The American Chamber of Commerce Journal Vol. XIV, No.12 (December 1934)

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XIV, No.12 (December 1934)
Issue Date: Vol. XIV, No.12 (December 1934)
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extracted text: P. O. Box 1638 MANILA, P. I. P4.00 Per Annum 35 Centavos a Copy Plight of Philippine Sugar A Study [or the Senators Higher Oil Prices Not Due to Excise Tax By E. M. Shelton Philippine Paper Market Trade-Balancing Factor Situation in P. I. Cotton Imports By James Traynor Our Electrical Goods Market Its Potential Expansion Gas Corporation’s Growth Structural Steel in Philippine Building By S. Garme^y, C. E. Philippines as Heavy Machinery Market ¥20,000,000 a Year Imports THE TYDINGS DELEGATION: Page 15 OTHER FEATURES AND THE USUAL EXPERT REVIEWS OF COMMERCE Good Cigars Are Always Welcome They make splendid gifts to those of your friends who smoke and who you want to remember for Christmas SUGGESTED... PIGTAILS SALOMONES VEGVEROS ESPECIALES FAVORITOS CORONAS Many of these are in various sizes to suit the individual taste of each smoker If Cigarettes are preferred. . . TABACALERA, cork tips TABACALERA, no tips MISS ROOSEVELT, gold tips SULTANES, gold tips all in boxes of 100 These are but suggestions; there are many others, all made by us and will meet the approval of your best friends On sale at the Escolta store TABACALERA CIGAR STORE Crystal Arcade • Escolta III i( IIII A ORIGINATORS OF HIGH GRADE PHILIPPINE TOBACCO PRODUCTS for Christmas/ If you gentlemen want to do some thing handsome for Mrs. this year, buy her a new Air-Cooled Electrolux Refrigerator for Christmas. You have not only done something worth while for her but you have done as much for yourself. You have instal led the most dependable form of re frigeration; you have reduced the cost of operation, repair costs, and insured your food. You have got rid of noisy operation. You have GAS company service to see that the refrigerator operates as it should at all times. There is yet time to install the Elec trolux before Christmas; come in today and select the size for your home- MANILA GAS CORPORATION IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL for big fobs— ENGINEERS CONTRACTORS SALVAGE STRUCTURAL STEEL DREDGING GARDNER-DENVER COMPRESSORS PUMPS DRILLS CREOSOTED APITONG TIBS Atlantic, Gulf & Pacific Co. Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL your next TIRES remember DUHLOP The STANDARD by which all Tires are judged Dealers throughout the Islands MONSERRAT ENTERPRISES CO., LTD. Distributors 550 San Luis — Manila 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 FROM I. BECK, INC (ESTABLISHED 1898) PROPRIETORS: Beck’s Department Store Broadcasting Station “KZIB” IMPORTERS-WHOLESALERS OF AMERICAN MERCHANDISE Branches: CEBU ILOILO BAGUIO NEW YORK BUYING OFFICE 331-4th AVE. 'h ^HITeHor^I ’ ScotchWHISKY 1 ality NEVER Varies^^H ZJ Quality The Prescription as before... Once you have experienced the tonic effect of a large White Horse Whisky, with cold soda, you will realise, as so many others do, the use fulness of this prescription against weariness and loss of appetite. The restorative powers of White Horse at the end of a tiring day and its value as an aid to digestion arc among the chief virtues of this consistently excellent old whisky. Sole Agents: HANSON.ORTH& STEVENSON,INC., MANILA ILOILO CEBU DAVAO IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 LIGHTING THE WAY. .. for the Christmas Shopper With Christmas, comes the problem of gift selection. This season elec trical dealers have tried to make it an easy task for you by stocking complete lines of the latest models in electrical appliances. Your friends your family everyone appreciate this type of remembrance. Make them happy the year ’round with electrical gifts. Each gift shown here and scores of others are available at our Mer chandise Store or from your electrical dealer either for cash or on con venient terms. Each is fully guaranteed as regards excellence of ma terial and perfection of performance. Any Electrical Dealer will be able to assist you in choosing an ap propriate electrical Christmas Gift. Manila Electric Company SHELL 06^ Asiatic Petroleum Co. (P. I.) Ltd. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Good 1 “Tidings” Whether it’s Senators, baseball or just 1 the holiday season | ISUAN SOFT DRINKS should always be on hand-----------------they're such good “MIXERS” ISUAN, INC. 1 v , / 5-65-62 | TeIs* | 5-73-06 • We Deliver — Drink Your teS|> XmasToastsin WHYTE ■Fill® & MM MACKAY J||jlIIIMH WHISKY - ° Not a Headache in a Bottle HI SPECIAL Selected Highland | Whisky. Distributed by Il 'GLASGOW Smith, Bell & Co., Ltd. p»00vce OF SCOTLAMP Manila Cebu Iloilo SANTA ANA CABARET WHERE ALL GOOD PEOPLE MEET Dine and Dance to the Best Music in the Orient Special Spaghetti Dinners IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 5 Why Pay Rent— “Filipinas Compania when you can own a nice, comfortable home de Seguros in beautiful and healthful “FILIPINAS BUILDING” RIZAL AVENUE HILLS! 21 PLAZA MORAGA MANILA We have houses for sale bujlt on nice lots, as low as an initial payment of 5*200.00 and the INSURANCE: BONDS: Fire Fire Arms balance payable in ten (10) years at the rate Motor Car Trust of 5*40.00 a month. Mortgage Fidelity Loans & Surety FOR FURTHER INFORMATION FOR FURTHER INFORMATION CALL AT: Apply Central Office, 2nd Floor Philippine Land Improvement Company FILIPINAS BUILDING MANILA 3rd Floor Insular Life Bldg. — Tel. 2-14-57 Tel. 2-22-42 MA NILA Post Office Box No. 745 The Luzon Stevedoring National City Bank Co., Inc. of New York Capital (Paid) - U.S. $127,500,000.00 Lightering, Marine Contractors Surplus - - - - „ 30,000,000.00 Towboats, Launches, Waterboats Undivided Profits „ 8,018,665.52 Shipbuilders and Provisions (as of June 30th 1934) COMPLETE BANKING SERVICES MANILA OFFICE SIMMIE 8b GRILK National City Bank Building Phone 2-16-61 Port Area IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 BONDS Firearm Ammunition Judicial Contractors Customs Internal Revenue Fidelity and other Bonds INSURANCE Fire Marine Earthquake Typhoon Workman’s Compensation and other Insurance Call or Write for Particulars FIDELITY AND SURETY COMPANY of the PHILIPPINE ISLANDS Geo. C. Dankwerth President P. M. Poblete Sec.-Treasurer E. B. Ford Vice-President A. Santwico I Asst. Sec.-Treasurer 4 Tel. 2-12-55 MONTE DE PIEDAD BUILDING Plaza Goiti Manila, P. I. AILIHAMIBCA CIGARS continue to be the recognized leaders in QUALITY cigars GO ON LEAVE BY DUTCH NEDERLAND LINE Royal Dutch Mail MAILS ROTTERDAM LLOYD Royal Dutch Mail DUTCH MAILS AND Java-China-Japan Line VIA \BALK&\JAVA OR VIA \ HONGKONG \SINGAPORC £ASTERt\& \PhILIPPINES SHIPPING AGENCIES \ ESCOLTA 8-12 (CORNER JONES BRIDGE) IN RESPONDING TC, ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Subscription: $3.00 U. S. Currency, per December, 1934 ; THE AMtnittN Vol. XIV, No. 12 U. S. Capital in Gas Corporation Well Founded Here Growth in 21 years from 2,637 patrons to 16,127, and gas consumption multiplied 9 times The Manila Gas Corporation (capital originally Swiss, now American) got its franchise in June 1912 and opened its service in Manila in November 1913. Th? presant manager, A. Hoyer, was one of the staff hastily got together from projects in Europe to come to Manila and, in the swamps of Paco, erect the plant and begin operation in the very brief period allowed by the franchise. The capital now invested is 1*10,625,440. On this a satisfactory net earning is effected every year by practice of rgid economy, use of only the best equipment and suppies, and first rate maintenance including at all times a coal sup ply for at least 3 to 4 months. Prime soft coal is best for pro duction of coal gas. It com monly comes from Australia but at times is bought as far abroad as England. Pre sently it conies from Australia. Imported. con tingencies advise the keeping of a large supply ahead—more than twice as much as gas companies keep ahead in the United States. Because Ma nila is restaurant minded and most Manilans eat at least a meal a day outside their homes, restaurants and hotels are large buyers of gas. A prosperity deriving from brisk sale of surplus Philippine farm products in overseas markets, 85% in the American market, explains (he residential expan sion of Manila and the growing household demand for gas in the city and its environs in Rizal province to which the com pany’s franchise extends. As a middle class develops, its members build homes and install lights and gas. The city has an area of 20 square miles. Gas lines 180 miles long sup ply it, together with the villages of Pasay, Parahaque, San Pedro Macati, Caloocan, San Juan del Monte and San Felipe Neri. Two huge steel tanks built to the most approved specifica tions on earthquake-proof foundations supply an ample gas reserve, while the daily production capacity is 70,000 cubic meters or approximately double the daily requirement. Beginning with 2,637 patrons in 1913, 5 years later the company had 4,886 patrons consuming 182,863,000 cubic feet of gas a year. This has now doubled, and the number of patrons trebled. Patrons numbered 16,127 at the end of last year, and gas used during the year was 365,119,009 cubic feet. The rate up to 100 cubic meters is 15.5 centavos per cubic meter; 101 to 400, 14 centavo;; 401 to 2,000, 12 centavos, and 10 centavos above 2,000. Rates are governed by the public utility commission. Coal gas was made exclusively at first, but in 1917 a water-gas plant was installed and now this gas is 2/3 of the supply, coal gas the other 1/3. The water gas residue manu facture $ into a staple wood pre servative. Coke from the coal finds a market, also the tar—this in form of paints as w.ll as tar, among them a prime roofing paint. There are sev eral auxiliary power plants at the works, against failure of the power serv ice commonly used — to keep pressure on the mains. One of these auxiliary plants is electric. The company used its own power during 36 hours after the typhoon of October 16, while the general service was disrupted. The spacious grounds of the plant have been filled above flood level, drained and parked; there is no atmosphere of “the gas house district” about the place. Manager Hoyer and other staff members live there in order to be on day and night call, so clean pleasant cottage homes with gardens and lawns nestle wherever ample space is found for them. Gas stoves and equipment are handled at the plant and in the downtown store. Labor receives first attention, the 450 men on the payroll get some P300,000 a year. Hospital arrangements are supplemented with the services of a doctor and emergency dispensary at the plant. The dispensary treats some 900 cases a year, affecting about 300 workmen; the general run of cases being usual ailments, such as fevers, and not accident cases. Basically the dispensary is a welfare project, always available for immediate treatment when accidents occur. 8 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Newsprint Market Here Only In Its Infancy Much heavier call upon America for paper would come from upping the tariff slightly, still more from inculca tion of a common language throughout the islands Courtesy J. I>. Heilbronn Co. U. S. Linotypes in the Philippine Bureau of Printing—founded 34 years ago to do the public printing and comprise a school for the printing crafts. There are 105 linotypes in the islands, and more than One factor of growing significance in Philippine-American trade is newsprint paper. The market is entailed with a free press. Under Spain the Philippine press was closely censored, newspaper publishing in the islands was of no business impor tance: contents and make-up were of the poorest, polemical matter excepted, when addressed to partisans, and readers and ad patrons were few. From 1899 to July 1902, the mili tary period under the United States, a censorship by the military authorities prevailed. It was liberal except as to engendering opposition to America, the press breathed with less restriction and began to grow. Freedom of the press came with the civil gov ernment in 1902. At once there was a market for paper. But in 1900, the total value of news print imported into the islands July to Dec ember was but P131,525; from the United States, 1*23,285; from Germany, F24.172; from France, 1*30,234; from Spain, PIG,886; from the United King dom, 1*3,234. Several daily newspapers print ed in English were then in existence. Some of them construed freedom of the press liberally, and had their main cir culation in the ranks of the army. Taft, estab lishing the civil regime that was to clear the newspapers’ way to fortune, was tormented by what he styled “the little lions of the press.” It was the free public schools teaching English to Filipinos as a common language that broke through parochial barriers and gave daily and weekly newspapers widespread circula tion with which they could go to advertisers for patronage. Gradually, more radical or more loosely managed American newspapers died, leaving the conservative and aggressively managed Manila Daily Bulletin this field, in which it finds some 2/3 of its readers among Filipinos educated in English. Ten years ago, or about that time, Spanish lapsed into a bad second place as a medium for newspapers in Manila: in the provinces it holds out much better, where the circulation of local papers is among the planters and hardly at all among the small owners and the tenant class. In Manila the pub lishing establishment headed by the wealthy /Xlejandro Roces, Sr., started the Tribune in the morning field: the Phil ippines Herald, under a rival publishing house, came out as the Filipino’s afternoon newspaper in ICnglish bidding for American and international attention. Good circulation among these newspapers may be reck oned below 12,000 daily, for any of them. Week-end editions with features the week’s news summarized run higher. Cir culations are not officially audited, the figures cited are pub lished as a liberal estimate. It is evident that newspaper publishing has far to go in the Philippines, to reach popular circulation; therefore the paper market of the future, if a free press continues, is bound to overshadow the present market as the latter now overshadows the market that existed here at the advent of the American regime. In other words, the newsprint market here is worth getting hold of. If trade upon tolerable terms continues permanently between the Philippines and the United States, and a common language is established throughout the islands by medium of the schools among a constantly growing class habituated to the appetite for news, the newspaper with a circulation of at least 200,000 daily is loitering with pros perity, just around tomorrow’s corner. One publishing house is, however, tackling the bogie of circulation from another angle. It publishes weeklies in Manila, in the ver nacular of various re gions of the islands. This is the Ramon Roces Publications, Inc., Ramon being a son of Alejandro, Sr., success ful in the daily field with a newspaper in English, as mentioned, one in Spanish, a third in 1 agalog. Ramon Roces made his first venture with his Taga log weekly. It sells for 10 centavos the copy, comes out on newsprint, with 2-color and roto gravure sections, makes a net profit from cir culation alone. It has run as high as 70,000 copies weekly, must be Another Roces weekly Ilongo, each for a difdoing somewhat less than that now. is published in Cebuano, another in___----------- --ferent territory in the Bisayas, the middle islands of the Philippines. Another in Ilokano has its main field in the northwestern provinces of Luzon, the Uokos region. Stockman and Farmer printed in English signifies its devotion in its name; it is a monthly of small circulation but creditable appearance and content. The Herald house, Carlos P. Romulo publisher, issues a daily in Tagalog, language of Manila and adjacent provinces. It also has a morning paper in Spanish, and an omnibus sheet, the Monday Mail, covering the week in English. Ramon J. Fernandez publishes dailies in Spanish and Tagalog. The above are main newspaper groups in Manila, where plants are provided with modern presses and typesetting machines. Newspapers in the provinces offer a small market for flat paper. Some towns, notably Iloilo and Cebu, have English sections in daily papers. But the language which is to be a common tongue for the Philippines has not yet emerged from the ruck of a prolonged competition. English has the advantage of being the language universally taught (Please turn to page 25) December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 Cotton Piecegoods Philippine Market Won by Japan With America's domestic policy toward textiles, Japan beats her here and U. S. labor loses $3,000,000 to $11,000,000 a year. By James Traynor. When it is considered that cotton piecegoods represent the (largest single import item in this country and that lately the United States has been steadily losing this important trade, the loss of business running into millions of dollars annually, it is not surprising that American mills are greatly concerned. They are not only uneasy about the business that has already been lost but are even more anxious about the future and what promises to be greater losses. From the time the present tariffs were put into effect in 1909 the U. S. has enjoyed a large share of this business, con sistently supplying more than all other countries combined. The value of American textiles has varied between $6,000,000 and $22,000,000 gold per annum, making the Philippines America’s largest export market for piecegoods. American mill labor is much more interested in this market than the mill owners. It can be conservatively estimated that 50% of the value of cotton piecegoods shipped to the Philippines from the United States is paid to labor, or for every million dollars of business lost American labor loses in wages $500,000. In times of unemployment and government relief neither labor nor the Federal government can afford this loss. To fur ther demonstrate: $500,000 will employ for one year 561 mill workers at the NRA minimum of $17 per week. It is estimated the United States has lost in the past year $4,000,000 in cotton piecegoods business to Japan, which in terms of labor means 2244 American mill hands out of employment. In these days when appeals are heard on every hand for the unemployed in the United States, these figures speak far more eloquently than any comment the writer could make. Japanese competition has for many years been a factor in the Philippine market but it did not become serious until the Spring of 1933 when the New Deal was put into effect and with it the NRA and the devaluation of the dollar. Accord ing to statements of the Department of Commerce in Wash ington total exports of the United States have increased during the Roosevelt administration, but this does not apply to cotton piecegoods shipments to the Philippines. When President Roosevelt succeeded in raising commodity prices in the United States prices of American textiles became too high to hold their own against Japan. In order to show how American cotton goods have suffered in this market I quote the following figures obtained from the customs reports, showing average percentages of the total cotton piecegoods supplied by the United States for the period 1915 to 1933: Unbleached, 56%; bleached, 78%; dyed, 52%; printed, 78%. Compare the above percentages with the following com parative figures for America and Japan for January to Sep tember 1934. U.S.A. Japan Unbleached.......... .......... 59% 26% Bleached............... .......... 48% 40% Dyed..................... .......... 38% 51% Printed................. .......... 32% 68% While for 1934 the United States is slightly ahead of the average in unbleached goods during 1915 to 1933, the other three classifications show an amazing drop. A study of the ^statistics supplied by the customs will show that practically ^11 the trade lost by the United States has gone to Japan. The question that naturally arises here is h6w Japan is able to underquote the United States to such an extent on cotton goods, that she is able to pay a duty and still land . goods more cheaply. A combination of reasons makes this possible. Japanese manufacturers claim to be more efficient and are loud in praising their improved machinery which they say weaves faster than any other and therefore more econom ically. This may or may not be true, but admitting that it is, it could not possibly account for any more than a very small difference as compared to the United States. Another and probably more important reason for Japan’s low cost of pro duction is explained by the following statement of a large Japanese exporter which is quoted from an article appearing in Japan Trade for September 1934: ^/Apropos, mention should be made of the number of looms which a mill hand can tend in this country. (Japan). The installation of automatic looms, aided by frequent improve ments on them, has enabled a mill hand to look after from 30 to 40 looms today. ... In Japan, the majority (up to 90%) of the operatives in cotton spinning and weaving mills are unmarried girls, mostly in their teens. Young as they are, they are doing just as great a volume of work as, nay, several times more work than, full fledged men heading their respective families in Europe, America and elsewhere. Despite these kinds of mill work not requiring much technical experience and skill. The mill hands in Europe, America and elsewhere consist of high skilled male operatives who are engaged in the work for many years, or even for generations, using more than necessary skill and each tending only one-sixth or oneseventh of the number of looms a female operative can look after in Japan. Here is found no small waste. Meanwhile, the female operatives in Japan need not earn funds on which their families have to live, but only those for their marriage paraphernalia.” The girls referred to, according to the same article, are from 14 to 19 years of age, work 2 hours a day for 7 days a week. Their wages are in the vicinity of $2.50 per week, plus second ary grade tuition and medical treatment. Compare these labor costs with the minimum of $17 per week of 36 hours paid American mill workers who do, according to the above mentioned article, several times less work per hour. While Japanese mills are so organized as to keep labor costs at a ridiculously low level, American mills have had actually to increase their labor costs because of the NRA code. In addition, American prices are high in comparison withJapan because of the exchange rate. 2*ne devaluation of the dollar, plus cotton crop control, increased the price of cotton from 5 cents to 12 cents plus per pound. This increase in the price of cotton, plus the labor increases caused by the NRA raisejkfhe prices of manu factured goods from 30% to 40%. Tne peso being tied up with the dollar was devaluated to the same extend as the dollar so that no benefit was gained in the purchasing po wer of the peso in the United States market. On the other hand, the yen was also devaluated, instead of the yen being worth a peso it is at present worth about 60 centavos or a gain for the peso in purchasing power in the Japan market of about 40%. The increase in American prices of from 30% to 40% plus the gain in the purchasing power of the peso as against the yen of about 40%, was much more than the tariff protection afforded American goods in the Philippines. When the present tariff schedules were worked out in 1909 the main competitor of the United States for the cotton piecegoods business of the Philippines was England. At that time exchange rates were not subject to radical changes through devaluation, and Japan’s cotton industry was in its infancy and hardly promised to become the im portant factor that it is today. England is no longer a serious competitor, having been replaced by Japan with its low costs of production and devaluated yen. With the in creased costs in the United States the present tariff laws do not give American goods the protection they were de signed to give and in order to rectify this the various (Please turn to page 27)’ 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 The Electrical Equipment and Sundries Market Here Filipinos buy by far the larger part of such manufactures . . . General Electric is the oldest company in the field American trade in electrical equipment and sundries in the Philippines was founded 35 years ago by Frank L. Strong. Strong had been an engineer officer with Dewey’s fleet. He resigned his commission to establish himself in business in Manila, oldtiiners recall that he built the government ice and cold storage plant—his first big project. He was the agent of the General Electric Company; he acquired many other prime agencies, of ma chinery, engines, supplies, etc., and incorporated his business in 1907. The site is now that of the American Grocery, calle Echague. In tessellated tile, the threshold long bore the name: Frank L. Strong, M.E. From the outset of the Amer ican regime, demand for elec tric current grew. It was re ported in 1900 that new lights were on the streets, that Manila would soon be “one of best lighted cities in the world.” The concession was held by a company called La Eledricisla. Its resources were short of the demand, and in 1905 its inter ests were taken over by the Manila Electric Railway and Light Company, now the Ma nila Electric Company, which acquired the franchise for operating electric trams in addition to manufacturing and distributing current. The electric company’s in vestment has since become the largest permanent American in vestment in the Philippines, such has been the growth of demand for its services. It serves about 100 towns on Luzon besides Manila; and be yond its lines, both on Luzon and throughout the islands, local plants are numerous. A trans formation was wrought in all the sugar-cane regions of the islands with the establishment of sugar centrals to replace the oj en-kettle mills: all the new mills had abundant power, and began, as they .continue, fur nishing light and power lavishly to their communities. Similarly lumber mills, coco nut oil and desiccated coconut factories, local ice plants and factories, such as the few exist ing, create demands for electric lights and household appliances. This at once influences municipalities, for whose benefit franchises for electric p.lants are granted by the legislature. The American company’s rates are consistently lowest. Few were the Filij inos who were customers for lights and appliances in the early years of Frank L. Strong’s business here. But their number grew. At his death, in San Fran In 1903 the Philippine government advertised in the United States for bidders for a street railway, light and power fran chise in Manila. Charles M. Swift of Detroit, sole bidder, was granted such a franchise. lie acquired the old interests of a Spanish company, La Electricista, and founded the corpo ration, the .Manila Electric Railroad and Light Company. Ini tials of these words make the cable word Meraleo, the popular name of the company, which, incorporating in the Philippines some 10 years ago, changed its name officially to the Manila Electric Com pany. The original capital was mainly British and European, but now the capital is mainly American. In 1925 the corpo ration became an Associated Gas and Electric property, management under the .1. G. White Management Corpora tion, headed by John II. Pardee. The fixed capital investment in the Philippines is about Si5,000,000. During 30 years the company has expanded its capacity ahead of the increasing demand. The march of invention has dwindled the importance of the electric tram service, and enhanced the worth of the light and power divi sions. The company now has 20 power plants including a hydro electric installation at Botocan, Tayabas, capacity 20,000 kilowatts, the notably economical steam plant in Manila, 29,500 kilowatts, and 18 plants totalling some (>0,000 kilowatts capacity among the 99 towns in the company’s system out side Manila. There are also 30 substations in the system. Insular, provincial and municipal taxes exceed the revenue from street lighting in Manila and the 49 other towns the company lights. In the system as a whole, 1,450 miles of line arc operated. There are 84,753 residential patrons, 25,213 commercial, 733 power, a total of 110,099, to which should be added the 50 towns taking st reef-lighting service. Among residential customers, 49,180 are for fiat-rate lights only. Of these 49,180, some 30,103 use but 1 lamp each, at 1’1'10 per month. Much costly wiring, etc., is involved for the little revenue received, but the franchises arc thus observed and prime service rendered. ('1 he figures also hint of the larger market for electrical wares that is potential here, should ample trade with the United States continue.) Nearly 51'7 <>f gross revenue goes to pay 2,400 employes, the livelihood of 12,500 persons. 'Ibis money returns into active trade channels at once. Unavoidable losses in kilo watt hours absorb the gross revenue every fifth day; in some towns where 24-hour service prevails, this loss takes the gross revenue every second day. Typhoons cause losses that can’t be discounted ahead. 'I his year such extraordinary expense will approximate 1*500,000. The foregoing epitom izes 30 years’ service of the largest American company in the Philippines, basis of fixed investment here. Public control is exercised through the insular public utility commission. cisco in 1917, his General Electric agency, a plum many were reaching for, fell to the islands’ leading commercial house, the Pacific Commercial Company. General Electric has now opened its own office in Manila, but maintains important marketing arrangements with the Pacific Commercial. A large section of the company’s store, the American Hardware and Plumbing Company, calle Echague, is given over to the electrical department. Other stores devoted to elec trical wares are similarly pre tentious. The Manila telephone directory lists 23 electrical engi neers and contractors, 22 elec trical supply businesses, cen trally located among which, in the heart of the Escolta, is the store of the Manila Electric Company itself. At some of these stores at least, more than 4 customers in 5 are Filipinos; even the demand for electric refrigerators is chiefly among Filipinos. The prosperity these demands manifest derives from trade with the United States. Loss of that trade, or its very appreciable curtailment, would therefore hamper seriously, if not actually jeopardize, a prime trade and industrial interest of the American people in this market; and through securities widely held, the blow would be felt throughout the Uni ted States. Here is an illuminating list from last year’s Philippine im-. ports: Batteries valued at Pl69,566; from the United States alone, P160,943; duty on foreign bat teries, Pl, 102. Dynamos valued at P 182,383; from the United States alone, P92,433; duty on foreign dyna mos, Pl 1,628. Fans valued at P 13,485; from the United States alone, Pl 1,182; duty on foreign fans, P304. Flashlights and parts valued at Pl 19,554; from the United States alone, 1*93,064; from Japan, P2,863; from China, P23,627; duty on foreign flash lights and parts, P5,127. More than 90% of this trade is with Filipinos, certain dealers report. Heating and cooking appa ratus valued at P69,739; from the United States alone, P62,545; duty on foreign heating and cooking apparatus, Pl, 188. Bulbs and tubes valued at 1*367,665; from the United States alone, P139,965; from Japan, P112,907; duty on foreign bulbs and tubes, P29,813. {Please turn to paje 27) December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 Japan Biggest Buyer of Hemp: Japanese Lead Exporters Once the queen of Philippine farm products, Manila hemp is now better than ever before in quality, less in demand. But there's another side to the question The table boxed on this page shows the worldwide market for Manila hemp, abac:!, the countries that buy and how much they buy. This hemp is raised commercially outside the Philippines only in Sumatra. About the Dutch methods there little is known save that extraction of he fiber is tho roughly mechanized and the plantations are very large and scientifically managed. However, it is still asserted that Philippine hemp is best, and it is certainly the leader by long odds as to quantity. Hemp is the oldest Philippine farm export; together with copra, oil and tobacco, sugar becoming a factor much later, Manila hemp founded the islands’ ocean commerce at the opening of the 19th century, when it attracted the first resident foreign merchants from Europe and New England. America bought 60,000 bales in 1850, 2-1/4 times that in 1860, for naval and mercantile marine pur poses mainly—this era preceding the McCor mick reaper-binder that later opened a market for Manila hemp for binder-twine. But though the merchant ships were few at the end of the century, and the navy small and built for -steam, America bought 265 828 bales of hemp in 1899—practically as much as England did, from whom too America bought both hemp and cordage. Today, in an era of wizardry that makes statesmen beg chem ists to keep their se crets to themselves lest they utterly upset so ciety, the best insight into Manila hemp’s basic importance is Japan’s interest in it. Quantity available is large this year, 1,325,229 bales up to December 1, the fiber inspection service reports; and the table shows where it is going. The largest exporters are Japanese corporations, the largest buyer country is Japan. Neither can Japan be accused of laxity in research, nor of doing busi ness for the lo.ve of it. Besides, Japan is vitally interested in another fiber, the world’s rarest, silk—basis heretofore of Japan’s economy. Japan buys at least P200,()()() worth of Manila hemp a year, for uses oilier than in cordar/e. Keeping the hoic of it to them selves, Japanese show you a shirt collar and tell you it is made of hemp; or they show you fiber you would swe,ar was silk, and tell you it is just hemp. Buying all grades of hemp, from the lower grades they make paper. It is even claimed, and might be true, that they make timber substitutes of hemp. In the Philippines (and apparently in America as well) the fiber has never been broken down and given thorough chemical study. Britain’s interest has been in hemp for cordage. It is the Japanese who have toni off the fiber’s jacket and gone at the possibilities of the fiber alone. This current economic fact is as vital as it is new: namely, that research doesn’t lead Japan to abandon hemp, but to esteem it ever more valuable. Should this be the attitude of the rest of the world, after proper research, Manila hemp has an assured future until chemists turn up something better or very much cheaper. Seemingly this would be hard to do. Hemp, of course, would convert into rayon. Maybe the Japanese use it that way, too. They are wisely not glib about hemp. But they use hemp in cordage, too, like all the world does. They buy it here, process it into rope in Japan, ship the rope abroad wherever they can find a market for it. They ship rope, for example, to Asia minor and Malay sia and compete with Philippine cordage. They supply Russia both rope and twine, of Manila hemp—a great source in itself of their demand for the fiber. As in the case of cotton textiles, the story is—Japan’s lower production cost. But Japan ties Ma nila hemp into ship ping, and both these interests tie up with hemp production in Davao. A Japanese firm is the largest sin gle exporter in Manila to New York, and uses Japanese ships. While 4 million Fili pinos have in the past been dependent wholly or partly on Manila hemp for their living, uneconomical and un scientific production, in competition with Davao, will gradually compel then) to other pursuits unless they too adopt modern methods of preparing the fiber and cultivating the plant. This in itself shows how vital some practical research in uses of hemp would be in the Philippines. It is officially estimated that this year Davao is producing some 50% of the total output in the Philippines of Manila hemp. The bulk of this is of Japanese production. While prices are very low, P17 a bale for the standard American cordage grade F (December 12), without Japan’s extraordi nary demand all prices would be much lower and the islands would have more hemp on hand than the world would buy. Either that, or Manila hemp would vie with Mexican sisal, inferior to it in tensility, for baser uses such as twines. General demand, always primarily for cordage, follows the fortune of ocean tonnage: with ships out of commission and building slack, the maritime countries do with little hemp—Japan excepted because she has diversified her uses for it. But it is still important who has sovereignty over Manila hemp. Par ticularly as research, little as wc know of Japan’s, seems only to make it more generally useful. 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Sugar's Outlook During the Commonwealth Decade Five years of doubtful going, the industry says, and gradual and perhaps a general fold-up when the export tax applies It should be no secret that the trend of private capital today is to leave the Philippines. Such facts are often set out as bogies with which it is hoped to obviate or moderate some political plan, whereas they are better taken as normal io an abnormal situation. The proposed setting up of a govern ment in the Philippines independent of the United States is thoroughly abnormal procedure, and that it should be associated with extreme hardship, even if violence should not lift its radical arm, is a normal expectation of it. Hardship implies, naturally, the ruin, at least for a period, of private fortune; and it is therefore nothing more than a manifestation of prudence that now, when a man has grown and sold some thing and has a balance in some bank overseas for its worth, he leaves that money out of the Philippines. This normal process in parlous times has been manifest in the Philippines for years, is evidenced in the paralysis of every market, every value, outside that for pleasures and consumable goods. Real estate, notably, has capricious values: a property may have cost F 100,000 and will not. interest a buyer now at F10,000; or a plantation may be valued for taxes at F500 a hectare (2-1/2 acres) and go under the sheriff’s hammer for the face and interest of a mortgage. This implies that trusts are insecure, that problems of safety of the capital, con fronting trustees of estates and trust officers, become daily more grave. It is nor mal to the fact that anxiety prevails in loan and mortgage houses, where distress is already widespread enough for relief bills to have been presented to the insular legislature. The situation, nor mal as it is to the effecting of the ends of a revolution, gathers bulk as it gathers momentum; and though it should not astonish, it must be dealt with—preferably of course by the United States and the Philippines jointly. The main threat is to basic industries whose surplus has been supplying the United States. Sugar leads .these indus tries. This industry provides us data showing that 2 million Philippine people gain their living from it, directly, and that it pays 43% of the insular taxes and comprises 61% of total insular exports. ‘From this the industry argues that it sus tains a vital portion of retail and wholesale business of the islands, which of course is true; and certain branches of busi ness are even more dependent on it, among them machinery. Sugar sets up at least 70% of the annual Philippines dollar credit in the United States, is therefore basic in exchange and banking. Such an industry could not be let go to pot with impunity to Philippine stability and Philippine-American commerce, a statement that is made no stronger only because the industrial writer is constrained to consciousness of the revolutionary progress of applied chemistry—today’s neces sities may be tomorrow’s cocked-hat. Last year the Philippines sold America 1,241,229 short tons of sugar, compared with the Jones-Costigan quota of 1,015,000 for the 1934-1935 crop, a sheer reduction of 226,044 short tons. The duty-free allotment during the common wealth 10-year period intended to be preparatory to independ ence is materially less, 850,000 long tons. In the 6th common wealth year, 5% of the American duty will apply as an export tax; in the 7th year, 10%; in the 8th year, 15%; in the 9th year, 20%; in the 10th year, 25%—after which independence is to come and new arrangements will be to be made. There is no telling what the situation will then be. On the other hand, as matters stand now, if the Jones-Costigan act is not extended or similar provision made, during the common wealth the Philippines may sell sugar on the duty basis in the American market above the 850,000 long tons a year that will go into that market on the terms just stated. There is no forecasting what the duty on Cuban sugar may be. When the Jones-Costigan act expires, it might be put back to $1.50 a 100 lbs., or it might not be. It is assumed that the Tydings-McDuffie act intend ed survival of the Philippine sugar industry. But the in dustry itself thinks the im posed conditions, the export tax particularly, preclude survival. Sugar is not pro duced as cheaply here as in Java, for example, while Cuba’s are reputed the lowest costs in the world. Philippine sugar is more a reciprocal trade proposition, satisfactory under some tariff leniency and not satisfactory without it. The industry says Cuba’s cost c.i.j. is 1.923 cents a lb. The duty of 9/10 cents a lb. makes Cuba’s landed costs in the United States 2.823 cents a lb., against a landed cost of Philippine sugar of 2.717 cents a lb., a present Philippine advantage over Cuba of but 0.106 cents a lb. The 5% of the American duty applied to Philippine sugar in the export tax the 6th year of the commonwealth, would not quite wipe out this slight advantage over Cuba, but the 10% the 7th year would more than do so. Cuba would then add to her low field and mill costs, proximity to New York, banking and insurance and other advantages, an actual margin on duty-paid costs: and as Cuban sugar would then determine the price, in conjunction with Liverpool’s supply, as it does now, Philippine sugar would have to withdraw from the American market, and when independence should come the Philippines would have a bankrupt major industry. It is this prospect precisely that .has provoked grave mis givings in the industry. It is hastening the liquidation of fixed capital, minimizing replacements and improvements, and, having stopped further investment in the industry, is diverting profits not only away from i^ but to fields entirely outside the islands. This necrosis spreads, with effects noted at the opening of this paper. It is something to remedy. December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 Federal Offices Branch Here for Sugar Benefit Ends Preauditing by both Wallace's and McCarl’s men obviates delayed communications and tends to advance benefit payments to planters Application of the AAA to Philippine sugar given a quota of 1,015,000 short tons in the American market under the Jones-Costigan act, has brought to Manila more Federal officials than the islands have known at any time since the autonomous civil government with Wm. H. Taft as Civil Governor was founded, July 1902. In addition, it has added to the Federal element in the office of the governor general: Governor General Frank Murphy is charged with adminis tration of the act in the Philippines. Not to compel him to make bricks without straw, or to do with two hands the work of four, a direct representative of AAAdministration and Secretary of Agriculture Henry A. Wallace is stationed at his office. This is Dr. Carl M. Rosenquist, through whose office affairs of the administration clear. Topside at the executive offices, downside he has cooperating with him and giving him many a tip on practical procedure, Trade Commissioner E. D. Hester who, furloughed at Murphy's urgent request after Joseph E. Mills’ death, last spring, clears, besides merely advising upon, matters of finance and economics be tween the governor general, the cabinet and the branches of the government, insular, provincial, municipal. In the Philippines the agri cultural adjustment act ap plies to sugar only, though in America many other prod ucts are embraced. It affects the 1934-1935 cane crop here; it grants an allotment to the Philippines of 1,015,000 short tons, of which a goodly part was shipped and bonded in storage from the 1933-1931 crop, leaving perhaps less than 700,000 short tons to be taken from the 1934-1935 crop. But the islands may have a precautionary surplus, perhaps 100,000 tons, and then there remains the local market that may require another 100,000 tons. In addition the islands might sell sugar in any other market than the United States, but can’t actually do so because other abundant sugars are cheaper. The United States has advanced, or set aside to be advanced some §14,000,000 (P28,000,000) against the payments to Philippine cane growers. The tax on processing will run against Philippine production until this sum, or the lesser sum that may be the total paid out, is returned to the Federal treasury. Thus while the quota relates only to the crop now milling, from which the maximum collection would be only slightly in excess of §10,000,000 (4*20,000,000) at cent per lb., or 1 centavo, the taxation should run longer. There are some 30,000 planters with whom to deal. Audits have to be made of their production during stipulated periods affected by the act, and their expected yields from the 19341935 crop must be got at in order to ascertain how much they shall mill and how much they must destroy. Bases of this tedious work were big tasks for Messrs. Hester and Rosen Frank Murphy quist. On these bases rest the planters’ agreements, contracts, to effect destruction of cane not destined to be milled. How much each planter may mill for export to America, for local consumption and for reserve is the knotty basic problem. Their export quota is based on their average crops 1931, 1932 and 1933. The new sugar act of the Philippine legislature provides that the governor general fix the quotas for local consumption and reserve, basis of either the 19321933 or 1933-1934 crop at the planter’s option. When the 3 quotas are known, for a planter, deduction of their total from his 1933-1934 crop will reveal the piculage to be wiped out by cane destruction and paid for, perhaps at the rate of 1*2.40 to 1*2.60 per picul. However, even at this stage a planter is not in sight of the benefit payment. Nor does he get it in one fat sum. To be as accommodating as possible and obviate delays of communi cation across the Pacific, Fed eral administration has been set up here—but in it are two sets of inquisitive comp trollers. The general comp troller of the AAAdministra tion at Washington is John B. Payne. His representative here, verifying that the 1*28,000,000 is disbursed in ac cordance with law, is Lester A. T.vigg, assisted by Julian P. Dell. Planter’s agree ments and supporting factual documents, all in hoped-for order, come for preauditing to Messrs. Twigg and Dell. Passed in their office, perhaps in many cases only after rerouting back to the puzzled planters, they go into the little office next door where sits a gray, an affable, but an incredulous man—also dis posed to favor Philippine sugar planters with preaudits of their benefit claims. This seasoned fiscal officer of the United States is Frank F. Conway, viceroy of no lesser fiscalian royalty than the agent of congress itself in the Federal government, Comptroller General of the United States J. R. McCarl, who, says World Almanac, “is charged by law with the settlement and adjustment, independently of the executive departments, of all claims and demands what ever, by the government or against it . . . and countersigns all warrants authorized by laic to be signed by the Secretary oj the Treasury.” With Mr. Conway, whose official title is that of Senior Investigator, Office of the Comptroller General of the United States, are two assistant investigators, W. T. Robert son and E. V. Colberg. Conway’s office and Twigg’s are in the National City Bank Building, 4th floor. Here too, Secretary of the Treasury Henry Morgenthau, jr. has his representative, to draw the checks for Conway’s countersignature. This is Disbursing Clerk Walter K. Trought, of the division, of disbursements, treasury department. His assistant C. Harvey Hurst, whose signature will also be on the checks. (Please turn to page 16) 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 The American Chamber of Commerce OF THE 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 RELIEF COMMITTEE: J. R. Wilson, Chairman MANUFACTURING COMMITTEE: K. B. Day, CAairman COMMITTEES C. A. Kesstler D. P, O’Brien LEGISLATIVE COMMITTEE: H. M. Cavender, Chairmai K. a 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 & 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 To illustrate. During the first quarter of the year,' and prior to the passage of the tax, both copra and oil markets were dull with prices subnormal as a result of purely natural causes. In April the senate approved the tax, which had previously passed the house, and upon this confirmation of everyone’s worst fears, the market started to decline quite steadily and with only minor fluctuations, and late in June reached an all time low for copra of 81.12^ per hundred pounds C.I.F. Pacific coast. In retrospect it now seems that this price, which was either near, or in some cases, actually below the cost of production, was largely a psychological product of the tax. Nobody knew with any degree of certainty what would arise from the welter of new possibilities created by the tax and hence no body wished to assume|commitments. The American market was distinctly in the doldrums and buyers refused to operate. Since the Philippine market is chiefly dependent upon Amer ican support, the local copra and oil markets reflected the fear of American operators and hence this market was artifi cially depressed below the world market—below real and in trinsic values. This was the first phase of the post-tax market, a condition created by fear and uncertainty. At this point European buyers commenced to take advan tage of an exceptional opportunity. It will be remembered that American buyers of coconut oil and copra must perforce fill their requirements in the Philippines, unless they are prepared to pay the differential of $.02 per pound on oil made from foreign copra—manifestly impossible. European buyers faced no such necessity, were still free to buy in the cheapest market. In May, Europe awoke to the fact that Philippine copra was 10% to 15% cheaper than any other world market and commenced buying on a large scale. This movement gained momentum in June and continued through July, August and September. During the months of May, June and July, the American market took a relatively insignificant quantity of Philippine copra, while Europe continued to buy on a hitherto unprecedented scale. This was the first step in recovery from the condition of fear and maladjustment growing out of the passage of the excise tax, and was to some degree anti cipated. The pressure which forces commodities to flow from a lower to a higher market was being freely applied and the second phase of the crisis was over. In July the market really started to exhibit some vitality THE COCONUT INDUSTRY AND THE EXCISE TAX By E. M. Shelton When the seventy-second American Congress enacted the excise tax on coconut oil, largely in response to the not in considerable labors of Chester Gray, the hired champion of the Middle Western Farmer, proponents of the tax rejoiced in the security of the knowledge that they had at long last layed the ghost of alleged Philippine coconut oil competition with the produce of the American farm. During these dark days, predictions were rife and many were the prophets of gloom. The industry had a bad attack of nerves. But “Man proposes and God disposes”—especially in the realm of economics—and now the birds are singing again; skys are reasonably clear, barring typhoons; the price of copra is advancing; coconut oil still moves into consump tion, and “God’s in his heaven and all’s right with the world” (at least temporarily). To understand what has taken place to con found both the Chester Grays and the prophets of disaster it is necessary to turn back and review brieflly the gyrations of the market during the seven months the in dustry has operated under the tax. January 1st.. February lat. March 1st.. . Anril 1st.... May 1st....... July 1st........ August 1st. . . September 1st. COMPARATIVE FATS PRICE TABLE (AU prices per 100 lbs.) •FM” Manila Coconut Copra-C.I.F. Oil C.I.F. Pac. Coast New York *' *".75 75 75 82 2 2 2 2 3 3 and by the end of that month prices had actually begun to climb. At this point we come to the real crux of the recovery. In August the market was simultaneously boosted by the phenomenal drought in the Middle West and the combined effects of the AAA crop destruction and acreage restriction schemes. Hogs were slaughtered, livestock perished and grains, cereals and cotton were either destroyed by the drought or reduced under the AAA. Meantime Europe continued buying Philippine copra, and these forces, powerful individ ually, were quite irresistible when combined, supplying the market with a powerful lift. By late August the market had definitely recovered with sales of copra at $1,375 Pacific coast. In September, American buyers finally awoke to the real ization that as they must perforce cover their requirements in the Philippines—or pay a penalty of $.02 per pound (on oil)—and as the supply of Philippine copra was not inexhaust ible, and Europe already having made tremendous inroads on the 1934 pro duction, they would have to enter the market or see part of their supplies move to Europe. This paved the way for that extraordinary rise in prices which elicited much comment. Copra prices (Please,I urn to next page) Tallow F.O.B.-N.Y. $3.00 3 00 Cottonseed Oil F.O.B. S3.50y 3 3 <> 9 10 3 2 7 December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 This Issue of the Journal Carries Information- for Them THE TYDINGS SENATE DELEGATION . . . “We don’t think a shorter transition period would be wise—’’ Senator Tydings. Guests of the Philippine government, United States Senators Millard E. Tydings, Wm. G. McAdoo, Kenneth D. McKellar, and Ernest 17. Gibson arrived in Manila via the s.s. “Empress of Canada” December 9 to spend the greater part of December in a study of the Philippine situation at first hand in relation to the- Tydings-M cDuffie act providing a 10-year commonwealth and then independ ence. The picture shows them at the pier (No. 7), McAdoo, McKellar, Tydings, Gibson, left to right. Next to Senator Gibson stands ex-Speaker Manuel Roxas, at whose left stands Mayor Juan Posadas. The occasion of the visit to the Philippines of these men. so influential in American legislation is taken to be one of the most vital in Philippine-American affairs. Senator Tydings, whose star is rising, is chairman of insular affairs in the senate; Senator Gibson is Vermont’s veteran Republican at Washington; Senator McKellar carries Tennessee by whopping majorities, attesting his state’s confidence in him, while Senator McAdoo’s long list of outstanding achievements is common knowledge. Governor Murphy tendered them a great reception, is lending them every aid. These men seeking fundamental information on the islands, will, it is hoped, find a good deal of it in these pages. Thanks is due the patrons whose support makes the issue possible. The year rounds out well, though the future is dubious unless America acts wisely. To all, Merry Christmas and Happy New Year. soared in six weeks from around $1.35 Pacific coast to a maximum of SI.75 recorded early in October. This unusual flurry, which developed a highly speculative interest toward the end, was followed by a slight recession in October when the artificial quality of the later advance became apparent, but as this is written the market is again advancing under the influence of the recent typhoons and reported damage in producing areas. So much for perspective. The significant result is that the oil and copra markets actually stand some 20% to 30% higher today than they did in the first quarter, and immediately prior to the imposition of the tax. This outcome is highly gratifying and was quite unanticipated by all but the most opti mistic. The present writer, for example, made the somewhat conservative prediction in a con tribution to the March issue of the Journal that “It would seem premature to talk of destroying producing trees as there are good and sufficient reasons for believing that after the readjustment period, we should regain, in one way and another, mast of the business lost.” Results have far exceeded this fortunate pre diction. Not only has the period of readjust ment been shorter than anticipated, but the positive advance over the immediate pre-tax market, combined with the present favorable outlook, come as a complete surprise to prac tically all observers. With this in mind it would be easy to leap to the superficial conclusion that a oomplete recov ery from the effects of the excise tax has been consummated; that the safest course for us now to follow is that of laissez faire, and that except for momentary scarcity the tax has been a boon rather than a curse. But there is danger lurking in this viewpoint and to accept such a hasty conclusion would be to lay up stores of future trouble. Such a view overlooks the fact that the apparent health of the patient is largely artificial; that the rapid recovery has been made possible solely by an extraordinary chain of events which the future is not likely to duplicate. I refer to that for tuitous turn of the wheels of chance which gave the coconut industry in rapid succession, un precedented European buying, crop restriction, crop destruction and artificial price raising by various governmental agencies, and lastly a drought in the Middle West of devastating severity, which added the final coup de grace to a sequence of events quite without precedent in economic history. All of these extraordinary influences were so nicely timed and synchronised that even admit ting that one or more of them might have occur red normally and hence might happen again, it taxes the imagination to conceive of this precise interplay of forces acting twice in the same manner. The writer considers it a truism to say that the situation has been saved by this combination of circumstances, and even if we regard the heavy European buying as something which was more or less normal in view of the circumstances, then we owe our deliverance to the happy co incidence of the drought with the programs of the AAA and NRA. To illustrate graphically how rising prices of fats and oils in America have nullified the effects of the $.03 per pound excise tax, one has only to study the accompanying table of compa rative prices. It will be seen that while copra and coconut oil have risen only moderately since the first of the year, the price of lard and cottonseed oil has doubled ana tallow has ad vanced more than 60%. It becomes perfectly apparent that the excise tax on coconut oil has been absorbed and made palatable by this general price advance of do mestic fats and oils and that to this fact alone do we owe the comparatively favorable position of the industry today. Further statistics only serve to confirm these conclusions. In 1933, with a tremendous copra crop, our oil exports to the U.S.A, were 158,554 metric tons. In the first 11 months of 1934 our exports were 133,029 metric tons, or a total of approximately 145,000 tons for the year, providing December shipments continue at the same rate. This slight decline in 1934 exports conforms very closely to the smaller copra crop of 1934 and indicates that despite the excise tax we have exported proportionately as much oil as in 1933, when the relative size of the copra crop is given consideration. In other words, thanks to the rigors of American weather plus the vagaries of American politics, our coconut oil exports to the U.S.A, have been just about normal in spite of the excise tax. So far so good and no particular damage has been done—but how long can it last? The present condition being largely artificial who can place any confidence in its permanence? Prices will not be artificially maintained forever. Already there is talk of abandoning the price raising policy, sooner or later prices will be left to natural laws. The American buyer will then quickly discover that coconut oil plus the tax will once more cost more _ than domestic fats and oils, we will begin to feel the effects of the tax. Up to now we have been just plain lucky. During the short time the tax has been in force we have held all the cards. Normal times and normal prices would make this abundantly clear. We would then see a substantial reduc tion in coconut oil exports to America and the Chester Grays woula doubtless then feel far happier than they do today. The completely artificial nature of the present situation is not without its humorous aspects. We have the spectacle of America trying frantic ally to shut out Philippine oil and copra with the excise tax, and simultaneously reaching out, all over the world, for; substitutes for her own 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 fats and oils whose prices she struggles to main-' tain. Thus we see tallow front Australia, the Argentine and even Europe streaming into Amer ica under the relatively low duty of Yi cent, per pound. Tax or no tax, American buyers still go on grimly about the business of meeting the natural deficiency of the American market in soapmaking fats and oils—a deficiency which the Chester Grays seem blissfully unaware of when they speak of coconut oil competition. We see coconut oil free fatty acids flowing to America from Europe under a duty of only 25% ad valorem (about 1the excise tax) and these same fatty acids are made in large part, from Philippine copra, so that when our exports of copra to America fell from 208,493 metric tons in 1933, to only 120,194 metric tons for the first 10 months of 1934, our European exports simultaneously jumped from 88,663 metric tons in 1933 to 138,620 metric tons for the first 10 months of 1934, and the copra which America is vainly trying to keep out by the excise tax, now moves to Europe where some of it replaces the tallow which Euro[>e now sells America — and some goes into fatty acids for the American market. Stated simply, the United States by penal izing copra imports has caused the rest, of the world to buy more of our copra, while simul taneously the rest of the world sells the United States tallow, fatty acids and other substitutes which are cheaper, duty included, than copra plus the tax. It is a sort of merry-go-round, with old chan nels of flow being replaced bv new ones—the direct result of the tax. Most of this change in the normal flow is unnatural and expensive, especially to the people of the United States, but such is the house-t hat -tax-built, and if it is difficult to discern whether it is the dog that wags the tail or the tail that wags the dog, let the Chester Grays remember this when next they set out to short-circuit one of the main arteries of international commerce. That the great losers under the excise tax are the American people scarcely need be stated. With a deficiency of soap making fats the Amer ican people are nevertheless being taxed S.03 per pound on every pound of coconut oil which they consume, and while millions of Americans are on public relief roles, this tax money is refunded to the Philippine government. This is surely the cream of the jest! Let us not delude ourselves by our transient and accidental good fortune. The excise tax on coconut oil is a thoroughly unscientific meas ure which suffers from all the basic defects of indirect taxes everywhere. Furthermore it means nothing but loss to all concerned. It means direct loss to the American people; con fusion and loss to international trade, and in evitably, under more normal conditions, loss and uncertainty to the coconut industry of the Philippines. No effort should be spared in working for the repeal of the excise tax at the earliest possible moment. Federal Offices Branch ... (Continued from page l.i) Now your planter, Twigg, Conway and Trought satisfied, is getting close to his benefit money—1 .< part of it. It has been determined how much cane the planter shall destroy. In solemn writing he has agreed to destroy it. Everything in order, he gets a check in dollars for 1/3 of his estimateci benefit payment. Later he takes steps actually to destroy the cane. This is duly certified, the honest planter gets 1 3 more of his benefit pay ment. Then he does destroy the cane, he and 29,999 other planters cut the Philippine sugar crop to what the AAAdministration, in formal agreement with the Philippine government practically tantamount to treaty, stipulates it must be. .'JI these 30,000 planters therefore, having complied with the first important Federal law applied to the Philippines in 32 years, get the final 1/3 of their respective benefit payments. They will have agreed, among all other things t > which they will have agreed, to plant no more cane for the 1935-1936 season than they will be entitled to mill; and to plant no other basic food crop on land thus taken out of cultivation save for consumption on the farm. As the Philip pines Free Press remarks, “Of course, the planter doesn't have to sign the contract. But he won't get any benefit payment if he doesn’t.’’ Though there was option in the law, as above noted, last, season’s production was finally made the basis of proposed payments, because what it was is known. The braintlusters themselves finally sought the easiest way, probably the one practical way. Early optimism evidenced in assurances that disbursements would be made in October, certainly not later than November, or (as the congress with which Colonel Henry L. Stimson, as secretary of state, struggled, would have had the marines out of the Nicaraguan jungle by Christmas) assuredly in December, dissolved into cautious silence as the difficulties of accurate inventories and auditing involving 30,000 planters proceeded. Yet the prospect steadily nears when the 1*28,000,000 benefit payments, divided like all Gaul into 3 parts, will reach planters and their more avid and alert creditors. Not an hour’s delay is chargeable to the least dalliance on the part of anyone. It may be surmised that AAAd ministration is the biggest, most exacting single task devolving upon the governor general; yet from the outset he has shouldered it well, and he it is who got the liberal allotment to the Philippines of 1,015,000 short tons a year in the American market. Now the collecting end of this business is reached, the I'nited States Internal Revenue, as the sign on the door reads, 4th‘floor of the Ileacock building. . 'Phis office has a longer prospect ahead of it than the others, unless the JonesCostigan act should be extended or something similar should arise in its place. The office is the Manila division of the Baltimore office of the United States internal revenue bureau. It is being established by Gilbert E. Youmans, supervisor, 3rd supervisory district, of the internal revenue bureau—of which, by the way, Guy 'I'. Helvering is the head, titled the commissioner. Wilson E. Wells is chief of the Manila division office, the acting chief has been Charles 'I'. Smith. Joseph M. Youmans, a deputy collector, assists-his father in the business of assessing and collecting the sugar tax. You mans senior surmises that with the office well established he himself will be recalled to duty in America. The law under which collections are made extends to June 12, 1937. It may be discon Superior Quality Dependable Service RING CP 2-18-C I the next time you need a Rubber Stamp or Dry Seal and our Salesman will call t tt 1VL Sales Office: 2nd Floor IO1 E SCO Ifa tinued earlier by presidential action. It-went into nominal effect here September 12. One tax it defines is a so-called floor tax. Another is the processing tax collected at mills. The other, a compensating tax on the sugar (and sugar portion of), syrup and edible mohisses, and content of these, in foodstuffs of foreign manufacture imported into the Philippines. Merchants, there are 92,000 of them in the islands, had 30 days, or until October 12, in which to dispose of sugar, syrups and edible molasses. After that, such stocks as they had on the floor were subject to the tax of 1 /2 cent a lb., basis of sugar content. Stocks of the great majority are notoriously too insignificant to concern the Federal internal revenue bureau; from the others inventories are required and collections are being made. At the customs houses, the taxable foreign foodstuffs are being cleared under bond for the tax to be paid. The service is not manned with chemists to deter mine what the tax should be, the science bureau has not met the situation, and therefore the Manila division is preparing to set up the neces sary instruments and make its own analyses. At the mills, the vernacularly known sugar centrals, some 40 odd, the tax is readily enough ascertained and collected. Such is a rough outline of the Federal set-up effected in the Philippines to administer the sugar allotment law and pay Philippine planters for abiding by it—the money finally reimbursable to the Federal treasury from the tax on manu facturing, mainly taken from the planters them selves and their partners, the mills. Aside from the men sent out by Washington, many others arc being employed, both Filipinos and Amer icans. Out of the 1*28,000,000, administrative costs will be paid. Incidental to Investigator Conway’s detail here will be his examination of all Federal disbursing officers. Certain pay ments other than those of the sugar benefits also devolve upon Disburser Trought. They include payments on behalf of the Veterans bureau (other than pensions), the payroll, hos pitalization charges, and the like. The general benefit of this Federal activity in the Philippines is not to be underrated. But it is bound with a good deal of red tape that probably can't be cut by a mere gesture toward ftlalacanan: how smoothly or awkwardly it will work, therefore, which in any case will not be the fault of its personnel, remains to be prov ed. In a sense it is introductory of the regime of the commonwealth and the American high commissioner. R u I B B E R s T A M P S IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 Steel Construction in the Philippines S. Garmezy, C. E. Chief Engineer, Atlantic, Gulf & Pacific Co. of Manila Steel construction in the Philippines has progressed since the early days of American occupation, the same as other industries here, but there is still room for a great deal of improvement. With this revolving fund the most been completed or arc under conUntil six years ago when Senator Arranz’s bill, “An Act to create a revolving fund of five million pesos for the construc tion of permanent bridges in the Philippines’’ was passed, bridges throughout the Islands were constructed in the ordinary course of events, but for the past six years a great many bridges have been built. All bridges constructed under this act arc toll bridges. Tolls will be collected on these bridges until the total cost of construction with interest at 4% has been collected, important bridges have struction at the pres ent time. Years ago the highway bridges de signed by the Bureau of Public Works had roadways fourteen feet wide, using wooden floors. Later they changed the width to sixteen feet and then eigh teen feet, using rein forced concrete floors. Recently the Bureau wisely redesigned all the steel high way bridges, making the roadway • of re inforced concrete and twenty feet wide. The longest single steel highway span designed by the Bu reau of Public Works previous to 1930 was one hundred sixty feet. In 1930 the Bureau of Public , Works designed the Abra Bridge, which consists of four two hundred forty foot spans with a twenty foot reinforced concrete roadway. This bridge was completed in 1933. As far as the writer knows, the longest single highway span actually.built in the Philippines is one of the spans of the Ayala Bridge in Manila which is two hundred forty-two feet long. The longest single railroad span actually built here is the Alicante Bridge for the Isabela Sugar Central in Occidental Negros. The foundations for this bridge were designed and constructed by Mr. Harry Shoe maker who \yas manager of the central at the time and the steel was designed, fabricated and erected by the Atlantic, Gulf & Pacific Company of Manila. Many simple bridges, arches, draw and lift bridges have been built in the Philippines but we hope that some day in the future the Islands will have a bridge of first magnitude. This could have been accomplished by building; a suspension bridge over the Abra River instead of four simple spans but the latter type was more economical. Regarding steel construction in buildings, it is a known fact that where loads are great and spans long, steel has to be used in preference to wood or reinforced concrete. Steel, when properly constructed and painted every two or three years, will last an indefinitely long time. In case a building has to be extended, it can be very quickly and economically done if built of steel. Steel is the best material to use when a building is to withstand earthquakes or excessive winds. All the modern sugar centrals in the Philippines have steel frame buildings, and many of the sugar, hemp and copra bodegas have been built of steel. Steel is used for other miscel'.aneous uses in the Philip pines, such as smokestacks, lighters, tanks and towers. Most of the sugar centrals have self-supporting steel smokestacks, but the other factories usually use guyed steel smokestacks. Steel lighters are used here for loading and unloading fuel oil, gasoline, kerosene, coconut oil and sugar. The various oil and molasses companies have large steel storage tanks thruout the Islands. You also find various tanks on towers used for water supply. Some of the tanks have flat, bottoms but most of them are the standard hemispher ical bottom tanks on towers. The gas holders for Manila Gas Corporation are also made of steel. A few years ago we had a building boom in Manila. Many office build ings, hotels, apart ment houses and theaters were built. The owners who have been constructing these buildings and the general public are gradually and slowly realizing that a steei frame structure, even though it may cost a trifle more at first, is more economical and has advantages on account of the following factors: 1. Due to the smaller sizes of beams and columns necessary, the loads on the foundations are smaller, thus saving a great deal on the construction of the foundations. 2. Longer spans can be used, thus diminishing the num ber of columns in a building and saving valuable space. 3. The steel columns are much smaller in size, even though they are fire-proofed with concrete, which saves valuable space, especially in buildings on the Escolta where floor area is very expensive. 4. Where buildings have basements which are used for garages, the fewer and smaller the columns the more room there is for automobiles. 5. A steel frame building can be built much faster, thus saving on the interest on the investment and receiving an income sooner. 6. A future extension to a steel frame building can^be more readily an economically made. 7. A steel frame building can be torn down and erected again very easily at another site. (Please turn to page 29) 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Telephones: 2-41-42 and 2-41-43 Engineering Equipment and Supply Co. (INCORPORATED) Cable Address: “RAPAK” P. O. Box 2128 MINING AND MILLING SUPPLIES Mining Drill Steel Air Drill Hose Mining Picks Mining Shovels Dynamite Blasting Supplies Axes, Saws Leather Belting Rubber BeltingMechanical Packings Steel Grinding Balls Merrillite Zinc Dust Cyanide Paint Mill Erection Contractors MINING AND MILLING MA CHINERY Diesel Engines Air Compressors Rock Crushers Air Hoists Orc Cars Conveyors, Elevators Ball Mills Classifiers Cyanide Tanks Filters Pumps Engineering Equipment and Supply Company Engineers—Contractors—Machinery—Mechanical Supplies Corner 13th & Atlanta Sts.—Port Area, Manila. Exquisitely Polished and Colored I Terrazzo Furniture for Porch or Lawn Also: PIPES, TUBES, HOLLOW BLOCKS, ROOF AND FLOOR TILES, TUBULAR BODIES, SPUNCRETE DECORATIVE ORNAMENTS. TERRAZZO, TRAVERTINE, TERRACOTTA, MOSAICS, STUCCO, IMITATION MARBLE. OFFICE: 702 Heacock Bldg. Tel. 2-16-80 Philippine Spuncrete Inc. MANILA, P. I. FACTORY: Espana Extension Tel. 6-88-59 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Machinery and the Philippine Commonwealth The launching of the new Philippine common wealth is one of the major world events scheduled for the year 1935. In anticipation of that dramatic scene the resources of the whole people are marshalled in constructive social and eco nomic planning. Business leaders are concerned with market trends and opportunities, law makers are framing a constitution, military officers are engrossed in plans for national defense, and patriotic citizens everywhere are seriously contemplating the resultant effects on the entire national economy which the new order will inevitably produce. For 25 years the domestic and foreign trade of the islands has been fashioned and controlled, directly or indirectly by the Philippine tariff act passed by the United States Congress in 1909, and subsequently amended by the tariff acts of 1913, 1922, 1930, and by several acts of the Philippine legislature itself. This important piece of legislation has pro vided a free market in the United States for the sugar, hemp, copra, tobacco and other tropical products of the islands, and it has maintained a steady flow of American dollars to these shores which have accounted for the economic security of the Filipino people for over a quarter of a century. But with the imminent approach of a new order of governmental responsibility, a change in the former trade relationship with the United States is inevitable and a new tariff program must be laid down. It should be designed to accomplish three things: a continuation of the present free trade status between the islands and the United States on a reciprocal basis; a pro tection of home industries so far as these supply local requirements only, and a maintenance of that standard of living that 34 years of American cooperation has produced. Of these basic purposes, the first is probably the most important in its immediate and practical bearing on the national economy, for a modicum of experience would indicate that trade between any 2 markets of the world can be successful only in proportion as it is reciprocal in nature and moves freely between areas of demand and production. The Filipino people believe that the United States can profitably absorb through favorable channels of trade, many products which are indigenous to these islands or can be economically produced here, and that in return, a comparative ly non-competitive market for certain American goods may be established here by tariff rates on other foreign products sufficiently high to equalize differences in transportation, exchange rates, costs of production or trading margins. Among the many classes of manufactured goods now imported here, none is more important to the daily life of the people as a whole than machinery, because it primarily accounts for the standard of living among those bv whom it is intensively used. This fact has been fully recognized for many years. The people have long since discovered that rice, sugar and oil mills are producers of national prosperity and that machines that eliminate slow and laborious labor or provide the delights of life, are synony-. mous with more pleasant modes of life. For some years, therefore, the Philippines have been a good market .for the sale of machinery on a scale commensurate with the wealth of the nation and all the present economic planning contemplates the continued and probably in creasing use of modern mechanical equipment. To the American exporter of machinery a few statistics taken from reliable sources may be of interest, as well as some brief comments on a few special lines which find ready sale here. Sugar Mill Equipment. Between the years 1918 and 1923 the majority of the 45 centrifugal sugar centrals now opera!ing in the Philippines were constructed. That was an era of very extensive machinery buying and although the erection of new centrals in the im mediate future is extremely unlikely, neverthe less, there will be, for some years to come, a demand for replacement parts and equipment such as motors, pumps, conveyor chain, loco motive parts, mill supplies and the usual season able requirements of filter cloth, sugar bags, twine and other items. Electrical Equipment. The demand for electricity in all parts of the islands will continue to grow. Besides the STEEL MACHINERY IMPORTS 1931 19.' 1*87.292 77,154 35,551 71,250 271,757 5,929 237,543 24.623 149,502 77.815 727,220 1,699.051 2,118,392 290,983 898,571 Adding Machines Cr P52.056 CiRnrcttc Mcliry Mchry 97.003 Engines, Motors and I.c motive Parts Motors Nonelectric Stationary and Marine (Parts) Tractors Boilers and Tubes Hoisting Mchry I.uundr.v Mchry Metal Wkg. Mchry Oil Expressing Mchry Pit Refrigerating Mchry (Parts) Woodworking Mchry Xi Needles .Stoves and Ranges 25,034 102 283,014 57.327 7.740 225,099 27,853 6,981 14S.411 32! 7,010,839 ,8,321 25.463 increase in the number of central stations serving various towns, many small generating units will be sold to provide the necessary current for lights, radio reception and refrigeration in individual homes and on private estates. Motor Vehicles As highways are constructed and improved, motor transportation will undoubtedly increase in accordance with a well known principle, and this in turn will improve the efficiency and ca pacity of the producer sending his wares to a distant market. Agricultural Equipment The daily example of mechanical farming implements, such as the tractor running on locally produced alcohol, the disc plow and harrow, the sub-soiler and the cultivator have fully demonstrated the practical savings that may be effected by these tools in the raising of sugar cane. And even if the curtailment of the sugar crop will prevent a continued increase in the use of these larger implements, yet there will be a demand for such machines as small tractors, plows, rice-hullers, com shellers, incubators and similar agricultural tools. Small Engines This class of labor saving device is making an immediate appeal to the small user of power who employs it to drive his electric generator, rice mill, com sheller or portable sawmill. Run ning on cheap kerosene or perhaps on locally produced alconol, it is filling a decided need in the life of the people where central power is as yet unavailable. Miscella neo us Mach inery Under this classification come the larger individual installations such as diesel engines driving air compressors or generators at the power houses of the gold mines; crushers, motors, ball mills, thickene.'s, classifiers, tanks, tables and the many other pieces of apparatus in the milling plants at the mining enterprises; the steam locomotives for the public railway systems, and the lumber mills; the plantation locomotives on the lines of the sugar centrals; the saw mill equipment in the lumber camps, the marine engines large and small, in the fishing boats and the interisland steamers; the street lighting systems in many towns throughout the archi pelago; the new air conditioning plants for offices and theatres—all these and many more types and kinds of American made machinery are possibilities in this market under conditions of protection against the lower priced machines of the European manufacture. For it must be observed that if selling prices of American and European machinery bear the same relative proportion to the costs of produc tion in each case, then the European machine in which labor is the principal item of cost, will in general undersell the American product—by reason of the lower wages paid to the European workman. The tariff, therefore, on the European machine brought into this market should be sufficient at least to overcome that basic difference in cost which must of necessity determine the selling price. During the year 1932 there were imported into the Philippines iron and steel and manu factures thereof valued at 1*19,977,574 together with electrical machinery and apparatus worth 1*4,548,753, or a total of 1*24,526,327, of which 1’7,010,839 represented the value of the total machinery, machines and equipment generally referred to above. Such is a brief description of the place occupied by machinery in the pres ent Philippine economic order. It indicates the importance of this item in any tariff revision which seeks by reciprocity to establish a pro tected market here for American goods in ex change for the favorable entry of Philippine products into the ports of the United States and ner possessions. 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Tel. 2-20-42 P. 0. Box 1459 ! Cable Address: “BOXAS” Manila I ROXAS Y CIA. i General Managers Central Azucarera Don Pedro | Nasugbu, Batangas I Haciendas: Hacienda de Nasugbu Hacienda Polico Hacienda Caylaway Hacienda Tumalim Hacienda Banilad General Merchants Exporters and Sugar Manufacturers Sub-Agents for ' Fire, Marine & Accident Insurance Companies I 719 Echague Manila, P. I. | Big Nights TOM’S ORIENTAL GRILL Christmas EveChristmas NightNew Year’s Eve— —and every night Special Entertainment Tom’s Special Foods —and an especially good time—always Have you experienced one of TOM'S Sunday Morning BREAKFAST DANCES? 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Mabini • Tel. 5-72-94 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 Philippine Economic Conditions—October, 1934 “24 hours a day I give fresh milk!” is the sure sequel to a sleepless night. No concentration; no control over one’s faculties; general depression; painful discontent. If you want to work well you must have your nerves in order; your nerves will be raw if you do not sleep well. Your salvation lies in Bromural Tablets ■■Knoii". Their world-wide fame is founded on their rapid nerve-soothing action which restores sound sleep thus enabling you to utilise your full working capacity. Vouched for as harm less and not habit-forming. Obtainable from all the leading chemists. Tubes of 20 tablets. Knoll A.-G., Chemical Works, Ludwigshafen-on-Rhine. Monobromysovalerylcarbamidat .03 gr. Just think of it . . . fresh milk whenever you want it! Milk that keeps perfectly . . . with out refrigeration ... in any climate! You can have that kind of milk. It is called Klim. Klim is pure, fresh milk—with all the flavor, all the nourishment of fresh liquid milk—only it is powdered. You can use Klim dry for cooking. You can use it in beverages. You can mix it with water for drinking. Get Klim today. If your grocer cannot supply you, send us his name and address GETZ BROS. & CO. 509 de los Reyes Bldft. Manila, P. 1. THE MILK THAT KEEPS IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 For those who prize perfection in a musical instrument, every acoustic and engineering advantage known to the art has been united in one masterpiece. This deluxe radiophonograph is designed exclusively for those to whom fine music is a vital part of living. THE FINEST OF RADIO... ■ THE FINEST OF PHONOGRAPHS 1 A limited number of these fine musical in struments will be made during 1934. No I effort has been spared to perfect this instru- ' ment, which climaxes the development of the radio and phonograph. The automatic | phonograph, with remarkable fidelity, ; provides hours of matchless entertainment ' —entertainment which you yourself may I choose at will. The radio gives the utmost | enjoyment from broadcast programs. The cabinet, of Classical English design, is con- j structed of rare, imported woods, befitting a ] masterpiece. A beautiful, brilliant, exclusive home entertainer. Distributors | Metropolitan Radio Corporation Metropolitan Bldg. | Manila, P. I. ! 2 You can never forget the delightful clean taste of Astring-o-sol. It leaves your mouth cool and refreshed— with all trace of smoking or eating completely removed. That stale bad taste that you wake up with com- , pletely disappears with just a few gargles of Astring-o-sol diluted as you use it. See your pharmacist today and get a bottle of— IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 TEXACO MOTOR J $() Can You Spare Five Minutes, Today? Stop at a TEXACO station, have the oil in your crankcase checked and examined for purity and body. / If the oil is thin the attendant will drain it off and refill your crankcase with fresh TEXACO Golden Motor Oil. Clean, clear, pure and full bodied, TEXACO will lubricate efficiently at any speed, at any temperature. It pays to insist on TEXACO TE co THE TEXAS COMPANY (Philippine Islands) Incorporated I ion OF COMMERCE JOURNAL IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Four Merchants’ Opinions One merchant says: .. It is difficult to tell what we have learned from our experiences except that, speaking for our organization, we have all learned to be very humble.” An other merchant, as well known, says: “Success is going to be measured by our consistent everyday business, with balanced stocks in wanted staples and styles that are in demand; in the continued promotion of those goods.” A third says: “...the promotion of timely, wanted mer chandise is essential to our continued profit making; in fact, to our very existence.” A fourth says: “...and I cannot too strongly repeat that we in our store are firmly of the opinion that not one peso should be spent on the advertising of goods not in demand —and that not one peso less than what is required to do a thorough job should be spent on the advertising of goods in demand.” When you place your advertising in the MANILA DAILY BULLETIN you are making a direct appeal to the buying power of Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 Newsprint Market . . . (Continued from page 8) in the schools, and it would seem that oppor tunity to make the language dominant in the world at large the national language of the Philippines would not be foregone by a prudent government. Nevertheless, pressure to nation alize one of the local languages persists; the teaching of English grammar seems to be a ready key to difficulties with Spanish, and the commonwealth constitution proposes that both English and Spanish be official languages in the islands. But continuing prosperity in the Philippines is more basic to the newsprint market than the language that may finally dominate the press here. Equally important is the future freedom of the press. This is proclaimed, of course, in the constitution. Under the existing low tariff of 10% ad valorem, America supplies the Philippines only a portion of their newsprint; where paper is bought depends a good deal on the factor of exchange. If the tariff were upped but a little, unglazed newsprint would all come to the islands from the United States. Because the market is bound to grow, if the future Philippines succeed, this would be a very practical trade balancing step. Total figures are not now im pressive, but newspaper reading is bound to receive a material fillip from the founding of the commonwealth—if effected without economic impoverishment of the islands—and if the schools keep on the demand should grow steadily, per haps rapidly. The schools are accommodated by the education bureau with a weekly news bulletin, the habit of newspaper reading is inculcated in students, whose knowledge of current events is tested as a part of the day's work. The value of unprinted paper imported last year into the Philippines was 1’3,636,786; of the portion from t.ie United States, 1’2,386,161 — about 30% came from foreign sources. The value of newsprint of all kinds imported was 1*1,161,099; of the portion from the United States, P726.748—newsprint to the value of more than 1’400,000 came from foreign sources. Some of the weeklies, including the very widely circulating Philippines Free Press (mainly Eng lish, with a Spanish section', circulation around 25,000, use glazed newsprint that it is said America does nob supply; all this paper derives from foreign sources. America's interc-t in the book market here depends more fundamentally on the further popularization of English. Textbooks are in point. Textbooks imported July-December 1900 were valued at 1’10,688; and during last year, 1*859,733. Other books imported July-Decem ber 1900 were valued at 1’72,192; and during last year, 1’461,180. Widespread in the islands is the reading of American books, and there is a very active library movement fostered in the schools, private and public, from universities down. Already a school of young thinkers h:is remarkable facility in English: the vogue of the columnist amusing himself with English has been set in both the Filipino English-lan guage daily newspapers in Manila, and the following the columnists have and their constant reference to the best current stuff in the language demonstrate a discerning, if perhaps small, reading public devoted to great books. This habit is destined to rapid growth if the islands remain prosperous. Tne dominant gentry were not educated to books, care little for them; but below them now, thanks to the public schools, poorer men are maturing who count knowledge herself a fortune: they demand libraries, buy books themselves consistently. On English hinges the important market for professional books from the United States, medical and legal references and many books bearing on the sciences. This signifies a good deal to the paper market at home, and to the printing and publishing industry there. Cellophane fairly envelopes the Philippines, of course, yet the wrapping paper market remains important. Last year’s importations were valued at 1’452,807; from the United States, at 1’361,671. In 1932 paper imports of all kinds were valued at 1’5,529,333; paper imports of all kinds from the United States, at 1*3,891,054. America has about 3/5 of the paper market here, purchases approximating 1’2,000,000 a year are made outside the United States. UNIVERSITY OF THE PHILIPPINES COLLEGE OF AGRICULTURE AGRICULTURAL COLLEGE, LAGUNA, P. I. OFFICE OF THE DEAN December 12, 1934. Mr. Walter Robb Editor, The American Chamber of Commerce Journal P. O. Box 1638 Manila, P. I. Dear Mr. Robb: Allow me to express to you my appreciation for the very complimentary write-up you gave the College of Agriculture in the November issue of your Journal. Just a small matter, but will you permit me to correct an inaccuracy that. I noticed in it? Re garding the pig from Jala-jala, this was intro duced there only about GO years ago, about 18701880, while de La Gironiere was there about 100 years ago, from 1820 to 1839. In an at tempt to trace the origin of ^he Jala-jala pig, I found there in 1932 an old man who claims to have helped unload the original pigs and cara baos, which were imported at the same time, brought -in by another Frenchman who suc ceeded La Gironiere. lie was not able to tell me where the animals came from, but he was positive in his statements about the origin of the once famous Jala-jala pig. La Gironiere relates how he brought horses and cattle to the place, but there is no mention in his writings of his ever bringing in any pigs or carabaos. I wish to thank you once more for the kind words of appreciation for our humble efforts. Yours very sincerely, B. M. Gonzalez, Dean. A Gift of a ■ (VAI SIIIR T is a gift of QUALITY All sizes, materials and styles in stock New Silks and fine imported materials ROYAL SHIRT STORE 521 Rizal Ave. i&opal General Business Data Up to December 1 the agricultural department had for 3 weeks issued a sheet of general business statistics. If publication continues, monthly compilations will appear in the Journal. Follow ing is the compilation of the first 3 issues: Three weeks ending December 1 Corporate Investments (Manila) Corporations (New)— Number................................... 13 Capital paid up..................... P 569,605 Postal Money Order (Manila) Issued— Number................................... Value........................................ Paid— Number................................... Value........................................ P Stock Exchange (Shares sold) Mining— Number................................... Value........................................ 6,195 P 178,757 132,524 191,030 9,062,992 P 2,311,333 Mortgages Registered (Manila) Real Estate— Number................................... Value........................................... I* 49 195,722 Chattel— Number................................... Value........................................ 74 P 345,731 Motor Registration (Manila) Automobiles............................ 124 Trucks...................................... 34 Motorcycles............................. 2 Transfers— Automobiles............................ 145 Trucks...................................... 1<> Motorcycle.............................. 1 Radio Registration (Manila) New......................................... Renewals................................. Monetary Circulation (Net) Gov't only (Average) Weeks ending November 18th A 25th Carabaos— Arrivals................................. Slaughtered......................... On hand.............................. CattleArrivals................................ Slaughtered......................... On hand.............................. Ilogs— Arrivals................................ Slaughtered......................... On hand.......................... 105 279 P84,125,848 429 395 36 1,884 2,051 136 7,983 7,872 360 Poultry and Eggs (Manila Arrivals) Weeks ending November 10th & 17th Chickens.................................. 170,394 Ducks....................................... 2,596 .Turkey..................................... 155 Eggs— Chicken.................................... 1,512,950 Duck........................................ 151,980 Building Construction (Manila) For weeks ending November 24th only Permits issued......................... 35 Approximate value................. P 112,900 Vital Statistics (Manila) Bureau of Health Data Esti mated population (Mid year)........................... 349,290 Births (Reported)................... 1,215 Deaths (Residents, tentative) Marriage licenses issued........ IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Compliments of Benguet Consolidated Mining Company Compliments of Balatoc Mining Company IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 Cotton Piecegoods (Continued from page I)) schedules should be studied and adjusted to meet the conditions now prevailing. The statistics for this year show how the United States have already lost a great, share of the business, but do not indicate the present trend. We in the trade arc convinced that as time goes on Japan's share will continue to grow a nd Aineric is continue to shrink. Jap anese mills continually strive to imitate American cloths and are succeeding with one after another. Every month secs another American cloth elim inated, and with very few exceptions, chiefly novelties and intricate weaves, a very small per centage of the total business, it is generally thought to be only a matter of a very short time when American goods will be eliminated from the market almost entirely. This is the situation in which American mills find themselves in the Philippines. They have done everything within their power to hold the market, but due to conditions not of their own making they find it an impossible task. They have founder sympathetic attitude in the Filipino leaders and public, but are mystified by an appar ently opposite attitude in Washington. They know the New Deal policy with its devaluation, NRA and crop control was not designed to cause them the loss of this market, but never theless it has made it impossible for them to compete here. The only hope seems to lie with Washington. The state department has already concluded a reciprocal treaty with Cuba and others are now in the making with South American- countries. Perhaps when the Phil ippine ebmmonwealth is established some kind of a pjfin can be worked out which will give the mills in the United States some relief in this market. The Electrical Equipment... (Continued from page 1C) Lamps and parts other than bulbs valued at 1*56,050; from the United States alone, 1’29,970; duty on foreign lamps and parts, 1’5,236. Machinery and motors valued at 1*461,975; from the United States alone, P431,5(>5; duty on foreign machinery and motors, 1» 1,056. Radio apparatus and fixtures valued at 1’700,311; from the United States alone, 1’094,00S; duty on foreign radio apparatus and fixtures, 1’994. Refrigerators valued at 1’178,805; from the United States alone, 1’172,617. Telegraph equipment valued at 1’751; from the United States alone, 1’618. Electrical machinery, apparatus and appliances valued at 1’103,727; from the United States alone, 1’98,979; duty on foreign shipments, 1’57S. Insulated wire valued at 1’325,408; from the United States alone, 1’291,479; duty on foreign insulated wire, 1’3,735. Wiring fixtures valued at 1’149,585; from the United States alone, 1’77,184; duty on foreign wiring fixtures, 1’9,295. X-ray machines valued at 1’10,815; from the United States alone, 1’3,048; duty on foreign X-ray machines, 1’2,298. Other therapeutical equipment valued at 1’10,780: from the United States alone, 1’3,757; duty on foreign shipments, 1’1,245. All other electrical wares valued at 1’282,700; from the United States alone, 1’243,577; duty on foreign shipments, 1’4,945. Total electrical goods importations during the year, 1’3,390,581; from the United States alone, 1’2,733,110; from all other countries, 1’057,471. The duties range from 15'J to 30'c and may be precisely determined by items from the data given. Higher duties would, of course, impose no hardship on consumers. Attention to this point at this time is very important, because if Philippine-Amcrican trade gets under way on a permanent and reciprocal basis Amer ica’s purchases will continue expanding the Philippine market for electrical wares of all sorts. The islands have been only fractionally electrified. Giant of current producers, the Manila Electric Company has 84,753 residential customers, 25,213 commercial, 733 power, 50 street-light. Total capacity of its hydro electric plant at Botocan and its steam plant in Manila is 49,500 kilowatts per hour, the peak load running around 24,000 kilowatts per hour and a day’s run averaging approximately 300,000 kilowatt hours. Power is available at rates as low as 'IA/i cen tavos per kilowatt hour, charges hinging on volume of consumption. The flat rate for the 25-candlepower lamp is Pl. 10 per month, 12-hour service. 'I’he base meter rate is 30 centavos. Power rates undercut New York’s, compare with midwestern rates, less favorably with California’s hydroelectric production. No basic factor impedes growth of the elec trical equipment market here except the dubiety about continued liberal trade relations with the United States. This however not only puts the future market in doubt, but puts in risk the whole industry here. MUST IRON?? \MHy,Doc icA>l AFToRD (jolP OR W/ —from Judge KIRIN BEER Sole Importer* TAKAHASHI & CO., INC. OXY-ACETYLENE Welding & Cutting Equipment Philippine Acetylene Go. 281 CALLE CRISTOBAL, PACO MANILA, P. I. GORDON DRY The heart T XT of a good vj 1 IN cocktail I ROBERTSON ! Scotch Whisky I j for | Good Highballs Kuenzle & Streiff IMPORTERS 343 T. Pinpin Tel. 2-39-36 Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 TRAVEL AND SHIP BY TRAIN, BOATS AND TRUCKS MANILA RAILROAD COMPANY All Equipment Modern and-Comfortable \ VISIT BAGUIO AND PAGSANJAN FALLS VIA RAILROAD CONNECTIONS— I To Baguio anti Mining Districts, with Benguet Auto Line i To Ilocos Provinces, with Northern Luzon Transportation, j Inc. To the Visayas and Mindanao, with Compahia Maritinia i To Camarines Norte and Sorsogon, with A. L. Ammen | Transp. Co. SERVICES OFFERED ALL SAFE AND DEPENDABLE PASSENGER TRAINS on regular schedules Buy reduced round tri]) fare FAST EXPRESS TRAINS Always on Time AIR CONDITIONED CAR on Baguio-Ilocos Express Cool—Clean—Quiet—Restful RECREATION CARS for Excursions Dance while traveling EXPRESS SHIPMENTS carried on passenger trains at low rates. FAST FREIGHT TRAINS on regular schedule Reduced rates BUS OF BENGUET AUTO LINE FOR INFORMATION CALL I Lnfo;mnAion ) t«i- -‘-os-ci 1 raflic Dept. ! City Office— ,, 2-31-S3 Paco Station ,, 5-74-65 MANILA RAILROAD COMPANY i OLDEST TRANSPORTATION SERVICE ON LUZON ma.uaWISE & CO., INC.— Philippine Distributors IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 CHARTERED BANK OF ,NADJ* ’ gV.nV AL‘ 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 IlTdo-China, Siam, and Borneo; also in New York. Head Office: 38 Bishopsgate, London, E. C. C. E. Stewart, Manager, C. L TOWNSEND, General Passenger Agent, Smith Tower, Seattle, Washington Steel Construction . . . (Continued from page 17) 8. In earthquake country such as the Philippine^, steel ought to be used be cause it is more adaptable to earthquake stresses and strains. 9. In tall and narrow buildings the wind forces can be more readily taken care of by using a structural steel frame. 10. With the more recently rolled steel sections, the design can be made so that the building is much lighter, and the difference in cost between a structural steel frame and a reinforced concrete frame is small. 11. We know the qualities of steel and no inspection is needed, but unless the owner has a conscientious and careful inspector on the job all the time he does not know the quality of concrete that is placed in the forms. A great deal of money is wasted here in steel building construction on account of the speci fications that it is necessary for architects and engineers to follow. Ever since structural steel began to be used commercially, about 50 years ago, the unit stress of 16,000 pounds per square inch has been used in designs. Since then rolling mill practice has been improved, pro ducing a steel that is more uniform and reliable, and consequently higher unit stresses can be used. In all the large cities of the United States, where steel construction is used much more than here, the Specifications of the American Institute of Steel Construction have been adopted. These specifications allow an increase in unit stresses which reduces the weights and sizes of steel necessary, thus saving a great deal in the cost of a building. The writer himself has been using these specifications for the past few years in all structures that the Atlantic, Gulf and Pacific Company of Manila have built outside of Manila. Let us keep up with the times, even in such a dry subject as steel. Manila will be saved thousands of pesos a year and will get better constructed structures if the above men tioned specifications are adopted. A great saving can be made in tall buildings by using partitions made of cinder concrete, hollow gypsum or tile, thus reducing loads on the structural steel framing and on the founda tions. At present the tallest buildings permitted to be built in Manila are 30 meters or about 100 feet high. In future, if necessary where land will be very valuable, it will be safe enough to allow buildings to be built 150 feet high. Struc tural steel framing in tall buildings is a study in itself. In order to have a proper and economical design made, the architect ought to work in conjunction with a competent structural en gineer. The most efficient and economical manner for an owner to construct a tall building is for him to decide who will be his builder or contractor, architect, engineer, electrician and plumber, and have them all cooperate in making the proper plans, using the architect as the center of the group. It may be interesting to list the buildings in Manila that have complete or partially complete structural steel frames. They are, Bay View Hotel, Ambassador Apartments, Chaco Building, Masonic Temple, Hongkong & Shanghai Bank ing Corporation, Knecdler Building, Metropo litan Theater, Lyric Theater, Ideal Theater. San Miguel Brewery and Garage, JohnsonPickett Rope Works, Aguinaldo Building, Elizalde& Company Office and Factory Buildings, Holy Ghost Church, University of Santo Tomas Gymnasium, Atlantic, Gulf & Pacific Company of Manila Foundry, Earnshaws Docks <& Hono lulu Iron Works Sugar Plant and Boiler Shop, Ilale Residence and Rizal Memorial Field Grand stands. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Calamba Sugar Estate i Manufacturers of: ; i i Sugar—Copra Products | Canlubang, Laguna Philippine Islands Pampanga Sugar Hills Manufacturers of Sugar I Del Carmen, Pampanga Philippine Islands Manila Offices: ; G. de los Reyes Bldg. 6th Floor Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 GOLD MINING REVIEW by Ralph Keeler Mining, Editor Manila Daily Bulletin November: Gold and silver produet ion for the month of November was 1*ISO,()()() better than in October. A steady gain was reported in practically every report, and indications are that the 1934 figures will exceed 1’22,()()(),()()(), a gain of some l’S 000,000 over the 1933 produc tion, and an amount just about equal to the total production during the 14 vears from 1907 to 1920. Balatoc passed the million peso mark, the highest monthly production in its history, with !’l,052,S34, and it seems likely that this figure will be increased steadily for some months to come. The capacity of the mill is being raised gradually, ami Balatoc, already the richest mine in the world as far as the richness of ore for a plant of its size is concerned, is likely to be among the first few in every way. Antamok Goldfields also reported its highest monthly production to date, with an ll'< jump in tonnage milled and a 27' gain in bullion produced for a total of 1’140,3X8.79 shipped from 9,300 tons milled. Ipo had its best gold productic 1’73, (505. Figures f.d N.-vciiibi S35 gold and S.64 silver) are: Antamok Goldfields..................... Baguio Gold... Balatoc Benguet Consolidated................. Benguet Exploration................... Ipo Gold............ Itogon............................................ gold production since July, for November (based on p i Total............................................. 1’2, 164,630.X9 Suyoc Consolidated, near Kilometer 92 on the Baguio-Bontoc road, is expected to start shipping bullion late in December or early in January. Although concentrates have been produced at Suyoc for some months, no refining has been done there as yet. The original plan was to ship concentrates to Tacoma, Washington, for refining, but it is now believed that it will be possible to treat them by cyanidation econo mically. About 1*475,000 in concentrates have been stacked in the mill, and these are being reground and cvaiiided. The mill handles about 150 tons daily, ami is so constructed that a rapid enlargement of capacity will be possible. A refinery has been built, and the first bullion will be poured soon. Benguet Exploration had a record tonnage in November, of 3,6x2 tons of ore milled. Mill construction has been completed and a new diesel recently installed has provided sufficient power reserve. Although the mill was planned for 50 tons a day, it has been handling 137 tons daily. A big tonnage and low mining and milling costs have made it possible to mine low grade ore at a profit. At Gold Wave a 2-1 2 foot vein assaying as high as $25 a ton was reported cut. The main crosscut is now in more than 700 feet, and is expected to cut the big slide lode soon. Viiac construction work is coming along well, the mill building being completed and retaining walls nearly so. Antamok Goldfields has enough ore under development to run the mill ten years, with a possible tonnage of 1,300,000 tons. The 403 vein on the X30 level was cut during the month, uncovering an ore-body some (56 feet wide. The whole vein averages $5.02. Itogon announced a 100'; stock dividend, and raised its capital stock from one to two million pesos, changing its par value from one peso to ten centavos. Suvoc concluded a new stock issue of 990,000 shares, at 30 centavos each. Work on construction and development work at the King Solomon mines is going ahead rapidly, and George M. Icard, president of the company, announced that John Mi.isan and James Golbath, experienced engineers who are well known in the Baguio district, have been engaged to build a mill during 1935. IMPORTERS, EXPORTERS INSURANCE & STEAMSHIP AGENTS MITSUI BUSSAN KAISHA LTD. National City Bank Bldg. Manila, P. I. BRANCHES CEBU - ILOILO - DAVAO Established 1876 Main Offices: Tokyo, Japan ! COMPLETE LINES i i OF j GROCERIES and LIQUORS j STATES FRESH FRUITS and VEGETABLES 1 AT THE Washington Grocery 203-05 Echague St. Manila, P. I. Greetings from Mariano Uy Chaco Sons, Inc. Importers—Ship Chandlers—Hardware—Iron and Steel—Roofing—Paints, Oils and Varnishes UY CHACO BUILDING MANILA Telephones 2-24-78—2-24-79 , Cable Address “UYCHACO” IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 32 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 When Time is Important LUMBER Dy Pac & Co., Inc. Manufacturers and Dealers In all kinds of Philippine Soft and Hardwood 1000-1060 J. Luna, Manila P. O. Box 1239 Cable Address I Tels. 4-95-61—4-95-91 “DYPAC” I I | Branch Washington Lumber Co. Tel. 4-90-88 808-818 J. Luna Manila, P. I. i Quality — Quantity — Service trvavael m aritim a MARITIMA’S fleet of 18 steamers offer the fastest and most complete service to all southern ports. Thousands of people make it a habit to travel and ship via Maritima exclusive ly thus reaching their destinations in the fastest possible time. s s CORREGIDOR—MANILA-ILOILO, 17 HOURS s s PAN AY —MANILA-CEBU, 24 HOURS Make It a Habit to Travel and Ship VIA COMPANIA maritima 109 J. Luna — Manila — Tel. 4-98-26 UROMIL Powerful Urenic Dissolvent Astonishing cures of the most rebellious cases of Rheumatism Arthritis Af/ents for the Philippines BOTICA BOIE Urotropins 0.0 51; Benzoato litico 0.0 28; Sales piperacinicas 0.046; Posfato disodico 0.028; Escipiente cfervescente q. s. para 1 grm. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 33 SHIPPING REVIEW By II. M. Cavender General Agent, The Robert Dollar Co. forty million feet for't Total shipments from the Philippines for the month of OCTOBER amounted to 199,334 tons, slightly less than for the previous month. To Oriental Ports, hemp shipments drop ped off but were still quite heavy. Logs and lumber made a new high record, bringing the total for ten months this year to over fifty million feet against only • entire year 1933. Mo lasses, tobacco, rope, and other items were only fair to slow. To Pacific coast ports, cigars showed a good increase, having got back to normal after settlement, of the strike. Coconut oil was fair, with copra shipments very good amounting to 14,000 tons. Copra meal movement was also very heavy, which we understand is largely due to shortage of cattle feed in the United States brought on by drought conditions. Hemp and lumber shipments were fair. There was again a good sugar movement, amounting to 25,000 tons. To Atlantic coast ports, cigar shipments were normal. Coconut oil, copra, and hemp were good, with lumber again very poor. The Last shipments of sugar for the year reached a total of 72,000 tons. Desiccated coconut showed a nice increase. To European ports, there was a decided falling off in the movement of copra. Copra cake also dropped considerably. Hemp was fair, and lumber improved. From statistics compiled by the Associated Steamship Lines, during the month of OCTO BER 1934 there were exported from the Philip pine Islands the following: Tons Sailings 29,007 with 50 of 47.290 with 21 of 988 with 11 of 1.905 with 14 of 99,209 with 30 of 19,608 with 19 of 1.321 with 12 of A Grand Total of................. 199,334 witli 96 of which which which 105,247 Tons 1,355 were enrried 37,445 were enrried 1,357 were enrried 291 were enrried 00 were enrried were carried in American Sailint/s Amcricnn Bottoms with 10 American Bottoms with 12 American Bottoms with 7 Americnn Bottoms with 9 Amcricnn Bottoms with 15 American Bottoms with 3 Amcricnn Bottoms with 00 Bottoms with 24 S jfflerrp Christmas anb 3 Jiappp jjeto gear ®o all our Jfrienlis anb igatronsi AMERICAN MAIL LINE DOLLAR STEAMSHIP LINES PHILIPPINE INTER.-ISLAND STEAMSHIP CO. ROBERT DOLLAR CO. Agents IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Passenger traffic for the month of OCTOBER showed a healthy increase* over September. Compared with October 1933, first class traffic was the same, while intermediate class showed an increase. The following figures show the number of pas sengers departing from the Philippines during OCTOBER 1934: China and Japan..................... Honolulu.................................... Pacific Coast............................. Europe via America................ Straits Settlements & Dutch East Indies........................... Europe and Mediterranean Ports beyond Colombo........ America via Suez.................... Australia.................................... Round-the-world...................... First Inter- Third 87 1S9 185 3 6 1 57 55 4 4 3 0 23 12 3 5 44 7 4 2 0 5 2 0 1 0 0 Total for October, 1934 . 189 313 200 Total for September, 1934 144 202 186 Total for October, 1933 . 194 266 438 THE RICE INDUSTRY By Percy A. Hill of Mufloz, Nueva Ecija Director, Rice Producer's Association Luxury rice ranges in price from P4.10 to P4.30 a sack of 57 kilos, macans from P3.50 to 1’3.70, in feriors 1*3.45 to P3.55, with the market trend quiet. Palay at primary markets brings from 1*1.35 to Pl.65 per cavan of 44 kilos. Supply until the new crop comes on is ample, and the new crop will move slowly, on account of prices now offer ed, until demand overtakes supply. The 1933-1934 crop was first estimated at 1,364,000 tons, and because rice had substituted export crops over considerable areas, the new crop was estimated at 1,400,000 tons. Later factors, mainly adverse weather, reduce this now by at least 250,000 tons. Disease is a factor in the central Luzon plain, where the crop will be shorter and yield per hectare low. Drought during 3 weeks at heading time reduced estimates in non irrigated districts, and typhoons affected pollenization. While “Total Loss!" cries are mere calls for the Red Cross and other charity from sources unfamiliar with the rice industry, we can say that damage to the extent of 250,000 tons has been done. Against this is the 40,000ton carryover, indicating room for some im portation later in the season. Exports to the United States for brewing purposes will hardly exceed 2,000 tons. While the 1934 rainfall has been 25'j more than that of 1933, precipitation was erratic and the season as a whole unfavorable. The legislative effort to place the precessing of palay in Filipino hands and giving the present set-up 5 years in which to be liquidated is an experiment long tried—and abandoned as an excessive burden on consumers. It is an effort to supply ability by law instead of by initiative. Tried 3 times already, it has always failed. There was no ability to take a burden represent ing some 1*175,000,000 capital, and there was inability to compete; for nothing now stands in the way of Filipinos taking to rice milling and marketing in a large way, but they are not interested in the small margin of profit the industry pays. While the theory back of this effort may be laudable in abstract, probability of taking over sucn a vital business at this stage is fantastic; it is nothing short of wishing wishes. Conditions here are duplicated in Java, Indochina and Siam, where the industrious Chinese do the milling and distributing cheaper and more efficiently than any other people. To change would raise the price to the consumer and lower it to the producer, not to speak of leaning on the Philip pine National Bank or the insular treasury for capital to replace the capital banished from the islands. COPRA AND ITS PRODUCTS By Kenneth B. Day and Leo Schnurmacher All calculations for November were absolutely upset by two factors. The first was the sea men’s strike in Cebu which cut off practically all deliveries to Cebu for a period of around two weeks, and the second was an unusual number of destructive typhoons which passed through the coconut regions north of Cebu and did a tremendous amount of damage, not only to the coconut groves but also to the highways, trans portation facilities, etc. These items combined with a naturally firmer market tendency resulted in higher prices and a sellers’ market for copra and coconut oil for the entire second half of the month. Copra: Contrary to previous expectations, November arrivals were light for the special reasons enumerated above. At the beginning of the month the market was quiet with prices ruling from 1*5.10 to 1*5.20. Shortly before the middle of the month the price advanced slightly, but as soon as the typhoon of November 16th was over a rapid and uncontrolled advance set in which carried prices up to a level of fully 1*6.00 before the end of the month. A large part of this increase was due not so much to the absence of immediate stocks a.1 to the expecta tion that the 1935 copra crop will be severely curtailed. Pacific Coast Mills and European buyers both increased their prices during the month, the Pacific Coast price rising from 1.45 cents to 1.65 cents and the European price from £7 12 6 to £8/12/6. Right through the month, however, the best prices were those paid by the local oil mills, and comparatively little copra was sold for export. This was particularly true in Cebu where sellers were already over committed and had difficulty in filling their shipments without selling very much more copra. The statistics for the month follow: Arrivals—Manila, 343,365 bags and Cebu 127,239 bags. Shipments— Tons Pacific Coast....................................... 15,726 Atlantic Coast.................................... 2,871 Europe................................................. 13,455 China and Japan............................... 782 Total............................................. 32,834 Stocks on Hand in Manila— Tons Beginning of Month..........................’ 41,523 End of Month................................... 32,(196 Stocks on Hand in Cebu— Beginning of Month......................... 23,963 End of Month................................... 15,715 In connection with the above it should be noted that the large shipments to Europe rep resented charters very largely and that stocks of copra in the Islands decreased materially during the month. Coconut Oil: At the opening of November oil could be sold in New York at 2-7/8 cents. Several thousand tons were sold at this figure, but when the typhoon came along the market immediately started up, hesitated for awhile at 3.00 cents and by the end of the month was on a level of 3-3/4 cents. Very little business was done at the latter figure because sellers were holding off, and it was the impression that the market demand was a fairly narrow one and confined mostly to edible oil consumers. Pacific Coast demand likewise improved and oil was sold on the Coast as high as 2-7/8 cents per lb. f.o.b. Local oil prices advanced to 11-1/2 cents per kilo. Statistics for the month follow: Shipments— Tons Pacific Coast....................................... 407 Atlantic Coast.................................... 12,305 Gulf Ports........................................... 2,989 Europe................................................. 662 China................................................... 41 16,404 Stocks on Hand in Manila and Cebu— • Beginning of Month......................... 15,511 End of Month................................... 17,696 Copra Cake and Meal: Buyers for cake to Europe, particularly for November/December shipment, were in evidence throughout the month at prices ranging from S25.00 to $26.50. The local equivalent of these prices was around 1*30.00 to 1*31.00 per metric ton ex warehouse. The Pacific Coast demand for meal revived as considerable business was done for the first quarter of next year at from $21.50 to $22.50 per short ton c.i.f. A little business went to New York. The following statistics cover these i -...... ~ .....e»..... products: Shipments— Tons Pacific Coast....................................... 4,218 Atlantic Coast.................................... 182 Europe................................................. 6,690 China................................................... 51 11,141 Stocks on Hand in Manila and Cebu— Beginning of Month......................... 6,602 End of Month................................... 6,198 At the end of November most local sellers were pretty well covered for the balance of the year and into 1935. Desiccated Coconut: The desiccated co conut business was very fair throughout the month with mills operating at reasonable ca pacity and shipments fully up to normal. The American consumption of desiccated coconut hits increased during 1934, and while prices have not advanced beyond 7-1/2 cents average, the industry is on a very stable though limited basis. General: November went out in a blaze of glory as far as copra and oil prices were con cerned, the prices being far better than they were at the beginning of the month with every thing pointing to even higher levels for De cember. This is undeniably good for the copra producer but the reverse of the picture is that during the first half of next year and probably for the entire year production will be decreased to such an extent that even with higher prices, the producer will not be much if any better off. The price of coconut oil on which copra must depend is limited in all the markets of the world by competition from other fats; thus it is merely a question of how high copra prices can rise and still make it possible for buyers to manufacture and sell oil. There is a definite limit to this and any advance over present prices of more than 1 4 cents during the present year would be rather surprising. It was anticipated that during December arrivals should be good but thereafter available supplies, particularly in the Manila district, are bound to be curtailed until the groves have recovered from the typhoon damage which will mean anything from eight months to two years. REAL ESTATE By P. D. Carman Addition Hills The November sales total was smaller than last year but larger than in November of either 1930, 1931 or 1932. Considering the many days of extremely adverse weather last month the results should be regarded as very satisfactory. Sta. Cruz................... Sampaloc................... Tondo ....................... Binondo..................... San Nicolas............... Ermita....................... Malate....................... Paco........................... Sta. Ana................... Quiapo....................... San Miguel................ Intramuros............... Pandacan ................. Sta. Mesa................. P 1,084,704 P 963,336 Sales City of Manila October November 1934 P 116,096 P 243,983 45,664 213,962 117,030 62,461 220,800 20,000 71,000 183,647 57,976 320 89,565 68,588 21,600 19,532 18,490 18,618 29,530 71,076 144,421 13,733 81,000 10,000 10,800 30,882 — 6,534 December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 Pampanga Bus Company, Inc. Bus service from Manila to all Points North in the Provinces of Bulacan, Pampanga, Bataan, and Tarlac. Busses leave Manila station, corner of Azcarraga and Sto. Cristo Streets, every 15 minutes Careful Drivers-Reliable Service Main Office: Manila Office: San Fernando, Pampanga 324 Kneedler Bldg. » AL1',,Zi,^..,ry('1,, SEASON’S GREETINGS ..' « 0 from the $ Philippine Chinese General % Chamber of Commerce | .V-. Philippine Furniture Factory 348-356 T. Pinpin St. White House Furniture Co. 364 T. Pinpin The National Furniture Store Insular Furniture 375 T. Pinpin 355 T. Pinpin Vicente Gotamco Hnos. La Confianza Furniture 430 Tanduay 372 T. Pinpin Dy Pac & Company, Jnc. Beauty Furniture 1032 J. Luna 240 T. Pinpin IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 Do your friends a favor! Direct them to The Manila Hotel the leading hotel in the Orient where they will have LUXURIOUS COMFORT at MODERATE RATES Provides every Western convenience combined with every Oriental luxury American or European Plan (with or without meals) Management—IT. C. Anderson 1 < CANADIAN PACIFIC WORLD'S GREATEST TRAVEL SYSTEM Foreign Consuls of Manila ARGENTINE REPUBLIC.—J. F. Fernandez, Consul, 109 Juan Luna, Phone 2-20-32. BELGIUM— M. Verlinden, Consul, 50 Escolta, Phone ^2^97nchnU3li ^a2-2^u,> 212 MarquC9 dc c,^Ki>LeK^3c 0 n^-«: » CEBU ILOILO A. T. Kay, Acting Vice-Consul. ZAMBOANGA J. D. McLaren, Acting Vice-Consul. DAVAO D. C. Brown, Acting Vice-Consul. LEGASPI A, K. Maclcod, Acting Vice-Consul. N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 37 LUMBER REVIEW By ARTHUR F. FISCHER Director of Forestry Lumber and timber exports for September increased slightly as compared with the same month last year, the total being 9,806,272 board feet as against 9,537,456 board feet for 1933. Active shipment of round logs to Japan continued. There were during the month under review shipped to that country 7,091,824 board feet, mostly of round logs, as compared with 5,659,12S board feet exported during the same period bust. year. The comparatively large volume of trade in round logs with this market is expected to continue unless some control or restriction is placed by the Philippine Government on the shipment abroad of timber in the round form for the protection of the home industry. China is beginning also to be interested in round logs from the Philip pines. Actual shipments had already been made and proposed orders for delivery in the immediate future are being negotiated. The relatively large lumber and timber exports to China registered during September is a reflec tion of the favorable conditions in this market. With regard to other principal markets, viz.: Great Britain and South Africa, steady trade was maintained duiing the month under review. Shipments to the United States showed a decided slump. The total amount of lumber and timber shipped during September was only 496,080 board feet as compared with 2,939,592 board feet for September, 1933. The amount actually shipped was much below the rate of monthly shipment expected of our exporting mills under the existing quota for the Philip pines. The above situation was, however, solely due to limited demand; with the present equipments and personnel of the local mills there could be no question as to their ability to fill their individual quotas, if demand exists. It seems, however, that in the United States at present there is a'reluctance to buy—dealers are not buying more than their immediate needs, new_building is only about 8% of the normal of 1925—on account of uncertainties, particularly with regard to prices, which have cropped up in connection with the administration of the Lum ber Code. There is as yet no active demand for the lower grades in the local markets. As a consequence thereof, sawmill operators, particularly those dealing only in domestic trade have curtailed their production slightly. The mill production during the month under review aggregated 13,966,287 board feet, as against 14,303,065 board feet for the same month last year, or a decrease of 2%. Despite decreased production, however, there were heavier stocks on hand at the end of September than at the end of the corresponding month last year. TOBACCO REVIEW By P. A. Meyer Alhambra Cigar and Cigarette Mfg. Co. shipments to the Japanese ish monopolies, as follows: Raw Leaf: No transactions of im portance were re ported during the month. Due to continuous stormy weather the port of Aparri was closed to shipping for a considerable length of time and also land transportation was paralyzed so that But little to bacco could be moved. Extensive damages t o seed beds were reported. Exports show large Korean and SpanChina............................... French Indochina........... Hongkong......................... Japan............................... North Atlantic (Europe) Spain................................. Straits Settlements......... United States.................. Ruwleaf, Stripped Tobacco and Scraps Kilos 606 2,038,779 427,808 1,200,600 575 127,041 3,807,811 Cigars: The following number of cigars were shipped to the United States during November 1934............................. 22,738,792 October 1934................................ 19,590,861 September 1934............................... 5,324,874 . .1. •.... V’_____1__ lno'i «>K OAQ P.'H as against during November 1933. 25,208,631 Here's how to get Manilas! Phllipplne 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. MA NILAS made under sanitary conditions will satisfy your taste 1 (Health Bulletin No. 28) Rules and Regulations for the Sanitary Control of the Factories of Tobacco Products. “Section 15. Insanitary Acts.—No person engaged in the handling, preparation, processing, manufacture, or packing of tobacco product or supervising such employment, shall perform, cause, permit, or suffer to be permitted any insanitary act during such employment, nor shall any such person touch or contaminate any tobacco products with filthy hands or permit the same to be brought into contact with the tongue or lips, or use saliva, impure water, or other unwholesome substances as a moist ening agent;....”. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 SENATOR HAYDEN WRITES The following letter has been received: “I deeply appreciate your courtesy in sending me the August and September issues of the Journal which I have read with interest. I am advised by Senator Tydings that the Con gressional Committee will sail from Los Angeles on November 14 to arrive in Manila on De cember 9. “1 expect to meet the members of the Com mittee in Los Angeles for a personal conference before they depart and shall give them these two copies to read on the way over so that they may have the benefit of what you have published. Under the circumstances, I hope that you can send me other copies, including the October issue, to my ofliee in Washington under the inclosed frank. •'It was a pleasure to meet you in Manila and I am sure t hat you will be equally helpful to the Senators and Representatives who are to coine. With kindest personal regards. 1 am "Yours very sincerely, "('ahi. Hayden, "U. S. S." INSURANCE For Every Need and Purpose FIRE WORKMEN’S COMPENSATION AUTOMOBILE Atlas Assurance Co., Ltd. The Employers’ Liability Continental Insurance Co. Assurance Corporation Ltd. Orient Insurance Company General Agent E. E. ELSER, INC. Telephone 2-24-28 • • Kneedler Building MARINE ACCIDENT BAGGAGE PLATE GLASS AN OMISSION Mention should have been made in our No vember issue of the I’aracale Gold Mining Co., of which .Judge George R. Harvey is president and Alfredo Chicote vice-president, other direc tors being Chas. A. McDonough, Rafael Ortigas, Joseph R. Reed. The company has a year's option on 99 claims in the I’aracale district, where its engineer, E. C. Bengzon, assays from 1*5.32 to l’t>7.7S per ton. Capitalized at. Pl,000,000 (10 million shares at 1’0.10 each), the company has been authorized by the insular treasurer to issue 4 J4 million shares, which is understood to approximate the present paid-in capital. Payment for the claims if finally taken over bj- the company is to be 1’550,000, 1’45,000 in cash and the difference in shares at par. Purchase is to be made from Mr. Reed, a fact noticed in our pages some time ago; it is the paid-in capital of the company that should have appeared in our November list. Major Andreas Writes THE YOKOHAMA SPECIE BANK ■ - - = LTD. ■ ■■ -(ESTABLISHED 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital (Paid Up) - - - - 100,000,000.00 Reserve Fund - - - - 124,250,000.00 Undivided Profits - - - - 8,256,944.77 MANILA BRANCH 34 PLAZA CERVANTES, MANILA S. DAZAI Manager Telephone 23759—Manager Telephone 23755—Account 4 Cashier Telephone 23758—Export 4 Import Dept. Telephone 23768—Deposit 4 Remittance Dept. December 14, 1934. Dear Walter:— I am glad if my suggestions were of value to the Journal. I have heard so much of Chester Gray and his misstatements about what our products do to the Farmer. I do not have figures which are not subject to rebuttal or ref utation and such material is worse than merely a flat denial. The point 1 meant to make was merely that this is a time we will never again have. We arc at a crossroad- or let us say “at the time in the affairs of men, which taken at the flood leads on to fortune but which etc." Never again will this opportunity for publicity appear before us. Ever after this will it be behind us—and I hope it will not be something we will have to look back at, "as an opportunity lost." I know the U. 1’. and A. I’, are absolutely Independent—that is why we must not lose this opportunity. Because of that independence, they will fearlessly send forward the material we present to the Mission. Because that Mission is here, the material we present will have an importance it irill never again have. We might send better material later, oodles of it, but the psychological time will have passed—the oppor tunity have been lost. T'his is the time of all time and this fact cannot be ignored. If our material is now presented, it will receive a publicity it will never have a chance to again receive, if at. the same time our memos are handed to the press. Very sincerely, IL R. Andheas. X ’ M A S B O I E ’ S TIPS O N X’M AS GIFTS PIG’N WHISTLE CANDIES The candies for the ones who demand the best. YARDLEY The toiletries with an English accent. X’mas gifts sets for Ladies and Gentlemen. LENTHERIC The beauty aids with the French “cachet”. DAGGETT & RAMSDELL Beauty Maker Kits. HARRIETT, HUBARD AYER Beauty necessities. CAMERAS, LENSES and Supplies for PHOTO amateurs and thousand other lovable things. AT B O I E Means Quality Gifts at Reasonable Prices IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 39 Quality! Best and Finest LADIES’ AND MEN’S HATS AURELIA’S ! “The House of Perfect Style” i 80-84 Real | Walled City, Manila J ■—o HATS & DRESSES Made to Order • Prices to Fit Every Purse ■ Wholesale and Retail I Greetings of the Season CHINA BANKING CORPORATION Manila Authorized Capital - - - PIO,000,000 Paid-up Capital, Surplus and Undivided Profits, over - 7,600,000 Branches at Shanghai and Amoy, China Correspondents in all the Principal Cities of the World Cable Address Tel. 2-27-88 1 “AURELIAHAT” P. O. Box 2861 Manila MANILA SINGAPORE-HONGKONG KOWLOON Poinsettias? On October 15th ult. we had some 13,600 poinsettia plants in good condition. The Typhoon of October 16th destroyed some 6,000 plants. The Typhoon of November 15-17 destroyed and damaged about 3,000 plants. Our remaining plants are flowering very slowly, so we regretfully announce that we shall be unable to distribute poinsettias as usual during the Christmas season. ASSOCIATED OIL COMPANY China Bank Building Manila The spirit of cheer and good will goes hand in hand with a glass of the favorite brew— Its quality, taste, and zest never change the name Saiilfiigud IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1934 RAIL COMMODITY MOVEMENTS By M. D. Royer Traffic Manager, Manila Railroad Company The volume of commodities received in Manila during the month of November 1934, via the Manila Railroad Company are as follows: Rice, Cavanes................... 114,281 Sugar, piculs..................... 31,352 Copra, piculs.................... 128,159 Desiccated Coconuts, cases...’.. 18,437 Tobacco, bales. :............. 1,312 Lumber and Timber, board feet. . 359,000 FREIGHT REVENUE CAR LOADING COMMOO.T.ES eheighVcahs TONNAGE "DecXse' 1034 1933 1931 1933 Cars Tonnage Rice................................................. 549 7.3K5 6,1 58 (6) 1.227 Pnlnv.............................................. 612 744 (102) 1,170 3.009 11,382 (38,373) 1,5.07 11.122 26,61 1 203,452 (9>25) (176,838) 956 7.740 1 1,188 Coconuts 133 1.083 50 '916 1 1 227 355 6,684 (6.329) Tobieco'. I.’. 11 11 159 118 (14) (11?’ Livestock............................... . . 27 (20) (88) Mineral Products.......... ...... 311 387 3,705 5,507 (1,802) Lumber and Timber . 112 169 Other Forest Products.............. 71 (1) ’(51) Manufactures............................... 109 1,911 1,247 13 664 All Others including L.C.I___ 2,(147 3,402 21,725 24,358 (455) (2,633) ToTA!...................................... 6,918 19.788 78,157 309,633 (12.870) (231,476) The freight revenue car loading statistics for e weeks ending December 1, 1934, as compared with the same period r the year 1933 are given below: Note:—Figures in parenthesis Ridicule deerense. SUMMARY Week ending November 3, 1934 . Week ending November 10, 1934. Week ending November 17, 1934. Week ending November 24, 1934. Week ending December 1, 1934... Totai.......................................... 1.111 1,208 913 1.659 2,027 6,918 3,069 3,760 4.151 4.153 19,788 9,450 10,565 9,208 21,330 27,604 7S.157 47,820 58,046 64,584 64,734 74,449 309,633 (1,958) <2,5521 (3,238) (2,494) (2,628) (12,870) (38.370) (47,481) (55.376) (43,404) (46,845) (231.476) 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 P. O. Box 1394 Telephone 22070 J. A. STIVER Attorney-At-Law-Notary Public Certified Public Accountant Administration of Estates Receiverships Investments Collections Income Tax 121 Real, Intramuros Manila, P. I. « 4" CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description Philippines Gold Stores Wholesale and Retail Dealers in American and Australian Refrigerated Produce IVJ STORES AND OFFICES Calle Echague Manila, P. I. 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 The American Chamber of Commerce JOURNAL MONTHLY Philippines........................ P4.00 the year United States................... $2.00 the year Foreign Countries........... $3.00 the year 180 David St. — Tel. 2-11-26 The Earnshaws Docks and Honolulu Iron Works Sugar Machinery Slipways Machine Shops Port Area Manila, P. I. N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Bridge Lamps—Table Lamps Lighting Fixtures We are displaying latest designs in lighting equipment for the home at attractive prices HOT POINT Appliances make wonderful gifts Toaster—Percolators—Waffle Irons Ranges—G-E Refrigerators American Hardware and Plumbing Company Electrical Store 101 Echague LUZON BROKERAGE CO., INC Derham Building Port Area P. O. Box 591 Tel. 2-24-21 ▼ Licensed Customs Brokers Foreign Freight Forwarders Heavy Trucking Contractors Warehousemen IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Life Is Progress— And The World Advances Incessantly! The magnificent panorama which is here depicted is a symbol and a promise. It presents in a graphic form the continued effort of peoples constantly striving for progress, and envisages the perspective of the achievements of modern life, and the rewards it offers to those who struggle: wealth, and might, and comfort. Such is the resume of the conquests of centuries of patient and persevering labor. Such is the spirit of the forthcoming event, 1935 Manila Carnival Commercial 333 Industrial Fair —From February 16 to March 3, inclusive— It is an inventory of the century’s progress ... a reminder that progress is in cessant; and an inspiration to forge ahead, always ahead ... a challenge to the ambition for greater knowledge, to the vision, and to the activity of human genius. The Carnival spurs all activities, gives life to trade, promotes agriculture and industries, and imparts hearty and wholesome recreation to the public— Drive the Depression Away In the Carnival Way! IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL