Municipalities are established in the district or sub-district capital towns, and wherever there is a population sufficiently large and enlightened to be entitled to municipal rights.[12] A president (mayor), vice-president, or councillor must be between twenty-six and sixty-five years of age, and must intelligently speak, read, and write Spanish, English, or the principal local dialect. Ecclesiastics, soldiers in active service, and persons receiving emolument from public funds are debarred from these offices. Every municipal officer must give a bond with two or more sureties equal to at least half of the amount of annual funds which will probably pass through his hands. The maximum salary of a president (mayor) is ₱1,200, and that of municipal secretary ₱600. Certain other officers are also paid, but the vice-presidency and councillorships are honorary posts. A person elected to office by the people is not permitted to decline it, except for certain reasons defined in the code, subject to a maximum penalty of six monthsʼ imprisonment. The mayorʼs symbol of office is a cane with a silver knob, plated ferrule, and black cord and tassels.
Natives whose habits and social condition will not yet permit their inclusion in a municipality are segregated into Tribal Wards[13] (Legislative Council Act No. 39, of February 19, 1904). The headman is generally the chief recognized by his race or people as such, and is immediately responsible to the district governor by whom he is appointed. His annual salary ranges from ₱240 to ₱1,800, and his badge of office is a baldric of red leather with a metal disc, bearing an impression of the Moro Province seal. He and his advisory council perform the usual municipal functions on a minor scale, and are permitted to “conform to the local customs of the inhabitants, unless such customs are contrary to law or repugnant to the usages or moral sense of civilized peoples.”
A Tribal Ward is furthermore divided into Tribal Ward Districts. The district headman is the deputy of the tribal ward headman to whom he is immediately responsible. His annual salary ranges from ₱96 to ₱600, and his badge of office is a baldric of yellow canvas with a metal disc as mentioned above. The tribal ward headmanʼs district deputies together constitute the police force of the whole ward. Tribal ward headmen and their district deputies are not required to give bond. At any time, on certain conditions, a member of a tribal ward can apply for full citizenship in a municipality. In short, the governmental system adopted is intended to raise the native progressively from savagery to municipal life.
The sources of Revenue are briefly as follows, viz:—
Provincial.—Property tax (⅞ per cent. of assessed value), industrial, cédula (poll tax of 1 peso for each male over 18 years), stamps, court fees, fines, sales of supplies to municipalities, and forestry collection.
Municipal.—Ownership and transfer of cattle, rents and profits, licences, fines and carts.
Customs Revenues in the five ports of entry, viz.:—Joló, Zamboanga, Cottabato, Siassi, and Bongao.
The Summary of the fiscal year ending June 30, 1904, stands thus:—
Revenue
| Provincial Taxes and Forestry payments | ₱114,713.66 |
| Customs Revenue | 222,664.39 |
| ₱337,378.05 |