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Conservation of
Tropical Coral Reefs
A Review of Financial and
Strategic Solutions
Brian Joseph McFarland
Conservation of Tropical Coral Reefs
 Brian Joseph McFarland

Conservation
of Tropical Coral Reefs
A Review of Financial and Strategic
Solutions
Brian Joseph McFarland
Windham, NH, USA

ISBN 978-3-030-57011-8 ISBN 978-3-030-57012-5 (eBook)

https://doi.org/10.1007/978-3-030-57012-5

© The Editor(s) (if applicable) and The Author(s) 2021

This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse
of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
transmission or information storage and retrieval, electronic adaptation, computer software, or by similar
or dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.

Cover illustration: Emma Holman/gettyimages

This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
I would like to dedicate this book to my family and friends – particularly my son
Attila, my wife and dive buddy Brigitta, my dad Joseph, my mom Tamara, my
brother Trevor, my brother-in-law Dani, my sister-in-law Amanda, and my
mother-in-law Eva - for all their love and support.
I would like to share a special dedication with my son Attila: when you are older,
I hope that we, as humanity, have come up with the solutions to save tropical
coral reefs and mitigate global climate change and so you can see, in person, all
the wonderful animals that I used to read to you about. Likewise Attila, I began
writing this book when you were three and just learning how to swim in our
pool; jumping off the diving board and getting comfortable with swimming
underwater with your eyes open and getting used to putting on a mask and
snorkel; and how can we forget you “SCUBA diving” into pillow piles. I wish
the same for my niece Adrian, my nephew Paul, and my goddaughter Olivia.
I would also like to thank my former teachers Dan Bisaccio, Christopher Brooks,
and Joseph Domask and the School for Field Studies for teaching me about the
natural world, about how to be an analytical thinker, and opening up my mind
to a world of adventurous travels. A special thank you is reserved for Dan
Bisaccio who provided my first opportunity to snorkel over coral reefs, in Puerto
Morelos, Mexico, along with a special thank you to my dear friend Mike
Edmonds who helped turn me on to SCUBA diving.
I would like to thank my hardworking colleagues at Carbonfund.org,
particularly Jarett Emert, Linda Kelly, and Suzie Kaufman, and a particular
thank you to Carbonfund.org’s President and Founder Eric Carlson, along with
Carbonfund.org’s Chairman Paul Rowland, for all the opportunities that have
been provided to me over the last 13+ years at Carbonfund.org.
I would also like to say thank you to Gabriel Thoumi for all his hard work. I
truly appreciate the time and effort of María José González for writing the
foreword and of Peter Gash for writing the epilogue, along with the kind
endorsements by Jennie Gilbert, Eric Carlson, and Cary Krosinsky.
In addition, thank you to the entire team at Palgrave Macmillan for their
dedication and support.
 Foreword

As the oceans go, so do we.

—David Doubilet

Coral reefs, especially those in the tropics, are possibly the world’s most
diverse ecosystems. Although they only cover about 284,000 km2 of the
world’s surface, equivalent to about 5% of the world’s rainforest cover, they
are home to between one million and three million species depending on
different projections.
Coral reefs provide many benefits to humans. Among others, they are a
critical natural infrastructure that protect coastal communities from storm
surges, beach erosion, and wave-induced damage. They reduce the threat to
lives and property posed by hurricanes, and they are an important source of
income, mainly through tourism and fisheries. For local communities, they
provide livelihoods and food security.
Sadly, they are also one of the most degraded ecosystems and much of the
information coming from scientists is telling us they have a bleak future. The
biggest threat is global climate change, which is causing increased frequency
and intensity of storms and hurricanes, as well as coral bleaching and seawater
acidification. The bleaching events of 2016 and 2017 alone caused the
mortality of half of the Great Barrier Reef of Australia, the largest reef on the
planet. Climate change exacerbates anthropogenic threats to corals, such as
overfishing, untreated sewage, solid waste and plastics, land use change and
sedimentation, and coastal development. Human-caused threats reduce the

vii
viii Foreword

resilience of coral reefs to climate change, making it more difficult for them
to recover from climate-related events.
Coral reefs were symbols of time and permanence. For centuries, they were
the barriers that protected/guarded tropical islands. They were the demise of
adventurers and explorers; the end and the beginning of Robinson Crusoe
and Lord Greystoke. It is an eerie sensation to realize this is changing dramat-
ically during our lifetimes. Thanks to documentary films, families that have
never seen the ocean now know of the wonders of coral reefs, but also that
they are threatened and dying. For many scientists and recreational divers, it
is happening before our eyes.

I can mention many moments that were unforgettable and revelatory. But
the most single revelatory three minutes was the first time I put on scuba gear
and dived into a coral reef. It’s just the unbelievable fact that you can move
in three dimensions.
-Sir David Attenborough

In results presented at a scientific meeting in early 2020, research indicates

that climate change will be the main cause of the loss of the world’s coral
reefs.1 By 2100, almost all of the coral habitats could be gone, and between
70–90% may disappear in the next 20 years. It seems to be a downward spiral
with no return.
Is there hope? I think there is. There are reasons for optimism. An excellent
program that operates in the Mesoamerican Reef (MAR) ecoregion, called
the Healthy Reefs for Healthy People Initiative (HRI), measures the health of
the MAR biennially and puts out a report card with a reef health index inte-
grated by the following four variables: live coral cover, fleshy macroalgae cover,
commercial fish biomass, and herbivorous fish biomass. In their recently
published 2020 Report Card,2 results indicate that over the whole MAR, live
coral cover increased. This is good, very good given recent trends.
However, for the first time since their first Report Card in 2008, the overall
reef health index dropped, mostly due to severe reductions in fish. This high-
lights another key aspect related to the health and potential permanence of
reefs: they are intimately intertwined with other marine, coastal, and terres-
trial ecosystems. So, a reduction in fish in the MAR may be a consequence
of overfishing, but may also be tied to a reduction in mangrove forests that
are critical nurseries for fish larvae, to lack of sewage treatment that pours
untreated waters into the reefs, and of land use change upstream that washes
 Foreword ix

sediment into the sea. How other ecosystems are managed—or not—will
have an impact on coral reefs. It is important to protect and restore reefs, but
also seagrass beds and mangroves, and other ecosystems along the watersheds
that can ultimately affect reefs. To protect corals, we must have a ridge-to-reef
approach.
Understanding this alone does not guarantee success. Effective protec-
tion and restoration of ecosystems requires funding. Actually, large amounts
of funding. And obtaining continued, timely, and adequate funding is not
an easy task. To provide insight into the possibilities for coral conservation
finance, Brian McFarland skillfully provides an in-depth compilation on the
sources of funding and strategies available for coral conservation, manage-
ment and restoration today. This book begins with a careful account of coral
reef degradation, ecology, and conservation policy that provide perspective on
the conservation finance information provided.
The initial framework sets the stage for the array of thoroughly analyzed
funding options for coral reefs. They encompass from philanthropic sources
and government budgets, which are the more “traditional” sources—though
by no means less important—to debt swaps, impact investing, payment for
ecosystem services and innovative funding currently being piloted, such as
blue bonds and parametric insurance for reef restoration. Critical to under-
standing these different financial mechanisms are the detailed case studies.
They clearly explain how each mechanism or strategy has been established,
how it operates, what challenges it has met with and lessons learned, among
others. This is a very effective way for coral reef stewards to evaluate if a
given mechanism is viable given their own specific circumstances. Overall,
the author provides an extremely valuable toolbox for coral reef conservation
finance.
Certainly, financial resources themselves will not protect nor restore corals.
They are a means to an end. We need to work together, to share our experi-
ences, to experiment with diverse strategies and to communicate successes, as
much as failures, in order to move effective coral conservation and restora-
tion forward. And we need to get involved with, and liaise outside, the
strict coral conservation/restoration sphere, across professions and sectors, to
sewage treatment, controlled and sustainable coastal development, sustainable
fisheries, sustainable agriculture, sustainable tourism and, especially, to poli-
cies and actions that will contribute to the control of climate change if coral
reefs are to survive.
We all need coral reefs, regardless of where we live and what we do. We
cannot just stand by and continue to read the dismal news regarding the
world’s corals. We must take action from our neck of the woods, be it in
x Foreword

the water out planting coral fragments grown in a nursery, teaching about
recycling, supporting policies for conservation of resources and reduction of
greenhouse gases, or by contributing financially for any of the range of finan-
cial mechanisms and strategies detailed in this book. Humans are the main
cause of the current situation in which corals find themselves today, and yet
we are also the hope for coral reefs and we need to act now.

March 2020 María José Gonzalez

Executive Director, Mesoamerican Reef Fund
Guatemala City, Guatemala

Notes
1. Yeung, Jessie. “Climate Change Could Kill All of Earth’s Coral Reefs 102
by 2100, Scientists Warn.” CNN . February 20, 2020. Accessed March
11, 2020. https://edition.cnn.com/2020/02/20/world/coral-reefs-2100-intl-
hnk-scli-scn/index.html.
2. Healthy Reefs for Healthy People. “Mesoamerican Reef Report Card 2020.”
Accessed March 11, 2020. https://www.healthyreefs.org/cms/wp-content/upl
oads/2020/02/SmithReefs_RC19_Pages_BIL_f_E_LO.pdf.
 Preface

The inspiration for this book comes from a lifetime of observing firsthand
some of the world’s most spectacular landscapes and wildlife, and the hope
my son will be able to see the same seascapes, landscapes and wildlife when he
is older. There are few things in life that I appreciate more than seeing wildlife
in their natural landscapes. Over the years, I have snorkeled with whale sharks
(Rhincodon typus) the size of a school bus, swam near Amazon river dolphins
(Inia geoffrensis), come upon fresh jaguar (Panthera onca) tracks, watched
colorful scarlet macaws (Ara macao) fly overhead, and stood face-to-face with
a wild black rhinoceros (Diceros bicornis) (Fig. 1).
While growing up in the small town of Amherst, New Hampshire, my
life was complemented by a close family, wildlife, and a well-financed public
school system. I recall memories of my dad feeding hummingbirds out of his
hand, my mom tending our vegetable garden, watching a moose (Alces alces)
drink from the pond outside my bedroom, and fishing for largemouth bass
(Micropterus salmoides) with my brother. Growing up relatively close to the
ocean meant frequent trips to the seashore where I would spend time climbing
over rocks to catch crabs, starfish, and sea urchins—so much climbing, that I
often wound up with sprained ankles and crutches.
It was during the summer after my junior year at Souhegan High School
that I traveled to Mexico’s Yucatan Peninsula with our teacher Dan Bisaccio,
the now-retired and former Director of Science Education at Brown Univer-
sity, for real-world fieldwork in conjunction with the Smithsonian Insti-
tution’s Monitoring & Assessment of Biodiversity Program.1 Although it

xi
xii Preface

Fig. 1 Brigitta and Brian Diving the Great Barrier Reef (Credit: Brigitta Jozan)

took years working in a restaurant to earn the money to fund the trip, I
became forever impassioned with conservation biology and our intercon-
nected globe. For the first time, I saw poverty, I walked in a tropical rain-
forest, I snorkeled over the Mesoamerican Reef, and I watched Yucatan spider
monkeys (Ateles geoffroyi yucatanensis) in the canopy. I started to understand
the connections between poverty, commercial development, slash-and-burn
agriculture, commercial agriculture—particularly the global cattle trade—and
tropical deforestation, tropical degradation, catastrophic climate change, and
its impact on coral reefs.
Since then, I traveled back to Mexico and shortly thereafter onto Costa
Rica, Tanzania, and Kenya. During these additional education programs, I
gained further insights into the interconnectivity between natural resource
management, ecotourism, and sustainable economic development. Next, I
chose to study under Joseph Domask at American University. During this
time, I interned at the US Environmental Protection Agency and spent a
month in Brazil studying tropical ecology and income inequality. I later
enrolled in a dual Master degrees program in Global Environmental Policy
and Business Administration at American University in Washington, DC.
 Preface xiii

I started as an intern at Carbonfund.org Foundation when I began my

graduate studies and I still work today at Carbonfund.org and for its wholly-
owned subsidiary CarbonCo, LLC. These two organizations fund climate
change mitigation projects, along with the development and implementa-
tion of four, innovative forest conservation projects in the Brazilian Amazon.
While my expertise is more on the conservation of tropical rainforests, trop-
ical coral reefs are facing similar threats—particularly global climate change
and habitat loss—and it is important to understand that healthy forests and
responsible land use are related to healthy coastal areas, including tropical
coral reefs. Furthermore, in my free time, I have snorkeled and/or dove
throughout the Bahamas, Jamaica, Grand Cayman, Mexico, and the Philip-
pines. For an applied research trip to help write this book, my wife Brigitta
and I also had the remarkable opportunity to dive the Great Barrier Reef from
September to October 2019. I also enjoy visiting aquariums, including ones
in Baltimore, Boston, Chicago, New Orleans, Monterey, and Seattle, along
with whale watching trips in California, Maine, and Washington State.
This book reflects my background. With travels to 30+ countries, 15+ years
of conservation finance experience, 70+ semi-structured, in-depth interviews,
and dozens of background readings, the book focuses on some of the finan-
cial instruments that can fund the conservation of the world’s last remaining
tropical coral reefs. The world’s tropical coral reefs, from the Mesoamer-
ican Reef to the Coral Triangle to the Great Barrier Reef, are under grave
threat. These threats include, but are not limited to: global climate change
and warming oceans; ocean acidification; plastics and other pollution such as
runoff from cities and farms; overfishing; the spread of invasive species and
disease; and the construction of megaprojects for infrastructure development
such as ports, shipping lanes, and hotels.
The degradation and loss of tropical coral reefs are serious global envi-
ronmental issues. For instance, conserving coastal ecosystems—including
mangroves, seagrasses, and salt marshes - help mitigate global climate change
by sequestering, at times, more carbon dioxide emissions per hectare than a
primary tropical rainforest. Furthermore, conservation of tropical coral reefs
can improve the livelihoods of local people who depend on reef fish for a
large source of their protein. Finally, conservation can provide refuge for the
world’s highest levels of marine biodiversity, with coral reefs often being refer-
enced as the “rainforests of the sea.” However, conserving these tropical coral
reefs is contingent upon raising both sufficient and long-term international
financing that is structured to support scalable, seascape-level initiatives.
xiv Preface

This book follows a chronological order. It briefly examines the histor-

ical development of conservation finance for tropical coral reefs. Conserva-
tion finance originally developed from governments in the form of domestic
budgeting from taxation for the creation and maintenance of protected
areas alongside philanthropy, followed by utilizing tax deductions created for
conservation easements, and then by international aid to assist foreign coun-
tries with their own protected areas. Conservation finance then evolved to
include impact investing, payments for ecosystem services, debt-for-nature
conversions, and ecotourism. Today, conservation finance includes these
approaches while also expanding into certified sustainable products and the
issuance of blue bonds.
The book, in order to help an interdisciplinary audience, will begin with
a context of tropical coral reef degradation and loss, followed by a review of
coral reef ecology, global environmental policy, and international finance.
Each chapter will then be dedicated to a unique conservation financing
instrument. Each of these chapters will follow a similar format, starting with
a brief historical overview of the instrument, followed by an explanation of
how the instrument works, then by providing background information on the
size of the instrument, and concluding with a presentation of case studies, a
financial analysis, a policy analysis, and a future outlook for the instrument.
All 30 case studies, which span 23 countries and 6 continents, are based
off the following format:

I. The Problem
i. Identify the Problem.
ii. Explain Why the Problem Is Important.
iii. How Was the Problem Identified?
iv. Was the Process for Identifying the Problem Effective?
II. Steps Taken to Address the Problem
III. Results
IV. Challenges and How They Were Met
V. Beyond Results
VI. Lessons Learned.2

The financial analysis will examine the return versus risks of the financial
instruments. The risk categories are:

• Business;
• Strategic;
 Preface xv

• Reputation;
• Liquidity;
• Operational;
• Market;
• Legal and Regulatory; and
• Credit.

The policy analysis will utilize the following format:

I. Defining the Problem.

II. Establishing Goals.
III. Selecting a Policy.
IV. Implementing a Policy.
V. Evaluating the Policy.3

I would like to highlight, upfront, the following:

First, this book focuses on tropical coral reefs. While all biomes are impor-
tant—from tropical rainforests to the deep ocean, cold water reefs—trop-
ical coral reefs are the focus of this book given their unique issues.
Second, marine protected areas (MPAs) and conservation projects are often
financed via complex mechanisms such as a combination of trust fund
financing, domestic budgetary allocations, and revenue from ecotourism.
This said, if a case study is categorized under domestic budgetary allo-
cations, that is not to say that the MPA received exclusive financing
from domestic budgetary allocations. Rather, projects and programs should
seek diversified revenue models. For instance, ecotourism outfitters should
adopt blue procurement models and impact investors should leverage
matching funds from nonprofits and/or governments. Yet, a significant
funding gap continues to exist.
Third, U.S.-based and EU-based conservation is different than conserva-
tion throughout the tropics. For example, Indigenous Peoples and local
fishing communities are often living near tropical coral reefs and their
buffer zones. In addition, there tends to be greater income inequality and
less overall wealth in the host countries of tropical coral reefs. For example,
the GINI coefficient—which is a leading economic indicator of wealth
inequality among households—was 28.2 (in 2015) in the Netherlands,
32.7 (2015) for France, and 41.5 (2016) for the U.S., while the Philip-
pines was 44.4 (2015), Seychelles was 46.8 (2013), and Mexico was 48.3
(2016).4 Competing for government budgets are other pressing domestic
Discovering Diverse Content Through
Random Scribd Documents
 the 26th April, at noon, accompanied by his aide-de-camp,
Captain del Pilar, and Mr. Leyba, his private secretary. …

"Throughout the whole stay of General Aguinaldo in Singapore

the editor was kept fully informed daily of the progress of
affairs. Naturally, however, all statement of what occurred
has been withheld by us until what has been deemed the fitting
moment has arrived. The substance of the whole incident in its
relations to the recent course of affairs in the Philippines
has been very fully telegraphed by the editor both to New York
and London."

{594}

Mr. Pratt, the U. S. Consul-General at Singapore, had already,

under date of April 28, given his own official report of the
interview with General Aguinaldo, to the Department at
Washington, as follows:

"I have the honor to report that I sent you on the 27th
instant, and confirmed in my dispatch Number 211 of that date,
a telegram which deciphered read as follows. … 'General
Aguinaldo gone my instance Hongkong arrange with Dewey
co-operation insurgents Manila.
PRATT.'

"The facts are these: On the evening of Saturday the 23d

instant, I was confidentially informed of the arrival here,
incognito, of the supreme leader of the Philippine insurgents,
General Emilio Aguinaldo, by Mr. H. W. Bray, an English gentleman
of high standing, who, after fifteen years' residence as a
merchant and planter in the Philippines, had been compelled by
the disturbed condition of things resulting from Spanish
misrule to abandon his property and leave there, and from whom
I had previously obtained much valuable information for
Commodore Dewey regarding fortifications, coal deposits, etc.,
at different points in the islands. Being aware of the great
prestige of General Aguinaldo with the insurgents, and that no
one, either at home or abroad, could exert over them the same
influence and control that he could, I determined at once to
see him, and, at my request, a secret interview was
accordingly arranged for the following morning, Sunday, the
24th, in which, besides General Aguinaldo, were only present
the General's trusted advisers and Mr. Bray, who acted as
interpreter.

"At this interview, after learning from General Aguinaldo the

state of and object sought to be obtained by the present
insurrectionary movement, which, though absent from the
Philippines, he was still directing, I took it upon myself,
whilst explaining that I had no authority to speak for the
Government, to point out the danger of continuing independent
action at this stage; and, having convinced him of the
expediency of co-operating with our fleet, then at Hongkong,
and obtained the assurance of his willingness to proceed
thither and confer with Commodore Dewey to that end, should
the latter so desire, I telegraphed the Commodore the same day
as follows, through our consul-general at Hongkong:
'Aguinaldo, insurgent leader, here. Will come Hongkong arrange
with Commodore for general cooperation insurgents Manila if
desired. Telegraph.
PRATT.'

"The Commodore's reply reading thus:

'Tell Aguinaldo come soon as possible.
DEWEY.'

"I received it late that night, and at once communicated to

General Aguinaldo, who, with his aide-de-camp and private
secretary, all under assumed names, I succeeded in getting off
by the British steamer 'Malacca,' which left here on Tuesday,
the 26th. Just previous to his departure, I had a second and
last interview with General Aguinaldo, the particulars of
which I shall give you by next mail. The general impressed me
as a man of intelligence, ability, and courage, and worthy the
confidence that had been placed in him.

"I think that in arranging for his direct cooperation with

the commander of our forces, I have prevented possible
conflict of action and facilitated the work of occupying and
administering the Philippines. If this course of mine meets
with the Government's approval, as I trust it may, I shall be
fully satisfied; to Mr. Bray, however, I consider there is due
some special recognition for most valuable services rendered.
How that recognition can best be made I leave to you to
decide."

Two days later (April 30), Mr. Pratt reported further, as

follows: "Referring to my dispatch No. 212, of the 28th
instant, I have the honor to report that in the second and
last interview I had with General Emilio Aguinaldo, on the eve
of his departure for Hongkong, I enjoined upon him the
necessity, under Commodore Dewey's direction, of exerting
absolute control over his forces in the Philippines, as no
excesses on their part would be tolerated by the American
Government, the President having declared that the present
hostilities with Spain were to be carried on in strict accord
with modern principles of civilized warfare. To this General
Aguinaldo fully assented, assuring me that he intended and was
perfectly able, once on the field, to hold his followers, the
insurgents, in check and lead them as our commander should
direct. The general further stated that he hoped the United
States would assume protection of the Philippines for at least
long enough to allow the inhabitants to establish a government
of their own, in the organization of which he would desire
American advise and assistance. These questions I told him I
had no authority to discuss."

Of the arrival of Aguinaldo at Hongkong and his conveyance

thence to Manila, the following account was given by Mr.
Wildman, the U. S. Consul at Hongkong, in a communication to
 the State Department at Washington, which bears date July 18:
"On May 2 Aguinaldo arrived in Hongkong and immediately called
on me. It was May 16 before I could obtain permission from
Admiral Dewey to allow Aguinaldo to go by the United States
ship 'McCulloch,' and I put him aboard in the night so as to
save any complications with the local Government. Immediately
on the arrival of Aguinaldo at Cavite he issued a
proclamation, which I had outlined for him before he left,
forbidding pillage, and making it a criminal offense to
maltreat neutrals. He, of course, organized a government of
which he was dictator, an absolutely necessary step if he
hoped to maintain control over the natives, and from that date
until the present time he has been uninterruptedly successful
in the field and dignified and just as the head of his
government. According to his own statements to me by letter,
he has been approached by both the Spaniards and the Germans,
and has had tempting offers made him by the Catholic Church.
He has been watched very closely by Admiral Dewey, Consul
Williams, and his own junta here in Hongkong, and nothing of
moment has occurred which would lead anyone to believe that he
was not carrying out to the letter the promises made to me in
this consulate. The insurgents are fighting for freedom from
the Spanish rule, and rely upon the well-known sense of
justice that controls all the actions of our Government as to
their future."

{595}

In reply to Consul Pratt's report of his interviews with

General Aguinaldo, and of his proceedings in connection with
the departure of that personage from Singapore to Hongkong,
the United States Secretary of State, Mr. Day, wrote, June 16,
as follows: "The Department observes that you informed General
Aguinaldo that you had no authority to speak for the United
States; and, in the absence of the fuller report which you
promise, it is assumed that you did not attempt to commit this
Government to any alliance with the Philippine insurgents. To
 obtain the unconditional personal assistance of General
Aguinaldo in the expedition to Manila was proper, if in so
doing he was not induced to form hopes which it might not be
practicable to gratify. This Government has known the
Philippine insurgents only as discontented and rebellious
subjects of Spain, and is not acquainted with their purposes.
While their contest with that power has been a matter of
public notoriety, they have neither asked nor received from
this Government any recognition. The United States, in
entering upon the occupation of the islands, as the result of
its military operations in that quarter, will do so in the
exercise of the rights which the state of war confers, and
will expect from the inhabitants, without regard to their
former attitude toward the Spanish Government, that obedience
which will be lawfully due from them. If, in the course of
your conferences with General Aguinaldo, you acted upon the
assumption that this government would cooperate with him for
the furtherance of any plan of his own, or that, in accepting
his cooperation, it would consider itself pledged to recognize
any political claims which he may put forward, your action was
unauthorized and cannot be approved."

Treaty of Peace, and Accompanying Papers

(55th Congress, 3d Session, Senate Document Number 62,
part 2, pages 337-354).

See, also (in this volume),

PHILIPPINE ISLANDS: A. D. 1806-1808.

UNITED STATES OF AMERICA: A. D. 1898 (April-June).

The War with Spain.
Movements or the Spanish squadron under Admiral Cervera,
and the blockading of it in the harbor of Santiago de Cuba.
Lieutenant Hobson's exploit.
The sinking of the collier "Merrimac" in the channel.

The opening of hostilities found a Spanish squadron of four

armored cruisers (the "Cristobal Colon," the "Almirante
Oquendo," the "Vizcaya," and the "Infanta Maria Teresa,") with
three torpedo-boat destroyers (the "Pluton," "Furor" and
"Terror") and some lighter craft, assembled at the Cape Verde
islands, under Rear-Admiral Pascual Cervera. They were in
Portuguese waters, and Portugal, though friendly to Spain, was
forced to issue a proclamation of neutrality, on the 20th of
April, which required the Spanish fleet to depart. Some of the
vessels then returned to Spain; but the seven named above
sailed westward, and their destination became a mystery, very
exciting for some time to the American mind. They might
attempt to surprise some American coast city; they might
intercept the battle-ship "Oregon," then making her way from
the Pacific coast, by the long circuit around Cape Horn; they
might have some plan for breaking the Cuban blockade. Acting
on the latter conjecture, and surmising that Porto Rico would
be chosen for the Spanish naval base, Admiral Sampson moved in
that direction to seek them. He attacked the forts at San Juan
(May 12), and satisfied himself that no fleet was in the bay.

The truth was that Cervera was then just entering the
Caribbean Sea, considerably to the south of Sampson's search.
He touched at the French island of Martinique, and at the
Dutch island of Curaçoa, and then slipped across to Santiago
de Cuba, where he was to be overtaken by his fate. In the long
hill-sheltered bay, with a narrow entrance, which forms this
excellent Cuban harbor, the Spanish fleet was so hidden that
nearly a fortnight passed before its whereabouts could be
fully ascertained. It was not until May 20 that a blockade of
Santiago was established by a flying squadron of the American
fleet, under Commodore Schley, with certainty that the
squadron of Cervera was harbored there. On the 1st of June,
Admiral Sampson arrived on the scene, with a stronger naval
force, and took command. To attempt to force the narrow
entrance of the harbor, strongly fortified and thickly mined
as it was, and attack the Spanish fleet in the bay, was not
deemed practicable. The course resolved upon was to hold the
enemy fast in the shelter he had sought, until Santiago could
be taken, by a land attack. In pursuance of this plan, an
exploit of splendid daring was performed, in the early morning
of June 3, by a young officer, Lieutenant Richmond Pearson
Hobson, with a crew of seven volunteers, who placed and sank a
huge coaling ship, the "Merrimac," in the channel that leads
into Santiago Bay. The following is Admiral Sampson's report
of the undertaking and its achievement:

"Before coming here, I decided to make the harbor entrance

secure against the possibility of egress of the Spanish ships
by obstructing the narrow part of the entrance by sinking a
collier at that point. Upon calling upon Mr. Hobson for his
professional opinion as to a sure method of sinking the ship,
he manifested a most lively interest in the problem. After
several days' consideration he presented a solution which he
considered would insure the immediate sinking of the ship when
she had reached the desired point in the channel. This plan we
prepared for before we reached Santiago. This plan included
ten electric torpedoes on the outside of the ship, each of 78
pounds of gunpowder, sinking the ship partially before going
in, cutting the sea valves, and opening the cargo ports. The
plan contemplated a crew of only seven men and Mr. Hobson, who
begged that it might be intrusted to him. The anchor chains
were ranged upon deck for both the anchors, forward and aft,
the plan including the anchoring of the ship almost
automatically. As soon as I reached Santiago and had the
collier to work upon the details were commenced and diligently
prosecuted, hoping to complete them in one day, as the moon
and tide served best the first night after our arrival.
Notwithstanding every effort, the hour of 4 o'clock in the
morning arrived and the preparations were scarcely completed.
After a careful inspection of the final preparations I was
forced to relinquish the plan for that morning, as dawn was
breaking. Mr. Hobson begged to try it at all hazards.

"This morning proved more propitious, as a prompt start could

 be made. Nothing could have been more gallantly executed. We
waited impatiently after the firing by the Spaniards had
ceased. When they did not reappear from the harbor at 6
o'clock I feared they had all perished. A steam launch, which
had been sent in charge of Naval Cadet Powell to rescue the
men, appeared at this time, coming out under a persistent fire
from the batteries, but brought none of the crew. A careful
inspection of the harbor from this ship showed that the
'Merrimac' had been sunk in the channel somewhat farther in
than had been intended.
{596}
This afternoon the chief of staff of Admiral Cervera came out
under a flag of truce with a letter from the Admiral extolling
the bravery of the crew in an unusual manner. I can not myself
too earnestly express my appreciation of the conduct of Mr.
Hobson and his gallant crew. I venture to say that a more
brave and daring thing has not been done since Cushing blew up
the 'Albemarle.'" The sunken ship did not actually block the
channel; but that fact takes nothing from the gallantry of the
exploit. Why the intended spot in the channel was missed was
explained by Lieutenant Hobson in a statement which he
afterwards made: "When the 'Merrimac' poked her nose into the
channel," says the Lieutenant, "our troubles commenced. The
deadly silence was broken by the swash of a small boat
approaching us from the shore. I made her out to be a picket
boat. She ran close up under the stern of the 'Merrimac' and
fired several shots from what seemed to be 3 pounder guns. The
'Merrimac's' rudder was carried away by this fire. That is why
the collier was not sunk across the channel. We did not discover
the loss of the rudder until Murphy [the volunteer assigned to
that duty] had cast anchor. We then found that the 'Merrimac'
would not answer to the helm and were compelled to make the
best of the situation. … Submarine mines and torpedoes were
exploded all around us, adding to the excitement. The mines
did no damage, although we could hear the rumbling and feel
the ship tremble. We were running without lights, and only the
darkness saved us from utter destruction. When the ship was in
the desired position and we found that the rudder was gone, I
called the men on deck. While they were launching the
catamaran I touched off the explosives. At the same time two
torpedoes, fired by the 'Reina Mercedes,' struck the
'Merrimac' amidships. I can not say whether our own explosives
or the Spanish torpedoes did the work, but the 'Merrimac' was
lifted out of the water, and almost rent asunder."

What followed, in the experience of the crew, when their

vessel went down, is described as follows by Lieutenant
Hobson, in a narrative of "The Sinking of the Merrimac," which
he published at a later day: "The stricken vessel now reeled
to port. Some one said: 'She is going to turn over on us,
sir,' to which I replied: 'No; she will right herself in
sinking, and we shall be the last spot to go under.' The
firing suddenly ceased. The vessel lowered her head like a
faithful animal, proudly aware of its sacrifice, bowed below
the surface, and plunged forward. The stern rose and heeled
heavily; it stood for a moment, shuddering, then started
downward, righting as it went. A great rush of water came up
the gangway, seething and gurgling out of the deck. The mass
was whirling from right to left 'against the sun'; it seized
us and threw us against the bulwarks, then over the rail. Two
were swept forward as if by a momentary recession, and one was
carried down into a coal-bunker—luckless Kelly. In a moment,
however, with increased force, the water shot him up out of
the same hole and swept him among us. The bulwarks
disappeared. A sweeping vortex whirled above. We charged about
with casks, cans, and spars, the incomplete stripping having
left quantities on the deck. The life-preservers stood us in
good stead, preventing chests from being crushed, as well as
buoying us on the surface; for spars came end on like
battering-rams, and the sharp corners of tin cans struck us
heavily. … When we looked for the life-boat we found that it
had been carried away. The catamaran was the largest piece of
floating debris; we assembled about it. The line suspending it
from the cargo-boom held and anchored us to the ship, though
barely long enough to reach the surface, causing the raft to
turn over and set us scrambling as the line came taut.

"The firing had ceased. It was evident the enemy had not seen
us in the general mass of moving objects; but soon the tide
began to drift these away, and we were being left alone with
the catamaran. The men were directed to cling close in, bodies
below and only heads out, close under the edges, and were
directed not to speak above a whisper, for the destroyer was
near at hand, and boats were passing near. We mustered; all
were present, and direction was given to remain as we were
till further orders, for I was sure that in due time after
daylight a responsible officer would come out to reconnoiter.
It was evident that we could not swim against the tide to
reach the entrance. Moreover, the shores were lined with
troops, and the small boats were looking for victims that
might escape from the vessel. The only chance lay in remaining
undiscovered until the coming of the reconnoitering boat, to
which, perhaps, we might surrender without being fired on. …
The air was chilly and the water positively cold. In less than
five minutes our teeth were chattering; so loud, indeed, did
they chatter that it seemed the destroyer or the boats would
hear. … We remained there probably an hour."

At daylight a steam launch approached, and was hailed by

Lieutenant Hobson, who judged that there must be officers on
board to whom it would be safe to surrender. He was more than
right. The commander of the launch was Admiral Cervera, in
person, who took the nearly exhausted men from the water and
treated them with great kindness, admiring the bravery of
their exploit, and sending a flag of truce to Admiral Sampson
to announce their safety. They were taken aboard the 'Reina
Mercedes,' and, as prisoners of war, were confined at first in
Morro Castle, and afterwards in the city. It so happened that
they were locked in the Morro during a bombardment of the
Spanish coast defences and fleet by ten of our vessels on June
6th, when about 1,500 projectiles were fired; and much anxiety
 and indignation were expressed in this country in view of that
circumstance; but Mr. Ramsden, British consul at Santiago,
explained in a despatch that they were removed as soon as
lodgings could be prepared in the barracks—actually on June
7th. They were released on July 6th in exchange for prisoners
captured by our forces.

{597}

UNITED STATES OF AMERICA: A. D. 1898 (April-July).

War with Spain,
Destruction of the Spanish fleet in Manila Bay.
Despatches of Admiral Dewey.
His relations with Aguinaldo, the insurgent chief.
Arrival of American troops for the occupation of the city.

Commodore George Dewey, commanding the Asiatic Squadron, then

awaiting orders at Hongkong, received on the 25th of April the
following despatch by cable from the Secretary of the Navy: "War
has commenced between the United States and Spain. Proceed at
once to Philippine Islands. Commence operations at once,
particularly against the Spanish fleet. You must capture
vessels or destroy. Use utmost endeavors." On the sixth day
after receiving these orders (namely on May 1st), he was able
to report from Manila, by a telegram sent from Hongkong on the
7th: "The squadron arrived at Manila at daybreak this morning.
Immediately engaged enemy and destroyed the following Spanish
vessels: 'Reina Christina,' 'Castillia,' 'Don Antonio de
Biloa,' 'Don Juan de Austria,' 'Isla de Luzon,' 'Isla de
Cuba,' 'General Lezo,' 'Marques del Duaro,' 'El Curreo,'
'Velasco,' one transport, 'Isla de Mandano,' water battery at
Cavite. I shall destroy Cavite arsenal dispensatory. The
squadron is uninjured. Few men were slightly wounded. I
request the Department will send immediately from San
Francisco fast steamer with ammunition. The only means of
telegraphing is to the American consul at Hongkong."
In due time the post brought particulars of the action, in the
following report from Commodore Dewey, dated May 4: "The
squadron left Mirs Bay, [China] on April 27, immediately on
the arrival of Mr. O. F. Williams, United States consul at
Manila, who brought important information and who accompanies
the squadron. Arrived off Bolinao on the morning of April 30
and, finding no vessels there, proceeded down the coast and
arrived off the entrance to Manila Bay on the same afternoon.
The 'Boston' and 'Concord' were sent to reconnoiter Port
Subic, I having been informed that the enemy intended to take
position there. A thorough search of the port was made by the
'Boston' and 'Concord,' but the Spanish fleet was not found,
although, from a letter afterwards found in the arsenal (
inclosed with translation), it appears that it had been their
intention to go there. Entered the Boca Grande, or south
channel, at 11.30 p. m., steaming in column at distance at 8
knots. After half the squadron had passed, a battery on the
south side of the channel opened fire, none of the shots
taking effect. The 'Boston' and 'McCulloch' returned the fire.
The squadron proceeded across the bay at slow speed, and
arrived off Manila at daybreak, and was fired upon at 5.15 a.
m. by three batteries at Manila and two at Cavite and by the
Spanish fleet anchored in an approximately east and west line
across the mouth of Bakor Bay, with their left in shoal water
in Canacao Bay. The squadron then proceeded to the attack, the
flagship 'Olympia,' under my personal direction, leading,
followed at distance by the 'Baltimore,' 'Raleigh,' 'Petrel,'
'Concord,' and 'Boston,' in the order named, which formation
was maintained throughout the action. The squadron opened fire
at 5.41 a. m. While advancing to the attack, two mines were
exploded ahead of the flagship, too far to be effective. The
squadron maintained a continuous and precise fire at ranges
varying from 5,000 to 2,000 yards, countermarching in a line
approximately parallel to that of the Spanish fleet. The
enemy's fire was vigorous, but generally ineffective.

"Early in the engagement two launches put out toward the

'Olympia' with the apparent intention of using torpedoes. One
was sunk and the other disabled by our fire and beached before
an opportunity occurred to fire torpedoes. At 7 a. m. the Spanish
flagship 'Reina Christina' made a desperate attempt to leave
the line and come out to engage at short range, but was
received with such galling fire, the entire battery of the
'Olympia' being concentrated upon her, that she was barely
able to return to the shelter of the point. The fires started
in her by our shell at this time were not extinguished until
she sank. At 7.35 a. m., it having been erroneously reported
to me that only 15 rounds per gun remained for the 5-inch
rapid-fire battery, I ceased firing and withdrew the squadron
for consultation and a redistribution of ammunition, if
necessary. The three batteries at Manila had kept up a
continuous fire from the beginning of the engagement, which
fire was not returned by this squadron. The first of these
batteries was situated on the south mole head at the entrance
to the Pasig River, the second on the south bastion of the
walled city of Manila, and the third at Malate, about one-ha]f
mile farther south. At this point I sent a message to the
Governor-General to the effect that if the batteries did not
cease firing the city would be shelled. This had the effect of
silencing them.

"At 11.16 a. m., finding that the report of scarcity of

ammunition was incorrect, I returned with the squadron to the
attack. By this time the flagship and almost the entire
Spanish fleet were in flames, and at 12.30 p. m. the squadron
ceased firing, the batteries being silenced and the ships
sunk, burnt, and deserted. At 12.40 p. m. the squadron
returned and anchored off Manila, the 'Petrel' being left
behind to complete the destruction of the smaller gunboats,
which were behind the point of Cavite. This duty was performed
by Commander E. P. Wood in the most expeditious and complete
manner possible. The Spanish lost the following vessels:
Sunk—'Reina Christina,' 'Castillia,' 'Don Antonio de Ulloa.'
Burnt—'Don Juan de Austria,' 'Isla de Luzon,' 'Isla de Cuba,'
 'General Lezo,' 'Marques del Duaro,' 'El Correo,' 'Velasco,'
and 'Isla Mindanao,' (transport). Captured—'Rapido,' and
'Hercules' (tugs), and several small launches. I am unable to
obtain complete accounts of the enemy's killed and wounded,
but believe their loss to be very heavy. The 'Reina Christina'
alone had 150 killed, including the captain, and 90 wounded.

"I am happy to report that the damage done to the squadron

under my command was inconsiderable. There were none killed,
and only 7 men in the squadron very slightly wounded. As will
be seen by the reports of the commanding officers which are
herewith inclosed, several of the vessels were struck and even
penetrated, but the damage was of the slightest, and the
squadron is in as good condition now as before the battle. I
beg to state to the Department that I doubt if any commander
in chief, under similar circumstances, was ever served by more
loyal, efficient, and gallant captains than those of the
squadron now under my command. … On May 2, the day following
the engagement, the squadron again went to Cavite, where it
remains. A landing party was sent to destroy the guns and
magazines of the batteries there. … On the 3d the military
forces evacuated the Cavite Arsenal, which was taken
possession of by a landing party."

{598}

Promptly in response to this report of his victory, a joint

resolution of thanks to Commodore Dewey and his officers and
men, by the two Houses of Congress, was despatched to them,
with announcement to the former of his promotion to the rank
of rear-admiral. The admiral replied, on the 13th, from
Cavite, making due acknowledgments, and adding: "I am
maintaining strict blockade of Manila by sea, and believe
rebels are hemming in by land, although they are inactive and
making no demonstrations. Great scarcity of provisions in the
city. I believe the Spanish Governor-General will be obliged
to surrender soon. I can take Manila at any moment. To retain
possession and thus control Philippine Islands would require,
in my best judgment, a well equipped force of 5,000 men."

On the 20th he reported, further: "Aguinaldo, the rebel

commander in chief, was brought down by the 'McCulloch' [from
Hongkong]. Organizing forces near Cavite and may render
assistance that will be valuable." On the 27th of June, in
reply to inquiries from the Navy Department, he explained his
relations with Aguinaldo, as follows: "Aguinaldo, insurgent
leader, with thirteen of his staff, arrived May 19, by
permission, on 'Nanshan.' Established self Cavite, outside
arsenal, under the protection of our guns, and organized his
army. I have had several conferences with him, generally of a
personal nature. Consistently I have refrained from assisting
him in any way with the force under my command, and on several
occasions I have declined requests that I should do so,
telling him the squadron could not act until the arrival of
the United States troops. At the same time I have given him to
understand that I consider insurgents as friends, being
opposed to a common enemy. He has gone to attend a meeting of
insurgent leaders for the purpose of forming a civil
government. Aguinaldo has acted independently of the squadron,
but has kept me advised of his progress, which has been
wonderful. I have allowed to pass by water recruits, arms, and
ammunition, and to take such Spanish arms and ammunition from
the arsenal as he needed. Have advised frequently to conduct
the war humanely, which he has done invariably. My relations
with him are cordial, but I am not in his confidence. The
United States has not been bound in any way to assist
insurgents by any act or promises, and he is not, to my
knowledge, committed to assist us. I believe he expects to
capture Manila without my assistance, but doubt ability, they
not yet having many guns. In my opinion these people are far
superior in their intelligence and more capable of
self-government than the natives of Cuba, and I am familiar
with both races."
 Report of the Secretary of the Navy, 1898,
volume 2, pages 67-72 and 103.

On the 30th of June, troops sent from San Francisco, to the

number of 2,500 officers and men, commanded by General T. M.
Anderson, arrived in Manila Bay, to co-operate with the navy
in taking Manila and occupying the city, when taken. They were
followed by a second expeditionary force, under General F. V.
Greene, which arrived July 17, and by a third, July 25 and 31,
with which came General Merritt, commanding the corps and the
Department of the Pacific. General Merritt's army then
numbered nearly 11,000 men, and it was increased during the
next few weeks to more than 15,000.

Reports of the War Department, 1898,

volume 1, part 2, page 499.

An English officer, Major Younghusband, who visited Manila at

this time, remarked: "It may, perhaps, with some confidence be
prophesied that when the cold fit, which will in due course
follow the warmth of the present enthusiasm, falls on the
nation, America will discover that the true parting of the
ways was … in having allowed Admiral Dewey to do more than
defeat the Spanish fleet and exact a heavy indemnity from the
city of Manila before sailing away." It would seem to be more
true, however, to say that the parting of the ways was when a
military expedition was sent from San Francisco to Manila, to
be landed, for the capture of the city and for the occupation
of the islands. It is claimed with reason that Admiral Dewey
could not "sail away," after the destruction of the Spanish
ships, because he needed the harbor he had seized, his fleet
having lost most of the privileges it had formerly been using
in neutral ports, when it became the fleet of a belligerent
power. To retain possession of Manila Bay while it was needed
by the American fleet was clearly a measure connected
legitimately with the general conduct of the war against
Spain. But it is difficult to see that the landing of soldiers
 on the island of Luzon and the capture of the city of Manila
added anything to the security with which the Bay was held for
the purposes of Admiral Dewey's fleet, or that it contributed
at all to the weakening of Spain in the war, and to the rescue
of Cuba from Spanish misrule. For two months, from the first
day of May until the last day of June, before a soldier
arrived, and for six weeks longer, before Manila surrendered,
Admiral Dewey appears to have been as fully and as
conveniently in possession of all the advantages that
harborage there could give him, as he was after the Spanish
flag had been lowered in the city and on the island.
Therefore, the American conquest of the Philippines does not
readily connect itself with the war for the liberation of
Cuba, as a necessary part of it, but presents itself to the
mind as a somewhat supplementary enterprise, undertaken with
objects of its own.

UNITED STATES OF AMERICA: A. D. 1898 (May-August).

Conduct of English and German naval officers at Manila.

While Admiral Dewey was holding Manila Bay, before the taking
of the city, there were many rumors and exciting stories
afloat, of offensive behavior towards the American fleet by
commanders of German war ships that were sent to the scene. As
far as possible, the facts were officially suppressed, in
order to avoid a quarrel between the two countries, and no
authoritative account of what occurred can be found. But some
incidents obtained publicity which are probably true in the
main. The first unpleasant happening appears to have been the
arrival in Manila Bay of a German naval vessel, which steamed
in with entire disregard of the blockading fleet, as though
the port was its own. Thereupon Admiral Dewey sent a forcible
reminder to the captain that he was intruding upon a blockade,
by firing a shot across his bow, and ordering him to heave to.
The German captain, in a rage, is said to have called on the
commanding officer of a British squadron that was in the Bay,
for advice as to what he should do, and was told that he owed
 the American Admiral an apology for his violation of naval
etiquette, well settled for such circumstances as those
existing in Manila Bay. According to the story, the British
commander, Captain Sir Edward Chichester, himself on the best
of terms with Admiral Dewey, visited the latter, on behalf of
the German officer, and made the matter smooth.
{599}
But, either through indiscretion of his own, or because he had
instructions to interfere as much as possible with the
proceedings of the Americans, the German commander continued
to pursue an offensive course. According to report, be went so
far as to stop a movement which Aguinaldo (then a recognized
ally of the United States) was making, to take possession of a
certain island, and to capture some Spaniards who were on it.
This provoked Admiral Dewey to a demonstration against him so
threatening that he drew back in haste, and the island was
occupied.

According to all accounts, Admiral Dewey showed unsurpassed

wisdom and dignity in meeting and checking these offensive
proceedings without allowing them to become a cause of
international quarrel; and he was happily aided in doing so by
the hearty support of the British naval commander. According
to still another report of the time, a German admiral, who had
come upon the scene, meditated an interference to forbid the
bombarding of Manila, when the city was about to be attacked,
and, calling upon Sir Edward Chichester to ascertain what
action the latter would take, was significantly told, "That is
only known to Admiral Dewey and myself,"—which convinced him
that his project was not wise. An English writer has related,
with much satisfaction, that when Sir Edward's ship, the
"Immortalité," finally steamed out of Manila Bay, returning to
Hong Kong, "every ship in the American fleet manned her yards
and gave the British man-of-war three cheers as she passed
along; and she with the answering signal, 'thank you,' flying
at her mast-head, went on her way."
UNITED STATES OF AMERICA: A. D. 1898 (June).
Act creating the United States Industrial Commission.

An Act "authorizing the appointment of a non-partisan

Commission to collate information and to consider and
recommend legislation to meet the problems presented by labor,
agriculture, and capital," was passed by Congress and approved
by the President June 18, 1898. It provided:

"That a commission is hereby created, to be called the

'Industrial Commission,' to be composed as follows. Five
members of the Senate, to be appointed by the presiding
officer thereof; five members of the House of Representatives,
to be appointed by the Speaker, and nine other persons, who shall
fairly represent the different industries and employments, to
be appointed by the President, by and with the advice and
consent of the Senate. … That it shall be the duty of this
commission to investigate questions pertaining to immigration,
to labor, to agriculture, to manufacturing, and to business,
and to report to Congress and to suggest such legislation as
it may deem best upon these subjects. … That it shall furnish
such information and suggest such laws as may be made a basis
for uniform legislation by the various States of the Union, in
order to harmonize conflicting interests and to be equitable
to the laborer, the employer, the producer, and the consumer.
… That the commission shall give reasonable time for hearings,
if deemed necessary, and if necessary it may appoint a
subcommission or subcommissions of its own members to make
investigation in any part of the United States, and it shall
be allowed actual necessary expenses for the same. It shall
have the authority to send for persons and papers and to
administer oaths and affirmations. … That it may report from
time to time to the Congress of the United States, and shall
at the conclusion of its labors submit a final report."

The Commission thus contemplated was duly appointed by the

President, and organized by the election of Senator Kyle for
its chairman. For the scope and plan of its investigations a
committee on procedure made the following recommendations,
which were adopted by the Commission and which have been
followed in what it has done:

"The main work of the Commission may … be said to be to study

and compare existing laws bearing upon industrial conditions,
here and elsewhere, to ascertain by competent testimony
wherein they are deficient, defective, inoperative, or
oppressive, and to recommend such remedial statutes as will
tend not only to make the conditions of industry more uniform
as between the several States, but to remove such existing
sources or causes of discontent, inequality, and injustice as
can be reached and regulated through legislation. … In order
to secure satisfactory results, it appears to your committee
imperatively necessary that the work shall be confined
strictly to the main purpose, viz, of ascertaining the nature
and effects of existing legislation, and the nature of
remedial legislation which may be necessary or desirable to
equalize conditions in industry and to remove any just grounds
of complaint on the part of either labor or capital or of the
people at large.

"To facilitate the progress of the work we recommend the

division of the Commission into four subcommissions of five
members each, to be severally charged with the investigation
of present conditions and the formulation of remedial
suggestions in the following branches of industry:

1. On agriculture and agricultural labor.

2. On the conditions of labor and capital employed in

manufacturing and general business.

3. On the conditions of labor and capital employed in mining.

4. On transportation.
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