To travel expenses of the officers and deputies...

To fees of the clerk of the court of first instance

To fees of the provincial sheriff..

To accumulated leaves....

To pay of municipal treasurers as deputies of the provincial treasurer..

To pay roll of laborers on roads, bridges, and timber.

To pay roll of raft men

To storage and transportation of government rice.

To transportation of articles of government...

To pay roll for the month of June, which is not yet approved by the provincial board

These payments show that the province was self-supporting and complied religiously with its obligations; and although some of these, certainly of little importance, remained pending, it has, on the other hand, revenues which were not collected and one-half of which belongs to the same fiscal year, the amount whereof is greater than that of the outstanding obligations, namely, its proportional share of the internal revenue and land taxes. This province having existed under truly abnormal conditions, from an agricultural, commercial, economic, and financial point of view, which prevailed during the last fiscal year, it is evident that it would be able to exist with much more ease upon recovering its normal condition and improving the aforesaid conditions which are the basis of the means needed by it for the maintenance and preservation of its vitality.

I must not conceal, however, that some affect to believe the contrary. They speak of an early possible or perhaps probable division of this province and its necessary consolidation with Bataán, Tárlac, and Pangasinan, some systematically, others selfishly, others suspiciously and because they are evil-intentioned. But all apparently agree to one thing: that this is made necessary by the lack of revenues for selfsupport. Still further advancing on the field of hypotheses they scatter the rumor that, according to information from reliable sources, the honorable Civil Commission is likewise of the same belief or opinion that for the reasons mentioned there exists the necessity and advisability of the division of this province and the annexation thereof to the other adjacent provinces to which we have alluded.

Fortunately, as we have demonstrated, this province is not in such a critical and deplorable condition since its former pueblos of the north turned their backs on it and deserted it; and it may be affirmed, without exaggeration, that to-day it is in a better economic and financial condition-considering that so far it has complied with all its unavoidable duties, without having recourse to any loan from the insular treasury, while, when this province still retained its control over the pueblos annexed to Pangasinan, this same insular treasury loaned the province, at its own request, the sum of $5,000 United States currency, which it regrets not to have been able to repay. It is true that other provinces that are considered, or really are, more wealthy, are indebted to the insular government for like reasons and in the same manner in larger sums.

Furthermore, I believe that it would be not only unjustified, but even highly offensive, for the Government of the United States in these islands to admit the hypothesis that the division of this province is to be ordered only on account of its own resources not being sufficient to pay the necessary expenses of its decent and independent maintenance and preservation, because such an opinion would destroy the high and altruistic policy of the government, which complies by all the means humanely practicable with its providential and high mission of bringing about the happiness and moral and material advancement of the Archipelago, and especially the personal security, the maintenance of order, and the defense of the property and legitimate rights of the citizens. These humane intentions would certainly be utopian for the inhabitants of this province on the day when it would be deprived of its own actual and exclusive government and administration, which would surely be the greatest and most cruel misfortune to it, on account of the great distance which would separate these pueblos from their provincial capital, the difficult and dangerous ways of communication, the lack of a near-by efficient protection by the provincial government and the armed organizations, the difficulty of other means of defense, the antagonism of habits and customs between the people of Zambales and the natives of the aforesaid adjacent provinces, and many other difficulties which

would, in the majority of the cases, irremediably imperil the lives and property of the inhabitants of these pueblos. The government of these islands could doubtless not adopt such a fatal measure, much less so if one considers that Act No. 1004 authorizes said government, or rather the insular treasury, to assume any deficit which might occur in the revenues of the new province of Zambales, which would be the case supposed by the aforementioned advocates of the division of this province.

As to the industries of Zambales, I have said in my last report that these are "manufactures from agricultural products, the making of mats known in this country as petates, of buri sacks, of the nipa thatch for roofing purposes, of native textiles, the collection of rattan and firewood, lumbering, and charcoal making." I might add now that since many years past and at present we also know here the manufacture of hats of bamboo or buri and cabinetmaking; but artisans engaged in same do not work on a large scale, to be sure, for lack of capital. The same occurs with regard to tannery, saddlery, and tailor shops at Iba, which would make a fortune for their proprietors, besides saving in frequent cases much trouble to the people here and in other pueblos if said shops had more capital and were better equipped, because at present many persons have to go to Manila in order to provide themselves with clothing for the reason that they do not find any in said tailor shops of the class desired or needed.

Among provincial employees the greatest harmony possible has reigned, and the same is true regarding their relations with other officials, even the Philippines constabulary; and each one has shown the others the respect and consideration required by good social form, there being no conflict to deplore between one and the other in the exercise of their respective duties. No complaint has been made against the aforementioned armed organization that I know of, which is doubtless due to the fact that Captain Gwynne, senior inspector of the Philippines constabulary in Zambales, as he is known to the whole province, unites with his affable and good disposition the undoubted quality of being a thorough gentleman, and loves at the same time the honor and dignity which he knows that he and others of his class should have and maintain. I believe that I may be proud of the fact that no provincial or insular officer in Zambales has abused his official or social position or even offended or molested in any way persons belonging to the other classes of society, and thus and in no other manner have they succeeded in gaining the love of their fellowmen. Order, peace, and tranquillity have not suffered any disturbance throughout the province, and although in the month of March of the current year, 1905, a conspiracy was discovered for an improbable uprising here, plotted from Manila by one Cruz Asunción, alias Tisa-who was sentenced by the court of first instance during its term of the month of April, said Cruz Asunción and other persons convicted being condemned to imprisonment for four, three, and two years, respectively-this did not affect the public order in the province nor the honesty and loyalty of its inhabitants, because none of the persons comprised in that conspiracy was a native of Zambales. A conspiracy was also discovered in the month of June last, at Cabangan, a district belonging to the municipality of Botolan, of which I have already informed the honorable, the governor-general. It was the work of one Tomás Rivera, resident at Manila; but this plotter obtained no success other than the imprisonment of himself and his accomplice, Agapito Pérez, of Castillejos, because the very persons whom Tomás Rivera endeavored to draw into his party, though they feigned to accept, soon afterwards denounced him to me, handing me at the same time certain papers and other articles which can be used as evidence for the guilt of the two aforesaid conspirators, who together with the evidence mentioned, are at present in the hands of justice.

Public instruction had progressed in the preceding years, and this province appeared in this respect among the number of the most advanced, for the reason that the attendance of its schools by pupils of both sexes was proportionally larger, and that the same was the case with the success achieved. This, notwithstanding, it advanced still further during the last fiscal year, thanks to the efforts, wisdom, and constancy of the American teachers, among whom special mention is merited by my particular and constant friend, Mr. Otho Atkin, division superintendent of schools of Zambales, to whose happy measures, love for the education, popularity, and other excellent personal qualities which gained for him the respect, consideration, and sympathy of the entire province, we certainly owe the notable prosperity and progress of public instruction in this province, whose pleasant and positive future is manifested in the annexed report of said superintendent. A subscription has been started throughout the province for contributions toward the expenses of the high school, the construction of which has already merited the sanction of the insular government, and it is expected that a good result will be obtained. However, the financial crisis from which this province has been suffering for some time past must

naturally affect this subscription, so that it can not be as large as it should be, and as the inhabitants would desire it. The moral influence of Mr. Atkin in the pueblos and the gratitude which they owe him are of such a nature that on his initiative and with funds scarcely sufficient for a start, an edifice for a normal school has been built at Masinloc and another at San Narciso, the work on which is not yet completed, but very much advanced. To the construction of these edifices the inhabitants of each of said pueblos have contributed without distinction of class or sex, some without donations in money or goods, others with their personal labor, and all with their good will and even enthusiasm, notwithstanding their own difficulties due to lack of money, thanks to the direct and indirect efforts of Mr. Atkin.

I must conclude this report by suggesting to the honorable the governor-general, in compliance with the law, the following:

EXECUTIVE MEASURES.

1. That the proper authority be directed, so soon as the work on the new insular wagon road from Iba to Capas shall have been completed, to establish a post of the Philippines constabulary at the barrio of Poonbato, Botolan, where the former post, subsequently abolished, used to be, or at any other point deemed most suitable or advantageous for safeguarding the personal security and other rights and interests deserving the protection of the law and the government.

2. That one or more veterinarians be sent to this province in order to make the cattle immune and take all such other measures as may save it from the rinderpest and assure their multiplication. On this petition, which I have made formerly, I now beg leave to insist, so as to prevent the rinderpest from causing greater damage at San Marcelino and from spreading to other pueblos.

3. That it be recommended to the office of the insular treasurer that it send to the treasury of Zambales, as quickly as possible, its share of the internal-revenue money. 4. That, as I have also requested in my last report, the municipalities be authorized to equip their respective police with better arms for preventing or repelling, when necessary, the invasion of robbers from other provinces of the pueblos of Zambales bordering upon said provinces and distant from the other pueblos of this province garrisoned by the Philippines constabulary, said municipal police having given unmistakable proofs of their attachment and loyalty to the established government and authorities.

5. That in the work of construction of the wagon road from Iba to Capas there be included that of a bridge over the Bancal River and of another over the Bucao River, which will not only greatly improve the commercial and economic conditions of the province, but will also facilitate the public service thereof in all the branches of the administration.

6. That a school of agriculture be established in the same for its greater development and perfection.

LEGISLATIVE MEASURES.

That the protection of the agricultural products of the country be provided for by the passage of an act obliging the persons interested in an indirect manner and for the sake of their own convenience to give preference in domestic consumption to said products against similar products imported from foreign countries of the same price and quality.

No photographs are annexed, as directed in the instructions, for the reason that there are no artists here who could render services in this regard. Respectfully submitted.

POTENCIANO LESACA,

Governor of the Province of Zambales.

The GOVERNnor-General OF THE PHILIPPINE ISLANDS.

EXHIBIT B.

ANNUAL REPORT OF THE MUNICIPAL BOARD OF THE CITY OF MANILA FOR THE FISCAL YEAR 1905.

MUNICIPAL BOARD OF MANILA,
Manila, September 23, 1905.

SIR: In compliance with the provisions of the charter of the city of Manila, the municipal board hereby submits the fourth annual report of the operations of the government of the city for the fiscal year ended June 30, 1905, with important works accomplished since that date, during the month of July and a part of August.

The personnel of the board is the same as that noted in last year's report, with the exception of the substitution of Mr. H. E. Hyde, acting city engineer, who was appointed to that position on April 1, 1905, when the former city engineer, Maj. J. F. Case, was appointed chief engineer, department of sewer and waterworks construction.

OFFICE OF THE SECRETARY OF THE MUNICIPAL BOARD.

On January 25 the secretary of the board commenced a leave of absence extending to September 6, 1905. During the period covered by this report the position of acting secretary has been filled by one of the stenographers, who resigned on July 3, 1905, whereupon the chief clerk was made acting secretary. These changes, and the consequent reduction in the available working force, augmented by absences of other clerks on leave, has thrown an unusually large amount of work on the remaining force of the office which has, unavoidably, affected the general efficiency of the office; but, on the whole, the work has been carried on in a satisfactory manner, and credit is due to those who have carried the burden which would have been more equitably distributed had the office force been constantly maintained at its full strength. Commensurate with the extension of the work in all city departments, the secretary's office has been effective, not only in its own work, but in relation to all departments, and has performed its share.

In addition to the routine work of this office the secretary has been charged with all arrangements for the entrance of indigent sick to the San Juan de Dios Hospital, where they are treated at the expense of the city. The contract entered into with this institution on the 15th day of August, 1903, has been continued in effect. The total cost to the city of this contract for the year has been 148,225.70.

OFFICE OF THE DISBURSING OFFICER, MUNICIPAL BOARD.

The work of the disbursing officer of the municipal board shows a slight falling off in the amount of money disbursed during the present year, although the average number of employees paid monthly exceeded that of last year.

The board obtained an increase in the salary of the disbursing officer from $2,500 United States currency to $2,750 per year, which is deemed an equitable salary for the position.

All payments have been kept up to date and the work performed by this office has been entirely satisfactory.

437

The effect of the internal-revenue law on the finances of the city of Manila, anticipated in the last annual report, has been fully realized. This, taken in connection with the decrease in the amount collected for land taxes, on account of the fact that during the previous year collections were made covering eighteen months, causes a reduction in revenues of nearly 25 per cent, which is about equally divided between the effects of the internal-revenue law and the decrease in land-tax collections.

This reduction in revenues has caused an apparent deficit at the close of the fiscal year 1905 of 22,266.25, which, however, will be more than covered by the refund to the general revenues due on account of the expenditures made from the general funds for the preliminary work on the new water and sewerage systems, which amounts to P359,889.13, which it is expected will be refunded from the resources of the bond issue.

The revenues estimated in the last annual report were not realized by about 400,000, due to over-estimate of land tax, 188,000, and the fact that payments expected are delinquent by 104,000; reductions in collections of certificates of registration, 20,000; matadero fees, P5,000; licenses, 60,000; municipal court fines, 65,000; vehicle tax, 30,000; while the estimate was exceeded in collection of market fees, 15,000; pail system, 32,000; industrial tax, 24,000; water system, 11,000.

The following statements show the revenues of the fiscal year, the expenditures by departments, and the financial condition of the city on June 30, 1905. The figures presented are unaudited, and are furnished by the collecting and disbursing officers of the city and subject to change by the audit:

Revenues of the city of Manila from collections for fiscal year 1905.