United States commission with its officers, the American military gov ernor with his staff, Maj. Gen. Fitzhugh Lee, Maj. Gen. William Ludlow, Maj. Gen. J. Warren Keifer, and their staffs, and nine Cuban generals as his guests. This ceremony was simple in its character, though very impressive, consisting of a formal speech by the Spanish GovernorGeneral, which was replied to by General Wade, the chairman of the United States evacuation commission, who, in concluding his remarks, turned to the military governor and transferred the island of Cuba to him, who, thereupon, entered upon the full exercise of his duty as the military governor of Cuba. Of course, the gathering into his hands of all the duties of his office took time. The desire of a large body of the Cuban army to take part on the 1st of January in the ceremonies of the relinquishment of sovereignty by Spain was reported verbally, by General Ludlow, and he was informed that the danger to life and property was too great, and that the celebration must be postponed to a time when the excitement had cooled off and the passions of the people could be under control. This celebration afterwards took place on the arrival in the city of Gen. Máximo Gomez, Commander in Chief of the Cuban forces, on February 24. General Ludlow was directed to meet General Gomez at the city limits and show him every courtesy possible. The Quinta de los Molinos, the summer residence of the Governor-General, was placed at his disposal, and for several months he, with his staff and escort, occupied the houses and grounds as the guests of this Government. The civil bureaus of the Governor-Generalcy were taken over by officers of the military governor's staff, and held by them until the proper civil officials could be selected and appointed. On this day, January 1, was published the following proclamation: To the people of Cuba : HEADQUARTERS DIVISION OF CUBA, Coming among you as the representative of the President, in furtherance and in continuation of the humane purpose with which my country interfered to put an end to the distressing condition in this island, I deem it proper to say that the object of the present Government is to give protection to the people, security to person and property, to restore confidence, to encourage the people to resume the pursuits of peace, to build up waste plantations, to resume commercial traffic, and to afford full protection in the exercise of all civil and religious rights. To this end, the protection of the United States Government will be directed, and every possible provision made to carry out these objects through the channels of civil administration, although under military control, in the interest and for the benefit of all the people of Cuba, and those possessed of rights and property in the island. The civil and criminal code which prevailed prior to the relinquishment of Spanish sovereignty will remain in force, with such modifications and changes as may from time to time be found necessary in the interest of good government. The people of Cuba, without regard to previous affiliations, are invited and urged to cooperate in these objects by exercise of moderation, conciliation, and good will one toward another, and a hearty accord in our humanitarian purposes will insure kind and beneficent government. The military governor of the island will always be pleased to confer with those who may desire to consult him on matters of public interest. JOHN R. BROOKE, Major-General, Commanding Division of Cuba and Military Governor. In carrying into effect the design of conducting the government through civil channels, it was found to be necessary to reorganize the various civil departments or secretaryships, which was done by reduc ing the number and combining several departments under one head, except the finance department, which was not combined with any other. The order announcing the organization of the civil departments is as follows: HEADQUARTERS DIVISION OF CUBA, In pursuance of the authority vested in him by the President of the United States, and in order to secure a better organization of the civil service in the island of Cuba, the military governor orders that hereafter the civil government shall be administered by four departments, each under the charge of its appropriate secretary, as follows: First. The department of state and government. Second. The department of finance. Third. The department of justice and public instruction. Fourth. The department of agriculture, commerce, industries, and public works. The following gentlemen were appointed as secretaries: HEADQUARTERS DIVISION of Cuba, Habana, January 12, 1899. The military governor of Cuba directs me to announce the following appointments: To be secretary of the department of state and government, Domingo Mendez Capote. To be secretary of the department of finance, Pablo Desvernine. To be secretary of the department of justice and public instruction, José Antonio Gonzáles Lanuza. To be secretary of the department of agriculture, industries, commerce, and public works, Adolfo Saenz Yanez. ADNA R. CHAFFEE, Major-General of Volunteers, Chief of Staff. To these secretaries were transferred, by the officers in charge of them, the various bureaus of the Spanish civil government. The reports of the secretaries will show the condition in which these were found, and the amount of labor required to bring order out of the chaotic condition can be better imagined than described. Finally, the departments were placed in sufficient working order to begin to take over, from the military officers who were temporarily in charge, those duties which pertained to the department of each; this has been gradually going on until the civil departments are now nearly complete in all the provinces, and the affairs of Cuba may be said to be conducted "through the channels of civil administration, although under military control," except the department of customs, which is conducted according to the system prescribed by the Secretary of War. In reaching this stage on the highway of progress toward the estab lishment of government through civil channels, many obstacles have been overcome, the most serious being the very natural distrust of the people, which was born and nurtured under the system of the preceding government, and was particularly the effect of the wars which these people waged in their effort to improve their condition. It is believed that this distrust has given way to confidence in the minds of a majority of the people, and that they are generally beginning to see that the government, as administered by the United States, is for them and for their benefit. It is proper at this time to speak of the condition of the people and the country as it existed at the time of the relinquishment of sovereignty by Spain. A large number of the people were found to be actually starving. Efforts were immediately made to supply food, which the War Department sent, all told, 5,493,500 Cuban rations, in addition to the 1,000,000 rations distributed by Mr. Gould, and these were sent into the country and distributed under the direction of the commanding generals of departments, through such agencies as they established; while in the cities the distribution was generally conducted by an officer of the Army. The result of this action was the immediate lowering of the death rate, the restoration to health of the sick, and a general change for the better was soon apparent. Medicines were also supplied for the sick with most beneficial results. Employment was given to those who could work, and they were paid weekly, so that they might have money to buy food. In fact, no effort was spared to relieve the terrible condition in which so many thousand people were found. It may be well to give a synopsis of a letter received from a distinguished Cuban general, who has recently returned from a trip through the four western provinces, which he made at my request, and who was fully advised as to the conditions when the Spanish authority was withdrawn, viz: A state of desolation, starvation, and anarchy prevailed almost everywhere. In Santa Clara, with the exception of the municipal district of Cienfuegos, agriculture and trade had practically disappeared. For this reason, and on account of the number of reconcentrados, mendicants, and criminals, the most complete political, economic, and social chaos prevailed. The country roads, mail service, public instruction, and local governments were in a state of almost complete abandonment. Matanzas Province was in a worse condition, the city of Matanzas having been the worst sufferer among the cities. The province of Habana presented a similar aspect; and in Pinar del Rio the war had caused its greatest havoc, about 30 per cent of the population having disappeared. Turning to the present conditions, we have in view such a change that the progress seems incredible. A great part of the improvement dates from the month of May, when the muster out of the Cuban army removed a great source of distrust. The extent to which have been carried the cultivation of the fields, the reconstruction of homes, the reestablishment of order and public service, especially in the matter of hygiene in the towns, is something wonderful. As regards agricultural conditions in Santa Clara, it appears that the eight months drought has caused scarcity of food, but not misery. In the tobacco and sugar-cane districts the work of reconstruction is proceeding so rapidly as to promise prosperity in the near future; but in the districts devoted to cattle raising almost nothing has been accomplished. The province of Matanzas is the most backward in the restoration of agriculture, as the condition of the sugar estates and the want of the necessary capital make progress very slow. The province of Habana has progressed the most of all, on account of its proximity to the center of wealth of the island and to the seat of government, which causes a feeling of confidence that attracts capital. The province of Pinar del Rio has changed from a state of hopeless desolation to one of unexpected prosperity. The tobacco lands of the Vuelta Abajo region are being thoroughly exploited, and the rapidity of the crops and the high prices for the leaf affect directly the promotion of commerce and the reconstruction of the towns. As to the economic condition of the municipalities of the western provinces, on the 1st of January it was one of complete bankruptcy. Every possible means of taxation had been used and exhausted, but on account of the corrupt and centralized methods, little benefit had ever been derived therefrom by the communities. It is still impossible for them to fulfill their obligations without assistance from the State, but if the system be modified so as to allow the municipalities greater liberty of action, the greater part will be able to meet their expenses with their own resources. In the province of Puerto Principe I understand that breeding cattle are being introduced. As this province was mainly devoted to cattle raising before the recent war, it may soon be able to resume in a small way. At an early day it became necessary to announce that civil officials, however appointed, would be retained in their positions, and that the military governor would make all such appointments in the future. (See order of February 1.) Upon inquiry as to the internal revenues, it became apparent that the country was even more impoverished than was thought to be the case, and it was then decided to remit all taxes due and remaining unpaid on January 1 (see order of February 10). In the inquiry made to ascertain what internal taxes should be determined upon, there was a project proposed to take a census of the island, in order to give clear and definite information on which to base a tax system, and correspondence was had with the War Department without result. It was therefore necessary to go forward with the best obtainable information, which resulted in the order of March 25, which can only be considered a temporary arrangement, as the condition of property was generally at its lowest valuation, and taxes could only be expected from such sources as had not been destroyed, and it may be said that the restoration of agricultural property and its products is only being commenced at this time. This was an interruption of this inquiry only, which resulted in the order of March 25, by which the laws and the distribution of taxes were changed, the main object being to relieve unnecessary and unbearable burdens at the same time, by giving to the municipalities certain State taxes to recompense them for the loss of those taxes which came from those the least able to pay, and which were, in fact, in the highest degree oppressive and brutal. The matter of financial aid in sanitation, repairs and restoration of public buildings, maintenance of police, aid to municipalities, etc., involved a large expenditure of customs revenues, and it became necessary to establish a system of accountability, which was perfected by the treasurer of the customs revenues, Major Ladd, and as treasurer and auditor, the accounting under this system was continued until the 1st of July, when the system prepared by the War Department was placed in operation. In reorganizing the courts great difficulties were encountered. The time required to inaugurate the system now existing was very great, considering the extent and present population of the island. Great care was taken to avoid the establishment of a system not suited to this people or to the laws to be administered by these courts. It is believed that these objects have been met by the action taken. The existing laws are peculiar, in that a modified law, if great care is not taken, may have such connection with former laws as will, practically, nullify the modification; hence it is necessary to examine the law in all of its past history. It may be well to state here that, at one time, a project for a revision of the laws of Cuba was considered, but as time passed it was found to be better to meet each case of modification, or change, as it arose. This has been found to be the best course. The secretary of finance has undertaken to write a full digest of all the laws of Cuba in all their branches, and when this is completed I believe it would be wise to revise and codify the existing laws and to modify or change them as may be found necessary. The work of revision and codification is one that will require considerable time and the employment of experienced lawyers well acquainted with Spanish laws, and with a knowledge of the many changes which have so frequently been made by royal order or decree, and which are nowhere collected and are only to be found in the Official Gazette, which itself is not now obtainable, except as found in the hands of parties who have retained copies thereof. In the organization of the courts the difficulties attending the selection of the judges are much the same as in the United States. The practice of law is too remunerative to many very able men, and these can not be induced to forego their practice; the field for selection is thus circumscribed. Despite this, it is thought the appointees are of high character and attainments, and it is hoped the courts will, in so far as it depends upon them, change the opinion of the world as to the purity and uprightness of their work. The difficulties which had hitherto existed in the way of obtaining prompt trials and effective justice before the courts, were found to be due more to the methods of procedure and personnel of the courts than to a lack of remedies in the existing laws. The law of procedure, in criminal cases especially, had all the defects of those ancient systems where the rights of men were but little regarded, and it lacked those methods of modern times whereby the humblest citizen, as well as the most powerful, may be protected in the enjoyment of his just rights and personal freedom. Those remedial writs which give assurance to the Anglo-Saxon of the preservation of his personal rights, and of the right to securely hold his property, were found lacking. Through a system of the payment of the municipal judges and the subordinate employees by fees received, particularly in criminal cases, instead of by regular salaries, there were established schemes of collection of additional illegal fees which became a regular part of the system; and so accustomed had these officials become to it that it was impossible to secure speedy transaction of business, or even to obtain justice, without the payment of extra fees demanded, and unjust judg ments were often secured through false or partial record of the escri banos who wrote up the cases which were to be presented to the courts. It will require time to thoroughly educate these officials to the fact that a public office is a public trust and not a place to be used for personal gain. With the changes already made by the abolishment of the "incomunicado" system, the payment of regular salaries to the judges, officials, and employees of the supreme court and of the audiencias and to judges of first instance, and the payment of salaries likewise to municipal judges, clerks, and employees not now salaried, which is now under consideration, this opportunity for corruption will disappear. These, with other changes and reforms now in contemplation, and the reorganization of the personnel of the courts, made or now in progress, will tend to reform past methods and place the judicial system of the island upon a more honest and satisfactory basis. The question of finance, as relates to the restoration of crippled and destroyed agricultural industries, is one which has occupied a great deal of attention on the part of this government. It is evident that assistance in the way of repairing the roads and bridges, as well as to municipalities in their present impoverished conditions, is a necessity, and the most pressing wants in this direction have been met, by granting money from the revenues of the island. There is every reason to hope that the municipal revenues will meet all requirements as soon as agriculture is again on its feet, and there |