The second column, from Puerto Plata, under Major Bearss, opened up the railroad, encountering its principal resistance at the tunnel south of Altamira. The two columns joined forces at Navarrete and then occupied Santiago. All the insurgents eventually dispersed or surrendered, and Arias himself submitted to the American military control, which became absolute throughout the country. The total American losses in occupying the country were 3 officers killed and 3 wounded and 4 enlisted men killed and 12 wounded; the losses of the insurgents are estimated at between 100 and 300 killed and wounded.

The Dominican Congress proceeded on July 25, 1916, to elect a temporary president, and chose Dr. Francisco Henriquez Carvajal, a distinguished physician and highly cultured man. It was understood that he was to hold for six months and was not to seek reelection at the general election to be held within that time. The United States government, however, was loath to extend recognition unless assured that Santo Domingo would enter upon a path of order and progress. The fiscal treaty of 1907 had not secured the peace expected of it; the prohibition against the contracting of further indebtedness had been frequently violated; disorder and corruption had continued; and the American government deemed its task uncompleted if it should surrender the country to the same chaotic conditions. It accordingly required, as a condition of recognizing Henriquez, that a new treaty between the two countries be adopted, similar to the recently approved treaty between the United States and Haiti, where a series of revolutions culminating in a massacre of prisoners had the year before obliged the American government to intervene. The principal features of this treaty were the collection of customs under American auspices, the appointment of an American financial adviser, and the establishment of a constabulary force officered by Americans.

Henriquez, jealous of his country's sovereignty and fearful that the proposed arrangement would make the Dominican government a puppet controlled by all-powerful and not sufficiently responsible American officials, refused to accede to the American demands. The American authorities thereupon declined to pay over any of the Republic's revenues to a government which they did not recognize. Inasmuch as they not only collected the customs and port dues, but had assumed control of the other revenues as well, the Henriquez government was left penniless. Nevertheless, the American demands continued to be rejected. As a result, no salaries were paid in any part of the Republic; the officials who continued in their duties did so with the hope of being compensated at some future date; some services, such as the mail service, were discontinued almost entirely; and the whole machinery of the government was paralyzed.

This tension and anomalous condition lasted for several months. As the term for which Henriquez had been elected drew to a close, it became evident that he had no idea of retiring from the presidency, but, on the contrary, intended to hold general elections, in which he expected to be the successful candidate. The deadlock thus threatened to continue indefinitely, and the American government thereupon determined to cut the Gordian knot.

On November 29, 1916, Captain (later Rear-Admiral) H. S. Knapp, of the United States navy, commander of the American cruiser force in Dominican waters, and of the forces of occupation of the Dominican Republic, issued a proclamation, declaring the Dominican Republic under the military administration of the United States. The proclamation recited that the Dominican Republic had failed to live up to the terms of the treaty of 1907; that the American government had patiently endeavored to aid the Dominican government, but that the latter was not inclined or able to adopt the measures suggested, wherefore the American government believed the time at hand to take steps to assure the execution of said Convention and to maintain domestic tranquillity in the Republic. He therefore declared that the Dominican Republic was placed in a state of military occupation by the forces under his command; that the object of the occupation was not to destroy Dominican sovereignty, but to restore order; that Dominican laws were to continue in effect so far as they did not conflict with the objects of the occupation or the decrees of the military government; that the Dominican courts were to continue in their functions, except that offenses against the military government were to be judged by military courts; and that all the revenues of the Dominican government were to be paid over to the military government, which would administer the same. He called on all inhabitants to cooperate with the forces of the United States.

The military government so established took full possession of the country. The chiefs of the executive departments not having appeared in their offices, their posts were declared vacant and filled with officers of the American navy. In the country at large, there was little open opposition, and such as appeared was suppressed without difficulty. The inhabitants quickly reconciled themselves to the situation, realizing that it was to the best interests of their country. Dr. Henriquez, the ex-president, left for Cuba in the early part of December.

The military government thereupon proceeded to organize the finances, to pay arrears of salaries, to subdue several bandits who refused allegiance, and to confiscate all arms. Absolute order and security, greater than have prevailed in Santo Domingo since colonial days, were soon established. The military government then devoted itself to the construction of public works, especially roads, the organization of a police force, and in general to the improvement of the country.

After the Washington government determined to participate in the European war, the American military governor on April 12, 1917, connected Santo Domingo with the war by canceling the exequaturs of the German consular representatives in the Dominican Republic; there was no formal rupture, as no diplomatic representative of either country was at the time residing in the other. German residents were subjected to surveillance by the American authorities.

The Dominican Republic is still (January, 1918) being administered by American naval officers and the work of reorganization continues. Eventually—in all likelihood after the European war—the government is to be turned back to the Dominican people, and it is probable that such devolution will be under conditions that will assure a stable government, peace and progress.

CHAPTER VII