File No. 839.00/2104

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

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 July 1, 1918, to September 30, 1918.

There is also enclosed herewith a report by the Commander, Second Provisional Brigade of Marines, Department of Interior and Police, relative to a recent trip of inspection to various places in the Dominican Republic.1 It is requested that this report be returned for the files of the Navy Department when it shall have served its purpose.

Sincerely yours,

Josephus Daniels
[Enclosure]

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

Quiet and good order have continued to prevail generally throughout the quarter. As in the previous quarter, there have been outbreaks of banditry which at one time appeared to be assuming somewhat serious proportions. Prompt measures were taken, however, by the Acting Military Governor; and at the end of the quarter, while there are bandits at large, they are being constantly pursued and given no rest. There is now no occasion to feel any undue concern over their activities. The banditry is confined entirely to the two provinces of Seibo and Macoris. There appears good reason to believe that there has been German support for these outbreaks, and at present one or two Germans are in custody on apparently well-founded grounds [Page 365] of their having been concerned in such support, but their cases have not yet come to trial.

Agricultural activity continues to increase and business conditions are as good as the World War permits. There seems to be ample capital in the country to continue business activities; and, in my opinion, it is only a question of the termination of the war when general business in the Dominican Republic will make strides greatly in advance of anything heretofore known.

The disarming of the population has continued. During the operations against the bandits referred to in the preceding paragraph it has become very plain that some arms are being imported into the country, without evidence, however, that such importations are of any great extent. The Dominican citizen referred to1 has been tried and found guilty by military commission and has been sentenced to imprisonment for ten years. It is hoped that this example may serve to discourage other Dominicans from engaging in projects inimical to the Military Government and to the peace and welfare of their own country.

The customs revenues of the country, which at the last report had shown a disquieting decrease, have made a partial recovery; it seems now quite certain that the calendar year will not show a deficit, although the customs collections will not equal the estimate upon the basis of which the budget for 1918 was laid out. That the falling-off of customs collections will not result in a deficit is due to the fact that the collections of internal revenue very largely exceed the estimate for the year 1918. The combined revenue available for Dominican Government expenses will, it is confidently believed, be sufficient for the year.

During the quarter the proposed scheme of public works was given the approval of the United States Government, and certain of those works were immediately provided for in Executive Order No. 187. These projects will be taken in hand as soon as contracts can be advantageously placed, and the others authorized will be taken up as circumstances make it advisable. It is very difficult at this time to obtain satisfactory contracts on account of the high prevailing prices, and also because of an actual lack of bidders. There is also a labor scarcity in the country, which is a handicap to bidding contractors, as it is to the administration, in the prosecution of work that has been undertaken directly by the Government. An attempt to ameliorate these conditions has been made by establishing a Bureau of Labor under the Department of Interior and Police; this bureau is meeting with some success. This limitation to the amount of public works that can be carried on at one time, due to the labor scarcity, is added to by the difficulty under the present war conditions of securing competent supervising engineers.

On the projects in hand at the begining of the quarter, work has advanced in a satisfactory manner. Probably the most important public work now in progress is the construction of parts of the trunk road connecting the south and the north of the country. Two sections of new road are now in progress of construction, one by administration toward the north from Los Alcarizos (about 16 kilometers from Santo Domingo City) of which 4 kilometers are graded, and the other from La Vega toward the south. The survey of the road is progressing, and it has been staked as far as the 80th kilometer from Santo Domingo City. A definite location is expected to be finished by the end of the year. It is hoped that the entire road can be finished within two years. It will open up large sections of fertile country, and provide an artery of communication that will be invaluable in both a civic and military way. There has been much work on minor roads by the provincial authorities on their own initiative, which is a new development and one from which much may be hoped. Considerable maintenance work has been done on the national roads, which are generally in very fair condition.

The Dominican Claims Commission of 1917 has continued its labors uninterruptedly.2 The President of the commission was absent on a much-needed leave during most of the quarter, but the rest of the commission has sat in committees, one in the north and one in the south of the country. During the [Page 366] quarter, the question of finding a means to satisfy claims favorably acted upon by the commission has been solved by Executive Order No. 193. Upon his return to Santo Domingo from duty in Washington the Military Governor found that the issuance of this order had been a source of great satisfaction. Although claimants would have preferred settlement in cash, they realized as a class the practical impossibility of finding the funds for cash payments, and they have accepted with excellent grace the alternative step that has been taken. The committee of the commission that has been in the north is expected within a few days to finish its labors there and to return to Santo Domingo City, when the commission as a whole will resume its labors, make awards, and the payments of the awards in the method provided by Executive Order No. 193 will proceed.1 A plan by which it is expected to stabilize the value of the 1918 bonds is now being considered which will at the same time increase the interest accruing to certain funds of the Government that are not needed for immediate expenditure. The details have not been fully worked out, but it is expected that the arrangement will be completed within a few days. Looking to this end a proviso was inserted in Executive Order No. 207 which provides for a survey of the Republic, permitting the fund set aside for that purpose to be invested in the lower denominations of the 1918 bonds.

Gratifying improvement in public instruction continued during the quarter. In addition to the matters noted in the work of preparing programs, rectifying courses, preparing textbooks and general organization has been carried on steadily throughout the summer. The new code of education is working smoothly and satisfactorily. The compulsory attendance law enables the authorities to keep existing schools full to capacity. During the vacation summer schools were held, especially for rural teachers, at which attendance was made compulsory. This caused some dissatisfaction, which was natural, but it is believed that much good was accomplished and a foundation made for future work. Excellent as the work so far accomplished is, however, the school system still remains far behind the necessities of the Republic. It is estimated that there are nearly 200,000 children of school age in the Republic, of whom the schools were able last year to accommodate about 45,000. While the advance in matters of public instruction has been very great, the needs still existing are great and pressing. It is with much regret that the Military Governor has been forced to withhold approval of recommendations for additional educational funds in the budget of the coming year now in course of preparation, owing to the anticipated falling-off in revenue which, at the present time, appears likely to leave an available income for 1919 less than the estimated income for the current year. Unless conditions materially change, rigid economy will have to be exercised in laying out the budget for 1919, and little or no increase of expenditure in any direction will be practicable.

The advance in agricultural matter continues. The number of districts for which traveling demonstrators will be needed has been fixed at about 40. It has not been possible to get all this number yet, there being at this time 26, but they are being secured from time to time as competent Spanish-speaking men can be obtained. A formal opening of the Agricultural Experiment Station near this city was recently held and excited great interest. All through the day visitors from this city and other nearby places were about the station, where they saw what had already been accomplished and were given information by the employees of the Agricultural Department, who were present for the purpose, of the scope of the work undertaken and what was hoped to be accomplished in the future. One interesting feature in connection with the opening was the visit of 200 horsemen in a body from one of the neighboring communes, where an agricultural society has been formed and where a lively interest in agricultural matters has been developed through the instrumentality of the demonstrator assigned to that locality. The station has its own water supply, a well with windmill. Besides the dwelling house there is a barn, a dipping tank for cattle, a plant house, and the only silo in the country. The Animal Industry Bureau is, unfortunately, not yet fully established owing to the withdrawal by Mr. S. Durham of his acceptance of appointment as its head. Some work, however, is going on in that direction, and as soon as a suitable head for the bureau can be found more progress will be made. A study of the conservation of the forests of the Republic has been instituted [Page 367] with a view to the issuance of an Executive order that, giving due consideration to the conditions here, will prevent wasteful methods. The forests as a whole have scarcely been touched, and it is the aim to put an adequate forestry law into effect to prevent any serious deforestation.

The new immigration law is not yet ready for issue, being still under study by different authorities with a view to its perfection. In the meantime an accurate card system containing complete information concerning every foreigner entering the country is being maintained both at the ports of entry and the office of the Department of Agriculture and Immigration. Proper records of immigrants have not hitherto been kept; this reform is a great advance and one that could be undertaken without any change in the law.

There is little to add regarding the prospects for minerals. Development has been going on in the vicinity of Azua of petroleum deposits in that region, and the latest reports indicate that the deposits there may be worked successfully. I have not seen the report of the expert from the United States Geological Survey who was recently in this country, but I understand that it is of a somewhat disappointing nature as regards the particular object for which he came—the discovery or development of minerals particularly applicable to war use. Prospecting is going on to a greater or less extent, and it seems probable that workable deposits of ores will be discovered and be developed with improved means of communication through the country.

The shipping situation remains about the same as at the time of the last report. The use of Navy transports (one for Santo Domingo) has somewhat eased the situation in respect of the cacao and tobacco crops, and the less important native products of hides and honey. The Kittery has already taken about 2,500 tons of native products to the United States and it is expected that she will take from 800 to 1,000 tons on each trip in future. In comparison with the total amount of exports in the country, estimated at 160,000 tons for the year, this relief may seem to be very small; but it is very real because the exports that the Kittery is taking are those that are grown by the Dominican people themselves, many in a small way. A large proportion of the total exports is sugar, the growth and sale of which brings more benefit to American capitalists than to the Dominican people.

Such beginnings as are possible are being made in the public health service. The unfortunate falling-off in revenue which, it is feared, will continue through the coming calendar year, has retarded the work of establishing the public health service, but the subject is being studied and such an organization as is possible is gradually being put into effect. With an improved financial condition of the Republic, more will be done, but the ground work is being laid now. Lieutenant Commander Reynolds Hay den, Medical Corps, United States Navy, a member of my staff, has taken over the direction of this work and has now so familiarized himself with the conditions that he is prepared to go ahead with it as fast as circumstances permit. Before relieving his predecessor he took an extended journey through the country which will be of very great advantage to him in carrying on his work.

The Dominican Central Railway has continued under the successful management of Mr. Collins, and the bridge over the Bajabonico River, rearly completed at the writing of the last report, is now entirely finished and traffic is going over it. The financial condition of the road is excellent. During Mr. Collins’ incumbency he has carried on the work of repairs and betterments; has amassed a capital of $75,000 for emergency needs which is drawing interest on deposit; and in addition to that has turned over a surplus to the Dominican Treasury of about $26,000 as to the end of September 1918. This is a highly satisfactory performance.

The present strength of the Guardia Nacional Dominicana is:

United States Marine Corps 25
Officers 30
Enlisted men 1,095
Civilians (clerks) 11
1,161

The rifles mentioned above have now been received together with the necessary ammunition. A part of the Guardia has been very actively engaged during the last quarter in the suppression of banditry in the provinces of Seibo [Page 368] and Macoris, where they have done excellent work. While I was in Washington I wrote, on August 2, a letter requesting the approval of the President of the United States to the suggested scheme of pay for the Guardia. This was presented to the President by the Secretary of the Navy; but on the very day that I was leaving Washington I was informed by the Secretary that the President desired some additional information, which I hastened to get. I had hoped that in the intervening six weeks I would have received Executive approval of my letter. It has not, however, arrived, nor has a radiogram of inquiry sent on September 19 elicited any response. The matter is one of real urgency, as many non-commissioned officers of the Marine Corps are serving and have been serving for over a year with the Guardia under circumstances requiring them to meet from their private purse expenses for which the additional pay recommended is intended to provide. I trust that if this matter has not been attended to when this report is received, it may have immediate and favorable consideration.

Improvements in postal matters have continued throughout the quarter, the reforms already instituted showing better and better results. New mail routes have been established, the time taken for transmission of mails has been reduced, and there is a very gratifying increase in the efficiency of the entire service.

An analogous improvement has been taking place in the Dominican National Telephone and Telegraph Service. Increased receipts are resulting not only from the new tariff but also from the greatly increased reliability of service, which is now being generally praised throughout the Republic; they were more than 83 per cent greater for the quarter than for the corresponding period in 1917. During the quarter physical connection with the Haitian lines was made and a tariff arranged for service between the two countries, which was inaugurated September 15. Two new steel radio towers with wooden topmasts have been erected, increasing the height and length of the aerial. This, with the new equipment for the radio station which has been ordered, is expected to increase the power materially.

The proposition is being seriously considered of placing under one bureau the postal and the telephone and telegraph services. This would result in great economy from the housing of both services together in the different places that both services reach, and in a decrease in the number of employees in many instances. It is believed that such a consolidation will add to efficient administration in other ways. The step has not yet actually been taken, but from preliminary study I now incline to believe that it will be deemed advisable to effect the consolidation in the near future.

The question of land titles remains in much the same condition as reported, as the studies on the subject have not been completed. The attention that Mr. Peynado can give to this matter is limited to time which he is able to devote to it from the demands of a very large practice. He is a man of such recognized ability, however, that I feel that the delay is worth while in order to have his very valuable advice. In Executive Order No. 207, already referred to, the sum of $300,000 has been set aside for the purpose of making an accurate survey of the Dominican Republic. No such survey exists, and it is evident that an accurate survey lies at the foundation of all delimitations of land. The survey contemplated is of course not one which will, except incidentally, be of use to fix property limits, further than giving accurate points of departure to which cadastral surveys may be referred. With the issuance of this order, however, a long step may be considered to have been taken toward a final and satisfactory solution of the question of land titles.

Much satisfaction is felt because of the smooth manner in which matters under the Food Control are now running. The food situation in general is all that could be expected under food conditions existing throughout the world, and there is no noteworthy shortage. The merchants no longer show any marked tendency to oppose the control; they are. on the contrary, in most instances lending assistance to it, recognizing the fairness with which it is conducted toward business interests, as well as the fact that through it imported foods are being obtained that otherwise could only be secured with great difficulty, if at all, and that the distribution of food is vastly better than could possibly be effected without some measure of control.

Mr. Terry has remained in Santo Domingo throughout the quarter engaged in his study of the reform of the Civil Service, and has submitted a set of rules for Civil Service which has been commented upon by the officers administering the several departments and is now being studied by the Military Governor [Page 369] himself prior to being put into effect. Mr. Terry will be obliged to return to Porto Rico within a few days; but it is hoped that he will, within a short time, consent to sever his connection with the service in Porto Rico and devote his whole attention to Civil Service in this Republic. It is doubtful if the Civil Service rules will be promulgated until Mr. Terry is in a position to direct the work of the Civil Service Commission which it is in contemplation to establish.

Among matters under the cognizance of the Department of Justice and Public Instruction that pertain especially to legal affairs, several Executive orders recommended by that Department have been issued, among which were Executive Orders Nos. 198 and 199 of August 27, 1918, regulating the practice of the profession of law. An unwritten rule of ethics has prevailed here that one lawyer would not accept a case against another, which resulted in practical civil immunity of all lawyers. One part of Executive Order No. 198 will, it is hoped, remedy this vicious rule. Executive Order No. 201 confers upon women the right to practice law. Executive Order No. 202 defines perjury and provides penalties; formerly there was no penalty for perjury committed outside of actual court proceedings.

During, the quarter, the board on prisons has completed its work, but at the end of the quarter its report was not in finished shape ready for submission. Any far-reaching reform in prison conditions will involve a large expenditure, and one that the condition of the Treasury is probably not now prepared to meet. During the quarter, a selection was made of a site for the proposed leprosarium. No Executive order has been issued providing for the establishment of this leprosarium for the reason that a prominent Dominican family has promised to donate the site, and it has not been deemed expedient to do anything publicly that might embarrass this family in purchasing at a reasonable figure the land included in the site selected.

Some matters of interest worthy of mention are the following:

On July 1 the new law of licenses (patentes) went into effect. It was published in Executive Order No. 158 of May 4, 1918. The effect of the law has been, without any notable changes in rates, to increase the collections from about $150,000 per annum to a sum of about $475,000 (estimated) for the entire year. The funds obtained from this law are devoted entirely to educational purposes, and it will be seen what a very great reform was instituted by the Executive order.

On October 1, the new internal revenue law became effective. It combined in one a number of separate laws, and it is expected that under the new law there will be increased collections due rather to the full collection of taxes than to any change in rates. During the first half of 1918 internal revenue collections were $805,383.18, and it is estimated that the total collections for the year will possibly be $1,500,000; in 1915 they amounted to $559,366.87, in 1916 to $674,163.10, and in 1917 to $1,234,177.32. During 1917 the entire Internal Revenue Department was reorganized; this, together with the placing of collections in the hands of an American which was done in the middle of 1916, has resulted in the great increase of internal revenue here noted.

In accordance with an old law, a census has been ordered to be taken in each commune by the Department of Interior and Police. This will not be a thorough census, but it is the best that can be done at the present time, lacking the funds for a census taken under national supervision.

Under the same Department a Bureau of Labor Employment has begun to make its influence felt, and I believe that it will, as experience is gained, prove a measure of great value to the country, to employers of laborers and to laborers themselves.

From time to time, as the office of jefe comunal has become vacant, the experiment has been tried of leaving the office unfilled; the results have been so satisfactory that the entire suppression of the office is believed to be a measure tending to the public good.

Troops of the brigade, assisted by the Guardia Nacional Dominicana, have engaged in field operations in the provinces of Seibo and Macoris during the quarter. Casualties among the Marines number five; one hospital corpsman was drowned crossing a river. The Guardia had no casualties. As previously noted, the bandits have not been entirely dispersed, but they are being kept on the move. As a measure in aid of the suppression of the bandits, inhabitants of certain outlying parts of these two provinces were advised to concentrate [Page 370] at the nearest large place, bringing a month’s supply of provisions with them. The concentration was not mandatory, but the advice was very generally followed, the work being ably assisted by the native officials. It is a general opinion among the officers who have been engaged in these field operations that the natives in large measure will prefer to remain where they voluntarily concentrated rather than return to their homes, even when entire quiet has been established. One result of the concentration has been that one or more of the sugar estates, which ordinarily have great trouble in getting labor supply, are finding it entirely possible to provide their necessary labor without having to import laborers, as has been the annual custom hitherto.

During the quarter, Lieutenant Commander Baughman, who is administering the two Departments of Fomento y Comunicaciones, and Agricultura e Inmigración, accompanied by Mr. Collett, the Director of Public Works, and by Mr. Acevedo, a Dominican engineer who is the technical adviser of the Department of Fomento y Comunicaciones, made an official journey through the interior, touching at a number of places where the inhabitants told him no Government officials had ever before betrayed any interest in their welfare by a personal inspection. The journey was largely undertaken with a view to public works in progress or in contemplation; but the Department of Fomento y Comunicaciones is charged with the administration of postal affairs and of telephones and telegraph, and to both of these Lieutenant Commander Baughman gave attention during the journey. Another important purpose of his tour was the awakening of interest in agriculture, which is also under his cognizance. I believe from the reports of the journey that it has been a measure of the greatest good, assuring the people of the Dominican Republic of the aims of the Military Government and of its interest in their welfare.

Within a very few days Brigadier General Pendleton, who will shortly retire from the command of the brigade, accompanied by Brigadier General Fuller, the officer ordered to relieve him, will make a somewhat similar visit to the northern part of the country. Quite apart from the value of this visit as one of military inspection, I consider that it will have a great and good effect from the contact of these officers with the Dominican people, and their expression to Dominicans of the aims of the Military Government.

At about the same time it is my intention to send Civil Engineer Whitman, of my staff, accompanied by Mr. Acevedo, on a visit to Barahona and Azua provinces in connection with public works of interest there. As was the case during the journey of Lieutenant Commander Baughman, these gentlemen will also have as a second and no less important duty the manifestation to the people of the interest of the Military Government in their welfare and prosperity.

At about the middle of October Commander Hagner, Pay Corps, United States Navy, will leave for Washington on duty, and will visit Sanchez, La Vega, Moca, Santiago and Puerto Plata en route, where it will be arranged that he can meet officials and business men and give them first-hand information regarding the matters that have been under his especial cognizance as the administrator of the Department of Hacienda y Comercio, and the director of Food Control. He is also thoroughly in touch with the general administration of affairs, and will still further interpret the Military Government to the Dominican people.

At a later period, when his services can be spared, it is my further intention to have Colonel Lane, United States Marine Corps, who is administering the Department of Justice and Public Instruction, make an extended journey through the country, accompanied by the Superintendent of Education. Colonel Lane’s visit will have an excellent effect, and not only on educational matters; for he will also interest himself in matters pertaining to the judicial affairs of the country, and like every other representative of the Military Government coming from the Capital, he will carry to the people a new expression of the objects for which the Military Government is working.

I regard these visits as measures of great importance. It has not hitherto been practicable to arrange for such journeys, but with the increasing tranquillity of the country and the general settling down to a routine of peace and good order, it now becomes possible to spare officers from the seat of the Government. My own visit through the northern part of the country on my return from Haiti in March convinced me of the great value of such personal contact, and it is my intention in the future to have officers go from the Capital from time to time carrying with them direct to the people in [Page 371] outlying places the ideals of the United States in assisting the Dominican people to live under improved conditions.

The relations of the Military Government with the American Minister and his staff and with the American treaty officials here have continued most cordial, and it is a pleasure to acknowledge the fine spirit of cooperation that has prevailed.

H. S. Knapp
  1. Not printed.
  2. Report of July 1, 1918, printed ante, p. 359.
  3. See “Financial Affairs: Proposal for a bond issue to pay claims adjudicated by the Claims Commission,” post, p. 371.
  4. See enclosure to undated letter from the Secretary of the Navy, received Aug. 13, 1918, post, p. 377.