The book is available at Project Gutenberg, Internet Archive, Hathi Trust and Google Books. There is also a free audiobook at LibriVox, and you can get a free Kindle. The links below are to the Internet Archive edition of the book, and be sure to check out the First Jungle Book listing here at the Freebookapalooza too.
The decorations are by John Lockwood Kipling, and I've made a Flickr collection.
HOW FEAR CAME
THE LAW OF THE JUNGLE
THE MIRACLE OF PURUN BHAGAT
A SONG OF KABIR
LETTING IN THE JUNGLE
MOWGLI'S SONG AGAINST PEOPLE
THE UNDERTAKERS
A RIPPLE SONG
THE KING'S ANKUS
THE SONG OF THE LITTLE HUNTER
QUIQUERN
'ANGUTIVAUN TAINA'
RED DOG
CHIL'S SONG
THE SPRING RUNNING
THE OUTSONG