ness at ports in these islands under the provisions of section 3 of the act of Congress of March 8, 1902, entitled "An act temporarily to provide revenue for the Philippine Islands, and for other purposes. Said regulations are annexed hereto, marked "Appendix A.

On January 9, 1903, the issuance of second-class coastwise licenses was discontinued by Act No. 591 of the Philippine Commission.

By Act No. 625 of the Philippine Commission, passed February 9, 1903, the duties, public records, and property of the office of the captain of the port of Manila were turned over to the insular collector of customs, and the former office was abolished. Pursuant thereto, on March 1, 1903, the duties of harbor master, hull and boiler inspection throughout the islands, supervision of pilots at Manila, licensing of officers of all coastwise vessels, and harbor police work at Manila were assumed by this office and continue under its charge.

On March 4, 1903, the Philippine Commission passed Act No. 653, providing for the enforcement by the court of customs appeals of certain fines, penalties, and forfeitures incurred under the customs and collateral laws.

Act No. 675 of the Philippine Commission, passed March 12, 1903, extended the jurisdiction of the customs service over Cavite Harbor for the purpose of protecting the customs revenues of the islands.

On the same date Act No. 678 was passed, providing for the collection of fees on the different classes of coastwise vessels, and on customs manifests, entries, and other papers by means of customs stamps.

On May 29, 1903, the Philippine Commission, by act No. 778, authorized the insular collector of customs to commission masters and watch officers of coast guard vessels to make searches and seizures under the customs laws.

One of the most important acts relating to this office during the period of this report is No. 780 of the Philippine Commission, enacted May 29, 1903, entitled "An act providing for the examination and licensing of applicants for the positions of master, mate, patron, and engineer of seagoing vessels in the Philippine coastwise trade, and prescribing the number of engineers to be employed by such vessels." Pursuant to section 17 thereof the "board on Philippine marine examinations" was convened on July 1, 1903, for the examination of such masters, mates, and engineers as had presented themselves. Up to the present time licenses have been issued under Act No. 780 as follows:

Section 7 of said act reads as follows:

On and after August first, nineteen hundred and three, every applicant for license as master, mate, patron, or engineer of a Philippine coastwise vessel shall be a citizen of the United States or of the Philippine Islands: Provided, however, That any citizen or subject of any other country, who may be acting as master, mate, patron, or engineer of any Philippine coastwise vessel at the time of the passage of this act, may, upon application to the insular collector of customs, be granted a certificate of service, which shall authorize him to continue to act in the Philippine coastwise trade as such master, mate, patron, or engineer, as the case may be, upon his making proper showing to the board herein before created, either by the presentation of a properly authenticated license from some other recognized maritime country satisfactory to the board, or by such other evidence of competency and good character as the board in its discretion may deem sufficient: And provided further, That he shall have seen at least two years' service in the coastwise trade of these islands under the American flag, and that he shall take the following oath:

I hereby solemnly swear that I acknowledge the sovereignty and the authority of the United States in the Philippines islands and of the government constituted by the United States herein, and that while in the islands I will support and maintain the same, and that I will not at any time hereafter, while in these islands or while serving under this license at any place aid, abet, or incite resistance to the authority of the United States or of the government established by the United States in these slands, and that I take this oath voluntarily without any mental reservation whatsoever. So help me God."

Under that section the following "certificates of service" have been issued:

The forms of licenses and certificates of services are transmitted herewith, marked "Appendix B."

An act providing for the organization and government of the Moro Province, No. 787, was passed by the Philippine Commission on June 1, 1903, to take effect the following July 15. Section 13 thereof provides for the regulation by the legislative council of the Moro Province, of the use, registration, and licensing of boats of Moro or pagan construction of less than ten tons measurement, and directs that collectors of customs in that province shall follow those regulations.

It is also provided in Act No. 787 that the gross amount of customs receipts collected within the Moro Province, less the cost of their collection, shall be deposited by those collectors of customs directly with the treasurer of that province, and shall constitute a special fund to be expended in the discretion of the legislative council for provincial, district, and municipal purposes.

On July 15, 1903, this office published a "Revised Index and Repertory to the Tariff Revision Law of 1901, including Tariff Decision Circulars Nos. 1 to 300 inclusive, issued thereunder.

WAR 1903-VOL 7—33

On July 23, 1903, this office promulgated a compilation of the laws of the Philippine Islands in regard to the carriage of passengers by sea and the liability of owners, masters, and shippers on voyages to and from the mainland territory of the United States, and the laws relating to the public health and quarantine in the case of vessels entering a port of the mainland or other insular territory of the United States from the Philippine Islands, which were enacted for the islands by the following part of section 84 of the act Congress approved July 11, 1902:

The provisions of chapters six and seven, title forty-eight, Revised Statutes, so far as now in force, and any amendments thereof, shall apply to vessels making voyages either way between ports of the United States or its aforesaid possessions and ports in said islands; and the provisions of law relating to the public health and quarantine shall apply in the case of all vessels entering a port of the United States or its aforesaid possessions from said islands, where the customs officers at the port of departure shall perform the duties required by such law of consular officers in foreign ports.

Copies of Customs Administrative Circular No. 105 bearing thereon, and of Customs Administrative Circular No. 223, promulgating said compilation are attached hereto, marked Appendixes C and D.

On August 10, 1993, this office published an enlarged and revised Index to the Philippine Customs Administrative Act, and to all customs administrative circulars issued thereunder, including those promulgating acts of the Philippine Commission relating to the

customs service.

PORT OF MANILA.

On December 9, 1902, this office promulgated complete regulations for the placing of fish weirs in Manila Bay, together with a set of fees for the issuance of fishing licenses.

The limits of Manila Harbor have also been defined and published. The general business of the port of Manila has shown a steady increase during the past year, and the outlook for a greatly increased commercial activity in the near future is extremely good.

The improvement of the harbor is progressing steadily, and upon the completion of the present port works Manila will have one of the finest harbors in the world.

It has been sought to do everything consistent with the safety of the revenues to make the chief port of this archipelago attractive to commerce and shipping interests, and to compensate, so far as practicable, for the undeniable advantages possessed by the nearest and greatest shipping center in the Orient through its being a long established and free port. To this end plans have been prepared and serious consideration is being given to the establishment of a subcustom house and quarantine station at Mariveles, which is just inside the north entrance to Manila Bay, and about 30 miles from the city.

All vessels bound for Manila would be boarded there and given both quarantine and customs clearance, so that no delay whatever would occur for either passengers or cargo upon the vessel's arrival in this port.

In this connection a well-equipped, modern semaphore station will be established at Corregidor Island and be connected with this port by both submarine cable and land wires. Through this station all vessels will be reported on arriving within 50 miles of Manila by day, or within 40 miles at night.

Under the supervision of the harbormaster of Manila large quantities of hydrographic forms and notices are distributed to incoming vessels and similar information and weather reports are collected for the local hydrographic office and head office at Washington.

The greatly increasing business at the port of Manila and the number of additional offices placed under the supervision of the insular collector made necessary a substantial enlargement of the customhouse. Seventy-five thousand dollars were appropriated and have been expended in doubling the original amount of office room and providing suitable quarters for the insular surveyor's divisions. Office accommodation has also been provided for the Marine-Hospital Service, a branch telegraph office and a branch post-office with a money-order department.

The centralization of these offices which treat constantly with the shipping interests will be of great benefit and convenience to the public.

The office of the insular surveyor of customs at Manila has been greatly improved in organization during the past year, and its scope extended to include the additional duties taken over from the former office of the captain of the port.

Many undersirable conditions have been remedied, notably the former congestion of the Pasig River, certain delays in the dispatch of vessels, and the overcrowded condition of customs warehouses.

The erection of a large iron fence on the east side of the customhouse has provided additional storage room for heavy goods, and the checking of all goods at the cranes where they are discharged from the lighters has given additional security against the loss or misplacement of packages. Wharf deliveries are now made whenever possible, with corresponding saving of time and expense.

The past year has also been marked by a decided increase in the number of vessels discharged under the "running-check system," which means much quicker dispatch-an especially important matter for mail and regular passenger steamers. This plan has been supplemented by the practice of weighing export cargoes on shore instead of on board the vessels, as formerly. The hours of work of the outdoor divisions have also been greatly extended, and all vessels which are given free pratique are boarded at once, whatever the hour. Formerly no boarding was done after 5 p. m.

A complete baggage inspection and immigration service is also maintained on all Sundays and other holidays.

During the past year the efforts of the harbormaster have been directed principally to relieving the congestion of traffic on the lower Pasig, which has been accomplished by keeping close watch on cascoes and other carriers and seeing that they did not linger at their moorings after finishing the discharge of cargo. In this work the river and harbor police have cooperated, with gratifying results.

Steamers and sailing vessels are now required to conform to the time limit for handling cargo and remaining at berths in the river, instead of space being taken up by empty vessels or vessels waiting to sell or secure cargo. The pilots are instructed to see that they do not remain in the river longer than is necessary.

Constant surveillance is now being kept to see that all carriers requiring licenses secure same, and all found delinquent in this respect are detained until the customs requirements are complied with.

The heavier carriers, such as lorchas and iron lighters, have been congregated behind the breakwater in close order, where they can be readily reached when needed in the bay but at the same time are out of the way of river traffic.

Mooring space for ocean steamers behind the breakwater has been sought by several shipping firms desirous of placing heavy ground tackle and buoys adequate to hold large vessels in any weather; but such space has not been definitely decided upon and can not be so until the harbor improvements will admit of the selection of permanent mooring berths.

When fishing licenses are taken out the holders thereof are required to go with the harbormaster, in launch, to the location where the licensee wishes to place a corral. Soundings are taken to see that the depth conforms to the terms of license, and care is had that the corral does not encroach on other lines and is out of the track of navigation. The mouths of the esteros emptying into the Pasig River have been cleared of wrecks and other débris, and nothing is allowed to remain therein that will in any way impede or obstruct the passage of the waterway. A semaphore station is also being established on the Manila custom house.

PORT OF ILOILO.

The business of the port of Iloilo has shown a healthy growth during the past year, especially in exports, which show a handsome balance of trade over the imports of that district. The increased exportation of sugar has been particularly noticeable. Reports show that sugar planters have gained sufficient confidence in the prospect of the practically free admission of their product into the United States to make them increase their acreage and calculated crop for this year some 50 per cent over last year.

PORT OF CEBU.

The port of Cebu, as an importing, exporting, and local shipping center, has taken a remarkable step forward during the past year, and in those interests it is second only to Manila at the present time. This progress has been permanently assured by the appropriation of $350,000 for port and harbor improvements which was made in February last. Extensive plans for executing this work at an early date have been prepared and proposals invited.

QUASI-CONSULAR DUTIES.

Under section 84 of the act of Congress approved July 1, 1902, the laws relating to seamen on foreign voyages were applied to seamen on vessels going from the mainland territory of the United States and its other possessions to these islands, and Philippine customs officers were for this purpose substituted for United States consular officers in foreign ports.

Prior to July 1, 1902, those duties were performed by collectors of customs here under authority of circular No. 16, Division of Customs and Insular Affairs, War Department, promulgated in General Orders No. 26, Office of the United States Military Governor in the Philippine Islands, Manila, July 4, 1899.