EXHIBIT 2. REPORT OF THE COURT OF LAND REGISTRATION OF THE PHILIPPINE ISLANDS FOR THE PERIOD FEBRUARY 1 TO SEPTEMBER 1, 1903. MANILA, P. I., September 14, 1903. The Hon. SECRETARY OF FINANCE AND JUSTICE, Manila, P. I. SIR: In accordance with your instructions of August 21, 1903, I have the honor to submit herewith the following report of work of this court for the period February 1, 1903, the date of organization, to September 1, 1903: 66 The land registration act" of the Philippine Islands became effective February 1, 1903, and has now been in operation some seven months. The court was organized with Simplicio del Rosario, judge; D. R. Williams, associate judge; and J. R. Wilson, clerk. The court, with but few precedents to guide it, has prepared and published the various blanks having to do with its procedure; has designed and issued the certificates of title evidencing registered ownership of land; and has prepared and had printed the various registration, entry, and index books having to do with the work of the court and the records of registers of deeds under the provisions of the new law. The rules and regulations of the court have been printed in both Spanish and English, and copies of same have been mailed to all judges and clerks of courts of first instance, all attorneys in the islands, and a supply has been furnished to each register of deeds throughout the Archipelago for distribution. The court has in contemplation the issue of a pamphlet for general distribution throughout the islands, giving detailed information both as to the benefits to accrue from the act and the procedure to be pursued thereunder. It has been thought advisable, however, to delay this publication until all questions as to proposed amendments to the act are disposed of, and until legislation is had covering the classes of claims referred to in sections 13, 14, and 15 of act of Congress of July 1, 1902, affecting lands in the Philippine Islands. Up to the 1st of September, 1903, 144 applications for registration were filed as follows: Manila, 108; Benguet, 1; Batangas, 1; Iloilo, 4; Jolo, 1; Pagasinan, 3; Sorsogon, 1; Albay, 4; Bulacan, 1; Cagayan, 1; Ilocos Norte, 5; Leyte, 2; Pampanga, 1; Tarlac, 1; Ambos Camarines, 1; Bataan, 1; Cavite, 6; Isabela de Luzon, 1; Mindanao, 1; Rizal, 1. The value of the property included in the applications thus far made to the court amounts to $1,314,963.20, U. S. currency, exclusive of lands set apart as civil or military reservations, which compares very favorably with results achieved in like time in other States and countries which have adopted the Torrens system of registration. Fifty applications, all originating in the city of Manila, have been heard by the court and decrees entered; one application has been dismissed and four withdrawn by the applicants, while 11 are pending decree. An appeal has been taken in one instance only, certificates of title having been issued in the other cases. Adverse claims have been filed in 18 cases. As no examiners of titles have yet been appointed for districts outside of Manila, no action has been taken on the applications received from the provinces. Under certification from the commanding general of the division of the Philippines received through the civil governor, pursuant to Act No. 627, notices have been published and served by this court on all occupants of the military reservations of Corregidor, Mariveles, Los Baños, Punta Calumpan, Tacloban, Calbayog, Lucena, Nueva Caceres, Iloilo, Angeles, and Pasay. Notices are ready for service as soon as officers are designated to perform this work upon the reservations of Zamboanga, Ormoc, Daraga, Salomague and San Fernando. Certifications of 36 civil reservations have been received from the civil governors, 34 of same being lands reserved for light-house purposes, one for the island of Bataan and one for Baguio, province of Benguet. Notice by publication has already been made, but as yet posting and personal service of notices upon the said reservations has not been made. Applications are beginning to be received by the court as a result of these certifications, and as all persons claiming to own lands within the limits of such reservations are required to file their claims within six months from date of notice it is expected that the court will shortly receive a large number of applications from this source. Every effort has been made to bring to the attention and knowledge of the public the advantages to be derived from registering their lands in this court. Articles explaining the operation of the act have been published in the daily press, both English and Spanish, as also in the Official Gazette which goes to every municipality in the islands. Blank forms of application have been mailed to all provincial treasurers with a full letter of instructions. A circular letter has been sent to all the banks in the city, calling attention to the greater security for mortage loans offered by registered lands, and asking their cooperation in impressing this fact upon prospective borrowers, either by expressing their purpose not to loan money upon unregistered lands, or to loan it at a lower rate of interest upon lands which are registered. There is a widespread demand for money throughout the islands, there being a general lack of capital among the people to develop and improve their lands. Most of the banks now established do not make mortgage loans, or, if they do, only in exceptional cases. If mortgage banks could be established throughout the islands, either by the Government or through private enterprise, and it was made a condition of their loans that the lands offered as security must be registered by this court, there would, undoubtedly, be a very large influx of applications. While the registration of titles under the new act is left optional with landowners, the old system of registration being continued as to lands not brought under its provisions, it is hoped that the advantages offered by the new system over the present unsatisfactory condition of affairs will early recommend themselves to property owners. In the meantime, however, it furnishes an adequate measure of relief to all persons buying lands, as it is within their power to insist, as a condition of purchase, that the lands be first registered under "the land registration act." Among the causes that have combined to retard the general acceptance by all classes of the new system of registration may be noted the following: First. A lack of definite knowledge of the purposes sought to be accomplished by the act and of the procedure necessary to bring themselves under its provisions. Added to this, of course, is the general disposition, particularly noticeable in this climate, to postpone definite action in every matter, even where the advantages to be derived are conceded, when such action is not imperative. Second. The present lack of movement in real estate. The great majority of landholders in the islands, while they may not have a good record title to the lands occupied, have what might be termed a good title of possession, that is, their right to the land is conceded by their neighbors, and so long as no attempt is made to negotiate same the deficiencies in their titles cause them no concern. With the influx of capital, however, and the incentives which will follow to mortgage or sell their property, the fact that their titles are not negotiable will become patent, and they will be obliged to resort to the court of land registration to perfect them. Third. The expense of registration. In addition to the usual fees connected with the application, which practice has shown to average about $20 U. S. currency, the law requires one-tenth of 1 per cent of the valuation of the property for examination of title and one-tenth of 1 per cent for the " assurance fund," payable upon issuance of the certificate. The applicant, however, has other expenses. If he anticipates a contest or lacks confidence in himself, he employs an attorney to attend to the proceedings; furthermore, he must secure a survey of his property and file a complete plan of same with his application. So much looseness has existed heretofore in the matter of plans that new surveys are almost invariably necessary. Owing to the absolute character given to a certificate of title, the court has been obliged to establish stringent rules in the matter of survey and description of properties sought to be registered. By reason of the few competent surveyors now available and the demand for their services, the cost of survey is very considerable, frequently far more than it should be, and in many cases more than the people can afford. This fact, coupled with the scarcity of ready money, deters a great many from registering their lands. Fourth. The lack of registers of deeds and examiners of titles in the provinces. At the present time provincial treasurers act as registers of deeds. Owing to their other numerous and important duties, such treasurers are unable to give the matter of land registration the attention indispensable to bring correct knowledge of the new system to the attention of the people, nor are they able to properly familiarize themselves with the provisions of the mortgage law and other acts having to do with the authentication and registration of documents. Manila is a long way off to most of the people, and until the system is brought directly home to them and becomes a tangible thing, satisfactory results in this regard can hardly be expected. Most of the applications thus far received from the provinces are faulty in one or more particulars owing to the lack of some person to properly supervise and direct their preparation. This difficulty will be overcome, however, by the appointment of registers of deeds and examiners of titles throughout the islands, a part of whose duty it will be to extend the system by explaining to the people the method of bringing themselves within its provisions. The equitable adjustment of the various problems affecting land titles in the Philippines undoubtedly offers one of the most difficult pieces of work now before the authorities. The multiplicity of "royal decrees" under which titles have been acquired, the lack of any proper system of registration, the loss and destruction of the greater portion of the land records, the indifference and lack of initiative of the people, the fact that the public domain has never been surveyed and has been occupied indiscriminately by generations of people-all combine to make the situation not only immensely complicated but different from anything encountered elsewhere. The land registration act, by affording an avenue through which an absolute and guaranteed title can be evolved from the general uncertainty now prevailing, offers to capital that security which must form the basis for any considerable investments. From the results thus far accomplished, it can safely be said that the court of land registration has demonstrated its usefulness and that a wide field for further good lies before it. Very respectfully, J. R. WILSON, EXHIBIT 3. REPORT OF THE DEPARTMENT OF JUSTICE OF THE PHILIPPINE ISLANDS. OFFICE OF THE ATTORNEY-GENERAL, The SECRETARY OF FINANCE AND JUSTICE, Manila, P. I. SIR: In compliance with the direction contained in your communication of August 21, 1903, I have the honor to submit the following report covering the operations of this bureau for the year ending August 31, 1903: OFFICE OF THE ATTORNEY-GENERAL. Written opinions rendered by the attorney-general to the chief executive, Cases in the supreme court disposed of by brief and argument.. 453 193 84 Suits against the United States, or officers of the Army or Navy, receiving attention Petitions for pardon passed upon.. Permanent appointments of employees in the bureau of justice.. ཱབ 3 621 121 30 Official communications written, or receiving the attention of the office and disposed of, other than opinions, cases, pardons, and appointments..... 3, 445 In addition to the above a large number of convictions have been secured in the provinces by the attorney-general, the supervisor and deputy supervisor of fiscals, and the assistant attorneys of the office. The opinions of the office have included the construction of acts of Congress, proclamations of the President, instructions of the Secretary of War, military orders, the laws of war and military occupation, acts of the Philippine Commission, executive orders, admiralty and maritime law, Spanish royal decrees, orders, grants and concessions, and customs, civil service, and other regulations relating to a great variety of subjects, including amnesty, arms and ammunition, arrests, attorneys at law, aliens, banks, bonds, civil and criminal procedure, confiscations, claims for and against the United States and Philippine governments, contracts, constabulary, copyrights, customs duties, costs, cemeteries, churches, corporations, citizenship, crimes, cockpits, court officers, condemnation proceedings, Christian Science, coins and coinage, collisions, domestic relations, defalcations, deeds, death penalties, delinquent taxes, druggists, dramatic performances, disbursing officers, estates of decedents, elections, electors, electricity, exclusion act, extradition, explosives, franchises, fees, fiscals, fines, forestry, gambling, habeas corpus, health, holidays, insurgent funds, illegitimate. children, insane persons, justices of the peace, leases, leaves of absence, |