Mining
Media
Part of The American Chamber of Commerce Journal
- Title
- Mining
- Creator
- Brimo, Henry A.
- Language
- English
- Year
- 1953
- Rights
-
- Fulltext
- 112 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1953 *t«here was again a slight increase of 863,123 bd. ft. in -* * • the arrivals of logs and lumber in Manila, from 10,614,356 bd. ft. in December, 1952, to 11,477,479 bd. ft. in January, 1953. AIR CONDITIONING For Offices,Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS g| STRUCTURAL STEEL SHOPS • WELDING | SHOPS • BLACKSMITH SHOPS • SHEET | METAL SHOPS • MARINE RAILWAY P A steady lumber market prevailed during the month under review, with prices of white lauan, apitong, and red lauang firming at P177.50, P172.50, and P202.00 per 1000 bd. ft., respectively, from the opening to the close of the period. SUMMARY OF EXPORTS DURING JANUARY, 1953, ARRANG ED BY COUNTRIES OF DESTINATION IN THE ORDER OF VOLUME OF SHIPMENT TO EACH COUNTRY Countries of destination Lumber (Bd.Ft.) Logs (Bd.Ft.) Total (Bd.Ft.) Japan............................................ — 20,763,779 20,763,779 United States.............................. 3,633,283 3,005,079 6,638,362 Formosa........................................ — 1,162,960 1,162,960 Okinawa........................................ 1,000,279 6,300 1,006,579 Hongkong..................................... 717,685 — 717,685 South Africa................................ 389,288 — 389,288 Taiwan.......................................... — 294,494 294,494 Hawaii.......................................... 168,780 — 168,780 Belgium........................................ 80,860 — 80,860 Erie................................................ 61,961 — 61,961 Indonesia..................................... — 48,104 48,104 British Colony............................ 17,950 — 17,950 Guam............................................ 14,544 - 14,544 Total................................ 6,084,630 25,280,716 31,365,346 Trend of Export to: This Month Month Ago Year Ago Logs Lumber Logs Lumber Logs (Bd.Ft.) (Bd.Ft.) (Bd.ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) Japan.............. — 20,763,779 — 21,038,217 — 8,873,578 United States and Canada 3,633,283 3,005,079 4,340,122 1,461,925 1,932,674 3,257,331 Other Coun2,451,347 1,511,858 1,466,453 — 1,582,132 1,801,471 Totals .. . 6,084,630 25,280,716 5,806,575 22,500,142 3,514,806 13,932,380 The local producers, spearheaded by the Philippine Lumber Producers’ Association, Inc., continue the cam paign to bring about tax reforms through the elimination and reduction of certain taxes and charges. It is believed in business circles that a revision of the tax pattern affecting the industry would bring about a considerable increase in the development of forest areas, more opportunities for em ployment, and an increase in tax collections from enlarged output. Whatever direct revenues the Government would lose in the meantime, would be more than offset by the results obtained. The problem should be solved on this basis, which would undoubtedly be to the nation’s benefit. Mining By Henry A. Brimo President Philippine Gold Producers Association, Inc. INTEREST among gold producers, and for that matter among all those interested in mining in the Philip pines, is currently centered on the industry’s cam paign for tax relief. At this date, the gold producers, heavily backed by figures and information from foreign countries anent treatment being accorded abroad to help the re spective gold-producing mines there, and aided by the understanding efforts of the Bureau of Mines, have pre sented their case before the Allas Ways and Means Com mittee of the House of Representatives and received as surances of aid. However, the problem of the type of aid, and amount, is something on which no agreement has been reached, nor is there any likelihood of immediate agreement on the subject. Both the Bureau of Mines and the geld producers ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS General & Sales Office 174 M. de Comillas Manila Tel. 3-29-21 Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 March, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 113 presented their versions of an amendment to the Ad Va lorem Tax, main target of the gold producers, while the gold producers additionally presented amendments to the 17% Excise Tax and 7% Compensating Tax designed to relieve them of these import levees, at least during the duration of the current emergency. The Allas Ways and Means Committee, in an executive session, thereupon agreed to completely eliminate the Ad Valorem Tax on gold producers but denied their further petitions, at least for the present. This is where matters stand today. Meanwhile, as more and more information is received from mining associations abroad, the surprising magnitude of the consideration being offered to the gold mines in each country is revealed. Canada, for instance, in a single year, paid in direct subsidy to its gold mines the total sum of $9,250,000, notwithstanding the fact that its gold mines were operating profitably as a whole, and then decided to increase its subsidy during the current year. In fact, in a single year, Canada’s gold producers earned almost 30% on its working capital, with government subsidies cotributing 35% of that profit. On the other hand, preliminary figures for 1952 sub mitted by Philippine gold mines show that the entire in dustry ended its operation in the red to the tune of close to a million pesos. It will be interesting, therefore, to see how the gold producers’ campaign develops in the light of the 1952 record of the industry. The idea of aiding mining companies, as developed principally abroad, has always been to encourage the development of new mines. It is an idea that has always paid off. For the time being, at least, the Philippines has failed to support its mines in the same manner, with the result that new mining ven tures are being neglected. The question of the hour remains: Will our Government take the highroad leading to new development and new encouragement, or will it continue to expect, as in 1952, to reap P9,500,000 in taxes while forcing the industry to operate at a loss? If it chooses this path, mining in the Philippines is destined for an early death and the vast mineral resources in this fair land will be left undeveloped and the corresponding income taxes unearned. Fortunately, there are evidences of a belated, but real, awakening to the plight of the gold producers. Some sort of aid is assured, but the question of the type and amount will be decided during the present Congressional session. Copra and Coconut Oil By Douglas C. Keller Manager, Philippine Refining Company, Inc., Cebu January 16—February 15 THE general theme of the period now under review was one of dullness and inactivity as buyers withdrew from a market generally considered as artificially high. Trading throughout the period was confined mostly to spot purchases by buyers operating on a “hand-tomouth” basis. This was particularly true of coconut oil which rose to a level completely out of line with the prices and easy availability of other oils and fats and therefore caused consumers to reduce their usage to a minimum and allow their inventories to become dangerously low. Philippine crushers and copra exporters appreciated the fact that the market was top-heavy and endeavored to either keep a balance position or sell for forward ship ment. This latter course proved practically impossible since the only buying interest was for spot parcels or unsold copra and oil already afloat. It would appear, then, that the only factor which prevented the market falling to more reasonable levels was the disappointingly low pro duction of copra. Low production was not confined to INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS ---------¥--------SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MA NILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila D. C. Chuan & Sons, Inc. 14-30 Soler St. Manila Insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE-. 603 FILIPINAS BUILDING