Act to Establish Settlement Districts for Public Land Cultivation

Upon Governor-General's reservation, Director of Lands surveys and subdivides lands into 4-hectare lots.
Governor-General declares the district open for settlement by proclamation or executive order.
Administration transferred to the Secretary of Labor.
Publication of lot availability in local vernacular and two newspapers (English and Spanish).

Applicants: Philippine or U.S. citizens, over 21 years old, meeting homestead law qualifications.
Limit of four lots per applicant.
Secretary of Labor assesses applications for good faith and capability for cultivation.
Director of Plant Industry oversees clearing and breaking of lots.
Secretary of Labor provides possession, may build houses (max cost 50 pesos), provide a carabao, implements, seeds.
Loans up to 200 pesos with 4% annual interest repayable from first harvest.
Naturalized citizens eligible only after five years of naturalization.

Settlers concentrated on contiguous lands for cooperative action and government support.
Possible reservation of lands for townsites, roads, schools, and public necessities.

Secretary of Labor may appoint a superintendent per district or group of districts (salary max 3600 pesos/year).
Additional personnel may be appointed upon Governor-General’s recommendation.
Possible construction of office and residence for superintendent (max cost 100 pesos).

Applicants commit to cultivating at least 60% of assigned land with prescribed crops.
Applications may be cancelled for incompetency or other good cause.
Land cannot be sold or transferred to non-citizens.
Compliance with settlement regulations and orders of superintendent mandatory.

Superintendent establishes cooperative organizations to promote joint action.
Purchase of tractors, implements, draft animals, and equipment to aid settlers.
Settlers may work as laborers; wages partially retained as credit against debts.
Debits include survey, clearing, breaking, house, carabao, implements, seeds, loans plus 4% interest.
Debts payable in ten annual installments beginning fifth year.

Superintendent may construct warehouses for produce storage.
Provides loans secured by warehouse receipts up to 50% of market value after transport deduction.
Loans used to pay debts or approved purposes.
Proceeds from sales used to settle government indebtedness.

Superintendent encourages formation of a corporation among settlers for managing government properties and equipment.
Annual investment by settlers into corporate stock aids in installment payments.
Once fully paid, property/equipment transferred to corporation ownership.

Titles granted subject to conditions: 60% cultivation annually, payment of government expenses plus interest.
Failure to meet cultivation requirements without force majeure for three consecutive years may revoke title.
Revoked title occupants become lessees paying rent (50 centavos/hectare monthly).
Non-payment of rent for two months may lead to ejection without judicial process.
Right to restoration upon payment of debts.
Any transfer requires Secretary of Labor approval and registration; sales void if debts unpaid.

Secretary of Labor empowered to issue settlement regulations.
Superintendent may request assistance from relevant bureaus (Public Works, Plant Industry, etc.) for district supervision and development.

Secretary of Labor can reorganize personnel from bureaus under his jurisdiction with Governor-General’s approval.
Salaries and expenses paid from appropriated funds.

Settlement superintendents barred from engaging in private business within settlements involving settlers.

Act effective upon proclamation following approval by the President of the United States as required by applicable federal law.