Some Americans looked on Puerto Rico as a "dubious prize." One-third of the population consisted of mulattoes and blacks, descended from slaves, who had no money or land. Only about 12% of the population could read or write. About 8% were enrolled in school. It is estimated that a powerful landed gentry -- only about 2% of the population -- owned more than two-thirds of the land.
Washington set up a military government in Puerto Rico, headed by the War Department. A series of governors-general were appointed to rule the island, with almost the authority of dictators. Although ruling over a rather unhappy populace, these governors-general brought about much-needed change, including tax and public health reforms. But most Puerto Ricans wanted autonomy, and many leaders, including Luís Muñoz Rivera, tried to persuade Washington to compromise. However, their protests generally fell on deaf ears.
Tensions mounted between Puerto Ricans and their new American governors. In 1900, U.S. Secretary of War Elihu Root decided that military rule of the island was inadequate; he advocated a program of autonomy that won the endorsement of President McKinley.
The island's beleaguered economy was further devastated by an 1899 hurricane that caused millions of dollars' worth of property damage, killed 3,000 people, and left one out of four people homeless. Belatedly, Congress allocated the sum of $200,000, but this did little to relieve the suffering.
Thus began a nearly 50-year colonial protectorate relationship, as Puerto Rico was recognized as an unincorporated territory with its governor named by the president of the United States. Only the president had the right to override the veto of the island's governors. The legislative branch was composed of an 11-member executive committee appointed by the president, plus a 35-member chamber of delegates elected by popular vote. A resident commissioner, it was agreed, would represent Puerto Rico in Congress, "with voice but no vote."
As the United States prepared to enter World War I in 1917, Puerto Ricans were granted U.S. citizenship and, thus, were subject to military service. The people of Puerto Rico were allowed to elect their legislature, which had been reorganized into a Senate and a House of Representatives. The president of the United States continued to appoint the governor of the island and retained the power to veto any of the governor's actions.