SPECIAL REGULATIONS FOR SMALL VESSELS IN THE MORO PROVINCE. Pursuant to Act No. 787 of the Philippine Co nmission, the Moro provincial council on May 4, 1904, passed Act No. 47, as follows: AN ACT subjecting the use, licensing, and registration of boats of Moro or pagan construction to the provisions of the general customs administrative law. By authority of the Philippine Commission, be it enacted by the legislative council of the Moro Province, That the use, registration, and licensing of boats of Moro or pagan construction of less than ten tons' burden shall be governed by the provisions of the general customs administrative law of the Philippine Islands and the regulations of the insular collector of customs: Provided, That collectors of customs may, in their discretion, when they shall have reason to believe that any Moro or other non-Christian making unauthorized use of such boats has acted in good faith and through excusable ignorance of the law, remit the penalty imposed for the first offense. SEC. 2. The governors of districts, the headmen of tribal wards, and any person who shall be authorized in writing by the governor of the Moro Province, are authorized to seize boats of Moro or pagan construction of less than ten tons' burden found engaged in the coasting trade in violation of law, without warrant, and to deliver the same immediately to the collector of customs at the nearest open port. The headman of each tribal ward shall receive for each boat belonging to a resident of his tribal ward which shall be voluntarily presented for admeasurement and licensing during the year nineteen hundred and four the sum of fifty centavos Philippine currency, to be paid by appropriation from provincial funds, under such regulations as the treasurer of the Moro Province shall prescribe. SEC. 3. Subject to annulment or amendment by the Philippine Commission, this act shall take effect on its passage. Enacted, May 4, 1904. By section 6 of Act No. 898 of the Philippine Commission, the size of vessels which might take foreign goods into the ports of Bongao, Cape Melville (now Balabac), and Puerto Princesa was reduced from 30 tons burden to 5 tons, provided that said vessels should be of Philippine construction. The reason for this departure from the general rule in the case of these ports in the southern islands was the peculiar fact that a great amount, indeed most, of the freight carrying in this archipelago, and especially in the southern groups of islands, is done in vessels of 5 tons, and in many instances less, burden. As was stated in the last report of the insular collector of customs, much of the smuggling which has been carried on from Borneo to the southern islands of this archipelago has been done in vessels of less than 5 tons burden. Recent reports show that even the 5 tons minimum has caused considerable dissatisfaction among the natives trading between Borneo and the ports of Bongao and Balabac. Long-established custom has caused the natives to regard these waters as their legitimate highways, and their boats, of whatever construction and tonnage, as their natural and rightful carriers, so that even the present slight restrictions create strong inducements for them to disregard the law and engage freely in illegitimate trade. It is estimated that fully one-half to two-thirds of the trading between Borneo and these ports is being and will continue to be done in boats of less than 5 tons burden. The present law also bars the natives of Borneo from employing their own boats in legitimate work, although they have shown some disposition to come to the entry ports with their small cargoes, if the law is changed. In view, therefore, of the fact that it is impracticable at this time to enforce the law against all or even a majority of the offenders, it is recommended that said Act No. 898 be amended so as to permit trade to be carried on with the ports of Bongao and Balabac in vessels of any size or construction, and further, that Act No. 578, amending section 284 of the Philippine customs administrative act, be amended by providing that vessels of less than 10 tons burden clearing at these ports for a foreign port be liable to a fee of only 20 cents Philippine currency. The present fee of P4 for each foreign clearance in most instances equals from 5 to 15 per cent of the value of the vessel, and is likewise disproportionate to the values of the cargoes carried. The collector of customs at Jolo recommends that the minimum tonnage of vessels which may enter his port with foreign goods be reduced at least to 2 tons, since the number of small Moro boats which enter Jolo exceeds the combined entries of the two ports above mentioned, and because of the well-established fact that these boats, with or without license, of large or small tonnage, will and do go to British North Borneo for trade. Similar conditions prevail at the port of Zamboanga. In view of the admitted policy of making special provisions of law to meet the unusal conditions surrounding Moro and other ports in the southern islands of this archipelago, therefore it is recommended that the amendatory act above suggested for the ports of Bongao and Balabac be made to apply also to the two other southern entry ports of Jolo and Zamboanga. OFFICE WORK. The office work of the Manila custom-house has shown a steady and decided increase month by month during the past two years, and the regular volume of correspondence is believed to be far greater than that of any other bureau in the islands. Actual count for several months shows that the correspondence division handled and recorded during the past twelve months over 80,000 letters received and sent, and some 22,500 Chinese certificates of residence. Over 130,000 circulars, notices, and summaries are mailed annually, a considerable portion of the same being mimeographed. COST OF COLLECTION. As stated in the first special report of the undersigned, the rate of cost of collecting the customs revenues in the Philippine Islands is considerably less than it is in the United States. The statistics of customs transactions in the United States during the fiscal year 1903, which are the latest available for comparison, show the following figures. The port of San Francisco offers the best comparison with the port of Manila: At San Francisco the fiscal year ended June 30, 1903, the sum of $7,850,705.35 was collected, at a cost of $468,935.04; cost to collect $1, $0.060. At Manila, during the fiscal year 1903, the sum of $7,861,971.64 was collected, at a cost of $301,821.51; cost to collect $1, $0.0381. At Manila, during the fiscal year 1904, just ended, a year of great business depression, as hereinbefore shown, the sum of $7,131,379.86 was collected, at a cost of $304,476.32; cost to collect $1, $0.0426. These comparisons are made on the basis of the items which are included in determining the cost of collection in the United States, as will be seen by the following table, which shows both the total expenditures at the port of Manila on account of the Philippine customs service and the expenditures which, in accordance with the system employed in the United States, are chargeable to the cost of collecting customs duties at the port of Manila. As very pertinent to this comparison, attention is invited to the following statement, made in the first annual report of Hon. Henry C. Ide, secretary of finance and justice: In connection with this statement of comparative expenses it should be remarked that the customs duties in the Philippine Islands are practically one-half of what the average customs duties are at ports of the United States, so that double the amount of business has to be transacted here to collect the same amount of revenues, which makes the showing still more favorable in behalf of economy of the customs administration in the Philippine Islands. These results have been secured in face of the fact that it has been difficult to secure competent and experienced employees. As is shown by that statement, although the actual and necessary cost of assessing and handling the present volume of imports is unchanged, the cost of collecting $1 in the Philippine Islands is practically doubled as compared with the cost in the United States, owing to the fact that the return of the duties upon the inspection and appraisal of a given amount of merchandise is only one-half here of what it would be under the present United States tariff. Putting the rate of cost of collection at the port of Manila on the same basis as the port of San Francisco and the other ports in the United States, the comparison is as follows: The cost of collecting $1 at some of the other principal ports in the United States during the fiscal year 1903 is shown by the following comparative table: The following table shows the detailed expenditures made at the port of Manila during the fiscal years 1903-4 on account of the Philip pine customs service, including all other duties and branches under the charge of the insular collector of customs: Expenditures at the port of Manila for the fiscal year ended June 30, 1903. CUSTOMS EXPENSES PROPER. 1. Salaries of officials and employees, except janitors and night watchmen.. $274, 187.28 2. Incidentals, such as repairs to typewriters, desks, scales, purchase of stamps, etc.. 3. Transportation for customs officials traveling under orders. 4. Cablegrams.... 5. Repairs, alterations, supplies, salaries, etc., Manila Harbor launches. Total 4,375.33 2, 893.55 333.63 20, 031.72 301.821.41 OTHER EXPENSES OF BUREAU. 6. Salaries of special agents... 7. Fuel, lights, electric power, etc... 8. Salaries of janitors and night watchmen.. 9. Maintenance of immigration division.......... 10. Repairs, supplies, alterations, salaries, and ration allowances for customs cutters.... 6, 321. 43 1, 163. 28 3,950. 61 7,264.99 54, 212.95 971.36 2,276.00 1,638. 07 496. 67 @8,992.29 2,013. 42 16. Chinese registration.... 17. Consular, statistical, and license division.. Total.. Expenditures at the port of Manila for the fiscal year ended June 30, 1904. CUSTOMS EXPENSES PROPER. 17,410.00 106, 711.07 1. Salaries of officials and employees, except janitors and night watchmen.. $272, 028. 83 2. Incidentals, such as repairs to typewriters, desks, scales, purchase of stamps, etc. 3. Transportation for customs officials traveling under orders.. 4. Cablegrams.. 5. Repairs, alterations, supplies, salaries, etc., Manila Harbor launches.... Total.. 4, 408. 65 522.93 79.68 27, 436. 23 304, 476.32 8. Salaries of janitors and night watchmen.. 9. Maintenance of immigration division... 10. Repairs, alterations, supplies, salaries, and ration allowances for customs cutters... 11. Salaries of harbormaster's division.. 12. Salaries of admeasurer's division.. 13. Salaries of hull and boiler inspector's division. 14. Salaries of semaphore station.... 15. Special contingent fund (secret service). 14, 213. 86 968. 70 3,633.86 8, 688. 41 51,683.73 2,488.88 3, 431.67 5, 316. 63 1,453. 34 17, 519. 48 "Of this amount $4,113.99 was omitted from the report on Form No. 1 of the monthly expenditures for the port of Manila. This amount was omitted from the report on Form No. 1 of the monthly expenditures for the port of Manila. Of this amount $1,000 was omitted from the report on Form No. 1 of the monthly expenditures for the port of Manila. NOTE. The items under the head of "Customs expenses proper" are the ones employed in ascertaining the cost to collect $1 pursuant to the practice in the United States. STATISTICS. To the end that the statistical reports of these islands may be a complete and accurate record of all goods entering or leaving the same through any channel, it is earnestly recommended that a law be passed authorizing collectors of customs to demand and exact full data as to all Government supplies, for the army, navy, and other departments, brought into or exported from the islands, whether on regular commercial vessels or on Government vessels of any description. To be serviceable, this data must be detailed and complete, and be such as to enable classifications to be made under the prescribed statistical schedules. The law should also cover data as to all passengers arriving in and departing from the islands on Government vessels. The value of accurate statistics to the commerce of the world fully justifies the passage of such a law. This office transmits to the Secretary of War at Washington 768 regular statistical reports each year, not including special reports called for from time to time. Since July 1, 1903, the more important statistical reports for entry ports outside of Manila have been prepared from the original entries transmitted to this office. The results have been very satisfactory in the way of obtaining uniform classifications and fewer errors. Since January 1, 1904, statistics have been kept of all merchandise shipped from or received at all coastwise ports, showing the classes of articles shipped or received and their destinations or points of precedence. These reports are compiled from the inward and outward coastwise manifests. Statistics are kept also of the detailed receipts and disbursements at all coastwise ports and subports in the islands, and of all passengers leaving the islands. The following table shows the gross receipts and expenditures of this service during the past two fiscal years. Of this amount $1,283.73 was omitted from the report on Form No. 1 of the monthly expenditures for the port of Manila. |