Long talk with A.D. Williams at Malacañan about the reorganization of the government. He gave me a chart showing a reduction in the number of the provinces, based on topography and roads –which would save nearly half of the expenditures on provincial governments. We discussed many bureaus and buildings for the same. He said that the retirement of surplus officials as proposed by the law of two years ago was not carried out. I asked him if he would serve on a committee to work out a plan, if I could get Palma also? He consented.
Saw Quezon for one hour in Pasay –says he has had frightful pains in his stomach, and thinks that milk does not agree with him; therefore, he ate a dinner of oysters, fish, chicken, four vegetables, and a sweet! An awful diet for stomach ulcers! Then he became very natural and lively. Said his 1st pardon had been for adultery, and that he would not allow a man to remain in prison for an offense he had so often committed himself. I told him he must cast responsibility for administration on his cabinet –said he proposed to do so, and that is why he has just announced the rule of only two cabinet meetings a week, because they had fallen into the habit of not giving an increase of salary to an employee without cabinet consent. I told him there was much corruption in the government. He agreed and said that was why he had jumped so hard on the Director of Commerce, in connection with the importation of rice –as a warning to all minor employees. We arranged a program for a committee to reorganize the government. Then I asked him about nationalization of industries. He said they must do it; but should begin by an economic review, and then inform the public. If capital was not forthcoming to start the necessary industries, the government would undertake them, and later offer them at public auction to private business.
Quezon then said he had told Roy Howard that, except Taft, I had been the only Governor General who had done anything permanent for the islands. That his break with Osmeña had started with his objection to the latter’s “pussyfooting” and support of Wood. That Wood tried to sell the Philippine National Bank and the Manila Railroad; that if he had done so, it would have lost 100,000,000 pesos for the Philippines; that his fight with Wood killed Wood, and nearly killed him (Quezon). (Doria had had a conversation this same day with Roy Howard’s son, Jack, who on this trip south spoke of the extreme loyalty of Quezon to me –[adding that Ora Smith would weep copious tears and at the next instant knife a man in the back).]
President Quezon spoke well of Foley of the Philippine National Bank and of Yulo. Said he (Q) was informed of a lot which goes on, because he has three agents in Tom’s Dixie Kitchen; that he knows all the racketeers in his Government, and will outwit them. He added that he was going to direct only the policies of the government, but I wonder?