The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Description: Manila : The Chamber, 1921-1976
52 v.
Issue Date: Volume XXXI (No. 2) February 1955
Publisher: The American Chamber of Commerce of the Philippine Islands (Member Chamber of Commerce of the United States)
Year: 1955
Language: English
Subject: Philippines -- Commerce -- Periodicals.; Philippines -- Economic conditions -- Periodicals.
Rights
Place of publication: Manila
extracted text: Published monthly by the American Chamber of Commerce of the Philippines Elks Club Building, Manila, Philippines — Telephone No. 3-23-24 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines Paul R. Parrette, President; W. C. Palmer, III, Vice-President; A. H. Henderson, Treasurer; F. C. Bennett, M. S. Robie, E. E. Selph, F. H. Spengler, and Paul H. Wood. Stanley N. Fisher, Executive Vice-President; I. T. Salmo, Secretary Vol. XXXI February, 1955 No. 2 Contents Editorials— The Magsaysay “State-of-the-Nation” Address.................................................................................................................................................... Importation of Raw Materials in Industry............................................................................................................................................. The Economics of Foreign Aid................................................................................................ The New Chamber Officers and Board Members..................................................... Koppel (Philippines) Inc................................................................................................................................................................................. Annual Report of the President, American Chamber of Commerce of the Philippines, Inc......... Paul R. Parrette............................. Address on the “State of the Nation".................................................................................................... President Ramon Magsaysay. . . 47 48 48 50 51 51 54 The Business View— The Government............. Banking and Finance. Manila Stock Market Credit Electric Power Production Real Estate.......................................................... Building Construction (Annual figures) Arrastre Service, Manila Ocean Shipping and Exports (Annual figures) Freight Car Loadings.................................................. Mining............................... Lumber...................................................... Manila Hemp (Annual figures). . Copra and Coconut Oil. . Desiccated Coconut. Sugar................... Tobacco.......... Rice. ;..................................... Imports (Annual figures). Food Products Textiles............................................................................ Legislation, Executive Orders, Court Decisions. . . Taxes................. Advertising Chamber Business...................................... Cost of Living Price Index (1935-1955) . . Philippine Safety Council........................ The‘‘Let Your Hair Down” Column. . Official Sources..................... 58 M. D. Arnold................................... 59 J. J. Ortigas............. 60 D. Burn.............................................................. 60 J. F. Cotton...................................................... 61 A. Varias............................................................ 61 J. J. Carlos....................................................... 61 F. Delgado....................................................... 62 E. H. Bosch..................................... 62 J. B. Li bun ao........................................ 63 H. A. Brimo............................ 63 P. de Ocampo.. . 63 F. P. Hill................................ 65 W. S. Rice, Jr.. . 65 H. R. Hick................................................ 66 J. H. d’Authreau........................................... 66 R. P. Satrustegui................. 67 C. O. Houston, Jr............................... 69 S. ScHMELKES.................................... 72 C. G. Herdman................. 72 A. Marcolles............... 74 E. E. Selph . . 74 W. Sycip........ 75 G. Cohen.. . 77 S. N. Fisher............................................. 78 Bureau of the Census and Statistics. 79 F. S. Tenny........... 80 . 81 50 CENTAVOS THE COPY World Leader in Motor Oil Announces: Double Protection for Your Engine 1 TWICE THE CLEANING ACTION! • Double-strength cleaning agent keeps valves, rings and pistons far freer of harmful sludge and varnish than formerly possible. • New engines operate longer at top power —old engines take on new life! • YOU get smoother engine performance—more power—improved mileage. TWICE THE PROTECTION AGAINST WEAR! • Increased ability to cut friction —by reaching and protecting tight-fitting engine parts more quickly and completely than ever before. • New compound in Mobiloil effectively reduces corrosive wear in stop-and-go driving. • YOU add years to engine life —reduce overhauls and repairs —assure top economy! LOW OIL CONSUMPTION Why Accept Anything Less ? Change Now at the Sign of the Flying Red Horse! Available at tMOBILGAS STATIONS 2 Editorials ” ... to promote the general welfare” Despite the fact that President Magsaysay’s Ad dress on the State of the Nation, delivered on the opening day of the Second Session of The Magsaysay the Third Congress of the Re“State-of-the-Nation” public of the Philippines, JanAddress uary 24, is rather long, it is printed in full in this issue of the Journal because of its value not only as an author itative official statement on present conditions, but also a comprehensive progress report for the year 1954, the first year of the Magsaysay Administration, and a valuable forecast of what may be expected during 1955. It is to be regretted that some of the statistics given concerning the national finances are still not the annual figures but cover varying periods, some ending as of Sept ember 30, others as of October 31, and, concerning gov ernment finances, as of November 30. The annual pres idential addresses on the state of the nation could be even more valuable sources of references than they are if complete annual figures could be included each year. The President spoke with an appealing modesty on the accomplishments of the year and credited them chiefly to the people themselves “who wanted them and work ed to bring them about”. The chief accomplishment was a moral one. He said that when his Administration took over, “there were bitter dissension and defeatism...our people had lost [we would have said, “had all but lost”l faith in their institutions and themselves.” With truth he said, “Today, there is a new spirit of confidence in our land.” Since the address is printed in full in this issue of the Journal, it is not necessary to attempt to summarize it here. Let it suffice to point out that the entire address was excellently organized. The President, after his in troductory remarks, spoke first of the national security and the relationship of this security with the PhilippineAmerican Mutual Defense Treaty and the Southeast Asia Collective Defense Treaty, and then he spoke of the coun try’s internal security, more particularly with respect to Communist subversion, and in this connection he men tioned the surrender of Luis Taruc and the death of Ma riano Balgos, two of the top communists of the country. Externally and internally, the national security has greatly improved. Next he spoke of what has from the first loomed as a matter of very great importance in his mind,—rural reconstruction. To this topic he devoted more than a third of his address. The subject of labor came next and then that of industrial development. The next section dealt with national and government finances, and this was followed by a short section on economic planning. Under the heading, “Foreign Affairs”, he spoke first of the negotiations for the revision of the Trade Agreement with the United States and then of the PhilippineAmerican collaboration through the PHILCUSA-FOA pro gram. The last part of the address was devoted more particularly to the relations established between the Gov ernment and the people and to morality in the conduct of government business; he made especial mention of the Presidential Complaints and Action Committee (PCAC) which represents a characteristic Magsaysay innovation in government action, and which, he stated, “has done a good job.” In his concluding remarks he spoke of the year ahead and of the need of a “united leadership worthy of the confidence and support of all our people”. It was a high-spirited and tonic address, such as should come from the head of a nation. a few points brought out by the President in his address gives rise to some uneasiness. He stated that while the ordinary operational expenses of the Government were reduced to some extent and “deficit spending for ordinary expenses has become a thing of the past”, the public debt has increased by P65,400,000 to Pl,168,000,000, and that past deficits amounting to P275,260,000 “must still be settled” and outstanding budgetary loans amounting to P 160,000,000, plus P550,000,000 in backpay obligagations also "must be paid”. Consequently, he said, “we must be prepared to increase existing tax rates, levy new taxes, or resort to public borrowing for the purpose of accelerating our economic development”. The “or” in this statement is somewhat equivocal. Public borrow ing has already been resorted to, and taxes already being numerous and existing rates being already high, the Pres ident seems to have implied that public borrowing, that is, deficit financing, must be continued,—on the grounds, as he said, that “the financing of capital investments and permanent public improvements for economic develop ment is another matter”,—he meant, from the deficit financing of operating expenses. Thia is, of course, another matter, but deficit financ ing for any purpose piles debt upon debt and these debts must be serviced,—that is, interest payment and amor tization has to be provided for, so that deficit financing offers no real solution unless it results in the establish ment of public works and enterprises from which an al most immediate return can be had. The only true solution to the country’s financial prob lems is not to enlarge them and thereby make them more difficult of solution, but to exercise the greatest caution in assuming further obligations and to turn, instead, to more determined efforts to obtain the assistance of pri vate capital. In his advocacy of industrial development, the Pres ident indeed declared that he could not over-emphasize the need for measures to encourage and facilitate the en try of foreign capital, but his rather light-hearted state ments later on in his address with respect to continued government borrowing even if it would be for economic development, weakens this point. It would seem that if the Philippine Government is to act wisely, there is really no alternative between public financing on any great scale of further economic development, and the private financing of such develop ment. The only wise course is to rely chiefly, if not en tirely, on private financing and to make the decision to that effect absolutely clear, further taking measures to make this financing economically possible by definitely providing the necessary inducements and protection. On the one side there is the prospect of a piling of debt on debt by an already debt-ridden government, and, on the other, the prospect of more directly and more rapidly achieving the desired result,—economic develop ment, at no cost to the government and, indeed, to its great and immediate profit. It is strange that there should ever be the slightest hesitation in determining upon such a course of action, but “socialistic” and “planned economy” notions still continue to pervert much of our economic thinking. Let us have our. national economic councils and planning boards, but let them plan principally on getting govern ment back to governing and turning business over to business. The fact, given in another editorial in this issue of the Journal, that the United States, Western Europe, and Canada, comprising the most The Importation highly industrialized countries in of Raw Materials the woiId, are dependent on outside in Industry areas for no less than 50% of their combined imports of industrial raw materials (exclusive of raw foodstuffs), and that the demand for these foreign raw materials is rapidly in creasing, gives emphasis to the principle that industrial ization anywhere is largely based on the importation of raw materials. If the Philippines is further to industrialize the eco nomy, no restrictions whatever should be placed on the importation of the necessary raw materials. That this principle is not so well understood as it should be, is indicated by a recent move in Congress to deny foreign investors the right to establish any indus trial or manufacturing activity which would require raw materials more than 30% of which would have to be im ported. Such a provision, incidentally, conflicts with the pro vision in the New Industries Tax-Exemption Law (Re public Act No. 35 as amended by Republic Act No. 901), which specifies that no industry is eligible for tax exemp tion in which the required imported raw materials rep resent a value of more than 60% of the manufacturing cost plus reasonable selling and manufacturing expense. And this Law covers only the eligibility for tax exemption; it does not actually forbid, as a Bill recently introduced would, the establishment of a new industry by foreign investors which wou’d require a proportionately greater for eign importation of raw materials than the .30 % specified. It is true that there has been a certain disappoint ment in the Philippines over the fact that some of the socalled new industries started here in recent years are little more than packaging plants whose establishment was more or less forced by the import and exchange controls. As this Journal has pointed out, such forced “industrial ization” has little to commend it, as, often, the ventures may be basically uneconomic. But limiting the proportionate amount of foreign raw materials required, is certainly no way to encourage a more genuine industrialization. Whether all or a large part of an industry’s raw ma terials would have to be imported, is not the principal criterion by which the possibilities and value of an indus try is to be tested or measured. From the point of view, both of the interests of the country and the interests of the investors, there are other important factors. From the point of view of the coun try, any new industrial investment, if successful, means enlarged trade, increased production, more employment, larger tax revenues, a greater economic dynamism. From the point of view of the investor, granted that the local availability of all or part of the raw materials required is a factor, there are other important factors which may offset the importation handicap: the indus trial facilities present (labor, transportation, power), and, especially, the present and future market possibilities, as well as such factors as property security, freedom of management, level of taxation, transferability of funds, etc. A very important consideration in connection with the Philippines as an industrial investment area, is the country’s geographic situation with respect not only to the mainland of Asia, but its distance from other industrial centers. The Philippines’ relative security, its relatively high cultural advancement, its form of government, and its international political associations, are still others. The exact percentage of the imported raw materials required by a projected industry, may, in many cases, be a relatively minor consideration which should be left to the business judgment of the investors and entrepreneurs whom the Philippines wishes to attract. Let us be careful in the framing of any legislation covering foreign investment that it will actually be a law to promote it and not to restrain it. It is worthy of note that President Eisenhower used the words “foreign economic program” rather than “for eign aid program”, both in the The Economics of title and in the body of his mesForeign Aid sage to Congress on this subject, delivered last month, and that he again pointed out that American self-interest is concerned. In outlining the need for a continuation of a foreign economic program which “will stimulate economic growth in the free world through enlarging opportunities for the fuller operation of the forces of free enterprise and com petitive markets”, he declared that our self-interest re quires such a program because (1) the economic strength of our allies is essential to our security, (2) economic growth of the underdeveloped countries is necessary as a bulwark against Communism, and (3) greater trade will help our growth and rising standards of living. T tnited States post-war aid to the rest of the free world during the period from July 1, 1945, to the end of 48 February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 49 WHAT IS GOOD LIGHTING FOR OFFICES, SCHOOLS AND PUDLIC DU1LDINGS . . . Proper lighting can be achiev ed — by using the right size lamp in the right place and keeping the lamp and fixture clean. In selecting and locating the proper fixture in any one room, many factors have to be taken into account. And — without cost or obligation, lighting specialists will be glad to assist you with the lighting prob lems. Always use high-power factor ballasts with fluorescent lights. Adequate for casual seeing task Recommended for critical seeing task Rough Work GENERAL LIGHTING (SUPPLEMEIfTAM LIGHTING T1 T T AUDITORIUM ACCOUNTING WOODWORKING 1 CAF iTERlAS | DRAFTING HOSPITAL CASUAL OPERATING DESK WORK CONFERENCE | BOOKEEPING COLOR WORK | CLASS ROOM | PASSAGEWAYS I CRITICAL FILING DESK WORK RECEPTION | 1 BUSINESS - 1 LIBRARIES MACHINE | | STENOGRAPHIC | io in to 100 200> 500 1000 F O O T e A N D L E S Long rows of cool-white fluorescent lights are well suited to large offices. 4They provide abundant lighting need ed to increase office efficiency and to create an ideal seeing condition at work level. ******** ♦m.ijiiu electric *=C0MPAilY= 134 San Marcelino Tel. 3-24-21 * * * * -- ********* 1953, amounted to over $44,000,000,000, of which $33,000,000,000 was in grants and $11,000,000,000 in credits. During the fiscal year ending June 30 last, total foreign expenditures were still above $5,000,000,000. This burden was willingly assumed and continues willingly to be borne by the majority of the American people, but there have not been lacking critics who have condemned this “give-way” program as economically unsound. The question no doubt has arisen in many minds, How can any national economy bear such a burden? And even if it is able to, why should it? Unprecedented as the program of American aid to the other countries of the free world has been and remains, there is no great mystery as to what made it physically possible. Of course, no $50,000,000,000 in gold has gone out of the country. The total largely represents grants and credits to the various countries against which they obtained the products of American industry for which the American Government paid the producers out of. re venues raised by taxation and from the proceeds of gov ernment bond issues. What made and makes this possible is the titanic production system of the country built up under its free enterprise economy. Though there were serious shortages for some years after the close of the war, and the foreign aid program was therefore all the more a national exercise in self-denial, the products of American industry sent abroad were actually and necessarily surplus over what was consumed at home. And even so, the standard of living of the American people remained the highest in the world. It can be said that, comparatively speaking, America has for itself solved the problem of production. It has virtually escaped from the age-old economy of scarcity that still enmeshes most of the rest of the world and has entered upon an economy of abundance which has hither to been envisaged only in an utopia. Can American aid to other countries be considered as “uneconomic”? The old economists recognized in the purely economic no other motive than that of interest, eliminating from economics everything that was not con cerned with the desire for gain. But these old conceptions have had to be broadened, if not abandoned. There never was such a being as the theoretically projected “econo mic man” for no man is governed solely by his most selfish interests but also by his feelings and convictions. He sup ports, besides himself, his children and the aged, he sup ports schools and hospitals and charitable institutions, he makes gifts and donations. As one economist has said, altruism as well as egoism has to be taken into consider ation in economic questions, and— “personal interest expands progressively, and becomes family inter est, corporative interest, class interest, national interest, and even reaching its last limit, the interest of humanity.” '-the American foreign aid program was first adopted -* ■ mainly to assist European recovery and to streng then our allies against the growing threat of Russian com munist domination which was being facilitated by the state of disorganization which existed. Later, the foreign aid program was gradually extended to the less developed countries outside Europe, especially as the communist threat spread to those regions. But the communist threat, actually, served only as a spur toward the shaping of a policy which would have been adopted sooner or later anyway for more funda mental and strictly economic reasons. As Eugene Staley says in his notable book, “The Future of Underdeveloped Countries” (Council of Foreign Relations, Harper 8s Brothers, 1954): “The type of program symbolized by Point Four is by all odds the most affirmative concept that has been introduced into American foreign policy in this generation. If it is adequately supported—by public funds, by the growth of private investment and trade, and by the related actions that demonstrate America’s sincere interest in the progress of all peoples toward self-government and toward coopera tion based on mutual respect—then it will also prove the most effec tive defense against the Communist threat.” It will be noted that Staley refers to the Communist threat only as an “also”. He stresses the progress of all peoples toward self-government and toward coopera tion based on mutual respect. Elsewhere in his book, he says: “.. .extreme contrasts between the modernized West and the rest of the world in food, clothing, housing, health, education, personal freedom, and political participation can not continue indefinitely. Under the world conditions of today, either the human benefits that we like to think of as characteristic of Western civilization will also become available to the rest of the world, or they will be lost also even to the West.” Economically as well as politically and strategically, we are today being forced to consider the one-world concept, one-world organization, the equalization of economic capacity everywhere. This is in accordance with the economic “Theory of Growth” to which Pres ident Eisenhower referred in his message. He spoke of economic growth in the underdeveloped countries as being necessary not only to themselves, but necessary for the continued growth of the American economy, for even a highly advanced economy must continue to grow if it is to maintain its dynamism. And fundamental is the fact that an expanding economy requires an expanding foreign trade, which, in turn, can be based only on an expanding production abroad as well as at home. In this matter, the Communist threat, in so far as it is economic, can play only an incidental or secondary part, for no slave economy can ever match a free enterprise economy in productivity. 't'he importance to Western economy of the underA developed countries is even today much greater than many people realize. As Stacy May points out in a recent article in Foreign Affairs (January, 1955): “Quite apart from such imperatives of Western defensive stra tegy las dictated by Soviet strategy], there has arisen in addition an increasing awareness that the economic dynamism of the highly in dustrialized nations of the free world is genuinely dependent upon the achievement of a comparable dynamism in the underdeveloped economies. In 1952, one-third of the combined exports of the United States, Western Europe, and Canada found outlets in the markets of the underdeveloped countries. Something like 40% of their total exports of manufactured goods were also marketed in these areas. No business interest can afford to be complacent about future prospects in such an important segment of its markets. "The degree of interdependence is shown even more conclusively by the amount of supplies the industrialized nations draw from these regions. The records show (also as of 1952) that the United States, Western Europe, and Canada are dependent upon the underdevel oped areas for 50% of their combined imports of industrial raw ma terials and 48% of crude foodstuffs. Since these import needs of the industrialized nations have been steadily expanding, and promise to increase at an accelerated pace, growth in the underdeveloped economies is obviously to the interest of the West. “These three imperatives—the strategic considerations,—the quest for access to expanding export markets, and the need to assure an increasing source of primary products, impel the industrialized West to forward the development in the backward sectors of the world. “Clearly, there are non-material motivations as well,—human itarian and moral, which have an important weight in the traditional attitude toward other people...” But strictly in economic terms, any American aid used to promote the economic development of other coun tries can be considered aS a wise and indeed a necessary investment in national and world economic growth; the two are not to be separated. At the thirty-first * annual meeting of the American Chamber of Commerce of the Philippines, Inc., held, by Elks Club courtesy, in the Club’s The New Chamber Assembly Hall, on January 28, Officers and the election of the Board of Di Board Members rectors resulted in the re-election of all seven of the members of the 1953 Board who had been nominated for re-election, 50 and the election of two new members, Mr. C. A. Larsen, General Manager, Standard-Vacuum Oil Company, Phil ippines, and Mr. W. C. Palmer, III, President and General Manager, Getz Brothers fie Co., Inc. Mr. Palmer was Vice-President of the Chamber in 1953 and Acting Pres ident during the last few months of that year. At the organization meeting of the Board, held on January 31, Mr. Paul R. Parrette was re-elected President, Mr. W. C. Palmer, III elected Vice-President, and Mr. A. H. Henderson was re-elected Treasurer, Mr. I. T. Salmo being re-elected Secretary. Mr. Stanley N. Fisher remains Executive Vice-President. 't'he following are the business connections of the officers of the Chamber and the other members of the Board, in alphabetical order: Mr. Frank C. Bennett, Vice-President, Atlantic, Gulf 8s Pacific Company of Manila. Mr. A. H. Henderson, President and Treasurer, Amer ican International Underwriters for the Philippines, Inc. Mr. C. A. Larsen, General Manager, StandardVacuum Oil Company, Philippines. Mr. W. C. Palmer, III, General Manager, Philip pines, Getz Brothers 8b Co., Inc. Mr. Paul R. Parrette, President and General Man ager, Philippine Manufacturing Company. Mr. Merle S. Robie, General Manager, Columbian Rope Company of Philippines, Inc. Mr. Ewald E. Selph, Member of the firm, Ross, Selph, Carrascoso & Janda. Mr. F. H. Spengler, Managing Director, Philippines, American President Lines, Ltd. Mr. Paul H. Wood, President and General Manager, International Harvester Company of Philippines. ‘The Chamber was incorporated July 3. 1920, but was inactive during the years of the Japanese Occupation,—1942, 1943, 1944, and until February, 1945. The Chamber will observe the 35th anniversary of its founding during the preThe American Chamber of Commerce of the Philip pines, through this Journal, extends its congratulations to the member-firm, KopKoppel (Philippines) Inc. pel (Philippines) Inc. on the occasion of the fiftieth anniversary of its founding and the inauguration of its new headquarters on Taft Avenue. The history of the Company began in 1904 with that of its predecessor firm, the one-man machinery business of Henry A. Cooper, who had come to the Philippines with the United States Army in 1899. The firm dealt in light machinery and industrial railway equipment. In 1910, A. H. Bishop joined the firm then known as H. R. Cooper & Company. The first branch was opened in Iloilo in 1913, under the name “The Cooper Company”. In 1917, Mr. Cooper sold his interest in the firm and became general representative of the Pressed Steel Car Co., Inc. for the Far East, with headquarters in Shang hai, while Mr. Bishop became General Manager of the (Continued on page 82) Annual Report of the President American Chamber of Commerce of the Philippines, Inc. IT is a pleasure to welcome you to this thirty-first annual meeting of the American Chamber of Commerce. We wish particularly to welcome the many new members who have joined the Chamber this past year and are attending an annual meeting for the first time. The Board wishes to thank all the Chairmen and members of the standing committees who have given so freely of their time during the year. It is the effort of these groups which, in the final analysis, makes the American Chamber an effective organization. In the opinion of the Board, 1954 was a successful year for the Chamber. A number of changes were made which we believe had the effect of strengthening and improving Chamber operations. (1) In an attempt to do something about the occasional com plaint that the entire membership has not been well-enough represented in Chamber activities, we took steps to place the chairmanships of all the major standing committees in the hands of men not members of the Board, but liaison was maintained between the Board and the various committees by different members of the Board acting as counsellors, each to one committee. (2) We also took, steps to enlarge and broaden the membership of the various committees and efforts were made to assure participation in the work of the committees by representatives of all types of busi ness A total of 51 persons served on the various committees during the year, and almost half of these were men other than the accredited representatives of the active member firms. It is our intention to suggest to the new Board that participation in committee work be encouraged by enlarging the committees and perhaps by creating additional committees. (3) It is generally felt that our move to the new quarters here in the Elks Club Building was a good one. We have more space, in more pleasant surroundings, at a rental no larger than we paid for the former quarters on San Luis Street. The Board wishes to express its appre ciation to the Elks organization for its fine cooperation in working with us on the problems involved in the move. As part of our arrangement, the Elks made this Assembly Hall available to us for our meetings at no cost. We expect the present arrangements to work out to mutual satisfaction for a good many years to come. (4) The Board secured the services, six months ago, of Mr. Stan ley N. Fisher as Executive Vice-President. This was in line with the express desire of this and former Boards to place the active manage ment of Chamber affairs again in the hands of a man rather than a woman so as to make a broadening of Chamber activities possible. The Board feels that this was a constructive move and that the choice of Mr. Fisher was a fortunate one. As he becomes more familiar with his job and with conditions here, he will become increasingly more valuable to our organization. I may say that, from my standpoint, Mr. Fisher’s coming into the job has meant a considerable lightening of the burden on me. (5) Before getting to the business of the meeting today, I should like to mention one other point which I believe is frequently overlooked by the membership as whole. There aie many things that are done by the Board of Directors during the year to protect American business interests in the Philippines which we have no right to publicize. The very nature of some of oui contacts with the American Embassy and various Philippine Government agencies is such that the matter of information-release must be left to them. But the point I wish to make is that every member of the Chamber is a beneficiary of many real and unrecorded actions that aie frequently taken in the interest of improving the “climate” for American business in the Philippines. Ihave here the minutes of last Year’s annual meeting, and if someone will make a motion that we dispense with the reading, I shall pro ceed to the second part of my report,—short digests of the reports of the various standing committees and those of the Editor of the journal and of the Executive Vice-President. Finance and House Committee, A. H. Henderson, Chairman. The Annual Financial Report for the calendar year ending December 31, 1954, prepared and certified to by our auditors, Sycip, Gorres & Velayo, has been completed and will shortly be distributed to all mem bers. The highlights are the following: Chamber Journal Summary 763,221.35 P49,994.84 P113.216.19 69,785.16 51,281.96 121,067.12 Income... Expenses. Net Operating Surplus (Loss)................... (P6.564.81) (Pl,287.12) (P7,850.93) The net operating loss in more than accounted for by: 1. Journal deficit........................................................ 2. Salary increases...................................................... 3. Terminal and vacation pay for former Execu tive Vice-President.............................................. 4. Office moving expense.......................................... Pl.287.12 5,000.00 1,500.00 1,975.75 P9.762.87 The last two items, totaling P3,475.75, are non-recurring expenses and should be eliminated from any anticipated operating expenses for the year 1955. The past year’s membership drive netted the Chamber 44 new active members and 2 new associate members. Entrance fees for these new members, which would have totaled PH,000,’ were waived by 51 special action of the Board. Additional income in dues from the new members, however, is estimated 7to be around P16.000 for 1955, and other things equal, it may be forecast that operations for 1955 should break even; relatively small increases in membership dues and in Jour nal advertising income for 1955 would result in a surplus. Of special interest,—and carried fully reserved on the Chamber’s books, is a pre-war bank balance amounting to P36,353.97, represent ing Chamber funds sequestered by the Japanese military authorities and transferred to the Bank of Taiwan. Through the passage of U. S. Public Law No. 744 last year, the collection of a substantial part of this sum seems probably within the near future as steps have already been taken to submit the Chamber’s c’aim. Membership Committee, Lawrence E. Snell, Acting Chairman; John Oppenheimei, Counsellor. Early in the year, this committee, composed originally of only three members, decided to undertake an aggressive drive for new members. During the five months from Aug ust through December, their efforts were responsible for an increase in Chamber membership amounting to 25%. On July 1, the membership stood at 148 active members, 33 associate members, and 2 non-resident members,—a total of 183; on December 31. at 191 active members and 35 associate members, with no change in the non-resident membership, —a total of 228, or an increase of 45. This comperes very favorably with an increase of only 6% in the membership during the preceding six-and-a-half years. The thorough coverage of the whole field of existing prospective members has now brought the Chamber to a point at which it seems probable that any further increase must chiefly be drawn from new American firms which may open business here in the future. The following factors are held largely responsible for the success of the year’s membership drive: (1) The committee increased its own membership from 3 to 11 men, all of whom made repeated personal con tacts with prospective members; (2) The action of the Board in waiv ing entrance fees during the course of the drive; (3) Preparation by the committee, and design and production by Philippine Advertising As sociates, of a printed brochure describing the services of the Chamber which was sent out to all prospective members. Civic Affairs Committee, R. M. Bownass, Chairman; F. H. Spengler, Counsellor. Although the American Chamber of Commerce of the Philippines is primarily a trade organization, it also has certain civic responsibilities. Duiing the year 1954 the committee’s major activities have been concerned with: (1) Community Chest Drive: As in 1953, during which the American Com munity received the Community Chest Honor Award for having over-subscribed its quota, the 1954 drive was again carried out under the Chamber’s Civic Affairs Committee and the quota of P100.000 was again over-subscribed by some thou sands of pesos. (2) George W. Hubbell Monument: This monument, erected to the first American Consul to the Philippines during Spanish times, was transferred from Plaza Cervantes to the grounds of the American Embassy on Dewey Boulevdrd as a joint project of the Embassy, the American Association, and the Chamber. (3) Philippina-American Day, August 13: With the Chamber of Commerce of the Philippines and the American Chamber as joint sponsors and their respective Presidents acting as Co-Chairmen by appointment by President Magsaysay, ar rangements were made and very successfully carried out for the first celebration of Philippine-American Day, August 13, a day which formerly has been observed as Occupation Day, commemorating the occupation of the City of Manila by the Amer ican forces in 1898. The Civic Affairs Committee has throughout the year extended its advise and cooperation to many other civic organizations and under takings, both Filipino and American, including the Social Welfare Administration, the Boy Scouts of the Philippines, the Memorial Day celebration, etc. ___________ Foreign and Domestic Trade Controls Committee, Newland Baldwin, Chairman; Paul H. Wood, Counsellor. During the early part of the year 1954, this committee attended numerous hearings held by the Congress of the Republic of the Philippines on the many trade control bills which were introduced, of which by far the most important was the Retail Trade Nationalization Bill. The committee was most active with regard to this Bill, enactment of which, it was felt, would disrupt the economy of the country, cause wide spread unemployment, and result in discouragement of investment capital and perhaps even withdrawal of capital. Many representations were brought against the Bill, both by the committee as such and in collaboration with other trade bodies, but, as is known, the Bill became law as Republic Act No. 1180. It is to be noted, however, that the opposition to the Bill did result in some modification of the provisions as originally proposed. It is to be noted also that Secretary of Justice Pedro Tuason, in Opinion 189, Series 1954, ruled in effect that Americans and American entities are exempted from the provisions of the Act. Pi esent indications are that the Act may be amended during the present session of Congress. While it is the understanding of the committee that the rights of American citizens and business entities are to be protected under the proposed revision of the Trade Agreement of 1946, it is of the opinion that the Chamber will have to remain watchful. A Bill which was not passed, was S. B. No. 167 which provided for an “incentive plan for exporters” through the issuance of negotiable import-certificates to export-producers. Because of the controversial nature of the Bill, the committee undertook only to provide facts and figures and to point out both the detriments as well as the possible bene fits of the scheme. Some six months ago, the Department of Commerce and Industry issued a list of import items it was proposed to ban. The committee obtained the opinions of a large and representative group of Chamber members with respect to this and sent the tabulated results to the Board which presented them, with a covering letter dated October 4, to Secretary of Commerce and Industry Oscar Ledesma. An editorial based on the committee’s memorandum was published in the October issue of the Chamber’s Journal. In closing the committee wishes to call attention to the fact that in the public hearings held during the year, Chamber representatives were under a directive stipulating that they were to act only as ob servers and make sure that their comments were not taken as officially committing the Chamber. It is felt that such instructions operate to the detriment of the interests of the Chamber, particularly as it has been noted that in these hearings the comments of Americans were listened to with considerable respect and interest; this was particularly true in the case of the congressional hearings, at which, without doubt, honest effort is made to obtain sound advice. It is recommended, therefore, that every legislative measure of importance to the Chamber be studied by the Board and by the Cham ber committees and that a definite position be taken with respect to them in line with which Chamber representatives at public hearings would be permitted to speak for the Chamber. [The President of the Chamber, Mr. Parrette, on reading the fore going at the Annual Meeting, made the following comment: “This suggestion has merit and the outgoing Board will recom mend to the incoming Board that whenever possible, Chamber repre sentatives at such public hearings be authorized to speak for the mem bership as a whole”]. ___________ Industrial Relations Committee, E. C. Hostmann, Chairman (January to June), Ned S. Fox (July to December); F. C. Bennett, Counsellor. During the first session of the Third Congress of the Re public of the Philippines, some 40 bills were introduced, some believed to be beneficial, others detrimental to Labor-Management relations. At the public hearings on these bills the Chamber was represented in a Labor-Counsel group, a joint body composed of representatives of all the various Chambers. Hearings attended included those on the fol lowing bills: (1) Nationalization of Labor Bill. This Bill was most strongly opposed by the American and Chinese Chambers, and although it did not pass, there is evidence of strong support for it in both Houses. ... (2) Profit-Sharing Bill. This Bill, for obvious reasons, gained little support (3) Veterans-Employment in All Industries Bill. This Bill, which would have required that 10% of the employees of all business firms be veterans, or widows or orphans of veterans, of World War II, was strongly opposed by all Chambers, including the Chamber of Commerce of the Philippines and the Philippine Chamber of Industries, and was not passed. ... . _ (-1) Forty-Hour Work-Week Bill. The Joint Labor Committee presented a report on this Bill to the Senate and House labor committees, showing the detri mental effects its provisions would have on the economy of the country under present conditions; despite the fact that organized labor was fully behind the Bill, it failedof ^®jjSBt®e’Abo]ish the Court of Industrial Relations. The committee op posed this Bill as it opposed a similar Bill in 1953; in so far as we know, it was not reported out by the labor committee of either House. (6) Social Security Act. Although strongly opposed by all Chambers,— whose requests that public hearings be held were not granted, this Bill was passed by Congress. After passage, a request was made to the President of the Philip pines that a public hearing be held, but again this request was not granted, and the Bill was signed. As enacted, the Act, however, only establishes a Commission to study the matter of establishing a social security system, and it is possible that after such a study, it may be decided to postpone establishment. The committee does not think that the Act will generally affect Philippine industry at this time. During the last half of the year 1954 the committee has been active in presenting the views of the Chamber at various hearings held by the Senate Labor Committee and the Department of Labor. The Senate Committee on Labor, headed by Senator Justiniano Montano, held hearings on the matter of unemployment. The Cham ber committee expressed the view at these hearings that greater indus trialization would be a principal means of providing more employment and that industrialization would be best brought about by a legislative program which would not frighten foreign capital away. It was point ed out, in particular, that such laws as the Retail Nationalization Act, the premature Social Security Act, and such proposed legislation as the “Industrial Partner” Bill and the “Forty-Hour Week” Bill, adversely affect the flow of investment capital. Members of the committee attended a number of long and stormy hearings held by the Department of Labor on the rules and regulations to be adopted for implementing Republic Act No. 1052, the Emergency Medical and Dental Care Act. The committee expressed the opinion that the law was poorly phrased and that it should not be carried out too literally, but in spite of these representations and the criticism of other Chambers and medical groups, the rules and regulations adopted, which became effective on January 1, 1955, interpret the Act far too rigorously. The committee recommends that amendment of the Act be pushed. The committee worked with the National Employment Service of the Department of Labor in simplifying the forms originally sent out to a number of large firms which called for very detailed information as to each man and woman employed. Agreement was reached with the Commissioner of the Service on a greatly abbreviated form, similar to that which is regularly submitted to the Central Bank; this will give the NES satisfactory information without requiring so much un necessary clerical work from employers. Toward the end of the year the committee prepared an article covering proposed and desirable changes in various existing labor laws, 52 which was published in the Chamber’s Journal for January, 1955, in time to coincide with the opening of the second session of the present Congress. This article outlines the Chamber approach to legislative measures, certain of the provisions of which militate against the de sired further industrialization of the Philippines. Legislative, Taxes, and Legal Affairs Committee, V. H. Bello, Chairman; E. E. Selph, Counsellor. The activities of the committee during 1954 consisted largely in reviewing approximately 200 pieces of legislation as introduced into the Congress of the Republic of the Phil ippines and, where necessary, developing interpretations and recom mendations for the use of the Chamber Board, other standing commit tees, and the Chamber membership in general. Among the bills made law during the year, the Retail Trade Na tionalization Bill, which became Republic Act No. 1180, undoubtedly created the greatest amount of discussion. The committee’s recom mendation that this Bill be not passed was fully supported by the Board, which, besides making recommendations against its passage before the House committee on commerce and industry, lodged a strong protest with President Magsaysay in collaboration with the Chinese, French, Indian, Spanish, and Manila chambers of commerce. Despite these efforts, the Bill was passed and was signed by the President. Of the bills introduced, but not passed, the following are worthy of note: H. B. No. 17, To establish a free trade zone in the Port of Manila. The com mittee had no objections to this Bill. H. B. No. 448, To require all alien temporary residents to execute and file with the Government an affidavit of good conduct [and to) pay a filing fee of PSO for each affidavit. The committee had no objecting to the filing of such affidavits but did object to the fee, which was considered exorbitant. S. B. No. 42, To provide that the term of existence of a corporation should be extendable for another period of not more than SO years. The Board agreed with the committee that the Chamber should support this Bill as both proper and timely H. B. No. 2363, To nationalize the banking system of the Philippines. The committee made no recommendations to the Board on this Bill as the various for eign banks involved were in a position more properly to oppose it and were successful in doing so. ______________ Trade Agreement Revision Committee, Victor N. Smith, Chairman; Merle S. Robie, Counsellor. The first meeting of the com mittee was held in March for organization purposes and thereafter weekly meetings were held quite regularly. Two members of the Amer ican Embassy staff attended an early meeting of the committee, by invitation, and were asked what it was thought the Chamber could do or recommend with respect to the proposed revision of the Trade Agree ment. It was decided and recommended to the Board that the Cham ber should circularize the membership asking each member firm to write to its suppliers in the United States to suggest that they urge their respective senators and representatives in the United States Con gress to extend the period of free trade so as to give more time for the discussion and negotiation of desirable amendments. Early in April such a letter was sent to each member of the Chamber. Later in April, Mr. S. W. G. Lehman, then the Counsellor of the committee, attended a committee meeting and discussed with the mem bers a meeting which members of the Board of Directors had had with President Magsaysay, and the committee was asked to prepare a brief statement in answer to various objections which had been raised in local circles against the provisions of the existing Agreement. In July the committee submitted a final draft of a statement entitled “Ana’ysis of the Arguments against the Trade Agreement.” This was presented to President Magsaysay in memorandum form and was later published in the September issue of the Chamber Journal. At another meeting, it was suggested that it would be an excellent thing to have some competent person, thoroughly familiar with the prob lems of American business in the Philippines, as a member of the panel, to be appointed by President Eisenhower, which was to negotiate on the terms of the proposed revision with a similar Philippine group. The names of three men, then in the United States, were suggested by the committee, and the matter was followed up by the President of the Chamber. However, nothing came of this as the United States panel was soon thereafter appointed. In August, the committee sent the Board of Directors its final report relative to the revision of the Agreement which was quite brief as the committee felt that not much more could be done until more information was available as to the revisions which the Philippine Mis sion would ask for. At the last meeting of the committee, held in September, it was decided to submit no further recommendations to the Board inasmuch as the proposals of the Philippine Mission were advanced largely on a political rather than an economic basis. Subsequent developments have indicated that the decision of the committee and of the Chamber Board to limit the Chamber’s state ments, was a wise one as the proposed agreement recently signed in Washington appears to have been worked out on a basis to which the Chamber can subscribe. American Chamber of Commerce Journal, A. V. H. Hartendorp, editor and manager. During 1954, with only a slight increase in expenses, the total income, chiefly from advertising, fell from previous levels to a point where, in order to keep the editor’s earnings at the 1952 level in accordance with the Board’s express desire, the Board not only authorized the transfer of the full net operating surplus to his account, but supplemented this amount by just under P 1,300 for the year. This amount, therefore, represents the net operating loss for 1954. While this loss is admittedly Vnall, it should not be allowed to continue, and, as indicated, the remedy is to be found in increasing the advertising support. An increase of only around P750 a month in adveirising carried would give the Journal the best financial year it has ever had. From all other viewpoints than the financial, the Journal has experienced an entirely satisfactory year, as the editor’s report, shortly to be distributed to the membership, will show. Mention may be made here, however, of the readership survey conducted during the year by Robot Statistics under the guidance of a special committee composed of Messrs. Harry Lee, John Lasley, and Richard Bownass, which gave unmistakable evidence that the Journal is a publication of influence and held in wide respect in all sections of the business community. All of its various regular features received favorable comment and there was not one serious criticism. The result of the survey was such as to confirm the Chamber’s satisfaction with its official organ and to indicate that it is well worth while to devote special effort toward increasing the advertising placed in the Journal. Report of the Executive Vice President, Stanley N. Fisher. The activities of the Executive Vice-President cover in some degree virtually every phase of the Chamber’s operations, but there are certain phases which are his particular responsibility to which this report is confined. These are: (1) Administration and supervision of the Chamber Headquar ters and office staff. We have been located since August in our new quarters in the Elks Club Building; the facilities and surrounding «j-e ideal and should prove adequate for the Chamber’s needs for years to come. The office staff of 11 has remained almost unchanged during the year and has been found both efficient and faithful. Personnel relations could not be better and Chamber members may be assured of efficient, willing, and courteous service from all. (2) Editing of the Bulletins. The weekly bulletins have for some years constituted one of the most useful and appreciated of all Chamber services. Further improvement has been sought and since September the bulletins have been issued with a Table of Contents which facilitates reference and upon which many members have com mented favorably. (3) Attendance at, and keeping of the Minutes of, all meetings of the Board of Directors. (4) Representation of the Chamber both in person and by con duct of its correspondence. (5) Carrying out special projects and developing new projects. Among some of the special projects are (a) Surveys conducted among both member and non-member firms to keep our files of business in formation complete and up-to-date, (b) Securing “Blue-Sunday” Law permits for many of our members, (c) Arranging for “alien registration” at the Chamber offices not only for members of the Cham bers but others belonging to the American community; last month, over a thousand persons were registered at the Chamber during a period of three days,—some 400 more than in any preceding year, (d) Edit ing, since last October, a new department in the Chamber’s Journal entitled “Chamber Business” for the purpose of keeping members reg ularly informed of the Chamber’s various activities. In mentioning the Journal, the Executive Vice-President would like to make special reference to the most friendly spirit of cooperation and collaboration that exists between him and the Journal editor. As for the development of new projects, a few may be mentioned: (a) Preparation during 1955, to celebrate the Chamber’s 35th anniver sary, of a complete Chamber Directory which will include, among other things, a full list of all the American manufacturers represented by American firms in the Philippines, (b) Holding a 35th Anniversary banquet sometime in July, 1955. An annual banquet during this month every year might provide a welcome counter-balance to the “strictly-business” nature of the annual meetings which are now held in January, (c) Development of means by which visiting American businessmen will be more systematically and more fully informed of the existence of, and the services offered by, the Chamber. This could be done through such agencies as the Chamber of Commerce of the United States, Washington, D. C., the Phi:ippine American Chamber of Commerce, New York, various air lines and travel agencies, and the like, (d) It has been noted elsewhere in the President’s report that an increase in Journal advertising of around P750 a month would give that publication the best financial year it has ever had; it is believed that a committee might well be formed with this as a specific goal. In closing, the Executive Vice-President would like to express his sincere thanks to the many persons and groups who, during his six months with the Chamber, have done so much to direct and help him in the aischai ge of his duties,—the officers and members of the Board of Directors of the Chamber, the Chairmen and members of the various standing committees, the editor of the Journal, and the Chamber office staff, and, to those, should be added the many other members of the Chamber who have on so many occasions given him the benefit of their experience and advice. Concluding Remarks of the President In conclusion, I should like to take this opportunity to thank the Directors and the members of the Chamber, and also the Chamber staff, for the splendid cooperation that has been extended to me,— and which, I feel, was responsible for a good year’s operation. 53 Address on “The State of the Nation”* *Dclivered by President Ramon Magsaysay before a joint session of the Senate and House of Representatives on the opening day of the Second Session of the Third Congress of the Republic of the Philippines, Jauuary 24,1955. Mr. President, Mr. Speaker, Members of Congress: SINCE my first report to you a year ago, significant changes have occurrtd in our country and in the world. Here at home, the most encouraging change is not meas urable in statistics. When we took over the reins of government, the nation was de moralized. There was bitter dissension and defeatism. Our people had lost faith in their institutions and in themselves. Today, there is a new spirit of confidence in our land. If this Administration can claim any outstanding achievement during the past year, it is the restoration of national self-respect and the revival of the people’s fi.ith in the democratic way of life. Our people and their Government are now as one, jointly engaged in the grand enterprise of securing for this country the fullness of freedom and prosperity. In this vital transformation, the role of this Administration has been a modest one. We have done no more than to activate the re surgence of national self-confidence and to establish the essential con ditions for its constructive expression. If achievements there have been, they have been possible because our people wanted them and worked to bring them about. In the world at large, the collective strength of the free nations increased sufficiently to deter overt acts of aggression. Thanks to the free world’s readiness to defend the peace, the danger of an atomic war is now less imminent. But grave dangers still remain. Communist imperialism has not renounced its objective of world domination. It is still actively pro moting subversion within the free nations. Even as we meet here, the Tachen islands, only a few hundred miles to the north of us, are aflame under new Communist attacks. We must remain on guard. It is against this background that I should like to consider with you today the state of the nation. National Security We have made positive progress in the strengthening of the national security. In the discharge of this basic responsibility, we have sought, first of all, the effective implementation by the United States of her com mitments under the Philippine-American Mutual Defense Treaty, upon which we must rely principally for our external defense. Amer ica has responded with a categorical commitment of immediate as sistance to our country in case of attack; and a permanent PhilippineAmerican Council has been created for the effective implementation of the Treaty. Actually, the United States military bases we now have here are America’s earnest to us of automatic retaliation to aggression. Our participation in the Southeast Asia Collective Defense Treaty, now known as the Manila Pact, has further enhanced our nation’s security. As the first regional collective defense agreement in our part of the world, this Pact extends the collective security system envisaged by the United Nations Charter. Thus, by every possible defense arrangement—bilateral, regional, and international—we have strengthened our external defense. Our internal security has improved. The alertness of the Armed Forces brought about the surrender of Luis Taruc and the death of Mariano Balgos, two of the top Communists in the Philippines. Still other Huk leaders and followers have surrendered or have been either killed or capture. Many Huk-infested areas have been cleared and put back to productive use. I must say here that these successes in the restoration of public order would not have been possible without the loyal support and cooperation of the civilian population. All this notwithstanding, I must repeat my warning against com placency. We must continue to be alert to the dangers of Communist aggression and subversion. Our gains in the restoration of peace in our countrysides must be consolidated. Our armed forces must con tinue to protect our farmers and their homes. We cannot as yet afford to lessen either our vigilance or our armed strength. Rural Reconstruction But there is more to national security than simply maintaining territorial integrity and public order. To be really secure, a country must assure for its citizens the social and economic conditions that would enable them to live in decency, free from ignorance, disease, and want. Today, a concerted effort is being exerted to bring about these conditions in our rural areas. Varied elements of our society—the Government, the youth, civic-spirited individuals and organizations, the rural people themselves—all are engaged in the great under taking of bringing freedom and progress to our barrios. We are approaching the problem along three main lines: First, improvement of our land tenure system, supplemented by land resettlement; Second, more effective aid to tenants and small farmers in the form of (a) credit on easy terms; (b) essential facilities, such as water ajid roads; and (c) technical advice on how to improve farm opera tions; and Third, more intensive community development with emphasis on self-help. The first approach, land reform, gained headway with the ap proval of the Agricultural Tenancy Act last year. This law extends greater protection to tenants. More important still, it grants them the option to choose the system of tenancy under which they would prefer to work. By choosing the leasehold system, a tenant, of his own free will, takes an important step towards economic independence. To implement the Act, we have established the Agricultural Te nancy Commission. In the short time that it has functioned, this Com mission has already proved effective in assisting tenants in the exercise of their rights. I would recommend, therefore, that Congress provide it with needed funds. However, it is not enough to provide tenants with this type of assistance. It is equally necessary that tenancy disputes be settled with dispatch. Hence, I would reiterate my recommendation for the creation of a Court of Agrarian Relations. Another essential measure in land reform is the purchase or ex propriation of large estates and their distribution to their occupants and to landless workers. Mainly owing to lack of funds, we have been unable to implement this measure to any large extent. I would urge Congress to consider anew ways and means to carry out the re distribution of large estates. We have, however, distributed public lands to landless workers at a fast rate. Last year, the Bureau of Lands issued to qualified set tlers 28,000 land patents, covering 241,000..hectares. Compared to the 10,000 land patents issued in 1953 and the »3,000 issued in 1952, last year’s total constitutes a record. Nevertheless, we must accelerate our pace. Our people, on their own initiative, are moving to public lands opened and subdivided for settlement. This is indicated by the fact that during the last year 33,000 applications for agricultural lands wire filed by independent settlers. For others who, due to poverty, are unable to proceed to settlement areas by themselves, the National Resettlement and Re habilitation Administration has opened several settlement projects. NARRA assists families to move from congested rural areas to these projects, providing them with farm implements, transportation, sub sistence up to the first crop, and other forms of aid. Under this Administration, NARRA moved 2,882 settler fami lies from crowded rural areas to about 27,000 hectares of public land. In addition, it allocated 10,000 hectares of public land to 1,718 land less families who pioneered in the settlement areas, and helped them in the survey of their clearings and in the acquisition of land titles. NARRA spent during the year under review Pl,300,000, of which 77% went as direct aid to the settlers. I would recommend that Congress appropriate the funds already authorized by it for NARRA. Our second approach consists in assisting the poor farmer get on his feet. In most cases, the vicious circle of inadequate production and insufficient credit has kept him in dire poverty. The Agricultural Cre dit and Cooperative Financing Administration has begun to break that circle by making available to small farmers credit on easy terms. At the same time, ACCFA helps them in setting up marketing and warehousing facilities, through their own cooperatives. During the last year, ACCFA greatly intensified its aid to far mers. As of December 31, 1954, it had released a total of Pl8,900,000 in loans of various types to farmers. It had organized 232 Farmers Cooperative Marketing Associations (FACOMAS) in Central and Northern Luzon and Cotabato, with a total membership of 105,943 farmers. ACCFA’s operations are still in their initial phase. They have covered only 2,375 of our 18,000 barrios. Yet, they already count with the enthusiastic support of our people. One very encouraging aspect of ACCFA’s operations is that the small farmers pay their crop loans on time. In the past, crop loans were seldom, if ever, paid. Under this Administration, there has been an important change of attitude on the part of our farmers. This healthy trend proves once more that it is sound business to invest in the people’s welfare. Clearly, ACCFA should expand its operations. I would recom mend that Congress increase its capital. The farmer’s pressing need for irrigation is gradually being met with our irrigation construction program, which we started to carry out vigorously during the past year. Four irrigation projects financed by public works funds, covering a total area of 9,000 hectares, have been completed or are nearing completion. PHILCUSA-FOA funds have financed one completed project in Nueva Ecija; another in Iloilo now nearing completion; and 54 still another in Isabela to be completed before the end of this year— covering a total area of 42,100 hectares. In addition, we have started work on 7 irrigation projects—the Agno River project in Pangasinan; the Sta. Cruz and Mabacan River projects in Laguna; the Daet River project in Camarines Norte; the Agos River project in Quezon Province; the Pangiplan River project in Negros Occidental; and the Suague River project in Iloilo. These projects, covering about 40,000 hectares and estimated to cost P22,000,000 are being financed from bond issues. Another essential feature of this program is the development of communal irrigation systems. An expenditure of P957,254.40 was incurred for the construction of 90 communal irrigation systems in 27 provinces. I have also earmarked Pl,000,000 from the Contingent Fund for the purchase of cement which the Government will contribute for the construction of permanent communal irrigation systems to be built primarily by the barrio people themselves, who, for their part, will contribute labor, and sand and gravel. Farmers from Nueva Vizcaya and La Union were the first to avail themselves of this joint venture between the people and their Government. Wherever feasible, the gravity irrigation systems are now being supplemented by pump irrigation facilities. To speed up the implementation of our irrigation construction program, existing administrative and financing policies on water uti lization and water rights should be re-examined. To provide potable water, more than 1,300 artesian wells have been completed to date in the barrios at a cost of P3,500,000. This means that we have installed an average of 4 artesian wells each work ing day. Compared with the total of 153 artesian wells installed in 1952 and 256 in 1953, this constitutes a great improvement. This year, as we get additional drilling equipment, we expect to better this record. While on this subject, I would like to commend the splendid co operation of organizations and individuals, led by the Liberty Wells Association, in the Government’s artesian wells programs. Fifteen waterworks projects costing ?2,500,000 have been com pleted. Forty more, with an estimated total cost of ?25,500,000, will be constructed within the year. Work is now going on in over 80 spring development projects which will benefit about 90,000 people. Next to water, road facilities are essential in improving the far mer’s lot. This brings us to the Administration’s highway and feeder road program. During the past year, we have constructed about 430 kilometers of feeder roads serving about 80 communities and opening new areas. In Mindanao, we have started the construction of 235 kilometers of roads which, when completed, will open large areas of agricultural, forest, and mineral lands, and connect the coastal with the inland towns. About 479 kilometers of roads were also improved in various parts of the country, of which 82 kilometers of asphalt and concrete pave ment were completed. The improvement of the interprovincial net work was started on 90 projects covering a total of 385 kilometers of concrete paving and 182 kilometers of asphalt and 29 permanent bridges. Aside from the foregoing, which were financed or are being financ ed from the Highway Fund, we have also started construction on 19 road projects and 8 bridge projects, with an estimated cost of P20,000,000, to be financed by funds from bond issues. During the first year of the program, much of the work consisted in developing practical and efficient operating methods, better plan ning and allocation of funds, and the organization of equipment de pots and maintenance crews. This year we expect the program to gain momentum. We propose to concentrate our work primarily on feeder roads to reach our long-isolated barrios. Considering our lack of funds and the enthusiasm of our rural people, I would suggest that Congress ap prove the necessary legislation authorizing the construction of feeder roads on a self-help basis. The Government would provide the funds, know-how, and equipment; and the people, their labor and locally avail able materials. The yield of our farms is not enough to support our small farmers. They are eager to produce more, but they know only antiquated farm ing methods. To help them, the Government is providing through out the country technical advice on improved farming methods, through the Agricultural Extension Service and other agencies. Better breeds of animals and high-yielding varieties of rice have been introduced. Soil classification and analysis have been extended to many areas, largely through the untiring efforts of the field men. Special mention should be made of the Margate system of rice culture as a direct means for improving the rice yield. It is now being introduced all over the country. As we help our people become better farmers, we also encourage them to make their barrios better places to live in. We tell them that the Government cannot do everything for them, that they must also help themselves. Their response has been most heartening. The spirit of self-help is sweeping our rural communities. Here again, the role of the Gov ernment is simply to tap the creative energies of our people and to provide the means by which their desire for improvement can be trans lated into permanent benefits. It is for this purpose that our health, education, and social wel fare programs are being re-oriented with emphasis on self-help. In the campaign to control and eventually eliminate mass disea ses, the active cooperation of our people is being enlisted. Our aim is to increase the effectiveness of the campaign and to make its effects more lasting. This approach has been especially useful in the suc cessful BCG vaccination and malaria control campaigns. More than 1,000 rural health units have been established as a joint venture of the national and local governments, with FOA assistance. The pre-fabricated schoolhouses now being mass produced will be set up in the barrios, also on a self-help basis, with the people pro viding the labor. We expect the steady flow of these schoolhouses to our barrios to start by next month. Meanwhile, the emphasis on vo cational education is being increased, and the community school move ment, using the methods of grass-roots democracy, is being extended throughout the country. The Social Welfare Administration has expanded its services to the rural areas and is taking an active part in community self-help projects. This is being done in accordance with a planned shift from relief to self-help activities. At the same time, it has carried on more effective disaster relief operations and maintained essential welfare and rehabilitation services. These varied social measures—for better health, wider oppor tunities for education, and more gainful employment—are now being carried out, with the use of more efficient techniques of community development. Coordination and integration on a national scale will be effected through the newly-created National Community Develop ment Planning Council. As a result of our combined efforts in agricultural extension work and community development through self-help, total production in agriculture increased appreciably last year. National production of the principal food items reached 7,200,000 metric tons, showing a selfsufficiency ratio of 114.6%. But this achievement is still short of con sumption requirements in such critical items as meat and poultry, milk and dairy products, cacao and coffee. Despite vigorous measures, we have not as yet solved the stub born rice problem. Palay production was enough for our people’s needs. But deficiencies in marketing, warehousing, and financing prevented the rice from reaching the consumer at fair prices. The NARIC should, therefore, be provided with enough funds for stabilization operations. The coordination of the activities of the NARIC and the FACOMAS must be improved. As a further measure to increase rice production, the carabao, indispensable to most of our farmers, must continue to be protected from slaughter. To improve our nutrition, other livestock must be increased in number. We note that during the past year, the number of our carabaos rose to 2,700,000, showing an increase of about 9%. Because of this increase and the ban on their slaughter, the price of carabaos has gone down considerably, making it easier for the poor farmers to acquire them. As we shift from deficiency to surplus production in the next two or three years, we must meet the problems of marketing and proces sing. Together with the farmer’s cooperatives, private trade organ izations will have to assume the brunt of responsibility for the efficient handling of our principal products. We should, therefore, encourage more of our people to go into these activities. At the same time, the Government should continue its policy of maintaining the floor price for rice and other principal products as an incentive to real, substantial gains in production. Labor When this Administration assumed office, we promised to encour age free unionism under responsible leadership. We have kept our pledge. The number of workers organized into labor unions nearly dou bled during the past year. This means that labor has improved its collective bargaining position for better wages and working condi tions. The Government’s role in this growing movement has been, not to dominate as in the past, but to provide the necessary guidance so that labor will be free, democratic, and responsible. Among other activities to achieve this end, short-term regional schools on respon sible labor leadership have been conducted in different regions of the Philippines. This program, together with a similar training program for employer and management groups, will be expanded until we shall have brought about better understanding of labor and its problems. By and large, labor-management relations improved. More col lective bargaining agreements were signed. With further encourage ment, many more will be signed this year. The enforcement of laws and measures for the protection of work ers was intensified. The Workmen’s Compensation Commission fi nished twice as many cases as it did in 1953. The Wage Administra tion Service secured for worker claimants a total of Pl,500,000 in wage restitutions. On the subject of wages, I would like to reiterate my conviction that only the most compelling reasons clearly related to the national interest could justify changes in the Minimum Wage Law. This Ad ministration will not lightly regard any action that may adversely affect the workman’s continuing struggle for a decent life. 55 Industrial Development In the field of industrial development, some progress has been achieved by private enterprise with government stimulus and en couragement. Induced by tax exemptions, 72 new industrial plants were established during the year. More processing industries are util izing local raw materials. Encouraging results in manufacturing and processing are evident from the increase by 28.2% in the output of reporting manufacturing establishments, which amounted to P 752,000,000 in 1954, compared to P586.500.000 in 1953. Another index of the improving industrial situation is the increase by 24.5% in capital-goods imports, amount ing to P 125,200,000, for the first 8 months of 1954, compared to the same period in 1953. To supplement private enterprise, the Government has taken di rect measures to promote certain industries. During the year under review, the cement plant at Bacnotan, La Union, was completed and the Insular Sugar Refining Company reopened. The Government has organized the machinery to handle the promotion and develop ment of the coconut and tobacco industries. On the other hand, the Government has leased the Manila Hotel to private enterprise, has announced the sale to private operators of 3 ocean-going vessels owned by the National Development Company, and has withdrawn from international airline operations. It is also con sidering other measures in this direction, in accordance with its policy of confining its investment activities to those phases of development essential to the public welfare. Likewise in line with the policy just stated, the Government has advanced the power development program, an essential pre-requisite to industrial growth. During the year, the Talomo No. 2-B hydro electric plant in Davao was completed. Work continued according to schedule on 2 big projects at Ambuklao and Maria Cristina, with a combined capacity of 100,000 KW—as well as on 4 smaller hydro electric projects at Digos and Talomo, Davao; Balombong, Catanduanes; and Amburayan, La Union. Work has been started on 4 more small hydro-electric projects, with a total capacity of 4,500 KW located at Penaranda, Nueva Ecija; Loboc, Bohol; Barit, Camarines Sur; and Agusan River, Bukidnon. Viewed against the immensity df our needs, these developments are modest, indeed. They do not measure up to our hopes of a greatly accelerated industrial pace that would provide work and abundance for our people. But they do indicate the significant fact that we are steadily forg ing ahead. What is more, an atmosphere of optimism and enterprise has been gradually developing and is becoming manifest in the form of actual projects and those in prospect this year. This has been ac companied by a growing realization of the necessity of providing in centives for and promoting industrial growth. Last year, I recommended in my state-of-the-nation message that we support our own economic pioneers and set up a stable baSis under which foreign investors can put their capital to work in this country. Congressional policy on these matters is as necessary as execu tive action. I, therefore, reiterate my previous recommendations. To particularize, I would urge the adoption of legislation embodying the following policies: Our Government should give full encouragement to the estab lishment by private enterprise of new industries which will advance our economy. Our development program must be based, and should rely mainly, on internal financing. We must promote the widest and most effec tive utilization of our resources. We will welcome foreign capital. To encourage and facilitate its entry, we should specify the conditions governing the repatriation of capital, the remittance of profits and earnings, the protection of foreign investment, and other essential conditions. I cannot over-emphasize the urgent need for these measures. We are facing a tremendous unemployment problem. The direct, prac tical way of meeting it is to create jobs through the establishment of new industries. National Finances The country’s financial position is stronger today than it was a year ago. The banking system is more sound. According to Central Bank data, as of October 31, 1954, total bank resources amounted to Pl,335,000,000, showing an increase of P64,600,000 compared to those of the same period in 1953. Total deposits amounted to P964.300.000, increasing by about 9%. Saving and time deposits in all banks amounted to P414,800,000, showing an increase of P61.500.000. While the financial status of the banking system is sound, their lending operations need improvement. As of September 30, 1954, the total loans granted by all banks emounted to P337.800.000, which sum is greater by P28.400.000 than that of the previous year. Of these total loans granted, those for commercial and real estate purposes increased considerably, while those for industry and agriculture decreased. This decline indicates that we have not as yet changed the customary pattern of bank lend ing in this country. I realize that complex forces make it difficult to bring about the desired shift which will give due emphasis to industrial and develop ment loan financing. But this re-orientation in objectives is impe rative. A re-examination should be made of our lending policies with a view to expanding development loans. I would urge Congress to exa mine the various proposals on this matter and enact implementing legislation either to extend the operations of our existing credit insti tutions or to establish new financing machinery for industrial and agricultural development. We should also consider the extension of more substantial credit assistance to small enterprisers and producers. The recent credit as sistance given by the Philippine National Bank and the Rehabilita tion Finance Corporation to small producers of rice, cassava, citrus, ramie, coffee, and livestock, is in the right direction. We have maintained our international reserves at a satisfactory level through the exchange control measures of the Central Bank. There have been, however, an unfavorable balance of trade amounting to $93,700,000, and an adverse balance of international pay ments, amounting to $13,600,000 as of November 30, 1954. These are symptoms of fundamental defects in our economy. They must be remedied to attain internal stability. One remedial measure is the conservation of our dollar reserves through the proper allocation of dollars among top-priority imports, giving special emphasis to capital-building items, raw materials, and basic necessities. A more permanent approach to this problem would be the adop tion of a program to promote foreign trade and to increase our ex ports. I would, therefore, ask Congress to consider the advisability of creating a Foreign Trade Commission to plan a foreign trade program and pursue its implementation; the establishment of a Bureau of Stan dards in the Department of Commerce and Industry, to help stan dardize Philippine products, especially those for export; and the crea tion of a Maritime Commission that will undertake the promotion and development of adequate water transportation. Proper incen tives for the increase of our exports should be seriously considered. In connection with the foreign trade program, I wish to empha size that the proposed revision of our Trade Agreement with the United States will require vital readjustments in our economy. We should anticipate and be prepared to meet the impact of the new situation. Government Finances In the first year of this Administration, Government finances improved. In my state-of-the-nation message last year, I stated that the ordinary operational expenses should never exceed the total revenues in any fiscal year. This we have complied with. For the first 11 months of last year, the General Fund in come totalled P545,949,737.13, against total expenditures of P535,197,009.81, thus showing a surplus of P10,752,727.32. In the same period of the preceding calendar year, the deficit amounted to P48,739,577.25. Thus, the practice of deficit spending for ordinary operating expenses has become a thing of the past. Revenue collections increased by P43,789,669.84. This is the result of greater effort in tax collection, as well as a manifestation of the new confidence in the Government. We have succeeded in reducing the operating expenses of the Government by P37,967,112.26. Since December 31, 1953, we have succeeded in restoring to the various special funds a total of P9.0C0,000, out of P17.000.000 owed by the General Fund under the past Administration. On the other hand, we have increased capital expenditures for economic development by P22.300.000 during the past year. This is an investment in the economic stability and security of this country. Our public debt, as of December 31, 1954, was Pl,168,000,000 of which P848,000,000 was incurred by the National Government, P253,000,000 by government corporations; and P67,000,000 by provincial, city, and municipal governments. The increase of P65.400.000 in the public debt outstanding by the end of 1954 was largely due to the Ad ministration’s policy of accelerating economic development. This is evidenced by additional issues of Rehabilitation Finance Corporation bonds aggregating P59,000,000, increased flotation of National Power Corporation bonds amounting to P6,400,000, ACCFA obligations of P7,000,000, and the sale of new public works and economic develop ment bonds totalling Pl 1,900,000. However, budgetary debts con tracted by previous administrations have been reduced by P18,900,000. The improvement in government finances during the first year of this Administration does not mean, however, that we are anywhere near solution of the Government’s financial problem. The General Fund deficit and the unrecorded obligations of the Government, amount ing to P275.260.000 as of December 31, 1953, must still be settled. Out standing budgetary loans amounting to P160.000.000, plus P550,000,000 in backpay obligations, must be paid. It must be clear by now that even with the increase in revenue by P43.700.000, the ordinary income of the Government is net enough to provide for all essential services. Among these are the train ing of reserves for the citizens’ army, the restoration of the 7th grade in the elementary schools, and the salary adjustments of teachers and other government employees, which have been deferred. Some impor tant projects had to be curtailed. We are studying these problems very 56 seriously, especially the salary adjustment of teachers. -1 will send you a special message on these matters in due time. Owing mainly to fund limitation, our program of capital expendi tures for top-priority public development projects and public works has not been fully implemented. Thus, our principal difficulty today, as at the beginning of our Administration, is still lack of funds. I would urge Congress, there? fore, to give full consideration to the need for additional appropria tions to expand and improve the tax collecting agencies, particularly the Internal Revenue and the Customs bureaus. - I must reiterate my previous recommendation for legislation im posing heavier penalties for tax evasion. Realizing that our current tax collections are not sufficient to pro vide for all essential public services, we must redouble our efforts to improve the tax collection machinery so that all the essential operat ing expenses of the public service can be met. The financing of capital investments and permanent public im provements for economic development is another matter. We must be prepared to increase existing tax rates, levy new taxes, or resort to public borrowing for the purpose of accelerating our economic de velopment. However, we must not countenance the use of this lastmentioned method of financing for operating expenses, except in very extreme cases involving national calamities. Economic Planning and Implementation In my state-of-the-nation message to Congress last year, I em phasized the need for a coordinated program of economic develop ment. At my behest, the staff of the National Economic Council draft ed a 5-year program, the general outlines of which I presented to the nation in an address at the Far Eastern University on March 20, 1954. The modest record which I have just reviewed, follows the general pattern and objectives of that program. ■■ Our 5-year plan has never, been intended to be the last word in economic planning. It is a continuing one. It is to be revised and up dated each year, on the basis of past performance, changing conditions, and the prospects of further advance. In this constant work of revision, constructive criticism is al.-. * ways welcome. ■ I am happy to note the mounting interest in the -first revision of the program now underway, which indicates popular sup port of this Administration’s objective of coordinated and integrated economic development. I must reiterate, however, the recommendation made in my state- • of-the-nation message last year for the revitalization of the National Economic Council as a really effective agency to plan and put into effect the economic development program. I would also recommend other essential administrative and organizational reforms to fully im plement the program, such as the establishment of a development financing agency .to arrange for the financing requirements of the pro gram. . We have found that fundamental weaknesses in the existing ad-’ ministrative machinery cannot be corrected by administrative action. These will continue to hamper our efforts, as they have in the past, unless corrected by legislation. Foreign Affairs While we have devoted much of our energies to the problems at home, our international relations have not been neglected. Our foreign policy has served as an effective instrument in the promotion of the national interest. As I have noted, we have strengthened our national security through various defense arrangements. . Similarly, we have made progress towards economic stability. The most important step in this direction was the conclusion. of the negotiations for the revision of our trade relations with the United States. The Philippine Economic Mission headed by Senator Jose P. Laurel deserves the gratitude of our people. The spirit of mutual respect and understanding in which the ne gotiations were conducted reflects credit equally on the Philippines and the United States. It is yet another manifestation of the . desire of both countries to maintain their close and mutually beneficial re lations. Here at home, Philippine-American collaboration was iloseSt' in the joint undertaking to assist our country’s economic development, through the PHILCUSA-FOA program. With the wholehearted co operation of the FOA Mission staff, we have succeeded in speeding up the various projects, many of which are now being transferred as regular operating units of the different t-gencies of our’.Government. I trust that Congress will continue to provide the necessary coun terpart funds as well as the supplementary appropriations needed to operate the essential projects in this effective joint aid program. We have also strengthened our ties with several Asian countries.. Diplomatic relations with the Republic of Korea have been estab lished. We have extended official recognition to the neVF sovereign states of Laos and Cambodia. We have reached agreement with the the Republic of Indonesia on the problem Of immigration. At 'the Manila Conference held last September, we helped ad vance’the'cause of frtedom and self-determination in Asia by our spon sorship of the Pacific Chartei and its unanimous approval. In the interest of peace and economic progress in this region, we joined the Colombo Plan as a full-fledged member. We have continued to cooperate with, the Arab-Asian members of the United Nations in matters ’ of common concern. In the United Nations, we have actively cooperated with like minded states in strengthening the fabric of international peace and security. We shall continue to uphold the United Nations Charter. The balance sheet of our international relations shows encourag ing gains. But we still have before us a catalogue of unfinished business. The reparations question remains to be settled. There is urgent need for the full implementation of the United States military assist ance program. The system of joint military defense and economic collaboration envisaged in the Southeast Asia Collective Defense Treaty is yet to be worked out. The signatories to this Treaty are due tc meet soon in Bangkok. I hope that the Treaty may be ratified by the Se nate before that meeting. The proposed revision of our Trade Agreement with the United States will require action on your part. I shall address a special mes sage to you on this matter at the appropriate time. Government of the People This Administration has made every effort to secure for our people the material benefits of democracy. It has worked equally hard to build up the spiritual strength of the nation. To this end, we have insisted upon the strict observance of moral ity in Ithe conduct of government business. We have moved swiftly and sternly against proved acts of abuse, injustice, and corruption. On the other hand, we have gone out of our way to commend worthy and civic-spirited acts. The Government has. looked promptly into reported irregula rities. The Presidential Complaints and Action Committee has ren dered valuable assistance in this regard. It has helped to make the Government truly 9 government of the people. Ip the past,, many of our people who had legitimate complaints did not air their grievances because of distrust or fear. Others thought it useless to go t6 a government deaf to their pleas. Under this Ad ministration, the people in their simple faith have not hesitated to come forward for redress. Out of 59,144 complaints received by the PCAC up to the end of last year, 31,876 cases were closed and 26,780 were being followed up in the different government offices. In the PCAC itself only 497 cases Were still pending. What cannot be expressed by these or other statistics is the service this agency has performed in demonstrating to our people that this is a Government truly responsive to their will and their needs. The PCAC has done a good job and should be given every facility to carry on its important task. I am aware of our people’s desire to see quick results in punish ing the guilty and ridding the Government of those who would pull it down by their greed arid dishonesty. We are pledged to satisfy that desire by every legitimate means. However, we cannot, we must not ignore the democratic processes which it is our duty to uphold. I must state once more that under this Government, no -one:—whether friend or foe, citizen or alien—no one will be denied due process and the equal protection of the law. But, consistent with these principles consecrated by our free way of life, we will continue to wage uncompromising war on corruption and abuse. Respect for basic human rights must continue to be one of our prime concerns. We must live up to our pledge to act as guardians of the dignity and worth of the individual. The Year Ahead These are the things that have been done and the things that still must be done. The past year has been, above all, a record of the achie vements of the people themselves. It has also been witness to our honest endeavors in the task of enriching our people’s lives. To be sure, the high hopes of our people have not all been ful filled. Some' of the things expected of us have not been done—or not done well enough—perhaps because they simply could not be done; perhaps because we have not had time enough to do them; perhaps because we have been momentarily distracted from our task. Let us admit: among some of our people, there is impatience— the impatience or great expectations, born of the boundless faith re posed upon us by our people. Far from discouraging us, this should give us fresh inspiration to outdo ourselves, to live up to our people’s faith, to spend ourselves to the limit to promote their happiness. Far from dividing us, it should bring us closer together. Our peo ple have closed ranks; we can do no less. Nothing useful, nothing per manent, can be built on a foundation of disunity. More than ever before—in all matters involving the common welfare—we must pro vide a united leadership worthy of the confidence and support of all our people. It is with this firm resolve that we should—together—look for ward to the year before us. The goal set is high. The accumulation of past and present prob lems, heavy. But you and I face them squarely—net alone, but with our great people at our side, equally determined to achieve the impos sible, equally eager to give their all, that our nation may live in dignity and freedom. May God look upon us today and give us the strength and wis dom to serve our people devotedly and well. 57 The Business View A monthly review of feete, trends, forecasts, by Manila businessmen The Government From Official Sountt JANUARY 1 — President and Mrs. Ramon Magsaysay receive some 10,000 people of all strata of society at the Malacafiang New Year reception. Jan. 2 — Announced that at President Magsaysay’s invitation, Filemon C. Rodriguez, recently resigned Chairman of the National Economic Council and general manager of the National Power Corporation, has agreed to serve as adviser to the President on econo mics and power development on a Pl-a-year basis. Jan. 3 — President Magsaysay instructs the Philippine delega tion to the ECAFE conference in Hongkong, January 6 to 12, to do what they can to promote a more rapid development of trade rela tions with neighboring countries; the delegation is headed by Under secretary of Commerce Pei fecto E. Laguio and also includes repre sentatives of the Philippine chambers of commerce, industry, and agri culture who will attend at their own expense. President Magsaysay in a directive addressed to the President and Board of Regents of the University of the Philippines urges the establishment, by not later than the 1955-56 academic year, an Institute of Asian Studies and an “Asian House” in the University, as recommended by the Asian Good Neighbor Relations Committee; Asian House would comprise an Asian library, conference and lecture rooms, and a dormitory for students from abroad here on scholarships; pro visions for the immediate construction of a building are being made. Jan. 4 — The President confers with Budget Commissioner Dominador Aytona for the purpose of cutting down budgetary estimates submitted by the different executive departments totaling around P800.000.000. Secretary of Public Works Vicente Orosa reports to the Pres ident that the construction of 4 bridges (Agusan bridge, 860 meters, Santa Clara Construction Company, P900.450; Del Pan bridge, Ma nila, 201 meters, Bernardo Sebastian, Pl,264,570; Mandalagan bridge, Bacolod, 66 m.ters, Bartolome Puson, P87.730; and Maculcol bridge, Zambalis, R S. Pangilinan, P727.950) are scheduled for completion this year also 7 stretches of concrete road in a number of provinces. Secret.-.ry Oiosa requests the release of the P2,450,000 appropriated for the m rt ni.:.,tion and expansion of the Government’s telephone . ystem, r.OuO being needed to start the installation of automa tic tele^hcnes. The President receives Economic Administrator Alfredo Montelibano who • ecommends the sale to the public of part of the stock held by the Government in the Philippine Air Lines; the Government holds 54% and Montelibano would reduce this to 34%. The President also receives Manager Manuel Mafiosa of the Me tropolitan Water District who reports that the installation of the 48inch water-main, 6 kilometers along Espana Extension, has been com pleted after 2 years time and an expenditure of P3,400,000; the line will improve the water-pressure in the Tondo, Caloocan, Malabon and Grace Park areas. Jan. 5 — The President signs Proclamation No. 104 designat ing February 14 to March 31 as the period for the 8th annual fund campaign of the Philippine National Red Cross. At a meeting of the Cabinet, the President authorizes Economic Coordinator Montelibano and the Manila Railroad Company to en ter into negotiations with the General Electric (P.I.) Inc. and the Ge neral Motors Overseas Operations for the purchase of 40 diesel elec tric locomotives, costing approximately >5,000,000 to be paid in in stalments over a period of 10 years; savings in fuel, repair services, track-maintenance, elimination of watering stations, faster train schedules, etc., are estimated at Pl,600,000 a year. With the concurrence of the Cabinet, the President extends the ban on the slaughtering of carabaos, expiring on January 31, for another year. The Cabinet allocates a lot behind the Central Bank Building to the Immigration Commission as a site for a building. The Cabi net authorizes the implementation of the P2,500,000 program for the improvement of the Government’s telecommunications system. The Cabinet also approves a proposal of the Ledesma Shipping Li nes to operate a ferry service between Manila and Cavite City and also a service to Corregidor and Bataan. The President receives members of the special mission which he created by administrative order last July to study possibilities of foreign capital investment; the mission, composed mostly of local businessmen who paid their own way, including J. W. Haussermann, Ramon V. del Rosario, Marvin Gray, Manuel Gonzalez, Leonides Virata, Central Bank Governor Miguel Cuademo, left Manila for the United States last September and returned recently; they report there is a general recognition that the Philippines because of its stra tegic location and potential resources could become the trade center of the Far East but that there is apprehension over the restrictions on remittances abroad of profits and over nationalistic legislation; Governor Cuaderno states that he was able to arrange for a >75,000,000 loan from American banks to finance a number of projects here and that some 15 large firms have indicated their intention to put up factories involving a total investment of around >100,000,000. The special presidential committee, headed by Secretary of Agricul ture Salvador Araneta, appointed to formulate a new government po licy on the acquisition of public lands by government officials and employees, reports to the President that alleged cases of “land-grab bing” in Mindanao were transactions made in good faith, in no case exceeded 104 hectares, and were the result of an “erroneous” inter pretation of a 1938 administrative order of President Quezon which was rather vague in some of its provisions, it being accepted that per mission of a superior prevailed over the prohibition against acquir ing a piece of land within an official’s own jurisdiction, whether by himself or a close relative. The report is a preliminary one and the committee will make its recommendations later. Jan. 6 — President Magsaysay receives Richard W. Pockmire, Philippine manager of the Goodyear Tire and Rubber Company, who informs him of the Company’s desire to put up a tire factory here; last month representatives of the Firestone and Goodrich com panies called separately on the President and informed him of simi lar plans of their respective firms. The President receives a report from the special presidential com mittee on the civil service, headed by Budget Commissioner Aytona, which proposes plans for better preparation and administration of examinations, faster approval of appointments, and more systematic keeping of records; the committee recommends replacing the essay type of examination by objective examinations, with results to be an nounced within 30 days, instead of after several months as at present in the case of many examinations. The President signs Executive Order No. 87 creating a commis sion for the development and maintenance of Corregidor and Bataan as national shrines;, the Commission will be headed by the Secretary of National Defense. Jan. 7 — The President holds a breakfast conference with con gressional leaders at which Senator Gil J. Puyat, chairman of the technical committee of the Laurel Mission reports on the Washington negotiations and Lt. Gen. Jesus B. Vargas, Armed Forces Chief of Staff, on the progress of the work of the Presidential Action Commit tee for Sulu Affairs (PACSUA). Senator Puyat states that “old friends of the Philippines” extended their utmost cooperation and assistance, including former Ambassadors Paul V. McNutt and Myron Cowen and Gen. Leland S. Hobbs, former JUSMAG chief. It is agreed to create a joint executive-congressional committee to study the effects of the Retail Trade Nationalization Law. The President, in a conversation with General Manager Juan O. Chioco, of the National Rice and Corn Corporation, indicates his plans to appoint Eugenio Margate, rice planter of Dipotog, Zamboanga, as a technical assistant in the Department of Agriculture with the duty of teaching his method of raising rice which is achieving extra ordinary results. Jan. 10 — President Magsaysay receives R. V. Farrell, Vice-Pres ident of the Union Carbide (International Division) Co. of New York, who informs him that his company is ready to start construction of a >5,000,000 “Eveready” battery plant in Quezon City. He also re ceives Robert Bendheim, Vice-President of M. Loewenstein & Sons, Inc., New York, who also signifies the desire of his Company to erect a textile mUl here with an initial capitalization of >3,000,000. Later the President receives former Associate Justice of the Supreme Court George A. Malcolm, here on a visit. The President receives a report from Secretary of Agriculture Araneta evaluating the country’s natural resources as follows: •Estimated potential mineral reserves on areas already surveyed (about 2,900,000 hectares.) Actual Values .......... P 861.108,000 .......... 298,092,000 .......... 28,721,772,000 .......... 4,387,773,000 ........... 1,409,990,000 Potential Values P 2.220,651.000 798.451,000 49,496,171,000 13,285,103,000 13,785,500,000 * Fishery resources................... Forest resources..................... Land resources....................... Mineral resources.................. P35.678.735.000 P79,783,876,000 The President instructs Secretary of Finance Jaime Hernandez and Budget Commissioner Aytona to study ways and means of in cluding in the Budget to be submitted to Congress the amount needed to pay, in full or in part, the salary adjustments of school teachers pursuant to the provisions of Republic Act No. 482; it is estimated the amount will reach some F17.000.000. 58 The President, upon receiving a complaint from the Filipino Flour Importers Association, inquires from Central Bank Governor Cuaderno why the Monetary Board has ordered the "de-control” of the importation of wheat flour. Jan. 11—The President instructs General Vargas to take a census of Moro "kumpits”, some of these vessels, equipped with 60 h.p. outboard motors being used for raiding attacks and able to outrun naval patrol boats, with a view to the possibility of government prohibition of such equipment; recent piratical raids have been reported on Basilan City, Dumalom, Bukidnon, and Kabasalan, Zamboanga del Norte. Jan. 12 — President Magsaysay having left Malacafiang to work on his state-of-the-nation address, Vice-President Carlos P. Garcia presides over a meeting of the Cabinet at which Secretary of Finance Hernandez explains that t^he Monetary Board decided on the “de control” of wheat flour importation as the price has now reached a stable level and that the action does not mean an unlimited alloca tion of dollars for the importation of flour as the total can not be more than the value of 7,500,000 bags which is the Philippine quota under the International Wheat Agreement. Jan. 13 — President Magsaysay certifies to the Court of Indus trial Relations the labor dispute between the Philippine Marine Of ficers Guild on the one hand and the Compafiia Maritima, Madrigal Shipping Company, and Philippine Steam Navigation Company on the other, pursuant to Section 10 of Republic Act No. 875, known as the “Magna Carta of Labor”; a strike was declared last July and is still unsettled; the action was taken with the concurrence of the Ca binet, but Secretary of Labor Eleuterio Adevoso opposed it because, as he stated, it is necessary to encourage collective bargaining as dis tinguished from compulsory arbitration as practiced in the past; other department heads favored certification as the strike had “already broken into violence.” The President endorses to Secretary of Justice Tuason for study and review the report of the' special presidential committee headed by Dr. Gaudencio Garcia (Judge Jesus Paredes, Sr. and Assistant Solicitor-General Ramon Avancena, members) which recommended the “separation from office” of three members of the Manila Muni cipal Council,—Board President Francis Yuseco and Councillors Justo Ibay and Ruperto Cristobal, accused of having accepted a to tal of P5.000 from the Lirio Terminal Market Association; the com mittee also recommended consideration of the possible prosecution of the officials of the Association for corruption of public officials. Jan. 19—The President receives Paul R. Parrette, head of the Phil ippine Manufacturing Company, who calls to discuss plans of his Com pany for putting up a palm-oil mill at the site of the projected National Resettlement and Rehabilitation Administration settlement near the Davao Penal Colony; the mill will produce hydrogenated oil, now being imported .from abroad, used in the manufacture of soap and lard. Economic Administrator Montelibano, who accompanied Mr. Parrette, informs the President that the NARRA plans to open a palm plantation in the area in connection with the mill and to give released prisoners from the Penal Colony preference as settlers and workers on the plantation. Jan. 20 — President Magsaysay organizes an Economic Plan ning Board to advise him on governmental economic and financial po licies composed of eight men with Central Bank Governor Cuaderno as Chairman and Secretary of Finance Hernandez, Malacafiang Ad viser Filemon C. Rodriguez, Dean Hermenegildo B. Reyes, Hans Menzi, and Teodoro F. Valencia as members; two others, a senator and a representative, will be appointed after consultation with the Council of Leaders. Terms of reference set for the Board include con sideration of the impact on the economy of the contemplated revised United States-Philippine Trade Agreement with recommendations with respect to the activities of various government agencies and de velopment-project priorities; recommendations with respect to re vision of the tariff structure; submission of drafts of legislation neces sary to implement the contemplated new trade relations with the United States; and recommendations with respect to measures ne cessary to encourage domestic and foreign private capital investment. Jan. 22 — Senator Jose P. Laurel returns from the United States and is conducted by the reception committee headed by Vice-Pres ident Garcia to the Luneta grandstand where he asks the people to wait as he wishes to go to Malacafiang to invite President Magsaysay to be present; the President cordially receives him and accompanies the Senator back to the Luneta, wheie he pays him and the other mem bers of the non-partisan Philippine Mission high tribute and congra tulates them on their work; the Senator himself addresses the crowd both in English and Tagalog in explaining the achievements of his mis sion; at the close, the President conducts Senator Laurel to his home on Pefiafrancia Street and then returns to Malacafiang. Senator Laurel releases the following press statement: "I am happy to return to the native land after a relatively brief sojourn in the United States as head of the Philippine Economic Mission. The mission chairmanship alTbrded me an opportunity once again to serve our people... The new Agreement is the result of arduous labors of the Filipino and American pa nels during 3 months of continuous negotiations. By this new Agreement we have secured appreciable advantages in the political and economic fields, besides in(Continued on page 82) Banking and Finance By M. D. Arnold Sub-Manager The National City Bank of New York COMPARATIVE statement of condition of the Cen tral Bank: ASSETS International Reserve. . . Contribution to the International Monetary Fund................................. Account to Secure Coin age .................................... Loans and Advances.... Trust Account-Securities Stabilization Fund. . . . Domestic Securities......... Other Assets...................... As of Dec. 31 1949 (In P46C.689 As of As of As of Oct. 29, Nov. 29, Dec. 29, 1954 1954 1954 thousands of pesos') 30,000 113,306 77,047 92,197 20,390 P428.816 30,000 106,940 37,388 225,572 61,068 P406.474 30,000 106,940 49,708 226,095 59,703 P375.259 30,000 106,940 62,547 261,102 63,858 P793.629 P889.784 P878.920 P89S.706 LIABILITIES Currency-Notes................. P555.576 Coins................. 74,384 Demand Deposits-Pesos. 117,682 Securities Stabilization Fund................................. 2,000 Due to International Monetary Fund........... 22,498 Due to International Bank for Reconstruc tion & Development. . 2,389 Other Liabilities............... 2,636 Deferred Credits............... — Capital................................. 10,000 Undivided Profits............ 6,464 Surplus................................. — P6C4.784 P608.150 P629.219 85,110 85,297 85,176 138,702 121,272 135,903 14,860 14,902 4,985 496 496 496 2,377 2,376 2,376 12,265 14,745 9,210 2,138 2,486 402 10,000 10,000 10,000 5,784 5,928 8,671 13,268 13,268 13,268 P793.629 P889.784 P878.920 P899.706 Contingent Account Forward Exchange Sale. P 6,460 The International Reserves as of December 31, 1954, were as follows: Central Bank International Reserves............... $187,629,247.73 Japan Open Account (due from)......... 19,697,727.63 Net FX Holdings other Banks................................... 65,203,616.08 $272,530,691.44 This is a decrease of approximately $10,500,000 as compared to November 30, 1954. It is pertinent to note that the amount due from Japan under the PhilippineJapanese Trade Agreement is now up to almost $20,000,000, whereas the trade agreement terms stipulate a swing balance of $2,500,000. Currency and coins issued totalled P714,395,456.32. Money remains fairly tight in the banks and in the market. Strenuous efforts have to be made to keep re ceivables somewhere near current. Unemployment is of increasing concern. All commercial banks operating in the Philippines Consolidated Balance Sheet (As of December 31, 1954) (In millions of pesos) Resources Loans and discounts................. P 409.08 Overdrafts............................................................................. 253.23 Stocks, bonds, and other securities...................... 116.10 Due from Banks, H.O., branches, and agencies......... 108.48 Due from Central Bank of the Philippines......... 118.64 Customers1 liaDilities, acceptances L C . . . 147.34 Other resources. 123.74 Total resources P 1,276.61 59 Liabilities Deposits subject to checks.......................................................... 294.72 Savings and time deposits........................................................... 405.21 Deposits of public funds.............................................................. 246.37 Capital, reserves, surplus and undivided profits.................. 121.70 Other liabilities............................................................................... 208.61 Total liabilities............................................................. F 1,276.61 Contingent Liabilities Unused commercial L/C.............................................................. P 239.74 Bills received for collection.................................................................. 19.16 Bills sent for collection................................................................. 4.14 Securities held for safekeeping........................................................... 26.98 Trust department accounts................................................................. 98.49 Other contingent accounts................................................................... 27.04 Total contingent liabilities........................................ P 415.55 Data taken from published figures Not included: Monte de Piedad & Savings Bank Republic Savings Bank 1.20 0.85 0.0975 0.06 0.90 0.60 0.0024 O.Oull 3.75 2.60 0.034 0.0195 0.15 0.04 0.15 0.09 0.055 0.025 0.70 0.355 0.21 0.125 0.16 0.055 0.23 0.085 4.05 1.40 0.16 0.13 0.265 0.175 0.015 0.008 Atok Big Wedge........ Baguio Gold Mining Balatoc Mining Co.. . Batong Buhay Gold.. Benguet Cons.............. Consolidated Mines... General Base Metals. Hixbar Gold Mining Itogon Mining Co.. . . Lepanto Cons.............. Marinduque Iron Mindanao Mother Lode.......................... Paracale Gumaus Philippine Iron Mines, San Mauricio Mining Co............................... Surigao Cons............... Suyoc Cons.................. United Paracale Min1.00 1.00 1.00 Up .13 3 075 85 75 034 038 15 033 68 21 16 3 12 03 66 20 155 065b Off .015 .85 Off .05 0313b — 3.40 Up .05 .031 Off .001 .038 Off .002 033 Up ^003 66 Off .02 20 — 15a Off .005 ,30a These figures include the assets and liabilities of the Philippine operations of foreign banks maintaining bran ches in the Philippines, but they do not take into account the vast resources of their head offices. x—Ex-Dividend xx—Ex-Stock Dividend ,02b 1,200 125,000 6,500 17,000 9.463,000 15,000 40,000 70,000 388,000 187,000 27,000 41,000 975,000 300,000 Editor’s Note: The interested reader may wish to analyze the figures given above in order to compute the amount available in the Philippine banking system to finance the country’s industrialization program. To ac complish such an analysis, the following factors must be given due weight: 1. Banks are required to maintain at all times a reserve of 18% against demand deposits and 5% against fixed and savings deposits. 2. Present regulations stipulate that the banks must also main tain a reserve of 50% against all letters of credit outstanding. This reserve figure, for purposes of analysis, is complicated by allowing banks to net the amount of export overdrafts outstanding against letters of credit outstanding with the reserve computed on the balance remaining. This imponderable may be resolved to a degree by using an arbitrary reserve figure of 25% which, we are frank to admit, is a guess. 3. With certain well defined exceptions, no bank in the Philip pines may lend to any one borrower an amount exceeding 15% of its “unimpaired capital and surplus”. Manila Stock Market By J. J. Ortigas Picornell, Ortigas & Co. December 27, 1954, to January 21, 1955 210.00 173.00 15.00 14.00 70.00 58.00 15.00 11.00 10.50 9.00 45.00 32.00 370.00 360.00 12.75 10.50 23.00 22.50 7.50 7.50 0.44 0.40 0.06 0.06 104.00 101.00 153.00 153.00 10.00 5.00 17.25 11.50 0.047 0.017 1.00 0.86 100.00 99.50 35.50 31.50 103.00 93.00 107.00 102.00 14.00 13.00 COMMERCIAL SHARES Bank of^the Philippine Bogo-Medellin Mil ling............................. Cent. Azu. de Bais... . Cent. Azu. de la Carlota ............................ Cent. Azu. de Pilar. . . Cent. Azu. de Tartar.. China Banking Corp... Cia. de Celulosa de Filipinas.................... Filipinas Cia. de Se guras x..................... Insular Life Ass. Co... Manila Broadcasting Co............................... Marsman 6s Co., pref.. Mayon Metal, class "B”................. Meralco 6-1/2%. Metropolitan Co. x.............. Philippine Air 1 Inc.............................. Philippine Guaranty Philippine Long Dist. Tel. Co., com.......... Philippine Oil Dev. Co., Inc..................... Philippine Racing Club, Inc.................. R&D4% Bonds, 1959 San Miguel Brewery, San Miguel Brewery, 7% pref, x............... San Miguel Brewery, 8% pref, x............... 102.1 Univ. Ins. & IndemWilliams Equipment, x—Ex-Dividend T—Bond sales reported in units of P100. 210.00 210.00 210.00 70.00 68.00 15.00 9.50 13.00 9.50 Ins. 12.75 .44 Up 10.00 58 13 70 50b 00 208 IS 9 36 — 320 00 50 00b 00b Up 3.00 12.25 12 .39 25 Off .50 00b 00b Up .04 — 102 06a 00b — 150 00b 9 16.00 .043 50a 22 50b 16 Off .50 1,450 .038 04 Off .003 6,252,500 04a 00 00 00 13 00b 10 00b Off Off Off .50 T 30 16,880 910 80 THE stock market, after the year-end rally, eased off on profit-taking, closing at 129.38, off 4.39 points. However, selling was not forceful and during the last few days has almost dried up. Among the individual issues, Acoje and Philippine Iron Mines ruled easier, in particular the latter follow ing the announcement of new stock issues, amounting to 600,000 shares, offered to stockholders at the rate of 1 share for every 10 shares held at the price of P3 per share. Surigao and Benguet went against the trend of the mar ket, closing firmer. The price of gold in the free market has ruled steady, closing at P 109.70 per fine ounce nominal. In the .commercial and industrial section of the mar ket, San Miguel Brewery common was off P.50. In the sugar group, Cariotas were in better demand, while Vic torias, which is traded over the counter, advanced to close at par 100, up P5. Philippine Long Distance Telephone Company common was easier in very restricted trading, as were fixed-interest securities which closed lower. Company Manila Jockey Club........................... Philippine Long Dist. Tel Co., 6% bonds (1966).................................. Victorias Milling Co., Inc.................. OVER-THE-COUNTER P 1.80 100.00 P100.00 100.00 P 95.00 Close Total Sales Pl. 80 800 100.00 P10,000 P100.00 5,231 1954-55 Range High Low 136.60 84.42 MINING SHARES 0.24S 0.11 0.0975 0.0S7S M. S. E. Mining Share Acoje Mining Co....... Atlas Cons. Ming. & Dev. Corp................ High Low Close 136.60 129.38 129.38 .145 .12 .12 .095 .09 .095 Change Total Sales Off 4.39 21,288.994 Off .04 381,000 — 2.817.893 Credit By Duncan Burn Manager, Eastern Inspection Bureau and Manager, Association of Credit Men, Inc. (P.I.) THE figures given last month from a preliminary sur vey on credits and collections proved to be fair in dications of the final survey results. On January 13, 1955, results of a consolidation of information sub mitted by 33 members of the Association of Credit Men, Inc. (P.I.) were passed on to members. Twenty-one mem bers reported no change in the credit and collection situa tion at year-end 1954 as compared with September, 1954. Seven members reported the collection situation tighter, while five members reported a somewhat easier situation. Most of those reporting changes suggested that they were very slight. The general opinion of credit executives was that the situation would have been worse at year-end had not more diligent and thoughtful and severe steps been taken to effect collections. Some sent collection 60 letters earlier, sent more and more frequent follow-ups, and used more personnel in collection efforts. Only one member reported the collection situation easier through no effort of his own. Those reporting collections tighter considered the general scarcity of money as the primary reason. Fewer customers liquidated accounts at yearend 1954 than in any previous year. Immediately after the New Year, requests for credit in larger amounts and on longer terms were much in evidence. In a survey completed January 27, 1955, a majority of reporting members of the Association reported 30-day terms were considered standard, with some including slight variations of standard 30-day terms. Figures re ported showed no improvements in balances in trade accounts-receivable at year-end. Late in January, 1955, a survey was made regarding firm policies on cash discounts and effectivity of interest charges on past-due accounts and on paying habits of customers. Information consolidated showed that 25 firms used no cash discount to encourage prompt pay ments, and of four members granting such cash discounts two used them only sparingly. While a majority reported an indication of interest charges on commercial invoices, a large number do not indicate any interest charge. Only a small number of those indicating an interest charge have made any effort to enforce the interest stipulation. This is a subject which has recently been discussed rather se riously in some circles. Most credit executives report no improvement in collections and agree that money is still tight and most see no signs indicating any immediate prospect for im provement. Some who were hopeful of improvement in the New Year have found no improvement yet. Electric Power Production (Manila Electric Company System) By J. F. Cotton Vice-President, Manila Electric Company 1941 Average—16,316,000 KWH Kilowatt Hours 1955 1954 January.......................................................... 61,315,000 57,301,000 February........................................................ 52,447,000 March............................................................. 57,779,000 April................................................................ 54,408,000 May................................................................ 57,773,000 June................................................................. 58,525,000 July................................................................. 60,206,000 August............................................................ 60,385,000 September..................................................... 59,680,000 October.......................................................... 62,184,000 November...................................................... 58,739,000 December...................................................... 62,328,000 Total.................................................. 701,755,000 Output in January was 4,014,000 kwh or 7% over January, 1954. The rate of increase is slightly lower than in previous months. Real Estate By Antonio Varias Vice-President, C. M. Hoskins & Co., Inc., Realtors REAL ESTATE sales registered in the Greater Manila area during the month of January, 1955, numbered 552, with a total value of P6,658,847, as compared with 468, with a total value of P5,162,737, registered during the preceding month of December, 1954. Of the January sales. 142, with a total value of P2,248,421, represented deals within Manila proper, while 410, with a total of P4,410,426, were transactions regis tered in Quezon City, Pasay City, and in the suburban towns of Caloocan, Makati, Malabon-Navotas, Mandaluyong, Paranaque, and San Juan. A few of the bigger sales registered during the month were: Taft Ave., between California and Oregon Sts. A parcel of 700.4 by Conchita Juachen to Carmen B. de Cruz for P 70,000. Gral. Luna cor. Muralla Sts. A parcel of 2,434 sq.m, sold by Shurdut Invest ments Corp, to the Philippine American Life Insurance Co. for 796,075. Isaac Peral cor. San Marcelino Sts. A tract of 4,137 sq.m, sold by Maria de la Concepcion Rosales to the U. S. Automotive Co. for 7275,000. San Miguel Legarda St. A property with a lot of 1,460 sq.m, sold by National Printing Co., Inc. to Eugenio C. Lopez for 7125,000. Park Ave. A property with a lot of 2,182 sq.m, sold by Pablo Cuneta to San tiago Abraham for 7135,000. QUEZON CITY Several parcels comprising of 50 lots sold Xavierville Estate, Inc. for 7450,000. by Ramona G. Vda. de Favis New Manila 10th 8s 11th St. A parcel of 2,996 sq.m, sold by Magdalena Estate, Inc. to Felipe Ysmael for 7118,898. Piedad Estate - A tract of 23,846 sq.m, sold by Dorotea de la Cruz to 773,922. Alejandro de Jesus for San Francisco Del Monte A tract of 3,291 sq.m, sold by Sofia Zarsadias 000. to Edward T. C. Tan for 725,Sra. Mesa Heights Baco St. A property with a lot of 240 sq. m. sold by Cecilio Ocampo for 726,000. Dioscoro San Juan to SUBURBAN TOWNS Caloocan A. Mabini St. A property with a lot of 20,179 sq.m, sold by La Insular Fa brica de Tabacos to Zerimar Investments for 7250,000. Malabon Tugatog. A tract of 134 parcels, having a total area of 234,140 sq.m, together with all the improvements thereon, sold by Ceramics Industries of the Philippines to the Land and Industrial Development Co., Inc., for 7575,000. Makati Forbes Park. A tract of 4,527 sq.m, sold by San Lorenzo Co., Inc. to J. Antonio Araneta for P67.905. •p eal estate mortgages registered in the Greater Ma-' nila area during the month numbered 404, with a total value of P7,506,603, as compared with 470, with a total value of P7,214,884, registered during the preced ing month of December. Of the January mortgages, 134, with a total value of P2,639,978, represented deals within Manila proper, while 270, with a total value of P4,866,625, represented deals in the cities of Quezon and Pasay, and in the subur ban towns first above mentioned. REAL ESTATE SALES, 1955 Queton Paaay Suburban Manila City City Towns Total January..........P 2,248,421 P2,152,738 P175.472 P2,082,216 P6,658,847 REAL ESTATE MORTGAGES, 1955 January......... P 2,639,978 Pl,626,001 P358.600 P2,882,024 P7,506,603 Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of December, the Office of the City Engineer approved building permits for con struction work amounting to P1,823,750. For the same period in 1953, the volume of work authorized amount ed to P2,369,675, in comparison with P2,509,385 in 1952 and P2,876,860 in 1951. Some of the big projects that were started during the month under review were: A 3-story commercial building owned by Li Siong at 1024 Lavezares Street, cosdng P90.000; On Paz street, cornel Sagat, Paco a 3-story club house for the Paco Chinese Chamber of Commerce, estimated at P55.000; A garage for Philippine American Export Corp, at 190 V. Mapa, costing P25.000. A tabulation of the monthly volume of authorized construction during the past two years, as compiled by the City Engineer’s Office, Manila, is as follows: 61 1953-1954 PRIVATE BUILDING CONSTRUCTION IN MANILA 1953 1954 No. January.. 475 February......... 528 March.. 555 April. 516 May.. 554 June.. 456 July. 402 August... 314 September . 432 October........ 464 November......................... 345 December............. 347 Value No. Value P3,742,310 408 1 * 3,825,955 4,299,776 536 5,324,500 5,172,855 411 3,869,670 4,123,120 447 2,628,820 7,204,600 413 2,543,360 5,578,290 411 5,763,650 7,091,415 349 2,314,355 2,980,460 326 2,138,790 5,394,820 349 2,314,335 3,659,340 341 3,142,440 3,704,580 305 3,013,465 2,369,675 281 1,823,750 Total................................ P55,321,241 P38.703.090 The decline in construction-volume can be attributed to the fact that most of the new industrial plants being established are situated outside the city where land values are cheaper, transportation accessibility is easier, and taxes are lower. Besides the projects authorized by the City during the month of December, there are several big construction works for the Government and for semi-government enti ties in progress during the period under review for which no building permits are necessary. The Boy Scout Head quarters, costing P500.000, is being erected at the former site of the U. S. 31st infantry Headquarters. Across the street from the City Hall is the Government Service In surance System Building, which, according to estimates, will cost P4,000,000. Prices of essential building items remained firm during the period under review, but with a tendency to go up if the threat of war in Asia continues. Some traders feel that the Government should stock pile materials which cannot be manufactured locally, like plumbing fixtures and steel products. Arrastre Service, Manila (Port Terminal Service) By Francisco Dblcado General'Manager, Delgado Brothers, Inc. TONNAGE handled over the piers in the Port of Ma nila for the month of January, 1955, 115,469.23 tons, was slightly lower than that for the month of De cember, 1954. It would have been higher if the port authorities had not followed a more liberal policy in ap proving shipside-delivery of cargoes not included in the list of items normally discharged at shipside. This was re sorted to to prevent possible congestion on the piers. During the first few weeks under review, the frequency of arrival of heavily-laden vessels was noticeable, and receiving and delivery operations were quite active. There was, however, a marked slump in operations during the last week of the month. A total of 124 vessels called at the Port of Manila in January, 1955, compared to 118 vessels that dropped anchor in December, 1954. Port authorities have coordinated their activities in more vigorous efforts to rid the waterfront of undesirable elements. Rigid screening has been planned, and proper credentials will have to be presented by waterfront workers and others before they will be allowed to enter the Customs or piers zones. Recent reports in the local newspapers concerning arrests of pilferers, pickpockets, and smug glers along the Manila waterfront, prove the effectivity of the campaign. Additional terminal handling equipment arrived re cently for Delgado Brothers, Inc. for use in the Port of Manila. More is expected to arrive during the next few weeks. Orders have also been placed for aluminum baggage-handling equipment, of the latest type available in the United States, to help make the Manila passenger ter minal service comparable to the better passenger terminals abroad. TONNAGE HANDLED IN THE PORT OF MANILA Dockside Shipside and Bulk January, 1955.................... 115,469.230 32,651.714 Note: Figures for bulk cargo do not and, in succeeding reports, will not include ga soline and/or oil brought in by tankers which heretofore averaged 50,000 to 60,000 tons a month. Ocean Shipping and Exports By E. H. Bosch Secretary-Manager Associated Steamship Lines TOTAL exports during the year 1954 showed an in crease of 137,439 tons over exports during the year 1953; 1,692 vessels lifted 5,090,954 tons of exports during 1954, as compared to 4,953,515 tons lifted by 1,634 vessels in 1953. Commodities which registered sharp increases over the year 1953 figures were: hemp rugs, from 613 to 1,758 tons; junk metal, from 2,441 to 7,326 tons; plywood, from 78 to 1,298 tons; sugar, refined, from 1,364 to 6,030 tons; sugar, muscovado, from 981 to 3,099 tons; and transit cargo, from 1,226 to 3,921 tons. Exports during the year 1954 as compared with ex ports during the year 1953 were as follows: Commodity Alcohol.......................................... Beer................................................ Charcoal....................................... Fiber, buntal............................... Cigars and cigarettes............... Coconut, desiccated.................. Coconut oil.................................. Concentrates containing cop per, gold, silver, lead, and zinc............................................ Concentrates, copper............... Concentrates, gold.................... Concentrates, lead.................... Concentrates, zinc.................... Copra............................................ Copra cake/meal........................ Embroideries........................ Empty cylinders Fish, salted.................................. Foodstuffs, canned.................... Fruits, fresh................................. Furniture, rattan....................... Glycerine...................... Gums, copal................................ Gums, elemi............ Hemp............................................ Hemp rugs................................... Household goods and personal effects........................................ Junk metal..................... Kapok........................................... Kapok seeds................................ Logs.................................... Lumber.................................. Molasses....................................... Nuts, peanuts................. Ores, copper................. Ores, chrome............................... Ores, iron..................................... Ores, manganese.................. Pineapples, canned................... Plywood and plywood pro ducts ............................................. Rattan, round (palasan)......... Rice............................................... Rope............................................ Rubber......................................... Shells, shell waste........... Shell buttons........... Skins, hides............. Sugar, cent. raw. Sugar, refined......... Sugar, muscovado.. Tobacco....................................... Vegetable oil. Veneer................. Wine and liquors.............. Transit cat go.............................. Merchandise, general............... 1954 81 tons 5,635 36 146 249 50,876 65,732 1953 146 tons 6,516 22 51 222 52,272 58,589 5,684 4,128 ” 77,415 43,018 — 1,066 — 2,819 — 954 758,002 592,267 73,004 64,589 3,967 3,515 2,047 3,393 124 205 11 39 1,320 1,313 7,391 8,897 3,425 2,231 1,502 921 77 61 764,442 bales 847,649 bales 1,758 tons 613 tons 5,079 3,880 7,326 2,441 132 73 104 517,666,523 bd.ft. 491,563,059 bd.ft. 62,066,277 56,761,681 205,385 tons 173,261 tons 445 ” — 1,229 — 427,059 555,068 tons 1,053,336 1,182,777 8,001 23,282 34,278 80,915 1,298 78 2,837 2,688 6,636 2,334 4,174 4,239 281 262 951 613 117 98 481 1,183 931,215 795,940 6,030 1,364 3,099 981 11,583 14,859 736 398 564 376 6 34 3,921 1,226 12,933 8,872 62 Freight Car Loadings By Josb B. Li bum ao Traffic Manager, Manila Railroad Company LOADINGS of revenue freight during the month of December, 1954, totalled 5,880 cars. This was a decrease of 146 cars, or 2.42% less than the loadings during December, 1953, of 6,026 cars. The decreased carloadings were registered in the 2nd district by 1,085 cars, 4th district by 51 cars, 5th district by 33 cars, and North Harbor by 20 cars. Offsetting these decreases were the improved car loadings in the 1st district by 716 cars, 3rd district by 267 cars, and Manila proper by 63 cars, resulting in a net decrease in carloadings of 143 cars. Revenue freight carloadings by group commodities for the month of December were as follows: December-Tonnage Group Commodities 1954 1953 Products of agriculture.................................... 61,739 53,415 Animal products.................................................. 376 -631 Products of mines.............................................. 708 1,311 Products of forests............................................. 7,981 10,158 Products of manufactures................................ 35,220 19,389 Merchandise less than by carload............... 4,001 7,486 Total....................................................... 110,025 . 92,390 There are 37 items considered in this review, with 21 items registering an aggregate increase of 30,636 tons, and 26 items an aggregate decrease of 17,635 tons. Of the items registering increases, the more important were: centrifugal sugar, 13,655 tons; sugar cane, 7,947 tons; cement, 3,130 tons; rice, 1,663 tons; miscellaneous manufactures, 1,066 tons; logs, 763 tons; and soft drinks, 619 tons, or an aggregate total of 48,870 tons. On the other hand, among the items registering decreases were: merchandise less than by carload, 3,485 tons; lumber, 2,520 tons; refined sugar, 2,302 tons; copra, 744 tons; fuel oil, 743 tons; stone, sand, and gravel, 696 tons; and palay, 498 tons, or an aggregate total of 10,988 tons. The resumption of the operation of the Insular Sugar Refinery was in part responsible for the increased carload * ings in centrifugal sugar; in part also the greater rail move * ment of sugar cane made possible by the further rehabili tation of plantation tracks in the cane areas. There has been a continuous shipment of cement since the operation of the Bacnotan Cement Plant began. The importation of rice by the NARIC accounted for increased carloadings in rice, specially the big shipments of this commodity to the Bicol region. December was also a rice-harvest month. The opening of new industries accounted for the increase in the haul of miscellaneous manufactures. The growing habit for taking this refreshment has increased the ship ments of soft drinks. The extension of lines of communi cation and the replacement of weak posts has improved the carloadings of logs, not to mention the continued export of this item to Japan. The decrease in carloadings of merchandise shipped in less than carload lots, was due to the decrease in imports through the Port of Manila, with only 198,307 tons in December, 1954, as compared with 249,847 tons in 1953. There was • less movement of lumber because of rela tively weak prices locally and lesser construction. Sand, gravel, and stone shipments have also decreased in consonan ce with construction activities. Movement of refined sugar from the Visayas to Legaspi has slackened the movement of this commodity from centrals in Luzon. There has been less export of copra from Luzon through Manila. The following month is expected to improve because of the approaching peak in sugar milling. It is also ex pected that the proposed revision of the United StatesPhilippine Trade Agreement will at least ease the doubt and hesitation which has affected many business ventures and will lead to greater effort to enlarge business activities. Mining By Hbnry A. Brimo President Philippine Gold Producers Association, Inc. IN the absence of any startling developments or news concerning the operations of Philippine gold producers, attention last month was concentrated on the local gold market and the Gold Subsidy. As the month began, local prices again exhibited weakening tendencies, this reemphasizing the necessity of getting the subsidy under way as quickly as possible. As the month progressed and buyers became so scarce as to create a virtual emergency, the Gold Subsidy Board acted swiftly and et ectively, finally making possible the beginning of actual sales to the Central Bank under the terms of the Subsidy Law. The initial sales were made by the San Mauricio Mining Com pany and the Surigao Consolidated Mining Company in the amounts of 4,501.836 ounces and 2,340.432 ounces refined gold, respectively. The first payments were made on January 21, 1955. The local market improved following news of the sales to the Central Bank and was thereafter able to main tain itself at approximately the same over-all average as the previous month. High sales for the month were made at P 109.65 per ounce bullion, while low sales were made P 108.60. According to initial reports, all the member-mines of the Philippine Gold Producers Association have qua lified as marginal producers and are, therefore, at least temporarily entitled to the top subsidy price of Pill.72 per ounce refined. However, it should be borne in mind that the subsidy cannot absorb all the local gold produc ed, and, hence, local producers are still dependent on the local market for approximately 50% of their sales. This is because of a provision in the Law which limits the fund from which the premium is paid exclusively to the amount of taxes, both direct and indirect, which gold producers generate. It may be mentioned, in passing, that the present condition of the local gold market is one that has not been experienced since its inception in early post-war days. For the first time, local buyers appeared unable to absorb all local gold production, at least at current levels. Were it not, therefore, for the timely subsidy, it is likely that prices would have declined by several pesos, or more, per ounce. Even with the subsidy under way, it is significant that local gold prices remained approximately P2 lower than the subsidy level. As the month ended, both buyers and producers viewed the price situation with some ner vousness, notwithstanding the stabilizing influence of the subsidy. No crisis is expected but the present con dition of the local market bears watching. Lumber By Pacifico db Ocampo Secretary- Treasurer Philippine Lumber Producers’ Association, Inc. DURING the month under review, December, 1954, the Philippines exported 55,531,915 bd. ft. of logs and lumber, 10,635,598 bd. ft. more than the pre ceding month. The increase was mainly due to the rise 63 in the shipments of logs to Japan, from 33,053,160 bd. ft. in November to 43,356,462 in December, or an increase of 10,303,302 bd. ft. The exports to the United States and Canada decreased by 1,590,989 bd. ft., from 5,741,717 bd. ft. in November to 4,150,728 bd. ft. in December. Ex ports to all other countries increased by 1,923,285 bd. ft., from 6,101,440 bd. ft. in November to 8,024,725 bd. ft. in December. The following are the figures for the logs and lumber in bd. ft. inspected for export during December, 1954, as released by the Bureau of Forestry: Western Mindanao Lumber Co lne........................................................ West Visayan Timber Co................ Woodworks, Incor porated. ........................................ Japan 2,388,228 Japan 200,000 U.S.A. 92,411 Africa .40,872 Korea 1,200,000 Total........................................................................ 4,571,643 50,960,272 Shipper Aguinaldo Development Co............ Agusan Import 8s Export Co., Inc. American Timber Export Corp.... American Rubber Co......................... Anaktn Lumber Co........................... Basilan Lumber Company...................................... Brigido R. Valencia........................... Bislig Bay Lumber Co., Inc.......... Cagayan Redwood............................. Calapan Lumber Co.......................... Chunusa Co., Ltd............................... Cipriano Luna Lumber Enter prises .................................................. Constantino Villanueva................... Cuison Lumber Co., Inc................... Dee Cho Lumber Co., Inc............................................. Dy Bun Chin....................................... Dy Pac 8s Co., Inc............................. Extensive Enterprise Corp.............. F. E. Zuellig, Inc................................ Findlay Millar Timber Co........................................ General Lumber Co., Inc................. General Enterprise Inc..................... G. S. Mafialac..................................... Gonzalo Puyat 8s Sons, Inc............. Hercules Lumber Co., Inc............... Insular Lum ber Company...................................... Jebanaur 8s Co., Ltd.......................... Johnston Lumber Co., Inc.............. Jose J. Tirador.................................... La Villa de Manila............................ L. A. Johnson............................................. Getz Bros. 8s Co., Inc....................... Lee Chao............................................... Luzon Manufacturing Ent., Inc.. . Martha Enterprises, Inc................... Nasipit Lumber Co., Inc............................................. North Camarines Lumber Co......... Ralph W. Dempsey........................... Redwood Co......................................... Sanchez Logging Co.......................... Sta. Clara Lumber Co., Inc....................................................... Sta. Ines Logging Enterprises........ Standard Sawmill............................... T. H. Valderrama.............................. Tirador Lumber.................................. Valderrama Lumber Co., Inc......... Valeriano Bueno................................. Visayan Sawmill................................. West Basilan Timber, Inc............... Volume in Board Feet Destination r Lumber Logs Japan 848,954 Japan 474,195 U. S. A. 12,866 Japan 1,712,289 Japan 4,310,000 U. S. A. 561,264 246,267 Hongkog 202,356 Japan 551,970 Japan 2,806,617 Japan 3,800,000 U. S. A. 77,948 U. S. A. 102,587 Korea 1,639,936 Japan 905,884 Hongkong 5;000 • 700,441 Japan . 860,000 Guam 15,384 U. S. A. 12,000 Japan 475,040 Japan 559,000 Japan 1,072,916 U. S. A. 25,697 Okinawa 465,136 Japan 3,428,220 Formosa 1,344,198 Japan 2‘0,452 Japan 1,184,333 Japan 51,337 Japan 1,149,999 U. S. A. 1,120,084 Africa 583,597 Canada 53,174 Hawaii 39,689 Japan 1,100,000 Japan 1,751,269 Formosa 371,096 Korea 599,957 U. S. A. 84,057 Hawaii 44,511 Formosa 772,552 Japan 200,099 Japan 900,000 Japan 1,489,000 U. S. A. 610,987 350,000 Japan 3,250,000 U. S. A. 150,000 U. S. A. 205,831 Japan 1,715,413 Japan 1,688,593 U. S. A. 301,415 Japan 646,612 Japan 102,191 Japan 1,000,000 Japan 679,532 400,000 U. S. A. 124,140 Japan 430,867 Japan 500,452 Japan 433,000 SUMMARY OF EXPORTS DURING DECEMBER, 1954, AR RANGED 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............................................. — 43,356,462 43,356,462 United States.............................. 3,121,924 975,630 4,097,554 Korea............................................ — 3,439,893 3,439,893 Formosa........................................ — 2,487,846 2,487,846 Africa............................................. 624,469 — 624,469 Okinawa........................................ 465,136 — 465,136 Hongkong..................................... 207,356 700,441 907,797 Hawaii........................................... 84,200 — 84,200 Canada................. ........................ 53,174 — 53,174 Guam............................................. 15,384 — 15,384 Total..................................... 4,571,643 50,960,272 55,531,915 RESUME of Exports to: Lumber Logs Total (Bd. Ft.) (Bd. Ft.) (Bd. Ft.) Japan......................................... 43,356,462 43,356,462 United States and Canada.. 3,175,098 975,630 4,150,728 Other countries..................... 1,396,545 6,628,150 8,024,725 Totals.......................... 4,571,643 50,960,272 55,531,915 Trend of Exports to: This Month Month Ago Year Ago Lumber Logs Lumber Logs Lumber Logs (Bd.Ft.) (Bd-Ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) Bd.Ft.) 43,356,462 — 33,053,160 845 41,834,287 Japan..................... United States and Canada............. 3,175,098 975,630 3,687,752 2,053,965 3,485,696 Other countries... 1,396,545 6,628,180 1,404,826 4,696,614 997.3Q1 2,121,895 1,536,553 Total. . . ,571,643 50,960,272 5,092,578 39,803,739 4,483,842 45,492,735 Arrivals of logs and lumber in Manila during the month under review, December, 1954, aggregating 6,798891 bd. ft., a decrease of 1,022,382 bd. ft., as compared to arrivals during the previous month of 7,821,273 bd. ft. During the month under review, December, 1954, prices in the local wholesale market slightly increased, compared with those of the previous month—P125P130 to P130-P140 for white lauan and from P150P165 to P160-P175 for red lauan. Apitong remained unchanged at P130-P140 per 1000 bd. ft. npHE Philippine Lumber Producers’ Association, Inc. J-jointly with other associations of shippers in the Philippines, vigorously presented their opposition to the increase in freight rates adopted by the Associated Steam ship Lines on shipments from the Philippines to the United States, at a conference of export producers and the Asso ciated Steamship Lines called by Secretary of Commerce and Industry Oscar Ledesma. The Lumber Association, through its President, Mr. A. de las Alas, described the precarious situation of the industry and the imminent possibility of loosing the American market notwithstanding the great demand for Philippine mahogany there. He pointed out that after spending considerable amounts of money to recapture the American market after the war, and after having succeeded in securing the acceptance of Philippine mahogany by American consumers at no little COMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF NOVEMBER AND DECEMBER, 1954. Period Lumber in Board Feet Logs in Board Feet Grand Total Western States States" * Gulf, -h.. States -fill Others Total Western Sta tes Eastern Gulf States States All Others Total November, 1954..................... 2,546,089 500,000 100,000 ■ ' 500,000 3,646,089 . 1,073,186 321,822 458,968 199,989 2,053,965 5,700,054 December, 1954..................... 1,865,195 492,271 443,350 321,108 1,121,924 773,468 — 202,162 — 975,630 4,097,554 Difference ^Increase -H 680,894— 7,729— 343,350 + 178,892— 524,165— 299,718— 321,822— 256,806— 199,989— 1,078,335— 1,602,500— 64 effort, it would seem that, due to prohibitive freight rates, the American market will be lost if the Government does not take action to maintain the exportation of lumber to the United States. The potential of the lumber indus try is so enormous that if properly developed, it would unquestionably play a large part in the stabilization of the nation’s economy, he said. He was particularly cri tical of the present move of the shipping combine to in crease the emergency rates by $3. Manila Hemp By Frank P. Hill Vice-President and General Manager Macleod and Company of Philippines IN last month’s report it was stated that the total bal ings in the Philippines for 1954 were 774,982. Actually that figure does not include decorticated abaca, known in the trade as “deco”. In 1954, 17,294 bales of decorticated abaca were produced, making a total of 792,276 bales for the year, as compared with 866,671 bales in 1953 (including “deco”). In the past “deco” balings and ex ports were not included in the statistics at the end of these articles. Production of “deco” fiber is increasing, and from now on we will give those figures each month. There are two new decorticating plants in the Davao area, mak ing a total of three. Prices for all grades of Davao and non-Davao fiber improved during the month in all consuming markets, but there was little demand in the United States. Rope makers there covered their requirements with Central American abaca while Davao producers and merchants were keeping supplies off the market, which they did for se veral weeks prior to January 13. Whether or not the up ward trend in prices will be sustained, depends chiefly upon demand in the United States. Prices for British East African sisal increased about £6 per ton in .the London market. The Philippines-Japan trade agreement was again extended. The usual statistics are given hereunder: Balings—January, December Inclusive 1954 1953 1952 1951 1950 Davao................................... 453,396 500,279 507,469 502,412 389,151 Davao (Deco).................... 17,294 10,516 17,085 18,827 12,321 Albay/ Camarines/ Sorsogon.......................... 120,782 157,886 178,192 229,795 167,560 Leyte/Samar...................... 120,413 107,171 105,805 154,163 120,683 All others............................ 80,391 90,819 78,768 92,396 75,539 Total............................ 792,276 866,671 887,319 997,593 765,254 Exports—January, December Inclusive 1954 1953 1952 1951 1950 United States and Ca nada .................................. 191,817 292,382 360,073 554,726 403,513 —do— (Deco)............ 6,605 9,392 18,729 17,709 6,000 Continent of Europe.... 176,577 179,612 157,736 163,373 121,894 —do— (Deco)............ 1,516 78 — — 650 United Kingdom.............. 106,077 107,249 96,502 170,028 84,662 —do— (Deco)............ 2,665 262 592 212 328 Japan................................... 218,464 235,056 203,707 130,127 103,890 —do— (Deco)............ 2,474 978 1,204 1,992 8,090 South Africa...................... 11,650 9,850 9,000 15,777 7,200 China.................................... 3,422 1,595 5,435 7,529 13,587 India..................................... 8,084 9,550 6,190 5,656 8,130 —do— (Deco)............ 50 — — — — Korea.................................... 17,842 1,580 600 — 3,100 Australia and New Zea land................................... 6,264 3,500 2,215 4,450 1,826 Others................................... 8,367 1,745 70 — 947 —do— (Deco)............ 25 — — — — Total............................ 761,899 852,829 862,053 1,071,579 763,817 Copra and Coconut Oil By William S. Rice, Jr. Copra Buyer, Philippine Manufacturing Company THE market maintained a steady to firm tone in Jan uary, and the general price level continued a slow upward trend. Prices failed to advance in accord with many predic tions for a substantial rise in January. European specu lators were generally credited with preventing this by depressing the market through considerable active sel ling which kept our export markets in a confused state. Many Philippine exporters and local dealers were antici pating a seasonal rise because of very low production the first half of the month, and they resisted selling at market prices until the last half of the month. The European sales continued however; and first-hand sellers were un able to hold off longer as production improved. On Jan uary 21, prices reached the low point of the month as a wave of first-hand selling hit the market. European con sumer interest then appeared, causing sellers to react sharply, but buyers resisted the sellers’ quickly inflated ideas, and new speculative sales caused the market to close cautiously easy at month-end. Indonesian copra appeared as a factor several times, but it has become increasingly difficult to know what In donesia is doing since it commenced trading with Communist China. Evidently, recent negotiations have been in pro gress with both Europe and Communist China, and at month-end a sale for February shipment to China was rumored closed. Therefore, Indonesia appears to have been removed as a potentially bearish factor in world’s markets for the near future. the free Copra and Coconut Oil Prices Copra: High Close West Coast, c.i.f. per short ton nearby and afloat......................... 8182.50 3170.00 3180.0C Europe, c.i.f. per long ton, 45-60 days..................................................... 3212.00 3195.00 S202.50 Manila, fresh, resecada basis, per 100 kilo3 at bodegas 30 days.. . . P33.00 P31.00 P32.50 Coconut Oil: West Coast, c.i.f. per pound, bulk 45-60 days........................................ 13-1 8f 12P 12-3,4^ East Coast, c.i.f. per pound, bulk nearby and afloat......................... 14<£ 13< 13-1, 2< Copra Cake and Meal Prices. The Pacific Coast market continued tight with a further price advance up to $76.00 c & f Los Angeles. This continued firmness seems to have been largely due to the fact that Pacific Coast buyers had earlier allowed Europe to buy good quantities of Philippine production, and by January the lack of arrivals from the Philippines was being felt most acutely. European buying-interest continued active and competitive to mid-January, but then fell dormant, and there have since been few indication of possible addi tional interest. It is difficult to say whether this lack of interest will continue. Copra Statistics Philippine Copra and Coconut Oil Exports (In long tons') Monthly Average 1953 1954 25,957 24,376 17,526 30,828 5,872 7,903 Copra Exports United States..................................................................... Europe.................................................................................. Other countries.................................................................. Total................................................................................. 49,355 63,107 65 Coconut Oil Exoorts United States..................................................................... Other countries.................................................................. 4,728 5,292 155 120 Total.............................................. 4,833 5,412 Manila and Cebu Copra Arrivals (In metric tons) Manila Average—1954.......................................................... 8,741 November, 1954. . 16,199 December, 1954............................................... 13,529 January, 1953.. 8,448 January, 1954................................................ 13,038 January, 1955........................................................... 9,856 Cebu 11,537 18,502 18,443 12,662 15,490 15,458 Total 20,278 34,701 31,982 21,130 28,528 25,314 and the usual shutdown through early January. There fore, December was a low-production month, as January, 1955, will also be. In fact, the calendar year 1954 was about 18% down from the regular Philippine production-standard, due mostly to lower United States demand, in turn caused by consumers keeping ccconut inventories at a low be cause prices were constant with no signs of increasing prices sufficient to cause such spurt-buying as usually follows rising and falling markets. It is estimated that the consumer inventory is at its lowest since 1947, so that increased copra or nut prices would cause speculation and increased buying. However, indications still point to a steady market for another 30 days, continuing the long record-level. The shipping statistics fcr December, 1954, are as Philippine and Indonesian Copra Exports (In metric tons) Philippine Copra Exports* Indonesian Copra Exports 1954 1953 1954'53 1954 1953 1954,:53 January.......... 53,992 41,025 131.6% 20,653 14,230 145.1% February.... . 58,879 38,672 152.3% 25,368 18,884 134.3% March............. 60,919 50,168 121.4% 23,209 19,559 118.7% April............... 55,951 48,745 114.8% 20,546 17,258 119.1% May................ 65,249 36,536 178.6% 36,146 5,854 617 5% June................ . 75,978 48,144 64,359 157.8% 21,465 17,266 124.3% July................. 82,513 128.2% 22,244 29,586 75.2% August............ 93,093 71,010 131.1% 34,209 24,085 26,140 130.9% September.... 86,717 75,804 114.4% 21,445 112.3% October.......... 93,920 83,610 112.3% 21,552 29,409 73.3% November.. 77,212 73,510 105.0% December... 68,417 62,629 109.2% Total.......... 872,840 694,212 125.7% 249,477 199,631 125.0% 'Include* coconut'oil'exporta converted to copra. follows: Shippers Pounds Franklin Baker Company................................................... 2,342,900 Blue Bar Coconut Company.............................................. 1,078,040 Peter Paul Philippine Corp................................................ 1,117,300 Red V Coconut Products, Ltd........................................... 2,499,300 Sun Ripe Coconut Products, Inc...................................... 508,500 Cooperative Coconut Products, Inc................................ 67,000 Total........................................................................ 7,613,040 Sugar By J. H. d’Authrbau Philippine Sugar Association Production and Future Prospects. Production continued low during the first half of January, largely due to heavy rains. Arrivals at Manila were extremely poor, and Cebu arrivals continued the pace set injDecember. This situation improved considerably during the last half of the month as arrivals rose generally to fairly good levels. Various bullish factors coincide to indicate that prices should advance more definitely in February: (1) Philip pine export commitments for February are estimated at 70,000 to 80,000 long tons of copra, which is unusually high for this short month of seasonally low production; (2) all shipments of crude coconut oil for February arrival on the Atlantic Coast are reported sold; (3) reported sales of Indonesian copra for February shipment to China re move Indonesia as a potential source of supply for Feb ruary; (4) experienced observers of the European market feel that there are some consumer requirements yet to be covered in Europe; (5) the international situation sur rounding Formosa tends to be a bullish psychological factor. A possible moderating factor is current doubt re garding the position of speculators. If the heavy Feb ruary commitments to Europe are still largely held by speculators as opposed to consumers, there is the possi bility that continued speculator sales could prevent sub stantial price advances. Also, copra production in Feb ruary this year will likely be larger than in previous years. •Desiccated Coconut By Howard R. Hick Peter Paul Philippine Corporation THIS report covers the period from December 15, 1954, to January 15, 1955, during which time co pra prices and raw nut prices were at a standstill, continuing the record-long price plateau of the post-war period. Desiccated coconut factories followed the general pattern of no production during the Christmas holidays THIS report covers the period from January 1 to Jan uary 31, 1955. New York Market. It has been a dull and disappointing month as regards sales. The quota com bined with approaching Cuban production have produced serious semi-stagnation. Business opened and remained steady throughout at 5.90/95/ except for a brief fling on January 24 and 25 when moderate sales were made to refiners, including Philippines, at 5.97/ and 6.00/ for Feb ruary and March arrivals. The market reverted almost immediately, however, to the former position of buyers 5.90/, sellers 5.95/6.00/, and little doing. Refined prices remained unchanged throughout the period. The Porto Rican stevedores’ strike is still unsettled and ex pected sales-pressure from this source, as soon as settle ment is reached, is undoubtedly a bear-factor in the mar ket. On January 5 the New York Longshoremen’s As sociation ratified the 2-year agreement with the New York Shipping Association containing “no-strike” and “no lock out” clauses. President Eisenhower is reported to be agreeable to prompt revision of the U. S. Sugar Act by Congress. Both United States beet and cane interests are seeking increased quotas. Reported sales of actuals totalled approximately 192,160 long tons, of which 78,000 tons were Philip pines. Exchange operations for the period approximated 148,750 short tons. Deliveries of refined for the period December 26 to January 22 were 545,477 short tons as compared with 656,471 for December, 1953, and with 483,270 for January, 1954. Total deliveries for the year to Jan uary 29 were 524,000 short tons as compared with 404,000 short tons on the same date in 1954. On January 29 re finers stocks were 153,907 long tons as against 113,658 on the same date last year. Opening and closing quotations on the No. 6 Con tract were as follows: Average spot price for January was 5.460476/. Local Market, (a) Domestic Sugar. Old crop sugar still hangs over the market. It is hoped, however, that February will see its disposal. New crop sugar is March May July Sept. Nov. January 3................ ......... 5.42(1 5.490 5.580 5.630 5.610 January 31.............. ......... 5.47 5.53 5 63 5.68 5.67 66 February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 67 not being pressed onto the market largely as a result of the combined efforts of producers, and remedial action may yet be seen in the form of quota segregation, if not of outright quota reduction. Prices continue as before and supplies are plentiful. (b) Export Sugar. Due to the dull and inactive New York market and to constantly rising freights, pri ces have declined and very little business is reported, and due to a scarcity of March space most exporters are with drawn from the market at the month’s end. Prices rule at P 13.80 ex Hawaiian-Philippine Co. warehouse (nom inal). Space has been reported closed in isolated cases at $16.00 for early March and little space offering. The problem is at present under discussion between shippers and the Associated Steamship Lines with a view to obtaining assurances from the latter that sufficient tonnage will be made available to lift the crop and bring it to the United States before December 31, 1955. Shippers are resisting the $16.00 rate, but it would seem that no charter tonnage is immediately available as a relief. Total export shipments of 1954-55 crop sugar for the month were 79,813 long tons, making a total of 194,020 against the 1954-55 crop as compared with 184,783 up to the same date in 1954. Total Philippine arrivals in New York for the period January 1 to. January 29, 1955, are recorded at 45,639 long tons as against 24,544 long tons for the same period in 1954. World Market. The Cuban 1955 crop has been set at 4,400,000 Spanish long tons, segregated as follows: United States Free......................................................................... 1,585,975 United States Retained................................................................ 498,490 World Free........................................................................................ 200,000 World Retained (available)......................................................... 347,414 World Retained (subject to release by Stabilization Institute)...................................................................................... 658,596 Obligatory World Reserve........................................................... 218,362 Voluntary Reserve..................................................................... , . 341,163 Special Stabilization Reserve..................................................... 350,000 Local Consumption....................................................................... 200,000 This is a somewhat larger crop than expected, and, despite the new categories of “Reserves”, was at first regarded bearishly by both the No. 4 and No. 6 Con tracts. Spot declined at first to 3.15/ but has since reco vered, and World quotations are steady to firm, assisted perhaps to some degree by the Formosan situation. Opening and closing quotations were as follows: January 3........................... January 31......................... Spot March May July 3.17^ 3.17£ 3.17p 3.20f 3.17 3.19 3.18 3.18 Sept. 3.20f 3 17 At the end of January, some 35 Cuban mills were reported in operation. Molasses. The main local exporter has now fixed the price for the 1954-55 production at P11.25 per long ton, f.o.b. lighter at Central wharf. The World market continues weak. 1954-55 Milling. Twenty-two Centrals are now milling for the 1954-55 crop. Latest reports from these Centrals indicate that their total production up to Jan uary 30 is 608,014 short tons and the average of juice pu rities to date is 84.11. A new crop estimate is in course of preparation. Cane 'sugar ratios and tonnages continue good. Tobacco By Ricardo Padilla Satrustbgvi Cia. Tabacalera l^lATIVE Tobacco. On January 9 heavy rains flooded 7 5 the fertile tobacco plantations of the Cagayan Valley in Northern Luzon, damaging extensive areas of young plants recently transplanted from seed-plots. However, You Can Depend ... on AG & P! .4 CO2 plant of the Coca-Cola Bottling Works (San Miguel Brewery.') Design. fabrication and erection by ACM’. If it’s an engineering project, building construction, industrial equipment ... or expansion of your present plant—consider AG&P’s integrated facilities. They can save you money, time and worry. ENGINEERING & CONSTRUCTION FACILITIES—De sign, fabrication, erection and construction. MANUFACTURING FACILITIES—Structural steel fab ricating plant, machine shops for construction and repair jobs, foundry, marine repair shops, welding shop. WOOD PRESERVING PLANTS—“Wolmanized” pressure treatment of lumber and wood products; pressurecreosoting of poles, piles, posts, x’arms, structural timber, etc. MERCHANDISING FACILITIES—Representing 37 major U. S. manufacturers of industrial, agricultural and ma rine equipment and supplies. ATLANTIC, GULF & PACIFIC COMPANY OF MANILA ENGINEERS * CONTRACTORS * Executive Offices—Engineering Div. Structural & Machine Shops Barrio Punta, Santa Ana, Manila Phone: 6-75-31 MANUFACTURERS ★ DISTRIBUTORS Merchandise Sales Division Robert Dollar Bldg., Port Area Phone: 3-36-61 (All Depts.) 68 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 the abundance of seedlings and the energetic work of to bacco growers, soon again covered the damaged areas. The writer recently made an extensive inspection trip throughout the Cagayan Valley, and he believes that it may safely be said that if the weather continues to be favorable, the present crop will be one of the largest in recent years. A crop of 330,000 quintals (46 kilos to a quintal) is a safe estimate. Good prices paid for the last three crops, both in the local and foreign markets, have encouraged planters to extend their tobacco areas to a maximum. Due to last year’s sad experience of late ty phoons, which destroyed many seedlings, this year, as a precautionary measure, there was a noticeable increase in seed-plots everywhere. This measure has contributed largely to the success in covering an extensive tobacco area. Planters hope for plenty of sunshine for about a month, as the present humidity, due to the heavy rains, develops worm-pests and does not favor the growth of the fine Isabela leaves. Haciendas “San Antonio”, “San Luis” and “Santa Isabel”, of the Tabacalera, are experi menting for the second year with fertilizer. Last year’s results, in spite of the poor crop, were encouraging, but this year the yield of a fertilized area may mean an in crease of over 60%. Many farmers are enthusiastic about tobacco fertilizer and believe it might offer a solution for the future. Foreign importers demand continuously more Philippine tobaccos but find the prices too high. It is the matter of high price only that hampers the export trade. More yield per acre is therefore a possible answer to this problem. Recent rumors circulated about experimental plant ing of Virginia tobacco in the Cagayan Valley are a source of worry to the traditional planters and dealers in Isabela fine tobaccos. It is worth remembering that Isabela to bacco is, in its class, the best in the world. No other to bacco, including Cuban and Sumatra, has such good com bustibility or mildness. The possibility that cross-pollenization with Virginia plants might change the color and quality of the native tobacco would be indeed a calamity if it eventuated. In Western Luzon, provinces of La Union, Ilocos, and Pangasinan, the lack of rainfall has hampered the development of native tobacco. This year’s native tobacco crop is expected to yield about 4,000,000 kilos. The crop of native tobacco in the Visayas and in Mindanao has suffered a setback due to heavy rains, es pecially on the island of Cebu where about 40% of the crop was lost due to floods. It is still too early to make an estimate, but Mindanao appears to have a greater area planted to tobacco than in other years. Virginia Tobacco. Lack of rainfall has also ham pered the growth of Virginia. Nevertheless, an approx imate crop of about 5,000,000 kilos is expected in Western Luzon. News that the ACCFA would soon be buying Philippine-grown Virginia tobacco at established govern ment prices has boosted up the morale of the planters, especially after the ACCFA informed them that it would only buy from them and not through middlemen. Virginia has made high progress, considering that 5 years ago the production was only about 18,000 quintals for the entire Philippines. Farmers entertain great ex pectations in the income they hope to derive from the government prices established by act of Congress. Cigar and Cigarette Factories. Factories engag ed in the manufacture of native and Virginia-type cigarettes are looking forward to this year’s crop to reduce their average prices, as last year’s poor crop and diffi culties in the importation of Virginia tobacco made their operations burdensome. High tobacco prices have encour ENGINEERING EQUIPMENT & 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 SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants 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 jl No. 1 Calle L. Segura :l & Pasig River p Mandaluyong, Rizal P Tel. 6-65-68 ★ ★ ★ February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 69 aged unscrupulous manufacturers to sell “colorum” cigaret tes rampantly at low prices. There is good news, however, concerning the interest of the Government in curbing “colorum” cigarettes, which not only cause the Govern ment to lose about P30,000,000 annually, but also make it difficult for honest manufacturers to compete. Secretary of Finance Jaime Hernandez, Collector of Internal Revenue Antonio Araneta, and National Eco nomic Coordinator Alfredo Montelibano have all taken an interest in this matter, which they believe to be of na tional importance. Rice By Charles O. Houston, Jr. Director, Graduate Studies, The University of Manila THE worn-out cliche with regard to the repetitive nature of history seems once again renewed in study ing the governmental reports reviewing 1954 and predicting the future for 1955. Following the custom of his predecessors since 1935, Secretary of Commerce and Industry Oscar Ledesma, in his review of the past year, stated: “With an improvement in the supply of rice and as 'money in circulation remains steady at a level higher than in 1953, there is prac tically a certainty that the local retail business will continue fair for some time, barring unforeseen circumstances.” These “unforeseen circumstances” have plagued such predictions for the past twenty years, and this writer sees no reason why they should not, indeed, alter the rosy pre dictions for 1955 as they have so often for past years. In deed, the Secretary hedges on his confidence by stating further: “Drought has rendered the immediate outlook for our basic ce real food crop rather discouraging, and despite remedial measures in the form of emergency importation [which seems to have become the normal operational program of the NARIC] and added vi gor in agricultural expansion, production for the crop-yearl954-1955 is expected to fall short of the last two crop-year yields and go far below the consumption level.” Yet, optimism still rules: “However, if the present govern ment program for increased rice production is pushed through, which is being done in earnest with the country wide construction of irrigation wells going on, the coun try may find itself in the not distant future producing far beyond its needs in this cereal.” I do not think it out of place to register strong skepticism with regard to such prophecy. In interviews with retailers, this observer failed to meet a single person who believed that money in circula tion was at a higher level than in the preceding year. Cer tainly the supply of rice has improved only to a slight de gree and has affected the price patterns at consumption levels very little. How it is possible to schedule the cost of living index as below that of the preceding period, in the face of a continuing similar price pattern for such an important staple as rice, is a question that casts some doubt on the validity of governmental reports on this matter. Agriculture Secretary Salvador Araneta stated, con trary to fact, that “the bad weather, floods, and drought had failed to slacken the pace of food production...” and that “rice led all other food crops in output with a pro duction of more than 72,000,000 cavans...” What was not stated was that this was almost the identical produc tion for the previous year. He stated further that no less than 8 new varieties of rice had been discovered which were expected “to produce as much as 80 cavans per hec tare under normal conditions.”1 Since normal conditions ‘Reported in The Manila Daily Bulletin, Vol. 161, No. 3 (Jan. 4, 1955), P.7-P. INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS MEMBER — PHILIPPINE LUMBER PRODUCERS’ ASSOCIATION, INC. -------- *--------SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila Philippine Lumber Manufacturing Company 14-30 Soler St. Manila Insular Saw Mill. Inc. 340 Canonigo, Paco Manila MANILA OFFICE: 603 FILIPINAS BUILDING 70 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 ★ The United States subscription rate to the Journal sent by ordinary mail for one year, is $5.00. For $13.00 a year the Journal Office will send monthly any se lected page-clipping by air-mail in addition to sending the whole issue, as usual, by or dinary mail. ★ are extremely hard to define in the Philippines, and since this claim has been repeatedly made during the past twenty years, an observer can only counsel caution and patience, awaiting proof. One factor that is constantly ignored in any analysis of the “rice problem” in the Philippines, is the fact that as organized and carried on at present, rice producing methods will continue to find difficulty in meet ing demand in view of the current practice of planting rice at any time of the year as long as water is available. It is extremely difficult to secure from palagad planting as high a level of production as from the first planting, and what has happened in many areas is that second plant ing has become a first planting practice. Farmers, if water is available, in the face of heavy demand and heavy pres sure from the Government for more production, “force” their rice,—planting ahead of the normal time when rice is “accustomed” to go into the ground. I believe in the wisdom of the peasant farmer, and many have told the writer that rice cannot be expected to produce in normal areas anywhere near as heavily as scientists are able to secure in the laboratory and in experimental plots. I know of no study, at the moment, which has been carried on with regard to this matter, and it would be interesting if this could be subjected to definite measurement and analysis. The NARIC and other interested bodies began a new program to “wrest control of the rice industry from the hands of aliens,” by making plans to deputize Filipino rice-mill operators and members of farm cooperative marketing associations as buyers of palay for the NARIC with an initial capital of P2000 for each operator. Secon-' darily, they planned to create new financing procedures to enable small millers (inefficient or not) to secure new equipment and capital and gradually take over the “mo nopoly” of the aliens and form a new monopoly for a new class. Thirdly, the NARIC plans an extension of its ser vices throughout the Islands (a step that was supposed to have been accomplished fifteen years ago) in order to assist in this program. The same false figures were pre sented with regard to this supposed “alien monopoly” as has been the custom for twenty years, despite quite clear figures to the contrary. The Director of the NARIC stated, quite erroneously, that the buying program of the Corporation “has resulted in a cut of as much as P2 per cavan in the price of rice.” (February 11.) Asa matter of fact, during that very week, most varieties registered an increase of as much as 50<? a sack. He stated: “Current prices for macan, second class, in Manila have dropped from P18 and P 18.50 to about P16 and P16.50...” Actually, the price range was from P16.00-F16.50 to P16.50-P17.00, closing the week at the latter figure. The drop indicated was for the new crop, which always enters the market below the figure for the old crop. qpHE so-called “Margate system” for planting rice attracted much attention during the month. It is actually a system that has been used in India and Japan for many years. Many planters were skeptical of its benefits (which, however, are quite real), and later in the month a similar system under the name “masagana” came into prom inence as a means by which production could be enormously increased. A report stated that by the use of this system two farmers in Tarlac were able to secure some 132 ca vans from one hectare, both being assisted by a field man from the Bureau of Agricultural Extension. Advertise ments were placed in metropolitan newspapers encourag ing farmers to adopt the “Margate” system and plans were being readied for a large public information program to achieve this end. 'the only other development of importance was the ■^reaction to the required “Premix” or “rice-enrichment” February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 71 program which had been provided for in Republic Act No. 832 (August 14, 1952), the provisions of which were to become effective in Manila, Dagupan, Pasay City, Quezon City, and the Province of Rizal, the 1st of Feb ruary. According to this law, which theoretically went into effect in Tarlac, Bataan, and Pangasinan in 1953, all millers in areas of the applicability of the law are re quired to install the necessary machinery which will mix with ordinary rice the "Premix Rice” on the basis of one part Premix for 200 parts polished rice. If this will result in an increase in price, many consumers said, they were heartily opposed to the plan; if the cost is to be borne by the Government (which should certainly be the case) they had few objections, many only saying that they objected to the taste. Whether this last objection is valid is an other matter, but certainly the law is dictatorial in the extreme and places another burden upon those engaged in the rice trade. January is generally a weak month in the rice marketThe opening of the year saw a reduced volume of arrivals in the Manila market (because of bad weather), and most varieties suffered losses,—some as a result of this factor, and wagwag as the result of the publication of new ceiling prices. NARIC distribution remained heavy and since production centers held large stocks of the new harvest, there was little desire to move them. Old crop wagwag, apostol, and macan were absent from the market, and prices were unavailable as a result. The second week of the month was marked again by reduced shipments to the Manila market since the expanded buying by the NARIC affected adversely palay purchases by millers (both Filipino and "alien”). Since only a small quantity of macan arrived, it registered an increase of as much as 50/, with other varieties standing generally steadily. Some evidence was on hand to indi cate that private buyers were willing to buy higher than the NARIC (in order to retain their stability). If this becomes more than a minor trend, macan prices may be expected to rise during February. Because the ceiling prices for old crop wagwag were established below pre vailing prices, this variety may be expected to disappear from the normal market to be sold on a "black” market, although available stocks were being sold at below or within the ceiling price. New crop wagwag appeared in wholesalers * hands at the end of the second week. During the third week, prices remained steady, de spite the large quantities in hands of dealers. Macan re gistered an increase in the Manila market, reflecting an increase in price for palay in production and distribution centers in Central Luzon which in turn had been brought about by heavy NARIC purchases and the extension of ACCFA loans to FACOMAS. The fourth week saw the disappearance of many varieties and a lowering of prices in new arrivals. Demand was low in the face of a plentiful supply in producing centers near Manila, with many Manila residents driving to the country to make their own purchases in quantity. Laguna, particularly seemed to enjoy a good harvest, in areas in which FOA irrigation and fertilizer facilities are to be found and they may be easily found as large signs along the highway seem to outnumber threshing patios. PRICES Wagwag: 1st class. . 2nd class.. Cota 1st class. . Cota 2nd class.. New....................... Jan. 3-8 Jan. 10-15 Jan. 17-22 Jan. 24-29 unq unq unq New 23.00- 22.50 P27.00- 27.50 unq unq New 22.50- 21.50 P24.00 23.50-24.00 23.50-24.00 24.00-? P23.50 23.00-23.50 23.00-23.50 23.50-? unq 22.50-23.50 22.50-23.00 Kinnelon: 1st class. . . 2nd class.. . Cota 1st class. . . Cota 2nd class.. . New....................... unq 19.00-19.50 unq New 19.50 unq 18.50 19.00 unq New 18.50-19.00 P19.50 unq 19.00-19.50 19.50-? P19.00 unq 18.50-19.00 19.00-? unq 19.00-19.50 Macan: old let class. unq unq unq unq : f“ S’’ * ,8:O:S8 !’,«!?:?? PACIFIC MliliCIIIMIISlM; C 01! I’ 0 l! A T III A 449 Dasmarifias Manila AMERICAN RADIATOR & STANDARD SANITARY CORPORATION AMERICAN VALVE COMPANY AMES BALDWIN WYOMING COMPANY BADGER METER MANUFACTURING CO. BADGER FIRE EXTINGUISHER CO. BALL BROS. MASON JARS BOMMER SPRING HINGE COMPANY CAPEWELL MANUFACTURING CO. CARBORUNDUM COMPANY COLUMBUS COATED FABRICS CORP. COLUMBIAN VISE & MFG. CO. CORBIN LOCK COMPANY DICK BROTHERS MANUFACTURING CO. EKCO PRODUCTS CO. GREAT NECK SAW CO. JACOBS MANUFACTURING CO. KEENEY MANUFACTURING COMPANY MALLEABLE IRON FITTINGS CO. NORTH WAYNE TOOL COMPANY PABCO PRODUCTS, INC. “Pabco” Products R. E. DIETZ COMPANY RADIUS AKTIEBOLAGET SLOAN VALVE COMPANY SOLARINE COMPANY TEMPLETON KENLY JACK CO. UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries Linde Air Products Division “Union” Carbide “Oxweld” Welding Rods, Supplies and Generators “Prest-o-Weld” Welding and Cutting Apparatus UNITED STATES STEEL EXPORT CORP. ♦ STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING 72 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 FOR BETTER SERVICE— Call 3-29-05 ALLIED brokerage coRPOumm Marsman Building Port Area Imports By S. Schmelkes The Robot Statistics (Mercantile, Inc.) FOLLOWING are the import figures, in the usual categories, for December, 1954, and December, 1953, and for the years 1953 and 1954. All the figures are in kilos, with the exception of those for foodstuffs which are given in package units. Commodities Automotive (Total).............. Automobiles................... Auto Parts..................... Bicycles........................... Truck Chassis................ Truck Parts................... Building Materials (Total).. Board Fibre................... Glass Window. Individual attention and competent supervision given to your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING CHRYSLER AIRTEMP SAYS: “Trained, experienced and capable architects, engi neers, shipbuilders, executives and investors have frequently chosen Chrysler Airtemp to handle their air conditioning and refrigeration requirements. Their selection of our equipment makes us mighty proud— but it also places upon us a great sense of responsi bility. “We hope and believe that by our unceasing effort toward better engineering and better manufacturing, we can continue to enjoy the preference of successful, discriminating men for Chrysler Airtemp products. “Thousands upon thousands of our installations have been giving users complete satisfaction for years. “Our present products are even better and will deliver even better results. They arc built with dependabil ity in mind. “Dependability is never an accident: it is always the result of honest building”. W. A. CHITTICK & CO., INC. 31 Romero Salas, Manila Exclusive Distributor December, 1954 3,015,680 160,617 118,937 405 12,617 752,696 981,161 15,669,064 Gypsum.......................... Chemicals (Total)................. Caustic Soda.................. Explosives (Total)................ Firearms (Total)................... Ammunition................... Hardware (Total)................. Households (Total)............... Machinery (Total)................ Metals (Total)....................... Petroleum Products (Total). Radios (Total)....................... Rubber Goods (Total)......... Beverages, Misc. Alcoholic Foodstuffs, Total Kilos........ Foodstuffs, Fresh (Total)... Apples............................. Oranges........................... Foodstuffs, Dry Packaged (Total)................................. Foodstuffs, Canned (Total). Sardines.......................... Milk Evaporated.......... Milk Condensed............ Foodstuffs, Bulk (Total)... . Wheat Flour.................. Foodstuffs, Preserved (To tal)....................................... 9,702,102 355,583 5,050 83 6.705,164 888,487 1,952,365 12,410,639 45,726,894 37,066 967,132 5,506 48,421,595 101,964 26,202 20,259 5,500 Bottling, Misc. (Total)........ 385,091 Cleansing & Laundry (To tal)....................................... 112,587 Entertainment Equipment (Total)................................. 901 Livestocks-bulbs-seeds (To tal)........................................ 22,708 Medicals (Total)................... 627,986 Musicals (Total).................. 50,290 Office Equipment (Total)... 90,255 Office Supplies (Total)......... 74,408 Paper (Total)......................... 12 7,447,095 Photographic Materials (To tal)........................................ 38,882 Raw Materials (Total)........ 110,700 Sporting Goods (Total)....... 25,214 Stationery (Total)................. 231,045 Tobacco (Total)........................... 176,170 Chucheria (Total)................. 136,217 Clothing Apparel (Total). . . 467,063 Cosmetics (Total)................. 22,229 Fabrics (Total)....................... 1,530,112 Jewelry (Total)...................... 613 Leather (Total)..................... 292,585 Textiles (Total)..................... 5,211,186 Twine (Total)......................... 88,367 Toys (Total)........................... 8,718 General Merchandise (ToNon-Coml. Shipments (To tal)....................................... 172,429 Advertising Materials, Etc. (Total)................................. 16,860 December 1953 1,784,041 145,102 362,049 12,019 79,979 247,733 47,653 4,702,093 20,930 161,024 1,199,985 4,613 24,767,101 159,459 22,785 11,986 55,970 34,217 31,078 279,324 1,891 133,127 8,812 463,262 388,077 Year 1954 27,477,0342,948,177 2,993,253 64,241 1,665,507 6.7P7.998 3,808,627 116,94r.8PS; 126,989 61,804,733 8,821,613 2,579,591 85,894,679 7,198,498 1,196,"445. 118.567. 70,9411 69,959,484 11,388,574 ’ 30,619,188" 137,665,979 907,762,551 940,523,330 476,080 12,240,272 . 10,732,688 .488,184 55,000 73,293 285,686,184 ' 330.S29.786 852,688 682,914 136,763 122,246 167,830 128,076) 213,916 108,276 87,877 9,606349,502 3,961,926 165,871 1,698,275 313,034 5,625,411 101 4,983,501 262,190 4,868:506; 326,289 1,960,955" 305,609 6,570,566 319,756 5,606,043 914 23,692 623,161 104,885 268 136,748 493,068 64,432 45,381 5,708,910 20,689 1,767,424 14,118 221,797 769,658 11,519,803 1,182,146 96,839 2,276,181 7,854,296 556,422 623,383 503,227 73,216,763 536,162 26,273,037 195,610 3,511,409 13,158,957 9,124: 9,270,907 1,478,604 54,577’ 2,707,278 9,184,906 3,038,886 1,086,509 494,157 65,202,659 579,711 11,761,645 295,015 2,936,485 9,150,465 143,225 704,404 24,821 635,031 297 226,481 3,500,324 64,007 173,172 14,554,699 6,896,950 612,195 10,308,601 877 2,239,899 41,391,270 811,510 692,620 1,175,460 4,159,764 280,185; 7,414,914 3,679 2,564,70544,484,307 938,208 414,996. 1,734,010 9,461,070 17,647,984 109,37S 1,253,430 1,576,615 23,217 299,481 3,592,078 Food Products By C. G. Herdman Vice-President, Marsman & Company, Inc. IT was reported in this column” last month that re gulations had been issued so as to effect implemen tation of the “Cassava Law,” which .requires im porters of wheat flour to secure certificates from PRISCO February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 73 as to their individual purchases of cassava flour before commercial banks may establish the corresponding let ters of credit to permit the purchase and shipment of wheat flour. Up to the end of January and probably for a good part at least of the month of February, it has been diffi cult if not impossible for importers to secure the cassava flour as obligated. To permit the regular importations of wheat flour to continue and to avoid the shortage which might otherwise result, PRISCO has been accepting af fidavits from flour importers to the effect that they will purchase and have available the necessary cassava flour upon arrival in the Philippines of their purchases of wheat flour. With this cooperation from PRISCO, it has been possible for importers to place their orders in the full quan tity authorized for shipment during the first two periods of the present semester. Supplies of flour on hand in the Philippines are more than ample for immediate require ments, and business booked during December and Jan uary insures that ample stocks will be available through out March at least It was reported in the newspapers, the middle of January, that a resolution decontrolling the importations of wheat flour had been passed by the Monetary Board of the Central Bank, but up to this date there has been no public announcement by the Central Bank on this subject, nor has the notice customary in such cases been furnished by the Central Bank to the commercial banks. Decontrol of imports of wheat flour is greatly to be desired for the benefit of the consuming public in general. Restriction on imports has created at times an artificial shortage or semi-shortage, and has tended to keep flour prices to consumers materially higher than would be the case if flour were decontrolled. It is true that there have been some price reductions in flour in the local market during recent months, but these were due in a large de gree to reductions in costs of the flour in the countries of origin. Decontrol of flour would inevitably result in lo wer prices to bakeries and consequently lower prices of bakery-products to consumers. It was also reported that the Monetary Board has decontrolled 'the importations of evaporated and sweet ened condensed milk, powdered whole milk, and pow dered skimmed milk. It is to be hoped that the Mone tary Board will also decontrol all essential imported food staples, such as canned fish, canned meats, fresh frozen beef and veal, rolled oats, etc. Experience has shown, in the case of canned milk when it was decontrolled some three years ago, that the dollar allocations provided to cover such imports were no greater than when the controls were exercised; however, prices to consumers were consistently maintained at much lower levels. qtocks of canned fish throughout the Philippines seem to be sufficient for the present. No further quan tities of sardines can be secured from California before August or September, and experience of the last few years would indicate that the probability of supplies in volume from California, even late in the year, is most unlikely. Importers will have to secure supplies from Japan or South Africa. It is not anticipated that there will be any short age of supplies, as ample stocks would seem to be avail able from both the latter sources. There "are also ample stocks on hand at present of the various types of canned milk, canned meats, etc., and above average stocks of imported canned fruits and vegetables. Fresh fruits and vegetables are plentiful in the local market, with the exception of potatoes and onions which are only available in small quantities and at very high prices. Onions are presently selling for P2 a kilo. PRISCO has contracted for considerable quantities of onions from the United States which will be arriving early in February, when local prices will undoubtedly drop to less than half of today’s quotation. COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. announce their appointment as GENERAL AGENTS of FIREMAN’S FUND INSURANCE CO. of San Francisco, California to handle FIRE, MARINE, CASUALTY and general business insurance Singer Building Port Area, Manila * BRANCHES: DAVAO • CEBU • TACLOBAN TABACO beautiful ------ TO SEE -------TO TOUCH ____ TO OPERATE Modern in design, the MARCHANT is the only Amer ican calculator with dials for checking keyboard entries. Its low-luster finish eliminates reflections causing eye fatigue. With key action twice as light as before, its keys and controls respond to the slightest touch. The MARCHANT is unmatched in accuracy control, sim plicity, speed, and silence. MARCHANT CALCULATOR ERLANGER & GALINGER,INC. 123 T. Pinpin off Escolta Tel. 3-21-61 74 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 Caterpillar Registered I Trademark DOES ITS SHARE! DIESEL ENGINES - TR MOTOR GRADERS - E Staunchly dependable, yellow - painted CATERPILLAR Machines do a full share... in agriculture, logging, mining, road-building! All over the Islands, CATERPILLAR Machines set standards of achievement ... so as to hasten progress, make possible prosperity and give tangible substance to the inspiration of new leadership. KOPPEL (PHILIPPINES), INC. Representatives of Pressed Steel Car Co. DIVISION OF U. S. INDUSTRIES. INC. Taft Avenue corner San Luis Street, Manila—Tel .3-37-53 Branches: BACOLOD • ILOILO • CEBU • DAVAO • ZAMBOANGA DADIANGAS, COTABATO • CAGAYAN DE ORO CITY Dealers al: San Fernando, Pamp., Cabanatuan City, Tuguegarao, Cag. The American Chamber of Commerce JOURNAL A highly functional publication,— every part of which is specifically designed to assist the businessman and, more generally, to promote the economic interests of the Philippines AJONey in circulation particularly in the provincial districts is apparently very short. Wholesalers are experiencing more and more difficulty each month in ef fecting collections from their provincial customers. Textiles By A. Margolles General Manager Neuss, Hesslein Co., Inc. JANUARY has witnessed a worsening of conditions in the (local {extile market, there being very little movement of goods and prices decreasing substan tially. One of the main reasons for the present situation is the large volume of credit outstandings still unfulfilled and the acute cash shortage. The speculation on war moves in nearby areas, added to some reported failures, has brought about greater caution on the part of impor ters and wholesalers, and the whole market is in a state of semi-inactivity. The nearby outlook for an improvement in the pre sent dull conditions does not seem promising. Contrary to the local situation, the New York market has remained strong and some small price-advances have taken place, particularly in knitting yarns. The Far East Conference Shipping Lines have an nounced an increase of about 10% in ocean freight rates, operative from the 1st of May, 1955. This is viewed as a very unwelcome move throughout the trade. Arrivals from the United States totaled 20,796 pack ages, of which 9,218 were cotton piece goods, 2,016 rayon piece goods, 3,118 cotton pound goods, 1,641 rayon pound goods, and 2,424 yarns. From other sources there arrived a total of 6,044 packages, of which 4,457 came from Japan, 768 from Hongkong, and 819 from Europe. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda AMONG the bills introduced in the present Congress but not yet acted upon are the following: H. B. No. 2762 would add “cement factories” to section 189 of the National Internal Revenue Code which taxes rice mills, sugar centrals, rope mills, etc. (This seeks to reduce the tax on cement.) H. B. No. 2756 would, it is hoped, contribute to government ef forts to bring all privately owned land under the Torrens System, by providing for proper recording of transactions affecting unregistered lands. H. B. No. 2602 is an act to facilitate entry of American traders, a counterpart to the United States law adopted last year for Philip pine traders. H. B. No. 2610 seeks to limit to 1G years, leases to aliens, of pub lic or private agricultural lands. H. B. No. 2611 would increase the penalty for death caused by violation of the Revised Motor Vehicle Act. H. B. No. 2616 would provide for the installation of governors limiting the maximum speed of motor vehicles to 50 kilometers per hour. H. B. No. 2679 would provide for a 5-day, 40-hour week for gov ernment offices. H. B. No. 2696 would require every taxpayer to secure an an nual tax clearance which must be presented when executing a docu ment before a notary, or obtaining any license or permit, or money from any public fund. H. B. No. 2736 would provide for regular wage payment to la borers for holidays not worked, and for holidays worked, double pay. H. B. No. 2705 would extend the Price Control Act to June 30, 1956. H. B. No. 2546 would ease the present restrictions on retail trade. H. B. No. 2547 would authorize the President to increase or de crease customs duties within certain limits. February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 75 H. Nc. 2548 would amend the wharfage tax law by including in the list to be taxed the following articles which were previously ex cepted: Coal, lumber, creosoted, and other pressure-treated materials, as well as other minor forest products, cement, guano, natural rock asphalt, and sugar molasses. The articles proposed to be excepted are: Mineral and ores of copper, lead, zinc, iron, and steel metals, and refractory gold orcs. The wording includes a change from duty to wharfage and co vers both imports and exports. The rate is P2.00 per gross ton of 1000 kilos except on untreated logs and bulky articles of light materials on which the rate is Pl.00 per cubic meter. The purpose of the pro posed amendment is stated to be the necessity for more funds for port works and improvement of the harbor, including better transit sheds for protection of cargo against weather and pilferage. H. B. No. 2782 would provide for a rather comprehensive plan for separation pay for an employee whose employment is not for a fixed period and who is discharged without just cause, of one month’s pay for every year of service which shall not be moie than twelve months’ pay and not less than one month’s pay, when employed in any commercial, industrial, or agricultural establishment or enterpiise. For other enterprises which are not for the purpose of gain, the sepa ration pay would be 50% of that payable by the commercial, indus trial, and agricultural enterprises. The 50% compensation would ap ply to domestic help which is specified to include the family driver, watchman, yaya, gardener, and other house help. Taxes By Washin-ton Sycip Sycip, Gorres, Velayo & Company SUMMARIZED below are some of the rulings issued by the Bureau of Internal Revenue in December, 1954: 1. Additional Residence Tax “Proceeds from the sales of agricultural products, such as palay, sugar, corn, and fish from fishponds, teceived by landowners need not be returned for additional residence tax purposes, where the assessed value of the property on which said products have been raised has been already declared for purposes of the residence tax. However, if the producer receiving such proceeds is not himself the owner of the land from which the agricultural products were derived, then the proceeds so received constitute taxable receipts returnable for additional resid ence tax purposes, irrespective of whether or not the owner of the land has previously declared the assessed value thereof for the purpose of the residence tax.” (BIR Ruling December 27, 1954). 2. Amusement Tax (a) “In line with the ruling of the Secretary of Finance subjecting to the amusement tax the athletic meets sponsored by the different regional athletic associations under the Bureau of Public Schools, the PAAF-sponsored games such as the MICA, NCAA, UAAP and others may also be subjected to the same tax.” (BIR Ruling December 23, 1954) (b) “The mere fact that an organization engages in laudable activities does not entitle it to the exemption from the 50% amusement tax prescribed in Section 261 of the Tax Code. This exemption is granted only to duly registered charitable associations.” 3. Compensating Tax “Materials imported by a contractor for use in the construction of public works projects being undertaken by him are subject to the compensating tax prescribed in Section 190 of the National Internal Revenue Code.” (BIR Ruling December 22, 1954) 4. Privilege Tax Receipts “Owners of rented property are not required to provide themselves with privilege tax-receipts as real estate dealers for every place where they have properties rented or offered for rent. The case of owners of rented property is an exception to the requirement of Section 178 of the Tax Code that a privilege tax shall be secured for every separate ordistinct establishment or place where business subject to tax is conducted. The criterion as to whether a property owner is a real estate dealer or not is the aggregate amount for which his propeities are rented or offered for rent during a taxable year. It comprehends all his properties wherever located. He cannot be considered separately engaged in business in every place .where he has properties for rent and required to secure separate privilege tax-receipts for each place.” (BIR Ruling Decem ber 21, 1954) 5. Firearms Licenses “Possessors of firearms under temporary permits are not subject to the firearms license fees prescribed in Section 292 of the National Internal Revenue Code. Only possessors under regular licenses issued in accordance with Section 888 of the Administrative Code are liable for the payment of the fees. “The firearms license fees are imposed not on the firearms but on the privilege or right to possess the same, evidenced by the firearms license.” (BIR Ruling December 9, 1954) 6. Farmers' Cooperative Associations “Farmers’ cooperative associations organized under Republic Act No. 821 creating the ACCFA are not exempt from the payment of interEnjoy KENT with the exclusive "MICRONITE” Filter! For the Greatest Health Protection Ever! A PRODUCT OF P. LORILLARD COMPANY, AMERICA'S OLDES|T TORACCO COMPANY, ESTABLISHED 1760 SERVICE with ATISFACTION CUSTOMS BROKERS WAREHOUSEMEN TRUCKING PACKING & CRATING FREIGHT FORWARDING SHIP HUSBANDING CARGO SUPERINTENDENCE AIR CARGO AGENTS TRAVEL AGENTS FIELD WAREHOUSING m BROKERIGE MW Derbam Bldg. Cables: Telephone: Port Area LUBROCOIN 3-34-31 76 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 LUZON STEIEIIIIRING COMPANY, INC. Marine Construction and Repairs, Salvage Contractors, Lighters, Towboats, Waterboats, Ship-Chandlers and Provisioners. * P. O. Box 582 Cable Address: Manila, Philippines “LUSTEVECO” BIG SAFE FEATURES BUILT INTO IT! Sec it — phone — or write Distributors UCATION CO 1104 Castillejos, Manila Telephone 3-22-51 nal revenue taxes if they engage in any taxable business. Republic Act No. 821 was enacted by Congress for the sole purpose ol assisting small farmers in securing liberal credit and to promote the effective groupings of farmers into cooperative associations to enable them to market effectively their agricultural commodities. Nowhere in the law is there any provision granting these organizations exemption from the payment of taxes if they engage in any taxable business.” 7. Books of Accounts “A taxpayer engaged in international operations, with its Philip pine operations directed from a regional representative in Tokyo, keeps its main books of accounts in Tokyo. The books include the ledger, general journal, vouchers and other records of transactions coming from the United States affecting the Manila Office and passing through the Tokyo Office. Records of receivables and other records pertaining to transactions in Manila are kept in Manila and are reported period ically to Tokyo for incorporation in the main books kept there. At the end of the year after the books and records affecting the Manila transactions are audited by auditors in Tokyo, these books and records are sent to Manila to be kept as permanent files of Manila. The Bu reau ruled that such an arrangement does not comply with the require ments of Revenue Regulations No. V-l that books of accounts and other accounting records shall be kept all times at the place of business of the taxpayer subject to examination and inspection at any time by internal levenue officers.” (BIR Ruling December 13, 1954) TAX CALENDAR—MARCH, 1955 March 1, 1955 1. Last day for individuals, partnerships, corporations, donors, donees, and withholding agents of non-resident taxpayers to file their returns for the calendar year 1954 (Secs. 45-c, 46-b, 115-c, and 53-c National Internal Revenue Code). 2. Last day for aliens registered under the Alien Registration Act of 1950 to report and pay the necessary fee to the Bureau of Im migration if residing in Manila, or to the office of the respective city or municipal treasurer, if residing outside of Manila (Sec. 10, Republic Act No. 562). March 2, 1955 1. Last day for taxpayers having fiscal years ending January 31, 1955, to submit their year-end inventories to the Bureau of Internal Revenue (Sec. 13 Revenue Regulations No. V-l). March 10, 1955 1. Last day for payment of amusement taxes for February, 1955 (Sec. 260 National Internal Revenue Code.) 2. Last day for submission of monthly report by radio dealers (Sec. 19 Revenue Regulations No. 9). 3. Last day for employers who withheld taxes of P200 or more from salaries and wages of employees during the month of February to deposit such funds with the provincial, municipal, or city treasurer or Collector of Internal Revenue (Sec. 22, Revenue Regulations V-8A). March 11, 1955 1. Last day for taxpayers on the calendar year exempt under Act 35 or 901 to submit the following to the Department of Finance: a. Balance Sheet, December 31, 1954 b. Statement of income for the year ended December 31, 1954 NEUSS, HESSLEIN CO., INC. 304 Nueva, Manila Phone 3-99-71 Cable Address: “NEHESCO” Foremost Suppliers of Textiles in the Philippines for 54 Years — MILLONARIO COMMANDER AGUILA SHARKSKIN BROADCLOTHS DENIMS WALDORF MILLONARIO CARABELA PERCALES GABARDINE CHAMBRAY FAUST SEINE TWINE STRIPED DENIM & YARNS Suppliers of all Articles for Clothing, Shirt and Umbrella Factories February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 77 c. Manufacturing statements for the year ended December 31, 1954 d. Schedules showing values of all real and personal properties of the industrial plant or factory (Department Order No. 185, Revised) March 15, 1955 1. Last day for corporations having fiscal years ending October 31,1954, to pay first installment of income tax (50%) (Sec. 51-c National Internal Revenue Code.) 2. Last day for corporations having fiscal years ending July 31, 1954, to pay second installment of income tax (50%) (Sec. 51-c National Internal Revenue Code). March 30, 1955 Last day for taxpayers having fiscal years ending February 28, 1955, to submit their year-end inventories to the Bureau of Internal Revenue (Sec. 13 Revenue Regulations No. V-l). Advertising By George Cohen General Manager, “The Robot Statistics" Print Advertising The 5 leading brands advertised in January, 1955, were: 1. MANILA RUM..................................................................P27,645.52 2. PURICO........................................................................... 19,039.98 3. CHELSEA CIGARETTES....................................... 16,490.75 4. CORT AL...................... 16,229.65 5. PEPSI COLA................................................................ 14,282.74 For December, 1954: 1. MANILA RUM............................................................ ?47,509.90 2. PEPSI COLA................................................................ 17,648.30 3. CHELSEA CIGARETTES....................................... 17,431.00 4. AGUINALDO (DEPT. STORES)........................... 16,332.00 5. COCA COLA.................................................................. 14,595.75 THE ROUTE OF THE BEARS Serving THE PHILIPPINES JAPAN HONGKONG U S. WEST COAST PORTS FAST - REGULAR - DEPENDABLE UNITED STATES LINES, INC. GENERAL AGENTS ! 33601 33602 33603 33604 PORT AREA MANILA Movies comprise the largest single classification of advertisement. A total of P109,475.05 was spent by all theaters during January. The sum represents 4,428 in dividual insertions, or a total of 28,852.75 column inches of advertising. These figures are based on the “Compe titive Advertising Report” published monthly by The Robot Statistics. The report covers all print advertising appearing in 70 leading publications in the Philippines. During the month under study, the total volume of adver tisement placements in these publications is estimated to be Pl,198,581.94. All figures appearing above are based on the rate-card of each publications and do not make any allowance for volume discounts. MOTOR SERVICE CO., IB AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 PASIG RIVER BODEGAS GENERAL BONDED WAREHOUSES * SOUTHWESTERN SUGAR & MOLASSES CO. (FAR EAST), INC. MOLASSES BUYER 145 Muelle de Binondo Tel. 2-63-10 78 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 Chamber Business By Stanley N. Fisher Executive Vice-President American Chamber of Commerce of the Philippines THE proper subject of this department for this month —the holding of the Annual Meeting last January 28, the Annual Report of the President (containing also the Annual Reports of the Committees, of the Jour nal Editor, and of the Executive Vice-President), the election of the 1955 Board of Directors and their own subsequent election of Officers—is dealt with elsewhere in this issue. Suffice it to report here that the first order of Cham ber business under the new Board of Directors is the re constitution of our Standing Committees—Bell Trade Revision, Civic Affairs, Finance and House, Foreign and Domestic Trade Controls, Industrial Relations, Legisla tive, Taxes and Legal Affairs, and Membership, together with the formation of two new. Committees—a Journal Advisory Committee and one on United States Invest ments in the Philippines. A Special Bulletin was circulated on February 1 which contained a questionnaire for the use of members in in dicating their first, second, and third choices for com mittee work; and, as we go to press, replies have been received from 26 individuals representing 20 firms. As it is the stated intention of the new Board of Directors to place even greater emphasis on committee work during 1955, and to ensure as complete a reflection as possible in each Committee of the various types of business enter prise represented by our whole membership, it is to be hoped that many more members will volunteer their ser vices within the near future. Next month’s Chamber Business will contain a report on the following: (1) appointment of Chairman, Counselor, and Members of each Committee; (2) a state ment of each Committee’s overall objectives for the year; and (3) each Committee’s specific plans for the imme diate future. Advertisements in this JOURNAL are read by the leading business executives of the country THE PRINTED FORMS YOU RELEASE NOT ONLY REPRESENT YOUR HOUSE— THEY ARE YOUR HOUSE! Do They Make An impression? Alaybe We Could Jdelp! • Good printing, along the high stand ards set by our founding pioneer and several other American master print ers who blazed the trail after him, has been a legacy with us. A call thru 3-22-51 will bring our representative. McCullough PRINTING CO. Letterpress Pace-Setters for 56 Years (A DIVISION OF PHILIPPINE EDUCATION CO.) 110-1 Castillejos, Quiapo, Manila A creped natural sulphite towel, it com bines high wet strength with absorbency. Fits Public Service Cabinet and all other standard singlcfold towel dispensers. Un failingly dispense one tow’el at a time. Manufactured by PHILIPPINE PAPER PRODUCTS CO. Distributors J. P. HEILBRONN CO. (Established 1909) 575 Atlanta, Port Area Tel. 3-36-17 Manila (Private exc. conn, all Depts.) February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 79 COST OF LIVING PRICE INDEX FOR WAGE EARNERS’ FAMILIES IN MANILA, BY YEAR AND MONTH, 1935-1954 (1941 = 100) Bureau of the Census and Statistics January......... .. 342.8 350.9 453.9 330.8 247.5 269.7 0.2917 February. . . . .. 341.2 349.8 453.9 311.2 243.4 268.5 0.2931 March............. .. 337.9 345.1 453.9 301.1 243.4 268.1 0.2959 April............... .. 335.9 342.7 453.9 300.7 243.4 264.6 0.2977 May................ .. 335.1 341.8 453.9 293.2 243.4 264.4 0.2984 June................ .. 338.1 346.3 453.9 290.2 243.4 265.5 0.2952 July................. .. 340.4 349.5 453.9 286.6 243.4 268.1 0.2938 August........... .. 340.7 349.4 453.9 289.1 243.4 269.9 0.2938 September. . . .. 341.1 350.0 453.9 287.7 243.4 270.7 0.2935 October.......... .. 337.6 344.6 453.9 289.3 243.4 269.4 0.2962 November.. . .. 340.5 349.3 453.9 286.2 243.4 269.8 0.2937 December.... .. 340.9 348.9 453.9 284.4 247.5 272.3 0.2933 1953........ .. 318.2 314.3 453.9 280.1 243.7 269.5 0.3143 January......... .. 337.3 343.2 453.9 283.7 247.4 272.4 0.2965 February.... .. 323.0 321.1 453.9 281.5 243.4 273.0 0.3096 March............. .. 318.6 314.3 453.9 281.5 243.4 272.4 0.3139 April............... .. 317.6 312.8 453.9 281.1 243.4 272.2 0.3149 May................ .. 314.3 307.8 453.9 280.9 243.4 271.1 0.3182 June................ .. 313.1 306.0 453.9 277.8 243.4 271.1 0.3194 July................. .. 316.0 311.0 453.0 277.8 243.4 269.5 0.3165 August........... .. 316.1 311.9 453.9 277.8 243.4 266.4 0.3164 September. .. . . 315.8 311.6 453.9 277.8 243.4 265.6 0.3167 October.......... .. 315.3 310.6 453.9 279.0 243.4 266.4 0.3172 November. .. . . 315.2 310.1 453.9 280.9 243.4 267.0 0.3173 December.... .. 315.5 310.7 453.9 280.9 243.4 267.0 0.3170 1954.... .. 312.9 307.3 453.9 274.1 236.2 268.7 0.3196 January ......... .. 311.7 304.7 453.9 279.3 243.4 267.0 0.3208 February ... . .. 301.5 290.0 453.9 278.3 232.1 267.0 0.3317 March........... .. 301.1 289.5 453.9 274.9 232.1 267.0 0.3321 April.............. .. 302.9 292 5 453.9 272.2 232.1 266.8 0.3301 May................ .. 309.7 302.8 453.9 272.2 235.7 266.5 0.3229 June............... .. 312.6 306.9 453.9 271.8 238.4 267.3 0.3199 July............... ... 318.6 316.2 453.9 278.5 236.7 267.9 0.3139 August........... .. 321.6 320.7 453.9 274.7 236.7 269.3 0.3109 September.. . .. 321.3 320 0 453.9 271.7 236.7 271.0 0.3112 October......... .. 317.8 314.4 453.9 271.8 236.7 271.2 0.3147 November... .. 318.2 314.9 453.9 271.8 236.7 271.5 0.3143 December . 318.5 315.4 453.9 272 .2 236.7 271.5 0.3140 1955......... January........... . 311.4 304.2 453.9 272.0 236 7 271.5 0.3211 AGENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 American Steamship Agencies, Inc. Manila and Tokyo Cable Address i 212 Myers Bldg. “AMERSIIIP” Port Area Manila SECURITY DELIVERY SERVICE - - - - - - - - - - - - INC.- - - - - - - - - - - - 613 M. H. del Pilar Tel. 5-63-90 American Management and Methods ANNOUNCES The operation of a new armored Car, the most modern in the Far East, especially designed for local use, not a copy nor a stock model IN ADDITION TO EQUIPMENT PREVIOUSLY USED YOU ARE INVITED To Consult Us, Inspect Our Equip ment, and Observe Our Procedures. Call 5-63-90 FLYING GASOLINE OIL Depend on New Flying “A” Gasoline for smoother power. High Octane and Ignition Control Compound are now blended to give you better performance. Available everywhere at no extra cost. VEEDOL 10-30 MOTOR Get Highest Octane performance w i t h carbon-free Vccdol 10-30 Motor Oil. Less engine drag— more power left at the wheels —extru detergency k e e p s your engine cleaner for longer life. TIDE WATER ASSOCIATED OIL COMPANY AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 Philippine Safety Council By Frank S. Tenny Founder and Executive Director IN connection with Civil Defense and Disaster Organization mat ters, the Council is pleased to re port that it has been named as a member of the National Advisory Council on civil defense on the National Government level. On the City of Manila level, your writer has been appointed as Technical Advisor on Civil Defense Matters, with special attention to be devoted ALLIS-CHALMERS Much or all of the equipment for a complete plant can be obtained from ALLIS-CHALMERS’ broad line of 1,600 products. We will be glad to supply informa tion about ALLIS-CHALMERS equipment to solve your machi nery problems. Basic Machinery for the World’s Major Industries ELECTRICAL EQUIPMENT —Power and distribution transformers, circuit breakers, switchgear, unit substations. TEXROPE*—Variable speed transmission, sheaves, speed clipngers, V-belts, motors, and motor control. 'Texrope is an ALLIS-CHALMERS trademark Exclusive Distributors: THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Main Ofju * COR. TACOMA & 2ND STS., PORT AREA • MANILA Branch Officer at; BACOLOD CITY • CEBU CITY to business firms, utilities, transporta tion groups, and security and traf fic factors. This will of course pro vide an even closer liaison between the “Cee-Dee” movement and com mercial and industrial companies. In response to urging by the Coun cil and others, the dormant National Traffic Commission has been reac tivated, but under the same organ izational plan as before. The group is still advisory in nature and is com posed largely of representatives of non-technical groups. The Council Board is meeting frequently to for mulate its program in connection with the Commission activities. The GRINDING MILLS—Ball and rod mills, single and multi stage units in full range of TEL. 3-35-41 P. O. BOX 282 Council President represents the body. Safety inspections of 22 Manila movie houses, all members of the Manila Theater Association, have begun. Particular attention is paid to fire-protection factors, emergency evacuation, training of personnel in fire- and panic-control, and pre vention of overcrowding. The public will note much on this program in the near future. The first week of March is “FirePrevention Week”. All Council and Chamber members are asked to observe suggested rules which will appear in the press and will be dis tributed to firms by mail. Our tech nical staff is available to conduct a “Fire-Protection Rally” for your em ployees on your premises without charge, upon request. Members continue to express keen interest in security matters. As a result, many firms have greatly im proved the efficiency and reliability of their guard forces. Special lec tures are being conducted several times monthly on vital phases of security-guard duties. This phase of safety has shown definite promise wherever management has taken spe cial interest. Several firms have recently en rolled in the safety movement, in cluding Manila Gas Corp., Tide Water Associated Oil Co., Selecta Restaurant, Shriro (Phil.) Inc., Bireley’s California Orange, Ltd., Philip pine Amusement Enterprises, Filipro (Nestle’s Products) Inc., Pa cific Engineering Corp., A. C. Es guerra & Co., and Mr. Ray Higgins. The Council urges th$ support of the 1955 Fund Drive of the Philip pine National Red Cross, a PSC honorary member, which has greatly assisted the “national safety move ment.” A vigorous Home-Safety Campaign will get underway next month in conjunction with the PNRS, PTA groups, women’s clubs, and scout troops. CIVIL DEFENSE ANNOUNCEMENT The Director of the Civil De fense and Disaster Organiza tion for the City of Manila has appointed Mr. Frank S. Tenny as Technical Adviser and as Chairman of the Commercial and Industrial Firms Protec tion Committee. Detailed data on the work of this Com mittee, of importance to all Chamber members, will soon be distributed. February, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 81 “LET YOUR HAIR DOWN’’ •vy-rE are very pleased to be able to ™ introduce another new monthly column in “The Business View” De partment of the Journal,—a column headed “Taxes”, published together with a very useful “Tax Calendar”. It is edited by Mr. Washington Sycip, a member of the American Cham ber of Commerce, and a partner in the auditing firm, Sycip, Gorres, Velayo & Company. We are sure that Journal readers will welcome this new feature and make full use of it. Our thanks to Mr. Sycip, especially as he volunteered his serv ices, in the desire, no doubt, to give what assistance and what timely reminders he can to our much-taxed businessmen. We doubt that the “Taxes” column will ever make very cheerful reading,-but that is as may be. ctill another new column in “The Business View” Depart ment is the column, headed “Ad vertising”, edited by Mr. George Cohen, General Manager of “The Robot Statistics”. It will summarize the amount of advertising carried monthly in the various Philippine periodicals and will list the prin cipal advertisers. The editor takes it as a great compliment to the Journal that this column, too, was volunteered. He says he would have projected such a column long ago if he had known such information was ob tainable, but, as a matter of fact, The Robot Statistics has itself just undertaken to compile this informa tion, which, naturally, is given in greater detail to its clients than it can be given in the Journal. That our various column editors continue to conduct their columns so faithfully and that new columns are introduced, in the case of some of them, at least, upon the initiative of the contributors rather than the editor himself, is proof of the re gard in which the Journal is held by businessmen as a source of au thoritative business information sys tematically and cooperatively gathered and issued, and is proof of the interest taken in the publication by those whom we aim at interesting. admiral Raymond A. Spruance, American Ambassador, recently appointed or reappointed the follow ing persons to the American Historical Committee, half of the members of which are appointed by the Ambas sador and the other half by the Amer ican Association of the Philippines: Dr. H. Otley Beyer, Mr. John A. Nalley, Mr. Benjamin Bock vice Mr. Richard Ely, Dr. Gilbert Perez, Mr. James T. Pettus, Jr. vice Mr. H. P. L. Jollye, and Mr. Carl H. Boehringer vice Mr. Charles O. Parsons. The American Association, on its part, appointed or reappointed the following: Mr. J. A. Thomas, Mr. A. V. H. Hartendorp, Mr. Carson Taylor, Mr. Ford Wilkins, Mr. David T. Sternberg vice Dr. Paul R. Verzosa, and Mrs. Duncan Burn. Mr. Thomas is Chairman of the Committee. The plan to build up, and to house on the Embassy premises, a collec tion of books and records on the Philippines, with special emphasis on the American period in Philippine history, was first projected by Am bassador Myron H. Cowen toward the end of 1949. The American Chamber of Commerce took part in the formulation of the original plans and members of the Chamber assisted in the financing of the organization as well as members of the American Association. A library was rapidly built up, mostly from donations, but also by purchase]. Former Governor-Gen eral W. Cameron Forbes generously made over a large part of his private library to the Committee. The library was opened to the pub lic in February, 1951, in the large room, just off the Ball Room, which served as the library of former U. S. High Commissioner Francis B. Sayre when the Embassy Building was first occupied. Ambassador Cowen and those whose interest he enlisted were prompted in building up the present collection mainly by the almost total destruc tion of all libraries and book collec tions in Manila during the war. Today, what is called the American Historical Collection Library of the American Association of the Philip pines, is a splendid research library, already being much used. It is not a circulating library and books may not be taken away. The Library is open from 9 to 12 in the morning and from 1 to 5 in the afternoon from Monday to Friday. Everyone is welcome. Funds, by the way, are running low, and although plans for a fund drive have not been completed, dona tions will be gladly received and will be well used in the further building up of the collection. Donations of books and other publications and records, rare photographs, etc. are also solicited. EVERETT STEAMSHIP CORPORATION Owners-Brokers-Agents Manila 155 Juan Luna St., Tel. 2-79-31 General Agencies AMERICAN MAIL LINE To Portland Vancouver Japan Straits From Seattle Tacoma Philippines Indonesia PACIFIC TRANSPORT LINES To and From California-Japan-Phllippinoi BARBER-FERN-VILLE LINES To U.S. Atlantic FERN-VILLE FAR EAST LINES MESSAGERIES MARITIMES EVERETT ^ORIENT LINE EVERETT STAR LINE PHILIPPINE STEAM NAVIGATION CO. UNITED STATES SALVAGE ASSOCIATION UNITAS OSLO THAI AIRWAYS To and From Bangkok, Singora, Singapore Hongkong, Taipeb, Okinawa, and Japan 82 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1955 Koppel (Editorial) ... (Continued from page 51) Cooper Company and so continued until the business was acquired by the Pressed Steel Car Company in 1923, at which time the name was changed to “Koppel Indus trial Car & Equipment Company.” In 1928 this company was incorporated under the name “Koppel (Philippines) Inc.” Since that time, Mr. Bishop was Vice-President in charge until 1951, when he was elected President. The Company is today the Philippine subsidiary of U.S. Industries, Inc. Besides industrial railway equipment, the firm now deals also in lines of power-generation and other electrical equipment, and, just before the outbreak of the war, took over the dealership of the Caterpillar Tractor Company and such allied firms as Deer 8s Company. Since the end of the war the Company has expanded rapidly and now has branches and dealers throughout the country. It is stated in a souvenir brochure that “Now, as always, Koppel (Philippines) Inc. is dedicated to serving the Philippines, not only with machinery, but with ‘know how’, with financing, and with service.” President Magsaysay is quoted as saying of the Company, “It is a wellknown fact that this firm has for more than four decades now been contributing to the industrial and agricultural economy of the nation.” The Government... (Continued from page 59) tangible benefits which are incapable of pecuniary estimation. . . I say in ail modes ty that the Mission has been successful and that its success is due to the sym pathetic attitude and sense of fairness of the American Government and people; the spirit of forbearance and breadth of perspective of the Filipino and American panels; the unity of the Filipino panel and their adherence to definite fundamen tal objectives; and the unstinted support of President Magsaysay, other national leaders, and our people at large. The Mission likewise presented various finan cial claims against the United States which are now pending consideration and action by the Government of the United States. I hope that the Philippine Con gress and the American Congress will approve the new Agreement. With the ap proval of the Agreement we shall have laid the foundations of our political and economic relationship with the United States on a firmer and more stable basis, and chartered likewise a norm of conduct worthy of a free people. With the ac ceptance of the Agreement and its implementation together with the solution qf other vital problems now confronting us, we shall be able, I am sure, to march on ward end forward, alongside other progressive nations of the world, toward peace, prosperity, and happiness for our people." The President enlarges the membership of the newly organized Economic Planning Board by appointing Minister Cesar Lanuza, one of the economic experts on the Laurel Mission, and Leonides Virata as additional members; it is explained that the Board is a temporary one but that legislation will be proposed to Congress establishing the body. Jan. 24 — The Third Congress of the Republic of the Philip pines opens its second regular 100-day session; President Magsaysay delivers his Message on the State of the Nation (printed elsewhere in this issue of the Journal). Jan. 26 — President Magsaysay has breakfast with Senator Lauiel who reports to him on the work of the Philippine Mission for the re vision of the Trade Agreement. After the breakfast the President names Secretary of Commerce and Industry Oscar Ledesma, Secretary of Finance Hernandez, and Economic Coordinator Montelibano as the executive department representatives on a joint executive-congressional committee which will study the effects of the Retail Trade Nationalization Law “to guide future policy on nationalization”; the congressional members of the committee are Senators E. B. Cea, Gil J. Puyat, and Quintin Paredes and Representatives Daniel Romualdez, Arturo Tolentino, and Eugenio Perez. The President confers with Centra! Bank Governor Cuademo and Hans Menzi, members of the newly-created Economic Planning Board, and instructs Cuaderno, the Chairman, to convene the Board as soon as possible and to have it draft legislation to “revitalize” the National Economic Council; he states the Council has done highly creditable work but suffers from organizational defects, most of the members being Department Secretaries too burdened with the affairs of their departmental affairs to be able to give much time to the work of the Council. The President approves a plan of ACCFA Administrator Mondonedo for the establishment of the Central Producers Exchange as authorized by the law which established ACCFA; the Exchange will handle the marketing of the surplus produce of the cooperatives (FACOMAS) affiliated with the ACCFA and will also serve as a central buying agency for the cooperatives in the purchase of fertilizers, feeds, implements, containers, etc. ACCFA will organize a corporation to own and operate the Exchange but this corporation will be owned exclusively by ACCFA; the corporation will be started with an initial paid-up capital of Pl,000,000, divided into shares of P100, and all FACOMAS will be asked to buy at least one share each. During a meeting of the Cabinet, the President orders the pay ment of the salary differentia! to school superintendents and some other education officials involving an amount of P151.800, as author ized by Republic Act No. 842, the Public School Salary Act of 1953. Steps are also being taken for the further payment of school teacher salary adjustments which calls for some Pl 7,000,000. During the meeting, the General Manager of NASSCO is au thorized to negotiate with any banking or lending institution a credit line not to exceed Pl,000,000 for the operational expenses, with its reparations tools and equipment, valued at not less than P10,000,000, as security; Secretary Montelibano states the GS1S (Government Ser vice Insurance System) is willing to buy Pl,000,000 worth of bonds from the RFC which would in turn lend the proceeds to NASSCO. NASSCO is also authorized to divert a remaining balance of some P336.000 out of P600.000 intended for salvage operations, for the use of the Iligan Steel Mill. The Department of Public Works and Communications is au thorized to buy 4,000 metric tons of emulsified asphalt through pub lic bidding. Jan. 28 — President Magsaysay holds a breakfast conference with Coalition leadeis at which it is decided to accept the invitation to parti cipate in the Afro-Asian Conference at Bandung, Java, in April, to adopt an attitude of “watchful waiting” with respect to the Formosa area developments, and to defer the discussion of the Japanese repara tions question until next week. Jan. 29 — President Magsaysay attends a formal dinner given in his honor at Sangley Point, Cavite, by Admiral and Mrs. Hugh Good win; he expresses his admiration for the Admiral and states, in part, “Since we depend so heavily on that power [which he represents) for our defense against outside attack, we are grateful for Admiral Good win’s reassuring presence among us in a position of high responsibility, especially now in these days of tension and danger.” Distribution outlets from Aparri to Zamboanga: Sell through GETZ! The widespread and effective GETZ Distribution system—outport offices and agencies in prin cipal Philippine cities, fourteen sales trucks crisscrossing the major Islands—assures your reach ing more consumers, gives you greater market-coverage for your products! Which is why— Such well-known imported products as Klim, Hemo, Ray-O-Vac batteries, Calumet, Swansdown, Baker's Instant Cocoa, etc., get maximum distribution . . . the maximum distribution desired by such local manufacturers and products like the Bridal Bouquet, Original Mafran Sauce, Golden Harvest Soup products, B B B paper bags, Corona Straws, Flit, Presto Clean sers, Gold Medal Spaghetti and Macaroni & Regal Taste Products . . . the maximum distribu tion that you want and will get for your own products when— “GETZ SELLS IT FOR YOU"I GETZ BROS. & CO. Offices at: 135 MUELLE DE BINONDO, MANILA . TEL. 2-69-96 to 2-69-9S and MAGALLANES ST., CEBU CITY. TEL. 620 /t GENTS AND REPRESENTATIVES: ILOILO • BACOLOD • DAVAO EARTHMOVING . POWER THAT PAYS I A Model R-160 (4x4) Dump Truck. International Crawler with Drott Skid-Shovels. Lifting capacity from 3,000 to 9,000 pounds. NOW/ Get all your earthmoving equipment from IH! Backed by nation-wide service facilities Other Earthmoving equipment available: • Air Compressors and Drills • Rippers • Generators • Motor Graders • Elevating Graders Now, International Harvester offers you a complete line of high quality, fast working earthmoving machines and equipment. Now, more than ever, your International Harvester dealer is your “Earthmoving Headquarters”, a depend able source of supply for all your needs. You’ll get the right machine to handle any job profitably, plus the advantage of unsurpassed service facilities and genuine IH service parts available throughout the Philippines. It’s International power that pays. Call or write your nearest dealer or International Company of Philippines, 154 Marques de Comillas, Manila. Model 2T-75, 2-whccl. Rubber Tired Tractor and 2W-75 Bottom Dump Wagon. Heaped Capacity 20 cu. yd. International Crawler with hydrauliccontrolled bullgrader. Hydraulic or cable Bullgraders — Bulldozer avail able in various sizes. INTERNATIONAL INDUSTRIAL POWER BRANCHES AND DEALERS THROUGHOUT THE PHILIPPINES Hough Pay loader to 3 cu. yd. bucket capacity. Digs, loads, levels, backfills, spreads, lifts, lowers, pulls and oushes. The Pliilippinc Manufacturing Company sponsors this campaign in the interest of improved living conditions throughout the Republic. a:( How you con grow '^lOOcavansper hectare! THE FOLLOWING PICTURES SHOW YOU HOWTO PROPUCE MORE RICE WITH LESS SEED THAN YOU HAVE EVER USED BEFORE.' x FIRST: SELECT GOOD SEED. AT HARVEST TIME SET ASIDE ONLY 15 GANTAS OF YOUR BEST PALAY FOR EVERY HECTARE YOU WANT TO PLANT. DRY IT WELLAND KEEP IT DRY. JUST BEFORE PLANTING,. TEST BY P0URIN6 SEED INTO A SOLUTION OF SALT — WATER. DISCARD ALL SEEDS THAT FLOAT. FIFTH: 1 WEEK BEFORE TRANSPLANTING, PLOW YOUR FIELD AGAIN AND HARROW IT. REMOVE WEEDSAND PUDDLE SOILTKOROUGHLY. J PMC FAMILY PRODUCTS 1 SEVENTH: BE SURE PLANTS ARE STRAIGHTHOT BENT OVER-AFTER PLANTING. WHILE CROP IS GROWING, PROTECT IT FROM WEEDS AND INSECT PESTS AND APPLY RECOMMENDED FERTILIZER. EIGHT: IF YOU FOLLOW ALL THESE STEPS YOU WILL INCREASE YOUR RICE YIELD. HARVEST IT WELL, FOR RICE LEFT IN THE FIELDS DOES NO ONE ANY GOOD. REMEMBER YOU MUST CHOOSE GOOD SEED. WEED CAREFULLY. DESTROY INSECT PESTS, ANP FERTILIZE! THE BUREAU OF AGRICULTURAL EXTENSION WANTS TOHELPYOU! WRITE,T0 THEM TODAY FOR FULL,FREE INFORMATION ABOUT RICE PLANTING AND RICE CULTIVATION 1 THIRD: SELECT A FERTILE, SUNNY PLACE FOR SEEDBEDS.THEY SHOULD BE ABOUT 7->A CENTI METERS HIGHER THAN THE SURFACE OF THE FIELD, 1 METER WIDE AND 40 METERS LONG. YOU NEED AT LEAST 12 SEEOBEDS FOR EVERY HECTARE OF RICE. SEEDBEDS MUST BE WEEDED AND FERTILIZED, TOO SIXTH: PLANT SEEDLINGS CAREFULLY. HAVE STAKES TO HOLD LONG STRING IN STRAIGHT LINE ACROSS PADDY. PLACE MARKERS AT LEAST 25CENTIMETERS APART ON STRING.MARKERS WILL SHOW WHERE TO PUT SEEDLINGS. ROWS SHOULD BE AT LEAST 25 CENTIMETERS APART. PLANT 3 TO 4 SEEDLINGS TO EACH HILL-NEVER MORE THAN 4 TO A HILL. his is one in a series of picture stories presented by the Philippine Monufacaony os a public service. The of this information in national and newspapers and its dis * other millions in the form of Free pamphlets and posters is one of many ways PMC is as sisting our government achieve its objective of helping rural people to a better way of life. When you produce more rice you earn more money. Besides, you help our government save precious dollars needed to im port rice from abroad. PMC helps the Philippines save dollars, too, by manufacturing essential products locally which would otherwise have to be Imported; and by promoting the industrialisation of the Philippines. r FOR BETTER LIV/NG