This bureau must necessarily do a very considerable amount of work itself each year. There is a large amount of work on which it is very difficult to get contractors to figure at all, for the following reasons: First, because the job may be so small that the contractors do not care to bother with it; second, it may be an intricate repair job, where it is impossible to foresee the amount of work that may be entailed. There is an additional reason, namely, what may be termed emergency cases, where the nature of the work requires immediate attention, and there is no time to prepare plans and specifications, advertise for bids, and prepare the regular papers.

It is possible, if not quite probable, that efficient contractors may be so busy that they can not handle additional work, in which event the government would be in a position to have to accept bids from persons of doubtful responsibility and ability, or do the work itself.

As previously mentioned herein, the complexion of our force of skilled workmen has completely changed during the past year. That is to say, 97 per cent of the skilled laborers in a total of 150 skilled and unskilled employed last year were Chinese. To-day, of 343 skilled and unskilled laborers (divided about equally), all are native Filipinos. Two Chinese and 12 Japanese skilled workmen complete the quota. This difference is due in part, however, to the fact that for some time past most of our work has been of a rough character, such as framing, boarding, fencing, stalls, etc., where it is advantageous and economical to employ native labor; but in all work requiring more mechanical ability, either Chinese or Japanese must be employed. It is possible, in time, that through the agency of the trade schools, conducted by the bureau of education, some better artisans may be developed.

It seems advisable, in view of the importance of the work which this bureau has in charge, that the Commission repeal the original act creating the bureau and acts amendatory thereof, and substitute therefor a new act which will meet conditions which experience has demonstrated require certain rules of procedure. This was done in the case of the bureau of engineering. A draft of such an act, with explanation in detail, will be submitted to the Commission shortly for favorable consideration. There should be some definite rule of procedure for the advertisement of contracts and for modification thereof in the case of emergency work. As we shall be doing more and more work in the provinces and districts remote from Manila, provision should be made for the purchase of material directly by the bureau instead of through the insular purchasing agent.

As stated in section on the personnel, there should be wider latitude in the employment of assistants, whose salaries are payable from appropriation for construction instead of from the regular salaries and wages appropriations. Provincial transportation should be chargeable against appropriations for provincial work.

FINANCIAL.

Appropriations to this bureau for the maintenance, repair, and construction of public buildings were originally made in the form of a lump sum covering a specified list of improvements for all, bureaus. The amounts were not itemized. This method of appropriation was later modified so as to provide for each bureau a specific sum for improvements, detailed in description, but not as to amounts. Under

both these systems credits could be transferred-in the first instance. from one bureau to another, and in the second from one item of improvement in any single bureau to another item when necessary, provided the total sum appropriated under that head was not exceeded. The present appropriations are conditioned on an absolute limitation of cost of each item mentioned to the cost thereof. If there should be a balance on any item it is not available for other work for that bureau, but must be returned to the treasury.

The bureau of architecture, therefore, in executing the work for the current half year, is obliged to keep within the sum allowed for each detailed item mentioned in the estimate for appropriation. Should it be found impossible to execute any of these improvements without exceeding the appropriation therefor, it would become necessary either to stop the work or ask for an increased appropriation, notwithstanding the fact that the increase might be due solely to the variations in price of material and labor. It is often the case, too, that materials purchased from the insular purchasing agent vary in price over 50 per cent within the same month. It would be impossible to estimate the cost of any one building so accurately that the amounts estimated for each item, such as labor, lumber, stone, hardware, iron, etc., would in every instance cover the amount actually expended. It is usually the case when the work is actually done that some items are higher and some lower than was estimated, but taken all together they do not exceed the total sum allowed.

In the expenditure of the current appropriations the bureau is, to an extent, in very much the same position so far as the expenditures for any one bureau is concerned as it would be in the case cited above, if each item of material and labor entering into a building were limited in cost.

It is believed that if moneys are appropriated as heretofore that the intent of the Commission as to their careful disbursement can be complied with, notwithstanding the absence of restrictions contained in the current appropriations.

A statement showing the amount of mony expended under each subhead of the appropriation bill is as follows:

Appropriation and disbursements, fiscal year ending August 31, 1903.

Appropriation and disbursements, fiscal year ending August 31, 1903—Continued.

a $1,395.89, loss account changes rate.

bThis balance is covered by requisition from States.

e Turned into general fund, loss account changes rate.

d Balance will be practically wiped out in settlement contract of Albert Bryan.

e Due Campbell, $9,663.53.

f Due H. D. Woolfe, $265.50.

Appropriation and disbursements, fiscal year ending August 31, 1903—Continued.

The debit amounts shown have been covered by appropriation Acts 807 and 831.

The balance stated above covers property for June, 1903, amounting to $19, 650. 83, which has not yet been charged against appropriation in the auditor's office, which would make balance due bureau under maintenance of public buildings and public works, 1903...... $69,916.92 In treasury to credit of disbursing officer... Due appropriation from contingent expenses, 1904..

Total.....

Public works and maintenance of public buildings.

14,017. 18 58.50

83, 992. 60

Loss to appropriations account changes in rate on money and property
Paid insular purchasing agent for property.

$59, 914.34 127,566, 94 5,000.00 3,675.29

41,076.61

237, 233.18

Maintenance of public buildings and public works.

Total.

Respectfully submitted.

EDGAR K. BOURNE,

Chief of Bureau.

EXHIBIT C.

SECOND ANNUAL REPORT OF THE PUBLIC PRINTER, FOR THE

Hon. JAMES F. SMITH,

FISCAL YEAR 1903.

BUREAU OF PUBLIC PRINTING,

OFFICE OF THE PUBLIC PRINTER,
Manila, P. I., September 15, 1903.

Secretary of Public Instruction.

SIR: In compliance with the provisions of Act 296, and your letter of August 21, 1903, I have the honor to present the following report, covering the period from July 1, 1902, to June 30, 1903, inclusive, with certain information to date of report:

Table No. 1 shows the product of the plant compared with the cost of operation. Value of the total product, $221,960.10; total cost of operation, $171,572.80; excess of product over cost of operation, $50,387.30; exclusive of the wear and tear on equipment and an allowance for rent. Allowing 10 per cent on the value of the equipment for wear and tear ($14,150.66) and $12,000 for rent, there remains $24,236.64 excess of product over all.

The scale of prices from which the printing and binding was computed was based on Ramaley's scale, and is less than that paid for printing and binding by the civil and military governments of the Philippine Islands to commercial houses previous to September 15, 1901. Still, during this period the bureau has maintained a school of instruction in all of the trade specialties.

Table No. 2 is a statement of appropriations and disbursements and the balances on hand in the several subdivisions of the appropriation In this table the losses and gains by reason of changes in ratios have been disregarded.

Table No. 3 is a statement of miscellaneous receipts of the bureau for other than printing and binding.

Table No. 4 is a separate statement of appropriations for salaries and wages, the amount expended, and the balances on hand exclusive of losses by the changes in ratios.

Table No. 5 is an itemized statement of disbursements by J. G. Jester, United States disbursing officer, Insular Bureau, Washington, D. C., with a recapitulation showing resources and disbursements. In this connection attention is called to the column showing dates orders were placed, being separated into the fiscal years of 1902 and 1903.

Table No. 6 is a statement of sundry disbursements made by H. A. Lampman, disbursing officer, at Manila, P. I.

Table No. 7 is a statement of purchases from the insular purchasing agent, showing charges by vouchers and ratio of reduction in making settlement in the auditor's office. For itemization of articles included in these vouchers see Table No. 8.