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The registration of cattle and horses has been pursued actively during the year, and it is expected that final figures on the closing of accounts, December 31, 1916, will show material gains under this head as well as market revenues and other municipal collections.

The enforcement of the internal-revenue law has been carried on energetically with such patience and tact as to merit not only the enthusiastic cooperation of the personnel of other branches of government, but to an extraordinary degree popular approval. Exact data as to collections under this head will be found in the reports of the collector of internal revenue and the insular auditor which are the statistical centers for this branch of public revenue. Important public service has been rendered by the internal-revenue agent in this department, especially in the instruction of the people as to correct weights and measures and the apprehension and punishment of violators of law.

While exact figures are not available for reasons already stated, it is possible to assert with certainty that neither the department government nor any of the provincial governments have closed the year 1916 with a deficit. At the same time in no instance does it appear that there is more than a merely nominal unappropriated balance, the demands of public service throughout this vast region being so immeasurably greater than the financial means of government, responsible administrative officers have kept themselves constantly informed as to the financial situation of their respective branches of government and have taken steps necessary to have funds appropriated promptly as rapidly as they become available. The same satisfactory situation exists generally throughout the municipal governments.

In addition to the appropriation from the insular treasury for the department government, as hereinbefore stated, there was also appropriated by the Philippine Commission by Act No. 2543 the sum of P225,000 for superintendence, maintenance, and other expenses of primary schools, including educational work among the adults in elementary civics, agriculture, and household industries, although the jurisdiction of the insular bureau of education had been extended to include all the territory within the Department of Mindanao and Sulu, and the jurisdiction of the department government accordingly ceased in so far as public schools are concerned. This appropriation of insular aid to schools (Mohammedans and pagans) in the five Provinces of Cotabato, Davao, Lanao, Sulu, and Zamboanga was embodied in the department budget, this procedure being followed at the request of the director of education. In the general appropriation for the bureau of education provision was made for insular aid to schools in the Provinces of Agusan and Bukidnon as in previous years, but the director preferred to postpone to a subsequent year the taking over in his estimates of the five Provinces comprised within the territory of the former Moro Province because of lack of familiarity by the central office with conditions peculiar to this distinctive region. This appropriation was allotted in detail by resolution of the administrative council in accordance with the request of the department superintendent of schools, the local representative of the director of education, and approved by the Philippine Commission. It is to be noted in this connection that with the exception of Min

danao-Sulu appropriations from the insular treasury in aid of public schools, both in the regularly organized Provinces and in those organized under special provincial government act, like the Mountain Province, Palawan, etc., are embodied in the general insular appropriation for the bureau of education, and therefore do not appear in insular appropriation bills as insular aid for schools in any distinctive region, although an aggregate of more than P2,426,620 was appropriated for aid to public schools elsewhere than in the five Provinces mentioned above during 1916.

There was also included as an appropriation for the department in Act No. 2543 the following item for the bureau of posts:

For the installation and operation of small radio stations, telegraph lines, marine cables, and other extensions of the insular telegraph service, to be expended by the director of posts under the supervision of the secretary of commerce and police, P32.890.

Upon the extension of the jurisdiction of the insular director of health to Mindanao-Sulu on October 14, 1916, there was continued available for expenditure in accordance with the terms of appropriations and under the administrative control of the director of health the unexpended portion of the appropriation for public health service in Mindanao-Sulu during the year 1916. This unexpended balance was ample in proportion to the expenditures already made and obligations incurred to continue the activities of the health service to the close of the fiscal year.

In view of the fact that the reorganization of the insular government under the organic law could not be concluded as to the executive branch of government until after January 1, 1917, it was deemed wise by the Philippine Legislature to continue in the department budget for 1917 as in previous years the appropriations of insular aid for public health and for public schools, although, as has already been stated, both these branches of public service had already passed under the control of the corresponding insular bureaus and no longer remain a part of the department government.

However, that part of the department budget for 1917 which provides insular aid for public works was transferred by the legislature from the department budget to the general insular appropriation bill for public works. It is assumed that the budget for 1917 is the last in which there will be embodied with the appropriations for the department government those for public health, schools, and other public services which no longer remain a part of the department government by reason of the extension of insular bureaus' control.

Copy of the appropriation act providing insular aid for current expenses of the department government has not yet been received, but the amounts provided therein have been notified this office by telegraph. While there has been some reduction in the appropriation for current expenses of the department government, corresponding reduction will be made in expenditures, it is hoped, without seriously impairing the efficiency of government, if it be possible, to continue in service all the members of the present very small personnel. All of the latter are now experienced and well trained in their respective duties and could not be substituted by new men without serious loss in efficiency or increasing the number of employees on salary pay roll to not less than the authorization for last

year.

24426-WAR 1917--VOL 3- 45

The progress being made in the development of provincial and municipal revenues by the provincial government of Zamboanga appears to warrant the expectation that it may not be necessary hereafter to request aid from the insular treasury for the current administrative expense of this provincial government. Creditable progress in this regard has been made by the other provincial governments, but all are handicapped by the existence within their borders of much territory but recently brought under government control, hitherto undefined private ownership of land, and a generally more backward state of economic development. However, if the progress made during the past two years be continued as may be done by efficient administration-the six remaining Provinces may be brought, within a very few years, to a state of financial independence as to current administrative expense of provincial and municipal governments comparable with the regularly organized Provinces of Luzon and Visayas. To accomplish this it is essential that there be had the services of carefully selected, active, and well-trained provincial governors and treasurers. Both governors and treasurers must be men of mature experience and constructive vision. The treasurers should be men of sufficient experience and demonstrated success as provincial treasurers in the regularly organized Provinces. An inexperienced or otherwise incompetent provincial treasurer through failure to discover and collect provincial and municipal revenues in the newly organized Provinces of this department, must obviously occasion the government heavy financial loss. As has been demonstrated in the case of Zamboanga Province, the continuation of liberal appropriations of insular aid, especially for the construction of trails, bridges, and roads, will hasten materially the development of provincial and municipal revenues from the land and cedula taxes, thereby at the same time hastening the relief of the insular treasury from the burden of aid to provincial governments for current administrative expense.

7. PUBLIC ORDER.

During the year 1916 there were accomplished the noteworthy results of the termination of outlawry and the extension of governmental control to all Mohammedan territory of the Philippine Islands.

My 1915 report contains a statement regarding six Scouts soldiers (Mohammedans) who deserted with their rifles and ammunition from the Army garrison at Camp Keithley, Lanao Province. These deserters were able to escape to the eastward into the then practically unexplored interior district where Bukidnon, Cotabato, and Lanao Provinces join. The government had not, prior to this year, engaged in systematic exploration and investigation of this territory, which from time immemorial had been the refuge of lawless elements from central Mindanao. However, in April, 1916, there was decided upon and inaugurated a systematic campaign for the definite extension of governmental control over this vast region, including much mountainous territory. The confidence and coopera tion of all peacefully inclined elements among the leaders and masses of the people were obtained, after a careful presentation to them by

government agents of the objective of the Constabulary operations. Those who had identified themselves with outlaws through fear or intimidation and others through love of adventure, but without vicious purpose, came gradually over in increasing numbers to a definite stand in favor of public order and cooperation with the government, thus leaving the real outlaws isolated in the more inaccessible mountain fastnesses and swamps. These bands of recalcitrants and criminals were then vigorously pursued by the Constabulary and the people, including the most important datos of the Maranao region, aligned with the government. In the short space of three months subsequent to the commencement of the campaign, the Constabulary had secured the presentation, capture, or surrender of over 500 lawless people, including the Scouts deserters. In addition thereto 130 firearms, many of them high-power rifles, were captured or surrendered, and over 3,000 square miles of territory rich in forest and agricultural land brought, for the first time, under definite government control.

The year 1916, therefore, closes without any active outlaw at large, with the possible exception of Ampuan, who remains unaccounted for, and the district chief of Constabulary states in his report that he is either dead or in hiding, shorn of his people, his power, and his evil influence." His family and followers have all surrendered or been captured with their firearms.

Important in the history of public order in Mindanao and Sulu is the complete elimination of all known outlaws in Sulu Archipelago. One hundred and ninety-seven firearms and. 500 blade weapons were surrendered or captured in Sulu with the result that in July, 1916, there was not at large in that Province any known outlaw. For the first time in history the Sulu Archipelago was brought to a state of law, order, and peaceful control.

The first and great problem of the department government upon its organization was that of permanent establishment of public order and extension of governmental control to permit the organization of all the territory under appropriate forms of local government, primary schools, the collection of taxes, and other fundamental activities of civil administration. This problem has been successfully met, and credit should here be given to the magnificent work performed by the Constabulary.

Trails, schools, telephones, and dispensaries must follow the establishment of law and order to. make government control definite and permanent. The 100-mile horseback trail and telephone line from Tamparan, Lanao, to Port Pikit, Cotabato, is now nearing completion. Dispensaries, hospitals, and agricultural schools are being provided throughout central Mindanao. Medical relief and protection by the government are now sought by formerly lawless people, and thousands of the younger generation are attending schools to become. future useful citizens:

In reviewing the work leading up to this successful accomplishment, one is impressed by the fact that it has been done with so very little bloodshed and largely through gaining the confidence of the people and the creation of popular opinion in favor of peace and good order. This result is indeed remarkable to have been attained

among people who from time immemorial have been accustomed to and seemed to prefer a state of petty warfare among themselves when not engaged in raiding outside settlements. It is noteworthy that prior to active operations, outlaw leaders sent their women and children to the Constabulary camps for protection.

The department government has been very fortunate in having during this entire period Col. Peter E. Traub, United States Army, as district chief of Constabulary, whose ability for constructive work has been fully demonstrated and whose unlimited energy permitted him to make the continuous and exhausting expeditions made necessary by the Constabulary active field work during the last three years. He has been able to infuse his subordinate officers with enthusiasm and the proper spirit to accomplish successfully the final elimination of outlawry in Mindanao-Sulu.

There were surrendered to or captured by the government during the year 1916, 366 firearms, making a total of 1,024 firearms taken up by the government during the period January 1, 1914, to December 31, 1916. There is no high-power rifle nor serviceable modern firearm known to be now in the hands of any person of criminal antecedents nor otherwise unlawfully held within the department. There are known to be a considerable number of more or less serviceable Tower muskets and other old-style firearms in the possession of pagans in the mountainous regions of east-central Mindanao, especially the cordillera between Bukidnon and Cotabato on the west and Agusan and Davao on the east. The extension of definite government control and the disarmament of the people in this pagan territory is definitely a part of the program of administrative work which will be inaugurated by the Constabulary early in 1917 and should be concluded before the close of the year.

This chapter of the report should not be closed without just recognition for the unswerving loyalty and unremitting efforts of Maguindanao and Maranao chiefs in cooperating with the government to establish law and order in central Mindanao without bloodshed. Datu Ampatuan, of Maganuy, secured the firearms from the Constabulary deserters Lumantug and Kayub, and delivered both the arms and the deserters themselves to the senior inspector of Constabulary at Cotabato. Datu Ampatuan is one of the most influential men in Cotabato Province, who had hitherto held himself aloof, and serious doubts were entertained as to his loyalty to the government. On another occasion Datu Sinsuat, of Dinaig, delivered to the senior inspector of Cotabato his own father-in-law, Bapani Umbay, charged with the crime of murder. The Constabulary deserters and Bapani Umbay had been fugitives from justice for some time past and all efforts to capture them had been without avail.

In the Lanao-Cotabato operations the predominant Maranao chiefs absented themselves from their homes for long periods of time, working day and night under the personal supervision of the provincial governor of Lanao, who in his report gives unstinted praise to the labors of such men as Amay Manabilang, now third member of the provincial board of Lanao, and Datu Benito, member of the House of Representatives of the Philippine Legislature, in

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