December 1935
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Month December 1935

December 28-31, 1935

With Doria in Baguio –golf every day on Country Club or municipal links and those at Camp John Hay. Called on Colonel Dosser, Governor of the Mountain Province. He has a nice house, an Igorot mestiza  wife and lots of children. Mrs. Dosser is attractive and runs a succesful beauty parlor. Dosser and I talked over old times and how near we came to a casualty in our wild carabao hunt in Ifugao in 1915.

Big party on New Year’s eve at the Country Club, where Hausserman and Marsman were entertaining their American mining managers and engineers. We went with Peters, Mrs. Fox, Macaulay of Sun Life –etc. In the afternoon Doria and I drove around Trinidad valley and down to overlook the Benguet mining settlement.

December 28, 1935

Golf alone in a.m. Doria rode with the High Commissioner and Teahan –enjoyed it immensely but said the High Commissioner was so “mooney and difficult to talk with”– Doria refused to enter the Mansion House because Mrs. Ora Smith whose husband directs the Bulletin was there.

(Baguio). In p.m. at Quezon’s house; bridge; Quezon, Peters, Ed. Harrison & myself. Quezon is undoubtedly a brilliant bridge player tho unacquainted with many of the Culbertson calls. He listens attentively to the bids, then takes a long time to bid and places the cards with skill. As my partner he bid three no trump, was doubled and he redoubled making 3 extra tricks, all of which depended on one successful finesse –thus netting 2100 (game & rubber). He had Jake Rosenthal staying with him, who is a really devoted personal friend of his. House was full of children playing with Christmas toys.

December 27, 1935

Golf in a.m. with Doria. Bridge in p.m. with Ed. Harrison, Houghton & Thompson at the Pines Hotel. Called on the Quezons who were out and left my memorandum of the digest of Gladstone’s Irish Land Laws. Called at the Mansion House which is double the size it was in my days. Instead of a wooden second story with sawali walls between the bedrooms as formerly, it is now a really modern mansion reconstructed by Governor General Davis. Grounds and gardens are greatly extended and really well done. Saw the High Commissioner in his bedroom apparently at work in his dressing gown. He asked Doria to ride tomorrow. After dinner in Pines Hotel, an evening talk with Rafferty –my loyal friend.

December 26, 1935

Left at 7:15 a.m. alone in the motor for Baguio –arrived at 12:15 without hurry– 263 kilometers. Roads as far as Tarlac excellent with a fine new bridge on entering the province of Pangasinan. Roads in Tarlac are chiefly surfaced with gravel, and are very dusty, as is the approach to the entrance gate of Benguet (Kennon) Cañon road. Benguet road itself is badly worn on surface, tho’ each motor pays at least two pesos for entrance. Country through all the “rice provinces” is one continuous cultivation in rice and sugar, until nearing Camp One. Lots of motor busses of Pampanga and Pangasinan Transportation Companies. Signs are in English everywhere in place of the former Spanish. Baguio itself is like a “boom town” with discordant red roofs. Igorrotes are no longer much in evidence. Stores are run by slippery Chinese and equally slick lowland Filipinos –prices much higher than in Manila, and Baguio has every evidence of being a mining boom town. Saw Pascual Pacis and refused a reception in the town hall.

Doria arrived at 7:30 p.m. “all in” after a twelve hour trip from Mt. Data via Cervantes. Dangerous driving these cliff roads. They saw one motor bus which had fallen off a cliff and had caught on a pine tree –the nine passengers in it were uninjured tho the bus was suspended upside-down.

December 25, 1935

Talk with Rafael Corpus, former director of Agriculture and new President of the Philippine National Bank. He told how Wood had tried to liquidate the bank; how eventually all the money supposed by Wood to be lost in sugar mills had been made good –even Philippine Vegetable Oil paid back 50%. Said he discovered more and more how the economic basis for the country was laid during my administration.

Sugar– said it was O.K. for seven years.

Hemp– said Sumatra’s attempt to rival the Philippines had failed.

Rice– said next year would be worse than this; that the floods in Pangasinan etc., had ruined the crop; that sugar had absorbed much of the rice land.

Iron– said Economic Council must establish a steel industry here –Japan was now taking 300,000 tons of iron ore yearly from Paracale in the Philippines– that our coal in Mindanao was just right for iron, but was too hard for ships. We had all the materials at hand, and even if it would compete with the United States we must insist on it. It was also a matter of national defense. We need a mineral survey, particularly of the vast and untouched iron fields of Surigao, reserved for the government.

Government of Quezon– said it had taken well so far.

Roy Howard article– said the fear of Japan was very real and the commercial classes would like an anchor –either the United States or England. Said fear of Japan did not penetrate to the common people in the provinces.

Sakdal & Communism– a very real problem –said some Filipinos had gone to the International in Russia and had come back with money. General Valdes told him one of these leaders had 50,000 pesos. Valdes confirmed this to Corpus.

Japanese– said they were very bold; that they were watching the development of the Davao matter; that they had been allowed by connivance or by supineness of Filipino officials to get these lands illegally and should not be blamed. Corpus says it was the Filipinos’ own fault.

Christmas dinner (lunch) with the Headquarters Commander of the 31st Infantry, the only regiment of American soldiers left in the Philippines. Excellent home food and a far better entertainment than last Christmas at Luxor in Egypt. Captain & Mrs. Lussier and Captain & Mrs. Howell.

Dinner with Mr. & Mrs. Samuel Gaches. Talk with old Colonel J.N. Wolfson who told me that McKinley’s secret instructions to Taft when he sent him out here to the Philippines as the first Civil Governor were to prepare the Filipinos as rapidly as possible for self-government –hence the “little brown brother” (and Taft’s fight for power against the United States army). Colonel Wolfson also told me of being retained recently (he is over 80 years of age) by 81 inhabitants from Tarlac who had been ousted from their lands by a local cacique under claim of a prior Spanish title, even tho some of them had Torrens titles. The judge of first instance in Tarlac had decided in favor of the cacique —Wolfson got this reversed in the Philippine Supreme Court.

December 24, 1935

Talk with Colonel Paulino Santos, director of Prisons, who assured me he believed Bilibid would be moved to the country at last –he would make his 3,000 prisoners work there and make money for the government. Touching on another subject, he strongly advocated a big river-control work for the Agno and Rio Grande Rivers, especially on the Candaba swamp project. Said they must be undertaken even if it takes one hundred years to complete –to assure the people they will not lose their crops by floods as has so often happened. Santos also advocated a coconut products industry here. Said the site of Bilibid is worth two million pesos, but should be made a park.

Big typhoon today.

December 23, 1935

Ramon Fernandez and Assemblyman Rodriguez of Cebu wished to take up with me a question of steamer coal in Cebu, but I told them I was not appointed “Adviser on Transportation,” but simply Adviser, and had no authority to take up matters unless they were especially designated by the President. Fernandez told me he was going up to Baguio with Quezon and would ask him about it.

December 22, 1935

Talk at the lunch table with Foley of Philippine National Bank; said he had seen the President the afternoon before; Quezon was much preoccupied with the Friar Land crisis. I asked Foley whether the Philippines could raise money on a bond issue to purchase these lands; he said it would be very difficult and that the Philippine National Bank would have to stand ready to take up the issue –he added that the rich men like A. Soriano and the Elizaldes would have to take part of the issue “and they won’t like it.”


December 21, 1935

Contribution to the Tribune by Pedro Abad Santos commenting on Roy Howard’s article. A very shrewd analysis of the present situation. So far as Quezon is concerned, I do not really know his views of the future –I discard that part of Santos’ article which deals with the working classes, for while now suffering from economic depression, they are certainly on a much higher standard of living than any others in tropical Asia.

Conversation at his office with J. Ross. He supplied the key to the puzzle –everything clicks now and falls into place:

(a) Quezon’s reticence with me

(b) The Roy Howard interview

(c) The good impression wished to be created by the purchase of Manila RR. bonds from the English Company

(d) The unwillingness of Blunt to accept Quezon’s house in Pasay at a very reduced rental

(e) The embarrassment of Blunt over the interview the London Times man (Stevents) had with Quezon etc., etc.

(f) The anxious enquiries Quezon made of me as to the utter dependence of England upon holding her Empire together etc., etc.

This is haute politique indeed. J. Ross told me that Quezon is in favour of independence if that is safe (so is J. Ross!) that at the moment he is badly scared over Japan; that England appears to be an “anchor to windward” (words mine); that three years ago Quezon told him that the United States was going to “kick us out” and Quezon was then in favour of going to London to talk with the Foreign Office; J. Ross told him that the Foreign Office would not talk with him. That Colonel Frank Hodsoll told J. Ross that he (Hodsoll) had been asked by Quezon to talk to the British Ambassador in Washington and had done so.

J. Ross and I agreed on the reasons for the attacks on me here –that I was believed to be in favor of quick independence and that they believed my own Government here had damaged business (Wood-Forbes Report); J. Ross thought it would die down soon. Elizalde’s opposition to me was due to his jealous wish to have a controlling influence over Quezon.

The most surprising symptom I have found here this time is the utter lack of self-confidence among the Filipinos!

J. Ross asked me if I did not think Quezon could lead his people into a Protectorate –I said he could lead some of them, but that denial of independence was a cartload of dynamite.

Doria left at noon en route for the Mt. Data Christmas party of Heine Schradieck of the Standard Oil. Amazingly enough, I remember how I had interned Schradieck together with the other Germans in the Philippines when we entered the World War in 1917.

Saw Secretary of Agriculture Rodriguez, former Governor of the Province of Rizal, concerning the dispute between Binangonan and Cadorno municipalities.

Saw the President at Malacañan at 6 p.m.; he was about to start for the National Assembly which was ready to adjourn. He was in the barber chair now established in the Palace and he received my account of my interview with Blunt with alert interest. His mind was taken up, however, with a pending dispute between the Jesuit Friars and their tenants on some unspecified hacienda. He said he wanted me to help him on it, but what he really desired was a sympathetic audience before which to express his own views. Secretary Yulo was waiting in the next room and joined in the conversation. Quezon said he had sent today for Araneta, the lawyer for the Jesuit Corporation, to prepare the ground before he should see the Administrator of the Corporation tomorrow; that agrarian troubles on this hacienda might result in bloodshed; that he (Quezon) was in favour of justice rather than the law; that these families of tenants had cleared the land and had lived on it for generations –that they practically owned it and had more moral right there than the Friar owners who had not paid originally for the land and had not spent any money on its development. (I interjected the view that as the Friar orders had then been the government they had practically given these lands to themselves, as was customary in Frailandia –that the situation was like a chapter out of Noli Me Tangere –“yes,” Quezon said, “except that now there is no Spanish Governor General to order out the troops.”) Quezon said he told Araneta he would not evict the tenants who had not paid rents and that he would not send the Constabulary to defend the Administrator; that, pending the purchase by the Government of these Friar lands (or alternative measures) he considered the tenants had more moral rights than the Friars –that if these people were dispossessed more “communism” would result; that he did not care to make any public statement of his views, because in this case there might be outbreaks instigated by demagogues.

During the morning, Quezon had signed the National Defense Act in the presence of Osmeña and MacArthur –movie taken of same.

Jim Ross told me he understood “Mike” Elizalde was out as head of the National Development Co.

December 20, 1935

7 p.m. in Malacañan with the President who was in good health and spirits. I complemented him on his message on economic planning –he enquired whether it has been well received in the foreign community. I gave him Colin Hoskins’ plan on organization for the economic council &c. Then I asked him what was the matter with the Manila RR. bond purchase? He said it has been held up to enquire of the United States Government as to whether they considered that the Philippine Government was resposible for the principal of these bonds; they had replied thru the High Commissioner in the affirmative –so Quezon said the bill would go through because this meant that the United States would act on the maturity of the bonds and seize the Customs House. He said that if the American Government had decided this Government was not responsible for the principal, he was going to say to the English that he had been in favour of purchase but the Legislature demands better terms. I told him that this Government was not responsible for principal of these bonds –that just as we had bought the railroad we could sell it. Then he said Confesor (Assemblyman) had told him of F. Theo Roger’s (of Free Press) story that I had come out here to get what I could for the English! He said that he had authorized Confesor to state the true facts in the Legislature –that this impugned his honor as well as my own– that he would put Rogers in prison if he printed such a gross libel. He asked me to bring him the memorandum on these bonds which I had prepared for him on December 6, which I did. We then talked a lot about England and the English –I told him to consult me if he had any questions up with the English, since I understood them better than most Americans who were misled by their bland manner and assumed innocence. That what they understood and respected was force and power. Quezon admires the English character. He asked me if I thought the Empire was essential to the continued existence of England as a great power and I said yes!

We then discussed colonization and land problems in the Philippines. He advocates spending money on roads to open up new sections of Mindanao, so that settlers will move in of their own accord. He does not advise spending money on settling people in a wild country; said he would provide transportation for volunteer settlers.

The President also said that instead of continuing the former cusrom of purchase of the Friar Lands in the provinces around Manila, he wanted to get fair treatment for the tenants; that previous purchases of these lands had not helped because outside speculators had intervened, and had secured the lands; he asked me to acquire a copy of Gladstone’s “F.F.F.” law for Ireland of about sixty years ago, when he settled the Irish agrarian problem. (Fixed Tenure, Fixed Rent and Freedom of Transfer). Told him I would go to ask Blunt, the English Consul General. He also asked me to get Blunt’s reaction to the interview he had given the London Times representative who came with Blunt a few days ago –not for publication– he told the Times man he would have to deny the interview if published.

We also talked over plans for the reorganization of the government. We agreed that this time time it must be a real reorganization and radical. He said he had only been in charge for a month and was already sure the present government was most inefficiently organized. He announced that he wanted me to sit with his three commissioners. He asked me which of two alternatives he should choose — (1) to have investigation & report by his three commissioners or (2) to just call in Department Secretaries and tell them they could only have so much appropriation, and must reorganize their Departments. I told him (1) was more scientific, and advised him to proceed with (1) and afterwards apply (2). I asked him how radical the reorganization was to be? –did he, for example, approve of the plan of reducing the number of provinces to 28? He said “no” –that the saving of a couple of millions would not compensate for the dimunition of energy and progress which would result. I then asked him whether he would approve of abolishing the elective city council of Manila and substituting a Board of appointed managers with the Alcalde as its chairman –latter to be elected? He said “yes.”

As I was leaving, he asked me if I would keep notes and write up an account of these months afterwards. I replied that I was already doing so. I also told that if at any time my presence became embarrassing to him on account of the attacks on me by the old imperialists, just to send me on a mission abroad and I would not come back. He replied that he and I would continue to work here together until we had accomplished something substantial.

I then went to home of A.P. Blunt, British Consul General –he did not get there until 8 o’clock, having been at work in his office, getting off in the mail all his reports on governmental development here. Promised to write the Foreign Office for “F.F.F.” on Irish lands. When asked what his reactions were to the President’s interview with the London Times, Blunt said Quezon was very broad minded, and amazingly frank. I denied that I knew what Quezon had said in the interview –Blunt said he had been embarrassed by the President’s raising the question of Roy Howard’s statement that if the United States abandoned the Philippines, the Filipinos would get under England’s wing. He said Quezon had stated he could run a better government here than anybody else had done –I agreed. As I left, Blunt asked me in a casual voice what had happened about the purchase of the Manila RR. bonds –I said there had been “a hitch.” He eagerly enquired “what hitch?” I said it had been caused by Vicente Villamin’s speech –“ah!” he said “they fear the wily English bankers, whereas our fellows would rather get this agreement now than perhaps lose everything later.” I replied that there was much to be said on each side, but I really thought the deal would go through –(it passed the Legislature just about that time).

While I was at Malacañan, Quezon talked at length about his letting out the American Justices of the Philippine Supreme Court –under the Constitution he had the power not to accept their resignations until July 1st next, and he was considering assenting to Chief Justice Avanceña’s request to retain them that long, when the Bulletin published an editorial attacking him for thinking of letting the Justices out. Thereupon he sent to Avanceña to enquire whether the six month’s retention of those Justices was essential to the Court –Chief Justice Avanceña replied he could not really say so– thus the resignations are to be accepted as of January 1st. He wrote a letter for the press explaining that he is thus conforming to the spirit of the Constitution. He says Malcolm is behind the drive –he dislikes him as unreliable. Quezon then spoke of the unparalleled generosity of the retirement gratuities given by the Filipinos to those Justices –Malcolm was to receive 60,000 pesos!

Wrote an address for the banquet tonight of the Political Science Club of the University of the Philippines. Got home to find Doria greatly upset over a scurrilous attack on me in a letter pretended to be from a Filipino to the Bulletin. I hope this campaign does not discourage both Doria & Quezon! I have never answered (nor read, if possible to avoid) any newspaper attacks!

Reception this p.m. at James Ross’. Dinner of Political Science Club of U.P. at the Cosmos Club –sat between Bocobo, President of the University and ex-Judge de Joya –speech.

December 16-19, 1935

Dull mornings in office –have not seen Quezon. Some hitch is apparent in the plan to purchase the Manila RR. bonds; the subject is hung up in the Committee.

The national defense scheme is published in full, and will gain strength as the public understands it.

Quezon appeared before the National Assembly and read a message favouring a National Economic Planning (conservatively conducted). Excellent effect.

The 18th is my 62nd birthday –not much in that fact. Feel quite serene and contented except that in my office I do not have anything to do of any importance. Hope to get busy when the committee on reorganization is started. Have put in two weeks in a study of the files and reports of recent years to get the background for reorganization.

Saw poor Gilhauser at Wak-Wak; he just lost his daughter in a motor accident in California.

Series of cocktail parties in afternoons leading up to Christmas.

December 15, 1935

Speech at 9 o’clock at the Columbian Institute before the Professional’s League. Intelligent addresses before mine by two young Filipinos –Ernesto D. Bohol, the organizer was one of them; he is very sincere and straightforward.

Polo match in p.m. –fast  & first rate. A.D. Williams told me of Quezon’s discharge some years ago of Ernest Westerhouse as head of the Manila Railroad. Said it was a rough deal. Williams thinks permanent retention of the Philippines by the United States is probable –otherwise there would be disaster! He will retire in three years, and wishes to farm on his place in Virginia.

“At home” at Justice Vickers in Santa Ana –he showed me his “first edition” of La Gironiere –which turns out to be a 2d. edition (1857). Talk with Justice Recto, who expressed pleasure in the discharge of Cotterman from the Bank Board. Said Cotterman owned the building in which the Philippine National Bank is situated, and used his influence against the construction of a new building for the bank –[unethical!]

A.D. Williams said the High Commissioner was very much upset because the first China Clipper did not show him the first deference, for the pilot went straight to Malacañan Palace to report to the President. Murphy said his entourage are evidently feeling like flat tires since he ceased to be Governor General and gave up the great executive powers of that office.

A.D. Williams further says that the Elizaldes are possibly opposed to me because they think I might be an impediment in their transportation business –i.e., shipping. He added that the Elizaldes have just resigned, from the directorate of the Polo Club because they fear pressure there from Quezon. He reported that it is now rumoured that I came out here this time to advance the interests of the English in the Manila RR. bond redemption. (Exactly contrary to facts –as usual). Says Paez insisted on resigning if the bonds are not redeemed. I feel certain we could have made a better bargain with the English; that I could have done it; and that it is legally possible to avoid paying them receipts from the “gold clause” in the bonds, and that the English know it. (N.B. Quezon asked me to prepare “advise” on this subject and then never asked for my opinion.)

December 14, 1935

Saturday –Quezon away at Canlubang, presumably staying with the Ehrmans. Garfinkel, Vargas and Nick are all dashing about trying to meet the President’s sudden decision to change his office to that formerly occupied by Secretary Franks; they are also pushing work on a new office to be called the library in Malacañan Palace.

Bridge with Zeitlin and Colonel Lim at Pedro Guevara’s house. Pedro told me that if a vote were taken in the Philippines on the proposal he made as Resident Commissioner for a permanent Protectorate by the United States, he would win. Thinks it will come about, anyway.

December 13, 1935

Interview with Charles Franks on reorganization. Talk with Colonel Garfinkel who pointed out how unused Quezon was to executive work. Said that today is the first time the President has been in his Malacañan office for ten days, and that, as a.d.c., he was not allowed to make appointments for him because Quezon wanted to be free. I saw the President who told me he was to appoint the three ex-Secretaries of Finance as a Committee on Reorganization of the Government (Barretto, Singson & Unson), and that he wished me to work with them. He then took me over the Palace, pointing out how his library was to be formed by throwing the small office and bedroom into one. We discussed putting the Spanish paintings back in Malacañan. He looked ill and worn out.

Golf with Doria at Wack-Wack, and a cocktail party at Hoskins where we met several of the Marsman group.

December 10, 1935

Long talk with A.D. Williams at Malacañan about the reorganization of the government. He gave me a chart showing a reduction in the number of the provinces, based on topography and roads –which would save nearly half of the expenditures on provincial governments. We discussed many bureaus and buildings for the same. He said that the retirement of surplus officials as proposed by the law of two years ago was not carried out. I asked him if he would serve on a committee to work out a plan, if I could get Palma also? He consented.

Saw Quezon for one hour in Pasay –says he has had frightful pains in his stomach, and thinks that milk does not agree with him; therefore, he ate a dinner of oysters, fish, chicken, four vegetables, and a sweet! An awful diet for stomach ulcers! Then he became very natural and lively. Said his 1st pardon had been for adultery, and that he would not allow a man to remain in prison for an offense he had so often committed himself. I told him he must cast responsibility for administration on his cabinet –said he proposed to do so, and that is why he has just announced the rule of only two cabinet meetings a week, because they had fallen into the habit of not giving an increase of salary to an employee without cabinet consent. I told him there was much corruption in the government. He agreed and said that was why he had jumped so hard on the Director of Commerce, in connection with the importation of rice –as a warning to all minor employees. We arranged a program for a committee to reorganize the government. Then I asked him about nationalization of industries. He said they must do it; but should begin by an economic review, and then inform the public. If capital was not forthcoming to start the necessary industries, the government would undertake them, and later offer them at public auction to private business.

Quezon then said he had told Roy Howard that, except Taft, I had been the only Governor General who had done anything permanent for the islands. That his break with Osmeña had started with his objection to the latter’s “pussyfooting” and support of Wood. That Wood tried to sell the Philippine National Bank and the Manila Railroad; that if he had done so, it would have lost 100,000,000 pesos for the Philippines; that his fight with Wood killed Wood, and nearly killed him (Quezon). (Doria had had a conversation this same day with Roy Howard’s son, Jack, who on this trip south spoke of the extreme loyalty of Quezon to me –[adding that Ora Smith would weep copious tears and at the next instant knife a man in the back).]

President Quezon spoke well of Foley of the Philippine National Bank and of Yulo. Said he (Q) was informed of a lot which goes on, because he has three agents in Tom’s Dixie Kitchen; that he knows all the racketeers in his Government, and will outwit them. He added that he was going to direct only the policies of the government, but I wonder?

December 9, 1935

Quiet day—talk with Garfinkel, a.d.c. at office: he says Quezon is ill again from eating too much; that the President does not like to come to his office at Malacañan and prefers to do his work in pajamas at his home in Pasay. Nor does Mrs. Quezon wish to move into the Palace—she also prefers Pasay.

Bridge and dinner with Mr. & Mrs. Fox, Peters, and Espinos (Spanish Consul General). Last named told me that Colonel Lim was to leave Scouts and become a general in the new Philippine Army. Good selection.

December 8, 1935

Quiet morning in the office; in p.m. went out to inspect McDonough’s house in Parañaque –very fine guest rooms but his own quarters are most inconvenient– typical bachelor’s house. Call at Tommy Wolff’s. He agrees with me that the Tydings-McDuffie Act settles the question and independence will certainly come in ten years.

Doria went out to the French Admiral’s party on his flagship.

I went to the military tournament in the Stadium with General and Mrs. Smith –was very much impressed by the performance of anti-aircraft guns. Smith tells me they register 20% hits, because the explosion of shrapnel near a plane dislocates the machinery &c. Quezon was there with his son, but, not feeling well, went home.

December 7, 1935

Motored with Doria and Rafael Palma to Los Baños to inspect the College of Agriculture. Excellent plant, interesting animal industry of cattle and pigs. Also good Forestry School. Dean Gonzales and his staff of young professors, had each a Ph.D. degree from an American university. They came from all the different provinces. Palma and I addressed them. The Dean said that, at first, the graduates were all absorbed in the Government service, but that now an increasing number go back to their own lands to apply their scientific training. He added that ten percent of the students came from abroad –Siam, China, Java etc. He believes it is the best college of tropical agriculture to be found in the tropics. All animals, he said, which are brought in from cooler climates degenerate here from anemia. The school has a quinine grove now twenty years old, planted in Bukidnon, and they want machinery to make enough quinine to supply the whole Philippines. Rafael Palma thinks that with the irrigation systems now installed or on the way, the Philippines can eventually be self-supporting in rice.

Palma told me of his ten years service as President of the University. He visited one hundred universities in Europe and forty in America. Very interesting and very able man. He is now in favor of economic planning and opposed a standing army. Says the Filipinos have not yet recovered from their inferiority complex.

Saw ex-Speaker Roxas at the Manila Hotel –he asked me about the purchase of RR bonds. I said I thought better terms could be had, but that was a “penny wise pound foolish” policy. He assented.

Ball at Malacañan Palace for the Assembly. Had a talk with the new Speaker –Montilla– he has a refined face and a good social manner –met a group of of Japanese and talked with them. Quezon was in very good form. I left after the Rigodon. Met High Commissioner in the gardens; he was just putting Ambassador Grew in his motor.

Colin Hoskins tells me of a conversation between the editor of the Herald and “Mike” Elizalde, who is the head of the National Development Co.; Elizalde denounced my appointment as adviser and damned Quezon!!

Doria tells me that Ora Smith says he likes me personally so much that he will have “tears in his eyes” when his articles in the Bulletin “paste me on the wall.”

December 6, 1935

John H. Pardee spent one hour in my office; told me he had been one of the originators of the idea of an elected Filipino head of a “Protectorate” –in the Philippines– that he had persuaded Secretary of War Weeks, and he finally induced President Harding to agree, but as Manuel Roxas was at that time the only one of the Filipino leaders in Washington, Roxas had to cable the suggestion to Quezon and Osmeña who were in Japan on their way back to Manila and they wired back refusing. Pardee wants to know whether the Philippine Railway Co., should pay its Dutch bond holders on a gold basis, or whether the Manila RR. had decided that under American law they could pay only 4%. If so, the Philippine Railway Co., would pay only 4%, because the gold clause was not in their bonds and upon “instructions” from the Secretary of War in the time of Taft this had not been followed by a vote of their board. No written word of this exists in the War Department today.

Saw Colonel Paulino Santos, who was on his way to see General Valdes, wishing to criticize the campaign against the seventy bandits in Laguna Province. Said the constabulary had not sufficient men or enough experience for the task; and that rewards for the capture of the outlaws should not be offered, which would humiliate the Government.

December 5, 1935

My office is beginning to fill up with people who want jobs or money, and with newspapermen. One young reporter wanted to know what my salary is. I told him to ask the President.

Golf with Doria and bridge later at the Manila Club.