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ANNUAL REPORT OF THE PHILIPPINE COMMISSION.

MANILA, November 7, 1911.

SIR: The Philippine Commission has the honor to submit its twelfth annual report covering the fiscal year ended June 30, 1911.

LEGISLATION.

EXCLUSIVE LEGISLATIVE JURISDICTION OF THE COMMISSION.

Acting within its exclusive general legislative jurisdiction over all that part of the Philippine Islands inhabited by Moros or other nonChristian tribes, the Commission enacted during the fiscal year 21 acts, of which the following are the more important:

An act authorizing the grantee of the franchise to install, operate, and maintain an electric light, power, and water supply system in the municipality of Zamboanga, Moro Province, Philippine Islands.

An act to provide for the granting of a franchise for the use of the waters of the Agno River in the subprovince of Benguet, Mountain Province, for the generation of power for the maintenance of an electric light, heat, and power system and the supply of such light, heat, and power in and to the city of Baguio and in the subprovince of Benguet, Mountain Province.

An act establishing a sales agency for articles manufactured in the schools in the provinces inhabited by Moros and other non-Christian tribes and by the people of said provinces, and appropriating money for the construction of a suitable building for the same, and for other purposes.

AS A CHAMBER OF THE PHILIPPINE LEGISLATURE.

The first regular session of the Second Philippine Legislature convened on October 17, 1910, and continued in session until and including February 3, 1911. This was the only session of the Legislature held during the fiscal year.

During this session there originated in the Commission as a Chamber of the Philippine Legislature 63 bills, of which 48 were passed by the Commission and sent to the Assembly. During the same period there were considered by the Commission 98 bills, which originated in the Assembly. The total number of bills finally agreed upon by both Houses and enacted into law was 50, of which 17 originated in the Commission and 33 in the Assembly. Of these laws the following are the more important:

An act authorizing the municipality of Cebu, Province of Cebu, to incur an indebtedness of one hundred and twenty-five thousand dollars in money of the United States, and to issue bonds covering the amount of said indebtedness, payable in gold coin of the United States, for the purpose of providing funds

to construct necessary sewer and drainage facilities to secure a sufficient supply of water and necessary buildings for primary public schools in said municipality, pursuant to the provisions of sections sixty-six, sixty-seven, sixty-eight, and sixty-nine of the act of Congress approved July first, nineteen hundred and two, entitled "An act temporarily to provide for the administration of the affairs of civil government in the Philippine Islands, and for other purposes," as amended by the act approved February sixth, nineteen hundred and five, entitled "An act to amend an act approved July first, nineteen hundred and two, entitled 'An act temporarily to provide for the administration of the affairs of civil government in the Philippine Islands, and for other purposes,' and to amend an act approved March eighth, nineteen hundred and two, entitled 'An act temporarily to provide revenue for the Philippine Islands, and for other purposes,' and to amend an act approved March second, nineteen hundred and three, entitled 'An act to establish a standard of value and to provide for a coinage system in the Philippine Islands,' and to provide for the more efficient administration of civil government in the Philippine Islands, and for other purposes."

An act to amend act numbered eighteen hundred and sixty-five by increasing to sixty per centum of the value of the mortgaged property the amount which may be loaned by the Agricultural Bank.

An act to provide for an exposition of Philippine products in the city of Manila, to appropriate funds therefor, and for other purposes.

An act providing for an appropriation of one million pesos for the construction of schools in the municipalities and barrios of the Philippine Islands under certain conditions.

An act amending paragraph numbered five of article five hundred and three, and articles five hundred and eight, five hundred and twelve, and five hundred and twenty of the penal code, by imposing a severer penalty for the crimes of robbery and theft of large cattle.

An act entitled "The negotiable instruments law."

An act authorizing the granting on certain conditions of a franchise to construct, maintain, and operate a street railway in the municipality of Cebu.

An act amending Chapter VI of act numbered one hundred and thirty-six, entitled "An act providing for the organization of courts in the Philippine Islands," by prescribing the manner in which notaries public shall keep their official registers, and providing for supervision over notaries public and for the final disposition of notaries' registers, amending section seven hundred and ninety-one of act numbered one hundred and ninety, known as the "Code of civil procedure," so as to increase the fees which notaries public may collect in certain cases, and for other purposes.

An act to provide for the granting of a franchise to construct, maintain, and operate gas systems for the furnishing of gas for heat, lighting, and power in the city of Manila and the province of Rizal, Philippine Islands.

An act amending certain sections of acts numbered one hundred and thirtysix, one hundred and ninety, fourteen hundred and fifty, sixteen hundred and twenty-seven, introducing certain reforms in the justice of the peace courts, making an appropriation for the purpose thereof, and for other purposes.

An act to provide that all elective provincial and municipal offices shall be for four years; to prohibit a second reelection to the same; to change the date of the general elections; to amend certain sections of act numbered fifteen hundred and eighty-two, known as "The election law," and for other purposes.

An act to relieve the provinces by appropriating the sum of one million pesos to be used to assist them in the construction of roads and bridges and to define the relation between the provinces, the bureau of public works, and the insular treasury in regard to the settlement of mutual accounts.

An act appropriating the sum of fifty thousand pesos, or so much thereof as may be necessary, to be expended subject to the approval of the Governor General, together with an equal amount to be contributed by private persons interested in the development of the Philippine Islands, to advertise in the United States Philippine products and interests, and for other purposes. An act making appropriations for public works.

The following are some of the important matters considered by the Legislature, but which failed of final passage:

An act to provide a system for the appropriation of public waters, and for the determining of existing rights thereto; for the public registration of all

water rights; for the creation and use of water power; for investigations for and the construction, maintenance, and operation of irrigation systems by the Government of the Philippine Islands; for the construction, maintenance, and operation of irrigation systems by private persons; for the inspection and regulation of all works pertaining to the use of water; and providing penalties for its violation; and for other purposes.

An act amending articles 56, 57, 106, 250, 252, 300, 301, 303, and 316 of the penal code, by making certain changes in the penalties.

An act providing certain special proceedings for the settlement and adjudication of land titles.

An act to provide for the collection and apportionment between the insular, provincial, and municipal governments of taxes paid by the grantees of franchises, their lessees, successors, or assigns, on the gross earnings or receipts from the buiness covered by the law granting the franchise or any amendment thereof.

An act providing for the investment of the accretions to the gold-standard fund in loans to the provinces and municipalities for certain purposes, in securities authorized for the investment of funds of the Postal Savings Bank, and in interest-bearing bonds to assist in the construction of sugar centrals, and for other purposes.

A uniform warehouse-receipts bill.

An act prohibiting slavery, involuntary servitude, peonage, or the sale of human beings in the Philippine Islands.

An act establishing and defining a legal rate of interest, and declaring the effect of usury upon contracts.

An act defining habitual criminals and fixing the punishment for the same. An act to provide for a locust board, to specify the persons liable for service in the control of locusts, to provide a system for the extermination of the locust pest, and for other purposes.

An act to prevent the introduction into the Philippine Islands of dangerous communicable animal diseases, to prevent the spread of such diseases within the Philippine Islands, to define the duties of officials charged with the contro! of such diseases, and for other purposes.

An act making appropriations for sundry expenses of the insular government for the fiscal year ending June 30, 1912, and other designated periods.

The Legislature having failed to pass the appropriations for the current expenses of the Government for the fiscal year 1912, section 7 of the act of Congress of July 1, 1902, became operative and the expenses necessary for the support of government are being paid in accordance with the provisions of said section.

RESIDENT COMMISSIONERS.

The two Houses were unable to come to an agreement in the matter of the election of Resident Commissioners to the United States for the term beginning March 4, 1911, as then provided by law. This failure, however, was remedied by the act of Congress of February 15, 1911, providing that the present Resident Commissioners shall hold office until their successors are elected and qualified.

COMMERCIAL DEVELOPMENT.

The second year of experience with the Payne bill has demonstrated beyond a doubt its importance to the Philippine Islands, and each succeeding year will prove the cumulative value which the freedom of the markets of the United States is to the Philippine people. The increase in the price of sugar and tobacco and the constant improvement in the market for copra have caused the present prosperity in many Provinces, in which the cry of hard times can no longer be raised. This is especially so in Occidental Negros,

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