The third group of methods may be termed chemical-mechanical, the gutta being extracted by hot water from powdered leaves and bark, and then treated with chemicals for the removal of impurities, no harmful after effect from the chemical treatment being apparent. High-grade gutta is produced in this way. Dr. Sherman was naturally unable to obtain admission to any of the factories where these secret processes were used, but there would seem to be no special difficulty in the way of our elaborating a satisfactory method of extraction from leaves and bark here in the Government chemical laboratory, as the general principles involved are known; and it is further known that there is no first-class chemist connected with the factories which now exist, so that the problem can hardly be very difficult. It had been hoped that the introduction of one of these new extraction methods in Mindanao and the erection of factories would prevent destruction of the trees, by showing the natives an easier and more remunerative manner of obtaining the gutta; but it appears that experience has shown, in the countries where improved methods have been practiced, that, unless watched, the natives are very likely to fell the trees in order the more readily to get at the leaves. It is estimated that, by 1907, there will be 900,000 to 1,000,000 trees planted and growing on Government plantations in Java, and two private companies have also embarked in this enterprise there. The method of extraction from leaves is the one which it is intended ultimately to utilize both on Government and private plantations. Great Britain and Holland are the countries owning all known guttapercha lands outside the Philippines, and they are taking very active steps not only to preserve the trees which remain, but also to establish new plantations. Germany has long had an agent in gutta and rubber producing countries, with a view to the introduction of trees into her African and New Guinea possessions. Some years since, France sent gutta seedlings to all her tropical possessions, and a representative of that Government visted Borneo. Another representative is now at the botanical gardens in Buitenzorg Java, to continue the work. Although the best gutta-producing tree (Dichopsis gutta, Bent) has not as yet been found in the Philippines, very closely allied species are already known and the gutta-percha obtained from them brings $40 to $150 per picul at Singapore. The trees are known to be present in large numbers in southern Mindanao and in Tawi Tawi. Holland at present monopolizes all gutta-percha seeds, which are so valuable that it is found more profitable to keep trees for seed than to extract gutta from them. There can be no reasonable doubt that, if it does not already exist there, the best species of gutta tree would grow in Tawi Tawi, which is in the same latitude with its habitat in north Borneo. Seedlings could readily be transplanted from Borneo and Sumatra to the Sulu Archipelago and to southern Mindanao. Active measures will immediately be taken for the identification of the gutta-producing trees of these islands, as well as for their protection, which unfortunately presents a difficult problem, as they are believed to be confined to regions inhabited by Moros or by the wild Indonesian tribes of Mindanao. It is hoped, however, that Moro datos may be made to see the importance to themselves of protecting the trees, and that, when shown the good results that may be obtained by tapping, they will themselves take active measures to prevent their people from destroying what might be such a source of profit to them. Dr. Sherman's report also contains a summary of the methods of extracting and preserving rubber and an account of the rubber trees thus far successfully cultivated. One of the best of these, Ficus elastica, is known to grow luxuriantly wherever planted in this archipelago, and a Ceara rubber tree grown from seed in Manila has reached a height of 21 feet in a year. The starting of rubber and gutta-percha plantations in these islands is a project which can in no sense be considered in the light of an experiment, in view of what is already known, and which might well attract the attention of American capitalists. The cost of planting cleared ground with rubber seeds has proved to be but $2 an acre. The first good harvest should be had in about six years, but it is said to be practicable to plant double the number of trees needed per acre, and at the end of three years to cut out half of them, the rubber secured from the trees cut being sufficient to pay all expenses up to date. Planters estimate a return of $150 to $200 per acre from the rubber crop, after the trees have reached maturity, at the prices which at present prevail. Giant rubber vines are known to exist in the forests of the Philippines. Rubber trees have also been reported, but the species is as yet unknown. In the month of May Capt. George P. Ahern, chief of the forestry bureau, was granted leave of absence to visit the United States, in order to secure men for various positions in the forestry bureau, and took with him samples of many of the more valuable woods for exhibition there, these samples to be eventually turned over to the Forestry Division of the Department of Agriculture at Washington. No satisfactory experiments as to the properties of Philippine woods have ever been carried out. The chief of the forestry bureau has therefore been authorized to expend $3,000 for equipping a laboratory for testing the properties of our various woods. For a full account of the operations of the forestry bureau during the past fifteen months, including number of officials and their salaries, number of licenses, amount of forest products cut or otherwise obtained under them, an account of private woodlands, and the recom mendations of the acting chief of the forestry bureau, reference is made to his report to the civil governor for the fiscal year ending June 30, 1901, which appears as Appendix H, and to his supplementary report to the Secretary of the Interior, which appears as Appendix I. MINES. The limitations upon mining operations have been even more strict than those upon the work of the lumbermen. It has been considered by the commission that the Spanish mining laws ceased to be of effect with the downfall of the Spanish sovereignty. The direct necessity for the development of the mineral wealth of the archipelago has been less urgent than that for the exploitation of the forests, and no military order has ever been issued, nor has any act been passed by the commission, authorizing such development. As will be seen from the report of the chief of the bureau of mines (which is appended hereto as Appendix K), the operations of American prospectors have fully demonstrated the existence of valuable deposits of copper, gold, coal, and iron. Capital is only awaiting the opportunity to invest in these properties. Our prospectors have been an exceptionally good class of men. They have never caused any serious disturbance of public order, but on the other hand have often pushed into the mountains in advance of the Army, and have established friendly relations with many of the wild tribes. Some of them, after locating properties which they believed to be valuable and staying by them until their last dollar was gone, have been forced to abandon the attempt to secure recognition of their claims. Others are still holding on. In the interest of these American citizens, who have shown qualities deserving of all respect, and in the interest of the commercial development of this archipelago, Congressional action which will render possible the development of the mineral resources of the Philippine Islands is most strongly urged. A mining code believed to be suited to the needs of these islands has been prepared by the chief of the mining bureau. Before making final recommendations in regard to this important matter, the commission desires to give miners and prospectors an opportunity to be heard. A public hearing has been set for October 19, and the final draft, embodying any amendments that may seem desirable, will be forwarded, as a supplementary exhibit, by the next transport. The work of the mining bureau during the past year has necessarily been limited to investigation and report upon mines and claims; to the translation of old laws, decrees, and documents; to the gathering of information as to the results of prospecting; to the preparation of maps showing the whereabouts of mines and mineral deposits; to the preparation of reports on the more important minerals found in the |