DOMINICAN REPUBLIC

POLITICAL, ECONOMIC, AND INDUSTRIAL AFFAIRS

File No. 839.00/2092

The Secretary of the Navy (Daniels) to the Secretary of State

WASHINGTON, July 17, 1918. SIR: I have the honor to forward herewith, for the information of the Department of State, a copy of the quarterly report of the Military Governor of Santo Domingo for the period April 1, 1918, to June 30, 1918.

Sincerely yours,

JOSEPHUS DANIELS

[Enclosure-Extracts]

The Military Governor of Santo Domingo (Knapp) to the Secretary of the Navy (Daniels)

SANTO DOMINGO, July 1, 1918. Speaking generally, quiet and good order have continued to prevail throughout the quarter. There have been some sporadic outbreaks of banditry which have been promptly quelled, and at this writing there are no reports of disorder in the Republic. These outbreaks of banditry appear to have some connection with the initial success of the Germans in France, and there seems to be reason to believe that there is a German propaganda which it has not so far been possible to locate definitely. The situation is, however, in entire control. Agricultural activity has increased and will be referred to later on. Business conditions have been more and more affected by the war, although there appears to be ample capital in the country to continue business activity as soon as the extraordinary measures taken by the belligerents shall cease to be effective.

The disarming of the population has continued. There has been some suspicion that arms in small quantities have been smuggled into the country; and also that arms have been sent across the border from Santo Domingo into Haiti. These reports have not been definitely proved. A prominent Dominican citizen in the Cibao, affiliated with the Horacista Party, is now under arrest for having had in his possession a considerable quantity of arms and ammunition.

The customs revenues of the country have shown a disquieting decrease, which is all the more disquieting because it is a reversal of the trend of collections during the same months of 1917. There is reason to hope that the country will pass through the calendar year without a deficit, but the falling-off of customs revenues will continue to be a source of anxiety until such time as it is certain that the revenues will equal the expenditures. The reasons for this decrease are entirely external, and are the result of the war. I take this occasion to repeat the opinion, expressed in previous correspondence which has treated this subject of customs revenues more at length, that the Dominican Republic should receive as favorable consideration in respect of imports to and exports from the United States as can possibly be given. A partial offset to the decrease in customs revenue is an increase in internal revenue. As the latter is, however, in normal times only between one-quarter and one-third of the customs collections. the increase of the former does not, up to the present time, balance the decrease

of the latter. Owing to the charges against the customs revenues in accordance with the treaty of 1907, the increase in internal revenues must be nearly one-half the decrease in customs revenues in order to insure a fixed available income for the purposes of the Dominican Government.

The Military Governor is still awaiting action upon the proposed scheme of public works. He had hoped that action would be expedited upon this letter after his recent personal visit to Washington, but thus far no information has been received regarding the action of the State Department.

The Dominican Claims Commission has continued its labors uninterruptedly. It is still unable to do much more than have hearings and make preliminary decisions. The president of the commission, Mr. Edwards, is now in the United States, and he took with him drafts of a proposed bond issue by which the claims can be liquidated. The Military Governor was greatly disappointed to find during his recent visit to Washington that it was impracticable to obtain a direct loan from the United States Treasury for the purpose of paying adjudicated claims in cash. Failing this, the proposal which has been forwarded and which Mr. Edwards is prepared to discuss, or something similar, seems to be the only method open for the payment of these claims without great delay which would entail considerable loss and even hardship in many cases and would militate against the growth of sentiment favorable toward the United States.

There is nothing more satisfactory to be reported than the very great improvement and quickened interest in educational matter. It will only be possible to refer briefly to what has been done. The attendance of children at school has been increased over 120 per cent; modern standard courses of instruction have been prescribed; a complete system of school inspection has been provided; teachers' salaries have been standardized and raised to a figure commensurate with the work; school discipline, practically non-existent hitherto, has been established, and the same thing is true of a system of sanitation; schools in the cities which formerly were scattered all over town and were housed in the homes of the teachers, who were generally very poor people, are now being housed in the best building; an order for some $50,000 worth of school furniture of standard description has been placed in the United States; a series of plans and specifications for the construction of standard school houses is in preparation, and already is partially completed. The appropriations, national and municipal together, for schools in 1918 are about double what they were in 1917, resulting in great improvement of existing schools and the establishment of about 250 new rural schools; agricultural instruction is being included in the rural schools; standard school books have been prescribed and their purchase arranged for at a reasonable price; the university has been reorganized and is now in a condition to form a nucleus for a modern university; the issue of diplomas and degrees has been standardized and their number limited, and they are now only given for standard attainments, which was not the case hitherto. Plans are now being studied for holding summer schools for teachers, for increasing the capacity of schools by having morning and afternoon sessions for different pupils, and in other ways for continuing the improvement of educational matters in the Republic. While much still remains to be done, the improvement during the past year has been

enormous.

In agricultural matters there is likewise a very great improvement. The number of traveling demonstrators has been increased, although they are yet far from sufficient for the needs of the whole Republic. The Agricultural Experiment Station near this city is now in active operation; the clearing is practically all finished, and about 60 per cent of the land is under cultivation. The silo, dipping tank, and windmill are nearly completed. The station should be in full operation in a short time. Three substations have been started at Jarabacoa, Monte Cristi, and La Romana, on land which is practically virgin soil at all of these places. By the liberality of the sugar company at La Romana the land and labor for that station is being furnished the Government free. Land is being rapidly cleared and placed under cultivation all over the Republic. No exact figures are available, but a rough estimate places the amount of this work at double what was done in the past calendar year, and that was very considerable An animal industry bureau has been inaugurated by the appointment of Mr. S. Durham, who was lately with the Agricultural Department of the United States. The people of the Republic are

very slow to adopt new methods of agriculture, and it is to be expected that progress in this direction will come only a little at a time. The Director of Agriculture, Mr. Johansen, has recently made a second extended tour through the country, and has rendered a very interesting and valuable report. He finds faulty methods and poor cultivation almost universal, but his visit and the efforts of the traveling demonstrators will be bound to have good results, although they may not be apparent immediately.

A new immigration law, based largely on the laws of the United States and of Porto Rico, has been prepared by the Department of Agriculture and Immigration, and is now being studied by the Department of Justice and Public Instruction before being submitted for issue by an Executive order.

Prospecting for minerals is going on at an increasing rate, and with some evidences of success. Copper is known to exist, as is gold, in small quantities. There seems to be a prospect that petroleum may be found in workable quantities. Nickel ore of more than average richness has been discovered, and there are reports of manganese deposits. Little is known of the mineral possibilities in the Republic, but I have a more hopeful belief that they may prove to be considerable than I had at one time. An expert from the United States Geological Survey is now in the country looking over its mineral possibilities, in so far as they may be useful to the United States in its prosecution of the

war.

The shipping situation has been somewhat ameliorated during the past quarter, but is not yet in a satisfactory state from the point of view of the Dominican Republic. As shipbuilding increases in the United States, it is hoped that some part of the new shipping may be devoted to bring the shipping facilities of the Republic back towards normal.

As in the past quarter, no new large public works have been authorized, but the Department of Public Works has been occupied with those already authorized and in hand. Several public works have been finished, including the Yaque River bridge at Santiago, and the Puerto Plata wharf. Other work is in a forward state, as the custom house at Puerto Plata and that at Santo Domingo City. Repairs have been made on roads already constructed to keep them in good order, and new work authorized has been carried on. In some cases work has been hindered owing to the non-arrival of materials from the United States, as for instance steel for certain bridges. Owing to the high bids for the road authorized for about 20 kilometers from Los Alcarizos toward La Vega, all bids were rejected and the Department of Public Works was authorized to proceed with the construction of the road by the administration. The survey of the road has been carried on for about 20 kilometers further and is now completed for a distance of about 40 kilometers out of Los Alcarizos or about 59 kilometers toward La Vega from Santo Domingo City. Some dredging work has been done in the harbors of San Pedro de Macoris and Santo Domingo City.

The Public Health Service has continued to receive the attention that is possible without a considerable change in the organization and in some of the laws governing it. During a recent visit of the Military Governor to Washington, this was taken up and an understanding reached with the Department of State regarding further work in this particular. Meantime the present organization has been carefully observed and plans have been drawn with a view to establishing a public health service on modern and definite lines. Owing to the relief of the Naval Medical Officer having this in his especial charge, action will be postponed until the officer who relieved him can familiarize himself with the conditions and have an opportunity to make his own suggestions.

The Dominican Central Railway continues to be successfully administered by its manager, Mr. Collins, who is making improvements from time to time as opportunity occurs and as these improvements are made possible by the arrival of material. An additional geared locomotive has been received which greatly increased the capacity of the railway by its use on the very heavy grade where the rack system was originally installed. Under present conditions it is not advisable to get much railway material at the present high prices, if indeed it can be obtained at all, but with such as is on hand the road is being daily placed in better condition. The bridge over the Bajabonico River, with its approaches, is practically completed at the writing of this report. The railroad is in a very satisfactory financial condition.

The present strength of the Guardia Nacional Dominicana is:

The arming of the Guardia with a modern rifle has not yet been effected. These rifles were obtained as long ago as April, and I am at a loss to account for their not yet having been received; a number of transports have arrived here since the time when I was in Washington and was informed that the rifles had actually been purchased and were in hand. It is important that these rifles and the ammunition for them be sent at the earliest possible moment. Some difficulty is naturally being met in the education of Dominican officers of the Guardia to American standards. It may be, and probably will be, necessary to put a larger number of Americans in the Guardia as officers until the Dominicans, by association with them, can be brought to a better knowledge of the requirements of their official position and a higher sense of accountability in every direction. . If the bill authorizing Americans in the Dominican service to accept compensation from the Dominican Government has been passed by Congress and approved by the President, I have not been informed of the fact. This is a matter of importance, especially for non-commissioned officers of the Marine Corps who have been placed in the Guardia with commissioned rank therein. They are obliged to meet expenses and maintain a position before the public that makes a demand upon their private purses which they are not prepared to meet.

Under the supervision of Mr. E. H. Hathaway, improvements of a substantial nature have already been made in the Dominican Postal Service. Among these have been the placing of every Dominican postal official under oath for the proper performance of his duties, the handling of supplies at a reduced cost, and a more systematic and responsible system for handling mails, especially of the registered and parcels-post classes. A system has also been put in effect of thorough investigation of complaints, a thing that had not hitherto been regularly and systematically done. The improvement of the postal service is already manifest, and other measures of importance are in the making which will give a still better service in the Dominican Republic and one which it is hoped in time will be as efficient as the means of communication of the Island make possible.

During the past quarter great improvements have been made in the Dominican National Telephone and Telegraph Service. The employment of an efficiency expert has proved to be a measure of great value, and the employment of an expert lineman has introduced efficient methods where inefficiency ruled before. A number of miles of new line have been constructed, including practical replacement of much old line that was out of commission. The old lines have been, and are still, being placed and kept in a condition of good repair; reforms have been made in the personnel including the weeding out of many inefficient persons; and a new tariff has been placed in effect which is more systematic than the old tariff, and includes a reduced-rate night service. These changes have brought about gratifying results, although some of these measures have been taken so recently that their full effect has not yet become evident. As is the case with the Postal Administration, the Administration of Telephones and Telegraphs has been placed on an increased scale of efficiency and further improvement is expected.

The Military Government is not yet prepared to take action upon the burning question of land titles. Col. R. H. Lane, U. S. M. C., is continuing his work on the matter in consultation with Mr. Peynado, but a concrete proposition is not yet ready for submission. Substantial advance has, however, been made and progress is as rapid as circumstances permit.

The work of food control has gone on during the quarter with excellent results. There was some restiveness under the necessary orders at one time, but this has practically disappeared and the office of the food controller is now working smoothly. Through it a sufficient supply of wheat has been obtained for real needs, although the supply is naturally much below what has been normally obtained hitherto. The Military Government for the Dominican Government, as has already been reported, is handling the entire importation

of wheat into the Republic. It is not attempting with its own capital to do this for other food supplies, but it is undertaking the control of their distribution and the fixing of prices. Such complaints as have arisen, aside from those of persons who were willing to exploit their fellow citizens for their own profit, have been made by people who did not understand the objects of the Food Control, and who have laid shortages in certain supplies to that control, when as a matter of fact the suffering would have been much greater if the control had not been exercised. As time goes on, the object of the Food Control is being better understood and complaints are of diminishing frequency. The propaganda for increased planting and for the Republic's independence, as far as practicable, in respect of outside sources of supplies, has continued, and, as mentioned in other parts of this report, has borne fruit.

The reform of the entire Civil Service is now being studied by Mr. Terry of the Porto Rican Civil Service Commission, whose services have been again kindly lent by the Governor of Porto Rico. Mr. Terry already has considerable familiarity with conditions in the Dominican Republic, by reason of his previous service here. Upon the conclusion of his labors at this period, I anticipate that a scientific scheme of civil service will have been presented which, when put in effect, will be a great step forward in efficiency and in the development of proper ideals. Once put in effect by the Military Government, whose acts will doubtless be made legal in any arrangement between the Government of Santo Domingo and the United States before Military Government ceases, it will, while possible, be a difficult matter for a subsequent Dominican Government to revert to the spoils system.

Under the Department of Justice a special legal adviser, learned in Dominican law, has been employed with benefits fully justifying the extra expense. Proposed Executive orders originating in other departments have been reviewed by him, and he has assisted the officer administering the Department of Justice and Public Instruction in preparing orders originating in that Department. The courts are improving, and it is believed that they will continue to improve. The increase of pay of judges has, I believe, resulted in a good effect on the standards of efficiency of the courts; while the support of the Military Government stiffens them in the performance of their duties. At the present moment the Department of Justice is considering an Executive order providing for the release of convicted prisoners under suspended sentences and for the quashing of charges for offenses committed under different social conditions. The law does not now provide for indeterminate or suspended sentences, for pardons, or for the quashing of charges once made. All these things need correction, and they all have a great bearing on the prison situation referred to in another paragraph.

The pressure of work on all officers with the Military forces here is so great that matters of immediate and pressing importance necessarily make slow the investigation of other far-reaching matters of special administration. The Military Government is proceeding on the principle that it is the wise thing to be sure, and prefers reasonable certainty rather than haste. The reform of the marriage laws has not yet been brought to a state where it can be promulgated; but in the same general connection Executive Order No. 168 has recently been issued, permitting the proof of paternity in the case of illegitimate children. The law existing hitherto was derived from the Code Napoléon, which in France has been amended in this particular. It is recognized that the change in the law may make possible cases of blackmail, but against this the welfare of the general body politic must be set, and in my opinion there is no comparison between the two considerations. The order has been a subject of considerable comment, public and private. Two of the newspapers of this city have referred to it in terms of commendation, and I have received letters from Dominicans of prominence expressing great satisfaction that the order was issued. The only thing that has reached me in criticism of the order came in anonymous form, and practically admitted the reasons for the issuance of the order, basing criticism upon the danger to people whose actions in the past laid them liable to its application. As has been previously reported, the percentage of illegitimacy in the Dominican Republic is very high, being estimated by the statistician of the Republic at about 60 per cent. Under the old law it was impossible to reach the father of these illegitimate children by legal means, and thus hundreds of children annually came into the world with no support but the illegitimate mother, a condition of things