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In addition to the disbursement of funds allotted from the insular treasury for the operation and maintenance of the telegraphic service of the department, this office is charged with the collection and accounting for of the revenues of the military telegraph offices of the service. These revenues are divided under two heads, viz, "This line receipts" and "Other line receipts." "This line receipts" being the tolls derived from messages handled entirely by the Signal Corps lines and the Signal Corps' proportion of tolls on messages originating at offices on their lines but requiring transfer to some connecting line for ultimate delivery; while the "Other line receipts" are the proportion of the tolls due to the connecting line for their part of the joint service performed on messages of the latter class.

These receipts are classified by the auditor of the service. The "This line receipts" are deposited to the credit of the treasurer of the island, while the "Other line receipts" are paid over to the several connecting lines on whose account they were collected.

The following is a statement of the telegraph receipts and the disposition of same for the past fiscal year:

Receipts, deposits, and disbursements of funds, telegraph line.—Receipts for the fiscal year ending June 30, 1901.

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P. S.-In addition to the above statement of the disbursements made from Habana on behalf of the Signal Corps for the fiscal year 1901 the sum of $30,209.86 was placed to the credit of Lieut. John J. Ryan, signal officer, United States Volunteers, at Santiago, during the period from August 1 to November 30, 1900, of which amount $29,052.24 was disbursed by him for salaries and miscellaneous expenses of the service and the balance of $1,157.62 was transferred to the disbursing clerk of the corps at Habana. Owing to no report of these disbursements having been rendered by Lieutenant Ryan and his retained papers having been carried with him at the time of his departure from Cuba, no itemized report of these expenditures can be made.

APPENDIX F.

OFFICE OF THE CHIEF SIGNAL OFFICER, DEPARTMENT OF CUBA,
Habana, Cuba, August 3, 1901.

SIR: In accordance with instructions of the chief signal officer, Department of Cuba, I have the honor to submit the following report on the auditing of telegraph and cable accounts of the Government telegraph lines for the fiscal year ending June 30, 1901:

As stated in the last Annual Report of the Chief Signal Officer, the Government lines in Cuba are, from an auditing standpoint, operated under the same system as that of the Western Union Telegraph Company, and, as far as practicable, closely follow the larger telegraph companies in their methods of bookkeeping.

The operations of the lines in Cuba during the past fiscal year, as shown by the traffic statement attached hereto, reveal a marked increase in the number of messages handled, and a consequent increase in line receipts near to 40 per cent over last year. This can be accounted for by the extension of the lines and equipment, together with the consequent improvement in the facilities afforded for the prompt dispatch of the increased traffic. In this respect the telegraph service can be compared to a barometer by which the fluctuations of the commerce of the island can be determined, so that our receipts for the fiscal year just ending, compared with previous reports, tend to show that the industries of the island are being rapidly reestablished along improved methods, as indicated by the additional patronage given to the telegraph service.

During the fiscal year just ending the Government lines handled 237,972 commercial telegrams, collecting tolls (“This line”) amounting to $79,726.63, an average toll per message of 35 cents; 159,719 official telegrams were transmitted for the account of the Government (for which no billing has been made), at a tariff valuation of $113,597.81; average valuation of each message, 71 cents.

If the Government lines had not been available for the last-named service, rendering it necessary to transmit all official telegrams via the lines of the local cable company, it is estimated that the cable tolls would have amounted to $269,925.11, figuring on a basis of $1.69 per message, as found by reference to official accounts from the Cuba Submarine Telegraph Company, audited by this department.

Having reference to the auditing of the accounts received from connecting lines for services rendered in the transmission of official telegrams, would state that all accounts up to and including December, 1900, have been audited and settled, leaving on hand (audited and ready for settlement) accounts covering service for the first quarter of 1901. The payment of the last mentioned will complete all accounts on hand for the above-named service.

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The above (June complete) shows increase over previous fiscal year of $22,237. 48.

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Commercial messages handled..

Average tolls collected for each message ("This line" proportion).

O. B. messages transmitted..
Valuation at tariff rates...

Average valuation each message.

RECAPITULATION.

237, 972 $0.33 159, 719 $113, 597.81 $0.71

Commercial messages handled

O. B. and W. D. messages handled

Total..

NOTE. "Other line" receipts, $22,664. 61.

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Reference to "Other line" movement will show disposition, leaving balance carried forward of $159.67.

Statement showing for each month the telegraph-line receipts, number of messages handled, and money valuation of all Government telegrams (at tariff rates).

TELEGRAPH LINE RECEIPTS, FISCAL YEAR ENDING JUNE 30, 1901.

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TRAFFIC TRANSFERRED TO INTERNATIONAL OCEAN TELEGRAPH COMPANY, HABANA.

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Other line movement, fiscal year June 30, 1901-Continued.

TRAFFIC TRANSFERRED TO CUBA SUBMARINE TELEGRAPH COMPANY, AT ALL STATIONS

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TRAFFIC TRANSFERRED TO WEST INDIA PANAMA TELEGRAPH COMPANY, SANTIAGO,

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FINAL REPORT OF MAJ. W. A. GLASSFORD, SIGNAL CORPS, ON OPERATIONS OF MILITARY TELEGRAPH LINES IN PORTO RICO.

WASHINGTON, D. C., April 11, 1901.

SIR: I have the honor to submit a résumé of operations pertaining to the United States military telegraph lines, Department of Porto Rico, since July 1, 1900.

At the close of the fiscal year, June 30, 1900, the Signal Corps had completed the rebuilding of the lines that had, after long use, been destroyed by the cyclone of August 8, 1899.

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The lines thus restored were as follows:

Rebuilt. San Juan to Humacao via Jajardo; San Juan to Ponce, double wire; Ponce to Mayaguez; San Juan to Mayaguez (completed during July, 1900).

Recovered.-Humacao to Caguas; Ponce to Arroyo; Ponce to Adjuntas; Mayaguez to Las Marias; Aguadilla to Lares; Aibonito to Barros.

Not rebuilt or recovered.-Arecibo to Adjuntas; Lares to Utuado; Arroyo to Humacao. It will be seen that with the exception of Utuado and the small towns of Yabacoa and Manaubo, the island of Porto Rico was given by the Signal Corps lines of telegraphic or telephonic communication to or through all its important towns, and a heliograph line from Jajardo light to the island of Vieques (Crab Island) that was not operated under the Spanish authorities.

That offices were not opened in smaller towns was owing to the fact that their commercial importance, measured by the business transmitted by wire, was so trivial as not to warrant the expense.

The Signal Corps had projected the rebuilding of a complete circumvallation of the island, a line across it passing through the important coffee district of Utuado, and some branches connecting towns with important industries. The apparent policy of the Government to build as few lines as possible, providing only for telegraphic communication where needed for governmental or military purposes, was adhered to. On May 1, 1900, the military government gave place to a civil one, and the War Department further discouraged building of telegraph lines; in fact, no more extension was initiated and only that under way completed.

When the civil government was installed, under act of April 12, 1900, the telegraph system continued as military lines and so was maintained and operated by the Signal Corps. The commanding general advocated its transfer to the insular authorities, and upon the discontinuance of the island of Porto Rico as a separate military department transfer was ordered and gratuity made to the island of 806.6 kilometers of line (504 miles), valued at $36,294.27, the cost of the rebuilding, not considering expense of transportation. This transfer was effected February 1, 1901.

The tools, batteries, instruments, etc., which were necessary to maintain and operate the line, being property nonexpendable and belonging to the United States, were sold to the island at invoice price. This sum amounted to $4,529.74 and was turned into the United States Treasury.

These instruments, tools, etc., were of modern pattern, used in the system known as the American Morse, and were necessary for the operation, as nearly all the Spanish instruments, tools, etc., in use at the time of the invasion of the United States Army in 1898 had disappeared, owing in a large measure to their destruction by the Spanish operators under orders from the Spanish governor-general of Porto Rico, that they might not be used by the American troops.

These telegraph lines, such as they were, under Spanish authority, had been operated in conjunction with the mail service. It may be said that all its employees were Spaniards or those in full sympathy with Spanish methods. These employees, soon after the evacuation of the troops of Spain, met and agreed to accept no employment in the United States military telegraph service whatever, or to practically boycott it. This agreement was adhered to by all the Spanish telegraphers but one throughout the entire period the Signal Corps operated the lines. This was illustrative of the universal and instinctive Spanish resistance to progressive methods that are in touch with modern scientific development. The Signal Corps administration stood ready to give place to the residents of the island provided the military authorities were in some way guaranteed that its means of telegraphic communication would be effectively continued. That the old Spanish telegraphers had only in mind the restoration of the old order of things, with the salaried places which the telegraph in their hands would imply, is evidenced by the following, which is a bill for the organization of the telegraph service in Porto Rico, and which I am informed passed the body before which introduced, but failed in the executive council:

H. B. 37.

IN THE HOUSE OF DELEGATES OF PORTO RICO,

December 11, 1900.

Messrs. Egozcue, Sanchez Morales, Serrano, Carrion, Blondet, Rodiguez, and Zechini introduced the following bill:

A BILL On the organization of the telegraph servive in Porto Rico.
Be it enacted by the legislative assembly of Porto Rico:

First. The telegraph service in Porto Rico is considered as a public expense.
Second. The legislature shall adopt the necessary measures to organize the said

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