Helm, chief of the bureau of coast guard and transportation; also, supplemental reports for the months of July and August, 1904, and reports of the light-house engineer, light-house inspector, marine superintendent, and paymaster.

BUREAU OF ENGINEERING.

The work of this bureau has been constant and increasing, and it is certain that with the development of the resources and growth of the commerce of the islands its field will assume greater and greater proportions. The work is classified into a division of records, division of surveys, division of construction, division of drafting, division of provincial supervisors, and division of railroads. The chief of the bureau recommends the creation of a division of irrigation and a division of geography. The former officer could well devote all his time to improvements of rivers and waterworks and the maintenance of existing systems of irrigation, which, from lack of proper attention, are suffered to deteriorate; and the latter is urgently needed to supply a suitable map of the islands and collate all the information which is being brought in from various sources, which show inaccuracies in the existing maps to a degree that makes them unreliable for many practical purposes.

A general review of the work of the bureau brings into prominence some extremely interesting facts. During the year the insular government has engaged in the construction of 274 miles of new road, of which part is completed and part still remains unfinished. The money for these has been appropriated principally out of the Congressional relief fund. The bureau has completed surveys and made recommendations in regard to 157 miles of additional road.

The development of roads is probably the most important step in the development of the commerce of the islands. The Spaniards made a practice of diverting to other uses money raised for the maintenance and repair of roads, and thus it seldom accomplished its real purpose. Practically the only work which was done on the roads came from compulsory labor under the laws which then obtained. At present, during the rainy season, the narrow-tired bull carts, following one another in a single rut, wear even the best road through, making them a series of quagmires through which the bulls toil up to their knees in the mud and dragging the carts, whose wheels are submerged to the axle. This necessitates very light loads if the carts are to get through and renders any extensive movement of products or merchandise impossible.

The two main objects to be served by the development of roads are: First, military, and second, commercial. With the advent of good roads comes the advent of peace, for in the presence of quick transportation the ladrone moves out, and until the ladrone has gone industry can not begin. The practical extinction of the ladrone brings the commercial use of the road into first place. It is necessary that the main avenues of commerce should be made passable. It seems, therefore, that the time has come for the government to change its policy and direct its energies and revenue, both provincial and insular, toward putting the existing roads in permanent serviceable condition. This can be done at a much less cost per mile than in construction of new roads and will render much greater service per

mile, and still more per dollar expended, than any new road could reasonably be expected to do. Every year the roads which are not kept up deteriorate, and it is better that the provincial revenues should be expended in keeping good roads in good repair than in making bad roads temporarily passable.

In this connection the report of the chief of supervisors is full of interest. It shows that in the aggregate the provinces completed 252 miles of new road, at a cost of about 300,000 pesos, and repaired 1,662 miles of old road, at an aggregate expense of about 400,000 pesos. There were 582 bridges and culverts built and 458 repaired. The labor, of course, was principally Filipino, and the report shows the equivalent of 1,545,801 single days' work having been done during the year. The Commission has enacted a law prohibiting the use of the narrow-tired bull cart. This law is absolutely necessary if the good roads which have been constructed and the repairs made on the old roads are to be of any permanent value. It is a very difficult matter to enforce the law, as the price of the new wheels is high, and it is difficult to compel the native to buy them, as he does not have the money. Experiments are being made in Bilibid prison looking to a reduction in the cost of this construction, and figures will soon be obtainable. It is hoped that some device may be reached which will put the right kind of wheel and axle within reach of everybody.

Next to development of roads, the improvement of the harbors of the islands merits the attention of the Commission. The approaching completion of the port works of Manila will make a demand for good harbors in the other principal ports of the islands immediate and urgent. To meet this the Commission has authorized the construction of improvements in Iloilo and Cebu, for which contracts have been let, involving about $500,000 gold for Cebu and $250,000 gold for Iloilo. These works will be started immediately, and it is anticipated that the Iloilo works will be finished in about thirteen months from date. Cebu will take nearly a year longer.

It is hoped that as soon as funds become available which can be devoted to harbor improvements the Commission will turn their attention to the most needed unimproved harbors and complete them in order of their importance, with a view to enabling ships to load and unload at wharves provided with adequate warehouses and save the annoyance, risk, and expense incident to lighterage. In this connection the chief of the bureau of engineering says:

Practically all of the harbors are lacking proper wharfing facilities. Vessels necessarily anchor about 1 mile from shore, and lighterage is accomplished by cascoes, from which the goods are packed to the beach by men or carabao carts, which are driven as far as possible into the surf. The resulting expense in the discharge or shipment of cargoes is large, and considerable damage to the goods is incurred.

The large number of rivers navigable for vessels of light draft present a system of communication of extraordinary promise to the development of the islands, and it is estimated that a single dredger operating continuously on the various bars which obstruct the mouths of all these rivers would render a great service to the coastwise trade at a comparatively small expense.

Some of the rivers of these islands present features worthy of note. The heavy rainfall and precipitous watersheds present a condition

that brings about floods, and many of these rivers are known to rise 20 or 30 feet in the course of a few hours, causing very severe damage to property and often menace to life. The Commission has received from various provinces petitions to have controlling works undertaken to prevent fertile lands or fine buildings from being destroyed. Such work usually involves extremely expensive construction, often in excess of the market value of the property to be saved, and it has been impossible to undertake this work for lack of funds.

The bureau has investigated several water powers during the year, and it is hoped that the high price of coal may be offset in soine measure by development of water power. It is common practice in the United States to carry large amounts of power distances ranging from 30 to 150 miles, and there is reason to believe that within reach of Manila there is more than one good water power the development of which will materially decrease the cost of power in the city. It is by no means certain that electric power is not the proper motive power for the railroads of these islands, and this feature lends great importance to these investigations.

Appended to the report of the bureau of engineering, under the division of railroads, is a very complete statement of the business of the Manila and Dagupan Railroad. The most noticeable feature in this is the enormous increase in the third-class passenger business, which is carried to a point far in excess of anything in the previous history of the railroad.

The demand for additional railroads is constant, pressing, and insistent, and comes from all classes and many directions. The existing railroad company has applied for a franchise to extend its line in several directions and build new lines in others. Many other applications for franchises have been received. All action in this matter is withheld, pending decision by Congress upon the bill authorizing the Commission to guarantee interest upon the construction of new railroads. It is hoped that the company or companies which obtain the privilege of building in the most populous districts where the largest business may be reached will be induced by means of a government guaranty to build through some of the less populous regions, thus serving the double purpose of developing the resources of the regions now out of reach and bringing the fertile and populous regions beyond into closer communication with Manila. It is very desirable to have a railroad from Manila to the fertile and populous province of Batangas, and it is hoped that such a road could be extended so as to reach the rich and populous hemp districts at the southern part of Luzon. Another district of Luzon which it is very desirable should be brought within reach of Manila is the great and fertile valley of the Cagayan River, with its immense potential wealth and proved fertility. It is also desirable that the west coast of Luzon, from Dagupan to Vigan, and perhaps Laoag, be reached by railroad."

During the year this bureau has completed surveys of the so-called "friar lands" agreements for the purchase of which have been entered into by the government. This work was complicated by the fact that the title submitted did not have accurate plans and boundary marks in every case, and the title to the land in question involved a good many questions of ownership.

For additional information and details attention is called to annual report of Mr. J. W. Beardsley, consulting engineer to the Commission,

for the fiscal year, and supplementary report for July and August of 1904, to which are attached reports of the railroad engineer and of the chief of supervisors.

BUREAU OF POSTS.

During the year the business of the post-offices showed a steady growth, the number of post-offices having increased from 213 at the beginning of the fiscal year to 3,191 at the close. As very few of these additional post-offices are self-supporting, it is the policy of the Commission to go slow and not increase the number of post-offices further at present. They have limited the number to be established during the present fiscal year so as not to exceed a total of 450 postoffices in the aggregate. This step was taken purely in the interest of economy.

The post-office in Manila is now moved into its new location in the Cuartel Fortin Building, which gives better space and more than double the facilities of its previous site, but at best can be regarded as a temporary expedient.

Too large a proportion of the mail is carried under official frank, and is not revenue producing. It may be necessary to take measures to protect the government from improper use of the mails in this

way.

Regulations are now in force providing that United States stamps not countersigned with the word "Philippines" are not accepted in Philippine post-offices, and stamps so countersigned are not accepted in United States post-offices. This change was reported to have worked little hardship.

Plans are being prepared for an issue of distinctive stamps of the Philippine Islands. The money-order business in operation at 33 offices at the beginning of the fiscal year has been increased by 30 additional offices and is now in operation at the capital city of each province. It is used largely for remittances of money to the United States, and the business continues to grow.

The director of posts speaks very favorably of the result of his employing Filipinos, and he reports that he has now 102 Americans and 287 Filipino postmasters, and 72 American and 84 Filipino clerks. This is a great increase in the proportionate number of Filipinos employed the preceding year, and is very gratifying. Some improvement has been made in the transportation during the year, both as regards regularity and frequency. Much of this is due to the establishment of coast guard routes and the service given by the army transports. It is hoped that arrangements may be completed by which this business will be done more and more by commercial lines.

For additional information and details attention is invited to annual report for the fiscal year submitted by Mr. C. M. Cotterman, director of posts.

BUREAU OF PRISONS.

The Commission has ruled that wherever prisoners are sentenced for more than two years in any of the provinces they shall be transferred from the provincial jail to Bilibid. Under the operation of this rule, aided by the vigilance and activity of the constabulary

in hunting down ladrones, the prisoners increased from 2,776 at the beginning of the fiscal year to 4,318 prisoners at the end, an increase of 55 per cent. This has filled up Bilibid to an extent not contemplated at the time of its construction. It is not anticipated that any such increase will occur in the present fiscal year, because the transfers from the provincial jails have been completed and the operations of the constabulary have reduced the number of outlaws outstanding to a comparatively few individuals, very small in number and adept in the art of concealment.

During the year the cost for maintenance per capita of prisoners was 33 centavos per day, or less than 17 cents gold. This takes no account of receipts from sales of manufactured articles. The prison is engaged in the manufacture of carriages, clothing for their own use, laundry, furniture, and a few specialties, but these operations have not yet developed to a point where they give anything like an adequate return for the amount of potential labor. An effort will be made to give employment to the prisoners in such a way as to educate as many as possible in some trade that will be useful to them after their release and at the same time help maintain them while in confinement. The opening of the extensive carpenter shops nearing completion will tend to bring about this result. The business of making wide-tired wheels for the provinces is one which might prove very advantageous both to the prison and to the provinces. The government has been very careful not to have prison labor compete with legitimate business enterprises in the open market. It is hoped that this policy will not be carried so far as to prevent the prison from becoming more nearly self-supporting.

The rapid increase in the prison population has necessitated several additional buildings to provide accommodation, and this work has been done mostly by prison labor.

The discipline of the prison is good, and the health as good as could be expected where there has been such overcrowding of quarters as has been necessary pending completion of the new. Additional hospital facilities and more sleeping space are necessities if the health of the prisoners is to be preserved. It is noticeable that with the substitution of bread for rice in the native rations beriberi has almost disappeared. Considering the calls that have been made on it during the last year, the prison has been carried on in a high state of efficiency, and it speaks well for the corps of officers. The fine physique of the long-term prisoners, who have thrived under the regular life and good food accorded them, is in sharp contrast to the appearance of the short-term prisoners, who present the more emaciated appearance, which is characteristic of the Filipino of the lower classes.

For additional information and details attention is invited to annual report of Mr. M. L. Stewart, acting warden, and his supplemental report for the months of July and August, 1904, to which are attached reports of the resident physician and of the chaplain.

BENGUET IMPROVEMENTS.

The construction of the Benguet road is being pushed rapidly to completion. Col. L. W. V. Kennon, the officer in charge, has proved himself capable of surmounting the many obstacles which present