nor shall such proceedings give any right to a claim for damages which may have been thus caused to merchandise or vessel..

All expenses incurred by the customs service for the carriage, storage, and other necessary operations in connection with the merchandise shall be charged against the merchandise.

SEC. 398. Importation by sea begins with the moment the importing vessel enters the jurisdictional waters of a port of entry with intention to unlade therein, and is not completed until the duties due upon the merchandise have been paid or secured to be paid and the legal permit for withdrawal shall have been granted, or, in case said merchandise is free of duty, until it has legally left the jurisdiction of the customs.

SEC. 399. Where goods and wares consigned to a port in the Philippine Archipelago, are landed in error at a different port in the Philippine Archipelago, and the Collector at the original port of landing of such merchandise, etc., on investigation is convinced by the manifest and other evidence of such error, he may permit the re-shipment of said merchandise, etc., to its proper destination under transportation bond and regulations governing same. Said bond may be executed by designated agent or owner of the merchandise, or agent of the vessel landing the merchandise, etc., in error. The merchandise shall be transhipped on another vessel of the same line, unless in the judgment of the Collector this will cause unnecessary delay, in which case he may permit the transhipment by a vessel of any regular line.

The Collector at the final port of destination, on receiving such merchandise, etc., will officially notify the Collector at the original port of landing where transportation bond was executed, which official notice shall be the authority for the cancelling of the "transportation bond."

Merchandise, etc., thus transported in bond must be examined at the original port of landing, in order to establish that the landing was in error, and not with intent to defraud. The Collector at the first port of landing will inform the Collector of the port of destination of the result of the examination. The Collector at the port of destination of such merchandise, etc., transported in bond, shall require same to be regularly entered for consumption, and collect duties on same after appraisal.

All merchandise, etc., thus transported in bond, shall be corded and sealed by the Collector at the original port of entry at the expense of the consignor; and all vessels acting as common carriers for the transportation of such merchandise in sealed packages in bond shall be held responsible for their safe delivery at the port of destination, and shall have same noted on the vessel's manifest as "merchandise in bond."

SEC. 400. Articles of easy identification which it may be desired to export from the Philippine Archipelago for the purpose of being repaired, may be, upon application to the Collector of Customs, identified at the Custom House through which exported, and may be subsequently re-imported free of duty on re-identification, under proper restrictions to be prescribed by the Collector of Customs for the Philippine Archipelago.

Such articles are dutiable, however, to the extent of any repairs that may have been made thereon, at the rate of twenty-five per cent. ad valorem.

SEC. 401. Boats, launches, lighters, vessels, and other water-craft except in a knocked down condition, measuring more than five hundred cubic feet, are not dutiable as importations of merchandise.

SEC. 402. Such vessels measuring more than five hundred cubic

feet, duly licensed for the Philippine Coastwise Trade, may proceed to a foreign port for repairs, and upon their return to the Philippine Islands neither the vessel nor the repairs thereon shall be dutiable.

SEC. 403. Parts of the machinery or other equipment of such vessels measuring more than five hundred cubic feet, duly licensed for the Philippine Coastwise Trade, may be sent to a foreign port for repairs, and upon the return of said parts or equipments to the Philippine Islands the same shall not be dutiable.

SEC. 404. Parts of the machinery or other equipments of vessels measuring less than five hundred cubic feet, duly licensed for the Philippine Coastwise Trade, may be exported for repairs, and such parts or equipments upon their return to the Philippine Islands shall be dutiable in accordance with the provisions of section 400 of this Act.

SEC. 405. Articles of prohibited importation, as defined in section 6 of the Tariff Revision Law of 1901, when seized by the Customs authorities, shall be disposed of as follows:

(a) Dynamite, gunpowder, and similar explosives, and firearms of all descriptions and detached parts therefor, shall be held, pending instructions in each case from the Civil Governor, as to the disposition to be made thereof;

(b) Books, pamphlets, or other printed matter, paintings or illustrations, figures, or other objects, of an obscene or indecent character, shall be held by the Customs authorities, and shall be destroyed as soon as their status as articles of prohibited importation shall have been finally established;

(c) Roulette wheels, gambling layouts, dealing boxes and all other machines, apparatus or mechanical devices used in gambling, or used in the distribution of money, cigars or other articles, when such distribution is dependent upon lot or chance, shall be held by the Customs authorities for a period of thirty days, pending the presentation of evidence satisfactory to the Collector that they were sought to be imported bona fide, and in ignorance of the law, failing which the articles shall be destroyed in accordance with the regulations prescribed by this Act for the disposition of articles dangerous to the public health. If, however, evidence satisfactory to the Collector shall be presented, showing that the articles were imported bona fide, and in ignorance of the law, they may be permitted to be entered for immediate re-exportation in bond, under the usual formalities for such case prescribed.

SEC. 406. All existing decrees, laws, regulations or orders, relating to the administration of the Philippine Customs Service, are hereby repealed, such repeal to take effect as of the date when this Act shall go into force and effect; Provided, however, that nothing in this section shall in any way affect any suit, criminal prosecution, or other legal proceeding, or cause of action or criminal prosecution existing before this Act shall go into effect, but as to any such suit, criminal prosecution, legal proceeding, or cause of action or prosecution, the existing laws shall remain in full force and effect.

SEC. 407. This act shall take effect at the Port of Manila at 12 o'clock, midnight, on February 7th, 1902, and at each of the other ports and sub-ports in the Philippine Archipelago at 12 o'clock midnight, following the day when an official copy thereof, duly certified by the Insular Collector, shall first be received and promulgated by the chief customs officer, or inspector, stationed thereat, as the case may be. Enacted, February 6, 1902.

APPENDIX “A.”

Revised Statutes of the United States, 2d-1878-edition.

CHAPTER THREE.

TONNAGE DUTIES.

SEC. 4219. Upon vessels which shall be entered in the United States from any foreign port or place there shall be paid duties as follows: On vessels built within the United States but belonging wholly or in part to subjects of foreign powers, at the rate of thirty cents per ton; on other vessels not of the United States, at the rate of fifty cents per ton. Upon every vessel not of the United States which shall be entered in one district from another district, having on board goods. wares, or merchandise taken in one district to be delivered in another district, duties shall be paid at the rate of fifty cents per ton. Nothing in this section shall be deemed in any wise to impair any rights or privileges which have been or may be acquired by any foreign nation under the laws and treaties of the United States relative to the duty of tonnage on vessels. On all foreign vessels which shall be entered in the United States from any foreign port or place, to and with which vessels of the United States are not ordinarily permitted to enter and trade, there shall be paid a duty at the rate of two dollars per ton; and none of the duties on tonnage above mentioned shall be levied on the vessels of any foreign nation if the President of the United States shall be satisfied that the discriminating or countervailing duties of such foreign nations, so far as they operate to the disadvantage of the United States, have been abolished. In addition to the tonnage duty above imposed, there shall be paid a tax, at the rate of thirty cents per ton, on vessels which shall be entered at any custom house within the United States from any foreign port or place; and any rights or privileges acquired by any foreign nation under the laws and treaties of the United States relative to the duty of tonnage on vessels shall not be impaired; and any vessel any officer of which shall not be a citizen of the United States shall pay a tax of fifty cents per ton.

SEC. 4225. A duty of fifty cents per ton, to be denominated "light money" shall be levied and collected on all vessels not of the United States, which may enter the ports of the United States. Such light-money shall be levied and collected in the same manner and under the same regulations as the tonnage duties.

SEC. 2497. No goods, wares or merchandise, unless in cases provided for by treaty, shall be imported into the United States from any foreign port or place, except in vessels of the United States, or in such foreign vessels as truly and wholly belong to the citizens or subjects of that country of which the goods are the growth, production or manufacture; or from which goods, wares, or merchandise can only be, or most usually are, first shipped for transportation. All goods, wares, or merchandise imported contrary to this section, and the vessel wherein the same shall be imported, together with her cargo, tackle, apparel, and furniture, shall be forfeited to the United States; and such goods, wares, or merchandise, ship or vessel, and cargo shall be liable to be seized, prosecuted, and condemned, in like manner, and under the same regulations, restrictions and provisions, as have been heretofore established for the recovery, collection, distribution, and remission of forfeitures to the United States by the several revenue laws.

APPENDIX B.
ARTICLE XX.

AMERICAN OR FOREIGN BUILT VESSELS TRANSFERRED ABROAD TO CITIZENS OF THE UNITED STATES.

341. RIGHT TO ACQUIRE PROPERTY IN FOREIGN SHIPS.-The right of citizens of the United States to acquire property in foreign ships has been held to be a natural right, independent of statutory law, and such property is as much entitled to protection by the United States as any other property of a citizen of the United States.

342. TREASURY REGULATIONS-SEA LETTERS.-The existing general regulations of the Treasury Department under the customs and navigation laws (Customs Regulations, 1892) recognize the right of property in vessels of this character and

declare them to be entitled to the protection of the authorities and to the flag of the United States, although no register, enrollment, license, or other marine document prescribed by the laws of the United States can lawfully be issued to such vessels whether they are American or foreign built. The former practice of issuing sea letters in the case of the purchase abroad of American or foreign vessels by citizens of the United States is no longer authorized. Nevertheless, though the issuing of sea letters to such ships is not now authorized, yet there would seem to be no good reason upon the face of our present legislation why the Department of State should not resume the practice, in case the United States should be a neutral in a war between maritime powers, if it should deem such letters more protective in their character than consular or customs certificates of sale.

343. RECORD OF BILL OF SALE, CERTIFICATE, ETC.-In view of existing regulations, and to enable the owners of a vessel so situated to protect their rights, if molested or questioned, a consular officer, though forbidden by law to grant any marine document or certificate of ownership, may lawfully make record of the bill of sale in his office, authenticate its execution, and deliver to the purchaser a certificate to that effect; certifying, also, that the owner is a citizen of the United States. Before granting such a certificate the consular officer will require the tonnage of the vessel to be duly ascertained in pursuance of law and insert the same in the description of the vessel in his certificate. (Form No. 35.) These facts thus authenticated, if the transfer is in good faith, entitle the vessel to protection as the lawful property of a citizen of the United States; and the authentication of the bill of sale and of citizenship will be prima facie proof of such good faith.

344. CONSUL'S RESPONSIBILITY.-The authority of a consular officer to authenticate the transfer of a foreign vessel is wide in its effects and imposes great responsibility in making him, in the first instance at least, the sole judge of the good faith of the transaction. The question of the honesty and good faith of such a sale rises into the gravest importance in the event of a war between two or more powers in which the Government of the United States is a neutral. In such a war experience justifies the expectation that the citizens or subjects of one or more of the belligerents will seek to protect their shipping by a transfer to a neutral flag. In some instances this may honestly be done; but the sales of the vessels of belligerents in apprehension of or in time of war are always and properly liable to suspicion, and they justify the strictest inquiry on the part of the belligerent who may thereby have been defrauded of his right to capture the enemy's property. The acceptance of the pretended ownership of a vessel under these circumstances may be very profitable; and the temptation to abuse his trust in such a case to which a consular officer is subjected may be too great for persons of ordinary integrity, discernment, and firmness to withstand. Instances are not wanting in which citizens of the United States who were wholly incapable, from their previous well-known condition and pursuits, of making such a purchase have appeared as owners under sales of this character, and have sought for them the protection of the Government.

345. CAREFUL INVESTIGATION ENJOINED.-It is the duty of a consular officer to use all available means, especially during the existence of a war to which this Government is not a party, to satisfy himself that the sale of a vessel is made in good faith and without a fraudulent intent. A considerable discretion and responsibility rests upon him in the determination of the good faith of such transactions. It is not to be concluded that all such sales, even in time of peace, are honest and free from collusion or fraud. It is the duty of the consular officer to notice all circumstances that throw doubt on the good faith of the transaction or point to its fictitious character, and, if he is satisfied in this respect, to refuse to grant his certificate. On the other hand, he is not permitted to regard the mere fact of the sale of a vessel to a citizen of the United States as any evidence of fraud. The presumption must be otherwise, and, in the absence of any indication of dishonesty, a sale in the regular way, with the usual business formalities, is to be regarded as made in good faith.

346. CERTIFICATE, WHEN TO BE ISSUED.-When a consular officer shall have satisfied himself, after the investigation with which he is charged, that the sale of a vessel is not fictitious and is made in good faith, and that the purchaser is a citizen of the United States, it is his duty, when requested, to record the bill of sale in the consulate, and to deliver the original to the purchaser, with his certificate annexed thereto, according to Form No. 35. A copy of the bill of sale, together with any other papers belonging to the transfer, and of the consular certificate should be sent without delay to the Department of State, with a report of the facts and circumstances of the transaction.

347. RIGHT TO FLY THE FLAG.-The privilege of carrying the flag of the

United States is under the regulation of Congress, and it may have been the intention of that body that it should be used only by regularly documented vessels. No such intention, however, is found in any statute. And as a citizen is not prohibited from purchasing and employing abroad a foreign ship, it is regarded as reasonable and proper that he should be permitted to fly the flag of his country as an indication of ownership and for the due protection of his property. The practice of carrying the flag by such vessels is now established. The right to do so will not be questioned, and it is probable that it would be respected by the courts. 348. DISABILITIES OF FOREIGN-BUILT VESSELS.-It should be understood that foreign-built vessels not registered, enrolled, or licensed under the laws of the United States, although wholly owned by citizens thereof, cannot legally import goods, wares, or merchandise from foreign ports, and are not allowed in the coasting trade.-R. S., secs. 2497, 4311.

349. FORFEITURE AND TONNAGE DUTIES.-On arrival from a foreign port undocumented foreign-built vessels, if laden with goods, wares, or merchandise, may, with their cargoes, be subjected to forfeiture.-R. S., sec. 2497; see Tariff act of 1894, sec. 15. If in ballast only, or with passengers without cargo, they will be subject to a discriminating tonnage duty.-R. S., sec. 4219; 19 Stat. L., 250. When in foreign ports they are also subject to tonnage and other consular fees from which regularly documented vessels are exempt. For instructions respecting the shipment and discharge and relief of seamen on vessels of this character and the collection of extra wages, consular officers are referred to the several articles on these subjects.

[No. 356.]

AN ACT appropriating the sum of twenty-five thousand dollars ($25,000), money of the United States, for the expenses of the construction of the Benguet wagon road from Pozorubio, province of Pangasinan, to Baguio, province of Benguet.

By authority of the President of the United States, be it enacted by the United States Philippine Commission, that:

SECTION 1. The sum of twenty-five thousand dollars ($25,000), in money of the United States, is hereby appropriated out of any money in the Insular Treasury not otherwise appropriated, for expenses in carrying on the construction of the Benguet wagon road from Pozorubio, province or Pangasinan, to Baguio, province of Benguet.

SEC. 2. The funds appropriated by this act shall be disbursed in local currency upon the basis of two dollars and ten cents ($2.10), local currency, for one dollar ($1) in money of the United States.

SEC. 3. The public good requiring the speedy enactment of this bill, the passage of the same is hereby expedited in accordance with section 2 of "An Act Prescribing the Order of Procedure by the Commission in the Enactment of Laws," passed September 26, 1900. SEC. 4. This act shall take effect on its passage. Enacted, February 17, 1902.

[No. 357.]

AN ACT making certain permanent annual appropriations.

By authority of the President of the United States, be it enacted by the United States Philippine Commission, that:

SECTION 1. There are hereby appropriated, out of any moneys in the Insular Treasury not otherwise appropriated, for the purposes hereinafter specified, such sums as may be necessary for the same,