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.