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When the Americans first came to Baguio in 1900, it was not yet even a town. It was then only a"rancheria" whose dominant feature was a large, low-lying area called Kafagway. There were only a few houses and there were no roads. The rancheria was owned by Mateo Carino who was at that time the wealthiest man in Benguet Province.
During the dry season it was a pasture for herds of cattle and horses, but much of the year, it was a marshland with a shallow lake where residents hunted for ducks and snipes. Kafagway roughly covered the same area as the present city.
The Americans found Baguio an ideal site for a future city and a summer retreat from the sweltering heat of the lowlands. The hills were grassy and studded with pine trees and above all it had a cool and pleasant climate. The Americans also found a good source of water to supply the needs of a city. Gov. William Howard Taft and other officials did not hesitate to proposed that this be the location for the summer capital and health resort of the Philippines.
In November 1900, the Americans established the first civil government in Benguet. Kafagway was designated as the capital and was later renamed to Baguio. This new name was apparently derived from the native Ibaloi word "bigyiw," which is a moss-like green plant that grew around the area where Burnham Park is now located.
Plans were immediately made to construct the first road to connect Manila with the mountain regions. This project was started in 1901 and Maj. L. Kennon was designated to supervise the construction of the Bued Canyon route which was later called the Benguet Road. This access road was completed three years later and ultimately renamed as Kennon Road, in honor of its builder.
On June 1, 1903, a resolution was passed by the American colonial government, naming the town of Baguio as the summer capital of the Philippine Archipelago. The resolution also called for the construction of suitable buildings, the establishment of 19 townships, and the putting up of appropriate transportation. This was to prepare Baguio as the residence of all officers and employees of the Insular Government during the summer season when the climate in the lowlands was quite hot and very humid. A suitable site was selected for this purpose and which was later known as Camp John Hay.
Following are some of the other events that occured during the administration of Baguio under the American Colonial Government.
- 1903: Establishment of the first telephone system for Baguio.
- 1905: The Baguio Country Club was organized.
- 1906: Civil government authorizes the sale of residential and commercial properties in Baguio.
- 1907: Construction of the Baguio General Hospital is started.
- 1908: The Philippine Constabulary School was moved from Intramuros to Baguio. This was the forerunner of the Philippine Military Academy.
- 1910: Water supply system for Baguio becomes operational.
- 1911: The first automobile travels to Baguio from Manila through Kennon Road.
- 1913: Establishment of Sanitary Camp.
- 1919: An airplane lands for the first time at the Baguio airport.
- 1924: A hydroelectric plant becomes operational & construction of the Baguio Central School is completed.
Baguio became the second chartered city in the Archipelago in September 1, 1909 and the townships were later reduced to 13 municipalities. The city prospered in the years before the outbreak of the Second World.
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