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

United States, is also a member, it would be inadvisable for me to act for these gentlemen in connection with their proposed purchase of either public lands or friar lands or lands in the Philippines to which the title was defective." He says, "My firm as a firm really had nothing to do with the matter; I was the only member who knew anything whatever about it, except the two letters which I wrote to Mr. Taft on the subject, in which I discussed with him the advisability of our acting for these gentlemen. I entirely severed my connection with the matter on the 29th of September, 1909." The legal end of the matter was then intrusted to Mr. Carl A. De Gersdorff, a member of the law firm of Cravath, Henderson & De Gersdorff. Mr. J. Montgomery Strong, of whom mention has been made, was not a member of the law firm of Strong & Cadawalader and is not a lawyer at all, but a banker. Mr. Hammond testifies that the original purpose of his clients was to form a corporation for the purpose of purchasing lands in the Philippines; but, having examined the law in that regard, he advised adversely. He says: "My recollection is, roughly, that you could not prevent, under the treaty with Spain, an individual Filipino from selling his lands to anybody whom he pleased, but that whether a corporation could hold it after it got it was another matter. My clients did not want any doubtful titles." The purchase of private lands seems to have been abandoned, as well as the purchase of public lands, and the parties finally determined to purchase the friar lands embraced in what is known as the San Jose estate.

October 12, 1909, E. L. Poole and P. A. Prentiss called at the office of the director of lands in Manila, and informed him that they were contemplating the purchase of certain private lands in the island of Mindoro for the purpose of embarking in the sugar business. The director of lands endeavored to interest Mr. Poole in the San Jose estate, and was told that their attorney had been informed at Washington that friar lands could not be purchased in large tracts. The secretary of the interior showed them the law upon the subject and persuaded them to visit the estate. Mr. Poole informed the director of lands that he represented Mr. Welch, of Welch & Co. After visiting the estate, Mr. Poole expressed a desire to purchase it, subject to the opinion of his attorney as to the power of the Government to give title. The question having been raised, the director of lands obtained the opinion of the law officer of his bureau, and on the 12th of October, 1909, requested also the opinion of the attorney general of the Philippine Islands as to the authority to sell vacant and unoccupied friar lands to an individual without restriction as to purchase. Both of these decided in favor of the power to sell.

Mr. Poole having concluded to purchase the San Jose estate, a sale certificate was issued to him setting forth that the Government of the Philippine Islands had, upon the 23d day of November, 1909, "agreed to sell to E. L. Poole, vendee, a resident of the city of Manila, Philippine Islands, or his nominees," the San Jose estate, containing 22,484 hectares, for which he was to pay 734,000 pesos in installments, the first payment of 42,875 pesos to be made January 4, 1910, as of which date the sale was to become effective, and the unpaid balance to be paid in 19 equal annual installments of 36,375 pesos each, with

interest at 4 per cent per annum. Upon the payment of 42,975 pesos January 4, 1910, the Government was to convey to Poole or his nominees "200 hectares, to be designated by the vendee, in a single tract" within the limits of the estate, the balance thereof to be conveyed "upon completion of the payment of the purchase price as herein before stated, together with all accrued interest." That certificate, although made out November 23, 1909, was not signed by the secretary of the interior of the Philippines until a later date, he having received a cablegram from the Chief of the Bureau of Insular Affairs stating that the Secretary of War desired information by cable with reference to the proposed sale, and that it should not be consummated until he had considered the question. December 4, 1909, the Governor General was informed by cable that the Secretary of War approved the sale of the San Jose estate, and that, at the request of counsel for the purchasers, the question of the right of the Philippine Government to sell would be submitted at once to the Attorney General of the United States for his opinion. This submission was at the request of Mr. De Gersdorff, counsel for the intended purchasers. The opinion of the Attorney General in favor of the power to sell accompanies this report. The law officer of the bureau of lands and the attorney general of the Philippine Islands already had decided in favor of the power to sell. The amount originally paid for this estate by the Philippine Government was $298,782.07. The price fixed in sale certificate No. 1, above referred to, was $367,000 (734,000 pesos).

The Governor General, having learned that the Bureau of Insular Affairs at Washington had questioned the authority for such a sale, officers cabled the Secretary of War at Washington as follows:

[Translation of cablegram received.]

OCTOBER 22, 1909.

SECRETARY OF WAR, Washington: Prentis and Poole desire to purchase unoccupied sugar lands on San Jose friar estates, Mindoro; say Hammond was informed by the Bureau of Insular Affairs an individual can not purchase more than 40 acres friar lands. Can not understand this, as acts 1847 and 1933 were passed amending friar-land act to give Government right to sell vacant friar lands without restriction as to area. Attorney general concurs in the opinion that this has been accomplished. Please confirm by telegraph to satisfy these gentlemen.

FORBES.

On the same day Col. McIntyre wrote Mr. Hammond, correcting the impression which he seemed to have received, and calling attention to the law, which, he claimed, made it clear that friar estates may be sold to individuals without limitation as to area. Mr. Hammond replied that he had withdrawn from the case.

January 4, 1910, Mr. Poole made the down payment of 42,875 pesos; sale certificate No. 1 was canceled and sale certificates Nos. 2 and 3 issued in lieu thereof. Sale certificate No. 2 covered all of the San Jose estate "except a tract of 4,200 hectares of said hacienda, which is the subject of sale certificate No. 3 executed by the parties hereto contemporaneously herewith, to which reference is hereby made." Sale certificate No. 3 covered the remaining 4,200 hectares of the estate, and located the same according to a description therein contained, with the provision, however, that the "foregoing description is provisional, and shall be altered, if necessary, to conform to the