These purchases were made through the Bureau of Insular Affairs at Washington. For this reason it will be necessary to have a purchasing agent for several years to come in the United States, and through him and other sources the insular purchasing agent will be enabled to keep posted as to prices and always in a position, if goods can not be obtained as cheaply here as in the United States, to buy his goods in that market.

OFFICE MANAGEMENT.

Maj. E. G. Shields, who has filled the position of insular purchasing agent since the time of creation of the office, left the islands in the month of March, 1903, by direction of the civil governor, to visit the United States for the purpose of purchasing much-needed supplies and also in order to perfect a harmonious system between his office and the Bureau of Insular Affairs of the War Department in regard to future purchases. Shortly after he left, Capt. A. L. B. Davies, the local purchasing agent, was detailed by the civil governor to make an extended tour of investigation for the purpose of ascertaining the sources from which carabao could be drawn to supply the needs of the planters and farmers in the islands, who had lost a large proportion of their carabao by rinderpest. As a result he was away from his post of duty for about six months. This threw the entire work of the office upon the assistant insular purchasing agent, and as a consequence there was much of confusion and delay in meeting the requisitions made upon the office, which caused much complaint. Since the return of the insular purchasing agent and of the local purchasing agent the affairs of the office have been thoroughly overhauled and systematized and are now being carried on efficiently and satisfactorily.

For a detailed history of the operations of the various divisions of the office of the insular purchasing agent, reference is made to the report of Maj. E. G. Shields, insular purchasing agent, which is attached hereto as Exhibit D.

EXECUTIVE BUREAU.

The volume of work of this bureau shows no signs of diminution, but, on the contrary, rather tends toward an increase. During five months of the past year the efficient executive secretary, Mr. A. W. Fergusson, was absent in the United States with the honorary board of commissioners sent by the insular government to the Louisiana Purchase Exposition. During his absence the assistant executive secretary, Mr. Frank W. Carpenter, took his place and performed the duties of the office with an energy and ability which entitles him to the highest commendation. I shall not attempt to analyze the report

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of the executive secretary, which will be found well worthy of sal, as it is full of matter both interesting and instructive, but which does not call for any special remark by me at this time. The suggestions he makes as to reforms in government offices for the purpose of reducing expenditures, but maintaining at the same time the present standard of efficiency, are especially worth considering. The report is attached hereto, marked "Exhibit E."

Exhibits F, G, H, and I are also attached hereto; F, giving the executive orders and proclamations issued by me; G, the expenditures made from the Congressional relief fund from December 1, 1903, to October 1, 1904; H, the result of the survey of the friar lands made by the consulting engineer to the Commission, and I, the report of Messrs. Del Pan, Ortigas, and Fisher of their examination of the titles to the friar lands, made by my direction, pursuant to the provisions of Act No. 1120.

Respectfully submitted.

To the PHILIPPINE COMMISSION, Manila.

WAR 1904-VOL 11- 4

LUKE E. WRIGHT,

Civil Governor.

EXHIBIT A.

REPORT OF THE MUNICIPAL BOARD OF THE CITY OF MANILA FOR THE FISCAL YEAR ENDING JUNE 30, 1904.

MUNICIPAL BOARD OF MANILA,

Manila, P. I., October 1, 1904.

SIR: In compliance with the provisions of the charter of the city of Manila the municipal board hereby submits the third annual report of the operations of the government of the city for the fiscal year ending June 30, 1904.

In submitting this report general remarks regarding the work of the various departments are presented by the board, which are followed by the detailed reports from the department chiefs.

The personnel of the board was increased under the provisions of act 936 of October 9, 1903, amending the charter of Manila and providing that the city engineer and the president of the advisory board shall be ex officio members of the municipal board. Under the provisions of this law the Hon. Miguel Velasco, as president of the advisory board, became a member of the municipal board October 15, 1903, and Maj. J. F. Case, city engineer, on October 17, 1903. This increase to the number of the members of the municipal board has been very satisfactory, bringing the board in closer touch with the views of the advisory board and providing an engineer as a member of the board. This act also makes it almost always possible to obtain a quorum at any time without the necessity of the appointment of temporary members of the municipal board, as provided for by law.

Mr. P. C. McDonnell has been absent on leave since February 23, 1904, and Maj. J. F. Case since June 16, 1904, and no temporary appointment has been made necessary by their absence, a quorum always having been available by the recognizing of the acting city engineer, Mr. S. B. Patterson, as an ex officio member of the board in the absence of the city engineer.

ADVISORY BOARD.

The personnel of the advisory board has remained unchanged since the last report. In all 70 items of municipal business were referred to the advisory board for consideration, and 101 items, relating mainly to complaints from the Filipino population and recommendations for the betterment of the service, were brought to the attention of the municipal board through the advisory board.

Member Infante, representing the district of Ermita, cooperated with the municipal board as a member of the committee appointed by the board for the purpose of initiating the work of widening Calle Nueva, Ermita.

Meetings have been held once a week, according to the practice which was established in January, 1903, and business has been handled with much less delay than previously occurred.

The board is pleased to acknowledge the usual cooperation and to note the continuation of the zeal manifested in behalf of the welfare of the various districts represented. As a rule, the action of the advisory board or its individual members has led to a clearer conception of the work of the various departments and a broader knowledge among the Filipino people of the progress of city government, and the result has been beneficial to all those concerned.

The members of the advisory board are: Señor Miguel Velasco, president, San Miguel; Señor Basilio Reglado Mapa, Intramuros; Señor Juan Tuason, Quiapo; Señor José Paterno, Santa Cruz; Señor Tomas Arguelles, Sampaloc; Señor Teodoro R. Yangco, Binondo; Señor Rogaciano Rodriguez, San Nicolas; Señor Crispulo Feliciano, Tondo; Señor Antonio Ma. Pabalan, Paco; Señor Vicente N. Somoza, Malate; Señor José R. Infante, Ermita; Señor Segundo Rodil, Santa Ana; Señor Francisco Rosario, Pandacan; Señor Vicente Rodriguez, secretary.

SECRETARY OF THE MUNICIPAL BOARD.

In addition to the routine work of this office the secretary has been given additional responsibility in providing for the entrance of the indigent sick to the San Juan de Dios Hospital for treatment. A contract was entered into with this institution on the 15th day of August, 1903, providing for a regular schedule of reimbursement by the city for each patient treated belonging to the above-mentioned class. The total number of patients admitted is 978, at a cost to the city of 39,961. Seven hundred and thirty-three were cured and discharged; 143 died, and 102 are carried as under treatment on June 30, 1904.

The records of the city have been carefully and satisfactorily kept, and the work of the board and, indirectly, of all city departments has been expedited and improved. At the same time, as will be seen by reference to the detailed report of the secretary, while the amount and importance of the work handled by the office has been increased, the expenses have been reduced.

DISBURSING OFFICER.

The work of the disbursing officer of the municipal board, Mr. R. C. Baldwin, has been greatly increased during the year, owing to the large amount of work that has been undertaken and the larger number of employees made necessary thereby, and he has paid on an average 4,850 employees each month during the year, having disbursed during the year 5,292,772.42, and in virtue of the increased work and responsibilities placed upon this officer it has been deemed advisable by the board to recommend an increase in salary from P5,000 per year to 6,000 per year. Attention is invited to detailed report of the disbursing officer.

REPORT ON FINANCE.

The financial condition of the city of Manila at the close of the fiscal year shows a material change in that during the year past the maximum revenues were collected, which were followed by the maximum expenditures, that may be expected for some years unless the city secures a loan for public improvements, which will be absolutely necessary in the near future if public improvements are to be made to any extent. The statement at the close of the fiscal year 1904 shows a credit balance of P610,497.45, with practically no liabilities.

The following statement shows the receipts for the fiscal year, the expenditures by departments, and the financial condition on June 30, 1904. However, there may be some slight modifications in the figures presented, inasmuch as the accounts have not yet been audited, and these figures were taken from the reports of the collecting and disbursing officers.