The Coconut Journal

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Part of The Coconut Journal

Title: The Coconut Journal
Issue Date: Volume I (Issue No. 8) August 1941
Year: 1941
Language: English; Spanish
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extracted text: rq 1 I" 11'- 'I-ft ~HIL't-''°J 't"-<t..;) NACOCO ANNIVERSARY NUMBE!} 'fllJ .~ f - - - - - - - - - - - - - - - - - - NILA, PHILIPPINES AUGUST. H)41 c 0 N v T t.1 0 u R N A L HOUGHTON OILS Sole Distributors PHILIPPINE ENGINEERING CORPORATION MANILA CEBU ILOIL(l .-\lTGUST, 1941 La c54.rada t>on Clelrac T rabajando en laderas empinadas los Cletracs no se r1uelcan. Aradas de conlor110. • • preparacion de cuadros de cultir10 . . . en tierra lerraplenada. etc.. nada ha}' que iguale la estabilidad. el pie /irme del ancho cenlro de 9rm1ed:ad de rm Cletrac. su lraccion posiliria }' su lerie presif):! sobre el suelo. MARSM,,N -TRADING CORPORATION MANILA Baguio . Cebu . Bacolod . Davao . Iloilo . Mambulao . Cotabato COMPLIMENTS of S. STADLER CONSTRUCTION AND MECHANICAL ENGINEER For The COCONUT INDUSTRY P. O. Box 1380 Telephone: 5-55-43 Manila THE COCONUT JOURNA'L Published monthly by the NATIONAL COCONUT CORPORATION VOL. I Benjamin Salvosa, Editor Pedro M. Gimenez, Business Manager Godofredo Zandueta, Associate Editor Manila, Philippines CONTENTS No. 8 Evaluating Our Worth (Editorial) . 4 By Pedro JI. Gimenez Presiden+ Quezon and the Coconut Industry 5 By Sol G1ce1.:o11 Board of Directors . . . . . . . . . . . . . . 8 CONRADO BENITEZ, Executive 9 The Role of the Philippine Coconut Industry in Developing a Self-sufficient National Economy . . . I I By V. G. L01;a Copra Price Fluctuation in Two Decades ( 1921-1940) 13 Fiber Cocotex from Coconut Husk . . . . . . . . . 15 By Angel B. Abad The Need of Cooperation in the Coconut Industry . 16 By Felipe Jose DECENTRALIZATION: Key to Economic Defense 18 By Hilarion Henares Unlocking the Treasure in Coconut Shell 20 By W. Orland Producer Gas Fundamentals . . . . . . . 22 Babassu • . . . • • . . . • . . . . . . . . . . 25 By Pedro A. Dadd Coconut Statistics . . . . . . . . . . . . . . 32 By Ricardo Bonilla A Survey of Legislation Affecting the Coconut Industry in the Philippines . . . . . . . . . . . . 34 B11 Jraria Abalajon Marketing Copra and other Coconut Products . 36 By R. Bonilla Location Factors in the Commercial Coconut Industry . . . . . . . . . . . . . . . . . . . . . . 40 By George F. Dt:asy SECCION CASTELLANA Los Primeros Logros de la Corporaci6n Nacional del Coco . . . . . . . . . . . . . . . . . 54 Por Juan M. de Castro Los Prestamos Sobre Cosecha Una Bendici6n 54 Una Resecadora Portatil Domestica . 60 Po1· Pedro A. D<bi:id A Traves de las Hojas . . . . . . . . . . . . . 62 The picture on our cover is the latest photograph of His Excellency, President Manuel L. Quezon furnished to us by Malacanan for this issue. Address articles and co111111unications to tbe Editor, Coconut Journal, P. 0. Box 290, '.Manila. Subscription rates, Jl2.oo a year. $2.00 in U. S. $3.00 '.Foreign. Jl.20 tbe copy. August 1941 Manila Page 4 Evaluating Our Worth By PEDRO M. GIMENEZ Comptroller .Vational Coconut Corporation IN evaluating the net worth or accomplishments of an institution just born, like the National Coconut Corporation, or any other corporation, private or government-owned, monetary profits or loss should not be used as the only yard-stick to gauge its future. For as a matter of fact, the National Coconut Corporation is a new and pioneering enterprise designed to exploit a vast field hitherto unexplored and yet with so many obstacles placed by the law in its path. If to accuIP11late profit should be its only mission, thP. Nacoco Board could have simply allocated the whole capital of the Corporation to money lendiPg which it is authorized to do under the ch::i!·ter, thereby enabling it to proclaim to the fou1· winds that it has in its ten months of operatioP realized gains instead of loss as is common LO any new business enterprise. But mone~· making is not its principai mission. The ~fational Coconut Corporation is by the mandat.:: of the law, required to resuscitate a "dying man," to undertake a difficult operation yet with some vital instruments held up from its use. It is not authorized to buy and sell copra nor to give subsidy or loans to those engaged in the processing of copra or oil. The implication or all these prohibitions which are contained in its ch art er simply mean that this corporation is powerless from stabilizing the price of copra in the Philippines, hence, the price of this vital commodity is dictated not always by the usual factor of supply and demand, but by the wishes of certain elements. Under the circumstances, the National Coconut €orporation has to look for entirely new fields and, thanks to the genius of its Board of Directors, it has found new uses for the different by-products of the coconuts. As may be recalled, the National Coconut Corporation was created under Commonwealth Act No. 518 with the principal aim of rehabilitating the coconut industry and placing it in a position independent of the trade preferences with the United States. It has an authorized capitalization of P20,000,000.00 of which only P2,000,000.00 is paid up and P2,500,000.00 already appropriated but not released. Of the paid up capital, the National Coconut Corporation has expended from the time of its organization on August 20, 1940, for capital assets P547,245.55, for researches PI0,351.60, for loans P7,905.00, for copra driers constructed on installment basis Pl,320.51, for the spinning wheels and hand looms for making sand bags as part of the National Defense program P75,957.65; P98,016.89 for organization expenses, and (Pleau~ turn to paue Iii,) e 'J Ile C1Jro11idc of 11 President's Battle to save 1111 i11dustry PRESIDENT ftUEZON AND THE COCONUT INDUSTRV By SOL H. GWEKOH (Editor's Note: - This issue of the "Coconut Journal" commemorates the first anniversary of the organization of the National Coconut Corporation and is dedicated to His Excellency, President Manuel L. Quezon, who celebrates his 63rd birthday on the 19th of this month. It was due to the tireless determination of the President to help the coconut industry that made possible the enactment of Commonweallh Act No. 518 creating the National Coconut Corporation. As a Coconut. Planter C O~IING from the province of Tayabas, which is , within the largest coconut-growing region in the Philippines, President l\Ianuel L. Quezon has become a coconut planter, one of the thousands in the Philpendent for their living, he has time and again shown great interest in the matter and has not allowed any opportunity to pass by without trying to be of help to the coconut industry in general and to the planters in particular. He has sponsored legislation, recommended missions, has gone out of his way to talk personally to the coconut growers, and has appeared before coconut conventions in order to apprise himself of the actual needs and problems of the industry. Under his presidency the coconut industry has progressed greatly; th€ Government has exerted all efforts and utilized all means in order to resurrect it from its once morbid condition. Today, through his unceasing efforts and initiative, the coconut industry is once more back to its former commanding position in the market both domestic aud foreign. Through the National Coconut Corporation it is bound to live again those days when a coconut man would not mind giving away a ten-peso bill for a pair of shoes or the like. Coalition Platform Pledges Support to Industry As far back as 1935 when the political moguls of the Philippines found the necessity of merging the two political factions - the antis and the prosfor the sake of putting up a The President inspecting a coconut plantation in Zamboanga united front in the first presidential elections in the country, ippines today. He has a plantation in Bakr, Tayabas. Several years ago when copra business was brisk, the President could get as much as P3,000 a year, but in these days when there is a lull in the market, he confesses that it yields him an income of only some Pl50 annually. Debt of the Coconut Industry Aside from this, President Quezon has no other personal holcting· in the coconut industry. However, as he knows that the industry is one of the most important in the Philippine::i and upon which millions of his countrymen in the provinces are dethe leaders had already realized the precarious situation of the coconut. industry, so that in the Coalition platform the coalesced parties pledged their support on the organization of the pr0ducers of coconut for the defense and promotion of their interests. "We shall help industries based on the coconut and its derivatives, and we shall continue working for the elimination of unjust burdens imposed in the United States upon these products," they declared. At the same time the Coalition announced its desire to remedy the situation by finding a sure and profitable market for coconut, "and if necessary with the financial assistance of the government." Page~ Pledges Aid to Coconut Growers President Quezon himself, as the candidate of the Coalition for the presidency, did not forget the pathetic plight of the coconut growers and in his pcceptance speech he assured the people that he fwould work for the repeal of the excise tax on coconut oil. Mr. Qeuzon, was, of course, referring to the provision of the Tydings-McDuffie independence act when he made mention of the excise tax. This provision states that "there shall be levied, collected, and paid on all coconut oil coming into the United States from the Philippine Islands in any calendar year in excess of two hundred thousand long tons, the same rates of duty which are required by the laws of the United States to be levied, collected, and paid upon like a1iicles imported from foreign countries." (Sec. 6-b) Labors in the United States In the face of such a situation the President met squarely the planters to whom the excise tax on coconut oil has always been umpopular. To them he related his efforts to stop the enacment of the measure by the Congress of the United States. When the move to levy the tax on Philippine products exported to the United States was started by some legislators, President Quezon went to America and presented his arguments protesting the measure before President Franklin Delano Roosevelt. "I induced him to send a message to the Congress expressing the opposition of the Philippines," he revealed. "But, despite our joint opposition, the: Congress approved the measure." President Roosevelt even went to the extent of informing the proper committees of the House of Representatives and the Senate that "the tax would work difficulties to four million Filipinos. But the American legislators saw that the price of copra went up soon after the excise tax was imposed, anrl it convinced Congress that the excise tax not only would not lower the price of copra but also would prove beneficial to the Filipinos." Planters Urge Abolition of Excise Tax As the coconut producers have always entertained the feeling that the excise tax on coconut oil is working difficulties on them, they once urged President Quezon to recommend its abolition. On -February 19, 1938, a big delegation of coconut planters came to the Malacafian Palace and the President entertained them at a tea party. Later he answered their request and told them frankly his views on the matter. The coconut growers made also another reuest: that the proceeds be used to aid the industry. Said President Quezon on this occasion: The Stand of the President "I was against the imposition of this tax on coconut oil coming from the Philippines. I opposed it and the President of the United States in a spePage 6 The COCONUT .JOURNAL cial message to Congress and through conferences with leading members of Congress, also made known his opposition to the proposed tax. Congress, however did not listen to the appeals of the President and 'imposed the tax just the same. This, in my opinion, is an indication of the impossibility of securing the abolition of the tax because I do not know of any influence in Congress greater than the influence of the President of the United States; and I seriously doubt that Congress, after failing to follow his recommendation on this subject, will proceed to repeal the tax. "I am willing, nevertheless, to support you in your request that the tax be abolished. I have not changed my attitude in this respect although I confess that I am not as positive today as I was before that the tax has done any harm to the industry, or that if it did, the harm was not as much as I had thought it to be. I say this because after the tax had been imposed the price of copra went up one time, which indicates that the price of copra is not necessarily affected by the excise tax, and it may therefore go up be there a tax or not. As CJ matter of principle, however, and regardless of th~ effect that it may have on the price of copra, I am willing to cooperate with you and to support you in your petition that the excise tax on coconut oil be abolished, because I consider the tax not only contrary to, but also a violation of, the provisions of the Tydings-McDuffie Law. Application of Proceeds from excise tax "Regarding the other matter, I am not willini.: to give my support to a petition that would permit the return of the tax collected from the coconut oil industry to the producers of copra. I am not willing to do that much less support a petition of the sugar producers that the excise tax be .1riven President Quezon addressing T ayabas coconut planters at the inauguration of the Quezon National Forest Park in Atimonan, Tayabas on August 23, 1939. AUGUST, 1941 only to themselves. The tax is being spent for the welfare of the whole country, which is as it should be; a tax, after all, should not be collected only to be given back to the people who paid it, for if that were the case, then it would be better not to collect the tax at all. But if what you want is to have the ban which prohibits our Government from using, directly or indirectly, any part of the coconut oil excise tax for the benefit of the copra industry lifted, then I have no objection to it. It really looks unfair that the people who pay the tax are the ones specifically deprived of the benefits that may be derived from the use of the money collected from that tax. I suppose that the purpose of Congress in inserting this provision is to prohibit us from giving the money to the producers of copra, or, specifically, to the manufacturers of coconut oil. I do not believe that the members of Congress will have any objection if w~ produce as much copra as we may want. Congress does not concern itself with the copra industry; its opposition is directed towards the coconut oil industry because there is a general belief in America, which I believe to be wrong, that our coconut oil is competing witii cer~ain articles produced by the farmers in the United States. I do not believe that coconut oil competes with butter, but certain American interests think so, hence they want to put a clamp on the coconut oil industry in the Philippines. As I have said, they make no objection towards copra. You can send copra to the United States free of duty, but the minute you convert copra into oil, you will find them against you. Now, by doing away with coconut oil, I do not know if there are many other uses upon which our copra industry may thrive. A II I know is, harm to the copra industry will result the minute they try to reduce the usefulness of the industry; so that ultimately it is the producer of copra who suffers from this opposition to the coconut oil industry. That is the reason why I am with you in your desire to have the tax abolished, or to have a part of it used for the promotion of the coconut industry in the Philippines, such as making researches leading to the discovery of new uses for the coconut that will revitalize our copra industry. Coconut people not organized "There was a time when the Philippine coconut industry was more important, incomparably so, than the sugar industry. i\Iore provinces and more people depended on this industry than on the sugar in.clustry, and yet you have not made yourselves perfectly organized to cope with situations that may be detrimental to the coconut industry. Consider the sugar people-they are well organized, and when they start an agitation you think the wholt world is going clown. They have been organized for many years. "It is perfectly right for you people to be organized. You will be able to exert your influence better not only here but also in the United States. You can present your grievances in the proper way, you can present them in public, and you will be immediately heard. What do you do in your respective towns? You simply talk among yourselves and say "nalintikan na." Although we understand that expression here, no one in the United States will understand it, much less know what you want, if you always talk that way. And I believe I need not do anything for fellows who are willing to remain passive. "Gentlemen, \let me tell you this: Organize yourselves, study your problems and acquaint the peoples of America and the Philippines with a few plain facts; firstly, that the coconut industry, as one of the main industries in the Philippines, affects more people than those of the sugar industry; secondly, that our coconut oil is not really competing with any industry in the United States in such a way as to harm it. I repeat, you have to educate the American people on that." Benefit derived from excise tax When President Quezon made an inspection trip to Mindanao in 1938, shortly after his 60th birthday anniversary, he visited Cagayan, capital of Oriental Misamis, among many other places he went. In. that southern port, the President was confronted by the coconut growers who took advantage of his presence by presenting him a petition for relief against coconut taxes. When the President spoke to the big crowd present, he made plain his attitude on the matter. Aside from that, he explained to the people the benefit derived from the excise tax on coconut oil. Pertinent portion of hsi speec"h follows: "Of the oil excise tax which is levied and collected in the United States, every cent is returned to the Government of the Commonwealth. From this tax we have been able to accumulate over one hundred million pesos which are now being spent to open roads, mainly in Mindanao, and to build schools. Part of that money will also be used to carry out a program of economic development which will permit the Philippines to face, without much harm to ourselves, the change that will come about when complete independence is granted and the free trade relations between America and the Philippines are fully terminated. In returning the oil excise tax to the Philippines, Congress provided that the Government of the Philippines shall not. directly or indirectly, help the coconut industry. Counsels Patience "I sympathize with the situation of the coconut industry; I know that this industry is in a very sad plight. My own people are suffering tremendously from it. My heart is with you. I wish I could do something for you. "The Joint Preparatory Committee on Philippine Affairs has recommended to Congress to con{Plea.se tu.rn to page 29) J>agc 7 BOARD OF DIRECTORS NATIONAL COCONUT CORPORATION T--1AX!MO RODRIGUEZ Gen. l\1analler Cltainuall Di reel or JOHN R. SCHUi TZ JlfrmlH'r II I I I II Din·clor RAMON SORIANO Member All the members of the Boord of Directors of the Nutionul Coconut Corporation hove been .. e-oppointed by His Excellency, the President of the Phi/i . .,pines, for anoth<·r term. The vacancy created by the resignation of Director Jesus Montenegro some month8 ago has not yet been filled. Taking the oath of of office before Secretary Vargas. In the picture are left to right, Mena Quinto, Assistant to the Manager Hilarion Henares, Assistant General Manager Benitez, Assemblyman F. Lavides, General Manager Maximo Rodriguez and Secretary Jorge Vargas. CONRADO BENITEZ, EXECUTIVE A~ much as. ~ny. other man before the public eye m the Phthppmes today, Dean Conrado Benitez newly appointed Assistant General Manager of the National Coconut Corporation belongs to that select group of men kno\vn as liberal. For not only is he a man of wide vitional Convention and now as a coconut planter with a record for integrity and ability he joins the National Coconut Corporation. sion and solid intellectual fitness but with him the sheer logic of calculating reason is tempered with the mellowing warmth of understanding. Distinguished Career He joins the National Coconut Corporation after a career of such distinction that notwithstanding the fact that he is far from being a litician, his eminence as a national figure was demonstrated by the sponteneous inclusion of his name in 976 ballots in the nation-wide poll of candidates for the Philippine Senate conducted by the chain of the T.V.T. Newspapers. The eminence of Dr. Benitez is no accident. It is but the net result of a consistent record of personal e f f o r t and Love for Coconut Industry In this new field of action he is certainly not CONRADO BENITEZ Fl'Om ··Distinguished. 100" By S. H . Gicrl..-oh COLLEGIATE education for business in this country was started by the University of the Philippines, but it was not given its professional standing until in May 1934, when its school was converted into a college. Made dean of the new College of Business Administration was Profes· sor Conrado Benitez, director of the old school and first dean of the College of Liberal Arts of the University of the Philippines. At 23, Professor Benitez joined the University of the Philippines as instructor in economics. That was in July 1912. At the time he was already holder of the degrees of bachelor of philosophy and master of arts from the University of Chicago. In order to give him the broadest conceivable preparation not only in his teaching of econo· mies but also in his college administration work and pre· sent connections with the outside world, he handled a variety of social science courses up to June 1917. This broad foundation was again extended when he got the degree of bachelor of laws from the Univ~rsity of the Philippines. As a taaglble result of this all-round academic preparation, Dean Benitez has written several books, principally the Philippine Hi.stor!f, which is used by the fourth year high school students; Econo111ic D evelop111 c11t of t11e Philippiu es, used by the second year university students; P11ilippinc Civics, used by the fourth grade elementary pupils; anu A History of the .Oric-11t (as co-author), used by the third year high school students. Of equal importance were his editorial writings while first editor of the P1lilippi11c~ H1•rald and his Food for T11onght, a daily column in the (Please turn to ne,rt page) a neophyte. "The coconut industry is my first love," he says, and anyone who knows the constructive and fruitful labors which he contributed as organizer, director and secretary of the Philippine Coconut Planters Association can not but agree that here is a man in his element. He was born in the great coconut province of Laguna, and from the cradle the warm breezes of the tree of life fanned in his blood a passionate love for this unsurpassed plant-the pride of tropical lands. He therefore brings with him a knowledge of the coconut possessed by few and this, together with his achievement. He is a noted economist, an educator of high reputation, an author and a newspaperman, a lawyer, a former delegate to the National Constituvast comprehension of the economic problems of the country, make him ideally the right man in the right place. In the course of a discussion of his plan he Page 9 The COCONUT JOURNAL reminisced thoughtfully of the times when he was associated with General Manager Maximo Rodriguez in the Philippine Coconut Planters Association. one before us the toil of individuals must be united with that of others; otherwise it will be aimless." "The Philippine Coconut Planters Association," he said, "had practically the same objectives and plans as the present National Coconut Corporation, namely the alleviation of coconut planters and the rehabilitation of the coconut industry, but it was handicapped by lack of funds. The Philippine Coconut Planters Association had the will, but not the means. The National Coconut Corporation, however, has both the will and the means. With the funds placed at its disposal by the government and with reasonable foresight, ambition and planning there is no reason why it should not succeed in its mission." Requisites for Success According to him, success in this enterprise as in every other enterprise, may be attained by the observance of three fundamental points n am el y: Cooperation, control by men of the resources of nature and capacity for high ideals. These are not new ideas, he confesses, yet as in the case of the person who looks but does not see, they are often overlooked and neglected. He says that "cooperation is the binding force that unites the efforts of many into a common channel. Where there is dispersion of labor; the results are inconclusive and the goal, however definite, may eventually appear farther off intead of com-. ing nearer attainment. Hard work is admirable but where the common goal is as vast as the Page 10 Dr. Benitez used a common and effective simile to give point to his words. He cited the example of Tribune for several years, which reflect his deep under· standing of human nature and the social process. In recognition of his scholarly work, he was made dean of the College of Liberal Arts of the University of the Philippines on May 3, 1918; then director of the School of Business Administration, and dean, when it was converted into the College of Business Administration. His thirst for knowledge cannot be satisfied. In Nov· ember 1913, he did research work at the Philippine Assembly so as to give him "that broad experience which one d-0es not acquire from the classroom alone." Again, in October 1916, he became legislative researcher in order to enrich his theoretical knowledge of economics with governmental problems. He went to Japan in the summer of 1917 to continue the study of that country's economic develoiiment started by him a year before; twice he made trips to Mindanao to enhance his knowledge of the economic conditions in that region. Professor Benitez attended the Farmers' Congress in 1915. He was appointed technical adviser to the First Philippine Mission by President Quezon and Speaker Osmefia in February 1919. A good deal of his time in the United States was devoted to the study of American college administration. Aside from his work as technical adviser, he alS-O organized the publicity work in Washington, of which he became the first head. In 1919 he pointed out to President Villamor of the University of the Philippines the need of a survey of the institution. President Benton ordered the survey two years later. He was likewise instrumental in the appointment of a registrar. His suggestion for the univer· sity to have a permanent source of income unaffected by the whims of politics, such as mill-tax, formed the basis of Dr. Benton's proposals to the Philippine Legislature. Through his efforts, experts on higher education in the Bureau of Education of the United States have included the University of the Philippines in their educational surveys since 1919, thereby giving the university a formal recognition in the United States. Another important feature of his work was in getting help for research from the Carnegie and the Rockefelln Foundations, and for this purpose he succeeded in con· tacting Dr. Vincent. He also looked in the possibility of taking advantage of a Congressional law that awarded the sum of $50,000 a year to graduates of agricultural and mechanical arts colleges. Although he was dean of the College of Liberal Arts for two years only, yet he accomplished a great deal in stimulating the growth of certain activities. He starter! the first weekly convocations of his college, an institution which Dr. Benton continued and enlarged. Finding that the college was receiving the miserable sum of P500 a year, he asked for an appropriation of Pl0,000 anrl got it. He also succeeded in getting bigger sums for technical equipments. As director -0f the School of Business Administra· tion, he lent the services of students and faculty to the business firms that needed their services. With this rich experience and these educational thoughts, Professor Benitez assumed the deanship of the College of Business Administration. Indeed, he i8 more than a mere head of his college; he founded the collegiate course in business; he developed it; he got the School of Business Administration to administer the course; he built the business library for the school and the business community; and finally, with the support of Regent Carlos P. Romulo, he succeeded in having this type of university (Please turn to page .~8) a team which must pull together to win. The captain of the team directs it but unless the individual players give him a helping ha11d, unless there is teamwork, the team cannot win. It is no flattery to state that Dr. Benitez himself possesses to a high degree the rare gift of evoking m others the spirit of cooperation. With quiet tact and resourceful handling of men, he attracts in others the willingness to give freely of their best efforts. Of such stuff are leaders made. Warns recalcitrants For those, however, who will not cooperate he has harsh words. "We do not need people who do not want to harmonize their work with that of others. Thev are a lialibility and wiiI deter us in our march to progress. If we ever have such people in our midst, we should get rid of them immediately and tell them that they are free to go elsewhere. The organization must function like a well-oiled machine, each cog doing its part to make the machine be on the move." Harness Nature Through Science The harnessing of nature through the medium of science is the second fundamental that Assistant General Manager Benitez lays down in assaying the Elements of success for the organization. This carries particuler importance for the National Coconut Corporation whieh is embarked on (Please turn to payf' .'JH) • 'Wbat tlJe coconut industry can do to Philippine economy THE ROLE OF THE PHILIPPINE COCONUT INDUSTRY IN DEVELOPING A SELFSUFFICIENT NATIONAL ECONOMY By V. G. LAVA Bureau of Science A LTHO the copra industry was one of the major export industries of the Philippines even before American occupation, its actual value was small, ~mounting to only around 1.5 million pesos for the ¥ear 1899. The reciprocal trade relations between the U. S. and the Philippines which have been in effect since 1907, and the world war of 1914-1918, however, changed this status of the Philippine coconut industry. From a position of minor importance in Pihilippine national economy as compared to our basic staple and most important product, rice, the coconut has become the Ui.ird most important agricultural product in our country, and is now affecting the lives of 25 per cent of our population. There is, however, one very grave difference between the roles of rice and coconut in our national economy. We consume all the rice we can produce, and in fact import rice 011 special otcasions when we have drought, flood, or locust or other infestations during our rice season. But in the case of coconut, we consume only around 8 per cent of our production, and of our total export of coconut products, more than 80 per cent goes to only one country, the U. S. This situation makes it very hard for our coconut producers to obtain high prices for their goods and to maintain a semblance of economic independence. And this precariousness becomes the more aggravated when the U. S., because of its inability to stabilize its own internal and external markets, is forced to impose a system of quotas, excise taxes, and export taxes on our products, and to grant reciprocal trade relations to other countries which produce oils and oil products competinl!.· with our coconut porducts. Even at the present moment, when, because of the exigencies of war there is a great demand for coconut products in the U. S., lack of bottoms prevents a great outflow of these products, and high costs of transportation and insurance prevent our producers from cashing in on the high prices these coconut products command in the U. S. market. And after the present war, with the inevitable chaotic shifting of war-time industries to peace-time industries, it can be expected that a world economic crisis far greater than any ever yet witnessed in the past, wiJI ensue, and that our coconut industry will be beset with hard times, the like of which have never yet been experienced here. At the same time, because of the artificial development of our export industries, we have been habituated to import products from other countries, notably the U. S., to balance our export trade. But the significant and (especially to the coconut producers) important fact about these Philippine imports is that there are possibilities that a great portion of these imports may be derived from the coconut. Consider the following export and import statistics of the Bureau of Census and Statistics and the Bureau of Customs, relative to coconut products and products directly or indirectly related to them: Table I. E:.rport of coconut products for July 1939-June 194l• Product Coconut oil Copra Weight in Kilos 170,124,004 402,276,983 41,541,317 118,323,330 Total. ... Desiccated coconut Copra meal and cake Value in Peso.'! 19,864,837 26,943,593 8,737,16n 4,189,598 . 59,730,197 Table II. Import of products related to coconut for July 1939-June 194(1 Milk Floui· Product Gasoline (liters) Kerosene (liters) Fuel Oil (crude) (liters) Glycerine (kilos) Cottonseed oil (kilos) Olive oil (kilos) Weight in Kilos 243,323,924 106,419,776 221,332,711 88,302,270 468,605,401 24,259 803,782 102,759 Total. ... Value in Pesos 7,920,559 8,977,012 9,193,950 3,282,221 7,191,598 13,115 265,268 49,921 . 36,893,654 It will be seen from Table I that in the fiscal year 1939-1940, around 60 million pesos worth of coconut products were exported in the form of copra, coconut oil, desiccated coconut and copra cake. For the same fiscal year it will be seen from Table II that we imported milk, flour, gasoline, kerosene, fuel oil, glycerine and edible vegetable oils other than coconut to the extent of around 37 million pesos, or around fi2 per cent of our exportation of coconut products. Now coconut milk is not cow milk, but preliminary experiments have indicated that by proper adjustment, coconut milk may be made as nuti'itious as cow milk. Furthermore, coconut meat may have other desirable physiological properties. ' And if in o.ther countries, such as China and even the U. S., soy bean milk is Page 11 being extensively used to take the place of cow milk, why not coconut milk, especially when vitamins and mineral constituents can now be added to it in synthetic form? In the Bureau of Science laboratories coconut milk having the properties of a stable emulsion like cow milk, has been successfully prepared. And small-scale preparations show that coconut milk can even be canned, evaporated, condensed, and probably even produced as powder. In times of emergency, coconut milk may have to be substituted for cow milk, and its uses for drinking, for daily cooking and for preparing milk products can be expected to become more universally accepted from then on. And let us not forget that this milk, being a byproduct in the manufacture of ediblt: oil from fresh coconut meat, its market price could be adjusted so as to be within the purchasing power of the masses. In the case of flour, a similar situation obtains. We import around 9 million pesos worth of flour. But a flour can be produced from the coconut cake byproduct of coconut oil that has more crude fiber and proteins than wheat flour but less soluble carbohydrates. Mixed with wheat flour it produces good bread, cake and cookies. By substituting coconut flour for wheat flour to the extent of 20 per cent, we can Rave mort! than 1.5 million pesos for the coconut industry. The Bureau of Science is carrying on further Rtudies on the utilization of coconut cake for food purposes. The Bureau of Plant Industry has also been carrying on intensive investigations on the utilization of local plant products, including coconut flour, as partial substitutes for wheat flour. Their efforts are obtaining encouraging results, which, if put into commercial production, will greatly contribute to the curtailment of our flour importation. The preparation of motor fuel and other light spirits from vegetable and animal oils has been the subject of many investigations in many countries, notably France, Italy, U. S., Japan, and China. These investigations have shown that gasoline and kerosene fractions can easily be obtained from these oils. But considering the high initial cost fo the oils themselves, and considering the comparatively low cost of the gasoline motor fuel, it is evident that gasoline and kerosene manufactured from vegetable or animal oils cannot compete with gasoline and kerosene obtained from crude mineral oil, unless the initial cost of these vegetable or animal oils can be lowered. Now, if coconut oil is manufactured directly from fresh coconut meat, the by-products of thi11 oil such as coconut milk and coconut flour can be processed and reinforced with the proper constituents to serve as nutritious foods. Ccoonut protein, another by-product, 1 Dr. Weston A. Price, dean of American dentists, in his book, Nutrition and Physical Degeneration. A Com.oarison of Modern Diets and their Effects (Published in 1939 by Paul B. Hoeber, Inc.}, makes the following interesting observation in one of the Pacific Islands: Until the last World War of 1914-1918, copra in this island was cheap and the inhabitants lived on native food. The price of copra was then suddenly boosted to 400 dollars per ton which was paid for in 90 per cent white wheat flour and refined sugar and 10 per cent cloth and clothing. The effect was that dental decay made its appearance for the first time in the Island. When after the war, the pricP. of copra dropped to 4 dollars per ton and trading ships no longer called, tooth decay stop· ped. For observations on medicinal properties of coconuts see Tavera, Philippine Medicinal Plants. Page 12 The COCONUT JO URN AI, can be sold as animal feed, or further processed for human consumption. Then, too, the coconut husks can be processed to yield marketable fiber and materials for wall board, sound-proofing, etc. The industrialization of these by-products will tremendously increase the income of our coconut industry. But another way of looking at this advantage is that with all this added income from the by-products, we shall be in a position to lowed the cost of our coconut oil to such a low level as to place it on a competitive basis even with mineral oils. The lowering of the cost of production of coconut oil is an important consideration in the technology of motor fuel. It is possible that a time will come when, because of a prolonged world economic crisis after the present war, no adequate foreign market may be found for our export products. If we cannot sell, we cannot buy, and we certainly will have difficulty in buying our gasoline and kerosene requirements from abroad. But since we cannot sell our coconut products abroad, and since we shall by then be getting more income from the by-products of oil, why shouldn't we manufacture our gasoline and kerosene requirements from our surplus coconut oil? In this way, we can always be assured of a market for our coconuts, when foreign markets and monopolies fail us -0r try to control and depress the prices of our coconut products to very low levels. Furthermore, if we can commercially produce ( P1NISF t 11 rn to pa[/I' v~) Compliments of MANILA MACHINERY & SUPPLY CO., INC. 675 Dasmarifias, Manila Branch BAGUIO Main Office MANILA Bl' an ch SAN FRANCISCO • 'Jlud11ations of Copra prices and tbeir corresponding 11ttderlyi11g causes wit/Jin tlJe last two decades reviewed. COPRA PRICE FLUCTUATION IN TWO DECADES (1921~1940) COPRA price fluctuations in two decades had affected in many ways and instances the modes of life in the leading coconut provinces. In the prosperous peaks and unusual bulges of the copra trade, possession of a few coconut groves was more than adequate for the sustenance of an average-sized family, with enough to spare for the luxuries of the modern world. During the lowest ebbs of the market, about a quarter of the populations of the country led a niggardly way of life, the vast majority clamoring for government aid and support. Hence, for those whose fortunes were made or whose life-long plantations were lost, the gyrations of the copra market during the 1921-1940 period provide an interesting chapter for retrospection. The major trends of the copra market may be grouped, as follows: ( 1) That post was readjustment period of 1921-1925; (2) The steady decline from 1926 which culminated in the bearish days of 1934; (3) The abnormal bull of 1935-1937; and (4) The incidence of the present European War. The post war readjustment period of 19211925.The declaration of armistice in Europe 011 November 11, 1919 brought a welter of readjustment problems to the economic world. Activities which were geared and set up to cope with the needs of the warring countries were hampered. Demancl for materials vital to the ends and purposes of the war slackened. Prices of commodities the world over slumped as an aftermath. Factory hands were gradually laid off; unemployment problems arose everywhere, the situation being sooner aggravated bv the return of soldiers from the battle front to their respective countries and later mustered out from active service. Copra, which had been riding high while the 1914-1919 war was intensified with fury, toboganed at an accelerated pace. Coconut oil, too, was no exception and followed the general downward trend. A number of local oil mills were gradually shut down, some haunted with insolvency proceedings. Financial stringency became more felt. That was in 1920. The slump in 1920 was carried of copra in 1921 oscillated between a high of P21.07 and a law of r14.04 per 100 kilos, Resecada basis, the annual average for the year being made at Pl6.95. This average was more than 50 per cent lower than the prices which prevailed during the war. Values in 1921 would have been lower were it not for the scarcity of free parcels at the closing months of the year. Some mills were caught short of supplies and hence were compelled to pay better terms, the improvement in exchange rates and lower freight schedules to Europe being regarded as contributory factors which prevented further declines in values. The year 1922 was no better. In fact ,the annual average for 1922 was 5 centavos less than that for 1921. Day to day fluctuations of the market were narrow as the trend closely followed that of 1921. The interisland shipping strike of 1922 did not materially contribute to the enhancement of values, despite lower copra arrivals from the South. The American market was on the downward grade; ocean rates to the Pacific Coast were hiked from $6.00 to $7.00. Local mills were unable to work on the oil market profitably. Several Philippine oil mills were forced to withdraw from the market either by closing temporarily or by working on part time basis. The year 1923-1925 marked a reversal of the trend in 1920-1922. The copra market reacted as the European outlets began to absorb enormous quantities. Heavy buying for Europe's account inflated prices, and as coconut oil in the United States gained strength, local oil mills were forced to move values above the parties in the consuming centers overseas. As the foreign markets continued to offer substantial encouragements, price peaks were established in 1925. Resecada per 100 kilos averaged P23.12, the high for the same year being P26.34. The lowest price at which copra was traded in 1925 was P20.63. The steady decline from 1926 which culminated in the bearish days of 1934.The years 1926-1934 witnessed gradual yet unprecedented declines in the copra market. From one year to the other, average prices hit lower marks, culminating finally in 1934 when Resecada averagt price dipped to as low as P4.28. Disappointing were the factors that intervened and influenced the slide in values. Large arrivals of copra in 1926 weighed heavily on the market. Offerings outstripped the demand by a wide margin as the American market fell off. Average prices in 1926 netted a 2-peso loss compared with the preceding year. The highs and lows in 1926 were beginning to dishearten the copra traders. The market at its best could do no better than P25.91, Resecada basis, the lowest price for the same year slipping to 1'17 .39. The situation turned from bad to worse in 19271928. Large stocks of fats and oils in the United were more conservative in their commitment:> There was less demand from the soap kettle. Local .Pag·e 13 copra production was more than abundant, despite the insufficiency of rainfall in 1928. The unsettled position of the oil market became more acute in 1929. Heavy sales of palm -kernel · oil at lower prices depreciated other oils. Exportation of copra from Philippine outports were abandoned. Wall Street finally crashed in October, 1929. Stocks and securities fell off violently, casting a pall over the markets throughout the world. The siogans "a chicken in every pot" and "two cars in every garage" which catapulted Herbert Hoover to the Presidency faded away as "breadlines" were formed throughout industrial America. Copra prices slipped in succession. The 1928 average at P19.69 gave way to P16.65 in 1929 for a further loss of about three pesos. Uncertainty of tariff legislation in the United States in 1930 made American buyers hesitant. Stocks of fats and oils were fairly heavy for the depressed business condition everywhere. And as oil seeds and oils both in London and the United States receded in endless procession, heavy selling pres· sure in the foreign markets steadily pulled down the price of F. M. M. Drastic cuts were effected locally in the price of copra, coconut oil, cake and meal. The 1929 average was penetrated, 1930 annual average falling off to P13.59. The highs and lows for 1930 were recorded at P16.60 and 10.67, respectively. Pessimism still prevailed in 1931 as the local market continued to struggle against the force of the depression. Demand for copra and coconut oil in the United States was still negligible. Coconut oil receded sharply as attempts to get business failed in most instances. Supply of whale oil and tallow was enormous. London traced a dowl'lward curve, the fall of the pound sterling giving an unsettling effect to the market. While local mills bought sparingly, many a producer lost hopes when copra changed hands as low as P5.13, the best done during th~ year being Pl0.67, Resecada basis. The average price for 1931 was P7.78, which was barely half of the annual average ten years earlier. Coconut oil made on hearway in 1932 either in price or volume. Exports of copra and coconut oil ?ropped abruptly. In fact Philippine copra exports m 1932 totalled only 136,078 metric tons the lowest made since 1921. Coconut oil ship~ents also declin;d to 113,614 metric tons or about a decrease of 30.al per cent as against 1931. Important buyers overseas were aloof. America presented no encouraging aspect, while London was quiet and uninterested. The United States market was still in the doldrums in 1933. Exports of copra were heavier but at. no price advantage. The slight recovery in the shipment.s of co~onut oil placed one difficulty after another m movmg coconut oil at profitable terms Support was lacking in the price movements of othe; fats and oils. London market fluctuations were sh~rp due to the rates of exchange. Prices locally drifted to lower levels, the annual average being made at P5.02, or about Pl.50 less than that of 1932. .Page .14 The COCONUT JO:URNAL New lows were touched at P4.00, while prospects _ continued dim. A hostile American congress despressed the market in .1934. The levy of a 3-cent excise tax on coconut oil coming from the Philippines produced a telling effect on copra prices until a little over the mid-year. Resecada in July was scrapping bottom at P3.30 and then improved in the last quarter as a severe drought penalized continental United States. Tapering supplies at the closing months of the year steadied the market. The destructive typhoons of October and November, 1934 curtailed production and in the struggle to have copra, Resecada leaped to P7.20, the average for the year being made at P4.28. The abnormal bull of 1935-1937.The pendulum swung back and extra-ordinary appreciations in values transpired in 1935-1937. The severe droughts in the United States, accentuated by crop failures in other parts of the world, lifted copra and coconut oil prices, aided materially by the low production locally which reflected the effects of the 1934 typhoons. Shortage of fats ~nd oils in the United States was felt. In 1935 Resecada's annual average was more than twice of the previous year. The scarcity of local supplies was so acute that local mills had to import about 3,000 tons c.f copra from the Dutch East Indies. Buying activity on the part of local desiccators lent support to the copra market. Local prices scored advances in swift succession as the United States Congress failed to act on the Kleberg Bill which proposed a 10-cent tax on margarine containing non-domestic oils, but passed a compensatory tax on free fatty acids. Threats of a major war in Europe reflected the oscillations of London. Shortage of edible fats and oils in America in 193~ made itself felt with increasing stringency. Relief, bonus money, and increased wages enhanced the purchasing power of the American people and recovery made a rapid pace. Sustained demand from Eur~pe augmented the deficiency of edible fats and oils in America . High prices were maintained locally as the market featured a continuous dearth of offerings. The Bailey amendments which placed excise taxes on oils theretofore exempt exerted bullish infl~ences. Average prices made further up~ard strides. Resecada was traded as high as P20.GO m 1936, the lowest being P7.00, which was still higher than the lows of the previous five years. The shortage of edible fats and oils were still felt at the beginning of 1937 and the Pacific Coast ~hipping ~trike enhanced the scarcity of coconut oil rn the Umted States. Prices of copra and coconut oil early in the year went beyond the levels of competing oils. Resecada was successfully solrl a8 high as P23.00. - . Under the stimulus of high prices at the beginmng of 1937, increased plantings of oil seeds throughout the world set in. This resulted in larger exp.ortable surpluses in the producing centers. The United States alone produced record crops of cote f'INOlf~ turn to paf/f' q!I) • .A l11u 11l1Pc fiber bvard i11d11;l1y urn be set 11p Jro111 cvrn11111 jibcr>. FIBER COCOTEX FROM COCONUT HUSK By ANGEL B. ABAD Technical Assistant National Coconut Corporation T HE utilization of agriculture waste as raw material for manufacturing processes with th~ · aim of eliminating and converting it into commodities of great economic value has attracted much atention in recent years. Disposal of these wastes, long- considered worthless. or practically so. and whose accumulation presented oftentimes an unsightly situation. has challenged our men of science and engineering ski!. And today. thanks to the tenacity of these men. many of such waste products are now being transformed into articles of surprising rnlue and usefulness. Almost all waste produ<.:ts today, whether from industrial or a)!ricultural processes, are subjected to close scrutiny. One such class of waste materials is the woody and fibrous structure of plants. This is particularly noticeable in the fiber, wallboard and insulation board industry which utilizes as raw materials the surplus mill bagasse. corn stalks, straws, eel grass and wood wastes. In fad. almost any fibrous waste material which could be obtained in fairly large quantities and under stead~· supply is now being industrialized. In kel'pi11g up with this trend of science to uncover suitable and marketable forms with which the by-products of the coconut industry can be disposed of, it is only natural that the coconut husk, an economic waste and a poor sort of fuel, should be tried as raw material for fiber board manufacture. The necessity of putting up a fiber board industry of our own becomes more imperative when we realize that our import of this product, classified as wallboard and corkboard, amounts to hundreds of thousands of pesos annually. The following data will give a better idea of the flow of this material into the local market : Year Wallboard Cork board Total 1935 p 98,869 Pl9,780 P118,649 1936 207,017 6,233 213,250 1937 327,319 18,848 346,167 1938 298,734 29,525 328,259 1939 421,328 12,944 434,272 1940 291,566 33,086 324,652 The above figures illustrate that the importation of these products which could be wholly manufacturect locallv out of our abundant raw materials is on the · increasing trend except for abnormal times as in 1940. The acceleration with which the Philipines adopts modern living conditions, such as protection from cold, heat and noise, relays a correspondingly increasing demand for this structural insulating materials. The development of this fiber board industry promises. therefore. a bright m;pect. What Fiber Board Is Before we embark 011 a conscientious study of the suitability of coconut fiber and pulp as raw mate1·ials for board making, a thorough knowledge of this material and the industry it::;elf is e::;sential. Fiber board is not paper, nor can it be termed Nacoco Finished wallboard from coconut fibers 1/>lrnsc turn l o page 52J • Coopm1tio11 tt>ill ~olt•c 111auy of tlJ~ pla11tcrs· problems. THE NEED OF COOPERATION IN THE COCONUT INDUSTRY By FELIPE E. JOSE Chief, Field Service, Cooperatives Department, National Trading Corporation I F nothing unforeseen takes place between now and 1946, the Philippines will be left alone to decide its own fate. The closing of the American market after independence will inevitably usher in an era of industrial chaos with the consequent result of widespread unemployment and misery if nothing is done between now and the day of the political separation of the Philippines from the United States. All government's efforts at cushioning the shock to be brought about by the political change will be of no avail if the people directly affected by the abrupt loss of the American market will not undertake their share in the task. The government will be unable to carry out an effective economic readjustment program without the cooperation of the people whose general welfare will be the foundation-stone of a strong political and economic structure. The separation of the Philippines from the United States could be made painless if the government and the people will collaborate in the economic readjustment work. Among the major industries that will be hard hit by the loss of the American market will be the coconut industry. Over 4,000,000 people depend for work and livelihood on this industry. About P420,000,000 is invested in it. It is the only industry that is in the hands of Filipinos. If properly taken care of, according to Assemblyman Kalaw who toured in the coconut countries of the world, "the agricultural export products of the Philippines that can best stand the shock of independence is the coconut product. If the necessary preparation is made. it will be our 1<reatest bet in the open markets of the world." How Planters Can Solve Their Problems As to how the coconut industry could stand the shock of independence is the problem that remains to be solved. It could be solved effectively by the coconut planters themselves with the government providing them with facilities. The problems of the coconut planters, as in other industries, are: (1) Financing, (2) Transportation, and (3) Marketing. These problems could be solved through cooperation. If the Swedish wheat farmers were able to establish their own flour mills and the Danish dairy farmers were able to build their own dairy plants through cooperation, there is no reason why the coconut planters would not be able to improve their lot by pooling their resources together for their common good. The Kooperatiba Forbundet in Sweden, which operates the flour mills in that countrv solved the problems of financing, transportation and. ~arket ing for the farmers. In like manner the Danish Federated Cooperative Dairies solved the problems of the dairy farmers. Solution Of Financing Problem The financing problem in the coconut indwitry could be solved largely by the coconut planters themselves if they only have the initiative to do so. They should create their own credit facilities. This could be done by organizing credit cooperative societies or credit unions. This is being done in England, Denmark, Germany, Sweden, Finland, United States, .Japan, etc. In .Japan, there are about 7,000 of the:;e When local helmet makers called on the National Coconut Corporation to seek aid against the ruinous competition of alie!i manufacturers opera+. ing under dummies. The group was led by Celso lcasiano. Included in the picture are Engineer Hilarion Henares, Comptroller Gimenez and SecretaryT reasurer Benjamin Salvosa of the NCC. AUGUST, 1941 societies, having a circulating capital of over Yl,000,000,000; in the United States about $1,000,000,000 circulate in some 6,000 credit unions; in Finland, the cooperative bank reserves amount to about 'P184,000,000; and in England, the cooperative societies operate three biggest banks in that country. These banks were started by people who do not belong to what we may term "moneyed class". If properly managed, this type of cooperative society would prosper in the Philippines. The Batac Credit Union, organized a few years ago by the members of the Church of Christ in Batac, Ilocos Norte, started with Pl.00 capital. At present, it has over P40,000 circulating capital. Transportation And Marketing Problems The second problem, transportation, could be remedied through cooperation among the coconut planters. Their cooperative societies, under a federated body, could operate trucks and other types of transportation. And the third problem, marketing, could be soh'ed by organizing cooperative marketing associations. These associations, federated under a central body, will handle the marketing of the prcducts. This will eliminate middlemen who, for centuries, exploit the producers and the small farmers. Along side the cooperative marketing associations will be the consumers cooperative stores where the planters and \Vorkers could obtain their daily necessities at cost. The central body of all coconut cooperative societies, therefore, will provide credit, transportation and marketing facilities. It shall also operate factories and manufacturing plants to convert coconut byproducts into finished goods. With the improvement of copra through the installation of modern copra driers, the use of defiberizing machine to convert the husks into fiber8, the employment of machinery to obtain wood preservative from the charcoal of the coconut shells, etc .. the industry will surely enjoy a new life. The planters will then have larger income and more people will be provided with work. Cooperation Must Implement Efforts Of Government If the organization of coconut cooperative societies could be undl'rtaken by coconut planters and workers, in cooperation with the Government, the economic readjustment program now being carried out by the Government preparatory to eventual independence in 1946, the coconut i11dustry will sm·l'ly "stand the shock of independence." Without the cooperation of the coconut planters and workers, all government's efforts to improve their eonditions will 11ot give impressive re~mlts. LOANS TO COCONUT PLANTERS The policy of the National Coconut Corporation to extend loans to coconut planters and copra producers is of far-reaching significance. The rehabilitation of the coconut industry in this country is a long-way program demanding joint efforts of the government and the coconut planters themselves. The improvement of the quality of copra so that better prices could be demanded is vitally a reconditioning factor in the process of giving a new lease of life to the industry that is demanded upon for livelihood by millions of people. One thing is to be noted, in effect, that a good number of the regulations governing the granting of loans to the coconut planters are not totally necessary as they are bordering on red tape. What is needed in remedial processes is quick action without unncessary delay. Of course, it is highly in order to stand firm by adopting strict regulations not only to protect the interest of the Coconut Corporation but to find out the reactions that may be registered from the coconut planters themselves. For, as a matter of fact, there is nothing wrong in the whole policy as there is nothing wrong to give full trust to and faith in the planters. At any rate, however, the National Coconut Corporation is doing a great task in the direction of accomplishing the greatest good for the coconut industry. Such broad and long·range policy of the government needs practical translation to the masses of the coconut planters and copra producers in the Philippines.Prom ·''l'l1t' Cebu Advertiser" - x - - Compliments of Mrs. Maxima Clemente SPINNING & WEAVING CONTRACTOR for the NATIONAL COCONUT CORPORATION Shop: Concepcion, Malabon, Rizal Page 17 e £.et us learn a lessot1 from China. 1.ly a decc11tralized prod11ctio11 of vital war materials s/Je /Jas kept 11/1 an 1111flicl.ii11g resistance agait1st superior forces. DECENTRALIZATION: KEY TO ECONOMIC DEFENSE By HILARION G. HENARES THE leading theme of the day is War. The leading problem National Defense. But National Defense is itself reducible to military and economic preparedness. We are concerned, at the moment, with the economic phase of the problem. In the light of present-day events, it seems to me that our industrial set-up needs revamping if we expect to survive the existing crisis. Not that industrialization, in its modern concept, is no good per se. Rather, its application here is inappropriate, or at leaRt premature. In the United States, mass production is both effective and necessary. By mass production I refer to the large-scale output of commodities by a big corporation utilizing automatic machines to supplant human labor. This method has been proved effectin in every phase of economic activity, from automobiles to canned salmon, from tooth-brushes to electric bulbs. It was necessary to resort to mass production because human labor in America costs high. To cut down overhead, to reduce unit cost, manufacturers were practically forced to turn to precision machines. The desired result was achieved, all right. Cost of labor per unit product was cut to a minimum. The Engineer Henares with Mr. Van Der Jagt. Photo taken at a sack factory in Amiens, France. public rejoiced at the flooding of the market with goods at low prices. But the nation had to pay for benefits derived. Mass production created the spectre of Technological Unemployment. Why? Because mass production means bigger profits for capitalists. This in turn induces labor to demand high wages. Capitalists have to accede to Page 18 these demands or else close down their plants. By way of retaliation, however, engineers and inventors are hired by capitalists to create better automatic machines capable of reducing human labor to a minimum without curtailing production. These new machines will again bring increased profits for capitalists, inducing further demands from labor. And so on around the vicious circle till a breaking point is reached, or till there are left only a few privileged workers earning $10.00 or more. Against this handful aristocrats of labor will be armies of unemployed. I have watched breadlines in America-lawyers, doctors, engineers, line up with common hoboes to get their relief checks. It is a pathetic sight. It knocks the pride off any man. One night, I saw a husky man parading down Broadway with a placard on his back that read: I DON'T WANT GOVERNl\IENT HELP; I WANT WORK. The experience of America and England should not be repeated here. They were forced into mass production because of high living standards and high cost of labor. But here in the Philippines, conditions are different. Our inode of living is simple. Labor is cheap. l\loreover, agricultural masses periodicall~· increase the supply of Philippine labor due to the seasonal nature of their crops. Still another reason why mass production is not essential to our etonomy is that unlike the United States and other highly indu.~ trialized countries, we are not out to eompete in the world market. We strive primarily to produce locally what we ordinarily import from abroad. To take a concrete example: say we want to produce coir sacks or sand-bags under the American industrial system. We put up a highly mechanized plant capable of turning out 10,000 bags a day. But this factory will require around 500 men who will have to he paid from Pl.00 to P3.00 a day, all in all a total investment of at least two million pesos. By harnessing home industries, and taking advantage of "in between" labor made idle by sea8onal crops, the same production can be effected with an investment of half a million pesos and the labor of 80,000 men, women and children. Of course they will consume more time, and they will not earn as much as the 500 workers in the factory unit, but we shall have the consolation of knowing that more people are being kept busy, are given the chance to earn a livelihood, and that unnecessary exodus of labor to crowded industrial centers such as Manila is being pre\'ented. Moreover, in the event of war, a single bomb can wipe out an entire factory or industrial district. We know by now that the crippling of factories engaged AUGUST, 1941 in producing war-supplies is as important an objective for air-raiders as strafing a battalion of infantrymen. Successful bombings of these objectives demoralize troops dependent upon them, interfere with planned strategies, and tip the scales of war in favor of the e;·1emy. Large factories, under the American system of mass production, are usually clustered together, concentrated in urban centers. They are not difficult to locate from the air. Tall chimney stacks, large buildings, rows of laborers' dwellings mark them out to the enemy's bombs. Let us learn a lesson from China. For years, she has withstood invasion by Japan. Militarily, she uses guerilla warfare to advantage. Industrially, she has decentralized production of vital war materials, yet keeping up an unflinching resistance against superior forces. Instead of concentrating her raw materials in large factories and making use of bulky, stationary machineries, she has organized small but well-coordinated cooperative factories in every village and town. Household factories are mobile units, with portable tools and equipment, whose output are assembled into finished arms or supplies "somewhere in China." .Just where, Japanese bombers never can locate-for the simple reason that it has no permanent location. When one, or two, or more household factories are blown up. others spring up elsewhere. There is no permanent concentration of either labor, raw material, or finished products. Yet production is unceasing. This is what decentralization is doing for China. For a country like ours, scattered and far-flung geographically, decentralization can do no less. Nor is this system good only during war-time. In the Philippines, it could be utilized to keep our idle man-power from unnecessarily crowding urban and industrial centers; it could solve seasonal unemployment; it could increase the earning capacity of laboring masses as well as inculcate in our people the spirit of industry. It is not a backward step. It is a corollary to economic progress. Compliments of A. Z. SALVACION General Merchant & Hardware Dealer Exclusive distributor of "Salvacion" Brooms & Push Brooms in the Philipp•ines Manufacturer of Spinning Machines and Hand looms for the NACOCO Tay a bas COMPLIMENTS of UN SING TABLERIA AND HARDWARE H. S. Gomez Manager \VHOLESALE AND RETAIL Building Contractor for Private, Govern1nent Corporations Road Construction Cable Address: Manager H. S. GOMEZ P. 0. Box 6 Washington Street Atimonan, Tayabas, Philippines Dealers in All Kinds of Philippine Lumber and galvanized sheet. Black Pipes Plumbing fextures, Building f i x t u r e s agency Petroleum, Gasoline Diesel oil and flour Sampan Brand. Page 19 e '.:The qreal co111111crcial fiossibilities of t1Je coconut slJell. UNLOCKING THE TREASURE IN COCONUT SHELL By WM. J. ORLAND President National Electric Corporation (Manila) THE manufacture from Coconut Shells and Husks, on a commercial basis, of certain products which enjoy a world wide market with prices which are not only lucrative, but quite staple the year round is now a reality in Manila. Coconut Shells which in the past have been considered of little utility, is today the basis of a new industry which will bring great returns to the people and do much toward the industrialization program and the rehabilitation of the Coconut industry. All the above products contain from 30 to 100% ingredients made from Coconut Shells. The year 1940 marked the beginning of a new Era of prosperity for the Coconut industry, and may well be called the year in which the unlocking of the William Orland The Coconut industry and the people in general are indebted to the Officers of the National Coconut Corporation for their vision and efforts in making this new industry possible. When one considers the fact that approximately 24,000 ordinary size Coconut Shells, the equivalent of one ton, (Coconut Shells were formerly considered waste) has now a minimum value of P165.00 pesos after treatment, it becomes exceedingly difficult to place a value on the vision and foresight of those men who made this a reality. Coconut Shell began. This new Era was brought about by men who believed that the rehabilitation of the Coconut industry would be brought about largely by the utilization of the so-called Coconut waste products, determined men, who had faith in the ability of its people to overcome any obstacle, be they ever so great, thus the National Coconut Corporation was organized. As an illustration, the following will give you some idea of a sad picture which is on the way of being remedied. The Philippines imports annually a large amount of Carbon products, such as Flashlight Batteries, Telephone Batteries, Radio Batteries, Carbon Electrodes, Motor Brushes, Graphite etc. These items drain the Philippines of an enormous amount of money, which in turn helps to create an unfavorable trade balance for the country. Realizing the importance of utilizing Coconut Shells, the National Electric Corporation, co-operating with the technical staff of the National Coconut Corporation, have brought to a successful conclusion a series of long experiments, and finally established a factory to manufacture the above products on a commercial basis. The National Electric Corporation factory in Manila, is now operating, using 100% Filipino labor and American methods of mass production. The Factory has a daily capacity of: 25,000- Flashlight Batteries 2,000-Telephone Batteries 300-Radio "B" Batteries 100,000- Carbon Electrodes Page 20 The process of converting Coconut Shells into the various grades of Carbon is rather complicated. The following is written merely to give the layman a picture of what happens to the Coconut Shell after it is taken from the "Tree of Life " and starts on its long and hot journey to be unlocked. I say hot journey, because, in the first operation, the shells are placed in a retort and remain there for several hours under terrific heat. We are now forting the shell to give up its wood preservative, while at the same time we are converting it into high-grade charcoal under the process known as destructive distillation. · The charred Shells are now taken from the retort and placed into a specially designed apparatus to receive special treatment under pressure. Thus attivated carbon for Gas Masks is produced. Other charred Shells after leaving the first retort are again placed in another retort for further carbonization and to reduce its electric resistance to the passage of current. A~ter the above treatment, the Shells are ground to various mesh, and placed in bins, later to be mixed with other ingredients, or used alone depending on the product to be manufactured. This product is known as Carbon. In the manufacture of Electrodes the Carbon is mixed with other ingredients and heat:~d. while still h?~· it is compressed into desired shapes under terr1f1c pressure by a specially designed hydraulic press, later to be marked for proper lenghts by mathine, and again packed in containers and placed in special kilns to be baked for several days. Later when the Electrodes have cooled sufficiently to hand!:, they are cut, and the ends properly shaped by machme, they are now packed and rPady to SPl"Vt' the many and varied uses of industry. (Plea.<te turn to p<tf/P. .'IR) AUGUST, 1941 Compliments of THE EDWARD J. NELL CO. MACHINERY, MILL SUPPLIES, MINES & ETC. P. 0. Box 1640 Manila, P. I. Compliments of MANILA LEATHER GOODS 450 P. Gomez, Sta. Cruz Manila CYANOGAS Rats Moh~s Ants KILLS Field 1\ilice Snakes All Insect Pests For detailed information call 011 BOTICA BOIE 95 Escolta Manila PEERLESS HI-LIFT PUMP A MAJOR DEVELOPMENT IN LOW COST WATER LIFTING METHODS for COMMERCIAL AND DOMESTIC USE! •NEW IN PRINCIPLE •NEW IN VALUE •NEW IN DESIGN NOT A TURBINE PUMP NOT A PLUNGER PUMP Hl=LIFT PUMP GIVES THE ADVANTAGES OF BOTH THE MOST EFFICIENT PUMP OF MEDIUM CAP ACITY FOR HIGH AND LOW HEADS MECHANliCAL SUPPLIES, INC. Tt•I. No:-;. 2--10-8:>--2-40-l'!O :~20 13th ST. - PORT AREA - MANILA Page 21 • 'New gasoline substitute and its 111ec1Janis111 s1Jo1oing bow inconspicuous coconut charcoal can produce motive power derivative. PRODUCER GAS FUNDAMENTALS THE making of producer gas consist essentially of drawing a limited quantity of air through a bed of red hot fuel (coal, coke, charcoal, wood, & c.). If a container is filled with charcoal and ignited it can be fanned to a glowing mass by supplying an abundance of air to the fuel. If now the amount of air supplied to the heated bed of charcoal is reduced, there will be a quantity of charcoal at a sufficiently high temperature to combine with oxygen readily, but for which insufficient oxygen .PR'1PUCER temperature of the fire does not fall, consequently the amount of steam or water admitted to a gas producer must be carefully controlled. For Australian conditions the admission of steam is considered to be very desirable as the ·hydrogen evolved improves the quality of the producer gas. Further, oxygen obtained from steam is not mixed with nitrogen or other diluents as in the case of atmospheric oxygen used in reaction ( 1), thus a greater concentration of combustible gases is developed. C"'!_.('BVRETTQR is available. The combustion of the carbon, which is the principal element of charcoal, will be incomplete, and a gas, carbon monxide (CO), will be formed. This gas is capable of burning to carbon dioxide (C02) when mixed with more air and again ignited. Consequently, if a gas producer be arranged with a limited supply of air, the hot charcoal will combine with less oxygen than it would in an ordinary open fire thus forming a combustible gas which can be burned elsewhere. Hot /'Rl"'!AllY {1£/lllEJl g,e Dvsr TRAP carbon possesses another ability; it is able to dissociate the elements of water or steam to give hydrogen and oxygen. The hydrogen remains free, but the oxygen combines with carbon to give carbon monoxide. This reaction is also used in a gas producer. It is simplest to assume that in a gas producer the first reaction is to form carbon dioxide, which is then reduced to monoxide, but whatever the case may be the results are the same and may be set out as below: (1 ) c + o, - co, (2) CO, + C 2CO (3) H,O + C - H, + CO C = Carbon 0 = Oxygen H = Hydrogen CO, = Carbon Dioxide H,O = Water The first reaction ( 1) is that which normally takes place in an open fire. The second (2) and third (3) will only take place at a high temperature in the absence of oxygen, and it will be seen that the first and second could be combined as follows without altering the result. (4) 2C + 02 -> 2CO The reaction (4) or (1) combined, gives off heat (is exothermic) and this heat is used to maintain the temperature of the fuel bed and to bring about the reaction (3) which absorbs heat (is endothermic). A balance must be set up between the heat evolved in reaction (4) and that absorbed in (3) so that the Page 22 S£COH0"1RY rJE.#IYER P.R F"ILTGA! In brief, the essentials to making producer gas are-A hot bed of fuel in a suitable container and through which a limited amount of air may be drawn together with a controlled supply of water or steam. The result will be the generation ·of a mixture of gases: Nitrogen, hydrogen, carbon monoxide, and a small percentage of impurities. This is the mixture known as producer gas. Such a gas, when mixed with the right proportion of air, can be exploded in an internal combustion engine in exactly the same wa~· as an air-petrol mixture. Quite a large number of producers have bePn evolved in an endeavour to obtain the best p0:-isible i.:as with any particular fuel. The principle is the :-iamt· in every case. Designer:., try to produce a g-a.'l which burns with great heat (high calorific value J and th1>n to deliver this gas to the engirw, free from any tar, soot, dust or other solid matter and cooled to the temperature of the surrounding air, or lower if possible. Producer Furnaces Furnaces have been constructed in a great variety of shapes and sizes. The older types were almost invariably lined with fire-brick or similar material. This lining frequently led to trouble as it was affected by vibration, and it has survived only in ::itationary plants. In vehicular plants it has been found po::isible to so AUGUST, 19-U arrange the air inlet and the gas outlet in the furnace that the container is protected by an envelope of charcoal which surrounds the fire and through which little or no air passes. The charcoal actually acts as an insulator for its own casing. Special precautions in design have to be made at the point where the air enters the fire, as high temperatures are invariably met at such points. Furnaces may be divided into three types according to the direction of the draught in them, i.e., down draught, up draught, and cross draught. The first type is not normally used for charcoal plants and needs no particular explanation. In the up draught producers air is admitted at the bottom of the furnace through a grate, and considerable engenuity has been displayed on the part of designers in making a grate which will withstand the high temperatures at this point. The furnaces are usually surrounded by a false shell which acts as an ash hopper, and the air supplied to the furnace is pre-heated in the space from a "drip feed" of water supplied it. Gas is drawn off at the top of the furnace and pass~d on to the cleaning proASH llOPPE. L>OWIY OR/lt/CllT t/P f)R/IUCllT eess whieh will be discussed later. In the maintenance of up draught produeer:-; it is neeessar~· to see that air is admitted through only the proper air inlet and that all doors, inspection holes. and filling holes are securely dosed and sealed. The grate must be kept free of clinker as this seriously hampers the operation of the producer. Makers usually provide the necessary tools for this work, and it should be attended to at regular intervals depending 011 the quality of the fuel used. In the cros.s draught producers the air is let into the furnace throu!{h special openings in the side of the e:.i.sing. In most cases only one air inlet or tuyere is provided, and in all case:;; special arrangements have to made to cool the tuyere. Some makers provide water cooling, either in conjunction with the engineeooling system or by means of a separate water t<rnk eonnected to the tuyere and operating on a thermosyphon system. Some tuyeres are cooled by the air supply to the producer, which passes round a tortuous path through the tuyere on its way into the furnace. Either steam or water is admitted with the air as it enters the furnace, and means of controlling the rate of water supply are provided. Gas is drawn off to the cleaning system through a grate or grill on the side of the furnace opposite the tuyere, and a second grate or similar device is usually provided below the path of the gas in the furnace for the ash and clinker. As in the case of up draft producers, it is essential to see that air enters the producer only at the correct point or points and that all other openings are sealed. Clinker removal is neces. sary as in up draught furnaces .. CLEANING SYSTEM When the gas leaves the furnace it carries with it particles of dust, soot, ashes, fine cahrcoal, etc., and it is essential that these impurities should not be allowed to reach the engine. The gas must, therefore, pass through a series of scrubbers or cleaners. Many types of scrubber have been used by different makers, and only most successful will be described here. With stationary plants the practice is to use a large cylinder filled with coke or similar material a:; a CROSS .0;{)/IUCHT scrubber. The gas passes from the producer upwards through the coke with which it mingles intimately and a shower of water is passed downwards through the scrubber. The coke and running water combine to clean and cool the gas very effectively. For vehicular work the weight of the equipment is of great importance and so the coke and water scrubber has had to be discarded and replaced by dry scrubbers and dust traps. With a number of designs the gas passes straight into the dust trap and there baffles are placed to cause the heavier particles to be deposited. In another type of trap the gas paSSl'S through baffles in which the openings are shaped to impart a swirling motion to the gas, and the heavier particles are separated by centrifugal action to the outer portion of the scrubber. They then fall to the bottom of the vessel where they collect and can be removed at regular intervals. Filters are also considerably used as gas cleaners. Pads for these filters have been made of many materials such as wood wool, metal wool, sisal, hair felt, etc., and they are usually packed into trays or cages to facilitate cleaning. In some cases the pads are soaked in oil or water, and in others they are dry. The filters must be regularly cleaned and the pads washed so that their effectiveness is not impaired. In many cases the pad material has to be teased from time to time to prevent its becoming so tightly packed as to impede the passage of the gas. Various oil scrubbers are also used as a final stage, in the cleaning process. In som7 the gas actually (Please turn to page .!u) Page ~3 AUGUST, 1941 "V¥Cake 71Vhite ~opra <9nly G)3y CJ\(,ineteen CJorty <Ehree" With a Modern Copra Dryer A modern copra drier has the following great advantages: • It produces white copra and therefore commands much better prices. •The copra is dried uniformly and overheating and scorching which are injurious to its production are eliminated. •The moisture content is low, varying from 6 to 8'~;, as compared to 17% in the old "tapahan" method. Let thi!-i our slogan be the slogan of all Philippine copra producers: "MAKE WHITE COPRA ONLY BY NINETEEN FORTY THREE" NATIONAL COCONUT CORPORATION 201 Banco Hipotecario Bldg. Manila, Philippirws "TECK CHUAN HARDWARE" AND AUTO SUPPLY General Hardware Dealer And Contractor P. O. Box 107 Quezon Avenue Telephone No. 88 Lucena, Tayabas SOCONY SERVICE STATION The best in the province Washing, Greasing, Spraying And General Mobilubrication Jobs EXCLUSIVE DISTRIBUTOR FOR SOCONY GasoMne GARGOYLE Mobiloil STANVAC Diesel Oil GOODYEAR & KELLY Tires FORD & CHEVROLET Spare Parts And Accessories Etc. Complete stock of general hardware materials Page 24 CJor CVetailed and exhaustii1 e imformation regarding the problems, possibilities and potentialities of the coconut industry - Read The ' COCONUT JOURNAL • 'Jhe coconut tree has a thousand and. one uses but so has the Babass11 of Brazil. BABASSU By DOMINGO 8. PAGUIRIGAN Bureau of Plant Industry BABASSU is genuine Brazilian Palm which forms vast and dense groves in various states of the country particularly in Maranhao and Pisui. Its habitat covers an extensive area, which includes the Amazon and Mato Crosso, down to Bolivia. It also occurs in the state of Minas Gerais growing simultaneously with the Macaubapalm (Accrocomia sclerocarpa). Scientific Classification-Orbignia speciosa (Barbosa Rodrigues), Family, Palmae. Regional Distribution-It is in the state of Maranhao that one finds the largest area covered with Babassu palms, forming very large groves with approximately 13 billion palms-an extension of some 8,655,400 hectares (21,387,493), each palm yield an average of 1,000 nuts which means a total of Maranhao is estimated at 195 million tons of kernels, the yearly Brazilian production capacity is estimated at 300 million tons of kernels. Uses-Practically all of the Babassu is used. The leaves are used in the manufacture of straw hats, purses, mats, sieves, and baskets. The nut is burned green to smoke up latex, as it produces a thick smoke. The kernel has several uses. A fiber having various uses is scutched from the epicarp. The yellowish fecula extracted from the mesocarp is a nutritious meal from which beverages similar to chocolate, and mushes for children and convalescents, are made. The endocarp, which represents 75 % of the nut, can be used as a substitute for vegetable ivory where this is used in place of home for making small articles, such as buttons, insulators, etc. Tests made in the United States showed that the absorbent substance (fuller) can be used in the composition of dynamites. The mescocarp is also used as insulating material. From the shell the following products can be obtained, Calcium acetate, Methyl alcohol, acotic acid, vinegar from pyrolignous acid, light and heavy lubricating oils dyes. Carbolic acid, creosol, iron inks, tars, rossins, and a high-quality fuel. The oil is used both as lubricant and as fuel; in the perfume industry, it is used in the manufacture of quality soaps; in cooking, it subtitutes lard and olive oil. The butter made from babassu as good and nutritious as that made from milk, is already used . The stalks of the palms are used as stays or props. Chemical and composition-The babassu nut is composed of the following parts: Epicarp . Mesocarp . Endocarp . Kernel .. 11% 23% 57% 9% The epicarp is composed of resistant fibers. that cover the moscocarp. . The mesocarp is composed of a compact, •pulpy substance, violaccous white with a high percentage of starch and tannic acid. The endocarp is the enclosure of the kernel if is a compact tissue of ligneous cells, it can be · used in the making of buttons, etc., it contains hydrochloric acid, silica, iron phosphorus, magnesium, and alka-line metals. The seed is actually the kernel which yield and oil of a high industrial value, the analysis of which reads as follows: Looming as a Competitor to the Phmppine coconut from which Vegetable Oil is made in the babassu tree of Brazil. Page 21G Density at is degree C ... Melting Point . . . . . . . Acidity index ... Saponification index . . . Iodine value . . . . . . . . 9218 23.2 c 237.4 12.82 14.11 The cake-Afte1· the extraction of the oil from the kernel the residue, which still contains a certain amount of oil is pressed into cakes, used as cattle food, enjoying a great demand in foreign markets. Te epicarp, the mesocarp and the endicarp can be actually used as fuel for various tests have been made with positive, encouraging results. A methodical study concerning the treatment of babassu coke gave the following results: 30% 60% 8 % 1.5 o/o metallurgical coke acetic acid tar methyl alcohol The coke analyzed in the laboratory of th(~ "Escole dos arte et Metiers" in France, gave the following results: 90% 5.4 ~a 4.4 s~ o.85 ~a pure carbon volatile matter aches total humidity As a dry fuel it gives 7,700 calories. It is considered a most excellent fuel because it does not contain sulphur or arsenic and has but a very small percentage of phosphorus. Status of Industry.-The babassu oil industry in Brazil is still in its primary stage, in spite of the existence of a few mills, especially in the State of Maranhao. The United States and Europe give a preference to babassu nuts yielding from 65 % to 66 % oil. Trade.-Following is a list showing exports of babassunuts, during a period of live years. Year 1933 1934 1935 1936 1937 Dollars Paper 28,499 . 15,234 . 769,433 ..... . Tons 618 214 9,809 30,276 21,777 3,365,33e .......... . 2,467,538 . . . . . . . . . . $ $ $ $ $ Average value Per Ton $ 46 $ 70 $ 77 $109 $112. -From Agricul tu ral·l'o111 m1Tcial-lnd ustria.1 Lifr> - - - ' J ' - - Page 26 The COCONUT ,JOURNAJ, PRODUCER GAS ... (Continued from page 19) passes through the oil, the inlet being submerged in the liquid. Another type depends on the splashini; of the oil on to plates over which the oil and on maintaining the oil at the correct level. Coolers It is of the greatest importance that the gas should be cooled to as low a temperature as possible before entering the engine. Adequate cooling ensures that the gas delivered to the engine is at its maximum density, giving the greatest charge (by weight) for the cylinders. Some makers have provided special coolers for this purpose in the form of radiators or nests of pipes through which the gas passes and so placed that they are cooled by the air as the vehicle moves. A separate cooler is not always necessary if the scrubbers afford ample cooling, but it can usually be classed as highly desirable. Coolers should not require any attention apart from occasional inspection to see that no soot is accumulating. Fans Or Blowers With some producer equipment it is usual to ~tlp ply a fan or blower to be operated by hand in order to heat the furnace before starting. The fans are vny similar to those used on the blacksmith's forges and need no description. Other makers depend on the engine to supply the draught for starting the fire and .-;tart the engine on petrol. This method of starting COMPLIMENTS of LA NUEV A ECIJANA AGRICULTURAL AND INDUSTRIAL ASSOCIATION EXPORTER OF BURI BRAIDS SAX AXTOXlO, Xl'EVA ECl.J.\ * Josefina Fine * Josefina Studio Hat Store and and Branches Beauty Parlor * Kalayaan Studio * The Real Studio and Branches and Branches Telephone: 5-23-59 Telephone: 2-82-95 D. V. SURIO General Manager 197 Calle Libertad Pasay, Rizal AUGUST, 1941 will be dealth with later, but it should be noted here that on every producer which is not equipped with a fan provision should be made for the temporary connection of one for testing purposes. This can be done by fitting a tee-piece in the gas line just before the line reaches the mixing valve (see below). The branch of the tee should be extended to a convenient position and there closed with a blank flange. Such an arrangement would allow a fan to be connected, and in the event of starting difficulties, would enable the gas to be tested and the resistance in the gas line ascertained. Mixing Valves On a producer gas engine the mixing valve takes the place of the carburettor on the petrol engine. In essence, it consists of a "Y" piece with a butterfly valve in each branch and a throttle valve in the stem. The gas line coming from the cleaning system is connected to one branch is coupled to the air cleaner or left open to the air. By varying the position of the two butterfly valves the ratio of gas to air can be adjusted to the best position at any time, according to the performance of the engine. It is, therefore, uwal to couple the two valves together with levers and bring a control into the driver's cabin on a vehicle. The throttle val\'e is of the usual type and is connected by levers to the driver's cabin in just the same way as the accelerator is connected to the throttle of the carburettor in the ordinary vehicle. Where a converted vehicle is to be started on petrol it is also necessary to retain the entire petrol system. This means that an inlet system consisting of the induction pipe, carburettor and mixing valve have to be re-arranged so that either gas or petrol can be admitted as necessary, and although the location of the parts may vary considerably it is the equivalent of adding a third to the Y-piece and connecting the carburettor to this branch. Starting Up With Blowers Jn a producer plant fitted with a blowt!r the starting-up process consists of igniting the fuel bed with a kerosene wick or similar arrangement, and then operating the blower until the producer has reached a temperature high enough to make gas. Care must be taken to see that all the valves at the mixing box are closed, so that the blower does not merely draw air back from the engine. When the gas is ready the mixing valves are set to correct positions and the engine sta1ied 111 exactly the same way as a petrol vehicle. Starting On Petrol On vehicles without a blower the engine is started on petrol, with all mixing valves closed and the producer ignited. With the engine running at a fair speed the gas valved is opened a little to set up a draught in the furnace. The temperature of the furnace rises; gradually gas is produced and the controls are manipulated so that the engine gets more and more gas and less petrol until the petrol thottle can be closed right off and the vehicle driven on gas. 'I'he process of C'hanging from petrol to gas requires a little practice, but after a time it should be found possible to make the change with the vehicle in motion. Once the vehicle is settled down on gas the petrol is turned off and gas is used entirely. It should be noted that the tap for turning off the petrol should be placed in a convenient position between the petrol pump and the carburettor, and that it is advisable to have the petrol pump overhauled at the time of conversion of the vehicle. Most users prefer to get their vehicle running on gas before they start the water feed to the producer, and this may be considered good practice, as it facilitates raising the furnace temperature. Operation Once the plant is changed over to producer gas, the driving of the vehicle is in every way similar to that of a petrol vehicle. Plants have been built to give a range up to 200 miles on one filling of fuel, depending on the fuel, but an average figure of 100 miles between fuel recharging is more usual. The plant in most cases has to be stopped for refuelling, and in opening up the hot furnace some care is needed, as the hopper is likely to be filled with gas, which promptly burns. The resulting flames are too short-lived to be dangerous, but can be very unpleasant. Maintenance The routine maintenance of the ordinary petrol vehicle has been reduced to an absolute minimum in recent years. A little more trouble has to be take;i in attending to a producer gas vehicle, but this is only to be expected and the success of any vehicle depends to a large extent on the care exercised by the user. The important points are set out below:1. The furnace must be regularly cleaned· out to remove all clinker or ash. 2. The scrubbers must be emptied and inspected. 8. Filter pads must be washed as required. 4. Oil scrubbers must be recharged. 5. All joints in the gas line must be kept absolutely air tight, so that air enters the system only to two points, i.e., at the air inlet to the furnace and at the mixing valve. The importance of this point cannot be over-stressed, and supplies of spare jointing material should alwas be on hand. 6. Supplies of clean water for cooling the tuyere and feeding to the producer must be maintained. 7. The usual maintenance required for a petrol vehicle should be given to a producer gas vehicle. The time involved in the additional work required to maintain a producer gas vehicle will vary with the fuel quality and the capacity of the scrubbers. A reasonable estimate for a vehicle working a full day would be about ten minutes each day and an extra thirty minutes once a week. These figures should not be exceeded with plants at present available. Pag{' 27 Choice Of Fuel Producer gas users are advised to be careful in the selection of the fuel for their units. The idea that "anything will do" is a misguided one and often leads to trouble. Experiments indicate that any sound timber can be successfully converted into charcoal, but hardwoods are probably the best. The important points are as follows:1. The charcoal should be free from any unburnt portions of wood or bark. 2. The charcoal should be evenly graded with a minimum of fines. (Suggested size, 1/2 in. to 1-1/2 in. mesh.) 3. A charcoal with good mechanical strenght and giving a metallic ring is preferable. 4. The greatest care should be taken to avoid sand or earth impurities in the fuel, as these impurities form clinker in the furnaces. Clinker presents by far the greatest problem to be overcome in the furnace, and it can be largely avoided by using only fuel free from the above impurities. Suitability Of Vehicles Any petrol engine can be converted to run on producer gas. Whether the conversion will be satisfactory or not depends to a large extent on the power reserve of the engine in regard to the work performed on petrol. A definite loss of power is unavoidable, and with engines of low compression ratio, this may be as high as 40 per cent. The loss may be reduced to about 20 per cent by increasing the compression ratio, to 7 to 1, or the power loss can in some cases be completely overcome by boring out the cylinders and fitting larger pistons. For. vehicle work the power loss is often not of vital importance, as modern vehicles have fairly high compression ratios and ample power reserves. The only effects of the conversion are: A reduction in s.peed on hilhi, in acceleration, and possibly in abFo: . :_ .. ;:~ The COCONUT JOURNAL lute m1x1mum speed. It follows that many vehicles could be converted to producer gas without seriously reducing their utility. On account of the necessity of maintaining a high furnace temperat_ure, it may generally be stated that the larger the vehicle and the more uniform the load on the engine the better the results will be us under this circumstances a more effective current of air passes through the producer. Ignition System The ignition system of petrol vehicles is quite suitable for producer gas, except that arrangements must be made to increase the angle of advance of the spark when running on producer gas. Angles of advance up to 45 deg. before top dead centre have been found satisfactory, but the correct position varies with each engine and must be found by adjustment in each case. Precautions All users of producer gas should remember that the gas contains carbon monoxide, which is highly poisonous and difficult to detect. There is no fear of the gas harming anyone during the normal running of a producer gas vehicle, as there is never a positive pressure in the gas line. Nevertheles.'l, care should be exercised whenever the system is opened up for cleaning of scrubbers, &c., t-0 avoid breathing the gas. When an equipment is provided with a blower, the greatest care should be exercised to see that the blower is not operated in a closed room or shed, ~ntl that wherever it is operated the outlet or exhaust from the fan is not inhaled. The handle of the blower should always be removed so that the uninitiated cannot do any harm either to themselves or others.Reprinted fro-m New Guinea Agric11/t11ral Guzrft1· (Februnry, 1941) * COMPLIJJ1IENTS * of 11 ... - I 11 We sell all kinds of I 11 Main Office . i, T ABLERIA SARIA YA I Modern Furniture I I' Rizal St., Sariaya, I J,t:MBEH. DEALER ,1 at low price IL Tayabas, P. I. I LUMBER AND FURNITURE Batibot Chair Agent ,j STORE * ., Sariaya, Tayabas, Philippines * Page 28 AL"GUST, 1941 PRESIDENT QUEZON AND ... (Continued from page 7) tinue giving us the money of the oil excise tax but without the provision that the money may be used to help the cownut industry or the coconut producers. If we do something now that would make Congress believe that we are not complying with its present injunction, Congress may not make the proposed change. So I counsel you to be patient; wait for one year more, for I think Congress will listen to our request to use the money from the tax on coconut oil to help the coconut industry and that from the excise tax on sugar for the sugar industry. We cannot violate the condition imposed by Congress because we have promised to comply with it." In his own province, Tayabas, President Quezon once found himself in the course of a week.: end visit, face to face with coconut planters at the provincial capital in Lucena. The people were insistent to know why the excise tax on coconut oil i!l not being abolished and like the good people of Oriental l\Iisamis they blamed the tax for the poor prospects of the industry. So President Quezon had to do some explanation. The President elaborated on his reply in this self-explanatory and self-convincing manner: Low Prices of Copra not due to excise tax "You must understand that if I have not done anything so far to improve the price of copra or to remove the excise tax, it is because two years ago the prices of copra rose up at the very time when the excise tax was already in force. Within the first year after Congress had passed the tax on coconut oil the prices of our copra surpassed those which h~d prevailed during the World War. You cannot deny, therefore, that the excise tax is not to blame for the present low copra prices, for if i;mch were true those prices would have never risen anymore. "The price of any of our export commodities depends upon the foreign market. Copra, as you all know, is sold in the United States, not here. Its price i!l set by the purchasing country and by other oil-selling competitors; it is not fixed by the Commonwealth Government. If our copra were only sold and consumed here we could then name our own prices. Since it is not sold here, can we then 8 ay to our foreign buyers that this or that should he the price for our copra? Or can we tell them that we will not sell them our product if they cannot meet our price demands? What shall we do if nobody pays the price we ask? "It would have been also possible for Congre~s. without anybody being able to stop it, to decree that the excise tax collections should accrue to the Treasury of the United States. However, I made the request that collections from the tax be r~turn ed to the Philippines. Congress granted this request, but it placed a proviso that upon return of the collections to us the money be not used to benefit the coconut planters; and should that proviso be violated, the refund of the excise tax collections would be stopped immediately. If I had not agreed to it, even under such restriction, the tax money would have remained in the United States. The power to decide the matter rested with them, not with us. And if I did agree to the refund - as it is being refunded today -'- even under a restrictive condition, is it not anyway for the welfare of the Philippines? The welfare of the Philippines, let me tell you, is also the welfare of Tayabas; hence, I believe I made no mistake in my decision regarding the excise tax refund. Study posibilities of Coconut "What we Filipinos should do is study the different possibilities of the coconut. We may even learn to supplement our rice with coconut products. The coconut, after all, is more nutritious thari rice. When I was a young boy, we ate coconuts whenever we did not have any rice. Let us again make the bukayo (coconut sweetmeat) because it is very delicious. Also the matamis sa bao (coconut jelly). When I was a young student, I always asked money from my mother with which to buy matamis sa bao from the Chinese store near the· school. The trouble with us Filipinos is that we forget what is truly our own. We have so many needs and used for our coconut. Why don't we rediscover them so as to increase not only our export but also our local consumption of coconuts? The National Development Company has several expert chemists studying the different uses of the coconut; more important, however, is to have our coconuf planters take full initiative on this matter. Advice to Coconut Planters "One of our defects is that when a proprietor has two hundred, four hundred, or a thousand co• conut trees, he no longer personally harvests his nuts or converts them into copra. Another man does the work for him; hence his income is lessened. In the United States the landowner farms his own land; here in our country many of our landowners, spend their time in the town or in the cockpit. "If a planter with a thousand coconut trees works his own grove, he. will make bigger profits from his copra sales. That is the. first secret of making a living; the more work we do the great~r our profit. It is imperative, of course, that we work. If our land is small it is needless to hire a laborer because we can do it by ourself; if our land is big, however, then it is the time to call in hired help. We should strive to work, we should forget foolish pleasures and stop wasting. time in town fiestas." The Fight for the excise tax money At the joint convention of coconut a·nd abaca producers on February 22, 193Whe President recounted how he fought to get the proceeds from Page :.!9 the coconut oil excise tax for the Philippines. He recounted thus: "The Government has done everything possible for the copra industry and for all the other industries as well. After the tax had been imposed, we were faced with this question: Should we take advantage of it or not? Had I been away from the United States at the time, it would have been .extremely difficult to get the money.. In the fir.st place, American taxpayers complamed about it. The case was taken to court and it reached the Supreme Court of the United States. O~ .my arrival in New York a delegation that was waitmg for me there propos~d a compromise; namely, inducing the Philippines to accept a percentage of the funds upon which they would withdraw the case. I told them that if we are entitled to receive the money, we would demand every centavo of it. Otherwise we would not ask for it at all. After the Supreme Court had decided the case, the United States Treasurer decided not to turn the collections over to the Philippine Government. Had I not been in Washington then, it would have been very hard foi: our Government to get the money. As a matter or facts the money could not be disbursed while the case 'was pending, and after so many millions of pesos were collected the Federal Treasury resented turning the sums over to the Philippine Government. The total amount which had accumulated was eighty million pesos. They proposed to keep the money there till Congress should meet, have a report submitted to said body, and later perhaps ask Congress to legislate- on the manner of spending the money. "I know that, with the influence in Congress of those who succeeded in securing the enactment of the tax, they realize only too well what they were up to. They tried to regulate the sums to be disbursed out of the eighty million pesos - that is, to have it paid out little by little. We had not then come to the point of being able to make out a definite program regarding the use of that fund. I had to take the matter up with the Secretary of State, the Secretary of War, and the Secretary of the Treasury. It was only after I had signed a written promise to the effect that no portion of the money would be disbursed to aid the copra industry that I was able to have the money turned over to ~e. You see that not only the Philippine Government but I personally had to enter into a solemn promise under the law." In rep-ly to the charge that the excise tax has reduced the price of copra, President Quezon declared that it is the present oversupply of copra in the world markets that is responsible for the situation. The buyers have not increased in number and yet the sellers have increased their products. Non-edible Coconut oil exempted from tax Upon the insistent request of coconut planters the President recommended to Washington Page 30 The COCONUT JOURNAi, authorities the repeal of the coconut oil excise tax act, and fortunately enough his appeal was heard and the Senate Committee recommended the exemption from payment of the excise tax of coconut oil used for nonedible purposes. But even the President himself doubts the benefits to· be derived from this matter. As he told his hearers at the farewell banquet given in honor of Assemblyman Quintin Paredes at the Malacanan Palace recreation hall on May 22, 1939. "It must be borne in mind that the tax will not be eliminated completely. It will be eliminated only in those cases where coconut oil will be used for nonedible purposes. Now, can you be sure that they will pay one price for coconut oil that will be used for butter, and another price for that which will be used in the manufacture of soap? Will there not be just one price for all the copra that may be bought? Which will be that prices? Will it be the difference between the price of copra which pays tax and the price of copra without tax Or, will it be such difference, but bearing in mind the proportion between the copra utilized for nonedible purposes and the copra for aff other purposes? That, however, involves a tremendous mathematical operation and I am afraid that, to save themselves from such bother, the manufacturer will simply pocket the difference in prices. In other words, the benefit to be derived from the elimination of this tax, instead of aiding the producers of copra, will only go to the pocket of the purchaser in the United States. The benefit may go to the soap distributor in America and, in turn to the consumer; but I am not sure that it will 'be of any good to the producers in the Philippines." Amendment to Tydings-McDuffie Act Almost at the same time, in his desire to correct the objecti0'1able features in the Tydings-McDuffie act related to the trade relations between the United States and the Philippines, President Roosevelt created the Joint Preparatory Committee that made a study on the matter. As a result of the studies the committee recommended the amendment of the Tydings-McDuffie law so that our exports, including copra and coconut oil, would be exempted from paying export taxes in the United States, reasoning that if this were not done, it would be impossible to sell these products in America at a profit and to compete with similar products in other markets; thus the coconut industry would face ruin, resulting in the impoverishment of the Filipinos depending upon it for their living. The amendments also make the proceeds from the coconut oil excise tax now available for economic readjustments even in the coconut-producing provinces. So the Congress passed a law amending the Tydings-McDuffie act on this matter which, after its approval by the Filipino people in the plebiscite of October 24, 1939, took effect. Under this act coconut oil enters the United States on an annual duty-free quota. AUGUST, 19-H Advantage of excise tax on coconut oil That the excise tax on coconut oil has proved advantageous to the Philippines can be shown mathematically. Up to May 10, 1938, the fund had an unappropriated current surplus of P88,538,100, and this sum the President recommended to be spent to carry out his four-years' public works program. Not only that, but the proceedes have been used for other purposes. Under Commonwealth Act No. 369, P4,800,000 was appropriated for the purchase of bonds, while Commonwealth Act No. 403 authorized the sum of Pl0,000,000 to constitute a revolving fund to be invested in loans to provinces, municipalities, and cities for the construction of permanent public markets, slaughterhouses, and water works. Legislation to Combat pests President Quezon, desirous of helping the coconut industry, urged the first National Assembly the immediate consideration of Bill No. 1913 appropriating Pl00,000 to finance the campaign of controlling budrot and other coconut pests. Because he knew that the amount was necessary in carrying on the drive against coconut pests he certified to the Assembly the importance and urgency of this bill in two separate messages - one on September 2:~ and the other on October 7, 1936 - since the legislative body was about to close its sessions. Complying with the request of President Quezon the National Assembly also acted favorably on the money-measure to combat budrots. The bill became Commonwealth Act No. 110 on October 30, 1936. Act Providing for Copra Warehouses It is a fact that for some years now the price of copra has been very low and as a result it has di!-lcouraged many planters who have either neglected and abandoned their plantations or have turned their attention to other more profitable industries. When copra prices are low - and not even enough to meet the expenses of manufacturing it - tht producers prefers to store their product until better prices come. In such cases the big volume of stock that is acrnmulated becomes a problem. Usuall~· storage space is lacking. So to remedy the situation the National Assembly considered hill No. 734, which President Quezon approved on October 14, 19:36, and subsequently became Commonwealth Ad No. 50. The act directs the Secretary of Agriculture and Commeree, the Philippine National Bank, and the National Development Company to establish, operate, and maintain warehouses for copra, the same to be deposited at reasonable rates of fees. Undoubtedly, this act has proved beneficial to the thousands of coconut planters in the Philippines. Coconut Mission Deeply concerned with the welfare of the eol'OllUt industry and in his desire to ameliorate thP eondition of the planters, President Quezon sent a message to the second National Assmbly on May 17, rn:rn, urging the Assembly to consider the necessity of sending a member of that body on a mission to undertake a study and investigation abroad of the best means of promoting the coconut industry in the country. Heeding his request, the Assembly delegated the Honorable Maximo M. Kalaw to undertake the task. Measures to help Planters In realizing the present economic situation of coconut planters which deserves the immediate attention, the government has taken the necessary steps to alleviate their condition. It has created the National Economic Council and other agencies of the government in order to safeguard their interests. They are now "making a study to determine the degree by which prices for coconut products in the Philippines are being depressed because of speculatory activities of dealers and brokers of this commodity in the open markets of the world." Other studies are under way, as the plan of establishing a single sales agency so as to eliminate objectionable speculatory transactions, the question of excessive transportation rates, the possibility of improving the quality of the products, and the introduction of greater efficiency in the production. Responsible for the new lease on life of the coconut industry is the National Coconut Corporation which was created by the National Assembly upon the initiative of President Quezon who has had the welfare and interest of the coconut planters at heart. The corporation aims to extend help, financially and morally, to the coconut growers, find new markets and revitalize the present ones, and discover new and more uses of the different by-products of coconut. President Admonishes Coconut Planters "There was a time when the Philippine coconut industry was more important, incomparably so, than the sugar industry. More provinces and more people depended on this industry than on the sugar industry, and yet you have not made yourselves perfectly organized to cope with situations that may be detrimental to the coconut industry. Consider the sugar people - they are well organized, and when they start an agitation you think the whole world is going down. They have been organized for many years. "It is perfectly right for you people to be organized. You will be able to exert your in· fluence better not only here but also in th£; United States. You can present your grievances in the proper way, you can present them in public, and you will be immediately heard ... "Organize yourselves, study your problems and acquaint the peoples of America and the Philippines with a few plain facts; firstly, that the coconut industry, as one of the main industries in the Philippines, affects more people than those of the sugar industry: secondly, that our coconut oil is not really competing with any industry in the United States in such a way as to harm it. I repeat, you have to educate the American people on that". Page 31 COCONUT DIPOHTS INTO THE U. S.-1940 (In tons) 1 Ton=2,240 lbs. Seeds, Nuts & Kernels 1938 Castor seeds . 50,924 Copra . 229,116 Flax seeds . 384,000 Sesame seeds . 3,044 Poppy seeds 4,308 Palm kernels . 10,866 Rape seeds 4,085 Other oil seeds . 26,968 Total 713,311 L'1PORTS INTO U.S. Oil Equivalent of Seeds, Nuts, Kernels, Tallow, Oils, Fats, Etc. (In Tons)-1 Ton=2,240 lbs. 1938 1939 Chinese wood oil 47 ,973 :J5,J4;j Perilla oil 14.205 22,893 Coconut oil 162,473 150,357 Maize oil 9,929 6,08;j Linseed oil 53 22 Olive oil (edible) 31,736 28,067 Olive oil (Inedible) 12,410 17,625 Palm Oil 121,125 127,866 Palm kernel oil l,147 1,000 Peanut oil 6,942 1,687 Rapeseed oi! 2,645 4,133 Soya bean oil 1,900 1,843 Sunflower seed oil 36 85 Cotton oil 34,600 13,147 Other vegetable oil 32,473 34,772 Whale oil 9,843 9,033 Code & Cod liver oil 27. 723 29,433 Other fish oil 230 433 Tallow 550 670 Beef & Hog fats & Wool grca~e 800 1,860 Total 817,572 n8,347 1939 72,593 191,986 400,750 5,464 2,593 4,518 3,366 61,844 743,114 1940 43,325 5,065 165,483 190 5 22,357 13,221 100,463 1,392 :;,767 2,165 5,37fJ 24,909 9,936 8,688 320 611 1,284 747,l;j4 SH IP M J<~ N TS Oil Equivalent of Seeds, Nuts, Kernels, Tallow, Oil, Fats, Etc. 1940 1938 1939 106,155 21,388 30,489 374,718 144,343 120,951 295,636 115,200 120,225 6,517 1,370 2,459 2,708 2,068 1,245 13,273 4,890 2,033 2,240 1,430 1,178 50,236 8,090 18,553 751,483 298,779 297,133 FOREIGN COUNTRIES L'1PORTS Oil Equivalent of Seeds, Nuts, Kernel•, Tallow, Oils, Fats, Etc. (In Tons)-1 Ton=Z,240 lbs. 1937 1938 1939 United Kingdom 932,736 1.046,018 1.113,786 U.S. A. 817,572 788,347 France 610,631 il56,928 Holland 390,264 395,7i8 Germany. 995,343 1,061,562 606,751 Italy 228,894 163,795 93,176 Belgium 126,027 141,073 141,448 Denmark 155,659 135,549 Sweden 90,734 112,467 Japan 164,739 165, 77;; 154.~54 not 1940 44,585 173,072 88,691 2,933 1,300 5,973 784 15,071 332,409 1940 747.154 94,018 79,071 av.Lilablc 15,928 80,094 Note: Compiled from Fats and Oils Re•·ie .. ·-U. S. Domeatic Commerce 1939 r Htrnk Fehr & Company Review of the oil"eed, oil, oil cake ~ Holland Hou•e, Bury Street, 0 It' markets for 1940 l London, E. C. 3 By RICARDO B. BONILLA National Coc1J11.ut Corporations COPitA (In Tons) 1 Ton=2,240 lbs. Sangir Pad dang Other Dutch Menado & East Indies Straits Malabar Year Manila Java Macassar Gorontalo Ports Settlements Ceylon Coast Total 1930 166,780 7,364 76,843 134,832 156,335 181,319 89,410 None 812,88:.1 1931 178,043 3,848 72,982 125,685 157,202 176,460 88,800 843,920 1932 133,867 62,620 72,605 142,014 202,295 183,900 46,625 843,926 1933 302,492 14,490 151,072 124,188 196,420 192,600 64,500 1,(145,762 1934 346,156 3,747 147,801 111,788 153,401 167,242 105,681 1,035,816 1935 252,883 3,708 185,433 104,75:1 189,562 180,761 48,661 965,761 1936 259,892 4,251 184,789 118,203 199,963 157,319 51,813 976,230 1937 232,511 7,201 185,703 100,799 200,541 165,030 67,650 959,435 342,631 3,244 228,434 104,834 216,855 166,177 75,265 1,137,440 1939 395,460 200 212,756 113,972 201,578 157,429 52,920 1,134,315 1940 327,168 3,139 93,606 48,610 120,916 93,142 78,284 764,865 Page 32 STATISTICS WORLD PRODUCTION OF COCONUT OIL In Tons 1 Ton = 2,240 lbs. Production India . . . . . . Strait Settlements Ceylon .. Java . . . . Philippines . U.S. A .... Great Brita in France .. Germany . Holland . Denmark Italy . Sweden . U.S. A . . . . U.S. A .. Great Britain Holland . Germany Denmark Norway . France Sweden . Ceylon . . . . . Straits Settlernen t Philippines . . . South Sea Islands D. E. I. .. East Africa . . . U.S. A .. Holland . Denmark . Sweden . . . . Norway . Germany .. 1940 1939 9,282 70,027 61,897 29,825 62,562 14,140 8,965 175,723 164,482 173,072 120,951 95,369 19,769 88,389 94,360 21,450 47,565 6,178 47,137 9,534 16,950 LARD 752,678 631,241 l\'IARGARINE 142,970 COPRA 78,284 93,142 327,168 75,000 266,271 35,000 HL'TTER 807,143 134,285 215,000 75,000 375,000 80,000 57,000 35,000 55,000 52,920 157,429 395,460 120,000 528,506 53,000 784,553 135,000 185,000 78,000 31.000 400,000 1938 13,161 49,499 75,834 19,851 161,938 144,343 71,803 88,578 172,098 33,476 47 ,443 18,481 25,175 518,900 171,260 210,236 70,866 390,748 79,921 54,232 32,538 58,800 75,265 166,177 342,631 150,000 553,367 60,000 798,335 130,000 190,000 80,000 32,000 425,000 TOTAi, IMPOHTS OJ<' COPHA INTO THE FOLLOWING COUNTRIES United Kingdom Holland . Italy . . France . Denmark lT. S. A .. Germany . 1937 79,398 46,379 23,874 135,437 74,292 240,067 206,240 1938 113,941 53,137 29,336 140,600 75,307 229,116 273,173 1939 151,380 75,513 15,134 (Jun/July) 140,300 74,821 191,986 149,778 MONTHLY SHIPMENTS 01.<~ COPHA FHO!U THE PHIUPPINE ISLANDS January . . February . March . April . May . June . July . August . September October . November December (In Tomi) 1 Ton=2,240 lbs. 1938 16,375 28,937 22,204 23,472 19,972 31,319 28,644 40,192 31,828 44,998 21,842 32,848 342,631 1939 22,358 21,790 45,053 38,206 31.737 32,183 37,655 49,866 26,618 28,094 32,867 29,033 395,460 UJ.10 37,463 28,607 49,635 23,642 29,351 17,170 17,565 13,054 18,611 40,118 40,294 11,658 327,168 Copra . . . . . • Cottonseed . • Palm kernels . Ground nuts • Linseed ••.. Rapeseed . . • Soya beans .. . Sesanum . . . . . Olives . . . . Hempseed .. . Sunflower .. . Castor seed . Other seeds unclassified . FORECAST OF 1941 Metric Ton = 2,240 lbs. 1,050,000 11,170,000 701,000 5,423,600 3,977,700 1,300,000 6,908,500 465,000 3,200,000 610,000 2,150,000 371,000 335,000 617,400 1,729,000 311,800 1,395,700 1,006,500 291,200 754,400 i68,800 750,000 16,000 471,600 140,700 60,000 305,000 Groundnut Oil 305,000 Coconut Oil 585,000 Palm Oil 50,000 Maize Oil 40,000 Wood Oil 753,000 Lard 398,000 Tallow 350,000 Whale Total • . • • • 37,661,800 7,713,600 2 2,521,000= - - - - - 10,234,600 TOTAL IMPORTS OF COPRA INTO THE FOLLOWING COUNTRIES 1937 1938 United Kingdom Holland . . . . 79,398 113,941 Italy . . . . . 46,379 53,137 23,874 29,336 France . . . . . Denmark . . . . , 135,437 140,600 74,292 75,307 U. S. A . . . . . 240,067 229,116 Germany . . . . . 206,240 273,173 MAIN WORLD CORPS-1941 OIL SEEDS (In Tons) 1 Ton=2,240 lbs. Argentine . . . . . . . . . . . . . . India . . . . . . . . . U.S. A . . . . . . . . . . . . . . Canada . . . . . . . . . . . . Brazil . . . . . . . . . . . . Spain . . . . . . . . . . . . . . Italy . . . . . . . Greece . . . . . . . Philippines . Other countries . . . Othn S. A. countries . British West Africa . . . French West Africa . . . . . . . Other \Vest African possessions . . Egypt . . . . . . . . . . . . . . . Ceylon . . . . . . . . . . . . . . East African Po••· . . . . . . . . . Straits Set.tlements . . . . . . . . Java and D. E. I. . . . . . . . . South Sen Islands . . . . . . Chinu & Manchukuo . . . . . . . . Japan . . . . . . . . . . . . . Otiler Asintic countries . . . . . . . RU8SiJL • • • • • • • • • • . • • • • • 1939 151,380 75,513 15,134 (Jan/July) 140,300 74,821 191,986 149,778 1,905,000 tons 8,070,000 .. 8,676,100 79, 700 980,000 1,750,000 800,000 300,000 250,000 1,025,000 285,000 670,000 695,000 115,000 720,000 60,000 260,000 161,000 750,000 J00,000 3,980,000 510,000 716,000 4,890,000 Total . . . . . . . . . . . . . . . 37,661,000 Amount of th>1t purt of th1• crop which would normally be crushed -200,00. MAIN WORLD CROPS-1941 OILS AND FATS (In Tons) 1 Ton=2,UO lbs. Argentine . . . • . . . . . . . . India • • . . . . . . . . . . . . . China & Manchukuo . . . . . . . . . U. S. A . . • . . . . . . . . . Brazil & Uruguay . . . . . . . . . Australia . . . . . Jnpnn • . . . . . . . . . . . . Ceylon . . . . . . . . . . . . Malnyu . . . . . . . . . . . . . Philippines . . . . . . . . . . . Javn & D. E. I. . . . . . . . . . . Spain • . . • . . . . . . • . • . Egypt . . . . . . . . . . . . Other countries . . . . . . . . . . . Italy • . . . . . . . . . . . . . . . British West Africa . . . . . . . . . French West Africa . . . . . . . . . Other We&t African Poss. Territories Russia . . . . . • . . . . • . . . Arctic & Antartic . . . Totnl . . . . . • 40,000 tons 24,000 .. 146,000 1,800,000 5,000 50,000 51,000 30,000 140,000 170,000 250,000 300.000 55,000 60,000 200,000 170,000 40,000 85,000 500,000 350,000 2,521,000 Page 88 • C ocv1111t lc!/i~lt1tio11 frv111 tbe Cvcot111t Products Board to tlJe 'Natio11al Conm11t Corporation. A SURVEY OF LEGISLATION AFFECTING THE COCONUT INDUSTRY OF THE PHILIPPINES By MARIA ABALAJON No Legislation on Coconut During Spanish Regime During the Spanish regime in the Islands, the coconut industry had not assumed so important a role as to be the subject of monopoly, as was the tobacco industry, by the Royal Government of Spain. Although the cop1~a production and exportation of the Philippines contributed in an appreciable measure to the coffers of the Spanish Government, there was no particular legislation on the coconut industry. the establishment of factories for the extraction of coconut oil, or for other industries derived from the coconut, or for the utilization of their waste products; and ( 3) to organize corporations or cooperative societies among the owners of the coconut plantations in order to facilitate the accomplishment of the mentioned objectives. To attract coconut planters and producers the Coconut Products Board was empowered to guarantee However, upon the implantation of American sovereignty in the P h i 1 i p pines in 1899, the conditions for copra production and exportation changed. The wide avenues of the vast American markets were opened to our coconut producers and planters. The demand for our copra and coconut Governor Tomas Confesor with the NCC Directors. Leh to right, Director Ramon Soriano, General Manager Rodriguez, Governor Confesor and Director Benito Razon. to the concern constructing a copra drier or factory for the extraction of coconut oil, or for the utilization of coconut by-products, the payment of the value of it;; plant and equipment, and interest thereon out of the fund to be created by a deduction from the net profits of the tranoil exportation increased by leaps and bounds anfJ reached its peak during the entire period of the First World War. During this time the Philippines was suplying the whole world with one-fourth of its copra consumption. The Coconut Products Board But although we were heavy producers of copra, we were not selling the best quality. Ceylon and India were producing copra of better quality. To remedy this deficiency, the now defunct Philippine Legislature saw for the first time the need of legislation in that direction. Act No. 2598, passed on Feb. 4, 1916, was the first major legislation affecting the coconut industry. Its comprehensive objective was to encourage the improvement of coconut products, both in quality and in variety. The Act established the Coconut Products Board composed of the Governor General, the Speaker of the Philippine Assembly, or their authorized representatives, and one member appointed by the Governor General with the advice and consent of the Upper House of the Philippine Legislature. The primary duties of the Board were threefold: ( 1) to improve production of copra by aiding in the establishment of copra driers in suitable places and bringing the producers in touch with the consumers or exporters in order to enable ·the former to determine the quality of copra in demand in the market; (2) to promote and aid in sactions of the drier or factory to be determined by the Board, which fund would be sufficient to liquidate the capital invested therein in 20 years or less counting from the date on which su<'h drier or factory has begun operation, and to provid1· for the proper annual interest thereon. Any surplus in the fund would be distributed proportionately among the owners of the land and coconut,.-;, with whom the concern operating tr.e drier or factory had entnPd into any contract, provided, that such guarant.et' would be granted only on condition that the drier or factory would finally become the property of the owners of the coconut land. The board was also empowered to purchase, from a corporation or corporations composed of owners of land planted in coconut trees, bonds issued upon thl' security of the property of said corporation, or upon the security of the first mortgages upon the lands or part of the lands of individual owners who a re sto<"kholders in the said corporation, or upon both Kecuritit-s mentioned; and to make loans secured by first mortgage to a corporation or corporations owning and operating a drier or factory already e:itablished for additiorni and improvements thE:>reto. However, bl'fore such purchase of bonds could be made, the Coconut Products Board must exact from the Corporntim1. certain conditions which among otha.~ nre: (a) that the amount of bonds issued by the corporation ::ihall not exceed 60 ';{, of the value of the property offorcd AUGUST, 1941 as security; (b) that before such purchase be made such corporation should have contracts with the owners to deliver and sell to the corporation all the coconuts produced on their land or copra made from said nuts, and to convey to the corporation such rights of way that the corporation might deem necessary for roads and railroads connecting the drier or factory with the field; (c) that the majority of the owners of said lands should be stockholders in the corporation which should provide for a sinking fund to be deposited with the Insular Treasury for the retirement of the bonds; and that the payment for the retirement of the bonds would have preference over any dividends or profits of the stockholders and would be sufficient for the total extinction of the bond debt within a period not exceeding 20 years; and that until all money sufficient to pay the same has been safely deposited for the purpose with the Insular Treasurer, no dividend in excess of 10 % per annum would be paid the stock of such corporation, and the net earnings, over and above said dividends, should be used in betternients of. additions, or improvements to the property offered as security, or in the redemption of the bonds of such corporation. It was further provided that the Board should not make any loan except upon first mortgage on the drier or factory and the land or part of the land of the corporation, or both, and only for a sum not to exceed 60% of the value of the property offered as security, and that the corporation would provide for the payment of an annual installment 011 said loa.t1, such annual installments to have preference over any dividends or profits of the stockholders and to be Student spinners at work in the Marinduque sufficient to provide for the total extinction of the debt within a term not exceeding 20 years. In line with the proper discharge of its powers, the Board was authorized among other things to enter into negotiations with, receive propositions from, and make contracts on behalf of the corporation, taking advantage of the benefits of the act, with the constructing firms or concerns engaged in the establishment of coconut driers or factories for the extraction of coconut oil, or for the utilization of the waste products of said driers or factories ; to demand that the minimum production of coconuts necessary for the sound economic operation of the drier or factory be guaranteed; to establish rules and conditions under which it would furnish aid to the owners of coconut driers or factories for the extraction of coconut oil, or for the utilization of the waste products of said factories; to make proper provision for the training of technical supervisors, employees, and laborers, who may take part in the work of a drier or factory receiving the benefits of the Act. The Board exercised supervision over the driers or factories constructed or operated under the Act. But this supervision terminated when the capital and interest invested by the government had been paid off and the government thereby completely disengaged itself from the obligation contracted in connection with the guarantee granted by it. In the particular case of the purchase of bonds or of a loan granted to the corporations taking advantage of the benefits of the Act, the Board had the right to appoint a person who would have a direct hand over the operation of the drier or factory and whose compensation as fixed by the Governor General were paid by the corporation concerned. The bonds of any drier or factory were subject to examination by the Bureau of Audits. It was the duty of the Board to report to the legislature at eve1·y session the result of its work, setting forth among other things, the names of the driers or factories which received government aid, the sum invested for each, the sum received for the payment of the capital and the sum owing therefor, the interest paid and owing, and the losses or profits of each drier or factory. Coconut School of the N.C.C. The Act provided that except by permission of the Board, no owner of land or of coconuts which had contracted for a drier or factory may, within 25 years from and after the date of the contract, give, sell, alienate or in any other manner dispose of, or engage his production of coconuts to any person other than the drier or factory, and likewise, no proprietor of land under contract with a drier 01· factory may, within 25 years from and after the date of the contract, give, sell or alienate, or in any other manner dispose of, or engage his property without the consent of the Coconut (Please turn to page 50) Page 35 e 11Je problems involved i11 tile marketing of copra and varirious coconut products. MARKETING COPRA AND OTHER COCONUT PRODUCTS By R. B. Bonilla COPRA, like most Philippine products, has its problems - among them the methods of production and marketing. Copra, or the dried meat of the coconut, is produced by means of artificial drying processes (smoked-copra) or by sun drying methods (sun drier). Smoked copra is generally produced in Tayabas, Laguna, Mindoro and in other neighboring provinces, while sun-dried copra is produced in the South, especially in Cebu. The total output or production annually in the Philippines is approximately 828,000 tons. Of that total it is estimated that around 392,665 metric tons of copra were milled to produce approximately 235,599 metric tons of coconut oil. Problems· of Marketing Copra is classified in the local market under four or five grades. Corriente which is the very common grade and considered by all copra dealers as the lowest grade: and the highest grade called resecada. It is generally estimated that the corriente contains moisture from 14.5 to 20 % or more while the resecada contains from 5 to 6 % moisture. In foreign markets, copra is classified into two grades: the Merchantable Manila and the Cebu Sundried. The buying and selling of copra in the Philippines is carried on with great disadvantage to coconut producers. Most of the coconut planters or growers sell thefr products to local merchants in their respective localities. In all coconut regions, agents, middlemen or brokers representing copra exporters in Manila and oil mills in the Islands handle the buying of copra from coconut planters. Inasmuch as the farmers can not obtain the best prices, due to lack of government trading centers, they are forced to sell their products at the best prices obtainable, which are offered by the local buyer or rural middleman. Hazards of Sales Through Middlemen Where buying agencies cannot be found, coconut producers of copra sell their produce to rural middlemen. In this kind of transaction coconut producers are usually the victims of usuriou.-; .. PHILIPPlnE mARKETlnG CHAnnELS ILIPPlnE COPRA • • Page 36 coconuT BROKERS BUYtnG RGEnTS OF OIL mlLLS BUYlnG Q6EnTS OF EXPORTERS coconuT BROKERS LOC~L OIL mlLLS LOCAL OFFICE OF __ _. unrrED STATES a-1----..i coconuT EXPORTERS FOREIGn OIL m1LlS ==::::_~==:::r----' un1TED FOREIGn STRTES Ano OIL mlLLS AUGUST, 1941 practices by the rural buyers, mostly Chinese that from 15 % to 25 % of the selling price is deducted from the producers for every 1,000 nuts or 100 kilos. In plants where there are no middlemen or rural buyers, big producers buy all the output of the small producers at a price lower than whnt they can get from the provincial exporters. Generally, all middlemen or small merchants engaged in buying copra and other coconut products sell their produce to the nearest provincial exporters. Sometimes, they ship all their produce directly to :Manila brokers or to local manufacturers of oil. Every copra broker gets around five centavos per picul for his service. In many instances, provincial brokers or exporters as well as wealthy producers ship their produce on consignment to Manila or Cebu commission merchants or brokers after having accumulated enough stock in their bodegas or warehouses. The broker or commission merchant finally disposes of it, either to a direct exporter or to a manufacturer. According to latest statistics, the volume of copra which arrived in Manila last June, 1941, amounted to 456,428 sacks or 27,375,680 kilos and the exports from Manila, Zamboanga, Cebu and Legaspi ports amounted to 9,789 tons. The amount of copra which arrived in Manila for the month of July were 482,630 sacks or 28,957,800 kilos. The National Produce Exchange One of the highest developments in modern commerce being introduced to the Philippines for the benefit of coconut growers is the trading exchange of local commodities. It was organized under a legislative act in 1936 and called the National Produce Exchange. Thru this organized marketing agency, coconut planters are now able to sell their coconut products, especially copra, for a better price instead of selling their produce to middlemen or local buyers at very low prices. Small coconut growers may take advantage of this National Exchange facilities by combining their products with those of other small planters and selling under a cooperative system. Cooperative associations amonlo!' coconut growers are very indispensable at present because only through them can planters obtain true prices and other marketing facilities such as small loans at lower rates of interest than those charged by coconut buyers or middlemen who give advance amounts on future crops, taking advantage of the planters' need of money for their daily main· tenance. The National Produce Exchange renders valuable service to the farmers. It gives reliable information regarding daily prices and conditions of the market. Agricultural products like copra can be sent to the exchange by consignment. It receives bills of lading or warehouse receipts, sells the planters' crop at the best price obtainable in the market and offers many other facilities of the Exchange. Oil With respect to oil, the channels of distribution are not so complicated and difficult as those of copra. The great bulk of coconut oil produced in the Philippines goes to the United States and a very small amount remains for local consumption. In most cases, local oil manufacturers deal directly with importers in the United States or thru representatives here in the Philippines. During the past eight months all of the shipments of coconut oil went to the United States with the exception of eighty nine (89) tons which went to Japan and China. In marketing the coconut oil, the standard unit in pound is used on the e. i. f. basis. Those manufacturers who have no connection abroad usually sell their produce thru local brokers to exporters who in turn ship it to foreign countries. Locally, the coconut oil is sold by kilo, extank or f.o.b. The small manufacturers of soap, butter, edible oil and other by-products. The oil is sold in drums or in barrels and delivered by the seller to the establish· ments or factories. Copra Cake Copra cake is traded similarly to oil. Factories sell their cakes direct to foreign importers by the ton c.i.f. in American and other European ports, Sometimes they sell their cakes thru local brokers to local exporters who ship the cake to foreign countries. The annual exports of copra cake amounts to 114,399,346 kilos valued at P4,250,146., but due to war conditions in Europe and in China, the present exports have declined a great deal, particularly the exports to Denmark, Germany, Norway, and other European countries. The United States is the only large potential market at present for Copra Cake and Meal. The Pacific Coast prices are from P32.50 to r33.50 per ton c.i.f. Dessicated Coconut Desicated Coconut is marketed directly to United States importers and the basis of transactiom is the pound. Dessicated coconut is packed in wooden boxes of different sizes as follows: (a) 18 1/2" by 18 1/2" x 23"; (b) 18 1/2" x 18 1/2" x 24" and (c) 18 1/2" x 18 1/2" x 18 1/2". Each case weighs 130 pounds not or 74 kilos gross. The transactions are negotiated directly by the exporters anrl importers cable communications or thru their representatives here in Manila. Sometimes foreign ships call on our ports from time to time to pick up whatever coconut products may have been accumulated. Page 87 The COCONUT ,JOURNAL BENITEZ, EXECUTtVE .•• (Cont.inued from page 10) a vast program of industrialization of the coconut and its by-products. T}:l.e nearly illimitable reservoir of industrial riche~ which the coconut tree holds in its various parts fill one with amezement at the potentialities which the industrialization of this plant holds. Scientition of coconut by-products he feels that it sh:ould lead the way in the» search of scientific methods whereby the potentialities of these byproducts will be more fully exploited. The best means of assuring this, he says, is by having a. strong and progressive scientific department which shall uncreasingly labor on the fic experimentation and research along this line be said to be. still in their swaddling clothes in the Philippines, yet we are already attaining surprising results. What scientific research will unlock in its advanced stages in future years may well be something to marvel at. He considers the ability of our coconut people to adopt themselves to a changing environment in their attitude towards the coconut a challenge to their educaton and progressiveness. "It is a real challenge to the capacity of our people," he says. "I say it is a real challenge to our capacity, because it constitu.tes a. trial of our ability to adjust ourselves to a changing environment. An essential pre-requisite to that utilization is training and experience. I believe whole heartedly in the value of scientific research and I believe that every encouragement should be given to scientists in their effort. CONRADO BENITEZ ... ( Contimted fro1n pa.ge 10) work given by the college of business. Because of his wide interest in educational matters that vitally concern the University of the Philippines, his name was mentioned when the Board of Regents was engaged in the task of selecting a successor of the late President Ignacio Villamar. He is well-known in Japan, China, and Canada for being twice delegate to the conferences of the Institute of Pacific ·Relations, and for being the executive sec re· tary and director of the institute in the Philippines. Dean Benitez was member of the Filipino participation in the Joint Preparatory Committee on Philippine Affairs appointed by President Franklin D. Roosevelt of the United States in consultation with President Quezon of the Philippines, for the purpose of studying the trade relations between the United States and the Philippines with a view to an orderly and adequate adjustment of the Philippine national economy. Once president of the Jose Rizal College, Dean Benitez was formerly partner in the Abad Santos and Benitez law firm at Manila, and alumni regent of the University of the Philippines. In the National Constitutional Convention he was chairman of the committee on industry, and member of the committees on public instruction, national defense, agricultural development, sponsorship, and selection of the resident commissioner under the Commonwealth. He was also member of the committee of. seven that drafted the Constitution. He is member of the Historical Research and Markers Committee, Board of Indeterminate Sentence, Pardon Board, Philippine Economic Association, and of the executive council of the Philippine Academy of Social SciencPs. He is editorial correspondent of the Pacific Aftnirs; Philippine representative of the World Alliance for International Friendship; secretary and director of the Philippine Coconut Planters' Association; adviser of the Internal ional Club, U.P.; and organizer of the International RPlations Club of the Philippines. scientific problems involved and reflect its progress in a continued expansion of its field of research. The Need for Ideals Speaking of. the objectives of the Corporation, he came to the imbject of ideals. It might appear at first blush that ideals have no relevant connection with the activities of the Corporation but Dr. Benitez quickly disabused the of any such Ideals cannot listene1· notion. be dissociated from every worthy enterprise, he said, and in the case of the National Coconut Corporation, the task entrusted to it is a noble one. That task, according to him, is a heavy responsibility in itself. "We who are entrusted to utilize various coconut by-products. And not only is the application of scientific methods valuable to the exploitation of the by-products of the coconut but also to improvement in our methods of coconut farmin." with the task of carrying out the work of the Corporation must never forget that the Corporation has a mission. That mission is the rehabilitation of the coconut industry. It is a trust resposed in us. Therefore we should make the realization of that mission our ideal." Because one of the main objectives of the National Coconut Corporation is the greater utiliza- -G.Z. UNLOCKING THE ... (Continued from paw~ 20) Thus the coconut shell has been unlocked, mostly through the efforts of the National Coconut CorporaPage 38 tion Officials, who had faith, vhlion and dared to attempt. THE NATIONAL COCONUT CORPORATION is supplied by us with REBUILT SINGER SEWING MACHINES Rebuilt Family and Industrial Sewing Machines Cash or T1~rms e Installations e Repairing· e Rebuilding All \\"or·k,.. G11arantPP1l FIDELITY SUPPLY COMPANY :'.\lt>mb<>r, X at ional Economic Prot1•ct ion ism -'"'"'odation FELIX Z. TIONGCO, Proprietor Telephone: 2-52-76 830 Rizal A venue, Manila EPIFANIO L. VASQUEZ, Manager COMPLIMENTS of BIO & CHUAN, INC COPRA EXPORTERS AND DEALERS Central Office: 683 Calle Benavides Binondo, Manila C. L. TAN General Manager Telephone: 4-96-61 P. 0. Box 974 Branches In All Coconut Growing Regions Page 89 • A study of the most significant factors which make certain parts of the oriental tropics a great concentration point for the Commercial Coconut 1ndustry. LOCATION FACTORS IN THE COMMERCIAL COCONUT INDUSTRY By GEORGE F. DEASY * W ELL over nine-tenths of all the copra and coconut oil that enters world commerce from primary producing areas comes from five centers: the Philippine Islands, the Netherlands East Indies, the South Sea Islands, British Malaya, and Ceylon (Figure 1). No other part of the Tropics offers serious competition to these five regions in commercial coconut production (Table 1). (It is estimated that some forty per cent of the annual coconut harvest of the world is consumed in the countries of origin. The remaining sixty per cent enters international trade.) The factors determining this concentration of the commercial coconut industry within a restricted segment of the Tropics have never been systematically and comprehensively stated in geographical literature. Complete lack of explanation of the situation, or overemphasis of one or two factors, has been the common method of treatment. In a few instances, the factors involved in the localization of the coconut industry within a particular island or group of islands have been adequately discussed, but the application of these and other factors to the world situation has apparently thus far not been undertaken. The purpose of this paper, therefore, is to indicate and briefly evaluate, in so far as data are available, those environmental, economic, political, and ethnic factors that have operated and are operating in unison to make certain portions of the Asiatic and 00 100 FAR [ASTERN TROPICS PllNCIPAL COP•A PAOOUCINC. RtC.ION' 00 IOO Pacific Tropics the outstanding commercial sources of one of the world's major vegetable-oil raw materials. Teniperature Factor The coconut palm is a true tropical tree; it cannot withstand cool or cold weather. A mean annual temperature of about 68 degrees F. is necessary, and the optimum yearly. temperature for best growth and maximum yields is 80 degrees F. or higher. The diurnal temperature range should be small, preferably not exceeding 10 degrees F. The minimum temperature that the tree can withstand is approximately 45 to 50 degrees F. In a word, the coconut palm is limited to regions that are "always hot". Despite these limitations, however, a glance at the map in Figure 2A will show that there is a vast area in the Tropics which meets the temperature requirements of the tree. This includes most of the land between the Tropics of Cancer and Capricorn, exclusive of the highland regions. The temperature factor, therefore, merely sets the outer limits, beyond which the culture of the coconut palm is usually impossible. Other factors must operate to bring about the greater localization of the commercial coconut industry. It should be noted in connection with the temperature factor, however, that the poleward borders of the "Always Hot Zone," with their lower mean an...... < C..0-......... ____ --· -- ____ ., _____ .. ---- .• /.- ...... ,,-- --.. • ', ,' ...... .,,....... \ Fig. I. Showing Far Eastern Tropics: the principal copra productiong regions. Page 40 AUGUST, 1941 nual temperatures, their greater daily temperature variations, and the possibility of "cool spells" during periods of invasion by temperate-zone air masses, are not so favorable to widespread and successful coconut production as are those parts of the. zone lying closer to the Equator. Hence, other things being equal, such regions as the northern West Indies, northern Peninsular India and Indo-China, southern Brazil, southeastern Africa, and northern Australia are not likely to be major coconut-producing centers. Precipitation Factor In addition to constantly high temperatures, the coconut palm requires heavy rainfall. The tree can survive and produce a little fruit with an annual precipitation of as little as 40 inches, but for profitable growth and yields a yearly rainfall of at least 60 inches is required. Optimum conditions would necessitate a rainfall of 80 inches or more. Precipitation apparently cannot be too great, for there are records of thriving groves in regions receiving as high as 190 inches a year. The rainfall likewise must be well distributed throughout the year. The tree stores little moisture and it lacks a tap root; hence it is not suited to regions with a long and pronounced dry season, in which the water-table drops some distance below the surface level. However, if the yearly rainfall is very high, and if surface conditions are such that the ground-water level remains high, the tree is able to survive and produce abundantly in areas with several months of dry weather. The application of the above precipitation restrictions to those regions with suitable temperature characteristics results in a considerable reduction in the potential commercial coconut-producing areas. Figure 2B indicates those portions of the "Always Hot Zone" receiving an average annual precipitation of 60 inches or more. In most cases this rainfall is well distributed throughout the year. In a few instances, however, there is a distinct dry season (the Indian and Indo-Chinese areas, for example), but the total fall of rain is sufficiently great to maintain soil moisture at appropriate levels throughout the year. All remaining parts of the "Always Hot Zone" either receive too little rainfall, or that which occurs is too distinctly seasonal in character. The precipitation factor. therefore, removes from consideration as possihle major coconut-producing centers: ( 1) much of the Mexican, Central American, and northern West Indian regions; ( 2) a considerable proportion of the South American area; ( 3) most of the African section; ( 4) all of the Arabian section; ( 5) much of the Indian and Indo-Chinese regions, and (6) all of the Australian section. The only segments of the "Always Hat Belt" that remain essentially un~hange? are the East Indian and Pacific areas. Decided differences in rainfall exist between the wet windward and dry leeward sides of many of these islands, but they cannot be indicated on the small-scale map used. Soil, Ground-Water, Plant Propag·ation and Transportation Factors Even thou~h the climatic factors are favorable for the coconut palm, certain ground-water and soil conditions must exist for the tree to thrive. Generally speaking, for best results the following are necessary: ( 1) a loose, porous soil and sub-soil, preferably sand or alluvium (heavy clay soils are detrimental to growth and yields); (2) a continuously high watertable, and ( 3) rapid and continuous movement of ground-water (stagnant ground-water is very injurious to the palm). Such a combination of soil and ground-water conditions can exist in a number of different sites. Perhaps the most common place where they are simultaneously encountered, however, is along seashores backed by highlands. Porous sandy beaches experience rapid and constant movement of ground-water caused by the ebb and flow of the tide, and are the last to react to a period of drought by a lowering of the water-table. Hence, while the coconut palm will grow and is actually found in many inland sites within the wet tropics where suitable soil and drainage conditions exist, the seacoasts seem to offer the largest expanses of favorable territory and the coconut industry tends to be concentrated there. In India, for example, coconut groves are located over three hundred miles from the sea, and at altitudes ranging up to several thousand feet. Furthermore, many of the present producing palms were not planted by man but are instead natural growths. Such trees are invariably found along coasts, since the coconut fruit is lighter than water and is frequently washed to adjacent shores where it takes root and grows. No other simple method of seed dispersal exists to produce extensive inland natural growths. Hence, this factor also tends to localize the coconut industry along coasts. Finally, copra is a bulky, cheap commodity. It is not well adapted to long and costly overland shipments in tropical regions, where transportation costs are excessively high. Therefore another factor-that of location or accessibility-tends to localize the commercial coconut industry of the world along coasts. The map in Figure 2C shows the net results of the operation of all the above factors. The major potential commercial coconut-producing areas are seen to be confined to the coastal portions of those parts of the Tropics possessing suitable temperature and rainfall characteristics. All parts of these coastal districts shown on the map do not have suitable soil and drainage features, but local data are lacking in most cases to differentiate' the areas on this basis. The main argument, however, that it is coastal rather than inland districts that are most suitable for commercial coconut production. still stands. In this way all of interior South America and Africa can be eliminated from consideration. Political Factor In so far as natural environmental conditions are concerned-i.e., temperature, precipitation, soil. drainage, and accessibility-all the coastal areas previously indicated in Figure 2C are apparently equally well adapted to the commercial production of cc5conuts. The introduction of the political factor, however, Page 41 changes this picture. Certain of these tropical coastal areas are colonial possessions of some of the major copra and coconut oil importing countries of the world. The remainder lack political affiliations. It is only natural that the mother countries should favor the coconut products of their dependencies, either by direct tariff regulations and processing taxes or by the more intangible and elusive but equally effective business, commercial, and shipping ties that exist between the various parts of an empire. It is not coincidence that enables the Philippine Islands to furnish the United States with most of its copra and coconut oil, or Malaya, Ceylon, and the British South Sea Islands to supply the British Empire with its imports of similar products, or the Dutch East Indies to find their major market in the Netherlands (Tables II, III, and IV). Colonial possessions, therefore, possess a very real and tangible asset over their potential non-colonial competitors. The colonial areas benefit in still another way from their status as wards of the Great Powers. Their internal financial and political life is generally stable. Hence, when large purchasers of coconut products who have no tropical colonies, such as Germany and Denmark, look about to establish suitable commercial contacts, they usually favor the stable colonial countries to the exclusion of the unstable nonc:olonial areas. Likewise, when investments are being made in modern coconut plantations, it is generally the colonial areas that are chosen for development. Figure 2D shows the results of the political factor as it modifies the potential commercial coconutproducing areas. All of Central and South America except British Honduras and the Guianas, as well as some of the West Indies islands, lack the necessary political ties. It is chiefly the Asiatic, Pacific, and Afrt~an coastal areas that possess assured middlelatitude markets (Siam is an exception). Labor Supply, Competitive Crop, and Ethnic Factors For a region to become a truly large producer of coconut products it must possess not only the basic environmental complex to permit production and the necessary political connections to stimulate production, but it must also have a sufficiently large and dense population adequately to utilize the favorable existing opportunities. Table V shows the total population and population density per square mile of each of the remaining potential commercial coconut-producing countries, excluding Oceania. Population figures for the actual potential producing areas within each country are not available, but labor within the confines of individual political units is usually rather highly mobile, if conditions warrant the movement. The total population of all African colonies having suitable coastal areas is about 71 million, but the average population per square mile of these countries is less than 14. The Asiatic countries have a total population, excluding India, of over 110 million and an average population density of about 92 per square mile. Including India, Page 42 The COCONUT JO URN AL the Asiatic segment has a total population of 464 million, and a population density of 153 per square mile. In addition it has easy access to the Chinese millions. The South and Central American areas have a combined population. of approximately one-half million, and an average population of only slightly over three per square mile. The colonial West Indies have a total population of only some four and one-half million, but a population per square mile of over 260. The total population and the population density of Oceania is not known, but both must average fairly low. Analyzing these figures, we find that all of the potential producing colonies do not have a sufficiently large and dense population for extensive coconut production. This is especially true in view of the fact that the coconut industry is only one of many types of economic activities carried on in most of the countries concerned. In general it may be stated that the population of the South and Central American colonies is both too small in total numbers and too sparse to make those areas outstanding producers of coconut products, even though the whole populace were to engage in that industry to the exclusion of all others. In the case of the colonial West Indies, while the population density is sufficiently great to permit adequate exploitation of available coconut-producing possibilities, yet the total population is only four and one-half million, and only a small fraction of these is engaged in the coconut industry. So far as population is concerned, however, the West Indies offer greater promise of becoming an important commercial coconut center than any other part of the New World. The potential coconut countries in Africa have a fairly large total population, but they are spread over such an enormous area that the population density is quite low. The result is that many possible coconut-producing areas are left undeveloped. Only in the Asiatic section do we find a farnrable combination of dense and large total population. Even excluding India, the population of this section is almost one and one-half times the combined populations of all other potential producing countries, and the density is over six times as great. Including India (and China as a potential labor source), the predominance of the Asiatic section in labor supply is overwhelming. This large total population means that even though only a small fraction of the people engage in this particular line of economic activity, the resulting production will be extremely large. The great density of population means that the potentialities for coconut production will be utilized to a far greater degree than they would be in a sparsely populated rel!ion. The net result of the population factor is to exclude as major potential coeonut producers (1) the Central and South American colonies; (2) the colonial West Indies, and ( 3) the potential African areas, and to favor the predominance of the Asiatic areas. This leaves only the Pacific segment to be accounted for. Oceania, with a few exceptions, is unlike most other potential coconut-producing countries in that it can produce few alternative crops or products of commercial value. (There are a few exceptions to this AUGUST, 1941 statement. Sugar, for instance, is the major crop of the Fiji Islands, and crops or mineral products other than copra constitute the major exports of a few additional islands.) Many of the South Sea Islands are coral reefs or sandy stretches which are suitable for <:oconut cultivation but absolutely unfit for most other types of crops. Hence, almost the total productive population of Oceania is obliged to engage in commercial coconut production if it wishes to obtain the benfits to be derived from international trade (Table VI). Consequently, despite the relatively small total and the low density of population, one might still class Oceania as a major potential commercial producer of coconuts. This same situation holds true for many of the smaller islands of the Nether lands Indies, where despite the relatively sparse population the export of copra is great because of the lack of alternative economic pursuits. It does not apply to the larger i11lands of the Indies Archipelago, where more varied environmental conditions give the occupants a choice of export products. The competitive crop factor operates in exactly the opposite fashion in the case of the tropical West African region. This section has long been the center for the oil palm, the second most important vegetableoil plant of the Tropics and an excellent substitute for the coconut palm. Hence, greater apathy to the cultivation of the coconut palm is probably found there than anywhere in the Tropics. It is significant to note that the only parts of Africa supplying appreciable Fig. 2. Showing how environmental, economic, political, and ethnic factors have operated and are operating in unison to make cerain portions of the Asiatic and Pacific Tropics the outsanding commercial sources of the world's major vegetable-oil raw materials. - D ~1'-'f- -- :cJ __ - -- - - --~/.-- -------- ~ ~ fa ~~-: -- ~:~ .... - -- - .......... ~ ~ ......,.,.~ ··. ~~ ~~ ) " ~ . ... ~ .~ !: -' Jlj: """' ' vi v t \ r: ... ~ •• fW"I .... ,,-_ '· .:: . ~ OQ&llU ~ \ ! ...... ~ ~ --,. ~ - ·~ ~· .. 1.' \\ ( .. .,, .. .., '.1-. ,, IJ ~ Wf-- - f1J -,. /'n...f\ I' ~ 1 • _: -- . - -- -t- -- -- -· ·t-;:. .-- - -- - -- ---r o----.77. y- - : :£ ~~ ~1- 1 ', ~ - . --/--- ~~ =.I ~=)) ' ff_~ ... lo-. -- - . - - -- -· ~ , .. - T'""'"'" '""""' ~ -T . {:,/t k~ ... ,~ ..... l j i: ~ , ' .. ..... .-~ Jlj: !'-. ~ iv I ". r .. i..i ~ II'"" fT. ·:· . t l. ~: 0 ·~ \ ~ :'l ~ il .. ,... - ..• - . " .. . ·· f\ ( ... ..... J ~ ' I ~ ~ I/' "'t..lft I' i .. ~~ ~ -.- -- - -- -- --1-- £rt-- - -- - - ---t-:: - -- -- -; -- --re ---71 ·( -- --: ;F-. }~ ~-1- 1 '"'~-- --~7--- ~ !::"=' \Y ~-:; ·~~ : -·lo... - -- - -- - -- -- - - ,.._ 'i"'o."'- ...:; -·r· . l:/\: ~~ J i: . ~ ~ . l!t. .. .._ JLJ; !'-. ·- 11/ il' 1-r; .,, ... ~ •• of" 11-~ .. , • \ ., ' . Ol&I<> ~ v ...... -· -· II"- "' ... "I;'._ ' Utr . . f!I J ~( .. ""' ,, ~ "" >. 1 ' ~ l/'r"'t.f\. ....... I. 1. ' ,., - -- -- . -.t- - -- -- -- ·\--::: - -- - -- -- --r{- ----.71 K-- - -.- -- : Page 43 quantities of coconut products to commercial channels are found on the eastern coast of that continent (Mozambique, Zanzibar). In addition to the labor and competitive crop situations, the ethnic factor must here be considered. The Asiatic and Pacific segments of the Tropics are chiefly populated by Malayan and Polynesian races, peoples steeped in centuries of coconut culture and possessing the necessary knowledge and skill for tending the crop. The African and American segments, on the other hand, have a predominant Negroid population which lacks the traditions of coconut culture found in the Orient. The results of this factor, while intangible and difficult to evaluate, undoubtedly tend to foster the commercial coconut industry in the Asiatic-Pacific sections and to retard the industry in Africa and the New World. Mapping the conclusions arrived at in the discussion of the above factors (Figure 2E), it is found that: (1) the Central American, South American, West Indian, and African potential colonial coastal areas are excluded from becoming major commercial coconutproducing centers because of the labor supply, competitive crop, and ethnic situations; (2) the Asiatic coastal areas remain potential commercial coconut centers because of their large available labor supply and ethnic background, and ( 3) Oceania compensates for its deficient labor supply by its ethnic background and by being forced to concentrate on the coconut crop to the almost complete exclusion of all others. The net result is the retention of the Asiatic and Pacific sections as potential major commercial producers of coconuts. Domestic Market Factor In all the areas designated in Figure 2E, the cultivation of the coconut palm is widespread and of great importance. India (including Burma), French Indo-China, Malaya, the Netherlands East Indies, the Philippines, and the South Sea Islands all produce vast quantities of coconuts each year. However, the commercial coconut industry, with its emphasis on exports, is not developed in certain of these areasparticularly India, Java, and French lndo-China. Instead, in these three countries, most or all of the yearly crop is consumed at home. In the remaining areas, copra and coconut oil exports account for a large percentage of the total production. This situation appears to be largely a function of the relationship between size of population and total area of potential coconut land. If the population of one of the producing countries is excessively large with respect to the available coconut areas in that country, then local consumption of coconut products will account for all or most of the domestic output and little will be left over for export. This is the case in India, Java, and French Indo-China. India's 353 million people form an almost unlimited market for the products of her restricted coconut-producing coastal sections (note small size of potential coconut areas in Figure 2B). Likewise, Java's 42 million people consume most of the coconut products of an island that is but little larger than the state of Ohio, and only limited parts of which are suitable to the producPage 44 The COCONUT JOURNAL tion of the palm. Furthermore, while the population of French Indo-China is not excessively large (23 million), yet in relationship to the very restricted coastal coconut-producing areas available (Figure 2B), it is sufficiently great to consume most of the local product. On the other hand, the relationship between total population and potential coconut-producing land in the remainder of the Oriental Tropics permits the export of large quantities of copra and coconut oil. The Malayan Peninsula has a population of but five million, the island of Ceylon has but six million, all the Outer Possessions of the Dutch East Indies (i.e., all but Java) have total population of only nineteen million-less than one-half that of Java alone, and the Philippine Islands combined have only thirteen million people. All of these regions are islands or peninsulas, with extremely long coastal coconut areas that have a productive capacity far in excess of local demands (Figure 2B). Hence, all of these regions are major exporters of coconut products. The population question, therefore, is seen to be critical in the commercial coconut industry. If population is either too sparse in density or too small in total numbers, then coconut output is insufficient to permit a region to rank as an outstaning source of coconut exports. This is the case in almost all the potential colonial coconut-producing areas outside the Oriental Tropics. If, on the other hand, populatio11 is too great in comparison with available coconut land, then domestic demands absorb all or most of the local production. This appears to be the case in the Indian, Javanese, and Indo-Chinese portions of the Oriental Tropics. The intermediate population situation that exists in the remainder of the Asiatic anct Pacific regions appears to be most favorable to the export of large quantities of coconut products. Len~h Of Coastline It is sometimes stated in geography texts and agricultural works dealing with the subject of coconut production, that the coconut industry is centered in the Orient rather than other parts of the Tropics because the many islands of the East Indies, the Philippines, and the Pacific, as well as the long Malayan Peninsula afford tens of thousands of miles of coast well suited to the growth of the palm. This statement infers that it is merely lack of suitable coastal sites with the necessary climatic and soil conditions that has prevented the development of a large commercial coconut industry in the extra-Oriental Tropics. That such reasoning is fallacious can readily be proved by reference to a few maps and figures. Ceylon exported, in 1936, a total of 108,000 metric tons of copra and copra-equivalent of coconut oil; British Malaya, during the same year, shipped 152,900 metric tons of similar products (including reexports J. The whole of South America exported only 700 metric tons; the whole of Africa only 74,000 metric tons; the whole of Central America and the West Indit's only 5,400 metric tons, during 1!)36. However, reference to Figure 2C shows immediately that the coastal areas of both Ceylon and AUGUST, 1941 TABLE I MAJOR COPR:A AND COCONUT OIL EXPORTING REGIONS, 1 9 3 6 * ASIA . . . . . . . . . . . . Philippine Islands . . . Netherlands Indies British Malaya . . . . Ceylon . . . . . . . . British Borneo . . . . French Indo-China . . . . Siam . . . . . . . . . . . Timor . . . . . . . . . . Portuguese India . . . . . . India . . . . . . . . . . OCEANIA . . . . . . . . New Guinea . . . . . . . Fiji Islands . . . . . . . Solomon Islands . . . . . . . French Settlements in Oceania 'Vestern Samoa . . . . . . . Japanese Mandated Islands .. Tonga ..... . Papua ..... . New Hebrides . . . Gilbert and Ellice Islands New Caledonia . . . . AFRICA .... Mozambique . . . . . Zanzibar ...... . Tanganyika . Togoland . . . . . . . Seycheles . . . . . . . Gold Coast ...... . :Madagascar Mauritius . . . . . . Nigeria . . . . . . . Others . . . . . . . . CENTRAL Ai\IEH !CA . Trinidad and Tobago West Indies . . . . . British Honduras . SOUTH AMERICA British Guiana . WORLD TOTAL 1,339,800 542,800 (First) 509,600 (Second) 152,900 (Fourth) 108,000 (Fifth) 11,400 10,700 3,700 600 (1935) 100 217,300 (Third) 67,800 35,100 25,500 22,100 13,200 12,200 12.100 10,700 10,600 5,200 2,800 7-1,000 34,200 13,200 7,600 7.400 5,100 2,600 1,600 1,200 200 800 5,400 4,300 1,000 100 700 700 1,637,200 • l\letrir Tons: coconut oil in terms of copra. Sou ree: Internal ional Institute of Agriculture, 1939. TABLE II PERCENTAGE OF UNITED STATES IMPORTS OF COPRA ANll COCONUT OIL COMING FROM THE PHILIPPINF. IRLANDS• 1929 19311 l!l31 1932 1 !t3:l 1934 1 !135 1!136 PER •rENT 79 76 80 70 81 93 99 99 1!137 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . !14 1!138 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 1!13!1 ( Ja11.-J1111P) . . . . . . . . . . . . . . . • . . . . . . . . . . • 100 ° Coconut oil in te1·ms of copra. Sou1·rl': United ~Hates Department of Agriculture. British Malaya are far shorter than the potential coconut-producing coastal portions of Africa, or South America, or Central America and the West Indies. Obviously, if the coastlines of the three non-Oriental areas are each longer than the coastlines of the third and fourth largest exporters of coconut products in the world, then length of coastline by itself cannot be employed to explain the lack of development of a commercial coconut industry in the New World and African areas. If the potential coastal coconut zones of these latter regions were fully employed, they would rank the New World and Africa well up among the leading coconut producers. Factors other than length of coastline must be invoked, therefore, in order to explain the present retarded condition of the industry in those areas. These factors have been previously discussed in this article. Incorrect Interpretation of the Competitive Crops Factor A statement occasionally used in explaining the predominance of the Oriental Tropics in commercial coconut production is: "The great coconut areas are not very well suited for the esablishment of other export crops such as coffee, tea, cacao, rubber." This is an incorrect application of the competitive crops factor. If the "great coconut areas" signify the Oriental TABLE III PERCENTAGE OF COPRA AND COCONUT OIL EXPORTS OF TH;E PHILIPPINE ISLANDS GOING TO THE UNITED STATES ~ YEAR PERCENT 1929-33 . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 85 1934 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 1935 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 1936 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 1937 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 1938 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 <Coconut oil in terms of copra. Source: United States Department of Agriculture. TABLE IV PERCENTAGE OF UNITED KINGDOM IMPORTS OF COPRA COMING FROM BRITISH EMPIRE PRODUCTS• YEAR 1927 1928 1929 1930 1931 1932 1933 1934 1935 PERCENT 74 76 71 68 62 91 100 98 100 ''Source: International Institute of AgriculturP. Pagf' 4:; coconut-producing countries, one has only to recall the vast tea and rubber exports of Ceylon, the rubber and tin of British Malaya, the sugar and Manila hemp of the Philippines, the rubber and petroleum products of the Netherlands Indies, to understand the inaccuracy of the above statement. Only in Oceania and certain of the smaller of the Dutch East Indies is it true that the environment is "not well suited for the establishment of other export crops." If, on the other hand, the "great coconut areas" referred to above mean the actual sandy coastal sections of the Oriental producers, then the statement holds true for both 11011-0riental as well as Oriental producers. Ideal coconut land is seldom well suited to the growth of other export crops. For instance, most coastal coconut areas experience high winds. TABLE V POPULATION FIGURES FOR POTENTIAL COCONUT-PRODUCING COLONIES'~ DENSITY POPUL.I TION PER 8Q. JflLE .d.FRICA French West Africa Liberia ........ . Gold Coast ..... . Sierra Leone ... . Nigeria ....... . French Equatorial Africa ....... . Belgian Congo .. . Kenya .......... . Tanganyka ...... . Mozambique ..... . Madagascar ..... . Total ASIA 14,702,000 2,000,000 3,269,000 1,890,000 19,365,000 3,423,000 10,067,000 3,262,000 5;147,000 4,006,000 3,798,000 70,929,000 India ............ 338,172,000 Burma . . . .. . . . . . . 14,661 ,000 British Malaya . . . 5,137,000 Ceylon . . . . . . . . . . . 5,180,000 Netherlands Indies 64,540,000 French Indo-China 23,030,000 Philippine Islands. 13,099,000 Total . . . . . . . . . . 464,335,000 8.1 46.5 41,5 67.7 57.2 3.6 11.2 14.8 14.0 13.5 16.0 13.4 214.'i 62.8 96.5 228.2 87.7 80.8 114.5 153.6 CENTRAL AXD SOUTH AJfl<JRICA British Honduras. 56,000 British Guiana . . . 333,000 French Guiana . . . 31,000 Netherlands Guiana 169,000 Total ......... . WEST IXDIEf:J Puerto Rico ..... . British West Indies French West Indies French West Indies Netherlands West 595,000 1,806,000 2,204,000 551,000 551,000 6.5 ? - ._J.j 1.1 3.1 3.2 525.8 174.8 ... 494.6 .... 49.46 Indies ........ . 91,000 . . . 225.8 ('''?rage) (average) (average) Total ....... . 4,652,000 . . . 265 (average) *Figures for years between 1931 and 1938. Source: "Foreign CommercP Yearbook, 1938." Page 46 The COCONUT .JOURNAL TABLE VI VALUE OF COPRA AND COCONUT OIL AS PERCENTAGE OF TOTAL EXPORTS, 1 9 3 6 PERCENT Netherlands Indies ...................... . Philippine Islands ....................... . Ceylon .................................. . British Malaya .......................... . Oceania Solomon Islands (av. 1931-35) ........ . Tonga ................................. . "\Vestern Samoa ....................... . Fiji Islands ........................... . *Including reexports. 7.7 19.6 8.2 4.2° 15.6 86.8 61.6 19.0** **Fiji is one of the exceptional South Sea Islands that depend chiefly on the export of products other than copra (in this case sugar). Source: International Institute of Agriculrure, 1939. Consequently they are usually unfit for a tropical lowland crop like cacao. Furthermore, the groundwater in many coconut sections is brackish in character, which fact absolutely excludes most other crops such as sugar cane thrive best where a definite and pronounced dry season is part of the climatic regime. These liabilities, however, are not exclusively restricted to the Asiatic-Pacific sections; they oceur throughout the potential coconut regions of the world. Either interpretation of the original statement PHILIPPINE MECHANICAL SHOPS MACHINERY CONTRACTORS AND MANUFACTURERS .Wanufacturers of Coconut Defibering Machines for the National Coconut Corporation D. S. PONGOS :\lanag1·1· 7th Ave. Corner Rizal Ave. Ext. Grace Park, Caloocan, Rizal Tel. Cal. 285 AUGUST, 1941 thus proves it to be incorrect. Hence, the competitive crop factor alone cannot be used to explain the outstanding position of the Orient in the commercial coconut industry. Conclusions The coconut palm (Cocos nucifera) shows a circum-equatorial distribution. It is a common coastal tree, and to a lesser extent a tree of the interior, throughout the Tropics. Extensive stands exist in tropical Central and South America, in the West Indies, and in Africa. The widespread presence of the tree in tropical Asia and Oceania is proverbial. However, the coconut palm, like most other crops, ha.s its half-dozen or so major centers of production, consequent upon the fact that only in narrowly restricted areas is there to be found that almost ideal set of natural and human conditions which result in maximum production with least cost and effort, and which give to those limited areas the necessary advantages to produce leadership. This study attempts to select and evaluate those environmental, economic, political, and cultural factors which are most significant in accounting for the great concentration of the commercial coconut industry in certain parts of the Oriental Tropics. No claim is made that the factors considered are the only ones involved in the problem, nor is it claimed that the selected factors have been appraised as to their preci~e function and value. Lack of anything approachCompliments of FRED WILSON & CO., INC. MACHINERY & SUPPLIES Manila Cebu Iloilo ing complete data and the fallibility of human judgment prevent such exactitude. Nevertheless, the author does feel that the major factors involved in the localization of the commercial coconut industry have been dealt with more adequately than in any previous publication, and that a more coherent and comprehensive picture of the distribution of the industry has been presented. *Reprint from "Economic Geography" (April, 1941 issue) published by Clark Univ!'l'sity, Worcester, Massachusetts. Compliments of Manila Office Equipment Co. 24 David, Manila, Philippines Tel. 2-15-96 Compliments of ACME ENGRAVING PLANT Maker of Fine Cuts Owned and Operated By RAMON ROCES, INC. Publishers ¥ Printers :t- Engravers 1049 Soler Tel. 2-43-61 RAMON ROCES BUILDING Manila, Philippines Page 47 The COCONUT .JOURNAL THE ROLE OF THE PHILIPPINE . (Oontinuerl from payr 12) gasoline and kerosene from coconut oil, we should also be able to produce our crude fuel oil requirements, amounting to around 7 million pesos, from coconut oil, or in fact, use our coconut oil directly as fuel oil. Preliminary studies in the Bureau of Science show that we can utilize our low-grade coals in conjunction with crude mineral fuel oil for possible use in internal combustion engines and in boilers. The substitution of coconut oil for mineral oil in such power requirements will not only help to stablize our coconut industry further, but may also help in the more efficient utilization of our low-grade coals. Again, we see from Table II that we still import vegetable oils to the extent of around 300,000 pesos. These oils are essentially for table purposes, probably as salad oil and as cooking oil. By special processing we can produce salad oil from coconut oil, and also give the right flavor to coconut oil to make an olive oil substitute. The substitution of coconut oil for olive oil will not only take care of our local importation, but may also open up a vast opportunity to divert a great portion of our coconut oil exportation to the South American countries, where no restrictions on our products exist. Only brief mention need be made here of glycerine and stearine from coconut oiL In peace times glycerine is used in the manufacture of dynamite Compliments of Jl6l/l!WllJO'S mA1n SlORE • ~00 JUfln LUOA • ffiRntLR Page 48 for road and bridge building, and for mmmg activities; glycerine is also used as a softening agent in the tobacco industry, as a constituent of plastic materials, as a basic ingredient of film in the movingpicture industry, and as a basic material of viscose in the rayon and cellophane industries. In war times glycerine is used mainly in the manufacture of explosives. In 1940 the Philippines imported more than 4 million kilos of dynamite worth around 2.3 million pesos. This suggests the possibility of local manufacture of dynamite from glycerine, which can be produced as a by-product in the manufacture of soap. Stearine, better known in the trade as coconut butter or chocolate fat, is used extensively in vegetable lard manufacture and in the manufacture of candy. Disregarding our present exportation of vegetable lard and butter to other countries, in 1940 we imported 147,357 kilos of chocolate candy alone, which shows that we can start th~ manufacture of stearine for local consumption. Needed: A Dynamic Philippinism The concretizing of the above possibilities for a self-sufficiency program depends upon our own 1111tiative and energy. There are required: first of all, a great amount of completed groundwork of technologic investigations which can be immediately translated into plant or at least semi-commercial plant practice-fortunately in the case of coconut oil, we already have a great deal of this technological work; secondly, a competent body of marketing experts and salesmen to popularize aggressively and market coconut products, as soon as the production stage is reached; thirdly, a strong body of executives who could direct the work of immediate industrialization and of long-range planning for the coconut industry; and fourthly, an extensive organization of coconut producers to accelerate their program of industrialization and take whatever steps are necessary to protect their own interests. Of all the agricultural export industries in tht> Philippines, the coconut industry has up to now the best possibilities of stabilization and of playing an ·important role in the economic self-sufficiency of the country. Let dynamic Philippinism translate these possibilities into concrete realities! Compliments of a National Coc·onut Corporation Supplier AUGUST, 1941 COPRA PRICE FLUCTUATIONS ... (Continned from page 14) tonseed and soyabeans, which later influenced copra price movements at the close of the year in the face of obscure international situation and legislative uncertainties in the United States. Europe in the meanwhile remained uncompetitive, being more pre-occupied with the tense political atmosphere. Shortage of space to the Mediterranean ports made it difficult to market F. M. M. in Europe. Periodic increases in ocean rates to European points entailed the necessity of selling Philippine copra and coconut oil in the United States. The inability of the American market during the last quarter of the year to absorb Philippine offerings except at declining prices in view of the abundance of domestic fats and oils depressed the copra market. Values locally dropped, hastened further by the general political uncertainties in the United States. The Sino-Japanese conflict in China J,!"enerated a slight influence over the market. Resecada averaged P12.93. The incidence of the present war The sharp break of the American commodity and security prices scared away oil buyers in 1938. Europe sympathized with the decline. The meal and cake market was deteriorated, while the fundamental aspects of the fats and oils situation over America remained weak. Copra prices fell off. Average values suffered abruptly. 1938 annual average was less than half of 1937 as it staggered to P6.02. The best price obtainable for that year was P8.25, while trading was made as low as P5.00. European support was lost in 1939, while coconut oil in the United States labored under the influence of surpluses of fats and oils. As the European tension tightened, the London market was disturbed, accompanied by the violent drop of the pound sterling. The minor ups and flurries in 1939 were the results of speculative activities which swept the markets everywhere as war broke out in September. No sooner, however, the wave of specu la ti on died away as large buyers failed to respond. Shipping losses mounted and gradually bottoms became scarce. War risks and marine insurance rates were revised upwards; freight schedules hiked. With London closed due to the war, the United States remained as the only outlet of our coconut products. But as the American market writhed under a plethora of various fats and oils, Resecada average price for the year dropped to P5.87. The year 1940 was the darkest period of the copra trade. Allied reverses in France as well as the invasion of the Low countries and the successful closure of the Scandinavian area constituted direct blows to the industry. Normal outlets of eake and meal were barred, plugged. Large quantities of feedstuffs glutted the American market. Huge stocks of lard unsettled the entire fats and oils situation in the United States. Space situations became more stringent. Freight schedules suffered further revisions. The intensification of war in Europe failed to boost copra and coconut oil prices. The trend of prices was quite the contrary of that which prevailed during the first world war. Large American buyers were withdrawn. The related markets were inactive. Copra touched unprecedented record lows. At no time in the entire history of the trade was the condition of the market so drepressed. Resecada moved to levels lower than those of the bearish days of 1934. Quotations were as low as 'P2.50 per 100 kilos. People in the provinces, in certain cases, gave their coconuts to the hogs, instead of making copra. There were even instances recorded where the people in remote barrios of coconut provinces failed to have three square meals. Resecada in 1940 averaged P3.87 as day-to-day price variations hit starvation levels. In fact, coconut growers almost lost their shirts in 1940, and not a few threw up their hands in despair. The 1940 prices were the lowest on record. The fluctua{ions uf the copra market during the last twenty years should teach coconut planters one lesson: They should not be dependent on copra alone. Copra and coconut oil are sold largely in the world's markets. Prices are governed by factors over which we have no control. A legislative fiat cannot stabilize the price of export commodities such as copra and coconut oil: Hence, the need for the utilization of all the by-products of the coconut industry. There is more money in these byproducts. The manufacture and use of these coconut by-products, under the guidance and direction of the National Coconut Corporation, constitute nothing but a short tail of the copra industry at present. COPRA PRICES, RESECADA PER 100 KILOS (') YEAR ANNUAL HIGHS LOWS average 1921 P16.95 P21.07 f>14.04 1922 16.90 19.75 15.36 1923 19.17 22.83 16.67 1924 20.40 23.71 18.22 1925 23.12 26.34 20.63 1926 21.52 25.91 17.39 1927 19.73 20.55 18.18 1928 19.69 20.94 17.78 1929 16.65 19.36 14.62 1930 13.59 16.60 10.67 1931 7.78 10.67 5.18 1932 6.44 7.80 5.40 1933 5.02 5.90 4.00 1934 4.22 7.20 3.30 1935 8.89 rn.5o 6.00 1936 10.78 20.50 7.00 1937 12.93 23.00 7.00 1938 6.02 8.25 5.00 1939 5.87 8.25 4.80 1940 3.87 6.00 2.50 (x) Prices from 1921 to 1931 were adjusted to conform to Resecada basis per 100 kilos. P1tge. 49 COCONUT LEGISLATION (Co11ti111u'd. from pa.ye 3"1) Products Board. Penalty for Coconut Thieves At the time that Act No. 2598 was enacted another measure was also passed to curb the rampage of thieves and despoilers on coconut lands, which had fast become an extreme annoyance to coconut landowners. This was Act No. 2609 which penalized a person who gathers two or more coconuts that have fallen or been left on the ground, or f,akes them off the trees without the knowledge and consent of the owner, or steals them in any other manner, or cut the young nuts or the trunks of coconut trees, in order to appropriate their nuts to his own use and consumption. The Act provided that the penalty was that found in Article 518 of the Old Penal Code, later incorporated in Article 310 of the Revised Penal Code as amended by Commonwealth Acts Nos. 273 and 417, Section 2, under the offense described as qualified theft. Legislation to Combat Coconut Pests In 1933 the coconut leaf-miner presented a vicious threat to the coconut plantations throughout the Philippines. This necessitated the prompt passage of Act No. 4047 on February 18th of that year. This Act a-uthorized the Director of Plant Industry, subject to the approval of the Secretary of Agriculture and Commerce, to use such amount from the P200,000 already appropriated under Act No. 3924, as may be necessary to accomplish the destruction and eradication of the coaonut leaf-miner and other pests and diseases of coconuts. The pests wrought such havoc on the coconut plantations that the industry did not feel the immediate adverse and harmful effect of the U.S. Revenue Act passed the following year, because of the greatly decreased exporwtion of coco-oil. This Act, which took effect on May 10, 1934, imposed a tax of 3 cents on every pound of oil extracted in the Philippines or in the United States from copra of Philippine origin, and 5 cents on every pound of oil extracted from copra of foreign origin. The Philippines, however, regained its enviable position of preference when the U.S. Revenue Acts of 1935 and 1936 which amended the previous revenue act by increasing the origina-l rates of tax imposed on some of the oils were .<;ubsequently passed, to the advantage of the Philippi,ne Coconut Oil. Toward the extermination and control of locusts, bud-rot, and other coconut pests, the need for legislation was not felt until 1936 when Commonwealth Act No. 110 was enacted on October 30, 1936. This Act created an appropriation of Pl00,000.00 to be spent for carrying out the campaign against those pests and diseases. Under the Act, the Secretary of Agriculture and Commerce shall submit to the National Assembly within 15 days from the opening of the coming session a report giving a detailed information as to the manner the amount appropriated has been spent, as well as the results thereby accomplished. Any unexpended balance of the fund appropriated shall revert to the Philippine Treasury on December 31, 1937. Page iiO The COCONUT JOl'RNAL Acts of Congress Immediately after the termination of the first World War, there followed a slight decline in our exportation of copra and coconut oil as the demand for their use lessened. But it was not until the years from 1920 to 1922 that our exportation of copra and coconut oil to the United States became alarmingly reduced. The chief cause of this heavy downward trend was the passage of the Emergency Tariff Act of 1921 by the U.S. Congress, which imposed a duty of 20 cents on every gallon of our coconut oil. As a result, several coconut oil mills in the Philippines were forced to shut down. However, the coconut industry was saved from total liquidation by the timely passing of the U.S. Tariff Act of 1922, which repealed the prior Act a?~ i'!lposed a duty of 2 cents only on per pound of Phili'JYPl-ne coconut oil, giving preference, therefore. to the Philippines by excluding imported coconut oil from foreign sources other than the Philippines. Coconut Included Among Staple Crops Act No. 3443 was enacted on November 28 1928 appropriating the sum of P50,000 to finance the' estab~ lishment and maintenance of seed farms. This Act was amended the following year which provided for additional funds in order to extend the operation of the former act to include the establishment and maintenance of experimental stations. It is noteworthv that the coconut was not included in the enumemtin;1 of staple. crops primarily mentioned in the foregoing acts. This was, perhaps, due to the fact that the coconut industry as previously stated was not greatly affected by or suffering from the economic depression prevalent the world over. It was only on November 29, 1932, when Act No. 3944 was enacted t-0 amend Act No. 3443 by including the coconut in the rank and fifo of rice corn, sugar cane, abaca, etc. tlwt coconut fell within the meaning of staple crop. This later Act provided for another sum of P50,000 to be used in the establishment, maintenance, equipment, and operation of seed farms and experimental stations for the purpose of raising selected and pedigreed seeds of the enumerated swple crops to be distributed to the farms throughout the Archipelago. During the Commonwealth, the coconut having already been considered a staple crop, Commonwe-alth Act No. 50 passed on October 14, 1936 provided for the establishment, operation, and maintenance of warehouses for copra and, if space is available, other marketable products. Under the Act, the Secretary of Agriculture and Commerce, the Philippine National Bank and the National Development Company may, under such rules and regulations as they will promulgate, charge reasonable rate of fees for deposits made in the warehouses established by them under the Act. For this purpose they are directed to acquire, by lease or otherwise, suitable warehouses in place where, in their opinion, the establishment and operation of such warehouses are justified, and they may employ the services of any officer or employee of the government with the approval of the respective Department Head, or if such officer or employee is not available, they may employ the services of any other suitable person for the -0peration of t.. warehouses. Any officer or employee or person in charge Officials and students in the Marinduque C o c o n u t School for Home Industries of the National C o c o c onut Corporation. of any of the warehouses created under this Act shall have the privilege of being bonded in the Fidelity Fund. The Philippine National Bank and the National Development Company were directed to invest out of the funds under their control such amount as may be needed for the establishment, operation, and maintenance of the warehouses with such arrangement as may be agreed upon between them and the Secretary of Agriculture and Commerce. Upon the request of a municipality, the latter may acquire and operate any of the warehouses located within its jurisdiction and establish, operate and maintain the same in accordance with Acts numbered 3929 and 3932 and under such arrangements as may be agreed upon between said municipality and the government institution and authorities concerned for the reimbursements of the money invested in the establishment of the said warehouses. The Tydings-McDuffie Law on the Coconut Rejection of the Hare-Hawes-Cutting Act by the Philippine Legislature resulted in the passage of the Tydings-McDuffie Law, known as the Philippine Independence Act. The provisions of the rejected Act affecting the coconut industry were wholly incorporated in the latter. According to the Tydings-McDuffie Law, there shall be livied, collected, and paid on all coconut oil coming into the United States from the Philippines, in excess of 200,000 long tons, in any calendnr year the same rates of duty which are required by the laws of the United States to be levied, collected ru1d paid upon like articles imported from foreign countries, and in case the limit has been reached, the amount or quantity of coconut oil shall be allocated~ under export permits issued by the Government of the Commonwealth, to the producers and manufacturers, on the basis of their exportation to the United States in the preceding year. Moreover, the Government of the Commonwealth shall impose and collect an export tax on the exportation of coconut oil entering the United States free of duty, i.e., within the limitation of the quota of 200,000 long tons, beginning and during the 6th year after the inauguration of the new government, at 5 % of the rates of duty which are required by the laws of the United States to be collected and paid on like articles imported from foreign countries; and thereafter at a yearly progressive increase of 5 % on the rate of the preceding year, until the expiration of the 9th when the export tax shall be at 25 c~ . The Tydings-Kocialkowski Act Nevertheless, by the passage of the Tydings-Kocialkowski Act, otherwise known as the Philippine Economic Adjustment Act, on August 7, 1939, the economic provisions of the Tydings-McDuffie Law affecting the copra, coconut oil and other products exported to the United States were to a great extent amended. According to this later law, no export tax is to be imposed and collected upon coconut oil and copra, without however exempting the quota of coconut oil from the excise tax provided in Section 2470 of the Internal Revenue Code. The amending law took effect on November 15, 1940, and shall end on July 4, 1946. The aforementioned law reaffirms the quota of 200,000 long tons provided in the Tydings-McDuffie Law for the year 1940, and furthermore, provides that for each calendar year thereafter up to calendar year 1945, said annual quota shall be the same as the corre~ponding quota for the year immediately preceding, less 5 % of the corresponding original quota, and for Page 51 the period from January l, 1946, to July 3, 1946, the mmool quota shall be one-half of the corresponding quota specified for the calendar year 1945. Act Establishing the National Coconut Corporation The following year, the National Coconut Corporation was created by Commonwealth Act No. 518, approved by the National Assembly on August 7, 1940. It is subject to the provisions of the Corporation Law in so far as they are compatible with the provisions of Act No. 518, and enjoys the general powers mentioned in the said Corporation Law in addition to the specified powers mentioned in Act No. 518. The National Coconut Corporation is managed by a Board of Directors appointed by the President of the Philippines with the consent of the Commission on Appointments of the National Assembly. According to this Act, the National Coconut Corporation shall have the following objects: (a) to establish, keep, maintain, and operate, or help establish, keep, maintain and operate drying plants, or copra driers, or coconut centrals with a view to adjusting the coconut industry to a position independent of trade preferences in the United States and to provide facilities for the better curing of copra products and the proper utilization of coconut by-products, provided, that no subsidy, direct or indirect, shall be paid to producers or processors of copra, coconut oil, or allied products; and (b) to afford facilities for bona fide production loans to Philippine coconut planters and copra producers. To carry out the foregoing purposes, the aforesaid corporation is empowered and authorized: (a) to grant bona fide production loans to Philippine copra producers upon the security of coconut crops or products; and (b) to buy, sell, assign, establish or operate rent or lease presses, warehouses, buildings, and any other equipment and materials necessary and proper to carry out its purposes. In accordance with the Tydings-Kocialkowski Act, a special fund known as the "Coconut Industry Fund" was created by appropriating a certain amount out of the Coconut Oil Excise Fund collected on and after January 1, 1939. The total sum available to the corporation for the accomplishment of its undertaking shall not exceed P20,000,000.00. The Coconut Products Board and the National Coconut Corporation Compared It is significant to note that the purposes for which the National Coconut Corporation has been organized are in general parallel to those of the Coconut Products Board of 1916. A notable divergence, 'however, lies in the fact that in the former organization the principal objective was superiority of coconut production, while the one recently established, while not neglecting to place emphasis on the quality of production aims principally at securing for the industry a position independent of trade preferences in the United States. Page 52 The COCONUT JOURNAL FIBER FROM ... (continued from pare 15) . a pure building board, although it resembles lumbet wallboard in many respects. It is a composition board made essentially from wood or any other vegetable fibers by a process of felting in which countless fibers are interwoven and matted to form a rigid product. In other words, it is a synthetic lumber in which strength, resistance to moisture and fire, insulating and acoustical properties have been built in. It is a new material, an insultaing lumber, rather than a mere substitute for wood. Millions of square feet of it are produced annually to satisfy demands that its originators never foresaw. It has been given qualities in a wide variety of combinations to serve specific purposes. It enters primarily in the manufacture of cabinets, marine partitions, railroad coaches, toys, in trailers and motor vehicles, air-conditioning, refrigeration, theaters, etc. As a building material, fiber board is notable in its handiness and ease of application. It presents no waste, since they are delivered in specific sizes and contains no knots, sappy pieces or cross-grains. Moreover, its close texture renders it resistant to attacks from insect vermin. Two distinct objects of paramount importance are solved in the fiber board industry, namely: t 1) the manufacture of a substitute building board material having a large unit surface area which consequently reduces handling and installation costs, and < 2) the utilization of waste fibrous products. Fiber boards can be classified into two different groups-(1) the homogenous and (2) the laminated. Under the former class, sometimes called the uniform consistency board, are found the insulation and acoul>tical boards. The latter class which is a board built up from several layers to impart strength includes the composition boards used for flooring, cabinets, railroad coaches, etc. Manufacturing Process The process of board making as practised by many manufacturers today, is based upon the principle of "felting" or the production of a rigid board of interlaced fibers. The treatment, however, is sometimes modified according to the kind of raw materials used and products desired. Generally, the raw material is subjected to a mechanical or chemical pulping process suffident to loosen incrusting casing materials for the fil.>ers, but not to reduce the fibers into pulp. The fibers are recovered, washed, refined and finally pumped into a stock chest which feeds the molding machine. From the board machine, the wet board formed passes thru a series of rollers, suction boxes, and finally under powerful presses, whence it is taken to a long continuous drier. Sometimes, however, instead of the long continuous drier, the wet board is cut to specific. sizes and loaded into a platen-press, the number of plates varying as to the numr0 r of boards pressed at one time. The driers deliver b.,ards which are nearly bonedry and are, therefore, either treate<' in a humidified or simply sprayed with water to bring its moisture content in equilibrium with the moit:iture content of the air, thus insuring minimum of i;welling and shrinking. The finished boards, after rigid inspection, are stored away ready for delivery. AUGUST, 19-H Basis Of Study The technique involved in the manufacture of this insulating fibrous product is to felt the fibers and to subject it only to such pressure as to entangle minute air cells which secure the insulating value and lightness of the board. The idea is to entrap in each square foot of board millions of sealed aircells which are held captive in the fibers themselves and in the interstices between fibers. It is these cells which inhibit the insulating property of high efficiency. Formerly, air spaces between walls were regarded as the best possible insulator of heat and cold (air having a thermal conductivity constant of 0.21 B.T.U. per pound much more efficient than cork) Science has proven, however, that this hold~; true only, and this air is efficient merely, if it can be securely confined or rendered "dead." Experimental Procedure And Results With the foregoing fact as a working guide, together with the recent findings that coir pulp or dust exhibits properties similar to cork, that is, -it shows excellent insulating quality, is soft, light and compressible, plus the merits of the coconut fiber or coii" for being long, tough and springy, experiments were conducted to determine the suitability of these waste materials for making fiber boards. Unfortunately, the work was not as easy as was prediCted. It was fraught with difficulties. In fact as early as the experiments were started, problems presented themselves. For instance, it was found out that, unlike the· bagasse fibers with its serrated sawtooth surface and the presence of microscopic hooks which give to it its tenacious ability to cling to each fiber and which qualities facilitate its felting to a great extent, the coconut fibers on the other hand are devoid of these hook-like structures, has a smooth surface, and are decidedly rounded in cross-section. Moreover, unlike the abaca fibers which can be shredded to its fine, filmy original minute fibers, the coconut fibers, once defibered, can not be shredded to any further extent. That is, each individual fiber is already the ultimate fiber itself. In structure, it resembles a short ordinary wire and no pounding action could give any shredding effect. Instead, it merely flattens the rounded fiber. A careful study was therefore necessary to overcome these drawbacks as well as to evolve, if possible, a process of board manufacture suitable to the use of coir as raw material. Working on coir shorts, the first step was the mechanical preparation of the fibers. This consisted, primarily, of cutting the fibers in a fiber mill of the blade type, thus reducing the length of the fibers to one-fourth or about three-fourth inch long. To compensate for the absence of hairlike hooks and to offset the objectionable smooth surface of the rounded fibers, the cut fibers were given a permanent curl or a sort of wave in another mill of the hammer type which also broke up any bundle of fibers that might have been left. By virtue of the hammering action of this mill, the desired effect was produced which evidently helped in the interlacing and interweaving of the fibers into a greater degree than if the fibers were allowed to remain as short, straight ones. The mixture of fibers used comprised of primary fibers from (% to % inch long) which were interlaced to form the framework and secondary (shorter fibers) which give rigidity. The space between the fibers were then filled with coir pulp or the pithlike particles to increase the insulating quality. Finally, a little paper pulp from old newspapers, previously beaten in a separate beater was added to hold the coir pulp and other fibers in place, besides, supplying the necessary fine aggregates. The above mixture in exact proportions was delivered to a beater. Additional water and waterproofing materials made up of rosin and alum, as well as insecticides to render them resistant to dry rot and termites were mixed at this point. Two desirable effects obtained in the beating process were: 1. Shortening of the fibers necessary for ease of uniform distribution. This was purely a mechanical process which further refined the mixture of fibers in the stock. 2. A change in the character of the stock, re·· suiting in increased density and tensile strength. This property appeared as the feel and appearance of the stock became more and more slimy and soft, an effect produced by the rubbing and pounding action of the beater After 30 to 45 minutes in the beaters or after such time when the feel become slimy and the individual fibers were thoroughly coated with the waterproofing and termite-proofing materials, the stock was transferred to the wooden press-molds. Care was taken that the wet mixture was evenly distributed. The bulk of the water was extracted by pressing down a wire screen which left a wet lap of the material. This was finally pressed down by a wooden plate to the desired thickness. After the board has set, usually from 4 to 7 hours, it was taken out of the press to dry. The drying process (air drying in this case) took from 3 to 6 days. This was the best that couhl be done under present conditions although the drying operation could be greatly facilitated by the use of steam heated hydraulic platen-press as previousl:v mentioned. This appartus has the advantage of taking care of two steps of the process in one operation, namely, the drying and the pressing operations. besides imparting a glossy finish to the surface of the board. Boards made by the above developed process ha;-; a smooth surface, which indeed is a decided improvement over boards previously made by the dry method that employed different kinds of binders. It has the desirable properties of taking on paint economically, and can be sawed or nailed, just like ordinarly lumber. The fact that the above wet process does not employ any kind of adhesive has tremendously lowered the cost of production. Acknowledgement The author deeply appreciates the cooperation rendered him by both the Industrial Engineering Division and the Wallboard Sections of the Division of Tests and Standards of the Bureau of Science, and is especially indebted to Mr. F. D. MaPamba, Chief of tht' Industrial Engineering Division, and Mr. Moises Lucas for their valuable and helpful suggestions. He is likewise grateful for the constructive advices received from Mr. R. Aguilar, Chief of the wallboard Section. Page 58. LOS PRIMEROS LOGROS DE LA CORPORACION NACIONAL DEL COCO Por J. M . .DE CASTRO H ACE apenas quince meses desde que la Asamblea Nacional cre6 la entidad gubernamental hoy conocida por la Corporacion N acional de! Coco en virtud de la Ley de! Commonwealth numero 518. Para ser mas exacto, los registros demuestran que el advenimiento de la corporacion salvadora de los cocoteros fue en Mayo de 1940. Pero esta no di6 muestras de vida sino hacia Agosto de! mismo afio, cuando en acto nada ceremonioso se inaugur6 sus funciones en el anterior edificio ocupado por la Corporaci6n Nacional Mercantil. Fue elegido Gerente el conocido plantador de coco de Tayabas Hon. Maximo Rodriguez, un tiempo ejecutivo de su provincia, cuya elecci6n celebramos por acertadisima, tomando en cuenta sus cualidades y conocimientos que hacen de el la persona id6nea para llevar las riendas de la Corporac1on. Esta de mas decir que como productor de coco, el Gerente Rodriguez sabe lo que tiene entre manos al asumir el cargo que le ha encomendado su Excelencia, el Presidente de Filipinas. Entrando en lo tangible sobre los logros de la Corporaci6n, comenzaremos dando resumen abreviado de lo que es el coco para muchos filipinos. EI coco no es ningun producto nuevo; ha constituido desde tiempo inmemorial uno de los productos principales de! pais que ha dado no solo alimento sino hasta lujo y grandeza para muchos, y muy en particular, ha constituido fuente (mica de vida, no a miles, sino Hace exactamente un afio desde que la entidad di6 sefiales de vida, por tan to, diremos ; doce meses de duro bregar para los dirigentes de la Corporaci6n en el establecimiento de los cimientos donde estribara todo cuanto venga despues, una vez erigida y en funci6n normal y corriente. No es de negar que las fundacioMAXIMO RODRIGUEZ a millones de filipinos dependientes exclusivamente del coco. El coco es el producto mas versa.ti) bajo la mano de! agricultor filipino; es la planta cultivada en Filipinas que puede dar el mayor numero de productos accesorios sin excepci6n, solo que este hecho es ignorado aun por los mismos plantadores de coco. No porque fuera necesaria la iniciativa de grandes cientificos para descubrirlos, sino mas bien es debido a Ia natural indolencia, resultado de las bonanzas sin igual de la naturaleza en las paradisiacas islas tropicales de la Oceania. De hecho Filipinas jamas ha conocido el hambre como lo ha conocido muchos paises menos agraciado8 por la uondad Divina. En contraste a estos paises donde las inclemencias del tiempo, durante ciertas determinadas estaciones del aiio, dejan a la madre tierra incapaz de nutrir vegetaci6n alguna, Filipinas, al igual que las demas islas hermanas, nutre en su seno la flora tropical de perenne y eterno verdor, y entre las ritmicas palmeGerente General nes son los mas dificiles de llevar a cabo, y es motivo de felicitaci6n para el Gerente Rodriguez el que haya salvado felizmente la parte de suma prueba para todo emprendedor-la organizaci6n. En la actuaJidad se puede decir que la Corporaci6n ha entrado en su segunda etapa de operaci6n, y por lo que se ve, la nave de la Directiva navega viento en popa. Page 34 · ras cocoteras no se oyen mas que los murmullos de la abundancia. He aqui las razones porque han permanecido ocultas innumerables fuentes de riqueza, industrias que encierra la maravillosa palmera de! coco, abandonadas a la apatia e impericia de! agricultor e industrial filipinos que dcede tiempos ignotos se han contentado en tomar de ella su aciete Y su fruto como productos comerciales, y para sus AUGUST, 1941 necesidades buc61icas el santan, el bucayo, el gata, y el ubod-y en casos extraordinarios, cuando se les ocurren honrar al dios Baco, sustraen tambien del coco la espirituosa bebida de la "Tuba". La verdad, hasta ultimamente, unos cuantos afios antes de la creaci6n de la Nacoco y comercialmente hablando, desde luego, no se conocian productos de! coco mas que el aceite y la copra. Pero aqui tenemos la Corporaci6n N acional de! Coco cuya creaci6n infunde esperanzas en la h©y marchita industria cocotera. El personal de la Corporaci6n encabezado por SU habil e incansable dirigente, Hon. Maximo Rodriguez, se ha propuesto no dejar piedra por mover para conseguir la completa rehabilitaci6n de la industria del coco. Se ha propuesto movilizar todos los recursos colocados al alcance de la Corporaci6n para efectuar la tan deseada y esperada iniciativa de la presente administraci6n del Commonwealth. Los adelantos y logros alcanzados hast.a el presente, son dignos de encomio; pero a(m hay largo trecho que recorrer antes de poder llegar a la meta de! triunfo, Y solamente con la buena voluntad de todos, especialmente con la cooperaci6n de los plantadores de coco, se podra alcanzar los lauros por la completa rehabilitaci6n de la industria. Los primeros esfuerzos de la Corporaci6n fueron dirigidos hacia la adopci6n de ciertas normas que tienden a efectuar cambios radicales en la industria. Normas que parten del antiguo principio de concentrar todos los esfuerzos en la explotaci6n del aceite y de la copra como unicos productos principales del coco. La nueva pauta seguida, desviando de esta antigua norma, descubre y crea nuevos productos de! coco que disputan en importancia a estos dos productos que en la actualidad parecen no hallar mercado bastante bueno en ninguna parte del mundo. Las circunstancias politicas y comerciales predominantes en la actualidad acompafian favorablemente al bonote y a la chireta en su curso ascendente como producto comercial mientras resulta todo lo contrario en cuanto respecta al aceite y Ia copra. Se puede decir que desde la creaci6n de la Corporaci6n Nacional del Coco, tanto el bonote como la chireta, ambos se han colocado al nivel del aceite y de la copra, con todas las perspectivas de ganar la preponderancia sobre estos ultimos en cuanto a la demanda. Es aun de esperar que estos nuevos productos dieran al plantador del coco lo que en tiempos de bonanza rindieron la copra y el aceite. El uso del carbon de la chireta y de las fibras de bonote tanto como material de guerra asi como material puramente comercial, esta plenamente establecido. Las actuales contiendas que arrasan los suelos del conti~ente Europeo han redimido al bonote y a la chireta de) cumulo de desperdicios y los han colocado sobre las gradas de la exaltaci6n comercial. Ahora, de los bonotes se extraen las fibras con que se tejen los tejidos para los sacos de arena para fines de defensa militar. Fibras muy apropiadas para este fin debido a sus propiedades de ftexibilidad y elasticidad. En cuanto a Ia perspectiva de su utilidad comercii1l, se puede imaginar cuanto traeria una industria que se dedique a la fabricaci6n de sacos para el arr6z, el maiz, la patata, el cacao, el cacahuete, etc. tanto en el pais como en la extrangero. Filipinas sola, importa -de la India sacos de yute al rededor de P4,000,000.00 cada afio. Ademas del saco, hay un sin fin de articulos que utilizan las fibras del bonote como material principal, entre estos se encuentran las esteras, alfombras, cepillos, jarcias, etc. Tambien es utilizado como material de las obras de calafateado y como material de relleno para colchones, cojines, almohadillas, etc. Pero en la actualidad la necesidad por la fabricaci6n de los sacos para fines de defensa nacional es tan enorme que no se puede abastecer la demanda en su debido tiempo. Tocante a la chireta, se puede decir otro tanto a su favor. Hay una infinidad de articulos confeccionados de la chireta ; desde el boton mas pequefio hasta las canastillas, bandejas y teteras, todos fabricados de la chireta. El mas import.ante sin embargo, es el uso de su carbon que tiene todas las perspectivas de ser el producto mas lucrativo entre los varios productos considerados como productos accesorios del coco. Desde que se ha conocido el coco, la chireta con todo el bonote, nunca ha prestado utilidad al hombre salvo su uso como combustible de la tradicional "bibinquera" durante las Pascuas de Navidad y ocasionalmente en la cocina del hogar en defecto de la acostumbrada lefia cuando falla de suministrar el lefiador. Pero desde que estall6 la guerra mundial en el afio de 1914, cuando la barbarie arraso una vez mas la tan asolada Europa, culminando al uso de los gases mortiferos, la chireta surgi6 elegido entre el caudal residuos del coco como material adaptado para la producci6n del carbon activado de las mascaras contra el gas. Desde entonces el carbon de la chireta ha sido y seguira siendo un elemento principal en el conjunto de ese artefacto conocido por mascara contra el gas y con ello la chireta ha efectuado el salto de registro, de la basura a las alturas de la importancia por ser material de vital uso tanto en el campo de batalla como en el campo de! mercado comercial. La Corporaci6n. por tanto, cuenta con esto un campo preparado para la disposici6n de una buena parte del carbon de chireta filipina. En verdad se han recibido pedidos por mayor, en anticipaci6n a los planes de la Corporaci611 de explotar est.a industria en gran escala. A pesar de las inconveniencias que ha causado y sigue causando al presente las guerras actuales, entorpeciendo los planes trazados por la Corporaci6n, particularmente lo que respecta a la adquisici6n de maquinarias, pronto entrara en operaci6n el ramo de la producci6n de electrodos, grafitos, pilas secas, etc. donde se utilizaran grandes cantidades de carbon de chiretas. Con el continuo desarrollo de la electricidad, particularmente en el ramo de la radio, estos articulos estan destinados a desarrollarse en una escala proporcional, y de consiguiente hacen de! carbon de la chireta una materia prima de perspectivas excepcionalmente lucrativas. He ahi los dos nuevos productos del coco creados por la Corporaci6n con trazas evidentes de adquirir ventajas en Ios mercados domesticos y extrangeros. (('on ti1111a a la pagi.11a 63) - EN MENOS DE UN ANO LA NACOCO HA OBTENIDO MARCADOS Y CONCRETOS LOGROS En un discurs<J prnunc-1'.ad<J rcc-ientem.ente en 11n programa de radio dado en su honor, el nuevo Gerente General Auxiliar, Dr. Conrado Benitez, ha e.r pue.c;to los marcados y concretos logros que la National Coconut Corporation ha alcanzado en menos de un aiw. En SU discurso el Dr. Benitez e.1~plic6 los objeti vm: de la Corporaci6n dicien.do: "Deseo dar las gracias a la administraci6n de la radio donde se disemina este programa en mi honor dandome Ia oportunidad de poder decir algunas palabras sobre los objetivos de la Corporacion Nacional rlel Coco. "Al principio, permitanme expresar publicamente mi gratitud a Su Excelencia, el Presidente de Filipinas, por asignarme a la Corporacion Nacional del Coco dandome una oportunidad de servir a la industria cocotera. Considero esta asignacion un privilegio, y espero sinceramente ser digno de la confianza depositada en mi. "Los objetivos de Ia Corporacion Nacional del Coco estan especificados en una Jey de la Legislatura (Ley No. 518 del Commonwealth) y pueden ser clasificados como sigue : "Primero, mejorar la copra filipina por medio del establecimiento y operacion de resecadores de copra; "Segundo, para efectuar el reajuste de la industria cocotera en una situacion independiente de las preferencias comerciales en los Estados Unidos por medio de la utilizacion de los productos accesorios y el establecimiento y operacion de centrales cocoteras para ese proposito; y "Tercero, la extension de prestamos sobre produccion a los plantadores de coco y productores de copra. Logros nwrcados y concretos en m.enos de un aiio "Es aparente que la Corporacion Nacional del Coco es una entidad creada por Jey para ciertos propositos especificos y Jimitados. No es identico a las corporaciones de negocios ordinarios cuyo objetivo principal es adquirir ganancias. De hecho no esta autorizado nl siquiera para comprar y vender copra y crear ganancias de esa corporaci6n comercial. Talvez el nombre "National Coconut Institute" (Instituto N acional del Coco) podria haber sido adoptado para expresar sus objetivos. Tal como esta, la Corporacion Nacional del Coco es el instrumento creado por el gobierno para el proposito de ayudar a la industria cocotera y reajustar la misma a una situacion independiente de las preferencias comerciales en los EstaPage 56 dos Unidos. "l Como se ha esforzado la Corporacion N acional del Coco a llevar a cabo los objetivos a ella asignados por el gobierno? No abusare de vuestra paciencia citando cifras y estadisticas, pero deseo simplemente, sefialar que en la ejecucion de los trabajos as~gnados a ella, la Corporacion, en menos de un afio, tiene a su credito marcados y concretos logros. "En relaci6n con el primer objetivo, cual es, el mejoramiento de la copra, tieBe organizadas escuelas y centrales del Coco en varias partes de Filipinas en donde se han construido varios tipos de resecadores modernos que hoy estan en operacion. De la misma forma, por medio de Ia ayuda financiera y tecnica de la corporacion, los plantadores particulares han construido resecadores de copra y estan en la actualidad produciendo mejores calidades de copra para el mercado. Asi que, la primera obra asignada a la corporacion se esta llevando a cabo actualmente a paso acelerado, para que Ios plantadores pequefios puedan ver las ventajas demostradas por las resecadoras modernas, y estos se animen a adoptar los metodos modernos. Mi apelacion es que mas y mas plantadores deberan decidir en la alteracion de sus metodos de resecar copras y tomar ventaja de la ayuda financiera y tecnica de la Corporacion Nacional del Coco para habilitarles a mejorar sus productos. Un reto a la capacidad del pueblo filipfrw "En Jogro del segundo objetivo, cual es, la utilizaci6n de los productos accesorios, es realmente un reto a la capacidad de nuestro pueblo. Digo un reto a nuestra capacidad, porque es una prueba para nuestra habilidad a adoptarnos a un ambiente que cambia, un ambiente que exige habilidad cientifica. Estamos ungidos a utilizar los productos accesorios del Coco. Un requisito esencial a esa utilizacion, es la experiencia y conocimiento cientifico. Es muy alentador el que nuestros cientificos ya han conseguido producir nuevos productos accesorios del coco. En nuestras escuelas y centrales llevamos a cabo demostraciones que ademas de la copra, la carne del coco .puede tambien producir articulos comerciales utiles como la manteca, jabon, mantiquilla, glicerina, leche de coco y aceite no solamente para combustible, sino tambien para la comida. Del bonote, se ha hecho posible la fabricacion de tejidos en escala comercial tales como sacos que estan en gran demanda debido a la actual emergencia, jarcias y tejas compuestos de fibras de bonote y asbestos. Del polvo extraido del bonote, el cientifico ha conseguido producir tablones plasticos (plastic board). Y de la chireta, carb6n, juntamente con el preservativo de la madera son tambien fabricados en escala comercial. Del carbon de chireta tambien es posible fabricar productores de gas AUGUST, 1941 Fotografia tomada en Malacanan en ocasion al juramento de cargo del nuevo Gerente General Auxiliar, Dr. Conrado Benitez. De izquierda a derecha aparecen: H. G. Henares, Comisionado Jose Gil, Gerente Auxiliar Benitez, Secretario Vargas, Gerente General Rodriguez, Dr. Jose Fabella, Diputado Lavides y Diputado Abellana. y electrodos para pilas secas. El guinit ya es muy conocido como material para sombreros y capacetes. Tengo mencionado solamente algunos de los mas importantes productos accesorios de coco que la Corporaci6n Nacional del Coco piensa p1•oducir en mayor escala para satisfacer a las demandas del pais y del extranjero. Es el proposito de esta corporaci6n tomar ventaja del servicio rle las otras unictades del gobierno dedicadas a las investigaciones cientificas hacia ese fin que, tan pronto como una investigaci6n sobre el producto especifico del coco se haya actelantado mas alla del periodo del laboratorio, la Co11)Qraci6n Nacional <lei Coco estableceria sin perdida de tiempo una filbrica industrial adecuada para la producci6n de cada articulo para consumo comercial. El 1objeto es r.on.~l-'g11ir In 1·elwbilitrici611 cconomica "Esta corporaci6n en su afan de poder cumplir con su cometido, est.a dispuesta a dar ayuda a las investigaciones especificas sobre productos accesorios de! coco llevadas a cabo por otras unidades del gobierno. Me doy cuenta del valor de la industrializaci6n cientifica, y creo que todo aliento y cooperaci6n debera ser extendido a los cientificos en sus esfuerzos de poder utilizar los varios productos accesorios de! coco. Tambien me doy plena cuenta de! valor de la cooperaci6n y, hablancto en nombre de la Corporaci6n N acional del Coco, deseo manifestar que estamos preparados plenamente para extender nuestra cooperaci6n a las otras agencias de nuestro gobierno mientras imploramos identica cooperaci6n de ellos. "En relaci6n con el terce1· objetivo de esta corporation, cual es, la concesion de prestamos sobre cosechas a los plantadores de coco y productores de copra, deseo simplemente expresar que la liberalidad y prontitud caracterizan nuestra norma, pero debera ser recalcado, que Ios prestamos sobre producci6n son solamente corolarios a los otros objetivos de esta. corporac10n Estos son concedidos liberalmente y con prontitud a aquellos que estan en la actualidad dedicados a mejorar su copra o en producir productos accesorios de! coco. En conclusion, deseo dejarles la impresi6n de una idea fundamental-que la corporaci6n Nacional del Coco es una de las agencias instrument.ales de! gobierno para rehabilitar la economia de Filipinas, y que bajo el caudillaje que inspira Su Excelencia, el Presidente Manuel L. Quezon, estas agencias deberan poner en correlaci6n sus respectivos trabajos para la consecucion de los objetivos comunes. De su parte, la Corporaci6n Nacional de! Coco esta empe:ii.ada a contribuir su participacion de la responsabilidad a la labor vital comun de rehabilitar la economia de Filipinas. Page 57 LOS PREST AMOS SOBRE COSECHA UNA BENDICION A VISO SOBRE PREST AMOS A BASE DE COSECHAS Desearnos inforrnar al publico en general y a los plantadores de coco en particular que nuestro personal de oficina trabaja mas tiempo de lo ordinario para despachar las solicitudes de prestarnos sobre cosechas. Se da preferente atencion a las solicitudes y los solicitantes quedan por la presente avisados que no tienen necesidad de venir a Manila para perseguir con ahinco sus asuntos. Ellos incurriran gastos innecesarios en la trasportaci6n y alojarniento durante su estancia en la ciudad. La oficina de la Corporacion Nacional del Coco avisara a todos los solicitantes por correo de cualquiera acci6n que se haya tornado de sus solicitudes. Se advierte de nuevo a los solicitantes que no hay necesidad de ernplear los servicios de abogados o interrnediarios para la aprobaci6n de sus solicitudes. Todas las solicitudes son juzgadas de acuerdo con sus rneritos. MAXIMO RODRIGUEZ Gerente General E L Departamento de Prestamos Sohre Cosechas, es una actividad recientemente creada por la National Coconut Corporation. Con su establecimiento se espera que habra un cambio de aspecto econ6mico en las regiones cocaleras al igual que cuando se dieron a conocer los primeros resultados de Ia industrializaci6n del coco. Si bien esta pequeiia ayuda tiende hacia en camino de la rehabitaci6n de Ii! industria cocalera de! pais, resulta una bendici6n para Ios pequeiios plantadores por tener donde acudir para mejorar su situaci6n que por mucho tiempo se ha ahondado debido al bajo precio de la copra. Al par que los plantadores de coco han seguido paso a paso el desenvolvimiento de todas las actividades de la Corporaci6n, para ver hasta donde Bega el esfuerzo de! gobierno para mejorar sus condiciones financieras, los dirigentes de esta empresa por un !ado han estudiado la forma para que la ayuda fuese mas directa al plantador en vez de ser de un modo indirecto como han calificado los otros procedimientos. Pero todo este afan resulta baladi si no ya acompaiiado al deseo de mejorar la calidad de la copra, que es el eje principal, la ~ase mas bien de toda esta nueva tarea que se brmda a los plantadores sin distinci6n con tal que cumplan las reglas y demas procedimientos que ha establecido el Departamento de Prestamo. Page 58 Las reglas y regulaciones que gobiernan la concesi6n de Prestamo Sohre Cosecha, se dan a continuaci6n: (a) Es esencial que el solicitante haga constar el prop6sito o prop6sitos por los cuales se solicita el prestamo a fin de proporcionar a la Corporaci6n Nacional del Coco una base que determine si el prestamo es un prestamo de producci6n de buena fe. Cualquiera desviaci6n de! fin o de los fines declarados en este formulario dara lugar a la rescisi6n de! contrato. (b) La solicitud debera estar acompaiiado por una informaci6n posesoria, Titulo Real o Titulo Torrens, o declaracion de! impuesto de! terreno sobre el cual se hallan las cosechas que se ofrecen como garantia. Si el terreno esta hipotecado, una copia certificada de la hip6teca debe someterse. Si el solicitante posee el terreno en su capacidad de arrendatario, una copia certificada de! arriendo debe someter. Si el solicitante es miembro de una Asociacion Cooperativa del Coco, debera asimismo someter poi· escrito el consentimiento de la asociacion para el prestamo. (c) Los gastos de inspecci6n seran sufragados por el solicitante quien depositara una cantidad suficiente para cubrir los necesarios gastos actuales de! Inspector de Prestamos Sohre Cosecha. Cualquier exceso de! dep6sito sera devuelto al solicitante en cualquier momento. ( d) Si fuese concedido el prestamo, este no de! setenta por ciento de! valor de las garantias ofrecidas al tiempo de la aprobaci6n de la solicitud. Si la plantaci6n esta gravada, de! prestamo no excedera de! sesenta por ciento de! valor de las garantias ofrecidas a la discreci6n del Gerente General. ( e) El prestamo sera para un periodo que no excedera de un aiio desde la fecha de la aprobaci6n de la solicitud. Al deudor se le permitira hacer pagos parciales durante la recolecci6n de cada cosecha. En casos de calamidad, fuerza mayor, o cualquier otro suceso imprevisto, el Gerente General puede a su discreci6n, conceder al deudor un periodo adicional que no exceda de seis meses para pagar el prestamo. ( f) El prestamo ganant interes al ti po de 6% al aiio. Todas las cantidades adelantadas por la Corporaci6n Nacional de! Coco ganaran asimismo 6% de interes al aiio. (g) El prestamistas en cualquier tiempo que haga la recolecci6n debera depositar sus cocos, copra o productos del coco, en una bodega afianzada o en un camarin que sera designado por la Corporaci6n Nacional del Coco. Las garantias asi depositadas pueden ser aceptadas por la Corporacion N acional de! AUGUST, 1941 Coco como pago de! prestamo cuando llegue la fecha de! vencimiento. En ta! caso deheran ser avaluadas de acuerdo con el valor de! mercado al tiempo de la entrega y ta! porci6n de! mismo como fuese suficiente para pagar el plazo vencido sera aplicada al pago de! prestamo. (h) La solicitud se presentara al Departamento de Credito de la Corporaci6n Nacional de! Coco para su examen y verificaci6n, despues de los cuales la solicitud sera enviada al Contralor quien ordenara la inspecci6n e investigaci6n de la garantia y/o garantias ofrecidas. Los gastos por la inspecci6n seran sufragados por el solicitante quien depositara una canti-dad suficiente para cuhrir los actuales gastos necesarios de! Inspector de! Prestamo Sohre Cosecha. Cualquier exceso en el dep6sito sera reintegrado al solicitante. El Inspector de Prestamos Sohre Cosechas sometera su informe al Departamento de Credito a tiempo y sin ninguna dilaci6n. El Departamento de Credito enviara entonces sus recomendaciones a la oficina de! Secretario-Tesorero para la aprohaci6n de! Gerente General o a la Junta Directiva. Prestamos que no exceden de f'5,000 estaran dentro de la discreci6n de! Gerente General. Los que excediesen de esta cantidad seran actuados por la Junta Directiva. ( i) En caso de la renovaci6n de! prestamo, la rellenaci6n de una nueva solicitud y reinvestigaci6n de las garantias seran dispensadas; pero la ejecuci6n de un nuevo contrato de Venta con Derecho de Recompra sera requirida. COMPLIMENTS of TAN TUCO GROCERY STORE WHOLESALE & RETAIL Grocers, Hardware, School and Electrical Supplies etc. Tan Eng Tiak Manager Talavera Corner P. Gomez St. Tel. 161 Saroiaya, Tayabas Compliments of PINEDA & AMPIL MFG. CO., INC~ 997 M. de Ia Industria Binondo, Manila Tel. 2-15-93 • ·Manufacturers of the well knm'\'n waterproof. fire-proof and insects-proof "PAMCO BOARDS" used for ceilings and partitions of buildings. Compliments of a National Coconut Corporation Supplier Una Reseeado1•a Portatil Domestiea Por PEDRO A. DAVID Colegio de Agricultura, Universidad de Filipina.~ Por cortesia del Servicio de Informacion de la Universidad de Filipinas ( Traducido al Ca.stellano) S E ha prestado at.encion especial para el mejoramiento de Ia cahdad y la reducc1on del costo de producci6n de la copra filipina asi como el mejoramiento de la calidad y reducci6n del costo de producci6n de Ia mayoria de Ios productos agricolas e industriales. La preparaci6n de Ia copra de calidad estriba grandemente sobre la utilizaci6n de una resecadora satisfactoria. Del mismo modo, el limite minimo al cual se podria reducirse el costo de la resecaci6n de Ia copra, depende del costo de Ia resecadora y su operaci6n. El tipo de la resecadora de copra descrita en este articulo ha sido hallada satisfactoria desde ambos puntos de vista; calidad de Ios productos fabricados y economia. en la producci6n. Las plantadores de coco deberim interesarse de este tipo de resecadora. Se han confeccionado varios tipos de resecadoras de copra, tales como la Chula, la Cooke, la del Colegio de Agricultura, la McCord, la Tan, y la Villegas. Todas estas ban sido sometidas a prueba en el pais, y cada una reclama ser un adelanto sobre el rnetodo anticuado del TAP AHAN con el cual se efectua el resecamiento por rnedio de fuego directo. No obstante haber sido mejorado grandernente el procedirniento de la resecacion de la copra, aun queda rnucho que hacer para llegar a la perfeccion. Respecto el tipo de la resecadora presentada en este inforrne, puede que este no produzca el producto de alta calidad deseado, pero puede servir de base para una resecadora de copra mejorada y mas eficiente. Un caracteristico de esta resecadora de copra, es la de ser portatil; todos los dernas tipos rnencionados mas arriba son fijas. Ha sido disefiada para ser trasportada en medio de una plantacion cocalera. Asi que, la trasportacion de todos Ios cocos, tal como se hace en el caso de las resecadoras fijas, es eliminada; solarnente el producto fab;·icado que se extrae de la carne del coco, necesita ser trasportado, y Ios residuos (bonote, chireta, etc.) que constituyen de 81.8 hasta 84.2 por ciento del coco pueden ser utilizados corno combustibles 6 abandonados en el lugar. El tipo portatil de la resecadora de copra puede construirse con facilidad y es economico tanto en su construccion como en su operacion. El costo de los rnateriales que se necesitan en la construcci6n de una resecadora del tamafio que aparece en la ilustraci6n es como sigue: 24 Iatas de petroleo vacias @ P0.15 P3.60 13 cajones de petroleo vacios @ P0.20 . . . . . . 2.60 26 pies de madera ( 6' x 6" x 1") (ii, P0.08. . 2.08 23 pies de cabilla de 1/4" @ P0.20 Kl. . . . . 0.27 40 pies cuadrados, tela metalica 1·1/2cm., malla @ P0.05 . . . . . . . . . . . . . . . . . . . . . . . . 2.00 1 kilogramo de clavos 0.20 Page 60 ·1 ruedas neJas tcmadas de los cortadorfo's de cei;ped inserviblPs, tq· P0.25 . . . . . . . . 1.00 Total ......................... P12.18 La resecadora consiste de dos compartimientos: uno esta debajo y el otro esta encima del nivel del horno y camara de gas caliente. En cada uno de los compartimientos resecadores se halla colocada una bandeja resecadora que se puede sacar libremente que haya necesidad. El fondo de las bandejas esta hecho de tela metalica para permitir la circulacion libre del aire caliente. Las aberturas de descanrn no son hermeticas, para que el aire del exterior pueda introducirse y tenga contacto con la superficie de la copra recalentada. Los muros y la base de la resecadora son de rnadera; los bandejones son de marcos de madera y fondos de tela metalica; el tejado, el homo, la camara de gas caliente y la cheminea, todos estan construidos de latas de petroleo vacias; y las ruedas son ruedas viejas tomadas de cortadores de cesped inservibles. La capacidad de la resecadora, la cual mide 2.10 metros de largo, 1.00 metro de ancho, y 1.40 metros de alto, es de doscientos cocos. Segun observaciones hechas en el Colegio de Agricultura, se necesitan de 18 a 19 horas para resecar 100 "cakes" de copra, consumiendo en el horno como combustible 75 bonotes enteros y 25 chiretas enteras. Esta cantidad de combustible es suficiente para mantener una temperature de 35.5"C. hasta 6l"C. dentro de la resecadora. La calidad de la copra producida en esta resecadora podra clasificanie como de primera claBe 6 sea la clase designada como "resecada". De los 22.2 kilograrnos de copra producida de 100 cocos, 19.2 de kilogramos fueror. hallados, limpias y blancas, y solamente 3 kilogramos fueron halladas algo coloridas. La humedad puede reducirse hasta el 3.1 por ciento. J AU<mS'I', 19-11 STA. CECILIA SAWMILLS • MANUFACTURERS OF PHILIPPINE HARWOOD • Tomas B. Morato PHOP. ( 'EN'l'HA 1, < >FFI< 'I<:: 'l'.-\(il\ AW . .\\' AN, 'I'.-\\' A BAS , . . . )) .. · .·· .· . ( DR. N. HIDALGO Ut'llPl'll I :\In nagt•r • :\1:\XIL . .\ OFFICE: Maritima Bldg. 121 Da.smnriiins Te-IPphone X os. 2-31-ti6 2-48-21 • NA COCO ADV. A.RT• Page 61 Ha sido nombrado Gerente General Auxiliar de la National Coconut Corporation, el que hasta hace poco era secretario auxiliar de! Presidente de Filipinas, Dr. Conrado Benitez. Ha terminado sus estudios en la Universidad de Chicago con el titulo de Bachiller en Filosofia y Letras y bachiller en Leyes en la Universidad de Filipinas. Ha sido Decano de! Colegio de Comercio o Administracion en esta ultima institucion y mas tarde Decano del Colegio de Artes Liberales. En 1919 fue miembro tecnico de la :t\1ision encabezada por el Presidente Quezon y por el Speaker Osmena. Ayud6 en los estudios del Carnegie y del Rockefeller Foundation y dos veces fue miembro en la conferencia de! Institute of Pacific Relations y miembro de la participaci6n Filipina en el Joint Preparatory Committee on Philippine Affairs, nombrado poi· el Presidente de Ios Estados Unidos. En la National Constitutional Convention, fue chairman del Comite de Industria y miembro de los otros comites, instrucci6n publica, y defensa nacional. Actualmente es miembro del Historical Research and Markers Committee, Board of Indeterminate Sentence, Pardon Board, Philippine Economic Association y del Consejo Ejecutivo de la Philippine Academy of Social Sciences, representante de Filipinas en el World Alliance for International Friendship, secretario y director del Philippine Coconut Planters' Association, consejero del International Club de la Universidad de Filipinas y organizador del International Relations Club of the Philippines. Fue un tiempo presidente del Jose Rizal College y socio del Bufete Abad Santos y Benitez. Siendo hombre de letras y escritor ha escrito varios libros como la Historia Filipina, Economic Development of the Philippines, Philippine Civics y coautor del A History of The Orient. No siendo politico profesional, el Gerente General Auxiliar Benitez ha obtenido en el escrutinio final de los periodicos TVT 976 votos para el cargo~ de senador. Mr. Paul P. Steintorf, comiaionado comercial americano de los Estados Unidos, ha enumerado Jo:-; siete futuros desenvolvimientos economicos de Filipinas como sigue: I. Un cambio notable en la naturaleza y direcci6n <lei comercio de exportaci6n con mayor enfasis en materiales estrategicos y con una dependencia mayor del mercado de los Estados Unidos. 2. Una creciente dificultad se expcrimentara en la consecuci6n de muchos productos de importaci6n dePage 62 bido a las condiciones de guerra en algunas partes. 3. Mayor restricci6n del gobierno sobre los precios, y posiblemente un control radical se ejerza por el mismo gobierno para poner coto al alza de precios y evitar el agiotaje. 4. La probabilidad de que el gobierno de Filipinas se vea en la necesidad de extender ayuda a las industrias que han sido adversamente afectadas por la guerra. 5. Introducci6n de cambios en la produccion de varios productos de primera necesidad a fin de afrontar las circunstancias reinantes. 6. Estimulo para los fabricantes locales a fin de poder sustituir los suministros que ya no pueden obtenerse del extranjero debido a la guerra. y asegurar la politica de propia-suficiencia. 7. La posibilidad de que haya inflaci6n como resultado de los precios excesivos y de la escasez de productos. Se nota cierto entusiasmo de entre los duefios de cocales de mejorar la calidad de su copra por medio de un resecador moderno. Cuando et'te interes cunda entre los plantadores, entonces el sistema del "tapahan" habra pasado a la historia. Nuestras actividades durante estos tres meses pasados en relacion con la fabricaci6n de sacos por medio de Ia estopa de! bonote, se ha suspendido temporalmente debido al alto costo de la producci611. Nuevos planes y estudios se estan haciendo para mejorar la calidad de las ti.bras. Anualmente importamos jute para la fabricaci6n de sacos por valor dl· f'4,000,000, pero tan pronto como Sl obtenga resultados satisfactorios los experimentos que se esta11 haciendo actualmente, no solamente dejaremos de importar dicho material sino que nuestro paiH He ben"ficiara grandemente por la nueva industria. Los siguientes son los ewe estirn al frente de nuestras sucursaleH en provincias: D. Jesus Montenegro, Gerente de Sucursales de Bisayas y Mindanao, con oficina central en la Ciudad de Cebu. Hector Palma, Superintendente, Lag-una Coconut Central, Alaminos, Laguna. Moises Kalaw, Superintendente, Negros Oriental Coconut School, Ayuquitan, Negros Oriental. Pedro Pica, Superintendente, Sariaya Model _,AJ41 ,/ t.Q'ol, Sariaya, Tayabas. Marcelino Garcia, Superintendente, Pangasinan conut School, San Carlos, Pangasinan. Pedro Madrigal, Superintendente, Marinduque Coconut School, Boac, Marinduque. Conrado Morente, Superintendente, Mindoro Coconut School, Calapan, Mindoro. Jose Alvarez, Superintendente, Coconut Central Company, Atimonan, Tayabas. LOS PRIMEROS LOGROS •.• (Cmzfi.-nuadon de la pagina 5J) l\'Iientras estos logros pueden considerarse como pasos agigantados de la Corporacion hacia Ia meta, que es Ia completa rehabilitacion de la industria cocotera, sus dirigentes lejos de reposar sobre sus Jauros, no se detienen ni por un momento y estan resueltos a sacar partido de todos Jos materiales asequibles del coco, desde la yema de sus hermosas frondas hasta la punta de sus recios raices. En este punto particular, aplaudimos los esfuerzos desplegados por los tecnicos industriales y por los tecnicos alquimistas empleados todos por la Corporacion. En las escuelas para industrias caseras establecidas por la Corporacion, los tecnicos indust.riales no cesan de crear articulos ingeniosos dignos de admiracion, mientras por su !ado les alquimistas tecnicos en los laboratorios de la Nacoco no cesan en sus trabajos de estudio e investiirncion descubriendo metodos ventajosos para los diversos procedimientos adoptados para la fabricacion del aceite, de la copra, del carbon d·e chiretas, la extraccion de fibras del bonote y demas productos accesorios del coco, asi como el descubrimiento de nuevos productos obtenibles de esta maravillosa palma. En las escuelas de industrias caseras son de interes la:1 creacionlitl de diversos articulos originales, productos verdaderos de ingenio, como los articulos de fantasia hechos de chireta; entre estos se encuentran platillos, tazas, azucareras, ceniceros, teteras, canastillas, bandejones, alfileres, botones, etc. ; de las hojas se conf eccionan sobreros, bolsos, abanicos, carpetas, etc.; de Jos palillos que se sacan de las hojas se confeccionan canastillas, fruteras, etc.; de! "guinit" ( t(jjido que :-wstiene las palmas tiernas) se fabrican los capacetes ahora muy comunes en el ejercito, en la costabularia y en el cuerpo de policia ; del tronco se confeccionan mobiliario, cuadros, bandejones, etc. En cuanto respecta al ramo culinario de las indust.rias caseras, hay una infinidad de confecciones culinarias que resultari~ una letania interminable el nombrarlas todas. Para el beneficio del publico se han impreso folletos de recetas culinarias que abarca numerosisimas confecciones culinarias del fruto y de la yema del tronco del coco. Por parte de los tecnicos alquimistas, mucho se ha logrado tanto en rn·ocedimientos como en los traba. jos · dt>, exploracion sob re nuevos productm1 con bu en as perspectiV.'l3 dP ser explotadas en el campo comerciai.. Dicho sea de paeo lfU<.> PU. esta empresa particular, mucho ha contribuido el h!l1ro ctc ~iencias qu~ rotabora con la Corporacion N acional del Coco en sus pesquisas en el campo industrial del coco, con mencion especial al Dr. Vicente G. Lava quien mas empefio ha prestado a todo cuanto sea de interes para Ia ind~stria cocot~ra. Los siguientes son los logros parciales de los mcesantes estudios en el ramo : 1. Conversion del aceite del coco en combustible de motores de combustion interna, y en lubricante de maquinas. 2. Extracci6n de la harina del bagazo (sapal) del coco; harina propia para la confecci6n de confites. 3. Extracci6n de las proteinas de la carne del coco para Ia fabricaci6n del sustituto del "Toyo." 4. Preparaci6n del sustituto de la Jeche por medio del jugo 6 leche del coco, tant.o en forma liquida como en polvo. 5 . Tablones aisladores fabricados del polvo del bonote. 6. Tejas a prueba de fuego y calor, compuestas de fibras de bonote y asbestos. 7. Ladrillos de carbon de chiretas. 8. Tablones plasticos (plastic boards) compuestos de estopa de bonote. Ante estos logros alcanzados por la Corporacion Nacional del Coco en un lapso de tiempo marcadamente corto, no es mas que justo el reconocer y dar credito a quien credito se deba-a la Directiva encabezada por el gerente, a los consejeros tecnicos y al cuerpo de ingenieros. El dia 20 del presente mes de Agosto cumplira la Nacoco un afio de vida; dia de jubilo para el personal y directiva de la corporacion, asi como tambien para todos cuantos tengan interes por la existencia y exito de la mencionada entidad. Po_r parte nuestra, los espectadores de todo cuanto ocurre. en el ordei'l natural de los acontecimientos, con intel'es especial a todas las empresas y medidas constructivas que lleva a cabo nuestro gobierno, nos hacemos coparticipes en el jubilo, y compartiendo en la celebraci6n de tan fausto acontecimiento, extendemos nuestros mas sinceros Y cordiales parabienes y deseos por los continuos exitos en la empresa hasta que consigan la completa rehabilitacion de la industria cocotera. COMPLIMENTS of FLORENCIO REYES & CO. Importers & Distl'ibutors BUILDER'S HARDWARE WATERWORKS MATERIALS Main Office: 783 Aswwion, Manila 'rt•ls.--l-90-80-4-79-08--1-70-91 B1•anches: HRl'l'ison, Baguio-Tt>I. 328 .\. Ho1·l'o1trt'O, Ct"bu C'it3·-Tel. 458 Page 63The COCONU'r EVALUATING OUR WORTH ... (Continued from page -U '26,369.75 for educational campaign to propagate the home industry, or a total expenditure of P899,247.65, including all other miscellaneous items as of June 30, 1941. During the same ' Prospect of the Industry The Bureau of Science, the National Develop ment Company, and the Nacoco have under experiments for sometime new phases of period, it has made a total sales of the by-products of the coconut in the amount of P30,698.13, consisting mostly as follows : charcoal, hats, shells, copra, fiber, footwears, novelties, furniture, edible products, sacks, doormats, filters, handbags, wood preservatives, soap, lye, and various kinds of fiber products. At this writing, there are in operation schools in the following provinces : Tayabas (Sariaya and Atimonan) and Laguna. Others are being constructed in Capiz, Mindanao, Samar, Leyte (under construction), Cebu and Bi col provinces. In all these centers, coconut by-products are being utilized for useful home articles such as doorComptroller P. M. Gimenez the industry such as the manufacture of roof tiles, insulating boards, plaster boards, all from the coir fibres; activated carbon for, gas masks and decolorizing /'t•'poses, and electrodes for dry \ teries and flashlights, all from'.:. 1 coconut shell charcoal. Given mol"" time to complete these diff .ent experiments and with the_ oo!Jcy of our Board to produce .• em commercially at a minimum cost. I venture to state in all earnestness that the coconut industry will soon have a new lease in life, vigoroi~s and independent of our trade rellltions with the United States. 0" course, as we have previously mats, kitchen brushes, floor mops, hats, ladies handbags and fans, etc., coir fibers for ropes, sand bags, oil filters, and coconut shell charcoal. stated, the efforts of the corporation toward this end will be futile unless the public cooperates by patronizing the products of our industries. - Page 64 ~·/ / GREETINGS to His Excellency-from INDUSTRIAL MANUFACTURING CO., INC. Manufacturers of the well-known BAY AN LOOM, SPINDLES, and other industrial and household devices. 100% Filipino Enterprise Dedicated to the development and intensification of the country's household industries. Address communications to P. 0. Box 1913, Manila Compliments of s. STADLER CONSTRUCTION AND MECHANICAL ENGINEER Fm· The Coconut Industry I'. 0. Box I :lHO :\I a n i I a WE DO. • • E.rpcl'f Blue Pl'intc1·s. Nice }Jl'iut.~. s11ch 08: ,~ BLUE PRINT ~ AIR MAIL PAPER ~ BLACK & WHITE PRINTS ·>OZALID DRY WHITE __ ( )__ Try our Wickes Machine to give you good and quick service Reasonable prices offered. Free collections & Deliveries. Ring upMrs. P. I. Nazareno Manager If you want Rush Work call up theCentral Blue Printing Company Tt•I. 2-i2-:l!l-700-i02 l\lis1•ricorclia-Sol1•r Sta. ('ruz, :\lanila Dr. C. Jahrling's CALCIOGEN For Pulmonary Tuberculosis in all stages. Ideal, pleasant in taste, with high content of CALCIUM Botica de Santa Cruz Plaza de Goiti. Manila Formula: C'alx. :1:1 Gm .. Acicl Lact. 3:1 Gm .. Ac' Phos 43 Gm .. Acid Hydrochloric 13 Gm .. Arsei. triox 0.006;) Gm., Excipient ad. I liter Form Appro,·. :\o. 7269 COMPLIMENTS OF Smith Bell & Co., Ltd. Machinery Department P. 0. Box 31 I, 229-1 lth Street Port Area Hearl Office: Tradt> & Comnwn•t• Blclg-. 12:! Juan Luna Manila. P. I. Phones: 2-29-.i·' 2-:H -:~I I'. 0. Box :HI Branches: - CEBll - I LO I LO LEGASPI - TARAC'O - C'AGAYAN Atlantic Gulf & Pacific Co. ENGINEERS OF MANILA -oOoMANUFACTURERS CONTRACTORS MILL and MINE SUPPLIES Telephone 2-40-61 71-77 Muelle de la lndustria Manila, P. I. - - - - - - - - - - - - - - - - - - - - - - · For Top Performance! Mobilgas and Mobiloil Standard-¥ acuum Oil Company Philippines