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 The Military Commission in the Philippine Islands. military officials. The three accused in charge of the Presidio de Manila had in their hands on the I3th day of August, $21,000 of Mexican currency. The articles of capit ulation provided " that all public funds should be turned over to the United States as cap tured property." By a system which was unique in many of its plans, the three officials proceeded to make way with the $21,000 in a manner which, as developed by the evi dence, threw much light on why Spain is a bankrupt nation. The evidence disclosed amongst other things that on the morning of the 1 3th of August, the three officials had concluded that the money which was at the prison was too much to be left to the Amer icanos, and too great to be returned to Spain, consequently they proceeded to make a divi sion of it. Their method of showing that this large fund had been absorbed was first by raising bills that were presented for sup plies furnished the inmates of the prison. A Chinaman who had clone business for these officials for years testified that he had re ceipted a bill for fifteen hundred cavans of rice, when in truth he had furnished only one hundred and fifty cavans. He said his contract required him to sign all bills, whether right or wrong, presented by the Adjutant. The inmates of the prison were mustered" for clothing. It was estimated that $4,500 were needed to properly clothe the convicts and put them in decent appearance for the American authorities. Consequently a bill purporting to be signed by a Chinese mer chant for $4,500 worth of clothing was pre pared, allowed, properly audited and paid. The Chinaman testified he had never owned $400 worth of clothing in his life. When a convict was discharged from the prison, he was allowed a small sum as a starter again in life. It appeared that there were the names of over two hundred people on this roll who had been allowed this starter, many of whom were long since dead, and that all bills were raised though not a dollar's worth

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of supplies were furnished to the prison. Here was forgery on a large scale. Each of the accused went upon the stand and testified in his own behalf. Jose Ruiz who was a nephew of a former Minister of War of Spain, admitted that the item of $4,500 was divided amongst all three, but denied any further complicity in the crime. The theory of the defence raised a nice ques tion of law. They maintained that the United States government never became the owners of the property in question. That the terms of the Protocol simply provided that the United States should hold posses sion of Manila, and the title to the money never passed to this government. There fore, all evidence on the part of the three officials was directed to establishing from a general denial of guilt, that everything they did, even though criminal, was not subject to any action on the part of the American au thorities, because the United States had no right to the property in question. Fairly stated their defense was, that while they might have committed a crime against the government of Spain, they had not com mitted any act over which the United States had any right to proceed. Major Fraine of the ist North Dakota, U. S. V., Captain Eager of the ist Nebraska, U. S. V., Lieu tenant West of the ist California, U. S. V., and Captain Chavarre of the Spanish army, who appeared as counsel for the prisoners, argued with great zeal in support of these contentions. The commission, however, took the view : First, that the accused held the money in trust; second, that the title passed to the United States by virtue of the arti cles of capitulation; third, that they vio lated the common law of war in agreeing to steal the money in question, and having stolen it, were guilty of embezzlement. The conviction of Zoreta by the commis sion excited much feeling amongst the citi zens and residents of Manila. Strong pres sure was brought to bear upon General Otis to set aside the findings of the commission