anish�American War, Ponce was the largest city in the island with a population of 22,000. Ponce had the best road in Puerto Rico, running from Ponce to San Juan, which had been built by the Spaniards for military purposes. The taking of Ponce by American troops "was a critical turning point in the Puerto Rican campaign. For the first time the Americans held a major port to funnel large numbers of men and quantities of war material into the island." Ponce also had underwater telegraph cable connections with Jamaica and the West Indies, putting the U.S. forces on the island in direct communication with Washington, D.C. for the first time since the beginning of the campaign. Just prior to the United States occupation of the island, Ponce was a flourishing and dynamic city with a significant number of public facilities, a large number of industries and commercial firms, and a great number of exquisite residences that reflected the high standing of its bourgeoisie.
On July 27, American troops, aboard the Cincinnati, Dixie, Wasp, and Gloucester, disembarked at Playa de Ponce. General Nelson Miles arrived the next day with reinforcements from Gu�nica and took possession of the city. There were some minor skirmishes in the city, but no major battle was fought. Three men were killed and 13 wounded on the Spanish side, while the Americans suffered four wounded. The American flag was raised in the town center that same day and most of the Spanish troops retreated into the surrounding mountains. The U.S. Army then established its headquarters in Ponce.
Period of stagnation
After the U.S. invasion, the Americans chose to centralize the administration of the island in San Juan, the capital, neglecting the south and thus starting a period of socio-economic stagnation for Ponce. This was worsened by several factors:
� Hurricane San Ciriaco in 1899 had left the region in misery
� The opening of sugar
