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from the immediate charge of the Governor General to the Secretary of the Interior.

The most important change during the year 1916 in the organization of the department government and its political subdivisions was the reorganization of the municipal district of Malaybalay as a municipal corporation. This municipality is the capital of the Province of Bukidnon.

The organization of new municipal districts has been effected during the year in the territory to which government control has been extended. Municipal district officers have been appointed as necessary, and their immediate supervision by provincial governors and their deputies has been rendered more effective. Municipal district officers continue to be selected from local native residents, and are therefore almost exclusively Mohammedans and pagans. Periodical meetings of municipal district officers have been held frequently by provincial governors and their deputies, and not only beginnings but encouraging progress made in the efficiency of district officers and their training in municipal government, especially through welldirected discussion of local affairs, of the purposes of government, and the duties of municipal district officers.

The department organization comprises the following Provinces and their subordinate municipal corporations and municipal districts as set forth in the following table:

PROVINCE OF AGUSAN.

MUNICIPALITIES.

1. Butuan.

2. Cabadbaran.

1. Amparo.

2. Azpitia. 3. Bahbah.

4. Bakinking.

5. Balete.

6. Basa.

7. Baylo. 8. Borbon.

9. Bunaguit.

10. Bunawan.

11. Concordia.

12. Corinto. 13. Cuevas. 14. Ebro.

15. Esperanza.

16. Gracia.

17. Guadalupe.
18. Halapitan.
19. Langasian.
20. La Paz.
21. Las Nieves.

22. Libertad.
23. Loreto.

24. Los Arcos.

25. Los Martires.

26. Maasin.

27. Mambalili.

3. Talacogon.

MUNICIPAL DISTRICTS.

28. Manila.

29. Manpinsahan.
30. Maygatasan.
31. Milagros.
32. Novele.

33. Nuevo Sibagat.
34. Nuevo Trabajo.
35. Patrocinio.
36. Prosperidad.
37. Remedios.
38. Rosario.
39. Sagunto.
40. Salvacion.
41. San Ignacio.
42. San Isidro.
43. San Luis.
44. San Mateo.
45. San Vicente.
46. Santa Ines.
47. Santa Josefa.
48. Santo Tomas.

49. Trento.

50. Tudela.

51. Verdu.

52. Veruela.
53. Violanta.

| 54. Waloe.

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As stated in the annual report for 1915 the revenue adjustments between the insular, provincial, and municipal governments in Mindanao-Sulu have been concluded on a basis uniform with that

throughout the remainder of the archipelago, and accordingly the department government has no revenue from taxation. The department government thus became entirely dependent upon appropriations from the insular treasury, except the comparatively small amount of revenue it derives from the operation of the cutters Mindanao and Tablas which provide a periodical postal service and afford transportation facilities for minor coast points which have but infrequent or no service from commercial vessels; and the merely nominal profits from arrastre services at the ports of Jolo and Zamboanga and the coal supply service at Zamboanga.

The department government began the year 1916 with a balance of P127,051.06 of which 96,158.88 was available for appropriation, the balance pertaining to specific projects not completed at the close of the fiscal year 1915. The Philippine Commission, by Act No. 2543, made the following appropriations for the department government and its subordinate divisions for the fiscal year 1916:

For the expense of the department government, including the offices of the governor and members of the administrative council, and otherwise as the public service may require....

For aid in the current expenses of the provincial government of Agusan and the newly organized Provinces of Bukidnon, Cotabato, Davao, Lanao, Sulu, and Zamboanga .

For superintendence, maintenance, and other expense of dispensary stations, public hospitals and health service..

For the construction and improvement of trails, roads, and bridges; for the extension of telephone lines; for cleaning navigable rivers and channels in Agusan and Zamboanga Provinces; for public buildings and parks; for aid to cadastral surveys in Zamboanga Province; and for the purchase of a launch for official service on Lake Lanao..

Total.......

206, 480

385,000

174, 121

435,000

1, 200, 601

The department receipts for 1916 amounted to 150,553.74. These receipts were made up mostly of income from the operation of the Mindanao, Borneo, and Tablas which latter took the place of the Borneo during the month of November of said year.

The bases for the provincial and municipal budgets have been the revenues pertaining to these governments supplemented by such insular aid as could be made available by apportionment from insular appropriations and department funds above mentioned.

Due to the fact that approximately one month is required to secure complete data from provincial and municipal treasurers necessary to permit the closing of the accounts of the department treasury and ascertainment of definite totals, it is obviously impossible in this report now to include financial statement of revenues and expenditures for provincial and municipal governments for the fiscal year. Such data may be found in the report of the insular, auditor in whose office the final adjustments are made. The systems of taxation and accounts are practically in exact accord with the systems in force in regularly organized Provinces.

The work of assessment for the real estate tax and the extension of the enforcement of the cedula or capitation tax have made good progress generally throughout all the Provinces during the year. The work of real estate assessment in several of the Provinces will be concluded during the first half of 1917 and every effort is being made to have it concluded in all the Provinces by the close of said year.

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 herein before 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

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