Representative Martin, of Colorado, the author of the resolution. Mr. J. H. Ralston, counsel for the Anti-Imperialist League of Boston, submitted in writing such questions as he desired, and they were propounded by members of the committee. He also submitted a brief. Many days were consumed in the taking of testimony, all of which is submitted herewith and as part hereof.

The lands of the Philippine Islands may, for the purposes of this report, be divided into three classes:

1. Private lands.-Lands which, at the time of the passage of the act of Congress entitled "An act temporarily to provide for the administration of affairs of civil government in the Philippine Islands, and for other purposes," approved July 1, 1902, and commonly called the "Organic act," were, and still are, in the private ownership of individuals or corporations as distinguished from Government ownership of any kind. They are estimated at 7,000,000 acres.

2. Public lands.-These are lands which belonged to the Spanish Crown, and by the treaty of Paris became the property of the United States. They are estimated to contain about 60,000,000 acres.

3. Friar lands.-These were at the time of the passage of the organic act in the private ownership of certain religious orders, from whom, under authority of the said act, they were subsequently purchased by the Philippine Government. They cover about 400,000 acres. They cost the Philippine government, in round numbers, $7,000,000, and bonds to that amount were issued to provide the funds for their purchase.

LIMITATION UPON CORPORATE HOLDING OF LANDS.

Section 75 of the organic act provides as follows:

SEC. 75. That no corporation shall be authorized to conduct the business of buying and selling real estate or be permitted to hold or own real estate except such as may be reasonably necessary to enable it to carry out the purposes for which it is created, and every corporation authorized to engage in agriculture shall by its charter be restricted to the ownership and control of not to exceed one thousand and twenty-four hectares of land; and it shall be unlawful for any member of a corporation engaged in agriculture or mining and for any corporation organized for any purpose except irrigation to be in anywise interested in any other corporation engaged in agriculture or in mining. Corporations, however, may loan funds upon real-estate security and purchase real estate when necessary for the collection of loans, but they shall dispose of real estate so obtained within five years after receiving the title. Corporations not organized in the Philippine Islands and doing business therein shall be bound by the provisions of this section so far as they are applicable.

This is a general provision and applies equally to private lands public lands, and friar lands.

There is no limit to the amount of private lands which may be acquired or owned by natural persons.

Public lands acquired by the United States under the treaty of peace with Spain may not be sold by the Philippine Government in quantities exceeding 16 hectares to one person or 1,024 hectares to any corporation or association of persons. A hectare is equal to about 2

acres.

There have been 62 sales of public lands made by the Philippine Government since the passage of the organic act of 1902, covering an area of 14,790 acres. Ten of these purchasers were corporations, whose purchases aggregated 13,177 acres. Owing to the restrictions on the sale of public lands, or for some other reason, there have been only 52 sales to individuals in tracts of 40 acres or less, their purchases aggregating 1,612 acres out of the total of some 60,000,000 acres offered for sale. In no single instance has there been more than 16 hectares of public lands sold to a single person or 1,024 hectares to a corporation or association of persons.

There is no manner of doubt that the organic act limits to 16 hectares, or 40 acres, the amount of public land which one person may acquire. Does that limitation extend to friar lands? That question, which will presently be discussed, is the most important one involved in this inquiry.

There have been made 8,393 sales of friar lands. Of these sales 82 involve amounts in excess of 16 hectares, or 40 acres each.

The following table shows the name of each purchaser, the name of the friar-land estate, the number of hectares purchased (omitting fractions), and the sale price in pesos, 2 pesos being equal to $1 in value:

Friar lands sales of more than 16 hectares to one person.

Friar lands sales of more than 16 hectares to one person-Continued.

Of the 82 persons who have thus purchased more than 16 hectares each of friar lands, 78 are Filipinos and 4 are Americans. Four hundred and ninety-two persons have outstanding leases of more than 16 hectares each of friar lands. Four hundred and seventy-five of such lessees are Filipinos, 15 are Americans, and 2 Englishmen. The most of these leases are for one year. A few of them are for shorter (p. 208) and a few for longer periods. Some of them contain specific options to purchase, as in the case of Gen. Emilio Aguinaldo, who acquired possession of 1,050 hectares under a lease with an option to purchase, and as construed by the officials of the Philippine Government every lease of friar lands involves an option to purchase. If any of these sales or leases in excess of 16 hectares to one person were illegal they were all illegal whether the purchasers were Filipinos or Americans.

The principal sale of friar lands, the one which had attracted most attention, and the one which led to the introduction and passage of this resolution of inquiry, was the sale to E. L. Poole, of the San Jose estate, on the island of Mindoro, comprising 22,484 hectares.

THE FRIAR LANDS.

The so-called friar lands were for a long time owned by certain religious orders. They covered, as already stated, about 400,000 acres. About one-half of them were unoccupied and practically untenanted. The other half was very thickly peopled. The tenants and their subtenants, with their families and servants, numbered more than 161,000. The friars were persons of great power and influence in their respective communities and were supposed to be in close touch with the Spanish Government. This and the allegation that they were oppressive landlords led to their being driven from their parishes to Manila during the insurrection against Spain, which preceded the Spanish-American War. When that war had ceased and peace been restored the friars sought possession of their lands. The tenants themselves setting up claims of ownership refused either to pay rent or to surrender possession.

Where such powerful interests and so many persons were concerned, the situation was very difficult and threatened the peace of the islands.

To correct and cure these evils, Congress, in the act of 1902, which will be discussed a little later, provided for the purchase of these lands by the Philippine Government, with authority to borrow money for that purpose, issue bonds to the amount thereof, and, the friar titles being thus acquired, to sell the lands and apply the proceeds to the redemption of the bonds-the occupants being given the preference in the matter of purchase. The negotiations with the friars were largely conducted by William H. Taft, now President of the United States, but then Governor General of the Philippine Islands. It is a matter of history that, for the purpose of securing the relinquishment of the friar titles, he visited and conferred with the Pope at Rome. There were certain of the unoccupied friar lands which the Government was not very anxious to purchase, but the friars would not sell the others without them, so they were taken along with the rest, but at lower prices.

THE SALE OF THE SAN JOSE ESTATE.

The largest unoccupied tract of friar land acquired by the Philippine Government was the San Jose estate, situated in the southwestern part of the island of Mindoro, and having an area of 22,484 hectares, or a little over 56,000 acres. This large unoccupied tract the friars had insisted should be included along with the thickly populated estates, and the Government deemed it wise, in any event, to secure, as far as possible, the departure of the friars from the islands and to prevent their return to their estates, which latter reason afforded additional cause for the purchase.

The island of Mindoro is distant about 165 nautical miles from Manila, requiring about 24 hours to make the trip. The whole island contains something more than 2,500,000 acres. Although the land is said to be fertile, only about one-third of 1 per cent of it is under cultivation. About 4 per cent of the total area of the island is in private ownership, and the remainder, with the exception of the San José estate, is public land, offered for sale at about $2 per acre. The original cost of this estate to the Philippine Govern

ment was $298,782.07. It was producing no revenue, but costing something for care and attention. The interest upon the bonds representing the cost price was also a very considerable item. Under these circumstances, the Government officials were anxious to effect a sale as soon as possible, and the limitations, which the original Philippine friar lands act imposed upon sales, having been removed by a subsequent amendment, they issued a prospectus, offered the estate for sale, and at every opportunity brought it to the attention of persons whom they thought might become purchasers. The first person whom they were able to induce to visit the estate, with the idea of purchase, was J. Montgomery Strong, a banker of Little Falls, N. J., who went there in March, 1909, and who, it now appears, represented Horace Havemeyer and Charles J. Welch, the latter being his relative by marriage. He did not disclose to the Philippine officials the names of those whom he represented. Up to that time no offer had been made for any portion of the San José estate, nor had a single acre of public land been sold on the island. Mr. Strong did not report very favorably to his clients upon the San José estate, but recommended the purchase of certain private lands situated near thereto, and which could be had at lower prices.

Mr. John Henry Hammond, a prominent New York attorney, was employed by Horace Havemeyer on behalf of himself, Charles J. Welch, and Senff to investigate and report upon the Philippine land laws, particularly as touching the rights of corporations in the islands. He called at the Bureau of Insular Affairs in Washington, and, in the absence of Gen. Clarence Edwards, chief of the bureau, had a conversation with the assistant chief, Col. Frank McIntyre. In that conversation he in some way gained the impression that there was a limitation upon the amount of friar land which could or would be sold to a single purchaser. Col. McIntyre testifies that he never intentionally gave such an impression, except as to purchases by corporations. He understood that they could hold only 1,024 hectares, but the department had always understood that since the amendment to the friar lands act there was no limit to the amount which could be sold to individuals.

Mr. Hammond testifies that his clients had contemplated the purchase of private lands. "There was," he says, "the question of occupancy and whether occupancy had ripened into title or not, and my recollection is that where lands had been occupied for a certain number of years and you could not prove actual title, that by going to the Government it would perfect the title in some manner. I can not tell you exactly what it was, because I did not go into it from the standpoint of the legal title; I was taking it largely from what Mr. Welch said, what he appeared to know, that it was defective in some way, but could be cured," and that "I know it was mentioned, and Í remember particularly that there were some questions about the title, and a title that might be cured by Government action, because that was one of the determining factors in my mind as to whether my firm had better withdraw, because we might have to go, on their behalf, to Government officials and ask to have this defective title cured" (741); and further, that "I came to the conclusion that, by reason of the fact that I am a member of the firm of Strong & Cadawalader, of which Mr. Henry W. Taft, brother of the President of the