In the opinion of President McKinley there was no reason why steps should not be taken, from time to time, to inaugurate governments essentially popular in their form as fast as territory came under the permanent control of our troops, and indeed, as we have seen, this had already been done by the army.  It was provided that we should continue and perfect the work of organizing and establishing civil governments already commenced by the military authorities.  In doing this we were to act as a board of which Mr. Taft was designated president.  It was contemplated that the transfer of authority from military commanders to civil officers would be gradual, and full and complete cooeperation between these authorities was enjoined.  Having familiarized ourselves with the conditions then prevailing in the islands, we were to devote our attention first to the establishment of municipal governments, in which the natives should be given the opportunity to manage their local affairs to the fullest extent and with the least supervision and control found to be practicable.  We were then to consider the organization of larger administrative divisions, and when of the opinion that the condition of affairs in the islands was such that the central administration could safely be transferred from military to civil control were to report this conclusion to the secretary of war with our recommendations as to the form of central government which should be established.

Beginning with September 1, 1900, we were authorized to exercise, subject to the approval of the President and the secretary of war, the legislative power, which was then to be transferred from the military governor to us until the establishment of civil central government, or until Congress should otherwise provide.  We were authorized during a like period to appoint to office such officers under the judicial, educational, and civil service systems, and in the municipal and departmental governments, as were duly provided for.  Until the complete transfer of control the military governor was to remain the chief executive head of the government and to exercise the executive authority previously possessed by him and not expressly assigned to the commission by the president in his instructions.  In establishing municipal governments we were to take as the basis of our work those established by the military governor, under the order of August 8, 1899, which I had helped to set up, as well as those established under the report of a board constituted by the military governor by his order of January 29, 1900, of which Senor Cayetano Arellano was the president.

In the establishment of departmental or provincial governments we were to give special attention to the then-existing government of the island of Negros, established with the approval of the people of that island under the order of the military governor of July 22, 1899.