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one tree species; dozens of varieties grow in each forest, but rarely more than three or four trees of one variety found grouped together, so that any lumberman looking for a shipload of any one species would find it impossible to cut that and no other, but would be obliged to procure the same by purchase from men operating in different sections. Lumbermen must be willing to take dozens of varieties of tree species; these species may not be desired by the lumberman, but the forester must get rid of them. A plan of exploitation should be provided in advance by the Forestry Bureau and then submitted to the lumbermen interested, and have the forests cut as per said plans, either by contract or by the payment of the State price per cubic foot.

SURVEYS.

Before such can be done, however, it will be necessary to make a survey of the public lands.

Triangulation surveys can be made at the present time, and as conditions permit the detailed work can follow.

Then the forest surveys may be made and the amount and kinds of standing timber reported upon. Plans of exploitation would then be possible, and the lumbermen would know where to go to cut the timder desired and the amount available.

CONCLUSIONS.

From the above it is evident that there is a very large area of very valuable public forest land in these islands, that these forests are, as a rule, not at present available, due to the lack of roads and skilled lumbermen. The present personnel have not been well trained and have never practiced scientific forestry; the public forest lands are unsurveyed and the amount of standing timber unknown.

We must begin at once with the personnel; the students about to graduate in the colleges here should be shown the advantages of a career in the forestry service and a forestry class started, so that when scientific forestry is begun we will have properly trained men to assist in the work.

Large lumber companies will not be ready to do much work here for at least one year. By that time we will be ready with an administrative and protective force.

The aim of the forester is to improve the forest until a given area produces each year a maximum of wood of the most desirable species. A careful study of the desirable species is of first importance. The undesirable species must be cleared away, and by thoroughly and scientifically exploiting any one good forest tract the great increase in value of the same will be apparent, and a policy of rational forestry encouraged in these islands, which policy in time will make these forests a source of great wealth, will afford employment for many thousand men, will make such islands as Mindoro habitable, will regulate the water flow, and will afford ready communication through what is at present impassable and deadly jungle.

Very respectfully,

GEORGE P. AHERN,

Captain, Ninth U. S. Infantry, in Charge of Bureau.

APPENDIX LL.

DEPARTMENT OF POSTS OF THE PHILIPPINE ISLANDS,

OFFICE OF DIRECTOR-GENERAL OF POSTS,

Manila, August 20, 1900. SIR: I take pleasure in submitting herewith my second annual report for the department of posts of the Philippine Islands for the year ending June 30, 1900.

During the year decided progress has been made in opening postoffices, and it has been the endeavor of this department to have an office in charge of an American clerk at every point where the number of troops made it impracticable for the army mail orderlies to properly attend to the receipt, distribution, and dispatch of the mails. Very early in the year the question arose as to the manner of procedure in providing mail facilities to the army posts scattered throughout the islands, of which there are about 400. The employment of natives as postmasters or mail carriers was not to be considered, because of their ignorance of our language and the fact that they have no conception of the duties required and could not be depended upon in the existing state of affairs. Reliable American clerks could not be secured from the States at less than $1,400 a year, and it was a foregone conclusion that if I attempted to bring out American clerks to supply these army posts it would be at the cost of the public civil funds of the islands, as the revenue from the sale of stamps would not meet the expenses. At posts where there were few companies, and all of one regiment, a postmaster would have to deliver mail on its arrival to the army mail orderly, and the only benefit he would confer upon the post would be in the selling of stamps and the handling of registered matter. Such duties would not employ his time and, on the other hand, they would not overburden the army mail orderly if assigned to him.

During the Spanish régime there was but one post-office in each province having a paid official in charge. At all other points it was made by law the duty of the principal officer of the city, or town, to handle the mail as part of his official duties and without compensation. This fact in itself, substantiated by the old Spanish records, demonstrates that the correspondence of all the interior towns was very limited. It was certain, therefore, that American postmasters located at such points would be for the sole benefit of the Army, but would be maintained at the expense of the public civil funds.

Under these conditions I decided that it would not be proper to bring over a lot of American clerks for employment at places where their duties would not occupy their time and where they would be a source of expense to the Government.

The Army Regulations provide that the adjutant of every army post shall have charge of the mail to and from the post. There exists no reason at the present time why the army posts scattered around the

Philippines should not be considered the same as similar posts in the Western States, the natives not being considered because their correspondence is as limited as that of ranchers and plainsmen at our army posts in the States. I submitted these views to Major-General Otis and stated that whenever it was thought desirable by the commander at any post I would supply him with postage stamps and arrange for the handling of registered matter by the party designated by him, which arrangement would provide for every post facilities equal to those afforded by a regular postmaster. General Otis stated his approval of the plan and issued the following order on the subject: GENERAL ORDERS,

No. 7.

OFFICE UNITED STATES MILITARY GOVERNOR

IN THE PHILIPPINE ISLANDS,
Manila, P. I., January 19, 1900.

Mail for all ports in these islands open for trade, where post-offices have not been established or civil postal employees secured, will be addressed and sent by such transportation as may be available to the commanding officer of the United States troops stationed thereat, who will promptly attend to the disposition and distribution of the same.

By command of Major-General Otis:

THOMAS H. BARRY, Assistant Adjutant-General.

Upon presentation of the facts you were pleased to approve of the measures adopted.

It seems hardly necessary to call the attention of anyone connected with the Army to the fact that delivery of mail to the Army must be made through army channels. Nor does it seem necessary to explain to anyone familiar with the situation in the Philippines that, under existing conditions, it is not possible for this department, even though so disposed, to arrange for transportation of mails over routes in the islands by private carriers. It was absolutely necessary to depend upon the Army for the transportation and proper protection of these mails, and it has been demonstrated during the past year that in most regiments the mail is given proper attention, and that considering the difficulties attendant upon the transportation to and from small detachments of troops located at interior points, it is surprising that there have not been received more complaints of lost mail.

I wish it distinctly understood that, while it has been my endeavor at all times to administer the department as economically as possible, it has not been my purpose to secure economy at the expense of efficiency.

At the present writing there are 21 post-offices in the islands in charge of Americans, 11 of which are money-order offices; and, in addition to these regular post-offices, there are 37 offices in charge of army officials, where stamps are sold and registered matter handled. From these 37 military post-offices was received a revenue amounting to $1,175.49, which amount would not have paid the salary of one American postmaster.

There have been tried in several provinces, where native governments have been established, a revival of the system of service maintained under the Spanish régime, for the native mails only. Under this system it was the duty of the presidente of each town to attend to the mail for and from his town, and without compensation. It was made the duty of each town to provide regular carriers to adjoining towns, and these carriers worked out a portion of what corresponds to our road tax in this manner. In authorizing the reestablishment of

this service it was thought that such action would tend to hasten the coming of peaceful conditions, and afford the only practicable basis upon which to build a service maintained by the central government, or by the post-office department.

In the province of Pangasinan there were handled during the last quarter of the fiscal year, by native carriers, 551 official, and 1,183 paid letters, to and from Dagupan, the central office of the province. As most of the paid letters were at the 1 cent rate, the revenue from these native mails was not more than $15 for the quarter, and gives practical demonstration of the fact that such revenues would not be of much help in the maintaining of a paid service.

The domestic rates of postage of the United States apply in the islands, excepting that I have considered it advisable to authorize a rate of 1 cent for each half ounce or fraction thereof for letters origiUnder nating in the Philippines and addressed to Philippine points; otherwise the rate on such letters would be 4 cents in the local currency. the Spanish régime all mail for the local court and municipal officials was carried free, and it was considered advisable to continue this franking privilege until such time as it was thought advisable to frame specific regulations describing the class of mail matter that may be carried under frank. A petition to have all mail matter addressed to local courts by private individuals carried free was denied.

Postal service has been maintained throughout the year on the only line of railway in the islands, service being extendea as our troops advanced, to Dagupan, the northern terminal. The franchise under which the railway company operates requires free transportation of the mails. One postal car was built for me by the quartermaster department at the time it was operating the line, and a second car has been provided by the company.

Because of the fact that conditions here are so entirely different from those in cities in the States, nine-tenths of the letters advertised. being called for by soldiers stationed at a distance from Manila, many of whom have no means for procuring the 1-cent fee required by law, it was decided best to make no charge for advertised letters.

The need for a new post-office building in Manila is urgent. While the largest mail ever received here under the Spanish régime consisted of 102 bags, we have received as many as 854 bags in one mail, and in order to secure quick dispatch of the mail for regiments outside of Manila it is essential that we be provided with space sufficient to allow the mail for several regiments to be worked by different clerks at the same time. On account of the raise in rents in Manila and the fact that there existed no lease upon the present quarters, the rent of the building has doubled, and is now $600, gold, a month. This rental will pay the interest upon the cost of a suitable building erected by the Government, and to secure efficient service as well as economy in expenditures there should be no delay in taking immediate steps toward securing a new post-office building.

The business of the money-order department has increased very rapidly, and during the year 37,734 orders were issued for $1,526,310.25. During the previous year 14,907 orders were issued for $486,074.04. There has been increased use of this department as a bank of deposit, the amount of funds so deposited in the Manila office amounting at times to more than $90,000. This amount was mainly deposited by men connected with the Army. During the year there WAR 1900-VOL 1, PT X

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was remitted to San Francisco on account of money-order service, $1,054,212.

The revenues of the department from all sources since the service was made independent, May 1, 1899, amounted to $117,848.38; the expenditures for salaries and other expenses were $98,220.05, leaving a surplus of receipts over expenditures of $19,628.33. In this surplus are not included the fees for money orders, amounting to $5,890.04, as these fees belong to the parent service in the States. Some charges due to foreign countries on account of maritime transit of foreign mails are as yet unpaid, but these amounts will not materially reduce the surplus.

The sources and amounts of revenues and statement of expenditures are set forth in tables accompanying this report, and I am satisfied that critical examination of expenditures made will not reveal any item of unnecessary or extravagant use of the public funds.

On account of the increase in the work of the general department, I found it absolutely necessary to be relieved of some of my duties, and have appointed my assistant as postmaster at Manila, fixing the salary, at the rate fixed by the law regulating salaries in the States, at $3,200 a year, this effective July 1, 1900.

The revenues of the service from the sale of stamps do not indicate fairly the amount of mail matter handled. It has been provided that United States stamps shall be valid for the payment of postage on matter mailed in the Philippines, and it is astonishing to note, judging by the amount used on mail by soldiers, how many such stamps are sent out in letters from the States. The regulations also provide that letter mail of soldiers shall be forwarded without postage being prepaid, and postage collected at office of destination. While the regulations provide that everything excepting letters must be fully prepaid, the conditions here are such that many soldiers are so located as not to be able to purchase stamps, and I decided that it would be proper to forward all mail matter mailed by soldiers in the field without the prepayment of postage. This means the loss of a very considerable revenue to this service and a corresponding gain to the revenues of the Department in the States. By actual count of the mails going to the States, it was found that from 32 to 42 per cent of the letters dispatched were prepaid by United States stamps bought in the States or were sent without postage. These figures mean the loss to the revenues here of at least $30,000 a year.

A supply of postage-stamp books was ordered some months ago, and it is thought that these will prove of great benefit to soldiers in the field and will also increase the revenues of this service.

Almost absolute security from loss in shipment of funds of the department has been secured through an arrangement entered into between Maj. C. P. Miller, chief quartermaster, and myself. Surplus funds of postmasters throughout the islands are turned over to the local quartermasters and the receipts of these funds are transmitted to this office and then exchanged at the chief quartermaster's office for United States Treasury checks. In this manner the postoffice department avoids risks of loss in transit and the Quartermaster Department's risks are lessened by the amount thus delivered. Remittances to San Francisco during the year on money-order account ($1,054,212) were made by checks of the paymaster, quartermaster, and medical departments.

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