Lumber
Media
Part of The American Chamber of Commerce Journal
- Title
- Lumber
- Creator
- Reyes, Luis J.
- Language
- English
- Source
- The American Chamber of Commerce Journal Volume XXVI (No. 3) March 1950
- Year
- 1950
- Rights
-
- Fulltext
- Likewise, the berthings at battered and antiquated Pier 5 have been cut down, as Pier 9 can handle four large ocean-going ships simultaneously. Pier 7 is partly closed for temporary repairs but it is accepting cargo over the pier. Cranes and overhead cargo working gear are yet to be installed at Pier 9. The machinery has been placed on the pier and by April 1, it is hoped the pier will be operating at full efficiency. Pier 9 will provide suitable relief for the overtaxed facilities of the Port of Manila, and it should cut down considerably the handling cost of cargo through the Port. At present the rules of the Port provide that export cargo must be loaded directly from the truck to the ship. This is a laborious method of loading as it does not permit stock piling of cargo prior to the actual on-ship loading. To facilitate the export trade, which is one of the objectives of many governmental moves, the next step will be to give the exporter from the Philippines a break by per mitting him the privilege of placing his cargo on the dock, enabling the stevedores to then load expeditiously when the ship is ready for cargo. Ocean Shipping and Exports By F. M. Gispert Secretary, Associated Steamship Lines EXPORTS for the month of January, 1950, showed a slight falling off compared with January of last year, which can probably be accounted for by the drop in scrap-metal shipments. Total exports for the month were 160,578 tons, as compared to 182,654 tons for the corresponding month last year. The comparison, by commodities, runs as follows: 1950 1949 Beer................................................ 61 tons 29 tons Coconut, desiccated.................. 6,687 ” 6,120 Coconut, oil................................ 2,766 ” 1,633 Concentrates, copper................ 5,223 ” 2,060 ’’ gold..................... 429 ” — Copra............................................ 38,010 ” 23,466 ” Copra cake meal........................ 4,198 ” 3,770 ” Embroideries....................... 135 ” 110 Empty cylinders........................ 580 ’’ 480 ” Furniture rattan........................ 513 ’’ 776 Glycerine..................................... 110 ” 353 ’’ Gum, cop'al.................................. 16 ” 53 Hemp............................................ 58,416 bales 7,302 bales Household goods........................ 241 tons 214 tons Junk, metal................................. 1,111 ” 16,229 Logs............................................. 11,788,661 bft. 2,185,910 bft. Lumber......................................... 739,555 ” 1,639,457 ” Molasses....................................... 4,774 tons 17,891 tons Plywood....................................... 12 — Ores, chrome............................... 9,437 ” 31,178 ” iron..................................... 24,077 ” 20,212 ” ” manganese........................ — 2,081 ” Pineapples, canned.................... 4,126 ” 2,620 Rattan, palasan.......................... 74 ” 149 Rope.............................................. 243 ” 289 ” Rubber.......................................... 80 ” 78 ” Sugar.............................................. 38,228 ” 35,477 ’’ Tobacco........................................ 81 ” 37 Transit cargo.............................. 431 ” 191 General merchandise:............. 7,453 ” 4,100 Inter-Island Shipping By D. M. Cameron General Traffic Manager Everett Steamship Corporation THERE has been no important change in the pattern of inter-island shipping in the last few months. Since the advent of more stringent import controls, out ward cargoes from Manila to the provinces have shown a decrease, which of course must be expected as outward cargoes are, for the most part, composed of imported com modities. When present stocks of imported com modities are depleted, an additional downward trend in volume is expected. However, return cargoes from Davao and ports in Mindanao and nearby continue in appreciable volume. Apparently due to the decrease in south-bound car goes, a number of operators of the smaller FS-type vessels have joined in a petition to the President of the Philippines asking the termination of the remaining charters of the U. S. Maritime Commission vessels in the inter-island trade. There are 6 of these vessels remaining from a total of 10 which were chartered in 1946, and this petition is based on the premise that these 6 vessels are no longer needed in the trade due to the alleged availability of an adequate number of privately-owned vessels. The position taken by these operators is not supported by facts, as the movement of bulk commodities from the further ports to Manila by the smaller vessels, in the volume required to maintain even present production, is impossible.. The present freight rates under which lumber, hemp, com, and rice are carried, would not permit compensatory opera tion of the small vessels, and it would be immediately neces sary to raise these rates in order that the small vessel, with its comparatively high operating cost in relation to its carrying capacity, could show a profit. This situation is apparent to those in the Philippine Government who are concerned with the industrial and agricultural pro gress of the Islands, and it is understood that representa tions have been made to the United States Government to continue these charters after June 30, 1950, when the Philippine Rehabilitation Law (under which they are chartered) terminates. Some of the operators of these chartered vessels have indicated their desire to purchase if the American law is adjusted to permit this; the U. S. Ships Sales Act proviso terminating sales to foreign coun tries was enacted without due consideration to the Philip pine Rehabilitation Program. In addition to the carriage of cargo, the transporta tion of passengers and the volume in which they move dictates the use of larger vessels than the FS-type which are more suitable for the shorter voyages to the less distant ports. It is understood that shippers of lumber, hemp, and the like have expressed themselves to the President as requiring the larger vessels for the continuation of their businesses. Lumber By Luis J. Reyes Philippine Representative, Penrod, Jurden & Clark Company EXPORTS for the month of January totalled 5,192,302 board feet, comprising 2,537,723 board feet of sawn lumber and 2,654,579 board feet in round logs. This is slightly less than the export for the month of December. Japan led the United States in the quantity of imports, with 2,453,634 board feet, as compared with 2,286,004 feet to the United States, although the money-value of shipments to the latter is greater. Before the war, Japan led all others in log imports, which were used almost ex clusively for plywood. In the Manila market, the demand for lumber has somewhat slowed down because of the uncertainties of the Import Control. As a result, prices have gone down P5 to P10 per thousand. A similar drop in prices occurred last year, starting about the middle of February, although before the war, prices weakened only when the rainy period begins, about the middle of June. 106 The members of the Philippine Lumber Producers’ Association have petitioned the Associated Steamship Lines to defray a part of the cost of inter-island freight for trans-shipment through Manila. This was discussed in a meeting between the members of the two associations. Many lumber companies are not able to ship direct from their mills for the reason that the regulations of the Asso ciated Steamship Lines require a minimum of 200,000 board feet if direct shipment is to be effected. Only few buyers abroad purchase 200,000 board feet or more at one time. The bulk of orders are for from 25,000 to 100,000 board feet, and these have either to be trans-shipped to Manila or else held until more orders are received to make up the minimum quantity required. The high cost of inter island freight to Manila, however, discourages buyers, and for this reason the relief is being sought from ocean carriers of their defraying a part of the expense. The As sociated Steamship Lines promised to study the matter and to inform the lumbermen of its decision. Another petition was sent to the Associated Steamship Lines for a reduction of freight rates to Hongkong, Shanghai, and Japan, which are potential markets for Philippine woods. The matter could not be acted upon as no reply has as yet been received by Mr. Gispert, Secretary of the Associated Steamship Lines, from the owners of ocean-carriers. Congressman Macapagal .has introduced a bill which would require the registration of sawmills and woodworking plants with the Bureau of Forestry before operations can be started. The purpose of the bill is to prevent unlawful operators from engaging in the trade without the necessary permit which often enables them to evade the payment of forest-charges and other taxes due the Government. Provided this measure will not entail additional expense to lumbermen, the enactment of such a bill is welcome. According to the records of the Bureau of Forestry, there are now in operation some 454 sawmills, many of them army surplus, which have fallen into the hands of inexperienced persons. There is no doubt, however, that many of these mills have rendered material help in recon struction throughout the Philippines. During 1946 and 1947, when lumber was selling at P250 to P350 per thou sand board feet, these mills made money, but when prices tapered down to present levels, they could not possibly compete with the more experienced and better managed mills. As a result, many have closed down or are operated intermittently when lumber prices are up. Mines By Chas. A. Mitke Consulting Mining Engineer PRODUCTION: January, 1950. Short Value Tons in Pesos Benguet Consolidated.................. 55,046 P Atok Big Wedge 13,711 341,520 Lepanto Consolidated.................. 16,913 535,880 Mindanao Mother Lode.. 9,500 355,793 Surigao Consolidated.................... 9,055 230,168 Taysan Gold Corporation............ 1,362 27,878 Tambis............................... 23,064 cu. yds. 14,809 THE present limited number of producing gold mines in the Philippines are looking forward to a prosperous 1950. Certain improvements are in prospect at each of the mines which will tend to increase production and lower costs. This will naturally be reflected later in the year in profits and dividends. At the present time, Lepanto Consolidated is rushing completion of a second mill-unit, and expects to have it in operation by the middle of July, when the tonnage will be increased from 500 to 1000 tons a day. Preparatory work underground is also being prosecuted and enough stopes opened up to have sufficient ore broken, ready for drawing, as soon as the larger mill is in operation. Extra power units and compressors have already been installed with facilities provided for the moving of the increased tonnage without delay. The Benguet Consolidated is also planning an increase in tonnage of from 2,000 to 2,400 tons per day by August or September. Marsman & Company has announced the rehabilita tion of four mines—Itogon, United Paracale, San Mau ricio, and Coco Grove. Preliminary estimates of the necessary funds for resuming mining activities show that the Itogon Mining Company will need P749,650; United Paracale Mining Company, P379.450; San Mauricio Mining Company, P322.000; a total of Pl,451,100. Coco Grove, Inc. has already received from the War Damage Commission the sum of P505.120.48 out of Pl,081,401.60, which was approved out of its claim of P2,001,855.39. Salvage work will begin immediately. For the present, only one dredge will be put in operation, the other being too badly damaged. Payment in the amount of P690.233.82 has been received from the War Damage Commission by the United Paracale Mining Company, out of an approved sum of P2,298,446.06. The surface improvements of this com pany did not sustain much damage. General rehabilita tion of the mine-workings has been started, as well as repairs to surface buildings. A considerable loss in plant, equipment, and inventories was sustained by the San Mauricio Mining Company. A check for P719,329.20 has been paid the company by the War Damage Commission. As most of the shaft and mine workings are in hard rock, it is anticipated that the money and time involved in putting the underground workings in operable condition will not be too long. It is anticipated that the mill will be remodelled and a cyanida tion plant added. The smelter, where lead and zinc con centrates were treated before the war, was so badly damaged that it will not be rebuilt at this time. The first of the Marsman mines to start rehabilitation work is the Itogon, and it is anticipated that, according to the progress being made at present, it may be brought into production by the middle of this year. Cost of re opening is estimated at P749.650. In regard to treating the ore, the company has two alternatives; either to make some arrangement with the Benguet Consolidated, or to rebuild the former mill. These four former producers will swell the list of present operating mines once they get into production. Glancing at future prospects, there is Panaminas, Inc., which has opened up an interesting complex ore-body in the south-eastern part of Mindanao. The mine was reported on favorably by a prominent American geologist last Decem ber. This is a milling ore, and expectations were that the plant would be financed immediately by American capital. However, the import and exchange controls have tempo rarily put a damper on all foreign investments in the Philip pines. While the Central Bank has announced (and in the case of Atok-Big Wedge permitted) that dividends from dollars investments in the Islands may be paid in dollars, it has not as yet extended this privilege to American capital created in the Islands. Naturally, prospective investors weigh this fact in considering possible future investments. Dividends are now being paid by Lepanto Consoli dated, Atok-Big Wedge, Mindanao Mother Lode, Surigao Consolidated, and even the Consolidated Mines, which is presently operating on a greatly reduced scale. 107