Extracts from the Annual Report of the Philippine American Chamber of Commerce (New York)

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Part of The American Chamber of Commerce Journal

Title: Extracts from the Annual Report of the Philippine American Chamber of Commerce (New York)
Creator: Richards, C. A.
Language: English
Year: 1949
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Fulltext: AMERICAN CHAMBER OF COMMERCE JOURNAL 127 Extracts from the Annual Report of the Philippine American Chamber of Commerce (New York) THROUGHOUT the year there has been close co operation between this Chamber and the Ameri can Chamber of Commerce, Manila. We con tinue to be indebted to the officers of that Chamber for transmitting to us by radio and airmail infor mation of value to all our members. “During the recent visit of Mr. Frederic H. Ste vens, President of the American Chamber, Manila, we were very fortunate in that he was able to attend several of our Directors Meetings, and thus acquaint us with current conditions in the Philippines; many conferences were held with him which will insure a continued friendly relationship to the advantage of both Chambers. . . “Philippine Flag Law... The application of this law continues to be a source of concern to Ameri can business. It has been pointed out by some that the United States too has a Flag Law. This is true. This act known as the ‘Buy American Act’, which is Title III of the Treasury Post Office Appropriations Act for the fiscal year ending June 30, 1934, passed March 3, 1933. “An examination of the two laws. . . shows clearly that the provisions are entirely different. The Phil ippine Flag Law is based on the nationality of the seller and gives a 157< advantage to a bidder of Phil ippine nationality. On the other hand, the American Flag Law makes no reference to the nationality of the seller but merely gives priority to the purchase of. govermental agencies of goods manufactured or pro duced in the 'United States. No reasonable person can object to any country giving priority of purchase from government funds to goods manufactured or produced therein. The Philippine Flag Law in its present form in effect penalizes the Philippine Gov ernment up to approximately 15% on each purchase of goods imported into that country if such goods are sold to a government entity by a Philippine national. At a time when the Philippine Government is bending every effort to conserve expenditures, it would seem that a modification of the Philippine Flag Law would mean considerable saving in government expenditures. In our opinion, the Philippine Flag Law in its present form is a deterrent rather than an inducement to American capital investment in the Philippines. “The foregoing views were presented to the late President Roxas and to members of the Cabinet who are now serving under President Quirino. The only result to date has been the Philippine Government’s directive to eliminate as bidders those who do not nor mally deal in the commodity offered for sale. Your Board is of the opinion that the Philippine Flag Law should be brought more into line with the ‘Buy American Act,’ and will continue to so recommend. “Revision of Section 251, U.S. Internal Revenue Code. Your Board is in favor of the revision of Section 521. . .so as to continue the tax benefits re ceived by American business prior to Philippine In dependence. When the Republic of the Philippines became. ..independent on July 4, 1946, a tax ex emption granted in 1921 to American corporations and individuals doing business in American posses sions automatically ended. Since that time, AmeriDE LUXE ANEROID BAROMETER Solid Walnut Frame. Dial and Scale of rich low Brass. 18” x 6 1/2” x 1 3/4” . From P35.00 to P55.00 PHILIPPINE AMERICAN DRUG CO. (BOTICA BOIE) Photo Department On the Escolta, Manila Manila Cebu • Iloilo • Davao CONNELL BROS. COMPANY 128 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1949 • CINE-KODAK EIGHT-25 • Home movies are so easy and so certain with the Cine-Kodak Eight-25. And it’s not only low in price, but also economical to use. Come in and see this outstanding movie camera today. THE KODAK STORE 138 Escolta Manila Sole‘Distributors in the Philippines KUENZLE & STREIFF, INC. 31 Tayuman, Tondo, Manila Tel. 2-64-94 Branch Office: 306-308 Dasmarinas St., Manila can corporations and individuals doing business in the Islands have been operating at a distinct tax disadvantage as compared with the nationals of other nations doing business [there]. For example, cer tain foreign nationals operating in the Philippines pay the 12% Philippine tax as they always did, but are tax-free in their own countries. Americans, however, pay the 12% Philippine tax, and are then taxed 26% by our Government to bring their tax up to the 38 % American corporate rate. “This Chamber, the National Foreign Trade Council, Inc., and the American Chamber of Com merce, Manila, placed themselves on record as being in favor of the passage of H.R. 4208, a bill introduced by Congressman Cole on July 15, 1947, which would amend Section 251 so as to grant to Americans do ing business in the.. . Philippines the same tax bene fits given to those doing business in possessions of the United States. The amendment would be retroactive to July 4, 1946, the date of Philippine independence. The bill was referred to the House Ways and Means Committee. Hearings on the bill were conducted on March 5, 1948, at which time the views of the Cham ber were presented, but no action resulted. The bill never was reported. “While the bill was under consideration, Sec retary of the Treasury Snyder went on record as be ing opposed to its passage. However, spokesmen for the Chamber and the National Foreign Trade Coun cil, Inc., placed arguments in the hands of Congress man Cole in an attempt to offset the objections of the Secretary of the Treasury. “Documents bearing on the proposed revision . . . were submitted by Mr. A. Brock Park, a former member of our Board, to Hon. Paul V. McNutt for consideration. Mr. McNutt strongly favors the re vision . . ., and on March 24, 1948, sent letters to that effect to Congressmen Jere Cooper and Daniel A. Reed, two members of the House Ways and Means Committee. “It is expected that a similar bill will be intro duced in the 81st session of Congress... “War Claims Act of 1948. Last year the Cham ber went on record as being in favor of the passage of the Hinshaw Bill, H. R. 1823, which would benefit American internees. A bill, H.R. 4044, which grew out of extensive hearings and lengthy considerations by the Committee on Interstate Commerce on H. J. Res. 173, H. R. 873, H. R. 1823, and H. R. 2823, was passed by the United States Congress on July 3, 1948, and is now known as Public Law 896 (War Claims FOR RE-WINDING OF GENERATORS - MOTORS CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85 March, 194P AMERICAN CHAMBER OF COMMERCE JOURNAL 129 Act of 1948). Section 2(a) of this law provides that a War Claims Commission be established to determine eligibility and process applications. However, the Commission has not been appointed because no funds have been made available. As a result, no claimant has received any money under the Act. It is expected this will be remedied early in the next session of Congress so that those who were interned or im prisoned may get the relief so long overdue. The In ternee Committee which has worked so hard for this badly needed legislation is to be congratulated. “Central Bank. One of the most important pieces of legislation passed by the Philippine Congress... was a bill providing for the establishment of a Cen tral Bank, which is analogous to the Federal Reserve System.. . The Central Bank legislation changes the system from a dollar-exchange standard, with 100 currency backing in U. S. dollar deposits, to local con trol, with monetary authority resting in the Central Bank... “Since the operation of a Central Bank is now authorized by law, the Board hopes that it will be a success and is confident that under the guidance of Secretary of Finance Miguel Cuaderno, all connected therewith will make every effort toward that end. . “... In closing this report I wish to thank the various members of the Board, the Secretary, and his assistants, for their splendid cooperation and loyal support. “C. A. Richards President.” LUZON STEVEDORING COMPANY, INC. MANILA Weekly . Changes in Retail Prices Bureau of Commerce, Market Division February 21 to 26, 1949 SPEARHEADED by appreciable reductions in prices of a number of imported items, the Bureau of Commerce Price Index resumed its downward movement, after registering a slight reaction during the past week, and chalked up a new post-liberation low of 233.78, down fractionally by 0.56 com pared with the level prevailing a week before. While the wholesale price of macan variety rice advanced by P0.50 per sack, retail prices have remained steady and un changed at Pl.40 per ganta for elon-elon, first class, and Pl.35 for second class; Pl.30 for macan, first class, and Pl.25 for second class. During the week, the government price-fixing committee MANILA SHIPYARD, DRYDOCK AND ENGINEERING CO. OFFERS COMPLETE HULL AND ENGINE REPAIR THREE SLIPWAYS AND DRYDOCK AVAIL ABLE. Shipyard: Navotas, Rizal Tel. 40 Ask 499 Office: Room 507 Insular Life Bldg., Manila Tel. 2-89-06 K E R M A T H “Sixteen 5” FIVE HORSE POWER 4 CYCLE INBOARD ENGINE A COMPACT, DEPENDABLE, LIGHT WEIGHT WATER COOLED, ALL-MARINE Marine Tailored FOR RUNABOUTS — FISHING BOATS — UTILITY BOATS — DINGHIES — TENDERS — AUXILIARIES Exclusive Distributors MANILA MACHINERY & SUPPLY CO., INC. 233 David (YWCA Bldg.) and G75 Dasmarinas P. O. Box 607 Manila Tel. 2-72-98