pretty difficult to tell about that nowadays. Gen. McINTYRE. I used that language as being simply the language of the law. By the Christian population in the islands they mean simply the people that had come within the church in Spanish times. The Moros are Mohammedans, and are excluded from that definition, and then the various pagan tribes are also excluded. Senator KENYON. What is the proportion of Mohammedans and pagans? GOVERNMENT OF THE PHILIPPINES. Gen. MCINTYRE. Including all of the people of the Philippine Islands, they form about one-tenth of the population. Senator LIPPITT. DO yOU mean that would be six or seven hundred thousand? Gen. MCINTYRE. Six or seven hundred thousand. Senator LIPPITT. I saw that Dean C. Worcester estimated in his book that there were a little over a million non-Christians in the islands. Gen. MCINTYRE. Well, I was using the figures of the census of 1903. Senator SHAFROTH. He estimates them as one-eighth of the population. Senator LIPPITT. He estimates them as a little over one-eighth. Senator SHAFROTH. Well, that would be about one-eighth. Gen. MCINTYRE. The census gives the number of Christian people as 6,987,686 and the wild people as 647,740. Senator KENYON. What islands do they inhabit-those people that you cull the " wild people"? Gen. MCINTYRE. They occupy principally Mindanao, the large island of the southern group, and the small islands in that vicinity, and also the central part of Luzon. The CHATRMAN. Have you a map of the islands with you? Gen. MCINTYRE. Yes. I will show where they are [producing map]. They are inhabiting this large island of Mindanao [indicating] and these adjacent islands, now known as the Department of Mindanao and Sulu, and then the mountainous part, right in the center of Luzon. Senator KENTON. Do those different people mingle? Is there anything in common between these wild men and the civilized people? How do they get along together? Gen. MCINTYRE. Well, as to that, conditions have changed a great deal. Whei we went to the Philippines there had been considerable hostility between them. Take, for instance, those wild people in central Luzon; there had been a great deal of hostility between those mountain wild people and the lower plains people; there was trouble between them, arising largely from the advantage which the more advanced people would take of the other in trading, and from the general hostility between them, a good deal such as we have seen in the West, except that there was the marked difference that the Christian people are not racially different from the non-Christian people there. The CHAIRMAN. Do I understand that some of the wild people are located here [indicating on map]? Gen. MCINTYRE. Yes; these are generally called " Moros." The CHAIRMAN. Well, so as to get it into the record correctly, I will say those people in the southern part of the Philippine Archipelago? Gen. MCINTYRE. Yes; those in the southern part of the archipelago; also those in the mountainous part of Luzon. The CHAIRMAN. Those in the northern part? Gen. MCINTYRE. Yes, sir; or the northern central part. The CHAIRMAN. Then these wild people are widely scattered, and not centralized together? 73560-14 —3. 34 GOVERNMENT OF THE PHILIPPINES. Gen. MCINTYRE. With the exception of those two groups, they are not; those two groups are quite compact. And then there are a few wild people in some of the other islands, in the mountains, but those are not numerous. Senator LIPPITT. Take all those islands down here [indicating]; are they mostly uninhabited, or what is their condition? Gen. MCINTYRE. They are mostly inhabited; all those vou see on the map are inhabited; all those that have names. Now, this island of Cebu is the most densely occupied in the archipelago. The CHAIRMAN. What is the chief town in that island? Gen. MCINTYRE. The capital is called Cebu also; and that is the chief town. It is about the second town in business and about the third in population in the Philippines. The CHAIRMAN. About what population? Gen. MCINTYRE. The population of Cebu is about 40,000 and the population of the island of Cebu is between 650,000 and 700,000. Senator RANSDELL. What is the area of the whole Philippine Islands? Gen. MCINTYRE. One hundred and fifteen thousand square miles. Senator KENYON. IS that a pagan island-Cebu? Gen. MCINTYRE. No; it is Christian. It is one of the oldest Christian islands-that is, it is the one that Magellan visited first in going to the Philippines, and it is the one to which the Christian religion first came. Senator LIPPITT. In looking at the map I do not see how he got to it first. Gen. McINTYRE. It seems remarkable, but he was killed on a little island called Mactan, just across the channel. Senator LANE. How do they derive their means of subsistence on that island? Gen. MCINTYRE. On the Island of Cebu they grow quite a considerable amount of corn, and that is being developed; they have a good deal of cattle in the northern part of the island, and they grow also tobacco and some cane, and they have quite a bit of coconut; and then it is the trading center for this vicinity [indicating], so that it is one of the principal shipping points, although very little manila hemp is grown on that island. Senator LIPPITT. You say they grow corn and that is being developed? Gen. MCINTYRE. It is not entirely a new industry, but it is being developed. Senator KENYON. What are they doing to civilize those peopleanything? Gen. MCINTYRE. Oh, yes; for instance, they have in that mountain country, where the people were hostile to strangers, built roads and trails and the people meet at markets to trade; and they have schools, and we are gradually doing everything that we can to bring them into closer touch with the civilization around them. Senator KENYON. In case the Philippines have a government of their own, would there be any antipathy between those people of the south and the people of the north? Gen. MCINTYRE. The people of the extreme south and those of the north? Senator KENYON. Yes. GOVERNMENT OF THE PHILIPPINES. 35 Gen. MCINTYRE. That is a matter about which there is a great difference of opinion. I think, personally, that between the Moros and the other people of the Philippine Islands there would be difficulty. I do not think what we call the other wild people would create any difficulty at all; that is, any serious difficulty. The Moros are perhaps more likely to give trouble, although that, we think, is disappearing. The CHAIRMAN. How many different dialects are there in the Philippines? Gen. MCINTYRE. That, again, is a question depending very largely on how much of a difference you would require to classify language as a distinct dialect. People usually say there are about 17 dialects. Generally speaking, there are about 5 that are quite distinct. But even in those cases, a Filipino —for instance a Tagalog from the vicinity of Manila-could go to the Visayan Islands, where the language is quite distinct from his own, and he could acquire the Visayan language in quite a short time; whereas the average American has a great difficulty in doing so-and I personally think that an educated American has more difficulty than a man who has no education. The CHAIRMAN. Then there would be 17 possible dialects, but only 5 very distinct and marked ones? Gen. MCINTYRE. Well, I will put the exact number in, but I will say that is about correct. (The statement referred to follows:) While, as stated, there is a wide disagreement as to the number of dialects in the Philippine Islands, classing the Visayan as 1 dialect, 93 per cent of the population of the islands speak 1 of the 19 dialects. The principal of these 19 dialects are Ilocano, Pangasinan, TagAlog, Bicol, Visayan, and Sulu. The CHAIRMAN. Well, are those written or printed dialects? Gen. MCINTYRE. All of them written. At present they use our letters. The reduction of some of these to written language, of course, followed the Spanish discovery and occupation of the islands. What we mean now when we say it is a written language is that it is a written language now, rather than prior to the Spanish occupation. Senator KENYON. Did cannibalism exist when we went there? Gen. MCINTYRE. No; there was no cannibalism. The CHAIRMAN. Can you tell the committee to what extent education has been introduced into those islands by the United States? Gen. MCINTYRE. For a number of years we have had between 400,000 and 600,000 children in the public schools. We have, usually, in the islands about 700 American teachers and between 7,000 and 8,000 native teachers, so that in all the centers of population of any size at all we have had public schools and we have had a great many of what are called barrio schools, which reach the outlying districts, though you'can see that we have never been able to have all of the children in the islands taught. Senator RANSDELL. English is being taught, is it? Gen. MCINTYRE. English is being taught. Senator RANSDELL. Are the children rapidly acquiring the English language Gen. McI'TYRE. They are. Senator RANSDELL. They are fine linguists, are they not? 36 GOVERNMENT OF THE PHILIPPINES. Gen. MCINTYRE. They take to it rapidly, yes, sir; and individually they are quite progressive pupils in the schools; they do well generally in school. We have brought a number of them over to this country, and generally they have had no difficulty in keeping up with our school children in the United States. The CHAIRMIAN. That tends to unify the people, does it? Gen. MCINTYRE. It tends to unify them; it assists in making them one people, instead of groups of distinct people, in that we are giving them a common language and giving them roads and, to some extent, railroads and increased transportation so that they can visit each other and get to know each other. The CHAIRMrAN. How is the expense of that education borne? Gen. MCINTYRE. The expense is borne altogether by the Philippine government. That is, the provincial and municipal governments bear some of it, but it is all from the revenues of the islands; there is no outside assistance at all. And in addition to the public schools they have private schools-more particularly with reference to the higher institutions. Senator LANE. Coming back to the land question for a moment, you say the Government has been allowing citizens of that country and others to acquire title to lands for agricultural purposes. What percentage of Filipinos have applied for lands in proportion to the entire number-or do you know? Gen. MCIN-TYRE. If you will permit, I would like to put that in the record. Senator LANE. I wish you would, because I would like to know what per cent of those are Filipinos. (The statement referred to is as follows:) Total applications for use of public agricultural land from July 26, 1904, to June 30, 1913_ --- —---- ---- ---- 19, 313 Total applications for purchase of public agricultural land during same period --- —--------------------------- 892 Total applications for lease of public lands during the same period___ 459 Total number of applications for free patents; that is, for land occupied previously without adjudicated title___ --- —---------- ---- 15, 885 Many of the applications, for one reason or another, were not granted. In the foregoing applications for free patents were made by Filipinos exclusively, as were most of the applications for homestead. Americans are included among the applicants for sales and for leases, but the percentage of Americans applying to purchase lands is almost negligible. In September, 1910, a list of applications for lease was examined with a view of determining the proportion thereof made by Americans or American companies, and it was found to be 27 per cent. The reason for this is that an individual may lease up to 2,500 acres, but can not purchase in excess of 40 acres. Gen. MCINTYRE. Yes. You see the number that have tried to get public lands is very small, and is discouraging. Senator LANE. That is, of Filipinos? Gen MCINTYRE. Yes; but of course the Filipinos owned about 6,000,000 acres of land; they had title to thatSenator RANSDELL. I would like to know something about the timberlands of the Philippines-especially the United States Government lands. Is there much of that? Gen. MCIINTYRE. They estimate in the Bureau of Forestry that they have about 2,400,000,000 board feet in the forests there, and the forest land, of course, covers about one-half of the public lands. GOVERNMENT OF THE PHILIPPINES. 37 Of course a very small part of that is suitable for profitable development. Senator RANSDELL. How does that compare with the timber wealth in Senator Lane's State of Oregon? 2,600,000,000 board feet does not signify very much to me. Oregon is a great timber State; how much is it, as compared with Oregon, do you know? Gen. MCINTYRE. My estimate is that this timber we are considering, being hardwood, makes it more valuable. Senator RANSDELL. More valuable than the timber of Oregon? Gen. MCINTYRE. Yes; if it could be developed. But of course the timber of Oregon can be utilized so much more readily than that in the Philippines. Senator RANSDELL. Yes. Gen. MCINTYRE. You take the timber in the South-the pine lands; where we would have a forest-and every tree would be just like its brother, and there would be a close stand and an even stand, and transportation within easy reach; you could utilize that very readily; but in the Philippines it is a very different matter. In an acre of that land you would have as many varieties as trees that you could use. Senator RANSDELL. And some of those varieties are very valuable? Gen. MCINTYRE. Some of them are very valuable, but the condition described is one of the difficulties and one of the reasons why it does not lend itself to profitable utilization, as do the pinelands, for instance, in the South-those are the ones I am most familiar with-or the timberlands in Oregon. And right now we are buying in the Philippines quite a considerable amount of timber from the Pacific coast, notwithstanding our forests out there. Senator RANSDELL. What are the varieties of timber in the Philippines chiefly? Gen. MCINTYRE. Well, all their names are different from ours; they have what is called Philippine mahogany; and of this they have several varieties; they have narra tindalo, ipel, and calantas; but all of those timbers are different from our United States timber. Senator RANSDELL. But somewhat similar to the mahogany of commerce? Gen. MCINTYRE. Somewhat similar to the mahogany of commerce; yes. Those are the hardwoods. And, then, they have other woods which are much more like the timber of the Pacific coast of the United States. Senator RANSDELL. DO they have walnut? Gen. MCINTYRE. I do not think so, although they have nut trees that are somewhat similar in texture. I have never seen a walnut there. Senator SHAFROTH. Do they permit people to take up any of these forest lands? Gen. MCINTYRE. Under the forest system the utilization of the timber is leased, and the timber is cut under the supervision of the bureau of forestry and so much is paid for the timber utilized. In other words, you can not acquire title to forest lands of the government, but the timber is cut under government supervision, and it is paid for according to the amount which is removed. Senator SHAFROTH. Have you any statistics showing how much timber is cut in the Philippines? 38 GOVERNMENT OF THE PHILIPPINES. Gen. MCINTYRE. Yes; I will put that in the record, if I may, in order to be accurate. (The statement referred to is as follows:) From 1901 to 1913, inclusive, approximately 67,000,000 cubic feet. Senator LIPPITT. I suppose coming under the direction and auspices of the forest service makes it a pretty expensive way of cutting timber? Gen. McINTYRE. I think they would be inclined to be quite liberal in order to encourage the development of the forests. But the difficulties arise from lack of transportation and from the distribution of the growth of trees and the fact that for a great period -of time the thing was done very wastefully. They cut the timber which could be readily transported, and absolutely cleaned those places up, so that the timber which is left is the timber which is somewhat more difficult to get at. Senator LANE. Is it the Filipinos that had this wasteful method of cutting timber? Gen. MCINTYRE. Well, it was under the Spanish Government. Senator LANE. Then that was before our occupation of the islands? Gen. MCINTYRE. Yes; and in a wholesale way, I think it was done by the Spaniards. Senator LIPPITT. We were talking about the number of nonChristian people in the islands a while ago, and you read those statistics. Is the estimate made by Dean C. Worcester generally acceded to as being in considerable measure accurate; or is there any controversy over it in any way? Gen. MCINTYRE. There would be a controversy over it, for this reason, that we were taking the population from the census, which was of necessity not exact with reference to the wild people; it was almost impossible to get it exactly; so that these census numbers were criticized even at the time they were published, although, of course, they were well intentioned-every attempt was made to have them correct. Senator LIPPITT. I understand; they did the best they could. Gen. MCINTYRE. And Mr. Worcester has had direct charge of these wild people practically ever since our occupation, except the Moros; they were under other jurisdiction. So that he gives the number based on his own study and observation of the situation; and a man would have some temerity, or at least he would lack confidence in disputing Mr. Worcester's figures, because Mr. Worcester has had better opportunities of getting this information than others. Senator LIPPITT. In other words, there is a fair presumption, perhaps, that the number of non-Christian or semicivilized or uncivilized people is considerably larger than those census figures indicated? Gen. MCINTYRE. I think quite likely that is true. Senator LIPPITT. Perhaps Mr. Worcester is not far out of the way. Gen. MCINTYRE. I did not intend to raise any question as to that. Senator LIPPITT. No; but we merely wanted to know what the facts probably were. Now, how do the people dress in the Philippine Islands? Are there any considerable number that are practically without clothes? GOVERNMENT OF THE PHILIPPINES. 39 Gen. MCINTYRE. Only among the wild people, and among those the dress varies somewhat with the section and the tribe. The people in the mountains of Luzon-the men wear very little clothing; the women are modest. Senator LIPPITT. The same as the people in the tropical countries of India and Ceylon? Gen. MCINTYRE. Yes; the women are modestly clothed. Senator LIPPITT. What does that mean, "modestly clothed"? Gen. MCINTYRE. I mean they cover those parts which we usually regard the exposure of as immodest. Senator LIPPITT. Do they wear a gown which covers the whole body? Gen. MCINTYRE. Yes; practically the whole body. Senator LIPPITT. Take such people as the Moros; would the women very generally be unclothed, from our standpoint? Gen. MCINTYRE. No; the Moros in general are quite well clothed; that is, differently clothed from us, but quite well clothed. Senator LIPPITT. Take the wilder people there in Luzon, are they generally clothed? Gen. MCINTYRE. No; the men there, except where they wear a coat or a wrap or something for very cold weather, wear aSenator LIPPITT (interposing). Breechclout? Gen. MCINTYRE (continuing). Little more than a gee string. But in the constabulary we have companies composed of these wild people, and they go barelegged and barefooted in the mountains, but they wear coats, and they adapt themselves to the custom of wearing clothing gradually. Senator LIPPITT. Take the children around Manila, are they ordinarily clothed? Gen. MCINTYRE. They ordinarily are. You take Manila: The people there are quite as well clothed as in any of our West Indian Tropics. Senator LIPPITT. In most of our West Indian islands they are not clothed at all. Gen. MCINTYRE. Well, it is somewhat similar in Manila. Senator LIPPITT. It is very common in the West Indian Islands to see the little children not clothed at all. Gen. MCITTYRE. That is about the way it is in the Philippines. Senator LIPPITT. I was wondering if the situation was about the same in the Philippines. Gen. MCINTYRE. A good deal the same. Senator LIPPITT. It is a very common thing in a tropical climate to see children 5 or 6 or 7 years old playing around the streets without anything on at all, and if they have on anything it is very limited. I suppose the conditions are about the same in Manila? Gen. MCINTYRE. Yes; but less so than in smaller places. Senator LIPPITT. In the smaller places that is quite common? Gen. MCINTYRE. Yes; quite common. Senator SHAFROTH. IS it not a fact that in all of the oriental countries the people wear very little clothing? Gen. MCINTYRE. Yes; that is generally true. Senator SHAFROTH. In China, in Hongkong, in Shanghai, and even in Japan, is it not a fact that the people who work on the streets have no clothing on at all except a breech clout? 40 GOVERNMENT OF THE PHILIPPINES. Gen. MCINTYRE. Yes; that is quite true. Senator SHAFROTH. And is it not a fact that the people of the Philippine Islands wear as much clothing, if not more, than the people of the same latitude over in Asia? Gen. MCINTYRE. I think that is decidedly true. Senator LIPPITT. What communication is there between these different islands? Do the people go back and forth at all? Gen. MCINTYRE. They do; between some of the islands the communication is very frequent. Now, there are interisland steamships that go from Manila down to Iloilo, and some to Samar and Senator LIPPITT. Do they go out from Manila? Gen. MCINTYRE. Yes. For instance, there are regular trips from Manila to Panay and Leyte. There is constant travel from Manila to Iloilo, and from that point very frequent travel across to Negros. In fact, those islands are pretty closely connected by steamship lines. Most of the produce taken out from Negros is taken over to Iloilo. Senator LIPPITT. What is the name of that island? Gen. MCINTYRE. Iloilo is the chief port of the Island of Panay. The CHAIRMAN. Are those waters in the archipelago ordinarily quiet, do you know? Gen. MCINTYRE. Ordinarily; yes. Very frequently you can look out and it is a good deal like a lake, except in size and color. Of course, on the other hand, they have quite constant breezes, but the waters are not rough, although on the China Sea, going to Manila, you usually have a rough trip. But in the islands the waters are generally quiet. Senator KENYON. What would be the best time of the year for an American to go there? Gen. MCINTYRE. I have always thought our summer time was the best, for the reason that the climate there at that time is better than. it is in most places in the United States. Senator KENYON. July and August? Gen. MCINTYRE. July and August, except for the rains, would be very good; a little later would be the best time. Their hot months are March, April, and May. The distinction there, of course, is into the wet season and the dry season rather than the hot and the cold season. But March, April, and May are the disagreeable months. Senator KENYON. HOW far do they go down in the boats? Gen. MCINTYRE. To Zamboanga; you can go to Zamboanga in boats. Of course they are not sailboats. And then there are trails across the island. Senator SHAFROTH. What is the development there in railroad building? Gen. MCINTYRE. When we went to the islands the only railroad was this railroad from Manila to Dagupan. The CHATRMAN. How many miles is that? Gen. MCINTYRE. That is 120 miles. Since that time they have built this road [indicating on map], which is approximately 100 miles. The CHAIRMAN. Will you state what road that is? Gen. MCINTYRE. It goes from the city of Cebu south to that point, Argao [indicating], and also to the north to Danao. The CHAIRMAN. How many miles long is it? GOVERNMENT OF THE PHILIPPINES. 41 Gen. MCINTYRE. About 100 miles on the island of Cebu, and the same company has approximately 120 miles on the island of Panay. This line, starting from Iloilo, goes north to Capiz, on the island of Panay. Those roads are owned by the same company, the Philippine Railway. Senator LIPPITT. Are those railroads completed and in full operation? Gen. MCINTYRE. They are completed and in operation. Senator LANE. Are they owned by the Filipinos? Gen. MCINTYRE, No; they are owned by the Philippine Railway Co., which is an American company. They have been built since we have been out there. Senator LIPPITT. Are they profitable? Gen. McINTYRE. No; the last year they earned, in addition to the cost of operation, 1 per cent toward the payment of 4 per cent interest on their bonds. Senator LIPPITT. That is, they are not doing anything for their stockholders and are paying about 1~ per cent on their bonds? Gen. MCINTYRE. Yes; 1.per cent on their bonds, which are 4 per cent bonds. Senator IIPPITT. Does the government guarantee the bonds? Gen. MCINTYRE. Yes; the government guarantees the bonds, and the government has to pay the balance of the interest this year. The CHAIRMAN. The Philippine Government? Senator LIPPITT. No. Gen. MCINTYRE. Yes; the Philippine Government. Senator LIPPITT. Oh, yes. Gen. MCINTYRE. And then on this 120 miles [indicating] we have a road in full operation from Manila, with branches down to a little beyond Lucena, which is the capital of Tayabas Province-that is, this line is in full operation from Manila, with branches to Cavite, Balangas, and other points. The CHAIRMAN. How long is that? Gen. MCINTYRE. I will give you the exact mileage. It is about treble what it was. This is the same road [indicating], and the mileage is now about three times what it was. Senator LIPPITT. Is that owned by the same Philippine Railway Co.? Gen. MCINTYRE. No; this is called the Manila Railroad Co., and they are different people altogether. The old company was English, and practically the people that owned the English road own it now. Senator LIPPITT. Is that profitable now? Gen. McINTYRE. It has always paid interest on its bonds, and also interest on its stock. The CHAIRMAN. So that instead of having 120 miles of railroad there are now over 600 miles of railroad in the island? Gen. MCINTYRE. Yes; over 600 miles of road. Senator LIPPITT. Are they all steam railroads? Gen. MCINTYRE. Yes. Senator SHAFROTH. Is it not a fact that the Filipinos travel on the railroads a great deal? Gen. McINTYRE. They do; and one of the striking facts is that in the Philippines the earnings from the passenger traffic are more than those from the freight traffic. 42 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. Are their freights regulated in anyway? Gen. MCINTYRE. They are regulated. We have a board of public utility commissioners. We formerly had a rate board, but now have a board of public utility commissioners. The CHAIRMANr. Appointed by the Governor General? Gen. McINTYRE. Yes; appointed by the Governor General. The CHAIRMANr. Suppose we come back to section 3 of the bill, if there are no further questions to be asked on this subject. Gen. MCcINTYRE. Section 3 is a bill of rights and is almost identical with section 5 of the present organic act. Senator LIPPITT. May I interrupt you right there? Would it not be a good idea to have a copy of this bill printed, showing in italics the changes from the organic act? The CHAIRMAN. Yes; I think it would be. Senator SHAFROTH. Are the changes very marked between this bill and the organic act? Gen. MCINTYRE. Section 3 you could practically pass over; there is no material change there from section 5 of the organic act. But the difficulty about putting the bill and the organic act in parallel columns is that a good deal is formulated in this bill-which I will come to in a little while-which, while it agrees with the present law, does not agree in form with the organic act; the form is quite distinct. In this section the form is that of section 5 of the organic act. Senator SHAFROTH. Do you not think the print had better be of the present law instead of the organic act? Gen. MCINTYRE. It would be the organic act as amended. Senator SHAFROTH. Well, as amended. Gen. MCINTYRE. We could do that. The CHAIRMAN. You could put the new matter in italics, and put the matter which is omitted from this bill in parenthesis. I notice, however, that there is a new line in this section 3. Gen. MCINTYRE. Yes; in lines 13 and 14, the words " private property shall not be taken for public use without just.compensation " are inserted in this billThe CHAIRMAN (interposing). Let me interrupt you there a moment. Suppose the Supreme Court of the Philippine Islands should decide against a man who claimed that his private property had been taken for public use without just compensation; could he appeal the case to the Supreme Court of the United States? Gen. MCINTYRE. He could appeal to the Supreme Court of the United States; yes, sir. On page 4, lines 13 and 14, the words " nor shall the law of primogeniture ever be in force in the Philippines"; those are new words which do not appear in the present law. The CHAIRMAN. Is there any special reason for inserting that language? Gen. McINTYRE. No, sir. It was done on the floor of the House; it was not suggested from the islands. On page 5, beginning with line 12 and ending with line 20, beginning with the words " and no religious test shall be required," etc.; that is new, not in the present bill. The CHAIRMAN. And also the provision beginning "no public money or property shall ever be appropriated," etc. GOVERNMENT OF THE PHILIPPINES. 43 Gen. MCINTYRE. Yes; that entire paragraph. Senator BRISTOW. You mean in the present law; you said in the present bill. Gen. MCINTYRE. Yes, sir; I mean in the present law. Senator LIPPITT. I understand that that provision, "no public money or property shall ever be appropriated," is all new? Gen. MCINTYRE. That is all new; it was inserted on the floor of the House; Senator LIPPITT. From line 12 down to the provision as to polygamous marriages; that is new also? Gen. MCINTYRE. Yes; that is new also. The CHAIRMAN. That provision that I referred to would prohibit the Legislature of the Philippine Islands,from giving any support to any church or any religion? Gen. MCINTYRE. I take it that that was the intention. The CHAIRMAN. Is there any question there that would seem to require that-is there any controversy? Gen. MCINTYRE. No, sir. I think this was inserted more with reference to some State in the Union. You see, this is a question that has not arisen with reference to the Philippines. It was inserted on the floor of the House on motion. Senator RANSDELL. As you understand this, would it prevent any contribution to a religious or charitable institution-one, for instance, to take care of the aged? Gen. MCINTYRE. It is possible that those words " as such " in line 19 may relate back so as not to prevent that. For instance, in the Philippine Islands there are two or three hospitals which are receiving assistance from the Government in return for service rendered. Senator RANSDELL. It seems to me that as the work of such institutions is purely charitable, that ought not to be prohibited; and yet this would cut them out. Senator LANE. No; the Government could pay them for their hospital work; they would pay them as a hospital, not as St. Marys Hospital, for example; I have seen that worked out. Senator RANSDELL. I would like to see that provision very carefully examined. Gen. MCINTYRE. It was thought that the old provision, from lines 8 to 12, covered the religious question in the Philippine Islands. Senator RANSDELL. I think that ought to be very carefully investigated, Mr. Chairman. It is so very far-reaching the way it is worded now, because there are some charitable institutions that are a wonderful help to the State. Senator LIPPITT. It ought to be gone over very carefully. What else is there that is changed? Gen. MCINTYRE. In section 4 there is no change whatever from existing law, but it has not heretofore been formulated as a statute; and this form is identical with section 12 of the Porto Rican organic law; that is the law just as it is now. Senator KENYON. Section 12? Gen. MCINTYRE. Section 4 of this bill is practically identical with section 12 of the Porto Rico law. Section 5 is a statement of the present law, but it is now stated in the following form as part of section 1 of the organic act: "The 44 GOVERNMENT OF THE PHILIPPINES. provisions of section 1891 of the Revised Statutes of 1878 shall not apply to the Philippine Islands "-and this section 5 simply formulates that, in order that it may be understood. The CHAIRMAN. Gentlemen, the hour of 12 o'clock has arrived, and I think we had better take a recess until 3 o'clock p. m. I have a letter from Dean C. Worcester stating that he would like to appear before the committee, and that he can illustrate his remarks with lantern slides to show the conditions in the islands before and after the American occupation. Senator KENYON. That will be very interesting. (Thereupon, at 12 o'clock noon, the committee took a recess until 3 o'clock p. m.) AFTER RECESS. The committee reassembled at the expiration of the recess. The CHAIRMAN. Gen. McIntyre, can you give us any explanation of the fact, to which Senator Reed called attention just before we assembled this afternoon, that the bill of rights, as contained in section 3 of the bill H. R. 18459, differs in language from the bill of rights as contained in the United States and the State constitutions? Gen. MCINTYRE. The only explanation which I could submit would perhaps not be satisfactory. It is this: That the old bill of rights in the organic act of 1902 was doubtless used as the basis; this section 3 of the bill differs from section 5 of the existing law only in two or three minor respects, which I pointed out in passing over the bill; this is copied from the bill of rights which is now in effect in the Philippine Islands. Senator SHAFROTH. I presume when independence is given to the Philippines this would be abrogated, anyhow? Gen. MCINTYRE. Oh, yes. Senator SHAFROTH. And then they will form their own constitution, making such provisions in their bill of rights as they deem proper. The CHAIRMAN. Well, how about trials by jury? Gen. MCINTYRE. Their system does not call for trial by jury. Senator REED. They have the old Spanish law there, as much as it exists anywhere, have they not? Gen. MCINTYRE. Yes; the old Spanish law based on the Roman civil law. And under those codes which they had in use there was no jury, and even where they have suggested and to some extent applied a somewhat similar practice it was always different from our jury system. It consisted principally of having, to sit with the judge, two " assessors," or two lay judges, as to the facts of the case; but it was a very different proposition from what we understand by trial by jury. Senator KENYON. Do they have capital punishment in the Philippines? Gen. MCINTYRE. They have capital punishment. Senator KENYON. By the judges? Gen. MCINTYRE. By the judges; yes. With reference to capital punishment in the Philippines, the jury system has not been extended to the islands, and all criminal cases are heard and determined by the judges alone. However, the code of criminal procedure in force in the islands, being paragraph 50 of General Order No. 58 of the military GOVERNMENT OF THE PHILIPPINES. 45 governor, as modified by section 4 of act No. 194 of the Philippine Commission (Comp. Phil. Acts, sec. 3305), provides: " * * * The record of all cases in which the death penalty shall have been Imposed by any court of first instance, whether the defendant shall have appealed or not, and of all cases in which appeals shall have been taken, shall be forwarded to the supreme court for investigation and judgment as law and justice shall dictate." The records in such cases must be forwarded to the supreme court within 20 days, but not earlier than 15 days, after rendition of sentence. The CHAIRMAN. But in the main, this bill of rights is about the same as was incorporated in the organic act? Gen. MCINTYRE. Yes, sir; the organic act which is now in force. In fact, there are but two or three little changes; those which I have enumerated here to-day. The CHAIRMAN. Well, then we come to section 5 which provides that the statutory laws of the United States hereafter enacted shall not apply to the Philippine Islands except when they specifically so provide, or it is so provided in this act?' Gen. MCINTYRE. That is in the present law, but in section 1 of the present law it is stated briefly as follows: The provisions of section 1891 of the Revised Statutes of 1878 shall not apply to the Philippine Islands. That is the section of the Revised Statutes which provides that statutory laws of Congress shall extend to all the territory of the United States, and the Philippine Islands are thus exempted in the original organic act; so that this is simply a formulation of that. The CHAIRMAN. SO that only those laws enacted by Congress apply to the Philippines which are made specifically applicable to those islands? Gen. McINTYRE. Yes; that is correct. The CHAIRMAN. Then we will pass to section 6 of the bill. Gen. MCINTYRE. Section 6 is a formulation of the present law as contained in the present organic act, but which was not put in that form, and this form is identical with section 8 of the organic act of Porto Rico-this section 6. In section 7 the first paragraph is identical with section 15 of the organic act of Porto Rico; and identical power was granted to the Philippine Legislature originally, but it was not formulated in the organic act. The CHAIRMAN. Then, the next paragraph seems to be new. Gen. MCINTYRE. The next paragraph is by way of construction in part of the general act and is new. The CHAIRMAN. Now, what does that provide, in line 9, page 7? Gen. MCINTYRE. The theory was apparently that it was necessary to state, lest there be some misunderstanding, that the law should be extended to the tariff, with limitations, and to the laws affecting revenue and taxation generally. It would perhaps be included, anyhow, even if that were omitted. Senator REED. This is intended to give that legislature the right to enact a tariff law of their own, disregarding any laws which we may pass; is that the purpose? Gen. MCINTYRE. Any law which you have passed, Senator Reed; this authorizes them to amend or alter, and the subsequent sections limit that to this extent, that any tariff act which they pass must be approved by the President of the United States before it becomes 46 GOVERNMENT OF THE PHILIPPINES. effective, and they can not pass a tariff act which will affect the trade between the United States and the Philippine Islands; that is subject to the exclusive jurisdiction of Congress. Senator REED. In what paragraph? Gen. MCINTYRE. That comes in section 10, on page 9 of the bill. Senator REED. Well, it seems to me that those two sections are in conflict. I will read them, Mr. Chairman: SEC. 7. That the legislative authorityThat means the Philippine Legislatureherein provided shall have power, when not inconsistent with this act, by due enactment to amnend, alter, modify, or repeal any law, civil or criminal, continued in force by this act as it may from time to time see fit. Now, that, of course, means all laws which have been heretofore enacted. Gen. MCINTYRE. Yes, sir. Senator REED. Now, we come to the limitations: This power shall specifically extend with the limitation herein provided as to the tariff to all laws relating to revenue and taxation in effect in the Philippines. Well, I see that reads somewhat differently from the way I thought. It depends on punctuation; as I read it at first, I read it, "This power shall specifically extend with the limitation herein provided as to tariff." Gen. MCINTYRE. I see. Senator REED. " To all laws relating to revenue and taxation affecting the Philippines "; and I thought those provisions would conflict. It would be much plainer if you would say: "With the limitations provided in section 10." Senator KENYON. Should there not be a comma after the word "extend" in line 9, and after the word "tariff" in line 10? That would make it plainer. Senator REED. Now, section 10 providesthat while this act provides that the Philippine tovernment shall have the authority to enact a tariff law, the trade relations between the islands and the United States shall continue to be governed exclusively by laws of the Congress of the United States. The purpose of that, of course, is plain enough, and I suppose the language can be understood. I read it hurriedly the first time, and I thought those two provisions were in conflict; I do not believe now that they are. The CHAIRMAN. It is expressed in a rather clumsy way. Senator REED. I would suggest as an amendment in section 7, instead of the words "herein provided," the words "provided in section 10 of this act," unless there is some other section covering the same subject; and then it would provide, "this power shall specifically extend, with the limitation provided in section 10," as to the tariff, etc. Senator KENYON. Are there any other sections where the tariff is referred to generally? Gen. MCINTYRE. No, sir; that would close that matter. Senator KENYON. It should read, "herein provided in section 10." Senator REED. And then we could strike out the words "as to tariff." GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. We will make a note of that, and then go on to the next section, section 8. I want to ask you, Gen. McIntyre, about immigration. Does that include immigration laws? Does Congress now have jurisdiction over immigration? Gen. MCINTYRE. It probably would, Mr. Chairman. As this bill was originally reported to the House, I think, or at least in one of its previous forms, the second paragraph of section 7 included the words at the end, "to immigration in the Philippine Islands," and those words were stricken out in the House. Whether this striking out would simply have the effect of removing the specific reference thereto, or would have the effect of not permitting the Philippine Legislature to legislate with reference to that matter is in question. The CHAIRMAN. As it is now, the Chinese immigration is excluded? Gen. MCINTYRE. Yes; Chinese immigration is excluded. The CHAIRMAN. Is Japanese immigration to the islands excluded? Gen. MCINTYRE. No; that is, it is not excluded. The CHAIRMAN. No; it is not excluded provided they come within certain conditions. Gen. MCINTYRE. That is correct. We have the United States immigration laws exactly. Senator KEYON. That provision was stricken out in the committee of the House, as it was in the original bill. I wonder why that was? Gen. MCINTYRE. My understanding was that Judge Towner, of your State, Senator Kenyon, recommended that it be stricken out, on the ground that that is a national question rather than a question for the Philippine Islands alone, and I do not think the matter was discussed; I think that had that effect. The CHAIRMAN. Section 8 of this bill is general, is it not? Gen. MCINTYRE. Section 8 is new in form, because in the original organic act the powers of the legislature were not formulated. Senator REED. Well, I am interested in that question of immigration. I do not see where it is specifically covered thus far. In section 2, in the proviso, it reads: That the Philippine Legislature, herein provided for, is hereby authorized to provide by law for the acquisition of Philippine citizenship by those natives of the Philippine Islands who do not come within the foregoing provsions, the natives of the insular possessions of the United States, and such other persons residing in the Philippine Islands who are citizens of the United States, or who could become citizens of the United States under the laws of the United States if residing therein. Now, that does not put any limitation upon their right to go further; at least it is not clear. And my own judgment is that as long as we have any responsibility in these islands we ought to regard the question of immigration and citizenship pretty carefully. The CHAIRMAN. Well, we will make a note of that, then, and go on to the next section. Senator SHAFROTH. There is a great antipathy between the Filipinos and Chinese; and it is more marked, and decidedly io, than is the case between any others of the oriental people. A great many Chinese live in the Philippines; and the past history of the country shows that there has been an intention, at some times, to subjugate the Philippines. 48 GOVERNMENT OF THE PHILIPPINES. Senator REED. WVell, I had this in mind in what I said-I use this purely as an illustration; but let us assume that the granting of complete independence to the Philippines should not occur for some years; we can not tell when it will come; so far as I am concerned, I would be quite willing to grant it to-morrow. Senator SHAFROTH. So would I. Senator REED. But it is not the purpose of this bill to grant it. And the next election that we have may reverse these policies-at least some of us believe that may be the case. Accordingly, this bill which we are enacting might remain a law for many years; long periods of time might intervene. Now, suppose that Japan, for instance, was to conclude that it wanted to lay the foundation for some difficulties with the United States; that country is not far distant from the Philippines. Suppose it should begin to assist the colonization, either under national patronage, or without that being apparent on the face of it, the purpose being to fill these islands with a large number of citizens of Japan, and possibly with the veterans of their armies. It might be a very necessary thing that this Government, being charged with the responsibility of the welfare of those islands, and also, of course, the responsibility for the preservation of the integrity of any possession of ours, should have the right at all times to prohibit that sort of movement. Now, I am using Japan purely to illustrate and not to single that particular country out; the same illustration might be used with reference to any other nation. So I think, Mr. Chairman, that before we let this bill pass from us that question ought to be carefully considered by the committee. The CHIAIRMAN. I will say for the information of Senator Reed that we are not considering this bill para graph by paragraph now. but only giving Gen. McIntyre an opportunity to present his suggestions. But I will make a note here of your suggestion, Senator Reed, to be especially considered when we come to that point. Will you take up section 9 of the bill, Gen. McIntyre? Gen. MCINTYRE. Section 9 of this bill is section 12 of the Philip. pine organic act as at present, with slight modification. It has in addition a clause giving the Philippine Government control of the lands which were purchased under the old organic act from the religious orders in the Philippine Islands. That is, the language from line 21, page 7, to line 2, page 8, is inserted for that purpose. Senator REED. May I ask if this is intended to cover the landsthat we acquired by purchase from the church? Gen. MCINTYRE. This includes the entire public domain, and they have inserted in the bill that specific clause with reference to those lands, so that those lands are placed entirely under the control of the Philippine Government. As a matter of fact, it really does not change the law at all, because that is the law now. Senator REED. Well, is there any limitation in this bill such as in our law with reference to those lands being acquired in large volume by corporations, for example? Gen. McINxmRE. This bill does not touch that question at all; it continues in force the present restrictions, but it does grant to the Philippine Legislature the power to alter or amend those limitations. GOVERNMENT OF THE PHILIPPINES. 49 Senator REED. Yes. So that if I understand you correctly, this bill, as it stands, amounts to this, that whereas we have spent a large amount of money to acquire these lands and have at least retained a control of them to the extent of providing that not more than a certain amount in acreage shall go to any one individual or any one corporation, while we preserve those limitations in this bill, we give to the Philippine Legislature the right, if they see fit to do so, to wipe them all out, and accordingly the Philippine Legislature might do that to-morrow, or as soon as this bill is enacted? Gen. McINTYRE. Yes, sir. Senator REED. It might repeal those provisions and grant these lands, all, if it saw fit, to one corporation? Gen. MCINTYRE. Well, if you will permit me-there may be a misunderstanding-these lands were purchased with the funds of the Philippine Government, and Congress has never imposed any limitations with regard to the friar lands; and the only limitations which were placed upon the amount of land which could be sold to any person or corporation were placed by the Philippine Legislature. Senator REED. They were placed by the Philippine Legislature? Gen. MCINTYRE. Yes; as to friar lands; as distinguished from the public domain. Senator REED. Yes; I understand. Gen. MCINTYRE. Now, the amount of public domain which can be sold to one individual or corporation was very closely restricted in the organic act. Senator REED. Well, will this bill change that? Gen. MCINTYRE. This continues that in effect, but does give the Philippine Legislature authority to alter or amend that. Senator KENYON. With a veto power in the Governor General and a veto power in the President of the United States? Gen. MCINTYRE. Yes; with a veto power. And furthermore, there is a provision later in the bill which specifically provides that no law shall ever be passed in the Philippine Islands with reference to lands or mines or timber without the specific approval of the President; that is, in addition to the veto power of the governor general and of the President acts of that kind must be specifically approved by the President. Senator RANSDELL. That is specifically provided in this section 9 also, where it says: But acts of the Philippine Legislature with reference to land, timber, and mining, hereafter enacted, shall not have force of law until approved by the President of the United States. Gen. MCINTYRE. Yes; the act must be approved here in Washington. Senator WEEKS. I do not understand why that limit of six months is inserted there. Suppose the Philippine Legislature made an act effective on its passage? Senator SHAFROTH. It would take some little time to get the act here. Senator WEEKS. It would only take about two months. Senator SHAFROTIrI. That is true. 73560-14 —4 50 GOVERNMENT OF THE PHILIPPINES. Senator WEEKS. And I do not see why the President should have any more time to determine what to do than in the case of an act of Congress. Senator SHAFROTH. Well, he might be busy when the act reaches here, and then he might want to communicate several times with the Philippines. Senator WEEKS. He can not be so busy that it would take him several months to determine whether he wanted to sign or not. Senator SHAFROTH. Well, he might want additional information; he might want to call for several reports from the Philippines. Six months is net too long a time in that case. Senator WLEKrS. Well, if he wanted to call for reports he could use the cables. Senator SHAFROTH. I do not think six months is too long a time. Senator WEEKS. I think it is too long a time-an unreasonable time. Why was that provision put in? Gen. MCINTYRE. That was put in in the House; there was originally no time named; it was presumed that the President would dispose of the Philippine acts in the natural order of business; and this provision was inserted, really, so as to put a limit on it, for fear that it might be dragged along indefinitely; I think that was the intention. I know it was done in the House. Senator SHAFROTH. It was intended, then, as a limitation of time rather than an extension of time? Gen. MCINTYRE. It was so explained, because there was no limit originally. Senator SHAFROTH. Well, I believe that six months is not too long a time for the President to get proper information concerning bills of that nature. Senator KENYON. How long does it take the mails to come from the Philippines? Senator SHAFROTH. I think about four weeks. I was 28 days on the ocean coming back. Gen. MCINTYRE. From Washington it takes a little longer than that; you have to count on various causes of delay. Mails do frequently come in a month from Manila, but as a rule you have to count on about six weeks. Senator SHAFROTH. Yes; because the steamships do not leave every day. Gen. MCINTYRE. Yes. The CHAIRMAN. All this part of section 9 of the bill is new matter, is it not? That is, the present legislature of the Philippine Islands can not pass on these subjects? Gen. MCINTYRE. Yes; it could as to the friar lands, but not as to the other subjects. It could under the terms of this act, giving the Philippine Legislature full power, with the restrictions set forth in the bill. The CHAIRMAN. With the approval of the President? Gen. MCINTYRE. Yes. Senator WEEKS. Has there been any criticism of that provision? Gen. MCINTYRE. I think not; I think it is very generally approved and one of the reasons is this: For 10 successive years, I think it is, the Philippine Government made certain recommendations with reference to the land laws, and to be effective they had to be acted GOVERNMENT OF THE PHILIPPINES. 51 ton by Congress, and it is not a matter that was of sufficient importance to take the time of Congress apparently; so that nothing wvas ever done. And this, notwithstanding the fact that when it investigated the land laws of the Philippine Islands-the lower house made an investigation-it also recommended certain changes which were never made. Senator WEEKS. Do you think that under this law one man could go to the Philippines and purchase all of those friar lands, obtaining the passage of an act of the Philippine Legislature for that purpose, and that it would become effective if the President did not veto it? Gen. MCINTYRE. Under this law? Senator WVEEKS. Yes. Gen. MCINTYRE. It would become effective if the President did not veto it. Senator KENYON. That is what the bill says. You see, if he does not specifically disapprove it, it becomes a law. Senator SHAFROTH. Inasmuch as they imposed the restrictions themselves, it seems to be a violent assumption that they would ever permit that to be done. Senator WEEKS. Well, there has been an enormous amount of that sort of thing done in all newer countries; and perhaps the President's veto will be sufficient to protect that; but I have a feeling that there should be in the law some limitation of the amount of land which one corporation or one individual should control under such circumstances. Senator REED. I agree with you about that, Senator Weeks. Now, nothing that I say here must be taken as an expression of any disrespect for the Filipino people, but it is in line with what the Senator said about newer countries. We had an example of that in our country. We granted in this country vast public domains to railroads; we would not do it again under the same conditions. And Mexico furnishes another good example. I understand that there are several individuals in Mexico who have acquired lands largely, I think, under grants from the Government, one or two of them having a territory, I understand, as large as the State of Missouri. Senator WEEKS. Well, that is the basis for all the trouble in Mexica, as a matter of fact. Senator REED. Exactly. Senator WEEKS. That the landed interests of Mexico are in comparatively few hands, and, in effect, it makes the rest of the people poverty stricken. Senator REED. In the early days of this country the Crown granted tracts of land which were so large as to stagger the imagination. The CHAIRMAN. I will make a note, then, on this paragraph that there should be some limitation on the power of the legislature in that respect. Senator WEEKS. Well, yes; I think that ought to be discussed by the committee, Mr. Chairman. The CHAIRMAN. Some limitation on legislative powerSenator REED. With reference to land. The CHAIRMAN. I want to ask you, Gen. McIntyre, under this section as it stands now, could the Philippine Legislature make a land 52 GOVERNMENT OF THE PHILIPPINES. grant as a subsidy, for instance, for the construction of a railroad to a private corporation? Gen. MCINTYRE. Subject to the approval of the President, I think it could. The CHAIRMAN. It could? Gen. MCISTYRE. Yes. I will say, in passing, that the grant of authority here in the bill is identical with the grant which was made in Porto Rico, even as to form. But, of course, all the facts were different, because in Porto Rico there was a very limited amount of public land. Under that provision the Porto Rico Legislature has provided that no public land can be sold; it has to be leased for a certain period. So that shows how one legislature has handled a gift of power identical with this. The CHAIRMAN. Section 10 of the bill you have already referred to in part? Senator WEEKS. That same limitation of six months which I have referred to for the President to sign Philippine acts, which was in section 9 of the bill, is also in section 10? Gen. MCINTYRE. Yes, sir. Senator WEEKS. But the provision in section 10 relates exclusively to the tariff. And certainly it ought not to require six months for a tariff law to become effective; it might be very desirable that the new tariff should go into effect without delay. I should think three months would be ample time. The CHAIRMAN. That is a subject which can be taken up when we reach that paragraph for consideration. Will you explain section 11, Gen. McIntyre? Gen. MCINTYRE. Section 11 is practically a statement of the existing law, down to the proviso that the entire indebtedness of the Philippine government shall not exceed at any one time the sum of $10,000,000 exclusive of the friar-land bonds. At present, the limitation is $5,000,000; and that is an increase of authority of $5,000,000. Senator WEEKS. Does not the United States guarantee those friarland bonds? Gen. M.cNTYRE. No, sir; they are Philippine government bonds. Senator WEEKS. And there is no United States guaranty of them? Gen. MCINTYRE. No, sir; there is no United States guaranty. Senator SHAFROTH. Does the Philippine government now impose any duty on exports from the islands? Gen. MCINTYRE. It does not now. The Underwood Tariff Act repealed that provision. Senator SHAFROTH. They used to get a large part of their revenues from export taxes, did they not? Gen. MCINTYRE. Yes; they had a large revenue from the export tax on hemp; and there was also an export tax on copra, sugar, and practically on all of their products. The CHAIRMAN. What is the objection to export taxes? Gen. MCINTYRE. Well, we have prohibited export taxes here. The theory, of course, is very much the same as here. With the exception of hemp all of the products of the Philippine Islands enter the markets of the world on a competitive basis; and while hemp is a monopoly, it really competes with sisal and other fibers of a somewhat lower grade; it is continually on the edge of that competition. GOVERNMENT OF THE PHILIPPINES. 53 - Senator WEEKS. Even in the United States? Gen. MCINTYRE. Even in the United States; yes. We use the manila hemp in this country only for those purposes for which these cheaper fibers can not be substituted. We use it for first-class naval rope, or rope that is used in the water a great deal. Senator WEEKS. It is the best hemp in the world. Gen. MCINTYRE. Yes. The CHAIRMAN. This section 11 gives the Philippine Legislature power to levy taxes on real estate? Gen. MCINTYRE. That is a very general grant of power of taxation. It does include real estate, inheritances, incomes, and practically every tax that can be imposed in the States. The CHAIRMAN. But up to this time they have levied no tax on real estate? Gen. MCINTYRE. Yes; they have a tax on real estate, but the proceeds of the tax go to the Provinces and municipalities and not to the central government. The CHAIRMAN. Then under the present system the Provinces and municipalities have no power of their own with reference to real estate taxes? Gen. MCINTYRE. Yes; they have been granted the power to tax real estate within certain limits. The provincial board may determine within certain limits what taxes shall be imposed on real estate. That is one of the powers of the provincial board; they fix that; and they have the power, in case the conditions of weather or other conditions make it desirable, to suspend for a period the land tax, as, for instance, where crops are bad in the Province or for other reasons, the provincial board may do that. The CHAIRMAN. I do not believe I understand. Has the Philippine Legislature the power at the present time to levy taxes on real estate? Gen. MCINTYRE. Yes; but it has done so only for the benefit of the municipalities and Provinces. The CHAIRMAN. But have the municipalities and Provinces at present the power of levying taxes on real estate? Gen. MCINTYRE. Within certain limits they may do so, the limit being fixed by the legislature. The CHAIRMAN. The Provinces and municipalities then get their power to do so from the legislature? Gen MCINTYRE. Yes; from the legislature as to that tax. Senator W7EEKS. Why was that limitation of 7 per cent of the assessed value of real estate fixed? Gen. MCINTYRE. That was the limit imposed by the organic act of Porto Rico; and it was taken as being about the limit which they would authorize. Senator WEEKS. Is that not rather higher than is usually allowed in our communities? Gen. MCINTYRE. I think not, Senator Weeks. The present law authorizes an indebtedness of 5 per cent for municipalities in the Philippine Islands. Senator WEEKS. That is what I had in mind, that 5 per cent was tbout the usual limitation that we require in this country. The CHAIRMAN. In the latter part of section 11 of the bill, the limit of the entire indebtedness of the Philippine Government, ex 54 GOVERNMENT OF THE PHILIPPINES. elusive of the friar-land bonds, is fixed at $10,000,000; the present limit is $5,000,000, is it not? Gen. MCINTYRE. Yes. The CHAIRMAN. Do you think it is necessary to extend that limitto $10,000,000? Gen. MCINTYRE. I really think that the $10,000,000 limit would be safe; the War Department recommends a modification of that proviso, but I thought I would give you those recommendations afterwards. The CHAIRMAN. All right. Gen. McINTYRE. We recommend that that be made more liberal, and also that it be modified in certain respects. Senator SHAFROTH. Do they recommend that it be more than $10,000,000? Gen. McINTYRE. We recommend more than $10,000,000. Senator SHAFROTH. How much more? Gen. MCINTYRE. At least, as a minimum, we recommend the limit be made $17,000,000, and that all reference to the friar-land bonds be stricken out, so that when the obligation of those bonds is paidwhen that $7,000,000 is paid-the Government will have authority to increase their indebtedness by a corresponding amount. Senator KIEN'YON. What is the amount of the friar lands bonds$7,000,000? Gen. MclNTYRE. $7,000,000. Senator SHAFROTH. What would you do with this additional $12,000,000 which you suggest? Gen. MCINTYRE. It is intended practically altogether for public works of various kinds, and development. Senator SHAFROTH. Is there any program laid out for anything of the kind? Gen. MCINTYRE. Yes, sir; the Philippine government has the program laid out which includes the use of practically all of that. Senator SHAFROTH. Is any of it proposed to be used in the construction of railroads? Gen. MCINTYRE. No; this is not for any railroad construction at all. Senator KENYON. What does it cover? Gen. MCINTYRE. They have used the other money, and this money would be used, for the construction of roads and bridges, public buildings, harbor improvements, and things of that kind; some will be used for school buildings; it will be used for all classes of public buildings. Senator LANE. Well, would the expenditures that you have suggested require 7 per cent of the aggregate tax valuation of the lands? Gen. MCINTYRE. No; it would not reach that limit. Senator LANE. What would it reach-have you any idea? Gen. MCINTYRE. No; I can get the taxable value. This amount would be rather a small percentage of the total taxable values throughout the islands. Senator LANE. Well, I see that they are allowed in section 11 to contract an indebtedness amounting to 7 per cent of the aggregate tax valuation, so I assume it would require 7 per cent. Gen. MCINTYRE. That is, that the municipalities and Provinces are limited to 7 per cent; and the central government is limited to this total that is specified in this section. GOVERNMENT OF THE- PHILIPPINES. 55 Senator LANE. Well, that 7 per cent is pretty high; it is too high a tax to put on any community to pay interest on the cost of improvements. The CHAIRMAN. In the case of a municipality or Province going into debt to the extent of 7 per cent of its assessed valuation, how does it do it, and who approves it? Gen. MCINTYRE. Well, heretofore, in nearly all cases, it has been done by a loan from the central government. The central government will loan the Province or the municipality a certain amount, repayable under certain terms included in the loan. So those evidences of debt have not reached the public; they have not been sold in any way, with the exception of those of the city of Manila and the city of Cebu. The city of Iloilo sold some bonds, but they were purchased by the central government. The CHAIRMAN. I was not asking who purchased them in the market, but what authority approved them. For instance, in Manila, what authority provides for the issuance of bonds and going into debt; is it submitted to a vote? -Gen. MCINTYRE. No; that is done by the legislature; it is not referred to the people for popular vote. The CHAIRMAN. That is, the legislature authorizes the city of Manila to borrow money? Gen. MCINTYRE. Yes. The CHAIRMAN. But who in the city of Manila decides that that right shall be exercised? Gen. MCINTYRE. The municipal council. The CHAIRMAN. They have the power to do so? Gen. MCINTYRE. They would ask for the authority, and the authority would be granted; but under existing law no indebtedness can be incurred without the approval of the President of the United States. And the recommendation of the War Department is that this limitation should be included in any future grant of this authority. And furthermore, under existing law, these bonds are not taxable in the United States; and the department recommends that that be continued in the law for the reason that, under court decisions they are not taxable, but it is difficult for the Government to sell a bond and guarantee it as nontaxable for fear that a new decision might be made; whereas the broker who buys the bond from the Government sells it on the basis of the court's decision. The CHAIRMAN. Do you mean that a man buying a Philippine bond now is not required to pay taxes on it? Gen. MCINTYRE. No tax on it. The CHAIRMAN. And in this bill it is provided that in the future a man owning Philippine bonds shall not pay taxes on them? Gen. MCINTYRE. We suggest that; it is not in the bill at present. Senator SHAFROTH. I understand that a very fine hotel has been erected in Manila by the government? Gen. MCINTYRE. No; that was bu built by a private corporation; but the Philippine government, in order to encourage them, purchased some of the bonds of that hotel, which bonds they now hold. The CHAIRMAN. As a part of the sinking fund? Gen. MCINTYRE. As a part of the sinking fund; yes. 56 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. Can you tell us what the sinking fund amounts to-that is, the sinking fund providing for the redemption of $7,000,000 of friar-land bonds? Gen. MCINTYRE. Yes, sir. At the date of the last report the amount in the sinking fund for the friar-land bonds was P3,740,724; that was the 31st of last December. Of that amount, P1,467,424 was in the form of provincial and municipal loans and P900,000 was invested in the bonds of the Manila Hotel. Senator REED. How much is a peso? Gen. MCINTYRE. Fifty cents gold; just one-half of our dollar. Eighty thousand pesos was invested in the public-works bonds of the Philippine government-that is, the 4 per cent bonds issued under the authority of the acts of Congress-and P1,293,000 was in the first-mortgage bonds of the Philippine Railway Co. Now, as to the public-works bonds, of which there have been a total of $5,000,000 issued-the sinking fund on the same date was P1,552,000. They were invested as follows: P581,000 in provincial and municipal loans, P410,000 in friar-land bonds, P104,000 in public-works bonds, and P457,000 in the bonds of the Philippine Railway Co. The balance of each sinking fund was in cash. The CHAIRMAN.. Well, Gen. McIntyre, that is rather a peculiar thing, that the sinking fund for the friar-land bonds is invested in outside securities, while the sinking fund of these regular publicimprovement bonds is invested in friar-land bonds. Gen. MCINTYRE. Yes, sir. The CHAIRMAN. Would it not be better practice to retire the friar-land bonds from the sinking fund? Gen. McINTYRE. If they were going to retire them, it perhaps would. But I think there is a difficulty about that issue of friarland bonds that has occurred to me as perhaips deterring them from investing their sinking fund in those bonds. and that is that those bonds have always been slightly above par on the market, although perhaps that would not now be the case, and in 1914 we could have called all of the bonds if we had been in a position to do so; but we were not in a position to do so, and the question would then be whether we would go on the market and buy them. or whether we would call a small part, a fractional part, which we were in a position to call, to the detriment really of the people who happened to hold those particular bonds, and so it was decided not to make a call for any of the bonds. This was a matter determined by the Philippine Commission. Senator SHAFROTH. Do those friar-land bonds represent the purchase price paid for the land? Gen. MCINTY-RE. Yes. Senator SHAFROT-. How much does that amount to? Gen. MCINTYnE. The bond issue was $7,000,000; the land cost something less than that. The product of the sale was a little more than enough to buy the land. Senator SHAFROTH. Do you remember how many acres there were in the friar lands? Gen. MCINTYRE. They usually call it 400,000 acres. Senator SHAFROTH. That was about $17 an acre, was it? GOVERNMENT OF THE PHILIPPINES. 57 Gen. MCINTYRE. Yes. Senator WEEKS. I would like to ask you, Gen. McIntyre, if you do not think the kindest thing we could do for the Filipino people would be to prevent their incurring any indebtedness Senator SHAFROTH. Not in a new country. Gen. MCINTYRE. Well, we could not have done what we have done there without incurring indebtedness. The proceeds of those bonds have helped wonderfully. Even as it is we have expended 20 per cent of all the revenues in public works. Most of the public works are more or less of a permanent nature, and to put them forward rapidly would require that the taxes be made altogether too heavy. Senator WEEKS. We pay for our public works in this country as we go along. The curse of this whole world is running into debt, and we are going to have serious trouble from that in this countryand everywhere else. Senator KENYON. Yes; private as well as public. Senator WEEiKS. I was speaking of public debts. Senator SHAFROTH. There are very few roads in those islands, except what have been put in in the last few years; most of the others are merely paths; and it seems to me that it would be greatly to the interest of those people to permit them to build roads and bridges. Senator WEEKS. Well, I am willing to consider that question; but I am disinclined to make it easy for people to incur indebtedness anywhere. The CHAIRMAN. What would you think of a limitation, Senator Weeks. to provide that no bonds should be issued except for public works? Senator WEEKS. Well, I think it is somewhat dangerous to authorize an issue of bonds for general public works without having a definite schedule of what is going to be done and what it is going to cost, and all that sort of thing. We would not do that in our own municipal affairs. If bonds are to be issued they would be issued for a specific purpose, and the cost of that project would be carefully determined. Now, to give to a board of aldermen of any American city, for instance, authority to issue $5,000,000 of bonds and tell them to go on and spend them for putblic works would almost inevitably result in great waste. Senator KENYON. And graft. Gen. MCINTYRE. If I may say it, Senator Weeks, this is the grant of power. Before these bonds are issued an act is passed by the legislature which prescribes the object of the issue and the specific purpose for which it is to be used. Now, we have issued bonds over there, in the first place, for the friar lands. That required, first, an act of Congress, an act of the Philippine legislature, and'the specific approval by the President of that act before the bonds were issued. Before the city of Manila issued bonds for sewers and waterworks the specific project w:as mapped out-the building and putting in of a new water system and the first sewer system that they had ever had. And that act was passed by the Philippine Legislature, and it was approved by the President; so that, while this is a grant of authority to them, it 58 GOVERNMENT OF THE PHILIPPINES. does not mean that they can on the strength of this make a bond issue; they have to go through all of those steps first. Senator WEEKS. Does that hotel pay? Gen. MCINTYRE. The hotel is at present paying. For a little while it did not pay, but it pays the interest on the bonds. The CHAIRMAN. What was the cost of the hotel? Gen. MCINTYRE. I could not answer offhand, Mr. Chairman. I will get that information and put it in the record; also with reference to the Government's percentage. Senator WEEKS. What proportion of the cost of the hotel was bonded? Gen. McINTYRE. I will put that in, if I may, because I have a full report of that. Senator WEEKS. DO yOU think the whole cost was bonded? Gen. MCINTYRE. No; not the whole cost. The stock was paid for, dollar for dollar; the building represented cash for the stock as well as the bonds. The CHAIRMAN. Has the interest on the bonds always been paid? Gen. McINTYRE. Yes; the interest on the bonds has always been paid. Senator SHAFROTI. The land did not cost anything, did it, having been filled in from the harbor? Gen. MCINTYRE. My impression is that that was government land and was practically given to the hotel; but I will put the details in. (The statement referred to is as follows:) The capital for the Manila Hotel was obtained from 4,500 shares, fully paid —________ --- —-------------- V450, 000. 00 First-mortgage 4 per cent 22-year bonds of P2,000 each____________ 900, 000. 00 Cost of site, building, and equipment, as certified by the insular auditor ----------- ------------------ 1. 280, 418. 67 The hotel has 149 guest rooms, half of which have connecting private baths, and it has all the accessories of an up-to-date, first-class hotel. It is generally described as the best hotel in the Orient, and recent reports show that it is crowded with guests. Senator LANE. The hotel is run for private profit, is it? Gen. MCINTYRE. Yes; for private profit. Senator LANE. And there is invested in it a certain sum, I understood you to say, of money belonging to the Philippine government? Gen. McINTYRIE. The Philippine government; yes. Senator LANE. As a loan? Gen. MCINTYRE. As a loan. The theory was that there was a great public necessity for a modern hotel there; there was none in Manila. Senator LANE. At the same time there were some bonds maturing that the Government owed? Gen. MCINTYRE. Oh, no; this was a sinking fund. Senator LANE. Set aside for the friar-land bonds? Gen. MCINTYRE. Yes; those particular bonds would become due in 1934 and the others up to 1937. Senator LANE. Does the government get any interest on the money? Gen. MCINTYRE. Yes, sir. Senator LANE. What per cent? Gen. McINTYRE. My impression is that those bonds are 5 or 6 per cent bonds. [The bonds are 4 per cent.] GOVERNMENT OF THE PHILIPPINES. 59 Senator IANE. Those hotel bonds? Gen. MCINTYRE. Yes, sir. Senator LANE. It is a safe investment, is it? Gen. MCINTYRE. It was so regarded; and then, of course, it was regarded somewhat as being a public necessity. Senator WEEKS. Do you think it was? Gen. MCINTYKE. I think so; I think it was a very proper investment under the circumstances; it was very difficult to get the necessary amount of capital there to build the hotel; they hoped to develop tourist traffic and help the islands. Senator WEEKS. How large a hotel is it? Gen. MCINTYRE. It is quite a large hotel for that vicinity, the Far East. I will put in the record quite a little description of it, if I may do so. The CHAIRMAN. All right. (The statement referred to is as follows:) - The capital for the Manila Hotel was obtained from 4,500 shares, fully paid --- —---------- ------------- 450, 000. 00 First mortgage 4 per cent 22-year bonds of 12,000 each_____- - 900, 000. 00 Cost of site, building, and' equipment, as certified by the insular auditor ________________________________- 1, 280,418. 67 The hotel has 149 guest rooms, half of which have connecting private baths, and it has all the accessories of an up-to-date first-class hotel. It is generally described as the best hotel in the Orient, and recent reports show that it is crowded with guests. The CHAIRMAN. Section 12, which comes next, seems to be an enlargement of section 8. Gen. MCINTYRE. Yes, sir. The CHAIRMAN. And vests the legislative power in the legislature? Gen. MCINTYRE. In view of this section 12 covering the same matter, section 8, I think, might be omitted; it seems to be identical. The CHAIRMAN. A duplication? Gen. MCINTYRE. Yes; they were originally somewhat different, but by amendment they have been made the same. The CHAIRMAN. Then we will take up section 13. Gen. MCINTYRE. Section 13 is a new section which has reference to the Senate of the Philippine Islands. The CHAIRMAN. And the senate takes the place of the present commission? Gen. MCINTYRE. Yes; of the present commission. The CHAIRMAN. And the number will be 24? Gen. MCINTYRE. Twenty-four; and the present commission is nine. Senator WEEKS. How are the senatorial districts arrived at? Gen. MCINTYRE. The bill provides that the Philippine Commission shall divide the islands into 12 districts-1 district to be the nonChristian territory and 11 districts to be in the Christian Provincesthat is, it is practically so divided. The CHAIRMAN. How can the other district, the appointive district, be the non-Christian territory when a part of the savages live on the north and the others on the far south? Gen. MCINTYRE. Well, it is noncontiguous; they will be widely separated. But the authority in the bill is that the governor general may appoint those two Senators without reference to their residence, and he could of course select one with a view to his interest in the 60 GOVERNMENT OF THE PHILIPPINES. wild people of the north and the other with reference to the Moros in the south. The CHAIRMAN. Are those two Senators required to be Filipinos? Gen. MCINTYRE. No. The CHAIRMAN. They might be Americans? Gen. MCINTYRE. Yes; they might be Americans. Senator KEN YON. What is their compensation to be? Gen. MCINTYRE. The compensation of the Senators as the bill is now written is to be fixed by the Philippine Legislature; just as is the case with the present assembly. It has been suggested, and probably at the proper time the department will recommend that there be inserted, in view of the short time before the first election provided for in this bill, the location and boundaries of the various districts in the bill as it is passed, rather than leave that to the commission or anyone else; because there will be a very short time-but that point I will discuss later. Senator KENYON. Have the commission determined the districts yet? Gen. MCINTYRE. No; they have not. Senator WEEKS. Are there any Americans or Europeans in the present Senate? Gen. MCINTYRE. Yes; at present there are four, the Governor General Senator WEEKS (interposing). Oh, yes; those four. Gen. MCINTYRE. Yes; those four and five Filipinos. Senator WEEKS. Are there any Americans in the present legislature? Gen. McINTYRE. No; there are none. Senator WEEKS. They are all Filipinos? Gen. MCINTYRE. Yes; they are all Filipinos in the assembly. Senator WTEEKS. Is not two years a short time of residence in the islands to qualify a man for election to the senate? Gen. MClNTYRE. I take it that that would very largely be governed by conditions. I think ordinarily a man would have to be out there a great deal longer than that before he would be in a position to be elected. Senator WEEKS. He ordinarily would? Gen. MCINTYRE. Yes. Senator WEEKS. But the requirements in almost every country are longer than that, even for citizenship? Gen. MCINTYRE. Yes. Senator SHAFROTH. Well, this provision will apply to an American as well as much as it will to anyone else, and I presume if the time was made somewhat short, so as to permit some Americans, if the people wanted to elect them, to become members of the legislature. The CHAIRMANL. If that is all on that section, we will pass to section 14. Gen. MCINTYRE. That is a corresponding section with reference to the lower house. At present the members of the lower house are elected for four years. This provides for three years in order to agree with the senatorial term of six years, so that the representatives and senators can be elected at one election. GOVERNMENT OF THE PHILIPPINES. 61 Senator WEEKS. Then there will only be an election every three years? Gen. MCINTYRE. Yes; every three years. Senator KENYON. A representative need only have lived in the Philippine Islands one year? Gen. MCINTYRE. Yes, sir. Senator LANE. You have a lower house there now, have you? Gen. MCINTYRE. Yes, sir. This section makes.a very slight change in the lower house. There are nine members added in the lower house, and the requirement is that those nine members shall be appointed by the Governor General to represent the people of the wild districts; they represent the people who are not now represented in the assembly. Senator LANE. Are those to be natives of the islands? Gen. MCINTYRE. No; just as in the case of the two senators appointed, they may be selected with reference to their interest in these people, whether they are natives or Americans. The CHAIRMAN. I notice the requirement is that in all cases they must be able to read and write either Spanish or English? Gen. MCINTYRE. Yes, sir. The CHAIRMANI. HIas the possibility been considered at all of limiting the requirements to English? Gen. MCINTYRE. It has not, Mr. Chairman, for the reason that men of the age necessary to represent their people in this body have not usually had the advantages of our schools; and while a great many of them have learned English, yet the knowledge of English would be rather a harsh requirement, because generally the man would never have had an opportunity to go to an English school in his life; he must have learned it since his school days. So that this requirement has not been changed; and the business of the lower house is, because of the conditions stated, conducted in Spanish. Senator SHAFROTH. Gen. McIntyre, do the men go to these schools in the Philippine Islands? Gen. MCINTYRE. They have night schools in certain places which men attend; but generally speakingSenator SHAFROTH (interposing). When I was in the Philippines I went to one of those night schools, and they had an enormous crowd, and they were men of mature years; and they just seemed to be intent on learning. That condition still exists, does it? Gen. MCINTYRE. Yes; that still exists. Senator WEEKS. Were they attempting to learn other things than the language? Senator SHAFROTH. Yes; but principally the language. The CHAIRMAN. Is the use of Spanish dying out Gen. MCINTYRE. No; the use of Spanish is not dying out, for the reason that, owing to the encouragement of education in general, the number of people who are speaking Spanish is not decreasing. The CHAIRMAN. It is not taught in the public schools, is it? Gen. MCINTYRE. It is taught in certain grades of the public schools, just as we teach foreign languages here. But the hope of the public schools, of course, is to make the use of the English language general. Of course, a great many of the families speak Spanish, and a great deal of the business is conducted in Spanish; and 62 GOVERNMENT OF THE PHILIPPINES. for that reason, education being more general, Spanish is not dying out and probably never will. The CHAIRMAN. Heretofore the business of the upper house has been conducted in English, has it? Gen. MCINTYRE. In English; yes. The CHAIRMAN. And under this bill will it be conducted in Spanish? Gen. MCINTYRE. That is left to the upper house to decide; and I take it that for some time it will be a matter of convenience to have it conducted in Spanish, just as in the lower house at present. The CHAIRMAN. Well, that does not give a very good prospect of having English supplant Spanish as a legislative language in the Philippines. Gen. MCINTYRE. I think when the younger men come along, Mr. Chairman, that will remedy itself; but I think it would be a rather harsh provision to require English now, while the principal legislators are men who were educated before the opportunity to study English became general. Section 15 provides the qualifications for electors. This provision is at present embodied in the law of the Philippine Commission. It is a matter on which Congress has not heretofore legislated; and the changes which would be effected by this section are that this lowers the age of voters from 23 to 21 years, and enables those persons who read and write a native language to vote, which has never been the case heretofore. Senator WEEKS. What do those terms mean in paragraph (a)? Gen. MCINTYRE. A captain municipal, or municipal captain, corresponded to the mayor of a small city; he was the head man of the city. A gobernadorcillo is about the same kind of official. An alcalde is the same, except that it is for a larger town or city. Tenientes are delegates of the alcalde or mayor for a small barrio. Their practice was to have, in the Spanish times, one of these tenientes for every remote barrio; and the teniente was the head man for that ward or district. Cabeza de barangay means, literally, the head of a family. Of course, after the family became extended, instead of being a family by blood, he was the head of a group who lived and operated together. The ayuntamiento was the city council, where they had a city council. You see, those terms were put into our law in the early days of our occupation; they were first in the military orders and afterwards in an early act of the Philippine Commission; and that was embodied in this act, so as to deviate as little as possible from the present law. The main change in that provision is the addition in paragraph (c) of those who are able to read and write a native language. Senator LANE. In this paragraph (b) there is a property qualification, limiting it to those who own $250 worth of real property or pay a tax of $15 a year. Gen. McINTYRE. Yes. Senator LANE. Would not that bar about 90 per cent of the native Filipinos? GOVERNMENT OF THE PHILIPPINES. 63 Gen. MCINTYRE. If that were the only qualification, perhaps it would; but, you see, a man does not have to comply with all three of those. He complies with only one. You see, if a man can read and write, even though he owns nothing, he can vote. Senator KENYON. Or of he owns this amount of real property and can not read and write, he can vote. Gen. MCINTYRE. Yes; he could vote in that case. You see, he is not required to have all of those qualifications; he can have any one of them. Senator LANE. All right; I understand. Senator WEEKS. What portion of the males over the age of 21 years under those restrictions would be entitled to vote? Gen. McINTYRE. Well, this addition of the native language there makes it almost impossible to say. Of course, under the restrictions heretofore in force, we can easily give you the percentage, which is small; the addition of the native language would probably very materially increase the percentage. The department recommends that that section be omitted altogether from the law, in order that the first election under this law should be under the existing law in the Philippine Islands, and that there should be at that time no radical change in the electorate. Senator KENYON. Do you mean that paragraph (c) should be omitted entirely? Gen. MCINTYRE. No; that the entire section should be eliminated. That is a matter now in the entire control of the Philippine Legislature, and the department thinks it should continue there, and that the present qualifications which are more restrictive than those should be in effect at the first election. Thereafter the Philippine Legislature could amend that; the theory being that the addition of this very large class to the electorate, which would necessarily be done within a very short time after the passage of this bill, would make the first election very confusing, and it would be more desirable to have that election under their present law to which they are accustomed. Senator WCEEKS. Now, this is an act of Congress, and it is not a constitution, of course. Could the Philippine Legislature amend this act of Congress? Gen. MCINTYRE. It could not unless the act so provided later on. Senator WEEKS. Is it so provided in the bill? Gen. McINTYRE. Yes; it is so provided. Senator WEEKS. How is Congress to know, if the Philippine Legislature is going to pass additional laws, whether any laws that Congress will pass will conflict with what the Philippine Legislature has done? Gen. MCINTYRE. Well, if they conflict the act of Congress simply annuls any act that the Philippine Legislature has passed. Senator SHAFROTH. Congress still retains that power until absolute independence of the Philippines, does it not? Gen. MCINTYRE. Yes; Congress retains that power as to all matters. Senator WEEKS. Is there not a possibility, however, of a good deal of confusion from that source? Gen. MCINTYRE. From their power to amend? Senator WEEKS. From their power to amend this legislation, or from the power of Congress to pass acts which might be in conflict 64 GOVERNMENT OF THE PHILIPPINES. with what their legislature had done. I do not know that it would be the case; but it seems that there might be a possibility for a great deal of confusion. Gen. MCINTYRE. There would be such a possibility; but that is watched rather closely here; they are required to report their legislation to Congress, and Congress has power to annual any part of it, and, on the other hand, they would have to watch what Congress does very closely. Senator WEEKS. How much legislation have they been passing? Gen. MCINTYRE. In the Philippine Islands? Senator WEEKS. Yes. Gen. MCINTYRE. About 2,500 acts altogether since the commission began to legislate. Senator LANE. I want to ask you this question: Now, take, under classifications (a), (b), and (c), there would not be a large number of Filipinos coming under class (a), would there? Gen. MCINTYRE. That is getting less and less all the time, and I should take it that now the number would not be very large. Senator LANE. Would it be as many as a few thousands or hundreds-how much would it be? Have you any way of estimating it Gen. MCINTYRE. I should say some thousands. Senator LANE. And under (b) there would be large numbers that would not vote. Now, under (c), the majority would not vote, would they? Gen. MCINTYRE. I think that more people vote under (b) than under (c) at present. Senator LANE. Then, that would be 90 per cent under (b) would be excluded, and under the first paragraph of this section it allows anyone to vote who has been a citizen and resident of the Philippine Islands for one year and of the municipality in which he offers to vote for six months. Now, it struck me that that would be a discrimination against the native, by allowing the stranger to come in with that small restriction contained in the first paragraph-I know how it was out in our country-it would be quite a discrimination against the native Filipino. Does it not strike you that way? Gen. McINTYRE. It so happens that practically all the voters are native Filipinos; all the others would be negligible. Senator LANE. In this first paragraph anyone coming into the islandsGen. MCINTYRE (interposing). Well, you see, that is changed to some extentSenator LANE (continuing). Anyone coming into the Philippines could within one year be allowed to vote. The CHAIRMAN. Every " male citizen "; he has to be a citizen. Senator LANE. Yes; I see. The CHAIRMAN. I understand that this section disfranchises an American citizen who now has the right to vote. Gen. MCINTYRE. Yes; he is disfranchised. The CHAIRMAN. And there would be several thousand Americans who have the right to vote there now who could not vote under this bill? Gen. MCINTYRE. Yes; no American can vote under that section. Senator WEEKS. Then, could an American be elected a legislator or senator? GOVERNMENT OF THE PHILIPPINES... 65 Gen. MCINTYRE. No; in both cases he is required to be an elector. Senator WEEKS. Then he could not be elected to the legislature? Gen. MCINTYRE. No; in both cases he is required to be an elector. Senator WEEKS. That would mean that the legislature would be composed entirely of Filipinos? Gen. MCINTYRE. Those are among the reasons why we recommend that that section be omitted from this bill. Senator WEEKS. That is, you do not think it is absolutely wise to limit the possibility of electing others than Filipinos to the senate or the legislature? Gen. MCINTYRE. No. I think certainly we should not recommend that here, that an American citizen be deprived of any right or privilege. Senator RANSDELL. What are the words here in this section which restrict the right of citizenship to Filipinos? It says " every male citizen." Could not a man be a citizen of the Philippines whether he was a Filipino or not? Gen. MCINTYRE. No; it says "every male citizen of the Philippines." But there is at present no law by which a man could become a citizen of the Philippines, In this bill we authorize the Philippine legislature to pass an act under which they could become citizens. Senator RANSDELL. But there is none at the present time? Gen. MCINTYRE. There is none at the present time. Senator LANE. There is no way at present of acquiring Philippine citizenship? Gen. MCINTYRE. There is no way at present. Senator RANSDELL. That makes it all right then. I did not understand that. The CHAIRMAN. The next is section 16. Gen. MCINTYRE. This provides for the districting of the islands in the first election. Senator SHAFROTH. I think that suggestion of yours, that that ought to be specified in this bill, for the first election, a very good one. That is, have the districts specified in here, so as to avoid the delay necessary in getting the matter through the Philippine Legislature. Gen. MCINT.YRE. Yes; I think that would be better. Senator SHAFROTH. In other words, let the districts be named and described, and provide that they shall be the districts until otherwise provided by the Philippine Legislature. Gen. MCINTYRE. Yes; that is the provision we suggested. Senator RANSDELL. Have we the information at hand to enable us to do that? Gen. MCINTYRE. I think we have, Senator Ransdell, because it would have to be based on the last census which was taken. We have that by Provinces, and we would have to make the senatorial districts as near equal as possible; and we would have to include in each district an entire number of Provinces; so that I think we would have very little more difficulty here than they would there; and, of course, it would be simply for the first election. So that I think we could do that. The CHAIRMAN. You do not believe in electing any Senators at large? 73560-15-5 66 GOVERNMENT OF THE PHILIPPINES. Gen. McINTYRE. It is not so provided here. And I think, personally, that there will be some difficulty about that. You see the islands cover a great deal of territory, and it would be very difficult for a man to make a campaign over the whole island; and a man in order to have any chance at all would have to be some man who had been in the public eye all over the islands; and there would be a very limited number of men available. The CHAIRMAN. Will you prepare a tentative draft of a substitute provision for this section, General? Gen. McINTYRE. I will be glad to do so, Mr. Chairman. (The memorandum submitted by Gen. McIntyre is as follows:) SEC. 16. That for the purposes of the first election hereafter to the Philippine Legislature, the Philippine Islands shall be divided into twelve senate districts, as follows: First district: Batanes, Cagayan, Isabela, Ilocos Norte, and Ilocos Sur. Second district: La Union, Pangasinan and Zambales. Third district: Tarlac, Nueva Ecija, Pampanga, and Bataan. Fourth district: Bulacan, Rizal, Manila, and Cavite. Fifth district: Batangas, Mindoro, Tayabas, and Laguna. Sixth district: Sorsogon, Albay, and Ambos Camarines. Seventh district: Iloilo and Capiz. Eighth district: Negros Occidental, Negros Oriental, Antique, and Palawan. Ninth district: Leyte and Samar. Tenth district: Cebu. Eleventh district: Surigao, Misamis, and Bohol. Twelfth district: The Mountain Province, Baguio, Nueva Vizcaya, and the Department of Mindanao and Sulu. The representative districts shall be the 81 now provided by law, and 3 in the Mountain Province, 1 in Nueva Vizcaya, and 5 in the Department of Mindanao and Sulu. The first election under the provisions of this act shall be held on the first Tuesday of June, nineteen hundred and fifteen, and there shall be chosen at such election one senator from each senate district for a term of three years and one for six years. Thereafter one senator from each district shall be elected from each senate district for a term of six years. That at said first election each representative district shall elect one representative for a term of three years and triennially thereafter: Provided, That the Governor General of the Philippine Islands shall appoint, without the consent of the senate and without restriction as to residence, senators and representatives who will, in his opinion, best represent the senate district and those representative districts which may be included in the territory not now represented in the Philippine Assembly: Provided further, That thereafter elections shall be held only on such days and under such regulations as to ballots, voting, and qualifications of electors as may be prescribed by the Philippine Legislature, to which is hereby given authority to redistrict the Philippine Islands and modify, amend, or repeal any provision of this section. NOTE.-The senate districts as enumerated will be as nearly equal in population based on the census of 1903, as they may be with due regard to the necessity of including an entire number of Provinces in each district and with regard to continuity of territory and means of communication and a common native language. The twelfth district includes all of the territory not now represented in the Philippine Assembly. This is true also of the nine representative districts in the Mountain Province, in Nueva Vizcaya, and in the Department of Mindanao and Sulu. The population of the twelve senate districts is as follows: First district____ — _ — -- 620,823 Seventh district__ --- — -- 641, 036 Second district _ —. --- — - 626,999 Eighth district-__ —_____ 679, 628 Third district —_ -— _ --- 539,795 Ninth district_______ --- 655,159 Fourth district_ —_ --- — 729 372 Tenth district_______-_- 653, 727 Fifth district ---------- - 599, 545 Eleventh district __ —_ --- —- 481,936 Sixth district ____ --- —-- 561, 231 Twelfth district__-______ 795, 580 GOVERNMENT OF THE PHILIPPINES. 67 The CHAIRMAN. Now, is there anything more in that section which you want to discuss, Gen. McIntyre? If not, we will take up section 17 of the bill. Gen. MCINTYRE. That provides the terms of members of the legislature and for elections in cases of vacancy. It is in the usual form. The suggestion is made that the last sentence be so modified that the terms of senators and representatives appointed by the Governor General shall be the same as those in the case of elected senators and representatives. The CHAIRMAN. Do the terms of senators expire at the same time? Gen. McIntyre. No; the original draft provided that; but the bill as revised provide that every three years the terms of one-half the senators should expire. Senator WEEKS. I should think that would be a good suggestion about the terms of the appointive senators. A man might be an inefficient o reven an incompetent senator and still the Governor General might not care to take the responsibility of removing him. Gen. MCINTYRE. Yes; that is the thought, that it would remove that difficulty. Senator WEEKS. If he was efficient, he could be reappointed. Gen. MCINTYRE. Yes, sir. Senator SHAFROTH. I want to ask you a question in reference to the nature and character of the Filipino people. Have they any of the elements of a good many of the Latin American republics, tending toward revolution and insurrection? Gen. McINTYRE. Well, we can only judge that by the record; and for the 300 years that they were under-Spain the Filipinos had, we might say, no revolution. Senator SHAFROTH. They submitted to law and order, did they? Gen. MCINTYRE. They submitted to law and order. Senator SHAFROTH. Even if the orders were somewhat tyrannical Gen. MCINTYRE. That was generally the case. The insurrection of 1896 was the most serious insurrection; and, of course, we met the continuation of that. Senator SHAFROTH. Well, in the conduct of the average Filipino individual, is he hard to manage? Gen. MCINTYRE. Not at all; very easy. Senator SHAFROTH. He obeys orders, does he? Gen. MCINTYRE. He obeys orders, and they are people that are taught, and have been taught for ages, and it is well inculcated in them, to respect authority; and the exceptions to that are very limited. Senator WEEKS. Now, are you speaking of all of the different classes and tribes? Gen. MCINTYRE. That was spoken generally of the Filipino people, and even the Moros, and those who are warlike are respectful to their own authority. The trouble with the Moro has been the failure to recognize the authority of the Government. That feeling, our people report, is disappearing. Senator SHAFROTH. Do the records of the courts indicate that they are violaters of the law to any unusual extent? Gen. MCINTYRE. Not to an unusual extent; no. And in many respects-the cases differ somewhat-but on the whole they are lawabiding people. They are a little prone to litigation in civil matters. 68 GOVERNMENT OF THE PHILIPPINES. Senator SHAFROTH. Yes. Do they incline in any way to acts of violence? Gen. MCINTYRE. I should say not; judged by similar people in a similar condition elsewhere, I shall say decidedly not. Senator SHAFROTH. Do they commit any of the crimes that are charged against them-are many of them guilty of larceny or robbery? Gen. MCINTYRE. Some, but not a great many. Senator SHAFROTH. Not a great many. The CHAIRMAN. In the municipalities they have had self-govern. ment for some time, have they not? Gen. MCINTYRE. Yes. The CHAIRMAN. Will you explain to the committee to what extent graft has developed under those circumstances, and what, if any, precautions have been taken to avoid that? Gen. MCINTYRE. Practically from the beginning the precautions to avoid graft have been very strict. That is, in the municipality the municipal treasurer is practically in every case a delegate or agent of the provincial treasurer, which gives the provincial treasurer an opportunity to overlook him. And then there is the auditor's office in Manila; the auditor, by his district auditors, examines the accounts of both the provincial treasurer and the municipal treasurer, and by a system of report they are required to very carefully account for all the funds and their accounts are scrutinized at the source. So that, in so far as any misapplication of funds is concerned, the number of defalcations has been remarkably small. In fact, the auditor each year in his reports lists every defalcation in the islands and the number is surprisingly small. It was found along that line (the record has not been perfect by any means) that at first the municipal officers did not understand their duties with reference to public funds, and the disposition was to regard the taxes at the disposition of the municipality as being somewhtat of a personal prerogative; that is, the people in authority could dispose of them for their own purposes, and there was to that extent a misapplication, in that there was not a use of the public funds for the benefit of the public, and there was restrictive legislation passed by the commissionThe CHAInRMAN (interposing). By the commission? Gen. MCINTYRE. Yes. The CHAIRMAN. Not by the legislature? Gen. MCINTYRE. Well, the legislature has continued that, of course. but it was passed before there was a lower house. This legislation restricted the purposes for which these funds could be'used. For instance, it was provided that not more than a certain per cent could be used for salaries, and other restriction, so that there might be a more proper and beneficial use of the money. The CHAIRMAN. The commission first-shortly after our occupation of the islands, was it? Gen. MCIlNTYRE. Yes. The CHAIRMAN. After the military officers had turned it over to the civil authorities? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. And how long did they act alone? GOVERNMENT OF THE PHILIPPINES. 69 Gen. MCINTYRE. For six years; so that practically all of the legislation that was passed for those six years-that is, to 1907-was passed by the Philippine Commission, which at that time was the exclusive legislative body. The assembly was created in 1907; and since that time the legislation, of course, has been passed by both houses. Senator SHAFROTH. Gen. McIntyre, there is in Manila an observatory that calculates the course and approach of typhoons for a distance of some 500 miles from Manila; and there is sent out from that observatory to all parts of the Orient information as to the course of the typhoon. I will ask you who conducts the calculations for that data? Gen. MCINTYRE. This observatory was originally established as a private institution by the Jesuit Fathers, and later the Spanish Government made it the observatorv of the Government; and we have continued that; so that now Father Algue is the director of the weather bureau of the Philippine Islands. He is the head of this observatory, and he is perhaps the best authority on typhoons and cyclones in the world. Senator RANSDELL. IS he a Jesuit? Gen. McINTYRE. He is a Jesuit. Senator SHAFROTH. Now, the people who make the calculations in that observatory, are they not Filipinos? Gen. MCINTYRE. They perhaps have three Spanish priests, and practically all the rest of the personnel is Filipino. Senator SITAFROTH. Some 30 or 40, is it not? Gen. MCINTYRE. Yes; and most of the observers elsewhere than Manila are Filipinos. Senator WEEKS. Who furnishes the funds? Gen. MCINTYRE. They are appropriated by the Philippine government. It is run very economically as a weather bureau; but there is an annual appropriation by the government. Senator SHAFROTH. In the drug stores of the islands when I was there I noticed that all of the prescription clerks were Filipinos. Is that still the case. Gen. MCINTYRE. They may perhaps be one or two exceptions, but that is generally true. Senator SHAFROTH. Yes. And those medicines are put up on prescriptions written in Latin, are they not, and the labels on the bottles are in Latin? Gen. MCINTYRE. Yes; those men are many of them graduate pharmacists, who are prescription clerks. Senator SHAFROTH. A great many of the lawyers are Filipinos, are they not? Gen. MCINTYRE. Yes; a great many of the best lawyers. The chief justice of the supreme court is a Filipino. Senator SHAFROTH. Some of them have very high positions under the American Government, have they not? Gen. MCINTYRE. Yes; we have had an attorney general now for a number of years who is a Filipino. The chief justice of the supreme court since its organization is a Filipino, and a number of others. Senator SHAFROTH. I will ask you whether the train conductors and the locomotive engineers are not Filipinos? 70 GOVERNMENT OF THE PHILIPPINES. Gen. McINTYRE. Practically all. Senator SHAFROTH. And the station agents? Gen. MCINTYRE. Yes. Senator SHAFROTH. And the telegraph operators? Gen. MCINTYRE. They have some American telegraph operators, but generally speaking, with reference to the railroad, the old railroad, the Manila & Dagupan Railroad employs very few Europeans. There are some in the accounting department, and, generally speaking, the civil engineers. Senator SHAFROTH. Those are Europeans? Gen. MCINTYRE. Those are Europeans, mostly; not all of them, however. Senator SHAFROTH. Yes; but the conductors and engineers are practically all Filipinos? Gen. MCINTYRE. Yes, sir. Senator LANE. Are the Filipinos acquisitive in their dealings" near," as they call it in New England-are they close traders? Gen. McINTYRE. I think not. The Chinaman is really the "near " man of the Philippines. Senator LANE. He is an artist. How is the Filipino as to that? Gen. MCINTYRE. The Filipino is rather a liberal liver. We were spaking of clothing this morning. The Filipino is a man who likes to wear good clothes and spends his money freely, as a general thing. Senator LANE. As a class, they are not men who hoard and deal closely like the Chinese? Gen. MCINTYRE. They do not hoard; but many are well off. Senator SHAFROTH. Are not a great many of the cashiers of banks and receiving tellers and bookkeepers of the banks native Filipinos? Gen. MCINTYRE. If you take one of the older English banks, like the Hongkong and Shanghai Bank, they will have an agency at Iloilo or Cebu, or some other town; and they will have one Englishman, and the personnel outside of that will be usually Filipinos. Senator SHAFROTH. Take the bank in Manila: What proportion of the help that you would see going into a bank would be Filipinos? Gen. MCINTYRE. That would be about the proportion. Of course, in the larger banks in Manila the number of Europeans will be greater; but there would always be employed a number of Filipinos. Senator SHAFROTH. Perhaps nine-tenths of them? Gen. MCINTYRE. Yes; perhaps nine-tenths. Senator SHAFROTH. They had also been engaged, I presume, in various public offices as accountants and things of that kind, in connection with the Philippine Government administered by the United States? Gen. MCINTYRE. Yes, sir. Senator SHAFROTII. IS it generally recognized that they perform their duties well? Gen. MCINTYRE. It is so reported every year-those in the public service. We had at the time of the last report in the Government service 2,218 Americans and 7,710 Filipinos; that is, in the classified service. That, of course, does not include those in the municipal and provincial service, in which practically all are Filipinos. The CHAIRMAN. That includes simply the insular government, then, does it? GOVERNMENT OF THE PHILIPPINES. 71 Gen. MCINTYRE. Yes; simply the insular government. The CHAIRMAN. They are all paid by the Philippine Government, are they Gen. MCINTYRE. Those are so paid; yes. Senator SHAFROTH. But the provincial officers are paid out of the provincial treasury, are they? Gen. McINTYRE. The provincial officers are paid out of the provincial treasury and the municipal officers from the municipal treasury. Senator SHAFROTH. And they are practically all Filipinos? Gen. MCINTYRE. Yes. In some of the provinces the treasurer is an American; he is a civil-service man. Senator RANSDELL. Have the Filipinos a literature of their own separate from that of Spain? Gen. MCINTYRE. The literature in the native language is not very large, although in practically all of the languages they have some books. But with the exception of one or two they have in practically every one of the languages a newspaper now. But the literature was very largely religious books that were prepared by the friars for instruction in religion. They have not a very wide printed literature. Senator RANSDELL. Did they have poets and historians and novelists among the native Filipinos? Gen. MCINTYRE. Not a great many; in fact, they have relatively few who wrote books of any particular standing. There were books of all classes; but if you will take, for instance, the bibliography of the Philippine Islands published by Pardo Tavena, you will see that there is not a wide literature among the native Filipinos. Senator SHAFROTH. Rizal was their great statesman, was he not? Gen. MCINTYRE. He was the most brilliant literary man in the Philippines, but he wrote as a Spanish-speaking man. Senator REED. What proportion of the adult population can read and write? Gen. MCINTYRE. Well, I have the census statement as to that; of course that has changed a great deal since then; that was 10 years ago. Of the males 21 years of age and over, 32.2 per cent at that time were reported as literate; that is, they could read and write Spanish'or English or some other language. Senator RANSDELL. What census was that? Gen. MCINTYRE. 1903. Senator REED. What do you think the per cent is now? Gen MCINTYRE. It is very hard to tell. You see now for 16 years we have had schools there, and for 10 years we have had from 300,000 to 400,000 pupils in the schools. A good many of those have not reached the age of voting yet. Senator REED. What would be your estimate? Of course we can not bind you to anything definite by that. Gen. MCINTYRE. Where I would have difficulty is in estimating the number who could read and write the native languages. For instance, when we went there 10 per cent of them could read and write Spanish; that number is still at least 10 per cent; and I think, taking the population by and large, that it would be perhaps 50 per cent to-day that could either read or write in Spanish or in English or in a native dialect. 72 GOVERNMENT OF THE PHILIPPINES. Senator REED. What effect would it have if we allowed them to vote whether they could read and write or not? Gen. MCINTYRE. The chances are that the elections would not mean anything under a system where they could all vote. I do not think it would mean an intelligent selection at all. It might not differ in results; it might give in a particular case the same result, but I think the result would not mean anything at all. Senator REED. Well, would you say that if a man owned some real estate, and can not read and write, that that qualifies him to vote any more than the man who works on the place and has no real estate? Gen. MclNTYRE. I think it does. I say so because so frequently that indicates native ability without opportunity, and the ability of a man of that kind would probably be larger than that of a man who could read and write and did not own anything. I think the man v-ho has been thrifty would perhaps be the better of the two. Senator KENYON. Do they have political parties in the Philippine Islands, and political speeches? Gen. MCINTYRE. Yes; they have very heated campaigns. Senator REED. With regard to the class of voters mentioned in paragraph (a) in section 17 of the bill-those who held various minor local civil offices under Spanish rule-are any of those people unable to read and write? Gen. McINTYRE. Some of them; but I think the point is that the man prefers to qualify in that capacity because it is simpler, and he qualifies on the record. I think those men as a general thing would qualify under all three heads of that section. There would probably be a few exceptions, but, generally speaking, a man who had held that office would be a man who could read and write the native language, at any rate. The CHAIRMAN. Can you tell what the number of electors was at the last election? Gen. MCINTYRE. I could put that in the record. I can only guess at it now. The CHAIRMAN. I understand it was very small. Gen. MCINTYRE. It was very small. In the last general election the total vote was 235,786 out of a total registration of 248,154. Senator REED. Every instinct that I have is against disqualifying any man from his vote. There may be a necessity for it there in the Philippines. We have not done it in our country; we let them vote. But in the case of the Philippines I thought perhaps there was some special reason in view for disqualifying some of those people. Gen. MCINTYRE. I think the special reason is that those people had never voted; they were not people who had learned anything at the beginning, and therefore it was thought that it should be somewhat more restrictive. Senator REED. What proportion of children of school age are now going to school? CGen. MCINTYRE. We figure about one-half of those of school age. The number at school runs from 400,000 to 600,000, and we think there are at least 1,200,000 who are of school age. Senator REED. There is no system of compulsory education, is there? GOVERNMENT OF THE PHILIPPINES. 73 Gen. MCINTYRE. No; the assembly has tried to pass an act for compulsory education, but the difficulty was that the act would be more or less meaningless when the facilities could not be given. Senator REED. Do you not think it would be a good idea for us to pass such an act, or at least establish a public school system for them and compulsory education, before we let the islands go? Gen. MCINTYRE. The money would have to come from the United States, and heretofore their government has got no money for the purpose from the United States at all; it is an independent government in so far as its finances are concerned. It has been recommended in the past that Congress appropriate money for education in the Philippine Islands, but I think that has not been pushed, partly from the desire to maintain financial independence of the government. Senator REED. Is it not more important that they should have sufficient schools than that they should have these public works and improvements which have been referred to? Gen. MCINTYRE. Well, I think that those things will be a great help toward the schools. I think the creation of facilities for travel enabled the people to get to the schools, and they are, in a way, a schooling in themselves. Senator REED. Do they appear to have any desire for knowledge — any real desire to learn? Gen. MCINTYRE. A very great desire; the schools are crowded. The question of getting all these children to school is not that the children are laggards or desirous of staying away; it is the limit of our facilities. Senator REED. How much do you think it would cost to give them all at least a primary education, so that they could learn to read and write? Gen. MCINTYRE. I can give the exact amount so it can be put in the record. But I will say now that it cost about $9 a year for every student that we have in the public schools in the Philippine Islands. The CHAIRMAN. How is that cost defrayed-by the local governments? Gen. MCINTYRE. By the local governments entirely. Senator REED. But that includes, of course, some high schools and grammar schools, and so on? Gen. MCINTYRE. All classes. Senator REED. The question I am interested in is the cost for a primary education, by which I mean so that they can be taught through "reading, writing, and ciphering," to use the old expression. Gen. MCINTYRE. I do not think it would be much cheaper, for the reason that the children that we reach now are those that can be reached at the least-expense-at centers of population. To go out for those that are remote would cost relatively more. So that I think the price would be about the same. Senator LANE. $9 per annum per pupil? Gen. MCINTYRE. Yes. Senator LANE. That is very low. Gen. MCINTYRE. Yes; that is very low. 74 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. That is over $5,000,000 a year in the aggregate, and it is several times more than the expenses of the insular government. Gen. MCINTYRE. Yes, sir; on education. The CHAIRMAN. I mean the total expenditures of the insular government, as I recall it, are not $5,000,000. Gen. MCINTYRE. Oh, yes; they are about $15,000,000. The CHAIRMAN. Are they? Gen. MCINTYRE. Yes, sir. Senator REED. It seems to me that if we are going to fit these people for citizenship we could do them no greater service than to see that they have some education. However, you will put in whatever figures you have on this subject. Senator SHAFROTH. You have been doing that school work for 15 years? Gen. MCINTYRE. Yes, sir; and we are going ahead. Senator SHAFROTIH. And you have an attendance of about 600,000 students, which is a pretty good showing. The night schools there are crowded by men of mature years, and when they attend schools in the Philippine Islands at night you may know that they want an education. The CHAIRMAN. Who furnishes the books in the schools? Gen. MCINTYRE. They have an arrangement by which, where the children are able, they furnish the books themselves, but where they are not able the Government does so. They buy their books right along in the United States. That matter depends upon local conditions. Senator REED. What do they pay teachers over there? Gen. MCINTYRE. We have about 700 American teachers, and in gelneral we start them at $1,200 a year, and they go from that up to as much as $3,000 a year. Senator REED. Are there any colleges over there? (Gen. MCINTYRE. Yes; they have the University of the Philippines, which is maintained by the Government; and then they have the church colleges in addition. Senator REED. Does that university provide a pretty fair education? Gen. MCINTYRE. Yes, sir; the University of the Philippines is in a fair way of having the standard of one of our universities here. Senator KENYON. How many students are there? Senator SHAFROTH. St. Thomas University used to have 1,200 students; how many does it have now? Gen. MCINTYRE. My understanding is that it keeps just about the same. I think I can give you those figures. Last year there was an enrollment of 1,400 students in the University of the Philippines. Senator KENYON. Do they have any military training there? Gen. MCINTYRE. We have not had heretofore; but they have established a military school for the instruction of the constabulary. That is the local police. Senator KENYON. Is that very largely attended? Gen. MCINTYRE. These boys are there by special appointment of the members of the legislature-somewhat on the plan of West Point. Those boys are sent there with the idea of being instructed and then being appointed in the constabulary. GOVERNMENT OF THE PHILIPPINES. 75 Senator KENYON. Well, if the Filipinos were granted their independence, what chance is there for their development along military lines, so that they might join with these other Christian nations in killing each other off? Gen. MCINTYRE. Well, at present they have these Filipino scouts, a body of about 5,000 men who are trained as soldiers, and they have the constabulary, which is the insular police force, but which has military training also. That body is supported by the insular govermnent. Senator REED. IS it your opinion that if these people are turned loose to work out their own salvation, they will maintain a stable government there and become more and more educated and civilized and competent to take care of themselves? Gen. MCINTYRE. Well, the theory of this bill is that at this time they are not. Senator REED. I say, is it your opinion that they will, if they are given the right to govern themselves-will they develop along the right lines? Gen. MCINTYRE. Do you mean if they were given independence to-day? Senator REED. Oh, no; in a reasonable time. Gen. MCINTYRE. Well, I think that would have to be studied very carefully at the time, Senator Reed. My disposition is to think that that is somewhat in the future. Senator SHAFROTH. Gen. McIntyre, you spoke about the student at the University of the Philippines. That is a new institution, is it not? Gen. MCINTYRE. Yes. Senator SHAFROTH. It has not been going but two years? Gen. MCINTYRE. Just a few years. Senator SHAFROTH. I think they have been operating for a period of about two years? Gen. MCINTYRE. Yes. Senator SHAFROTH. And their attendance now is 1,400? Gen. MCINTYRE. That was the number last year. Senator SHAFROTH. Consequently, opening only two years ago, they would not have any juniors or seniors at all until after the two years had passed? o Gen. MCINTYRE. Well, they have graduated one or two classes in some of their schools. Senator SHAFROTH. But they must be few in number? Gen. MCINTYRE. They are few in number. Senator SHIAFROTH. The St. Thomas University, that was referred to as having about 1,200 students, is an old institution and has been there for very many years, has it not? Gen. MCINTYRE. Yes, sir. Senator REED. Is it still running? Gen. MCINTYRE. It is still running. Senator REED. And it still has about 1,200 people? Gen. MCINTYRE. I think it has about that number. I could get those figures for you. September 1, 1912, 767 students were enrolled. 76 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. The next section provides for the sessions of the senate and house of representatives and the pay of members. Now, the pay of senators and representatives is left to the legislature. Do you think that is wise? Gen. MCINTYRE. The legislature has that authority with reference to the present assembly. Senator KENYON..What do they pay the members now? Gen. MCINTYRE. Thirty pesos-$15-a day for each day of session, and the sessions are limited by law to 90 days; but there is usually a short extra session. Senator KENYON. Are they paid for the extra session also? Gen. MCINTYRE. Yes. The CHAIRMAN. Well, there is nothing in this organic act as to the limit of the session, is there? Gen. MCINTYRE. No; there is no limit there. That is given fully here [indicating]. It has been provided that, instead of having a 90-day session, the discretion be left to the legislature. In the old organic act it was limited to 90 days per annum. It has been suggested that the salaries be named in the bill, but that is a matter on which the War Department has not definitely passed; that is, it makes no recommendation as to that. Senator REED. I would like to make the suggestion that they ought to get.a certain pay per diem, and that if they run beyond a certain period the per diem ought to be reduced materially. The CHAIRMAN. The way it is in most legislatures. Senator SHAFROTH. That is a good suggestion. But the Filipinos are very economical. They reduced the expenses of the government last year $2,500,000. Senator REED. They are drawing pretty liberal pay-$15, or P30, a day. Senator KENYON. How much did you say their expenses were reduced? Senator SHAFROTH. They reduced them $1,000,000 last year, and I have seen somewhere that they have reduced them $2,500,000 altogether. (Thereupon, at 5 o'clock p. m., the committee adjourned until Wednesday, December 16, 1914, at 10 o'clock a. m.) GOVERNMENT OF TiHE PHILIPPINES. WEDNESDAY, DECEMBER 16, 1914. COIMMITTEE ON THE PHILIPPINES, UNITED STATES SENATE, Washington, D. C. The committee met at 10.30 o'clock a. m., Hon. Gilbert M. Hitch4 cock (chairman) presiding. The CHAIRMAN. I will say to the members of the committee that they will find before them an annotated bill. This is the House bill, as passed, with notations made by Gen. McIntyre and the clerk of the committee, showing the changes from the organic act. Senator SHAFROTH. As amended? The CHAIRMAN. Yes; as amended. This was printed in this way for the convenience of the committee to show what changes have been made. Now, General, will you please resume where you left off in the bill 2 STATEMENT OF BRIG. GEN. FRANK M'INTYRE, CHIEF OF THE BUREAU OF INSULAR AFFAIRS, UNITED STATES WAR DEPART. MENT- Continued. Gen. MCINTYRE. Section 19 we were discussing, I think, Mr. Chair. man. Section 19 is a change from existing law in that at present the Governor General being a member of the commission or upper house has no veto power. Under this he is given the usual veto power and then, if any bill or joint resolution shall be passed over his veto, the President of the United States has authority to approve or disapprove such an act and his action is final; that is, if a bill is passed over the veto of the governor. Beginning with line 10, on page 17, there is a clause which is identical with the present law and is contained in section 9 of the Philippines organic act. I am now reading from the other print [members of the committee having annotated print]. It may be the lines are different. It is the provision that gives to the Congress of the United States the power and! authority to annul any law passed by the Philippine Legislature. Senator CRAWFORD. That is the present law. Gen. MCINTYRE. That is the present law and is continued here. Senator CRAWFORD. I do not find it in line 10. 77 78 GOVERNMENT OF THE PHILIPPINES. Gen.McINTYRE. I think that is the difficulty [different prints], Senator, but it reads: That all laws enacted by the Philippine Legislature shall be reported to the' Congress of the United States, which hereby reserves power and authority to annul the same. The following sentence is slightly modified from the clause in section 7 of the present organic act, and the annotated bill will show just exactly the way in which that is so modified. That continues the appropriation in case the legislature fails to appropriate. Senatcr LIPPITT. General, in that clause that "all laws enacted by the Philippine Legislature shall be reported to the Congress of the United States, which hereby reserves power and authority to annul the same," is there no time limit on that? Gen. MCINTYRE. No; that is a general power which Congress has at any time. Senator WALSH. That has never been exercised? Gen. MCINTYRE. That has never been exercised with reference to the Philippine Islands. Senator CRAWFORD. That is the same authority as they have in connection with the Territories. Gen. MCINTYRE. The same authority that Congress has in connection with the Territories; yes. They can do it at any time. Section 20 -The CHAIRMAN. Let me understand clearly. When the Governor General vetoes a law or an act passed by the Philippine Legislature and it is overridden by a two-thirds vote of the legislature, is it necessary for the President of the United States to put his veto on it within six months? Gen. MCINTYRE. Yes. I think the time limit was put in on the floorThat the President of the United States shall approve or disapprove an act submitted to him under the provisions of this section within six months from and after its enactment and submission to him. Senator CRAWFORD. Suppose he should fail to take any action at all? Gen. MCINTYRE. " But if not approved within such a time it shall become a law." Senator KENYON. And that is the same in the case of veto? Gen. MCINTYRE. No; unless vetoed he would have nothing to do with it, except in this specific case. Senator LIPPITT. He would not have anything to do with it unless it passed over the veto? Gen. MCINTYRE. No; unless it passed over the veto. Senator SHAFROTH. The question is that this gives six months after the enactment and submission for approval. It would have to be submitted. Gen. MCINTYRE. Yes; it would have to be submitted. Senator SHAFROTH. Perhaps that is all right, but I think the word ' enactment" is very confusing before the.words " and submission." Gen. MCINTYRE. Yes; it is. It would create a doubt. Senator LIPPITT. It means six months after its submission for approval, of course. Gen. MCINTYRE. Yes. GOVERNMENT OF THE PHILIPPINES. 79 Senator WALSH. I think, General, the idea there is that it is automatically submitted when it is passed over the veto. That is to say, you do not want to say until in due course of affairs the thing is properly certified by the Governor General and the certifying officer of the State and transmitted by due course of the mail and goes through the War Department with such attendant delays as may ensule there and eventually goes to the President. I take it that this metns that automatically, it being passed over the governor's veto, it is thereafter submitted to the President, and the six months commence to run from that time. Senator SHAFROTH. It seems to me we ought to strike out the word enactment" or the word " submission." They don't mean the same thing. Senator LIPPITT. In the early part of the section, line 15, page 17, it says: If, after such consideration, two-thirds of the members elected to that house shall agree to pass the same, it shall be sent, together with the objections, to the other house, by which it shall likewise be reconsidered, and if approved by two-thirds of all the members elected to that house it shall be seit to the Governor General, who shall transmit the same to the President of the United States. Now, I do not know how long that process of submitting it to the Governor General, having him veto it, and having it passed over his veto by the legislature might consume, but I suppose that it might consume three or four months. Senator SHAFROTH. Suppose it is lost in transit? I think it ought to be " at the time of submission." I know where acts are passed by our legislature at the close of the session the governor has 30 days from the time of delivery of the instrument to him to sign. Senator CRAWFORD. It seems to me the only question here is whether the word "enactment" is not unnecessary. Gen. MCINTYRE. Yes. Senator CRAWFORD. It would not be submitted unless enacted, and the time begins to run from the submission. I think it is rather harmless, but it might just as well go out. Senator WALSH. I think so. But a law does not become an act until it has gone through with all the formalities; so there is little danger. The CHAIRMAN. Is there not a little danger there of discrediting the Governor General there by this provision? Suppose the Governor General vetoes an act and the legislature passes it over his head? Gen. MCINTYRE. This has gone through several forms from the time the bill was introduced until it passed the House. The original thought was to give the governor the absolute veto, but there seemed to be such an objection to giving to anyone that authority that this was submitted so as to meet the views of those Who were opposed to an absolute power of veto in the governor ani would give that power to veto to some one who was somewhat awIay from any local disagreement that might arise. The CHAIRMAN. Then would it not be better to have the veto stand unless the President, within six months, overrode it? Gen. MCINTYRE. I think, Senator, there would be-well, of course, this would enable the legislature to adjourn — 80 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. That is, it might not make it necessary for the President also to veto it. Gen. MCINTYRE. I see. The CHAIRMAN. But make the governor's veto good unless overridden by the President's approval. Senator SHAFROTH. I think that this is intended to guard against a feeling that something would necessarily arise between the executive and legislature, and probably the Philippine people, and that being the case it seems to me there ought to be an affirmative action upon the part of the President as to which of the matters in dispute between them should be their law. I therefore favor very much the President exercising this veto power in the event it is certified to him, he being a disinterested party and a person who sees from afar off. Senator WALSH. I like that arrangement because it really substitutes the President in that event for the approving authority when the Governor General has signified his opposition to the bill. The CHAIRIMAN. I will pass that for the present and make a note we are at least all agreed it should be made more definite. Senator SHAFROTH. Strike out the word " enactment." The CHAIRMAN. Is there anything else in section 19 that the Senators want to call to the attention of Gen. McIntyre? General, you did not fully explain what the difference is between this provision concerning the continuation of appropriations and the old provision. Gen. McINTYRE. The old provision in its operation was held to authorize the Governor General to allot an amount equal to the total appropriated in the preceding bills or for the preceding fiscal year, and to make such disposition of that amount as he thought the conditions of the service required. The object of the change here was to require for each purpose of the former appropriation bill an equal sum to be alloted, and it would take away from the Governor G.eneral the wide discretion that he has heretofore had in the disposition of the total sum appropriated. The CHAIRMAN. That is, heretofore the arrangement has been that if the legislature failed to make a current appropriation, then the old appropriation as to the total remained, but the Governor General might change the details or reapportion the amount? Gen. MCINTYRE. Change the details; that is correct. The CHAIRMAN. And that was necessary because the two houses did not always agree, and there had to be some way of preserving the government. Senator SHAFROTH. In the same way our Porto Rican government has been under the same situation. The CHAIRMAN. The same thing. Now, all this does is simply to continue the total. Senator WALSH. And the same distribution. The CHAIRMAN. And it continues also the distribution. Gen. MCINTYRE. Yes; it continues the distribution. The CHAIRMAN. But suppose in that case an appropriation bill passed this year containing an appropriation for certain public buildings, and the legislature fails to make an appropriation for the next year, would those appropriations for public buildings still GOVERNMENT OF THE PHILIPPINES. 81 continue even though the buildings had been completed and the money was not necessary? Gen. MCINTYRE. It would under this provision; yes, sir. The Governor General could allot to that purpose even though the purpose was deemed to beSenator LIPPITT. The protection against that is the fact that the treasury would only pay out when directed by the Governor General, and, of course, it is to be presumed he would not duplicate that expense. Senator KENYON. Would not the language "so far as may be done" protect it. Senator LIPPITT. Yes; that also protects it. Senator KENYON. There is the same discretion in the Governor General. The CHAIRMAN. Under the present government this clause has been availed of for a number of years, has it not? Gen. MCINTYRE. I think that was the condition for at least three years. The CHAIRMAN. That was due to the fact there was a disagreement between the upper house and the lower house on the appropriation? Gen. MCINTYRE. Yes. The CHAIRMAN. So that the old appropriations were continued from year to year? Gen. MCINTYRE. Yes. Senator LIPPITT. What has happened there in the Philippines in regard to the legislature? Under the present condition of having a commission controlled by a majority of Filipinos, has it been working smoothly or has there been a conflict between the commission and the Governor General, or how has it acted? Gen. MCINTYRE. There has been no conflict, it has worked very smoothly. There has, however, been but one complete session of the legislature under this condition. It is now in session for the second time, but there has been but one completed session of the legislature since the Filipinos have had a majority in the upper house. In that session, for the first time in four years, the appropriation bills were passed and there was no conflict between the two houses. Senator WALSH. You say that was the first time in four years? Gen. MCINTYRE. That was the first time. That was last year. Now it is in session again. Senator LIPPITT. Why was it that for the three years the legislature refused to pass the appropriation bills? Did thev want larger appropriations or were they protesting against their being so large? Gen. MCINTYRE. That is a matter of controversy, and it is very difficult to state precisely, because the two houses did not state the reasons in the same way. In a general way, the difficulty started by the lower house contending-and this is what happened one yearthat the appropriation bill should necessarily originate in that house and that the commission should not originate the appropriation bill. Then, of course, there were essential differences as to the details of the bills on which they could not agree. And, inasmuch as they had this provision there, the upper house, which favored the views of the 73560-14 6 82 GOVERNMENT OF THE PHILIPPINES. Governor General, was in a position tc go ahead with the government without the necessity for compromising on an appropriation bill or without the necessity of yielding so much as they might have been disposed to yield if they had not had that provision. Senator WVEEKS. Was it based on the smallness of the appropriation or only the question of principle? Gen. McISNYRE. It was based, I should say, more on the question of the distribution of the appropriation than on the amount. I do not think, for instance, on the large question of economy, that one house was disposed to be more economical than the other. Senator LIPPITT. Was there some particular appropriation-some particular thing-that was in controversy that one house wanted and the other did not? There must have been something. Gen. MCINTYRE. There were several such things. Senator LIPP1TT. What are they? Gen. McIONTYRE. For instance, there would generally be in the appropriation bill, as it passed the lower house, a considerable cut in the salaries of those officials which the commission felt it was necessary to protect. Senator LIPPITT. What officials were those? Gen. McINsTYRE. Those were generally the American officials, the heads of the different bureaus, and the principal executive officials of the government. The commission would take the ground that they would lose the services of those men if there was a serious cut in the salaries. Senator LIPPITT. I suppose the, Filipinos wanted to lose their services? Gen. MCINTYRE. That was probably the moving cause. Senator LIPPITT. Did that affect the judges? Gen. MCINTYRE. No. There was never a disagreement as to the judiciary. Senator WALSH. What were those officers, generally? Gen. MCINTYRE. Generally they were chiefs of bureaus of the government. For instance, officers such as the director of civil service, director of education, director of public works, collector of internal revenue, and so on. Senator WALSH. Was there nothing more deep-seated than the matter of salaries? Gen. McINTYRE. There were other things, but frequently the little underlying causes would not be made of record; that is, they frequently would start in with a preconceived determination that there should be a disagreement. And it is very hard to analyze disagreements and to say that this was the cause and that was the cause. The difficulty arose partly from the system; the lower house could pass laws and know that the commission would not pass them. They could enact the laws which might appeal to the people, knowing if the law was not a good law that the commission would reject it. And the system, in that way, failed to develop the best that there was in the assembly, because it was deprived of a great deal of the responsibility for legislation it would have if the two houses were of the same general origin. Senator LIPPITT. In the present legislature, have they reduced the salaries of some officers? GOVERNMENT OF THE PHILIPPINES. 83 Gen. MCINTYRE. In the last appropriation bill, generally speaking, officers receiving salaries above $3,000 weYe cut 5 per cent, and those receiving salaries above $10,000 were cut 10 per cent. That was with the exception of the judiciary and the exception of certain officers. But, generally speaking, that governed the salary question in the last appropriation bill. Senator LIPPITT. SO that the effect of the change has been to allow the policies that the lower house of the legislature wanted to put in force to be enacted? Gen. MCINTYRE. In so far as the salary question is concerned. Senator LIPPITT. In so far as that particular question was concerned? Gen. MCINTYRE. Yes. Senator LIPPITT. Has that caused somewhat of a demoralization or changes in the personnel of the service? Gen. MCINTYRE. Doubtless some changes have resulted from that. Senator WALSH. Who have resigned in consequence of a reduction in salary? Gen. MCINTYRE. In many cases there would be more than one reason given. As, for instance, I remember offhand that the director of agriculture resigned and one of the reasons given was that his salary had been reduced by this arrangement. Senator WALSH. Do you know the character of man who succeeded him? Gen. MCINTYRE. An excellent man succeeded him, a man who had been there as assistant in the department for a matter of 12 years. Senator WALSH. You db not feel that the department has suffered particularly, then, General, by reason of the change? Gen. MCINTYRE. Judging on the basis of experience in the islands, the new man has had more experience than the man who resigned. The man who resigned had been there less than 2 years and the man appointed in his place has been there for 12 years. Those figures are approximate. Senator SHAFROTH. It seemed to me that some of those salaries at the time they were made were very high. For instance, the cabinet of the Governor General received $15,000 a year, when our own Cabinet officers at that time got only $8,000. Since then, however, our Cabinet officers have been raised to $12,000. Senator KENYON. Have they been reduced out there? Gen. MCINTYRE. Yes. Senator SHAFROTH. When they admitted the Filipinos into the service they put them on a $5,000 basis and then gave the others, heads of departments, $10,500, and $5,000 as members of the commission, which I do not think was right. Senator LIPPITT. Yes; the salaries of the heads of departments, secretary of the interior, etc. Senator SHAFROTH. They received $10,500 as department chiefs and $5,000 as members of the commission. Senator LANE. Did I understand you to say there was a veto power over the lower house which was exercised on their council by the upper house? Gen. MCINTYRE. Doubtless in some cases, and I think in a great many cases, it was so. I think the system was established and the 84 GOVERNMENT OF THE PHILIPPINES. lower house would pass a number of acts which it knew the upper house would defeat. Senator KENYON. Has the Governor General, under this bill, power to call a special session? Gen. McINTYRE. Yes, sir. Senator KENYON. That is provided for in this measure? Gen. MCINTYRE. Yes. Senator LIPPITT. The session lasts ordinarily 60 days? Gen. MCINTYRE. Under the existing organic act the regular session is limited to 90 days and then the Governor General may call a special session. Under this bill the length of the session is left to the legislature. Senator WALSH. You were interrupted when you were proceeding to tell about the officers who apparently had resigned by reason of a cut in their salaries. Gen. MCINTYRE. I mentioned the secretary of agriculture first. I would like, if I may be permitted, to refresh my mind with the records. The number it not great. You see, the cuts did not affect the judiciary. It may have influenced some man to seek an opportunity to transfer to the United States men who would have continued in the service if they could not have gotten positions elsewhere; but in those cases it would be somewhat difficult to list them. The consulting architect was the only other resignation for this cause. Senator CRAWFORD. Was there a sort of jealousy between the upper and lower houses flowing out of the fact that the Americans dominated the upper house and the Filipinos the lower, and that, in itself, created a jealousy between the two? Gen. MCINTYRE. I would have some difficulty in answering that question. I rather think that it did not, but that the personality of some members of the upper house would rather affect that question rather than whether they were Americans or Filipinos. For a while, you see, with the Americans having a majority of the upper house, things moved very smoothly, and thereafter there came the deadlock. And the deadlock having once been established and there being some resentment on the part of the lower house in seeing that they were unable to accomplish a great deal, by refusing to appropriate, I think that continued their resentment, and I think that unless something had been done the deadlock would perhaps have been indefinite. Senator WALSH. Did that situation become an issue in the contest for places in the lower house? Gen. MCINTYRE. In general, practically every man who appealed to the people would take to himself credit for the fact that he had resented any imposition from the other house and that he had stood for the people, as he would put it. Senator SHAFROTH. I would like to suggest that in regard to the length of time for the sitting of the legislature, inasmuch as the legislators are paid a per diem of $15 a day, it seems to me there ought to be a limitation as to the time they are to hold. I know in a,tate legislature if you should have any $15 a day, they would be in s ssion all the time. GP. MCINTYRE. That was changed here, Senator. GOVERNMENT OF THE PHILIPPINES. 85 Senator SHAFROTH. Yes; it was changed to 90 days. Gen. MCINTYRE. Yes. You see, the present law of Congress limits the session to 90 days and then the law of the Philippine Legislature fixes the per diem. And' under this bill the limit of the session is removed and the bill provides for an annual salary to be fixed by the Philippine Legislature. Both of those would be changes. Senator KENYON. Is there any power in the Governor General to terminate the session in any way? Gen. MICINTYRE. There is not in this bill. Senator SHAFROTH. I have felt that the best law of any in relation to the termination of a session of the legislature is a 90-day session with a provision that after the 90 days they shall draw only a nominal amount, $1 a day. That would give them time to finish up in the last day or two their work, and at the same time would close the legislative session within a reasonable time. The CHAIRMAN. Will you prepare and offer an amendment of that sort? Senator LIPPITT. I might say that Rhode Island goes you one step better than that. They provide a per diem payment for 60 days and no payment at all for any extra session. The CHAIRMAN. That is our provision, too, in Nebraska, except that it is not for 60 days but for 90 days. Senator WEEKS. I would like to ask you: Do you think these salaries which have been reduced were too high? Gen. MCINTYRE. My thought is not, with this exception: The salaries were higher than the Philippine Government could pay if the positions were filled by Filipinos; that is, if there was a gradual replacing 'of American officials.that had been theretofore considered necessary by Filipinos, the salaries should then be reduced in order to bring the salaries within the means of the Philippine Government. So long as it is necessary to keep an American in a position in the Philippine Islands it is absolutely necessary that the salaries shall be liberal. Senator WEEKS. Were they materially higher than the salaries for similar places in our Government here? Gen. MCINTYRE. Yes; they were materially higher. They were fixed originally higher. Senator WEEKS. How much higher? Gen. MCINTYRE. The Governor General's salary was $20,500, and the heads of the executive departments received $15,500. Senator LIPPITT. That is, provided they were commissioners Gen. MCINTYRE. Commissioners, at the heads of the executive departments. Senator SHAFROTH. All the Americans were? Gen. MCINTYRE. Yes; originally. Senator LIPPITT. Nevertheless, it is necessary to bear that distinction in mind, because, as a matter of fact, the salaries of the heads of departments were $10,500. Gen. MCINTYRE. $10,500, and $5,000 as members of the legislature. The legislative members of the commission received salaries of $7,500. That, for example, I think, was too high. Senator LIPPITT. That is, the Americans? Gen. MCINTYRE..No; those who were legislative members of the commission without portfolios. 86 GOVERNMENT OF THE PHILIPPINES. Senator LIPPITT. They were Filipinos? Gen. MCINTYRE. Yes. You see, it was increased from the original $5,000 to $7,500. At the last session of the legislature they decreased that salary to $6,750. It is still too high and more than we would pay for a member of the legislature in a State whose revenues approximated to those of the Philippine Islands. And yet those men, you see, were usually Filipinos, so that that salary would have no justification according to our standard. Senator LIPPITT. There was one case in which they were Americans, were there not? Gen. MCINTTYRE. Yes; there have been times when one of them was an American. Senator LIPPITT. Four members of the cabinet and one member of the commission were Americans, and that one officer received $7,500. Gen. MCINTYRE. There was also, during that same period, one Filipino who was the head of an executive department and his salary was $15,500; and there were three Filipinos who were legislative members of the commission, and their salaries were $7,500. That creates the difficulty in adjusting the salaries to the revenues of the government. For, while it is quite clear to me that these salaries of the Americans were not excessive, yet at the same time, that would be an excessive salary to pay to a man who lived at his home, under normal conditions, for the performance of this work, and is wholly out of proportion to our salaries here. Senator LIrPITT. That is, for a similar man, to live here? Gen. MCINTYRE. Yes. Senator LIPPITT. Those salaries are not higher than paid in corresponding countries out there where they are controlled by foreigners-for instance, Great Britain. Gen. MCINTYRE. Not where the office is held by Europeans. Senator LIPPITT. By Europeans? Gen. MCINTYRE. Yes, sir. Senator LIPPTTT. Take the Governor General of Java. Does he not get a much higher salary than the Governor General of the Philippines? Gen. MCINTYRE. In general our salaries are lower than the colonial salaries for offices held by officers from the home country. And our salaries were based there on a somewhat different theory. They were based on the theory that the office called for the payment of such and such a salary and that salary was paid whether the office was held by an American or by a Filipino. Senator WALSH. I am not sure, Senator, that that is a very safe criterion, because as a general rule our salaries are less than salaries of like officers in the European countries. Senator WEEKS. That is true of the higher officers. Senator WALSH. That is what I speak of. Senator WEEKS. Not of the lower officers? Senator WALSH. No. Senator CRAWFORD. There is no reason why those salaries, for instance, should be higher than that of our minister to a foreign country of about the same standing, who had to be there as a representative of the United States and had to take his family there and live there? GOVERNMENT OF THE PHILIPPINES. 87 Gen. MCINTYRE. His duty is so much more serious than those of the minister. Senator CRAWFORD. They require more ability-administrative and executive ability? Gen. MCINTYRE. Altogether administrative and executive-much more exacting. And, of course, with reference to ministers, it has gotten to be quite generally understood that a minister must have a source of income other than his salary. Senator CRAWFORD. He is underpaid? Gen. MCINTYRE. Yes. Senator LIPPITT. He is supposed to be paid by the honor of his office. Senator WEEKS. Does the Governor General have any allowance? Gen. MCINTYRE. The Governor General has his house, and his house is largely furnished and lighted for him. He has an allowance of that kind, but there is no fund set aside for him. Senator WEEKS. Is it not very common with other countries to make an allowance for the Governor General for entertaining purposes? Gen. MCINTYRE. Yes. The Philippine Legislatiure, with reference to that, is very liberal.to the Governor General, and I think it is safe-to say it would make any allowance he requested. But our Governors General have generally felt indisposed to call on the legislature for these things, and as a result there has probably never been a Governor General who has not returned to the United States, notwithstanding his salary, at something of a financial loss from having held office. The CHAIRMAN. What is his salary? Gen. MCINTYRE. $20,500. That salary, however, was decreased. At the last legislature the Governor General had his own salary reduced in accordance with the general scheme of reduction. Senator WEEKS. That is 10 per cent? Gen. MCINTYRE. Ten per cent; yes. The CHAIRMAN. It is not provided for in this bill, is it? Gen. MCINTYRE. Yes; in the next to the last section of this bill. The salary is fixed at $18,000, and that is on page 26, section 27. Senator KENYON. Has he a summer palace and a winter palace? Gen. MCINTYRE. He has houses furnished him, and he has a house at Baguio. Senator CRAWFORD. It is on page 29 of this new bill. Gen. MCINTYRE. Yes. Senator CRAWFORD. $18,000 and occupancy of the buildings. The CHAIRMAN. Then that $18,000 is lower than it has heretofore been? Gen. MCINTYRE. That is lower than it has heretofore been and it corresponds to what was provided in the last appropriation bill of the Philippines. The CHAIRMAN. It is about the same as is now paid ambassadors to first-class countries? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. We had better get on to section 20. That provides for the election of Commissioners to the United States. Gen. MCINTYRE. Yes. That is a change from the existing law in this respect, that at present the Resident Commissioners are elected 88 GOVERNMENT OF THE PHILIPPINES. by the legislature, the two houses voting separately. This makes it an election by the people. The duties are the same as set forth in this bill. There is no change of the duties of the original commissioner, but simply in the method of election and in the term. At present he is elected for four years. This bill provides that the term shall be the same as that of a senator, and the election shall be once in six years, to correspond with the general elections of the islands. The CHAIRMAN. Commissioners, then, will be the only officers of the Philippine Government elected at large? Gen. MCINTYRE. Those two commissioners will be the only ones that are elected at large. The CHAIRMAN. The pay is the same as Members of Congress? Gen. MCINTYRE. Yes; the pay is exactly what is now provided by law. The CHAIRMAN. Do they have mileage the same as a Congressman? Gen. MCINTYRE. They receive a certain amount in lieu of mileage each year. The CHAIRMAN. That is not stated here. I suppose it has been provided by special act, because it is continued. Gen. McINTYRE. Yes: it is continued. But that is the present law. The CHAIRMAN. Take section 21 Senator WALSH. Really, the only essential difference, then, is in the manner of electing? Gen. MCINTYRE. The manner of electing and the term. Senator LIPPITT. What has been this sum in lieu of mileage? They receive the same salaries as Members of Congress, I suppose? Gen. MCINTYRE. Yes. Senator LIPPITT. That is paid by the United States? Gen. MCINTYRE. Yes; the Resident Commissioners are paid by the United States. Senator LIPPITT. And what sum is paid in lieu of mileage? Gen. MCINTYRE. I think it is $2,000. Senator WEEKS. Let me go back to page 17 to ask you one question, where it provides that all laws enacted by the Philippine Legislature shall be reported to the Congress of the United States, which "' hereby reserves power and authority to annul the same." Has there been any instance where any such action has been contemplated? Gen. MCINTYRE. I think perhaps in one bill that was introduced at one time, but it was never reported from the committee. No action was ever taken on it. Nothing has ever been done under that provision. Senator WEEKS. What do you think of the propriety of Congress annulling an act which has been passed upon by the Governor General and by the President, if there is any difference of opinion between the Governor General and the legislature? Gen. MCINTYRE. I think, Senator, this power is inherent in Congress and it can do this even though that is not embodied in the bill. It is in all Territorial acts. Senator CRAWFORD. We have always had it expressed in reference to Territorial acts by the Territorial legislatures. Gen. MCINTYRE. Yes. Congress can not divest itself of authority to legislate for those Territories. GOVERNMENT OF THE PHILIPPINES. 89 Senator KENYON. Should there not be some limit of time in which Congress could do that? Senator WALSH. You can not do that, Senator. * Senator KENYON. Why not? Senator WALSH. Congress has authority to annul at any time. One Congress can not tie the hands of another Congress. The CHAIRMAN. The next section relates to the executive power generally; is there anything in that? Gen. McINTYrE. The executive power at present is not formulated in a statute. The chief executive was made first president of the commission, the governing body, and later he was made Governor General to succeed to the authority of the military governor. And that was done by instructions of the President of the United States, which were afterwards ratified by Congress, so that there was no statutory formulation of the duties and authority of the chief executive and, in general, he has the power which is herein set forth. And in drawing this the Territorial laws have been very generally followed, and a part of this was taken altogether from the organic act of Hawaii. The CIaAIRMIAN. Of course, he now ceases to be a member of the commission? Gen. MCINTYRE. He now ceases to be a member of the commission. The CHAIRMAN. And is purely an executive officer? Gen. MCINTYRE. He is purely an executive. The CHAIRMAN. It might be more democratic to drop the word "general" and simply call him the " governor" now. Gen. McINTYRE. He had the title " civil governor" once, but it was changed to Governor General. Senator SHAFROTH. The circumstance that the various Provinces have governors would make it desirable that there should be a distinguishing title for the governor of the islands. Is he the chief of the military forces there? Gen. McINTYRE. Not of the United States military forces. Senator SHAFROTH. Of the Philippine Cofistabulary? Gen. MCINTYRE. Yes; he has control of the constabulary now, and it is given to him specifically under this bill. Senator WALSH. I call your attention to what seems to be a fault in this general grant of power: This section gives the Governor General power to grant pardons and reprieves and remit fines and forfeitures, and to veto legislation, and to call upon the commanders of the military and naval forces in the islands in cases of rebellion or insurrection, and so on; and then it gives him the extraordinary power, when the public safety requires it, to suspend the privileges of the writ of habeas corpusSenator LIPPITT. Where are you reading from? Senator WALSH. From lines 10 to 15, on page 22 of the bill: And he may, in case of rebellion or invasion, or imminent danger thereof, when the public safety rquires it, suspend the privileges of the writ of habeas corpus or place the islands, or any part thereof, under martial law: Provided, That whenever the Governor General shall exercise the authority granted in this section he shall at once notify the President of the United States thereof, together with the attending facts and circumstances. Of course, that refers to his suspending the writ of habeas corpus and declaring martial law; but that would require him to give notice 90 GOVERNMENT OF THE PHILIPPINES. of everything he does to the President of the United States; for instance, if he granted a pardon, he would have to report to the President that he had granted a pardon. That, of course, should be limited toSenator SHAFROTH (interposing). Suspending the habeas corpus. Senator WALSH (continuing). To the specific authority granted on this page. Gen. MCINTYRE. Yes, sir. You will notice that that proviso is new, and replaces the old words, "until communication shall be had with the President and his decision thereon made known." That was the form in the Hawaiian law, from which this was evidently copied, word for word. The CHAIRMAN. Would it not be well to incorporate there that whenever the Governor General shall exercise emergency authority he shall report it to the President? Senator SHAFROTH. You could repeat this language and make it clear; make it read: Whenever the Governor General shall suspend the writ of habeas corpus or place the islands or any part thereof under martial law, he shall at once notify the President, etc. Senator WALSH. You could make it very much briefer than that by saying, " That whenever the Governor General shall exercise the authority granted in the last above clause, he shall at once notify the President." etc. Senator SHAFROTH. I think it would be safer to repeat the words, and then you would be sure of it. Senator WALSH. Or the word "foregoing" could be inserted, so as to make it read, "That whenever the Governor General shall exercise the authority granted in the foregoing clause of this.section." Senator LIPPITT. Well, I suppose those are details of the bill that we will have to take up and consider at some subsequent time, anyway? Senator SHAFROTH. Yes; I think so. The CHAIRMAN. Will you take up the next section, Gen. McIntyre? Gen. MCINTYRE. Section 22 in this bill is entirely new and is intended to cover the change from the present form of the upper house and heads of the executive departments to the new form. The CHAIRAXN. Does that mean that the Philippine Legislature can change the duties of the executive officers? Gen. MCINTYRE. The heads of the executive departments; yes, sir. Under this act, that authority is given the legislature. The CHAIRMAN. Of course, that does not relate to the powers of the governor? Gen. MCINTYRE. No, sir; it does not relate to any power that is specifically prescribed in this bill. The CHAIRMAN. The executive departments are those that are under the Governor General? Gen. MCINTYRE. Yes, sir; they are under the Governor General. Senator LIPPITT. Does that mean that he can abolish the executive departments entirely? Senator WEEKS. It says so in lines 16, 17, and 18. Senator SHAFROTH. That means just as to the commission part of it; but the legislature may thereafter abolish executive departments. GOVERNMENT OF THE PHILIPPINES. 91 Senator WALSH. That part of the act would have to be approved by the Governor General or passed over his veto, and if passed over his veto must have the approval of the President of the United States? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. How many of those executive departments are there now? Gen. McINTYRE. Four. The CHAIRMAN. Will you name them, for the record? Gen. MCINTYRE. The secretary of finance and justice, the secretary of commerce and police, the secretary of public instruction, and the secretary of the interior; those are the four executive departments. The CHAIRMAN. How about agriculture? Gen. McINTYRE. Agriculture has never been a separate department; it is a bureau. Senator SHAFROTH. It is in the interior department, is it? Gen. MCINTYRE. It was formerly in the interior department, but two or three years ago they put it in the department of education. The CHAIRMAN. Those departments would remain with their present authority as now existing, except that the heads of them would have no right to sit in the upper house, would they not? Gen. MCINTYRE. Yes; the heads of them would have no right to sit in the upper house unless that is given; the Philippine Legislature is authorized to give seats in one or both houses, with or without the right of voting, to the heads of those departments. This bill authorizes the legislature to do that. The CHAIRMAN. That is in an earlier provision of the bill, is it? Senator LIPPITT. That is at the bottom of page 23 in the section we are now considering. The CHAIRMAN. Yes; I see. Does that mean that the legislature can create as many departments as it pleases, and give the head of each of such departments a seat in the legislature with the power of voting? Gen. MCINTYRE. They would have that power, but always subject to the usual methods of enacting laws; that is, it would have to be approved by the Governor General or the President. The CHAIRMAN. Then this limitation on the size of the legislature is not absolute; it could be changed by the legislature itself? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. SO that the size of either house could be changed? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. Well, let us take up section 23. Gen. MCINTYRE. Section 23 is new and provides that the President may designate the head of an executive department to act as Governor General in the absence of the Governor General. At present the vice governor does that, but under this bill there will be no permanent vice governor. The CHAIRMAN. In that case he would designate a Filipino to act as Governor General? Senator WALSH. NO. Gen. MCINTYRE. He could in case it were desired; or if there were an American at the head of an executive department, he could be designated. 92 GOVERNMENT OF THE PHILIPPINES. Senator LIPPITT. He could only designate a Filipino in case he was the head of an executive department? Gen. MCINTYRE. Yes, sir. The CHAIRMxAN. The Governor General has the power to appoint the heads of the various departments, has he not? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. But thev are subject to confirmation by the Philippine senate, are they not? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. Now, it has been said that, if all of the appointments of the Governor General are subject to confirmation by the Philippine senate, it practically places the senate in a very strong position there; and an expression was used by somebody that, in view of that provision, " the senate would trade the Governor General out of all his power." What have you to say as to that? Gen. MCINTYRE. Well, that is a question that you gentlemen are more familiar with than I am. [Laughter.] Senator SHAFROTH. There is not much trading here, is there? [Laughter.] Gen. MCINTYRE. That is the customary provision; and under this bill, Mr. Chairman, the Governor General has immense power, and if he exercises his power with discretion, I feel that he would have no trouble in having his appointees confirmed. At any rate, they hold office from the date of appointment until the end of the next session, unless they are rejected; and with the sessions once a yearthe sessions heretofore have been 90 days; under this bill they may be longer-the Governor General would be practically in a position to have all of these offices filled by his own appointees, in case the senate attempted to make his power of selection of no value. And then, of course, under this law we can have recourse to Congress; Congress is not depriving itself of the right hereafter to amend the law so as to meet any condition which may be created. Senator WALSH. Let me inquire, as a matter of practical politics, does that mean that the heads of these departments will always be Filipinos, or do you imagine that the Governor General will designate Americans, and that the Americans will be confirmed by the senate? Gen. MCINTYRE. I think he will designate some Americans and some Filipinos. At present there are four heads of departments, three Americans and one Filipino. Senator WALSH. But that i because the appointment is here? Gen. MCINTYRE. Yes. And hereafter I think the number of Filipinos would under this bill gradually be increased; perhaps at first the number might be two and two. I do not think the Filipinos want all of the offices; I think they are perfectly willing to have certain offices continue in the hands of Americans. We had an example of that very recently, in the case of the director of health. The director of health is an American, an officer of the United States Public Health Service. He came to the United States on a prolonged leave recently, having been over there a great many years without any leave. His assistant was a Filipino, a very excellent man; and under the law it would fall to him to be the head of that bureau, the bureau of health of the Philippine GOVERNMENT OF THE PHILIPPINES. 93 Islands; but he asked that an American be assigned to the head of the department, and that was done with the concurrence of the commission, which is now in its majority Filipinos; an American Army officer could not be assigned under the law to the office; but he was placed in an advisory capacity, in charge of the office, an officer of the Army Medical Corps; and it operated in that way until Dr. Heiser returned to the islands. Senator LIPPITT. What was the particular motive that induced that desire for the selection of an American? Gen. MCINTYRE. Well, I think the Filipino assistant was moved by two causes; in fact, it was so stated at the time. The first was the fact that the American would be a man of greater technical knowledge and experience, and the second was that the health matter in 'the Philippine Islands is largely a matter in which we are interested as a Nation, and that he thought that we would have more confidence in the execution of the duties of the office if we had an American in the office. Those were the two reasons given. Senator LIPPITT. I suppose the health officer is more or less of an unpopular person in many communities out there? Gen. MCINTYRE. That has been the case; yes. Senator LIPPITT. And perhaps it is a little easier for an American to exercise that sort of a function than for a native to exercise it, who would be closely connected by family ties and otherwise to the people of the islands? Gen. MCINTYRE. That is undoubtedly true. Senator LIPPITT. Did that have something to do with it? Gen. MCINTYRE. Well, that was not given as a reason, and the two reasons which were given seemed rather conclusive, and I did not go beyond them. The CHAIRMAN. The head of an executive department can only become a temporary Governor General? Gen. MCINTYRE. Yes; temporary Governor General. The CHAIRMAN. Is there anything in this bill which prevents the President from nominating a Filipino as Governor General? Gen. MCINTYRE. Nothing whatever. The CHAIRMAN. Then we come to the twenty-fourth section of the bill, which relates to the judiciary. Gen. MCINTYRE. That is the law at present; it is contained in section 9 of the organic act; the changes made are only in form; that is, where the old law says, "heretofore provided by the Philippine Commission " it is changed to the words "now provided by law"; and then there is a final clause added-as a precaution, as far as I can see. I think that last clause is really out of an excess of precaution. Senator CRAWFORD. The provisions as to those judges of the court of first instance have not been changed; that is the law now, is it not? Gen. MCINTYRE. That is the law now. Senator CRAWFORD. They are appointed by and with the consent of the senate of the Philippines? Gen. MCINTYRE. Yes. That has been by the commission; and hereafter it will be the senate. Senator CRAWFORD. Yes; hereafter it will be the senate. 94 GOVERNMENT OF THE PHILIPPINES. Senator WALSH. This section provides thatThe court of first instance of the Philippine Islands shall possess and exercise jurisdiction as heretofore provided and such additional jurisdiction as shall hereafter be prescribed by law. Apparently, then, the Philippine Legislature can confer additional jurisdiction on those courts? Gen. MCINTYRE. Yes; it can confer additional jurisdiction. Senator WEEKS. When those courts wvere organized, several of the appointees were residents of the United States who had had no experience in the east. Are there American lavwyers now at Manila, or in the principal places in the islands, who are competent and at the same time are known to the people there, so that they would be likely to be confirmed by the legislature if they were appointed? Gen. MCINTYRE. I think so. We had a very fair test of that recently. At the last session of the legislature an act was passed, reorganizing the judiciary; that is, in so far as these lower courts were concerned; and it vacated all of the appointments, so that the judges had to be reappointed; and the Governor General reappointed every judge on the bench, and of the new judges he appointed some were Filipinos and some Americans. The number was increased somewhat by that act. Senator SHAFROTH. How many Filipinos are now on the supreme court bench? Gen. MCINTYRE. On the supreme court bench there are three Filipinos. Senator SHAFROTH. Out of seven? Gen. MCINTYRE. Yes; out of seven. Senator SHAFROTH. And how many judges of the court of first instance are Filipinos? Gen. MCINTYRE. There are 22 Filipinos and 14 Americans at present. Senator SHAFROTH. The municipal courts of the islands, I presume, are presided over entirely by Filipinos? Gen. MCINTYRE. There are some few exceptions, but generally speaking they are all Filipinos. The CHAIRMAN. Do you agree with the statement that the Filipino is peculiarly adapted to the legal profession? Has he made more of a success in that profession than in any other profession he has entered? Gen. MCINTYRE. I think that is largely true, because he has taken more to that profession, and has had more opportunities in that profession. The CHAIRMAN. They have made more progress in that profession, have they, than in medicine and surgery, for instance? Gen. MCINTYRE. I think so, although there is a very good medical college in Manila, and some of their young men are progressive and are making considerable advance. But the number of lawyers among the Filipinos is far in excess of the number of doctors, although I think the disproportion is decreasing somewhat. The CHAIRMAN. Under their present system there is no American jury trial? Gen. MCINTYRE. No, sir. The CHAIRMAN. In what cases do they have jury trials? You spoke of that. GOVERNMENT OF THE PHILIPPINES. 95 Gen. MCINTYRE. In the city of Manila and some other cities they have what is called " assessors," or lay judges of the facts, who sit with the presiding judge and advise as to the facts in the case. But that is not of general operation in the islands. I referred to that the other day in this way: When it was suggested that there was no jury system, I spoke of the fact that they had never contemplated that in their own laws, and that when they had taken the question up they met it in this way by providing these two lay judges rather than by following our methods. Under this bill, while there is no jury system, the Philippine Legislature has full authority to adopt that, if it is desired. The CHAIRMAN. Can the decisions on the facts made by these assessors be overruled by the presiding judge? Gen. MCINTYRE. My impression is that they can be. I would not answer that offhand without reading the law: The duties of assessors in trials in courts of first instance are "to sit with the judge upon the trial of an action and to advise him in the determination of all questions of fact involved therein." The responsibility for final decision of any question of fact rests with the judge; but if both assessors disagree with the finding of the judge, they may certify the question to the supreme court for review. The CHAIRMAN. They are really virtually referees in the matter? Gen. MCINTYRE. Yes; referees. The CHAIRMAN. Then a judge can try a man for murder and sentence him to death? Gen. MCINTYRE. Yes, sir; but with reference to the power of judges of courts of first instance to sentence a man to death, the code of criminal procedure requires that in all cases in which the death penalty is imposed the record shall be sent up to the supreme court for review and judgment. Senator WALSH. Well, they have never known jury trials in their system at all, have they? Gen. MCINTYRE. No; there is no jury trial in their system. The CHAIRMAN. We will proceed to section 25. Gen. McINTYRE. That is identical with section 10 of the Philippine organic act at present, with the exception that the present ground of appeal in causes in which the value in controversy exceeds $25,000 has been stricken out; so that there is no appeal based on the amount in controversy. That is the only change in that from the present law. Senator CRAWFORD. That means, - then, that appeals are allowed from all final judgments, without reference to the amount, does it? Gen. MCINTYRE. No; it means that no appeal can be taken based on the amount, where it is not justified on one of the other grounds. Senator CRAWFORD. But if the other ground exist, then the mere fact that the sum involved does not reach a certain amount does not affect the jurisdiction? Gen. MCINTYRE. That is correct. Senator CRAWFORD. That is what I meant. Senator SHAFROTH. Can you tell me whether there have been many appeals from the Philippine courts to the Supreme Court of the United States? Gen. MCINTYRE. Under this clause that is omitted? 96 GOVERNMENT OF THE PHILIPPINES. Senator SIAFROTH. Yes: under the clause that is omitted in this bill. Gen. MCI:NTYRE. I looked that up when it was before the House; and I found that there had been 17 appeals, and in 16 of them the decision of the Supreme Court of the Philippine Islands were sustained; but there have been 17 appeals altogether. Senator LANE. What was the nature of the cases, in general? Gen. MCIlNTYRE. Well, they were cases as to the ownership of property; they were civil cases generally. Senator LANE. I was wondering if this would not work a hardship upon the Filipino, inasmuch as, if he wanted his case appealed to the Supreme Court of the United States, he would have to come over here. Perhaps he might have a suit with an American citizen; I think it would involve a greater hardship upon the Filipino in that case. You say that does not discriminate against them? Gen. MCINTYRE. No. Senator WALSH. I think the language in lines 21 and 22, on page 25 of the bill, does not convey the idea that was intended to be expressed. It says: Andl prolceelings 1now p;edling liereiln or hereafter determined thereby in which the Constitution or any statute, treaty, title, right, or privilege of the United States is involved. I take it that that means where the Constitution or any statute or treaty of the United States is involved, or where any title, right, or privilege under the Constitution, or under any statute or treaty of the United States, is involved. I can not conceive that it means a privilege of the United States. Gen. MCINTYRE. No. I think there is an omission. Senator SHAFROTH. The only question is whether under the fourteenth amendment you would not get pretty nearly everything that is given here. Senator WALSH. That is the basis of the jurisdiction of the United States Supreme Court now upon writ of error to a State court; that is, where a title, right, or privilege under the Constitution, or under a statutory provision or treaty of the United States, is involved. The CHAIRMAN. That ought to be made more definite. Senator SHAFROTH. Yes; it seems to me it ought to be made more definite. Senator WAxLSH. That language does not convey the idea that the framer of it had in view, apparently. Senator SHAFROTH. I suggest that you look up the question of the United States appeals from the Philippine Islands. Gen. MCINTYRE. This is the same language; this does not give them any additional right of appeal. Senator SHAFROTH. Well, you have cut out the provision as to $25,000. The CHAIRMAN. As I understand it, heretofore a case if it involved $25,000 could be brought up here on that ground. Senator LIPPITT. And this changes that. The CHAI MAN. Hereafter the mere amount of money will not be a cause of appeal. Senator SHAFROTH. Yes; I see. GOVERNMENT OF THE PHILIPPINES. 97 The CHAIRMAN. Is there any other way of bringing a case to the Supreme Court of the United States from the Philippine Islands except by appeal? Senator CRAWFORD. Either appeal or writ of error. The CHAIRMAN. I mean, would there be under this provision? Senator WALSH. No; but the jurisdiction of the Supreme Court of the United States is given by this act. Senator SHAFROTH. And this section says: Under the same regulations and by the same procedure, as far as applicable, as the final judgment and decrees of the district courts of the United States. The CHAIRMAN. We will proceed to section 26. Gen. MCINTYRE. That is practically section 74 in the present organic act. The principal change is one in form, where the word concessions" was stricken out, generally, although by error it was allowed to remain in one place in this section. The CHAIRMAN. The word " privileges " was also stricken out? Gen. MCINTYRE. Yes, sir. There is one provision of that which has created a difficulty-I have no recommendation or suggestion to make as to it-and that is the requirement "shall forbid the issue of stock or bonds except in exchange for actual cash "Senator LIPPITT. Where is that? Gen. MCINTYRE. At the beginning of line 4, on page 25, in the old print of the bill. Senator LIPPITT. What section? Gen. MCINTYRE. Twenty-six. Senator SHAFROTH. Will you read that provision, please? Gen. MCINTYRE (reading): That all franchises or rights granted under this act shall forbid the issue of stock or bonds except in exchange for actual cash or for property at a fair valuation equal to the par value of the stock or bonds so issued. Senator SHAFROTH. I think that is a good provision. Gen. MCINTYRE. The difficulty of that in its application, Senator Shafroth, was this: That we require the Government-aided railroads in the Philippine Islands to issue a 4 per cent bond, the interest on which is guaranteed by the Philippine Government, but the principal is not. Those bonds could never be sold if they were required to get par for them; the bonds could not be sold under that provision. Senator SHAFROTH. Well, ought not the legislature of the Philippines to forbid that, then? Gen. MCINTYRE. The difficulty is that this, being in the Constitution, they could not change it, and yet one one would pay par for such a bond. Senator SHAFROTH Well, why can not the issuance of 5 per cent or 6 per cent bonds be authorized? Gen. MCINTYRE. Well, you see, under that railroad act it was provided that that 4 per cent interest should be guaranteed; it would be very difficult to arrange a bond issue --- Senator LIPPITT (interposing). The bond is guaranteed by the United States Government, is it? Gen. MCINTYRE. By the Philippine government. 73560-14 —7 98 GOVERNMENT OF THE -PHILIPPINES. Senator LIPPITT. By the Philippine government as a 4 per cent bond? Well, that was based upon a law that we passed here, was it not? Gen. MCINTYRE. Yes, sir; that is a law of Congress. Senator LIPPITT. That is a law of Congress; so that you have got to come back to the Congress of the United States in order to change that provision? Gen. McINTYRE. Yes, sir. Senator SIIAFROTH. Well, I would not want the whole provision stricken out because of one exception, anyhow. Gen. MCINTYRE. Well, I do not suggest any change. I simply mention that as being a difficulty. The CHAIRMAN. A good many of those bonds have been sold, have thev not? Gen. McINrTRE. Yes, sir. T1e CHAIRMAN. Who have been purchasers? Gen. MCINTYRE. They have been sold to the public, in so far as they have been sold; but they have not been so generally sold as you might think, because the companies have tried to hold them-or the people who built the road; the price was disappointing to them. They built those roads expecting that that 4 per cent guaranty by the Government as to interest would make the bonds bring about 95. The bonds did for a short time; but they fell very much below that; so that in order to avoid great loss, they have held the bonds themselves, very largely. The CHAIRMAN. What market value have the bonds had? Gen. MCINTYRE. They have gone down to 85; and if they were forced to sell them at this time they would not get more than 60. The CHAIRMAN. Well, the law required them to be sold at par, did it? Geen. MCINTYRE. At par; yes, sir. The CHAIRMAN. So that the projectors of the road have themselves taken the bonds, have they? Gen. MCINTYRE. They have arranged to take them, and thereafter the sale would not be made by this company. It was an evasion really, but it was the only way in which the matter could be handled. The CHAIRMAN. So that the builders of the road and the owners of the stock have taken the bonds at par and placed them on the market below par? Gen. MCINTYRE. Yes, sir; that is practically what has happened. Senator SHAFROTH. Now, why is that an evasion? I do not see why, if the person took the bonds at par? Gen. MCINTYRE. I do not mean that it is a criminal evasion; I mean this law apparently contemplated that the bonds would be sold at par and that that amount of money would be placed at the disposition of the railroad. Senator SHAFROTH. Yes; but after they are once in the hands of third persons the law has no concern as to whether the bonds are at par or not? Cen. MCINTYRE. No. The CHAIRMAN. Possibly this has been the method used-were the roads built under contract? Gen. MCINTYRE. I can explain how one was conducted-and I think it is just what you have in mind: They formed a construction GOVERNMENT OF THE PHILIPPINES. 99 company, and the construction company, in payment of its work, received those bonds at par; they received the bonds from the railroad company at par, and thereafter the disposition of the bonds was a question for the construction company. The CHAIRMAN. And did the construction company bid correspondingly high, because the bonds were worth less than par, so that the road cost a little more than it would have cost if it had been paid for in cash? Gen. MCINTYRE. No; the concession was drawn a little too strictly for that; they could only issue bonds up to the amount which the Government found had been actually expended in the work, so that the government auditor and the government railway expert supervised the construction and supervised the accounts, and the projectors of the railroad simply lost, due to the fact that they could not dispose of their bonds to as good advantage as they had anticipated. Senator WEEKS. In reading that paragraph over, it seems to me that it is extremely drastic in its present form. Gen MCINVTYRE. Yes, sir. Senator WEEKS. And will prevent any development of publicservice corporations. I can not imagine why a man should go into a new country, a comparatively undeveloped country, and put his money into public-service securities controlled as closely as these are as to rate of interest and other provisions; he could do infinitely bet-. ter in the United States, anyway. And on that question of developing the Philippine Islands, if it is desirable to do it, there ought to be some latitude given for a possibility in some form of proft as a result of the venture; otherwise vou will not get the capital. The CHAIRMAN. Is there any limitation here upon the interest that can be paid on bonds? Gen. McINTYRE. No; the limit was fixed in the case I cited; it was fixed at 4 per cent on the bonds, because that was the amount which the government was guaranteeing. But, generally speaking, a private corporation could issue its bonds at a higher rate of interest. But, of course, there might be difficulty about earning a higher rate, if a sufficient amount of bonds were issued to carry out the proposition. The CHAIRMAN. Well, Senator Weeks, would you not be in favor of some protection in a fundamental law of this sort? Senator WEEKS. Oh, yes; I would be. Senator SHAFROTH. Where is your limitation on the amount of interest on such bonds? Senator WEEKaS. I think I should want to give some study to that whole question, Mr. Chairman. We have placed in this country in some cases limitations which have operated differently from what people supposed would be the case. For instance, you will find that in the State of Missouri the stocks of railroads are very small as compared with their bond issues. The reason of that is that the law of that State provided that stock could only be sold at par, and it has not been possible to sell the stock at par for a long time; so that the only railroad securities have been bonds. We have had in Massachusetts very careful limitations of the issuance-of securities; but even in an old section like that I am inclined 100 GOVERNMENT OF THE PHILIPPINES. to think that the limitations have been quite as strict as have been to the best interest of the State. I think there ought to be limitations; but they should be sufficiently liberal to enable the development which you are seeking; and I do not believe you could obtain the development under such strict limitations. Senator BRISTOW. Well, these strict limitations refer only to bonds the interest on which is guaranteed by the Government, as I understand. Senator WEEKS. No. Senator LIPPITT. NO. Senator BRISTOW. I think those limitations apply only on the bonds which are guaranteed. Senator WEEKS. No; I think this limitation applies to all issues of bonds. Gen. MCINTYRE. Yes, sir; this applies to all bonds. Senator BRISTOW. Whether guaranteed or not? Gen. MCINTYRE. Yes; I brought up that case of the railroad bonds because there was this restriction here on price and in addition there was the restriction that it must be a 4 per cent bond. Senator BRISTOW. Let me ask you this question: Suppose a publicservice corporation should issue $10,000,000 of bonds, and the interest should be guaranteed by the Government, and it should be a 4 per cent bond. Now, do I understand that it can not issue any other bonds for any other purpose drawing more than 4 per cent? Gen. MCINTYRE. No; the requirement of that railroad act was that those railroad bonds should be first-mortgage bonds, and that any bond issued thereafter by the railroad company would be a second mortgage; in fact, they would be a third mortgage, because the money advanced by the Government under the first mortgage, under its guaranty, becomes in effect a second mortgage upon the property, and any bonds that would thereafter be issued by the company would come after that. Senator BRISTOW. Well, they are really a second mortgage, because the first mortgage and the guaranty on it would together constitute a first mortgage. Gen. MCINTYRE. Yes; they are second-mortgage bonds. Senator BRISTOW. Now, these second-mortgage bonds could draw a higher rate of interest? Gen. MCINTYRE. Well, there is no limitation under the law. Of course they would, under the Philippine law, have to be submitted to the public-utilities commission. Senator LIPPITT. But they could only be sold at par? Gen. MCINTYRE. They could not be sold at less than par. Senator BRIsTOw. They could not be sold at less than par, but they could pay more than 6 per cent. Senator CRAWFORD. They could only issue a bond at a rate of interest which would enable the bonds to be sold at then par value. Senator BRISTOW. The value of the bonds, then, would depend upon the rate of interest and the ability of the corporation to pay them? Gen. MCINTYRE. Yes; that would be the effect of it. Senator WEEKS. A second-mortgage bond is not going to be a very attractive security, when the first-mortgage bond is selling at $60? GOVERNMENT OF THE PHILIPPINES. 101 Senator LIPPITT. And there, you have the Philippine Government back of it, in addition to the property. Senator BRISTOW. You are not claiming that you could not get men to go into the enterprise, are you? Senator WEEKS. Well, a man to go into that kind of an enterprise must have more than the ordinary interest profit, or he will not do it. Now, I believe in regulation or restriction in these matters; I would not want to be a party to making it possible for anybody to go in and exploit the public-service corporations of the Philippines. But it is useless to place around the issuing of securities such restrictions as will prevent capital from going in under the conditions proposed. Senator BRISTOW. Of course. I can see that a second mortgage would go slowly, if there was any doubt about the payment of the interest on the first mortgage. Senator WEEKS. It would not go at all. Senator SHAFROTH. Is there an act which permits any corporation to get these guarantees by the government? Gen. MCINTYRE. No. Senator SHAFROTH. Only that case that you have referred to? Gen. MCINTYRE. Yes; and that is over now. Senator LIPPITT. It was only to develop certain railroad construction? Gen. MCINTYRE. Yes. Senator SHAFROTH. Well, if that is over and applies only to the one instance, it seems to me that it would be all right to let these corporations that want to issue their bonds at a higher rate of interest in order to bring par do so. Senator LIPPITT. That would be a very expensive thing to do. Senator WEEKS. You must remember that the rate of interest on public-utility corporations is likely to be high for a very long time in this country. The money which will go to the Philippines for public-service corporations is very largely coming from the United States, and we have to govern conditions by the conditions in this country; and the business of obtaining money on public-service corporations is a very difficult one now, and is likely to be for some time to come. I simply make this comment now, to be considered later, that we have to make these provisions sufficiently liberal to attract capital, or they are not going to get the capital. Senator SHAFROTH. Well, if you make the provisions too liberal we are running the risk of permitting large amounts of watered stock, which has been the curse of our country. Senator WEEKS. Yes; it has been the curse of the country in many instances; but if we had not had watered stock in some cases, we would not have the development of this country that we now have. Senator BRISTOW. Yes; and we would not have had the scandals either; if the railroad securities had been properly handled from the beginning, there would not be the tremendous losses that the stockholders of those railroads have had. The CHAIRMAN. That practically finishes going through the bill, Gen. McIntyre. There was some special information on several subjects which you were going to furnish; that information will be incorporated in the record as a part of your remarks? Gen. McIlhTYRE. Yes, sir. 102 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. Have you any recommendations that you care to make Gen. McINTYRE. Yes, sir. The department has certain recommendations to make for changes in this bill. The bill, in so far as it is an operative measure, has been studied by the department from its inception. We have been permitted to go over it in several of its previous forms; and we believe that the bill is now a conservative and excellent measure, and that it will be to the advantage of the Philippine government if it can be passed. The suggestions or recommendations are the following: In the bill of rights, in order that there may be no question between the Governor General and the legislature as to a matter which may excite considerable feeling, it is desired that a provision be inserted that no law shall be enacted which shall make a distinction between citizens of the Philippine Islands and citizens of the United States; the object of that being that if American citizens are living in the islands they shall be entitled to the right, as to holding office and voting, that citizens of the Philippine Islands have. The CHAIRMAN. Have they that right under this act? Gen. MCITTYRE. They have that right at present, and it is desired that it be continued. Senator WEEKS. Do they exercise it now? Gen. MCINTYRE. Those who have the necessary residence and are in business do. A great many of the Americans who are there are simply — Senator CRAWFORD (interposing). Is that suggested as an amendment Gen. MCINTYRE. That would be an amendment to the Bill of Rights. Senator WEEKS. Does that apply to the officers and men of the United States Army and Navy? Gen. MCINTYRE. The officers of the Army and Navy are excluded from any right of voting: and it is also provided in the law there that they can not acquire the status of residence by being on military duty in the islands, and that would be continued with reference to them even though we had this provision in this bill. The CHAIRMAN. Have you drafted such an amendment, Gen. McIntyre? Cen. MCINTYRE. I have, and will submit it. The CHAIRMAN. Will you incorporate it in your testimony at this point? Gen. McINTYRE. I will do so. (The proposed amendment is as follows:) That no law shall be enacted which shall make a distinction between citizens of the Philippine Islands and citizens of the United States. The CHAIRMAN. What is the other amendment you desire to suggest Gen. MCINTYRE. The other amendment was to section 11, the proviso, with reference to the Jndebtedness of the Philippine Islands. It is desired to modify that in this way: Provided, That the entire indebtedness of the Philippine Government created by:the authority conferred herein shall not exceed at any time the sum of $17,000,000. That is the limit fixed in the bill; so as to that there is no change. GOVERNMENT OF THE PHILIPPINES. 103 Nor that of any Province or municipality is sum in excess of 7 per cent of the aggregate tax valuation of its property at any one time: Provided, however, That within the limits thus fixed the Philippine Government may make loans to Provinces and municipalities, and may, on the evidence of such loans, issue bonds to the amounts thereof, without reference to the limitation therein fixed to the indebtedness of the Philippine Government. I will say that the object of that is that many of the small municipalities need money for development, and it is not practicable for them to issue bonds; this provides that the central government may advance that money to the municipality, and to the amount thus advanced may issue its own bonds. The CHAIRMAN. Now, how great an insular debt would that possibly permit; in other words, what would 7 per cent on the assessed tax valuation amiount to? Gen. MCINTYRE. If I may do so, I will put that in exactly, because I have here assessed valuation, but I could not give it offhand. (The statement is as follows:) The taxable value of the real estate in the city of Manila is, in round numbers, W0,000,000. This provision would limit the indebtedness of the city of Manila in future to P6,300,000 ($3,150,000), but inasmuch as the city of Manila has an indebtedness of $4,000,000 contracted for sewer and waterworks bonds issued under the authority of section 70 of the organic act, its limit of indebtedness would not be increased by this bill until its tax valuation had very considerably Increased. Including the city of Manila, the tax valuation of taxable property is P303,000,000 ($151,500,000) and the limit of indebtedness of Provinces and municipalities under the bill would be $21,210,000. This is assuming that every Province and every municipality would borrow up to the limit fixed in the bill, which is not at all likely. Senator CRAWFORD. Then, the municipalities, in order to pay back the Philippine Government, of course must resort to local taxation? Gen. MCINTYRE. Yes; the local taxation will pay that. Senator CRAWFORD. Well, do they absolutely control that question locally, the question of their levies, etc., to pay that with Gen. MCINTYRE. There is immediately following and made a part of this general recommendation a provision that the central government shall authorize the tax, and see that it is properly applied. In fact, that is the present law. The only present difficulty is this: The Philippine Government has now loaned money to Provinces and municipalities; it has now outstanding slightly less than '7,000,000; and of course that means just so much money taken from the central treasury; they can not issue bonds against that at all. This provision would enable them to issue bonds to that amount, and have that money available for the purposes of the Government. Senator SHAFROTH. The power of getting the money back into the central treasury then is within the power of the central government itself? Gen. MCINTYRE. Yes; the central government. Senator SHAFROTH. Without the consent of the local government? Gen. MCINTYRE. Yes. Senator SHAFROTH. I should think it would have to be that way, or you would not get your money. Gen. MCINTYRE. Well, they have it that way. The central government is, under section 69 of the organic act, authorized to impose taxes; in fact, the obligation to see that the municipalities meet their 104 GOVERNMENT OF THE PHILIPPINES. indebtedness is placed on the central government, and with that obligation there is the power to do that. Senator WALSH. What provision is there for supervision over the expenditure of moneys thus loaned? Gen. MCINTYRE. I come now to a recommendation here that the President appoint an auditor for the islands, and that the auditor shall have Senator WALSH (interposing). That would be simply a matter of checking up; but I am speaking ofGen. MCINTYRE (interposing). Well, under the law, if a municipality borrows money for public works, which is usually the basis of those loans-and, of course, it has to be by local authority-the expenditure is under the bureau of public works of the central government. Senator CRAWFORD. I suppose the Philippine Legislature could enact a law to control the details; that would be within its power of regulation? Gen. McINTYRE. Yes, sir. The CHAIRMAN. Is there any limit to the rate of interest which the Philippine Government can pay on its bonds? Gen. MCINTYRE. On certain issues a limit was placed in the past and the limit was 4i per cent. But all Philippine government bonds heretofore issued have been 4 per cent bonds; and they have sold as high as 109 and never so low as par. They have usually ranged from about 102 to a maximum of 109 and a fraction. The CHAIRMAN. Is there a limit in this bill? Gen. McINTYRE. There is no limit as to the interest. The CHAIRMAN. As the debt increases, therefore, the Philippine Legislature may increase the rate of interest if it finds it necessary to do so? Gen. MCINTYRE. This authorizes a maximum increase of $5,000,000 over what there is now-$17,000,000. You see, they now have outstanding $12,000,000; the maximum here is $17,000,000. That is the minimum; we would like to have the authority greater; because in addition to the restriction in this bill we put in the restrictions that now exist, that no issue of bonds shall be made, except with the prior approval of the President, so that before the Philippine Government can issue bonds their legislature must pass a law, which must be approved in the way provided, and that law must receive the specific approval of the President. The CHAIRMAN. Well, it is an act of Congress which now limits the interest to 41 per cent, is it not? Gen. MCINTYRE. Yes, sir. The CHAIRMAN. And will that still continue if this bill is passed Gen. McINTYRE. No, sir; it will not, because that law was with respect to a special issue; so that if this bill is passed, there will be nothing to limit the rate of interest the Philippine Government might pay on its bonds. The CHAIRMAN. Do you not think, in view of the large issue your proposed amendment would provide for, that under the natural pressure there would be from the municipalities to secure government credit there ought to be some limit on the interest which the government can pay? GOVERNMENT OF THE PHILIPPINES. 105 Gen. MCINTYRE. This would seem to indicate the possibility; but it has not occurred. Those municipalities, as a matter of fact, practically owe now to the central government all that this law will permit them to borrow, and this has more in mind the authority to the central government to issue bonds to the amount of 17,000,000 ($3,500,000) which they have loaned to the municipalities and Provinces. So this would not mean any large amount. The CHAIRMAN. It occurs to me that 7 per cent of the assessed valuation of the municipalities would be, in the aggregate, a very jarge amount. Gen. MCINTYRE. It would, except that the tax valuation is surprisingly small in the Philippines. The CHAIRMAN. What per cent of the real valuation is the assessed valuation? Gen. MCINTYRE. Well, there is no percentage fixed in any way; but in the sales of property it is frequently to be noticed that in purchasing rights of way for railroads and other investments that we have looked over you would have to pay five times the assessed valuation of the property in order to get it. Senator WEEKS. That is not unusual in the case of railroad rights of way, it is? [Laughter.] Gen. MCINTYRE. And that is under the system of condemnation, appraised by local assessors. Senator BRISTOW. In Panama have we not paid five times as much as the lands are worth for any private purpose? Gen. MCINTYRE. I imagine we have. Senator WEEKS. Is there any provision for a sinking fund for these municipalities to pay off that indebtedness? Gen. MCINTYRE. Yes; the indebtedness which we have had up to the present. I have given the amount of the sinking fundSenator WEEKS (interposing). Well, you need not give it again, if it is in the record. I recall that in the case of the $7,000,000 of 'friar-land bonds there is a provision made for sinking funds. Gen. MCINTYRE. Yes; and in the $5,000,000 of public-works bonds there is a provision made, and there is a very considerable sinking fund in each case now. And then there is added this provision, which is in the present law: That all bonds issued by the Philippine Government or by its authority shall be exempt from taxation. That is, it is the tax-exemption provision from existing law. The bonds are probably tax exempt, anyway; that is, under existing law. But I mean, even if this were omitted, they would probably be tax exempt in the States and cities of the United States. But the advantage of having that in the law is that the government can sell them then as tax-exempt bonds and so certify. In case it is not in.the law, the government sells them, and then perhaps the broker who buys them sells them as tax exempt, basing his sale on the court decisions, which we have difficulty in doing, because that might be changed and there would be a claim against the government. Senator WEEKS. I have suspicion that it would be a great deal, wiser to make a provision for retiring a part of those bonds annually, instead of providing a sinking fund. I did not like the de 106 GOVERNMENT OF THE PHILIPPINES. scription of the use of that sinking fund very much. I think it would be a great deal wiser to retire bonds than to create a sinking fund. Senator SHAFROTH. We have found it the easiest way for our municipalities to make the bonds mature in different years after a certain period so that one-fifth or one-tenth would be retired in one year, and one-tenth the next year; and that saved the reinvestment of the sinking fund. Senator WEEKS. I do not think they sell quite as well in that case. Senator SirAFROTH. That depends on the length of time of the bonds; it can be done if it is not too short a time. The city of Denver makes a certain proportion of the bonds payable at the end of, say, 10 years, and at the end of those 10 years they will levy an assessment of one-fifth of the amount of the bonds, and so on, in subsequent years; so that in that way it causes no hardship. Senator WEEKS. Well, we ought to do everything possible to keep the Philippine people out of debt, and where it is necessary for public purposes, make ample reserves to meet that debt. The CHAIRMAN. You may resume your recommendations, Gen. McIntyre. Gen. MCINTYRE. Following that, there is a recommendation which is practically section 69 of the present law. That recommendation is as follows [reading]: That in case of the issue of bonds by any Province or municipality of the Philippine Islands, or in case of the issue by the Philippine Government of bonds based on loans from the Philippine Government to any Province or municipality in the islands, the government of the Philippine Islands shall, by the levy and collection of taxes on the Province or municipality, its inhabitants and their property, or by other means, make adequate provision to meet the obligation of the bonds of such Province or municipality, and shall create a sinking fund sufficient to retire them and pay the interest thereon in accordance with the terms of issue. That simply continues the power of the central government, which is responsible, to exercise the necessary supervision to meet the obligation; and it is the present law in that regard. The CHAIRMAN. Well, Senator Weeks's suggestion could be incorporated there, and instead of having a sinking fund those bonds could be retired piecemeal? Gen. MCINTYRE. There is one difficulty about being too specific in a law of this kind, that conditions may arise which would make one form of bond preferable to another; and before any issue is made this has to be gone into so carefully now; the local legislature and the Governor General and the President of the United States must approve before anything can be done, and, of course, that means approval on the best advice which is obtainable at that timeSenator WALSH. The idea of the chairman, I take it, is that the organic act should give to the legislature the right and power to provide for the application of the amortization principle, as suggested by Senator Weeks, rather than the accumulation of a sinking fund. Gen. MCINTYRE. Well, I think that is contained in here, but still 1 would not pass on that; I think perhaps this authority is sufficiently general for that. Senator BRISTOW. It might be sufficiently general for that, but Senator Weeks's idea was that it should be required. GOVERNMENT OF THE PHILIPPINES. 107 Gen. MCINTYRE. Well, it does not require it; that is clear. Senator WALSH. I did not understand that Senator Weeks suggested that that should always be done. Senator WEEKS. I did not want to lay down any hard and fast rule; but I think that should be done if possible. The CHAIRMANT. Senator Weeks was shocked to find that some of that sinking fund was invested in hotel bonds. Senator SHAFROTH. That is one of the difficulties of the sinking fund bond, that they nearly always have to get a lower rate of interest than they pay themselves, or else to invest in weak securities. Senator WEEKS. The best investment that anybody, whether a Government or an individual, can have, is to buy his own notes. Senator SHAFROTH. Yes; and it seems to me that that is the reason why you should have them mature at different times and pay them as they mature; that is the best way, I think. The CHAIRMAN. Have you any other recommendations, Gen. McIntyre? Gen. MCINTYRE. It is recommended that section 15 be omitted from the bill; that is the section which provides the qualification for voters; if enacted, it would make these changes in the electorate: First, it would deprive American citizens of the right to vote. Second, it would deprive those Filipinos who are not subjects of any foreign power, but who are not technically citizens of the Philippine Islands, under the present organic act, of the right to vote. Senator LIPPITT. Are there many of those? Gen. MCINTYRE. There are quite a number among the prominent Filipinos; those are the men who happen to be absent from the islands a good deal. Senator SHAFROTH. If this section 15 is stricken outGen. MCINTYRE (interposing). The present law is in the annotated bill; the present law follows. It does not make a great difference. The principal difference, as a matter of fact, is that under this the age is lowered from 23 years to 21 years, and those Filipinos who are able to read or write a native language may vote; at present not having other qualifications, they are excluded from the electorate. The CHAIRMAN. You do not mean to say that this bill excludes them? Gen. MCINTYRE. No; this bill lets them in. The CHAIRMAN. Yes. Gen. MCINTYRE. But the present law excludes them unless they have one of the other qualifications. Senator WALSH. I do not understand how you can assert that an American would not have the right to vote in the Philippines? Gen. MCINTYRE. You see it says " every male citizen of the Philippine Islands 21 years of age or over." Now, of course, the citizens of the Philippine Islands are defined by the present organic act, and the definition is very restrictive; so that it would exclude any American, and it would exclude a great many Filipinos. Senator WALSH. Would not that simply require a modification of the present definition of a male citizen, so as to include them? Gen. MCINTYRE. Well, I have mentioned the smaller objections, Senator Walsh; but there is one great objection: This would change the electorate very considerably. The election follows the passage 108 GOVERNMENT OF THE PHILIPPINES. of this bill rather promptly, and there would be considerable confusion; and for many reasons it would be better that the first election should be in accordance with the established law with which they are acquainted, and thereafter they have the power to amend the law themselves. This does not take away any power from the Philippine Legislature; it continues the power with them; they can amend it thereafter. Senator WALSH. That is the case, unless existing act, as undoubtedly is the case, defines who are electors. Gen. MCINTYRE. That is, the Philippine act. Senator WALSH. That is under the Philippine law? Gen. MCINTYRE. Yes, sir. Senator WALSH. That is, the present organic act imposes on the Philippine Legislature the power to prescribe qualifications for voters? Gen. MCINTYRE. No, sir; it does not; it was passed with the provision that the present municipal law in that respect should govern; that is, it made a part of the organic act the old provisions which had been drawn by the military government when municipal governments were first established in the Philippine Islands; and it made those provisions the permanent law; but the Philippine Legislature had not authority under the old act; under this bill that general authority is given; they could amend that. Senator WALSH. I see that. Gen. MCINTYRE. It comes from the fact that the Philippine Legislature is authorized under this act to amend any law applicable in the Philippine Islands which is not in conflict with this act. Senator LIPPITT. That is in the general powers? Gen. McINTYRE. That is in the general powers. Senator WALSH. Where do you find that Senator LIPPITT. In section 12: The general legislative power in the Philippine Islands, except as herein otherwise provided, shall be vested in the legislature. Is not that it? Gen. MCINTYRE. I think section 7 would more clearly answer the specific question-the first clause of section 7. Senator WALSH. That clearly refers to acts of the Philippine Legislature; that can not possibly refer to an act of Congress. Senator LIPPITT. Do I understand that you recommend that this amendment, which materially extends the franchise in the Philippine Islands, shall be stricken from the bill, and that the franchise shall be limited under this bill to the people who would now be eligible? Gen. MCINTYRE. For the first election. Under the terms of the bill, thereafter the Philippine Legislature is authorized to prescribe the qualifications. Senator LIPPITT. I understand that. But, so far as any action that is taken by Congress is concerned, your idea is that the franchise should not be extended at this time? Gen. McINTYRE. Should not be extended or modified at this time. Senator CRAWFORD. It all comes to this, that your recommendation is that we leave the electors defined just as they are now GOVERNMENT OF THE PHILIPPINES. 109 Gen. McINTYRE. Our recommendation is just to omit the entire section. Senator CRAWFORD. Omit the entire section; and then the Philippine Legislature can take care of the subject after the first election? Gen. McINTYRE. Yes, sir. Senator LIPPITT. As I understand this bill, there are two principal features in it: One is that it is proposed to make the method of enacting laws in the Philippines, by which an elected legislature takes the place of an elected lower house and an appointive upper house? Gen. MCINTYRE. Yes, sir. Senator LIPPrIT. That provision is still retained in this bill? Gen. MCINTYRE. Yes, sir. Senator LIPPITT. The other important provision in this bill as it came from the House was this section 15, that we are now talking about, and which very materially extended the franchises. Gen. MCINTYRn. Yes, sir. Senator LIPPITT. And you now propose that that change in the practice of the islands shall not be taken at this time? Gen. McIlTYRE. Yes. Senator LIPPITT. So that, in effect, the bill will then be left, so far as its broad general principles go, simply a bill which affects the construction of the legislature? Gen. MCINTYRE. Yes, sir Senator LIPPITT. IS not that about it? Gen. MCINTYRE. That is about it-except that you attach somewhat more importance to this section 15 than I do. I think that if these corrections were made; which may have been oversights, section 15 would not be such a radical change. But still, the desire of the department is to omit that. Senator LIPPITT. Do you mean to say that it would not increase materially the number of electors? Gen. MCINTYRE. Yes, it would. Senator LIPPITT. Then, it is a material change, if it would materially increase the number of electors? Gen. MCINTYRE. It probably would. Senator LIPPITT. I do not mean to exaggerate certain points, of course. Senator CRAWFORD. It would disqualify certain others? Gen. MCINTYRE. Yes, sir. Senator LIPPITT. It was not the number that will be disqualified that I was thinking about; it was the number to be brought into the electorate, and their responsibility for their duty. Senator WALSH. I do not follow that. Senator LIPPITT. Well, the present law is that nobody is eligible as an elector unless he can read and write Spanish or English. This new section provides that anybody is eligible for an elector who — Senator WALSH (interposing). I appreciate that; if it went into force now, it would affect it widely; but if it was omitted, if I understand Gen. McIntvre correctly, the Philippine Legislature could itself extend the qualifications. Senator LIPPITT. I am not talking about what may be done, I am talking about what actually would be done. Of course the power exists somewhere to extend that franchise; if it does not exist m the 110 GOVERNMENT OF THE PHILIPPINES. Philippine Legislature, it exists here in this Congress; but so far as what is actually done is concerned, that is quite materially different., I just wanted to have that clearly-understood. Gen. MCINTYRE. Yes, sir. Now, following section 23, it is recommended that three new sections be inserted, which would be numbered sections 24, 25, and 26. Senator SHAFROTH. Suppose you read them. Senator LIPPITT. I think it would be better for Gen. McIntyre to explain the intent of them without reading them. Gen. McINTYRE. All right. The first section, which would be section 24, provides that the President shall appoint an auditor, and gives to the auditor the power which the present auditor has in the Philippine Islands. It is practically putting in the organic act a provision of Philippine law governing the operations of the auditor. At present, under the Philippine law, the auditor is appointed by the Secretary of War with the concurrence of the commission. This: authorizes the President to appoint such an official: the auditor is given no power which he does not now have in the Philippines and there is no power taken away from him that he has now. Senator SrTAFROTH. I think this ought to be read into the record anyhow; and I think it would give us an idea of it now if you would read it. The CHAIRMAN. That may be incorporated in the record. Senator SHAFROTH. Yes; but if it is not read now we will be discussing something that we do not know about. Gen. MCINTYRE. The provisions of the proposed section 24 are as follows [reading]: SEC. 24. That there shall be appointed by the President an auditor, who shall examine, audit, and settle all accounts pertaining to the revenues and receipts from whatever source of the Philippine Government and of the provincial and municipal governments of the Philippines, including trust funds and funds derived from bond issues: and audit, in accordance with law and administrative retalations, all expenditures of funds or property pertaining to or held in trust by the government of the Provinces or municipalities thereof. He shall perform a like duty with respect to all government branches. Senator LIPPITT. What does that word "settle" mean in the beginning of that paragraph? Gen. MCINTYRE. That is the wording of the present law, and it means giving the man a clearance for his accounts. That is, if I have the disbursement of funds of the Government, I ultimately will get a certificate stating that my accounts have been examined and found correct; and I keep that and that is a settlement with the Government so far as that account is concerned. Senator LIPPITT. I see; it is the receipt of the Government showing that those accounts are audited? Gen. McITNTYRE. Yes. Senator LIPPITT. What does that mean? Is that a financial certificate of the honesty of the officer, so that his accounts can not be gone into again, if anything should come up in the future? Gen. MCINTYRE. It is usually a protection, because that is what a disbursing officer would hold finally. Of course, if a fraud were discovered afterwards, the matter could be gone into in the court; it is an administrative settlement of the accounts. Senator LIPPITT. It does not prevent further consideration by the courts? QOQVENPMEWT OF THE. PHILIPPINES. 1l 1 Gen. MCINTYRE. Oh, no. And then the section continues: He shall keep the general accounts of the government and preserve the vouchers pertaining thereto. It shall be the duty of the auditor to bring to the attention of the proper administrative officer expenditures of funds for property which, in his opinion, are irregular, unnnecessary, excessive, or extravagant. There shall be a deputy auditor appointed in the same manner as the auditor. The deputy auditor shall find such official papers as the auditor may designate and perform such other duties as the auditor may prescribe, and in case of the death, resignation, sickness, or other absence of the auditor from his office, from any cause, the deputy auditor shall have charge of such office. In case of the absence from duty, from any cause, of both the auditor and the deputy auditor, the Governor General may designate an assistant, who shall have charge of the office. The jurisdiction of the auditor over accounts, whether of funds or property, and all vouchers and records pertaining thereto, shall be exclusive. With the approval of the Governor General he shall from time to time make and promulgate general or special rules and regulations not inconsistent with law covering the methods of accounting for public funds and property, and funds and property held in trust by the government or any of its branches: Provided, That any officer accountable for public funds or property may require such additional reports or returns from his subordinates or others as he may deem neeess,.ry for his own information and protection. The decisions of the auditor shall be final and conclusive upon the executive branches of the government, except that appeal therefrom may be taken by the party aggrieved or the head of the dep. rtment concerned within one year in the manner hereinafter described. The auditor shall, except as hereinafter provided, have like authority as that conferred by law upon the several auditors of the United States and the Comptroller of the United States Treasury, and is authorized to communicate directly with any person having claims before him for settlement, or with any department, officer, or person having official relations with his office. As soon after the close of each fiscal year as the accounts of said year may be examined and adjusted, the auditor shall submit to the Governor General an annual reportSenator WALSH. This copy reads, "and the Secretary of War." Gen. MCINTYRE. Yes; it should be "and the Secretary of War." The copy that I have in some manner has that omitted; the report should be made to the Secretary of War also; that is the present custom. It is the present law also. I will read that paragraph again as it should be: As soon after the close of each fiscal year as the accounts of said year may be examined and adjusted the auditor shall submit to the Governor General and the Se:r- t:?arl of War an annual report of the fiscal concerns of the government, showing the receipts and disbursements of the various departments and bureaus of the government and of the various provinces and municipalities, and make such other reports as may be required of him by the Governor General or the Secretary of War. In the execution of their duties the auditor and the deputy auditor are authorized to summon witnesses. administer oaths, and to take evidence, and in the pursuance of these provisions may issue subpoenas and enforce the attendance of witnesses as now provided by law. The office of the auditor shall be under the general supervision of the Governor General, and shall consist of the auditor and deputy auditor and such necessary assistants as may be prescribed by law. SEC. 25. That any person aggrieved by the. action or decision of the auditor in the settlement of his account or claim. may, within one year, take an appeal in writing to the Governor General, which appeal shall specifically set forth the particular action of the auditor to which exception is taken, with the reason' and authoritiesrelied on for reversing such'decision. The decision of the Governor General in such case shall be final and conclusive. Senator WALSH. Well, that would seem to exclude the courts. 112 GOVERNMENT OF THE PHILIPPINES. Gen. MCINTYRE. That is in the auditing and accounting, just to the same extent as with our comptroller; this legislation is taken from that. I doubt if the courts are excluded by that. Senator SHAFROTH. You might just add, " subject to review by the courts." Senator WALSH. No; not "subject to review by the courts," because that would signify the same thing as "that there shall be an appeal." I do not see why you want that in there at all. Gen. MCINTYRE. " Final and conclusive "? Senator WALSH. Yes. Gen. McINTYRE. The object of that is administrative settlement; and the alternative would ordinarily provide for an appeal to the Secretary of War or to some persons outside of the islands; and it is desired to have the matter closed there. Unfortunately, we can not close it, in part anyhow. A man with some grievance will continue to go on with it; but the idea is to make an administrative settlement. Senator LIPPITT. I think that that ought to be "the decision of the Governor General shall stand as the decision of the auditor," or something like that. Senator WALSH. No; you have to go further: That the decision of the Governor General shall be final and conclusive upon the executive branches of the Government. Gen. MCINTYRE. Yes, sir. Senator WALSH. Now, that, it seems to me, would be all right. Gen. MCINTYRE. Yes, sir. Senator WALSH. And it seems to me that you should have that language here. Senator LIPPITT. That is what I mean-that the decision of the Governor General shall be the final decision of the Government. Senator WALSH. Yes; but you do not want to make it conclusive upon the courts. Gen. MCINTYRE. No. Senator LIPPITT. No; upon the administrative authorities. Why do you have that provision in there separately? Gen. MCINTYRE. The idea was to reenact this law which we had had in force for so many years. Senator LIPPITT. It is the same law; there is no reason for having a separate section, is there? Gen. MCINTYRE. No; it could be part of the same section. The CHAIRMAN. What you mean by that language is that the decision of the Governor General shall be final, so far as the administrative officers are concerned? Gen. MCINTYRE. Yes; so far as the administrative officers are concerned. And the next section which follows that immediately would be section 26, which would read as follows: SEC. 26. There shall be appointed by the President a director of civil service. Such director shall perform the duties now prescribed by law for the director of civil service of the Philippine Government, and no law amending the civilservice laws for the Philippine Islands shall be effective without the prior approval of the President of the United States. Senator WALSH. I do not think you ought to have that word "prior" in there. GOVERNMENT OF THE PHILIPPINES. 113 Gen. MCINITYRE. You want it to read " shall be effective without the approval of the President of the United States "? Senator LIPPITT. "Shall be effective until approved." Gen. MCINTYRE. Well, the theory, of course, is to protect the civilservice laws as they are at present. This recommendation was made a number of years ago, that the civil-service laws as established should come to the President to be approved or disapproved. The CHAIRMAN. Are those all of your recommendations? Gen. MCINTYRE. Yes; those are the only recommendations we make. I should like to have them all inserted in the record, if I may, at this point. The CHAIRMAN. All right. (The memorandum submitted by Gen. McIntyre is as follows:) First. That the following should be inserted in the bill of rights: "That no law shall be enacted which shall make a distinction between citizens of the Philippine Islands and citizens of the United States." Second. That the following proviso shall replace the proviso in section 11: "Provided, That the entire indebtedness of the Philippine Government created by the authority conferred herein shall not exceed at any one time the sum of $17,000,000, nor that of any Province or municipality a sum in excess of 7 per cent of the aggregate tax valuation of its property at any one time: Provided, however, That within the limit thus fixed the Philippine Government may make loans to Provinces and municipalities and may, on the evidence of such loans, issue bonds to the amounts thereof without reference to the limitatoin herein fixed to the indebtedness of the Philippine Government: And provided further, That no public indebtedness of the Philippine Government or of any Province or municipality thereof shall be authorized, except with the specific approval of the President of the United States; and all bonds issued by the Philippine Government, or by its authority, shall be exempt from taxation by the Government of the United States, or by the Government of the Philippines, or of any political or municipal subdivision thereof, or by any State, or by any county, municipality, or other municipal subdivision of any State or Territory of the United States, or by the District of Columbia." Third. That the following section shall be inserted after section 11: "SEC. Ila. That in case of the issue of bonds by any Province or municipality of the Philippine Islands, or in case of the issue by the Philillpine Government of bonds based on loans from the Philippine Government to any Province or municipality in the islands, the Government of the Philippine Islands shall, by the levy and collection of taxes on the municipality, its inhabitants and their property, or by other means, make adequate provision to meet the obligation of the bonds of such Province or municipality, and shall create a sinking fund sufficient to retire them and pay the interest thereon in accordance with the terms of issue." Fourth. That section 15 shall be omitted. Fifth. That the following new sections shall follow section 23: "SEC. 24. That there shall be appointed by the President an auditor who shall examine, audit, and settle all accounts pertaining to the revenues and receipts from whatever source of the Philippine Government and of the provincial and municipal governments of the Philippines, including trust funds and funds derived from bond issues; and audit, in accordance with law and administrative regulations, all expenditures of funds or property pertaining to or held in trust by the government or the Provinces or municipalities thereof. He shall perform a like duty with respect to all government branches. "He shall keep the general accounts of the government and preserve the vouchers pertaining thereto. "It shall be the duty of the auditor to bring to the attention of the proper administrative officer expenditures of funds or property which, in his opinion, are irregular, unnecessary, excessive, or extravagant. "There shall be a deputy auditor appointed in the same manner as the auditor. The deputy auditor shall sign such official papers as the auditor may designate and perform such other duties as the auditor may prescribe, and in case of the death, resignation, sickness, or other absence of the auditor from his 73560-14-8 114 GOVERNMENT OF THE PHILIPPINES. office, from any cause, the deputy auditor shall have charge of such office. In case of the absence from duty, from any cause, of both the auditor and the deputy auditor, the Governor General may designate an assistant, who shall have charge of the office. " The jurisdiction of the auditor over accounts, whether of funds or property, and all vouchers and records pertaining thereto, shall be exclusive. With the approval of the Governor General he shall from time to time make and promulgate general or special rules and regulations not inconsistent with law covering the method of accounting for public funds and property, and funds and property held in trust by the government or any of its branches: Provided, That any officer accountable for public funds or property may require such additional reports or returns from his subordinates or others as he may deem necessary for his own information and protection. "The decisions of the auditor shall be final and conclusive upon the executive branches of the government, except that appeal therefrom may be taken by the party aggrived or the head of the department concerned within one year, in the manner hereinafter prescribed. The auditor shall, except as hereinafter provided, have like authority as that conferred by law upon the several auditors of the United States and the Comptroller of the United States Treasury and is authorized to communicate directly with any person having claims before him for settlement, or with any department, officer. or person having official relations with his office. "As soon after the close of each fiscal year as the accounts of said year may be examined and adjusted, the auditor shall submit to the Governor General and the Secretary of War an annual report of the fiscal concerns of the government, showing the receipts and disbursements of the various departments and bureaus of the government and of the various Provinces and municipalities, and make such other reports as may be required of him by the Governor General or the Secretary of War. " In the execution of their duties the auditor and the deputy auditor are authorized to summon witnesses, administer oaths, and to take evidence, and. in the pursuance of these provisions, may issue subpoenas and enforce the attendance of witnesses, as now provided by law. "The office of the auditor shall be under the general supervision of the Governor General and shall consist of the auditor and deputy auditor and such necessary assistants as may be prescribed by law. " SEC. 25. That any person aggrieved by the action or decision of the auditor in the settlement of his account or claim may, within one year, take an appeal in writing to the Governor General, which appeal shall specifically set forth the particular action of the auditor to which exception is taken, with the reason and authorities relied on for reversing such decision. The decision of the Governor General in such case shall be final and conclusive. '" SEC. 26. That there shall be appointed by the President a director of civil service. Such director shall perform the duties now prescribed by law for the director of civil service of the Philippine Government, and no law amending the civil-service laws for the Philippine Islands shall be effective without the prior approval of the President of the United States." (Thereupon, at 12.40 o'clock p. m., the committee took a recess until 2.30 o'clock p. m.) AFTER RECESS. The committee reassembled at the expiration of the recess. The CHAIRMAN. The committee will come to order. STATEMENT OF HENDERSON S. MARTIN, VICE GOVERNOR OF THE PHILIPPINE ISLANDS. The CHALIRIAN. Will vou tell the committee when you took office and how long yoll were in the Philippines? Mr. MARTIN. I have been there practically a year. I left the United States December 18, last year. The CHAIRMAN. Had you any previous knowledge of the Islands before going there this time? GOVERNMENT OF THE PHILIPPINES. 115 Mr. MARTIN. Nothing except as a man would have who tried to keep up with current affairs in the United States. The CHAIRMAN. You have had a good opportunity to judge of the people, their customs, and the laws of the Islands? Mr. MARTIN. I think a very good opportunity. The CHAIRMAN. Will you give the committee some idea of your opinion of this pending legislation, in your own way? Mr. MARTIN. After saying that I favor the bill that is before you in a general way, I would much perfer to answer questions' if you would ask them. I have not studied the bill carefully enough to say that in my judgment every section of it is correct, although I would not now be able to point to a section that I think is not correct. But I am thoroughly in favor of the theory of the bill. The CHAIRMAN. DO yOU favor the preamble? Mr. MARTIN. I do. The CHAIRMAN. What impression does the preamble make on the Philippine people? Mr. MARTIN. The Americans who have gone over in an official capacity, I think, have always announced some such doctrine as is in the preamble. At least, the Filipino people believe we propose to do just what the preamble says. They believed that when I first went to the islands, and I suppose they have believed it since the American occupation. The preamble is only a restatement in a more formal way of what the Filipinos have understood to be our intentions. The CHAIRMAN. Suppose the preamble should be amputated from the bill, what would be the effect on the opinion of the Filipinos, if any? Mr. MARTIN. May I illustrate that? The CHAIRMAN. Yes. Mr. MARTIN. You might imagine a case where one of my creditors would be talking to me about a debt I owed him. There might not be any particular occasion for me to make the statement directly to him that I intended to pay the debt, but if I did make the statement, i~ I did tell him I intended to pay the debt, and then in a few moments undertook to withdraw the statement, I would probably alarm him. Now that the statement has been made in the bill I would expect it to alarm the Filipino people if it should be withdrawn. The CHAIRMAN. Is the desire for some government among the Filipinos confined to the political leaders, or is it widespread? Mr. MARTIN. I think it is almost unanimous among the people of the islands. The CHAIRMAN. Have they any cause of dissatisfaction with the way the government is being carried on now? Mr. MARTIN. Nothing, except it be the fact that they are ruled by a foreign nation. The CHAIRMAN. They are passing their own laws, are they not? Mr. MARTIN. They have the assembly, and they have a majority on the commission. The CHAIRMAN. Is there any of the legislation that is obnoxious to them? Mr. MARTIN. Not particularly so, I imagine. At least, I have not heard that. 116 GOVERNMENT OF THE PHILIPPINES. The CHAIRMAN. But there is a sentiment that they are enough advanced to control their own government? Mr. MARTIN. They are like other people, so far as I know other people-they want to govern themselves. Senator KENYON. What do they generally understand to be a stable government, as it is recited in the preamble? Mr. MARTIN. Do you mean the Filipinos? Senator KENYON. Yes. Mr. MARTIN. I think that would be a hard question for me to answer. Senator KENYON. When are they expecting this independence? Mr. MARTIN. I doubt whether they have any definite date, except they are hoping it will not be too long delayed. Senator KENYON. What is your judgment of when a stable government could be established? Mr. MARTIN. Well, may I discuss that without answering it directly? The CHAIRMAN. Just state it in your own way. Senator KENYON. Oh, certainly. Mr. MARTIN. If the Senator would do so, I would rather he would ask a direct question. Senator KENYON. What is your notion of the kind of stable government that should be in the Philippines before they are given independence? Mr. MARTIN. That involves so many considerations. Senator KENYON. This preamble recites that, you know. Mr. MARTIN. I think there are two branches to the question. One is our duty to the Filipino people and the other is our own interests. The experiment we are making in the Philippine Islands is very interesting, and as an American it would be very interesting to me to see it continued at considerable length. I doubt, however, whether the interests of our country would be served by a considerable stay in the islands, and I think that ought to be considered in answering the question you ask. I would not say that I would think we ought to have as stable government in the Philippines before we withdraw as we have at home. Senator KENYON. You say you think we ought to have it? Mr. MARTIN. I would not say that I think that. There are so many standards of government, as you know. Senator KENYON. Would it not be better if we could just say that at a certain date the United States would leave the Philippine Islands instead of forming a stable government that changes according to the view? Mr. MARTIN. I would not want to answer for anybody except myself, and my opinion on the question is only my own opinion, and in no sense the opinion of the administration in the Philippine Islands or the Administration in Washington. I would be glad if such a statement could be made. The CHAIRMAN. Would the United States lose if the Philippine Archipelago were made an independent government at once? Mr. MARTIN. I can not understand in what way we would lose unless it would be that indirect benefit which is supposed to come to a man who tries to benefit his neighbor. I am unable to conceive of GOVERNMENT OF THE PHILIPPINES. 117 any other benefit that we can hope to receive from the Philippine Islands. The CHAIRMAN. You think the Philippine Islands are of no value to the United States under their present relations with this country? Mr. MARTIN. I do not think they are. Senator KENYON. Of any military value? Mr. MARTIN. Of course I am not a military man, and perhaps ought not to speak of that, but I would consider them a positive weakness. The CHAIRMAN. Can you say why? Mr. MARTIN. They are so far away from home that I imagine it would be practically impossible to transport troops to the islands in time of war. I understand Corregidor is impregnable, but there are many other places in the islands where troops could land, where ships could go to the shore without the slightest danger. Senator RANSDELL. What would be the result if we were to give the Filipinos their freedom now in the government of the islands and the possible action of other nations toward them? Mr. MARTIN. Answering the last part of your question first, I think it is obvious that the Philippine Islands would not be able to defend themselves against the powerful nations- of the world, either at this time or any other time. If we are to stay in the Philippine Islands until they are able to defend themselves against the other nations of the world, we might just as well quit talking about independence and announce that we are in the islands to stay. What would happen so far as the local government is concernedof course, that is a prophecy-and as I said awhile ago, I have no idea that the Filipinos could maintain as stable a government as we have in the islands. You know enough about our history to know that it is only within comparatively recent years that we have been able to maintain as stable a Government as we now have. The Filipino people are essentially oriental. Whatever is not oriental in them is Spanish. The Spaniards were in the islands some 300 years. That is longer, I believe, than they were in South America. The people of the Philippine Islands-the original stock-perhaps would compare favorably with the original stock in South America. In addition to the benefit of their association with the Spaniards, whatever that was, they have had 16 years of lessons from us, and I imagine the people of the Philippine Islands might reasonably be compared with the people of South America. The CHAIRMAN. Which country in South America? Mr. MARTIN. I would not like to be too definite about that, Senator. I am talking in very general terms. Senator SHAFROTH. DO you not think, Governor, that while you do not expect as stable a form of government in the Philippine Islands as we have in the United States, that you will have a form of government there that will be more satisfactory and will produce better results to the Filipinos than any government we can give them Mr. MARTIN. Once I read this statement: " It is not good government that people want. It is self-government. They hope it will be good government. But whether it is good government or not, they want self-government." Senator SHAFROTH. And that would be more satisfactory to the people of the islands? 118 GOVERNMENT OF THE PHILIPPINES. Mr. MARTIN. I think so without question. Senator KENYON. Do you think the majority of the people of the islands would be glad to be just turned loose to-day and work out their own government and their own salvation, and have us move out? Mr. MARTIN. I believe, sir, if the question were submitted to a vote, it would be practically unanimous. The CHAIRMAN. What do you think would be the result? Do you have any cause to believe that their independence would be interfered with by any other power? Mr. MARTIN. Oh, I have suspicions, and I have heard rumors. Perhaps I have not a bit of information on that question that is not in the possession of every member of the committee. Senator KENYON. You think they would be willing to take that stand? Mr. MARTIN. They have considered it, sir. I know that some of them have considered it, because I have discussed it with some of their leaders. Oh, yes; they have considered the matter. Senator FLETCHER. What means would they have of protecting themselves? What army, what navy have they got? Mr. MARTIN. They have not any navy and never can in the nature of things have any considerable navy, because they have not enough money, and unless some unforeseen thing should happen they will not ever have much money. As far as an army is concerned, they have, or we have, a constabulary of some 5,000 men, and in addition about 5,000 scouts that have had considerable military training. The CHAIRMAN. How many were in armed rebellion against Spain at the time we went into the Islands, or at any time? The maximum numbers? Can you tell? Mr. MARTIN. My understanding is that the uprising was general. Senator RANSDELL. Governor, what would probably happen to the 6,000,000 or 7,000,000 Christians in the Philippine Islands if some of the non-Christian nations of Asia should take it into their heads to take over the islands in case of their freedom from us? Mr. MARTIN. That is another interesting question, I think, Senator, when you remember on one side of the Philippines is China with 400,000,000, and on the other side is India with 300.000.000, and across the way is Japan, and back of it is Central Asia-I do not know what would happen if those people should wake up and begin to move around. Senator RANSDELL. Would there not be a very great danger that Christianity would be completely swept away in the onrush of those non-Christian nations? Mr. MARTIN. I should not expect that. Senator KENYON. By the non-Christian nations you mean those that are not now engaged in war? Senator RANSDErLL. I am speaking about the Asiatic people in the vicinity of the Philippines. Senator SHAFROTH. What is your suggestion with relation to any protectorate or any agreement with other nations with respect to the neutrality of the Philippines? Mr. MARTIN. I would do anything I could for the benefit of the Philippine Islands, but when we leave I would leave bag and baggage. GOVERNMENT OF THE PHILIPPINES. 119 The CHAIRMAN. Not keep Corregidor? Mr. MARTIN. I don't know about a coaling station or something of that character. The CHAIRMAN. A naval station. Mr. MARTIN. Yes; a naval station. I would, of course, make Manila an open port. Senator SHAFROTH. Does that apply to the question of neutrality with other nations as to the Philippine Islands? Mr. MARTIN. It applies to every question that might involve us in war. The CHAIRMAN. Suppose we had an international agreement with Japan, Germany, and Great Britain to maintain the independence of the Philippine Islands, do you think the Philippine Islands would still be a difficulty in case of war or likely to provoke a war? Mr. MARTIN. I asked that question in Manila not long ago of a gentleman whose opinion I wanted. There were some foreign sailors in Manila who were on what we call the Luneta. That is an open field. It runs between the sea and the city. It is territory that is reclaimed from the sea. He said, "I would expect within a few months some drunken sailors would get into a riot or a fight with some Filipinos on the Luneta, and that that nation would say the Filipino people have violated the terms of the neutrality agreement." I am not opposing neutrality. I am only saying that if I were in charge of it when we leave the islands I would leave under such conditions that we would not be in danger of becoming involved in war. Senator WALSH. I am not able to follow the illustration you give. Senator WEEKS. That agreement would be a scrap of paper, anyway, would it not? Senator WALSH. I was not able to follow the illustration you gave. Mr. MARTIN. This gentleman said he would expect the sailors from some nation who were on land in Manila to become involved in a row or fight with the Filipinos. Then he would expect that nation to say that the Philippine people had violated the terms of the neutrality agreement, and that it is no longer binding. The CHAIRMAN. That imaginary nation would then step in and annex the islands? Mr. MARTIN. Yes. Senator KENYON. Do you think Great Britain and Germany would unite on that? Mr. MARTIN. No. Senator SAULSBURY. Germany has no Asiatic possessions, you know. But France is down in that neighborhood. Senator SHAFROTH. I would like for you, Governor, to give an idea to the committee as to the disposition and character of the Filipino. Is he a warlike individual? Mr. MARTIN. He is a very likable individual-the most likable I have ever seen. He is gentle and kind. But he is a son of the Tropics, which means that he is impetuous. He has not only been raised in the Tropics, but he has Spanish blood in him. He never forgets to be polite, and so far as my experience goes he never forgets to be kind. He is not as industrious as our people, because he has never found it necessary to be industrious. The Philippine Islands are very fertile. It is a matter of small exertion for a man to sup 120 GOVERNMENT OF TIIE PHILIPPINES. port himself in those islands, and I have heard it said that men generally do not work any harder than they have to work. Senator FLETCHER. Are there not various types and kinds and characteristics of Filipinos? Are there not various bodies in different parts of the islands, so that your general description of the Filipino may apply only to certain portions of the islands? Or do you mean to apply that to all of them? Mr. MARTIN. There have been successive waves of immigration to the islands. I suppose the lowlands were originally inhabited by what we might call aborigines. Some stronger peo!;le came in and drove those people into the mountains, and some others came in and drove those into the mountains, and they drove the others still higher into the mountains. There are what are called wild men. which is a misnomer, in the Philippine Islands, the Igorots, for instance. The Igorots live in the mountains on the island of Luzon. The men wear what is known as a G string: that is. a thing like a towel that they wrap once around their waists, and then finally between their legs, and that is all they wear. They are frequently exhibited as specimens of the Filipinos. Then there is another tribe of little men, the Negritos, who evidently belono to some other wave. which live in some other mountains. They are shy men. If they hear you coming or see you coming they leave their villages and hide in the hills or woods. They are sometimes shown as representing the Filipinos. It would be just as fair to exhibit a Pueblo Indian as a representative of the people of the United States as to exhibit a Negrito or any of those other non-Christian tribes as samples of the Filipino people. Senator FLETCHER. These people that you speak of are all on the island, and what part would they play in any government that might be provided for them? Mr. MARTIN. About the part that our Indians in the West play in our Government. Senator FLETCHER. Would they have to be excluded by law, or what arrangement could we make so as to exclude them? Mr. MARTIN. I think the bill in a general way provides for that. Under the present arrangement the commission has exclusive jurisdiction of those people. The bill authorizes the Governor General to appoint a senator for those people from any part of the island. The CHAIRMAN. Right on that point, suppose the legislature, having uinder this new measure jurisdiction over them, what sort of legislation would the Filipino legislature naturally have for those wild men? Mr. MARTIN. The chairman of the committee on those tribes in the commission is a Filipino, Mr. Ilustre. I have been much interested in watching the action of this chairman, because I discovered, in the Philippine Islands at least, the chairman is practically the committee. He has shown a more constant interest in those people, I am sure, than an American member of the committee would have done. He has made frequent trips into the mountains and has consulted with the leaders of those tribes. He has made frequent trips to the Moros, and I have never seen the least indication of a lack of interest on his part in those non-Christian tribes. The commission has always had to curb his generosity in the matter of appropriations for those people. GOVERNMENT OF THE PHILIPPINES. 121 Senator SHAFROTH. I wanted to ask you, Governor, whether the character of the Filipino in his actions indicated that he.was lawabiding, indicated whether he would obey orders, and would respect authority. Mr. MARTIN. Oh, yes; very much more than we would. When you remember that the Filipino is Oriental, and that Oriental society fundamentally falls into two classes, the peasant class and a higher class, and that in China particularly they worship their ancestors, and that in China where a high official orders a citizen to commit suicide he promptly goes and does it, it is easy to understand why Orientals are inclined to obey the authority. Throughout the Orient the peasants, especially, are very much more inclined to obey the authorities than we are. Senator SHAFROTH. Would you expect, then, that if an independent government was set up by the Filipinos themselves there would be insurrections and riots and serious conflicts between the authorities and any class- of the people? Mr. MARTIN. Well, as I said, I would not want to say that they will be able to maintain a government such as ours-and for this reason chiefly: They have political parties as we have, and they fight as we do in the campaign, and I am not sure that the defeated party over there would take their defeat as reasonably as the Democratic Party is in the habit of taking it. That would be the chief fear I have. The CHAIRMAN. How about the government they have been maintaining in their municipalities? That has been almost exclusively Filpino for the last 15 years, I suppose. Mr. MARTIN. I think it has been very good government, indeed. The CHAIRMAN. It is under the supervision of the central government, is it not, as to the collection of taxes and disbursement of taxes? Mr. MARTIN. Yes, sir. The CHAIRMAN. Would it be necessary to continue that system of supervision by the central government? Mr. MARTIN. Well, I doubt that. I do not know as I would have any very positive opinion about that, but I think the municipal governments and the provinical governments in the Philippine Islands have been very satisfactory. Senator WALSH. How much government do they have? Take the cities outside of Manila, how extensively do they have the conveniences of modern municipal government here, such as police, sanitary arrangements, street lighting, fire protection, and all that kind of thing? Mr. MARTIN. The whole archipelago is policed. The larger cities, such as Cebu and Vegan, have light plants and waterworks. They have everything that their limited means will permit them to have. The Filipino people are poor. They raise all the taxes they can, and, so far as I have been able to observe, spend their money with reasonable judgment. The CHAIRMAN. Do they save any? Mr. MARTIN. I' would not say that they are noted for saving. Senator FLETCHER. I was called out of the room for a moment, but was rather interested in the line of inquiry that I suspect was in the mind of Senator Shafroth, and that was whether or not, in your 122 GOVERNMENT OF THE PHILIPPINES. judgment, there would be a likelihood of repeated revolutions on that island? Mr. MARTIN. I made some such answer as this, that my chief fear would be that a political party in the Philippine Islands would not be as ready to obey the voice of the majority when it was defeated as we are. I have estimated the Filipinos in that particular from what I have heard of the people of South America. As I said awhile ago, I am inclined to place the Filipinos in a general way in a class with the people of South America. Senator KENYON. Not Central America? Mr. MARTIN. No; South America. Senator KENYON. Do they have better governments than Central America? Mr. MARTIN. Oh, I would think so. Senator SHAFROTH. In these elections where they have participated, has there been any manifestation of rebellion, or not submitting to the vote? Mr. MARTIN. Not that I have known. I do not think there has been. Senator SHAFROTH. I wish that you would state to the committee, Governor, your idea of the intelligence of the Filipinos. Mr. MARTIN. I would base that on what I said awhile ago, that in considering the Filipino people we must remember that they are oriental people, and that not only in the Philippines, but throughout the Orient, there are two classes of people, the peasants and the higher class. The peasants in the Philippines, as in China and Japan, and as I have heard, in all other oriental countries, are not educated. They are honest, quiet people, law-abiding, but they have never had a chance to take part in government affairs or any kind of public affairs. Senator WEEKS. What proportion of the people can read and write? Mr. MARTIN. I do not think I could give you just the figures, but following what I was just saying it would be according to our standard a small proportion. Senator WEEKS. Would it be 10 per cent of all the people? Mr. MARTIN. Oh, I would think so, including the people that have been educated in American schools. Senator WEEKS. Do you think you can base a popular government on a population of which not more than 10 per cent can read and write? Mr. MARTIN. From what I have read I am doubtful whether the percentage in Virginia, for instance, at the time of the adoption of our Constitution was very much higher than that. Senator WEEKS. I should be surprised if it were not. Senator SHAFROTH. Is there seemingly a desire upon the part of the Filipinos to obtain an education? Mr. MARTIN. The children are the most eager I have ever seen. Senator SHAFROTI-. How about the grown people who attend the night schools? Mr. MARTIN. The grown people do not attend the night schools. There is not any room for grown people in the schools, I think, in the Philippines. Let me tell you of some things I have seen. It is known. of course. in every town that all the children in the town of GOVERNMENT OF THE PHILIPPINES. 123 school age can not be accommodated. They have not room, and they have not the teachers. So the teacher in a town will announce that on a certain day, a few days before school opens, he will give the children an opportunity to enroll at 8 o'clock on a certain morning. There will be a line of children at the schoolhouse at sunrise to enroll. Senator FLETCHER. DO yOU suppose that would be kept up if the government was turned over to the Filipinos? Mr. MARTIN. I have not the slightest doubt of it, sir. We have night schools in Manila, and the schools are in my department. Some weeks ago I asked the director of education to take me to some of the night schools one night. It happened to be a very bad night. It rained. In fact, it poured. He took me to a large school building with two wings at least, and with a driveway between them-a great open way where an automobile could drive through, perhaps two abreast-and as we approached the building I saw the driveway was crowded with people. The driver stopped and the director got out and made a way so the automobile could be driven in under the shelter. I said to him, "What is all this mob here?" He said, "They are boys hoping that some of the boys who have been admitted will not be here, and that they can get the vacant seats." Senator SHAFROTH. When the night schools were first started in Manila, though, the grown people attended, did they not? Mr. MARTIN. That was before my time. Senator SHAFROTH. I attended several in Manila, and there was a large proportion of the audience that was made up of grown people. Mr. MARTIN. I have no doubt they would attend if they could. Senator SAJLSBURY. I think you have taken a great deal of interest in education in your own State, have you not? Mr. MARTIN. Yes. Senator SAULSBURY. I think I know that to be a fact, and the committee ought to understand it. You have been an official in your school department in Kansas, have you not? Mr. MARTIN. Yes; I have given a good deal of my time to school affairs at home. Senator SAULSBURY. I thought you told me that was your chief interest in public work in Kansas. Mr. MARTIN. Yes. I have always been interested in the schools, and I have never seen any such interest at home in the schools as I have seen in the Philippine Islands. Senator SHAFROTH. Is the English language getting pretty well used in the Philippine Islands now? Mr. MARTIN. It is the only language taught in the public schools. They have about 300,000 school children in the public schools. We have probably 8,000 teachers; among them about 1,000 American teachers. They all teach English, but you might imagine, of course, that the average Filipino teacher, who teaches for a very small sum, uses very poor English, but it is the only language that is used in the schools. Senator SHAFROTH. It is getting in general use? Mr. MARTIN. Oh, yes; in almost every town you find people who speak the language. Senator WALSH. Is there a desire to supplant it with the native languages? 124 GOVERNMENT OF THE PHILIPPINES. Mr. MARTIN. We sometimes find that, but nothing that is important. The CHAIRMAN. How do you explain this passion of the children for education? What is it based on? What is the cause of it? Mr. MARTIN. I can not tell you unless it is the first outlet they have had for it. The Spaniards had some sort of a school, but I imagine we would not call it a school. The CHAIRMAN. Do they consider it as a means to a better future? Mr. MARTIN. Oh, yes: I think so. Unfortunately, too many of them are looking for a government job. The American games are very popular in the Philippines. Baseball, I think, is as popular in the Philippines as it is at home, and that may be part of it. They are eager to learn. Senator LIPPITT. How do you mean, Governor; that is one part of the education? Mr. MARTIN. That is one thing that brings them to school so readily. Senator LIPPITT. You mean the schools have the nines and the baseball is played between the different schools? Mr. MARTIN. Oh, yes; we emphasize athletics of all kinds. We make more of it than we do at home. We bring teams that win from all over the islands to Manila once a year and have an insular contest. Senator LIPPITT. Are those school games? Mr. MARTIN. Baseball and volley ball and races and all that sort of thing. We have hundreds and hundreds of schoolboys, the finest in the islands, brought to Manila for a week, brought at government expense. Senator LIPPITT. What is the original language that these children speak who go to the schools? Mr. MARTIN. There are four or five principal dialects in the islands. Senator WEEKS. Can those speaking one understand the other. generally speaking? Mr. MARTIN. I do not understand so. But there are people-a multitude of people on the islands-who speak Spanish everywhere. The CHAIRMAN. What are those children doing with the education they get? What change does it make in their lives? Mr. MARTIN. You see, it takes 12 years to get a boy through our public schools. We have only been in the islands 16 years, and, of course, the schools were not established immediately after we came to the islands. I have asked the bureau of education to answer that question for me. But in the nature of things there are only a few boys who have graduated from high school, and they are so recently out of school, and there is so much of a demand for young men who can speak the English language and who have had some education, that it is doubtful if any satisfactory answer could be made to your question at this time. The CHAIRMAN. They do not all go through the whole course? Mr. MARTIN. No; they do not. They drop out and go back to their little farms and their stores. The CHAIRMAN. Their earning capacity is apt to be improved, though, if they follow the course through? Mr. MARTIN. There is no doubt about that. Senator SHAFROTH. Do you think they drop out from choice or necessity? GOVERNMENT OF THE PHILIPPINES. 12& Mr. MARTIN. Oh, in a good many cases, from necessity. The Filiino parents make great sacrifices to keep their children in school, but they are not always able to do that. Senator SHAFROTH. Will you give us an idea as to the moral character of the Filipino? Is he honest? Mr. MARTIN. Relatively, yes. Senator SHAFROTH. Contrasted with the. countries around the Philippine Islands, China, and Japan, how do they compare with the people of those countries? Mr. MARTIN. I would think that the Filipinos are as honest as the people around them. I have never heard them charged with being dishonest. Senator SHAFROTH. Are they addicted to committing crimes to any unusual extent? Mr. MARTIN. Oh, no. I think they perhaps quarrel over a woman or something of that kind and kill one another in hot blood. Senator SHAFROTH. Any more so than in the United States? Mr. MARTIN. Perhaps a little more so than in the United States. Senator SHAFROTH. How many prisoners are there in the Philippine prisons now? Mr. MARTIN. Two thousand eight hundred, or something like that. Senator SHAFROTH. They come from all over the islands-8,000,00( people? Mr.. MARTIN. Yes. Senator SHAFROTH. What would you say if they had a government of their own whether you would be safe in traveling in any part of the islands? Mr. MARTIN. I have no doubt of it in the world, sir, except as there might be a robber or something of that kind. But so far as the government was able to maintain order I have not the slightest doubt they would do it. The CHAIRMAN. Is there any drunkenness? Mr. MARTIN. They are not much inclined to drink. The Americans who go over there, of course, take their habits with them. If they are in the habit of drinking at home, they drink there but I have never seen Filipinos drink to any extent. The CHAIRMAN. Is opium excluded from the islands by law? Mr. MARTIN. Yes. Senator LIPPITT. You said a few moments ago that Spanish was generally spoken. What do you mean by that? What percentage of the people speak Spanish. Ten per cent, or what? Mr. MARTIN. More than that. Much more than that. Senator LIPPITT. You have no way of knowing exactly? Mr. MARTIN. No. Senator LIPPITT. If a large number of people speak Spanish and a large number of people speak English, and the people who speak English and Spanish are entitled to vote, why is there not a larger number voting? Mr. MARTIN. I think there isSenator LIPPITT. If there is, as you say, a very large proportion of the people who speak Spanish, and a very large proportion who speak English, why is there not in the vote that is cast a larger number of voters than there are? I fancied that there was not a very large proportion of the people who speak the English language. 126 GOVERNMENT OF THE PHILIPPINES. Mr. MARTIN-. That question is interesting. (en. McIntyre, or somebody could answer it, as to how many could speak English or Spanish. Gen. MCINTYRE. The estimate at the time of the census was that 10 per cent of the people were fairly educated in Spanish, and the understanding is that that number has slightly increased. Senator RANSDELL. Do they not have to write Spanish as well as speak it in order to vote? Senator Lippitt's question was confined to those speaking the language. Lots of people can speak a language when they can not write it. Mr. MARTIN. I wanted to add this to my answer to you, Senator, that you must never forget that the great body of the people in the Philippines, and the whole Orient, are peasants, who practically take no part, and whose fathers took no part, in the government, and who do not want to take an active part in public affairs. When you come to consider the number of people who are educated and who are not educated, if you have in mind America, where the organization of society is entirely different, there is danger, I think, that you would be misled, that you would reach a wrong conclusion. That is true in China and throughout the Orient. Senator LIPPITT. There is a large proportion of the people who do not have any interest, that want to be ruled? They want somebody else to decide government questions for them? Mr. MARTIN. Yes. Senator WEEKS. Governor, you have suggested to us that practically all the people of the island want self-government. Do those people whom you term as peasants care who they are governed by? Mr. MARTIN. I doubt whether they do, except in a very general way. I think they would rather be goverened by their own people. Senator WEEKS: Are they nine-tenths of the people of the islands, as you suggest, or about that per cent? Mr. MARTIN. I think if our friend over there (Quezon) should go to those people and tell them that they wanted them to be for independence, that they would be for independence. Senator WEEKS. Suppose a person of equal influence went to them and told them that they would be better off under the control of America, would they listen to that? Mr. MARTIN. I am inclined to think that they would believe that, because, I think, that has been their experience. I think they are better off under us. Senator WEEKS. Then is it true that 10 per cent of the people of the islands are agitating for independence, and 90 per cent do not care? Mr. MARTIN. No, sir; I would not say that. Senator WEEKS. Well, something like that, say? Mr. MARTIN. When I talk about the people who want independence, I have in mind the educated people. Senator WEEKS. Is that 10 per cent or 15 per cent? What do you call the educated people? Ten per cent or 15 per cent or 20 per cent? Mr. MARTIN. Of course that would be a guess. I would think it is about the same throughout the Orient. Senator WEEKS. Then, as a matter of fact, it is the educated people of the islands who want independence, and the great majority of the GOVERNMENT OF THE PHILIPPINES. 127 people do not care very much if they have stable conditions and reasonably good government. Mr. MARTIN. I will tell you an experience I have had which will probably answer more truthfully than I could otherwise. Senator FLETCHER. I would like if you could answer that. Mr. MARTIN. In a general way, I would say yes to that question, but I would want to explain it. Senator WEEKS. GO ahead and explain it. Mr. MARTIN. I will explain it in this way: I have made two trips over the islands for the particular purpose of visiting the schools and looking into agriculture, because agriculture is in my department. I was usually in company with the director of education and the director of agriculture, with the governor of the Province we were in, and some other people, and usually they decorated the roads, especially through their villages and everywhere and in every part of the island where I was, with the word "Independence," and where a schoolboy made a speech of welcome he could not get away without referring to independence, and what he hoped I would do for him. And wherever a presidente, a mayor of a town, made a speech welcoming us to a town he invariably had his petition for independence. Senator WEEKS. He belonged, and so did these schoolboys belong, to the educated classes? Mr. MARTIN. The schoolboys come from all classes, of course. You might call a schoolboy an educated man, but he probably comes from the home of some old peasant. Senator LIPPITT. What about the business men, the men who are engaged in business in the Philippines, are they anxious for a change of government? Mr. MARTIN. I have heard that some of them were not, but I have never seen them. Senator LIPPITT. YOU have never seen a business man in the Philippines that did not prefer the American Government to independence? Mr. MARTIN. I know one lawyer. Senator LIPPITT. I am talking about business men. Mr. MARTIN. The only Filipino who has ever said to meSenator LIPPITT. I am talking about business men. Mr. MARTIN. I do not know any. Senator LIPPITT. Do you tell me, Governor, that there are no business menMr. MARTIN. No; I do not. I tell you I have never met one. I have heard that there are business men who wanted to stay thereFilipinos. Senator LIPPITT. What was the effect two years ago on the initiative and general disposition to undertake new enterprises in the Philippines of the announcement that they were going to have independence? Was it an incentive? Did new capital seem to be disposed to go in there? Were new enterprises undertaken in consequence, or was the opposite the effect? Mr. MARTIN. The opposite, I think. Senator WEEKS. Let me ask you how much American capital is invested in the islands outside of what the Government has invested there? 128 (GOVERNMENT OF THE PHILIPPINES. Mr. MARTIN. I can not give you the figures, but it is not a very large amount. Senator WEEKS. Are other foreign nations investing money in the Philippines? Mr. MARTIN. Well, they have invested some. There has not been any considerable amount of new money gone in the Philippines for a year. Senator WEEKS. If you yourself believe the Philippines were to be given their independence in 10 years, would that induce you to invest your own money there, or would you be disinclined to do it on account of that possibility? Mr. MARTIN. I would be disinclined to do it on that account and on other accounts. I think it would not be open to argument that money would want the United States to stay in the islands and would be scared if it knew we were going to leave the islands. I think everybody ought to admit that. Senator LIPPITT. That is, is not that a good reason, from the Filipino's standpoint, for the United States to stay there? Mr. MARTIN. He does not think so. The CHAIRMAIN. Governor, when you say " business men" you were talking about Filipino business men, and I think Senator Lippitt was talking about American business men. Senator LIPPITT. I was talking about business men of every kind. I thought it was rather a remarkable statement, from the information that I had, that he had never met a business man who wanted us to stay there. I did not limit it to Englishmen, Chinese, or any other kind of business men. Mr. MARTIN. All the business men, except the Filipinos, so far as I know. are verv much in favor of the Americans staying there. Senator LIPPITT. I supposed that was the case. I wanted to know whether it was true or not. Mr. MARTIN. Yes. Senator FLETCHER. Have any Americans gone to the islands and acquired homes and settled there? Mr. MARTIN. No farmers. A white man can not work in the fields in the Philippine Islands. Senator FLETCHER. How about the mountain regions? Mr. MARTIN. There are some Americans in the mountains, but of course very few. I do not know how many. They have some mines. I think I remember two. Senator FLETCHER. IS the population increasing among the natives? Mr. MARTIN. Yes. The death rate among the infants is decreasing. The American physicians have done and are doing a splendid work for the Philippine Islands. Senator FLETCHER. Have they large families usually? Mr. MARTIN. Yes: but 50 per cent of the babies die before they are a year old. The CHAIRMAN. They do now, you mean? Mr. MARTIN. Well, we have not had any census, but substantially that. That is true in China. Even a higher percentage than that die in China. I am informed. Senator FLETCHER. IS it caused by epidemics or anything of that kind? GOVERNMENT OF THE PHILIPPINES. 129 Mr. MARTIN. No; by lack of proper nourishment more than anything else, and lack of proper sanitation. Senator WALSH. What line of argument did that gentleman pursue who felt it was desirable to have the American government continued? Mr. MARTIN. He said: "We have a good government-as good a government as they have in the world-and if the Americans leave we will not have as good a government as we have now." Senator LIPPITT. Governor, I asked you a question-that in case the Filipinos should be able to set up an independent government, what do you think would be their attitude toward foreigners; —toward Englishmen and toward Americans and toward other nationalities than the Filipinos-as to their presence in the islands? Would they consider them desirable or would they feel the other way? Mr. MARTIN. Oh, I think they would desire them to be in the islands. Senator LIPPITT. You were talking about the schools a few moments ago. I wanted to ask you this at that time, but you got off on other things: What is the tuition in the schools? You say they want to go to school, and you say they leave before they complete their course. What does a completed course mean, and about when do they leave? Mr. MARTIN. It is the American high-school system. Senator LIPPITT. It is up to the high school? -Mr. MARTIN. It does our high-school work. Senator LIPPITT. How many years? Mr. MARTIN. Twelve years, just as we have it at home. Senator LIPPITT. At what age do they begin? Mr. MARTIN. Oh, 6 or 7 years; I can not just remember. Senator LIPPITT. About the same age as they do here? Mr. MARTIN. Yes. Senator LIPPITT. They have the kindergarten system Mr. MARTIN. It is a duplication of our public-school system. Senator LIPPITT. Of course, if that is so, it must have taken a great many years before any large proportion could get to the high school. We have only been there — Mr. MARTIN. Sixteen years. Senator LIPPITT. Sixteen years. How many are there in the high schools? Mr. MARTIN. There are a great many now. I think I have the figures. I can get the figures. Senator LIPPITT. The high schools are run as well as the lower schools? Mr. MARTIN. Yes. Senator LIPPITT. Are those in the high schools people who had started their education in some other way Mr. MARTIN. In our schools. Senator LIPPITT. They are all children that have come up from the American system of schools? Mr. MARTIN. Yes; and you would be very proud of them if you could see them. 73560-14 —9 130o GOVERNMENT OF THE PHILIPPINES. Senator LIPPITT. I think the development of the Filipinos is something wonderful. I am not any pessimist on that question at all. Senator WEEKS. Governor, do you think we ought to consider our own interests in passing this legislation-I mean the interests of the people of the United States, or our Government, or those of the Philippine Islands? Mr. MARTIN. I would not ignore either of them. In my judgment we have the most important Government in the world at home. If self-government is to exist in the world it will be because of the example of the United States. And if a man is of the opinion that our possession of the Philippine Islands endangers our home Government, I believe that man ought to favor getting out of the islands forthwith. If he is not of that opinion, if he believes we can stay there safely, I am very sure it is one of the finest experiments of colonial government in the world. I do not believe it can be duplicated in the world. If he believes we are safe in staying there and is willing to spend the money that is necessary just to see what we can do, I would think that kind of a man would favor staying in the islands. Senator KENYON. That is, whether the Filipinos wanted it or not? Mr. MARTIN. That is a hard question. I would not stay if they do not want me to stay. Senator LIPPITT. You say that 90 per cent of them are perfectly satisfied? Mr. MARTIN. I would not want to leave it just that way, sir. The people who are in the schools, the people who can read and speak English and Spanish and a great many who speak the dialect-I never said 90 per cent, somebody said that for me-are actively in favor of independence. Senator LIPPITT. I am glad you corrected me, because you left me with that impression in my mind. Senator SHAFROTH. I did not understand he said they were satisfied, but that they did not take any interest in the question. Senator LIPPITT. I understood him to say, in answer to a question