Lumber

Media

Part of The American Chamber of Commerce Journal

Title: Lumber
Creator: de Ocampo, Pacifico
Language: English
Source: The American Chamber of Commerce Journal Volume XXVIII (No. 8) August 1952
Year: 1952
Rights
Fulltext: 306 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1952 The present trend of gold prices is downward. The last price is P103.60 in the free market for 75% of the output and P70 for 25% at the Central Bank, or an average of P95.20 per ounce. While at the present scale of wages of a ?3 minimum, the average cost of production is P96.00, and a loss already of P.80 per ounce is now sustained, how much greater will be the loss when the wage is raised to ?4 a day! This would raise the cost of production per ounce to P101, entailing a loss of ?5 per ounce. The abolition of the requirement that 25% of the gold produced must be sold to the Central Bank at P70, of the 17% dollar tax, and of the 2% fee charged by the ImportjControl could not wipe out the losses incurred due to the big drop in the price of gold in the free market. Remember that when the Minimum Wage Law was being enacted in April, 1951, the price of gold was P136 per ounce, going as high as P160. But, unfortunately, from May of 1951 to Dec ember of the same year, the price has continually dropped and now it is only P103.60 (as of July 15, 1952)... The mining companies now are providing all possible incentives to the laborers to increase their earnings. It has been shown that most of the laborers have increased their earnings by an average of P.52 per day over their minimum cash-pay ... The houses, the schools, the hospitals, the recreation facilities, the vacation and sick leaves, the Christmas bonuses, the rice rations, etc., which the mining companies give to their employees for their comfort and happiness... all necessitate large capital outlays by mining companies which in some cases may never be recovered. Some com panies cannot, all at once, provide the ideal living conditions many labor leaders want. . . but I say that the mining companies have done their best for their employees and will always do so, provided they can get a proper return for their investments. From 1946 to 1952 many mines have sought financial aid and tax relief from the Government, but under the rigid bank regulations, aid came in many cases only after all a company’s assets had been mortgaged to the bank... The mines got a little tax relief in the condonation of assessments and occupation taxes. But, actually, the Government collects tremendous revenues from the production tax, the 17% dollar exchange tax, the 2% fee, the 6% surcharge, the B-Tax, the real estate taxes, the 29% corporation income tax and the stockholder income tax, besides numerous other indirect taxes for gasoline, diesel fuel oil, timber license, transportation, etc. If the Government wants the eleva tion of the mine workers, why should it not forego some of the taxes enumerated to cover the differential of Pl.00 called for by the Minimum Wajjb Law? By doing this the Government could make the workers happy and at the same time lessen the burden of the mining companies, thereby increasing the mining iric'entive. Many more mines would open and more employment throughout the country would result. Mine workers know the effect of the Minimum Wage Law on the mines in that it will shorten their employment, as capital will mine only the rich ore and leave thejlow- and medium-grade ore in the ground. They know that the price of gold has gone down since April, 1951. They know that the cost of machinery, supplies, spare parts, and ex plosives has gone up. They know that heavy taxes of all kinds are being collected from the mines. They know the difficulties that the mines are undergoing in getting their licenses for the export of their ore, licenses for the use of explosives, licenses for importing machinery and supplies; they know the dificulty of getting licenses for the dollars to pay for their mine-machinery, spare parts, and supplies. I, therefore, hope that labor will take all these difficulties into consideration and show its cooperation by favoring the postponement of the effectivity of the P4 minimum wage. Respectfully submitted, NESTORIO N. LIM Secretary July 22, 1952 Manila. Lumber By Pacifico de Ocampo Secretary-T reas urer Philippine Lumber Producers’ Association, Inc. DURING the month under review, June, 1952, the Philippines exported a total of 22,631,474 bd. ft. of logs and lumber, which, compared with the export of 19,597,870 bd. ft. during the preceding month, was an increase of 3,033,604 bd. ft., but was a decrease of 3,944,542 bd. ft. compared with the export of 26,576,016 bd. ft. during the same month of June last year. Like the month last reviewed, this increase was mainly due to further improved Japanese demand for logs—from 12,603,322 bd. ft. in May to 18,174,183 bd. ft. in June, an increase of 5,570,861 bd. ft. Shipments to the United States and Ca 1812 - One Hundred and Fortieth Anniversary - 1952 1902 - Fiftieth Anniversary in the Philippines - 1952 Ours is an established reputation of 140 years standing ... for complete banking facilities, unparalleled resources and world-wide service furnished by 56 fully-staffed branches and correspondents in every commercially important city. THE NATIONAL CITY BANK OF NEW YORK BRANCHES IN THE PHILIPPINES MANILA Main Branch: JUAN LUNA STREET Port Area Branch: 13TH STREET PAMPANGA: Clark Field CEBU: Cc..J City August, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 307 nada dropped further by almost 50%—from 5,253,172 bd. ft. in May to 2,779,909 bd. ft. in June, a decrease of 2,473,253 bd. ft. Shipments to all other countries also decreased by 63,994 bd. ft.—from 1,741,376 bd. ft. in May to 1,677,382 bd. ft. in June. The lumber producers, at the initiative of the Philip pine Lumber Producers’ Association, Inc., have petitioned the Secretary of Labor, with respect to the provisions of Republic Act No. 602, otherwise known as the Minimum Wage Law, to suspend the application of the minimum wage of P4 to producers outside of the City of Manila for a period of 6 months, beginning August 4, 1952, when the full statutory minimum wage automatically takes effect. A Wage Board has been created, and is now actively deliberating on the question of whether the implementation of the minimum wage on August 4, 1952, would work undue hardship upon the lumber industry. It is the opinion of various elements which are cognizant of present condi tions, particularly the unfavorable market situation, both local and abroad, that the automatic application of the law, if not suspended, as requested, would force many producers, particularly the small operators, either to limit their operations and lay off a considerable portion of their laborers, or to totally close their mills. The Philippine Lumber Producers’ Association, Inc. has likewise made representations in connection with the Federal Trade Commission’s reconsideration of the question of whether the use of the term “Philippine Ma hogany”, an established trade-name for Philippine woods, should be modified, restricted, or altogether prohibited. The hearing of the Commission which opened on June 30, is to be continued on September 16, 1952, to enable Philip pine exporters to present their views on this vital question. Government support has been solicited, and the Philippine Embassy in Washington has taken steps to protect the good name of “Philippine Mahogany”. Hereunder are the figures for the lumber and timber inspected for export during June, 1952, as released by the Bureau of Forestry: Shipper Destination Volume in Lumber Board Feet Logs Aguinaldo Development Corp...................................... Japan 1,989,894 Agusan Timber U.S.A. 170,547 Corp...................................... Japan 2,199,965 Anakan Lumber U.S.A. 449,999 Company............................. Japan 3,149,995 B. R. Valencia & Co., Inc.. Japan 1,040,045 Basilan U. S. A. 431,172 99,998 Lumber Japan 1,769,705 Company, Hongkong 164,564 Inc................................. England 320,756 Bislig Bay U. S. A. 319,602 Lumber Co., Inc.............. Japan 829,036 Central Sawmill.................... Guam 72,576 Cipriano Luna Lumber En terprise................................. Japan 998,444 Dee Cho Lumber Co., Inc. . Guam 24,861 Dee U. S. A. 8,840 Hong . Guam 20,493 Lue & Sons................... South Africa 5,506 General Enterprise.............. U. S. A. 29,925 Gocheco Sawmill.................. South Africa 6,000 Iligan Lumber Co., Inc.... Japan 381,588 Insular U. S. A. 169,845 Lumber South Africa 282,557 Company........................ Hawaii 179,138 J. S. Alvarez........................... U. S. A. 42,924 Johnston Lumber Co., Inc.. Japan 1,449,390 Marsman Development Co. U. S. A. 177,593 Misamis Lumber Co., Inc... Japan 1,100,000 North Camarines Japan 849,983 Lumber Co., Inc.............. Guam 100,748 North Star Lumber Co., Inc. Japan 770,490 ENGINEERING EQUIPMENT rfc & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of , MACHINERY, EQUIPMENT and INDUSTRIAL t SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants I ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 174 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 308 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1952 Philippine Manufacturing Co. U. S. A. Reynaldo Lumber U. S. A. Company............................. Japan Schnabel & Cuerva............. Guam Sta. Clara Lumber Co., Inc. U. S. A. Valderrama Lumber Mftrs. Co., Inc................................ Japan Western Mindanao Lumber Co., Inc................................ Japan Woodcraft Works, Ltd.. . . Formosa Zuellig & Company, Inc... U. S. A. 25,000 40,465 197 70,000 44,000 300,000 200,000 382,295 963,353 499,986 SUMMARY OF EXPORTS DURING JUNE, 1952, ARRANGED BY COUNTRIES OF DESTINATION IN THE ORDER OF VO LUME OF SHIPMENT TO EACH COUNTRY Countries of Destination Japan............................................. United States............................. Formosa........................................ England........................................ South Africa............................... Guam............................................ Hawaii.......................................... Hongkong..................................... 3,036,761 19,594,713 22,631,474 Lumber Logs Total (bd.ft.) (bd.ft.) (bd.ft.) 18,174,183 18,174,183 1,859,365 920,544 2,779,909 — 499,986 499,986 320,756 — 320,756 294,063 — 294,063 218,875 — 218,875 179,138 — 179,138 164,564 — 164,564 Totals.............................................................. 3,036,761 19,594,713 RESUME OF Exports To: Lumber (.bd.ft.) Logs (bd.ft.) Total (bd.ft.) Japan........................................ — 18,174,183 18,174,183 United States and Canada .. 1,859,365 920,544 2,779,909 Other countries..................... 1,177,396 499,986 1,677,382 Totals............................... 3,036,761 19,594,713 22,631,474 Trend of Exports to: This Month Lumber Logs (bd.ft.) (bd.ft.) 18,174,183 Month Ago Lumber Lois (bd.ft.) (bd.ft.) — 12,603,322 3,813,177 1,439,995 1,684,217 57,159 Year Ago Lumber Logs (bd.ft.) (bd.ft.) — 18,231,195 Totals. United States Other countries. 1,859,365 920,544 1,177,396 499,986 2,387,799 3,999,234 1,750,528 207,260 Totals................ 3,036,761 19.594,713 5,497,394 14,100,476 4,138,327 22,437,689 Arrivals of logs and lumber in Manila decreased by 1,925,132 bd. ft.,—from 14,649,172 bd. ft. in May to 12,724,040 bd. ft. in June. The weakening condition of the local wholesale lumber market, which began during the second week of May, continued during the month of June because of the inclement weather which hindered the progress of construction activ ities. Consequently, prices of lumber, which at the opening week of the month in review were quoted at P125-P130 per 1000 bd. ft. for white lauan, P135-P140 for apitong, and P160-Pl65 for red lauan, receded from week to week with the above species quoted at the close of the month at P120-P125, P135, and P155-P160, respectively. COMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF MAY AND JUNE, 1952 Lumber in Board Feet Logs in Board Feet Period May, 1952 ............................. June, 1952 ............................. Difference (Increase +; Decrease—) .. . . Western States Gulf States All Others Totql Western Eastern States States Gulf All States Others Total Grand Total 2,990,827 522,798 77,698 91,111 3,682,434 1,018,503 — 421,492 — 1,439,995 5,122,429 1,001,821 691,289 131,250 35,005 1,859,365 — 199,999 250,000 470,545 920,544 2,779,909 1,989,006— 168,491 + 53,552 + 56,106— 1,823,069— 1,018,503— 199,999+ 171,492— 470,545 + 519,451— 2,342,520— Quality machine parts From LOVSTED Cane Cars & Car Parts Diamond Flexible Couplings Diamond Roller Chains & Sprockets Locomotive Parts Lovsted Babbitts, Solders & Ladles Manganese Castings Mo-Lo Ring Stock & Castings North Coast Dry Kilns Pal-Weld Compound Rottier Boring Bars Rail & Track Materials Royal Blue Iron Castings Royal Steel Castings Shafer Pillow Blocks Springs — Coil & Leaf Sugar Mill & Lumber Mill Parts Tiger Bronze Bushings & Castings Toots-e Whistles & Signal Systems Toolsteel Gears, Pinions, etc. give you • INCREASED PRODUCTION • HIGHER EFFICIENCY • LOWER OVERHEAD FOR ADDITIONAL REQUIREMENTS, PLEASE WRITE OR PHONE US. C. M. LOVSTED & CO. (Manila) LTD. 101, 13th SC, Corner Boston, Port Area, Manila—Telephone 3-32-40 Represented by SMITH, BELL & CO., LTD. in Cebu-lloilo-Bacolod-Davao-Legaspi