Land transportation (Bus lines)

Media

Part of The American Chamber of Commerce Journal

Title: Land transportation (Bus lines)
Creator: James, L. G.
Language: English
Year: 1949
Rights
Fulltext: KAPOK U.S.A.................... KAPOK SEEDS 188 tons 432 tons Japan ................ LOGS U.S.A.................... 303 ” — 3,269,364 board feet 5,597,260 board feet Canada ............... 101,525 ” ” 150,073 ” China ................. 1,244,385 ” ” 653,452 ” Japan ................. 4,092,256 ” 26,914 ” ” 271,268 ” N. E. Indies .... Saigon, Straits, India .............. 86,461 ” ” — Europe .............. LUMBER — 1,371 ” U.S.A.................... 7,984,294 ” ” 3,823,715 ’’ China ................ 1,299,897 ” ” — Japan ................ Saigon, Straits, 3,244,000 ” India .............. — 600 ” Europe .............. 111,069 ” — Africa ............... MOLASSES 348,320 ” — U.S.A.................... 1 tons — tons Japap ................ Saigon, Straits, 14,005 ” 3,887 ” India .............. 3,900 ” — Europe ............... 37,811 ” — ORES, CHROME U.S.A.................... 146,266 ” 120,157 ” Canada .............. 4,000 ” — Europe .............. ORES, IRON 9,860 ” 6,000 ” Japan ................ ORES, ’ MANGANESE 123,172 ” U.S.A.................... 4,795 ” 4,300 ” Japan ................. PINEAPPLES, CANNED 4,079 ” 1,900 ” U.S.A.................... 18,360 ” 6,341 ” RATTAN, PALASAN 95 ” U.S.A.................... 631 ” — 845 ” Canada .............. 6 ” — China ................ — 9 ” Europe .............'• ROPE 1 ” U.S.A.................... 344 ” 708 ” Canada .............. — 7 ” China ................ 61 ” 140 ” Japan ................ — 153 ” N. E. Indies .... Saigon, Straits, 65 ” 163 ” India .............. 617 ” 740 ” Europe .............. 57 ” 48 ” Africa ................ 9 ” 95 ” South America RUBBER 326 ’’ 218 ” U.S.A................... SHELLS 540 ” 580 ” U.S.A................... 244 ” 505 ” China ............... — 4 ” Europe ............ SHELL. BUTTONS 36 ” U.S.A.................. SOAP 10 ” 29 ” Canada ............. . — 58 ” China ............... 10 ” 1 ” Japan .......... "... SKINS, HIDES 6 " 2 ” U.S.A.................. 402 ” 300 ” Japan ............... Saigon, Straits, 59 ” 134 ” India ............. 3 ” — ” Europe ............ SUGAR, RAW 10 ” U.S.A.................. TANNING EXTRACT . 379,324 ” 125,737 ” China ............... 90 ” — Japan ............... 111 ” — TOBACCO U.S.A.................... 345 tons 132 tons China ................ 65 ” 211 ” Saigon, Straits, India ............... 171 ” — Europe .............. 1,603 ” — Australia ........... 55 ” 1,869 ” VEGETABLE OIL, EDIBLE PRODUCTS U.S.A.................... 51 ” 75 ” Canada .............. — 2 ” China ................ 20 ” 18 ” Japan ................ 8 ” 13 ” Saigon, Straits, India .............. 27 ” 36 " Africa ................ — 295 ” South America . 16 ” WINES 153 ” U.S.A.................... 139 ’’ Japan ................ 51 ” Saigon, Straits, 70 ” India .............. — 14 ” TRANSIT CARGO _ U.S.A.................... 1,410 ” 264 ” " China ................ 853 ” 437 ” Japan ................ 103 ” — Saigon, Straits, India .............. — 51 ” GENERAL MER CHANDISE U.S.A.................... 4,894 ” 34,240 ” Canada .............. 59 ” 135 ” China ................ 5,430 ” 13,411 ” Japan ................ 370 ” 3,106 ” N. E. Indies .... 1,432 ” 2,998 ” Saigon, Straits, India .............. 1,178 ” 2,667 ” Europe .............. 396 ” 1,190 ” Australia ........... 298 ” 2,439 ” Africa ............... 2,117 ” 3,234 ” South America .. 2 ” Land Transportation (Bus Lines) By L. G. James Assistant to the President A. L. Ammen Transportation Co., Inc. THE development of bus transportation facilities in the Philippines was pioneered by American capital and until the mid-1920’s the majority of the larger companies were under American man agement and control. During the late 1920’s and the following period prior to World War II, Filipino ca pital entered this field of enterprise on a broad scale. In the year 1941, there were many successful and substantial land-transportation companies in various parts of the country operated and controlled by Fili pinos. The post-war period has seen widespread de velopment of bus and truck operations representing new Filipino capital investment, with practically no new American capital entering this field, although the Parity Amendment offers American capital supposed ly equal opportunity to that enjoyed by local investors in this form of enterprise. * The oldest and, until December, 1941, the largest transportation company in operation in the Philip pines (with approximately 400 registered units) is A. L. Ammen Transportation Company, Inc., com monly known as “ALATCO”. Founded by A. L. 392 Ammen and Max Blouse as early as 1910 and start ing with one Grabowski truck unit, the company was incorporated in 1914 with a paid-up capital of P100,000. The operations expanded along with the econo mic development of the Bicol region during the course of the years, and at the outbreak of the war the as sets of the corporation were in excess of P2,000,000. These were largely wiped out by the war. All rolling stock disappeared during the war years, along with company shops, maintenance equipment, and other facilities. Starting post-war in 1945 with a few military truck units, the company now operates 200 modern busses and is increasing the number as rapidly as new bodies can be constructed in the com pany shops. The Ammen Estate interests have owned the largest individual holding of the stock of the corpora tion. These holdings plus those of other American in terests have represented control of the company. After lengthy negotiations, the Heirs of D. Tuason, Inc.; a Filipino corporation, recently purchased the major part of these holdings, giving that company ownership of some 60% of the paid-up capital of Alatco. The transaction also included the purchase of approxi mately 80% of the capital stock of Bicol Trading, Inc., truck and automobile dealers in the Bicol region. The Tuason interests have announced that there will be no changes in the management of either com pany or in policies or procedure. The name of “Alat co” will continue to symbolize bus transportation in the Bicol Provinces and the withdrawal of American financial interests from that local field will be noted by only the few who remember the early efforts of Messrs. Ammen and Blouse and those who have watched the growth and expansion of the company over the years. This transaction may be indicative of a trend whereby Filipino capital, seeking sound investments, will gradually absorb American enter prises that have been business successes for extended periods, thus taking an increasingly active responsi bility in the various phases of the country’s economy. Mining By Chas. A. Mitke Consulting Mining Engineer July Production Benguet-Balatoc ..................... Acoje Mining Co....................... Atok-Big Wedge .................... Consolidated Mines ............... Lepanto Consolidated ........... Mindanao Mother Lode ........ Misamis Chromite ................. Surigao Consolidated ............. 2,855.7 tons cone. 656,300.00 2,800 287,956.00 Tons Valued at 47,492 tons P680,750.00 2,500 ” 113,750.00 12,732 ” 378,765.00 16,000 ” 320,000,00 6,684 186,561.00 THE Philippine mining industry at the present time’ is experiencing difficulties. While only a few of the former producers have been rehabi litated, the outlook, particularly for the gold mines, is not very promising. Their best market — China — is fading, in consequence, the price of gold has been shrinking rapidly. There may come a time in the not too far distant future when the gold mines may have to reconcile themselves to selling in a $35 market. Until recently, gold producers in the Philippines were enjoying prices which ranged between P90 and P110 per ounce. It is assumed that most of the gold went to China. A tremendous amount of gold must have found its way into China in recent years. Now, however, the Communists have taken over a large part of that country, and it is hinted that the Na tionalist Government has been dumping its gold into the Hongkong market and exchanging it for silver with which to pay its troops. As evidence of this, the price of gold has gone down to somewhere in the 80’s (pesos), while the price of silver in the New York market has gone up. It has been remarked that gold mining is the only industry whose market is confined to a single buyer, the United States Government — by far, the largest gold buyer paying a fixed price for gold. This arrangement makes the producer a victim of the squeeze between rising costs and the fixed price. Present operating costs in the Philippines are two to three times the pre-war costs, but the local price of the product is now rapidly approaching the 1941 figures — $35 an ounce. Moreover, the mines are not as well equipped to meet a situation like the present, as none of them are up to former production levels and a considerable cash outlay would be necessary be fore they could achieve this position. Something however, must be done to cope with the emergency. Short of a subsidy, which is not favored by government officials, no one thing can meet the situation, but a number of small aids and eco nomies may, in the aggregate, afford relief. There are measures that can and are being taken by the Government, such as the levy of lower taxes, elimi nation of import duties on mining machinery, as sistance offered by the Bureau of Mines, etc., but the greatest help of all would be to bring down the price of rice, which would have a marked effect on the cost of living. WHILE considerable bread, made of imported wheat flour, is now consumed in the Philippines, for the great mass of the people, rice is still the staff of life. It is estimated that 40% of this rice is still being imported from abroad, and paid for with dollars. This swells the imports, reduces dollar credits, and keeps the cost of living high. Before the war, the cost of rice was in the neighborhood of P5 to P7 a sack or cavan. Today, in the open market, it costs from P31 to P32 per sack or cavan. Think what a re lief it would be to many if the price of rice could be cut in half. Even then, it would be twice the pre-war cost! However, before the price of rice can come down, more rice must be grown at home. This can only be done by me chanized farming on a large scale. At one time there were plenty of tractors available from surplus, and there may still be a sufficient number of them left to save the situation. Some temporary arrangement should be made to permit rice planting and farming on a large scale, using mechanized methods at least until such time as the country becomes selfsupporting. Otherwise, the fate of certain European nations will be ours. In these countries, much of the funds advanced by America have gone into consumer goods rather than equip ment, improved efficiency, and lower production costs. Con sumer goods such as food, clothing, etc. do not reproduce them selves, and once they are gone the nation is no better off than before. There are many places in the Philippines where corn flourishes, particularly in Cebu, where it is preferred and used as a substitute for rice. Everyone knows the value of corn as a food both for human beings and animals. Recently, in the company of two Filipino government engineers, I rode horseback over 60 miles of beautiful hills in another island of the Visayan group. Here and there, were isolated farmhouses, about a mile apart. Each was sur rounded by an acre of corn and an acre of mountain rice. The corn was 6 feet high, and the rice newly planted. Elsewere, the hills were uncultivated and covered with cogon grass about 2 feet high, so that for mile after mile the country looked like the wheatfields of Western Canada. The engineers remarked over and over again .that they did not believe enough people realized the tremendous possibilities 393