North of San Nicholas is Tondo, the most densely populated district; in the suburbs, outside the fire limits, the greater part of the inhabitants live in native houses of bamboo frames roofed and sided with nipa palm, and the thoroughfares consist of narrow streets and navigable streams. Paco, south-west of Intramuros, has some large cigar factories, and a large cemetery where the dead are buried in niches in two concentric circular walls.
Lumber is sawed by steam power, and cotton mills in the Tondo district are operated by steam.
Another industry of importance, especially in the district of Tondo, is fishing, and the city's markets are well supplied with many varieties of choice fish.
The site had been previously occupied by a town under a Mahommedan chieftain, but this town had been burned before Legaspi gained possession, although a native settlement still remained, within the present district of Tondo.