The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Description: Manila : The Chamber, 1921-1976
52 v.
Issue Date: Volume XIV (No. 3) March 1934
Publisher: The American Chamber of Commerce of the Philippine Islands (Member Chamber of Commerce of the United States)
Year: 1934
Language: English
Subject: Philippines -- Commerce -- Periodicals.; Philippines -- Economic conditions -- Periodicals.
Rights
Place of publication: Manila
extracted text: ♦ E. M. SHELTON Jr. SI Coconut Oil and America’s Proposed 5-Cent Excise Tax A misguided attempt to aid the American farmer, harm rather than destined to benefit him By Mr. Shelton, whose business in copra makes him a keen student and competent expert on the subjects of fats and oils in the world’s markets, con tributes this timely analytical article ex clusively to the Jour nal. Reprinting, edi tors are requested to make their acknowl edgments to Mr. Shel ton. Ed. Other Features and the Usual Expert Reviews of Commerce The Pride of the Philippines If you are one of those men who delight in tobacco quality we urge you to smoke one of our PBGTAILS Famous Around The World Made by TABACALERA That’s One Way It Helps to Save GAS Then you have a ventilated, insulated oven to retain the oven heat. The top burners are improved so that further sav ings are made there. You won’t find these on your old range because they are all mod ern. That is why it will pay you to install one of these modern ranges. Why not call and let us show you more reasons for doing this; then place your order for early instal lation. MANILA GAS CORPORATION IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE MANILA HOTEL LEADING HOTEL IN THE ORIENT Designed and constructed to secure coolness, sanitation and comfort under tropic climatic conditions Provides every Western convenience combined with every Oriental luxury Finest Dance Orchestra in the Far East Management — HUBERT C. ANDERSON ----------------- --------- ---------- ----I Here’s how to get Manilas! Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby! List of Distributo rs fur nished upon re quest to— C. A. Bond Car Cards Fare Interior Exterior Dash Managers are constantly striving to increase the volume Back of Receipts Signs Bumper Signs I i Business of sales. Street-car Advertising is considered by many to be the best medium in the city of Manila for achieving this end. Include an appropriation for Street-car Adver tising when preparing your next annual budget. For rates and full particulars—call up A. B. Tigh, Advertising Manager Manila Electric Company Philippine Tobacco Agent: 15 Williams Street, New York City Collector of Internal Revenue Manila, P. I. MANILA S made under sanitary conditions will satisfy your taste 1 (Health Bulletin No. 28) Rules and Regulations for the Sanitary Control of the Factories of Tobacco Products. “Section 15. Insanitary Acts.—No person engaged in the handling, preparation, processing, manufacture, or packing of tobacco product or supervising such employment, shall perform, cause, permit, or suffer to be permitted any insanitary act during such employment, nor shall any such person touch or contaminate any tobacco products with filthy hands or permit the same to be brought into contact with the tongue or lips, or use saliva, impure water, or other unwholesome substances as a moist ening agent; ....”. I 134 San Marcelino Telephone 2-19-11 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 fcfcS^8 CAMERA The impossible made possible if you use a EXCLUSIVE AGENTS Botica de Santa Cruz Plaza Goiti, Manila, P. I. . PIO,000,000.00 „ 6,750,000.00 . „ 1,250,000.00 CORRESPONDENTS in all Parts of the World THE BANK OF THE PHILIPPINE ISLANDS (Founded in 1851) Authorized Capital . Paid up Capital . Reserve . . . BRANCHES in Cebu, Iloilo & Zamboanga HEAD OFFICE: Manila, P. I. General Banking Operations—Trusteeship Business Safety Deposit Boxes For Rent Cable Address: “BANCO” PEDRO J. CAMPOS President IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL United States: P4.00 per year Foreign Subscription: $3.00 U. S. Currency, per year Coconut Oil and America’s Proposed 5-Cent Excise Tax A misguided attempt to aid the American farmer, destined to harm rather than benefit him By E. M. Shelton Jr. Wilbur-Ellis Company: Insular Life Building, Manila Note:—Mr. Shelton, whose business in copra makes him a keen student and competent expert on the subjects of fats and oils in the world’s markets, contributes this timely analytical article exclusively to the Journal. Reprinting, editors are requested to make their acknowledgments to Mr. Shelton.— Ed. The excise tax of five cents per pound on coconut oil, approv ed by the House and now pending action by the Senate of the United States, raises so many questions of far-reaching importance and strikes so vitally at so many diverse and apparently unrelated interests, that it is impossible to treat the subject adequately within the limits of a short article. One can only attempt a brief sketch of the more important considerations involved. To name only partially some of those affected by this tax would be to call the roll of countless coconut planters in the tropics; of oil mills, bankers, importers, exporters, steamship lines, insurance companies, railways, soap factories, margarine factories, stevedores, warehousemen, weighmasters, • office employ ees, chemists, laborers and executives, all of whom come in contact with the stream of coconut oil somewhere be tween plantation and factory, and who derive nutriment in greater or less degree from this milk of the tropics. In view of all the ramifica tions of the question, one wonders at the temerity of men who would voluntarily set in motion such a train of possible consequences— with effects that were prob ably never sensed or dream ed—even to the extent of involving international rela tions and perhaps, eventually, threatening world peace. One can easily imagine wars being fought for far lesser stakes than an abundant supply of coconut oil. The most superficial study reveals that the tax is absurd and preposterous and an out rage to logic and good sense. Its avowed objects are: (1) aid the American farmer, and (2) raise additional re venue. As will be shown presently, it would probably do the farmer more harm than good, and as a producer of revenue it could not possibly yield more than a pittance. To appreciate fully how this tax would fail in its pur pose, one must take cognizance of the various “interchange able fats and oils”. This term is placed in quotation marks since it was coined by the late C. Rogers-Brown, to explain a certain degree of interchangeability between different oils of the same group and even in cases between oils of entirely dif ferent groups. The inter changeability is not always perfect and complete and in instances must be qualified considerably. Nevertheless it exists sufficiently to justify the appellation. Fats and oils move into three major fields of con sumption: (1) Edible, (2) Soap, and (3) Paint (drying oils). With the latter clas sification we are not con cerned here since coconut oil moves entirely to the first two groups. To illustrate this interchan geability, it may be cited that soap makers use coconut oil, palm oil, whale oil, various fish oils and miscellaneous greases which are interchan geable in varying degree and are therefore purchased and consumed in accordance with abundance and relative price. This will serve to illustrate interchangeability in the same group. Whale oil, which when hy drogenated, enters margarine in Europe, may also be used in soap, and illustrates inter changeability between oils of the edible and soap classi fications. It follows that such a tax, to be logical and scientific, would not simply single out coconut oil and the compara tively innocuous and unim portant sesame oil (a specialty 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March. 1934 ) ignore the supplies of oil with restricted usage) but would likewise include the entire list of imported fats and oils such as whale oil, palm oil, palm kernel oil and the various fish oils which at present enter either duty free or with duties far lower than the proposed coconut oil tax. Present duties on the chief imported foreign oils are as follow's: Palm kernel oil—One cent per lb. (Free if denatured; Cottonseed oil—Three cents per lb. Whale oil—Six cents per gallon. (Approx. $.008 per lb.) Palm oil—Free list Sardine, herring & pilchard oils—Five cents per gallon. (Approx. $.0067 per lb.) Palm oil is produced chiefly in Nigeria, Bel gian Congo and Sumatra. Total production in 1932 was 265,783 long tons. American imports in 1933 were 128,533 long tons, or considerably more than half of the average imports from the Philippines of coconut oil and copra combined. Whale oil, as is well known, is produced chiefly in the Antartic by large floating factories. In crease in production has been so rapid during the past few years that leading producers have resorted to quota agreements to restrict produc tion. The quota set for the 1933-1934 fishing season (now in progress) was approximately 350,000 tons, but thus far production has so far exceeded the quotas that in all probability it will come close to 400,000 tons. Present U. S. imports of whale oil are not large as this oil moves almost entirely to Europe on account of price, duty and other considerations. The coco nut oil tax would alter this movement tremen dously however and whale and palm oils especially, would move to the U. S. in greatly increased volume, to say nothing of fish oils, olive oil foots and all the rest. To single out coconut oil and to tremendous imports and potential < competitive interchangeable foreign oils, is equivalent to placing a dam ten feet wide in the middle of a hundred foot stream. The inevit able consequence is that the stream of foreign oils continues to flow around the dam and the whole scheme falls to the ground. With due regard for the danger of making positive statements about a complicated subject which may be influenced greatly by quotas, changes in tariffs and other artificial restrictions, it nevertheless seems certain that as the situation stands today, the chief beneficiaries of the proposed coconut oil tax would be not the American farmer, but foreign producers of these various com petitive oils. Even were the five cent tax levied on all the oils in question, it would still be a highly debatable matter whether the farmer would receive any material aid, but such a tax would at least have the saving grace of logic and consistency. (Since this article was written, Representative Knutson has introduced a resolution imposing the five cent tax on palm, palm kernel and soya bean oils. Whale, and other oils were not in cluded and no action has yet been taken by the Committee). Just why the chief benefit from the proposed tax should be passed along to foreign producers of palm, palm kernel, whale and other oils, at the expense of the Philippine producer who lives under the pro tection of the American flag is one of those things which defy all attempts at rational analysis. The further one pursues the sub ject the more one is driven to the conclusion that the farm element in Congress is suffering from a species of Philippine phobia. It is an ad vanced form of fanaticism which ignores reason and scient ific analysis and is fit study for the psychiatrist and student of abnormal behavior. It seems only necessary to mention the word Philippines and some of these gentry become apoplectic, or to paraphrase Tom Paine, “When the Philippines comes in the door, reason Rys out of the window”. This tax can only be explained in some such manner since it is an unprovoked and entirely gratuitous slap at the Philippines. COCONUT OIL VERSUS AMERICAN FARMER—The preceding paragraphs have shown why the American farmer would not bene fit from the tax. To complete the picture it can also be demonstrated why the present tax free movement of Philippine coconut oil does not hurt the farmer. Coconut oil is consumed in the U. S., by in dustries, approximately as follows: soap 70%, margarine 20%, candy and bakery trade 8% and pharmaceutical and all other uses 2%. The farmer’s imaginary quarrel is with the 70% of coconut oil going into soap and the 20% used in margarine. The remaining 10% could not possibly compete, so our discussion centers on soap and margarine. Let us first consider what fats and oils the farmer produces which might be injured by coconut oil competition. They are, (1) buttei from milK, (2) lard—from hogs, and (3' cotton seed oil—from cottonseed. Let it be noted immediately that these are all either edible or cooking fats and oils and do not go into the soap kettle. These fats and oils all enter consumption as food products and hence enjoy the highest possible price, which at once removes them from t he category of cheap soap oils and fats. Further more, they are by-products and their value is an insignificant fraction of the original value of the animal or crops from which obtained. For example: grease from a 200-lb. hog equals three pounds or 1-1/2% of the value of the hog, and oil produced from 7(M) lbs. of cottonseed equals 105 lbs. or S-1,’2% of the value of a bale of cotton. Philippine Coconut Grove These domestic fats and oils cannot possibly compete with the 70% of coconut oil which enters soap, for with insignificant exceptions they are all sold in the edible field and further more they dominate this field of consumption. A chart recently published by the Brookings In stitute shows graphically that butter, lara and cottonseed oil comprise in excess of 90% of all fats and oils sola in the edible division, the remainder being made up of small amounts of oleo oil and oleo stearine, corn oil, olive oil, peanut oil and about 2% of coconut oil as vegetable marg. Total manufactures of soap in the United States for the year 1931 (the latest figures obtainable in Manila) amounted to 3,126,909,000 pounds. This is big business indeed, but important as it is, the edible division of butter, lard and cotton seed oil is incomparably bigger, and it is in this second field, which commands a much higher price level, that the fats and oils of the American farm find their natural outlet. Tallow, a packing house by-product, is prac tically the only domestic fat used in soap man ufacture in any volume. This is true, first, because it is an essential ingredient,and secondly, because it cannot be utilized in the edible field of consumption. The percentage of coconut oil used in American soaps will vary between 15% and 25% of total soap making raw materials, depending upon the quality and type of soap produced) This relatively small percentage of coconut oil in soap is there for the simple reason that there is not a sufficient supply of cheap domestic fats and oils for soap making purposes, and for the addi tional reason that coconut oil is almost unique in its lathering qualities. Soap makers are una nimous in declaring that there is no effective substitute for coconut oil in respect to this facility for producing a lather. Palm kernel oil possesses the property in somewhat lesser degree, but due to European demand and higher price its use has, up to now, been restricted in the United States. The result is that for all practical purposes, the share of American soap business enjoyed by coconut oil is business which the American farmer could not get if he wanted to and would not take if he could. The 20% of all American coconut oil consumption which is represented by vegetable margarine, as indicat ed elsewhere, constitutes only about 2% of the entire business in the field of edible fats and oils. Not by any stretch of the imagination may this be considered a threat to the farmer. Actually, the only competition here—if you cares to call it competition—is with the packing house by-products, oleo oil and oleo stearine. However, this competition is limited and restrict ed since most of the farm states have already enacted state taxes against margarine containing coco nut oil and for the most part have a clear competitive advan tage in their own fields of distri bution. Margarine selling at 10 to 12 cents per pound can scarcely be termed a competitor of butter which retails at 30 to 35 cents per pound. Those who can,buy butter; those who can not, margarine. As well say that state laws should be enacted making it mandatory upon all buyers of automobiles to purchase Packards or Lincolns on the theory that Pords and Chevrolets are unfair com petition. And last, but by no means least, how would the American farmer have us pay for Philippine imports of American farm products? Exports must, pay for imports. The Philip pines is one of the finest markets remaining for such American farm C reduce as wheat flour, canned milk, utter, eggs, cheese, hams, bacon, edible oils, meat, apples, pears, vege March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 5 tables, oranges, lemons, grapefruits and other products too numerous to mention. The American farmer and his legally constituted representatives must learn the homely lesson that you cannot eat your cake and have it too. There is much worshiping of false gods in an economic sense. Among these is the apparent fetish that it is some sort of an economic crime to buy and the only merit lies in sales. There must be a change of heart if America is to survive as a trading nation. It is high time to embrace adult economic thinking and to realize the im perative necessity for mutuality and recipro city in trade. PROBABLE CONSEQUENCES—What is to become of the coconut industry should this bill be passed? The subject is complex and there are few precedents. An almost similar case comes to mind. In the years immediately preceding and up to the close of the World War a tremendous stream of oriental vegetable oils moved across the Pacific to enter the United States at Pacific coast ports, thence to be shipped in tank cars to packers,soap makers,paint manu facturers and refiners. This stream of vegetable oils served a vital economic function in replacing our diminishing domestic supply of fats and oils at a time when there was a critical shortage both at home and abroad. This vast traffic served to create a profitable business for the many hands through which it passed. Much of it was refined in transit and moved across the United States and on to Germany, England, France and other European countries. At the same time we sold these countries our own excess of lard, pork and cottonseed oil. In 1922, the Fordney-McCumber Tariff Act placed a prohibitive duty on these oils and their movement ceased abruptly. All profits and advantages to American manufacturers, middle men and consumers terminated forthwith and following the inevitable pressure of water seeking its natural level, this stream, suddenly diverted from its natural channels across the United States, now started moving in foreign ships and through foreign hands directly to Europe from such ports as Tsingtao and Dairen. As a result, we lost the former profits and much of our European market for domestic fats and oils to boot. We had inadvertently taught Europe how to do without our goods and services and simultaneously placed in her hands the means of satisfying her requirements. It would seem that history may repeat itself should this unfortunate measure become law and that some such similar diversion may take place. At present, whale oil, palm and palm kernel oil move largely to Europe. Under the coconut oil tax—and unless there is supplementary legislation—American coconut oil imports would decline sharply, while European imports would increase. To maintain the equilibrium, we in turn would take far more of the whale, palm and palm kernel oils now moving to Europe. This is not to imply that there would not be a net decline in world coconut oil consumption, but merely that there would be a certain degree of substitution. There would be some exchange with Europe, of coconut oil for whale and other oils—a bad bargain which would leave us the loser since we would give a better product than we received. The price of soap in the United States would increase sharply. How much is problematical and largely guesswork since the working out of interrelated forces and factors is complex. The first cost of coconut oil as a raw material would be tripled, while financing, insurance, distribution and all incidental services would be increased in proportion. At first glance this seems staggering, but further analysis leaves some ground for hope that the price per unit of coconut oil soap might still be within the reach of many. U. S. duties on foreign soaps range from 15% to 20%. Will the increase in price, resulting from the tax, exceed the duty barrier? The answer apparently is yes, as manufacturers’ estimates of the increased cost of soap range from 50% to 100%. In this event the American market would doubtless be flooded with coconut oil soap from Canada, Europe and elsewhere until such time as Congress could again plug up the holes by upping the duty on foreign soaps, which in turn would give rise to a new crop of readjustments; and so on. But it also appears fairly certain that Mrs. American Housewife will not give up her coconut oil soap without a struggle. Dofl’t forget the lathering qualities of coconut oil! It is doubtful if the consumer would now return to sinker soap. The feminine public has been educated for years to the use of a quick lathering, clean and inex pensive soap of highest quality which cleans the light silks and rayons of tne present time without destructive action. Much depends upon the attitude of the con sumer. If Mrs. Housewife simply refuses to take substitutes, then coconut oil will still find its way to the American market, no matter by what devious routes and despite the best (or worst) intentions of middle-western Congress men. The first shock would be the worst and our exports to America would probably dwindle to a fraction of the present total. This would be followed by a period of slow readjustment. Europe would almost certainly take more. Japan and Canada would increase their imports. The Philippines would have to go into the soap making business in dead earnest and equip itself to capture the oriental market. Tne recent gesture to sound out Russian possibilities is a step in the proper direction. There would be many shocks and dislocations but if we could survive the painful period of readjustment there would be considerable hope for the future. After all, world demand and world supply of fats and oils remain essentially unaltered. The chief change will be a dis ruption of the normal channels of flow and only time can cure that. Regardless of the tax, the writer is unwilling to predict the complete demise of the Consuls o/ the East and it would seem premature to talk of destroying producing trees as there are good and sufficient grounds for believing that after the readjustment period we would regain, in one way and another, most of the business lost. We trust however that these dire predictions and forebodings will come to naught and we still have enough faith in the good sense and spirit of fair play which motivate the present administration to believe that this outrageous injustice to the Philippines will die a-borning’. If there is any material that gives its consumer more than his money’s worth it is the RIZAL PORTLAND CEMENT The Builders Choice — Features of the RIZAL Portland CEMENT CCKIN6 FCK = ■ =IIAL VALUES Complete Lines of------Groceries Liquors States FreshFruits Vegetables CHOCOLATES Here is the Place ---- Also----DISTRIBUTING Famous & Healthful DAINTY= =BREAD Baked Fresh Daily MADRIGAL & COMPANY MANILA P. O. Box 254 Tel. 2-19-62 /Vashington Grocery 203-05 Echague • MANILA • Tels. 21717-8-9 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 41,000 Motor Vehicles on Philippine Highways Use of automobiles here trebled since 1923. How the law governing in stallment sales affects the agencies This year brings the Philippines the streamlined and semi streamlined automobile, an innovation making the present a good time to review the current automobile situation in the islands. Favored with data from the trade commissioner, the customshouse and the public works bureau, we are able to set out the growth of the automobile business in the Phil ippines in a few legible statistics by calendar years. Last year there were 40,656 motor vehicles registered in the Phil ippines, 24,865 automobiles, 15,237 trucks and 554 motor cycles. Among these were 3,156 new automobiles, 1,594 new trucks, 24 new motorcycles. Of automobiles, 97.9% come from the United States; of truck and bus chassis, 99.7%. The Philippines duty on motor vehicles from foreign coun tries is 20% ad valorem. This factor favors duty-free cars from the United States, though they sell on quality as well as price. Another favoring factor is the well established road building policy of the Philippines, main roads being' built by both the central and the provincial governments and minor roads by the towns out of special road and bridge funds including a bridge revolving fund of 1*5,000,000 reim bursable from tolls on new bridges until the cost thereof is recovered by the central government. There are also deterring factors affecting the Philippine automobile market. First among these is the dull and low commodity market throughout the world, reducing incomes here; second perhaps is the high cost of gasoline owing to the highway tax on it of 7.56 cents gold a gallon, causing it to sell even now, at the lowest base price in many years, at about 25 cents gold a gallon. The number of automotive vehicles in actual use (registration) in the Philippines in various calendar years beginning 1912 has been reported by the Automotive Division of the Bureau of Public Works as follows: Year Automobile.5> Trucks Motor cycles - Total 1912. 947 180 459 1,586 1913. 561 157 252 970 1914. 485 83 171 739 1915. 681 63 168 912 1916. 3,295 399 876 4,570 1917. 4,524 559 1,209 6,292 1918. 5,445 769 1,111 7,325 1919. 6,892 1,310 1,038 9,240 1920. 9,692 2,689 1,181 13,562 1921. 9,481 2,747 1,113 13,341 1922. 9,537 2,904 965 13,406 1923. 9,662 3,118 909 13,689 1924. 10,973 3,870 833 15,676 1925. 13,549 5,225 815 19,589 1926. . 16,239 6,541 758 23,538 1927. . ,18,547 8,283 767 27,597 1928. 19,791 9,552 703 30,046 1929. 21,341 10,365 574 32,280 1930. . 22,899 14,380 388 37,667 1931. . 23,373 14,131 385 37,889 1932. . 25,187 15,772 626 41,585 1933. . 24,865 15,237 554 40,656 Philippine Motor Vehicle Importations s Automobiles Trucks Motorcycles £ No. Inv. Value No. Inv. Value No. Inv. Value 1922 482 T 804,822 21 42,128 33 ? 14,408 1923 1,336 1,968,842 237 242,575 22,353 1924 2,039 2,835,059 684 707,316 47 26,978 1925 2,934 4,497,501 1,026 1,083,955 35 15,045 1926 4,002 5,145,800 1,478 1,528,967 49 22,071 1927 3,721 5,323,320 1,551 1,447,428 50 29,009 1928 3,805 5,670,306 2,232 2,926,500 40 22,6.50 1929 3,618 5,203,670 3,710 4,509,160 20 7,810 1930 3,231 4,613,066 1,970 2,570,847 58 33,873 1931 2,574 3.527,089 1,650 1,843,279 25 12,291 1932 2,648 3,240,186 1,936 2.062,189 2.444 1933 2,892 3,043,350 1,218 1,283,446 24 9,909 It will be noted from the table that the automobile market in the Philip pines is a steady one, last year’s market was, on the value basis, only about 40% below the peak year 1928; on the basis of the number of cars imported, 25% below. An equally steady market in the United States during the slump since 1928 would have provoked no crisis in the industry. The decline in the demand for trucks in the Phil ippines was slightly greater, approach ing 50%, because of the decline in the passenger carrying trade. Another table on this page shows the number of motor vehicles in actual - use in the islands from year to year since 1912 as tabut lated at the public works registration office. The total , in 1923 was 13,689, and last year 40,656; in 10 year, therefore, use of motor vehicles in the Philippines practically ’ trebled; where 1 car was on the road in 1923, 3 are on the road ' now. The year 1932, a hard enough year, was the peak of - all years to date in the Philippines in the registration of motor - vehicles, a total of 41,585: 25,187 automobiles, 15,772 trucks, 626 motorcycles. A recent favorable factor in the motor vehicle market here is the taxi. Taxis were first permitted by the utility t commission in 1930, when 10 were put on the streets of Manila. , Sixty-three were licensed in 1931, 190 in 1932, 546 in 1933. There are 2 classes, small and large. Large taxis, first in the field, now make a minimum charge of 15 centavos and their rates are 50% above the rates of the small taxis, whose mi. nimum charge is 10 centavos, Until a few months ago, large i taxis had to charge twice the rates of the small taxis. The most general demand is for the small taxis; among the 5 makes now authorized in this class by the commission, 3 are American makes. A case is pending to put cars of longer wheelbase into this class; if the point is conceded, additional American cars will benefit in the growing taxi market here. Taxis operating in Manila at the close of last year numbered 447. At that date there were 7 in Zamboanga, 49 in Iloilo, 40 in Cebu and 10 in Baguio. This business is bound to spread rapidly to other populous centers in the provinces. A law passed by last year’s legislature limits the seller of a motor vehicle to recovering the vehicle itself, on judgment for nonpayment. That is to say, the dealer-seller is not allowed a deficiency judgment. Dealers interviewed say that this law has tightened up credits somewhat; larger first payments are required, say 1/3 of the total price, and full payment within 18 months. But the law is not impregnable: only applying to dealers, the device of a finance corporation would evade it; and if automobile paper were discounted by a dealer at his bank, an agency handling similar bills in its ordinary routine business, suit by the bank might result in a deficiency judgment. But the law comes at a time when dealers are inclined to choose purchasers carefully, with the effect that in the automobile business the law is found generally acceptable. This because dealers in this market carry their own paper, as a usual thing, and resort but sparingly to discounting or use of the device of the finance corporation so common in the sale of cars at retail in the United States. There are no great barriers to material expansion of the Philippine market for American automobiles upon the return of business prosperity to the world at large. In Manila, 11,142 automobiles, 4,030 trucks and 262 motorcycles are registered. In Baguio, the other chartered city of the islands, 525 automobiles, 286 trucks and 13 motorcycles. Provincial registration is heaviest in the bonanza sugar prov ince, Occidental Negros, a total of 3,253: cars 1,991, trucks 1,254, motor cycles 8. March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 The New Deal In Sulu: Its Business Aspects A business man for lieutenant governor, and Fugate's experience at the head of things, augurs well Governor General Frank Murphy has recalled James R. Fugate from the United States, where he has been on leave of absence during 3 years, and reinstated him as governor of Sulu. It is recognized that Governor Fugate gave Sulu a first rate administration during the period he was at the head of its affairs. The work im paired his health, now restored. He returns to Sulu both with better health and more authority than he had when his work recommended him for the post originally. To understudy him and be the agency through which consistent policy may be continued, Frederick George Roth has been ap pointed lieutenant governor at large of Sulu. Roth’s antecedents in the Philippine service are similar to Fugate’s. Both have been school men and soldiers. Roth had two hitches at the schools, one prior, one subsequent to the World War, in which he was in the marine corps. He leaves a business position as a representative in the Philippines of the Columbia Rope Company (fac tories at Auburn, N. Y.) to reenter the government service; and he does so because the Sulu service attracts him. He has a bent for archeology and ethnology, has been interested all the time he has been in the islands in the problems presented by the minority peoples here. He is not now as familiar with the Sulu language as Fugate is, but knows something about it and will devote himself to mastering it: Murphy lays down the rule, a good one, that his appointees to executive posts among the minority peoples know the language spoken in their residencies. It is a good indication in a governor general that young men are attracted to him and approve his policies. It stamps those policies progressive. Murphy has given Sulu an entirely new administrative set-up with all authority rested in Governor Fugate. An nouncing his policy, matured since his arrival here, until late in February, he made it include Lanao and Cotabato; except that for these two provinces he has not made new appointments. Here is the gist of his order: “All heads of insular services in the provinces of Sulu, Cotabato and Lanao shall be assigned to or promoted within From Governor Murphy’s Announcement “The resources and agencies of the Philippine government must be put be hind the program of progress under con ditions that will assure its ultimate success. So far as conditions within these prov inces and the finances of the Insular Government permit, the Mohammedan Filipinos should be afforded opportunities for development equal to those given to the inhabitants of the other provinces through the public schools, the public health service, and all of the other agen cies through which the government serves the people. “In the administration of their respective services in these provinces, the several departments of the government should adapt their procedures to local conditions and select their personnel with special reference to the peculiar demands of the territory and the people to be served. “So far as is compatible with the main tenance of law anti order and with the attainment of economic, social and polit ical progress among the Moro people, our policy should be to utilize Moros as officials and employees in those communi ties where they predominate. “In a word, tnere must be a definite policy of attraction, • vigorously carried out. Our attitude must be sympathetic but we must insist upon obedience to the law by Moros as by others. The legal rights, the personal dignity, and the special culture and religion of the Moros must be respected. We must understand that furtherance of the social, political and economic progress of the Moros is the best guarantee of the eventual satis factory solution of their problem and the province only after consultation with the respective pro vincial governors; and all such officials shall serve on indefinite probation and be transferable out of the province without prejudice of record, upon the recommendation of the pro vincial governor.” Such plain language needs no amplification. Governors in Sulu, Cotabato and Lanao are very definitely to run their provinces, admin istratively; they are therefore to be held account able for what transpires in them, and blame for what goes wrong will lie directly against the governor concerned. If anything will provide Sulu good government, this should. Heretofore it has been possible to asperse a governor’s popularity, governors have therefore defensively built up personal followings: administration has been far from even-handed on occasion, so feuds and resentments have been provoked and fostered. In Sulu there has been a Sultan’s party; now there need be none. There has therefore been an anti-sultan party, if no more; now there need be none. Long ago the sultan’s acknowledged authority was limited to his primacy in the church, and now it ought to subside, gradually at least, to that status. The general problem in Sulu is complicated by schismatic defections. These should now be ailaved, everyone having to look to the gov ernor and he, in his turn, having to look to no one but the governor general in Manila. The real problem there is the material condition of the inhabitants, a problem of frugal husbandry. During a long period of diffused authority and uncertain executive tenure, industries among the Sulus have run down. They raise cattle, but have poor access to markets. They grow fruits, but have no good means of selling them. They have public lands to which no roads give access, where settlers are therefore at the mercy of the road agent, or where the long arm of revenge may reach him. Yesterday these people were sea gypsies and pirates, many of them are still smugglers. Today’s task is to fit them into peaceful lives ashore, and to protect their pearling grounds and shell fisheries. A delicate adjust ment is coordinating their land laws with the general land laws of the islands, their laws not recognizing private title. Sulu produces fine qualities of Manila hemp. Opportunity offers to bring more of this hemp into the export market. The people are adept at many crafts, notably weaving, carving, inlaying and engraving. If nothing more is done now than to nurse these crafts along, probably the traveling world will soon find interest in the gifted people who pursue them—a tourist lane may touch Jolo, the capital, and provide a market for such curios. In these, and in many other ways, business should gain from a firm, kindly and consistent Sulu policy such as Murphy’s order and appointments promise to establish. The order recognizes, as it. should, the good work done during Fugate’s absence by Governor .Arthur Spiller, who stepped into the executive breech from superintendency of the schools and will now return to that position. Vice Governor Ralston Hayden took the brunt of the work in formulat ing the new Mohammedan policy under Governor General Murphy, who charged him with its direct responsibilities. WE PART WITH A BOOK The following letter from W. S. Basinger, passenger traffic manager of the Union Pacific railway system, explains how the editor of this magazine is about to break a hitherto impreg nable rule of steady accretion, fair means or foul, and actually part with a book: Your letter of November 28 addressed to the Union Pacific at San Francisco has just reached me. I appreciate very m uch receiving the tear sheet from the Journal of September 1933, which carries an article entitled “The Railroad." Naturally I can sympathize with your interest in the railroad problem in the Philippine Islands. I believe it will be a matter of only a few weeks before our new streamline train will be completed ami be ready to be photographed. As scon as a good photograph is available, I will see that a copy is sent to you. The only one I could semi you now would be that of a scale model which would be very inadequate and I would rather wait and send you one of the completed train which would give you and your friends a much better impression of what the train really looks like. In the first paragraph of your letter you mention“Crofutt’sTrans-Continental Tourist’s Guide." I fail to find that our Advertising Department library contains a copy of this publication although we do have several copies of “Crofult’s Overland Tours”. They do not, however, contain a re production of the famous drawing of the driving of the golden spike at Promontory Point, Utah territory, on May 10, 1869. Your offer to send us your copy of the Tourist’s Guide is appreciated. If you care to do this we will see that it is given a permanent place in the Union Pacific Historical Museum. Gifts of this character have been made to us by a large number of people and that is largely the way in which our Historical Museum has been built up. If the book is sent please address it to me and I will see that it is properly taken care of. Yours very truly, N. S. BASINGER THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 Life Insurance in the Philippines Rides Depressinn Well 1932 registered an actual increase of business and 1933 partial figures are high. But the population is lightly insured Life insurance began in London in the 17th century with the underwriting of the life of the captain of a ship during a trading voyage abroad. In modern times it is a good index of the level of general prosperity in all countries where it is not compulsory. The Philippines are such a country. The life insurance negotiated here by the 7 companies engaged in this business, 2 domestic, 2 American and 3 foreign com panies during 1932 is that for which the latest full report from the insular treasurer in his capacity as ex-officio insur ance commissioner is available. Main statistical facts of this business are set out in the accompanying table, the 3 types of companies, domestic, American and foreign, grouped separately. The data are from the revised tabulation at the treasurer’s office. Life insurance enjoyed a slight increase in volume in the Philippines during 1932. The total in force at the end of the year summed P147,504,964, against 1*146,582,277 at the beginning of the year. The increase was in the volume of business underwritten by do mestic companies. This fact shows in the table. The treasurer has accommodated us with information additional to that published in his 1932 report, he has listed for us the number of policies represented in the insurance in force at the close of 1932, also the number issued during the year. This en ables us to reach averages. The total of P42,606,683 insur ance the domestic companies had in force at the end of 1932 was in 17,147 policies. The average policy was for P2,485. These compa nies issued, revived or increased 5,477 policies during 1932. The 2 American companies had 1*45,107,840 of insurance in force at the opening of the year, and, in 13,383 policies, 1*44,040,593 in force at the close of the year. The average policy was for 1*3,290. Policies issued, revived or increased during the year numbered 3,036. The 3 foreign companies had 1*62,092,488 of insurance in force at the opening of the year, and, in 10,359 policies, 1*60,857,688 in force at the close of the year. The average policy was for 1*5,875. Policies issued, revived or increased during 1932 numbered 1,789. 193J PHILIPPINE LIFE INSURANCE Domestic (Two) Insurance in force January 1, 1932 ....................... P39.381.949 Revived, issued and increased during the year. 13.527,481 Terminated— By death........................................ P 240.055 By maturity . .. ............................ 448,934 By lapses, etc............................... 9,604,758 Total terminated..................... P10,302,747 Insurance in force December 31. 1932.................. P42.G06.683 Total premiums income during 1932. ................. 2,198,626 Losses and claims settled during 1932 . . 633.079 Pending losses and claims December 31, 1932.. . 21,426 American (Two) Insurance in force January 1, 1932....................... P45,107.840 Revived, issued and increased during the year.. 8,356,050 Terminated— By death............................7......... P 438,362 By maturity................................. 254,366 By lapses, etc............................... 8,730,567 It is also possible to report partially 1933. This may be done at this point, before further analyses are set down. Data cover 1 small American company and 2 domestic com panies, the only ones whose reports for last year are currently available. These 3 companies had 1*38,346,456 of insurance in force at the opening of 1933, and, in 14,898 policies, 1*35,894,391 at the end of the year. The average policy was for 1*2,409. The complete report for 1932 shows a total of new insurance (policies issued, revived or increased) summing 1*30,929,589, while insurance terminated that year summed 1*30,206,902: death claims Pl,370,733, maturities Pl,208,876, lapses and other ter minations P27,427,293. This last item, lapses, etc., compares with the new business during the year, 1*30,929,589. From the viewpoint of public welfare, the heavy volume of lapses is deplorable, but the volume of business held up re markably well. It is fair deduc tion that 1933, when fully report ed, will compare favorably with 1932. During the latter half of 1933 life insurance in the Phil ippines was affected by the gold boom; this boom has subsided of late, to the benefit of insurance. Some companies report January and February this year below the volume of the same months in 1933, but well above any 2 months during the latter half of 1933. Other companies report January and February this year above the same months in last year; for one company at least, January this year proved the best month in its history, while February bade well to top it. This is one of the larger and older companies. We have some in formation respecting its agents, indicating that college or university training is a preparation for competency in solicit ing insurance. Among this company’s top 30 solicitors, 16 are either college or university graduates and 6 others have had high-school training. Among the 16 collegiates, the largest group is from the University of the Philippines. The same company has a few women among its solicitors; its own experience, by competitive test, makes the college (Please turn to page lo) Total terminated..................... P 9,423,295 Total premium income during 1932.............. P 2,462.372 Insurance in force December 31, 1932.................. 44,040.593 Losses and claims settled during 1932................... 583.373 Pending losses and claims December 31, 1932.. . 143,780 Foreign (Three) Insurance in force January 1,' 1932 . . Revived, issued and increased during Terminated — the year. P62.092.48S 9.046,058 By death....................................... By maturity................................. By lapses, etc............................... Total terminated..................... P10.280.858 Insurance in force December 31. 1932.................. P60.S57.G88 Total premiums income during 1932..................... 3,559.018 Losses and claims settled during 1932.................. 1,130,395 Pending losses and cluims December 31. 1932. . 264,584 LIFE INSURANCE IN THE PHILIPPINE ISLANDS Items Companies 1927 1928 1929 1930 1931 1932 Insurance in force, January 1. Do..............................: .. Domestic.................. P22,637,028.00 23,026,444.00 28,074,120.00 1*25,024,573.00 25,922,926.00 31,534,687.00 1*27,011,108.00 31,200,740.00 37,344,517.00 P32,316,356.00 39,202,756.00 43,663,615.22 P37,070,982.00 43,029,170.00 50,942,833.98 P39,381,949.00 45,107,840.00 62,092,488.00 Foreign (American). Foreign (others).... Do.................................. Total........... 73,737,592.00 82,182,186.00 95,556,365.00 115,182,727.22 131,042,985.98 46,582,277.00 Insurance issued, revived, and increased during the year... Do.................................. Domestic................. Amprienn 8,633,499.00 7,669,658.00 6,879,765.00 8,808,780.00 10,500,468.00 9,630,496.00 12,298,384.00 14,660,756.00 10,601,794.00 12,943,857.00 12,414,372.00 12,488,733.92 11,656,405.00 11,824,564.00 17,352,239.34 13,527,481.00 8,438,450.00 9,046,058.00 Do.................................... Rnrftign Total........................ 23,182,922.00 28,939,744.00 37,560,934.00 37,846,962.92 40,833,208.34 31,011,989.00 March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 America’s Part in Founding Modern Japan The part America played in the founding of modern Japan is usually understood to have reached its climax in the treaty affected by Commodore Mathew Calbraith Perry in 1854. Perry’s achievement was indeed foundational, everything subsequent to it is built upon it; thereafter, instead of merely the Dutch factory on Ddshima island at Nagasaki, all nations had two ports at which to call in Japan, Hakodate and Simoda. But Perry had a fleet, 3 steam vessels, 3 sailers. After Perry came an Amer ican who was alone, Townsend Harris, who, except the Dutch under restrictions at Dlshima, was the only westerner resident in Japan during nearly two years; and during this period, alone, neither a warship supporting him nor even a dispatch boat, he effected the commercial treaty with Japan that is the foundation of the Japan of our day. At the end he wrote briefly to Sir John Bowring at Hongkong: “Lord Elgin (for the British) and Baron Gros (for Russia) will find their work all done to their hands when they arrive, and that a large fleet was not required as a demonstration.” So it fell out, Townsend Harris, a busi ness man all his life, made the commercial treaty with Japan that all others had to follow; he made such a treaty as led to the early downfall of the shogunate, the do mestic revolution, the restoration of the emperor, the adoption of a constitution and all the stupendous changes that have occurred during the past 50 years. It was on September 4,1856, that Harris raised his flag, the first of a foreign consul in Japan. Commodore James Armstrong had landed nim at Simoda from the steam frigate San Jacinto in August, and had then returned to China. Armstrong had brought Harris from Siam, where he had effected a treaty of commerce for the United States after others had failed. Doing this, he had laid in Siam the basis of friendship that has prevailed between America and Siam ever since. Landed in Japan, it was to be 14 months before, from Hakodate, his first mail from home arrived; and in this mail the latest cover from the state department (under General Lewis Cass, of Michigan) was dated August 1856, the verv month Harris had established official residence in Japan. This cover pertained to a very minor matter. The war in China, of which Harris was perforce ignorant, detained the American ships there: besides suffering extreme ill health almost constantly, Harris’s isolation and the unex plained prolonged absence of American ships from his station made him feel deserted. With only the instructions brought with him from Washington, and a letter from Pres ident Buchanan for the Tycoon, or reigning shogun or dictator, Harris discharged his every responsibility in a way to inculcate the utmost respect among the Japanese for the United States. It is to be remembered that all this was done at a time when the United States was approaching civil war between North and South. Harris was consul general under Dem ocrat Buchanan, minister plenipotentiary under Republican Lincoln, and went home in 1861 to a war-torn country where he anxiously espoused the cause of the Union of the States. Negotiations .with the Japanese were most laborious. Dutch was the medium of mutual communication. A young Dutchman, Henry C. F. Heusken, was Harris’s companion and interpreter. (When he was assassinated by a fanatic, Harris got an indemnity of $10,000 for his family). What the Japanese had to say was put into Dutch; the translation verified, it was put into English for Harris. From Harris to the Japanese the process was reversed. Some handicaps were the limited knowledge of Dutch, learned from the traders at Ddshima, the absence of singulars and plurals in the Japanese language, also relative pronouns and antecedents. Beginning as strangers, the negotiators had painstakingly to acquire acquaintanceship of one another. Harris had to break down pre judice, fear and the intriguing of placemen who felt their very lives at stake in having inter course with a foreigner at all. Japan’s suspicions of the western powers were of course justified, to their view at least, by current events in the Far East. This re serve was hard to penetrate. It made the Japanese do curious things, and these things Harris made it his duty to prevent—in jealous regard for the dignity of the United States. Thus when the governor of Simoda was to receive him, the Japanese commissioners tried every means for him to be received jointly with Commodore Armstrong—as if reception of the consul general who was to reside in Simoda was incidental, or perhaps compelled by the American navy. Harris had gently to assert his priority, thus to enforce a provision of the Perry treaty. Established ashore, Harris found himself under a guard of spies. The Simoda author ities explained that these men were to see to his safety, but the rule of nations that no man should be on his premises without his consent was explained and insisted upon; after due patience, but perseverance, the right was re cognized and tne spying ceased. Then, at the negotiations, appeared a multitude of secre taries—really spies. Again matters had to be straightened out. These are only random ex amples of obstacles to amity and the writing of a treaty. Another was the difficulty in delivering the president’s letter to the tycoon at Yedo (Tokio). It was Harris’s duty to deliver this in person. Long were the conver sations opening the way for nim to go to Yedo; and once there, still longer were the weeks before the work of the treaty could be begun. Harris had to guard against persons of in ferior rank being assigned to deal with him. The shogunate (which was to fall as a result of all this) was fighting every inch of the way for its life—the daimios 10 to 1 against it—and any observable gesture of superiority to the foreign envoy was so much on the shogunate’s side. In all but total ignorance of the country, Harris had to feel his way along; this he did with the manners of a gentleman who would neither gratuitously offend nor tolerate an offense. He soon found that once the Japanese had agreed to any proposal, they adhered to this agreement to the letter. But they too were feeling their way along, and even under more personal danger than Harris. Thus the mere providing Harris with a map of Yedo was of the gravest concern to the commissioners, and had to have the previous and absolute sanction of the shogun. So too a place for Harris to ride, for the ex ercise he stood so much in need of, because in riding abroad he was in view of the public who could see with what freedom, in contrast with the surveillance over the Dutch, this American was treated. Almost interminable were the preliminaries for the trip to Yedo, but at last all was carried out to Harris’s minutest liking; not that he wanted the pomp for himself, but it was custom of the country and he would therefore have it for the sake of his own. Harris began his journey from Simoda to Yedo Novem ber 23, 1857, thus: “My avant-courier was Kikuna, a military officer with a rank corresponding to captain; he had his horse, and norimono (chair of state with 22-foot poles and bearers), and the usual bearers and attendants, but before him went three lads, each bearing a wand of bamboo, with strips of paper attached to the top; they cried out alternately, ‘Shi-ta-ni-ro!’ that is, ‘Sit down,’ ‘sit down’; they kept some four hundred yards in advance, and their cry sounded quite musical. Next to Kikuna came the American flag guarded by two of my guards. Then I came on horseback with six guards; next my norimono with its twelve bearers, and their headman, bearers of my shoes, etc.; then Mr. Heusken on horseback with two guards, then his norimono bearers, etc. Next followed my bedding, chairs, food, trunks, and packages containing presents; my cook and his following. “The vice governor of Simoda followed with his train, then the Mayor of Kakizaki, and lastly the private secretary of the governor of Simoda. A Dutch interpreter was carried in a kago in Mr. Heusken’s rear. The whole train numbered some three hundred and fifty persons. All the bearera of luggage, etc., etc., were changed every two ri, or about five miles, and I was glad to see that these men were all paid for their labor.” Officials from each succeeding town along the way to Yedo came out to greet the Harris cavalcade at their boundaries; as it had been agreed, not the least courtesy or detail of comfort was omitted. Sunday was observed without travel. Harris was an Episcopalian; from the first he had read the service of Sundays with Mr. Heusken, and, though it was still a capital offense, had apprised the Japanese that he did so in order tnat they should know not only that he was a Christian but that as the envoy of the United States he adhered to his pri vileges and stood upon international law ratner than national. The commissioners, once Yedo was achieved and Harris ceremoniously in stalled in the temple chosen for his residence, asked how he should proceed to the tycoon’s castle on the occasion of his state visit to present the president’s letter. At first he thought he would go horseback, and said so. But this so pleased that he knew it could not be right. He inquired and learned that only the highest officials went to the castle in their norimonos, so of course he resorted to a change of mind and went in that way also. It can be imagined how health-taking all these details were to an official alone in a country of 40 million hostile strangers, whose language he could not speak nor they his. The daimios’ frank hostility to a commercial treaty held off real progress for months, but on February 17, 1858, definite word was given that the treaty would be signed, come what would, and' experience taught Harris he could rely upon his men. The Prince of Shinano was the chief of two commissioners dealing with him about the treaty, so there was no question of ample rank; but Harris knew all along that as each point came up, and decision was delayed until the commissioners could ruminate about it, that in reality the tycoon and the state council were being consulted. So great was the opposition of the daimios—the 260 military {Please turn to page 15) 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 The American Chamber of Commerce OF THE Philippine Islands (Member Chamber of Commerce of the United States) DIRECTORS ALTERNATE DIRECTORS H. M. Cavender. President L. D. Lockwood K. B. Day. Vice-President E. J. McSorley John L. Headington. Treasurer S. R. Hawthorne J. R. Wilson. Secretary F. H. Hale C. S. Salmon J. C. Rockwell --------Haul a. Meyer Verne E. Miller E. E. Selph, General Counsel COMMITTEES EXECUTIVE COMMITTEE; H. M. Cavender. Chairman K. B. Day J. R. Wilson RELIEF COMMITTEE: J. R. Wilson. Chairman MANUFACTURING COMMITTEE: K. B. Day, Chairman F. H. Hale John Pickett C. A. Kesstler D. P. O’Brien LEGISLATIVE COMMITTEE: H. M. Cavender. Chairman K. B. Day L. D. Lockwood FINANCE COMMITTEE: Verne E. Miller. Chairman E. J. Deymek S. R. Hawthorne C. E. Casey FOREIGN TRADE COMMITTEE: H. B. Pond, Chairman E. E. Spellman Kenneth B. Day PUBLICATIONS COMMITTEE: H. M. Cavender, Chairman K. B. Day R. C. Bennett J. R. Wilson BANKING COMMITTEE: C. M. Cotterman, Chairman N. E. Mullen J. R. Lloyd RECEPTION. ENTERTAINMENT & HOUSE COMMITTEE E. J. McSorley. Chairman J. R. Wilson LIBRARY COMMITTEE: S. A. Warner, Chairman SHIPPING COMMITTEE: E. M. Grimm. Chairman E. J. McSorley G. P. Bradford E. W. Latie INVESTMENT COMMITTEE: H. M. Cavender. Chairman K. B. Day J. L. Headinpton J. C. Rockwell NEW COMMONWEALTH ACT Farm Lands in Our Ten Largest Islands Percent of farm lands under actual cultivation Island Area sq. miles Cultivable sq. miles Cultivated sq. miles % Under Cultiva tion Philippines...................... 114,000 61,966 14,335 23.1 Luzon............................... 40,814 23,647 7,618 32.2 Mindanao........................ 36,906 16,344 1,125 6.8 Samar............................... 5,124 3,945 714 18.0 4,903 2,622 885 33.7 Palawan........................... 4,500 3,407 155 4.5 4,448 2,813 1,053 37.4 Mindoro........................... 3,794 2,125 69 3.2 Leyte............................... 2,799 1,945 792 40.6 Cebu................................ 1,695 1,391 803 57 7 Bohol............................... 1,534 932 420 45.0 23.0 Our 10 largest islands-have 59,171 square miles of farm land of which 13,634 square miles are actually farmed, less than 1 acre in 4 of the cultivable land, and less than 1 acre in 10 of the total area of the islands. Reluctantly or not, depending on how far you sanction political casuistry, it remains a fact that nonacceptance of the commonwealth bill last year, and yet keeping the question of a suitable bill before congress and President Roosevelt, with the effect that quotas have not been applied, has given Philippine products free entry to the American market for at least the whole of this season. This means money; in the sugar industry alone it means about 1*4,000,000 more, thrown into the channels of commerce in the islands this year, than we otherwise would have had. It contributes influence toward getting the United States senate to quash the proposed tax of 5 cents a pound on coconut oil imported into the United States and oil expressed there from imported copra; with the result that the worst we probably shall have is the so-called com promise commonwealth (or if you will, independence) bill giving 850,000 tons of sugar, 2,000,000 pounds of coconut oil, and 3,000,000 pounds of cordage from the Philippines annually free entry into the American market. This until under the terms of the bill some impost applies. Such advantages are tangible, say what you will. The table above illustrates how badly the Philippines need the American market. Our population now approaches 14,000,000. The land we might farm, and we are predominantly a farming community, comprises 61,966 square miles. The land we actually farm comprises 14,335 square miles, or 23.1% of our farmable land. Of 5 measures of crops produced on the land we farm, America buys 3.2 measures and all other overseas markets buy about 8/10 of 1 measure. We manage to buy the other measure, mostly rice home-grown for home consumption. For lumber the domestic market is the primary one, but of lumber we have potential large surpluses to sell overseas and currently the industry languishes because there is comparatively little buying overseas. Essentially we produce for overseas trade. This trade brings us cash with which to buy imports. It is consumption of these imports that keeps our heads above the coolie level: when the Philippines lose the American market they will be a coolie country and not a country of citizens rising all the time to higher standards of living, education and prosperity. This being axiomatic, opinion here should begin understanding the true and permanent basis on which Philippine trade with America rests. Since 1909 the basis of this trade in tariff privileges has been confused with constitutional rights of trade. The trade rests on no such rights, that don’t exist; it is a grant of congress only, and therefore it may be withdrawn. This makes the contemplated visit of a congressional dele gation to the Philippines this summer very significant. Time should be taken by the forelock. The congressional dele gation should be shown, when it arrives here, all unques tionable advantages of commerce with the Philippines; it might well be given suggestions as to how these advantages could be nurtured and increased. But delegation or no dele gation, acts and laws or none, we could learn here, as we should, how to do things advantageous to America in our commerce with her. In trade based on privilege—or at most, on moral rather than on constitutional grounds—mutual advantage is paramount. We undertake now, therefore, to say a word or two more about our coconut oil and copra in the American market. The coconut industry is the livelihood of some 4,000,000 of our people. Coconut lands are generally owned by those who cultivate them, in small farms. A tax that would kill this industry would destroy more than 4/14 of the Philippine market for American manufactures, the population of the coconut-farming areas standing in about that ratio to the whole population. The locale of the larger land-transport companies is enough to indicate this, where the brisker trans portation business thrives is where money is most plentiful. Now the pioneer land-transport company was established in a leading coconut-producing region of Luzon, the Ammen Transportation Company, and there its main lines are even today. Of all the larger companies since established, most of them are in coconut-producing regions. There is a large one in Samar, another in Leyte, another in Oriental Negros, another in Batangas and Laguna, another in Cebu, a grand one in Iloilo. These companies are all imitated by smaller ones, in the regions where they operate. The companies themselves are important buyers of American products, including fuel and oil as well as cars, trucks, tires and parts. They are also low-cost distributors of American imports to provincial merchants and mercantile centers, and they gather up Philippine products and carry them at cheap rates to ports of export. Wise in their generation, they indicate where trade is to be had. Des troy the coconut industry of these islands, or reduce it to levels where only coolies may carry it on, and you destroy not less March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 than half of the Philippine market for imports, but more than half. And what do you gain at home? Nothing. This too a congressional delegation could be made to see. A million bales of cotton when ginned leaves behind the seed for 50,000 tons of cottonseed oil. America proposes reducing her cotton yield by 3 or 4 million bales a year in order to maintain a living price to the growers. When she does this she will reduce her yearly yield of cottonseed oil by about the quantity of coconut oil she now buys from the Philippines. She buys our oil because she needs it, now; reducing her cotton crop she would create more demand for this and for similar oils. It could come to this: that crushing plants in Amsterdam using Indian and Egyptian cottonseed would supply cotton seed oil for the American market; and if they did, America would merely provoke, by taxing our coconut oil, fiercer competitors with her cotton industry and put money in their hands. But before this would happen, probably, palm oil, free of duty, and other oils would come into the United States from countries where America could procure but little reci procal trade—where she would have to settle annual balances with cash. The time has come to talk straight economics to America. As she wants to do only justice to the Philippines, a cordial hearing is a foregone conclusion. Philippine Economic Conditions-January, 1934 Summary of official radiograms forwarded to the Bureau of Foreign and Domestic Commerce, Department of Commerce, Washington, D.C. Prepared by E. D. Hester, American Trade Commissioner, 410 Heacock Building, Manila, with assistance of Government and trade entities. Loans, discounts and overdrafts......................................... Investments.............................................................................. Time and demand deposits.................................................. Net working capital, foreign banks................................... Average daily debits to individual accounts, four weeks Total circulation...................................................................... Jan. 27 1934 234 106 49 130 11 4.7 127 Dec. 29 Jan. 28 1933 1933 237 218 110 114 49 54 132 119 10 24 4.2 3 6 123 117 The improved and steadier business tone which prevailed during the first half of January was qualified towards the end of the month by de clines in the export prices of copra and failure of any substantial improve ment in abaca. The month closed with great uncertainty due to the proposal in Washington to levy an excise tax of five cents per pound on United States imports of coconut oil. Local interests claimed that this, if made effective, would cripple our second largest industry and at least temporarily withdraw nearly a quarter of the Philippine population'from any significant consumption of imported wares. Actual merchandise movement during January, however, was characterized as satisfactory in textiles, foodstuffs and automotives which showed some improvement over December with the volume of consumption estimated at approx imately equal to January last year. Japanese competition in several lines was noted to be rapidly increasing. Russian textiles made their first appearance in the local market. Sales of hardware and builders supplies were greatly curtailed due to the almost total lack of construction activity. Construction activity was at a standstill with Manila building permits valued at only P194.240 as compared with P238.730 for January 1933. Power consumption during January was reported at 10,860,000 KWH compared to 9,731,000 for the same month last year. Transportation Cargoes: Atlantic seaboard, excellent; Pacific, good; Orient interport, normal; interisland, normal. Passengers: outward, good and increasing; inward, heavy. Highseas tonnage was exceptionally low with a total of only 86 sailings with 205,000 tons of which the United States share was 13 sailings with 35,000 tons. Manila Railroad: January average daily metric tonnage almost equalled the previous month, 10,601 compared with 10,632 for December and 7,316 for January, 1933. Overseas trade The Customs bulletin for January is not yet available. December statistics were included in the supplementary report to “Philippine Eco nomic Conditions, December, 1933”. Government revenue The current fiscal year opened without a Government deficit and with probably a small surplus. The Philippine National Bank repaid to the Insular Government Pl,000,000 on account. Outstanding Philippine Friar Lands Purchase bonds were redeemed through the War Depart ment on February 1st. Internal revenue collections during January for the City of Manila were 15 per cent above the same month a year ago. Exchange The January requirements for sugar financing caused the usual cash shortage at the"year’s opening. Seller's quotations for U.S. $ T.T. were at 1/2 per cent discount, buyer’s at 7/8 per cent discount, buyers of 60 days signt D/A bills at 1-3/4 per cent discount. By mid-month the situa tion eased with rates rising to 1/4 per cent premium for sellers and 1/4 per cent discount for buyers, firming to close at buyer's 3/8 per cent prem ium and seller’s 3/4 per cent premium. The steady tendency at the close continued through to February 15 when weakness again developed. On February 20, sellers were quoting at par while buyers were reluctant at 3/8 per cent discount. Total exchange sold by the Ihsular Treasurer for January totaled $400 of demand and $150,000 of telegraphic transfers. Banking January banking conditions were featured by a substantial increase in average daily debits to individual accounts. Circulation was up, closing at P127,000,000, the highest point since June 1932. The Insular Auditor’s report showed the following details in millions of pesos: Credits and collections Credits were extremely close. Banks were declining extensions or new commitments in respect to either agriculture or real estate. Installment and merchants’ up-country collections were slightly improved but their volume was reduced. Sugar January sugar transactions were steady throughout the month, opening at P6.90 to P7.10 per picul, improving gradually to close at P7.30to T7.40. Current crop recoveries of Negros centrals were still unsatisfactory. Warner Barnes’ export data follows: Long Ton9 Nov. 1 to Nov. 1 to Jan. 31, 1934 Jan. 31, 1933 U. S. Atlantic: Centrifugal.............................................................................. 306,454 283,420 Refined ................................................................................... 1,350 --------U. S. Pacific: Centrifugal.............................................................................. Refined..................................................................................... Centrifugal............................................................................... Refined..................................................................................... Centrifugal and refined........................................................ 11,612 11,505 11.829 16.002 318,066 13,179 331,245 294,925 16,002 310,927 Coconut products The copra market was extremely weak with crushers unwilling to make further contracts due to the generally unfavorable world market condi tions which included the Spanish restriction on copra imports with rumors of a similar action in France. This was further accentuated by the pro posed levy of an excise tax of five cents per pound on coconut oil imported into the United States, forcing copra exporters and oil millers to curtail purchases pending further developments. No extensive contracts for either oil or copra were possible and all transactions were limited to small parcels for prompt delivery. Manila copra prices opened at 1*4.40, im proved to 1*4.60, but dropped 30 points by February 10. The copra cake market was dull with little transactions due to the fact that most crushers were sold out. Schnurmacher’s statistics follow: Copra Estimated arrivals: Manila, sacks............................................................ Cebu, sacks....................... •....................................... Estimated exports, metric tons: All countries.............................................................. United States............................................................ Estimated stocks. Manila, end of month, metric Jan. 1934 Dec. 1933 Prices, resccada, buyers’ godown. Manila, pesos per 100 kilos: Coconut oil Estimated exports, metric tons: All countries.............................................................. United States............................................................ Estimated stocks, Manila, end of month, metric Prices, drums, Manila, pesos per kilo: High............................................................................. Copra cake and meal Estimated exports, metric tons: All countries.............................................................. United States........................................................ Estimated stocks, Manila, end of month, metric Prices, f.o.b. Manila, pesos per metric ton: High............................................................................ 430,087 389,466 38,196 21,040 82,558 4.50 4.00 Jan.1933 242,382 200,580 15,449 10,896 33,532 6.00 5.60 11,792 11,647 20,427 0.105 0.095 3,154 149 4,947 25.50 25.00 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 Estimated exports, metrie tons: United States............................................................ 1,030 1.520 394 Abaca (Manila hemp) Few transactions at nominal prices were registered at Manila, with sellers showing resistance. Slightly higher prices ruled from mid-month to close but receded in early February to the January opening quotations. Production was normal. Direct shipments from Davao may tend to di verge the market from Manila, especially due to lower quotations on better grades. Saleeby’s statistics follow: Jan. 1934 Dec. 1933 Jan. 1933 Estimated receipts............................................................ 82.124 130,701 67,661 Estimated exports: All countries................................................................... 94,108 128,577 82,321 United States and Canada......................................... 19.924 36.929 12,501 United Kingdom and Continent................................. 43.499 45,185 29,341 Japan................................................................................ 27,626 41,633 37,414 Estimated stocks. P. I. ports.......................................... 124,176 138,160 150,347 Week-end prices, f.a.s. buyer’s godowns, Manila, pesos per picul for various grades were: Grade E . .. F. . . . I......... J-l . . J-2. .. K. .. . L-l. .. Tobacco Nothing of importance occurred in the tobacco market, ^changed and no important transactions were reported. Nothing of importance occurred in the tobacco market. Prices were unchanged and no important transactions were reported. Weather con ditions continue ideal for the new crop. Alhambra’s export data covering rawleaf, stripped filler and scraps follow: Kilos Austria......................................................................... 819 China............................................................................ 1,905 Gibraltar...................................................................... 11.800 Japan........................................................................... 475,309 North Africa ............................................................ 35.700 North Atlantic (Europe).......................................... 27,766 Straits Settlements.................................................... 833 United States............................................................. 76,254 Total 630,476 Cigar shipments to the United States was slightly up, 18,000,000 pieces compared with 18,182,001 (Customs final) for December and 8,518,824 (Customs final) for January, 1933. Rice The rice market continued weak throughout the month. New paddy has arrived on the market with quotations at the close from 30 to 50 cen tavos below the old crop, which were quoted at from Pl.90 to P2.50 per sack of 44 kilos, cars, Cabanatuan. Rice arrivals were heavy, 221,000 sacks compared with 130,000 for December and 168,500 for January last year. Lumber Lumber production for December was reported at 10,600,000 board feet compared with 8,500,000 for December, 1932. Inventories at the end of December showed 21,500,000 board feet as against 25,200,000 for the same month in 1932. Automotives Car sales declined seasonally during the month due to the anxiety of the market pending the arrival of new models. Arrivals and stocks were on the low side. Truck sales were considered satisfactory with stocks and arrivals low. Fair trading was noted in the second-hand market but trade-ins were rather restricted due to the limitation on instalment sales. December figures follow: Estimated Registrations Arrivals Cars.......................................................... 324 76 Trucks..................................................... 231 131 Tires Business in tires was good with arrivals not above normal. Stocks were normal and prices showed an increase of 10 per cent. January 1st collections were reported satisfactory. Leather The leather market improved above the seasonal level with orders good, arrivals normal, stocks normal, and prices slightly up and lagging behind United States quotations. The unfavorable exchange situation is ex cluding Australia from the market except where contracts were involved. Foodstuffs The seasonal improvement reported in the foodstuffs trade during December continued through to January although the general level appears to be lighter than January last year. Foreign goods evidenced an up ward price tendency which is contrasting to the slightly lower quotations from the United States, especially in flour. Movement was attributed mainly to the lower value of the dollar. Flour.—Flour demand and sales improved due to the effective export subsidies of the Pacific Northwest Wheat Export Association. Manifested arrivals were: United States............................................................. 237.500 Canada......................................................................... 41,100 Australia...................................................................... 25,100 Japan.. ....................................................................... 7,800 China............................................................................ 500 The continued heavy arrivals from Canada were due to the existing heavy six months’ contracts with local bakers which will expire in April. Prices were: United States patents P9.50 to P10.00, cutoffs P8.00 to P8.80, straights P7.4O to P8.00; Australia P7.00 to P8.50; Canada P9.20 to P10.00; Japan and China P6.60 to P6.80. Sardines.— Demand improved, United States stocks ample, prices P5.50 to P6.20. Japanese stocks heavy and selling at P5.50 to P5.80. Mackerel.—Demand fair, United States stocks ample, prices P5.40 to P5.60. H F Salmon.—Market dull due small stocks, prices Alaskan chum P9.20, Canadian stocks ample at P8.20 to P8.60, Japanese pinks P7.80. Apples.—Demand poor, stocks heavy, arrivals in poor condition, prices P3.00 to P3.50. Oranges.—Demand normal, supply ample at P9.50 to P12.00. Lemons.—Demand normal, stocks sufficient, prices P7.50 to P8.50 for half boxes, Pl5.00 to P 16.00 for full boxes. Grapes.—Stocks and arrivals light, prices P6.50 to P7.50 per 34-lb. box. Onions.—United States ample at P4.00 to P4.50 per 100-lb. bag, no stocks of Egyptian, Japanese ample at P3.50 per 100-lb. case. Potatoes.—United States ample at P4.50 to 1*5.50 per 100-lb. bag, small stocks of Chinese at P3.80 to P4.00 per 100-lb. crate; Japanese ample at P3.00 to P3.50 per 100-lb. crate. Cabbage.—American scarce at 20 to 22 centavos per kilo, Baguio ample at 11 to 13 centavos per kilo. Milk.—Market generally unchanged, orders fair, arrivals slightly above normal, stocks normal, prices tending upward. Arrivals were: condensed 15,700 cases, evaporated 36,200, natural 1,100. Prices: evaporated P5.70 to P6.10, condensed Pl 1.50 to P13.50, natural P8.00 to P16.00. Jap anese were being sold at cut rates, P7.00 to P8.00. Textiles Textile movement during January was seasonally good, was considered better than December and about approximately equal to January last year. The new higher prices from the United States increased the com petitive disadvantage in favor of Japanese products, resulting in very poor prospects for February and March. Manifested arrivals were esti mated as follows: United States........................................ Europe.................................................... Shanghai.................................................. Hongkong................................................ Silk and Cotton rayon 3,419 -----3,109 429 224 12 74 3 Grey sheetings.—Orders heavy, arrivals normal, offtake good, prices firmer, prospects under new United States prices extremely doubtful due to repetition of Japanese orders at 15 per cent below United States quota tions. Bleached sheetings.—Orders nil, arrivals nil, offtake very small, stocks very light, prices up, prospects very poor due Japanese offers at December prices. Grey drills.—Orders for stocks small, indent heavy; arrivals normal, offtake fair, stocks light, prices up, prospects extremely difficult against Japanese offers at 10 per cent below United States prices. Colored yarn drills.—Orders small, arrivals very small, stocks light, offtake fair, prices up, prospects nil, Japanese arrivals and stocks heavy and underselling United States brands in all provincial markets. Heavy chambreus.—Orders small and for indent only, arrivals small, offtake fair, stocks light, prices up, prospects poor although continued limited demand for United States goods anticipated in spite of heavy competition. Light chambreys.—Orders nil, arrivals small, offtake seasonally slow, stocks fair, prices up, prospects impossible at latest Japanese arrivals bearing the brand "Manhattan Chambreys” which is equivalent to United States qualities and selling at 10 centavos per yard as against 15 centavos for United States. Denims.—Orders comparatively light and at sacrifice prices, arrivals small, offtake seasonally 61ow, stocks light, prices unchanged, prospects fair. Japanese Denims strong in southern markets and making headway in Manila. Narrow prints.— United States out of market and Russian goods marked "Harbin” available at 12 centavos per yard and of better quality than Japanese at 10 centavos. Percales.— Orders only for job lots, arrivals small, offtake good, stocks low, prices up, prospects impossible at Japanese replacement prices which are 20 per cent under United States prices. Khakis.—Orders fair, arrivals small, offtake good, stocks low, prices up> prospects doubtful. Importers of British goods still engaged in price war. First Japanese shipment arrived in Manila but quality reported poor. Plain voiles.—Orders small and for bargain lots only, arrivals small, offtake good, stocks very light, prices up, prospects very doubtful due to heavy ordering for Japanese goods for delivery in early March at 12 cen tavos against United States equivalents at 15 centavos per yard. Printed voiles.—Orders for stock lots only, arrivals fair, offtake good, stocks sufficient, prices up, prospects good. Rayon and silk.—Situation unchanged, United States off market except for small lots of quality silks. Broadcloths.—Orders nil, arrivals very small, offtake good, stocks very low, prices up, Japanese controlling market with orders good and stocks fair. March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 Gold Production at Ipo Now Well Underway at Plus Capacity New mill well located, and the ore mines and mills easily—remarkably low costs predicted A visit to the mill of the Ipo Mining Co., Inc., was made Saturday, March 10. The layman knows little about the technicalities of gold mining; only, in a general way, that in the Philippines it is a complicated process that only experts may carry on successfully. But at Ipo certain facts are inescapable. One is the ideal location of the mill and reduction plant. The process is one of complete cyanidization, the gold being taken out in solution. This requires water in abundance. Ipo has it. Then, as this water and the solutions must keep flowing about from tank to tank, gravity is an advantage. Installed at varying levels on a mountainside, the Ipo plant is accommodated by gravity. You can tell, too, that the plant is well balanced. You ask the rated capacity of the mill. It is 150 tons of ore a day. You ask what is actually being put through. It is lfiO to 180 tons of ore a day. You see, then, not only that the mill exceeds its rating but that the reduction plant readily handles the excess burden. You examine the ore on the dump. It breaks easily; you know that the ball mills can readily grind it to powder, for the cyaniding tanks and the revolving filters that scrape away the tailings. All runs smoothly, you visual ize low-cost production. This impression is confirmed when you go into the mine itself. You climb up the mountainside and go into the 300foot level. Excessive timbering is not required. Practically you are in a moun tain of ore. Stopes and drifts run everywhere, there are only 63 men in the whole mine; but they are picked men, 10 of them Igorot oldtimers from Baguio. No one will care to give out figures at Ipo, as yet. You get nothing official, bift common sense tells you this mining is economical. They do tell you 'that Salacot, across the river ’■■./low the mill, up the mountains and down on the other slope, is steadily blocking out similar ore that in the natural course of events will give demand for a mill like Ipo’s. You have motored to Ipo, an hour and 15 minutes from Manila, and beheld one mill operating in this new Philippine goldfield and the preliminary work being skillfully done—as you suppose— for a second. You recognize, of course, in this so-called lowgrade ore, a rigid test of the mettle of mining men in the Philippines. "You sense the fact that a good part of mining’s future in the islands hinges on Ipo. If Ipo turns favorably, as it promises now, then in all reasonableness there is many another paying mine to be opened in the Angat district where Ipo is the pioneer. Good luck to Ipo. Good producers surmising that the customs 1933 gold bullion export data are too low, 425,030 ounces valued at P9,695,171, the Journal communicated with the producing mining companies, with results as follow: GOLD STOCK QUOTATIONS March 5, 1934 Seller, Buyers Salts A bra............................. 1.10 .95 — Ambassador................ ■ 06 .05 — Antamok..................... .57 .55 — Atok............................. .0014 0814 — Atok Central.............. ■ 10h — — Baguio Gold.............. .37 .36 — Balatoc........................ 20.00 28.00 — Benguet Consolidated 30.00 29.00 20.50 Benguet Exploration. - 191-4 . 18 — Benguet Gold............. . 12 — — Big Wedge.................. . 12 — 12^ Bued River................. — — — Mountain.................... . 13 — — Demonstration.......... 11J-4 • 1014 .11 Equitable..................... . 10 — — Fortuna....................... .08 — — Gold Coin.................. — — — Gold Creek................ 2.75 2.50 — Gold River................. • 33^ .32 -32J^ Gold Wave................. . 10 — — Golden Eagle............. .90 — — Ipo............................... 2.80 2.50 — Itogon. 4.90 4.60 4 80 Madaymon.................. — — — Midas Gold................ — — ____ Mindoro....................... .28 — ____ Mineral Resources... . 10 ____ ____ Montesuma................ — — — Padca).......................... 2.00 ____ ____ Philippine Chromite. . 10 — — Philippine Mines Syn dicate ...................... 1.30 1.00 Placer Mines.............. 4. 10 — — Prosperity Placer. . .. 2.00 — — Salacot......................... . 14 . 13 — Shevlin........................ 4. 15 3.75 — Southern Cross.......... .45 .35 — States Group.............. . 10J4 — — Sujoc Consolidated .. .70 — — Suyoc Mines.............. — — — United Paracale........ . 16 — — Universal Expl........... — — — Virac Expl.................. .21 — — Zamboanga................. . 14 Philippine 1933 Gold Bullion Phoduction Mino Bullion Ounces Value Pesos Per Ounce Balatoc Mining Company.............................. Benguet Consolidated...................................... 213,854 70 4,752,817.20 P22 23 190,768 80 4,470,824.42 23 44 Antamok Goldfields........................................ 8,396 254,622.76 30 32 Big Wedge.......................................................... 6.594 51 242,619.70 36 80 Benguet Exploration........................................ 2,564 00 137,951.50 20 01 Tambis Gold Dredging (Cebu).................... 1,196 60 38,291.20 32 00 IXL (Guinobatan, Masbate)......................... Paniqui Mines, Inc........................................... 7,608 70 175.000.00 23 00 19,592 76 550,633.52 23 00 71.979 21 1,655,521.77 23 00 Baguio Gold....................................................... 1,665 00 116,250 26 30 32 Totals 1933, mines....................................... Customs data 1933...................................... 524,220 425,030 77 00 13,384,532 33 9,695,171.00 25 22 22 81 Differences...................................................... 99,190 77 3,689,361 33 34 90 After due allowance for errors in approximations, it seems that the customs reports are below last year’s actual gold bullion production by nearly 100,000 ounces. The approximations will be explained. The first 5 mines listed gave both ounces of bullion and the corresponding values, the average value an ounce was obtained by simple division. The Tambis Gold Dredging Company, operating on Cebu, gave the number of ounces of bullion it produced last year, 1,196.60. It was estimated that this dredged gold would assay somewhat higher than milled gold, a value of P32 an ounce was therefore given it, making the approximate value 1*38,291.20. IXL gave the value of 1*175,000 for the year’s run. As this mine operated throughout the year, an estimated value of P23 an ounce was given its bullion because that is in the neighborhood of the average value an ounce of the bullion produced by Balatoc and Benguet Consoli dated, which also operated throughout the year. The same procedure applies to Paniqui Mines, Inc., which reported the value of P550,633.52 for its 1933 output in its yearly report. It too operated throughout the year. Baguio Gold’s yearly report shows bullion exports during October, November and Decem ber valued at Pl 16,250.26 at R.F.C. gold prices. The yearly report of Itogon gives the value of its 1933 bullion production, Pl,655,521.77; and to approximate the number of ounces this value covers, as Itogon operated throughout the year, P23 was estimated as the average value of its bullion an ounce. Nineteen cen tavos an ounce higher than the customshouse average, this estimate is, as noted above, in the neighborhood of the average value an ounce of Balatoc’s and Benguet Consolidated’s bullion last year. It is essential to bear in mind the wide dis crepancy between the government’s official figures reported by the customshouse, and the figures given by the mines. The mines’ figures don’t include considerable gold yielded by small projects throughout the islands, both mining and dredging, that ought to be included in the government’s figures and that total a respectable sum during a year. The Journal would welcome suggestions as to how to as certain definitely what gold the Philippines actually do produce. The government’s data libel the industry. The almost 100,000 ounces of gold bullion these islands produced last year above what the customshouse reported is more than any single gold mine in California produces in a year, save one. California does have one mine that yields more than 100,000 ounces of gold bullion a year; but the Philippines have, at Baguio, two mines yielding twice that amount of bullion each, and another almost as good as California’s best. It is of course impossible to say why last year’s full Philippine gold bullion production was not included in the customs report for the year. It is not implied that blame rests in the customshouse, only that there is a gravely misleading discrepancy that in future should be avoided because data from the government is official and news correspondents as well as everyone else take them as authentic, to the prejudice of data from all other sources however authentic in fact. 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 Charles S. “Charlie” Salmon's Philippine Career Outstanding His motto the story of the little black hen: confidence in opportunity yield ing to hard-seeking is his life formula The occasion of a man’s departure from Manila with his family, for a trip around the world during the rest of the year, is a good time to say something about him. So this is a good time to say something about Charles Schofield Salmon, general agent of the Insular Life Assurance Company, a director of the American chamber of commerce and one of its former vice-presidents. He left Manila a few days lago with Mrs. Salmon and their daughters Frances, Emily and Dorothy for an extended itinerary of travel from which he plans to get back to Manila with Mrs. Salmon and their daughter Dorothy in December. Meantime, Frances, grad uated from Central School high school, is to enroll for college work at Duke University and Emily is to enroll at Syracuse University. Another daughter, Charlotte, the eldest, is Mrs. Henry L. Beaty of Hackettstown, New Jersey. Hackettstown is Salmon’s home town. He was born there June 20, 1878; he volunteered there, to soldier in the Philippines; he married there, December 17, 1908, Miss Mary Wade; mail reaches him there when he is on furlough from the Philippines; there the banking he does in America is done. Not every substantial man maintains the old home ties, but every man who does is substantial; it evidences faith in present and future to re member past friends and friendships. Salmon came to the Philippines as an enlisted man in Company F, 26th U. S. Volunteer In fantry. With some 600 casuals, this regiment came to the islands on the transport Grant, for merly the battleship Mohawk, which reached Manila October 24, 1899, and went at once to Iloilo to disembark the troops. Here, February 26, 1901, Salmon received honorable discharge and began as a bookkeeper of the old Pacific-Oriental Trading company, where he was made manager the next year. Major Wm. H. An derson and Leon Rosenthal are among the oldtimers in Manila who were connected with this company at Manila. The Iloilo office was closed July 1, 1903. Outside of hours, Salmon had been writ ing insurance for the New York Life company. This he continued to do. He had also, in 1902, imported a modern rice mill from Scot land and started it operating at Capiz, one of three such mills that were the first modern ones operated in the islands: for many years Smith Bell & Co. operated one of them at Calumpit. Upon leaving Iloilo in 1903, Salmon went to Capiz to live, and to operate his rice mill. This business he abandoned in 1906 to join the China Mutual life insurance com C. S. Salmon in the Iloilo office Said the little red rooster. “Gosh all hemlock! Things are tough. Seems that worms are getting scarcer, and I cannot find enough. What's become of all those fat ones is a mystery to me. There were thou sands through that rainy spell,— but now. where can they be?" The old black hen who heard him didn't grumble or complain. She had gone through lots of dry spells.—she had lived through floods of rain. So she flew up on the grindstone, as she said, "I’ve never seen the time when there were no w new and undug spot; the earth was hard and firm. The little r That’s no place far a worm." The old black hen just spread h free. "I must go to the worms," she said; "the worms won’t vainly spent his day, through habit, by the ways where fat worms had passed'in squads back In the rainy days. When night fall found him supperless, he growled in accents rough, "I'm hungry as a fowl can be. Conditions sure are tough.” He turned then to the old black hen and said, "It’s worse with you, for you're not only hungry, but you must be tired, too. I rested while I watched for worms; so I feel fairly perk. But how are you? Without worms, too, and after all that work?" The old black ben bopped to her perch, and dropped her eyes in sleep, and murmured in a drowsy tone. "Young man. hear this and weep: PITPPPPP I'm full of worms and happy, for I've dined both long and well. The worms were there, as always,—but, I bad to dig like hell." pany as agent, and in 1907 was made this company’s general agent. Three years later, in 1910, the Insular Life Assurance Company, first of the local companies, was or ganized and Salmon made its general agent under a 10-vear contract. With this company, for which he drew many of the important papers, including policy forms, Salmon is now working on his third 10-year contract as general agent. His office is among the better organized agencies in Manila; his company had 1*5,322,096 of life insurance in force in 1915, and 1*33,995,524 in 1932 protected by investments in the islands and throughout the world in such securities as are authorized to be bought with insurance funds by Phil ippine law. Salmon’s motto of business is illustrated by the black-hen homily reproduced on this page from a framed copy that hangs on his office wall. To this he has led many a flagging solicitor, to hearten him with a reading of it. In 1913 he had such an agent, a good one too easily discouraged. Salmon told him to pick out any region of the islands himself, and he would go there with him and wager that within 30 days more than 1*100,000 of new business would result. The man chose the Baliuag district in Bulakan. He and Salmon topped 1*100,000 in a month. Soon he was blue again, being a gay free spender. This time he made it harder: on a similar dare from Salmon he chose Cabanatuan. But again, in the agreed time, 1*100,000 was topped. “Always go by the black hen’s doctrine,” Sal mon chided him. He never had to be told again, and he became one of the most productive agents the company ever had; he wrote a high volume of business and it was of the best sort, the kind that stayed on the books. “Write me an in corrigible optimist, like the little black hen,” says Salmon. He is a man of fundamental faith and invincible energy, would be a better way of putting tt. This fundamentalism embraces insurance. That he «ells a commodity in which he deeply believes is evident in his personal insurance, f*235,000, and in the large policy on his life carried by his company. That he is a man of invincible energy is evi denced by.,the many failures among, things he has tried, failures that have left him undiscouraged. They began in Iloilo. In his early years there he had 30carromatas on the streets for hire, rigs, horses and harness. An epi demic of surra left him just rigs and harness, taking every horse. Then the rice business at Capiz, impractical against Chinese competition, nearly strapped him of capital. Now he has a moving picture house at Bacolod, which took years to get on the black side of the ledger and still presents difficulties enough. (Please turn to page 16) p March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 America’s Part . . . (Continued from page 9) princes who had ret inues of troops and collected taxes, half of them always in residence at Yedo, with their families hostages there—that at last there was nothing for it but to dispatch a high envoy to Kioto and lay the treaty before the real emperor. (This in itself was a revo lution, but it the emperor spoke, which he never did until many years later, the obstinate daimios would take it as heaven's word and submit). Premier Hotta’s overtures at Kioto failing (Harris meantime having, on the pledge of February 17, returned to Simoda, by a Japanese steamer be it noted), Shogun Iyesada “resolved to summon to the helm a fearless soul who would quail at no storm.” This was the man who in 1861 paid his life for the treaty, in that swift way the fanatic assassin in Japan so often demands. He was Ii Kamon no Kami, baron of Hikon<5, long afterward execrated in Japan— until as an outflow of his labors the revolution was complete and the long night of isolation ended. Shimada Saburo, in his Opening of the Country, purged Ii Kamon no Kami’s name of infamy. Harris had but to invite his wise attention to events in China to move him to fearless action. On the gunboat Powhatan, on July 24, and not so late as September 4 as first arranged, Ii Kamon no Kami’s commis sioners signed the treaty. Most English historians, since England soon had her own capable Alcock in Japan, make little of Townsend Harris’s lonely and uniquely successful two years’ diplomatic vigil in Japan— while England in China gave the Japanese their cue to sign with Harris quickly. This is much to their hurt, since the Japanese will not allow miswritten history respecting Townsend Harris to stand. Their envoys went to the United States in 1860, on the Powhatan with Captain Tatnall, to exchange ratifications of the Harris and to obtain a fresh copy of the Perry treaty. They returned from the United States in a steam war ship of their own, commanded by Katsu Awa, first organizer and historian of the modern Japanese navy. In the Harris treaty, gold and silver foreign moneys were made exchangeable with Japanese gold and silver at par weight value. Subsequent treaties all followed the Harris treaty in its general outline, and gave nothing to another country that was not conceded also to the United States. The Harris treaty provided consular courts. In all his later years Harris urked that this extraterritoriality be rescinded, yhich came about only after his death, which occurred in New York February 25, 1878, whe The was 75 years old. His declining years wc:e spent at the Union Club, whose library he founded. He had only a few con genial friends, and used to say he and they talked s<nse at one end of the club while dollars were talked at the other. 'Phis was because ?.e was old and full of honors and could take privileges. Yet it is true that throughout his active business life he also followed literary pleasures. Latin American relations in his drygoods business in New York made him ac quire a fluent mastery of Spanish. In the Far East for six years before being chosen for Japan, he was master and sole owner of a trading ship. He studied all the port cities, the peoples and CHARTERED BANK OF INAD‘AD’ cVinV AL,A Capital and Reserve Fund............................................. £6,000,000 Reserve Liability of Proprietors... ........................... 3,000,000 MANILA BRANCH established 1872 SUB-BRANCHES AT CEBU, ILOILO AND ZAMBOANGA Every description of banking business transacted. Branches in every important town throughout India, China, Japan, Java, Straits Settlements, Federated Malay States. French Indo-China, Siam, and Borneo; also in New York. Head Office: 38 Bishopsgate, London, E. C. C. E. Stewart, Manager, cultures behind them. So the east became his primer, he was fitted to follow Perry in Japan. Christmas 1850 he spent in Manila, and succeed ing Christmases in order: at Penang, at Sin gapore, at Hongkong, at Calcutta, at Ceylon, at Simoda in his consulate, alone with Mr. Heusken, reading the day’s religious lesson. “I am sick and solitary, living, as one may say, in a prison; a large one it is true, but still a prison.” The day before but one had registered the first attempt on his secretary’s life. He had thereupon cautioned him always to go armed when he left the consulate premises. The next Christmas was at Yedo, and indoors for diplo matic reasons: Harris had found that the Ja panese associated indolence indoors with rank and authority, and while that precious treaty was in the balance Harris was determined to do nothing to lessen the appearance of these attri butes in himself. The country he thus opened to ocean commerce sent its first exhibit abroad to Vienna in 1873, another of only 6,000 tons of stuffs to the Phila delphia Centennial in 1876, and a tremendous one to Chicago, the fourteenth, in 1893, when its annual increase of population had reached 500,000, half what it is today. Harris's diary notes the astonishing rapidity with which western ideas were examined and assimilated in Japan. One of the presents Perry gave them was a brass cannon, and when Harris came two years later they had 500 of them from their own foundries. So it was with steamships, weaving mills and all that came to hand; and all this, until 1895, while foreign goods, under a rank distortion of the Harris treaty (which Harris denounced as dishonorable) came into the country under a duty of but 5% ad valorem. Life Insurance . . . (Continued from page 7) or university qualifications of applicant solicitors a distinct recommendation. Tne women among its solicitors are single and have their own living to make. For education of children the business of insuring them is growing in the islands. In this specialized branch of soliciting women would seem to fit well; they should be able to make effective appeals to mothers, wheie appeals most count. This is a branch of insurance possibly destined to rapid growth in the Philippines. The total of 40,889 life insurance policies in force in the Philippines at the close of 1932 is small in a total population approximating 14,000,000. That population signifies about 2,335,000 families. If we take this estimate, 6 to the family, we see that insurance protects very few families in the islands, even counting 1 policy to each family. It actually runs, on this basis, 1 policy of 1*3,607 to less than 1 family in 57. Even a slight increase in the general level of family incomes in the Philippines would, it may be deduced from this situation, increase the number of life insurance policies in the islands enormously. (Conversely how ever, the encouragement given the gambling instinct in the revival of the lottery in the islands will, with all analogous influences, harm insur ance as well as all other influences toward thrift. Governor-General Frank Murphy wants no more lotteries after the ones now legalized have been terminated. He is dead right about it). The annual reports of the insurance commis sioner, purely of a stilted financial character, fall far short of adequacy when an economic survey of insurance is undertaken. There is in them no segregation of insurance by sexes and ages of the insured, the average life of policies is not stated, and nothing is learned of the number of policies that, once lapsed, have been revived. Neither is their identification of the insured by their occupations, while many other desirable facts are equally lacking. But all this granted, it is still evident from all that does appear that life insurance in the Philippines has riden the depression well. The volume of business is little below the peak years ^increased, in fact, in 1932) and the financial status of the underwriters is sound. —W. R. She.—So you came home and found your wife in the arms of your best friend—who is he ? He.—I don’t know—I never saw him before in my life! —Cut and comment from Judge. GORDON DRY The heart T _ T of a good Lj 11X1 cocktail SPECIAL MCNISH’S Scotch Whisky for Good Highballs Kuenzle & Streiff SOLE AGENTS Main Office: Branch Office: 343 T. Pinpin 44-48 Isaac Peral Tel. 2-39-36 Tel. 2-17-62 Branches: Cebu, Iloilo and Zamboanga Also distributors for Alhambra Cigars IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 A LITTLE KLIM A LITTLE WATER -FRESH MILK Simply add a little KLIM to water and you have fresh, pure milk. KLIM is fresh milk, with only the water removed. Safe and nourishing, and keeps for weeks without ice. Wherever Groceries Are Sold PRINCE LINE —SILVER LINE JOINT ROUND THE WORLD EXPRESS SERVICE FORTNIGHTLY SAILINGS NEW YORK TO NEW YORK Norfolk, Lot Angelea, Manila, Shanghai, Hongkong, Manila, Cebu, Davao, Makaaser, Java and Straita Porta, Colombo, Port Said, Naplea, Halifax.and Boaton. Deep Tanka for Coconut Oil—Excellent Accommodation For Limited Number of Paaaengera Manila Agents ROOSEVELT STEAMSHIP AGENCY INC. Tel. 2-15-21 — Chaco Building — Tel. 2-15-21 SILVER—JAVA—PACIFIC LINE FORTNIGHTLY SERVICE U. S. PACIFIC COAST PORTS (VANCOUVER. SEATTLE, PORTLAND, SAN FRANCISCO AND LOS ANGELES) To Calcutta via Manila, Cebu, Iloilo, Java and Straits Ports and Return with Direct Sailings From Manila to Pacific Coast Deep Tanks For Coconut Oil—Limited Passenger Accommodation Manila Agents ROOSEVELT STEAMSHIP AGENCY INC. Tel. 2-15-21 — Chaeo Building — Tel. 2-1S-21 Eye Sight Insurance You insure automobile, piano, home, health. Why not your eyesight? Proper scientific examination of your eyes and the application of properly fitted glasses constitute eye sight insurance—and comfort. That is what our service is. Ever the best in quality but never higher in price Charles S. “Charlie” Salmon... (Continual from page 1J,} In 1919 the Salmon-Dexter company was organ ized that dealt, until liquidated in 1925, in farm machinery for which too limited a market could be found. And the movie at Bacolod is recouping a loss of a good many thousand pesos in wee-golf courses that flourished and died too soon, while along the trail of trial and error is the Rural Transit company that finally fell to its major creditor, the Bachrach interests. Experience is a dear but thorough-going teacher. An experiment still promising is the Puncan Plantation company growing rice on a large farm carved out of public lands in the Juris diction of Caranglan, Nueva Ecija. When the city man goes into farming he must count the fun of it his main profit, but Salmon has another real coinpenaation from his farm: the farm sup ports 184 tenant families. Besides, the farm yields prime watermelons that cap the menus of frequent garden parties at the Salmons’ home in Pasay, on calle Donada. Characteristically a good provider, life offers Salmon no better pleasure than that of banqueting his friends and proffering at all times open and generous hospitality. Army beans, young pig roasted on a spit over an outdoor fire—the Philippine lechon—and cold melon are among dishes served at the Sal mons’ home that are unsurpassed anywhere. This introduces the fact that Salmon is forever doing things for others, helping folk out in one way or another—hypersocialized individual that he is. How many subscription lists he has carried about town, getting friends to chip in to ease someone’s hurt of fortune; for the demands of charity he has always had time and always put down his share or more. Thus he helped round Union Church Hall, for girls, and headed for a year the American Guardian Association of which he was a charter meml>er and remains a contributing member. Such leanings make Salmon a good club and church man, since what he joins he tries to help—his propensity to organize effective help is insatiable. The Salmons are members of Union Church, and Salmon, of course, active in financing its activities. Salmon belongs to the Elks here, the Polo club, Baguio country club, Wack-Wack golf and country club. He joined the masonic order in 1917, in Manila, and is past master of his lodge, St. John’s No. 9. He is a member of the Oriental Council No. 1, R.A.M., of Luzon Chapter No. 1, R.A.M., of Far East Commandery No. 1, and of Nile Temple at Seattle. A recent business venture of Salmon’s is unique of its kind, his opening an insurance office in Honolulu for Insular Life. B rl Carroll, formerly a Y.M.C.A secretary here, iS.-in charge of this office. It has been usual for qapital to venture from the west to the east. This office reverses the rule, sends eastern capital into the west. The primary objective is, of course, the Filipino population of Hawaii, where many Filipinos have made themselves prosperous enough to carry life insurance. In buying office equipment at Honolulu Salmon had a peculiar experience. The salesman with whom he closed the purchase he recognized at once as a man he had helped out of a difficulty 30 years ago at Iloilo. This the man himself recalled when Salmon gave his name to be written into the purchase order. Business proceedings stopped there, hurrying recollection of a for gotten act of friendship so overwhelmed the sales man that he couldn’t make out the order until hours later, back at his desk. The Salmons are wished a most pleasant world trip, from which they will be very welcome in Manila in December; when it will be time to fetch melons from the farm, light the lanterns in the mango trees and celebrate home-coming with a typical garden party. Meantime Ed mund W. Schedler, assistant general agent, will be in charge of Insular Life’s general agency; a young man who went from school teaching into insurance, with Salmon, and made good at once, with the enjoyable experience of rising from a salary of 1*300 a month to one of 1*20,000 a year with bonus. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 Manila’s Oldtime Lottery Translated from Manual del Viajero en Filipinos, by Federico Moreno y JerGz, published in the printshop of Sto. Tomis University, Manila, 1875, at the charge of Pedro Memije—pages 115-116. The state maintains in the Philippines a national lottery. These lotteries are held monthly. In the ordinary ones 10,000 tickets divided into lOths are sold, at the government’s wholesale tobacco warehouse in Manila and the offices of the tobacco monopoly of the govern ment throughout the islands. A full ticket costs 1*5 and 430 prizes are given, as follows: 1 of 1*15,000, 1 of 1*3,000, 3 of Pl,000 each, 5 of P500 each, 20 of P100 each, 400 of P30 each, or a total of P37.500 given at each lottery. The drawings are public and taae place at the offices of the central administration of the govern ment monopolies (that is, at what has been during the American period the offices of the internal revenue bureau) at No. 29, calle Anloague (now calle Juan Luna, for the painter of that name, the old name meaning carpenter and deriving from the residence along it, in the old days, of many carpenters, perhaps most of them Chinese). The drawings taxe place at 8 o’clock in the morning in the presence of the lottery board comprising the director of finance, the insular auditor, the insular treasurer, the administrator of the government monopolies, a member of the municipal board, a member of the supreme court, and, as secretary, the head accountant of the finance department. The prizes are distributed as soon as the results of the drawing are officially announced and funds to meet the demands of the prizes have reached OXYGEN Compressed Oxygen 99.5% pure HYDROGEN Compressed Hydrogen 99.8% pure ACETYLENE Dissolved Acetylene for all purposes WELDING Fully Equip ped Oxy-Acetylene Weld'BATTERIES Prest-O-Lite 7 I > Electric Stor age Batteries Philippine Acetylene Co. 281 CALLE CRISTOBAL, PACO MANILA, P. I. the administrator charged with the payment of them to the winners, when the funds collected from sale of tickets fall short of being enough. The claim of the lucky ticket holders is preferred, taxing precedence over everything else; the tickets are property of the possessors, no other owner is recognized than the ones who present them in claim of the prizes. Claims on winning tickets expire in 1 year counting from the day on which the lottery is held. Drawings still to be held this year (1875) arc announced for August 4, September 3, October 6, November 4, and December 20. Two drawings during the year are extraor dinary, that of June and that of December. In the first the number of tickets is 10,000 but the price of each is 1*10 (making the unit, which was 1/10 ticket, PD. In this drawing 474 prizes are awarded, as follows: 1 of 1*25,000, 1 ot 1*10,000,1 of 1*3,000 each, 5 of I* 1,000 each, 12of 1*500 each, 50 of 1*100 each, 400 of I»50 each, 2 ap proximation prizes of 1*300 each for the number just above and the number just below the grand prize number, and 2 of 1*200 each for the number just above and the number just below the secondprize number—a total of 1*75,000. In December the drawing comprises 15,000 tickets costing P20 each, and 627 prizes are awarded: 1 of P50.000, 1 of P25.000, 2 of P10,000 each,. 5 of P5.000 each, 16 of Pl,000 each, 30 of P500 each, 550 of P100 each, 2 grand ap proximation prizes of P3.000 each, 2 secondary approximation prizes of P2.000 each, 9 prizes of P700 each for the 9 remaining numbers in the 10 within which the grand-prize number falls, and 9 prizes of P300 each for the 9 remaining numbers in the 10 in which the second-prize number falls. This is a total of P225,000. Our Climate Data are from a weather bureau report furnish ed by the director, Father Miguel Selga, S. J. Months are understood in their calendar order, and the period averaged monthly is from 1885 to 1933 inclusive. Mean atmospheric pressure monthlv, inches: 29.97, 29.97, 29.94, 29.90, 29.85, 29.83, 29.81, 29.81, 29.82, 29.87, 29.90, 29.93; annual mean, 29.88. AMERICAN FLAG FREIGHT SERVICE American Pioneer Line Monthly Sailings to Atlantic Coast Ports Oceanic and Oriental Navigation Co. Monthly Sailings to San Francisco and Los Angeles States Steamship Co. “General” Liners Every Three Weeks Freight Steamers Twice Monthly to San Francisco and Portland General Agents: STATES STEAMSHIP CO. 311 National City Bank Building ------- Manila, P. I. Phones: 2-23-15, 2-23-16, and 2-23-17 Mean temperature monthlv, Fahrenheit: 76.5, 77.5, 79.9, 82.6, 83.1, 82.0, 80.6, 80.4, 80.2, 79.7, 78.4, 77.0; mean annual, 79.9. Mean humidity monthly, percentage: 77.8, 73.8, 71.3, 69.7, 75.8, 81.4, 84.9, 85.1, 85.6, 84.0, 82.9, 81.2; mean annual, 79.5. Mean rainfall monthly, inches: 0.96, 0.43, 0.69, 1.20, 4.73, 10.00. 16.70, 16.55, 14.25, 7.42, 5.42, 2.37; mean annual 80.73. February averages only 3 rainy days, lowest of the months; July and August each average 22 rainy days. January averages 5 rainy days. January and February this year had many rainy days, will probably tilt the average. The heaviest rain fall in 1 day last year was on September 15, 4.59 inches, 1.17 inches between 3 p.m. and 4 p.m. The highest rainfall in 5 minutes last year was in October, 0.36 inches. April last year had the highest number of hours of sunshine, 292 even; April’s average sunshine hours is 259 hr. 32 m. October last year had the least number of sunshine hours, 126 even, 5 minutes under September. Greatest hour’s velocity of the wind: January 15, 15.5 miles; February 25, 13.7 miles; March 6, 14.3 miles; April 26, i7.4 miles; May 31, 18.8 miles; June 1, 16.8 miles; July 19.5 miles; August 2, 23.3 miles; September 30, 30 miles; October 20, 14.9 miles; November 20, 21.1 miles; December 7, 11.8 miles. January 31, 193i, registered the highest temperature for January, 93 F. February 25, 1906, registered 96.1 F.; March 25, 1933, 98.1 F.; April 30, 1915, 100.4 F.; May 17, 1915, 101.5 F.; June 4, 1912, 99.7 F.; July 7, 1915, 97.3 F.; August 6, 1900, 95.4 F.; September 18, 1903, 95.5 F.; October 10, 1903, 95.2 F.; November 5, 1923, 93.2 F.; December 25, 1911, 93.2 F. The highest reading was that of May 17, 1915, 101.5 F. Last year’s hottest day was May 12, at 2:35 p.m. 99 F. January 6 was the coolest day, at 5:10 a.m., 61 F. Mean daily maximum temperatures monthly, all Fahrenheit: 86.4, 87.8, 90.7, 93.4, 92.8, 90.3, 87.8, 87.3, 87.4, 88.0, 86.9, 86.2. These data demonstrate an equitable climate. They pertain to Manila, low, fronting the bay, and surrounded by broad low valleys except toward the east. Many places in the islands enjoy more moderate temperatures. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1 934 Philippines Buy 1/5 of All U. S. Flour Exported There are 2,410 wheat flour mills in the United States. This statement is from The Index. In 1932 they manufactured 100,671 thousand barrels of flour. In that year the Philippines bought 1,184 thousand barrels of American flour. In that year too the United States sold overseas 5,795 thousand barrels of wheat flour. These data are from the latest available reports. It falls out that the Philip pines in 1932 bought more than 1. 5 of all Amer ican flour sold overseas. The picture also has another angle. It is this. The Philippines in 1932 bought 1 85 of the total U. S. Production of flour. A year has 365 days, 52 of which are Sundays; a milling year will not exceed, perhaps, 300 days, since there are observed holidays other than week FOR THESE GOOD REASONS... GO EMPRESS Reason/...Record size. Reason 2...Record speed. Reason 3... Luxury of Pacific and Atlantic standards. More Reasons...? Ask anyone who’s made an “Empress” crossing! Fortnight ly sailings from ORIENT TO VICTORIA AND VANCOUVER Choice of 2 Routes... Direct Express: Empress of Asia and Empress of Russia make trans Pacific crossing from Yokohama in 9 days. Via Honolulu .Empress of Japan (largest, fastest liner on Pacific) and Empress of Canada add but three days to the journey.... First and Tourist Class. Also, Third Class. RAILWAY SERVICE ACROSS CANADA The trip from Pacific Coast (Vancouver) to Atlantic Coast (Montreal or Quebec) is made in four days in the luxurious trains of the Canadian Pacific Railway. ONLY 3 TO 4 DAYS OCEAN TO EUROPE Via St. Lawrence Seaway! Sail from Montreal or Quebec and enjoy 2 days on the smooth St. Lawrence. Then, only 3 to 4 days more to British and Continental ports. Regular sailings: Empress of Britain, size-speed-SPACE marvel. Famous ‘‘Duchess’’ liners for smart economy. Popular “Mont-ships" for solid comfort, low cost. Attractive, low-priced Tourist and Third Class on all ships. YOUR INQUIRIES ARE INVITED CANADIAN PACIFIC WORLD’S GREATEST TRAVEL SYSTEM ends. Since the Philippines bought 1/85 of all American wheat flour made during 1932, they kept all 2,410 flour mills going during 1, 85 of 300 days. That is, they ran all the flour mills in the Unied States more than 3-1/2 days; we say, all the mills. How many states of the United States did any better? There are 48 states, some big ones with less than 100,000 inhabitants. Figure it all out for your self. The Philippines bought so much American flour because America bought Philippine products. They still buy it, though America threatens to quit buying very much from them, threatens to quit buying coconut oil from them, to buy only a limitea quantity of sugar, of rope, etc. Who can make sense Jof^this, being a practical trader? No one. Let’s see. The 2,410 flour mills in the United States employ 22,833 workmen. One man in 85 of these 22,833 workmen is employed to make flour exclusively for the Philippine market; in all, 268 men are so employed, and on every working day of the year. The Philippines there fore, counting families of 5 persons to the man, support an American community of 1,540 inha bitants in making wheat flour for them. The mills use 600,000,000 bushels of wheat in a year, 1/85 of it, or 7,058,825 bushels in making flour for the Philippines. This is the whole crop from nearly 500,000 average acres of wheatlands, according to the 1932 World Almanac. Count ing 100 acres to the average farm devoted to wheat, it is the whole crop from 500 farms, the support therefore of 500 wheat-farming families, another community of 2,500 inhabitants; between millhands and farmers, the Philippine market for American wheat flour supports a com munity of about 4,000 inhabitants. Add that 1/85 of the capital invested in the American wheat-flour industry gets its entire profit from this market. The selling price of a barrel of flour averages 50 cents above the cost of 4 % bushels of wheat used in making it; this is what the millers get from the Philippines above the cost of their wheat, and in 1932 it was $592,000. This is 10% of S5,920,000; it is probable that the milling cap ital supported by this market is about $10,000,000. In 1932, The Index says, “exports of wheat flour declined 44 %.” In this market, they did not. Markets were lost elsewhere, kept here. Now then, the Philippines are able to do this because they sell their own farm products duty free in the United States. But congress threatens to end this, to prevent the Philippines from selling coconut oil in the United States at all, to fix a limit to the sugar they sell in the United States, and to rope made from Manila hemp. Well, to the extent this is actually done, workmen in our city of 4,000 prosperous inhabitants—among whom not a single man is idle or without pay during a working day of the year—will be thrown out of employment. Readers in the various states of the United States are free to choose their city, some city in their own state checked up in the World Almanac, and toss men out of work. The only question is, will it pay? Our data are from The Index and the Philip pines customs bureau. Everyone knows how important the wheat industry and the wheat flour market are to the United States. But what ought to be known, which is not, is how important the flour market in the Philippines is to the United States. World's Gold Output Increased in 1933 The world production of gold in December increased over November, and output for the entire year 1933 showed some gain over 1932. December output of all producing countries, as reported today by the American Bureau of Metal Statistics, totaled 2,095,000 fine ounces, compared with 2,057,000 in November. Pro duction of the United States during December amounted to 270,000 ounces, against 256,000 in November; Canada, 255,000 ounces, against 241,000, and South Africa, 894,000 ounces, against 898,000. World production in 1933 amounted to 24,282,000 ounces, against 24,226,000 ounces in the previous year. The United States Mint’s figures of world gold production for 1932 and preceding years (1933 figures not yet compiled) compare as follows: Year’ Fine Ounces 1932........... 24,141,486 1931........... 22,329,525 1930........... 20,836,318 1929........... 19,585,536 1928........... 19,399,124 1927........... 19,180,231 Fine Year Ounces. 1926.. . 19,251,794 1925.. .. 18,734,102 1924.. . 18,667,063 1923.. .. 17,977,807 1922.. .. 15,576,270 1921.. .. 16,006,695 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Time To Plan For Your Vacation p. SIGHTSEEING AND EXCURSIONS Enjoy to the full your vacation by making a trip to Bontoc and from there to Banaue and Kiangan through the Ifugao country of striking contrasts. Don’t fail to see the famous rice terraces which are classed among the wonders of the world. Besides there are lots of wonderful things to see on the way. Don’t hurry, if time is not an essential element in your trip. Stop at beautiful Mt. Data Lodge, Km. 105, for a good rest and excellent meals. New, safe and comfortable cars with experienced drivers for moun tain tours are always available at reasonable rates. For information concerning travel and service, please apply to BENGUET AUTO LINE, either at Central Office near Government Center, or at Baguio Station across the street from PINES HOTEL, Telephones Nos. 250 and 901. Manila Railroad Company 943 Azcarraga, Manila Telephone 4-98-61 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 word “TONICKS” with a design, (or pharma ceutical preparation, registered on September 27, 1933, by Jos<5 E. Jimenez, of Manila. P. 1. Reg. No. 114S9. Trademark consisting of the word “FLAV1TE” with a de-ign. tor flavor ing powder, registered on September 27, 1933, by Tai Yih Factory, or Shanghai, China. Reg. No. 11490. Trademark consisting of the words “MARCA PAVO” with a design, for starch, known as “gawgaw", registered on September 27, 1933, by Miguel Josefa, of Pasig, Rizal. Reg. No. 11491. Trademark consisting of the word “ALAC” with a design, for cigarettes, registered on October 7, 1933, by Compahia General de Tabacos de Filipinas, Manila, P. I. Reg. No. 11492. Trademark consisting of the word “CACAHUALT” for specially dis tilled liquor or brandy, registered on October 7, 1933, by La Granja, Inc., of Aparri, Cagayun, Reg. No. 11493. Trademark consisting of the word “ARABINA” for specially distilled TA AVEL LUXURY cut Lour Cost rtf addition to coaches, standard Pullman sleeping cars, and ob servation-club car the NORTHERN PACIFIC RAILWAY now operates new-type, modern Tourist sleep ing cars between the Pacific Coast and Chicago. Electric lighted upper and lower berths, velour-upholstered seats, large men's and women's dress ing rooms...in fact they are luxurious, yet rates are exceedingly low. ROUTE OF THE FAMOUS CN.ortk Coast £untte<) One of America's finest trains, with every modem refinement and comfort in travel equipment. R. I. TOZER. General Agent 657 Market Street San Francisco. California W. F. CARR, General Agent 678 Howe Street Vancouver, B. C. liquor or brandy, registered on October 7, 1933, by La Granja, inc., of Aparri, Cagayan, P, I. Reg. No. 11494. Trademark consisting of the word “VIBEX" with a design, for vitamin B extract known as Vibex, registered on October 7, 1933, by Parke, Davis & Co., of Detroit, Michigan, U. S. A. Reg. No. 11495. Trademark consisting of the word “AROMAS” with a design, for cigaret tes, registered on October 7, 1933, by La Yebana Company, Inc., of Manila, P. I. Reg. No. 11496. Trademark consisting of the word “DOLLAR" with a design, for cigaret tes, registered on October 12, 1933, by Sweet Dreams Aromatic Cigarettes Company, Inc., of Manila, P. I. Reg. No. 11497. Trademark consisting of the word “KATOTO" with a design, for cigaret tes, registered on October 13, 1933, by Alhambra Cigar & Cigarette Mfg. Co., of Manila, P. I. Reg. No. 11498. Trademark consisting of the words “DRAGON BRAND” with a design, for lard, edible oil and cooking fats, registered ^Please turn to page. 2<) NORTHERN PACIFIC REPRESENTATIVES meeting eteanuhlpa at Victoria. Vancouver and Seattle, will be pleased to make your reserva tions to any destination. DON SMITH, Special Passenger Agent Smith Tower. Seattle, Washington A. C. STICKLE?, General Agent 912 Government Street Victoria, B. C. REAL ESTATE By P. D. Carman Addition Hills This is by far the best February total since 1930. It is more than double the reported business in February of 1932 and 1933 and is larger than in any year since 1920 with the exception of February 1929 and 1930. Sta. Cruz..................... Sampaloc...................... Tondo ......................... Binondo ...................... San Nicolas................. Ermita.......................... Malate.......................... Paco.............................. Intramuros................... San Miguel.................. Sta. Mesa..................... Quiapo.......................... Sta. Ana....................... Pandacan..................... Pl,178,725 Pl,352,617 Sales City of Manila January February 1034 1034 P 132,239 P 239,210 146,703 79,986 76,324 116,933 430,500 90,000 55,500 26,800 14,707 79,233 144,166 493,939 75,505 50,546 7 093 176 158,679 3,002 36,012 45,919 16,347 11,283 540 COPRA AND ITS PRODUCTS By Kenneth B. Day and Leo Schnurmacher As far as copra, coconut oil and copra cake are concerned, February was a month of almost complete stagnation. This was largely due, of course, to the pending excise tax legislation in the United States congress, resulting in paralyza tion of American business with the consequential depression of other markets indirectly affected. During the course of the month, the House of Representatives passed this measure oyer a great storm of protests and the bill is now in the hands of the Senate for action. Indications are that the bill will be Killed or modified in the Senate, but this can only be anticipated if con stant pressure is brought to bear. Copra: Copra was weak all month long Sarting at P4.00 per 100 kilos Resecada, in. spite of only moderate arrivals, quotations gradually declined to P3.60, the lowest figure on record. Oil manufacturers, if they bought at all, were buying on speculation, and the only real business done was to cover positions of a few coast mills and to look after a steadily declining London market. Pacific coast prices ranged down from 1.30 cents to 1.25 cents, with some business passing at 1.27-1/2 cents. London was erratic at between £7.7.6 f.m.m. to £7.2.6 f.m.m. with corresponding premiums for Sundried. Some sales were made, but not a great deal of business was done. Shipments, on the other hand, were normal, being based mostly on previous contracts. The following statistics apply: Arrivals—Manila, 312,584 bags and Cebu, 215,193 bags. Tons Shipments—Pacific Coast..................... 11,989 Atlantic Coast.................. 508 Europe............................... 5,765 China and Japan............. 555 Total............. 18,817 (Please turn to page 25) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 SHIPPING REVIEW By H. M. Cavender General Agent, The Robert Dollar Co. Shipments for 1934 got uwny to a good start with a total of 207,889 tons for the month of January, an increase of 33,000 tons over January 1933. To Japan, the main items hemp and logs continued in good vol ume, showing some in crease over the previous month, but tobacco, copra, and rope droi>ped off. To the Pacific Coast, most items showed a satisfactory increase. Cigar shipments were good, especially for delivery to overland points. Coconut oil, copra, copra meal, and hemp all improved, but lumber was off. Sugar shipments both centrifugal and refined were fair. To the Atlantic Coast, coconut oil dropped considerably irom the previous month, but ship ments were still good. Copra and hemp were fair, with lumber slow. There was a heavy movement of centrifugals amounting to 113,000 tons, up 30,000 tons from December. Other items were fair. To European Ports, shipments of the principa commodities copra, copra cake, and hemp were again good, although somewhat off from the previous month. From statistics compiled by the Associated Steamship Lines, during the month of January 1934 there were exported from the Philippine Islands the following: Mud. Sailing, Pacific Count Local Delivery............ Pacific Coast Overland Deliver). Pacific Const Intcrcoastal Steamers Atlantic Const Australian Ports . A Gkasd Total 17,7<SO with 42 of which 28.788 with 10 of which 1,230 with 12 of which 709 with 8 of which 133,102 with 30 of which 25.495 with 18 of which 805 with 8 of which Sailings 900 were carried in American Bottoms with 17,929 were carried in American Bottoms with 830 were carried in American Bottoms with 709 were carried in American Bottoms with 20,545 were carried in American Bottoms with 24 were carried in American Bottoms with were enrried in American Bottoms with 8 9 7 8 G 2 207,889 with 87 of which 40,997 were carried in American Bottoms with 14 THE PRESIDENT LINER WORLD-WIDE SERVICE FLEET AMERICAN MAIL LINE “The Short Route to America” To SEATTLE via CHINA, JAPAN and VICTORIA Pres. Jackson - Mar. 28 Pres. Jefferson - Apr. 11 Pres. Grant - - - Apr. 25 Pres. McKinley - May 9 Pres. Jackson - May 23 Travel “President Liner’’ Tourist Class Manila to Seattle or San Francisco only $200; with private bath, $227. “President Hoover” and “President Coolidge” Special Class at slightly higher fares. DOLLAR STEAMSHIP LINES EAST OR WEST TO NEW YORK Via China-Japan, Honolulu San Francisco Panama Canal Pres. Coolidge - Mar. 21 Pres. Taft- - - - - Apr. 7 Pres. Hoover - - Apr. 18 Pres. Pierce - - - May 5 Pres. Coolidge - May 16 Via Suez Canal and Europe Pres. Van Buren - Apr. 2 Pres. Garfield— Apr. 16 Pres. Polk ------ Apr. 30 Pres. Adams - - May 14 Pres. Harrison - May 28 PHILIPPINE INTER-ISLAND STEAMSHIP CO. SUPERIOR INTER-ISLAND SERVICE S. S. “MAYON” sails Tuesdays at 2 P. M. from Manila to Iloilo Zamboanga, Cebu, Iloilo back to Manila. FUTURE SAILINGS Mar. 27 Apr. 3 „ 10 „ 17 „ 24 FOR BOOKINGS AND INFORMATION APPLY TO: THE ROBERT DOLLAR CO. General Agents Robert Dollar Bldg., Port Area — MANILA — Telephone 2-24-41 87 Escolta IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 Passenger traffic from Manila continued to increase during the month to all points. Book ings to China and Japan and the Pacific Coast showed heavy increases in all clashes. A feature of the passenger traffic passing through this port during the month was the unusually large number of round the world tourists who are moving in greater numbeis than since 192!). It is particularly gratifying to notice that large numbers of these tourists are stopping over at Manila and spending two weeks or longer in the Islands. The following figures show the number of passengers departing from the Philippine Islands during January 1934: first I This,I China and Japan..................... 126 Honolulu............................ 4 Pacific Coast............................. 28 Europe via America 0 Straits Settlements and Dutch East Indies 74 Europe and Mediterranean Ports beyond Colombo....... 42 America via Suez..................... 8 160 348 2 23 19 159 2 0 9 3 16 0 2 0 Total for January, 1934 282 210 533 Total for December, 1933................................. 268 188 197 REVIEW OF THE HEMP MARKETS By L. L. Spellman International Harvester Company oj Philippines This report covers the various hemp markets for the month of February with statistics up to and including February 26th, 1934. Manila Market: The market opened quiet with exporters paving: E, P12.00; F, P10.50; G, P5.75; H, 1*5.25; I, P7.50; JI, P6.25; 82, P7.50; S3, 1*6.50; J2, P5.50; K, 1*5.00; LI, 1*4.25; L2, P4.00; Ml, 1*4.25; M2, P3.75; DL, P3.75; DM, 1*3.25. The extremely heavy receipts the first week caused buyers to hesitate in making forward contracts. The receipts for the second week drop|xul below the estimate and the same is true for the remaining two weeks but the average was more than 25,000 Bs. and as a result prices remained practically stationary. On a few occasions exporters in the Cebu market paid from 2 to 4 reals over the average ruling prices but only for a few parcels. Toward the end of the month dealers evidently arrived at the conclusion that there was no possibility of better prices in the near future and sold all of their holdings and a fair amount for later delivery. In the Davao district the producers take the opposite view and are holding what they can expecting better prices. This is no doubt due to the recent heavy sales of JI, J2 and G to the U. 8. twine spinners. There is unquestionably a temporary demand for these grades in Davao where other grades are accumulating and as soon as orders are filled, there is bound to be a reaction unless a new demand arises. Everything points to a dull market and lower prices. V. K. Market: The first of the month found Ixindon dealers buying a fair quantity of fiber on the basis of: .12, £15; K, £14.10; LI, £13; L2, £12.10; Ml, £13.5; M2, £12.5; DL, £12; DM, £11.5. Cable reports stated that buying was mostly speculative and consumers were not in the market. The heavy receipts had some effect but with very little change in prices, the different grades fluctuated from 5 - to 10 - according to the demand. By the middle of the month sales were made on the basis of: J2, £15.10; K, £14.10; LI, £13; L2, £12.15; Ml, £13.5; M2, £12.5; DL, £12.5; DM, £11.10. There was practically no change dur ing the last half of the month ns regards prices but there was a noticeable slacking in demand and cables reported the market from quiet to dull. The end of the month found exporters offering on the basis of: J2, £15.5; K, £14.5; LI, £12.15; L2, £12.5; Ml, £12.10; M2, £12, DL, £12; DM, £11.5; with no buyers. U. 8. Market: The New York market opened quiet with manufacturers buying only small parcels and mostly of Davao hemp. Export ers prices were on the following basis: E, 5-7/8 cents; F,5-1/8cents;G,3-1,2cents; 1,4-1/8 cents; JI. 3-1/4 cents. From time to time cable offers were received in Manila for distant shipment at greatly reduced prices but practically all these offers were declined. Bv the middle of the month there was very little change and shippers’ average prices were: E, 5-3 4 cents; F, 5-1/4 cents; G, 3-3. Scents; I, 4-1 8 cents; JI, .3-3/4 cents. The market closed quiet with spinners uninterested. Nominal prices were: E, 5-7 '8 cents; F, 5-1/8 cents; G, 3-1 2 cents; 1, 4-1 8 cents; JI, 3-5/8 cents. The quotations given are for Manila and Cebu housemarks. Practically everything sold in the IT. S. during the month was Davao marks and the prices obtained ranged from 1/8 cents to 1/4 cents above the prices given. Javanese Market: This market continues indifferent and the few offers received were below actual costs. There arc still heavy stocks in Kobe and until these are worked off, we cannot expect- much buying. Maguey: This fiber was neglected through out the month. A fair amount came into the Cebu market but we believe most of it went into stock. There was no production of Northern Maguey. Freight Hates: There was no change in freight rates during the past month. General: Taken as a whole, the month was very disappointing to the hemp trade. The continued absence of demand from Japan and the U. 8. coupled with the heavy receipts had a demoralizing effect and there seems very little possibility of getting better prices. It is just a question of how long plantation owners can keep going with prices below production costs. Statistics: The figures below are for the period ending February 26th, 1934. Bromural ••Knoii" is the remedy — it is quite harmless, soothes the nerves and induces healthy and invigo rating sleep. , Obtainable from all chemists I in tubes of 20 tablets. Knoll A.-G., Chemical Works, Ludwigshafen-on-Rhine. FORMULA: Urotropina 0-051—Benzoato litico 0-026—Sales piperacinicas 0-046—Fosfato disddico 0-023—Escipiente efervescente q. s. para 1 gr. THE YEK TONG LIN Fire & Marine Insurance Company, Ltd. Incorporated under the laws of P. I. in 1906. BONDS: Customs, Judicial, Bidders, Contractors, Fire-arms, Fidelity & Surety. INSURANCE: Fire, Lightning, Typhoon, Earthquake and Marine. ACCIDENT INSURANCE: Pl,000.00 Travellers’ Accident Policy for Pl.00 premium per year. 320 Dasmarifias Street Telephones P. O. Box No. 93, Manila, P. I. 23906 & 23193 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 217,9(>4 170,612 Manila Hemp Hs. He. On January 1st................ 155,357 167,007 Receipts to date............... 186,121 153,388 Shipments to— U. K............................... 67,439 35,150 Continent....................... 29,004 29,202 U. S................................ 57,086 24,665 Japan.............................. 53,341 71,262 Australia......................... 4,330 2,027 Elsewhere....................... 2,764 4,306 Local Consumption. . . . 4,000 4,000 LUMBER REVIEW By ARTHUR F. FISCHER Director of Forestry The lumber sit tint ion at the close of 1933 pre sented a more favorable outlook than that prevailingatthe endof 1932. This was due principally to increased demand in foreign markets. Inqui ries from abroad, par ticularly the United States, United King dom, South Africa and Australia, continue be ing received, and it is gathered that actual business already booked by most of the larger mills is sufficient to keep them running steadily for the next few months. During the month under review, the amount of lumber and timber exported aggregated 9,099,040 board feet as compared with 3,215,616 board feet for the same period in 1932, or an increase of 183%. The demand in Japan for Philippine logs was very active. There were 5,724,848 board feet, mostly round logs, ship ped to that country during December as against only 2,376,520 board feet for the corresponding month the previous year. Japanese importers prefer to buy round logs than sawed lumber for three principal reasons: First, Japan has dif ferent standards from the English, commonly used, and consumers in that country naturally prefer to buy lumber manufactured according to their own standard dimensions. Second, there is very little waste in sawing logs in Japan as almost everything from sawdust to barks is utilized. And third, Philippine lauan logs are often manufactured in the said country into veneer and plywood. The November activities in lumber transactions with the United States market were maintained. This despite the taking effect of the “cost-protection” prices under the lumber code, which in the case of Philippine mahogany arc generally con sidered too high by local producers. It may, however, be rather early to expect definite devel opments from the new conditions created under the lumber code. Lumber shipments to the United States for December amounted to 1,479,336 board feet as compared with 80,560 board feet for the corresponding period in 1932, or an increase of 1736%. Shipments to Great Britain registered a slight decline of 4% over those for December of last year although as compared with the previous month they represented a considerable increase. Considering that there is usually a slackening in trading during the Christmas holidays in that country, the Decem ber shipments may be considered a fair showing. There was considerable increase in the demand by British Africa of Philippine timber during the month under review as compared with December of last year. The prospects of this trade, at least for tne coming year, are bright as Gaboon mahogany stands in South Africa are said to have already receded so far into the interior that they have now about reached their limit for economic exploitation under present prices. As stated in a previous lumber review, Philippine lauans are displacing Gaboon maho gany in many instances not only because they are cheaper hut because of their firmer texture. There were 471,064 board feet of lumber and timber shipped to Australia during December as against none for the corresponding period in 1932. The present volume of trade with that country is, however, still below what it used to be in 1929. Business conditions in Australia seem to have already improved greatly, but the high emergency tariff imposed on Philippine lumber in 1930 remains as an obstacle to the full recovery of the trade with that country. Transactions in the local timber markets have become slightly more active due to the fact that this is now the building season. Price for Ipil in Manila has gone up a little. Further increase is expected during the next few months as stocks are running low. Calantas, which is used considerably in the manufacture of cigar boxes, has little demand at present as Mayapis, a cheaper wood, is in many cases being used for the purpose. Lumber deliveries continued to exceed pro duction. Despite increased production of the mills, lumber inventories at the end of December, 1933, declined about 15% as compared with inventories at the close of the previous year. The following statements show the lumber and timber exports, by countries, and the mill production and lumber inventories for the month of December, 1933, as compared with the cor responding month of the previous year. Lumber and Timber Exports for December Customs1933 Destination Board Feet Declared Value Japan.............................. *5,724,848 P 87,502 United States............ ... 1,479,336 94,155 China.......................... 720,800 38,380 Australia..................... 471,064 10,797 British Africa............ 414,248 22,886 Great Britain............ 256,520 23,123 Ireland........................ 25,440 1,915 Portuguese Africa.... 5,936 717 (Turn to next page) . . ----------------------- ! “KIRIN BEER” THE CHOICE OF THE MULTITUDE It’s not merely a drink. It is a wholesome, refreshing, and invigorating beverage ever in troduced in the Tropics! WE ALSO CARRY IN STOCK Silk and Cotton Goods Toys and Toilet Goods Groceries, Porcelain and Glasswares. School • Supplies, Etc., Etc. TAKAHASHI & CO., INC. Importers & General Merchants m TohAm Manila „ , J4-96-18 753 Tabora p o Box 22o Tels(4-96-19 BONDS Firearm Ammunition Judicial Contractors Customs Internal Revenue Fidelity and other Bonds INSURANCE Fire Marine Earthquake Typhoon Workman’s Compensation and other Insurance Call or Write for Particulars Fidelity and Surety Company of the Philippine Islands Geo. C. Dankwerth President P. M. Poblete Sec.-Treasurer E. B. Ford Vice-President A. Santwico Asst. Sec.-Treasurer Monte de Piedad Building Plaza Goiti Tel. 2-12-55 Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 Hawaii................................. SIR 155 Hongkong.................................................................... France.......................................................................... Netherlands................................................................. Total......................................... 9,099,040 1*279,630 1932 CustomsDestination Board Feet Declared Value Japan........................................................................... United States.............................................................. China........................................................................... Australia...................................................................... British Africa.............................................................. Great Britain.............................................................. Ireland......................................................................... Portuguese Africa....................................................... Hawaii......................................................................... Hongkong.................................................................... France.......................................................................... Netherlands................................................................. 2,376,520 SO,5(50 259,488 72,928 267,968 153,064 2,544 2,544 4,720 1,100 250 Total..................................................................... 3,215,616 P 86,016 Note:—*This represents mostly solid log scale, that is, 424 board feet to a cubic meter. For 46 Mills for the month of December______________ Lumber Deliveries from Month Mills 1933 1932 December................................................................. 12,204,599 9,838,961 Month Lumber Inventory 1933 1932 December................................................................. 21,489,945 25,175,629 Month Mill Production 1933 1932 December................................................................. 10,642,398 8,504,699 Note:—Board feet should be used. UROMIL Powerful Urenic Dissolvent Astonishing cures of the most rebellious ca» ses of Gout Rheumatism Arthritis Agents for the PLiUppinct BOTICA BOIE Uroiroplna 0.0J1; Benzoato lltlco 0.028; Sales plperacinleas 0.046; Postato dlsodlco 0.028; Esciplcnte ofervescente q. ». para 1 gr n. RAIL COMMODITY MOVEMENTS By M. D. Royer Traffic Manager, Manila Railroad Company P 37,164 6,883 10,850 6,183 18,866 The volume of commodities received in Manila during the month of February, 1934, via the Manila Railroad are as follows: Rice, cavans................................... 204,508 Sugar, piculs................................... 1,292,917 Copra, piculs.................................. 137,775 Desiccated coconuts, cases.......... 16,574 Tobacco, bales................................ 79 Lumber and Timber, Bd. Ft........ 558,900 The freight revenue car loading statistics for three weeks ending Feb. 3, 1934 as compared with the same period for the year 1933 are given below: FREIGHT REVENUE CAR LOADING eOMMOntT.ES FREIGHT CARB FREIGHT Increase or Decrease 1934 1933 1934 1933 Cars Tonnage Rice ............... 708 508 8,941 5,613 260 3,328 Palav...................................................... 233 2,497 1,022 125 1,475 Sugar 1.746 1,344 50,063 38,746 402 11,317 Sueur Cane 9,705 10,902 186,039 215,591 (1197) (29,552) 618 638 4,561 4,638 (20> (77) Coconuts .. 84 989 972 (1) 17 Molasses................... 226 95 6,703 2,803 131 3,900 Hemp..................................................... 2 67 (4) (54) Tobacco.......................................... 3 3 17 Livestock....................................... 11 25 42 (6) (17) Mineral Products.............................. 232 244 3,180 3,336 (12) (156) Lumber and Timber ......................... 130 121 3,520 3,082 9 438 Other Forest Products...................... 2 31 18 2 13 Manufactures..................................... 105 71 1,260 954 31 306 All others including I..C.1.............. 2,104 2,224 12,675 16,454 (120) (3.779) Tota.............................................. 15,964 16,361 280,514 293,338 (397, (12,824) SUMMARY Week ending January 20, 1934.... Week ending January 27, 1934.... Week ending February 3, 1934.. . 5,333 5,291 5,310 5,165 5,800 5,396 94,084 93,667 92,763 92,012 104,519 96,807 108 (509) 2,072 (10,852) (4,044) 1 5,964 16,36: 280,514 293.338 (397) (12,824) Note:—Figures in parenthesis indicate decrease. SanUligud Always the First Order— and then the appetite is whetted to enjoy a wholesome meal— It is brewed by San Miguel Brewery IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 Copra and Its Products (Continued from page 20) Stocks on Hand—Beginning of Month 66,976 tons End of Month 71,520 tons Coconut Oil: American buyers for coconut oil were entirely out of the market. If any business was done at all, it was a matter of a few tank cars for immediate delivery with prices being nominally 2-1/2 cents c.i.f. New York and 2.30 cents f.o.b. Pacific coast ports. Shipments picked up, but this was purely on account of previously booked business. Some of the local mills were shut down temporarily, and all of them found themselves in a position where they were over-supplied with stocks, with no visible outlet. Local sale of oil in drums was fair, with prices ranging down from 10 cents to 9-1/2 cents per kilo. The following statistics are pertinent : Tons 10,073 1,251 260 INSURANCE For Every Need and Purpose FIRE WORKMEN’S COMPENSATION AUTOMOBILE MARINE ACCIDENT BAGGAGE PLATE GLASS Shipments—Atlantic Coast. . . Gulf Ports............ China and Japan. Atlas Assurance Co., Continental Insurance Orient Ltd. Co. Insurance Company The Employers’ Liability Assurance Corporation Ltd. Total. Stocks on Hand—Beginning of Month 20,427 tons . . . 14,584 End of Month 13,932 tons Copra Cake: European buyers for cake were not interested except for far-forward posi tion, which local dealers did not wish to sell. During the first few days of the month some little business was done at PLS.30 f.o.b. Manila. Toward the end of the month, however, business could not be consumated at better than Pl7.00 f.o.b. Manila. Hamburg prices were quoted at around GS17.00 to G$17.50 c.i.f. with buyers interested only for June forward. There was some little interest on the Pacific Coast for meal at prices around GS15.000, but very little business was passing with Philippine mills. Statistics covering shipments of stocks follow: Shipments—Pacific Coast......... Atlantic Coast. . . Europe.................... China...................... 1,507 182 7,130 51 8,870 End of Month 2,511 tons Total. . Stocks on Hand—Beginning of Month 4,293 tons Desiccated Coconut: Desiccated business was normal, and considerably better than last year. Prices ranged from 7 cents to 7-1/4 cents per lb. c.i.f. New York, with local mills operating at fair capacity and with American stocks re ported as low. This is the one coconut industry in the Philippines which has not so far been adversely affected by pending legislation. Ship ments for February totaled 1946 tons or almost double January loadings. General: Prospects at the end of February were decidedly murky. Local mills were buying merely to prevent undue hardship to their cus tomers. There is no telling when markets will open up or under what conditions. While oil stocks and cake stocks were reduced during the month, copra stocks are still heavy, particularly in view of the season of the year, and taking into account the prospects of a large crop if economic conditions permit. Planters were feeling the pinch and a convention of planters was called for early March to try to find wavs and meas of meeting the emergency caused by low prices. Coconut oil, for the first time in history, is find ing out definitely who its friends are and who its enemies are. Local entities, particularly the Governor General’s office, have been very active all month in protecting our products. Another month will very likely clear things up a good deal, and give buyers and sellers a better idea of where they stand. E. Telephone 2-24-28 EGeneral Agent . ELSER • • Kneedler Building THE YOKOHAMA SPECIE BANK — ■■■ --------- LTD.-----------------(ESTABLISHED 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen 100,000,000.00 121,250,000.00 6,869,038.82 MANILA BRANCH 34 PLAZA CERVANTES, MANILA Capital (Paid Up) Reserve Fund Undivided Profits S. DAZAI Manager Telephone 23755—Account A. Cashier Telephone 2376S—Deposit A. Remittance Dept Telephone 23759—Manager Telephone 23758—Export A Import Dept. R U B B E 1 R : 1 Superior Qualify Dependable Service RING UP 2-18-01 the next time you need a Rubber Stamp and our Salesman will do the rest n/TC/ZITT I TJ ill uUlUv/VutII Sales Office: 2nd Floor IOI Escolfa s T A M P S IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 FEBRUARY SUGAR REVIEW By Geo. H. Fairchild latter price large quantities of centrifugals changed hands. Upon receipt of advices re garding the declining trend of the American market, local quotations were reduced to P7.40 for the last two weeks of the month. Holders, however, refused to sell at this level, hence practically no business was done during the latter half of the month. Crop Prospects: Unfavorable weather con tinues to prevail in many parts of Negros, which explains the low purities obtained by the Centrals in this region. Luzon, on the other hand, has so far experienced seasonable weather conditions which, coupled with the improved harvesting methods, made it possible for many Centrals on this Island to obtain excellent purities during the current crop. The attached statement gives the production and sugar recoveries of the 31 GREAT EASTERN HOTEL MANILA, PHILIPPINES New York Market: —As the result of devel opments in the United States favorable to the sugar industry, chief among which was the submission to Congress on February 8th by President Roosevelt of the Administration’s long-awaited sugar con trol program, proposing that all producing areas contributing to the United States market be put on an annual quota basis, prices for actual sugar as well as quotations on the Exchange re gistered marked advances during the first, week of the month under review. Sales of FebruaryMarch shipment and afloat Philippines were made on the first two days of the month at 3.30 cents and 3.31 cents as against 3.23 cents at the end of the previous month, while quotations on the Exchange showed gains of 10 to 15 points on the 3rd against closing quotations of the preceding month. The spurt in the market was maintained upto the second week, when prices for Philippines rose to 3.42 cents while sales of Puerto Ricos were effected at 3.40 cents. Rumours of a reduction in U. S. tariff duty by 1 z2 cents en couraged speculations on the Exchange. Al though quotations showed slight recessions at the opening of this week, these immediately picked up until a high point for the month was reached on the 13th, when gains of 5 to 10 points were recorded on the Exchange. As the prevailing prices in New York were much in excess of the world market price for sugar, the increased offerings which resulted, caused the market to ease off. After being firm at the opening of the third week, a small sale of present shipment Puerto Ricos was made to refiners at 3.40 cents, another sale in the same position was effected at 3.33 cents on th? 17th, while sales of Cubas were made on the ba>is of 1.56 cents for shipment during second half of March against sales mnde a week previously at 1.60 cents. At the same time quotations on the Exchange suffered losses of 5 to 7 points during the week. The last half of the month saw recessions in sugar prices, sales of duty free sugars being effected on the basis of 3.27 cents to 3.30 cents. The auotations on the Exchange were irregular, with nut slight fluctuations during this period. Futures: Quotations for future deliveries on the Exchange fluctuated during the months as follows: March................................... May...................................... July...................................... September............................ December............................. January, (1935).................. Stocks: Stocks in the United Kingdom, United States, Cuba, Java and European statis tical countries as reported March 1st were 7,265,000 tons, compared with 8,268,000 tons in 1933 and 8,702,000 tons in 1932. Philippine Sales: Sales and resales of Philip pine sugar were reported in New York during the month, as follows: Cents per Pound Long Tons From To Sales............................... 123,800 3.28 3.50 Resales........................... 12,500 3 28 3.40 Local Market: In sympathy with the New York market, local exporters advanced their quotations from P7.50-r7.60 the first week to P8.00 the early part of the third week, at which Cable: GREATHOTEL A new, modem, commercial and residential hotel located in the center of Manila’s busi ness district. The Roof Garden Cafe on top of this hotel offers the coolest place in town to dine. While either American or Chinese dinners maybe enjoyed, an excellent orchestra, ample floor space and cool breezes make dancing especially attractive under starry tropical skies. Complete Telephone Service Local Long Distance Over-Seas < Radio-Phone > PHILIPPINE LONG DISTANCE TELEPHONE COMPANY IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 Centrals reporting in the Comparative Run Long Tons Reports published l>v the Philippine Sugar Centrifugals........................................... 506,732 Association. Refined.................................................. 30,115 Production Up To February 25. 1934 Production Metric Tons ilaeoh'1 . Bais.......................... Barnbnn.................. Bearin...................... Binalbagan.............. Calamba................ CalataRHii................ Cebu (Feb. 11).... Danao...................... Del Carmen.......... Don Pedro.............. El Heal................... Isabela.......... .......... Janiwav................... La Cariota.............. uT-ao.............. Manapla.................. Mindoro ................ Palma...................... Pilar......................... San Carlos.............. San Fernando.... San Isidro............... Santos-Lopez.......... Sara-Ajuv................ Talisay-Silay.......... Tarlae...................... Victorias.................. 70 45 21 92 74 78 SI 94 79 94 72 07 82 76 71 77 77 64 76 75 75 72 832,334 Philippine Exports: The sugar exports for the month of February, as reported by private sources amounted to 188,666 long tons of centri fugal sugar and 16,936 long tons of refined. The aggregate exports for the first four months of the current crop vear beginning on November 1, 1933, follow: Total. 536,847 TOBACCO REVIEW By P. A. Meyer Alhambra Cigar and Cigarette Mfg. Co. Raw Leaf: The outlook for the coming crop in the Cagayan Valley is very promising. Weather conditions during the past month have been perfect. Transactions in the local market were insignificant. Exports show large shipments to the monopolies of Japan and Spain, as is de monstrated in the following figures: Hawleaf, Stripped Tobacco and Scraps Kilos Australia............................................... 18,445 China................................................... 9,729 Gibraltar.............................................. 4,682 Germany.............................................. 5,986 Japan and Korea............................... 1,131,869 N. Africa............................................ 14,220 N. Atlantic (Europe)........................ 29,466 Spain.................................................... 1,749,744 Straits Settlements............................. 1,090 United States..................................... 72,092 3,037,323 Gigak shipments to the United States during February amounted to 20,116,112 as against 18,116,707 during January. Trademarks Registered (Continued from page 20) on October 1(>, 1933, by Philippine Manufac turing Company, of Manila, I’. I. Reg. No. 11499. Trademark consisting of the word “CONVENTO” with a design, for cigarettes, registered on October 16, 1933, by Philippine Aromatic Cigarettes Manufacturing Co. Inc., of Manila, P. I. Reg. No. 11500. Trademark consisting of the word “TONE” with a design, for perfumes and lotions, registered on October 17, 1933, by Philippine American Drug Company—Bo tica Boie, of Manila, P. I. Reg. No. 11501. Trademark consisting of the words “GOOD PRESIDENT” for cigars, registered on October 24, 1933, by Katubusan, Inc., of Manila, I’. I. Reg. No. 11502. Trademark consisting of the word “VAMP” with a design, for cigaret tes, registered on October 24, 1933, by Katu busan, of Manila, P. I. Reg. No. 11503. Trademark consisting of the word “MAHATMA” with a design, for cigarettes, registered on October 24, 1933, by Katubusan, Inc., of Manila, P. I. Reg. No. 11504. Trademark consisting of the word “PANKREON” for medicinal product, registered on October 24, 1933, by Kali-Chemie, Aktiengesellschaft, of Berlin, Germany. Reg. No. 11505. Trademark consisting of the word “RHEMANIA” with a design, for chemical products, medicinal preparations, phar maceutical preparations and physicians’ special ties, registered on October 24, 1933, by KaliChemie, Aktiengesellschaft, of Berlin, Germany. Reg. No. 11506. Trademark consisting of the word “NEO-SILVOL” with a design, for colloidal silver iodide compound known as NeoSilvol, registered on October 24, 1933, by Parke, Davis & Co., of Detroit, Michigan, U. 8. A. (To be confirmed.) Route your freight via — Ynchausti Steamers that sail to their desti nations on schedules that are kept to the dot. For rates and sailing dates inquire from— Ynchausti Steamship Co. YNCHAUSTI & COMPANY General Managers Ynchausti Muelle de la Industria Phone Building MANILA 2-27-92 Fighters on Land and Sea... But they all become friends over a Super-Mixed SINGAPORE GIN SLING at the POODLE DOG CAFE Pinpin & San Vicente Walter B. Oakes, Proprietor IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1934 BUSINESS AND PROFESSIONAL DIRECTORY Kerr Steamship Co., Inc. General Agents “SILVER FLEET” Express Freight Services Philippines-New York-Boston Philippines-San Francisco (Direct) Roosevelt Steamship Agency Agents Chaco Bldg. Phone 2-14-20 Manila. P. I. Myers-Buck Co., Inc. Surveying and Mapping PRIVATE MINERAL AND PUBLIC LAND 680 Rizal Avenue Tel. 2-16-10 INFORMATION FOR INVESTORS Expert, confidential reports made on Philippine projects ENGINEERING, MINING, AGRICULTURE, FORESTRY, LUMBER, ETC. Hydroelectric projects OTHER COMMERCIAL AND INDUSTRIAL ENTERPRISES BRYAN, LANDON CO. Cebu, P. I. Cable Address: “YPIL," Cebu. Manila Wine Merchants LIMITED P. O. Box 403 Head Office: 174 Juan Luna Manila, P. I. Phones 4-90-57 and 4-90-58 Branch Store: 39 Alhambra opposite Elks Club Phone 2-17-61 PHILIPPINES COLD STORES Wholesale and Retail Dealers in American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila, P. I. fr « » * CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description HANSON, ORTH & STEVENSON, INC. Manila, P. I. Buyers and Exporters of Hemp and Other Fibers Chaco Building — Tel. 2-24-18 BRANCHES New York — London — Merida — Davao MADRIGAL 8b CO. 8 Muelle del Banco Nacional Manila, P. I. Coal Contractors and Coconut Oil Manufacturers MILL LOCATED AT CEBU THE AMERICAN CHAMBER OF COMMERCE JOURNAL P.O. BOX 1638 TEL. 21126 P. O. Boa 1394 Telephone 22070 J. A. STIVER Attorney- At-Law-Notary Public Certified Public Accountant Administration of Estates Receiverships Investments Collections Income Tax 121 Real, Intramuros Manila, P. I. International Harvester Co. of Philippines formerly MACLEOD & COMPANY Manila—Cebu—Vigan—Davao—Iloilo Exporters of Hemp and Maguey Agents for INTERNATIONAL HARVESTER CO. Agricultural Machinery “LA URBANA’’ (Sociedad MOtua de Construcci6n y PrSstamos) Prestamos Hipotecarios Inversiones de Capital Paterno Building, Calle Helios MANILA, P. I. The Earnshaws Docks and Honolulu Iron Works Sugar Machinery Slipways Machine Shops Port Area Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL The National City Bank of New York Capital (Paid) - U.S. $127,500,000.00 Surplus - - - - „ 30,000,000.00 Undivided Profits „ 5,087,505.94 (as of Dec. 30th 1933) COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area Four Merchants’ Opinions One merchant says: “.. . It is difficult to tell what we have learned from our experiences except that, speaking for our organization, we have all learned to be very humble.” An other merchant, as well known, says: “Success is going to be measured by our consistent everyday business, with balanced stocks in wanted staples and styles that are in demand; in the continued promotion of those goods.” A third says: “...the promotion of timely, wanted mer chandise is essential to our continued profit making; in fact, to our very existence.” A fourth says: “...and I cannot too strongly repeat that we in our store are firmly of the opinion that not one peso should be spent on the advertising of goods not in demand —and that not one peso less than what is required to do a thorough job should be spent on the advertising of goods in demand.” When you place your advertising in the MANILA DAILY BULLETIN you are making a direct appeal to the buying power of Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL The 1034 Buick Eight with Knee Action Wheels Changes Your Ride to a Glide Automotive Sales Company 2 Isla de Romero ZINC META ARSENITE PREVENTS DESTRUCTION OF WOOD V FROM ATTACK BY ROT, TERMITES, WHITE ANTS OR ANAY, AND BOK-BOK STAMPED ON LUMBER MEANS THAT IT HAS BEEN PRESSURE TREATED WITH . A WOOD PRESERVATIVE OF EXCEPTIONAL MERIT. LUMBER IS PERMANENTLY PRO TECTED AGAINST ALL FORMS OF ROT AND INSECT ATTACK-. IT IS CLEAN AND TAKES PAINT OR VARNISH AS SATISFACTORILY AS UNTREATED WOOD. ZMA lumber may be used unpainted since it LUMBER IS ROT PROOF Z4;'4\ LUMBER IS PAINTABLE LUMBER IS ODORLESS LUMBER IS PERMANENT 2^. is colorless or it may be painted or finished In any manner desired. ZMA lumber is PRESSURE TREATED and as such is not to be confused with open tank, dip, spray or brush treatments. Unless lumber is PRESSURE: TREATED It is not permanently protected against decay and anay. CURTIN-HOWE CORPORATION Timber Preservation Engineers New York. N. Y. ZMA prevents attack by anay and bok-bok. A NEW INTERNATIONAL LUMBER TRADE MARK I’ests have shown that only a very small quan tity of ZMA ,s necessary to kill termites or anay. ZMA does not change the strength, physical appearance, nor any other characteristics of the wood and has the added advantage of making it somewhat fire resistant. ZMA is practically insoluble in water and hence permanently present in the wood to protect it during the useful life of the structure. ATLANTIC GULF & PACIFIC COMPANY OF MANILA Sole Licensee 71-77 Muelle de la Industria Philippine Islands Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL