storage and ice plant, a bureau of banks, banking, coinage, and currency, and the bureau of justice.

The department of public instruction embraces a bureau of public instruction, a bureau of public charities, public libraries, and museums, a bureau of statistics, a bureau of public records, a bureau of public printing, and a bureau of architecture and construction of public buildings.

At the same time, by appointment of the President, three distinguished Filipinos, Señor Trinidad H. Pardo de Tavera, of Manila, Señor Benito Legarda, of Manila, and Señor José Luzuriaga, of Negros, were added to the commission.

On the 29th of October, in order to relieve somewhat the very great pressure under which Governor Taft was laboring, the following order was made, creating the office of vice-governor and appointing Commissioner Wright to that position:

WHITE HOUSE, Washington, October 29, 1901. By virtue of the authority vested in me as President of the United States, the honorable Luke E. Wright is appointed vice-governor, with authority to act as civil governor of the Philippine Islands whenever the civil governor is incapacitated by illness, or certifies that his temporary absence from the seat of government will make it necessary for the vice-governor to exercise such powers and duties.

THEODORE ROOSEVELT.

Division of jurisdiction.—Since the 4th of July the civil and military agents of the government of the islands have been conducting administration within their respective jurisdictions in substantial harmony. By mutual consent the seven provinces of La Union, Ilocos Sur, Abra, Ilocos Norte, Cagayan, Isabela, and Zambales have been found to be sufficiently advanced in pacification for the organization of provincial governments, and the provisions of the provincial government act and the authority of the civil governor have been extended over them. At the same time, the three provinces already mentioned have been by like consent restored to the executive control of the military governor.

A schedule is annexed hereto, marked "Appendix D," showing in detail the territorial subdivisions of the Philippines, with their areas and population, in which the affairs of civil government are now administered by civilians and those in which the affairs of civil government are administered by the military authorities, by which it appears that approximately 74,152 square miles, or 58 per cent of the

estimated area of the islands, and 4,902,837 people, or 70 per cent of the estimated population of the islands, are under the civil administration; and approximately 53,701 square miles, or 42 per cent of the total area, and 2,072,236 people, or 30 per cent of the total estimated population, are under military administration.

Insular constabulary and municipal police.-The initial step in the organization of a native police force was taken on the 18th of June, 1900, by General Order No. 87, of the military governor. This was followed by act No. 58 of the commission, December 12, 1900, appropriating $150,000 for expenses of organization and maintenance of a police force. The municipal code of January 31, 1901, required every municipality to establish and regularly maintain a police department. The Manila charter of July 31, 1901, required the establishment and maintenance of a regular police force. On the 18th of July, 1901, act No. 175 of the commission provided for the establishment, under the general supervision of the civil governor, of an insular constabulary, for the purpose of better maintaining peace, law, and order in the various provinces. This organization is under the general charge of a chief of the insular constabulary, and is to consist of not less than 15 nor more than 150 privates, properly officered, for each province. The archipelago is divided into four divisions, for each of which there is an assistant chief.

There is also a corps of inspectors consisting of not less than one nor more than four for each province, who are charged with the command of the insular constabulary, and the duty of inspecting the municipal police of the various municipalities. The sergeants, corporals, and privates in each province are selected from the residents of the province. They are enlisted for two years unless sooner discharged. The chief and the force generally are declared to be peace officers, and are authorized and empowered to prevent and suppress brigandage, unlawful assemblages, riots, insurrections, and other breaches of the peace and violations of the law. Capt. Henry T. Allen, Sixth United States Cavalry, late major of the Forty-third Volunteer Infantry, and Capt. David J. Baker, of the Twelfth United States Infantry, have been detailed to serve, respectively as chief and first assistant chief of the insular constabulary upon the appointment of the civil governor. The force thus constituted is the result of a progressive development covering a year and a half of experiment. These experiments appear to justify the concluWAR 1901-VOL 1, PT I- -5

sion that a native police force, well officered, can be made faithful and effective, can be trusted with arms, and will be an element of constantly increasing value in the maintenance of order. The latest reports show a little over 6,000 natives employed in the various nunicipal police forces and between 900 and 1,000 already enlisted in the insular constabulary.

Civil service. In providing the personnel of the government which is thus gradually superseding military administration, the Department has proceeded upon the assumption that the honor and credit of the United States is so critically involved in creating a good government that the importance of securing the best men available should outweigh and practically exclude all other considerations. This principle of selection has been followed without deviation. No officer, high or low, has been appointed upon any one's request, or upon any personal, social, or political consideration. The general power of appointment was vested by the instructions of April 7 in the commission, which is 8,000 miles removed from all American pressure for office, and which will stand or fall upon its success or failure in getting competent men. The order of June 21 appointing the civil governor transferred the power to the civil governor with the consent of the commission. The exercise of this power by the commission and by the civil governor has not been interfered with or overruled in any case. The only appointments of a civil character made by the Administration in the United States since the commission entered upon its duties have been the governer, vice-governor, and members of the commission, appointed by the President on the recommendation of the Secretary of War; the auditor, deputy auditor, and treasurer, who are officers of an independent accounting system, appointed by the Secretary of War; the director-general of posts, appointed by the PostmasterGeneral.

The practice regarding all appointments to offices not covered by the very comprehensive civil service law has been to refer all applications for appointment received at the White House or the War Department, with the accompanying testimonials, immediately to the commission or the civil governor, with instructions to report when the service of the applicant was desired. In numerous cases the commission has cabled for further information, which has been sought and furnished as promptly as possible. as possible. Such inquiries regarding candidates for judicial appointments have been made by the Department of

Justice through the judges and district attorneys in the judicial districts in which the candidates formerly resided. Special acknowledgment is due to the officers of that Department for their active and zealous cooperation in this respect. In like manner information as to the most competent persons to fill places which in this country come under the jurisdiction of the Treasury Department, the Department of the Interior, and the Department of Agriculture has been sought through those Departments, respectively, and they have always rendered prompt and effective assistance.

The civil service law enacted by the Philippine Commission September 19, 1900 (act No. 5), has been put into successful and satisfactory operation. The civil service rules required by the act were adopted by the board and submitted to the military governor on the 28th of December last, and were promulgated on the 2d of January. The rules provide that examinations of a suitable and practical character, and absolutely impartial, shall be held to test the relative capacity and fitness of applicants for the positions to which they seek to be appointed, and that in making certifications to fill all vacancies the names of the highest eligibles shall be certified from which selection shall be made by the appointing officer. The board has been diligent in adapting the principles of the act to the many varying conditions; and regular examinations have been commenced. A manual of information has been printed and can be obtained upon application to the civil service board at Manila or to the War Department at Washington. At the time of my last report the following Executive order had just been made by the President:

The United States Civil Service Commission is directed to render such assistance as may be practicable to the civil-service board created under the act of the United States Philippine Commission for the establishment and maintenance of an honest and efficient civil service in the Philippine Islands, and for that purpose to conduct examinations for the civil service of the Philippine Islands upon the request of the civil-service board of said islands, under such regulations as may be agreed upon by the said board and the said United States Civil Service Commission.

The regulations provided for in this order have been agreed upon by the two civil-service boards, and regular examinations are now held under the direction of the United States Civil Service Commission for appointment to civil-service positions in the Philippines. Opportunities for such examinations are afforded at all points in the United States where the Civil Service Commission has a board of examiners.

Such examinations were held in June at 140 different places. Over 300 competitors were examined, and a register of 128 eligibles was established for appointment as department assistants.

I annex a memorandum, marked Appendix E, prepared by Mr. Procter, president of the United States Civil Service Commission, showing the relations of that commission to the Philippine civil. service.

It is gratifying to be able to report that the members of both Houses of Congress and other gentlemen accustomed and entitled to be heard regarding appointments to office, without exception, upon becoming satisfied that the principles and methods of selection above stated were being applied in all cases without discrimination, have cheerfully acquiesced in and approved the course followed.

System of account and audit.-At the time of my last report the accounting system of the islands was still conducted under the provisions of an Executive order promulgated on the 8th of May, 1899. At that time the conditions of very active warfare, the confusion incident to the constant movements and changes of the military officers charged with civil disbursements, the necessity for the exercise of independent discretion in expenditures, and our slender knowledge of conditions, made it impossible to apply any such complete and detailed methods for securing official accountability as have been found useful in the United States.

At the beginning of the present year, however, a point had been reached in the development of government which made an important advance in the accounting system possible, and a complete revision of that system was undertaken. For this purpose the experience acquired in dealing with the accounts of Porto Rico, Cuba, and the Philippines was utilized, and the accounting officers of the United States Treasury, Post-Office, and War Department were brought into conference. Upon their joint recommendations a new system of accounting and audit was embodied in an Executive order signed by the President on February 23, 1901, and in a series of rules and regulations, approved by the Secretary of War at the same time, and promulgated by an act of the commission (No. 90) of February 28, 1901. The new regulations went into effect on the 1st of April, 1901. They practically put into force in the Philippine Islands the accounting and auditing system of the United States, and furnish all the checks and safeguards which Congress has thrown about the moneys of the United