at first were extremely limited, as people were without money or other means of barter. Hospitals were horribly overcrowded and practically without supplies of either food, medicine, or clothing. The same was true of the charitable institutions for children and old people. In the country towns a condition existed bordering closely on starvation. There was no work and no one with money sufficient to start in on works of any consequence, except a few large planters already referred to. Spanish money was universally in circulation, silver being worth about 50 cents on the dollar, and the centen $5. The amount of money in circulation was extremely limited. Wages were at that time from 60 to 80 cents a day, Spanish money, for ordinary laborers, and from $1 up to $24, Spanish, for skilled mechanics. Such railroads as existed in the province were largely crippled by the destruction of bridges and rolling stock, and greatly in need of repairs, which had not been attended to during the war. On the different country roads and highways the bridges had been entirely destroyed, either by blowing them up or by burning them. A feeling of bitter hostility existed between the Cubans and Spaniards, and also a very ugly feeling between the Cubans who had acted in harmony with the autonomists in the latter days of the Spanish occupation and those who had been in the Cuban army. At first there was a good deal of talk of a threatening character in regard to what the Cubans would do to the Spaniards now that they were in a position to avenge themselves for some of the many injuries received in the past. This, however, soon passed over and much more friendly and sensible ideas prevailed. There were no schools and no material for establishing them. All officers of the civil government had resigned and left their posts with the exception of one judge of the first instance and several municipal judges and certain police officers. The prisons were full of prisoners, both Spanish and Cuban, many of them being Spanish military and political prisoners. The administration of justice was at a standstill. The towns all presented an appearance of greatest neglect, and showed everywhere entire disregard of every sanitary law. The amount of clothing in the possession of the people was very limited, and in many of the interior villages women were compelled to keep out of sight when strangers appeared, as they had only skirts and waists made of bagging and other coarse material. Many of the children were absolutely without clothing. Evidences of great suffering were found on every hand. A very large proportion of the population was sick in the country districts from malaria, and in the seaport towns from lack of food and water. The death rate was extremely high throughout the province; in Santiago city over 200 per day. About 8,000 Cuban troops were under arms in the department. The small farmers and people whose estates were removed some distance from the villages were afraid to return to them, as quite a number of guerrillas who had served with the Spanish forces were still in the mountains. Custom-houses were closed. In a word, all civil government was at an end, and the operation of the courts, with the exception of the court of first instance of Santiago and one or two municipal courts, had entirely ceased. All towns were without any definitely organized civil government. There was not a road in the province which could be passed over for any distance by wagons. The water system of the city of Santiago had been partially destroyed. Some of the lighthouses had also been seriously injured; in fact, the country was without civil government and without industry, except on a very limited scale. The courts were inoperative and conditions of serious civil disorder were imminent. The questions which presented themselves most forcibly were the questions of feeding the people, finding means to give them employment, and reestablishing civil government. The first two and a half months after the surrender were devoted almost entirely to the distribution of food and to supplying hospitals and charities with such limited quantities of necessary material as we were able to obtain. The question of reaching the people throughout the province was a somewhat difficult one. It was solved, however, by sending food to all seaport towns, and to such interior towns as we could reach with pack trains. Couriers were also sent through the country to notify people where it could be found. Medicines and clothing were also issued in as large amounts as possible. Garrisons were sent to all important points with the purpose of restoring order and protecting those who wished to work, and the reestablishing of the rural guard was commenced for the purpose of furnishing proper police protection in the interior districts. Medical officers were sent to the interior with these trains loaded with supplies, with instructions to do all that they could to relieve the sick and prevent the spread of disease. Strict orders were given to the rural and municipal police to treat robbers and others severely. Comparatively little disorder existed. The good behavior of the people was quite remarkable under the circumstances. Custom-house officers were appointed and every port of any consequence was soon put in charge of a collector, assisted by a force of native clerks, most of whom had had previous experience in the custom house under Spanish rule. Courts were gradually reorganized and supplied with necessary personnel and material. The prisoners in the jails were carefully examined and all political and military prisoners were, as a rule, released. Rations were given freely to those unable to work; to those having families able to work, they were given only in payment for labor. The amount of rations issued was very large. The civil government was gradually established, mayors and municipal officers being appointed for the various municipalities. These officers were always nominated by a committee of the best people and were efficient as a class. Such public works as we had means to undertake were undertaken, not only for the purpose of public improvement but for the sake of giving men work with the proceeds of which to support themselves and their families. Light-houses were reestablished, a new one built at Guantanamo and the one at Santiago put in working condition. Commanding officers in all parts of the island were busily engaged in cleaning up the towns and carrying out all possible sanitary and administrative reforms. Schools were established-some 60 in the city of Santiago and over 200 in the province as a whole. Affairs have continued to improve slowly but surely, until at the present time we find the towns, generally speaking, clean; the death rate lower than the people have known before; some public improvements under way in all the larger towns, the amount of work done being limited only by the amount of money received. The larger plantations are all working and bid fair to soon reach their former output. Throughout the country the farming and laboring class are at work. The mines are also working and many prospectors are in the country locating and prospecting for zinc, copper, asbestus, manganese, and iron, all of which abound to a considerable extent. The courts have been completely reestablished. A system of public works has been undertaken, which has increased in importance from month to month, and at present furnishes employment for large numbers of men. Some excellent roads have been constructed and a great deal of country highway has been made passable for wagons. Much sanitary work and paving has been done in the cities of Santiago and Puerto Principe. General repair work and such sanitary work as has been possible with the limited means has been done in the interior towns. The condition of hostility existing at the close of the war between the Cubans and Spaniards has diminished very much. The political situation among the natives is interesting. All sorts of ideas exist and many parties. The general idea seems to be that they are now ready to vote and hold elections for municipal officers, etc. This, however, is very doubtful, as the sentiments growing out of the war are still acute and bitter, and fitness for office depends very largely on the men's record during the war. Industries of all kinds are springing up. New sugar plantations are being projected. Hospitals and charitable institutions are being regularly supplied and all are fairly well equipped with necessary articles. The death rate among the native population is very much lower than in former years. The people in the towns are quiet and orderly, with the exception of a few editorial writers, who manage to keep up a certain small amount of excitement-just enough to give the papers in question a fair sale. The people are all anxious to work. The present currency is American currency. A condition of good order exists in the rural districts, the small planters are all out on their farms and a condition of security and good order prevails. The issue of rations has been practically stopped and we have a few or almost no applications for food. In the province of Santiago the issue of rations, except to hospitals and charitable institutions, is practically at an end. In the province of Puerto Principe the number of rations being issued is rapidly diminishing. The greatest of our needs now is a thorough reform of the judiciary and in the procedure. I do not mean an entire uprooting of the law of the land, but a radical modification, especially in the methods of criminal procedure. The present judiciary of this province is not doing efficient work. Evidences of indifference, if not corruption, are altogether too numerous. The prosecuting officers are not energetic, as evidenced by prisons full of untried cases. The conduct of the judiciary, taken as a whole during the past six months, has been of such a character as to warrant grave doubts arising in the minds of the people as to the wisdom of giving testimony against criminals and outlaws, whom they find soon turned loose upon them again and in a position to take vengeance on those who have testified against them. There is still too much tendency in municipal administration toward the pomp and ceremony of other days. Every mayor of a town, whether it has six houses or six hundred, deems it necessary to have a certain number of municipal police, municipal secretaries, etc., all of which are unnecessary. In short, there is a strong tendency to the reestablishment of the old Spanish system of multitudinous offices with officeholders drawing salary from the public treasury. The present system of taxation is entirely inadequate to the demands of the situation. It is simply the old Spanish system with a few modifica tions, making it perhaps a little less burdensome, but preserving the vices and defects inherent in it from the beginning. People are not taxed in proportion to the extent of their individual possessions or with any consideration to their individual abilities to contribute. The present system does not encourage, but actually retards improvement and development of the country. It penalizes energy and enterprise and rewards neglect and inactivity. Taxes assessed on values as distinguished from the product of real and personal property are practically unknown. The immediate establishment of a good school system is imperative. The present system is inefficient and almost worthless. The teachers are not teachers in the sense in which we employ the term. There is not a schoolhouse in the department. Both children and their parents are anxious to have English taught by competent teachers, and I strongly recommend the immediate establishment of an efficient school system based on the school system of the States of New York, Massachusetts, or Ohio. Any of these systems would be acceptable here and would give splendid results. There is no starvation in the department at present. The people are kindly disposed toward the Americans. Many of the people possessing property are annexationists. This is also true of the Spaniards, as a class. American officers and soldiers can go anywhere without being molested and always receive uniformly kind and courteous treatment. Manifestations of hostility to our occupation are limited almost solely to the press in certain large towns, which find it necessary to serve up exciting and incendiary articles in order to maintain a large circulation. Taken as a whole, I think the condition of the people is comfortable, and there need be no anxiety about their physical wants or welfare. Municipal elections, I believe, can be safely held upon the completion of the census, and I should recommend that this course be taken, as it will be a very good test of the ability of the people to abide by the decision of the majority. General public work and sanitary work should still be retained in the hands of the military authorities, as there are few native sanitary or civil engineers who are thoroughly familiar with this class of work, and before turning it over to them sufficient time should have elapsed to enable them to become familiar with our system in these departments. With this end in view it is desirable to employ as many natives as assistants as possible. The recent payment of the Cuban army has been of great assistance to the people, and as a result many work cattle are being imported and agricultural implements purchased. In a recent ride across the province I found everyone at work and much land being plowed. The output of tobacco this year is about four times what it was last year, and the chances are that next year the output will nearly equal that of the years before the war. The people, generally speaking, look happy and contented, and although very poor, seem to be well fed. They are, most of them, living in thatch houses built on the sites of their former homes. Houses are being built in many of the destroyed towns, and everything points to a slow but steady return to normal conditions. Very respectfully, your obedient servant, LEONARD WOOD, Commanding Department of Santiago and Puerto Principe. ANNUAL REPORT OF THE COLLECTOR OF CUSTOMS FOR CUBA, FISCAL YEAR ENDING JUNE 30, 1899. OFFICE OF THE COLLECTOR OF CUSTOMS FOR CUBA, ADJUTANT-GENERAL DIVISION OF CUBA, HEADQUARTERS DIVISION OF CUBA, Habana, Cuba, August 1, 1899. Habana, Cuba. SIR: I have the honor to submit the following report of the operations of the Habana custom-house and the Cuban customs service, for the six months of the fiscal year ending June 30, 1899: By Executive order of December 9, 1898, published by the War Department December 13, and from Headquarters of the Army in General Orders, No. 186, on December 17 of the same year, the island of Cuba, and all islands in the West Indies west of 74 degrees west longitude evacuated by Spain, were, during the occupancy of these islands by the military authorities of the United States,(constituted à collection dis WAR 99-VOL 1, PT 6—24 trict for customs purposes.) Habana was made the chief port of entry of this district. The officer assigned as collector of this port was also made the collector of customs for the islands, having general jurisdiction over the collection of customs therein. By the same Executive order the ports of Matanzas, Cárdenas, Cienfuegos, Sagua la Grande, Caibarién, Santiago, Manzanillo, Nuevitas, Guantánamo, Gibara, and Baracoa were declared to be subports of entry, each with a collector having general jurisdiction of the collection of customs at his port. The order also directed the appointment of an auditor of customs, to be stationed at the chief port, whose duty was to examine all entries of merchandise, and when found correct to certify to them and make monthly reports to the Secretary of War of all duties collected at each port, with an itemized report of all expenditures made therefrom. The order provided that collectors of subports should deposit all moneys collected by them with the collector of the islands. Under the conditions existing on the 1st day of January, 1899, the actual physical deposition with the collector of customs for Cuba of all the customs funds collected throughout the islands was found to be impracticable. The collections of the various ports were for the time left in the custody of the collectors, they acting as the local disbursing officers for all expenses connected with the customs service, and transferring funds to other departments of the government upon the order of the Governor-General transmitted through the office of the collector of customs for Cuba. By Executive order of December 13, 1898, published from the War Department on December 17 of that year, a tariff of duties and taxes to be levied and collected by the customs service, and regulations for the administration of this service were promulgated to take effect in the island of Cuba on and after January 1, 1899. By these regulations four ports, to wit, Trinidad, Santa Cruz del Sur, Tunas de Zaza, and Batabanó were added to those previously designated as ports of entry. In practice the only objection to the system of organization thus established developed in the fact that it made the customs service not only an agency for collecting what was practically the entire insular revenue, but also made it the custodian and disburser of this revenue, thus combining in one department the functions of a tax-collecting department, a treasury department, and a disbursing department. The undesirability of such a combination naturally appeared most strongly at Habana, where the greater part of this revenue was collected, and where the customs officers found theuselves from the beginning taxed to their utmost limit of responsibility in the simple collection of the revenue. For this reason, and in order to relieve the collector of customs for Cuba of an additional responsibility, more than any one man could carry, a treasurer of customs, who should also be disbursing officer for the collector of the port of Habana, was appointed by General Order No. 9, Headquarters Division of Cuba, January 27, 1899. This system continued until July 1, 1899, when it was further modified by the organization of two new offices, i. e., that of treasurer of the island, and that of auditor of the island, as provided in Circular No. 18, War Department, Washington, May 11, 1899. Maj. Eugene F. Ladd, who had been previously appointed treasurer of customs, was made treasurer of the island, and Mr. William P. Watson, who had thitherto been auditor of customs, was appointed auditor of the island. In the organization of the office of the auditor of the island, an assistant auditor is provided, whose duty is to continue the functions of the auditor of customs as originally provided in Executive order of December 9, 1898. I arrived in Habana on December 26, 1898, having been appointed collector of customs for Cuba, and collector at the chief port by paragraph 26, Special Orders, No. 299, Headquarters of the Army, December 20, 1898. The following officers had been designated as collectors of customs at the respective subports by Special Orders, No. 298, Headquarters of the Army, Washington, D. C., December 19, 1898. APPOINTMENT OF COLLECTORS. Maj. John J. Brereton, quartermaster, U. S. V. (captain, Twenty-fourth U. S. Infantry), at Cienfuegos. Capt. Thomas F. Davis, Fifteenth U. S. Infantry, at Santiago. Capt. William H. Hay, assistant quartermaster, U. S. V. (first lieutenant, Tenth U. S. Cavalry), at Matanzas. Capt. William P. Evans, Nineteenth U. S. Infantry, at Cardenas. Capt. Frederick S. Foltz, Second U. S. Cavalry, at Batabanó. Maj. Harry C. Benson, inspector-general U. S. V. (captain, Fourth U. S. Cavalry), at Tunas de Zaza. Lieut. J. W. Smith, the collector at Gibara previous to January 1, 1899, was retained as collector at that port. CHANGES IN COLLECTORS. The interval between December 26 and January 1 was occupied in studying the situation as well as I could under the disadvantageous circumstances, in giving verbal instructions to such of the subcollectors as passed through Habana en route to their stations, and in addressing written instructions to others, in order that the operation of the whole system might begin with as little friction as possible on the day appointed. Although anticipating its proper place in this narrative portion of my report, I will add that since the first of January the following changes have been made in the collectors at the different ports of the island. At the port of Baracoa Capt. George K. McGunnegle was relieved from duty, and Lieut. Herman C. Schumm took charge on January 15. At the port of Batabano Capt. Frederick S. Foltz was relieved on February 14, and upon my recommendation, with the authority of the War Department, Mr. Ramon Ma. Cañas, a native Cuban, was appointed acting deputy collector in his place, under the immediate supervision of the collector at Habana. At the port of Cardenas Capt. William P. Evans was relieved on May 13, and Lieut. M. B. Stokes was appointed on May 19, taking charge of the custom-house on the 28th of said month. Upon April 19, Maj. John J. Brereton was relieved from duty as collector of the port of Cienfuegos, and Capt. W. Y. Stamper was appointed in his place upon the same date. Lieut. J. W. Smith, collector at the port of Gibara, was mustered out of the United States service on May 22, and upon my recommendation was appointed acting deputy collector at that port on May 23. At the port of Manzanillo, Capt. W. Y. Stamper was relieved from duty and ordered to Cienfuegos, and Capt. F. G. Irwin was appointed to succeed Captain Stamper as collector, upon April 19. Capt. George A. Cornish was relieved from duty at the port of Neuvitas, upon January 5, and Capt. C. A. Williams appointed in his place upon the same date. At the port of Ysabela de Sagua Capt. John Bigelow was relieved from duty on January 21, and Capt. Elias Chandler appointed collector of customs upon the same date. Capt. William F. Blauvelt was relieved from duty at the port of Santa Cruz upon April 27, and Mr. M. E. Estrado, a native Cuban, was appointed acting deputy collector upon May 16, Santa Cruz being made a subport of Manzanillo, under the supervision of the collector at the latter place. At the port of Trinidad, Lieut. John Conklin was appointed collector on December 20, 1898, in place of Lieut. Warren Newcomb. At the port of Tunas de Zaza, Capt. H. C. Benson was relieved from duty upon April 6, and Capt. Charles J. Stevens was appointed collector in his place. This was revoked upon April 17, and Capt. Francis G. Irwin was appointed collector. Captain Irwin was subsequently relieved and Lieut. Le Roy S. Upton was appointed April 22, and has continued on duty since that time. The entire credit for whatever success has attended the operations of the customs service outside of Habana is due to the intelligence, tact, untiring zeal and devotion to duty of these officers and their subordinates. OCCUPATION OF CUSTOM-HOUSE. At 12 o'clock, noon, January 1, 1899, acting under instructions from the American Evacuation Commission, and from Major-General Brooke, I took charge of the treasury department (Hacienda) of the island of Cuba, of which the customs service hitherto had been a subdepartment. On the same day, as informed by telegraph and letter, all those custom-houses of the island which had not been previously delivered under the partial military occupation of the United States forces, were taken possession of by the duly appointed collectors, and the new administration of the Cuban customs service began. The temporary tariff and regulations which had been in force since the preceding August at certain ports in the province of Santiago were |