The cost of maintaining the Benguet Road has proved excessive. Mountains tower above it on both sides to a height of four to seven thousand feet and the drainage basin which finds its outlet down the narrow gorge through which the road runs is enormous. Even so, under ordinary climatic conditions its maintenance does not offer very exceptional difficulties, as much of it is blasted out of rock; but during extraordinarily heavy storms the danger of destruction by overwhelming floods is great.

While a century may pass before there is another storm like the one which brought down the terrific slide above described, there may be one at any time, and when the railroad has once reached Baguio, it is hardly probable that such extensive repairs as were necessary after the last destructive typhoon will ever again be made, especially as the horse trail built on a carriage road grade from Baguio to Naguilian in the lowlands has been widened little by little, until it is now safe for small automobiles. The maintenance of the bridges alone, on the Benguet Road, is a very formidable item, while there is only one short bridge on the Naguilian Road before the province of Union is reached. As it runs on or near the crests of ridges all the way, there are no extensive watersheds above it, and it is not liable to serious injury during the most violent storms. The total cost of the Benguet portion of this road to date[7] has been only $33,405. This stretch is seventeen and a half miles in length and does not include that portion of the road which lies within the city of Baguio. The total distance from the centre of Baguio to Bauang, the nearest railroad station on the coast, is thirty-four miles.

With the completion of the new government buildings and the transfer of the several bureaus to Baguio for the season of 1910 a real boom began. The old sanatorium building had long been leased to a private individual who used it for hotel purposes, adding to it from time to time. A second hotel had been built. The railroad had been extended to Camp One and a regular automobile service established for the convenience of the public between Camp One and Baguio. The Jesuits had constructed a great rest house and meteorological observatory on a commanding hill. The Dominicans had purchased a neighbouring hill top and prepared to erect thereon a very large reënforced concrete building to serve for college purposes and as a rest house for members of the order who required a change of climate.

Development began early at Camp John Hay, an extensive and beautiful military reservation set aside within the Baguio town site. Some progress had been made in this direction prior to the coming of Major-General Leonard Wood. That highly efficient and far-seeing officer gave a tremendous impetus to the work. He had been something of a sceptic on the subject of Baguio before visiting the place, but, like all other responsible persons who take the trouble to see it, promptly became an enthusiast when he had an opportunity to observe conditions for himself. Many army officers and their families who could not obtain accommodations in the limited number of buildings on the reservation were glad to take tents for the season, and the Camp promptly began to serve useful ends. It has steadily grown and developed ever since, and is now a well-organized army post. Its remarkable progress has been due in large measure to the initiative and ingenuity of Captain M. R. Hilgard, who has been its commander since October, 1905. Great progress has been made in erecting buildings, but they are still far short of the needs of the service. At the present writing[8] there are many tents in use by officers and their families. These serve very well during the dry months, but with the oncoming of the heavy showers, which usher in the rainy season, become damp and uncomfortable and make it necessary for the occupants to return to the lowlands just at the time when Baguio is growing most attractive and the heat of Manila is becoming most oppressive.

The ground set aside in the military reservation is adequate for a brigade post, and such a post should be established as soon as the railroad reaches Baguio. The different commands in the islands could then be ordered there in succession, and officers and men given the benefits of one of the best climates in the world.

Baguio has continued steadily to develop, and the Benguet Road no longer ends by running up a tree. The government has not only erected a residence for the governor-general, but has established offices for the chief executive, the secretaries of departments, the Philippine Commission, the Executive Bureau, and the Bureaus of Agriculture, Civil Service, Education, Forestry, Health, Public Works and Constabulary. There are also a hospital, a series of tuberculosis cottages for the treatment of patients from the lowlands, cottages and dormitories for government officers and employees, a great mess hall where meals may be had at moderate cost, an automobile station, a garage, storehouses, a pumping plant, and labourers’ quarters. At the Teachers’ Camp there are a separate mess hall, an assembly hall and a fine athletic field.

The city of Baguio has a city hall, a storehouse, a corral and market buildings. Lot owners who have built summer homes for themselves have brought up friends to show them what Baguio was like. Curiously it has never seemed possible to convey any adequate idea of its attractions and advantages by word of mouth. Again and again I have urged sceptics to come and see for themselves. When after the lapse of years they finally did so, they have invariably asked me why I had not told them about it before, forgetting that I had exhausted my vocabulary without being able to make them understand. Practically without exception, the persons who actually visit Baguio become “boosters.”

It is fortunate in a way that the boom did not come quicker, for the hard truth is that up to date the rapidity of the growth of the summer capital has been determined absolutely by the local lumber supply. The original Filipino hand-sawyers were ultimately replaced by small portable mills, and these in turn by large modern mills to which logs are brought by skidding engines or overhead cables, yet it is true to-day, as it has always been true, that no sawmill has ever been able to furnish dry lumber, for the simple reason that the green output is purchased as fast as it can be sawed.

For a time the lumbermen took advantage of the necessities of the public, but when timber on the government concessions first granted them had been exhausted and they applied for new cutting areas, my turn came. I fixed maximum prices on lumber which they might not exceed without forfeiting their concessions. I also fixed a minimum annual cut which they were compelled to make, and imposed a regulation providing that at least half of the total cut should be offered for sale to the public.

There is no justification for the claim that Baguio is a rich man’s city. The town site is very large and can be indefinitely extended. Good lots may be had at extremely moderate prices, and the cost of houses is strictly a matter of individual means and taste. A large section is given up to small dwellings for Filipinos. The man who earns his living with a bull cart has no more difficulty in establishing a home there than does the Filipino millionnaire, and rich and poor are building in constantly increasing numbers.