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ROCK WORK IN THE BUED RIVER VALLEY ON THE BENGUET ROAD.

romantic and healthful region and discussed the importance of speedily connecting it with Manila by a railway, which could be accomplished by a line 55 miles in length, from Dagupan to Baguio, the former being the northern terminus of the Manila and Dagupan Railway, now in operation. The preliminary survey, at that time being made, has been completed by Capt. Charles W. Mead, a competent civil engineer, and now city engineer of Manila. He advised us that it would be necessary to build a highway along the proposed route of the railway, in order to enable a final instrumental survey to be made, and that this highway would also be useful, if not indispensable, when the railway was put in course of construction. Accordingly the requisite appropriation for building the highway was made and the work put in charge of Captain Mead. He has been much delayed by the difficulty of procuring the labor requisite for its early completion and several months will yet elapse before it is finished. It is being constructed in the most substantial manner and will be useful both whilst the railway is being built and thereafter.

ADMINISTRATION OF JUSTICE.

At the date of the last preceding report of the commission, a certain number of courts of justices of the peace had been established in the capitals of some of the provinces, the courts of first instance had been established in the provinces of Manila, Pangasinan, Cagayan, Isabela, Cavite, Iloilo, Pampanga, Nueva Ecija, Ilocos Norte, Bataan, Cebu, Bohol, La Union and Benguet, and a supreme court for the islands had been organized. Most of these courts had been organized by military orders prior to September 1, 1900, on which date the commission first had legislative authority. The judges and justices of all these courts, except the supreme court, were Filipinos. In the supreme court the minority were Americans. These courts had not been established as a regular system for the administration of justice, but as provisional and temporary expedients to meet the exigencies arising in provinces where civil courts could be of utility. They were unsatisfactory and a reorganization of the whole system was regarded as indispensable as soon as such action could properly be taken. These courts had not all been instituted at one time, but had gradually been brought into being as rapidly as conditions warranted. Meanwhile, pending the reorganization of the courts and the enactment of improved methods of procedure, several laws were enacted by the commission, to meet pressing needs.

On the 21st day of December, 1900, act No. 63 was passed, providing that in the construction of acts enacted by the commission, the English text should govern; but that in obvious cases of ambiguity, omission or mistake the Spanish text might be consulted to explain the English text.

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The bureau has been placed under the general control of the secretary of commerce and police.

POSTAL SERVICE.

The department of posts during the past year has steadily extended its operations, so as to meet every reasonable demand made upon it. The service has been, all things considered, very satisfactory and creditable.

Outside of the commercial ports, the Army and Navy and American civilians, there is as yet very little demand for a frequent mail service. Doubtless with the general restoration of peace and the return of normal times, the Filipinos, when the opportunity is offered, will learn to better appreciate and understand the value of a regular and frequent mail service.

Under the Spanish régime the postal department was conducted in the most primitive way. All coastwise vessels were required to carry the mails without compensation, and presidentes of towns were required to act as postmasters and to distribute and forward the mails without cost to the Government. It can be readily understood, without further elaboration, how effective such a service would be.

The introduction of a cheap and regular mail service, along modern lines, will undoubtedly prove to be here, as it has everywhere else, of immense benefit to the people, and will gradually become selfsupporting.

The department, with the concentration of troops into larger garrisons, will no longer be able to utilize the Quartermaster's Department of the Army to carry its mails nor army officers to act as local postmasters, but will be compelled to establish routes and to appoint postmasters of its own. The lack of good roads and transportation facilities will no doubt prove in the future, as it has done in the past, a serious drawback to anything like a really up-to-date service. This is not only true as to interior points, but applies, to a modified extent, to towns upon the coast, owing to the irregularity with which vessels run. It is believed, however, that with the establishment of the governmental transportation system hereinbefore referred to and the utilization, to a considerable extent, of the services of provincial inspectors of constabulary, school-teachers and other American officials as postmasters a fairly efficient service can be provided. Until railroads are built and highways improved, it is of course impossible to hope for an ideal service.

For the past fiscal year, the expenditures exceeded the receipts by the sum of $36,470.06. It was inevitable that there should have been a deficit, but, all things considered, it is remarkably small. Undoubtedly it will be necessary for several years to come to increase the appropriation for this department to meet its needs and it is equally

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