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expended in filling in low places in the Gatun Dam, which expenses were charged to maintenance, and in surfacing the backfill at the locks at Gatun, Pedro Miguel, and Miraflores, $32,742.32, $20,631.20, and $19.207.87, respectively, these latter items being charged to construction.

To the end of the fiscal year there had been expended for the construction of the terminal facilities at Cristobal $2,189,885.88, of which $2,049,695.24 were for the coaling plant and $140,190.64 for the fuel-oil plant. For the terminal facilities at Balboa there had been expended $10,649,893.92, of which $433,200.83 were for preliminary work, etc., $681,134.27 for preparation of site, $41,137.01 for a concrete drainage culvert over the Curundu River, $1,176,582.70 for dredging the inner harbor, $1,796,690.06 for the construction of the main dry dock, $883,036.35 for the construction of the coaling plant, $376,036.35 for the excavation on the entrance basin to the dry dock and coaling plant, $2,788,221.14 for the construction of the shops, $165,135.17 for the construction of the shop office building, $511,566.08 for the construction of the storehouses, $1,605,466.65 for the construction of the quay walls and pier, and $241,636.83 for the construction of the fuel-oil plant and for dredging a berth for the oil ships.

In the preparation of the permanent townsites, there have been expended to the end of the fiscal year $927,678.68 for the town of Balboa-Ancon, $116,672.82 for Pedro Miguel, $151,986.63 for La Boca, $53,062.30 for Cristobal, and $13,694.07 for Gátun, a total of $1,263,094.50. Expenditures at Cristobal and Gatun were wholly for underground duct lines and street-lighting systems, while those at the other towns include roads, sewers, water mains, etc.

There have been expended to the end of the fiscal year $2,827,383.74 for permanent buildings, distributed among the various classes of buildings as follows: Administration building, Balboa Heights, $923,294.49; other office buildings, $671.76; storehouses, $57,206.07; dwellings for gold employees, concrete, $1,085,750.08, new wooden buildings $17,459.65; reerected wooden buildings, $229,541.02; dwellings for silver employees, $193,004.71; hotels and messes, $10,194.91; miscellaeous buildings, $107,171.69; health-department buildings, $183,883.76; and $19,205.60 for designing and drafting.

The above amounts are the direct division costs and do not include overhead expenses.

During the fiscal year the gravel plant at Gamboa produced 377,871 cubic yards of sand and gravel at an average cost of $0.7104 per cubic yard.

Since January 2, 1915, when the electric power producing system was permanently placed in operation, there have been distributed 13,965,587 K. W.II. The average cost of production per K. W. H. has been $0.0067 and the average distributed cost $0.0099.

GEO. W. GOETHALS,

Governor, The Panama Canal. Hon. LINDLEY M. GARRISON,

Secretary of War, Washington, D. C.

REPORT OF THE CHIEF OF THE BUREAU OF INSULAR

AFFAIRS.

WAR DEPARTMENT,
BUREAU OF INSULAR AFFAIRS,

Washington, September 30, 1915. SIR: I have the honor to submit the following report of the Bureau of Insular Affairs for the fiscal year ending June 30, 1915.

I. PHILIPPINE ISLANDS.

PERSONNEL.

There have been no changes in the personnel of the Philippine Commission or supreme court since the date of the last annual report.

DEPARTMENT OF MINDANAO AND SULU. That the transfer of the government of the Moro Province, now known as the Department of Mindanao and Sulu, from military to civil control, as outlined in the last report, was justified seems to bə proven by the excellent conditions as to peace and order that have prevailed during the year. There have been no serious disorders or disturbances, and conditions generally throughout the department were never better.

In order to accomplish the complete unification of the people of the Moro Province with other inhabitants of the archipelago, the policy has been adopted of extending to the department the general laws of the islands and the general forms and procedure of government followed in other Provinces, subject to such limitations for the time being as are necessitated by special local conditions.

LEGISLATION. In the last annual report there was a reference to the bill providing a new organic law for the Philippine Islands which had been intro duced by Mr. Jones, of Virginia, the chairman of the Committee on Insular Affairs, in the House of Representatives, on July 11, 1914.

Thereafter this bill received the consideration of the Committee on Insular Affairs. It was, in a slightly modified form, introduced by Mr. Jones on August 20, 1914, as H. R. 18459, Sixty-third Congress, second session, and under date of August 26, 1914, it was reported to the House. The minority report was submitted on August 31, 1914. On October 14, 1914, the bill, after debate and with several amendments, passed the House of Representatives.

As the Senate Committee on the Philippines contemplated extended hearings on the bill, it was not taken up by that committee during that session of Congress, but on the day of the opening of the next session of Congress Senator Hitchcock, chairman of the Committee on the Philippines, submitted a Senate resolution authorizing his committee to subpæna witnesses and to take the other steps necessary to hearings on this bill. The hearings were quite exhaustive and on February 2, 1915, the bill was reported to the Senate, but did not reach a vote prior to the end of the Sixty-third Congress on March 4, 1915.

The Philippine Government was earnestly desirous of the passage by Congress of several bills of local interest, but insomuch as the proposed organic act, had it passed, would have given to the Philip

pine Government full power to legislate on these subjects, their passage was not urged at the last session of Congress.

During the last session of the Philippine Legislature it became evident that it would be necessary to provide additional sources of revenue, and the legislature passed an act amending the internalrevenue act in force in the Philippine Islands. While the internalrevenue act itself was an act of the Philippine Legislature and was subject to amendment by that legislature, certain of the objects on which the tax authorized was assessed were imported articles, and the tariff in force in the Philippine Islands being a congressional act, the question arose as to whether by imposing an internal-revenue tax on such articles the Philippine Legislature did not encroach ou the field occupied by the customs tariff,

To avoid this difficulty, Congress included in the general deficiency bill a provision legalizing, ratifying, and confirming the act of the Philippine Legislature. Whether this was necessary or not, it had the effect of preventing extended litigation.

Other important laws passed by the Philippine Legislature during the year are an act revising the insurance laws and regulating insurance business in the islands, an act reorganizing the health service, an act amending the law regulating the practice of medicine and surgery in the islands and providing for the examination and registration of nurses, an act regulating the creation and operation of ruralagricultural cooperative associations, an act reorganizing the courts of first instance and transferring thereto the jurisdiction of the court of land registration, and an act promoting the establishment of sugar centrals.

AUTHORITY OF THE INSULAR COLLECTOR OF CUSTOMS AS TO

SHIPPING.

Under the act of Congress of August 18, 1914, providing American registry for foreign-built vessels, and the act of March 4, 1915, for the issuance abroad of provisional certificates of registry for vessels purchased by citizens of the United States, the insular collector of customs was authorized by the President to perform the consular functions incident to such transfers.

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DRAWBACK OF INTERNAL REVENUE TAX. Under the provisions of the tariff act of October 3, 1913 (pars. C and D), merchandise shipped from the United States to the Philippine Islands and Porto Rico was exempt from the payment of internal-revenue tax. The Treasury Department decided that these provisions applied only to articles upon which the tax had not been paid and did not permit a drawback on tax-paid articles. By an act of Congress approved March 4, 1915, such drawback was allowed.

COURTS OF FIRST INSTANCE. An important change was made in the organization of the courts of first instance, effective July 1, 1914. The islands were redistricted and the number of judicial districts increased to 26. Coincident with this reorganization the court of land registration was discontinued and jurisdiction in cases for the registration of land titles was transferred to the courts of first instance. A central office, known as the general land registration office, was created which handles the administrative work in connection with the registration of land titles.

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HEALTH. During the year the principal activities of the bureau of health were its campaigns against soil pollution, for pure-water supplies for towns and villages, and against a threatened epidemic of cholera. Cholera appeared at Manila in July, and shortly thereafter at widely separated points in Luzon. By the close of the year it had been almost completely stamped out. At the same time the antiplague work continued unremittingly and with apparent success, as tho last known case of either rat or human plague was on September 12, 1914.

The health authorities have continued to encourage the construction of modern market buildings and the drilling of artesian wells by municipalities throughout the islands, as experience has shown that such measures are prime factors in improving the public health.

In addition to the General Hospital in Manila, the bureau of health maintains 3 first-class and 4 smaller hospitals in provincial towns; also 3 hospitals and 47 dispensaries in the Department of Mindanao and Sulu. Vaccination and municipal sanitation are being carried forward rapidly in that department.

COMMERCE. The total value of the foreign commerce of the Philippines during the fiscal year ending December 31, 1914, was about $4,000,000 below that of the previous year. The decline, due principally to the European war, was in the import trade, the value of the exports increasing approximately a million dollars. These export returns indicate a revival in the production of the great staples, particularly of sugar and hemp, although the war has seriously affected the latter industry and exports of fiber fell off heavily during the latter half of the year. The quantity of copra shipped increased markedly over the previous year, but owing to much lower prices the value was a million and a half dollars less than in 1913. The value of the cigar trade also declined and special efforts are now being made to revive and encourage the American demand for the product.

The United States purchased approximately one-half of the exports from the islands and American goods constituted about one-half of the imports. The following statements show a comparison with previous years of the import and export trade of the Philippine Islands:

IMPORTS. Imports for the years 1906–1914, exclusive of gold and silver, were as follows:

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EXPORTS.

Exports for the years 1906–1914, exclusive of gold and silver, were as follows:

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