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Through these three branches the functions of government are carried on, and any encroachment, however small and apparently unimportant, by one branch on the rights and duties of the other can not fail to produce disorder and derangement of the governmental system.

The executive officer who departs from the plain legislative intent is usurping the powers conferred by the people on the legislature, and whether his departure be in the direction of oppressive use of the powers conferred upon him or a so-called lax administration, the results to the community are equally bad. It is possible to "read the reason out of" any statute, but such is not the proper function of an executive officer.

The powers and jurisdiction of executive and judicial officers often overlap, and at all times are so closely interwoven that in many cases the difference in their jurisdictions lies more in the method or procedure in interpreting and declaring the meaning of the laws than in any fundamental distinction. In such cases there is usually an appeal to the judiciary where a deprivation of life, liberty, or property by reason of executive decision is alleged. In other and fewer instances, however, the legislative branch has specifically conferred upon the executive what are plainly judicial or quasi-judicial powers, making the decisions of the executive final and beyond judicial appeal. In such cases the highest judicial tribunal of the United States has usually upheld this action and refused to interfere, especially where the statute is clear and explicit on the point of pure executive jurisdiction.

It has been the purpose of this office, in the discharge of its somewhat unpopular duties, to follow the foregoing principles of administration, and though the necessary enforcement of many laws which are more or less generally condemned as unsuitable in certain quarters has produced a full share of criticism and complaint, it is trusted that the permanent organization of the government of the islands may benefit by the course pursued.

Respectfully submitted.

W. MORGAN SHUSTER, Collector of Customs for the Philippine Islands.

APPENDIX A.

[Customs administrative circular No. 136.]

Special regulations for vessels engaging in lighterage and other exclusively harbor business at ports in the Philippine Archipelago.

To all collectors of customs:

OFFICE OF THE COLLECTOR OF CUSTOMS
FOR THE PHILIPPINE ARCHIPELAGO,
Manila, December 19, 1902.

PARAGRAPH I. All vessels, except those expressly exempted by Paragraph XIX of this circular, plying exclusively in and about the harbors, confluent navigable rivers and other inland waters of the Philippine Archipelago having a navigable outlet to the sea, shall, prior to engaging in such trade, and annually thereafter, and in lieu of the other licenses provided for in Act 355 of the United States Philippine Commission, in case they already possess the same, be required to take out a lighterage and harbor license," which shall entitle them to engage in "lighterage and other exclusively harbor business" within the limits indicated in said license.

PAR. II. All vessels, except those expressly exempted by said Paragraph XIX of this circular, possessing Philippine coastwise licenses issued prior to the effective date of this circular, and exclusively engaged in the lighterage and harbor business at any port in the Philippine Archipelago, shall be required to obtain the "lighterage and harbor license" prescribed by this circular: Provided, That in case such vessels already possess a Philippine coastwise license under Act No. 355 of the Philippine Commission, the lighterage and harbor licenses shall be issued in lieu of said Philippine coastwise licenses, for a period equal to the unexpired time of the original license, without additional cost to the vessel.

PAR. III. Vessels possessing certificates of protection issued under the Philippine customs administrative act may also engage in the lighterage and other exclusively harbor business at ports in the Philippine Archipelago, without additional license or fee, and small boats measuring less than 15 tons gross may likewise engage in that business at ports within the limits specified within their respective licenses.

PAR. IV. Vessels operating under a special coastwise license are not entitled to engage in the lighterage and other exclusively harbor business, and vessels possessing the lighterage and harbor license are not entitled to engage in the coastwise trade of the Philippine Archipelago. Violations of the provisions of this paragraph shall be punished as provided in Paragraph VII hereof, and section 150 of the Philippine customs administrative act, respectively, or by revocation of their respective licenses, or by both.

PAR. V. Vessels possessing a "lighterage and harbor license" shall not be required to be entered or cleared by customs officers or local presidentes acting as such.

PAR. VI. Owners of boats and vessels who may desire to engage therewith in the lighterage and other exclusively harbor business in accordance with the provisions of this circular may, upon application to the nearest collector of customs or coast district inspector of customs, and after taking the oath of allegiance to the United States, be granted a "lighterage and harbor license," and an annual license fee of $1, United States currency, per gross ton shall be collected: Provided, That the minimum fee in any case shall be $1.25, and that vessels measuring one ton or less, gross, shall be exempt from any fee whatever.

PAR. VII. Every vessel found engaged in the lighterage or other exclusively harbor business, without being duly licensed in accordance with the terms of this circular, shall be liable to a fine of not more than $500 nor less than $5, in the discretion of the collector of customs, who shall impose said fine.

If the license, however, shall have expired while the vessel was away and unable to renew the same, no fine shall be imposed.

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PAR. VIII. The limits of a harbor, for the purpose of licensing vessels as herein prescribed, shall be considered to include its confluent navigable rivers and lakes, which are navigable during any season of the year.

PAR. IX. All lighters, cascoes, paraos, and bancas possessing a "lighterage and harbor license" shall bear the letters "L & H," and immediately following the same the number of the license, branded or carved in a conspicuous place forward, or on each bow, and painted in such colors as to render them plainly visible.

PAR. X. In case any of the above-mentioned vessels are of iron or steel, the letters and numbers shall be indelibly chiseled or cut out thereon and painted as above prescribed.

All other vessels having a "lighterage and harbor license" may be granted the privilege of using metal letters and numbers to indicate their license, or in lieu thereof may paint or gild the letters and numbers, near the bow, in such colors as shall make them plainly visible.

Failure to carry out the provisions of this paragraph shall be punished by a fine of not more than $25 nor less than $5, in the discretion of the collector of customs. PAR. XI. Any pleasure yacht, pleasure launch, ship' boat or other craft, which by Paragraph XIX of this circular is exempt from the necessity of possessing a coastwise or lighterage and harbor license, is hereby prohibited from engaging in cargo traffic or the business of carrying passengers for hire, under a penalty of not more than $100 nor less than $5 for each offense, in the discretion of the collector of customs.

Such vessels, however, shall have the privilege of taking out the corresponding license if they so elect.

PAR. XII. When licenses issued in accordance with this circular are renewed without an intervening period the vessels shall retain their original numbers as marked thereon, and the new license issued shall be given the same number as the original (expired) license, which shall be surrendered and canceled. All licenses shall distinctly specify in the body thereof the waters within which the vessel in each case is authorized to trade.

PAR. XIII. All vessels licensed in accordance with the provisions of this circular shall carry the following documents:

(a) Lighterage and harbor license.

(b) Oath of allegiance to the United States of the owner.

(c) Certificates of crew and passengers, if any.

PAR. XIV. All vessels licensed in accordance with the provisions of this circular are hereby strictly prohibited from engaging in cargo traffic or the carrying of passengers, outside of the limits prescribed in their respective licenses, under a penalty of not more than $500 nor less than $5 for each offense in the discretion of the collector of customs.

PAR. XV. All vessels above 15 tons gross applying for or possessing a "lighterage and harbor license" on and after the effective date of this circular shall be required to present the certificate of the official hull inspector at the port of Manila, and if steam vessels, of the official boiler inspector also, or of a duly authorized assistant in each case, to the effect that such vessels are seaworthy and otherwise fit to engage in the lighterage and harbor business, and no lighterage and harbor license shall be issued, nor shall the licenses already issued be permitted to be retained, unless the above-described certificate or certificates shall be presented: Provided, also, That if any of the vessels mentioned in this paragraph are engaged or are destined to engage in the business of carrying passengers within the limits prescribed by their respective licenses, they shall be inspected by the official hull inspector at the port of Manila, and if steam vessels, by the official boiler inspector also, or by duly authorized assistants, at least once a year, and no original license shall be issued until proper evidence of such inspection within the year just preceding the contemplated date of the license has been presented, nor, in the case of licenses already issued, shall the vessels be permitted to continue in operation until similar evidence is presented that such inspection has been made within the year just preceding the examination of the respective licenses which may have been issued at any time prior to the effective date of this circular: And provided further, That in case it has been impossible for the owners of such vessels to obtain said certificates, due to the absence of official hull and boiler inspectors at their port, the certificates in question, or either of them, may be obtained from the surveyor of customs of the port, or officer acting as such, who is hereby authorized to issue the same, pending the issuance of certificates by the official hull and boiler inspectors, as above described.

PAR. XVI. In order to give effect to the preceding paragraph, collectors and coast district inspectors of customs are hereby directed to take up and examine all light

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erage and harbor licenses within their respective districts at the earliest practicable date.

PAR. XVII. The license and net tonnage numbers of a vessel engaged in the lighterage and harbor business in the Philippine Archipelago shall be carved or branded on her main beam, preceded in the case of the former by the abbreviation "No." Her name and these numbers shall appear in all her documents. Numbers shall be marked, at the expense of the owner, in Arabic numerals at least 3 inches in height, when the size of the main beam will permit. If the main beam is of wood, they shall be carved or branded in figures not less than three-eighths nor more than one-half inch in depth. If the main beam is of iron or other metal they shall be marked in white oil paint if the beam is black, and in black oil paint if the beam is of any other color.

For failure to comply with this provision, a penalty of $30 shall be imposed, and on continuing failure to comply with the law, the vessel shall again be fined, and held until compliance is had.

This penalty, however, shall not be imposed until the owner or agents of such vessel have been given in the first instance reasonable opportunity and warning to comply with the law.

PAR. XVIII. All vessels of more than 15 tons burden possessing a lighterage and harbor license, except those mentioned in the following Paragraph XIX of this circular, shall have their respective names and home ports plainly marked upon the stern, and their respective names upon each side of the bow. In the case of vessels which may have been documented without a name, the number of the license shall be accepted and used in lieu thereof.

The name of the home port shall be marked on or near the stern of all vessels of more than 15 tons burden, except that in the case of vessels known as "doubleenders" the numbers and names may be placed on the ends corresponding to the bow and stern.

PAR. XIX. The following vessels shall be exempt from the requirement of possessing a lighterage and harbor license,

(1) Pleasure yachts, pleasure launches, and other craft used exclusively for recreation, and not engaged in carrying passengers or cargo for hire.

(2) Ships' boats belonging to vessels plying in the waters of the Philippine Archipelago: Provided, That such ships' boats shall bear the name and home port of the vessel to which they belong plainly marked upon the bow or stern: And provided further, That said ships' boats are not used in carrying passengers or cargo for hire. (3) All vessels of any kind owned or chartered by any bureau or department of the United States Government or the government of the Philippine Islands: Provided, That said vessels are not engaged in carrying any but Government cargo; that such vessels shall be subject to the usual requirements in regard to names and home ports, and, further, that such vessels shall also be plainly marked with the name, initials or, official symbol of the bureau or department to which they belong or by which they are chartered.

PAR. XX. The name of a vessel possessing a lighterage and harbor license shall not be changed without written permission from the collector of customs for the Philippine Archipelago, under a penalty of a fine of not more than $500 nor less than $10, in the discretion of the collector of customs.

PAR. XXI. Permission to change the name of a vessel possessing a lighterage and harbor license may be granted by the collector of customs for the Philippine Archipelago on application made through the collector or coast district inspector of customs within whose district the license is issued.

PAR. XXII. Monthly abstracts of lighterage and harbor licenses shall be prepared by customs officers issuing the same and be forwarded to this office for file. Said abstracts shall be made in triplicate on Form No. 46, Philippine customs service. The duplicate copy shall be filed in the office of the collector or coast district inspector of customs issuing the license as a permanent record of the office, and the triplicate shall be forwarded to the insular auditor.

PAR. XXIII. The attention of all customs officers is called to the fact that a vessel for which a lighterage and harbor license is sought must either have been engaged in the lighterage and harbor business on the 8th day of March, 1902, or must have been built in the Philippine Islands or in the United States, and be owned by citizens of the United States or inhabitants of the Philippine Islands, or jointly by both.

Vessels (not built in the United States or in the Philippine Islands) for which lighterage and harbor licenses are sought on the ground that they were actually engaged in that business on March 8, 1902, must have been operating under either the general Philippine coastwise license or under the special license provided for boats of a capacity of less than 15 gross tons; hence during the period of their

operation they must have been, and they must continue to be, owned, up to the date of the issuance of the lighterage and harbor license, by one of the three classes of persons mentioned in section 117 of the Philippine customs administrative act.

Vessels which have been built either in the United States or in the Philippine Islands must be owned by a citizen of the United States (which includes a corporation or company organized under the laws of the United States, or a firm or partnership composed wholly of citizens of the United States) or by an inhabitant of the Philippine Islands (which includes a person having an actual and permanent abode here, provided that there is intention to remain). The word "inhabitant" also includes a corporation or company organized in the Philippine Islands and having its main place of business here or a partnership existing here, but does not include a corporation or company organized and domiciled outside of the Philippine Islands and simply transacting business through an agency or branch in these islands.

PAR. XXIV. In all cases wherein lighterage and harbor licenses are applied for, customs officers shall make the same investigation as to real ownership as is prescribed by Chapter X of the Philippine customs administrative act in the case of certificates of protection, and shall issue the usual certificate of ownership after obtaining the oath of the owner as to the ownership of the vessel.

PAR. XXV. For the issuance of lighterage and harbor licenses no renunciation of allegiance to the sovereign country in the case of foreign subjects shall be required of either the owner of the vessel or of her master or watch officers, but unless vessels are owned wholly by citizens of the United States (including corporations and companies organized under the United States laws), or wholly by native inhabitants of the Philippine Islands, or by residents of the Philippine Islands, before April 11, 1899, theretofore subjects of Spain, who under Article IX of the treaty of Paris have adopted the nationality of the Philippine Islands, or jointly by two or more of said classes of persons, they shall not be entitled to the flag of the United States. In the case of vessels which are entitled to the flag of the United States, that fact shall be expressly stated in the lighterage and harbor licenses which are granted to them, and no other vessel so licensed shall be permitted to fly the United States flag.

PAR. XXVI. All fines provided for in this circular shall be imposed by the collector of customs of the district in which the offense or violation takes place, and the same may also be imposed by the corresponding coast district inspector of customs, subject to the approval of the collector of customs of the district and to the other appeals allowed by law.

PAR. XXVII. This circular shall take effect on January 2, 1903, at the port of Manila, and at each of the other ports in the Philippine Archipelago on that date, or as soon thereafter as the same shall be received and promulgated by the chief customs officer or inspector stationed thereat, as the case may be.

PAR. XXVIII. Philippine customs officers shall give due publicity to the terms of this circular.

W. MORGAN SHUSTER,

Collector of Customs for the Philippine Archipelago.

APPENDIX B.

OFFICE OF THE COLLECTOR OF CUSTOMS
FOR THE PHILIPPINE ARCHIPELAGO,

Manila.

BOARD ON PHILIPPINE MARINE EXAMINATIONS.
Certificate of service.

This is to certify that

tled to a certificate of service as

vessels of

has given satisfactory evidence that he is enti-
upon
upon the waters

of
according to section 7, Act 780, Philippine Commission, and is hereby
authorized to act as such until July 1, 1904.

Secretary of the Board on Philippine Marine Examinations.

Collector of Customs for the Philippine Archipelago,

President of the Board.

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