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U. S. NAVAL STATION, Cavite, P. I., December 3, 1903.

SIR: Referring to the commandant's letter dated November 16, 1903, which requests a full and complete report on the progress of Filipino labor during the last year, 1 have the honor to report as follows:

2. As the efficiency of the Filipino mechanic is so closely interwoven with the efficiency of the department of which I have charge, I dwelt somewhat on the subject in question in my annual report dated July 6, 1903.

3. Being head of the department, my recommendations were based necessarily on grounds to promote the efficiency of the department, the simultaneous improvement of the Filipino being alluded to more as incidental.

4. I quote below verbatim from my annual report and will comment later in this communication, giving my views at the present time, and showing where I have modified my views, if I have done so.

5. Administration of department.-"1. The principal difficulty in the administration of this department is the want of the proper supervision in the individual shops. This is a loss to the Government financially. In addition to the business side, there seems another phase worthy of consideration in connection with this.

"2. The Government has been spending stupendous sums of money for the education of the Filipino, and is continually striving to improve his condition. That the average Filipino likes to work is a much-mooted question. The experience here has established that where there is intelligence and some little school learning the native at once shrinks from mechanical trades, each desiring to be an "escribiente" (writer). "3. Recently the advisability of enlisting Filipinos in the service has been considered. For this reason, as well as the other above outlined, there would seem no better method to improve the condition of the Filipino and further the interests of the service, the Government, and country at the same time, than by a development of the natives as far as possible in mechanical trades at this navy-yard. Under the present system in this department the Government suffers, and there is no chance of developing any new material. I allude to the fact that there has been only one white American mechanic in the shops where 488 men are employed.

"4. His supervision was of necessity most general and the Government was continually losing money because of this condition. This one white foreman has been so occupied with his general superintendence and necessary office work that the development of any individuals because of contact with him is out of the question."

6. Skilled labor.—"1. For the Government's present interests financially and for the Government's future interests financially and otherwise, I recommend strongly that each shop of this department have at its head a good American mechanic. He would at once more than save his salary to the Government.

"2. I believe that the consequent possible development and education of the Filipinos in the mechanic trades should have fully as much weight as the immediate financial advantage to the Government. If the education of these people is determined upon, should it be restricted to school learning, which in many cases where there is not enough strength of character, produces men who do not care to do manual labor? The discipline to which they are subject in a navy-yard is also, I think, not a small factor in their education.

"3. I am primarily speaking for the efficiency of the shops of which I have charge, and secondarily for the development of the natives into good, conscientious workmen, making good subjects.

"4. Outside of the immediate interests of this department, and in a general way the interest of these islands, which must have labor if the islands are to be developed, and some skilled labor at that, the immediate interests of the service demand just such a school as properly organized shops at the navy-yard would give for the education of these people in mechanical trades, if they are ever intended to enter the service.

"5. The dearth of skilled labor is bound to be felt more and more, and the Government, especially with its fixed rules for wages, is bound to feel the effects of it. With the development of the islands, skilled labor will be in demand, and this department has already lost some of its best men because outside civil establishments paid these men better wages than are authorized at this navy-yard. In stating this I do not desire to give the impression that navy-yard help is not so well paid as in outside firms, but rather that an outside firm, when an able man is much desired, will obtain him at any cost, being not tied down by a fixed schedule of pay. We should, therefore, aim to develop as many able men as possible so as not to feel the loss of a few.

"6. The question of skilled labor is especially worthy of consideration, yes, even urgent, because of the exclusion of Chinese. Some of the most able workmen in

this yard have been Chinamen, but, as is evident from the law, there can be no further supply when these are exhausted.

"7. That white labor should be used here in any capacity other than that of supervision, is out of the question. Something should be done, therefore, to effect the development of the Filipino skilled laborer. As stated above, I consider the appointment of a good American mechanic for each shop the best method. The need of skilled labor is especially felt in the machine shops because of the continual demand for this class of work.

"8. If their development is expected to be evolved out of themselves, I do not think the goal will ever be reached.

"9. When American help is employed it should be borne in mind that the climate is a severe test, especially when a display of energy is expected, and on that account only young men should be appointed for this duty.'

7. Working hours.-"1. Whether it is to the advantage of the work and efficiency of the department that there should be two schedules of time, one for Americans and the other for Filipinos, is questionable; in my mind it is not. If the natives are to be taught American methods, and especially are to be taught to work with the energy approaching that characteristic of the average American workman, the hours for the natives are too long.

"2. As the hours are fixed for the Americans they are considered amply long, especially in consideration of the climate. The idea that the natives are not subject to the climatic influences is, I think, a mistake, because from my observation I conclude that they do decidedly feel the effects of this extreme heat, and a large proportion are in poor health, the average Filipino being in physical strength and endurance far below the average American.

"3. If the hours for the natives were the same as those for American help, with the proper number of American employees, they would continually be under supervision, and would be receiving a thorough training, and would finally be deprived of the grievance arising from this discrimination in time schedule against them.

"4. If there has not been any protest it will surely come, and I consider it to the advantage of the department that this discrimination should be eradicated before an open protest is made."

8. Attendance of employees.—“1. The question of irregular attendance is one that has received much attention, but no satisfactory remedy has been found.

"2. There are three general causes for the large percentage of the absences:
"First. The disposition of the average native to take things easy.
"Second. The great amount of sickness among them.

"Third. The frequent occurrence of holidays other than our national, which they will observe notwithstanding the urgency of any work on hand. These are the conditions which, if it is possible to change any of them, can be changed only most gradually."

9. Generally speaking, I can state that I have not changed my views from those expressed in my report as quoted above, excepting, perhaps, that with the longer experience I have had, I am willing to modify them in the direction of putting a greater value on the possible development of the Filipino.

10. We are a people of an entirely different race which makes it possible that in many cases of unfavorable judgment of them we may be as much at fault as they, as each views conditions from an entirely different standpoint, and a position which one believes as correct as the other.

11. These people, too, had been in subjugation for many years, while we have enjoyed all the advantages which freedom and generations of training and development have given us.

12. This department has already had an illustration of what advantage will accrue to the Government, as well as the Filipino, if the Government will only make an effort to instruct the best qualified of those anxious to learn.

13. I have reference to the fact that recently I have had two Americans in the shops of this department instead of only one. Although this has been a most meager increase, nevertheless, I see a decided improvement in the boys anxious to learn, because of the little individual attention they have had recently and which it was not at all possible to give them formerly.

14. With the older men it is difficult to introduce new methods, but that is a condition which I think holds true for all races and conditions of life, it always being a difficult matter to "teach an old dog new tricks."

15. Considering the primitiveness of the former methods under which these people have worked, and the not much more than primitive means which have been placed in the hands of this department, some of them have shown marked ability.

16. There are two conditions insurmountable for sometime to come which will subject these people to unfavorable criticism.

The first is that our languages differ, and this makes the transmission of ideas and instruction, and the understanding of same difficult, and at times impossible. The second is, that be it because of their frugality in living and character of their food, or of the climate, or all of these, they are not equal physically to ourselves. 17. There are few of us whose mental and physical alertness and endurance are as great at the end of a tour of duty here as they were at the beginning of the duty. This is especially so when we have been held to continuous work without any relaxation.

18. With all these conditions against them we exact more of them in some ways than we do of ourselves, for we require of them more working hours each day than are required of any American employee.

Such

19. Much has been said about their mendacity and general unreliability. characteristics are generally the result of bringing up, association, and conditions under which they have been living. If some of them have not a high regard for truth or for other people's property, such infractions are likely to occur anywhere, when such a large body of men is employed as here.

20. In view of such existence as these people have had for many generations past, it seems only natural that they should not have the characteristics which we expect to find in a people who during the same period of time have had all the advantages which come with independence and close association with all that is most progressive. 21. In view of what was said in my annual report as to the general disposition to secure employment as "escribientes," I now desire to modify this to this extent. 22. There have been applications by boys, who have had good schooling and spoke some English, for appointments as apprentices. These could, however, not be made, as there were no vacancies, the number allowed being very limited.

23. When speaking in the report of the dearth of skilled labor, the demand outside for such labor was anticipated. This has been borne out by actual experience. 24. This department has only been able to retain such of the best Filipino mechanics as have ties here, these preferring to hold their position here in preference to one in Manila with better pay.

25. The ordinary laborers have had little chance in the past for development, as it has been impossible on account of the few Americans available for supervision to give them much attention.

The greatest difficulty with them is that few of them speak even Spanish, which makes them difficult to handle.

26. Where in my report I speak of the reasons for many absences from work, I give as one reason: "The disposition of the average native to take things easy."

27. At that time I was not familiar with the fact that so many employees live at great distances in outlying towns, and are frequently absent on account of rains and bad roads, which, in a measure, may ameliorate this shortcoming.

28. If the progress desired in the development of the Filpino has fallen short of expectations, the experience in this department inclines me to ascribe it primarily to the lack of proper material in the way of tools and plant necessary to inaugurate modern methods, as well as to the altogether inadequate number of skilled Americans capable of teaching the natives new methods.

29. The proper American equipment, both in material and personnel, has been so wanting, that it at once bars criticism of the Filipinos for not having made greater progress.

Very respectfully,

GUSTAVE KAEMMERLING, Lieut. Commander, U. S. Navy, Head of Department Steam Engineering.

The COMMANDANT.

U. S. NAVAL STATION, Cavite, P. I., November 18, 1903.

SIR: In answer to your letter dated November 16, 1903:

1. I have the honor to make the following report on the progress of Filipino labor during the year:

2. The skilled labor of this department is better than it was a year previous and we are now doing better work than was done a year ago.

3. We have manufactured sights for several vessels for a reasonable price and which have proved satisfactory in every detail. Also spare parts and accessories for rapid-fire and automatic guns. We have also manufactured revolver holsters and revolver cartridge boxes, canteens, and leather ammunition-passing boxes for the U. S. S. Kentucky. This kind of work was never done in this department until this year and it turned out very satisfactory.

4. Attention is called to the differences in prices of great-gun targets (prize firing), that were made last year and those that were made this year. The cost of labor for making 4 great-gun targets (prize firing) last year amounted to $753.70 gold. This year we made 8 similar targets-cost of labor, $346.89 gold. This does not include price of material. The reasons for the great difference of prices are: That we installed a bolt-threading machine and sewing machine, the latter for making the screens. Also the men were more familiar with their work and went about it more intelligently.

5. A model of 4-inch rapid-fire gun, one-fifth scale, was made in this department and sent to the St. Louis Exposition. The workmanship was very neat.

6. The carpenters are much better than they were a year ago, doing their work quicker and go about it more workmanlike.

7. The skilled laborers at the magazine are mostly men who have been promoted from common laborers, for being careful and intelligent in the performance of their duties. They have been engaged in such work as putting up 6-inch and 4.7-inch ammunition and breaking down, blending, and putting up minor caliber ammunition and handling and overhauling ammunition of all calibers, repairing and painting ammunition bosses and chests and re-forming cartridge cases.

8. The unskilled laborers in this department are good workmen and are improving; they are engaged in general magazine work, making shipments, loading and unloading cascos and lighters, and care and preservation of ordnance.

9. In my opinion the Filipino labor is much more satisfactory than it was a year ago and is improving.

Very respectfully,

The COMMANDANT.

J. T. SWIFT, Gunner, U. S. Navy, Acting Inspector of Ordnance.

U. S. NAVAL STATION, Cavite, P. I., November 28, 1903.

SIR: 1. In compliance with instructions contained in your letter dated November 16, 1903, directing report on the progress made by Filipino mechanics and laborers during the past year, I have to report as follows:

2. It must be stated that, as a rule, the Filipino workman is indolent and indifferent to his own advancement beyond a very limited degree. This must largely be accounted for by the environment of the Filipino race for many generations past; the enervating effect of the climate, together with the few wants of the native, and the ease with which the necessities of life are obtained, cause him, as a rule, to be easily contented and careless as to improvement.

3. In the case of the older men little progress can be detected even where there has been constant supervision of American foremen, the older men reverting to their former methods when immediate supervision is removed.

4. The case of the younger men is somewhat more encouraging and a fair amount of improvement is to be noted, as they are quicker to see the advantages of improved methods of work, and it is believed that they are also more anxious for their own improvement.

5. I am strongly of the opinion that, if the Filipino is to be depended on for skilled labor in Government work at this yard, it will be necessary to maintain a well-organized force of competent American foremen for many years to come. The younger men will slowly but surely improve as they come in contact with improved methods and are compelled to use them daily. In this connection it is believed that the apprentice system, if largely extended so as to take in a much greater percentage of apprentices than now employed, will result in marked improvement in the force of mechanics.

6. The same remarks apply to unskilled as to skilled labor, as many of the younger men employed as helpers gradually learn the trades and make fairly good mechanics. Very respectfully, W. P. ROBERT, Assistant Naval Constructor, U. S. Navy, Head of Department.

The COMMANDANT.

EXHIBIT P.

PROPOSED RAILWAY LINES IN THE ISLAND OF LUZON.

[Report of J. T. Norton, C. E., published by the Bureau of Insular Affairs, War Department, July, 1903, as Doc. No. 206.]

WASHINGTON, D. C., June 30, 1903.

HON. W. H. TAFT,

Civil Governor Philippine Archipelago.

DEAR SIR: In accordance with your verbal instructions, have made a reconnoissance of the proposed railway lines in northern Luzon, and have the honor to submit the following report and estimate of cost:

MANILA TO APARRI.

Manila terminal.-Will be governed almost entirely by the cost of right of way and whether passage can be had through government lands. Access should be had to the new harbor south of the mouth of Pasig River, or to the same river, on south side, below the Bridge of Spain. If neither of these projects is possible, then to the Pasig River above the Bridge of Spain. Terminal switching yards, shops, storehouses, etc., should be located as near Manila as an advantageous site can be had at a reasonable cost.

Route.-As shown on accompanying map is recommended, passing through or near the following points: Caloocan, Meycauayan, Bocave, Baliuag, San Ildefonso, San Miguel de Mayumo, San Isidro, Cabanatuan, Bongabon, Pantabangan, Carranglan, Caraballo Pass, Aritao, Bayombong, Bagábag, Ilagan, Tumauini, Tuguegarao, Nagsiping, Lal-lo, and Aparri. This follows the valley of the river Pampanga on the left bank to its head, thence over the Caraballo Pass, and down the Magat and Cagayan River valleys, on the left bank of both. It is unfortunate that all the principal towns of the Cagayan Valley are on the right bank. In spite of this, however, the left bank is recommended for the location of the line, as crossing the Cagayan would require a large sum for bridge. There seems little prospect for branches from main line to east and a very good one for branches to west. If main line were on right bank of river, such branches would have to cross the Cagayan. The majority of buildings in all the towns in this valley are of bamboo and grass construction, which are neither costly nor durable. There are alternative locations at three different points, all shown on map by dotted lines. The first crosses the Pampanga at Cabanatuan, going via Talavera, San José, and Puncan, to join the other line at Carranglan. The second is a detour to the east between Pantabangan and Carranglan to avoid 3 miles of canyon work. The third leaves the line recommended at Bagábag, going via Diadi, Estella, Carig, Echagüe, Canayan, and Reina Mercedes, to a junction with the other line between last-named place and Ilagan. These changes of line are simply possibilities that should be brought to the notice of locating engineers. A horseback reconnoissance over them will doubtless decide at once whether it is worth while to make actual surveys or not. Line recommended, as shown on map in red, is in canyon 9 miles between Bongabon and Pantabangan. Between Pantabangan and Carranglan there will also be about 3 miles of canyon work. Between Bagábag and Oscarez there is 20 miles of canyon work.

Grade.-A maximum of one-half of 1 per cent compensated can be used on entire line except on the mountain work between Carranglan and Aritao in getting over the Caraballo Pass. This has an elevation of 3,750 feet above sea level, and a grade of 3 per cent compensated will be needed. The mountain slopes are very steep and liable to slide, especially on the south side; thus it is important to lighten the work as much as possible. Development will begin on south side at an elevation of about 1,150, and end on north side at about 1,550 feet above sea level.

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