Second Philippine Legislature.

Second Session.

Begun and held at the city of Manila on Monday, the sixteenth day of October, nineteen hundred and eleven, being the second regular session of the Second Philippine Legislature held under the Act of Congress of the United States approved July first, nineteen hundred and two.

JOURNAL OF THE COMMISSION.

MONDAY, OCTOBER 16, 1911.

The Commission met at the call of the Chair at 4 o'clock postmeridian.

Present: Commissioners Gilbert, Worcester, Luzuriaga, Araneta, Palma, Sumulong, Branagan, and Elliott. Absent: The President.

Commissioner Gilbert in the chair.

MESSAGE FROM THE ASSEMBLY.

The Secretary of the Assembly appeared and delivered the following resolutions of the Assembly:

Assembly Resolution No. 97. Resolved, That a committee of three be appointed on the part of the House to join with a similar committee appointed by the Commission to wait upon the GovernorGeneral and inform him that a quorum of both Houses is assembled and that the Legislature is ready to receive any communication that he may desire to make.

Assembly Resolution No. 98. Resolved, That the Secretary of the Assembly inform the Philippine Commission that a quorum of the Philippine Assembly is assembled and that the House is ready to proceed to business.

RESOLUTION.

Commissioner Elliott introduced the following resolution:

Commission Resolution No. 73. Resolved, That the Secretary inform the Philippine Assembly that a quorum of the Commission is assembled and that the Commission is ready to proceed to business.

Resolved further, That in conformity with the request of the Assembly the Chair be and hereby is requested to appoint a committee of three to meet the committee appointed by the Assembly for the purpose of waiting upon the Governor-General and notifying him that a quorum of both Houses of the Legislature is assembled and ready to receive any communication which he might desire to make to it.

The resolution was unanimously adopted.

The Chair thereupon appointed Commissioners Luzuriaga, Palma, and Branagan as such committee, and the proceedings of the Commission were suspended while the ViceGovernor, on behalf of the Governor-General, received the committees of the Legislature and delivered to them the Governor-General's message.

MESSAGE FROM THE GOVERNOR-GENERAL.

The Commission reconvened and at the direction of the Chair the Secretary read the message of the GovernorGeneral as follows:

MANILA, October 16, 1911.

GENTLEMEN: Upon the occasion of the opening of the second regular session of the Second Philippine Legislature, I have the honor to submit the customary message of the Chief Executive, containing a brief statement of existing conditions and my recommendations as to future legislation.

I am glad to be able to inform the Legislature that the tranquility throughout the Philippine Islands noted in my last message remains undisturbed. The recent death of the outlaw Otoy, the last pulajan chief in Samar, has brought it about that Scouts which have been constantly maintained in that island may now be withdrawn and the central district of the island, the progress of which has been somewhat retarded by the presence of this small band of outlaws, is now as free from disturbing influence as is any other portion of the Islands. A recent shortage in the rice supply of the Orient and an unexpected and very sharp rise in the price of rice at the time threatened

to menace the tranquillity and good order of the Islands. Acting under the advice of a committee, of which the Secretary of Finance and Justice was chairman and having representatives of the Government and business community, both Filipino and American, the Bureau of Supply has purchased a large number of tons of rice much of which otherwise would have gone to China. The announcement of this action on the part of the Government resulted in an immediate reduction of the price of rice to within reasonable limits throughout the Islands and has put the main staple food of the Islands within reach of everybody, as the price now is not so high but that the people generally can afford to take it. It is possible that this purchase will cause the Government some loss but the end sought was so desirable that the undersigned feels confident that the action taken was in the best interests of the people.

A second year's 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 Filipino. The increase in the price of sugar and tobacco, the constant improvement in the market for copra has brought it about that at the time of writing many provinces are really prosperous and have put behind them the cry of hard times so prevalent a few years ago. This is especially so in Occidental Negros, Iloilo and Tayabas. The condition of the hemp industry is not so satisfactory and the undersigned is of the opinion that the Government should make a very careful study of the hemp situation with a view to determining the cause of the stagnation of that business and apply such remedy, legislative or administrative, as may seem necessary in the best interests of the people.

I am glad to be able to inform the Legislature that the effect of the construction of railroads has been more beneficial even than had been hoped. The Manila Railroad Company during the year has opened up its lines to the following points: Batangas, on the ManilaBatangas Line; San Pablo, on the Luta-Lucena Line; Mojon, on the Calamba-Santa Cruz Line; Santa Cruz, on the Noveleta-Naic Line; and Rosales, on the Paniqui-Tayug Line. The opening up of these lines has had an almost magical effect in stimulating industry and fostering production; territory in which crops had not been harvested for years is now being cared for, and particularly in the provinces of Batangas, La Laguna and Tayabas the advent of the railroad seems to have made the difference between a backward and a progressive situation.

There has been a determined and systematic effort to injure the tobacco industry of the Philippine Islands in the United States and this effort has met with a partial success inasmuch as the exports to

the United States have fallen from 9,274,990 in last year, to 7,211,134 in this year. It is believed that the inherent merit of Philippine tobacco and the quality of its cigars and cigarettes thus sought to be injured artificially will win back whatever has been lost and that the tobacco industry will grow until it presently reaches the limits set by law for importations from these Islands into the United States. To accomplish this result it would be extremely advantageous if the tobacco growers and manufacturers in the Philippine Islands would organize and avail themselves of the money appropriated by the last Legislature to advertise Philippine products in the United States. As yet the Government and the merchants have not succeeded in creating an organization properly to care for the expenditure of the money appropriated at the last session of the Legislature. The Merchants' Association however is actively coöperating in this matter. There has arisen no difficulty or difference of opinion and it is probable that before long the organization will be complete and the new publicity business will be under way.

I beg to recommend that legislation be enacted which will provide a constant fund from government sources to be added to the fund voluntarily contributed by the merchants in order that this most vital work may be carried on and the Islands reap the benefits which will unquestionably accrue.

In the matter of revenues, the customs receipts noted in my last message to have fallen off 1,429,000 have this year increased by #835,000 over the previous year-a very healthy sign. Up to date in the present fiscal year the falling off in the customs collections has been immaterial and at the present time they are holding their own with the same period for last year. On the other hand the internal revenue has increased 1,192,946 during the year, and for the first quarter of the present fiscal year the Insular Government's share of internal-revenue collections exceeds those for the same period of last year by 86,000. It is by no means certain that the customs receipts will continue as high as they have in the past two or three years. The merchants are importing more and more from the free markets of the United States, and it is only the fact that increased prices have increased the purchasing power of the people which has held the customs up as high as they now are.

The facts regarding the economic situation generally as revealed both by a careful study of our statistics and the inspection of every province in the Archipelago do not justify the expressions still too frequently heard that the country is in a precarious and critical economic condition. Such expressions are without good basis of fact and it is to be hoped that all will recognize at least the expediency of looking on the brighter side and of claiming their finances are strong when they are. It is hoped that the Islands will be