The labels, with department, group, class, number, exhibitor, locality, article, description, having on the reverse side the original number and remarks.

The shipping manifest, with date, number and marks, weight and measures, class of goods, name of ship, destination, value at which insured.

The news clipping book.

The card file case for the description of the Philippine Islands.

The card file brief of correspondence, with date, number of letters, department, group, class, and date of answer and brief.

The diary of work accomplished, with date, correspondence received, correspondence answered, circulars mailed, exhibits received, exhibits promised, contracts made, exhibits bought, supplies bought, extract of account, and remarks.

This system of work can be easily modified and completed as soon as the full responsibilities of the commission and the disposition of the funds shall have been clearly established by decree, when proper instructions, etc., will be promptly given. It is highly desirable that a full, free hand be given to the exposition commission, under control solely of Governor Taft and his associates, in order to be able to accomplish rapidly and successfully the work.

GUSTAVO NIEDERLEIN,

Special Philippine Commissioner for the St. Louis Exposition.

MANILA, October 18, 1902.

EXHIBIT R.

THIRD ANNUAL REPORT OF THE PHILIPPINE CIVIL-SERVICE BOARD TO THE CIVIL GOVERNOR OF THE PHILIPPINE ISLANDS AND THE UNITED STATES PHILIPPINE COMMISSION FOR THE YEAR ENDED SEPTEMBER 30, 1903.

MANILA, P. I., October 1, 1903.

GENTLEMEN: In accordance with the provisions of section 7 of the civil-service act, the board has the honor to submit its third annual report, covering the period from October 1, 1902, to September 30, 1903.

EXAMINATIONS AND APPOINTMENTS.

The first table in the appendix, giving the results of all educational examinations held during the year covered by this report, shows a remarkable increase in the number of persons examined, the total being 5,216, only 533 less than the total number previously examined since the organization of the board. This large increase is due principally to the great number of Filipinos entering examinations, 3,526 being examined in Spanish, 102 more than during the preceding two years and 1,205 more than during the year ended September 30, 1902. The number of persons examined in English is 1,690, or 82 more than during the preceding year, many of those examined in English being Filipinos.

The number of persons obtaining eligible grades in examinations is noticeable. In Spanish 1,875 passed, compared with 1,531 during the preceding two years and 1,051 during the year ended September 30, 1902; in English 1,061 passed, 68 more than during the preceding year and 334 less than the preceding two years.

The total number of competitors taking educational examinations since the organization of the board is 10,965, of whom 5,862 passed; 4,015 of these were examined in English, 2,456 passing, and 6,950 in Spanish, 3,406 passing. Noneducational examinations are not included in the above summary.

As a result of examinations for original appointment held in the Philippine Islands, 837 English-speaking eligibles were appointed, 111 more than during the preceding year, and 885 Spanish-speaking eligibles, an increase of 217. Including those appointments made by promotion, reduction, transfer, or reinstatement, and as a result of examinations held in the United States, 3,841 appointments have been attested by the board during the year, as compared with 2,481 appointments during the preceding twelve months.

It is gratifying to note that the ratio of the number of Filipinos appointed to the number of Americans is gradually increasing. It has been difficult to induce many heads of bureaus to employ Filipinos freely, as persons selected from Spanish registers naturally require more instruction in American office methods than those selected from English registers. However, the success of the forestry bureau, the board of health, the weather bureau, and other bureaus, in employing Filipinos principally, and the difficulty in securing a satisfactory class of appointees from the United States, have aided in inducing many bureau chiefs to appoint Filipinos on trial. Some officials who were firmly of the opinion that Filipinos could not be used successfully in their bureaus are now strong advocates of their employment. Many of them appointed to minor positions a year or two ago have since been promoted to important clerkships and their original positions filled by other Filipinos selected from the registers of the board. There is thus a steady increase in the proportion of Filipinos employed in the classified service. The increased educational advantages now offered Filipinos will undoubtedly fit them for the performance of many of the duties required of Americans.

The amount of work involved in preparing the questions and rating the papers of the 5,216 persons examined during the year is greater than the figures indicate, as it was necessary to hold all of the principal examinations at least once a month and many of them, such as patrolman, prison guard, hospital attendant, and apprentice, twice a month in order to secure a sufficient number of eligibles to meet the needs of the service. This involved the preparation of an unusually large number of series of questions; moreover, nearly all examinations were given in both the English and the Spanish languages, necessitating an immense amount of translating. During the year 93 distinct kinds of examinations were held. This number does not include noneducational examinations.

AMENDMENTS TO THE CIVIL-SERVICE ACT.

On January 9, 1903, the commission passed Act 589, amending Act 5, the civilservice act. Many important changes were made by this amendment, the principal of which are as follows:

(a) The civil-service act is made applicable to all appointments of civilians in the bureaus and offices of the government of the Philippine Islands, subject to the limitations of the acts organizing such bureaus and offices, and with the provision that persons appointed by the civil governor, by and with the advice and consent of the Philippine Commission, and persons employed merely as laborers, shall not be included in the classified service unless otherwise specifically provided by law. Originally it was necessary to classify each new bureau created by an amendment to the civil-service act, and this classification was usually made some time after the creation of the bureau, the original force of officers and employees being selected without regard to the civil-service act and rules. Unclassified positions are now clearly

defined.

(b) It is provided that the board shall determine whether promotion examinations shall be competitive or noncompetitive.

(c) Examinations are required to be held in all the provinces.

(d) The age limits for entrance into the classified service are required to be fixed by rule.

(e) Section 13, relating to frauds, is made more comprehensive.

(ƒ) Punishment in the matter of political contributions is limited to the receiving officer or employee.

(g) On and after September 1, 1903, all appointments of teachers in Manila and of teachers of English in the Philippine Islands are required to be made in accordance with the provisions of the civil-service act and rules.

REVISION OF THE CIVIL-SERVICE RULES.

Immediately after the enactment of Act 589, the civil-service rules were revised by the board and certified to the civil governor, who approved them January 13, 1903. Some of the changes introduced in the revision are as follows:

(a) It is declared to be the purpose of the appointing power to fill vacancies in the unclassified service by promotion whenever competent persons may be found in the service.

(b) The general age limits for entrance to civil-service examinations are fixed at 18 and 40 years, but provision is made that these limits may be extended for any examination whenever, in the discretion of the board, the needs of the service require it.

(c) It is provided that a person who originally entered the classified service without examination may not be reinstated after separation therefrom until he has passed the examination required for original entrance to the position to which reinstatement is proposed.

(d)*All heads of bureaus and offices are required to keep a continuous and comparative efficiency record of their employees, open to the board's inspection, and to render efficiency reports to the board quarterly.

(e) Pending the adoption of competitive promotion regulations for any bureau, office, or branch of the service, no person is allowed to be promoted from one class to another until he shall have passed noncompetitively the examination prescribed for original appointment to the position to which promotion is proposed, and the increase in salary shall not take effect prior to the date of passing the examination. (f) All appoinments to classified positions, whether original, by promotion, reduction, transfer, or reinstatement, must be made upon a form prescribed by the board and forwarded to it for attestation and transmission to the civil governor or proper secretary of department for approval. This regulation acts as a check upon illegal appointments to classified positions.

(g) It is provided that no unclassified employee shall perform the duties of a classified position, and no classified employee shall, without the consent of the board, perform the duties of a position not contemplated by his entrance examination.

(h) Heads of bureaus or offices are required to report monthly to the board all absences of their employees from any cause whatever.

(i) The board is allowed, in its discretion, to restore to the register of eligibles for the remainder of the period of eligibility the name of an appointee who has been separated from the service during his term of probation without delinquency or misconduct.

THE MERIT SYSTEM APPLIED IN MAKING PROMOTIONS.

On the day following the approval of the revised rules by the civil governor the general regulations governing promotions by competitive examination and the regulations governing promotions in the uniformed police force of the city of Manila were prescribed by the board.

Since the submission of the last annual report a systematic method of keeping an efficiency record of employees has been devised, and a report of such record is required to be transmitted quarterly to the civil-service board. The data thus obtained, together with the service record kept by the board for each employee in the service, furnishes a basis upon which promotions may be made according to merit. The keeping of these records greatly stimulates employees to do the very best work of which they are capable.

In the appendix may be found the promotion regulations mentioned above, and an outline of the several forms used in keeping the efficiency record of employees.

AMENDMENT TO ACT 25 GOVERNING APPOINTMENTS AND REMOVALS.

The large increase in the number of original appointments, promotions, reductions, and removals requiring the approval of the civil governor under Act 25, as amended by Acts 301 and 329, led to a further amendment of this act on January 9, 1903 (Act 588), providing that appointments to and removals from positions in bureaus or offices under the executive control of the secretaries of departments shall be subject to the approval of the secretary of department exercising executive control over the bureau or office in which the appointment or removal is made, leaving appointments and removals in the other bureaus and offices in the Philippine civil service subject to the approval of the civil governor. By this amendment the civil governor is relieved of the burden of approving a large number of appointments and of reviewing the proceedings in a large number of cases of removals and reductions.

CONDITIONS OF THE APPOINTMENT OF PERSONS IN THE UNITED STATES TO THE PHILIPPINE SERVICE.

Prior to June 1, 1903, a person in the United States appointed to this service under the provisions of Act 80, as amended by Act 338, was furnished free ocean transportation to Manila, and immediately upon arrival in the Philippines was reimbursed for the amount expended by him for subsistence en route from place of embarkation, and paid half salary for the period consumed in making the ocean voyage to the Philippines. After the expiration of six months of satisfactory service the appointee was reimbursed for the expenses incurred by him in traveling from his residence in the United States to the place from which he embarked for Manila.

It was not an uncommon practice for persons appointed to this service under the provisions of Acts 80 and 224, to leave the service before the completion of the two years' service required of them. Some deserted immediately on arrival, after collecting the amount paid for half salary and subsistence on transport, and others left after having also received from the Government the payment for all expenses in connection with transportation and subsistence from place of residence in the United States to San Francisco, made at the expiration of six months' service.

With a view to discourage appointees from leaving before the expiration of the two years which they are required to serve under the conditions of their appointment, Act 643 was enacted, amending Acts 80 and 338 and repealing Act 224. By the provisions of Act 643 a person appointed in the United States to the Philippine civil service is required to sign a contract that he will remain in the service for at least two years. He may pay his own traveling expenses from place of residence to Manila, provided, that if any part of his traveling expenses is borne by the government of the Philippine Islands 10 per cent of his monthly salary shall be retained until the amount retained is equal to the amount borne by the government; it is further provided that the necessary traveling expenses from his residence in the

United States to Manila, paid by him, either originally or through deduction from his salary, shall be refunded at the expiration of two years' satisfactory service, and that the half salary allowed en route from place of embarkation to Manila shall be paid at the expiration of the same period of satisfactory service.

It is believed that this amendment will tend to prevent the violation of the agreement of two years' service under which appointments are made, and thereby aid in promoting stability in the service. However, should an appointee leave before the expiration of his contract, the Government will lose only a small amount, as half salary while en route to the islands will not have been paid to him and the part of his salary retained will be forfeited to the Government.

For reasons similar to those for which Act 643 was enacted, executive order 67 was promulgated by the civil governor on August 5, 1903, prohibiting disbursing officers from paying any salary to or upon the order of any employee appointed in the United States to a position in the Philippine civil service under the provisions of Acts 224 or 643 while such employee is enjoying accrued leave of absence which may have been granted to him prior to his having completed two years of service, until five days after return to duty.

Until recently it was customary to provide free transportation on United States Army transports to all appointees coming to the Philippine Islands, and to most employees returning therefrom, either permanently or on leave. As it became impossible to secure such transportation, Act 697 was enacted on March 23, 1903, providing for the transportation on commercial liners of employees and their families. Executive order 75 provides a method of qualifying for reentrance into the service for persons who have left it in violation of law or contract. Any person desiring to qualify for reentrance to the Philippine civil service under the provisions of this order must first take the matter up with the civil service board.

SICK LEAVE.

In its last annual report the board stated that it was convinced that the sick-leave privilege was being abused, and that it had recommended the adoption of an executive order governing the granting of leaves of absence.

On November 11, 1902, section 3 of Act 80, allowing leave of absence on account of illness, was amended by Act 515 so as to provide that after the return to duty of an applicant for sick leave he shall establish by evidence to be prescribed in regulations adopted by order of the civil governor the fact that he was ill and unable to be on duty on account of illness, and that his claim is meritorious. The amendment also provides that each application for sick or accrued leave must first be submitted to the civil service board for its recommendation, and then be forwarded for final action to the civil governor or the secretary of the department in which the applicant is employed. Prior to this amendment both sick and accrued leave were granted by the head of the bureau or office in which the applicant was employed, and the law made no provision for a review of the decision by the civil governor or proper secretary of department. On December 1, 1902, executive order 112 was promulgated by the civil governor. A few months' experience clearly demonstrated that the conviction of the board was fully justified. As it was found difficult to induce physicians to submit fully the evidence contemplated by the provisions of executive order 112, a modification of the order was recommended. This recommendation met with the approval of the civil governor, and on March 1, 1903, executive order 4 was issued as a substitute for executive order 112. A full record of the name, nature, etiology, history, and description of the disease or disability from which the applicant for sick leave suffered is now obtained in each case. The results of the amendment to section 3 of Act 80 and executive orders 112 and 4 have amply justified their adoption. From December 1, 1902, the date on which executive order 112 was promulgated, to September 1, 1903, sick leave to the value of $7,358.82, which otherwise would have been approved, was disallowed.

ACCRUED LEAVE.

Act 80 in its application to judges of the supreme court and courts of first instance was amended by Act 867, enacted September 5, 1903, by providing for two months' vacation every year (May and June) and three months' additional vacation every third year, all leave being on full salary. It is further provided, however, that during each vacation period 1 judge of the supreme court and 7 judges of the courts of first instance shall remain in the islands. The vacation of two months annually is not cumulative.

Act 448, amendatory of section 2 of Act 80, provides that in case an officer or