Annual Reports of the War Department

trade in this important article of American export, but imports of cotton and cotton manufactures are larger by nearly a half million dollars, while iron and steel and their manufactures are credited with an increase of practically the same amount; and if to these be added substantial gains in mineral oils and the shoe trade, the year's record is not an unfavorable one for the American manufacturer and exporter.

PURCHASE OF SUPPLIES.

The method of purchase of supplies for the Philippine Islands has been described in detail in preceding reports. During the period from November 1, 1904, to October 31, 1905, 651 mail requisitions were received from Manila and 68 requisitions by cable. The majority of these orders were transmitted for execution to the purchasing agent for the Philippine government in New York, attached to this Bureau. Such of the requisitions as contemplated purchase of supplies similar to those furnished the different Departments of the United States Government were, through cooperation of the several Departments, bought, after inspection by their experts, under contract prices based on much larger quantities of material than the Philippine government required.

As a rule, supplies have been purchased f. o. b. steamer New York and forwarded to Manila on through steamers operated by the four Suez lines with which this Bureau has a joint contract. In many instances, however, it has been found advantageous to purchase goods at places of manufacture, ship them by rail to San Francisco or Seattle and thence by steamer to Manila, under contracts with the various lines for through transportation.

In addition to proposals sent to dealers and manufacturers from the New York office, copies of requisitions for supplies are also sent to Maj. C. A. Devol, depot quartermaster, San Francisco, for distribution to merchants in that city, proposals being submitted thereunder to the purchasing agent in New York.

All merchandise purchased by the Bureau is insured from the time it becomes the property of the Philippine government against all loss or damage, however occasioned, until delivery to the consignees in

Manila.

As mentioned in the last annual report, in response to appeals of Manila merchants, the Philippine Commission decided to encourage bona fide local dealers and make it an object for them to carry large stocks of merchandise in Manila by favoring them with all government business, provided their prices were not more than 10 or 15 per cent above the price at which similar goods could be purchased by the Bureau in the States and delivered at Manila.

Although this practice has been in operation for some time, the number of requisitions received during the period covered by this report bears testimony to the close prices which the Bureau has obtained.

In addition to purchasing such supplies as are not carried in stock by Manila merchants, or such articles as they can not sell at the 10 or 15 per cent increase allowed them, the Bureau has assisted the insular government in the purchase of supplies at Manila by keeping it advised of the market quotations and conditions in the States.

The catalogue system, installation of which was described in the last annual report, has been found of much value in the purchase of supplies and checking of accounts. A similar system has also been inaugurated in the office of the purchasing agent in New York and is a constant benefit to him in his work.

NEW YORK OFFICE.

The purchasing agency in New York is maintained at the expense of the Philippine government, and as at present organized, consists of 1 purchasing agent and 5 employees.

Requisitions received from Manila have been promptly executed and accounts covering same settled by the disbursing agent of the Bureau without delay.

CUBAN ACCOUNTS.

The last annual report showed a balance of $968.64 in the hands of the disbursing agent after paying all proper accounts against the late military government of Cuba. As no claims against this fund were received during the past year, the balance on hand was deposited with the Treasurer of the United States on May 10, 1905.

INSPECTION OF ACCOUNTS.

An inspection of the office of the disbursing agent was made by an inspector-general of the Army in May, 1905, at the time of the transfer of the office by J. G. Jester to A. T. Ruan, the present incumbent. The books and accounts were found correct, and the balances with the several depositaries verified.

PHILIPPINE CENSUS.

The census of the Philippines has been taken and its publication is completed.

Section 6 of the act of Congress of July 1, 1902, providing a civil government for the Philippines, directed:

That whenever the existing insurrection in the Philippine Islands shall have ceased and a condition of general and complete peace shall have been established therein, and the fact shall be certified to the Pre-ident by the Philippine Commission, the President, upon being satisfied thereof, shall order a census of the Philippine Islands to be taken by said Philippine Commission; such census, in its inquiries relating to the population, shall take and make, so far as practicable, full report for all the inhabitants, of name, age, sex, race or tribe, whether native or foreign born, literacy in Spanish, native dialect or language, or in English, school attendance, ownership of homes, industrial and social statistics, and such other information, separately for each island, each province, and municipality, or other civil division, as the President and said Commission may deem necessary;

Provided, That the President may, upon request of said Commission, in his discretion, employ the service of the Census Bureau in compiling and promulgating the statistical information above provided for, and may commit to such Bureau any part or portion of such labor as to him may seem wise.

The President having been notified by the Philippine Commission, in accordance with the above-cited provision of law, on September 25, 1902, issued the necessary order that the census be taken, and at the request of the Philippine Commission the machinery of the United States Census Office was utilized in the compilation and distribution of the report made.

Under the administration of Gen. Joseph P. Sanger, who had for merly directed the taking of the census of Cuba and of Porto Rico, the schedules were practically completed in August, 1903, and forwarded to the United States Census Office, where the work was finished under his direction and issued in four volumes, both English and Spanish, the President having been officially notified of its publication on March 27, 1905.

The total expense to the Philippine treasury in the census was:

Paid in the Philippine Islands.
Paid in Washington

Total......

$606, 724. 23

30, 207.09

636, 931. 32

The cost of enumeration in the Batanes Islands, a small group north of Cagayan Province, of which it forms a part, has not yet been reported and is not included in the above statement.

PHILIPPINE ASSEMBLY.

Section 7 of the act of Congress providing for the taking of the census declares:

That two years after the completion and publication of the census, in case of such condition of general and complete peace with recognition of the authority of the United States shall have continued in the territory of said islands not inhabited by Moros or other non-Christian tribes, and such facts shall have been certified to the President by the Philippine Commission, the President upon being satisfied thereof shall direct said Commission to call, and the Commission shall call, a general election for the choice of delegates to a popular assembly of the people of said territory in the Philippine Islands, which shall be known as the Philippine assembly. After said assembly shall have convened and.organized all legislative power heretofore conferred on the Philippine Commission in all that part of said islands not inhabited by Moros or other non-Christian tribes shall be vested in a legislature consisting of two houses, the Philippine assembly.

The President having been advised by the Secretary of War of the completion and publication of the census, cabled to the governorgeneral of the Philippines that upon March 27, 1907, if the conditions should be as indicated in the foregoing law, he will direct the Commission to call a general election. This information was published in Manila by the governor-general's proclamation of March 28, 1905.

FRIAR LANDS.

The friar lands have all been purchased.

The details covering the sale of $7,000,000 worth of registered bonds in order to raise money with which to purchase the 410,000 acres of land formerly belonging to the three principal religious orders in the Philippines, viz, the Augustinians, Recoletos, and Dominicans, were set forth in the last annual report.

The surveys of these lands resulted in considerable delay, but were finally completed and accepted by the parties interested. Payments were made as follows:

Recoleto Order (for Mindoro estate).

La Sociedad Agricola de Ultramar (18 estates formerly held by the
Augustinians)

British Manila Estates Co. (“Imus Estate in Cavite, formerly held by
the Recoletos)

Philippine Sugar Estates Development Co. (limited), (8 estates formerly
held by the Dominicans)

The questions in dispute which caused the delay in the settlement with the Sugar Estates Development Company were closed up and a compromise effected by the Secretary of War during his recent visit to the islands this summer.

PHILIPPINE EXHIBIT AT THE WORLD'S FAIR, ST. LOUIS.

The last annual report detailed the magnitude of the Philippine exhibit at the World's Fair at St. Louis, which covered 50 acres and occupied about 100 buildings, while nearly 1,300 Filipinos were in attendance. Upon the close of the exposition, December 1, 1904, all the Filipinos except those of the Visayan village who remained in this country about six weeks before sailing for Manila, departed for the Philippines.

On January 21, 1905, 198 cases of exhibits valued at $25,000 were shipped to Manila to be placed in the Manila Museum or returned to private owners, those remaining being sold to the American Museum of Natural History of New York for $15,000, under agreement that it make satisfactory distribution to the Smithsonian Institution and the Philadelphia Commercial Museum, and that an exhibit at Portland should be provided for, if desired.

The latter exhibit was made under the charge of the Chief Clerk of the War Department without cost to the Philippine government. It was an adequate, scientifically installed, and well-managed exhibit, of which the Philippine government might well be proud.

The furniture left on the grounds was sold for $1,350 and the buildings, including plumbing, electric light, and minor fixtures, for $10,575, the purchaser of the buildings giving bond to clear the grounds and restore them to their original condition.

The Philippine exposition board, through its jury of awards, awarded two kinds of medals, each in gold, silver, and bronze, the one being designated a "medal of honor," and given for special and meritorious services, and the other for exhibits. Their distribution, which was left entirely to the Bureau, has been about completed as far as concerns the medals of honor and accompanying certificate, numbering about 1,800, but those awarded exhibitors, which are to be struck from the dies used for the Louisiana Purchase Exposition Company's medals, will not be available for about eighteen months. The following table gives the receipts from the date of the opening of the exposition up to and including December 31, 1904, and it will be noted that the bulk of the revenue was derived from admissions to the five native villages: