Loggers’ view of log export commerce here

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Part of The American Chamber of Commerce Journal

Title: Loggers’ view of log export commerce here
Language: English
Year: 1934
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Fulltext: October, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 Loggers’ View of Log Export Commerce Here For this paper setting forth Philippine loggers’ views in contrast, in some respects, to the stand of the Philippines’ important lumber industry expressed in interviews with Director Arthur F. Fischer of the forestry bureau, a number of men were interviewed to whom the overseas demand for our logs is very important—partic ularly the demand in Japan. Brief effort will be made to combine their views. They begin by saying that except for the overseas trade in logs, the domestic lumber market would be far more depressed than it now is. It would be called upon to take much larger quantities of logs. This would be far from lucky, because, they say, wholesale lumber prices in the islands are already too close to the cost of manufacture. Of the mill run of lumber, 80% or 85% is not exported and comes on the domestic market. Some loggers doubted that logs exported could stand a wharfage tax of SI a ton, proposed either to check the commerce or bring the government more revenue from it. Others say that if the buyer bore the tax, all right; but that more probably buyers would shift the tax to the log gers, and reduce their gains from the business by that much. Some say the price of logs is so low that the tax would kill their business. They add, however, that buyers of logs not accommodated here would procure logs just the same, from Borneo and the Dutch East Indies. Their position, admittedly self-interested, is that it is better for the Philippines to sell timber in form of logs than to sell nothing by way of timber—to countries wanting logs. They cite the plyboard industry, not function ing here, which needs logs rather than boards. Such an industry exists in Japan, also in China and Australia; all 3 markets buy Philippine logs, and the same industry in the United States begins wanting them. Nor did any logger talked with, agree in the opinion that Philippine logs are beyond danger of competition from logs got farther south in the tropics. One said it is true enough that southern timber is softer, but added that some markets for veneer woods prefer the softer timber, or at least don’t dis criminate in price against it. Reports seem reliable, too, of repeated efforts by Japanese timber interests to establish in Dutch Borneo— to date without success. But logs are shipped from 5 points in the Dutch East Indies to Japan. From British North Borneo, shipments of logs to Japan during the first half of this year had the invoice value of nearly a million pesos. The logger citing this fact from a formal trade report, contrasts it with the opinion that logging is not well established in Borneo. Such is the consensus on this question among loggers. Wealth of Nations... (Continued from page 4) ing first place among Far Eastern markets. As a market for steel mill products the Phil ippines fell from 3rd place in 1932 to 6th place in 1933, when they were preceded by Canada and 4 Latin American countries. “The Philippines, however, continued as the first oriental market for steel mill products, as well as for iron and steel advanced manufactures, taking considerably more than twice Japan’s purchase of the former and nearly twice China’s purchase of the latter. “Of dairy products and cigarettes, the Phil ippines consumed nearly 3 times as much as the second markets,- Panama and France, respec tively. “The islands were the first world market for truck and bus tires (casings) and were preceded only by Brazil in the trade in passenger tires. “Compared with other Far Eastern markets for American automobiles in 1933, the Phil ippines were second to Japan, while they ranked first in the Orient as an outlet for meat prod ucts.” (They were 3rd in buying electrical goods, China and India being ahead of them.) Spokesman for commerce department is C. K. Moser, No. 1 in the Far Eastern section of the regional information division of the depart ment. lie reminds America that the Philippines are an important source, and in some cases prac tically the only one, of American imports of certain raw materials: in 1933 all America’s coconut oil imports were from the islands, as they will be indefinitely, and 99% of all her abaci! imports. Under tariff protection, the Phil ippines have taken the desiccated coconut market in America away from Ceylon, selling America 97% of her desiccated coconut requirements; and the islands also sell America 98% of her imported cigars (by value, 92%); 75% of her sawed cabinet woods; 42% of her sugar require ments, only 13% less than Cuba last year. A second of Mr. Moser’s tables is reprinted with our summary because of its bird’s-eye survey of essential economic factors here. His circular is a courtesy from the trade commis sioner, C. Grant Isaacs. Copies sell at 10 cents gold each at the Department of Commerce, Washington. Perhaps We Erred . . . (Continued from page 6) competing with their own, all logs rejected by buyers for the export trade. This depresses an already sluggish market. It is contended at the forestry bureau that the selected logs exported from the Philippines could readily make shift under a wharfage tax of $1 a ton, which would be, as stated, 1*1.50 to 1*2 per cubic meter. That this is true seems reasonable. Besides Japan and Australia, China is now buying Philippine logs and hints of in creasing her use of them. This puts logs vs. lumber squarely before the government. The forestry bureau dismisses the suggestion that if Japan could not get Philippine logs at attrac tive prices she would get logs elsewhere,perhaps in Borneo, she would not buy Philippine lumber. Borneo has no lumber industry worth speaking of, the Philippines are the only part of Malaysia that has. Backbone of such an industry is a steady domestic market, and sparsely settled Borneo has no such market—can develop none. Borneo’s woods of species and varieties iden tical botanically with those of the Philippines, are softer and coarser than those of the Phil ippines: the Philippine product is preferred in the market. It is held that if logs could be got advantageously in Borneo, they would be got there now—Borneo’s logging industry would already engage Japan’s industry and capital. On the other hand, the trade here understands Bornean logs to be in every way inferior to Philippine logs, though they are cheaper. If therefore Philippine logs could be got at no advantage over Philippine lumber, Philippine lumber would be taken even in Japan—as it once was taken. Director Fischer of the forestry bureau con tends that even if his proposed wharfage tax on exported logs caused loss of sales of logs abroad, not at once made up by greater sales of Philippine lumber, in the long run no harm would be done. The demand for Philippine lumber over the world is clearly reviving. The government could well let the timber stand uncut for 10 or even 15 years, while demands expanded and until overseas markets should be willing to be supplied with lumber instead of logs. At the same time, there is, of course, in the veneer industry, a legitimate demand for logs that sawn lumber will not supply. This demand, Director Fischer says, could always be supplied with Philippine logs; and such is their quality that the wharfage would be no burden on their ready sale. Less worthy is the demand of foreign mills, the mills of Japan, for Philippine logs to be sawn into lumber exported to the very markets where Philippine export lumber must be sold—markets effort in the Philippines has with difficulty and many setbacks got estab lished. The government must choose. LUMBER REVIEW By ARTHUR F. FISCHER Director of Forestry The fairly active demand of Philippine lumber and timber in foreign markets con tinued during July. There were 9,493,784 board feet of lumber and timber exported during the month as compared with 8,647,056 board feet for the correspond ing period last year, or an increase of’ about 10%. Shipments to Japan consisted mostly of round logs, as usual. Inquiries and orders continued to be received from China and Aus tralia and Philippine producers seem to be hope ful for increased demands in these markets in the near future. Much, however, will depend on how the first shipments by the individual companies getting the orders will be received in the said countries. The trade with South Africa remained comparatively active, which is a reflection of the favorable economic condiIN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL