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December 16, 1901.]

MANILA.

[FROM OUR CORRESPONDENT.}

Manila, 3rd December.

HOW THE SUPREME COURT'S DECISION

outcome

AFFECTS THE PHILIPPINES.

overyone

The cabled news that the Supreme Court of the United States has decided, in the Diamond Ringe case, that the Philippines are United States territory and that the imposition of daty is improper, has thrown the city into a jubilant frame of mind. No matter what the feels that a great step has been made in the progress of the country. The wording of the cablegram is somewhat ambi- guous and opens the way to many constructions, some far more extensive than others. This first message was received about noon to-day and at half past five o'clock a more completo statement was cabled by the Times' Washington correspondent, as follows: The Supreme Court in the Pepke case decides against the government. The ruling is to the effect that all articles from the Philippines must be admitted free of duty mutil Congress enacts special tariff legislation for the Archipelago. The power of Congress to do this was upheld in the Puerto Rico case and it is expected that it will precipitate special legislation for the Philippines."

From these messages the papers and the business men draw their own conclusions and +ach one fits the shoe to his own foot. On the whole a rather too broad and pri mature

view, has been taken of the matter. Interested merchants are naturally anxious for the refunding of the duties on American goods, which have been paid under protest during the last three years, and in this message they see a hope of suddenly swelled bank accounts. Others claim that it means a large possibility of free trade between the United States and the Philippines. At any rate it will be a grand boost for the growing commerce if Philippine products are to be admitted free into the home country. Hemp, tobacco and sugar industries wil be immensely benefited. But because Philippine goods are admitte free into the United States, the con- verse does not necessarily follow, viz, that United States goods will be admitted free into the Philippines. Neither is there any great likelihood of the protested duties, amounting to some $7,000,000, being refunded to the mer. chants. Such refunding would he manifestly unjust as the money would not go the parties who paid it, namely the consumers, but to the merch nts who have already added the duties in the selling pric.. Besides it is very doubtful if there can be any reasonable question over these duties as they were levied under the extensive war-power of the Chief Executive.

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CHINA OVERLAND TRADE REPORT.

BRITISH NORTH BORNEO.-

FROM A CORRESPONDENT.]

Labuan, Borneo.

GOVERNMENT BY CORPORATION.

OX-

With profit as its primary and essential object, whatever lofty or humanitarian motive may actuate it collaterally, the government of British North Borneo has undergone periences which may suggest something of value to those who count on quick and boun- teous returns to the public treasury from Mindanao, as soon as the removal of Congres- sional checks upon corporate enterprise shall make that island inviting to capital. Borneo blossomed into fame as a garden of the sun while the world was yet naacquainted with the southern Philippines. It may be, as is declared, that it enjoyed a certain savage splendour of prosperity in centuries whose local record only vague tradition preserves. It lost estate in everything except land and story, so that for present purposes it stands upon a record quite

new.

But for one of those slips by which men au money fail to connect, an American company might now be guiding its for unes. When the assets of that company had dwindled to a schoute that could not be marketed and a concession that hal ruu out, the present company stepped in. It is not to be supposed that advice will be sought or lessons accepted in the management of the sun-gardens which the Americans are about to open, the new gardener preferring to work in his own way and to profit by his own errors. Yet it will not be disputed that British Borneo has enjoyed direction that has been careful, intelli- gent, and thoroughly up-to-date, and that there may be features in its rule of twenty years to entitle it to the interest of a friendly neighbour who must deal with similar surroundings of climate, soil, and human environment.

Although Borneo government began wholly with private capital, having dividends in view, it has never aimed at its own enrichment through direct trade. It engaged with the Crown when it obtained a Royal Charter that it would not reserve for itself, or authorise in others, a general monopoly of trade. Its coloni sers thus had the assurance of a fair field for their enterprises, and they have continually enjoyed it. Of late the government has under- taken telegraphic and railroad construction, in regard to which it may be said, should justification be uceded, that there would have been neither telegraph nor railroad except with government money. They promise a development of re- sources sufficient to remunerate the government in general revenues, a prospect that must ap- peal to stockholders, considering that territory stands them a net outlay approaching £800,000 and that the £70,000 of public collections now The military authorities are not particularly reached in a year practically disappear in the interested in the decision-as it has no immediate cost of administration and other charges. visible effect on them, except that is allows them Existing assets would doubtless be estimated to send their property and presents home duty by impartial accountants as worth much more free. Their policy and progress are not altered. than the money outlay which they represent. At the time of writing the civil authorities but twenty years of patient trial have cooled have received no official notification of the action expectations in regard to a Borneo boom, and of the Supreme Court and they naturally take probably even those shareholders who invested a very conservative view of the situation.because they could find no other uso for their With them the concensus of opinion seems to be that the message means this and nothing more the Supreme Court has decided that the President has no authority to apply the Dingley Tariff by order, as Commander in Chief, to goods coming into the United States from the Philippine Islands, because the law expressly applies only to goods imported from foreign countries, and the Philippine Islands, since the treaty of cession, are not a foreign country but are the property of the United States. As far as can be ascertained this view comes nearest to being the correct interpretation.

THE PATTERSON CASE.

An application has been made for a writ of Habeas Corpus for Mr. Patterson, the secretary of Sixto Lopez and the matter is being threshed out in the Supreme Court at Manila. The present efforts aro to cause

the Court to investigate Collector Schuster's actions and reasons for demanding the oath of allegiance to the United States from Mr. Patterson. It is possible that a result of this case will be the modification of the form of the

th.

*

money, would not be averse to some token to relieve posterity of the entire burden of swell- ing income on this account.

What was set forth at the start did not overstate the productive capacity of the soil, which will doubtless yield all that was claimed for it. If all had worked according to a programme yet plausible, the territory would now support a large and busy population, and a government resting lightly upop the people would have an overflowing treasury. In the first ten years of its existence, government operated at a lo s, enjoying then, as now, a soil quite as fertile as that of Mindanao, and as rich in products to be easily plucked, tapped or dag, and sent to a market eager topay well for them. The second ten years have recorded no losses, although but slight gains. The general inventory now shows a well-equipped administrative outfit, Government House, re- sidencies customs, police, and hospitals; natives generally peaceable and friendly; a half dozen settlements that may be classed as important; the capital Sandakan, containing 7,000 people; about 100 miles of railroad into the jungle

481

that skirts and penetrates the west coast, that will cost nearly £2,000 per mile a telegraph line across the island and in process of exten⚫ sion to coast stations, 500 m les in al', which has so far oost £57 per mile; and 31,000 square miles of laud, of which not twenty per cent. bas become of the slightest practical use. Perpetual leases of about 1,000,000 acres of land have been issued to tobacco-planters, who use yearly at a maximum one-seventh of their holdings, so that a field may not be taxed with a crop oftener than once in seven years.

Population at the beginning was estimated at 200,000. That estimate has not since been exceeded, although it now includes from 17, 00 to 150,000 Chinese, employed mainly on the tobacco-plantations, in which alone European capital has become interested on a large scale, and 300 Europeans, covering those in government service, in trade, and as managers and overseers at the plantations. Some of the plantations extend inland by a day's trip or further, but otherwise white enter- prise clings as closely as possible to the const, which fever finds less secure abiding place than in the jungle; and companionship eases the enervations perpetual summer. The interior remains much as it was. No one knows enough of it to say precisely what changes. if any, are occurring among the natives. If the addition of 15,000 Chinese to the original population has not increased the total, it would seem plain that native numbers must be lessen- ing. Occasionally there has been a hint of some pest like smallpox falling upon a tribe. Report leaves the rest to the imagination. Since the government is pledged to extend protection to all within its borders, the cou- stabulary does its best to run down crime and to check disorder, but in general native life needs little supervision, and gets little. The few outbreaks that have occurred under the government testify to the willingness of the natives to submit to white rule, to contribute to it support in a small way, and to help along trade to the extent of their own necessities or wants, by bringing to market such producta as they can easily gather. Out of the total exports last year valued at £338,600 tobacco shipments comprised nearly £170,000 in value. The forests in which the territory abounds, quite similar to those in Mindanao,(and which have been con- sidered capable of supplying the South China market with choice woods, yielded for export a value of £28,000. Coffee-planting has made no substantial headway. Gutta-percha yielded £20,000, an increase of £8,000 over exports for the preceeding year, but a small quantity in comparison with the amount that might be produced. Of indiarabber, shipments were valued at £7,500. Government encourages in every possible way the development of timber and forest interests, but it has taken until now to reach this volume, although there is a ready market for products at prices that insure good profits on all that can be sent out. Imports, mainly for common sustenance, reach nearly the volume of exports. The trouble is to organise labour for that purpose. Men will brave the dizzy crags for edible birds' nests who fear the breath of the jungle through which they must go to reach the timber-lands. To- bacco-planters say that in former years they estimated that every pioul of leaf cost a coolie. The industry became pr. fitable enough to make the health of such help an important considera- tion, and of late every plantation has a hospital, and physicians are kept within easy call, some of them under contract to several plantations in the same district. A coolie can work off the advance made to him on leaving home, and become a free agent within a few monthe if his health holds out. but how many of that class failed to meet this condition and were heard of no more, is a problem that is never computed in public, if anyone knows how to work it. The death-rate is probably now normal, after years of experience and solicitude to make it so; but even yet, as trade figures show, enterprise has not the mearDS to utilise properly its opportunities, and it cannot be questioned that despite the efforts of a well-directed and fostering government, the greater part of North Borneo still runs to inglorions seed. Nor need there be disparage- ment of native industry in stating this result. According to their standards they are

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