The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XIV (Issue No. 7) July 1934
Year: 1934
Language: English
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extracted text: QUARTER - CENTURY RECAPITULATIONS Manila Hemp: Its Shift to Davao Philippine Copra and Its Com petitors Our Sugar and the U. S. Quotas Act Philippine Tobacco and Cigars Overseas Trade and Shipping Governor Murphy’s Message to the New Legislature Editorials: By Walter Robb Other Features and the Usual Expert Reviews of Commerce It’s A Pleasure to produce good tobacco for those men who appreciate good cigars MORE and it’s SAFER ESPECIALES PIGTAILS FAVORITOS CORONAS and others THE average man does not relish having his home, furniture and personal belongings destroyed by fire. But . . . does this average man fullyr realize the danger that is present with defective stoves and ranges? The official records for the past year in Manila tells its own story about this . . . . only ONE fire in about 250 was caused by GAS. Made by TABACALERA ORIGINATORS OF HIGH GRADE PHILIPPINE TOBACCO PRODUCTS Replace that defective, obsolete range with a modern GAS Range. It will be economy in the long run. Come in and select the one that will serve your family needs. Do it NOW before the rainy season sets in. MANILA GAS CORPORATION IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 From its humble beginnings in 1895 Compania Maritima has constantly and steadfastly improved its services until now with its 13 trunk lines and 16 ships it offers the fastest, most complete and most frequent coverage of the southern ports. The Maritima has always extended an eager hand to the pioneer. It has helped in no small way in the transformation of frontier settlements into towns and from towns into our present-day progressive cities. Traffic demands for faster and more frequent sailings be tween our big cities have always found immediate response from the Maritima. Recently it brought to the interisland service one of the fastest vessels in the Far East, theT.S.S. CORREGIDOR placing it in the run between Manila, Iloilo and Cebu. By keeping abreast of the times—abreast of the progress of the country—the Maritima has always merited the patronage of most travellers and shippers of the Philippines. | COMPANIA MARITIMA 105-111 Juan Luna • Manila • Tel. 4-98-26 i SHELL MOTOR OILS 5 C Per Quart in tins (Double and Triple) 70c per Htre Sealed Cabinets IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 AGENTS 1 FOR Barber Steamship Lines Inc. Chrysler De Soto Automobiles Barber-Wilhelmsen Line Willys Automobiles and Trucks i Dodwell Castle Line E. I. Dupont de Nemours | Wilh. Wilhelmsen (N. A. A. Line) Explosives | Atlas Assurance Co. Dupont Duco & Paints i (Fire, Marine & Automobile Insurance) Frigidaire MACONDRAY & CO., INC. MANILA • CEBU STRACHAN & MACMURRAY ILOILO + ' YOUR RED CROSS NEEDS YOUR SUPPORT ♦ JUDGE THE FORD V-8 BY HIGH-PRICED CAR STANDARDS FORD performance can be compared with nothing less than V-8 performance. And there is not ano ther V-8 selling for less than ^5,000. But Ford motoring enjoyment is not limited to Ford V-8 performance. The New Ford V-8 gives you smart body styles of permanent beauty. It gives you the comfort of deeply upholstered seats and transverse springs. And the safety of all-steel bodies and a solid front axle. Judge the New Ford V-8 only by high-priced car standards. Then look at Ford V-8 prices. “After We Sell We Serve” Manila Trading & Supply Company Branches: Main Office-Port Area City Branch: Iloilo-Cebu-Bacolod MANILA Plaza Sta. Cruz IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 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 Here’s how to get Manilas! Meralco Street-Car Advertising Interior Car Cards Back of Fare Receipts -J, - ] ’ 311 r ,/«■• pu-fees' IS| 8ORRTV0 TALCUM.,-J0IVINOS uyebana Exterior Dash Signs Bumper Signs Philippine Tobacco Agent: Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby! List of Distributors fur nished upon re quest to — C. A. Bond 15 Williams Street, New York City Collector of Internal Revenue Manila, P. I. MANILAS Business Managers are constantly striving to increase the volume 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 134 San Marcelino Telephone 2-19-11 made under sanitary conditions will satisfy your taste I (Health Bulletin No. 28) Rules and Regulations for the Sanitary Control of the Factories of Tobacco Products. •‘Section IS. Insanitary Acts.—No person engaged in the handling, preparation, processing, manufacture, or packing of tobacco product or supervising sucjh 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; IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE. AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 is whetted to enjoy a wholesome meal— It is brewed by San Miguel Brewery TO EUROPE BY AIR TRAVEL BY MODERN AEROPLANES OF THE ROYAL DUTCH AIR LINES (K. L. M.) WEEKLY PASSENGER AND MAIL SERVICE BETWEEN BATAVIA (JAVA) AND AMSTERDAM (HOLLAND) VIA PALEMBANG, SINGAPORE, ALOR STAR, BANGKOK, RANGOON, CALCUTTA, ALLAHABAD, JODHPUR, KARACHI, JASK, BUSHIRE, BAGHDAD, RUTBAH, GAZA, CAIRO, ATHENS, BUDAPEST AND LEIPZIG. 9000 MILES IN 8 DAYS For full information please apply to EASTERN & PHILIPPINES SHIPPING AGENCIES, LTD. ; Escolta 8-12 Manila (Comer Jones Bridge) Tel. 2-26-96 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Subscription and United States: K.Off per year Foreign Subscription: $3.00 U. S. Currency, per year Governor Murphy’s Message to the New Legislature Mr. President, Mr. Speaker, and Members of the Legislature: We are assembled in this first meeting of the Tenth Legis lature at a time when important changes are impending in the form of our government and in the economic life of our jcountry. Legislation enacted at the recent session of Con gress and formally accepted by the last legislature definitely envisions the eventual withdrawal of American sovereignty jfrom these Islands and the establishment within a few years jof an independent Philippine Commonwealth. > At such a time it is perhaps unavoidable that uncertainty ■and concern about the future should exist in the minds of Jmany persons, especially of substantial business enterprises land investments. We need not be surprised or unduly alarmed >'to hear in some quarters expressions of doubt or fear. It jcould hardly be otherwise. Capital and business always 'abhor political change. In such a period they hesitate to make commitments or expend activities until the future becomes reasonably clear and certain. There are several factors in the present situation, however, that are reassuring and encourage us to meet the future with confidence and high hopes. of nations under more favorable conditions and more friendly auspices. Filipino People Fully Equipped with Experience In Art of Democratic Government The Tydings-McDuffie Act, which will become in due time the basic charter of home rule and self-government in the Philippine Islands contains many provisions that safeguard fundamental rights and liberties of private citizens that have been identified with American liberty and progress through many generations^ Nearly two decades of practice in the art of democratic government under the Jones Law have equipped the Filipino people with an experience therein seldom if ever possessed by the people of a new and independ ent state, an experience that will constitute a virtual guaran ty against the mistakes and excesses commonly associated with new governments. The reins of government will not fall into new and untried hands. Radical and fundamental changes in governmental organization and practice, though permissible, are not required in the new regime, nor apparently contemplated by responsible leaders. Strange political meth ods and onerous regulations are not seriously proposed. The attitude of those in positions of authority is one of sobriety and- earnestness, marked by a commendable dis position to take a realistic view of the problems that confront them. " ' ' ’ ____ ___ ___ _____ .._r______ „ T Let us remember, too, that the American flag still flies and opposing such measures, and to make ungrudgingly in Philippine territory. American authority will continue whatever sacrifices are reasonably required to assure their during a reasonable and necessary period or transition ’and' goVerhmerit th'e1 means n{ ™™wiriinfr thoco omonitiM nnd People Provided with Opportunity to Prepare For Responsibilities of Independent Statehood Through this union of favorable circumstances, under an enactment framed as far as possible to meet our peculiar needs, we are provided with an opportunity to prepare for the responsibilities of independent statehood before they are laid upon us, under conditions of peace and public order, ^ith a government fully organized, stable, and financially secure. We shall be remiss in our duty if we squander this unprecedented advantage through inaction or delay. By attending well to the business of the present we may give further assurances for the future. The regular processes of government should go forward with unabated zeal so that the Philippines may enter the new .order as a. going concern in full strength and vigor. The maintenance of a sound fiscal , condition in all branches of the government, with expenditure limited to income, public revenues stabilized by regularity in assessment and efficiency in collection, is of first arid immediate importance. This has been exphasized on numerous occasions. In spite of hardships and adversities, and the admitted difficulty experienced by some sections in meeting tax obligations, we must realize the practical and imperative necessity of main taining dependable public revenues. ‘ Condonation and remission of taxes unattended by corre7 sponding retrenchment in government costs force curtailment of the public services that government is expected to provide'. Public schools for the education of our children, hospitals for the care of the sick and unfortunate, police protection, the maintenance of courts for ensuring private and public justice to all our citizens, the building of roads and bridges and other public works, adequate machinery for free elections, are all threatened by every request for tax remission.. Suspension of Taxes Without Suspending Services Will Lead to Insolvency i Inequalities should be corrected and unusual hardships relieved in the orderly manner provided by law. But t6 suspend tax payments without at the same time suspending the services that taxes buy will lead' only to insolvency an<| chaos,' It is the duty of:all citizeni, ia§' it may be their pridel to Share with public officials the responsibility of avoiding in Philippine territory. American authority will continue whatever sacrifices are reasonably required to assure their during a reasonable and necessary period or tranfcitioii’ and ’ ’ goVerhmerit th'e1 means of providing these amenities and adjustment to guide and protect the new government, and essentials of a modern civilized community. ! stand guard piverthe safety; and welfare ofitW:nfciv slate/ r'.The'iriathlrieryi tor the -'Levy atfd. collection. if taxes shoulq Assurances have been given by President Roosevelt and be kept always in a state of high efficiency. It provides the leaders of ..Congress that if changes in the law appear needs- sinews of government and all the social serviced depend upop sary or desirable they will be undertaken. It is doubtful it. Delinquencies should be discouraged by energetic an<j rghpt.her.in modern, times. a,ne.w.state and-anew government— impartial • enforcement.-of--penaltioe- and floaetiono^ and-by have , emerged into equal apd< sovereign status jn the society , periodical assessments that reflect actual, values*<-The remedy 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 for inequalities and serious delinquencies is largely in the hands of provincial officials, but the legislature should make whatever changes in the law may ’ be necessary to facilitate effective and equitable administration. In the field of national economy there may be much that in these days is controversial, but there is one fundamental which is beyond debate; the policy of economy in government itself. It is of the utmost concern that every. branch of government be held in thorough solvency; that the insular, provincial and municipal budgets be balanced year after year by untiring inspection and detailed management. Not only is national progress dependent on this policy but private prosperity as well. In the absence of a balanced budget, real estate values are impaired and the flow of private credits becomes restricted. Reviews History of Economic Relations With America, Describes Problems Since I first addressed this body, the Philippines by force of circumstances has entered upon a realignment of its na tional economy. During the first ten years of American rule, Philippine economy was largely independent of that of the United States. There followed a brief period of free trade with limitations designed to prevent the development of serious competition between the two countries. This policy of complementary economy was interrupted, however, by the exigencies of the World War, and we presently passed into a stage of unrestricted free trade. The resulting competition with continental interests eventually reached a point where restriction was demanded. Unrestricted com petition had threatened the entire fabric of the commercial relations between the two countries. Within the past twelve months we have been abruptly, and perhaps wisely, forced to return to a stage of economy which will supplement and com plement that of the home country, and permit a continuance of our mutually beneficial commercial relations with each other. The problems incidental to this reform are numerous and rest principally with the executive. Certain phases, especially control of the domestic sugar supply and gross limitation of sugar production, will require legislative action. It is hoped that the necessary measures will be initiated without delay. We all realize, I am-sure, the need of close cooperation between the executive and legislative branches in order that legislation may be wisely accommodated to the Federal laws and the administrative measures adopted thereunder. Beyond realignment of our trade relations with America, there lies the entire field of future economic development. The immediate future leads mainly in the direction of agriculture. We should canvass the field of those solely tropical products that are in profitable demand either in the United States or locally, and attempt their introduction in those regions where soil and ’climate are suitable. Warns Against Stimulation of Crops Already in State of Over-Production Care should be exercised not to stimulate production of export crops that are already in a state of world over-pro duction, lest we find ourselves again burdened with commo dities without price. It may prove desirable to pro duce cotton, coffee and tobacco, not for export but for our own consumption. We should look to a diversification with numerous small products enjoying steady demand and (Please turn to page 11) Henry B. Day: New U. S. Consul at Manila When the Philippine legislature met in special session and accepted the TydingsMcDuffie act, May 1, the clause in the act limiting immigration into the United States (mainland) from the Philippines to 50 immi grants a year went into effect. This brought Henry B. Day to Manila as U. S. consul, to vis6 passports. He is the first American consul sta tioned in the Philippines since 1899. His last predecessor was Oscar G. Williams, of whom this notice will say a word or two. His earliest predecessor, of whom there are Manila records, was, as he is himself, a Connecticut Yankee: George W. Hubbell, of Bridgeport. Consul Day says there are Hubbells prom inent in Bridgeport today. No doubt they are descendants of the early seafaring Hubbells of whom Consul Hubbell, in Manila, was a worthy scion at that period sub sequent to the War of 1812 when New England clippers set the shipping pace for the world, England not excepted. Hubbell died here, May 3, 1831. Relatives in Bridgeport sent a monument to Manila to be raised over his grave. It came consigned to the firm he represented, good traders and bankers of the period, Peele, Hubbell & Co. But it couldn’t then be raised over his grave. He had been a Protestant, also a Free Mason, there was then no international cemetery at Manila (afterward granted at San Pedro Macati, and now known as the British cemetery) where foreigners who were dissenters might be buried according to the rites of their respective faiths. Besides, Hubbell had not been an accredited consul of the United States; he was a commercial.agent, 1825 to 1830, of the United States, without the cognizance of the Spanish government. So his monument lay in the warehouse of Peele, Hubbell & Co. until that company was liquidated in the 80’s; and afterward too, when its premises, at the intersection of calle San Gabriel and calle Juan Luna (then Anloague) had become the premises of the Hongkong and Shanghai Banking Corporation. One of the bank’s officials invited the city’s attention to this fact in 1904, where upon the city erected the monument where it now stands, at the west end of Plaza Cervantes, in front of the Bank of the Philippine Islands. Our data are from Salt and Heistand, the division of their manuscript having to do with public monuments in Manila. They add that the first duly appointed Anglo-American consul was Alfred Edwards, of Hubbell’s firm, who was appointed by an Exequatur Regis issued by the Sjwmish state department March 4, 1834, and sent to the government of the Phil ippines by royal order dated March 10, 1834. Edwards was, no doubt, another of those aggressive young New Englanders who had fqll part in America’s domination of commerce on the Pacific until privateers in the service of the southern Confederacy during the Civil War sunk more than 900 of their ships. From that blow American shipping never recovered, partly because the injury was so great and partly because America began giving her major attention to development of the west and the building of interstate and transcontinental railways; and to this day, instead of carrying both for herself and for other countries throughout the world, as she did then, threefourths of her freighting on the Pacific is done by foreign ships. New England found enough interest in fishing and in manufacturing. American interest in the Philippines went to seed until Spain ceded the islands to the United "States. At that time history gives her consuls of mediocre calibre at Manila, at Hongkong and at Singapore. Their mutual and enthusiastic blundering, however well meant, involved Dewey with Aguinaldo and the Hongkong junta. Consul Williams’s elation was unbounded. His ability surpassed that of his colleagues at Hongkong and Singapore; when "the crisis came he performed his duties well and was commended by Admiral Dewey and the state department. . .. His relations with the Filipinos were friendly and sympathetic—” a feeling that carried his activities far beyond the scope of his duties. In the new government he wanted a commissioner ship, of customs, of agriculture, or of public instruction. He was dis appointed of his wishes. His belief that the Philippines would welcome annexation as a permanent solution of their situation was oversanguine. All he did in this matter was quite beyond his duties as consul, and though in good faith, it was embarrassing in extreme to the United States. He did not go into the new government at all. Consul Day, Yale '27, has duties in administration of the American immigration laws as affected by the Tydings-McDuffie act that are strictly ministerial. He makes it his business to ascertain and follow them con scientiously. If an applicant is legally entitled to have his passport vis6d, it is done; otherwise it is not done. Rules of the state department on all such matters are routine itself, and penalties upon a consul for infringe ment or violation of them are severe. Outside his office Consul Day has intellectual interests. He is studious, and the Pacific scene intrigues him greatly. But it is his business to be mum. He is mum. He confesses, however, a liking for Manila. He is quiet, observant, genial. He makes America a first rate representative. His office is aided by the governor general’s. At the latter an appli cant’s queries may be answered; he may be directed a bit in making his application. At Consul Day’s office this may not happen, law forbids it rigorously. Consul Day has had 4 years’ consular experience. He qualified for the work in 1930 and spent 8 months at Naples before he was sent to the Far East. Here he spent a year and a half at Hongkong, and nearly an equal time at Singapore, and then was sent here. His home is New Haven, where his father is a lawyer. He knows his post and how to discharge its duties in the rigid way the law requires and clearly defines. July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 Manila Hemp in the Philippines' Export Commerce Now of secondary importance, not long ago it was the islands' best cash crop. Will it recover? A little more than a century ago a friar by name of Despallarguez who was a parish priest in the Bicol region of Luzon, made a device to lighten the labor of cleaning pulp from Manila hemp fiber. It was a simple device, to hold a bolo blade at tension over the hemp as a workman pulled the _____._____ „ _________ ________ ________ r__________ tucksie, a section of. a blade of hemp, under the knife. It was did nothing; like good bourbons, which in fact they were, they enough to make Manila hemp a popular cordage fiber, it at learned nothing, forgot nothing. Their share tenants worked once induced a worldwide trade in the fiber. The industry when and how they pleased, soon came to be the primary one in the Bicol region, and spread from there to the Bisayas, Sa mar, Leyte, Bohol, Negros. And no change in. the method of stripping, occurred. The hemp ‘ was planted, but not cultivated. Men accumulated large planta tions of it,-but small farms easily competed.’ , r . On plantation and farm the method was the same. Strip ping, sundrying, baling loosely, 1 picul to the bale,’ and getting the fiber to market was the . whole process. It was all done by the share system, which kept the workmen- in- debt to the planter, the planter in debt in turn to the Chinese buyer or the European exporter.- Strip pers worked when they pleased, usually ending up with ruptures. Planters topped all others for impro vidence. They, had nothing to do at all. They vegetat ed like their fields. All the world wanted Manila hemp, only in the Philippines was it to be had. This made the Philip pines, about to slip from Spain’s inert grasp, at the turn of the century, a world prize worth, " if necessary, an in ternational war. Germany had got some islands in the Pacific, from Spain, who always protested but never could resist effect ively, and Germany then had the Philippines in view. England had intervened to halt the spoliation of Spain in the Pacific; she bought much hemp, her own supply and that for the United States as well, and would not have let the Philippines, fall to Germany, whose rise disturbed the balance of power in Europe and whetted the envy of British rivals;. Fortuitously America got into conflict with Spain, and was induced to get the Philippines ceded to her. Practically, America ^was innocent of trade motives. But the Wilhelmstrasse and Downing Street knew what they tyere doing.; It inconvenienced no one to have American sovereignty oveT the world’s Manila hemp lands, the Philippines. But it was a means of getting direct commerce estab lished once more, as it had existed prior to the Civil War in America, between the Philippines and the United States. In the. industry itself there was no change. The planters still Manila hemp continued to be the Philippines’' prime export, though no one touched the in dustry to improve it. •But now’ Leonard Wood was made military commander and department governor of Min danao and Sulu, headquarters at Zamboanga. He found the gulf region of Davao rich and untilled, just a vast tract of public domain, with Moham medans along the coast tolling the forest products, hemp in cluded, the pagan peoples back of the coast brought out to market. He invited American veterans to settle in Davao, to try hemp and to grow coconuts. A few score of them did so, and some of them got good plan tations developed. They planted hemp and.cultivated it, and thus'grew a superior fiber. One of them devised a mechanism, to work by waterpower or sweep, to do the pulling of the tucksies under the knife. This added to the fiber a man could clean in a day, it also bet tered the quality of the fiber. A few of the plantations we re,, for individual pro jects, fairly large. It had been proved that hemp could be commercially grown that far south; Davao pro duced more hemp every succeeding whole output, and year, but still a small portion of the the inert planters of the Bisayas and Luzon paid no atten tion. Then, about 1910, the first colonies of Japanese went to Davao to work in the hemp fields. The colonists knew how to work, and how to combine their efforts and pool their interests. If they married women of Davao, their wives could hold land; if they took over lands by leasing them, Filipinos could lease them from the government and even tually gain title to them, and thus enjoy a small rental yearly by exercising, without really making use of, themselves, their public-lands rights. (Please turn to page 14) 8 THE AMERICAN CHAMBER OF. COMMERGE JOURNAL July, 1934. Philippine Copra’s Production and Prospects Today Marginal prices limiting production; whale and palm oils big competitors of coconut oil in the United States The technical monthly review of the Philippine copra and oil market will be found in its usual place in this issue of the Journal. This general commentary on the industry during the American period in the Philippines, the last 25 years especially, is accompanied by 2 valuable tables from the latest yearbook of Frank Fehr & Co., London, and the reader will find them most enlightening concerning oils production and consumption throughout the world. One lists the animal and vegetable oils and fats in the world’s commerce, and rounds out with margarine figures in 8 leading margarine making countries from 1931 to 1933 inclusive. The other gives world copra exports by countries of production from 1906 to 1933 inclusive. Observe how copra production has upped from year to year. Philippine exports alone increased 125% in 1933; but it happened to have been a year of unusual production, following one of very light production. So 1933 is not a true index of our production, long periods as well as ruling prices have to be considered. Gen erally speaking, the growing production of oils reflects growing demands for them. Thus there is actual or po tential increased production of oils competing with coconut oil. The supply forges ahead of demand, gets out of ratio with the world’s growth of population. With the steady increase of butter production, with the growing use of milk and the advance of the dairy industry, particularly in the United States, copra prices are naturally at the lowest ebb in their history. Both copra and coconut oil are at bedrock pri ces. About the only bright spot on the horizon of the coconut industry is the deflated peso, which, following the dollar downward, stimulates Europe and Japan to buy copra. Last year the Philippines exported 310,820 metric tons of copra. Europe bought 88,663 tons, Japan 5,496. The proportion going to Europe is larger this year. But buying is at the buyer’s price. The copra market is glutted. Production will probably be pegged by the law of supply and demand, and new planting can hardly exceed the replacing of old trees going out of bearing. This is a vital fact in the Philippines, copra production here being so large. It had been so right along. Then the World War caused nations to bid grotesque prices for copra, a munitions necessity because of the glycerine in the oil, and heavy addi tional planting was provoked. The table shows this. In 1906, when the islands sold all their copra overseas and made no coconut oil for export, their copra production was 30% of the world’s total. Last year their copra exports alone were 30% of the world’s total, but 240,000 metric tons were pro duced in addition, to make 160,000 metric tons of coconut oil sold overseas—all but. 2,000 tons of it in the United States. Refer, please, to the table on oils and fats., It estimates our coconut oil exports last year at 158,928 metric tons. The Port'1 of Manila, yearbook'of the harbor board/ quotes them fis beipg 159,62:1 metric. tons. - .In. the United .States, 185,870 tons were made,during the year. World production was but 784,580 metric tdns,' ot which our own production Was nearly 20%. To produce ithe oil extracted in the . United. States’ COPRA SHIPMENTS consumed nearly 300,000 metric tons of copra, and it is inter esting to note that 208,000 metric tons of this supply, or 2/3 of the whole, came from the Philippines. The United States is the world’s largest consumer of coco nut oil, the Philippines far and away the largest producer of the wherewithal, copra. About 80% of the oil is used in making soap. Under the new excise tax of 3 cents gold a pound, other oils may be used more for soap than they have been in the past. The great standard soaps will probably still be made from coconut oil, because quality sells them, plus worldwide advertising; manufacturers may absorb a portion of the new cost, and make copra producers bear a portion of it, and raise prices a bit and make consumers pay the remaining portion. But there are other possibilities, particularly there is recourse available to the smaller makers of soap. Whalers are being registered as American ships, and the whale oil they produce can be brought into the United States duty free and used for soap. Palm oil costs less to produce than coconut oil does; and though it pays the excise tax, it will offer coconut oil constant competition. Sunflower oil comes from Russia, where costs are no factor. It is not subject to the excise tax, while the duty is 1/2 cent a pound. This oil can be used for soap. Though perhaps every soap manufac turer will take certain quan tities of coconut oil, for the prime lathering quality of the soap containing it, the excise tax may nevertheless provoke widespread substitution. Coconut oil is, in short, ad versely affected by a paradox. Outrivaling other oils for the uses to which it is put, pro ducers can’t command the market for it: price advantage running against it, substitutes for it will be used up to the limit that might affect sales of the manufactures, notably soap, containing these substitutes. Thus tallow may be substituted for coconut oil in soap; and foreign tallows, not subject to the excise tax, come into the United States at the tariff rate of 1/2 cent a pound. These factors all tend to depress the coconut oil market, and current and prospective prices can only discourage production and eventually reduce it. But contrary factors aside, it may be taken as conclusive that the United States will require a large supply of copra right along. The objective of the 3-cent excise tax is to raise the level of butter and cottonseed prices in the United States. If this is effected, margarine prices will be higher too, and margarine containing coconut oil will have an easier market. The level of prices of all oils and fats will also be affected by higher prices for any of them. There is. a chance to wage a legitimate fight for our copra in the American market, and this should be done. Especially should it be seen to by our government that, the excise tax aside, conditions in the Amer ican .markpt are not discriminatory against, copra. It is reasonable that no oil from a source outside the United States mainland should have the1 slightest advantage ever coconut oil, in that market; and some of them, as has been shown, now do, congress should be urged to correct the situation without delay. Given America’s need of copra, she can best get it from the juiy, ' the America Chamber Of commerce journal 9 ^a|^.e^he '* iUXD^S °P UBJsjtb§J>hUftjfoi«j O shipping on the Pacific. If she did this^.^he^.lpwe^t charge Bu.t the, prospect, of independence from America after 10 on her national income for her necessary copra,s^p^.l^ woyld < yeai^mjpaces^ cojpra,. still more gravely. In bringing this be the net price paid the Philippines for t-fyeii; ^opj-a-rthe^grQss „ a,bpu^Jt‘i^.§quare|y up to the Philippine government to find price less freight and insurance. The time for such strokes of ..................... . major statesmanship is, of course, the 10-year commonwealth period, that. may begin- next year, prior to the independence out, in the meantime, what to do with copra and coconut oil. of the.f Philippines from „the -United States. It is to be hoped1 that second thought will teach Amdrica, the folly of fatally injuring the; Philippine co pra, industry with the excise tax on coconut oil, and the wisdom of keeping the industry in a fairly .thriving con dition. About 4,000,000 inhabitants of the Philippines largely rely on copra for their spending moq.ey, and millions of them for a part of th'eir livelihood. America ought; to consider this. She should also consider this: while she can so rig her tariff' arid taxes a$ to cut' off from her markets a large portion ' of the .present copra supply from the Philippines, she cah-’t findsubstitute supplies of other oils in countries whose markets are as important to . her as that of the Philippines. She can’t fihd other oils under her'own flag; nor can she, by ruling' opt copra, do, les§. than shift the .oils and.fats market} from, what-. it is now, a buyer’s market, to a> ^seller’s market -in , which. ther seller—ungrateful '£6 America for riddfiij; him copra’s .competition—will tell America what she_• must pay him for other fats fend oils. And-all of these are, for sdap',1 inferior to coconut oil. Thatis the viewpoint that a rational survey of the^ituatidn Law forbids that the excise tax..^qllections, which are to be returned to the Philippines when-collected, at 3 cents a pound, ANIMAL AND VEGETABLE OILS AND FATS PRODUCTION OF THE WORLD (Compiled from such Statistics as are available.) Where figures of Production are not available, Export figures are given, and are shown thus! (Tons of 2240 lbs.) OLIVE OIL Italy......................... Greece.............................. France and N. Africa. . Portugal.......................... Other Countries............ China!............ Japan.............. Great Britain. Germany........ Holland.......... . Denmark........ Sweden....... U. s. A.......... Egypt (1)....... Great Britain. 1933 365,000 140.000 95,000 94.000 12.000 45,000 1932 1931 380,000 365.000 140,000 118,000 110,000- 26,000 100,000 125,000 15,000 65,000 65,000 40,000 COTTONSEED OIL 1933 British W. Africa!.. French W. Africa!.. Dutch East Indies!. Belgian Congo!....... Malay!...................... PALM OIL 1933. .. 120,000(1) 25.000(1) . . 109,000 .. 45,000(1) 10,000(1) ' 1931 126,025 35,000 16,529 149,789 4.827 35,706 4,680 Great Britain. Germany........ Holland.......... 1932 701,714 36,000 77,348 7,581 1931 632,700 44,000 90,442 8,100 1931 119,857 28,103 62,260 36,348 5,136 PALM KERNEL OIL 1933 1932 ............. 57,622 71,124 4,849 5,089 ............. 109,934 136.350 ................ 13,277.......... 15,733 U. S. A....................... European Countries. ■ CASTOR OIL 1933 21,206 30,000 1931 55,722 1931 19,352 35,000 Chinaf. Germany. Holland.. Denmark. Italy.. . Holland... U. S. A. . Denmark.. Germany. . WOOD OIL 1933 ... 68,000 BUTTER 1933 .. 110,000 .. 775,062 .. 180,000 .. 50,000 .. 30,000 . .. 470,000 1932 100,000 738.950 185,000 45,000 25,000 425,000 ! “Exports. 1931 50,000 1931 594 3,334 3,400 3,545 6,046 10,305 1931 100,000 976,000 195,000 45,000 25,000 420,000 (1) - Straits Settlements (1).. Ceylon!.............. Java and Other D.E.I.!.......... Philippines!....... U. S. A.............. Great Britain... France................. Germany............ Holland............... Denmark............ COCOANUT OIL 1933 8.323 10.000 52,500 1 7,869 . j(Jan. 'Nov) .. 158,928 .. 185,870 .. 65,157 .. 123,764 75,140 .. 26.945 45,488 .. 24,596 1931 22.037 6,000 48,139 China!............ Great Britain. France............. Germany........ Holland.......... Denmark........ U. S. A............. Great Britain.. France........ Germany.......... Holland............. Italy................... Sweden.............. Japan........ Great Britain. Germany........ Holland.......... Italy................ U. S. A. . . Argentine!... Australasia!. Uruguay!... U. S. A. .. Germany. Russia (1). U. S. A.......... Holland.......... Great Britain. Germany........ Denmark........ Norway.......... Sweden..........; Estimates. GROUNDNUT 1933 LINSEED OIL 1933 .... 154.537 .. .. 73,777 . . . . 78,031 .. .. 105,790 .. .. 88,605 .. . . 22,507 .. . . 10,546 RAPESEED OIL 1933 7.288 5,300 3,613 3,030 3.406 LARD 1933 .. 792,230 SUNFLOWER OIL 1933 .......... 4,962 .......... 275,000 MARGARINE 1933 ... 108,138 .. .. 60,000 ... 176,000 ... 365,000 . ' 75,000 ... 45,000 ... 31.000 . .. 50,000 . on Philippine coco nut oil sold in the United States, be distributed to the producers of coco nuts. Then other means for their re lief should be found, for the tax will 'llfill make them pay 121,170 x x r n 89,989 taxes out of all 39,625. 64.603 22:eol 1 “’Ji? proportion to what other farmers pay. 1932 : : 1931 A »• x .1 19,062 . 48.000 On last year s ba34,750 ■ 49,904 J 299:987' 238,242 sis (to° high for an 28tso" '15029 average) the excise 4,64?; 7.987 .tax would be P38,1932 : 1931 780,986. TheUnitio9.3ii(, loris! ed States bought 69,492 . 77,851 __ 131,797 100,539- 157,509 metric tons 134,781 125,866 . 13:011: ' 11:356 of coconut oil from the Philippines last 1932 . 1931 . , , 4,460’ ’ 8,865 year', and the copra » -to make 131,040 22,546'”' 3:§7o ' tons • more, a total of 288,549 tons for 1932 -W31 . ’ the year. Make » . « this oii pay a duty i»i' ',of 2 cents a pound 702,437. 1,693,758 ^hen independ1932 , i93i ■ $hce comes, as the 5,40d '■ 3,228 250,090: 300,000 American tariff to1932 1931 day would do, and 8o’ooo 19o:ooS the -business would 440,000. 450.000 be practically killed 75,000. • 79,000 1 J 32:090.... to.ooo while the producers 50,000 51,000 woupi, of course> be constrained merely to sell their copra in the world -market as affected, by the American and other tariffs. . Given, the trend .of tariffs .today, it can’t even be relied upon that copra will remain on the American free-list. In the United Kingdom too, the. Buy British policy may at any time develop attribute? equally adverse ;to .easy sale of our copra., These fhctors combine with others to'point'1 & definite limi tation,, if not ta marked decline, of production,Philippine,<?£>pr^No mdredsBsid problem confronts the islands;10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 cloth 48%, earths, clays and products 191%, electrical ma chinery, etc. 304%, fertilizers all kinds 64%, fiber products 243%, fish products 269%, fruits and nuts 244%, glass and glassware 127%, rubber and products 140%,. nonelectrical instruments, and apparatus 87%, iron and steel and products 103%, machinery, etc. 95% leather and products 160%, meat and products 7%, dairy products 92%, oils all kinds 167%, paints, pigments and varnishes 191%, paper and products 41%, silk and products 2%, vegetables 22%, all other imports 46%. The American Chamber of Commerce O F T H E Philippine Islands (Member Chamber of Commerce of the United States) DIRECTORS H. M. Cavender, President K. B. Day, Vice-President ■ John L. Headington, Treasurer J. R. Wilson, Secretary C. S. Salmon J. C. Rockwell E. M. Grimm Paul A. Meyer Verne E. Miller ALTERNATE DIRECTORS E. J. McSorley L. D. Lockwood S. R. Hawthorne F. H. Hale E. E. Selph, General Counsel EXECUTIVE COMMITTEE: H. M. Cavender, Chairman K. B. Day J. R. Wilson COMMITTEES 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 E. E. Selph J. R. Wilson 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 8s 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. Headington J. C. Rockwell THE CONSTITUTIONAL CONVENTION Just a month after the highly partisan general election whose forensics failed to bring out much more than half the vote, the voting for delegates to the constitutional convention was naturally very light. But with many competent dele gates among its members, the convention will go into session July 30 and evolve the Jones law of 1916 into something suit able for the commonwealth. The public gives the whole movement slight attention, men here as elsewhere live in the present if they find it good enough; and in the Philippines they do find it that way. The standard of living keeps up astonishingly, and the volume of buying of staples and luxuries. If an omnibus constitution is avoided, the legislature will have the task of shaping up the commonwealth, its economic policy especially. This -will be- the greater test, the more decisive step. Since the Philippines sell so much in the United States, it will be how much they arrange to buy there, rather than the precise type of government under which they carry on, that will arouse interest there and create friends for their exports in that market. We assume that everyone,' by this time, realizes that market is-vital. A COMMERCIAL BARAGE So much is heard of the increased sale in the Philippines of Japanese textiles, that little attention goes to the empire’s gains in other fields. The gains, however, are general. We show how far 1933 figures ran above 1932: Breadstuffs 250%, cars, etc. 117%, chemicals, drugs, dyes and medicines 111%, cotton cloth 91%, total cotton including THE WORLD BEGINS TO KNOW US Carl N.Werntz, president of the Chicago Academy of Fine Arts, who spent several months of the early part of this year in the Philippines, will never cease praising the islands as a field for artists and writers: where material is abundant on every hand, and almost not exploited at all. Now Alexander Kulesch, the young Russian impressionist who studied the pagan peoples of Mountain province, has made the stage to Asia with purpose to reach America and exhibit his pieces there. When he learns English well enough to do so, he plans writing about his mountain friends. To this end he studied their culture closely. A young American couple have just published a book on the Bontok folk. Americans resident here are dabbling at writing about the islands more than ever before, finding more, interest in the subject among editors. Harry Carr won honorable mention from the Pulitzer Prize committee for his letters from this part of the world to the Los Angeles Times, which seems to have syndicated the series. Many of the best of these were about the Philippines, which won Carr’s admira tion. Frequently writers and scholars (who always lecture 'when they return home) visit Manila, and sometimes other towns of the islands, and frantically digest material for news-: paper letters or magazine articles. The world begins to know us. The word-of-mouth adver-: tising that will give the Philippines the good name they deserve will add quickly to the stream of travel running this way. It will correct particularly the baseless dread of our climate as being unbearably hot. It will extoll our winters, unsurpassed anywhere. You look out over the Wack-Wack club grounds, which remind every Britisher of the Devonshire countryside, and you think how many winter colonies could have just such grounds here, the members cottages and mansions around them, and how these grounds and homes would be maintained so cheaply that steamer fare in reaching here and getting away again would more than be offset by the saving. But choice would not have to be inland, but near the sea where every land and water sport could be followed at will; for during out winters, when our weather behaves to bracingly and depend-: ably, so do our seas. Off with nostalgia’s blinkers! Behold the Philippines as just a pleasant land in which to live. Renounce, should you feel it, philistinism as unworthy of the travel you have enjoyed and the books you have known. The notion that the Philippines will one day be at least the winter home of thousands of educated western folk is most intriguing, because it may be in the cards. If large sectors or even whole countries in Europe grow intolerable to all but a fixed culture, so that folk feel their souls smothering, why not the eclectic Philippines as a refuge? Things are all but certain to turn out that way. Your refugee first suffers spoliation of his fortune, migrates .with an impaired one and seeks a friendly land where his little will go far; and after the long struggle, psychically wearying, he craves tranquility and security. If the Philippines can be surpassed for peace,’ tranquility and order in their society, then where? . They welcome the stranger, yet politely leave him to his, devices. They serve him, not meanly; they exploit him, not voraciously—never vengefully or to force conformity to creed dr doctrine. ACKNOWLEDGMENT In this issue we are repeatedly indebted to the 1934 year book of the Manila Harbor Board, the work of its comptroller, Lawrence Benton. Sets of these, yearbooks are already all July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL but impossible to make up, anyone having such a set is very lucky indeed; yet from the first edition to the current one, thousands of free copies have been distributed. Each is a little different from the others, besides having in it the latest statistics of Philippine overseas commerce lucidly arranged. We believe we are right in saying that copies of this year’s edition may still be obtained from the board; we are certainly right in advising our readers to make up complete sets if they can, or to begin now and have the current and all future numbers. Not pretentious, the yearbook is good. Interest ing narratives in this year’s issue include an historical sum mary by Commander Robert F. Luce, coast and geodetic survey, who has just completed his tour of duty here, of hydro graphic survey work in the islands beginning in 1791 and still in progress. The systematic work is just a century old this year. Follow narratives from weather-bureau men, Father Charles E. Deppermann, S. J., on climate; Father Bernard F. Ducette, S.J., on activities of the observatory; Father W. C. Repetti, S. J., earthquakes and the mariner. There is a lighthouse map, 2-page spread, of the Philippines accom panying a summary of aids to navigation in the islands, by Jorge B. Vargas, acting head of agriculture and commerce. You learn that our coasts are marked by 216 lighthouses, 150 buoys and 63 beacons. The Farola on the Pasig is the oldest, 1846. The chamber of commerce has a number of copies of the yearbook for distribution, but the harbor board is the source of them in larger quantity. It is again a pleasure to con gratulate Comptroller Benton and the board on their good work in behalf of commerce. Governor Murphy’s Message.. (Continued from page 6) limited world productibility, yielding a total in come of proportion and stability. In this connection attention should be directed to the production of silk, ginger, pepper, cinnamon, cashew nuts, derris root, lumbang oil, and quinine. There is no need for additional agencies. We may rely upon the Bureau of Science for the pure research, upon the Bureau of Plant Industry for dissemination through its regional stations. Many years ago the Legislature established a central experiment station at the College of Agriculture, and more recently an economic garden, also at Los Banos, both of which may serve as trying grounds for new intro ductions. The Sabani Estate owned by the National Development Company, together with a part of the reserve of that company, may also be made available for testing out new pro ductions on a field scale. In deference to the needs of coming genera tions of its people, the Philippines should not delay in this great task of agricultural develop ment. Points to Value -of Developing Livestock, Forestry and Fishery Industries But agriculture is not our only refuge. Today we are needlessly importing beef and other animal foods to the extent of several millions annually. The raising of beef in the Philippines has long been proved entirely feasible. But our livestock industry is now hampered and the continuance of high grade breeding herds threaten ed by imposition of numerous fees in the City of Manila and other municipalities aggregating several times the cost of the services rendered. Instead of fees there are in effect internal tariffs for revenue. This form a mediaeval taxation should no longer be tolerated. The legislature can help materially by providing that fees charged against the handling and marketing of prime necessities of life shall be limited to the actual cost of the services rendered. We should riot permit the levying of taxes in the guise of fies that result in curtailing the diet of the poor and the progress of a native industry. . In larger utilization of our forests, our fisheries, and our mineral resources, there is every pros pect of profitable advance. In minerals we nave seen great progress in the past year and we are looking forward to a considerable increase in the national income from this source. It is commonly recognized that the mainstay of Philippine economy has for years been the profit in trade between the Philippines and the United States. The Philippines nave sold their produce in a protected market and, due to the tariffs there levied against foreign competitors, have received an advantage equivalent to a substantial bonus. The result has been a balance in trade so highly favorable to the Philippines as to wipe out. large negative bal ances with practically ali other important trading nations and still leave a substantial net gain. Even after all the limitations that have been effected, we will still be greatly favored in trade with the United States. Advises Raised Tariffs Against Foreign Imports of Goods in Which U. S. Is Interested In spite of these well known facts, we have failed to reciprocate in measurable degree. Of recent years, at the very time we have been increasing our sales to the United States we have been decreasing our purchases from the United States, a fact that has often proved embarrassing to those seeking favorable consideration of Philippine rights and interests in the United States markets. This situation can be remedied and our plea fortified for liberal treatment in the United States market by raising our tariffs against foreign imports of those items in which the United States is specially interested. I strongly commend this matter to your serious consid eration. Human values must receive appropriate appraisal in the life of the nation. Human relationships must be given first place in our thoughts and in our plans for the future. We must build here a social, economic and political structure that will endure because it serves the fundamental human needs of the people as well as their material interests. To assure the development of such a society in the Philip pines the people must have an awareness of social problems and responsibilities. The ul timate objective of such a program is a normal, contented, healthy people, free from unrest, dissatisfaction or fear. Outlines Specific Program of Legislation on Social Problems During the past year genuine progress has been made in the development of a modern social-health program in the Philippine Islands. To maintain our progress, steady and increased support must be given to activities already begun, and other institutions and measures for social betterment should be established and inaugurated. I have in mind the following: 1. Provision for relief of distress due to un avoidable unemployment; 2. A rounded and intelligent program of needed and essential public works maintenance and construction giving employment to needy men with dependent families; 3. Housing projects to reduce the deplorable slums in Manila and the provincial cities, making possible in these areas that minimum of healtn and decency necessary to good citizenship and public order; 4. A probation system established on a pro fessional, civil service basis through which first offenders and non-institutional types can be dealt with in accordance with modern principles; 5. More adequate provision for the care, treatment and training of the mentally deficient; 6. More extensive facilities for the care and training of orphaned and delinquent and subnormal children; 7. Modernization of public health work by extension into the homes. If the people of the Philippines are to be made a healthier and stronger race, public health work in the Islands must be given a new im petus. Improvements in the health of the nation must begin in the homes of the people. In this phase of public health and social work, the Philippines are far behind many other coun tries. Commendable work has been done by our public health service in environmental sanitation, and in the treatment of disease in hospitals and dispensaries. But the protection of the health and welfare of the family in the home, by measures already tested and proved here and elsewhere, is being neglected and' practically ignored. The remedy for this situation is in the hands of this legislature. An adequate public health nursing and social service should be provided. It can be most efficiently and economically done by establishing puericulture and community health-social centers, whose ministrations of mercy and instruction in the crowded sections of the larger cities and also in the barrio homes, will counteract the present high infant mor tality rate, and the excessive mortality from certain of the preventable diseases, especially tuberculosis. Leadership and responsibility in establishing such services should be assumed by the insular government without further delay. Stresses Lack of Medical, Nursing Facilities Among People in Provinces Thousands of our people endure needless sufferings and large numbers meet death pre maturely because of lack of medical and nursing care. In certain provincial areas fully ninety per cent of the deaths occur without modern medical treatment because no physicians are available. Our medical graduates have tended to concentrate in Manila and a few provincial cities. Some means must be found to correct this condition and provide all our people with the benefits of modern medicine. The remedy may be found through cooperative effort by the government health agencies and the official representatives of the medical profession. I hope that definite steps to secure such cooperation and solve this problem may be taken immediate ly. Otherwise the government must take in dependent and perhaps radical measures. Our provision for the care of mentally sub normal and insane persons is grossly inadequate. Only two institutions are available for housing and treating the insane—the Insular Psycho pathic Hospital and the City Sanatorium of Manila. Both are over crowded. No facilities for the proper care of the insane exist outside of Manila. In the provinces they must be confined in the local jails or allowed to remain at large as a menace to themselves and others, without care and treatment that would alleviate their condition. This condition, is unworthy of a modern government. The facilities in Manila should be increased so as to permit satisfactory care and treatment, and adequate facilities should be provided in the provincial areas. Disabled for normal social and family life, these melancholy victims of a blighting malady require expert institutional care. By law we have made them wards of the State and constituted ourselves their guardians. Let us make our guardianship something more real and substantial than a mere legal principle to be applied in emergencies. It is wise at this formative national period to face eye to eye the social and economic for ces which break down morals and leave men, women and children to neglect and despair. The drab tragedy of the slum, the system of (Please turn to page 18) 12 THE^AMERICAN CHAMBERiGRCOMMERCE^JCURNAE J^y, 193* HowSugarBasRisenandSlioneinthePhililipinBS Eclipsing other expptiwvery materially;, it conf rents pegging at fair, tonnage under the Jones-Costigan act The table on this page, from the Port of Manila, the ex cellent yearbook of the Manila Harbor Board, reports Phil ippine sugar exports from 1899 to 1933 inclusive, or through out the American period in the islands up to the end of last year. It lists all sugar exported from the islands in each calendar year alongside the portion of the total that was exported to the United States. During the whole period there was no limitation of Philippine sugar that could be exported to the United States. Production never reached the nominal limit fixed by the tariff act of 1909; this limit, a mere stipulation, was removed in 1913. But during the period from 1899 to 1909, Philippine products sold in the United States were subject to the American duties. American products sold here were subject to Philippine duties. With 1934 another story begins. To compel regulation of our sugar industry in so far as it is devoted to supplying sugar to the United States, and to befriend domestic production in the United States, the JonesCostigan law has been enacted limiting the sugar that may come from each source—Cuba, Porto Rico, Hawaii, the Phil ippines, the Virgin Is lands, and domestic dis tricts, beet and cane— and the limit for the Philippines is 1,015,186 short tons per calendar year. The job of al locating this quota among mills and plan ters is the governor-gen eral’s. It will be done as his memorandum of June 26 says it will. It will be based on their yearly average pro duction during 1931, 1932 and 1933 in accord ance with a provision of the commonwealth act that continues the quota during 10 years after that, transition government is inaugu rated. The quota applies this year, when ship ments of sugar to the United States are likely to be 1,500,000 short tons or even more. But the governor-general does not impose the allocations this year. He permits the industry to get the whole crop to th6 United States, where 1,015,186 short tons of it may be sold under the quota. The surplus, that may not be sold, about 500,000 short tons, may be ware housed in the United States and will count into the 1935 quota. In 1935 therefore, it is planned to mill only some 500,000 short tons more, for export to the United States, or enough to make up the quota, and to use the processing tax provided in the Jones-Costigan act, which may total collections of about P20,000,000, to make adjustments with planters and dispose of the surplus cane without milling it. Thus the Philippines essay their first effort in planned industry, limitation of surplus sugar production for the Amer ican market. But they don’t begin under their own law, because all proposals in this direction during the past 2 years failed miserably. They begin under federal law. Not only was the Philippine legislature demoralized on this question last year, and mildly so in earlier years when it was evident to all that limitation should be effected, but mills and Quantities and Values of SUGAR Exported to all Countries and to the United States during the Years 1899 to 1933 Elanters 'pfUTed together in all districts and raced for greater yields and igher output; and they have planted for grinding during 1935 a crop that, favored by normal conditions, will exceed the record crop of this year. The charge of utter failure to reach a basis of regulation anti planned sugar production in the islands, neither the government nor the industry can escape. The job of fixing the quota was shouldered upon congress, the job of allocating the quota had to be shouldered by the governor-general. There is room for a good deal of warranted anxiety when, respecting the islands’ major industry, responsibility is evaded in one way or another by all whose obvious duty it is to come to grips with the situatiqn and master it at all costs. This is a poor augury for the commonwealth. The public feels it as such. The piper dearly paid for a merry dance, that has exceeded madness, after 1935 the Philippines may duly market in the United States 1,015,186 short tons of sugar a year; until the independence law becomes effective, when the quota will be 850,000 long tons of raw sugar a year and 50,000 long tons of refined. Fractions of the American sugar duty, 5% the 6th year of the commonwealth, 25% the 10th year, will apply. It is felt that this levy may hinder sale of our sugar in the United States, but much depends on how the market goes. What is certain is, that our sugar industry is definitely pegged. Out side of the United States there is no market for an export surplus. What is the situation, then? A 1935 export production of 599,000 tons will be near the 1925 record, as the table snows. But in detail there are some fundamental differences. Only 57 tons of our sugar, exported during 1933, were sold outside the United States. This was a small fraction of 1% of the total. It will be the same this year, and in future years. But in 1925, when the islands ex ported 547,000 tons of sugar, 143,000 tons or 26% of it was sold outside the United States. Domestic sources of sugar in China and in Japan have, in the interval of 10 years, closed the markets that absorbed in 1925 this large portion of Philippine surplus sugar. Those markets, that gave the Philippines 1*8,194,323 for sugar in 1925, now give them nothing for sugar and will not require their sugar when it can no longer be sold, when indeendence comes, in the United tates. Yet sugar comprised 61% of the value of all Philippine exports last year. Pegged in the way defined above, it will remain for some time the islands’ basic exportable com modity. It is interesting to trace its rise in relation to other Philippine exports. From 1899 to 1904 the average value of Philip pine sugar exported was P7,270,921 a year; the portion sold in the United States brought Pl,393,092 a year. The average value of Manila hemp exported during the same period was P39,797,393 a year; the portion sold in the United States averaged the yearly value of P17,403,367, or 12 times the value of Philippine sugar sold in the United States during the period. The value of Philippine copra then exported was nearly 1*6,000,000 a year, copra itself then approaching the value of sugar sold abroad. It was 1920 before Philippine sugar exports exceeded the value of hemp exports from the islands, but the consistent supremacy of sugar over hemp was then definitely reached. In 1925, the year to which, respecting sugar, we are returning for a twelvemonth in 1935, our sugar exports were valued at P91,028,005, hemp exports at P71,043,292. And now the 2 crops are far out of balance with each other in the export market. Hemp, while still selling throughout the world, brought only P13,747,719 to the islands last year, and sugar P128,666,851. Sugar outsold hemp nearly 10 to 1. It outsold copra more than 8 to 1, and coconut oil 7 to 1. As has been noted above, it outsold all other Philippine exports together, copra, coconut oil and hemp included, nearly 2 to 1. It offers no competition to these products, which will not, in human probability, make up losses on it when it drops back next year to its 1925 position on the basis of yield for export. Neither does sugar occupy farms on which other export crops of the islands may be produced. They themsvl are depressed by overpro duction, and coconuts are artificially depressed by the new excise tax in the United States of 3 cents a pound on coconut oii. ^Business revenue and taxes lost by America’s planned control of sugar, will not be made up in the Philippines from other sources. July, 1934 THE AMERICAN^ CHAMBER-OF. COMMERCE JOURNAL 13 Philippine Tobacco: Leading Second-String Industry Exports have tripled in value during the American regime with comparatively light fluctuations The Philippine tobacco industry dates from the 16th cen tury and was introduced by the friar missions; those in north ern Luzon, records indicate, and tobacco was tried suc cessfully in the Cagayan valley to provide for settlers there overflowing from the Ilocos provinces. Thus the industry was developed by the missions. In 1781 it was made a central government monopoly, as to buying, manufacturing and selling, as the source of the government’s chief revenue. This intensified when the Spanish states in the Americas separated from Spain and the galleon trade ended. Jt ended late in the modern commercial period of the islands, in 1881. Since then tobacco has been in private hands. Manila’s modern cigar factories compare with the world’s best. . Those that make modern-style cigarettes use a great deal of American tobacco, and between Phil ippine exports of cigars to the United States and their imports of cigarettes and tobacco from the United States the trade keeps at fair balance. The great cus tomer for Philippine leaf to bacco outside the factories in the islands, is Spain. It is with Spain and the United States that the islands have favorable trade balances. The table on this page from the current yearbook of the Manila Harbor Board traces tobacco exports through the American pe riod, year by year. Under the heading All Other, prac tically the whole value is of leaf tobacco because cigarette exports are neg ligible. It will be noted that the cigar trade has suffered during the depression, but less so than other Philippine products. The value of cigars exported during 1929 was 1*9,530,279; and in 1933, 1*6,315,866. Reviewing the figures for 25 years, in 1909 cigar exports were valued at 1*3,509,058; five years later, in 1914, at 5*4,630,318; in 1919, at 1*18,157,707; in 1924, at P10,809,323, slumping off about Pl,500,000 when world conditions were upset the next year. Prices during the World War were high, of course; the values in the table indicate this rather than greatly increased volume. The domestic t;rade is very important, both in cigars and oldtime cigarettes. Cigars exported to the United States run from 16 million to 20 million a month; they were on the same level 10 years ago. The demand is for cheap cigars, a field in which the Philippine cigar is popular because it is a longfiller handmade cigar of good filler, binder and wrapper. Adver Values of CIGARS and ALL- OTHER TOBACCO Products Exported to all Countries and to the United States, 1899 to 1933 tising could popularize the better Philippine cigars abroad, especially in the United States. Many smokers swear they have no superiors. But they are merely advertised to the trade, no maker relishes the expense that would be involved in building up a trade for his fine cigars by advertising, if independ ence is to come and the American tariff is to cut the trade off. Note that last year the value of all cigars exported was P6,315,866, and of cigars exported to the United States, P5,646,233; it is seen that the value of Philippine cigars sold overseas outside the United States was below 5*700,000 or less than 1/8 of the value of the cigars sold in the United States. Another interesting observation is that leaf exports com prise 2/5 of the value of all Philippine tobacco exports. Europe takes more than half of all leaf exported, Japan and the United States are other good customers. There was a long period when China was im portant for cigars, but the tobacco industry is devel oping in China, cigarettes are smoked more there since the World War, and the market has fallen off tre mendously. It is much the same with Australia, a buyer of Philippine leaf, never a great buyer of Philippine cigars. Tobacco growing in climates of such wide range, and going into pro ducts of high taxing value, lends itself to the national ism to which nations every where are strongly inclining. The nations make the most of it. But because of the dom estic trade, the Philippine tobacco industry will remain important and a basic rev enue yielder even if the overseas trade declines. There is also the possibility suggested in a paper in this journal last month, that of growing Turkish and American tobaccos for domestic consumption and export. Cigar tobaccos for the American trade the government has always seen fit to limit to those of the Cagayan valley, made famous during the old monopoly period. Besides the texture of the leaf, there is a mildness of Ca gayan-Isabela tobacco that produces a remarkable cigar. It is a cigar that gives no headache, the smoker enjoys it without compunctions of conscience. It is this quality, without doubt, that without popular advertising maintains the commercial position of the Philippine cigar. Manila tobacco factories are large buyers from the United States. Their purchases of cellophane, cardboard containers, labels, etc., exceed 1*500,000 a year. In addition to cigarette tobacco, wrapper tobacco in large quantities is imported from Connecticut, Florida and Georgia. About 70% of the cigars from Manila sold in the United States are wrapped with American tobacco. 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 Manila Hemp . . . (Continued from page 7) Soon Davao boasted a colony of some 15,000 Japanese, and some of- these Japan ese, organized into' farm and commercial corporations, had the largest Manila hemp plantations in the Philippines. Some Amer ican corporations, largely financed by Amer icans in Manila, held an easy second place. Some individual Americans held on, instead of selling their plantations to Japanese buyers at the high prices often offered, and these Amer icans are still in Davao. The widows, Amer icans, of 5 who have died have taken over the management of their plantations and are proving successful: they are the flower of American pioneer womanhood in the Philippines. The. Japanese in Davao at once appropriated the power device for pulling the fiber under the knife, and hitched it, when necessary, to small oil engines that could be moved about. They grew hemp intensively, and auctioned it in combined lots at the best prices competition among the exporters—who all nad to open Davao offices, of course—would provoke. And the Japanese became exporters themselves, and now lead the field. Japanese steamers carry hemp for them. Final steps in the industry have been taken by one American corporation at Davao, and one Japanese corporation. Each of these companies have installed decordicating machines on their plantations, and dryers; they have run tramways and roads through their plantations, to haul the hemp stalks to the decordicator; within 3 hours after their hemp is cut in the field it is dry and in the bale. Japanese have gone into British North Borneo and are raising hemp in the way just described, and the Dutch, in Sumatra, have the world’s largest and best-equipped Manila hemp planta tions. Meanwhile, and all the while, the Bisayan and Bicol hemp planter carries on in the old way. It is antiquated;-his costs are too high, . his methods too slipshod; through his indolence and cocksureness the Filipino has lost command of the Manila hemp-growing industry, while he has never seized at all the marketing end of the industry. Manila hemp, however, is almost as basic an industrial staple as ever it was. The people of Leyte are at the margin of subsistence because Manila hemp has become so cheap; they can strip so very little in a day, no more than 15 or 20 kilos, and get so little for it. The people of the Bicol provinces are in the same situation, but the Mindanao plantations, both American and Japanese, still manage to make a go of it. Culti vation, it is found, is at least as vital a factor as economical means of stripping; and the Journal learns of one Mindanao plantation that has reverted to the handstripping method, just to give men work and a chance to live; and yet, because its seed is selected and its fields culti vated, and replanted when their yields decline, that plantation makes a neat profit every year. Vain but persistent American effort was , exerted to conserve the Manila hemp industry in the Bisayas and the Bicol provinces from the time, in the early years of the American period in the islands, when the regions produced 90% of the whole crop, to and after the setting in of the world depression. Planters were advised to adopt machinery, to consolidate their planta tions into a central with a common decordicating dep6t, to cooperate in marketing hemp; in short, to do what has been done in Davao. None of this would the planters do, and neither ■ the insular nor any provincial government tried to induce it. Hemp plants were observed to leave the borders of the Philippines, yet no qualms were felt by the government—at least none was manifested, while planters continued vegetating, as jealous of each other, as indifferent to their common welfare, as cabbages over crowded in the row are jealous of the too sparse sunlight. As Japanese grew more and more hemp in Davao, and made business for Japanese ships, at a convenient point on the mandate-islands route past the Spice Islands, .Japan . herself found mote use for hemp: she is now a prime consumer. of it. There is evident a common purpose, pursued by the Japanese' grower and exporter of hemp and the Japanese government in extending the nation’s use of hemp. The paradox exists that this industry is promoted, modernized, made fit to cope with the commodity depression and survive, not by Filipinos nor the Philippine government, but by others altogether: by Americans and by British, to some extent, but to a much larger extent by the Japanese. In 1909, 25 years ago this year, when this review proper begins, the Philippines exported to all countries, for the value of P34,000,000, 168,000 metric tons of Manila. The value of all Philippine exports that year was P70,000,000, the value of hemp, 2/3 of which, by value, was sold in the United States, was 45% of the value of all exports. Five years later, in 1914, the war had involved Europe. Transportation was a problem. Phil ippine hemp exports were 116,387 metric tons valued at 1*38,389,630, of which, by value, the United States took half. Five years later was 1919, and a sharp decline in the world’s demand for hemp might have presaged the collapse of the war boom; which had, in the year previous, caused the Philippines to sell overseas 170,000 metric tons of hemp. In 1919 however, only 121,248 metric tons valued at P53,703,052 were sold. The United States took more than half of the total, by volume and value—indeed more than 60% of it. In 1924 the industrial world was again pros perous, in the midst of the Coolidge era. The Philippines sold 177,312 metric tons of hemp for 1*60,000,000; they sold 45% of it- to the United States, a drop of 15% from 1919, for P30,434,475. In 1929, until October, the boom that carried Herbert Hoover into the White House was at its height. Our hemp industry enjoyed its best year, 189,424 metric tons of hemp were exported, at the value of P56,841,100. In volume the United States bought about 30% of this hemp, by value about 45%. Grad ually, it is seen, America’s use of Manila hemp declined. It still does, steel has supplanted hemp in many uses, use as cables on oil rigs being one. Steel has advertised, Manila hemp has not advertised as an industry; the growers, the Japanese always and notably excepted, have not organized or made terms with the merchants, exporters and manufacturers. Last year Philippine hemp exports were 152,066 metric tons valued at Pl3,747,749; the United States bought less than 25% of this total, for P4,035,869. But 1932 was even worse for hemp. Total exports were 105,785 metric tons valued at P10,031,204 (the lowest year of record during the American period, 35 years). The United States bought less than 25% of this hemp, 25,138 metric tons, for the lowest sum it ever paid, P2,963,152. All but utter neglect of Manila hemp by planter and government alike has turned this farm industry, the prime one of the islands 25 years ago, without a compet ing stalk grown outside the islands, over to the mercies of the buyers. The major market in the United States has been lost without effort to save it. Summary: In 1909 Manila hemp was 45% of the value of all exports; in 1914, below 30%; in 1919, 20%; in 1924, 25%; in 1929, below 15%; in 1933, below 15%. About 1/3 of the islands’ population, or about 4,000,000 people in the Philippines, are primarily dependent on Manila as either their sole or their main cash crop. But in all regions where stamina has been too weak to modernize the industry the present situation indicates that a shift to other crops, even if merely subsistence crops, will be forced very soon by the sluggish market that has been largely induced by America’s recent low demand for hemp. The slothfulness that has prevailed among Manila hemp growers, in all the old districts, writes a sorry story of the industry. A tragic chapter written in the highlands of Cavite has not been mentioned. There was grown the premium hemp in demand for the manufacture of braids, pure white and very fine. Premium prices were paid for it. Disease was allowed tb get into this hemp, in fact a brace bf maladies in the same season: the industry was wiped out in a twelvemonth; and plant-disease men sidestepped responsibility, and government and grower alike took the visitation as an act of fate, if not of divinity. Last year Cavite sold but 300 piculs of hemp, at H4.50 a picul. It was braid quality, but there was little of it. Manila Hemp in Four Leading Provinces: Piculs Year Albay Sorsogon Davao P. I. Total 1914.. 1919.. 1924.. 1929.. 1933.. 614,960 415,740 568,660 459,040 274,390 424,920 259,900 324,530 532,020 258,270 806,140 324,150 741,030 139,850 345,850 38,430 105,920 358.410 743.410 817,270 2,176,080 2,345,310 3,125,450 3,373,810 2,125,790 In 1914 Albay produced nearly 30% of the hemp grown in the Philippines, Sorsogon about 20% and Leyte more than 20%; the 3 provinces together, more than 70%, and Davao about 1-1/2%. Leyte’s production rose rapidly, but, while it has not yet dropped bacx to 1914’s output, the trend is downward and very rapidly so: Leyte's production last year was less than half what it bad been in 1929. The story is worse in Albay and Sorsogon, while Davao produced last year nearly 1/3 of the islands’ total hemp crop. And Davao got better prices for its bemp than the older hemp provinces got. Per picul, Albay sold for P3.44, Sorsogon for P4.05, Leyte for 1*2.95, Davao for P4.85. Albay, Sorsogon and Leyte got 1*2,795,670 for their hemp, Da vao ?3,095,150 or more than her 3 oldtime rivals put together. Albay produced about 12% of the crop, Sorsogon below 7%, Leyte about 16%. Davao produced last year nearly 21 times as much hemp as she produced in 1914. Davao is mistress of our hemp industry, the older hemp provinces capitulated to her without a gesture of resistance and will never regain their oldtime supremacy.—W. R. OXYGEN Compressed Oxygen 99.5% pure ACETYLENE Dissolved Acetylene for all purposes WELDING Fully Equip ped Oxy-Ace tylene Weld ing Shops. HYDROGEN Compressed Hydrogen 99.8% pure r BATTERIES ? Prest-O-Lite h Electric Storage Batteries Philippine Acetylene Co. 281 CALLE CRISTOBAL, PACO MANILA, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 Tortoise Outstrips the Hares in Paracale Goldfield Reed makes bonanza sale after 34 years*' persistence.—Benguet Consolidated closes operating deals with 3 nor them.companies. In Esop’s old fable of the tortoise and the hare, the hare bounds ahead, then loiters, grows indifferent to the issue, makes the least of his talents, and at last the tortoise, lum bering on persistently, wins. It has been that way with Joseph R. Reed of Paracale. He came here from Benicia, Solano county, California, in April 1900 to make a stake in gold. He stayed 9 years in Manila as No. 2 man at Clarke’s, Manila’s famous Escolta restaurant of the period, with its even more famous roundtable that is now at the Coffee club at the chamber of commerce and used for the chamber’s directors’ meetings. Reed, in the round of his duties, heard the mining talk over this table every day. M. A. Clarke, proprietor of Clarke’s, a California man himself, was the organizer of Benguet Consolidated. Over Clarke’s roundtable, Benguet shares, nominal value a dollar, went for whatever Clarke could get for them in order to nurse the project along. (For 20 years now, in the hands of John W. Haussermann and A. W. Beam, :'t has been the great gold company of the is lands, as everyone knows. Clarke predicted the suc cess he did not live to achieve). But Reed had an eye on another dis trict, Paracale, where he settled as a storekeeper in 1909 at the opening of the placer boom. It was a real boom, 8 dred ges were there at the height of it, 4 the prop erties of a single com pany, Australian. At one time there were 70 Americans in camp, and of course business thrived. Reed paid no attention to the placers; when they petered out and the dred ges were sold off or moved to other districts, he kept on with the store, became a planter and buyer of hemp and coconuts, and prospected for lodes. The hares, the placer men, had bounded away too soon. Reed found the lodes, and got into his control a great many lode claims. A few months ago he cashed some of these claims to United Paracale for $200,000. He has a good many left. In this final exploitation of Paracale gold, where the Japanese and the Chinese preceded the Spaniard, and where Salcedo made for in 1571 as soon as he got wind of the place from Filipinos at Manila, Reed holds trump cards. The placer men were too cocksure; Reed, confident all the time, won by taking time. BENGUET CONSOLIDATED 1934 PRODUCTION FIGURES: JANUARY TO JUNE Month Tons of Ore Milled Gold Fine Oz. Silver Fine Oz. Value of Gold Value of Silver Total Value January... 16,076 8,546.65 4.970,61 598,266.20 6,412.09 604,678.29 February.. 13,894 6,837.44 4,156.27 478,621.50 5,361.59 483,983.09 March ... 19,244 9,748.55 4,377.00 682.398.55 5,646.33 688,044.88 21,242 9.803.71 4,518.03 686,259.77 5.804.23 692,064.00 May......... 22,331 10,505.90 5,877.68 735,413.36 7,523.42 742.936.78 June......... 8.081,05 L0,181.57 565,673.06 13,032.42 578,705.48 53,523.30 34,081.16 P3,746,632.44 P43.780.08 P3.790.412.52 BALATOC MINING CO. 1934 Production Figures January... 16,829 10.868.68 7,737.64 760,807.60 9,981.56 770,789.16 February.. 14,957 8,985.04 6,310.73 628,952.80 8,140.84 637,093.64 March.... 16,106 11,861.38 7,366.13 830,296.60 9,502.31 839.798.91 15.629 9,315.48 5,783.41 652,083.60 7,430.76 659,514.36 May......... 17,041 9,605.24 7,553.13 672,366.80 9,667.98 682,034.78 June......... 10,797.79 7,580.19 755,845.30 9,702.64 765,547.94 61,433.61 42,331.23 P4.300.352.70 P54.426.09 P4,354,778.79 IPO MINING CO. 1934 'Production Figures March.. .. 4,594 1,744.76 1,126.38 122,133.20 1,453.03 123,586.23 April........ 4,413 1,507.92 972.69 105,554.40 1,249.96 106,804.36 May......... 4,239 1,297.35 839.97 90,814.68 1,139.16 91.953.84 June......... 1,223.76 854.14 85,663.20 1,093.30 86,756.50 5.773.79 3.843.18 P 404.165.48 P 4,935.45 P 409,100.93 COMPARATIVE STATEMENT OF PRODUCTION VALUE OF GOLD AND SILVER PRODUCED Increase Benguet Consolidated Mining Company. . P2.267,433.38 P3,790,412.52 Pl,522,979.14 Balatoc Mining Company........... 2,358,316.94 4,354,778.79 1,996,461.85 Tnfnk ................. P4,625,750.32 P8,145,191.31 P3,519,440.99 Ipo Mining Company.................. 409,100.93 409,100.93 Totals................. P8,554,292.24 P3,928,541.92 The great mining deal of the month was that of Benguet Consolidated with Southern Cross and Consolidated Mines, and with the Abra Mining Company in the Abra river district. This effected the largest operating consolidation in the history of gold mining in the Philippines. It will involve, on Benguet Consolidated’s part, the reinvestment of much capital in building and operating mills, exploring and developing the properties and intensifying production. Consolidated Mines is the second chromite project Benguet Consolidated has undeitaken to operate, the first being the Cadwallader prop erty in Camarines, while this one is in Zambales. Attorney Courtney Whitney, interested in all 3 companies and instrumental in arranging the operating contracts with Benguet Consolidated, anticipates material advantages to the companies under the agreements effected. To Benguet Consolidated the deals are interesting as furthering its purpose to advance the mining industry in the islands all it can, with money, management and expert supervision. Southern Cross has a capital of 1*200,000 in shares of 10 centavos each. Its claims are 15, in the jurisdiction of Itogon, Baguio. They are near the Cal Horr group owned by Ben guet Consolidated and a mill may be built to accommodate both properties. The proposal is to develop the properties together in the way found best. When Benguet Consolidate’s investment has been returned to it out of net profits, and after 3 years of profitable operation thereafter, Benguet Consoli dated is to pay Southern Cross 1*200,000,the sum of its capital; and Southern Cross is then to reorganize and set aside 10% of its new stock to be taken by per sons designated by Ben guet Consolidated. This is a usual arrange ment of Benguet Consoli dated’s, to enable person nel associated with a pro ject to obtain stock at par. It is a part of the Ipo con tract, where the stock set aside is 20% of the issue. The Abra Mining Com pany group, also gold, comprises 69 claims in the jurisdiction of Baay, Abra. (The company retains other groups at Lacub and Boliney). The contract resembles that with Southern Cross; on the same basis, capital of 1*100,000 is to be returned to the company and 10% of the stock is reserved for persons de signated by Benguet Con solidated to take up at par. Net profits of South ern Cross and Abra, when Benguet Consolidated has its investment back, will be shared between the mining companies and Benguet Consolidated on the 50/50 basis. The property involved in the Consolidated Mines contract is 32 chromite claims in the jurisdiction of Masinlok, Zam bales. The capital to be returned to the company, on terms already described, is 1*50,000; and the stock to be put aside to be taken up at par by.persons designated by Benguet Con solidated is 4% of the issue when the company reorganizes— when Benguet Consolidated has its investment back in hand and there have ensued 3 years of profitable operation. A railroad is to be built to a shipping point; extensive buildings are to be put up, and, if the ore is concentrated prior to ship ment, a mill for this purpose. Benguet Consolidated will also experiment with chromite products for the Philippine market, and to this end may operate factories. One possibility is chrome brick, replacing imported firebrick. These replace ments amount to 1*2,500,000 a year; they are largely in the boilers of the power plants of sugar mills. It has been found that chrome brick resist acid and heat. They may soon be made here. All in all, the triple consolidation is a major venture. It looms big on the credit side of mining progress this year. 16 T*HE AMERICAN CHAMBER OF COMMERCE JOURNAL .felly, 1934 Import Export Overseas Shipping Progress of surplus production yearly aided by ports and public works, but retarded by awkward public Nothing else is more remarkable in the modernization of the Philippines during the American regime than the progress of overseas commerce and the increase of shipping facilities offered by American and foreign shipping companies catering to international trade. A table on this page showing the value of the islands’ overseas imports and exports year by year since 1899 goes far by way of explanation of the situation. The foundation is, of course, the increased production of farm products; and at times, as during the World War, the special demand for these products throughout the world. But the most permanent and decisive influence has been free trade with the United States. Government policy in the islands has fostered the tendency to produce for over seas markets, the gov ernment having a large stake in trade because income, inter nal revenue and merchants-sales taxes are the main sources of its revenue. Therefore public highways have been built extensively, and a national high way system adopted. Ports have been planned and many portworks built, first rate ports . have been established at main points such as Manila, Iloilo and Cebu and the movement tends to improve smal ler points in order that the lifting of cargo for overseas destinations may be as direct as possible. The reader will note that during the first year of the American regime the overseas trade of the islands was below the value of P70,000,000, imports and exports together, and that exports were 1*8,692,808 below imports. He will note that un favorable trade balan ces continued during 6 years, though grad ually declining. They reappeared during the slump prior to the World War, and again as a phenomenon of the collapse of the post war boom. They would have put ih a third appearance during the -----existing depression, but1 ?i®25 " sugar prevented them. — • • On the whole, the po- 1923... Key has . notably, jusr. ...Imo , tified itself. Unfortunately,' how- 1933. / lands administration ever, it has been pursued without regulation. The laissez faire doctrine of progress in commerce is nowhere better exemplified than in the Philippines, and has provoked dire visitations. Coconut oil, overboomed, collapsed in 1920 with great bank losses. This debacle, associated with, minor ones, debased the peso and necessitated bond issues for re habilitating the currency and the government bank. Si milarly of late, sugar seems to have been overextended. But the Philippines historically have more good luck than bad; they are commercially resilient and have in the past recovered from their follies quickly. Until 6 years ago the interisland shipping situation was monopolized under misguided public utility regulations that minimized improve ments. It is now free, and planters every where report much iml proved service. Trave on main routes througl the inland seas of th< islands has become pleasant, whereas it was not many years ago both boresome and pe rilous to health. Time between main ports if greatly reduced. It is trite to say the port of Manila, with an ample group of good piers topped by Pier No. 7, is one of the most convenient ports in the world; and that the port policy aims at conveniencing to the last degree the loading and discharg ing of cargo. Not withstanding its own stake in the main ports, where improvements have involved many millions of pesos, the government makes the way clear for ocean ships to load at minor points when the cargo is farm products for export. A second table on this page notes the number and combined tonnage of vessels year by year that have visit ed Manila during the American regime, also domestic ships, separa tely listed. Twenty-five years ago, the period at which this review properly begins, 552 foreign ships with com bined tonnage of 1,345,“414 visited Manila; and 5 years later, in 1914, Values of Imports, Exports and Total Trade of the Philippine Islands, 1899 to 1933 FOREIGN COMMERCE OF THE PHILIPPINE ISLANDS Number and Registered Net Tonnage of Foreign and Domestic Vessels Entered the Port of Manila, 1899 to 1933 Year Domestic Totals Tonnage 4,977,435 1,057,639 1,056,440 1,076,929 1,215,615 1,345,414 1,345,419 1,649,202 1,821,353 1,952,546 1,926,394 1,606,275 1,495,014 1,385,050 1,380,194 1,629,553 2,717,570 2,573,909 2,981,499 3.284,706 3,557,441 3,574,285 3,8.39,378 3,953,621 4,128,734 4,932,712 . 5,116,594 4,911,426 4,880,516 5,120,617 Tonnage 1,890,238 421,750 385,371 453,703 465,949 478.551 485.551 568,280 603,190 651,815 657,600 617.653 553,072 565,838 557,763 584,917 618,997 620.667 689,087 704,502 692,204 742,238 823,065 848,726 861,687 933.552 972,695 1,079,764 1.044,703 934,244 Number 12,606 2,490 2,448 2,719 2,951 2,835 3,091 3,600 3,673 3.544 3,451 3,356 3.4S8 3,990 4,291 3,945 4,086 3,920 4,311 4,224 4,258 4,162 4,320 4,251 4,408 4,833 • Wb 4,635 4,564 Tonnage 6,894.673 1,479,389 1,441,811 1,530,632 1,681,564 1,823,965 1,830,970 2,217,482 2,424,543 2,604,361 2,583,994 2,223,928 2,048,086 1,750,888 1,937,857 2,214,470 3,336,567 3,194,576 3,670,586 3,989,208 4,249,645 4,316,523 4,662,443 4,789,634 4,990,421 5,866,264 6,089.289 5,991,100 ~ 5,925,219 6,054,861 July, 1W TjHE AMERICAN CHAMBER OF COMMERCE JOURNAL 775 with tonnage of« 1,9^.394; and in 1919, 042 with-.<»Hnag»5)M 462^,553; aqd in 41)24,4)50with toniiaeiTC W>PGiw£nd in. 19421), 1,665 : with tonptab'idf ^9^*712* and list'year,. 1,192 , with tonffrfge of 5,120,617. In the period of 25 years the nurhbeb of foreign ships calling at Manila was, by 161, more than doubled. The tonnage quadrupled.' This contrasts with domestic ships, and in- , dicates the encouragement given foreign ships as well as the large surplus of farm products the Philippines have to sell overseas. Calls of domestic ships at Manila in 1909 were 2,283, their tonnage was 478,55V Calls of domestic ships at Manila last year were 3,372, their tonnage 934,244. Calls of domestic ships increased about 50% in 25 years (of foreign jdjins more than 100%); andj,Qnnage of domestic, : Ships increased less -than, 100% :in, 25 -years. .- jqf forjelgh ships nearly 400%). ■ t f ■..-There is' a .-plethora. of ocedn tonnag? bn the? seas, partly explaining the large number of foreign ships calling here. But even last year, a very lean, one, the value of. Philippine importeand exports together was nearly 3 times what., it was' in -1909. It is 'this that brings the ships, and the- Amerioan mail-subsidy policy that maintains modem passenger-freight ships on schedules of frequent calls. In this paper and the illustrating table, the term foreign embraces /American ships. Their calls at Manila last year numbered 268, in the total of 1,540 of which calls by British ships were 474, Dutch 176, Germany 133, Japanese 284, Norwegian 112,. Swedish 26, Panaman (registry only, for ad vantage in Panama canal tolls’) 10, Philippines 8, Italian 2, -'Chinese jE|anisI> 444 I ; - T- ” Air-Conditioned Railway Coach The Manila Railroad Company has air-con•ditiofiea a first-class passenger coach on its fast train north, the Ilocos Express, with success. Without being drafty, the coach is cool—the acme of travel comfort. It is planned to ex tend the innovation. Certainly it revolutionizes train travel here, eliminating both heat and dust. The express traiu is also accommodated with a dinner in which the service is that of the Manila Hotel. Food and drink are of the best, the dinner at P2 is in every way satisfactory. Greetings from the Philippine-Chinese General Chamber of Commerce Dee Hong Lue & Co. INCORPORATED Lumber Manufacturers Dealers Manila, P. I. 920-950 Juan Luna Tel. 49927 Lee Tay & Lee Chay Lumber Dealers 533 T. Alonzo Manila, P. I. General Manufacturing Co., Inc. Rope Manufacturers 129 Juan Luna Manila, P. I. Vda. e Hijos de Pio Barretto Contractors — Lumber Dealers 720 Echague Manila, P. I. La Tondena Inc. Gasanol and Liquors Cor. Barraca & Urbiztondo Manila, P. I. Gotauco & Co., Inc. Lumber Manufacturers Exporters, Contractors 214 Soler Manila, P. I. The Peoples Shoe Store Shoes for Men, Women and Children 250 Gandara Manila, P. I. Kian Hua & Co. Drygoods Wholesale & Retail 224 Rosario Manila, P. I. Tan Eng Hong Drygoods, Imported French Voiles 216-218 S. Vicente, Manila, P.I. Insular Sawmill Inc. Philippine Hardwoods Oregon Pine 330-344 Canonigo, Manila, P. I. Dy Buncio & Co., Inc. General Merchants .191-211 M. de Binondo Manila, P. I. P. Gocheco—Go Sing Goe COMPANY Lumber—Contractors 1219 Azcarraga Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 Governor Murphy’s Message... (Continued from page 11) primitive justice that allows no wise discri mination and judicial discretion in judging the youthful and first offender, the undernourish ment of the child, its lack of sunshine and play, unconcern for the helpless and impoverished mother, the congestion of adult and child huddled together in inadequate living quarters, enforced idleness, insanitary places of employment, and the sordid pressure of want—all these are seed beds of evil that blossom into disorder, dis. affection and disease. Pleads for Protection of Plain People Prom Corruption in Electoral Matters In the attainment of these objectives, every citizen in the land, however humble and obscure, has an individual part and responsibility of great importance. The government to which he looks for execution of these tasks is an assembly of men and women organized and chosen to exercise authority delegated to them by the people. Its moral quality, its loyalty to public duty and social ideals, is ultimately conditioned and determined by the moral force and intellec tual fibre of the great body of individual citizens. The institution of the free ballot, purchased with the labor and suffering of patriots in many lands, confers a great privilege but entails an equal obligation. A citizenry indifferent to the privilege and recreant to the obligation, willing to compromise or sacrifice it for mo netary gain or position, is not woithy of the blessings of clean and enlightened government. The plain folk who inhabit our barrios and countryside and modest city dwellings, with their simple and unpretentious family life and devotion to daily duty, their unaffected pa triotism and deep religious faith, should con stitute a great reserve of moral force and purpose from which the leaders of government may draw strength and inspiration. A grave responsibility rests upon them and upon us to protect that moral reservoir from corruption by mercenary political methods, and to provide political machinery and safeguards by which the convictions and ideals of our people can be expressed without obstruction or perversion. The election procedure, the le gislative process, the administrative function, should all be protected from the influence and play of selfish and unscrupulous elements. Numerous complaints prior to election seem to call for changes in the method of selecting election boards and polling places. Non partisan and disinterested supervision should be provided in the conduct of elections. The untutored voter, unable to write or read, is as much entitled as his more favored neighbor to vote his convictions in privacy or under wholly impartial and disinterested auspices, without indecent suggestion .or interested aid or other undue influence or control. Means must be devised and enacted into law to make this pos sible, if the free and independent ballot is to be a reality. The voting public and the press are entitled to know what interests are actively identified with parties and candidates seeking public of fice. Without this, an adequate appraisal of their capacity and disposition to give free and disinterested service to the public is impossible. Full publicity should be required concerning the sources and amounts of financial contributions. Those who sit in our legislative assemblies, as well as our administrative officials, should not be permitted to retain private interests that conflict with their public trusteeship. We should promptly and boldly take whatever steps are required to subordinate private and selfish interests to the larger interests of the general public, to remove or counteract those influences and conditions that make it possible for the expressed will of the people to be easily nullified or frustrated. I shall reserve the liberty of submitting to you further communications in the future regarding particular measures that will be pre sented to you. These measures will deal with government deposits, and the law necessary to bring our currency, measured in terms of gold, into line with that of the United States; changes in the public service commission; reduction and THE MILK THAT KEEPS HAVING TROUBLE WITH MILK? READ THIS! TRY Klim Powdered Whole Milk — pure, fresh milk with the water removed. Klim keeps— without refrigeration—in any climate. Add water to Klim to get delicious, fully nourishing liquid milk for all uses. Excellent, doctors say, for infant feeding. If your grocer does not carry Klim, send us his name and address. Solo Aeents GETZ BROS. & CO. Mnnila Complete Line of Plumbing Supplies At Lowest Prices Kohler Plumbing Fixtures in white and colors. National and Richards tiles for walls and floors. Pipes and Fittings, Brass and Rubber goods, etc. UNITED PLUMBING CO., INC. ESTABLISHED 1912 ’ The Largest Plumbing Supply House in the Philippine Islands Office and Showrooms 666-676 Juan Luna Manila control of sugar production; an adequate aviation and constabulary program; provisions to avoid a critical school situation next year; and other important matters of public business. If good government is to be reality it must not be merely a happy phrase in our minds. Good government, when its presence is felt as a blessing to a people, is not a casual happening nor a haphazard phenomenon; it is the result of eter nal vigilance on the part of all the people and a zeal for the highest ideals of service on the part of their public servants. It comes when the desire for it becomes a passion and the demand for it a crusade. It is my fervent hope that we may work to gether in this joint task of public service in the same spirit of friendliness and devotion to duty that marked the efforts of the previous legis lature. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OP COMMERCE JOURNAL July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Haussermann on Philippine Ecnnomic Pnssibilities (From his recent Rotary address) Some time ago Judge John W. Haussermann addressed the Rotary club of Manila on the economic position of the Philippines in relation to the prospect of their political separation from the United States. Possibilities in the islands’ present situation, which he made mention of, are appropriate to this 25-year trade review number of the Journal. He said: “For me, the picture you can make with statistics about our situation today, on the eve of independence, is altogether too black. It doesn’t tell the whole truth. It is a picture made in a storm. It shows no sunlight, and it hides all landscapes. “Now let me put sunlight and hope into this picture. Let me tell you how confident I am. “We live in a country that is one of the most fertile in the world. The soil of this happy country is adapted to many crops; in market able quantity, we now only grow a few of these crops. Of all the land that will grow crops, we farm only 1 acre in 4 that we can be plowed. The population of this country is increasing. It is now about 14 millions. Our farms will generously support 5 or 6 times our present population, at least. Our population grows rapidly because it is made up of an unspoiled farming class imbued with love of home and children, and deeply guided by religious faith, who have learned from us how to look after their health. “Independence will make no sudden psycho logical change among the Filipino people. They will still want homes, still support the schools, still be anxious to work. Independence will not change our climate; it will not stop the rains, nor dim the sunlight that brings us crops. The minerals hidden in our mountains will be there after independence comes, and they will have the value the world gives them. Our forests will still yield precious hardwoods; they will still yield resins and fiber. “Our inexhaustible natural resources tell us that when we merely supply a duty free market a few of our main crops, we have not exhausted our possibilities of trade and manufacture. “Take farming. You all know what ‘sub sistence farming’ is; it is the growing of crops, fowls and animal primarily to support the farmer himself. This kind of farming is the best kind of all. In the Philippines we have it on Luzon, right around Manila and in the central Luzon valley; and during recent years, while Manila hemp has been too cheap to sell, it has been spreading through the Bicol region. But around Manila and in central Luzon, where subsistence farming is best established, the population as a whole is materially better off than in any of the other regions of the Islands where so-called cash crops are raised. “Not only that, but the Manila bay provinces and the central Luzon region are the best busi ness fields of the islands. Subsistence farming does that, and this kind of farming can be widely extended throughout the Philippines. "Now take some of our other products, copra, lumber and fiber. With these we have been depending a great deal on the United States. Take copra first. World demand fixes its price; soap makers all over the world use it. If the United States should tax it, even 3 cents a pound, soap makers would still use a great deal of it and the users of soap in the United States would pay the tax. This is because congress can’t by means of a tax, set the market price of copra; there are demands enough for it out side the United States. Therefore, if the pro posed tax applies to other oils that might be imported into the United States and take the place of coconut oil, the tax will not keep us from selling copra in the United States. Judge John W. Haussermann “We think of the great decline in our shipping to the United States, when we can only sell 850,000 tons of sugar a year there, and 2 million pounds of coconut oil, and 3 million pounds of cordage. “Have we thought that less tonnage to the United States may force open other markets for our products? European ships and Japanese ships now carry most of what we sell to the United States. They come out to the Far East, and sail from Japan, with manufactures from their home countries. They need cargoes to carry homeward. If they can’t get such cargoes, to carry to the United States, what will they probably do? Will they cease coming; to the China Sea, will they cease bringing into the Far Eastern market cargoes of manufactures from their home countries? Not at all. They will bring these manufactures just the same, and they will come to the Philippines, as likely as not, and load products to be sold in Europe and Japan; and in this way, which is the very way they did before 1909, they will reopen markets for us. "They will also bring merchandise here, which will bring revenue to the customs service, and in losing half our overseas trade (only perhaps to regain it later), we shall not lose half the revenue the government gets out of trade. “I had rather, in this crisis of separation from the United States, where we are no longer want ed, and where they are forcing us to leave, rely upon the Philippine people and natural resources of the Philippine Islands than upon cold, calcu lating figures that sum up into impossibilities. “We should not be uneasy. We should have faith. Take gold. Gold is my business. Men are uneasy, believing that mining will be taxed too heavy. For my part, rather than believe the Philippines will tax gold too much, I believe they will let taxes stand so that the industry can be quickly extended; they will, as they should, rely upon getting revenue from more mines, instead of taking more revenue merely from the mines we now have. They will want more labor employed, and more labor will want to be employed. “There has been news in the papers about an embargo on capital. This has made men anxious about the future of their money. Now such news is bad, but can’t be helped; after reading it, read what editors, Filipino editors too, say of it—for they don’t support it, they disapprove it strongly. This proves that such suggestions are gratuitous, there isn’t any found ation to them at all. We shall go on under independence much as we go on now; we shall go on solving our problems together, solving them as best we can; and all the time we shall have growing population, growing production, and therefore growing trade, commerce and industry. “Nor will even independence sever our rela tions in trade and commerce and diplomacy with the United States. Hands of common accord will clasp across the Pacific between the United States and the Philippines. Philippine Independence will be as much as experiment for our own country, the United States, as for the islands themselves; and she, for honor’s sake as well as the peace of the world, will not see it fail. “It is for us to accept the great adventure independence offers us. Instead of allowing a few figures to scare us, we must rely on what history teaches us and keep our feet on the ground—we must see this thing through. At the first squall on a calm sea, good sailora don’t desert ship. Ahead of us there is safe harbor. We all know, when we think of it a moment, the conservatism of the Filipino people; we know the constitution they make must be approved by the President of the United States; and therefore we know, when we think of it soberly, that the future here has far better than even chances to turn out all right: that capital will be safe, that taxes will be reasonable, that in dustry will carry on.” , 20 THE AMERICAN CHAMBER'OF COMMERCE’JOURNAL' J«ly, W Rice Stability Relieves Japanese Farmers ' For fully three decades, ending in 1894 Japan harvests were raised. The tendency toward tad a well-sustained period of export surplus ■ this^ import excess during the 17 yea jn rice, interrupted only at> wide intervals by. Reasons of import excess, brought about by ghort crops in Japan proper. Records show that Japan during this period figured as an export nation in this commodity. Throughout’ the next 38 years, however, barring the single year 1930, this country has been a heavy buyer of the cereal, with a balance of trade consistently unfavorable even in those years when bumper —Cut and comment from Judge. She.— You’re wasting it—it only goes to my head! GORDO N DRY The heart r' T XT a good Lj 1 IN cocktail KING WILLIAM’S : Scotch Whisky for ; Good Highballs ars ending in. 1932 was more .marked than during the 2b year period ending in 1915. During these 38 years Japan had an import balance in rice aggregating 10,380,000 tons which, if calculated on the basis of = Y^ 120perton,representedforeign payments amounting to the stupendous figure of «=Y=1,250,000,000. This unfavorable balance has never been ascribable to any reduction in domestic pro duction in rice. During the 30-year period beginning in 1865, production was steadily expanding from an original figure of 3,400,000 tons a year to one of 5,500,000 tons. During the succeeding 21 years production again in creased to 7,800,000 tons, and then expanded to the neighborhood of 11,000,000 tons in 17 years more. During this latter period ric£ cuF-ure in both Chosen and Taiwan made remarkr able progress, so that those lands are now ship2ping into Japan proper 1,500,000 tons of surplufe tonnage every year. A continued inflow of foreign rice on top of the vastly amplified supply derived from home production is attributable to a fast expanding volume of consumption, brought about by an elevation in the living standards and an increase in population, out stripping the increased output of rice. Let us here briefly describe certain measures which the Government has adopted since 1910 in respect of rice, as this information is essential in gauging the present position and future trend of rice values. Owing to several crop failures in succession, the supply of rice was reduced to its lowest level in 1910 to 1912, when its market rose to = Y=157a ton, untilthat time an unheard-of level. The following two or three years, however, saw rice prices suffering a perpendicular decline ; SOLE .. Main Office:. I 343 T. Pinpin ‘ Tel. 2-39t3* ; Branches: Cebu, Iloilo and Zamboanga Also distributors for Alhambra Cigars Kuenzle & Streiff AGENTS Branch Office: 44-48 Isaac Peral Tel. 2-17-62 to almost half of the former position, namely, to —Y—87 a ton, the higher rice prices of the previous two or three years having stimulated production, so that supply scarcity no longer prevailed.. During several succeeding years rice was again rising, due to a scanty supply condition, and also to a generally higher level Of commodity prices originating in the World War and aggra vated by speculative buying. Rice for a time was as high as =Y —380 a ton. Such conditions occasioned many grave social problems, and the Government took steps to prohibit market “cornering” by promulgating the Anti-Pro fiteering law. This ten-year period was most eventful from the standpoint of the staple, supply problems and the bitter experiences encountered during this decade of wild price fluctuations having brought home to the mind of the nation the necessity of formulating food policies with an eye to the future. Public opinion was now for establishing a definite national policy for a food supply, with the immediate goal of attaining a position of self-sufficiency, to the relief of both producer and the consumer. In order to enable the Government to regulate rice supply to demand, the authorities in 1919 were empowered to buy. or sell rice on its own account by means of the Rice Law. zV few years later this Law was so, amended that the Government was authorized to take necessary steps for regulating the market price of rice, in addition to quantitative re gulation. This legislation proved useful in checking violent up and down movements of rice prices, but public complaints, were in cessant about the price changes being still too. wide. In 1930, the Government again amended the Rice Law newly, whose added feature is the establishment of a basic price to serve as a guide for regulating the market price. This standard value is calculated and determined by taking into consideration the movement of general commodity prices in comparison with rice. When the market price appreciates more than 20 per cent above this predetermined, basic price the Government steps in to release IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE, JOURNAL Jhty, 1434 THE AMERICAN- CHAMBER OF COMMERCE JOURNAL 21 rice from its held tonnage and so fight the rise; and the cereal moves in the opposite direction to the extent of 20 per cent below the basic level, the Government again goes in the market, this time on the buying side. The result of all this has been most satisfactory, and rice quotations have never run out of the price territory defined by the law. Up to the present the Government measure has always had to do with amplifying a supply which has failed to measure up to demand. In other words, the encouragement of production has been the pivotal principle. When a market stability was assured to their product and the farmers were offered a practical guarantee that, in case of decline, the Government would pur chase rice out of their hands, they redoubled their efforts toward production, being aided by improved agricultural methods. The Gov ernment distributed improved seeds, brought under cultivation new tracts of land, provided better means of irrigation, and gave many grants. Farmers in Chosen and Taiwan were the first to reap the fruits of Government meas ures for production increase, which sometimes verged on the extreme, while weather conditions also were favorable for a considerable time. In this manner, rice production in Japan has recorded an appreciable expansion. Particular ly since 1930 has the country been self-support ing. Not only does necessity no longer exist for imported rice, but production exceeds con sumption. The Government now had to face another problem, this time overproduction. Prices are necessarily moving downward. While price precipitation has never gone below the 20 per cent line of the basic rate, on the other hand no tendency toward a rise is discernible. Farmers are no longer able to sell their rice except at prices below the cost of production. The popular voice was soon clamoring that for so important a foodstuff as rice its growers should be guaranteed against market decline, at least to the extent of cost of production. Political parties and both Houses of the Diet looked upon this movement with favour, with the result that, at an extraordinary session in 1931, the Legislature approved the motion to revise the Rice Law for the third time since its enactment in April, 1921, and the ensuing de liberations led to the adoption of the Rice Control Law now in operation. The sum and substance of this piece of legislation is that -Y-163.10, which is the cost of production per ton, has been made the minimum official price for rice, and at this limit the Government is authorized to purchase in any amount. At the same time, the maximum official price is fixed at - Y -213.50 a ton, and at this level the Govern ment may sell in unlimited quantity when the market in rice is soaring. —Exchange^ Import Meat & Produce Co. 2—Pinpin—2 Wm. J. Ellis, Mgr. FINEST AMERICAN BEEF, PORK and MUTTON Fish, game, shellfish and vegetables. MILK FED CHICKENS Moderate Prices MAIL ORDERS SOLICITED DAINTY’S BIRTHDAY CAKE IS A SPECIALTY IT GIVES JOY AND REAL TREAT TO A BIRTHDAY PARTY DAINTY BAKERY 321 Echague Phone 2-35-18 Is Your Vision Defective? As far as you know, your vision may be all right, but is it? There is only one way to find out, and that is by thorough scientific examination of your eyes. Such work is our specialty. And we also produce the lenses which are ground to the results of that examination. Ever the best in quality ' , but never higher in price IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 Greetings from the INTERNATIONAL CHAMBER »f COMMERCE OF ILOILO Philippine Islands Cable Address “COMMERCE” ILOILO Postal Address MASONIC TEMPLE ILOILO BONDS Fireatm 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 Do as I do: Take Bromural Tablets "Knoir. Geo. C. Dankwerth President P. M. Poblete Sec.-Treasurer E. B. Ford Vice-President A. Santwico .4wt. Sec.-Treasurer MONTE DE PIEDAD BUILDING Plaza Goiti Tel. 2-12-55 Manila, P. I. I sleep soundly, I wake up bright and fresh for the day's work: Bromural soothes your nerves so that they do not keep you awake in the night; sound sleep strengthens them and these mutually helpful and constantly alternating events will soon restore your vigour. You will have no nerves. Bromural Tablets, harmless and not habit forming, are obtainable from all good class chemists in tubes of 20 and are prepared by Knoll A.-G., Chemical Works, Ludwigshafen-on-Rhine. Monobromysovalerylcarbamidat .03 gr. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 193'4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 Philippine Economic Conditions—April, 1934 Summary of official radiograms forwarded to the Bureau of Foreign and Domestic Commerce. Department of Commerce, Washington. D. C. Prepared by Carl H. Boehringer. Acting Trade Commissioner. 410 Heacock Building, Manila, with assist ance of Government and trade entities. GENERAL SECTION The economic and political consequences of the Tydings-McDuffie Independence law, accepted by the Philippine Legislature on April 30, 1934, received full attention during the month of May. It is true that there were several diverting and, in some cases, reassuring factors which tended to react favorably on the economic outlook in the Islands. These factors, however, fell into the background before the more serious discussions as to what the future holds for the Philippine Islands. What might be considered an official statement of policy on the part of Filipino leaders was made by the President of the Philippine Senate during the course of an address before the American Chamber of Commerce at Manila on May 11. At this time it was pointed out that: "The bent guarantee for the future stability of the Philippine Com monwealth and the Republic is the maintenance of the present trade relations between the United States and the Islands. America is still the best market in the world, because she . has not only cast possibilities of consumption but also the money to bad it up." On May 10. 1934, President Roosevelt signed the 1934 Revenue Bill which contained the clause imposing an excise tax of three cents a pound on coconut oil imported from the Philippine Islands and on oil extracted from copra brought from the Islands. Co conut oil from other sources is taxed five cents a pound, and other oils such as whale oil, sesame, palm and palm kernel oil, three cents a pound. During May the Philippine sugar quotum, allowed free entry into the American market in accordance with the Jonah-Costigan Sugar law, was expected but information as to the quotum did not arrive here until early June. The uncertainty facing the sugar industry depressed sugar prices considerably. The release on May 7, 1934, by Governor-General Murphy of the financial statement covering the fiscal and calendar year 1933, indicating that for the first time in four years a surplus had been achieved as opposed to deficits, tended to react favorably on business and on the general economic situation. Governor-General Murphy, on arriving in the Islands, faced a serious financial situation marked by deficits in tho consolidated funds of the Central Government totaling over P20,000,000 for the preceding years, 1930 to 1932, inclusive. Rigorous economy measures were observed in all branches of the Government and thus the dangerous trend towards a financial crisis was checked and a small surplus—P500.000 in round figures—was laid up for 1933. The activities in connection with the general elections held on June 5, 1934. tended to divert attention for the time being from the more serious aspects of the-future. In terest in the election tended to become keener ns tho month drew to a close and steps were taken by the responsible authorities to maintain order in the provinces. ■ The longshoremen's strike on the Pacific Coast received considerable attention during May as pointed out in the section of this report devoted to foodstuffs. The increased Japanese competition in the textile market became intensified during May business in many lines of goods was practically impossible for American.suppliers. Some degree of tariff protection on the part of the Philippine Government has been requested by American textile representatives and local leaders have expressed a desire io protect Amerioan goods. It is predicted, however, that Japanese importers here will dump huge quantities of textiles into this market during the next few months in anticipation of higher import duties affecting Japanese goods. Japanese competition in flour continued to make itself felt during May and the strike on the Pacific Coast will undoubtedly enable the Japanese to secure an increasingly larger share of the flour market here. Exceptionally heavy rains during the first three weeks of May tended to reduce activity in certain lines, particularly affecting sales of passenger cars. Construction activity in Manila continued unsatisfactory although the value of building permits for May, totaling P431.500, is slightly above the figure for the same month last year which is P323.000. The total value of building permits for the first five months of 1934 amounted to Pl.427,000 as opposed to P2.225.000 for the corre sponding period last year. Power production during May totaled 10,100,000 KWH as against 9.200.000 for May 1933. Production from January to May totaled 50.100,000 KWH as compared with 47.100.000 fnr the narisvl in 1O11 FOREIGN TRADE SECTION The total overseas trade of the Philippine Islands during the first f our months of 193-1 was valued at P1S1,853.040, an increase of 39 per cent as compared with the overseas trade during the 1933 first four months amounting to P180,518,721. As usual, a sizeable balance of trade in favor of the Philippine Islands was recorded during the first four months of 1934. The favorable balance of trade during the current year’s first four months amounted to P53.029.674, an increase of 41 per cent as opposed to the f avdrable balance of trade during the 1933 first four months which was valued at P37.437.841. Import Trade.—The import trade during the first four months of 1934 was valued at P04.411,683, an increase of 38 per cent as against the value of imports during the 1933 first four months amounting to P46,540,440. The following table summarizes the imports, according to the major commodity groups, during the months of April. 1933 and 1934. and during the first four months of 1933 and 1934: Imports, Philippine Islands, First Four Months, 1933-33 (Values in Pesos: P1.00 equals US $0.50) Wheat flour........................................... Automobiles and parts...................... Chemicals, drugs, dyes and me dicines ................................................ Cotton cloth.......................................... Cotton manufactures, except cloth. .. Electrical machy., apparatus & ap pliances................................................ Fertilizers, natural and chemical........ Vegetable fibers and manufactures... Fish and products............................... Fruits and nuts.................................. Automobile tires.................................... Iron and steel and manufactures........ Leather and products.......................... Meat & dairy products......................... Mineral oils............................................ Paper and products............................. Silk, artificial silk, and manufactures. Tobacco and products........................ Vegetables.............................................. All others................................................ April 1934 April 1933 363.733 679,435 399,070 637,591 265.584 2,660,558 1,255,584 64,411,683 46,540,440 Increased importations of all the major groups of import commcdities took place in 1934 as compared with 1933. The preliminary customs statistics released by the Greetings from the Leyte Land Transportation Co. (INCORPORA TED) Walter S. Price President IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL jtity, 1934 Philippine Bureau, of Customs do Sot permit a very close analysis of the import trade mdntli. by nfonlh but thoabove eurijnary indicates that all major import groups showed substantial increases., u ~ ’ . The-United States accounted for 64 per cent of the total imports into the Philippine Islands during the first four months of 1934 as against 59 per cent during the 1933 first four months. Japan's share of the total import trade increased from 11 pec cent during the 1933 period under review to 16 per cent in 1934. China lost out on its export trade with the Philippines. Chinese shippers securing only 4 per cent of the total import trade as compared with 7 per cent, in J933. Among the .European countries. Germany’s share dropped from 3.7 per cent during the 1933 first four months to 3.0 per cent in 1934; Great Britain’s share also declined—from 3.2 per cent to 1.9 per cent. Imports from France and Spain, of considerably less value than those from Germany and Great Britain. Showed increases as opposed to 1933. Due to heavy shipments of sugar, requiring large amounts of Indian jute sacks, imports from the British East Indies were maintained imports from that area amounting, to 2.6 per cent during the 1934 first four months against 3.0 per cent in 1933. The following table summarizes imports b.v value from the major supplying areas during the first four months of 1933 as opposed to the same four months of 1934: Imports by Countries, Philippine Islands, First Four Months, 1933-34 (Value in Pesos: P1.00 equals US $0.50) Total for four months 1934 1933 41,231,543 27,784.882 10,410.099 5,487,834 2,621,632 3,288,288 1,266,031 1,496,301 1,948,497 1,736,140 455,329 348.917 697,372 419,180 327.124 271,974 1,719.444 1,423,310 492,053 743,572 1,043,026 756,831 2,217,560 2,783,211 April 1934 9,930,723 3,179,635 647,376 279,867 537,898 122534 152,142 55,189 256,917 162,510 206,945 648,258 United States (a). ., J^apan......................... Great Britain........... Germany.................. Belgium.................... British East Indies. Dutch East Indies.. Australia.................... Other countries........ 12,895,020 64,411,683 Totai................................................... 16.180.094 (a) Includes Hawaii; Guam and Puerto Rico. Export Trade.—The export trade for the first four months of 1934 was valued at P117.441.357, an increase of 39 per cent as compared with the total value of exports during the 1933 first four months amounting to P83.978.281. The following table summarizing exports during the months of April, 1933 and 1934, and during the first four months of these two years, indicates the very heavy shipments of sugar, abaca, copra, desiccated coconut, cordage, cigars and copra cake which were made during the current year. The very large shipments of sugar, practically all of which was shipped to the United States, were made in anticipation of the Jones-Costigan Sugar Act. Exports, Philippine Islands First Four Months, 1933-34 (Values in Pesos: Pl.00 equals US 80.50) Cordage..................... Embroideries............ Copra cake............... Desiccated coconut.. Coconut oil............... Leaf tobacco ............. Timber nad lumber. All others................... Total for four months 1934 1933 5.465.358 3,460,980 923,500 414,573 1.154.080 1.288,660 4,605,689 4,084,197 567,069 501,988 1,312,449 799,046 5,143,749 5.421,309 89,688,324 61,968.677 961,477 1,519,976 2,615,205 1,347,009 1,084,569 527,533 3.889,888 2.644,333 Senate President Quezon’s Trade Policy “During the period from 1921 to 1933, both inclusive, our foreign trade reached the enormous total figure of P6,087,000,000. Of this total volume of trade, however, P4,163,000,000-constituted our trade with the United States alone; our trade with all the other nations only reached Pl,924,000,000. While we actually sold to the United States P731,000,000—worth of goods more than what we purchased from them, we were paying other nations P262,000,000—more than what we received from them. Had it not been for the favorable balance of our trade with the United States, which was the direct result of the present free trade arrangements with that country, our foreign trade would have registered the enormous loss to us in the amount already stated. As it is, however, our gain in the United States trade not only covered our loss in our trade with other nations, but it has also enabled us to enjoy a total favorable balance in our overseas trade amounting to P469,000,000. “From these figures it appears clearly that we are now dependent upon the United States for the continued prosperity of our people and our ability to meet the burdens of a progressive government. It should be then our first concern to try to secure: (a) the elimination of the provisions of the McDuffie-Tydings law which imposes a progressive tax on our exports to the United States after the fifth year of the establishment of the govern ment of the commonwealth; (b) the raise to a higher figure of the limitation imposed upon our right to export, free of duty, certain articles and products, and (o) to make this arrangement in our trade relations with America per manent, or last for a great number of years after independence has been granted. “If, then, it is our desire and our purpose to keep our trade with America, we must do what is necessary for this balance of trade to be less unfavorable to the United States than it is at present. Should we do this, it is not unreasonable to expect that the United States will be just as much interest ed in keeping her trade with the Philippines even after independence has been granted, as we are interested in keeping our trade with her.” Total.................................................. 30,168,872 25,542,349.117,441,357 83,978,281 The United States took fully 91 per cent of all exports from the Islands during the 1934 first four months as compared with 90 per cent during the 1933 period under review. Japan was the second most important buyer of Philippine products, taking 2.0 per cent of all exports during the 1934 first four months as against 2.1 per cent during the same months of 1933. Spain’s share of the Philippine export trade dropped from 2.4 per cent during the 1933 first four months to only 0.5 per cent in 1934, this being due largely to decreased receipts of Philippine tobacco and products. Great Britain, France. Germany, Chiba and the British East Indies, in the order of importance as shown, all took larger amounts of Philippine export commodities in 1934 as opposed to 1933. The following table summarizes the exports, according to value, during April of 1933 and 1934 and during the first four months of 1933 and 1934. Exports, by Countries, Philippine Islands, Firts Four Months, 1933-34 (Values in Pesos: P1.00 equals US 80.50) Ui waited States (a)... Japan........................ China........................ Great Britain......... Germany.................. France....................... b/etherlands.............. Hongkong ............ British East Indies. Other Countries.. . Total for four months 1934 1933 Total................................................ 30.168,872 25,542,349.117,441,357 83,978,281 (a) Includes Hawaii, Guam and Puerto Riio. Government's General Income, January to April, 1833 and 1934 (Values in Pesos: P1.00 equals US $0.50) Internal revenue income. .. Customs income................... All others (current)............ All others (extraordinary). . Grand Total............ ,. 19.070,903.78 20,722,571.17 +1,651,667.39 BANKING Declines were featured in all major items of the Bank report, although these figures were in some cases ahead of figures for the corresponding month last year. No im provement has as yet been noted in net working capital of foreign banks which has remained at—Pl,000,000. Bankers report that this continuous decline was partly due to steady increases in time and demand deposits. The unfavorable banking situation Bankers report — j ... ...... and demand deposits, m. uu.a.uiuuK- uuiimuB oi.-uunuu may be attributable to legislation passed by Congress adversely affecting Philippine export trade, especially in sugar and coconut oil. The Bank report for the month, in millions of pesos, Bbowed the following: Total Resources...................................................... Loans, discounts and overdrafts............................... Investments.................................................................... Time and demand deposits......... ....................... Net working oapital, foreign banks....................... Average daily debits to individual accounts, ending............................................... .......................... Total circulation. .. .................................... 193 J 221 102 44 120 10 3.8 127 4.2 127 3.3 118 COMPLETE LINES OF GROCERIES LIQUORS STATES FRUITS AND VEGETABLES Famous ----------------FOR---------------QUALITY AND VALUE --------------AT THE-------------WASHINGTON GROCERY 203-205 Echague . Tels. 21717-8-9 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Jpfcb 1934 THEcAMERICAN CHAMBER OE.COMMERCE.. JOURNAL 25 N.& Business Gan Escape Change (From “Nation’s Business”) A new all-metal filter for viscous and non-viscous fluids can be built of practically any metal (to withstand various cor rosive conditions), is said to be easily cleaned, applicable to almost any' filtration job. . . . A new automatic separator for compressed air lines is said to remove all dirt, oil, water; to deliver only clean, dry air. It operates only when air is being used, thus minimizing air waste. ... An automatic oil reclaimer has been developed especially for operators of small fleets of cars. Capacity is said to be up to 10 gallons a day; output, 80 to 85 per cent of dirty oil. . . . New in tires: A tire of new tread design said to be both non skid and noiseless; a tube which can be run flat without being cut to ribbons; another tube incorporating new puncture sealing principles and light enough for use on smallest cars. . .. A new “break-in” oil is said to combine characteristics which enable it to produce a perfectly run-in motor, to permit higher speeds during breaking-in periods. . ., THE march of new products to market, unstem med by depression, is moving at increasing tempo as business improves. A host of new things are making their bow and bid today Typewriter feeding attachments for use with continuous forms which both insert and remove carbon paper are now offered. They’re said to cut carbon-paper costs, speed typing give accurate registration, allow typewriters to be used as billing machines. . . . Greater filing speed, space, convenience are claimed in a new filing cabinet. Drawers have swing fronts which drop out ward as drawers are opened, give ample space for parting contents. . . . A new, washable paint for fibrous or felted insulating board is Controlled expanding action ad justable to the half-thousandth of an inch is provided in a new device for accurately resizing diameter of piston skirts (to eliminate slap, excessive clearance). . . . Instantaneous, concentrated heat flows from the nozzle of a new portable electric unit built like a hand gun. It’s offered for garage use in thawing radiators, drying plugs, etc. . . . (Steam heat for your automobile (is provided through a new heater ’which requires only three-fourths ;of an ounce of water to 'operate, ^utilizes a boiler unit mounted in jthe exhaust pipe. . . . !A new dual-purpose radio operates (either on household current or auto mobile battery. It can be placed ■in front or back seat of the car, (disconnects easily for use as a (second set in the home. . . . [A frameless bronze fly screen for jdouble-hung windows has been (developed. Screws at top and bot tom secure it, tension is adjusted ;.by devices at the bottom. . . . (Sniffing dogs are said to shun shrubbery protected by <a new compound, odor of which is offensive to canine, (unnoticeable to human noses. It’s supplied in tube form. . . . (Marksmen are offered a new .22 target cartridge with a sharp ^shoulder bullet which clips sharp, clean holes in the target. . ., puck pins are now being made of hollow cast aluminum; jThey’re fitted wittariibbe^ rings qn heid and.body, to ffeadeh (noise. .>• J [A new self-opening ;die head replaces the usual large-chaser with carriers which take small, high-speed insert chasers. Lower costs, reduped sqt-up J time, fewer adjustments are claimed...r All-year conditioned air is offered by a new coal unit, said to be 94 per cent effi cient. Six paper-wrapped “coal sticks” are put in a self-feeding magazine akin to a revolver cylinder, last 24 to 48 hours said to require no sizing, to defeat excessive absorption. Growth of rot-producing bacteria is said to be retarded in a new milk can having a self-venting lid which allows undesirable gases to escape. The lid’s offered for use on old cans, also. . .. A new coupling is said to permit joining of straight, plain pipe without grooving, threading or beveling. High tension strength, effective sealing at pressures up to 4,000 pounds is claimed.. . . Activated alumina is offered as an industrial absorbent. Inert, avail able in large sizes, it is said com pletely to adsorb moisture from gases, liquids, solids. . . . Knees are saved by a new clamp which allows any long wooden handle to be attached to an ordi nary scrub brush... . A two-speed transmission is built into the pedal assembly of a new bicycle. A small lever shifts gear instantly. . . . Standard tongue-and-groove wood floors are laid without nails or mastic through a new system which ; laid over the subfloor, metal clips utilizes metal channels , which grip both tongue-and groove. . . , A veneer dryer which dries the entire veneer content of the peeler log in one continuous strip is now available. It is said to reduce wastage, perpi.it production of veneer > sheets of any size. . . . Now come suspenders which do their duty without benefit of buttons. Clasps adjust to the trousers as one’s anatomy i dictates. . . .—Paul Hayward. Editor’s Note—Material for this page is gathered from the ■ many sources to which Nation’s Business has access and from the flow of business information into our offices in Washington. ; Further information on any of these items can be had by writing to Nation’s Business. . ■ 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 keeping faith... Inasmuch as the welfare of industry coincides with that of the community, YNCHAUSTI & COMPANY has always given the utmost in service at the minimum price. The obvious popular appreciation of YNCHAUSTI service and YCO quality products has always been an incentive towards main taining their high standard in our commerce locally and abroad. THE YNCHAUSTI FACTORY LA CARLOTA SUGAR CENTRAL PILAR SUGAR CENTRAL SARA-AJUY SUGAR CENTRAL THE YNCHAUSTI PAINT FACTORY THE YNCHAUSTI STEAMSHIP CO. TANDUAY DISTILLERY YNCHAUSTI & CO. ESTABLISHED 1854 GENERAL MERCHANTS • IMPORTERS « MANUFACTURERS • EXPORTERS AGENCIES ALL OVER THE WORLD Branches: Iloilo — Gubat — Sorsogon — Shanghai — San Francisco — New York Delicious! So ciete Chocolates All ages are delighted with these deli cious chocolates packed in hermetically sealed tin boxes—to keep dust and moisture away, thus assuring freshness and good keeping quality. When you buy Society Chocolates you are buying THE best on the market to-day. Sole Distributor A. M. NEVES Largest Candy House in the Philippines 307 Teodora Alonso, Manila, P. I. P. O. Box 1359 ALSO SOLE DISTRIBUTOR FOR MICKEY MOUSE, BUBBLE GUM and other well-known brands of candy. If there is any material that gives its consumer more than his money’s worth it is the RIZAL PORTLAND CEMENT The Builders Choice HIGH QUALITY LOW PRICE Are the Outstanding Features of the RIZAL Portland CEMENT MADRIGAL & COMPANY MANILA P. O. Box 254 Tel. 2-19-62 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 SHIPPING REVIEW By H. M. Cavender General Agent, The Robert Dollar Co. As was to be ex pected, the total ton nage of shipments from the Philippines for the month of May dropped very considerably, prin cipally due to the cur tailment of the move ment of sugar. The total amounted to 232,304 tons as against 320,256 tons for the month of April. To Oriental Ports, hemp shipments con tinued in good volume although off from the previous month. Lumber and log shipments were again heavy, amounting to over five million feet. There was a full cargo of molasses shipped to Hongkong. To Pacific Coast Ports, cigar shipments were quite good. Coconut oil, copra and copra meal all dropped off. Lumber was also off, but hemp improved. Centrifugal sugar ship ments were again heavier than usual, but there was a very decided drop in the movement of refined sugar. Lumber was slow, with other items only fair. To the Atlantic Coast, coconut oil was again quite good, but copra again slow. Hemp, while off from the previous month, moved quite freely. Centrifugal sugar shipments amounted to only 100,000 tons compared with 175,000 tons for the month of April. Rope and de siccated coconut both improved. To European Ports, copra shipments were ■particularly heavy, but copra cake only fair. Hemp was good. Lumber and other items were slow. From statistics compiled by the Associated Steamship Lines, during the month of May 1934 there were exported from the Philippine Islands the following: Ions Wise. Sailtngt Jons billings China and Japan........................... 33,852 with 54 of which 1,253 were carried in American Bottoms with 12 Pacific Coast Local Delivery..... 37,332 with 21 of which 31,543 were carried in American Bottoms with 11 Pacific Coast Overland Delivery .. 1,102 with 13 of which 742 were carried in American Bottoms with 8 Pacific Coast Inter Coastal Strnr... 2,021 with 12 of which 1,854 were carried in American Bottoms with 0 Atlantic Coast................... 128,232 with 31 of which 44,398 were carried in American Bottoms with 10 European Ports............................. 23,204 with 18 of which 218 were carried in American Bottoms with 2 Australian Ports Mexico and Cal cutta.................................................... 6,561 with 6 of which 00 were carried in American Bottoms with 0 A Grand Totai........................232,304 with 99 of which 80,008 were carried in American Bottoms with 19 THE PRESIDENT LINER FLEET WORLD-WIDE SERVICE AMERICAN MAIL LINE “The Short Route to America” To SEATTLE via CHINA, JAPAN and VICTORIA Pres. Grant - - - Aug. 15 Pres. McKinley - Aug. 29 Pres. Jackson - Sept. 12 Pres. Jefferson - Sept. 26 Pres. Grant- - - Oct. 10 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. Cleveland - July 28 Pres. Hoover - - Aug. 8 Pres. Taft - - - Aug. 25 Pres. Coolidge - - Sept. 5 Pres. Pierce - - Sept. 22 Via Suez Canal and Europe Pres. Van Buren - July 23 Pres. Garfield - Aug. 6 Pres. Polk - - - Aug. 20 Pres. Adams----- Sept. 3 Pres. Harrison - Sept. 17 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 July 24 „ 31 Aug 7 „ 14 „ 21 „ 28 FOR BOOKINGS AND INFORMATION APPLY TO: THE ROBERT DOLLAR CO. General Agents Robert Dollar Bldg., Port Area . — , MANILA — Telephone 2-24-41 87 EscoltaIN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMFER UF COMMERCE JOURNAL July, 1934 •As will < be .agery from the following figures,, passenger bookings, during May declined con siderably in all classes, due tp the termination of the seasonal movement away from the Phil ippines.. Traffic to Europe via.Spez, .however, particularly in tourist antf.^epond class, con-, tijnued .hpavy, and Round^e-World steamers and other vessels'destined for'Europe via. Suez are still continuing to sailing with capacity lists. This ig„the, first year, that the Round-theWoRd fouri^t season, has. maintained such a high level during May. . The following figures'sho\v the number of passengers departing from the.Philippine Islands during May, 1934: First Inter- Third China and Japan................... Honolulu...................................... Pacific Coast........................ ........ Europe via America...................... Straits Settlements and DutchEast Indies............................... Europe and Mediterranean Ports beyond. Colombo............... .. America via Suez........................... Australia.............................. Round the World................ f.... 99 216 2 3 62 81 8 10 5 11 8 57 0 0 2 5 0 0 185 3 2 0 3 0 4 0 Total for May.........../. ;U . .186 383 198 Total for April. . .-.“.: AA.. .488 644 534 COPRA AND ITS PRODUCTS By Kenneth B. Day and Leo Schnurmacher There were two very distinct trends in the June copra situation. The first was the dying out of hope for a better American market when congress adjourned without doing any thing about the excise tax, which is now-definitely in force Until next year at least. Tt^ -second was a revival of interest in the European copra market made possible through charters at reduced rates, which eventually forced the Conference ing statistics apply:— freight rate on copra to Europe down by 6-1/2 Arrivals—Manila, ^04,^32 bags and Cebu Shillings to North Continental ports and 9 288,340 bags. Shillings to Mediterranean ports. Ordinarily arrivals are expected to increase in June. This year was no ..exception, but the increase was nominal as far as Manila and Cebu were con cerned, although presumably a good deal more copra was-exported-dir-ectly from, outports than in previous yjars, The end of th,e month showed a very unsAtfsfactoiy 'condition with varying prices in the Islands, and both buyers and sellers uncertain as to what the future might hold for them and consequently acting with unusual caution and upon individual appraisals of the future. Copra: Compared with 1933, 1934 June arrivals in Manila were less than half. In Cebu a decline of 20% was noted, .which is about normal, considering that last year was the heaviest on record. The weather was favorable for copra production, but with the low prices prevailing, producers are in many cases losing interest in copra and are turning their attentions to other better paying crops;. The Manila market is largely controlled by oil mills and, therefore, is dependent on American oil prices. With the oil market so weak, mills could not afford to pay over 1*3.60 per hundred kilos Resecada, with the price around 1*3.50 at the end of the month. Buying interest was prac tically at a standstill. Cebu is largely an ex]iort market and is, therefore, mpre sensitive, which accounts for the fact that prices in Cebu were above those of Manila throughout the month. Starting at 1*3.60 for Semi-Resecada quality, Cebu declined to 1*3.40, but toward the end of the month stiffened up again to P3.60 or P3.70. In addition to this, Cebu pays a substantial premium for sundried copra ranging from 15 to 25 centavos per hundred, and this premium is a real inducement today. Very little copra was sold for export to the United States, where prices declined from 1.17-1 z2 cents to 1.10 cents, but a lot of. copra was sold to Europe at prices ranging anywhere from £6/10 to £7/10—de pending on the quality and position. The followShipments— Pacific Coast........................... Atlantic Coast........................ Europe..................................... China and Japan................... Total.................................... Stocks on Hand in Manila— Tons 10,566 1,270 . . 15,214 2,274 29,3?4 Beginning of Month......................... 43,573 End of Month........................................ 36,725 In addition to the above very fair stocks of copra were held in Cebu and; other provincial ports. Coconut Oil: There was very little buying interest for coconut oil in the United States throughout the month. During the sedond half a certain amount of oil was moved at 2-1/4 cents c. i. f. New York, with sellers interested in any tenders at this price for almost any position. Buyers noting this, backed off arid at the end of the month were indicating 2-1/8 cents forward shipments. The Pacific Coast 1 iriarket was extremely dull with practically nothing doing. Local prices declined to as low as 7-3/4 Cents ex-factory. Statistics for thfe month follow: Shipments— Tons Pacific Coast...................... . ‘..................... 1,524 Atlantic Coast................................. . ' 4,274 Europe.................................. 661 China................................................... 95 Total................................................. 6,554 Stocks on Hand in Manila and Cebu— , Tons Beginning of Month......................... 15,902 End of Month................................... .19,601 Copra Cake: Copra cake continued to im prove, but very gradually. Sellers had very little to dispose and would .not offer forward positions because of uncertainty of ope'ratiori. “KIRIN BEER” TllE‘CHOICE OF THE MULTITUDE It’s not merely a drink. It is ar 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 Supplied, Ejtc.; Etc.’ TAKAHS^HI & CO., INC. Importers & General Merchants 753 Tabora Manila Tels I4-’6’18 P. 0. Box 220 14-96-19 TOKYO GROCERY Cor: Barbosa & R. Hidalgo Tels.: 2-11-82—2-61-85 Manila, P. I. Ilf ; RESPONDING 'TO' ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OP'r COMMERCE JOURNAL July, 1934 THE AMERICANCHAMBER OF COMMERCE JOURNAL 29 Buyers were consequently more interested, and the Hamburg price went ud to GS18.50, with local sales made up td P19.00 f.o.b. steamer Manila. Some little business was done in meal to the United States at prices ranging from GS15.00 to G815.50 c.i.f. The following sta tistics cover these products: Shipments— Tons Pacific Coast....................................... 2,586 Atlantic Coast.................................... 182 Europe................................................. 5,741 China. ................................................. 51 Total................................................ 8,560 Stocks on Hand in Manila and Cebu— Tons Beginning of Month.......................... 10,860 End of Month................................... 9,475 Desiccated Coconut: Desiccated demand slowed up a trifle in June, buyers being well stocked for the moment. Prices ruled a shade lower. Mills in the Islands were running at fair capacity and were building up stocks against a seasonal demand later in the year. Shipments for the month of June exceeded those of May by around 400 tons—totaling 4,441 tons. General: Copra and oil were in a bad way at the end of June. Except for the European flurry, both buying and selling were dispirited and producers were commencing to resign them selves to unsatisfactory prices for the balance of the year. There were a few optimists who were looking for higher prices, but without any very tangible reason therefore. Oil mills were running at reduced capacity or were actually shut down, and it is reported that two or three mills may keep their doors closed for some months to come, unless conditions improve. Europe has been buying copra so heavily that it is felt she will not be able very long to continue to absorb all offers, and while the freight reduc tion has helped, most of this reduction has been appropriated by buyers. There is some reason to believe considerable copra has been sold short for August shipment which may help sustain the local market, but apart from that, it is to be expected that copra will continue easy with arrivals lighter than anticipated and that oil demand will be sporadic and at bargain prices, with copra selling gradually and at approximately today’s levels. The last quarter of the year may show a change in this position. We sin cerely hope so. THE RICE INDUSTRY By Percy A. Hill of Mufloz, Nueva Ecija Director, Rice Producer’s Association Prices are little chang ed since last month. Palay ranges from Pl.80 to Pl.95 per cavan of 44 kilos according to class. Luxury grades of rice are from P4.45 to P4.85, macans from P4.05 to P4.25 per sack of 57 kilos. The market is quiet but steady, demand fair for the time being. Arrivals are ample to fill all commitments, owing to release of storage quedans at shipping points. Planting of the new crop is under way in central Luzon, but retarded by drought except in irrigated districts. Seasonal rains may be depended on in time for extensive planting. They will arrive with a settled state of the monsoon. Requests from the United States as to supply and prices indicate a possible market there. This may be for transhipment to Cuba and Porto Rico, rice consuming markets linked with the United States. In this connection it might be mentioned that the domestic market has naturally paid little attention to grading for export. Samples sent are based less on quality than on broken grains as obtained in most export markets. Quality grading doesn’t exist here-except for limited trade in luxury rice. Any permanent export trade wiH be governed by exchange, at present unsettled. As regards rice in general, there is no such impasse in the trade as there is in wheat, for example. This is because of the large oriental market which takes up surplus if exchange permits. Mr. Hill appends a note to his report, saying he is handling the proofs of two volumes of snort stories he has written. Journal readers are generally familiar with his series published by the Philippine Education Company in a volume called Old Manila. A number of the stories in that volume originally appeared in the Journal. The book continues to be the most popular one about the Philippines on the market.—Ed. TOBACCO REVIEW By P. A. Meyer Alhambra Cigar and Cigarette Mfg. Co. Raw' Leaf: The farmers in Cagayan and Isabela are still engaged in the curing of their tobacco. Owing to large sup plies held by Manila dealers and manu facturers, no general buying activity in the producing re gions may be ex pected until the farmers, have duly conditioned their toLUZON BROKERAGE CO., INC. Derham Building P. O. Box 591 Port Area Tel. 2-24-21 Licensed Customs Brokers Foreign Freight Forwarders Heavy Trucking Contractors Warehousemen IN RESPONDING TO ADVERTISEMENTS FLENSE MENTION THE AMERICAN. CHAMBER OF;. COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1,934 bacco of the 1934 crop. Export has been the lowest since June 1933. Corresponding figures are as follows: Rawleaf. Str Tobacco and S JUNE SUGAR REVIEW By Geo. H. Fairchild Australia........................... China............................... Hongkong......................... Java.................................. North Africa................... North Atlantic (Europe) Straits Settlements......... United States.................. May. April .......................................... 1,083,002 Cigars: The increase in shipments to the United States is temporary only, replacing a considerable quantity shipped during the latter part of April and during May and held up at Pacific Coast ports due to the longshoremen’s — -------- ---------------- r-~ shipNew York Market: The allotment of quotas for the non-continental areas at the close of the previous month has lent a stabilizing effect to the sugar market, and quo tations on the Exchange underwent but slight fluctuations closing at the end of the first week of the month under review 1 to 2 points up, while prices for : dutyfree sugars both for Puerto Ricos and Philippines afloat advanced from 2.73 cents to 2.80 cents. The improvement in the market continued in the second week and quotations on the Exchange showed an advance of 8 to 10 points at the close of the week. Transactions in Philippine sugar were insignificant owing to the uncertainty as strike there. Comparative figures for ments to the United States are: June..................... .-...• 19,538,011 . 16,970,001 . 19,668 451 TRAVEL AMERICA'S VICTORIA ^VANCOUVER SCENIC ’TACOMAE CHICAGO ROUTE* Across America on the famous north coast LIMITED more pleasant than ever . . . observation-club and dining cars, completely air-con ditioned cool, clean, quiet, healthful. No matter what the weather, these cars are luxurious havens ol comfort. • Summer fares greatly reduced between Pacific Coast and Chicago. Chicago's marvelous Century of Progress Exposition is better than ever this year. Traveling on the scenic Northern Pacific you may visit one of Ihe world's amazing natural wonders, Yellowstone Park. • Sleeping car berth rates reduced cne-lhird. Standard Pullman and new type, modern Tourist sleeping cars, coaches, observation-club and dining cars through to Chicago on the NORTH COAST LIMITED . . no extra fare. Northern Pacific repreeonlallvei meeting eleamehlpe at VicDON^SMtrH. SpecialI Pawengor Agent W.^F. CARR. General Agent A.^ C^STICKLEY. General Agent R. J. TOZER. General Agent Always be sure of a delightful journey -thrQugh the American Rockies, by making reservations on the NORTHERN PACIFIC RAILWAY C. L. TOWNSEND. General Passenger Agent—Smith Tower, Seattle. Washington MOUNT RAINIER YELLOWSTONE PARK CHICAGO WORLD'S FAIR O) to the disposal of excess sugar over the Philippine quota arriving,in the United States and prices therefor remained unchanged at 2.80 cents. Puerto Rican holders enjoyed an advantageous position in the market since the quota for Puerto Ricos was far from being filled and actual sugar prices as high as 3.05 cents were obtained from moderate sales present shipment made to refiners during the latter part of the second week. During the second week of the month under review, it was reported that the compensatory tax of six centavos per sack of all Philippine sugar coming to United States had been revoked by the Secretary of Agriculture, which report, however, was not confirmed until a week after ward. The advance in the New York market was maintained during the third week and gains of two points on tne Exchange quotations were recorded at the’close of the week, while prices for actual sugar developed an upward trend. Prompt shipment Cuban sugar was sold on the 22nd at 1.68 cents as compared with 1.50 cents and 1.48 cents on the 8th while business in Puerto Ricos was effected at 3.10 cents although this later declined owing to buyers retiring from the market. Only an insignificant amount of Philippine sugar was traded in and second-hand parcels afloat arid ex-stbre were sold at 3.10 cents and 3.12 cents. On the 23rd,-the announcement' was made that-the Philippine quota of 1,015,186 short tons had been reached and United States customs officers were instructed that all ship ments of Philippine sugar arriving during the balance of the year were to be kept in-customs custody, for release not earlier than January 1, 1935. On the 28th the price of refined sugar was advanced to 4.75 cents per lb; from 4.10 cents a pound, the price which ruled since May 23rd. The advance in refined price was attributed principally .to the imposition of the processing tax. In expectation of a Presidential message indicating a further increase in Cuban preferen tial, quotations on the Exchange rallied at the close after suffering a slight decline at the begin ning of the fourth week. Prices for actual sugar remained practically unchanged, and large sales of present shipment Puerto Ricos were made to refiners in the latter part of the week at 3.15 cents, while present shipments for Cubas were made at 1.68 cents and a subsequent transaction in Cubas was made to refiners for delivery during the second half of August at 1.72 cents. Futures: Quotations for future deliveries on • the Exchange fluctuated during June as follows:^ . . High ' Low Latest 1.66 1.71 1.80 1.81 1.86 1.91 July.......... September December. January... March.... May......... Stocks: Stocks in the United Kingdom, United States, Cuba, Java and European statis tical countries as reported on June 20 were 8,045,000 tons as compared with 8,048,000 tons at the same time in 1933 and 8,184,000 tons in 1932. Philippine Sales: Sales and resales of Philip pine sugar were reported in New York during the month as follows: Cents per Pc From 2.73 2 2.73 3 11.500 19.500 Sales. .. Resales. Local Market: The local market for centri fugal sugar remained practically-lifeless through out the month except for insignificant transac tions during the second week of the month for local refining on the basis of P4.50 to P4.60 per picul, and speculative buyers were reported to have made purchases on the basis of 1*4.80 per picul during the last week of the month. During the latter part of the month under review the Governor General announced the sugar allocation formula for the Philippine quota under the Jones-Costigan Act, allotting . the 1935 and subsequent year’s quota on the average production of the Centrals and the Planters during the calendar years 1931, 1932 and 1933. The 1934 quota was not allotted allowing all producers to market their entire 1933-34 crop in 1934 and 1935. The excess over, IN RESPONDING TO. ADVERTISEMENTSPLEASE MENTION THE . AMERICAN CHAMBER OF . COMMERCE JOURNAL July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 the 1934 quota coming from 1933-34 crop will be absorbed by the industry as a whole ana will be charged against the 1935 quota. It has been estimated by the Philippine Sugar Association that after allowing 100,000 long tons for local consumption, the surplus from the 1933-34 crop to be deducted from 1935 quota would amount to approximately 301,000 long tons, reducing the 1935 allotment to 545,000 long tons to make up for the full quota of 906,416 long tons to be prorated among the producers in 1935. Philippine Exports: The sugar exports for the month of Jun_e as reported to us by private sources, amounted to 22,538 long tons of centri fugals and 511 long tons of refined or a total of 23,049 long tons. . The aggregate exports for the first eight months of the current crop year begin ning on November, 1933, and ending on June 30, 1934, follows: ? Centrifugals........................................ 1,047,741 Refined.................................................... 57,217 CHARTERED BANK OF INAD 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, Manila. Totai............................................ 1,104,958 LUMBER REVIEW By ARTHUR F. FISCHER Director of Forestry Philippine lumber and timber exports during March and April re gistered an increase of 9% as compared with the corresponding period of 1933. This was largely due to increased shipments to the United States, Great Britain and British Africa, par ticularly to the firstnamed country. Im portant . markets that showed decreased de mands during the months under review as com pared with the same period of last year are Japan and China, although the decline in the former was only slight—on the whole the usual active demand in Japan was maintained during March and April. It has been reported that extensive building operations have been going on in Shanghai, Canton and Hongkong. If this is true, evidently the Philippines as a good source for the raw material, namely, lumber that is naturally needed in such activities has been overlooked. For in fact, during March and April there were only 146,280 board feet of lumber exported to China as compared with 1,625,192 board feet for the same months in 1033, or a decrease of 90%. That this country is a logical outlet for Philippine woods, among other Philippine products, can hardly be gain said. Thus it would seem that local lumber producers should take a keener interest in finding out the demands of this market with the view, of course, to meeting them. The acceleration of lumber shipments to the United States during the months under review was principally due to the anticipated curtail ment of Philippine lumber and timber imports into that country under the National Industrial Recovery Act. The Philippines was allotted a quota of 14,075,000 board feet for six months, beginning last June 1. This allotment was divided among individual mill applicants on the basis of 60% mill capacity and 40% average yearly shipment to the United States. In this connection, the above quota is about 16 million feet less than the total shipments to the United States in 1929. However, it is subject to re vision from time to time and it seems that on this score there should be little or no ground for complaint, especially when consideration is taken of the fact that the monthly lumber and timber shipments to the United States so far this year averaged only 1,700,000 board feet in round figures. Thus, there is even the possibility of our producers not being able to fill the quota, in which event a reduction of the same by the lumber code authorities may be expected. Mill production aggregated 30,175,738 board (Please turn to next page col. 8) 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. 11 YOUR INQUIRIES ARE INVITED CANADIAN PACIFIC WORLD’S GREATEST TRAVEL SYSTEM FOR THESE GOOD REASONS... GO EMPRESS Reason 1... 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 9days. 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 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL t 32 THE AMERICAN CHAMBER OR COMMERCE/JOURNAL July; 193.4 TRADEMARKS REGISTERED During the month of May, 1934 Reg. No. 11745. Trade-name consisting of the letter “Y” with a design, for the business of transporting passengers and cargo, registered on May 22, 1934, by Teodoro R. Yangco, of Manila, P. I. Reg. No. 11746. Trademark consisting of the word GONG with a design, for cotton threads and yarns of all descriptions, registered on May 26, 1934, by R. F. & J. Alexander & Company, Limited, of Crofthead Works, Neilston, Scot land. Reg. No. 11747. Trademark consisting of the words CAPITAN JUAN with a design, for cigarettes, registered on May 26, 1934, by Al hambra Cigar & Cigarette Mfg. Co., of Manila, Reg. No. 11748. Trademark consisting of the words COTTON GLACE POUR MA CHINE with a defeign, for thready ofajl kinds, registered on May 26, 1934,"by Societe Anonymfe Filature & Filteries Reunies, Alost, Bejgiupi, of Alost, Belgium. Reg. No. 11749. Trademark consisting of the desighation G M, for transportation elements of ajl kinds; motor driven vehicles, automobiles and trucks of all kinds, etc., registered on May 26, 1934, by General Motors Corporation, of Detroit, Michigan, U. S. A. Reg. No. 11750. Trademark consisting of the designation G M, for internal combustion en gines and repair and replacement parts thereof, etc., registered on May 26, 1934, by General Motors Corporation, of Detroit, Michigan, U. S. A. Reg. No. 11751. Trademark consisting of the words RING-FREE, for petroleum pro ducts, such as gasoline, kerosene, lubricating oils and lubricating greases, registered on May 26, 1934, by Macmillan Petroleum Corporation, of Los Angeles, California, U. S. A. feet for the two months under review as com pared with only 23'^264,377 hoard fwk fojf't’he corresponding period in 1933, or an increase of ' about 30%. Despite this TaYge"" increase, however, total lumber deliveries was only about 1% below the production. The following, statements shojjr the? lumber and timber exports, by countries/ and'the mill production and lumber inventories for the months of March and April, 1934,’is compared with the corresponding months of the previous year. Lumber and Timber Exports for the .months of March and April 1934 CustomsDestination Board Feet Declared Value Most Interesting TRANSPORTATION NEWS OF THE YEAR AIR CONDITIONED CAR now added to the equipment of the MANILA RAILROAD COMPANY In service with Baguio-Ilocos Express, leaving Manila 6:55 A. M and San Fernando, Union, 2:50 P. M. What is an AIR-CONDITIONED CAR? It is an equipment specially built and fitted with the .latest known device insuring Comfortable Temperature, Clean, Healthful Air, and also Quiet and Restful Travel. This important innovation, now available for first class passengers on thd ^Baguio-Ilocos Express, affords at all times inside the car air conditions as ideal as modern science Can provide. Remember air-conditioned car is a haven of cool, luxurious comfort frpm the unbearable beat and humidity outside during summer. The installation of this air conditioning system keeps the car stocked with delightful, filtered air and excludes all outside dust, heat and discomfort. Also eliminates the neces sity for open windows, ventilators or doors, thus reducing outside noises and rendering the inside of the car quiet and restful. Quietness and cleanliness are two other notable advan tages of the AIR-CONDITIONED CAR. Seats in AIR-CONDITIONED CAR are limited and Reservations ihust( be made in advance. Ypqrij^ed, Cros^ Needs Ypur Support J^anilaRailroad Company Japan....................... United States................ Great Britain. ............ British Africa................ Netherlands................... China.............................. Portuguese Africa......... New Zealand................. Denmark.................. .. Norway......................... Australia......................... Japanese China............. Ireland........................... Hongkong....................... Spain............................... Guam............................. Total...................... *8.323,968 P162.490 2,833,168 . 216,141 990,464 87,132 596,568 36,568 240,832 3,340 146,280 10,559 135,680 8,670 49,608 7,434 44,944 4,740 17,384 2,048 12,720 664 — — — — — 10 — — — — 13,391,616 P530.796 1933 i CustomsDestination Board Feet Declared Value Japan.......................... United States............ 8,870,504 891,248 P149,310 50,557 Great Britain............ 563,920 -256,520 44,301 British Africa............ 17,815 Netherlands................ — China.......................... .. 1,625,192 81,706 Portuguese Africa.... — -rNew Zealand.............. 25,864 1,798 Denmark.................... — — Norway....................... — — Australia..................... 3,816 241 Japanese China......... 19,928 13,568 827 Ireland....................... 946 Hongkong................... 3,392 396 Spain........................... — 40 Guam.......................... — 17 Total.................. .. 12,273,952 P347.954 NOTE:—*This represents mostly solid log scale, that is, 424 board feet to a cubic meter. . For 49 Mills for the months of March and April Lumber Deliveries from Month Mills 1934 1933 March and April... .. 29,669,219 27,161,235 Month Lumber Inventory 1934 1933 , March and April... .. 25,530,287 21,953,354 Mprith , ■ . / r, .Mill Production 1934 1933 ; March and April........ 30,175,738 23,264,3717 NOTE:—Board feet should be used. ! IN ■ RESPONDING.• TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER, OF. COMMERCE JOURNAL Jdtys 10'34. THE 'AMERICAN^. VfFAMBERTQR 'COMMERCE;- JOURNAL 33 UROMIL Urotropina 0.0 51; Posfato diaodi Powerful Urenic Dissolvent Astonishing cures of the most rebellious ca ses of Gout Rheumatism Arthritis Agents for the Philippines , piperacinicas 0.04-6; Benzoato lftico 0.0 2 8; Sales 0.028; Escipiente efervescente q. 's. para Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area Mr- responding vt6 advertisements please Mention the amer/Can c^aMbEr or commerce journal RAIL COMMODITY MOyiLMLN.TS By M. D. Royer Traffic Manager, Manila. Railroad Company.......... The volume of, commodities received in Manila, during the month of June 1Q34, via the Manila, Railroad are a? follow^: ; ... . 1 Rice, Cavanes...............................1. 169,193 Sugar, Piculs,....... .,.......... Copra, Piculs... ............ t .v. , > 78,62o Desiccated Coconuts, cases............. 12,065 Tobacco, bales ............. 980 Lumber and Timber, board feet. . 302,40Q The freight revenue car loading statistics for' five weeks ending June 9, 1934 as .compared with the same period for the year 1933 are given below: FREIGHT REVENUE CAR LOADING . .. . COMMODITIES FREIGHT CARS TOWAGE Increase or Decrease 1934 1933 1934 1933 Cars Tonnage. Hire................. 637 788 .,8.834 8,973 .(1'51) ”• (139). • 89 k '.92'3 U6a • > 48 173 1 079 ■ <4.-71S 33,t39 (906) '(29,021). Sugar Cane....................................... 72 1,345 72 1,345 Copra ........................................... 513 1,486 3,889 11,190 (973) (7,301) Coconuts . ..,............ . .. 167 112 1 2,238 1,498 : 55 740 Molasses............................................. G5 12.* ' 1,877 3,636 (60) (1,759). 3 ,640 1 Tobaoco .•....................... . 8 - - 64 - W3) (476) Livestock........ .................................. 2Q ’ 29 1U3 '• ,<16) (93) Mineral Products.................... 259 340 k -- 2,616 42235 • '(81) (1,619) Lumber and Timber...................... 218 226 5,682 5,847 (8) (165), Other Forest Products................... 9 30 58 (4) (28), Manufactures................................... 151 175 2.362 2,411 (241 (49) All others including L. C. L....... 2.973 3,658 18,810 24,603 (685) (5,793> ’ ' Total.......... ............................. 55,338 ’ 53427 797,323 (2.780) (43,896> SUMMARY Week ending Saturday, May 12 1,297 l.fiAi ‘ 16,312!' 21.16?I (372) (4,857). Week ending Saturday, May 19. 1,053 1,718 . 9.45C) 23,01?J (666) (13,563) Week ending Saturday, May 26. 1,091 1,708 10.7181 20,7941 (617) (10,076) Week ending Saturday, June 2.. 1,045 1,514 9,496i 16,71(> (469) (7,220) Week ending Saturday, June 9.. 852 1,508 . 7,451 15,631I (656) (8,180) Total. ..................... 5.338 8,118 53,427' 97,32?1 (2,780) (43,8967 Note:—Figures in parenthesis indicate decrease. +■ Worthwhile Investment The Philippines Chapter of the American Red Cross has rendered direct assistance in one form or another to 500,000 persons in the Philippines in the past year. Red Cross services have cost, in the past ten years, around P5,000,000. Of this amount, nearly P400,000 has come frdm National Red Cross Headquarters in Washington. It is time that our local Chapter should begin meeting its own needs and emergencies. That is possible only through greater individual financial support. Membership in , the Red Cross is a worthwhile investment. JOIN THE RED CROSS THE NATIONAL CrTY BANK »—.A 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1934 Foreign Consuls of Manil^ INSURANCE For Every Need and Purpose FIRE WORKMEN’S COMPENSATION AUTOMOBILE MARINE ACCIDENT BAGGAGE PLATE GLASS Atlas Assurance Co., Ltd. The Employers’ Liability Continental Insurance Co. Assurance Corporation Ltd. Orient Insurance Company General Agent . ELSER THE YOKOHAMA SPECIE BANK - LTD. ========= (ESTABLISHED 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital (Paid Up) - - - - 100,000,000.00 Reserve Fund - 122,750,000.00 Undivided Profits - 7,648,164.33 MANILA BRANCH 34 PLAZA CERVANTES, MANILA S, DAZAI Te 4 R U B B E R s T A MCG&£L3UGH Sales Office: 2nd Floor P S July, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 Commodities Coconut Oil.......................................... Cigars (Number)................................. Embroideries......................................... U.fTy.b.«. Desiccated and Shredded Coconuts. Hate (Number)................................... Lumber (Cubic Meters).................... Copra Meal.......................................... Cordage.................................................. Knotted Hemp....................................... Pearl Buttons (Gross)......................... Canton (low grade cordage fibre).. . All Other Products............................... Total Domestic Products... United States Products. .. . Foreign Countries Products. Grand Total. Articles Cotton Cloths................... Other Cotton Goods......... Iron and Steel, Except Machinery..................... Rice..................................... Wheat Flour..................... Machinery and Parts of.. Dairy Products................. Gasoline............................. Silk Goods......................... Automobiles....................... Vegetable Fiber Goods... Meat Products................. Illuminating Oil............... Fieh and Fish Products .. Crude Oil........................... Coal..................................... Chemicals, Dyes, Drugs, Etc................................... Fertilizers........................... Vegetables......................... Paper Goods, Except Books.............................. Tobacco ManufactuElectrical Machinery.. .. Books and Other Printed Matters........................... Cars and Carriages......... Automobile Tires............. Fruits and Nuts............... Woolen Goods.................. Leather Goods.................. Shoes and Other Foot ware................................. Coffee................................. Breadstuff, Except Wheat Flour............................... Eggs, In natural Form.. Perfumery and Other Toilet Goods................ Lubricating Oil................. Cacao Manufactures, Ex cept Candy................... Glass and Glassware.. .. Paints, Pigments, Var nish, Etc........................ Oils not separately listed. Earthern Stones and Chinaware................... Automobile Accessories... Diamond and Other Pre cious Stones Unset.. .. Wood, Reed, Bamboo, and Rattan.................... India Rubber Goods.. .. Matches............................. Cattle................................. Explosives.......................... Cement............................... Sugar and Molasses........ Motion Picture Filrfm. .. Other imports................... PRINCIPAL EXPORTS Monthly average for 12 months April, 1934 April, 1933 previous to April. 1934 Quantity Value % Quantity Value % Quantity Value % 206,698,943 13,053,442 16,622,252 23,232,877 21,730,053 1,081,576 879,439 1,921,813 65,897 6,194 4,846,881 784,688 7,000 81,250 212,520 699,480 306,928 64.315 209,074 330,010 115,773 192,539 91.368 249,923 6,100 47,677 12,348 705,192 P30.035.326 126,019 7,527 99.6 0.4 P30,168,872 100.0 173,671,193 11,038,929 12,382,103 23,199,004 7,946,906 323,335 255,712 987,316 71,329 2,234 1,937,147 351,338 26,272 51,922 735,726 P20,050,096 839,684 1,513,690 1,411,779 260,160 30,225 16,272 54,414 180,808 84,339 56,665 90,897 42,626 853,569 P25.451.483 83,461 7,405 P25,543,349 100.0 Non:—All quantities are in kilos except where otherwise indicated. PRINCIPAL IMPORTS CARRYING TRADE PK 62.6 6.6 7.8 1.5 0.7 0.9 P20.031.555 100.0 April. 1934 April, 1933 IMPORTS Value 351,029 258,811 309,708 472,343 668,665 380,175 397,694 74,031 254,519 126,463 82,862 204,931 75,846 133,498 122,577 72,279 93,081 133,624 % 7^8 8.1 0.4 2.2 3.6 2.4 4.3 1.9 1.4 1.9 2.8 2^3 2.4 0.4 1.4 0.7 0.4 1.2 0.2 0.4 0.5 0.6 0.‘ 0.8 0.4 0.6 0.8 0.: 0.4 0.6 (L2 0.4 0.. 0. 0.4 9.6 Value 265,584 182,199 307,422 173,329 367,116 168,407 81,106 90,108 85,854 57,052 127,048 70,089 61,720 96,787 96,795 10,831 % Value % Nationality of Vessels Monthly average for April, 1933 12 months previous to April, 1934 20.6 P 12.7 7. ~ 2 Value % Value % Value 0., 3. 3.5 1.9 2.0 0.4 0.7 1.3 0.6 0.7 0.6 0. 1.0 0.5 ois 0.6 0.5 0.7 0.7 6.6 385,504 337,037 112,684 103,136 134.016 124,182 56,664 127,947 23,421 1 2 8 3 4 2 2 2 7 5 0 2 2 2 5 0 0 0 8 7 0 0 0 0 9 9 0 0 9 0 0 8 7 0 0 0 0 0 0 0 0 0 0 American.. British........ Japanese... Dutch........ German.. .. Norwegian. Philippines. Spanish.. .. Chinese.. .. Swedish.. .. Danish........ Portuguese. Panaman . . By Freight. By Mail. .. 613,709 % 0.7 2.3 1.8 P 3,490,600 4,928,435 904.996 723,959 678,912 1,633,455 21,694 8,733 55 28.375 26 39 6 5 5 12 0 7 8 5 9 0 6 5 0 2 2 0.6 2.6 3.0 0.2 1.2 7 0 7 2 Total. EXPORTS April, 1934 April, 1933 Monthly average for 12 months previous Nationality of Vessels to April. 1934 Value % Value % Value % American. . British........ Japanese... German.. .. Norwegian. Spanish.. .. Dutch........ Philippines. Chinese.. .. Swedish.. .. Danish........ Panaman .. By Freight. By Mail. .. 33 24 27 0 7 29 28 20 0 16 P 26 23 2 2 o.: 1.5 760,730 Total. 2 5 5 5 (L4 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES April, 1934 Monthly average for April, 1933 12 months previous Countries to April, 1934 Value % Value % Value % 81 2 2 4 2 82 2 United States.. . United Kingdom. 6 2 2 7 2 Total. TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES April, 1934 Monthly average for April, 1933 12 months previous Ports ' to April. 1934 Value % Value % Value % Manila........ Iloilo.......... Cebu.......... Zamboanga. Legaspi.. .. Australia......................... British East Indies.. .. Dutch East Indies... . Netherlands................... Italy................................ Hongkong....................... Belgium........................... Switzerland.................... Japanese-China............. 3 Sweden.... 6 Norway.. .. 1 0 Denmark............ 6 Other Countries. 5 5 7 9 2 3 2 3 0 0 3 0. 1 0.2 9 0 0 3 0.2 0.2 0. 7 3 3 0 0 0 0 0 Total. Total... 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL July, 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 American Chamber OF Commerce Journal P.O. BOX 1638. TEL. 21126 0. B. Santos Commercial Artist CUTS PRINTING TEL. 2-27-05 320 Bustos MADRIGAL & CO. 8 Muelle del Banco Nacional Manila, P. I. Coal Contractors and Coconut Oil Manufacturers MILL LOCATED AT 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 P. O. Bo« 1394 Telephone 22070 J. A. STIVER Attomey-At-Law-Notary Public Certified Public Accountant Administration of Estates Receiverships Investments Collections Income Tax 121 Real, Intramuros Manila, P. I. PHILIPPINES COLD STORES Wholesale and Retail Dealers in American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila, P. I. fr ffi ® f CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description 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 Mutua de Construcci6n y Prtstamos) 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 Chevrolet Today’s Lowest Priced Six New Reduced Prices Pl,776.50 and UP Pacific Commercial Company 2 Isla de Romero Iloilo Manila Cebu 4" Yesterday-today-always the greatest Mother—the Red Cross 4" ZINC META ARSENITE: PREVENTS DESTRUCTION OF WOOD FROM ATTACK BY ROT, TERMITES, WHITE ANTS OR ANAY, AND BOK-BOK A New International Lumber Trade Mark STAMPED ON LI MBER MEANS THAT IT HAS BEEN PRESSURE TREATED WITH A WOOD PRESERVATIVE OK EXCEPTIONAL MERIT. LUMBER IS PERMANEN TLY PRO TECTED AGAINST ALL FORMS OF ROT AND INSECT ATTACK. IT IS CLEAN AND TAKES PAINT OR VARNISH AS SATISFACTORILY AS UNTREATED WOOD. LUMBER IS ROT PROOF LUMBER IS PAINTABLE LUMBER IS ODORLESS LUMBER IS PERMANENT CURTIN-HOWE CORPORATION Timber Preservation Engineers New York. N. Y. ZMA prevents attack by anay and bok-bok. Tests have shown that only a verv small quan^.°f ZMA is —kil> - 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 lumber may be used unpainted since it 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. 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. 1. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL It's Safest To Have NEW GOODYEARS ALL AROUND! What a satisfaction it is... what a pleasure it is... to have All-Weather Tires all around! Then you know you are SAFE. For these world famed tires carry safety in their Center -Traction TREAD and pro tection in their Super-twist Cord PLIES Safety in every ply from bead to bead. Isn’t it worth far more than the little more Goodyears cost over the cheapest tires of unknown make, or any old worn tires, to have the certain security of All-Weather Tread and Ply Safety under every wheel? co™ SAFETY with SILENCE at All Speeds We can fit a new set to your car while we demonstrate to you the superior ity of Goodyear Tires, let us prove to your complete satisfaction why “The world over more people ride on Goodyear Tires than any other make.” Houston Rubber Company 548 Rizal Ave. • • Tel. 22122 SOCONY ACME AUTO PRODUCTS BATTERIES ACCESSORIES FREE SERVICE IN .RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL