The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Description: Manila : The Chamber, 1921-1976
52 v.
Issue Date: Volume XVII (No. 9) September 1937
Publisher: The American Chamber of Commerce of the Philippine Islands (Member Chamber of Commerce of the United States)
Year: 1937
Language: English
Subject: Philippines -- Commerce -- Periodicals.; Philippines -- Economic conditions -- Periodicals.
Rights
Place of publication: Manila
extracted text: Clarin Bridge, Misamis Occidental, Mindanao LEADING ARTICLES In this issue of the Journal bring out the commercial importance of the Com monwealth's Mindanao policy and the network of new roads planned and under way in that island, second in size in the archipelago and its gateway to the south. Leading Mining-News Article Causes of the Share Market Depression—and Remedies OTHER FEATURES AND THE USUAL EXPERTS MINING AND COMMERCIAL REVIEWS Canadian Pacific EMPRESS OF JAPAN........................................................ EMPRESS OF CANADA................................................ EMPRESS OF RUSSIA...................... EMPRESS OF ASIA Gross Tonnage 26,000 21,500 16,800 16,900 Displace ment Tonnage 39,000 32,250 25,200 25,350 Maintaining a fortnightly service from the Philippines to the Pacific Coast. When necessary, connection can be made at Honolulu direct to San Francisco or Los Angeles. At Victoria connection can be made for Seattle and points in the U. S. A. At Vancouver the Empresses dock at the new C. P. R. Pier which adjoins the Canadian Pacific Railway Station. Travel East, via the majestic Canadian Rockies, m clean, cool air-conditioned comfort. The latest type of air-conditioned equipment available on the north American Continent. .-Isfe us about the new low first class, intermediate class and coach class fares to points in Canada, and the U. S. A. Canadian Pacific I'elepliones 2-36-56 and 2-36-57 Cable Address ”GACANPAC” 14 David, Manila IKOFLEX You See What You Are Taking Even during exposure, with the Ikoflcx 2-1 4" x 2-1 4" camera, a bril liant image is seen on the ground glass focussing screen at all times which simplifies composition. Eye level finder for fast moving objects (sports) obtainable ih various priced models with lenses from F6.3 to Tessar F35. All models complete with Cases. Write or call for Literature BOTICA BOIE P. O. Box 229, Manila KUENZLE & STREIFF, INC. Main Office: 343 T. Pinpin Tel. No. 2-39-36 MANILA CEBU ILOILO ZAMBOANGA branch Office: 44-48 Isaac Peral Tel. No. 2-17-62 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL men HAMILTON-BROWN for Quality Apparel OFFICE EQUIPMENT WE CAN SUPPLY YOU WITH EVERY THING FROM SAFES TO PENCIL. EACH ITEM IS A LEADER IN ITS CLASS. MONROE Calculator SHOES SHIRTS TIES PAJAMAS ROBES BELTS SUSPENDERS HATS, etc. Suits for Business Sport or Formal visit our Modern Tailoring Department Air Cooled Fitting Rooms Monroe high speed adding calculator, Model M. Features: New floating carriage, spot-proof keyboard, full accumulative dials. Madein three capacities, 12-place, 17-placeand 21-plaee, either hand or electrically operated. “Make no mistakes, get a Monroe.” HEACOCICS OFFICE EQUIPMENT Sales, Display & Service Depts. HEACOCK’S BODEGA IGth & Atlanta Streets, Port Area O. E. SALES DEPT.. . . O. E. SERVICE DEPT. . 2-o5-32 .2-51-94 “There is no other just as good for there is no other made like it.” Finished with DuPont Fine Finishes Duco and Dulux- to make them positively heat resisting and alcohol proof/ That’s RATTANAKKA THE TWENTIETH-CENTURY FURNITURE n™"™ RATTAN PRODUCTS MFC. CO. INC. 95 PANADEROS Sta. Ana, Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 193 7 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 con venience combined with every Oriental luxury Air-conditioned de luxe suites and modem bedrooms and baths in the new wing American Plan Only H. C. (“ANDY”) ANDERSON Managing Director CEBU — DUMAGUETE — ZAMBOANGA — COTABATO — JOLO SAIL THE SULU SEAS' 12-DAY CRUISE NEW M. S. LEGAZPI P90 s. s. kinau dhaoo M. S. ELCANO £ (BUILDING) SAILING EVERY THURSDAY TO EVERETT STEAMSHIP CORP. 223 DASMARINAS — — — — — — MANILA ^//ie ^atw-nal^or'Cu ESTABLISHED 1812 •---------- ■ — ---------Capital (Paid) - U. S. $ 77,500,000.00 Surplus---- ” 43,750,000.00 Undivided Profits ” 12,949,374-52 Total Assets---------$1,893,890,871.77 (as of March 31, 1937) .-------E^^EZZH # =: ------COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building THE SIGN OF ^SiiflETLOT QUALITY IN PRINTING BOOKBINDING ENGRAVING McCullough service means expert supervision and the J intelligent handling of your printing problems. What ever your printing needs may be, you are assured the utmost satisfaction when McCullough does the job. OXY -acet y rkne Welding & Cutting Equipment Philippine Acetylene Co. 281 CALLE CRISTOBAL, PACO MANILA, P. I. McCullough printing co. 101 ESCOLTA — Phone 21801 --- MANILA MAKERS OF RUBBER STAMPS • DRY SEALS • BRASS SIGNS * CHAPAS • ETC. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 Here’s how to get Manila’s! C. A. Bond Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby! List of Distri butors furnished upon re quest to— Philippine Tobacco Agent: 15 Williams Street, New York City Collector of Internal Revenue Manila, P. I. MA NILAS CHARTERED BANK OP 1n?Jad’cah\ntaral,a Capital...........................................................................................£3.000,000 Reserve Fund............................................................................ 3.000,000 Reserve Liability of Proprietors........................................... 3,000,000 MANILA BRANCH established 1872 SUB-BRANCHES AT CEBU, ILOILO AND ZAMBOANGA Every description of banking business transacted. Branches in every important town throughout India, China, Japan, Java, Straits Settlements, Federated Malay States, French Indo China, Siam, and Borneo; also in New York. The Bank's London Office undertakes Executor and Trustee business, and claims recovery of British Income-Tax overpaid, on terms which may be ascertained on application. Head Office: 38 Bishopsgate, London, E. C. C. E. STEWART, Manager, for Best Results — try Street Car Advertising Advertising on the inside of our street cars and buses is read by the thousands who daily use this means of transportation. Advertising on the outside is seen by the thousands in the streets and on the street corners. The ads are repeated every time a car or bus passes, hundreds of times a day. made under sanitary conditions will satisfy your taste! (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;....”. Street car advertising costs very little per thousand circulation—much less than most other forms of advertising. For Rates and Full Particulars — Call Up A. B. TIGH, Advertising Manager Manila Electric Company 134 San Marcelino Telephone 2-19-11 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 NCTICE Unequivocal Guaranty HIVI(\ Special Reserve SCOTCH Take a drink of Weston If one is not enough Call the boy back and Order “the same” again Results are Guaranteed Trans-Pacific Trading Co. 130 T. Pinpin Tel. 2-42-04 MANILA P. O. Box 497 KRUEGER'S first BEER IN KEGLINED CANS AT ALL GROCERS OR DIRECT FROM TfiANS-PACIFIC - TRADING, CO. Good for a Healthy Thirst! RAPID LUXURY LINERS Via Singapore—Colombo—Bombay—Massowah—Suez — Port Said S.S. CONTE ROSSO Leaves MANILA, OCT. 4. for Venice and Trieste M. V. VICTORIA Leaves MANILA. Oct. 25, for Naples and Genoa S.S..CONTE BIANCAMANO Leaves HONGKONG. Nov. 6, for Venice and Trieste Overland to London, Paris, Berlin. Stopover privileges. From Egypt the voyage can be continued by any ol the Italian line Mediterranean services. Through Tickets to the U. S. and Round the World at Reduced Fares. EXPRESS SERVICE via INDIA-EGYPT-ITALY ITALIA LINE—LLOYD TRIESTINO Smith, Bell & Co., Ltd., Agents HONGKONG & SHANGHAI BANK BLDG.. PHONE 2-31-31 When— you buy matches ask for “"IP IN II ILII IP IPII ML MATCIHIESWW any matches bearing the name Philippine Match Co., Ltd. will give you service and protection IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Entered as Second Class Matter May 25, 1921 at the Post Office at Manila, P. I. Just Little Things • On a day when wc thought a good portion of the burden of the world was on our shoulders, F. A. Bowen stepped into the office. His case dwarfed ours into insignificance. Bowen is getting out a directory of Philippine mines and mining companies. He owns a printing house in Shanghai, and there, but for the spanking Japan decided to give China, his direc tory would have been off the press this month. But now he thinks the plant is a total loss, or will be before the fighting at Shanghai stops. Its value is 8400,000 and it represents nineteen years of Bowen’s hard work. Bowen used to keep this plant busy seven days a week, nights too, save seven hours from Sunday midnight to seven Monday morning for cleaning up. Now everything is idle, and all Mrs. Bowen was able to fetch away with her to Manila on the first ship bringing Shanghai refugees here was the copy for the directory, which will now be done at McCullough’s. Let it be trusted that every American loss at Shanghai incident to the warfare there will be made good at the instance of the state depart ment. This is not saying which side is to blame, only that blame there certainly is. • It seems that the advent of desolated refugees from China in Manila provoked an immediate racket in rents. House rents were raised at once. Isn’t this a sorry trade? Where it falls on distracted folk from China constrained to sojourn here, it aggravates their distress; and where it falls on regular residents, it makes them pay for the city’s hospitality. The most damning fact is that when higher rents compel families of low income to move, they find no place to which to go. • Hongkong’s typhoon of September 2 plowed valuable ships ashore, but not American ships. Sailing tiire came for the President Lincoln as the barometer forecast the storm, and the ship sailed, Captain Kohln eistcr just seeing to it that he had maximum engine power to fall back on and that booms w'ere locked and everything battened down tight. The storm came on as scheduled by the gods, but the President Lincoln had sccurricd along at top speed and so eluded the vortex; and the President Lincoln road the storm out at sea unscathed, indeed not badly knocked about at all. By 4 o’clock next morning, passengers opened portholes and put the windscoops in as the ship journeyed on to Manila over smooth seas. It was capital seamanship, capital in all de partments. Strangely, another ship, bound for Singapore, which had trailed the American ship out of Hongkong and hung on her stern for a while, though she could have easily passed and been far out of the harmful force of the storm, turned back for some reason to the questionable shelter of Hongkong harbor, a decision that during the night piled her on the rocks. It seems that American maritime officers still know their Pacific. Back in 1917 the old w'eathcr-beaten U. S. A. T. Thomas did a similar thing; she took it on the nose, but at sea, and kept on going. • The August earthquake w-as of just the right type and intensity to teach Manila how best to build downtown build ings and uptown apartment houses and hotels. Really, the city had just well begun building modernly. The quake wras therefore timely. While the passing of the Heacock building is regrettable, there was insurance and now' Heacock’ssmart retail shop is going as briskly as ever in the old Watsonal block. Other downtown buildings stand, little scathed if scathed at all. The structural-steel type seems indicated for buildings more than two or three stories high, if not for all. For keep in mind the quake that doesn’t swing back and forth, but jolts up and dowm. The steel I-beam and the rivet driven red-hot and beveled by the pneumatic hammer arc superior stress factors in buildings. Concrete is not imprcgnably scientific. any business is just like the foundation of a building which must last . . . PHOTO-ENGRAVING, INC. true to the tradition of service and fairness of that great name, is gradually assuming its rightful place of leadership along this line. ONE TRIAL WILL CONVINCE YOU OF THE TRUTH OF OUR CLAIM IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 V. Fragante Director of Public Works The Islands’ 17,000 Kilometers of Roads • Chiefly built with current tax revenue By V. Fragante Director of Public Works The early history of road and bridge construction in the Philippines is a record of individual effort of the pioneer, the soldier and the priest. As the country developed, a cen trally controlled system of adn inistration of road and bridge work and other public works was necessary, and this led to the organization of a Bureau of Public Works in 1867 to study, construct and maintain public works of all classes throughout the Islands. During the 18th and 19th centuries, a very thorough and complete system of roads was laid out and constructed, at least in part. Both road and bridge work was accomplished largely with compulsory labor, each ablebodied man being required to render some 15 to 40 days’ work every year. Although a comprehensive system of roads and trails with an aggregate length of about 1600 kilometers was laid out and constructed in Luzon and other islands, they were, with few exceptions, in a very bad state of repair and preservation and were simply impassable in the rainy season. They were rough, but available for travel during the dry season to a limited extent, and when the Government was organized in the beginning of the American occupation, about all that was left of the system was the right-of-way and some 2,600 bridges and culverts, mostly of the usual heavy masonry arch type. The general condition of roads and bridges throughout the Islands during the Spanish time was truly de plorable. Transportation was mainly effected in the mountain regions by “cargadores”, and in the lowlands, by pack horses, “sleds” and carabao carts. Natural boundaries generally separated provinces and municipalities and the interchange of products was slow and expensive. Our people were gen erally satisfied to live and die in the narrow confines of their neighborhoods and villages, unless they happened to inhabit the seacoasts and ventured forth on hazardous voyages in their frail boats. Thus the early days of American occupation found the Gov ernment with the great problem of establishing lines of land communication for the development of the country and as a factor for the restoration of law and order. The first law enacted by the Philippine Commission in this direction was one appropriating one million dollars, gold, to be expended for the construction of roads primarily for strategic pur poses, under the direction of the Chief Engineer of the Divi sion of the Philippines. On August 7, 1902, the Commission created the office of Consulting Engineer to that Body, and, on January 8, 1903, it enacted Act No. 584, creating a Bureau of Engineering under the immediate direction of the Con sulting Engineer, with the function, among other things, to take charge of the laying out and construction of roads and bridges and other engineering works. The first major project under the immediate direction of the Commission was the road from Pozorrubio, in the prov ince of Pangasinan, to Baguio, in the province of Benguet, to furnish an easy and convenient passage to the highlands of Benguet, where a sanitarium was under construction for invalid civil servants. ■ In 1905 the Bureau of Engineering was reorganized into the present Bureau of Public Works. This Bureau was orig inally placed under the supervision of the Secretary of Com merce and Police, and was separate and distinct from the office of the Consulting Architect to the Commission. Ever since the inception of civil government in 1903, attempts had been made to systematize the execution of public works throughout the Islands (with the exception of Mindanao and Sulu, which were still under military rule), but it was not until the organization of the Bureau of Public Works that something was definitely done. Lack of funds, however, prevented any effective progress in the matter of road and bridge work. In 1908 a comprehensive study of the highway problem was made showing that at that time some 500 kilometers of roads had been reconstructed or improved, none of which had been built to a fixed standard, nor was subject to systematic main tenance. These roads were built to serve the immediate pressing demand for means of communication be v.een the chief centers of population and trade, and as f i. ds were limited, the old Spanish right-of-way was utilized almost without deviation. During the incumbency of the Honorable Cameron W. Forbes as Secretary of Commerce and Police, he laid down the policy, which we have consistently followed, that mainten ance should take precedence over construction and that temporary construction should be avoided. He insisted on the adoption of the regular system of road maintenance which has since been adhered to. The road program laid down in 1908 was outgrown in 10 years, hence the program of road construction has undergone repeated revisions. The coming of the automobile and finally the motor truck has upset all previous conceptions of con struction standards; has rendered the problem of maintenance a matter of grave concern and has increased the demand for good and better roads and the extension of road kilometerage as fast as our resources would permit. Present figures show that as of December 31, 1936, 16,744 kilometers of first, second and third class roads have already been built and are in use in the Islands. These roads are being maintained and improved following the policy of maintaining routes of communication already established and of con structing new routes as funds will permit until every section of the country is supplied with an outlet for its . population and products; the great undeveloped lands in the country {Please turn to page 11) S;pt ember, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 New and Old Highways in Mindanao • Systematic Building Opens the Wilderness By M. Kasilag and Jose Lozada Respectively, Commissioner and Division Engineer for Mindanao and Sulu M. Kasilag Commissioner for Mindanao and Sulu The Philippine Archipelago is located just north of the equator, and Mindanao Island and the Sulu Group lie between latitude 5° and latitude 10°, which is a belt outside of the typhoon zone, hence Mindanao and Sulu are free from ty phoons. The rainfall is more or less evenly distributed through out the year. These climatic and atmospheric conditions make this region ideal for agriculture. AWhile in Luzon and in the Visayan Islands the production of coconuts and other fruit trees, hemp and other crops suffer considerable decrease for a year or two after a severe typhoon, the production of the same crops is uniform in Mindanao and Sulu throughout the year. Mindanao has enormous natural resources in the form of fertile soil, abundant water power, large mineral deposits and immense tracts of virgin forests of great com mercial value. There are also extensive plateaus of consider able elevation above sea level with pleasant, cool climate and excellently adapted to the cultivation of citrus fruits, avo cados, coffee, pineapples, chinchona, hemp, corn and upland rice. There are large areas of pasture lands suitable for the raising of cattle in large scale. All these natural resources, which have hardly been touched, are of such national impor tance that the Government has for many years been trying various methods to hasten their development. Before the establishment of the Philippine Common wealth on November 15, 1935, the Government followed a policy of developing Mindanao and Sulu by establishing agricultural colonies in the different parts of these islands, otherwise known as the Moro Land. Beginning with the year 1913 the following colonies have been established: Province Bukidnon.. Cotabato.. Cotabato. . Cotabato * . . Cotabato . . Cotabato. . Cotabato . . Cotabato. . Cotabato. . Lanao........ Sulu........... Zamboanga Name of Colony . Mailag..................... .Ladtingan............... Silik......................... . Paidu-Pulangui....... . Maganuy................ . Pagalungan............. Talitay..................... . Gian......................... . Saluinayan.............. . Momungan............. Tawi-Tawi............... . Lam it an................... Total...................................................... A rea in hectares 268 ....... 2,720 ....... 2,708 ....... 1,380 .... 5,180 .... 4,475 .... 1,719 .... 1,272 ....... 2,534 .... 2,345 ....... 8,000 ....... 3,375 35,976 The Government has invested, as per compilation of sta tistics made in 1934, a total sum of P937,492.32. The pres ent population of these colonies is approximately 40,000 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 people. The establishment of the agricultural colonies had two principal purposes: (a) political and (b) economic, (a) Politically, they were organized to show that the Christian homeseckers and the non-Christian people of Mindanao and Sulu can live together as neighbors peacefully and congen ially. This purpose has been fully and successfully attain ed (b) Economically, these colonies were organized to hasten the development and cultivation of the large tracts of fertile agricultural land in Mindanao and Sulu, thereby making this region contribute to the general prosperity of the country with the wealth which said tracts of land are poten tially capable of yielding. Although much has been accom plished along this line, this purpose has been but partially achieved, in view of the difficulties encountered in administer ing the colonies and in the failure of a number of the colonists to comply with the conditions prescribed by the Govern ment. The colonists under the law are given advances, either in kind or in cash, to enable them to start cultavating the lands occupied by them, and beginning with the third year of the cultivation of their lands, they should begin reimbursing the Government by installment for the amounts advanced to them. This is the condition which most of the colonists have failed to comply with. Along with the establishment of agricultural colonies, the Government has also been constructing roads to connect provinces and municipalities and to provide means of commu nication to important agricultural districts. It was observed that wherever roads were opened through unsettled regions, homeseekers from the thickly populated provinces of Luzon and the Visayan islands emigrated in large numbers and occupied lands on both sides of the new roads at their own expense and initiative. Such a manner of settlement of agricultural lands was illustrated with the construction of a road connecting the municipality of Misamis, province of Occidental Misamis, with the municipality of Pagadian, prov ince of Zamboanga. When the location survey of this road was still being made, homeseekers followed the survey party and occupied lands on both sides of the line, and long before the road was actually constructed, large groups of settlers had already established themselves all along the road, at the places known as Tangob, Bolinsong, Cebuano Barracks and Pagadian. These communities have grown so fast that Tangob in Occidental Misamis, and Pagadian in Zamboanga, have been declared regular municipalities, and the others will also be so declared in the course of a few years. In view of the encouraging result of land settlement just mentioned through the construction of roads, the Govern ment has changed its policy of colonization to that of building more roads to traverse important agricultural public lands, and in line with this new policy, the National Assembly reappropriated for road and bridge purposes the unexpended balance of 1 * 990,000.00 from the fund set aside by Act No. 4197 for the establishment of new Agricultural colonies in Mindanao and Sulu. Up to the end of the year 1935 there were in existence in the ten provinces in Mindanao and Sulu 943.6 kilometers of first class roads 757.2 kilometers of second class and 384.8 kilo meters of third class, or a total of 2,085.6 kilometers of auto mobile roads. Last year, when the Commonwealth Govern ment adopted the new policy fo undertaking more extensive construction of roads, and made available for road and bridge purposes, in addition to the current appropriation of Pl 16,500.00, the above-mentioned balance of 1 * 990,000.00 from the colonization fund, a considerable kilometerage of new roads has been constructed. Liberal allotments for con struction purposes were also given last year by the Depart ment of Public Works and Communications from the Gasoline and Motor Vehicle Funds, which together with the aforesaid funds, gave a total of Pl,939,292.00, and at the end of last year said Department declared 1,024.9 kilometers of the Min danao and Sulu roads as first class, 784.1 kilometers as second class and 468.8 kilometers as third class, or a total of 2,277.8 kilometers, which represents an increase of 192.8 kilometers of all classes of roads in existence in Mindanao and Sulu over the total kilometerage at the end of the year 1935. In the Public Works Appropriation Act for the year 1937 the National Assembly set aside the sum of P483,505.00 for various road construction projects in this region, and this sum, together with the allotments released from the Gasoline and Motor Vehicle Funds for construction purposes during the first and second quarters of 1937, amounting to P407,623.00, or a total sum of P891,128.00, has enabled the Bureau of Public Works to continue construction work on the various road projects under way, so that on June 30, 1937, the road kilometcrage in Mindanao and Sulu has been increased to 1,034.2 kilometers of first class roads, 876.1 kilometers of second class and 470.6 kilometers of third class, or a total of 2,380.9 kilometers of roads, representing an increase of 103.1 kilometers of all classes of roads over the total kilometerage in existence on December 31, 1936. In the following table is given a comparative statement of the roads in existence in the different provinces in Mindanao and Sulu during the period from December 31, 1935 to June 30, 1937: jigs?®!®!"-— September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 FIRST CLASS SECOND CLASS THIRD CLASS Table of Roads in Existence in the Provinces in Mindanao and Sulu from December 81, 1935 to June 80, 1.937 Province 1935 June 30 1937 decrease 1935 June 30 1937 deHse J 1935 one 30 1937 Increase Agusan. . 68 0 68 0 ___ 28.1 36 2 8.1 4.8 11.2 6.4 Bukidnon 99.7 120.9 21.2 25.9 23.2 (2.7) 55.7 50.8 (4.9) Cotabato 86.2 86.2 89.1 131.0 41 9 56.2 81.6 25.4 Davao. . 63 9 81 3 17.4 74.1 93.1 19 0 21.8 55.2 33.4 Lanao. . 52.8 53.4 .6 129 9 141.4 11.5 26 3 29 4 3.1 Occ. Misa101.7 125.7 24 0 19 6 9.6 (10 0) 19.4 43.0 23.6 Or. Misa mis. ... 163.2 163.2 133.0 154.4 21 4 16.5 13.8 (2.7) Sulu....... 135.1 137 1 2.0 3.2 23 7 20 5 52.4 42 5 (9.9) Surigao.. 105.3 117 7 12 4 40 2 46.8 6.6 79 3 79.7 .4 Z a m - boanga. 67.7 80.7 13 0 214 1 216.7 2.6 52.4 63 4 11.0 Totals... 943.6 1034.2 90 6 757 2 876.1 118 9 384 8 470.6 85.8 1. Talomo bridge. Km. 7, Davao south road, Davao. 2. Davao Waterworks Reservoir and sitting basin, Davao. 3. Suspension bridge over Digas River, Davao south road, Davao. 4 Generoso bridge. Km. 2, Davao south road, Davao. Hand in hand with road construction activities, the Bureau of Lands is subdividing suitable public agricultural lands and establishing townsites along completed roads and roads under construction. This Bureau has adopted the policy of making subdivision s into lots of six hectares each within the first kilo meter on both sides of the road; 12 hectares each, in the second kilometer, and 18 to 24 hectares each, in the third kilo meter, which is the minimum limit established by law for such agricultural subdivisions. Beyond the 3-kilometer limits is the zone where sales application or leases for large tracts of land arc permitted. In the subdivisions started last year by the Bureau of Lands along the Cotabato-Davao interprovincial road, hundreds of lots have been disposed of, and they are taken up as fast as they are released for occupation. In the high land sec tions the settlers usually come from Cebu, Bohol, Leyte, Oriental Negros and Oriental Misamis, as they prefer to plant hemp, corn and fruit trees. The Ilocano homeseekers and those coming from Pangasinan, Nueva Ecija, Tarlac, Zainbales, Capiz, Iloilo and Antique prefer to settle in the lowlands where they can develop irrigation systems and plant lowland rice. Luzon is the largest island in the Philippines, having an area of 105,300 square kilometers and a population of 6,300, 000, and Mindanao is the next in size with an area of 98,071 square kilometers and only a population of 1,500,000. Up to the end of 1936, Luzon Island had the following kilometer age of roads: First Class....................................... 4,691.5 Kilometers Seiond Class.................................... 2,464.0 Kilometers Third Class...................................... 926.7 Kilometers Total....................... 8,082.2 Kilometers while Mindanao had only: First Class.................... 1,024.9 Kilometers Second Class.................................... 784.2 Kilometers Third Class.. ........ 468.8Kilometers Total........... 2,277.9 Kilometers Compared with Mindanao, Luzon Island, as indicated by its present population and kilometerage of roads, is relatively well developed, with the exception of the provinces of Nueva Vizcaya, Isabela and Cagayan and portions of Tayabas and ('amarines Norte, which still have extensive areas of undevel oped public lands due to the fact that only in recent years interprovincial roads have been completed, or are being com pleted, to connect these provinces with the road system in Luzon and with Manila, the capital of the Philippines. In order, therefore, to place Mindanao in the same state of devel opment as her big sister Island of Luzon, it will require the investment of as many millions of pesos as have been spent for road work in the Island of Luzon, and the emigration thereto of all the excess population from Luzon and the Visayan Islands. It is encouraging to qote that, beginning with our great President, all the high officials of the Com monwealth Government are taking great interest in the devel opment of Mindanao and Sulu. Within the past two years they started to consider the development work of Mindanao and Sulu as a national problem and arc now bending every effort to find ways and means to finance important public undertakings, especially the construction of roads. Four Department Secretaries, with their bureau chiefs, have sep arately made careful inspection of the Moro provinces to study the problems confronting their respective Departments in the development work. Honorable Mariano Jesus Cuenco, Secretary of Public Works and Communications, firmly be lieves that the most expeditious way to settle and develop Mindanao, and thus eventually solve the problem of excess population in the other parts of the Philippine Archipelago, is by building a network of roads to traverse the extensive agricultural lands in this Island. In a conference he had last April with the Division Engineer and the Commissioner for {Please turn to page 13) 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 The American Chamber of Commerce OF THE Philippine Islands (Member Chamber of Commerce of the United States) ALTERNATE DIRECTORS i L. K. Cottermao E. M. Bachrach L. D. Lockwood H. Deao Hellis RELIEF COMMITTEE: C. G, Clifford, Citiw SECRETARY: C. G. Clifford (oo leave) ACTING SECRETARY: COMMITTEES H' °' Blu“10 PUBLICATIONS COMMITTEEI P. A. Meyer, Cbtirmn C. S. Salmoo Roy C. Beooctt MANUFACTURING COMMITTEE: K. B. Day, Citinu * F. H. Hale • D. P. O'Brito H. P. Strickler LEGISLATIVE COMMITTEEI C. S. Salmon, Oamw. Judge James Ross L. D. Lockwood C. G. Clifford INVESTMENT COMMITTEEi P. A. Meyer, Cia.rm.a C. S. Salmoo J. C. Rockwell S. F. Gachcs foreign trade committeei H. B. Pood, N. H. Duckworth INDIANA’S MAGNIFICENT McNUTT Washington news dispatches label High Commissioner Paul V. McNutt in the biggest guestion-mark in today’s American national politics. Com missioner McNutt is wearing well here, so far as we learn, and the following American Mercury story about him in Indiana written by James Stevens will no doubt be widely appreciated. January, 1933, and the inaugural of Paul V. McNutt as the Hoosier governor. The State was ripe for one-man rule. Public and private finances were crashing under the burden of huge deficits, and a tornado of tax delinquencies and busting banks. Schools were closing, unpaid teachers were organis ing hunger marches,, the jobless in the industrial cities were roaring for bread and beer, hell was smoldering in the steel millsand already exploding in the coal mines. McNutt went after dictatorial powers, and got them. Within sixty days the new Governor jammed through a reorganization measure that reduced 169 administrative bureaus to eight departments under his control. . He machine-gunned on, with a sales-tax law that was soothingly labeled a “gross-income tax”; a bill that revolutionized the State banking system; a law that was to reduce Indiana property taxes $50,000,000 in four years; a law that gave the State an actual police force instead of a pack of political choreboys; an enactment that buried the State’s Ku-Klux bone-dry law and cleared the way for Modifi cation and Repeal; and a slew of measures which knocked down and rebuilt the major State commissions, the system of municipal elections, and the State set-ups for dealing with Depression emergencies So much, and much more, before March 4th. Every meas ure had been in secret preparation for months and was heav ed at a flabbergasted Legislature without warning. The Republicans yelled, and a few Farley-Peters Democrats took walks, but the surprise attacks scuttled all opposition. Yet McNutt the Magnificent is a product of plain Hoosier earth, and so fits the need of democratic legend. His father was an appellate judge, but the country town of Franklin, Indiana, was his birthplace and he grew among barefoot boys. No stories of moment have come out of his youth. Then, it seems, he was only handsome. At Indiana University the hero’s powers unfolded, and he achieved the presidency of his class. A year at Harvard, and he came home with a Bachelor of Laws degree and to an assistant-professorship in the Law School of the State university. There McNutt first demon strated his abilities as a political strategist, a master of patient self-advancement. The facts of young McNutt’s coming to power over William Low Bryan, then and now president of Indiana University, have never been told. The McNutt enemies relate a melo dramatic story of black intrigue against the then-aged Dean Hepburn of the Law School; the McNutt loyalists give a poetic recitation about ability and virtue meeting a just reward; the truth probably lies betwixt and between. In any case, Hepburn was retired and McNutt was installed in his chair before a thunderstruck faculty could raise a whisper of protest. The appointment stuck. Concurrently rose McNutt’s World War career. Wonder fully made for military regalia, incomparably voiced for pa triotic oratory, Soldier McNutt was kept at home to inflame the recruits of the Wilson crusade. At Camp Stanley, Leon Springs, Texas, he fairly bounced from a captaincy in the Field Artillery to brigade command, and finally returned to Bloomington with sufficient, if bloodless, glory. But to get back to his story, in 1930, the Indiana Democ racy had real hope, for the first time in fourteen years, of driving the Republicans from the lush political feed-runs......... McNutt, in plumes and shining armor that bore no smear of politics, was anointed by State Chairman Peters as key noter for the State Convention. . . . Many of the delegates there saw McNutt for the first time. He knew it was his fateful hour. Inspired, he struck all present as a Great Light leaning downward. He held silence until not a breath issued from his audience. Then the golden voice clanged a battle cry: “We have met to prepare for a change in government and for its restoration to the people!” As the echo rang, McNutt was made. Patriot Democrats who had schemed and sweated through years of famine for places at the head of the Hoosier trough were forced to stand at attention in the ranks while Boss Peters escorted the Mag nificent McNutt to the front of the feed-line parade. For two years the Hero seemed compliant in the role of drum-major. Then, at Chicago, in a day, he stripped his baton of its gilt, and revealed a leaded big stick. In 1934, with one Democratic faction supporting Peters for the U. S. Senatorial nomination, and the Van Nuys faction boosting another, McNutt easily nominated his henchman, Sherman Minton. In 1936, the gubernatorial nomination was the State Convention prize. Minton, by now a roaring New Dealer, was bold enough to advance a candidate of his own. Van Nuys tried again. McNutt did not even trouble to endorse officially his candidate, Mr. Clifford Townsend, then lieutenant-governor. One ballot was enough. The Mag nificent One remained the master of all the Hoosiers. Then, the ’36 campaign. The Republicans, hugely hearten ed by Democratic factional fights, revived the 1934 cry of “Stop McNutt!” So again in Indiana the Rooseveltian New Deal played second fiddle to the McNutt Dictatorship in an election. The hero himself was not a candidate because the Indiana Constitution denies a second term to a governor. Nevertheless, the retiring governor was the central figure of the campaign. By this time he had perfected his public-forum method of campaigning. Every conceivable question and argument that might be fired at him from an audience had been care fully considered, and answers were stored up for all. Now McNutt the Magnificent was at his best. Standing alone on a vast stage, with lamps flaring upon his towering silver mane, classic features, and pine-like form, his smile as ever a September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 light leaning downward, the muted horn of his voice gently sounding a theme of oracular authority, the Hoosier Hitler silenced all comers. In the final week of October, not three questions a meeting were bawled at him. The crowds but gaped, their ears yawning, while they heaved with wonder and awe. McNutt was aboard the Roosevelt Special when it stopped at Gary during the ’36 campaign. In the forefront of the station crowd bulged Mayor Barney Clayton, local chief of a Democratic faction that had opposed McNutt two years before. This year he was yet on trial. Fearfully he awaited a sign from the Magnificent One, yielding the President of the United States hardly a glance. At last McNutt leaned from the observation platform and shook the Mayor’s hand. “A nice turnout, Barney,” was all he said. But it was enough for the Mayor. Sweating with relief and pride, he panted to his henchmen: “Did yah hear him, boys? He called me Barney! Paul V. McNutt called me Barney, by God!” ThusthcHoosierHitler bestows familiarity as abadgcof honor. McNutt, as I have sketched him, is well known to the con servative Democrats of the Old South, and to the boys of Tammany as well, if not to the blithe spirits writing polities out of Washington, D. C. So docs he shine as a shape of hope for Old Democrats everywhere, as they bide their time in the outer shadows, beyond the celestial circle of the New Order. He is adored by the schoolmarms of a thousand institutes and he is revered in as many posts of Legionaires. For nine years, McNutt has been preparing a drive for the Presidency. If his past performances as a strategist, a mas ter of surprise attack, an organizer and dictator mean any thing at all, Paul Tories McNutt of Indiana will either lead or break the Democratic Party in 1940. His acceptance of the Philippines appointment was unques tionably a part of his strategy. With an ocean separating him from the increasing misadventures of the Administra tion, he may remain unsinged by such hell as that which rages about Frank Murphy and menaces George Earle. When the fateful year approaches, or when the party factions begin to yell for a leader who may unite them, the McNutt will come home and place himself in the spotlight. Meanwhile, now that he has learned the trick, he may be depended upon to make news. He will be head man or nothing in Manila. In any event, he will remain magnificent until the earth re ceives him, and even then the grass will doubtless stand at attention about his grave. The Islands’ 17,000 Kilometers . . . (.Continued from page 6) have been provided with good roads and every barrio has highway communication with the main roads. The road classification mentioned above is based on the following definition: First-class roads are well graded and surfaced, thoroughly drained, and constantly maintained; the bridges and culverts are usually complete and permanent. Where bridges are missing, ferries capable of carrying automobiles weighing two tons or more take their places. These roads are conti nuously passable at all times, with the possible exception of brief interruptions during typhoon seasons. As of De cember 31, 1936, 9,555.7 kilometers of first class roads were in existence in these Islands. Second-class roads are fairly graded, partially surfaced, and intermittently maintained; bridges and culverts are usually complete, but, in part, are temporary structures. These roads are continuously passable for vehicular traffic during the dry season, and more or less passable in rainy seasons. The country had 5,105 kilometers of second class roads as of December 31, 1936. Third-class roads are all the traffic routes for carts not in cluded in the first and second classifications, such roads are usually narrow, poorly graded, or not graded at all, and are generally impassable in the rainy season. The kilometerage of this class of roads as of December 31, 1936, was 2,083.2. As early as 1910, the Chief Executive of the country real(Please turn to page 15) HEADLAMP IMPROVEMENTmw sa east/ Piffle casi! You need no longer strain your eyes during night driving. Fit a "BOSCH Superlight Insert" and enjoy a powerful far-reaching light, enabling you to drive in comfort and safety. If costs but little and can quickly be fitted to the existing headlamps of all American cars. Let your dealer demonstrate it to you today. BOSCH SutytdUyMlMcds C. lilies & Co. 550-556 San Luis, Ermita Pedro Armena & Co. Manila 29-A Session Road IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 We Review A The book Eyeless in Gaza by Aldous Huxley is all about life. Rather, the bouquet of life; so little of the scent of the rose, and most of that a mere illusion or at most a sensation of just being young, and so much of musk and rue. A work of Huxley, the book is of course delight ful throughout; and I think it will prove more pleasing to folk outside of England than to English folk at home. Huxley is the one English man of letters magnificently broader than England’s shores in intellectual curiosity. Not all English admire the cath olicity of knowledge that recognizes the fact that an Australian ranch has quite as much to do with the matter of British mutton as has a Shropshire meadow, and many of them are not prepared to accept it. Huxley at any rate, can view Fifth Avenue from a bus—not condescendingly: Englishmen will be first in conceding that this is not a universal English trait. Eyeless in Gaza is a what-n for thoughts. You are invited hang it full of superfluous reflecti your own, incumbrances giving you per haps a stuffy feeling: the Spring overcoat you are glad enough to wear downtown of a morning, that by noontide tortures you until you fairly fling it at the hooks in the hallway. By this time, worst of physical annoyances to hirsute man, your wrists are sweating under Huxley Book the coat-cuffs and the perspiration runs down into your gloves. Huxley has recognized that a man may be garmented in too much thought, in the morning of his life when the slightest breeze of experience chills him through; and so he has made this book, and blazoned it with a sign, Cloak Room. Gaza of old was a Philistine capital, which will signify a mart as well as a caravan station, that Israel often cursed but never conquered. It was far south, perhaps the shepherds never cared to march in force so farBut Milton says, as Huxley quotes, Eyeless in Gaza at the Mill with slaves. And why slaves? Why, to turn the mill. And our Gaza? Our existence. And the rulers of our Gaza? The fates, the gods-forsooth: to a Christian, God in upper case. And what is in Gaza for us? Nothing but the mill, where wo go by the sense of touch. And then our business in Gaza? That of slaves, blinded slaves of course, forever at the sweep—the sweep that turns the gods while they grind slowly yet mills of the exceedingly fine. You see, the young Oxonians and their belles, who are Huxley’s characters together with celebrities who gravitate to their company naturally, essay most remarkable adventures. They will to do so much, are equipped for it too, yet in the end are condemned to do so little. In the beginning, ah yes: they will tole rate no gyves on their limbs, not much they won’t; they will not be taken prisoner in com bat, sold on the block at Gaza, and doomed to turn the mill. But really, however much they will think otherwise, there is nothing else in store for them. And, not after such lofty effort, but after lesser effort, equally poignant to us who are denied Oxford, the Museum and the Circle, neither is there ever anything else in store for all of us. There comes a day when we are at the end of our years, and fall at the sweep. Then we are thrown aside quickly, and the shackles cut free from our ancient limbs will s serve for one of our children. This, I say, is Huxley’s th< To show how eyeless the human victim is, he jumbles the chapters chronologically. Well, all slaves at a mill-sweep were not shackled there at the same time: some were taken as boys, some as old men. Nor did all fail at the same time, by dying or going mad: such things go without saying, and make all the allusions clear. Mary in 1920 is still adorable, but in 1928—many intervening chapters later, naturally—she is a hag addicted to morphine. This is fourteen years after her daughter, Helen, has descended' to promiscuity almost professionally: but God! with what reason! Then too, it is one of the very latest of the chapters in which Brian drops away: not defiant, still a man of utter faith capable of his daily stint in the Guardian at Manchester, but broken hearted and unable physically to go another turn. Many times he has felt the lash, never once resented it. He shrugged as it lay on, bent harder to his task and went ahead. All right, his thought ran with the open wounds, perhaps he had been dogging it; if so, it had been mean of him, while he had not kept up his part he had been un fair to the others;. . . . the lash! a reminder after all, however harsh—he would lean harder to the sweep and redeem himself. Krom childhood almost, Joan and Brian had been sweethearts; circumstances, mostly Brian’s forgetfulness of self in effort to help others, always postponed the wedding .... at last Joan, mistaking Anthony’s gesture of mere commisseration, struck Brian with the blow that she was breaking it off, that she and An thony, Brian’s warmest and most loyal friend, visiting him at the time, were in love. If this was so, why had Anthony not come out with it? How could he be there, under Brian’s roof, sharing Brian’s bread and making intellectual excursions with him, skulkingly hypocritical all the time during a spiritually rejuvenating visit? Joan’s jibbering letter was a travesty of truth. She believed, getting at things through the touch of them, but only she was party to her faith. Yet it did for Brian. Days later they found his body in the woods, he had es caped the monster in his house. It fell to this monster, the brooding friend Anthony, to see to the burial, comfort the mother, lie inordi nately to Joan by telling her he found a letter from her to Brian, unopened—he was returning it to her, not knowing what else to do, since evidently it had come to the house after Brian had gone away to the woods. Ill health was obviously Brian’s difficulty. She was not to take it badly. Then indeed did the Mill with slaves grind fine. From Brian in 1914, Mark and Anthony in Mexico seeking surcease with Don Jorge and his rebellion in 1934. The discrepancy is twenty years, lively ones too, but you retain the thread leading safely through the labyrinth by visualizing the blind slaves at the sweep: shackled there at different times, dying there at different times, chucked aside at different times— if not surreptitiously bartered to a Jew or a passing Arab scholar who practices Iblack magic and vivisects carrion on pretext of discovering thereby, facts relat ing to the living flesh. Beppo is the weakest of the Oxonian slaves, essaying the wisdom of selfishness but failing Huxley uses him as a caricature very early. of contemporary polite perversions; it notes an England somewhat at contrast with the England that punished Wilde. Booh! Booh! the preachers say of Beppo’s weakness, in order to frighten children; and nearly all the world preacb.es. Beppo who so delights in Berlin in 1928, is incident, no more. At the sweeps of a mill such as the Gazites had in Gaza, or such as those of the gods, the different slaves come boldly into the eye at intervals, pass, and you see their labor closely, go round whilst others pass, and reappear again. The subtlety of Huxley’s management of IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 New & Old Highways . . . (Continued from page ,9) Mindanao and Sulu, it was agreed that the writers of this article should prepare two road const ruction programs: (1) A two-vcar program to be financed from the Gasoline and Motor Vehicle Funds, and (2) A five-year program to be financed from the excise tax money, or from funds to’be appropriated by the National Assembly. This program aims to complete all the interprovincial roads now under way in the northern provinces of Mindanao. If the total estimated cost of 1 * 23,658,000.00 can be made available from the excise tax of P 100,000,000.00, it will per mit the complete construction, within five years, including maintenance, of approximately 3,000 kilometers of new second class roads which, together with the existing roads, will give Mindanao and Sulu such a complete highway system that will provide all the transportation and communication facil ities necessary for the extensive and intensive development of the natural resources of this region. However, in the event that this total amount cannot all be given at one time, the program can be adjusted in the order of the relative impor tance of the projects, and construction work can accordingly be undertaken as funds are made available from time to time. (Please turn to page 34) 1. Misamis-Tanyab road. Km. 47. Misamis Occidental. 2. Ague Rirer bridge, Lanao. 3. Binuni Causeway. Km. IS. Mambayao-Sagay road. Oriental Misamis. 4. Tugar Causeway on Km. 4G. Lanao. Read THE AMERICAN CHAMBER OF COMMERCE JOURNAL Subscription P4.00 a year Nederlandsch Indische Handelsbank, N. V. Established 1863 at Amsterdam Paid Up Capital — — Guilders 33,000,000 [P37,000,000] Reserve Fund — — Guilders 13,200,000 [P14,800,000] General Head Office at Amsterdam with sub-offices at Rotterdam and the Hague. Head Office for the Netherlands Indies at Batavia. Branches in the Netherlands Indies, British India, Straits Settlements, China, Japan and the Philippines. Branch at Manila: 21 Plaza Moraga his chapters carries out Milton’s allusion in some detail, yet need not escape us; if it is a bit harsh, surely it is not mystifying. Laboratorially specific as Eyeless in Gaza is, it is not depressing. It shows that man strives and nothing ever comes of his effort, but at the same time you are left inklings of hope that all this strife is worth while. This is not tossing a beggar a bun. For it is believable, truly, in our time as possibly never before, thanks perhaps to the emancipation of woman, that the cortices of our brains can be more deeply set with understanding, and that man, Oxonians and Upper Middle Glassers eminently included, can evojve a formula of conduct that will make life tolerable, if not comprehensible. Not another word on this, however. Hux ley’s book is rugged with reality and must not be smoothed out. I know, I think, about the blinding of the slaves at Gaza—an allusion Milton must have had from the bible. At least I know that when they harness an ox to a sweep, they cap a blind er over his near eye to prevent his becoming dizzy, eventually dazed and finally mad. If the Philistines blinded Jewish slaves at the mill of Gaza, it had, beyond doubt, a simple IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Every Description of Banking Business Transacted Current accounts opened and fixed deposits received at rates which will be quoted on application. 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 economic purpose behind it. Why, as to that, since it probably postponed madness, we can see very readily that it was for the slaves’ own good: the oracle at the temple of Dagon could justify it on grounds of enlightened piety, as we can well surmise it invariably did. An adversion on nothing at all, in particular— Eyeless in Gaza al the Mill with slaves, kismet! —recalling only that Huxley did not write without a purpose, and that Gaza may be nearer than we think. Sampson once went to town in Gaza. He had been carousing and boasting as usual, and when he went to bed the Gazites watched where he lay and whom he chose for bed mate. In the morning, they swore vcngefully among them selves, when his mighty strength should be dissipated by wanton indulgence, they would lie in wait for him and slay him. But Sampson terminated his pleasure in Gaza at midnight, no doubt because some woman whispered to him of his peril, and he rose and went his way to Hebron, whence he carried off with him the gates of Gaza including the bar thereof. But he left the Mill with slaves intact, Jehovah moved him not to destroy it. When Sampson went again to Gaza, Delilah had shorn him of the source of his strength, “the Philistines took him, and put out his eyes, and brought him down to Gaza, and bound him with fetters of brass; and he did grind in the prison house." Who would barber a slave? None in Gaza, so Sampson’s seven locks grew out anew and returned him his gigantic strength —nor had the sweep softened his muscles; and he avenged the mayhem by pushing down the pillars of Dagon’s temple and burying himself along with the Philistines in the ruins. All the time Gaza could not be taken. Hux ley’s metaphysical Gaza is much grander of course, and infinitely more invincible. But it is right for man to besiege it, some time it may prove to be as pregnable as Jericho. In Hux ley's closing chapter dated 1935, Anthony offends many citizens by the tone of his public addresses. He is mobbed. Mary is beyond mourning, so it really matters little: Helen has found someone else, whom she has already told Anthony she likes better. —IF. R. George F. Luthringer —Secretary to the joint preparatory committee on Philippine affairs. “I wish to acknowledge with thanks the copies of the July and August numbers of the Chamber of Commerce Journal. The members of the Committee will find the various articles of great interest.” AMERICAN CHAMBER OF COMMERCE JOURNAL P. O. Box 1638 — Manila — 180 David RATES Philippines - - - 1 * 4.00 per year United States - - $2.00 ” ” Foreign Countries $3.00 ” ” LETTERS John Grander —former Manila business man now reachable at 3 Lewes Crescent Brighton 7, Sussex, England. “It gets my goat to see that day after day the Philippines become a greater and greater unknown quantity to the average Englishman. Here are a few facts: “There is no office in London where one may obtain mining and investment information on the Islands. “As from the first of July the new and faster Air Mail Service to India, Malaya, Siam, China and Japan was inaugurated and the postal rates reduced about 40%, except that to the Philippines which was increased 35%.“Of the 12,000 cigar stores in Greater London only 15 carry two brands of the very cheapest Manila cigars and these at millionaire prices of a shilling and six pence per cigar. “Recently at a public auction very valuable historical books and documents on the Philippines were sold for a song, a great loss to the Philippine National Library and Museum. “I was talking to a Filipino gentleman, whom I believe was once in charge of a Bureau of Commerce and Industry office in America, and lie expressed the view that such an office here in London would be of great benefit to the Islands. Please excuse my writing you on these matters, I do so only because they will be of inter est to your Journtil and should be brought to the notice of the proper Philippine government officials—your worthy Journal with all its ramifications being the most appropriate means of doing so.” (The data in this letter were immediately forwarded to Secretary Vargas at Malacanan, but Mr. Grunder’s address is also given here should any reader wish to contact him personally: he seems to be in a mood to assist, at least to some extent, in enabling the Islands to reach the London market with sundry manufac tures. We have always felt that a vast trade in Philippine cigars could be estab lished throughout the world by a form of cooperative among local manufacturers enabling them all to be represented in one field by one salesman or agency, and quite without regard to the brand of cigars thus sold, to share the profits. This might require a special export agency with brands of its own. At any rate, an expense unwarranted by one manufactory can easily be undertaken by a group, and under one formula or another the problem ought to yield to solution.—Ed.) G. H. Fairchild —Philippine Sugar Association Regina Bldg., Manila “I did not know that it was your in tention to publish my letter on the Chinese sugar situation in the American Chamber of Commerce Journal. However, the story is as follows: “Upon a number of occasions the suggestion has been made locally, pre sumably in all seriousness, that a sub stantial portion of the Pnilippinc sugar crop might be marketed in China after the American free market is lost, by inducing the Chinese to use sugar in their tea. I recall seeing in China some years ago cylinders of stone said to be 5,000 years old, upon which there were in scriptions descriptive of the high state of civilization in which tea drinking became an esthetic ceremony. There were many other evidences on the cylinders of the high state of civilization China had reached when our race was still roaming about the Teutoburger forests. There was no mention at that time of the use of sugar in tea by the Chinese. In fact, quite the contrary, the drinking of tea was then and it is still today in Japan and presumably in China a subject of esthetic art- I have never heard of Chinese taking sugar in tea, and I doubt whether they could be induced to change the habit of 5,000 years without considerable force being employed in the process. “On the assumption that there arc 500 million Chinese in China and the consumption of tea averages a cup per capita per day and that a teaspoonful of sugar will be required for each cup of tea, 500 million tcaspoonful of sugar per day will amount to a total annual con sumption of sugar in China of 2,851,562 short tons. “On the assumption that at least two of General MacArthur’s highly trained Philippine soldiers would be required to hold each Chinaman while a third soldier forced him to drink sweetened tea, I leave it to your statisticians to calculate the length of time it would take to intro duce the use of sugar in tea to the extent it is employed in England and elsewhere. “Another factor, of course, must be considered should independence be granted in three years we would be forced to sell our sugar in the world market at a price which has averaged for some years about 1 cent a pound. The expense and effort to teach the Chinese to use sugar in their tea would be lost, as there would be no sugar left in the Philippines to export to the world’s market. “The ‘sweet reasonableness’ of sugar seems to have created a bitter problem for the Philippines. Not only has it created ‘sugar barons’ who apparently lost their profits through the activities of ‘gold diggers’, but the destruction of the sugar industry will leave the Govern ment with no immediate or prospective substance. The powers that be arc on record as having been against the estab lishment of a free trade market in the United States, so we cannot blame the Filipinos for the unfortunate consequences of the destruction of the baronial sugar estates. “This, in brief, is the outline of a story I promised to give you as to the prospects of selling 1,000,000 tons of sugar in China for the purpose of destroying through the use of sugar the aroma of the tea sodcar to the Chinese”. September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 The Islands 17,000 Kms. . . . {Continued from page 11) ized the necessity of classifying and establishing the limits of public roads, hence the promulgation of Executive Order No. 1 to that effect, thereby fixing the responsibility for the proper maintenance of the roads built or to be built between the Insular, provincial and municipal governments. This executive order was amended in 1929 and again in 1935, and later revoked by Executive Order No. 71, promulgated December 3, 1936. Under this latest executive order, which took effect Jan uary 1, 1937, the roads have been classified into National, provincial and municipal roads, and the responsibility for their construction, improvement and maintenance has been fixed. The Commonwealth Government assumes respon sibility for the construction, improvement and maintenance of National roads, the provincial governments for provincial roads, and the municipal government for municipal roads. The policy laid down in this order is in line with that adopted by most of the progressive countries of the world, and it is expected it will enable the Commonwealth Government to carry out the construction and maintenance of roads of na tional importance in a more efficient and economical manner, prevent local influences from hampering approved programs of work, ajid coordinate the efforts of all agencies concerned with highway work. Our people enthusiastically supported from the very begin ning the government’s program of road construction and maintenance. Our existing roads and bridges already rep resent an investment in their construction and maintenance of not less than three hundred million pesos. These lines of communication have given the nation greater solidarity and broader interests in common, and our people have come to realize that they simply could not live their lives in the way they want to live them were it not for the roads. They will always look for good and better roads, for they know that a good road saves money for the man who uses it—it makes money for the man who lives near it. Good roads increase land values because they bring the market and the farm closer together and make the business of farming more profitable. They are an insurance against interruption of food supply, and, by making the schools more readily accessible, they prevent intellectual stagnation of our rural population. In the Mindanao and Sulu provinces where road building has not advanced as rapidly as in other parts of the Islands, wherever roads have been built, their influence on the estab lishment and maintenance of law and order and the economic development of those regions has immediately become evident. Funds for road and bridge construction and maintenance have been provided through various legislative enactments. There was the ccdula tax, enacted in 1907, which, from 1908 to the end of last year, made use of one peso, or one-half of the tax, for road and bridge work in the provinces where the tax was collected as provided in Section 487 of the Adminis trative Code. This tax contributed over two million pesos for road and bridge work in the provinces last year. There is the internal revenue allotment of ten per centum of the collections from this source accruing to the treasury, which started in 1908 and which contributed about eight hundred lualtli Hr 1/om, fnttotef Keep a — Coolerator THE REFRIGERATOR ^ CO., MUELLE DE LA INDUSTRIA. MANILA be healthy so that he may better enjoy the good things of life and Coolerator promotes health by keeping foods fresh, crisp and tasty longer with a filling of ice that lasts from 4 to 7 days! It's the last word in air-conditioned refrigeration giving you constant cold temperature; real, taste-free ic in 5 minutes and frozen delicacies in less than a <ncl your refrigeration problems,—repair bills, high eost of maintenance, danger of explosions, etc.—with a Coolerator, the health guardian of the family! Send the coupon for full details. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 The Philippine Guaranty Company, Inc. (Established in 1917) SURETY BONDS— We execute Bonds of various kinds, especially CUSTOMS BONDS. FIRE ARMS BONDS. INTERNAL REVENUE BONDS. PUBLIC WORKS BONDS for Contractors, COURT BONDS for Executors, Administrators and Receivers and BAIL BONDS in criminal cases. FIRE INSURANCE— In the Philippine Islands LOANS— Secured by first mortgage on improved properties in the City of Manila on the monthly amortization plan. Phone 2-24-31 Second Floor P. O. Box 128 INSULAR LIFE BLDG. MANILA Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area thousand pesos for road and bridge work last year. (Sta tions 491 and 493 of the Administrative Code). There is the one-eighth of one per centum of collections from the real property tax which is also devoted to road and bridge pur poses in the provinces. (Section 346 of the Administrative Code). This item contributes about one and a half million pesos annually for road and bridge work. With the popularization of the motor car, the motor vehi cle tax law was enacted providing for the expenditure on roads and bridges of collections from motor vehicle registration and licensing of drivers. Collections from this tax started in 1912 with a little over thirteen thousand pesos, but last year’s collection reached the respectable figure of nearly three million pesos. Later the “gasoline tax” law was enacted providing for the expenditure of the tax collected on lubricating oil, gasoline, and other distilled products on roads and bridges. Revenues from this source started to assist highway construc tion and maintenance work in 1927 by three million pesos, but last year’s figures show that collections amounted to more than six million pesos. There is also the annual appropriation act for public works which carries as a general rule a total of at least two million pesos for road and bridge work. Several provinces have also taken advantage of laws which authorized bond issues for roads and bridges to build im portant concrete highways and certain bridges which other wise could not have been financed for many years to come. On several occasions the Legislature has authorized speci fic provinces to issue bonds for public works, and it should be recalled that the province of Pampanga took this opportunity to build concrete roads to replace obsolete macadam, while Pangasinan, Nueva Ecija, Laguna and other provinces built important permanent bridges through bond issues. Negros Occidental has recently built concrete roads by means of bond issues and Iloilo has contracted a half-a-million-peso loan and is at present building concrete roads with the money. The Act of the Legislature which took effect on January 1, 1930, creating a revolving fund of five million pesos for the construction of permanent bridges, the cost of which is to be refunded from toll collections, and the Act authorizing the use of the unexpended balance of nearly three million pesos of the proceeds of the Irrigation Bonds for the construction also of permanent bridges where tolls are levied and collected to refund the investment have made possible the construction of over sixty important bridges, thereby eliminating in many cases the uncertainty of ferry crossings. In order to give further impetus to this manner of financing permanent bridges, the National Assembly last year authorized the National Loan and Investment Board to invest money in permanent bridge construction, the investment to be refunded from toll collections. The trend of legislation is thus to increase the revenues available for road and bridges work and to build permanent structures, but there is a decided tendency to gradually shift the burden of road and bridge construction and maintenance as much as possible to road users. Probably it may soon be truly said that the driver will have to pay his own way. The existing system of administration of this governmental activity is as scientifically sound as any abroad and infinitely superior to many. A trained staff of engineers makes all plans and specifications and. keeps abreast with the best practice abroad. As funds permit, roads subjected to heavy traffic are being paved with asphalt or concrete; road surfacings are being widened where necessary; curves of short radius are being eliminated; diversions around the “poblaciones” are being built, and bridges being made wider and stronger to keep up with modern traffic requirements. The only obs tacle in the way of more and better roads and bridges will be limited resources. While last year over fifteen millions were spent in road and bridge work, in the years to come it is ex pected that more and more funds would be needed annually for this purpose, not only to give employment to many people, but also to promote the economic, social, and intellectual development of the country. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL AMERICAN CHAMBER OF COMMERCE JOURNAL IlU III x>i lx u'VWGfi ■r?I . r/l/M.I ol fgHH / ml IT * VW!! I 3 S H H//// °/ i! %/// ■ \ - 11 Malavbalav North Canon Road Km. 42, Bukidnon COMPREHENSIVE PHILIPPINE MINING NEWS UP TO DATE DAWSON WHISKY WITH ANY MINERAL, IS THE SAFEST AND MOST SUITABLE BEVERAGE IN THE EAST 9 Piter Dawson SPtOAL SCOTCH WHISKY JMITH,BELU(CQLTD. SOLE DUTR.IBVT< * 3 GOODRICH SUPERHEAT PACKING New Possibilities in GASKET MATERIALS .Vt a- (,'/•</</< x of (J< h >< hi el i Superheat Shed Packings arc * now avail able. More pliable I tenser Stronger both lengthwise and crosswise' .More highly oil-resistant More nearly indestructible 7’///,ex o’/ mill IDO are new and improved grades, of ultra-quality, con taining an exceptionally high percentage of indestructible material,— very dense, and especially compounded to withstand the action of hot oil and gasoline. These types an1 homogeneous -not plied together—-so plies cannot separate when the packing is subjected to excessive heat, or to the vapors of gasoline and other solvents. We recommend them with confidence for steam pressure's up to 400 lbs., temporal urcs up to 700 degrees F., hot water pressures up to 1,500 lbs. Select these grades for severest service. SPECIFY GOODRICH PACKING Philippine Trust Company sells drafts and cable or radio transfers for the payment of money anywhere in the United States, the principal cities of Europe, China and Japan. It receives checking accounts in Pesos, Savings Accounts in Pesos or United States Dollars, Fixed Deposits and Trust Accounts. Fidelity and Surety Gompany of the Philippine Islands executes and covers BONDS INSURANCE Court, Customs, Firearm, etc. Fire, Life, Marine, etc. Plaza Goiti and Escolta Tol. 2-12-55 P. O. Box 150 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 WARNER, BARNES & GOMPANY, LTD. LONDON — MANILA ILOILO — CEBU — BACOLOD IMPORTERS EXPORTERS SHIPPING DEPT. INSURANCE DEPT. Agents For: Nippon Yusen Kaisha Cunard-Whitc Star, Ltd. Bibby Line Transacting Fire Marine Automobile Workmen’s Compensation &c. General Managers of COMMONWEALTH INSURANCE COMPANY EASTERN DEVELOPMENT COMPANY INC. RAMONA MILLING CO. SPECIAL REPRESENTATIVES OF IMPERIAL AIRWAYS, LTD. MACHINERY DEPARTMENT Agents For: Sugar Machinery, Diesel Engines, Condensing Plants, Mining Machinery and Steels, Shipbuilders and Engineers. AGRICULTURAL DEPT. IMPORT DEPT. All Classes of Sperry Flour Fertilizer Sugar Bags Cable Address: “Warner" S tandard Codes Manila Office: Soriano Building, Plaza Cervantes CROSSLEY DIESEL ENGINES CROSSLEY HORIZONTAL LOW SPEED ENGINES sold since 1911 are still giving satisfactory service after 24 YEARS OF UNINTERRUPTED SERVICE IN THE PHILIPPINES Best suited for Ice Plants, Oil Mills and other Plants requiring 24 hours service Sole Agents: SMITH, BELL & CO., LTD. Cebu — MANILA — Iloilo KoppeL STAHLUNION STEEL BALLS We are pleased to announce that we have been appointed Sole^ Distributor^ For Steel Balls Manufactured by MESSRS. STAHLUNION EXPORT, G.m.b.H. We have made arrangements to carry a quantity of their special chrome steel balls in sizes from 5" down to 2" in stock at all times and shall be pleased to quote on your requirements for immediate as well as for future delivery. KOPPEL (PHILIPPINES) INC. MANILA 75 DASMARlNAS ILOILO IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 ® JAgkbiTS I-R AUTO THE The Earnshaws Docks & Honolulu Iron Works INGERSOLL-RAND 11 Broadway 350 Brannan St. New York, N. Y. San Francisco As everyone knows it is the cost per foot of hole drilled that counts. This cost is being greatly reduced in both large and small mines of all kinds by the combination of Modern I-R Drills and "Jackbits". If you are not using these new I-R Drills and "Jackbits", we are sure it will pay you to investigate them. One property after another is finding that the use of "Jackbits" results in increased footage per drill shift, lower upkeep cost of drills, and the elimination of drill steel transportation costs. All of which means lower cost per ton of ore or rock broken. There are more than 100 standard sizes and types of "Jackbits" from which to choose. They are made of the best steel known for cutting rock. Most bits can be re ground two or more times in the "Jackbit" Grinder. "Jackbit" threads stand up and are easy to make. It takes but a moment to replace a dull bit with a sharp one. The new automatically rotated SAR-85 and SAR-120 Stopers are the fastest in their weight class. The new JA-30 and JA-45 "Jackhamers" have many advantages. Ask for any or all of the following catalogs: 60-118 Second Street — P. O. Box 282 _ 1 Manila, Philippines I IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Reasons Why the GoldShare Market Collapsed • Revival Turns Upon Wide Liquidation Reasons for the collapse of the gold-shares market in Manila and the pall that still hangs over it are so many that when President Quezon asked newspaper men about his own part in the situation and an attempt was made to enlighten him, characteristically he interrupted, with the remark, “Oh, now you are going to tell me a story.’’ Advisedly, he had no time during a press interview for even the briefest recital of his own part in putting the market down. Besides, he had not played that part in full. It was evident in his attitude that he still had many lines to speak before yield ing the stage to lessen- actors in the drama of Phil ippine gold. But his part comes first. It may also come first in a gradual restoration of public interest in the market. Supplementary factors, some of them coordinate, in the depressing situation arc Nature, Quirico Abadilla over at the Bureau of Mines, Judge Ricardo Nepomuccno as Securi ties & Exchange Commissioner, Dr. Foster Bain who gave a few months to assisting Abadilla, Dr. Bailey Willis and Filipino assistants whose geological observations tend to define the Is lands’ gold regions, Manila newspapers that published the Willis preliminary reports, and this magazine, that featured reprints of them and editorially invited attention to their probable infallibility. On March 18, at Washington, Quezon came out like a’ thunder stroke from clear sky, for shortening the Common wealth period down to next year or 1939 at most. This seemed to signify doom for Philippine sugar, and sugar had been providing, directly and indirectly, the capital for min ing speculations. Up to this moment, all had not been clear sailing but all was going quite well; there were darkening horizons, there were quarreling winds and choppy seas, but practically no canvas had been reefed: it was coming to be realized that the voyage from raw prospect to ingot and dividend would perhaps be longer and more adventurous than had been anticipated at setting out, but courage was high and speed was swift. What matter occasional minor mishaps? The Golden Fleece should be the ultimate reward of stubborn persistence. As for wreckage and re pairs, sugar, that had backed the venture in the first place, would surely come to the rescue again. After March 18 this was no longer true. The little barkentines of hope were caught in vortices of death and crushed together and shattered to pieces. Sugar deserted ship, swam for shore, and in mere shreds of its former finery on the Rialto, began begging for its life. Mining could go hang, sugar would not throw good money after bad, but, very wisely, would tighten its purse strings and save its personal fortune if it could. That was (he initial part in the gold-shares collapse played by President Quezon. He is not, be it said, in the least re pentant. He will strike again, anon. Now let us take up Nature. Two booms have engulfed the imagination of the Philip pines since Roosevelt took office at the White House in 1933 and within a few months set the price of gold at S35 an ounce. These booms have naturally resulted in wildcat staking and claiming. (The government was caught unprepared, of course, and cloudy titles and overlapping claims are common results of this inability to meet demands upon the mining laws). But it appeared some time ago, and had begun ap pearing quite clearly before Quezon’s unpresaged demand on Washington, that Nature had been less profuse in ballasting Philippine mountains with gold than had been anticipated by the hosts of organizers and shareholders and speculators in mining companies. Projects outside the districts after ward delimited by the Willis reports, failed on every hand to pan out. It is now plain that the lack of fundamental geologic data took the Philippine public at lament able disadvantage. The truth has come out that Nature has been comparatively niggardly in the Philippines, concerning gold; she has made few deposits, and these not at all consistent. When the booms spread rainbow arcs over all the Philippines, this homely fact was still quite unrealized; if anyone spoke of the possibility of it, he was not believed, but his prudent homilies made him a pariah and he was pelted from the market-place with invective. Experience corroborated him, however, and the market was rife with just misgivings when Quezon loosed the thunderbolt of the foreshortened Commonwealth period. Prior to that fateful day, it was only obvious that values would gradually subside and adjustments to Nature’s ac tualities would be attained slowly. But on that day caution was abandoned and the only anxiety was to sell. So what has made the market go down? Answer, everything. Hope deferred maketh the heart sick. At the same time, it is natural for man to indulge in illusions of hope, but, to impoverish expression with still another clichd, the pitcher breaks that is sent too often to the well. People hoped the Baguio field was far more ex tensive and consistent than it seems to be, and made themselves believe that hope; they have now lost that illusion, and the process of dis illusionment depressed the market. People hoped that a Paracalc company with a pros pect good enough to warrant development could be milling gold in a twelvemonth or less; in the end it was not true, and the dis illusionment depressed the market. In other cases, people hoped that large gross production would issue in a short time in a regular and stabilized dividend rate. This proved not to follow, necessarily, and the disillusionment depressed the market. Gold River at Baguio got a mill, even, then seemed to run out of orc; then it effected an operating contract, an excellent geologist was employed, and hope partially revived at intervals, but now, after so long a period of disappointed hope, the attitude is either to chuck Gold River overboard or stand by grimly—to gain much or lose all. A case-history such as that depressed the market. Ipo out east of town got to paying under Benguet Consolidated management, and Salacot, a specula tion just across (he river from Ipo, sprang into favor with the public. Salacot got a mill, too, under a good superintendent, but production never came up to the expectations derived from {Please turn to page 26) 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Base Metals Industry Well Underway • War-risk Freights Loom as Drawback Prospecting during recent years turned up many deposits of common base metals in the Philippines. This led, less than a year ago, to the organization of Amalgamated Minerals, Inc., under management of its vice president, W. B. Sheppard, with authorized capital of a million pesos of which nearly 1 * 900,000 is paid up. The company stood ready to buy base metal ores, also to take over properties and develop them. One result is that an actual market for these ores has been established, considerable shipments have been made and still larger ones are in prospect. Attorney Thomas N. Powell of Iloilo is a director of Amalgamated. It is from that island, Panay, that copper has been shipped. To date, 8,500 tons have been shipped, Manager Sheppard says, 7,800 tons more will be shipped this month, 3,500 tons more early in October, and monthly.there after, 5,500 tons. Japan is the market, where Amalgamated has smelter connections both in Korea and in the archipelago. Amalga mated expects soon to be marketing the output of the Sulu Copper company from its mines in Tawi-Tawi. Among interested parties there are Paul Gulick, Colonel Harry Andreas, and B. F. Berkenkotter and associates. On June 3 Amalgamated began loaing at Iloilo 2,700 tons of copper ore from the San Remigio property in Antique, which Amalgamated operates, and early in July a like cargo of this ore left Iloilo. The ore is trucked from the mine to San Jose, then lightered across to Iloilo. At Mount Uac, Masbate, Amalgamated is developing a copper-gold project of the Berkenkottcr-Ick interests. Here then is copper in the Bisayas from Antique to Masbate. Much of its assays very high, the particular rub is to find large veins bearing ore rich enough in copper to be of consistent commercial value. Apparently it may not be said categorically, at this time, that such deposits exist in the Islands. There is confidence, in the Amalgamated company, that they do exist. Meantime, prospecting for them provides steady supplies of good ore for shipment abroad. In October, Amalgamated is shipping 5,000 tons of manganese ore, Manager Sheppard says, and thereafter will ship 5,500 tons a month. In November the company will ship 4,000 tons of chromite, and thereafter 4,000 to 5,000 tons a month. For the Berkenkotter-Iek interests the company is developing a manganese property in Camarines Sur. A fleet of dugouts conveys the ore down a creek navigable for such light craft at high tide, to an island offshore where lighters and tugs pick it up for putting alongside the ships that freight it to the smelters. Manager Sheppard asserts that the dugouts, hired on a basis of a set price per ton of ore moved, are very satisfactory and perhaps less costly than a tramline. Manganese is also being developed at Coron, Busuanga. (Please turn to page 22~) New Industry Is Organized An opportunity'for investment in a BASIC INDUSTRY which is One of the most interesting developments among industries new to the Philippines came to light recently with the disclosure that a factory has been erected within 2 15 minutes from the center of Manila for the production •e of wire nails, bolts and nuts, and a large number of other - items, all of which at the present time are being imported. The company, which is called the P. I. Mining Mach_S inery and Electrical Supply Co., Inc., is managed by £ S. Stadler and E. Boycns. both with many years of praci tical experience in this field. S' According to the annuul report of the collector of customs for the year 1936 (the latest available report) "J the annual volume of imports into this country of the .0 products to be manufactured by the new concern runs "3 into many millions of pesos. $ The new company was formed after long and careful —, study of the local situation, and its orgnnizers are con•” fident that they will be able to manufacture certain s essential products in their modern factory and sell them § on the market locally at prices considerably below the lowest import figures. Raw materials, such as wire. i steel bare, steel sheets, and so on, can be purchased s advantageously both from Europe and from the I'nited ■= States, and manufactured here into the finished products, s: Equipment used in the manufacture of the nails, bolts jg and nuts is all automatic machinery identical to that used in similar factories abroad. In addition to nails, bolts and nuts, other products S which will be supplied by the new company arc mine Q dump cars, blowers, pumps, electrical motors, Diesel engines, assay equipment, and so on, the company having '= established agencies for a complete line of industrial a equipment in addition to its own manufactures. A large stock of such equipment is already on hand. e Actual production of nails, bolts and nuts will start o before the end of October, it was announced, while the company’s shops are already busy with orders for mine ■g cars and similar equipment. •5 Expansion of the company’s plans due to the unusual '£ opportunities existing for the sale of its products, has necessitated raising a limited amount of additional capital, tj; Its directors have authorized the sale of not more than P200.000 of its capital stock for this purpose. Financing of this issue is being handled by John C. Robb and Co., 218 National City Bank building, Munila ALREADY ESTABLISHED ---- Land bought and paid for. --- -Factory buildings erected and paid for. -----Machinery bought and paid for (and 90% installed.) ---- Construction shops already in operation. ---- Large volume of orders already on hand. -----Full production by the end of October. ---- Manufacturing basic materials for which there is a large and constant demand. —the only factory of its kind in the Philippines. For descriptive circular and full information, write, call or telephone JOHN C. ROBB & CO. Tel. 2-36-37 218 National City Bank Bldg. Manila, P. I. P. O. Box 1620 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 “Look Before You Leap” By D. B. Pushkin Metallurgical Engineer, Geologist and Engineers Syndicate, Inc. The attention of a large number of enterprising people in the Philippine Islands, at present, is attracted to mining ven tures. A great deal has been said about sampling and other wise investigating mineral deposits, but the majority still have a tendency at times, to jump at a property without con sideration, to the proper investigation, as to the average' grade', nature, and possible * extent of the * deposits to be * exploited. This statement is made' to help te> preserve * the * reputation e>f legitimate * mining, and it does not apply to the * honest and experienced mining engineers eir geologists. Some * people, it would appear, have * an uncanny ability to cut their sample's or te> sink test pits in high grade spots. One * e>r twee samples, e>r a pit showing high values serves the promoter anel owner apparently as sufficient proof that the * values throughout the * entire * eleposit are the * same. This is particularly true * with the * inexperienced prospective op erator e>r investor who, having e>n hand eme * sample * of a high value * and the assurance * of the promoter that the * property contains millions e>f tons e>f this deposit, usually takes his pencil anel paper and figures that lie can make * millions e>f pesos with comparatively little * investment. The * popular belief is that after values have * been found, further thorough sampling e>r any investigation as to the * proper method of treatment of the * ore * is simply waste * of time * and money. They install machin ery at once to treat the * eleposit and the * result, as a rule, is failure * of the * undertaking. There * are * many instance's when a reliable engineer, after considering the * geology and sampling of a property, reports a negative * result; the * owner or promoter, instead of dropping the property, attempts to further capitalize his prospect anel interests others to invest, under pretense that either the * property was not given due attention by the * engineer e>r somebody is trying to steal his property. In sampling placer gold the question e>f a proper method of determining gold in the * sample's, sometimes arises. Seime * unknown “prominent mining engineers” claim that the * golel in sands exists in some * “either” form that it is known tei an average * engineer or assayer, anel it will neit respond tei any known standard of treatment, such as fire * assay, etc., but will yield tei senile * “special” secret process. The * best thing tei do, when fire-assay deies not show any value, is tei leave the * property alone. Feir seime * unknown reason seime * investors have; a tendency tei absorb the * words of this unknown “prominent engineer”, regardless of the * reliability eif the * information, and many reliable assayers are * accused of submitting false reports as tei the * values of samples, when they really are not tei blame for them. The * parties that submit the samples, usually have * very faint, if any ielea, as tei the * methoel of securing and pre To All Mining Companies in the Philippines Tabacalera ( l( AI \ and CIGARETTES On sale in Manila and Throughout the provinces We have cigars and cigarettes of all grades and prices, and send price lists promptly to all mining companies on request. Telephone 2-42-40 Or Write to the Sales Department, Cigars and Cigarettes TAIACAItTA P. O. Box 143 Manila, P. I. TSEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 paring the samples for the laboratory, having little or no consideration as to the necessary precaution and time that are so essential in preparing duplicates. A reputable * owner or promoter of a property will gain much by having a reliable * engineer to investigate * the; depo sits before * trying to interest investors. This investiga tion should be * thorough, accurate, and must cover the * follow ing important factors: Location. Distance * and means of transportation from the market and point of supply. Reliability of existing means of transportation should be * determined. Local Geology must be * studied to g information that may lead to a conclusion to availability of minerals sought on commercial quantity. The * relation of the * exposed value's to tlu * quantity of assured mineral; the * probable * persistence * of the * values laterally and in depth; and the * best methods of exploitation should be * ascertained. Original Geologizing (including examination of surface * and underground exposures, character and position of wall rocks and of the * deposits themselves) should be considered, as it may throw light on the * value * of the * property with expenditure for exploitation, etc. General Topography and maps of mine property should be * carefully investigated and their reliability determined. They arc * to be * studied with the * purpose * of determining sqcli facts as position of boundary lines, possible * transportation, water supply, topography, outcrops, underground exposures, and developments in connection with exploration of the * property. Examination of placer-gold property should include * ad ditional information as to yardage * and value per cubic yard, OLD PRINCES STREET / ESTABLISHED PRIOR TO 1811 (Did (Original CHOICEST SCOTCH WHISKY I SOLE A6LNTS - TABACALERA (LIQUOR DI PI.) I 212 M. DE COMILLAS, MANILA TEL. 2-25-81 Branches:—In all principal cities and provinces amount of water available * and right to use same, and work ing season. If the results of preliminary field investigation are favor able, a thorough and systematic * testing of the ore in the * labo ratory should follow immediately. Properly taken samples and of such weight (50-1000 lbs.) as is necessary, must be submitted to the following tests: (a) Determination of quali tative * mineralogical composition; (b) Assay for content of valuable * minerals; (c) Determination of distribution cf val uable; minerals; (d) Microscopic determination of aggregation of valuable * minerals; (e) Inves tigation of the behavior of the * orc * in crushing and in grinding; (f) Determination of tentative * flow sheet for laboratory procedure, indicating the * fineness of material to be; treated, ma chines, and corresponding results; (g) Con struction of metallurgical balance; sheet of results of the; laboratory testing; (h) Confirma tion of laboratory tests by a larger continuous n on small commercial scale. When investigating placer gold, it is necesry to include; complete * data on the * physical characteristics of gold in the * gravel (sizing tests, etc.);shape; of particles; whether the * gold is free * or associated with other rare * metals or other mi nerals; whether it is bright or tarnished; screen analysis of the; gravel; determination of clay anel silt content, cementa tion, elepth of the * gravel, overburden, and possibility for tail ing disposal. Sluicing, tabling, golel-cloth recovery, cyanielation, amalgamation, anel flotation, anel their various com binations fe>r the * most efficient recovery of gold, should be * thoroughly investigatcel with their corresponding ce)sts. If properly carried e>ut, the * se * investigations will leave no doubt as te) the; me>st economical method of recovery. It is important te) emphasize * at this point, however, that the; samples brought te> the laboratory for testing, should be taken anel handled in such a way as te> represent the true characteristics e>f the * deposits te) be * investigated. Unless these * samples are * properly taken and handled, the entire laboratory work will be; of no value. Having em hand a complete set of date * , the; owner or pro moter will be * able * te> decide whether or not the property is worthy of further investigation. In the * affirmative case, the * prexspcctive; operator or investor should employ his own engineer se) that he * may check the sampling and methods of e>re * treatment. If there is uncertainty, in any way along the * course * of investigation, it would be * advisable then to ave still another engineer, or group of engineers, to check p the * entire work. My advice * tej would-be-mine-opcrators is “LOOK BEFORE YOU LEAP.” Little is te) be * gained anel much may be lost by diving headlong into the * turbid whirlpool of mining ven tures. Regardless how well one * knows the party that is offering the “best prospect in the country”, an extra measure of precaution may save consielerable * embarrassment as well as time; and money. The first and most logical thing to do in such a case; Is to inquire why the; so-called “best prospect in the country” has been idle; and, why, with se) many people looking for a chance to get rich, ne) one * has taken the property over and started operations earlier. Nine times out of ten the solution to this query is over-estimation of value and tonnage, or both. Base Metals . . . (Continued from page 20) If iron now being prospected in the Paracale district proves out, it will certainly find ready demand in Japan. In Zambales, field of the chromite craze, Amalgamated has contracted the output of three companies. Elsewhere it is looking up sulphur, claiming to have processes for preparing IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 it for market that will! permit of its shipment to distant markets abroad, or at least to Japan. Addition of Benguet Consolidated’s regular chromite shipments from its proved properties in Camarines and Zam bales rounds out the Philippine base metals situation at the moment, with mention of occasional manganese and copper shipments by other companies, and the opening of Lepanto’s new copper mill in the Mancayan district north of Baguio. As an assurance of regular shipments, Amalgamated reports that it chartered steamers some months ago; in its June report is mentioned the Sagres and the Leeping as having been pro cured by charter, vessels of about 2,700 tons each. War has upped charter rates since, and given owners the upper hand in effecting charters. As a matter of fact, war could play havoc with Philippine base metals, or if bottoms could be kept available, it could boom them with acute demand prices. Just now, bottoms are the great factor; the chartering of small freighters ahead of the undeclared war at Shanghai and throughout northern China was a prudent step by Amalgamated. It suffices for the time being, but what is around the corner by way of tonnage available to Philippine exporters is problematical—heavy ore shipments can’t be sustained unless tonnage is regularly available and at rates leaving miners and shippers reasonable profits. J. J. Rafferty’s company shipped the first Philippine manganese ore; it produces in Ilokos Norte and is still shipping —apparently from ample deposits. We hear from another deposit, of another company, that from which 5,000 tons of manganese ore is said to have been sold recently. This deposit is some distance from tidewater, delivery involves truck transportation, then shipment to Manila by interislander. Our general data are, and may be of value to some of our readers, that trucking ore costs about 10 centavos per ton per kilometer. This includes maintenance and depreciation costs, we are told, and is the true basis on which trucking year in and year out may be calculated. We are further told that interisland freight from Ilokos to Manila runs P4 to P4.20 per ton. In Manila, 46% manganese and not above 1/2 of 1% of phosphorus brings about P19 per ton. One expert, at least, estimates that mining and washing can be effected for not more than P2 per ton. Here then is P19 per ton for the ore in Manila, with 1 * 6.20 haulage and mining costs against it, with 10 centavos per kilometer added for the trucking charge from deposit to tidewater. A rough estimate may here be obtained of how much hauling can go into the cost of getting out manganese ore and still leave a profit for the mining company. But it is to be borne in mind that all the factors are variable. Thus if ocean freights rise and manganese prices do not rise propor tionately, lower Manila prices will be quoted. Trucking can be affected by taxes, on the trucks themselves, on the fuel and oil they consume, on the bridges they cross, and on the income of merchants selling them. It can also be affected by higher factory prices at Detroit, higher ocean freights on motor vehicles, and other factors. War news is therefore bearish in our base metals market. If charters rise, and they will surely rise exorbitantly in event of war, ships operating under cheaper charters will eventually have to charge on the basis of the dearer ones—it is always the current charge that use of a ship is actually worth. Should world want base metals from the Philippines during war as urgently as it required coconut oil from the Islands during the World war, all will be well: the higher the charges, the hifcher the prices procured for the metals. Prob ably what will come to pass is that highgrade metals will manage to reach markets, and lower grades will not be bought or shipped except during periods of peace on the high seas. Certainly we seem to have copper rich enough not only to bear any imaginable ocean rates, but. to attract buyers under any imaginable circumstances. Manganese is not so far along, speaking in general terms, nor is chromite, save for the Florannic deposit in Camarines. It is obvious, incidentally, that dealing in base metals in this territory is not a tyro’s game. Manila Stock Exchange 139-143 Juan Luna, Manila, P. I. TEL. 2-29-95 _ | DIRECTORY: MEMBER-HOUSES | ALDANESE & CORTES 116 Juan Luna Tel. 4-98-51 MACKAY & MCCORMICK 34 Escolta Tel. 2-15-57 C. ALDECOA & CO. Plaza Moraga Tel. 2-87-24 MARIA MARTINEZ & CO. 40-44 Rosario Tel. 2-22-78 ALEGRE & CO. .’4 Escolta Tel. 2-29-12 A. MONTINOLA & CO. 122 Juan Luna Tel. 4-93-98 H. E. BENNETT & CO. 53 Escolta Tel. 2-2.', 5/ MULCAHY, LITTON & CO. 30 Plaza Moraga Tel. 2-51-13 CAMAHORT & JIMENEZ 24 Escolta Tel. 2-24 81 L. R. NIELSON & CO. 601 Escolta Tel. 2-12 81 N. CONCEPCION & CO. 124 Niteva Tel. 2-89-66 MARINO OLONDRIZ Y CIA. Crystal Arcade Tel. 2 22-08 ELLIS, EDGAR & CO. 123 Juan Luna Tel. 2-29-6., OVEJERO & HALL 5. J. Wilson Bldg. Tel. 2-10-51 JOSE FELIX & CO. 36 Escolta Tel. 2-39-31 ANGEL PADILLA & CO. Burke Buiiding Tel. 2-18-34 GUTIERREZ, GUTTRIDGE & BRIM0 102-106 Nucva Tel. 2-35-22 LUIS PEREZ Y CIA. Samanillo Bldg. Tel. 2-59-55 HAIR & PICORNELL 5. J. Wilson Bldg. Tel. 2-18-44 E. SANTAMARIA & CO. S. J. Wilson Bldg. Tel. 2-33-85 HESS & ZEITLIN, INC. Crystal Arcade Tel. 2-32-74 LEO SCHNURMACHER, INC. El Ilogar Filipino Bldg. Tel. 2-37-16 MAX KUMMER & CO. 7th Floor S. J. Wilson Bldg. Tel. 2-15-26 SWAN, CULBERTSON & FRITZ S. J. Wilson Bldg. Tel. 2-38-34 S. E. LEVY & CO. Pilipinas Building Tel. 2-38-51 TRINIDAD, CELESTE & CO. 101 Echague Tel. 2-66-09 HEISE, LARSON & CO. 2,23-35 San Vicente Tel. 2-33-46 WOO, UY-TIOCO & NAFTALY 322 San Vicente Tel. 2-30-75 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Estimate For Finishing As Second Class Roads The Retnai Roads In Mindanao, The Completion of Which Sho (The Roads Are Listed Below In Tl Length of Roads to be p • completed Province Name of Roads _________________ _ __ T_____ Kilo- Estimated meters Cost 1 Lanao................................. .... Lanao-Zamboanga Interprovincial Road................................... (Kolambugan-Tubod) ........ 20 P 120,000.00 2 Occidental Misamis......... .... Oroquieta-Dapitan Interprovincial Road.................................. (Oroquicta-Zamboanga Boundary) .................. 15 105,000.00 3 Zamboanga....................... .... Dapitan-Oroquicta Interprovincial Road.................................. (Dapitan-Occidental Misamis Boundary) ................. 15 90,900. Ot 4 Occidental Misamis......... .... Pagadian-Misamis Interprovincial Road................................... (Tanzub-Zamboanga Boundary) ................. 16 55,000.0( 5 Zamboanga........................ .... Pagadian-Misamis Interprovincial Road................................... (Pagadian-Occidental Misamis Boundary) ................. 43 300,000.00 6 Oriental Misamis............. .... Oriental Misamis-Agusan Interprovincial Road...................... (Gingoog-Agusan Boundary) ................. 32 225,000.01 7 Lanao................................. .... Lanao-Zamboanga Interprovincial Road................................... (Tubod-Zamboanga Boundary) ................. 31 180,000.00 I 8 Agusan............................... .... Agusan-Surigao Interprovincial Road....................................... (Agusan-Surigao Boundary) ................. 16 100,000.00 Total........................ ................. 188 P 1,175,000.00 REMARKS It will be noted in the above tabulation that if the allot ments therein indicated are granted, as proposed, projects Nos. 1, 2, 3 and 4 can be completed and opened to traffic on or before the end of June 1938, or approximately one year from this date; while projects Nos. 5, 6, 7 and 8 can be completed by the end of June 1939, or about two (2) years from this date. In the estimate shown in the 5th column we have already excluded the work that can be accomplished with the funds now on hand for each project. EXPLANATORY NOTES FOR EACH PROJECT Project No. 1. This project is a continuation of the completed second class section of the Lanao-Zamboanga Interprovincial Road now passable as far as Kolambugan. It is proposed to extend the road as far as the barrio of Tubod approximately 20 kilometers south of Kolambugan. At this point it is contemplated to establish an interprovincial motor ferry similar to the ferries on the Cotabato River, which will be able to carry one truck and two automobiles across to Tangub. The width at the proposed crossing is about 1-1/2 kilometers, where the sea is quiet throughout the year, and an open ferry can be operated just like in a river. This type of ferry can be designed and constructed locally at a cost of not more than P6,000.00. It will be noted from the above tabulation that the com pletion of the road as far as Tubod, province of Lanao, will take place at the same time as the Oroquicta-Zamboanga boundary and the Dapitan-Occidental Misamis boundary roads, and if this type of ferry could be operated at this crossing, through traffic would run next year over these in terprovincial roads clear from Manukan of northern Zam boanga to the rest of the provinces in Mindanao, with the exception of Surigao and Agusan, which will be completed in the year following. Furthermore, the construction of this ferry is considered indispensable even after the road around Pangil Bay is connected with Tangub, for the reason that the distance from Tubod to Tangub over the road is approximate ly 65 kilometers. The completion of the road to Tubod in the course of one year will greatly facilitate the movement of homeseekers who are coming in large number to the Kapatagan Plain, province of. Lanao. This plain has an extension of 45,000 hectares, and a survey party of the Bureau of Lands has been stationed at Lala to make subdivision surveys, and it is understood that over 4,000 lots have already been surveyed, of which 2,000 have been released to homeseekers. It would be noted that the majority of the homeseekers come from Cebu, Bohol and Oriental Negros. Project No. 2. There remains to be opened only 15 kilometers of this road project in order to connect Oroquieta with the Zamboanga boundary. In spite of the lack of trans portation facilities, the homeseekers from the Visayas have occupied practically all agricultural lands available on both sides of the road, and in order to help these people market their products, it is most important that this road be completed as soon as practicable. Project No. 3. This project is the Zamboanga section of the Dapitan-Oroquicta interprovincial road, of which also 15 kilometers only remain to be opened. Attention is invited to the fact that this section crosses the Ilaya and Tolosa Valleys where thousands of hectares of agricultural lands suitable to the production of hemp, coconuts, lanzones, mangostan, citrus, cacao, coffee; and other fruit trees, corn and highland rice, are rapidly being occupied by homeseekers, also mostly from the Visayas. This road should be com pleted at the same time as the Occidental Misamis section of this interprovincial road. Project No. 4. The Occidental Misamis section of this interprovincial road will be completed as second class with the funds on hand as far as Bolinsong, a barrio in the southern part of Tangub, leaving thereby 16 kilometers to construct as far as the Zamboanga boundary. Due to lack of transpor tation facilities, the flow of homeseekers through this route is slow and the occupation of the extensive agricultural areas in the districts of Cebuano Barracks, Tukuran, Labangan, and Pagadian is very much delayed due to the fact that imSeptember, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 tnaining Connecting Links of Important Interprovincial Should Take Precedence Over Other Road Projects The Order of Their Importance1 be Proposed Discretionan: Gasoline and Automobile Fund Allotments i mated Cost 2nd Quarter 1937 3rd Quarter 1937 4th Quarter 1937 1st Quarter 1938 2nd Quarter 1938 3rd Quarter 1938 4th Quarter 1938 1st Quarter 1939 000.00 I * 30,000.00 P 30,000.00 P 30,000.00 P 30,000.00 — — — — 000.00 30,000.00 30,000.00 25,000.00 20,000.00 —— ---- -000.00 25,000.00 25,000.00 20,000.00 20,000.00 . —— — 000.00 10,000.00 10,000.00 15,000.00 20,000.00 _ . — 000.00 15,000.00 15,000.00 15,000.00 15,000.00 P 60,000.00 P 60,000.00 P 55,000.00 P 65,000.00 000.00 15,000.00 15,000.00 15,000.00 15,000.00 30,000.00 35,000.00 40,000.00 60,000.00 000.00 1 15,000.00 15,000.00 15,000.00 15,000.00 40,000.00 40,000.00 40,000.00 — 000.00 10,000.00 10,000.00 15,000.00 15,000.00 20,000.00 15,000.00 15,000.00 — 000.00 P150.000.00 P150,000.00 P150,000.00 P150,000.00 P150,000.00 P150,000.00 P150,000.00 P125,000.00 migrants desiring to settle in said districts have to go first by interisland steamers to Cotabato, and from there by motor Dalamas to Labangan and Pagadian. The opening of this road will greatly facilitate the movement of the homeseekers. Project No. 5. Approximately 27 kilometers of the Zam boanga section of this interprovincial road will be opened to traffic this year with the funds now available, leaving 43 kilometers yet to be constructed in order to connect with the Occidental Misamis boundary. This road traverses a plain containing an area of approximately 87,000 hectares which have been released as agricultural lands by the Bureau of Forestry. In spite of the great difficulties of transportation, over 6,000 Cebuanos have settled on the plateau now known as the Cebuano Barracks. A large Ilocano barrio has also been established in the lowlands of Labangan and Pagadian, and they are now producing two crops of rice for export every year. If this route can be completed in two years as proposed, great progress will be made by the new municipality of Paga dian which comprises the old municipal districts of Labangan, Takuran, Cebuano Barracks and Dinas. There are other extensive plains between Dinas and Margosatubig which can accommodate subsequent homeseekers, and their settlement will be greatly accelerated by the early opening of the Zam boanga-Occidental Misamis Interprovincial Road. Project No. 6. The completion of the remaining 32 kilometers on the Oriental Misamis side of the Misamis-Agusan Interprovincial Road will connect the road system of Agusan with the road system of Oriental Misamis, and, con sequently, with the other provinces of Mindanao, with the exception of the Zamboanga Peninsula. The remaining 4 kilometers on the Agusan side of this road will be completed with the funds now on hand. It should be stated in this connection that a number of immigrants to Mindanao come from the thickly populated island of Siquijor and the com pletion of this road will greatly facilitate their travel to any point where they may want to settle in this region. Project No. 7. This project is a continuation of the Lanao-Zamboanga Interprovincial road, which starts from the Barrio of Tubod, the terminal of Project No. 1 described above. The opening of this road will greatly facilitate the development of the 45,000 hectares of agricultural lands mentioned in said Project No. 1. Project No. 8. The Surigao side of this project can be completed before the end of the year with the funds now on hand, and the remaining section of 16 kilometers on the Agusan side should be completed as quickly as possible in order to connect the road system of Surigao with that of Agusan, and, consequently, with the rest of Mindanao. This will eliminate the inconvenience of trips by launches across Lake Mainit between Surigao and Agusan. GENERAL REMARKS We, the undersigned, respectfully request approval of the foregoing program of road construction, and the financing of same from the discretionary portion of the Gasoline and Motor Vehicle Funds, which, if carried out as herein proposed, can be completed within two years at the latest. The early realization of this program will mean the prompt establish ment of social, commercial and educational intercourse among all the provinces in the Island of Mindanao, which is sure to become an important factor for the rapid settlement and development of said Island. Furthermore, the road systems therein contemplated, when completed, will serve as an avenue of immigration for the excess population of the crowded prov inces in the Ilocandia and Visiyan Islands. Last, but not least, the prompt completion of said road system will contri bute largely to the early improvement of peace and order in this region. Very respectfully submitted. (Sgd.) M. Kasilag, Commissioner for Mindanao and Sulu. (Sgd.) Jose Lozada’ Division Engineer Jor Mindanao and District Engineer Jor Lanao. 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Reasons Why . . . (Continued front page Id) the prospecting and development work; the public learned once more, as fading hope depress ed the market, that even the experts err about gold. In between somewhere, there had been the Bieol bubble and its tragic bursting. In the instance of these companies, scores of men had been convinced, and by the magic of hope had convinced themselves, that here was a district where the main mining tool would be the steam shovel. It all turned out to be error, INTERNATIONAL HARVESTER DIESEL |rac|rac|or Built by the World’s Largest Tractor Builder BACKED BY COMPLETE STOCK OF REPLACEMENT PARTS International Harvester Company OF PHILIPPINES Tel. 2-22-85 154 M. de Comillas Manila Branches: ILOILO — BACOLOD — CEBU — DAVAO — LEGASPI — BAGUIO credulity and cupidity had burned their avid fingers once again. Meantime, a sort of minor accompaniment to the booming obligato blared out over the busy Escolta, the tortoise-paced growth of new mines of productive value was regularly report ed in the press. This brought realization of the hard task it is to make a mine pay dividends even when all the primary factors have been prudently discounted and have turned out favor able. And it had the effect of depressing the market: mining proved to be an art, though not among the seven, and a rtislong and time is fleetingThe Product of Pioneers In Tractor Building With Over a Century of Manufacturing Activity INTERNATIONAL HARVESTER DIESEL TracTracTors and Power Units are widely used by well-established manufacturers to power road machinery, shovels, lighting plants, air compressors and many other types of equipment. Also, when so much was disheartening in companies known to .be well administrated, courage was lost respecting all the many others obviously in the hands of men lacking experience to weight their judgment. 'Phis too depressed the market. As for ourselves, we are almost ready to say that more than half the sets of directors and their engineers would fail with the task of keeping mines well developed ahead of requirements, keeping mills at capacity and dividends regular, even with the ore to begin with well blocked out and the high commercial value ascertained. Something of this the share buying public has come to believe, and it has depressed the market. Because it is a sound company well managed, Mineral Resources can illustrate the point re specting time—-the lapse of time that acts to depress a stock in the market. This month the company's first mill comes into operation, capa city 150 tons a day, on its Marinduque property, handling an orc yielding lead, zinc, and gold. We have spoken of this before, inviting atten tion to the fact that this company organized in November 1933; four years have passed, and no untoward circumstances intervened, and only now has production been reached. Such realities have taken the wind out of many a bubble on the Manila board. So much so that it falls out that shares in the most promising new companies in the Surigao district, for ex ample, drag down toward par from quotations five and six times as much only a few months ago— ano this at a time the mills are going in. Bad titles have depressed the market. Mining claims under patent in the Philippines number some 250 only, but claims registered under the Civil Government Act of 1902 in the rush preceding the advent of the Commonwealth number many thousands; others, perhaps hun dreds, were, like the Balatoe claim now figuring in a test case pending decision in the Common wealth supreme court, ready for patent but the patents, though applied for, had not been issued prior to the taking effect of the Commonwealth constitution and its nationalization of mineral resources. The government could not keep abreast of the avalanche of registration applications, repeated in frantic detail after the advent of the Com monwealth in order that priority might not lapse under the stipulations of the constitu tion. Nor could the mines bureau cope with the countless technical examinations of new properties it should have made. Instead, it was' necessary to accept at face value reports of licensed mining engineers in private practice} employed by the companies seeking approval of their properties in order that capital might be raised by sale of shares and that claimholders usually the organizers of the companies, could value in the claims at handsome prices. To this sheer wildcatting, append the fact that it was rampant before the Securities & Exchange Com mission was created, and it continued unabated while the commission was squaring away foraction. President Quezon himself has summarized the denouement, the only possible one, of these conditions. However, hindsight sees clearly where foresight has been myopic. The people believed that here was a great and precious natural resource, gold, that because they were farmci's they had left neglected; and they also believed that they might mine successfully (Please turn to page 30) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 Balatoc and Benguet Mines Casual Studies of These/Developed Properties Balatoc is the Philippines’ largest gold mine on a basis of current mill production, mill runs having averaged 1217 tons a day during the first half of this year. This mine is Benguet Consolidated’s twin, at Baguio. It has paid divi dends since 1929. Its gross return from 220,236 tons of ore treated during the first half of this year was 1 * 6,470,454. This included silver at mint value. It is P29.38 per ton of ore treated. At the old gold price of §20.67 an ounce, the orc would have averaged 1 * 18.75 a ton, with the silver counted at mint prices. At P70 an ounce for gold and silver at mint price, Balatoc realized a net profit of 1 * 3,050,509 during the first half of the year. The mine is well established in all departments; during the hall’year’s operations ore reserves with slightly higher average values were increased 76,497 tons. Positive and probable ore reserves stood on July 1, at 1,333,968 tons at P17.76 a ton, silver disregarded and gold counted at S20.67 an ounce, a total of 1 * 23,698,214; but if at P70 an ounce, then a total of P40,127,598. Against this you have two interesting statements in the semiannual report: “The main ore bodies of the mine are being rapidly depleted . . . more and more of the tonnage mined originates in narrow split veins around the fringes of the main ore shoots, we must expect increased mining costs unless offset by the improved mining methods now being instituted. “. . . . In general we believe that your company has a distinctly favorable outlook at this time. An increasing ore reserve with higher average value indicates that the mine is till growing and has not yet reached the peak of its possibil ities, in spite of the depletion of the main ore bodies; the mine is now so organized that it can easily supply all demands of the mill at a minimum cost per ton; mill extraction is con stantly improving.” Casual inquiry into this situation begins of course with the query as to what Balatoc could now do with gold at the old price of §20.67 an ounce. The halfyear’s gross output with small supplementary profits brought 1 * 6,476,920 of which 1 * 3,050,509 was net gain. Actual expenses were 1 * 3,426,110 including 1 * 50,000 bonus to the management, 1 * 300,162 for depreciation, and 1 * 82,407 for ore depletion. If the ore treated, 220,236 tons, has sold on the basis of §20.67 an ounce for gold recovered and the silver at mint prices, bullion returns would have been 1 * 18.75 a ton or a total of 1 * 4,134,424. Taxes during the halfyear were * 1 * 527,167; as this charge is chiefly 5% on the bullion income and would be accordingly lower at the old gold price of §20.67 an ounce, it appears that Balatoc could, as it long actually did, operate profitably at the old gold price while its millheads remained at their existing average level and other factors remained about what they now are. Of course, the first fellow you meet on the Escolta knows that the old gold price will never come back, and so no worry on that score; but the next fellow you meet expects the old (Please turn to page 32) Modem gnjlnel fyot Modem All IB ja builds engines for every gas and liquid fuel VV kA O —each the most economical in its class— w ™ “ each the product of thirty years of engineer ing experience in design and manufacture and each built to perform a specific duty for a particular industry. Today, the Waukesha Motor Company manufactures forty-two different models of engines burning artificial or natural gas, high or low octane petrols, paraffine, alcohol and the generally available modem high-speed diesel-oil fuels, to serve the power needs of thirty-four different industries. The ratings range from 12 to 325 H.P. WAUKESHA-HESSELMAN diesel-oil engines—spark-ignition, low compression type—are reducing bus fuel costs as much as 50% to 60%—increasing mileage 20% to 40%. One bus company reports a saving of U. S. $100.00 per bus per month by using Waukesha-Hesselman diesel-fuel power instead of gasoline. The engine is easy to start under all weather conditions; maintenance costs are low; the Hesselman cycle is readily understood by anyone familiar with gasoline engine operation. For industrial and bus, truck, tractor, rail-car uses, fuel oil power finds its most dependable and economical application in the Zx? performance of the Waukesha-Hesselman Spark nr Ignition Engine. PETROL - LJ The Earnshaws Docks & Honolulu Iron Works ll llAFni Second Street. Port Area. Manila. P. 1. Branch at Bacolod. Occ. Nee. 4—__3l ” MOTOR SERVICE, INC. B 1W 408 Rizdal Ave. Manila. P. 1. 1 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Industrial Metals Prices Current (By The United Press) NEW YORK, Sept. 15.—Continued brisk activity has benefited non-ferrous metal prices during the past month and brought steady price increases on the American markets, according to the monthly averages of the magazine Metal and Mineral Markets. There has been considerable interest in copper and some observers anticipate a boost in the domestic price late in the fall. The domestic refinery price has held .steady at 13.775 cents but the foreign market was stimulated during August on rumors of an impending advance in price. The average export price during August was about 1/10 of a cent above that which prevailed in July. Domestic copper sales have been averaging about 30,000 tons a week for several weeks. Available figures for the past year show that the steady increase in copper production still con tinues. Production in the United States during the first six months of this year totaled 510,319 short tons as compared to 346,698 tons in the same period of 1936. The market feels, however, that consumption has been gaining at about the same ratio as production. Continued demand for lead in excess of offerings by producers strengthened the market in August, and producers on Aug. 5 raised the price 1/4 cent. Buying was in good volume, averaging around 11,000 tons per week. Publication of reports that zinc stocks had again declined in an already bare market, caused renewed demand for the metal. This sudden wave of buying in mid-August resulted in some business at 7-1/4 cent, St. Louis, but most transac tions continued at the seven cent level until late in the month when transactions brought around 7-1/4 cents regularly. Total stocks of zinc of all grades at the end of July were placed at 13,561 tons, which compares with 14,081 tons on the month previous and 88,517 tons in July of 1936. Production of zinc in the United States in the first seven months of 1937 totaled 337,771 tons, against 298,578 tons in the same period a year ago. As much as 15,000 tons of foreign zinc was sold to domestic buyers during August. Most of it was for September-October delivery. The domestic tin market was fairly active, reflecting improvement at Lon don. This interest became less apparent in the latter part of the month and prices for the month averaged about 1/4 cent above the July average. Freer offerings in London brought a sharp reduction in quicksilver and the price at New York was reduced $2.50 per flask. The chrome market has found a steady source of buyers during the past several months. Imports of chrome ore into the United States for the first half of this year amounted to 221,359 tons, valued at $3,073,060. By Hillier KrieghbaumI (United Press Staff Correspondent) WASHINGTON—Japan can produce in adequate quantity only one of five basic metals needed for war materials, a study by the national resources com mittee reveals. It is copper, production of which equals apparent consumption, while pig iron, lead, zinc and aluminum must be imported in large quantities. As the report was published, Senator H. Styles Bridges, Republican, New Hampshire, asked a senate military affairs sub-committec to investigate the scrap steel resources of the United States “so that Congress can pass laws and destroy this traffic in death” by banning scrap steel exports. The national resources committee study for 1932, a typical year, showed copper production in Japan at 76,000 metric tons while apparent consumption was only 75,000 tons. Japanese facto ries imported 2,000 tons of copper ore while 3,000 tons of finished products are sent to Asia and Europe. China was listed as a “minor producer” of copper, and statistics were not in cluded in the study. In pig iron, Japan is dependent for imports from—of all nations—China. Domestic pig iron production in Japan was set at 1,200,000 metric tons while the nations consumption was estimated at 1,600,000 tons. Of the 400,000 tons imported by Japan, approximately 300,000 tons in 1932 came from China while 100,000 tons came from India. Japan was heavily dependent on foreign nations for its lead. Domestic production was only 4,000 metric tons while consumption was placed at 61,000 tons. Of the 57,000 tons imported, Canada and the United States supplied the bulk. Australia and Mexico were other contributors. In zinc, Japan produced only 10,000 metric tons while consumption was 50,000 tons. Canada and Australia were leading nations selling metal to Japan while Australia, China and the Soviet Union sold the Nipponese zinc in the form of metal. All of Japan’s aluminum consumption of 8,000 tons was imported from Europe, Canada and the United States. (Please turn to page 31) AVERAGE METAL PRICES FOR AUGUST, 1937 (By United Press) Copper Gain or Loss from Aug. Electrolytic, Domestic, refinery.......... 13.775 Unchanged Electrolytic, Export, refinery............. 13.926 4-0.109 London, Standard Spot....................... 57.143 -j-0.731 London, Electrolytic, bid.................... 63.595 -j-0.788 Lead New York........................................................6.452 4-0.452 St. Louis................................................ 6.302 4-0.452 London, Spot........................................ 22.606 —1.326 London, Forward.................................. 22.670 —1.033 Silver and Sterling Exchange Silver, New York, per oz.................... 44.750 Unchanged Silver, London, pence per oz.............. 19.848 —0.136 Sterling Exchange, “checks”............... 498.043 4-1.461 Zinc St. Louis................................................ 7.192 4-0.269 London, Spot......................................... 24.140 4-1.572 London, Forward.................................. 24.290 4-1.597 Tin New York, Straits................................ 59.465 4-0.220 London, Standard Spot....................... 264.595 4-1.055 Other Metals Gold, per oz., U. S. price................... $35,000 Unchanged Quicksilver, per flask........................... $91,423 —2.481 Antimony, domestic............................. 15.327 4-0.524 Platinum, refined, per oz..................... S51.GC0 -j-0.885 Cadmium................................................ 142.500 Unchanged Aluminum, 994-% per cent................ 20.000 Unchanged Chromium Chromium, 97%, per pound............... 85.000 Unchanged Manga nese Ore 52 to 55%, c.i.f. Atlantic ports......... 40.000 Unchanged (Domestic quotations, unless otherwise stated, are in cents per pound. London averages for copper, lead, zinc and tin arc in pounds sterling per long ton. Sterling exchange, checks, is in cents. New York silver is for foreign metal.) September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 The Monitor” on Balatoc’s Patent Case Cl (Special to The Christian Science Monitor) MANILA, P. I.—A legal battle now being waged in the Supreme Court of the Common wealth of the Philippines, over the title-patent to 22 acres on a scraggy precipitous mountain side high in the Igorotc country, may well be the turning point in American history in the Far East. The mining industry of the world, which has looked to the Philippines as a promising field of endeavor, is anxiously awaiting the decision. Commercial organizations and all foreign com panies which have invested millions in the Islands recognize that should the patent be refused on those rocky crags, title to property and the validity of contracts in the Islands may be victims of a legal revolution the outcome of which cannot lie surmised. In essence the case will determine whether in the eyes of the Commonwealth Government, American law ceased to operate with the estab lishment of the Commonwealth on Nov. 15, 1935, despite the fact that independence is not provided for before July 4, 1946. When the Commonwealth Government was established on Nov. 15, 1935, the United States transferred to it authority to administer and govern the Islands. The United States retained control of foreign affairs and the National Assembly of the Philippines was not empowered to pass laws affecting currency, coinage, im ports, exports or immigration without the approval of the President of the United States. During the Commonwealth period the sover eign power of the United States is represented by the High Commissioner. He is appointed by the President and is his personal representative in the Philippines. This form of government is to continue until July 4, 1946, at which time the Philippines are to become independent. With this in mind, the case involving the pin-point on the map of the Philippines, repre sented by the 22 acres, is being watched by all countries whose nationals have interests at stake in the Far East. The Balatoc Mining Company, Inc., one of the two eminently successful gold companies operated by the pioneering Judge John W. Haussermann, owns a group of claims which were staked 22 years ago in accordance with an Act of Congress of 1902 which gave the Governor General of the Philippines authority to issue titles to mining claims staked on public lands. The Balatoc Mining Company complied with the provisions of the law, performed the required assessment work, and developed the claims into a part of the now phenomenally successful mine. In 1932 the company made application for patent survey as required by law. 'I bis was completed and expenses collected by the Director of Lands. In 1933, all requirementshaving been completed, application was filed for patent. From 1934 repeated requests were made for the issuance of the desired document, but none was forthcoming prior to the establishment of the Commonwealth Government. , No Further Patents With the establishment of the Common wealth under the new Philippine Constitution, the Balatoc Mining Company was informed that no further patents would be issued. No less a personage than President Quezon wrote, “I am positive that the Constitutional Assembly (in the framing of the Constitution) wanted to reserve to the State the ownership of all mines of every kind in the Philippines and that they would have given retroactive effect to that pro vision, even in the case of the mines which have been patented, had they been sure that this could be done without violating well known and accepted principles and rules regarding property and vested rights in a society, gen erally known as capitalistic.” The Solicitor General of the Commonwealth in this test case is attempting to obtain the legal approval of the Supreme Court of the Islands to give the Commonwealth Government author ity to repossess all mining claims, possession to which was given by contract with the United States of America. He contends that the Commonwealth Constitution gives the Filipino government authority over natural resources and that claims acquired under American jurisdic tion have no title under the new government. In other words, should the Manila Supreme Court decide against the Balatoc Mining Com pany it will establish that mining contracts made in the 37 years of American administra tion of the Philippines can be declared null and void under the Constitution of the Common wealth. Business fears the short step which IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 August 1937 Gold Production Name of Mining Companies Ambassador Gold................ Antainok Goldfields............ Baguio Gold......................... Balatoc.................................. Benguet Consolidated......... Benguet Exploration........... Big Wedge........................... Cal Horr............................... Coco Grove.......................... Demonstration Gold............ East Mindanao.................... Gold Creek........................... Ipo Gold............................... Itogon................................... I. X. L.................................. Masbatc Consolidated........ Mindanao Mother Lode. .. North Mindanao................. Northern Mining and Dev. *Royal Paracale................... Salacot................................... San Mauricio........................ Suyoc Consolidated............. Tambis.................................. Twin Rivers......................... United Paracale................... Totals.................................... ?4,279,452.30 P3,874,998.06 July 1937 Production................. 1 * 4,182,996.51 *IXL Argos before. will declare any contract prior to Nov. 15, 1935, cancelled. The momentous decision which the local court must make will. clearly establish the national thought of the Filipino toward Amer ica. If it decides against Judge Haussermann it will lend its legal approval to the expressed will of the Philippine Constitution which de clares that all natural resources shall belong to the States, whether they be privately owned or not. Cardinal Pillar If the decision is against the Number One American miner of the Philippines, foreign capital will be extremely wary of investment in the Archipelago. Yet the nationalization of resources is one of the cardinal pillars of Manuel Quezon’s program, and the local Su preme Court stands at the cross roads. If the decision of the court requires that a patent be given to these claims, the Common wealth Government will have to adopt a new policy toward nationalistic development of its resources of the Islands and toward Americans and foreigners. In the eyes of Americans and foreigners alike, and affirmative decision will lx; a guarantee to contracts in the Archipelago and will do much to improve American pres tige in the Far East. However, should the decision be adverse, it is a foregone conclusion that the case will be taken directly to the United States Supreme Court which still has jurisdiction over all cases under the American flag. The effect of an adverse decision and an appeal to the United States Supreme Court upon the attitude of he American poeple toward Filipino independence is a point not being over looked by local Manila attorneys. American August 1937_____ Tons Milled Value 320 1 * 1,788.96 20,270 403,816.56 5,816 109,920.80 37,997 1,165,738.66 25,744 791,075.80 3,170 21,442.82 3,269 142,204.28 5,866 115,731.38 No Production 7,445 133,667.50 3,324 46,118.38 1,766.28 30,890.34 5,414 53,665.50 24,810 297,639.24 7,408 171,696.07 27,889 254,415.04 August 193G Tons Milled Value 21,874 1 * 533,572.00 5,465 89,095.90 38,109 989,456.18 25,012 725,448.76 3,072 26,567.00 3,195 120,727.48 5,853 97,833.98 -------- 101,562.24 6,480 103,287.00 4,599 43,483.99 15,470 207,422.81 6,306 126,505.00 37,709 189,821.00 8,680.00 924.53 37,835.89 35,467.00 95,064.40 128,778.76 7,805.40 34,155.81 190,929.18 503 5,057 4,801 5,867 29,300 yds. 8,962 6,378.04 20,799.11 35,423.00 207,246.77 123,324.58 10,873.10 116,170.12 sentiment is now favorable toward the Filipino and his nationalistic aspirations. But it could turn overnight. And it probably would if the validity of 37 years of American contracts were destroyed in the Philippines. This was front-page news in the Christian Science Monitor, Boston, Monday, July 26, from its Manila correspondent. Reasons Why . . . (Continued from page 26) because they had farmed successfully, though it did not follow. It further seems to have been a general supposition that places to mine could be selected much as fields for hemp or cane, and like a crop, cultivated into produc tion. Widespread failure, heaped upon the calamity of dubious titles, depressed the market. The final situation is such that it is hard to define where honest purpose was abandoned and roguery began. Audacity, in our view, was the most common fault: the audacity of groups of amateur incorporators whose over wrought imaginations beheld pots of gold at the foot of every rainbow in the mountains, who also took it for granted that making a paying mine out of a deposit found to be of commercial value was an easy task, whereas it is one of the most exacting responsibilities in the industrial world—more so in the Philip pines than elsewhere. How claims overlapped was fantastic, and how these conflicting rights were defended be came gruesome as war—contending companies hiring gangs of thugs to patrol their lines; and then it was to turn out, in the end, that what everyone was fighting over was not even a good mess of pottage, but in fact, as ground to mine for gold, nothing at all. This depressed the market, not merely exhausting capital but dis sipating illusion and leaving bitterness in its stead. Our personal experience was that a year’s vacation, just staying home, the radio and telephone cut off, would have been the most profitable employment wc could have sought; we worked right on, as everyone did, pandering to illusions of bonanza gains, and into the maw of these avid musings went our earnings and savings. While the frensy continued, and let us say that it was universal to the Islands, the Escolta took the fullest advantage of its every possibility. The optimum was probably reached on the day one house sold frankly for 50 centavos an edition of stock it had taken up at par 10 centavos: subscribers boasted of their luck, or the special pull they had, that had enabled them to buy these shares at 50 centavos. Meantime the penny-share trick had been popularized, taking in clerks and day laborers who got to preferring mining shares to jueteng or the sweepstakes as a device for gambling. When a new’ company organized, whole schools of these little customers overwhelmed the officers with eagerness to gel in on the ground floor. Board averages were rising; no one asked much about what property was to be exploited or about prospectors’ assays and reports, or who was behind the project—all that was asked was the chance to subscribe and make a first payment, the receipt for which could be sold the next day at some fantastic premium. When this played out, as eventually it had to do, sharp depression of the market followed: all the little holders rushed in to sell, and since the real worth of a property had never concern ed them, to sell at any price that would salvage some of their gambling money. Nothing asso ciated with the properties involved precipitated this panic, to speak in general terms of accuracy, and nothing, of course, associated with the administration of the mining, the corporation, and the blue-sky laws, because the government had not had time to overtake the situation— and has not had time to do this herculean task yet. Perhaps the start of it was Morgenthau’s sterilization of superfluous bullion he was buying from abroad, soon followed by demands from interested sources (the gold-share speculator wouldn’t know’ that) that gold be put back to 320.67 an ounce. But its real beginning was President Quezon’s proposal to cut the Commonwealth period short, since this scared the big fellows who played the board with sugar profits. This depressed the market. Meantime, some money from China had come into the Philip pine market in mining speculations, but had soon grown chary of the situation and had withdrawn again. Talk of how much London was going to interest herself here had also flourished, then subsided; and nothing develop ed in the situation to get London really started here, or get China to take a new hand in the game. Morever, nothing will: .for whatever mining that may develop here, the Islands have capital enough of their own — the field is not grand enough for European players, and any September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 ('hina money that comes across the channel will be fright money feeing the wrath of .Japan. When panic overtook the small fry and they began se.ling in onier to salvage some, if only a part, of their gambling funds, smart operators began cleaning up by selling short. This sinis ter activity, which nothing can prevent, depress ed the market artificially and still continues as a depressing influence on trading. When folk would buy freely, there were sly schemes prac ticed to make them buy high; as soon as their main wish was to sell, they were whipsawed with other sly schemes to compel them to sell low and provide the smart boys the customary neat profit.. The same eloquence that inflated board values was equally effective, when advan tage lay that way, in deflating them. Besides, of course, at the necessary moment, even big traders operating on margin had to sacrifice and cover or be sold out. It was prompt and ruthless liquidation, great pickings for the fellow with nerve enough to sell short. It added to the depression of the mraket. This may be sufficient summarization of reasons why the mining-shares market in Ma nila is depressed. More pertinent is the ques tion, when will it revive. The answer is, when it turns more thoroughly respectable; when it gets to be a sort, of gentle men’s club with a set of ethics and careful rules governing applicants for membership. That is to say, when new ventures come authen tically vouched for by the government; that to the property they would lease there are no adverse claimants, that, the ascertained values in th:s property are so much, certified by the mines bureau, and that upon these data, the Commission has authorized stock to be offered the public. But revive, have we said? No. not revive to boom proportions of any sort, but merely, revive by slow convalescence to the point nonspecultive levels. Thousands and thousands of former sardine-size plungers in the penny stocks will never interest themselves in mining shares again. The animation of their presence in the market will never return, and hence speculation will never soar to the dizzy heights it reached last year; for all of which, thank goodness. After all, the Philippines are a small country, comparatively. Every Manila activity is even tually whittled down to proportions the country is capable of utilizing. In the early ”20s it. was coconut-oil manufacturing, ten years later it was sugar-milling, and now it is mining and the vending of mining shares. But just think of a country economically resilient enough to recover from such spells of madness, and in short order at that! However often the Philippines hit the canvas, it is never for the count, and they always spring up smiling. Nevertheless, this time there is call for fair-dealing. Would not prohi bition of low par-value stocks be corrective, and would it not make Philippine stocks more attractive abroad? The speculation went en tirely too far, and not. stopping at the raising of sufficient capital for new ventures, got. en tirely out of hand because of the low par-value stocks; and besides that, it left the little play ers in these stocks strappped. Why not P."> as a minimum par value for shares, to get folk to buy them as potential investments and not for avid speculation? Too high, because specula tion within bounds is always desirable? Per haps so; all right then, Pl. If for us the boom had one lesson, this is it. —IE. R. Industrial Metals Prices . . . (Continuedfrom page 28) In supporting; his resolution, Bridges said that during the past six months more scrap steel had been sent, out of the United States than in any previous full year. “This is an export of basic material for war’’ Bridges told the committee, “and over 50 per cent of this export is going to one single foreign country. We hold ourselves up before the world as a peace loving nation, but how on the one hand can we nourish the dove of peace and on the other blindly feed the gods of war?’’ “DEUTZ” DIESEL ELECTRIC SETS V-Cog Belt Driven Type Four-Cycle Horizontal Engines 5-80 H. P. A.C. or D.C., 3-50 KW. Reliable Power for Town Electric Plants, Farms, Theatres, Etc. PHILIPPINE ENGINEERING CORPORATION Cebu — Bacolod — MANILA — Iloilo — Cotabato AN AMERICAN MILL SUPER INTENDENT, now located in Me xico, with 13 years’ experience, the past five years as mill superinten dent with a mining company operating in Mexico, wants a connection in a similar capacity or as flotation plant operator with a reputable Philippine mining com pany. Ago, 32; married; speaks and writes Spanish fluently; can leave Mexico on short notice if necessary. Address, James C. Kennedy, 4a Calle de Guerrero No. 27, Oaxaca, Oaxaca, Mexico. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 32 THE AMERICAN CHAMBER Balatoc & Benguet Mines (Continued from page 27) price back at any time, and without overnight warning, and no one really knows—not even Henry Morgenthau or Montagu Norman. But if the old price did come back, Balatoc, we see, could weather it. Of its surplus of F2,192,410 chiefly in form of supplies, mine openings, mining and milling equip ment, 1 * 2,000,000 is being taken up in another stock dividend making the capital 1 * 6,000,000 at par Fl a share. Roughly, as the mine is running now, at the old gold price of $20.67 an ounce, net of more than 1 * 2,000,000 a year could be earned. Further casual study of such a sound mine is its gross costs, F3,426,110 for the halfyear, F15.55 a ton of orc treated. The difference between this cost and the 1 * 18.75 a ton the ore would bring at the old gold price and the mint price of silver is F3.20 a ton. None of these figures can be taken as absolutes, they are at most approximations. Labor is another interesting item. This well established mine paid out Fl,113,923 for labor during the halfyear. This is 17.2% of the gross income, 32.2% of gross costs, or in round figures, a third of the gross costs. Balatoc is a settled little village that management under the chief owner, the company’s president, Judge John W. Haussermann, docs not neglect. Maintenance of a trood general store is no burden, since it makes a small profit, but there are schools and the hospital besides. How much, after a rich mining project has once settled down to business at Baguio, do schools and hospital accommodations, quite adequate and quite above common standards, cost? Balatoc’s halfyear report lists F3,541 for schools, 1 * 17,756 for the. hospital, a total of F21,297 for these services for the halfyear, about 2,3 of 1% of the total expense of operations. Such data may be compared, if anyone knows how, with similar data for established mines Ju other goldfields of the world. Better yet, new companies in the Philippines who actually feel they are bringing projects into permanent pro OF COMMERCE JOURNAL September, 1937 duction, ought to know from such data something of what certain of their continuing charges will be. Benguet Consolidated is thirty-five years old, has paid dividends steadily since 1915, and is measurably better established than Balatoc, whose majority stock it owns and who paid it Fl,676,401 by way of dividends during the halfyear. Casual study of Benguet Consolidated shows 919,645 tons of positive and probable ore in reserve on July 1, averag ing F17.72 a ton at the old gold price, a total of F16,295,240, and at the current price, F70 an ounce, F30 a ton, a total of F27,592,330. Almost 30,000 tons of ore were added to the reserve during the halfyear in addition to 145,879 tons of new orc squaring off what was milled during the period. The orc treated, 145,879 tons, would have yielded gold and silver worth F20.66 a ton at gold’s old price and the current mint price of silver. Benguct’s costs ran F18.12 a ton in cluding the management bonus F101,426, and depreciation F198,308. Benguet, aside from its Balatoc dividends and profits, chiefly prospective, from other operations, could, as from 1915 to 1934 it did, turn a profit at the old gold value of $20.67 an ounce. This mine’s actual bullion returns for the halfyear were F4,723,368; its gross income including Fl,708,924 interest and dividends was F6,467,111. But because we study the mine as apart from the company, let us keep to its bullion, F4,723,368. Out of this take costs, 1 * 2,643,676. In costs reckon taxes F375,254, and schools ami the hospital 1 * 19,730, comparing with Balatoc; and now labor 1 * 774,671. These three items sum Fl,169,655 and arc a maig’n below 50% of total costs. Labor alone runs about 30% of total costs, taxes about 50% as much as labor. The . fact that mining costs at Baguio tend to rise is inescapable. It affects the older mines, going deeper and farther for their ore, and the newer ones too, paying higher prices for timbers from the lowlands or imported from the United States, and more for their accustomed supplies of American manufactures for which prices are rising and on which freight charges across the Pacific are going up. WHAT GIVES ADVERTISING VALUE TO A NEWSPAPER ? THE VALUE OF a newspaper is measured in terms of respect ' and confidence . . . the respect of those who depend on it for news and comment, the confidence of those who use it as a carrier of their business messages in the form of advertising. PRIMARILY, THIS VALUE is a product of the paper’s own ' character and serviceability. But always it flows from its readers and advertisers, a willing yield returned for honesty and thoroughness, for cleanliness and fearlessness, for sincere service willingly given. j THE MANILA DAILY BULLETIN has earned the public trust which it enjoys principally by being the newspaper that it is. Because its character, enterprise, ! and reliability have made it valuable to its readers, the Bulletin is VALUABLE I to its advertising patrons. These advertisers know their messages take on added j force from the medium from which they speak. I IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Riprap, Zamboanga-Bucnavista Road, Kin. 45, Zamboanga UP TO DATE COMMERCIAL REVIEWS CABLE ADDRESS “JOHNSTON” CODE “BENTLEY’S” 1 ZAMBOANGA, P.I. * L1 JOHNSTON LUMBER CO., INC SAW MILLS Baliwasan Sawmill Lubuan Sawmill Siocon Sawmill Lintangan Sawmill PLANING MILL Port Johnston Zamboanga, P. I. AGENT B. F. ELLIS 372% Lorna Drive Los Angeles, California LUMBER YARDS Zamboanga, P. I. Iloilo, Iloilo, P. I. Cotabato, Cotabato. P. I. Jolo, Sulu, P. I. HIE AXGELUS FURXITURE MAXUFACTURLXG CO. OF LOS AXGEI.ES, CALIFORXIA, THE LARGEST OF I I S KIXD IX THE WORLD, USES 200,000 Bl). FT. OF JOHXS I'OX S QUALITY PHILIPPINE MAHOGANY LUMBER 1’ER MONTH JOHNSTON TOWING CO. CONTRACTORS AX1) STEVEDORES I'UC. BOATS, LAUNCHES AX1) SEA-GOIXG AXD HARBOR BARGES OWXERS OF BALIWASAN STOCK VARI), Zamboanga, I>. I. Breeder-of Bure Indian Xelore and Onglc Catt le TIGBAO-ABUXG CAT TLE RAXCH, Tigbao-Abung, Zamboanga SILUPA CA T TLE RAXCH CO., INC., Silupa, Dumanquilas Bay, Zamboanga, I * . I. JOHNSTON TRADING CO. GENERAL MERCHANTS REPRESENTING: MAX ILA TRADING X- SUPPLY CO.—Ford Car-, Trucks and Tractors and Genuine Ford Parts. GOODYEAR RUBBER & TIRE EXPORT CO.—Tires, Tube-., Belting and Spark Plugs. SOCOXY-VACUUM OIL CO.—-'The Oldest and Largest Lubricating Oil Company in the World. T. J. WOLFF & CO.—Philips’ Radio, Perfection Stoves and Superflex Refrigerators. GEXERAL PAINT CORPORATION—Paints, Varnishes, Enamels, Synthetic, Industrial and Technical Fini hes. THEO. II. DAVIES & CO., L I D.—Insurance-: T ire, Marine, Motor Car and'Accident. WESTERX EQU I PM EXT & SUPPLY COMPANY—Westinghouse Refrigerators, Radios, Electrical Equipments, Supplies. & Fixtures. ISUAN, INCORPORATED —Health Water of the P. I., Isuan Natural Mineral Water, Isuan Ginger Ale, Tru-Orange Squeeze, Seven-Up, etc. UXDERWOOD ELLIOT-FISHER SALES AGENCY—Underwood Standard X Portable Typewriters, Elliot-Fisher Bookkeep ing and Accounting Machines, Underwood-Sundstrand Adding & Listing Machines, Meilink Steel Fireproof Safes, Kee Lox Carbon Papers X Typewriter Ribbons, (Jlobe-Wernicke Steel ()llice Furniture X F iling Equipments, Ellams Rotary Duplicators X Supplies. The best of their kind in the world. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 33 Prospective New Mindanao • Planned Agriculture Goes With New Roads Oscar Campbell is an owner in a coconut plantation in Lanao. He lives in Palo Alto, California, and is well pleased with his Lanao plantation investment. Just now he is in Manila, where formerly lie practiced as a civil engineer and contractor. Probably the prospect of the opening of bids for construction of the High Commissioner’s official resid ence on Dewey Boulevard was one thing inducing his visit to Manila, but the Lanao plantation was a drawing card too. All our older readers either know Oscar Campbell personally or by hearsay, hence they know of his shrewdness. It is quite surprising to learn of the number of shrewd Americans who have plantations in Mindanao, or considerable invest ments in such plantations. So far as we learn, there is general satisfaction with these investments. This situation is worth nothing just now, because it is soon going to change. If all goes well, it will change for the bet ter. Mindanao is almost as large as Luzon, but may not have a million inhabitants. Luzon has some 6,500,000 inhabitants, 40% of the Islands’ total population. It also has 6,500 kilo meters of first class roads, a kilometer for every 1,000 inha bitants. But this comparison is of no significance; really, Luzon supports such a population because of the network of good highways with which the island is provided. That is why the bulk of merchants’ markets in the Philippines is on Luzon. Over the highways, products reach their markets, producers go to town to buy supplies; and along the highways the country is laid out in farms actively cultivated because the roads enable the farmer to sell all the surplus his fields will yield. This is the great change that is now to take place—indeed, has for more than two years been actually taking place—in the wilderness of Mindanao. That island has only some 2,500 kilometers of highway today. It is so fertile that it ought to have as much highway as Luzon, if not more. To give it new highways, President Quezon has begun pouring millions of pesos into Mindanao. For at last the govern ment has found that highways are actual keys to the wilder ness. They open territory, otherwise impenetrable, as a key serves to open a door. Settlers come without bidding, and soon have crops in the wild soil; and from the outset these settlers are self-supporting, deriving some wages of course from working on the very roads that make their home stead tenable—as the western settler in the United States derived wages from teaming on the railroads built to haul their crops to market. President Quezon’s plans in Mindanao go farther than the highways, which in part have military objectives. They embracing planning Mindanao’s new agriculture, to a degree. Is this Mindanao’s long-sought redemption from noxious vegetating, physical and sociological? If plans are carried out in full, it may well be. Mindanao is potentially a farmer’s El Dorado. For a number of good crops, its climate as affected by its rainfall is superior to Luzon’s. President Quezon plans to plot the new farming opened by means of the new Mindanao roads, and to this end, to employ agricultural experts—for example, rubber experts from the Goodyear company, who gained practical experience at Goodycar’s Sumatra rubber planta tion. For eight years, Goodyear has had an experimental plantation on the mainland of Zamboanga. It was provided with selected seed and seedlings, from high-yield trees. It has been entirely successful, and now the Philippines have from this plantation a supply of seed for new farmers falling in with the idea of growing rubber for their cash crop—also of course, for new plantations. To Mindanao, President Quezon would adapt the method of the sugar mill in Philippine cane territory. The planter owns his fields, but contracts during a long term to let the mill handle his cane. Thus the mill, while it may loan the farmer money, is spared the expense and responsibility of owning and cultivating the cane lands; and at the same time, it is just as certain of a cane supply as if it owned the fields as well as the mill. This comports with Malay psychology respecting land ownership, therefore it succeeds. (Most rubber grows in Malaysia, though only a very little of it in the Philippines, and 50% of the supply comes from small groves tapped and cultivated by the families that own the land). Mindanao agriculture is capable of immeasurable expansion under the Quezon policy, and surprising expansion within a very short time. As to rubber, Basilan has the older more productive plan tations—the large island forming a political part of Zamboanga and tailing the mainland on the southwest. But there is also a plantation in Cotabato, east of Zamboanga. The range of territory therefore for rubber in Mindanao is ample. Just as in northern Mindanao where Philippine Packing (Slobe Wernicke Automatic Record Control provides important facts instantly • When applied to stock records, inactive items and vitally essential dates are con stantly brought out—inventory is held to a minimum—depreciation is re duced—customers receive better service—results increase turnover and profits. • With it, activity of lines, salesmen, customers is set out—new prospects or leads follow—all with a minimum work and expense—results, actual increase sales. (SIobe-ZKernidie VISIBLE RECORD EQUIP MENT DEPENDABLE QUALITY Ask Us to PROVE How Visible Records Will Help Your Business . . . Phone or Write for a Demonstration Underwood-Elliot-Fisher Sales Agency 30-32 Escolta — Phone 2-31-71 Smith, Bell & Co. Ltd., Sole Agents in P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 exploits pineapples, there is room for expansion of that in dustry. Jesuits grew and bought prices in Mindanao cen turies ago; they were the missionaries down there, and in Ternate of the Spice Islands, and the commerce interested Zamboanga as well as Ternate. If spices can be revived profitably in Mindanao, this should be tried. Certainly there is room for the African palm. In new plantations it ought to be determined whether coconuts should be grown, or African palm. We have it on good authority that 82% of the palm oil exported from Sumatra last year was sold in the United States and used largely in the manufacture of galvanized iron. What Sumatra can do, Mindanao can do—possibly to a little better advantage. At least, experienced men say Basilan produces plantation rubber at the lowest cost in the world. Coconuts and rubber in separate stands on the same plantation have been very satisfactory on Basilan, coconuts arriving at production age somewhat earlier than rubber, and the two rivaling one an other as to net profit, depending on the relative market de mand for them and on the effectivity of the price-pegging and production-pegging authority in the dominating BritishDutch field of Malaysia. To sum up: a thorough-going road system in Mindanao will be greatly beneficial to the Islands if activity goes no farther, while it will be infinitely more beneficial if activity extends to manage agriculture embracing tropical products America requires in addition to the copra, hemp, tobacco and sugar the Islands have heretofore had to sell. New & Old Highways (Continued front page Id) In the preparation of the five-year program, the contem plated plan of constructing a railroad from the city of Davao to the port of Cagayan, Oriental Misamis, was not taken into consideration. It is understood that this proposed railroad will utilize for its power the great potential energy stored in the Maria Cristina Falls in Lanao province and in the Po-’ langui river flowing between the provinces of Bukidnon and Davao. Should this railway project be carried out it will have to be supplemented by roads as feeders, and our five-year program will have to be revised to avoid the construction of roads paralleling the railroad and thus prevent the destruc tive competition for traffic, such as now exists between the railroad companies and the motor truck transportation com panies operating in the islands of Luzon and Cebu. If this proposed railroad is constructed, it will necessarily require as its complimentary service the operation of fast boats between Manila and Cagayan, Oriental Misamis, so that the time of travel between Manila and Cagayan de Misamis could be reduced to about 24 hours, and in conjunction with the proposed railroad, the travel between Davao and Manila can be accomplished within 30 hours. The latest step taken by the Commonwealth Government in connection with the policy of developing Mindanao and Sulu as rapidly as possible, was the creation of the position of Commissioner for Mindanao and Sulu by the passage during last year’s session of the National Assembly of Act No. 75. This Act provides among other things that, “besides his ad ministrative functions, the Commissioner shall also be charged with the duty of directing the general development work in Mindanao and Sulu”. Subsequently, His p]xccllency, the President, appointed, on January 1, 1937, the present Commissioner for Mindanao and Sulu, who is a civil engineer, with station at Dansalan, Lanao, which has been declared as the capital of Mindanao and Sulu by reason of its easy accessi bility from the different provinces therein. One of the im portant functions of the Commissioner is to prepare in con junction with the Bureau of Public Works road construction programs and to supervise the execution of such programs. The Agusan river in the province of Agusan, which extends as far as the province of Davao, and the Cotabato river in the province of Cotabato, arc both navigable for good-sized launches for long distances into the interior. By improving their condition of navigability they can be developed into cheap arteries of communication for transporting freight. Along with road construction programs and the construc tion of the proposed railroad, the Government should en courage the establishment and maintenance of an efficient air service between Luzon, the Visayan islands and Min danao, even to the extent of subsidizing it or, if necessary, the Government should operate its own air line. The foregoing forms of transportations—roads, railroads, water and air—arc all destined to play very important roles in the rapid settlement and development of Mindanao and Sulu. September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 Mindanao And Sulu Highways By V. Fragante Director of Public Works With the exception of a few short coastal roads in northern Mindanao which were built under the Spanish regime, road building in Mindanao and Sulu started only during the early days of the American Occupation by the U. S. Military author ities. Since the military roads were built primarily for the pacification of the Nou-Christian inhabitants in that region, they were relatively few and were constructed solely for the purpose of connecting the seacoast to military posts in the interior, such as the Camp Romandicr road in Jolo, the Fort Pikit road in Cotabato, and the Camp Kcithlcy road in Lanao. Later on, when Military Government of that region was no longer necessary and civil government took its place, road and trail constructions were attempted as economic and social measures and although handicapped by lack of funds, the former Department of Mindanao and Sulu, under the supervision of the Bureau of Public Works, was able to con struct coastal roads mostly along the northern coast of Min danao and around the island of Jolo. Immediately after the inauguration of the Commonwealth Government of the Philippines in 1935 steps were taken to accelerate the development of Mindanao. Legislative mis sions including His Excellency, the President of the Philip pines, as well as Department Secretaries and their staffs have made repeated inspections and thru these visits the importance of properly developing Mindanao has been so impressed on the public as a matter of urgent concern to the country that it has become one of the most important national issues of the day. Conscious of the importance of building systematically planned highways in Mindanao as the best and most logical way to open up the oountry, the National Assembly, on Jan uary 2, 1936, passed Commonwealth Act No. 18, reverting one million pesos from the establishment of agricultural co lonies and making that sum available for the construction of roads in Mindanao. Such a decisive step on the part of the Legislature marked a “new deal” in road building activities in that part of the country, and as a direct result the opening to light traffic of the Iligan-Davao Interprovincial Road, 412.6 Kms. in length, was made possible early this year. Ten months later, Commonwealth Act No. 75 was passed, on October 24, 1936, providing, among other things, the creation of the position of Commissioner for Mindanao and Sulu, under the Department of the Interior. According to this Act, the most important function of the Commissioner is to direct general development work in Mindanao and Sulu, and to so coordinate it as to prevent overlapping and dupli cation of similar activities by the various branches of the government. The timely appointment of no other than a veteran road builder as the first Commissioner by His Ex cellency, the President of the Philippines, is in itself a guar antee of the proper planning and the expeditious execution of road work in Mindanao. The present policy of road building in Mindanao is based upon the sole desire of the Commonwealth to develop, as rapidly as funds permit, the economic resources of that vast and fertile country with the ultimate view of converting Mindanao into one of the main revenue sources of the govern ment. In consQnance with this policy, the roads are now being built in the order of their relative importance, i.e., those that contribute towards the preservation of peace and order, those that provide for interprovincial and intcrcoastal commu nication, and those that promote agriculture in general are given preferential attention. As examples of these routes, the present carefully selected National roads may be men tioned; the road around Lake Lanao, the central road in Jolo, the Iligan-Davao interprovincial and intercoastal road, the Davao-Agusan interprovincial and intcrcoastal road, the interprovincial and coastal road in northern Mindanao from Occidental Misamis to Surigao, the Bukidnon-Oriental Misa mis Interprovincial road, the Davao-Cotabato Interpro vincial road connecting Davao Gulf with Sarangani Bay, the Cotabato-Makar road, the Butuan-Lianga road, the penal colony roads in Zamboanga and Davao, the ZamboangaNaga Coastal road, the Isabela-Lamitan coast-to-coast road in Basilan, and the Tawi-Tawi coast-to-coast agricultural road. The aforementioned National roads represent a total of 2,088.88 Kms. of which nearly 1,000 Kms. are first and second class roads and about the same length are either under con struction or will be built in the near future. Pursuant to the provisions of Executive Order No. 71, promulgated December 3, 1936, the construction, maintenance and improvement of these National Roads in Mindanao and Sulu will be financed from such appropriations as may be authorized by the Com monwealth Government in annual or special appropriation acts and from the 80% of all collections under the Gasoline and Motor Vehicle Funds, which is subject to apportionment on a definite basis. It is, therefore, evident that these National roads will be adequately taken care of, and when completed will provide the immediate need for main traffic routes in that section of the Islands. It has been proposed by the Honorable, the Commissioner for Mindanao and Sulu that a portion of the “Excise Tax”, amounting, if practicable, to 1 * 23,658,000.00, be set aside to finance a road construction program on the islands of Mindanao and Sulu, including their maintenance, for a period of 5 years. It is expected that after the five-year period, the lands along which the roads built will be so populated and developed that sufficient revenue may be derived locally for their proper maintenance. During the first two years it is proposed to construct some 1,238 Kms. of second-class main trunk roads, including the uncompleted sections of the existing national roads, at an estimated cost of approximately P10,000,000.00; the main tenance funds for 5 years included. During the third year, an additional 572 Kms. of second-class roads will be built, at a total cost of around P5,000,000.00 including maintenance needed for 5 years. By the end of the fourth year, it is esti mated that an additional 593 Kms. of second-class roads can be added to the system, at a total cost of another P5,000,000.00 including provision for their maintenance for 5 years. The proposed roads included in the aforesaid five-year program having a total length of 2,336 Kms. are mostly new projects, and together with the 1,800 Kms. of exsiting roads, they will provide a complete highway system of over 4,000 Kms. for Mindanao and Sulu which it is expected will he adequate for many years to come. 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Kasilag’s Five-Year Road Program Embraces Basilan and Sulu tcith Mindanao Five-year road construction program to be financed from the Coconut Oil Excise Tax money or from funds to be appropriated by the National Assembly. In selecting the projects included in this program, we did not take into consideration the plan of constructing a railroad from the City of Davao, to Cagayan, Oriental Misamis. The following are our explanatory notes for each project the numbering of which on the table corresponds to the numbers enclosed in the circles appearing on each proposed road as indicated on the map. EXPLANATORY NOTES Project No. 1—This proposed road when completed will encircle the Island of Basilan with automobile roads. Although paralleling the coast line, this road project will, in general, pass through the interior at an average distance of five kilometers from the shore in order to increase the usefulness for developing the fertile agricultural lands to be traversed by it. Project No. 2—This proposed road starts from the end of the surfaced road from the City of Zamboanga to the Vitali River along the east coast. It will cross the peninsula of Zam boanga Province through the fertile plain of approximately 27,000 hectares lying between Labuansug on the south coast and Liloy on the north coast. Liloy is the best sheltered port on the north coast of Zamboanga. From Liloy the road will pass through the new municipality of Sindangan and connect with the finished road at Manukan, municipality of Katipunan, province of Zamboanga. Project No. 3—This is another road project that crosses the peninsula of Zamboanga and will tap the Siokon River Valley, the Panabutan and Siraway Valleys and will provide over land connection between the new municipality of Siokon and the City of- Zamboanga. Project No. 4—This proposed road starts from Labuansug on Road Project No. 2 and will pass through the new municipality of Kabasalan and the rich valley of Sibugay and Kamalalang Rivers connecting with the new municipality of Pagadian in southwestern Zam boanga on the Occ Misamis-Zamboanga Inter provincial Road. Project No. 5—This is an intercoastal road project to connect the new municipality of Pagadian with the new municipality of Margosatubig in southwestern Zamboanga, crossing the rich valley of Dimas. Project No. (>—This proposed road starts from Malabang, 70 kilometers from Dansalan on the Lanao-Cotabato Interprovincial Road, and will connect with the Lanao-Zamboanga Interprovincial Road traversing the rich Kapatagan Valley of 45,000 hectares and benefiting coconut plantations along the coast of Iliana Bay. Project No. 7—This proposed road will start from I’ualas, a municipal district on the road from Dansalan to Malabang, province of Lanao, passing through the municipal districts of Nonongan and Kapatagan and connecting with Occidental Misamis at the proposed ferry cros sing across the Pangil Bay, about 20 kilometers south of Kolambugan. It will establish a short route of communication from southern Mindanao through Lanao Province to Occidental Misamis and northern Zamboanga. This road will also largely contribute to the maintenance of peace and order in the interior districts of Lanao west of Lake Lanao. Project No. 8—This is a proposed road to establish communication and transportation facilities on the east and south shores of Lake I^anao where the most rebellious Maranaos in Lanao Province are found at present. The opening of this road will go a long way towards the suppression of lawlessness and the establish(Please turn Io page 39) RURAL TRANSIT CO. (Bachrach Motor Co.—Operators) CABANATUAN, N. E. MANILA OFFICE: Bachrach Motor Co., Inc. Port Area, Manila Phone 2-15-44 BRANCH: Bayombong, N. V. DISTRICT AGENCIES: Echague & Hagan Isabela San Jose, N. E. FREIGHT & PASSENGER SERVICE From Manila to Tuguegarao and Throughout Provinces of N. Ecija, N. Vizcaya Isabela & Cagayan IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 37 American Bus Transport Philippine Interests e Islands' constitution needs clarifica tion of term civil rights as applicable to all American property interests here. NOTE.—While the following discussion by Attorney L. D. Lockwood is limited to the American interest in the Philippines in the bus transportation business, the point stressed that the term civil rights as used respecting Americans and American interests here, in the TydingsMcDuffie act as well as the Commonwealth constitution, requires definition, is of general and specific interest to all Americans and American interests here.—ED. Bus transportation in the Islands has been peculiarly developed by the Americans. With the exception of the Manila Railroad which operated between Manila and Dagupan, there were practically no land transportation facilities during the Spanish regime. There were very few roads and those that existed were impassable during the rainy season. The motor vehicle had not yet arrived. Most transportation or travel was by water. During the first years of American occupation the Government was oc cupied in perfecting its organization, establishing law and order, sanitation, etc., and it was about 1908, under the leadership of Hon. W. Cameron Forbes, then Secretary of Commerce, that a comprehensive road-building program was begun and which has been carried thru to the present date. This has resulted in a good system of highways covering practically all of the well-populated islands. Some of the least populated islands, such as Mindanao, Mindoro, Palawan and some smaller ones, have relatively few roads. It is a coincidence that the motor vehicle arrived at the same time that the roads were being built and the result has been a rapid and ex tensive development of motor vehicle transportation. The first motor bus in the Philippines was operated by Mr. A. L. Ammen in Camarines in 1911. About the same time, Mr. Walter S. Price started bus operations on the Island of Leyte. It is somewhat strange that these two beginnings were made at places distant from Manila, but such is the case. While the growth of the business was slow during the first few years, with the extension of the roads and the improvements in motor vehicles, it later expanded rapidly. When Mr. Ammen, for example, incorporated his business and formed the A. L. Ammen Transportation Co., Inc. in 1914, he was operating 9 buses. Today the Company is operating 225 buses and 50 hire automobiles and transports over 12,000,000 passengers a year. Mr. Ammen also founded the Pangasinan Transportation Co. and his associates started the Batangas Transportation Co., Laguna-Tayabas Bus Co., Bohol Land Transportation Co. and others. Other Americans started bus operations in other parts of the Islands. Uniform ly these operations have been successful and have expanded. The book value of this investment of 1 * 4,208,850 is at Today the investment of citizens of the United States in bus transportation is ns follow) Capital In Total Capital tested by A. I.. Ammen Transportation Intested Citizens of u. s. Co. ................................. Pl,000,000 P 700,000 Batangas Transportation Co. . 475,000 235,750 Lngunn-Tayabas Bus Co......... 500,000 189,700 Pangasinan Transportation Co. 500,000 420,000 Pampangn Bus Company......... 523,800 323,500 Ited Line Transportation Co. .. 233,500 204,400 Northern Luzon Transp., Inc. . 151,700 100,500 Rural Transit Co........................ 100,000 400,000 Cebu Autcbus Co....................... 500,000 350,000 Bohol Lund Transportation Co. 300,000 189,000 Mindanao Bus Co...................... Manila Electric Co. (bus busi 150,000 102,000 ness only)................................. (iOO.OOO 600,000 Leyte Lund Transportation Co. 120,000 120,000 Panay Autobus Co. •100,000 168,000 Bulacan Bus Co. .58,000 46,000 Cebu Transit Co. 100.000 5-1,000 Total............. P6,012,000 P4,208.850 least 50% greater than the actual investment and the real or market value of the investment has at least doubled, as, for example, Mr. Price, practically the sole owner of Leyte Land Transportation, values his business at 1 * 700,000, while only the original investment of 1 * 120,000 is listed above. And shares of some of these companies, like the Batangas Trans portation Co., have been selling for between 1 * 200 and 1 * 300, the par value being 1 * 100. All of the above mentioned investment, except that of the Manila Electric Co., is by citizens of the United States residing in the Philippine Islands. All of the above-named companies are corporations organized under the laws of the Philippine Islands by Americans and all, with the exception of the Panay Autobus, are managed by Americans. Only one large bus company has been organized, financed and success fully operated entirely by Filipinos. This is the Pasay Transportation Co. It was not organized until 1928. Filipinos have, however, acquired a very important minority interest in the companies listed above,amounting to 1 * 1,804,150 and this interest is gradually increasing. There are also small Filipino bus operators operating from one to fifty buses each. The total number of buses operated in the Philippines is approximately 3,700. Americans have not gone into the trucking business very extensively. One firm, the Luzon Brokerage, does a very large trucking business, more or less in connection with its customs brokerage business. Mr. L. W. Nantz also does a good-sized trucking busi ness. But these operate as private contractors and not as public utilities. Most of the trucking is done by small Filipino truckers. The Manila Railroad Co., owned by the Government, operates a large fleet of buses and trucks, especially in making connections for both passengers and freight between the railroad and Baguio. These utilities operate under franchises or certificates of public convenience which have from time to time been granted by the Government of the Philippine Islands as author ized by Section 28 of the Jones Law (Act of Congress of August 29, 1916.) These franchises and certificates of public convenience are property. There can be no doubt about that. The courts have repeatedly so held. Undoubtedly, under the existing law, this property (franchises or certificates already granted) when owned by citizens of the United States, will be acknowledged, respected and safeguarded after independence to the same extent as similar rights of citizens of the Philippines. But is the term “existing property rights’’ to be inter preted as to refer only to franchises and certificates of public convenience in existence on the date of proclamation of Philippine 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Independence * Or is it to be interpreted in a broader sense to include the right to buy or acquire franchises and certificates? As before stated, the term “proper ty rights” usually means not only the right to own, but the right to acquire and sell property. Citizens of the United States now have the right to acquire and obtain franchises and cer tificates of public convenience. The present law regarding the granting of certificates of public convenience is found in the Public Service Act (Commonwealth Act No. 146), which was enact ed at the last session of the National Assembly. It reads as follows: Sec. 16. Proceedings of the Commission, upon notice and hearing.—The Commission shall have power, upon proper notice and hearing in accordance with the rules and provisions of this Act, subject to the limitations and exceptions mentioned and saving provisions to the contrary: (a) To issue certificates which shall be known as Certificates of Public Convenience, authorizing the operation of public services within the Philippines whenever the Com mission finds that the operation of the public service proposed and the authorization to do business will promote the public interests in a proper and suitable manner: Provided, That hereafter, certificates of public conven ience and necessity will be granted only to citizens of the Philippines or of the United States or to corporations, copartnerships, associations or joint-stock companies con stituted and organized under the laws of the Philippines: Provided, That sixty per centum of the stock or paid-up capital of any such corporation, copartnership, association or joint-stock company must belong entirely to citizens of the Philippines or of the United States: Provided, further, That no such certificates shall be issued for a period of more than fifty years. It would seem that this is an existing property right; and, if such, it should be acknowledged, respected and safeguarded after independence. INSURANCE For Every Need and Purpose WORKMEN’S COMPENSATION PUBLIC LIABILITY AUTOMOBILE ATLAS ASSURANCE CO. LTD. CONTINENTAL INSURANCE CO. ASSURANCE CORPORATION LTD. ORIENT INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA General Agents E. I. ELSER, INC. Telephone 2-24-28 — MANILA — Knecdler Building Tn other words, that after independence citizens of the United States should have the right to acquire, obtain and own franchises and certi ficates of public convenience. But as above stated, there are other provisions of the Constitution which are in conflict with this theory. The “Constitution of the Philippines” is obviously intended to be the constitution of the future Republic. It is nowhere referred to as the constitution of the Commonwealth and for that reason, in our humble opinion, it should never have been approved by the President of the United States, because it is not a “Consti tution for the Government of the Common wealth of the Philippines” as is provided for in the Tydings-McDuffie Law. The ordinance appended to the Constitution makes it workable during the life of the Commonwealth. So it is that we now know what the consti tution of the Republic will be. We, therefore, have a rather extraordinary opportunity to look into the future arid determine what our rights will be. As before stated, the provision acknowledging, respecting and safeguarding the existing property rights of citizens of the United States is incorporated in the Constitution,—and very properly in the Constitution itself and not in the ordinance appended to the Constitution which will become inoperative after independence. But in Art. XIII, Sec.. 8, of the Constitution we find the following: No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations of other entities organized under the laws of the Philip pines, sixty per centum of the capital of which is owned by citizens of the Philippines, nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years. No franchise or right shall be granted to any individual, firm, or corpo ration, except under the condition that it shall be subject to amendment, alteration, or repeal by the National Assembly when the FIRE MARINE ACCIDENT PLATE GLASS THE EMPLOYER'S LIABILITY public interest so requires. It is, therefore, perfectly clear that it is not the intention to acknowledge, respect and safeguard the existing rights of citizens of the United States to acquire franchises or certificates of public convenience. And apparently, when present franchises expire it will be impossible for the holders of the same to acquire or obtain new franchises or extensions of the old one. The same principle is expressed in Art. XII, Sec. 1, regarding natural resources, as follows: All agricultural, timber, and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, and other natural resources of the Philippines belong to the State, and their disposition, exploitation, development, or utilization shall be limited to citizens of the Philippines, or to corporations, or associations at least sixty per centum of the capital of which is owned by such citizens, subject to any exist ing right, grant, lease, or concession at the time of the inauguration of the Government es tablished under this Constitution. Natural resources, with the exception of public agri cultural land, shall not be alienated, and no license, concession, or lease for the exploit ation, development, or utilization of any' of the natural resources shall be granted for a period exceeding twenty-five years, renewable for another twenty-five years, except as to water rights for irrigation, water supply, fisher ies, or industrial uses other than the development of water power, in which cases beneficial use may be the measure and the limit of the grant. Under this provision the present right of citizens of the United States to locate mining claims will disappear. And the right to buy and sell even existing real property is limited by Sec. 5 of the said article, which reads as follows: Save in cases of hereditary succession, no private agricultural land shall be transferred or asigned except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain in the Philippines. The above quoted Sec. 8 of Art. XIH has already been interpreted by the Supreme Court in the case of Genehichi Ishi vs. Public Service Commission, G. R. No. 45134. In that case the petitioner, a Japanese subject, held a certi ficate of public convenience to operate one hire automobile, issued prior to the dstablishment of the Commonwealth. After the Commonwealth he applied for authority to increase his equip ment by one automobile more. His application was denied by the Public Service Commission on the ground that it would be unconstitu tional to grant the increase and this decision was sustained by the Supreme Court which said: The question presented is whether petition er’s application for an increase of his equip ment comes within the constitutional prohibi tion contained in section 8, Article XIII of the Constitution of the Philippines, it appearing that petitioner had been granted, before the Constitution took effect on November 15, 1935, a certificate of public convenience to operate an automobile “Ford” for transportation of passengers in the province of Davao. We must answer the question in the affirmative. Petitioner is admittedly not a citizen of the Philippines, nor a corporation sixty per centum IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 39 of the capital of which is owned by citizens of the Philippines. His application for an increase of equipment may not call for the granting of a new franchise or certificate, but it certainly calls for an “authorization” the granting of any form of which is limited by the Constitution to citizens and corporations above mentioned. This was clearly admitted by the petitioner himself when he made the averment in paragraph 3 of his petition for a writ of certiorari that in filing below the appli cation which was afterwards denied by the respondent Commission, he sought for “author ity" to increase his equipment. In other words, it is conceded by petitioner that he may not increase his equipment without previously being “authorized’ to do so by the respondent Commission, as provided in express terms in his certificate of public convenience. The phrase “any other form of authorization” used in sec. 8, Article XIII, of the Constitu tion is. comprehensive enough to include the “authority” asked for by petitioner. The Constitution provides for the national ization not only of national lesources and all forces of potential energy but also of public utilities, saving solely those rights which were acquired prior to its adoption. This was one of the avowed purposes of the fminers of that fundamental law, as declared in its preamble. We cannot agree to the suggestion that be cause petitioner is the lawful holder of a cer tificate of public convenience to operate an automobile “Ford” in the province of Davao, he has a vested right to be authorized to increase his equipment by the addition of one or more cars. The challenged order of the respondent Commission is in conformity both with the letter and spirit of the Consti tution and it must be upheld. Would the decision of the Court be any different with regard to citizens of the United States after independence, taking into consid eration the other provision of the Constitution that existing property rights of the same shall be acknowledged, respected and safeguarded? We believe not. But as this is a ipatter which is to be embodied in a treaty to which the Government of the United States will be a party, it will become the duty of the United States to see to it that the rights of its citizens in the Philippines are duly safeguarded and protected. Conclusion and Suggestions. In view of the foregoing, it is respectfully submitted: 1. That in case the date of independence is advanced, it should be provided that the “civil rights” which citizens and corporations of the United States now enjoy in the Philippines should be continued in force and effect until July 4, 1946, the date set for independence by the Tydings-McDuffie Law; and furthermore, in case a preferential trade-treaty is made and entered into, as is much discussed at the present time, then and in that case, preferential civil rights should go along with preferential trade relations, and the present civil rights enjoyed by citizens and corporations of the United States should be continued in force and effect during the life of the preferential trade-treaty. 2. That the term “existing property rights” as used in the Tydings-McDuffie Law, the Philippine Constitution, and to be embodied in a treaty, should be clarified by legislation and/or by the treaty to be made and inter preted in the sense intended by Congress, so that there will be no misunderstanding regarding what these rights are. Manila, Philippines, August 21, 1937. L. D. Lockwood For the Philippine Motor Transport Association. Kasilag’s Five Years . . . (Continued from page 36} ment of peace and order in the entire province of Lanao. It will also develop the rice land district around the lake. Phoject No. 9—This proposed road will be a short cut from Lumbatan, where the agricultural and normal schools of Lanao are established, to the municipality of Malabang on the north east coast of Iliana Bay. It will tap the rich agricultural valley of Mafalim River and Lake Butig. Phoject No. 10—This is another interpro vincial road between Lanao and Cotabato. Its south terminal is at Parang, the best shel tered harbor in western Cotabato, and its north ern terminal is in the sitio of Balaygay on the southeast shore of Lake Lanao, passing through the municipal district of Baldun. It will benefit the rich agricultural district of Barira. Phoject No. 11—This is another interpro vincial road between Lanao and Bukidnon prov inces, connecting the municipal district of Mulundo on the east shore of Lake Lanao with tlx * municipal district of Maramag on the Bubusiness Printing AND DIRECT ADVERTISING THAT IS DISTINCTIVE AND YET... NOT EXPENSIVE K-p> nr TH r-pl 550 EVANGELISTA IV I I—( I 1 I BULLETIN BLDG PRINTERS .BOOKBINDERS .ENGRAVERS Phone 2-29-59 kidnon-Cotabato Interprovincial Road. It will serve as a connecting link of the shortest route from the City of Davao to the port of Iligan in northern Mindanao. The country traversed by this proposed road consists of plateaus suit able to the cultivation of corn, fruit trees, coffee, cacao and cattle raising. Project No. 12—This is another interpro vincial road between the provinces of Lanao and Bukidnon, starting from Dansalan, the capital of Lanao, and passing through the munic ipal district of Kapay and connecting with the municipal district of Talakag in the province of Bukidnon. This will establish a short cut from central Lanao to the port of Cagayan in northern Mindanao. Project No. 13—This is a road to connect the municipal district of Kapai, interior part of Lanao, with the port of Iligan, and will develop the fertile Kapai and Mandulog River Valleys. Project No. 14—This proposed interpro vincial road between Bukidnon and Agusan provinces starts from Talakag in northwestern Bukidnon, passing through Maramag on the Bukidnon-Cotabato Interprovincial Road and connecting with the municipal district of Waloe in Upper Agusan. It will develop the best agricultural region of the province of Bukidnon, the Pulangui and Omayan River Valleys of northeastern Bukidnon and southwestern Agusan. Project No. 15—This is a proposed inter provincial road to connect the port of Cagayan in Oriental Misamis with the municipal districts of Baungon and Libona in the northwestern part of Bukidnon province. It will develop 20,000 hectares of fertile agricultural land to be traversed by it. Project No. 16—This proposed interpro vincial road will connect the municipal district of Milagros in Upper Agusan with Odiongan, a progressive portion of the municipality of Gingoog on Gingoog Bay, province of Oriental Misamis. It will be a short cut from Upper Agusan to the coastal road of Oriental Misamis. Project No. 17—This project is the AgusanDavao Interprovincial Road now under con struction. This road will develop the fertile agricultural land on the west bank of the Agusan River and the rich Tagum and Saug river valleys, province of Davao. Project No. 17 (a)—This is a connection between the road systems on both sides of the Agusan River at the municipality of Talacogon, Central Agusan. Project No. 18—This is an interprovincial road between Agusan and Surigao connecting the municipality of Lianga on Lianga Bay, prov ince of Surigao, with Ampavon, a barrio on the IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Butuan-Gabadbaran Road, Province of Agusan. It will develop the fertile agricultural land in the valleys east of Agusan River. Project No. 19—This is another interpro vincial road connecting the municipality of Ilinatuan on Ilinatuan Bay, province of Surigao, with the municipal district of Maygntasan on east central Agusan, and will develop the best agricultural land in southern Surigao and the' valley on the east side of tin' Agusan River at Upper Agusan. Project No. 20—This road will be a con necting link between the interprovincial road No. IS and interprovincial road No. 19. SKM IS Project No. 21—This is a continuation of the road .system in the valley east of Agusan River and will develop tilt * fertile agricultural land in tin? Simulao and Bunawan river valleys. There is an agricultural school run by the Na tional Government in the municipal district of Bunawan. Project No. 22—This is a coastal road to connect the road system of southern Surigao with the road system of northern Surigao on the east coast of that, provinces. Project No. 23—-This is a proposed road to connect the east coast of Davao with tin * pro vincial capital by way of Compostela and Catnanza, a municipal district on the DavaoAgusan Interprovincial Road. It will develop the extensive agricultural land around Compos tela and the Cateel River valley. Project No. 24—This is a coastal road to connect the two important municipalities of Cateel and Baganga on the east coast of Davao. Project No. 25—This is a road project now under construction on the east coast of the Golf of Davao and will connect with the DavaoAgusan Intel-provincial Road at Tagum. It will serve the municipalities of I’antukan, Lupon and Mali. Project No. 26—This is a short cut connec tion between the Davao-Agusan and the DavaoBukidnon Interprovincial Roads and will develop the interior part of northwest Davao. Project No. 27—This is an interprovincial road between Davao and Bukidnon provinces, starting from the barrio of Guianga, City of Davao, and connecting with the BukidnonCotabato Interprovincial Road near Lake Lamybybell. This proposed road will provide a direct route from the City of Davao to the port of Cagayan in Oriental Misamis. Project No. 28—This is an interprovincial road between Bukidnon and Cotabato provinces, starting from the end of the finished road at Mailag, province of Bukidnon, and connecting with Kabakan, municipal district of Cotabato, which is connected with the now being completed Cotabato-Davao Interprovincial Road. It will be the continuation of a direct route from Sarangani Bay in southern Cotabato to the port of Cagayan, Oriental Misamis. It will develop the agricultural land in the Pulangui River valley, which river has its headwaters in Upper Agusan and near Malaybalay, Bukidnon prov ince, and empties into the Cotabato River at Peidu Pulangui near the municipal district of Reina Regcnte. Project No. 29—This road project is a conti nuation of the Cotabato-Upi Road and will connect Port Lebak on the west coast of Cota bato province'. It will serve many coconut, plantations on the west coast of Cotabato. Project No. 30—This is a proposed road to develop the country south of Cotabato River and will connect the Cotabato-Upi Road from Libongan with the Boayan-Makar-Reina Ro gen to Road at Sapakan. Project No. 31—This is the proposed na tional highway from Gian on the southeast coast of Sarangani Bay where a concrete wharf has re cently been constructed, to Reina Regente, a municipal district on the Cotabato River, pas sing along the east coast of Sarangani Bay to Makar and traversing from this point the most extensive agricultural land in the province of Cotabato around Lake Buluan. THE HING GE EI EE * Sole Agents THE MANILA WINE MERCHANTS, INC. Largest Wholesale and Retail Liquor Dealers in the Philippine Islands Head Office Retail Branch Office 174 Juan Luna 37-39 Alhambra Tels. 4-90-57 or 4-90-58 Tel. 2-17-61 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 41 Project No. 32—This proposed road is in tended to develop the great Ala River valley in west central Cotabato, starting from the municipal district of Maganov and ending in the municipal district of Tugis on the south coast of the province. Project No. 33 — This is a road to connect the two long roads No. 31 and No. 32 described above at the southern portion of the province of Cotabato near Lake Maughan. Project No. 34—This is another road in central Cotabato to develop the extensive agri cultural land on the east side of I.iguasan Marsh, starting from Kayaga on the Davao-Cotabato rnterprovincial Road and ending at Dulok south of Lake Buluan on the Gian-Makar-Reina Regente National Highway. Project No. 35—This is the authorized National Highway to connect Sarangani Bay, province of Cotabato, with Malalag Bay, prov ince of Davao, and designed to develop the Malalag and Tinabalan Valleys. Project Nos. 36, 37, 38, 39, 40 and 41 are all on the islands of Jolo and Tawitawi, province of Sulu. Projects Nos. 36, 37 and 38 are pro posed roads to serve the coastal regions of the island of Jolo. Projects 39 and 40 are proposed roads in the interior of the same island primarily for the maintenance of peace and order and also to develop important agricultural lands tra versed by said roads. Project No. 41 is to con nect the north and south coasts of the Island of Tawi-'l'awi where an agricultural colony has lieen established. TOBACCO REVIEW By P. A. MEYER Belgium.................... China........................ Holland................. Hongkong................. Straits Settlements.-. United States.......... Rawleaf: Buy ing in Cagayan and Ysabela provinces continues veryslowly, the farmers hold ing out for higher prices. Ex[x>rts during the month were, aside from the shipments to the United States, practically nil, as shown by the fol lowing figures: Rawleaf, Stripped Tobacco and Scraps Kilos .........................1,943 1,611 2,242 2,230 .......... 1,088 .....................216,207 August. 1937................................... 228,321 July, 1937....................................... August, 1936................................... 507,470 1,086,609 January-August, 1937................... 9,181,748 January-August, 1936................... 10,016,399 Cigar shipments to the United States com pared ns follows: August, 1937............... July, 1937.................... August, 1936 ............. January-August, 1937 January-August. 1936. 17,430,560 15,083,666 16,658,599 110,123,732 110,385.222 MANILA HEMP By H. P. STRICKLER Manila Cordage Company During the first half of August the foreign markets were quiet with a tendency towards lower prices on all grades. This quietness in demand was not unusual as it had followed a fairly active period of buying. However, to wards the middle of August the Sino-Japancse conflict, and the subsequent withdrawal of Japan from the market as a result of the govern ment’s regulations limiting or prohibiting certain exports, affected the market adversely. For eign buyers, realizing that Japan normally imports from 28% to 30% of Philippine abaca, completely withdrew from the market, and this Manufacturers Theodore Roosevelt said: “The only dependable Fortune Teller that I know is the Life Insurance Man. He tells you what is going to happen — and it does.” E. E. ELSER AGENCY INSURANCE COMPANY HEAD OFFICE TORONTO, CANADA ESTABLISHED 1887 cessation of demand produced a sudden crash in prices, the like of which has not been seen for many years. While the rapid decline in prices affected all grades, the grades CD and E and the grades J2 and below to ¥3 suffered most. The interven ing grades declined only slightly owing to their scarcity and owing to the potential demand there is in the world’s markets for them at the present time. Towards the end of the month, foreign buyers in Europe and America commenced to realize that prices had perhaps declined to the limit, and a sporadic demand became evident, prom ising to increase in volume during the first half of September. Prices of Loose liber in Manila Per Picul July 31st CD............. P35.00 E................ 33.00 I'............... 27.00 1................. 22.50 S2............... 20.00 August 31st CD........... P28.00 E............... 26.00 F............... 24.00 1............... 18.50 S2............. 17.50 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 42 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 JI......... I8 60 .11 . 16 00 G.......... 16 50 G . 15 00 THE RICE INDUSTRY .12 . . 1 I 50 .12 12 50 Bv DR. V. BUENCAMINO 1\......... 12 50 K 10 25 Manner. The National Rtct and Corn Corporation 1.1......... 1.2 12 00 1.1. 10 00 11 50 1.2 ....... The month of August witnessed an advancing j"rices of Loos, I'ilxr in Daiuto market as demand from Eastern Visayas and /Yr Picul Bicol region showed a marked improvement Jo'll .list .1 .KJ,.,sf ,;/si while arrivals fit>m producing <•enters registered CD............ 1’31.00 Cl). ... 1’26 00 a deciinc of 50,519 sacks froim the preceding E............... 29.00 E....... 21 00 month. The m:irket opened s teadv and closed !•'............... 27.00 E .. 22 00 active netting ain advance of 15 centavos and I................ 22 50 I . 17 00 20 centavos for Elon-elon ami1 Macau, respecS2.............. 19 75 S2 14 50 lively. Despite the increase iti prices, the NaJI.............. 19 75 JI 14 50 tional Rice and Corn Corporation has not G............... 18 50 G . 13 50 opened its sales 1to the general consuming public .12............... 18 00 .12 . . . . . . 13 50 except in place.- where prices ;ire believed proK............... 17.00 K 12.25 ibitivc. to tec AMERICA kteThe current prices for Elon-elon and other luxury grades of rice are from 1‘6.20 to 1 * 6.40 per sack of 57 kilos, net, with palay of that class quoted from 1 * 3.00 to 1 * 3.10 per sack of 44 kilos, net. Macau, Manila quality, are from 1’5.80 to 1 * 6.00 with palay of same class at 1’2.80 to 1 * 2.85. The National Rice and Corn Corporation has long withdrawn from the market of purchasing palay as quotations were 30 centavos to 35 centavos above its price levels. This policy is in conformity thus far with its objective of not interfering with the normal trend of the market provided that the price of palay does not go below 1’2.50 per sack of 44 kilos, net, depending upon the quality, state, condition, and location of the cereal and the juice of rice remain reasonable. The rice market is predicted to maintain a favorable position as majority of the traders viewed the situation with 'certainty and optimDcspite the recent typhoon and floods that visited Central Luzon provinces and of locust infestations in the Bicol region, the crop out look in general for next year is promising. Beautiful scenery . . . miles of rushing rivers and placid lakes . . . vast agricultural areas .. . interesting American cities . . . these and other thrilling sights await you on the route of the Northern Pacific Railway. Travel in comfort and luxury on the roller-bearing TRAWL NORTH COAST LIMITED Completely Air-Conditioned will help you with baggage and make reserva tions to any point in America. L. A. BUCK, Spacial Paiunger Agent Smith Tower, Seottle, Woshington A. C. STICKLEY, General Agent 912 Government St., Victorio, B. C. W. F. CARR, General Agent 678 Howe St., Vancouver, B. C. R. J. TOZER, Generol Agent 657 Market St., Son Froncisco, Calif. Let our representatives make your arrange ments for a delightful journey through tne American Rockies. Accommodations to suit every purse—luxurious Standard Pullmans, drawing rooms, compart ments, baths, library, radio, valet and barber service—newest type tourist sleeping cars, and new de luxe reclining chair coaches. “Famously Good” meals in the diner as low as 50c; or lunch tray service in tourist cars and coaches. Through to Chicago daily, leaving Seattle at 9:15 p.m.; arriving Chicago 8:45 a.m. third morning. Northern Pacific representatives meet steam ships at Victoria, Vancouver and Seattle. They A/t about the tow One-Way and Round Trip Forel with long limiti and liberal stop-over privileges. nORTHERn PACIFIC RRHiUlRB C. L. TOWNSEND, General Passenger Agent, Smith Tower, Seattle, Washington REAL ESTATE By P. D. CARMAN Addition Hills 1934. As will be seen below, August transfers were considerably below the August total last year but much greater than any of the other totals since 1928: 1935. 1936. 1937. Jan.-Aug. 1929 .......... 1’1,258,277 1930 .......... 983,867 1931 .......... 885,114 1932 .......... 8-19,938 1933 .......... 655,750 ......................................... 690,684 507,214 2,571,792 i ,716,458 1936 .............................................. 1’10,462,756 1937 ............................................... 18,156,687 Sta. Cruz..................... Samptdoc..................... Tondo........................... Binondo....................... San Nicolas................. Ermita.......................... Malate.......................... Paco............................. Sta. Ana....................... Quiapo.......................... San Miguel................. Intramuros................... I’andacan..................... Sta. Mesa..................... Sales City of Manila July August 1937 1937 P206.181 I * 100,321 175,244 79,779 81,775 42,884 337,641 356,641 19,444 361,841 75,668 23,700 279,086 107,933 71,943 346,137 93,857 168,157 52,000 6.750 48,794 6,500 2,000 75,000 1,100 40,815 5,700 Pl,453 433 1*1,716,458 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 43 SHIPPING REVIEW By H. M. CAVENDER General Agent, The Robert Dollar Co. From statistics compiled by the Associated Steamship Lilies during the month of July, there were exported from the Philippines tin * following: The outward cargo amounted to the satisfac tory figure 278,176 re venue tons, exceeding Juncmovcment by35,037 tons. The increase is due to heavy shipments of copra principally to which is added canned pincappples, ores and slight increase in sugar. The Atlantic Coast took 78,996 tons of centrifugal sugar and the Pacific Coast took 2.823 tons of refined. We figure the total sugar movement to flu- I'nited States as 716,039 tons for t he current season. Except for November last the sugar movement has been remarkably uniform. Desiccated coconut shippers forwarded 7,51-1 tons (40 cu. ft.) of their product, a good show ing although less than the June movement. There was no - tanker" movement of coconut oil during the month and the I'nited States, the only buyer, took 10,4.50 tons, deep tank shipments by the berth lines. The copra move ment was markedly heavy 40,063 tons, to Pacific Coast 36,465 tons, to Gulf Coast 3.498 tons and 100 tons to Turkey. The August move ment in copra should be heavy since an increase (•Ilina and Japan............................................................. 8.5,538 Pacific Coast Local Delivery....................................... 50,510 Pacific (’oast Overland................................................. 792 Pacific Coast Intcrcoastal............................................. 3,822 Atlantic and Gulf Coast. ............................................ 115,602 European Ports................................................................ 10,532 All other Ports................................................................ 2,380 A Grand Toial of 278,176 tons with a total of 105 sailings (average which 63,387 tons were carried in American bottoms with 18 sailings (aver; 50 23 6 1,040 39,539 643 13 4 (i 3,822 6 34 18.008 12 16 41 2 22 291 4 ■ 2,650 tons per v<jssel) of ig - 3,521 tons per vessel). in rati-s to I'nited States will be effective on September 1st. The I’nited States market took 5,163 tons of copra cake and Europe 3,049 tons, a total of 8,215 tons. The hemp movement amounted to only 105,784 bales. Japan was in the market again taking 46,115 bales, European demand was also good, 39,447 bales, while the I'nited States took only 15,045 bait's. The remainder as usual was widely distributed. Rope ship ments dropped to only 102 tons of which only 73 tons went to the States, the South American demand was comparatively small also. Logs and lumber we figure as over 12 million feet. Every section of the I'nited States was jn the market and combined took 5-1/2 million feet. A cargo of 1-12 million feet went to Shanghai. Japan received less than 1 million feet. Europe and South Africa bought round lots, and 21,000 feet went to Australia. The shipment of ores reached the figure 75,725 tons. Japan took 58,148 tons of iron, 3,000 tons of manganese, 2,700 tons of copper and 500 tons of chromite, a total of 64,348 tons. The Atlantic Coast took 9,850 tons of Chro mite, the Pacific Coast 1,150 tons of chromite, and 1,377 tons of copper-gold-silver concen trates for treatment at Tacoma. There was a heavy movement of canned pineapples, Hugo shipping 5,930 tons. Tobac co and cigar shipments were about normal, as were shipments of cutch, furniture, gums, em broideries, junk, kapok, kapok seeds, molasses, rubber, hides, lard and margarine, liquors and co co shell charcoal. The mango season is practical ly over, only 74 tons moved during the month. PRESIDENT LINERS SAILINGS TO SEATTLE & VICTORIA “The Express Route” via Hongkong, Shanghai, Kobe, Yokohama SS PRES. JEFFERSON.....................Oct. 6 ss PRES. GRANT...............................Nov. 3 SS PRES. McKINLEY .....................Oct. 20 SS PRES. JACKSON............................Nov. 17 TO SAN FRANCISCO, NEW YORK & BOSTON “The Sunshine Route” via Hongkong, Shanghai, Japan, Honolulu, Los Angeles, Panama Canal & Havana SS PRES. WILSON ...................Oct. 2 SS PRES. CLEVELAND..................... Oct. 30 *SS PRES. HOOVER...........................Oct. 13 * SS PRES. COOLIDGE....................... Nov. 10 *To Los Angeles only. TO NEW YORK & BOSTON via Straits, India, Egypt and Mediterranean ports SS PRES. GARFIELD...................... Sept. 29 SS PRES. MONROE............................Oct. 27 SS PRES. HAYES...............................Oct. 12 SS PRES. ADAMS............................... Nov. 10 For further particulars, apply to AMERICAN MAIL LINE DOLLAR STEAMSHIP LINES Port Area MANILA Tel. 22-44-1 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 44 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 Passenger traffic for the month of July com pared with June shows a decrease in first class and intermediate traffic. Third class traffic shows an increase. The following figures show the number of passengers departing from the Philippines for China, Japan and the Pacific Coast for the month of July, 1937: First Intermediate Third Hongkong..................... 50 117 178 Shanghai....................... 8 16 17 Japan............................ 31 26 34 Honolulu...................... 0 2 21 Pacific Coast............... 92 57 18 Europe via America . . . 8 7 0 Total for July, 1937.. . 189 225 268 Total for June, 1937.. . 209 256 247 OPTICAL SERVICE AT Economical Prices We make it easy for you to give your vision the attention that its impor tance demands. When your glasses are correctly fitted your ef ficiency is greatly increas ed. And at moderate prices it is unnecessary to neglect your needs. • Modern Stylings P. N. Bank Bldg. COPRA AND ITS PRODUCTS By KENNETH B. DAY AND LEO SCHNURMACHER Kenneth B. Day After a resting period during July, all markets dropped rapidly throughout August. It had been expected that with the heavy copra season on, and with crop prospects the world over extremely good, prices must decline in August; but the decline was much more nearly vertical than had been anticipated. At the end of the month the statistical positions for both copra and coconut oil were weak, and, barring the unexpected, it was felt that for the next two months at least markets must continue soft. Copra—Copra arrivals both in Manila and Cebu were extremely heavy, totalling slightly over 600,000 bags in Manila and 480,000 bags in Cebu. This was an unusually heavy seaso- Leo Schnurmachep in Manila and 22% in Cebu as contrasted with the previous month, and 26% in Manila and 5% in Cebu as contrasted with July, 1936. These heavy arrivals registered an advance of nearly 30% as contrasted with the last eight years average. At the end of the month it was expected that arrivals both in Manila and Cebu would continue heavy throughout September, and in Manila at least through October. With contracts fairly well filled up, there were two or three selling waves during the month, these waves being stimulated by the constantly declining prices of coconut oil and the prospects that the decline might continue indefinitely. In spite of the fact that provin cial prices both in Manila and Cebu were con siderably higher throughout the month than base prices, dealers oversold themselves heavily, not only for prompt delivery but for SeptemberOctober delivery as well. At the end of the month it was estimated that September arrivals were anywhere from 50% to 70% sold in ad vance. The month opened with Manila prices show ing buyers at 1’10.50 for rcsecada and sellers at 1’10.75. Prices gradually sagged to a point where at the end of the month buyers were offering 1’8.25 with sellers willing to do a small amount of business at 1’8.50. In Cebu, the big export point, prices were 25 centavos higher for their semi-resecada grade, both at the begin ning and the end of the month. Pacific Coast copra prices dropped from a high of 2.95 cents at the beginning of August to a low of 2.50 cents towards the end of the month. A certain amount of copra was sold to the States, but buyers were asking for fairly prompt ship ment, and space was inadequate to allow any great freedom of trading. The best market of the month was the Euro pean market. Although quotations dropped from £15/0/0 for sundried and £14/15/0 for F. M. Q. to £13/12/6 for sundried and £13/7/6 for F. M. Q., these prices worked out consist ently better than Coast equivalents or local mills could afford to pay, even in spite of the fact that the freight rate to Europe was advanced 8/6d on the 15th of the month. Under these conditions a fair amount of copra was sold to Europe, but the quantity was limited by a distinct shortage of copra space. Most buyers wanted Sept err ber-October shipment, but 6pace nal increase, showing an improvement of 64.5% was very scarce indeed, even for NovemberDecember. Had space been more abundant, doubtless a great deal more copra would have been sold to Europe than actually was sold. Copra shipments for the month were rather light, totalling only 25,000 tons as against 35,000 tons in July. A large part of this decline was due to shortage of space for the Pacific Coast. August was the last month freight rate to the Coast, the rate September 1st being $8. Statistics for the month follow: of the $6 beginning Arrivals— Sacks Manila..................... 601,010 Cebu......................... 481,848 Shipments— Metric Tons Pacific Coast........... 13,034 Atlantic Coast........ 2,824 Gulf Ports................ 7,051 Europe..................... 1,600 Other Countries.... 623 25,132 Beginning End of of Month Month Stocks on hand— Tons Tons Manila..................... 20,873 31,108 Cebu......................... 24,955 27,792 Coconut Oil—Coconut oil prices showed a gradual decrease throughout the month. On August 1st oil could be sold at 4-3/4 cents c.i.f. New York and 4-1/2 cents f.o.b. Pacific Coast. At the end of the month, buyers were bidding 4 cents c. i. f. New York and 3-7/8 cents f.o.b. Pacific Coast with a small possibility that pre ferred shipments might command 1/8 cent better in small quantity. The price of coconut oil was consistently hammered down throughout the month with buyers backing away every time they bought. They were in a peculiarly fortunate position to do this because most large consumers arc well supplied for the rest of the year, because domestic production of oilseeds gives promise of resulting in bumper crops (par ticularly the cotton crop, which is estimated at over 16 million bales), and because of the press of offerings of outside oils, particularly coconut oil, which is less sold up than other oils. When coconut oil reached 4 cents sellers became less interested and immediately the IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 45 market- tightened up a bit, but. there was no indication at the end of the month that any groat improvement could be expected in Sep tember. Buying on the whole was spotty with soapers and the edible trade both buying spar ingly and in limited quantities. Shipments for the month were heavy, totalling nearly 20,000 tons, with 2/3 of them destined for the Atlantic Coast. Statistics for the month follow: Metric Tons Shipments— Pacific Coast.................................. 2,274 Atlantic Coast................................ 14,177 Gulf Ports....................................... 3,073 China and Japan........................... 11 Other Countries............................. 7 QHje jjofeofjama Specie Jtafc - Itb. (Established 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital (Paid Up)........................................................................................ 100,000,000.00 Reserve Funds.............................................................................................. 134,400,000.00 Undivided Profits........................................................................................... 10,745,726.93 Beginning of Month Metric Tons Stocks on hand in Manila and Cebu..................... 10,SGI Copra Cake and Meal—The American meal 19,542 End of Month Metric 8,563 MANILA BRANCH 34 Plaza Cervantes, Manila S. Dazai, Manager Telephone 2-35-28 Import Dept. Telephone 2-37 58 Export & Current Deposit Account Dept. Telephone 2-37-59 Manager Telephone 2-37-68 Remittance & Deposit Dept. Telephone 2-37-55 Cashier & Accountant market cracked wide open in August, due largely to the prospects for a great quantity of all kinds of fresh feeds and concentrates. At the end of July the price of copra meal was nominally S31.00 c.i.f. Pacific Coast. At the end of Au gust, if any bids could be obtained they were at not over $27.00 with buyers only oceassionally interested. Considering that the freight rate advanced $2 September 1st, these prices were even less attractive than the price ratio in dicates. That home and garden which you always dreamed of— SAN JUAN HEIGHTS is the best place for it The European copra cake market likewise declined, dropping from S33.75 c.i.f. Hamburg at the beginning of the month to $33.00 at the close. This decline was also the result of the great amount of miscellaneous cakes and meals being offered in Northern Europe and Scandi navia, but there was a fair buying interest throughout the month with the only bar to added business consisting of shortage of shij>ping space. Philippine mills sold a good deal of cake to Europe during August for shipment up to the end of the year, and in some cases early into 1938. Statistics for the month follow: Metric TonShipments— Pacific Coast.................................. 4,268 Europe............................................. 3.504 China and Japan........................... 7,923 lieginning of End of Month Month Metric Tons Metric Tons Stocks on hand in Maifila and Cebu..................... 3,304 4,743 Desiccated Coconut—Exports of desiccated coconut in August were almost exactly the same as in July, totalling 4,243 tons gross. De siccated factories were running at normal capa city and plenty of nuts were available at ever decreasing prices. Demand for desiccated in the United States was sluggish with most factories sitting on fairly large inventories. Prices were unchanged, but it was expected (Please, turn to page Jt8) SAN JUAN HEIGHTS CO., INC. 680 Ave. Rizal P. O. Box 961 Tel. 2-15-01 MANILA IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 46 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 LUMBER REVIEW By FLORENCIO TAMESIS Director, Bureau of Forestry 'l'otal lumber and timber exports in .June amounted to 29,691,872 board feet or an increase of 159,424 board feet over the pre vious month and 11,541 704 board feet over the cor responding month last year. The great bulk of the exports went to Japan in the form of round logs. The total amount shipped to Japan during the month under review was 22,997,336 board feet, compared with the same month in 1936 registered an increase of 84%. This is the biggest shipment made to this market. However, the trade with Japan is expected to decline considerably on account of the un declared Sino-Japanese conflict. Several Jap anese ships which used to transport logs from the Philippines to Japan have, it is reported, been commandeered by the Japanese Government. Furthermore, the Japanese Government has decided to restrict importations, except those that are needed for war purposes. Shipments to China in June which consisted of round logs totalled 939,584 board feet as against 433,328 board feet in the form of lumber in May. The trade with China will, it is ex pected, be drastically curtailed if not totally stopped on account of. the Japanese blockade of Chinese ports. Several Shanghai firms who had been contemplating making connection with timber dealers here have now undoubtedly abandoned their plans. Exports of lumber and timber to the United States during the month under review registered an abrupt decline of 68% compared with the previous month. The decrease was due to an apparently heavy stocks on hand in the above market, due to the unusually large shipments made in April and May. However, the actual shipment is still considered normal. This country still remained the leading consumer of Philippine sawed lumber. Consumption in Great Britain in June showed slight decrease over the previous month. Shipments to this market during the month under review totalled 564,344 board feet as against 589,360 board feet in May. Lumber and timber exports to Australia registered an increase of 100% over the previous months The total shipments to this market in June amounted to 503,712 board feet compared with 251,856 board feet in May. Demand in Korea was irregular. There were shipped to this market during the month under review 451,560 board feet of lumber and timber as against none of the corresponding period in 1936. This was the first shipment made during the current year. British Africa remained steady consumer of Philippine sawed lumber. Shipments to this market in June amounted to 363,792 board feet compared with 258,640 board feet the previous month, or an increase of 41%. Demand in the domestic market continued active. Prices for common stocks remained at high levels. Mill production in June ep.. STATEMENT SHOWING LUMBER AND TIMBER EXPORTS DURING THE MONTH OF JUNE, 1936 AND 1937 Japan. United States. China. Great Britain Australia. Koren. Sweden Portuguese Africa Netherlands Ireland. Mexico. Hawaii Norway. Denmark. Belgium. New Zealand Canada Singapore Other Br. E. Indies Total GnANn Total Unsawn Timber. Sawn Lumber. . Unsawn Timber Sawn Lumber Unsawn Timber. Sawn Lumber. . Unsawn Timber Sawn Lumber. Unsawn Timber. Sawn Lumber. . Unsawn Timber. Sawn Lumber. . . Unsawn Timber ’ Sawn Lumber. . Unsawn Timber. Sawn Lumber. . Unsawn Timber Sawn Lumber. . Unsawn Timber Sawn Lumber . Unsawn Timber. Sawn Lumber . Unsawn Timber Sawn Lumber. . Unsawn Timber Sawn J.umber. . Unsawn Timber. Sawn Lumber Unsawn Timber Sawn Lumber . . Unsawn Timber. Sawn Lumber Unsawn Timber Sawn Lumber . Portuguese E. Indies. Unsawn Timber. Sawn Lumber. . Unsawn Timber. Sawn Lumber. Unsawn Timber Sawn Lumber . Unsawn Timber. Sawn Lumber. . For 50 Mills for the Month of June Note:—Board Feet should be used. Month Lumber Dclivciries from Mills Lumber Inventory Mill Production 1937 1936 1937 1936 1937 1936 June................. ............. 22,345,839 21,978,679 33,345,839 33,591,231 20,030,500 21,460,949 slight decrease over the corresponding month last year. Lumber deliveries during the month under review exceeded production by 12%. The following statements show the lumber and timber exports, by countries, and the mill production and lumber inventories for the month of June, 1937, as compared with the correspond ing month of the previous year. 1937 1930 22,997,336 P430,664 12,451,184 1*218,696 Quantity in Customs-Dc- Quantity in Customs-DeBoard Feet dared Value Board Fret dared Value 26,683 18,656 19,928 23.744 22,65 297,203 3,498,000 ,871 897 895,064 September, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 47 Commodities Canton (Low Grade Cordage Fiber) Cigars (Number)................................... Coconut Oil............................................ Copra Meal............................................. Cordage.................................................... Desiccated and Shredded Coconut. . Embroideries........................................... Hats Number.......................................... Knotted Hemp....................................... Leaf Tobacco.......................................... Lumber (Cu. M.).................................. Maguey.................................................... Pearl Buttons (Gross)........................... Sugar.......................................................... Other Products........................................ Total Domestic Products..................... United States Products......................... Foreign Countries Products................. Grand Total..................................... PRINCIPAL IMPORTS At tides July. 1937 July. 1936 PRINCIPAL EXPORTS ■July. 1937 Quantity P P29.334.129 52.566 15tll3 P29.401.808 Monthly average for 12 months previous to July. 1937 Monthly average for 12 months previous to July. 1937 0 1 10 14 2 0 7 1 1 0 789.360 12,920,259 16.968,427 29.570,109 7.591.205 438.829 2,906.458 Value 68,080 400,190 2.645.471 2,650,010 215.659 142.045 754.400 579,814 61,435 3.334,285 5,361 446.061 404,901 249.464 43,092 7.254,957 3,508,730 0 6 7 31 15 6 2 IMPORTS Quantity P Value % 68,073 455.164 2,917,022 2.365,168 368,945 236.954 963,167 572,050 94,025 5.345.533 9.289 300,349 316.699 208.317 43,471 8,687,353 971,046 P23,922,625 114.095 38,748 2 0 22 2 9 5 9 0 2 9 2 0 Automobile........................ Automobile Accessories.. Automobile Tires............. Books and Other Printed Matter............................ Breadstuff Except Wheat Flour............................... Cacao Manufactures Ex cept Candy................... Cars and Carriages......... Chemicals Dyes, Drugs, Etc................................... Coal..................................... Coffee Raw und Prepared. Cotton Cloths................... Cotton. All Other............ Dairy Products................ Diamond and Other Pre cious Stones Unset.... Earthern Stone and China Eggs and Preparation of.. Electrical Machinery.. .. Explosives.......................... Fertilizers........................... Fibers, Vegetables and Manufactures of.......... Fish and Fish Products .. Fruits and Nuts.............. Gasoline.............................. Glass and Glassware.. .. India Rubber Goods.. .. Instrument and Appa ratus not Electrical. .. Iron and Steel Except Machinery..................... Leather Goods.................. Machinery and Parts of. Meat Products................. Oil, Crude......................... Oil, Illuminating.............. Oil Lubricating................. Other Oils, Animal, Min eral and Vegetable.. .. Paints, Pigments, Var nish, Etc........................ Paper Goods Except Books.............................. Perfumery and Other Toilet Goods................. Rice..................................... Shoes and Other Foot wear................................. Silk, Artificial.................. Silk, Natural..................... Sugar and Molasses........ Tobacco and Manufac tures of........................... Vegetables.......................... Wax..................................... Wheat Flour..................... Wood, Reed, Bamboc and Rattan............................ Woolen Goods.................' Other Imports.................. Grand Total................ ~ 515,776 218.789 194.431 74.755 97.320 128.163 191.072 G44.312 196.023 432,999 P19,227,946 0 9 0. 0. 0. 0 0 1 1 8 5 6 2 1 2 2 0 5 7 0 2 7 0 3 3 0 0 0 8 1 333.28G S5.O7 96.843 67,306 71.676 138.633 68,718 446.029 1,477.039 240.016 76,271 4G8.304 P 14.936,619 % 6 2 0 0 0 2. 0. 0. 10. 3 2 0 7 0 6 3 8 2 2 6 0 4 6 1 3 0 5 2 0 0 3 0 2 7 0 0 9 3 0 0 Value 1G8.974 113,091 100.034 100.721 24.063 533,945 161,936 334,263 82.789 109.862 149.137 407,876 127,004 739.733 47,372 340.850 130.685 87.169 33.384 73.601 86.008 1.655,228 P17.753.280 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Ports July. 1937 July. 1936 Value Nationality of Vessels , July. 1937 July. 193G Monthly average for 12 months previous to July, 1937 3.0 0.8 1.4 0.6 3' 7 0.6 0.6 0. 1 2.9 0.9 1.9 0.7 0. 5 0.6 0.8 2.3 ).7 3. 5 0.9 0. 5 3.7 Value Value Value % Iloilo..................... Cebu..................... Zamboanga.......... Legaspi................. josfi Pangamban. 0 9 7 3 Value Monthly average fo 12 months previous to July. 1937 57.4 16.6 16.9 Value % 26,428,667 63.0 5,645.823 13.4 5,942.546 14.2 P48.629.754 1.2 P38.033.131 P41.828.74S 0.5 American.................... British......................... Chinese....................... Danish........................ Dutch......................... French........................ German....................... Greek......................... Italian......................... Japanese..................... Norwegian................. Panaman.................... Philippine................... Swedish...................... By Freight................ American Aeroplane. Mail............................ Total........................... P19.227.946 2. Nationality of Vessels American.................... British......................... Chinese....................... Danish........................ Dutch.......................... French......................... German....................... Greek.......................... Italian......................... Japanese..................... Norwegian................. Panaman.................... Philippines................. Swedish....................... By Freight................ American Aeroplane. Mail............................ Total........................... 8 4 2 8.8 14.G 0.7 0. P 0-2 As 469,440 3.2 505,010 P17,753.280 Pll,936,619 EXPORTS July .1937 July, 1936 Value Value P 6,521,399 5.151.628 35.000 547.081 967,322 30 24 0 2 4 % 2.8 Monthly average for 12 months previous to July. 1937 6 2 2 5 Value 0.6 3.2 3.9 769,580 6.476.180 4.664.173 434.281 87.631 P29.401.808 2.8 2 0 1 22 3 7 9 J 2.4 217.153 O.’l 0.7 P23.096.512 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Countries July. 1937 July, 1936 Monthly average for 12 months previous to J uly, 1937 Value Value % Value United States......... United Kingdom.. . Australia................... Belgium.................... British East Indies. Canada..................... Denmark.................. Dutch East Indies.. French East Indies. Germany.................. Hongkong................. Italy........................... Japanese-China........ Netherlands............... Norway...................... Sweden...................... Switzerland................ Other Countries.. .. Total........................... 73 2 0 9 9 6 0.2 0.3 0.9 69. 3. 8 7 9 1 7 2 3 2 0 3 • 0 1 70. 3. 1. 9 3 7 6 2 9 2 9 48 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1937 RAIL COMMODITY MOVEMENTS By LEON M. LAZ AG A Traffic Manager, Manila Railroad Company The volume of commodities received in Ma nila during the month of August 1937, via the Manila Railroad Company arc as follows: Rice, cavanes................................ 154,688 Sugar, piculs................................. 65,934 Copra, piculs................................ 154,686 Desiccated Coconuts, cases........ 44,062 Tobacco, bales.............................. 3,903 Lumber, board feet...................... 159,186 Timber, kilos................................. 139,000 FREIGHT REVENUE CAR LOADING COMMODITIES NUMBER OF | FREIGHT CARS | FREIGHT Decrease * 1937 1936 1 1937 1936 Cars Tonnage Rice................................................ Palay.............................................. 658 615 8,914 7,851 43 1,063 57 755 198 Sugar.............................................. 118 257 3,496 8,228 139 4,732 Sugar Cane.................................... 670 617 5,062 4,216 846 Coconuts....................................... 81 121 804 1,460 (40) (656) Molasses........................................ 16 3 13 208 70 8 70 Tobacco......................................... 32 421 362 17 59 Livestock....................................... 13 62 50 2 12 Mineral Products........................ 215 227 2,264 2.513 (12) (249) Lumber and Timber................... 136 2,117 3,318 (51) (1,201) Forost Products........................... ' 2 22 78 (56) Manufactures................................ 196 129 3,059 1,850 67 1,209 All others including L.C.L......... 2,560 2,538 16,664 15,551 22 1,113 Total..................................... 4,728 4,7441 44,011 46,127 (16) (2,116) The freight revenue car loading statistics for four weeks ending August 28, 1937, as compared with the same period of 1936 are given below: August 7 Week ending Week ending Week ending August 2 Week ending Augu SUMMARY Copra and its . . . (Continued from page that there would be a reduction in the b:tse price in September. It is thought that dcsicated supply will exceed demand until stimu lated by seasonal requirements accompanying the Christmas trade. Gexehal—On August 20th the southern part of Luzon and islands adjacent thereto suffered a severe earthquake. It is thought that the results of this earthquake may be felt in consider ably decreased production from the parts most severely affected commencing early in 1938 and lasting for perhaps a year. The Joint Preparatory Committee appointed by the President of the United States and the President of the Commonwealth reached Ma nila and prepared for hearings on future Philippine-Amcrican trade relations, said hear ings to commence September 15th. It was expected that the copra producers, the coconut oil mills, and the desiccated coconut factories would all present arguments and briefs before this Committee. Confused conditions in Northern China in many instances upset business considerably during the last part of August. It is difficult to see just what effect these conditions may have on the copra and oil industries, but both buyers and sellers are watching the situation carefully with the possibility that there may be some reaction one way or the other. Barring even tualities in this quarter, however, it is felt that copra and coconut oil are not in for a very happy time for the next few months, particularly because the price of copra is getting down dan gerously near to fair production costs. It is often found, however, that when things look the worst, a turning point may come unex pectedly, and, in spite of the statistical position, copra and coconut oil arc reasonably priced to day and might conceivably maintain approxi mately their present levels. This is something, however, which is a matter of conjecture rather than a demonstrable fact. BUSINESS AND PROFESSIONAL DIRECTORY Kerr Steamship Co., Inc. General Agents “SILVER FLEET” Express Freight Services Phi lippines-Ne w Yo rk-Boston Philippines-Pacific Coast (Direct) Roosevelt Steamship Agency Agents Chaco Bldg Phone 2-15-21 Manila, P. I. P. O. Boz 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. Philippines Cold Stores Wholesale and Retail Dealers in American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila, P. I. KWtKftWM tr ® M * CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description AMERICAN CHAMBER OF COMMERCE JOURNAL P. O. Box 1638 — Manila — 180 David RATES Philippines - - - P4.00 per year United States - - $ 2.00 ” ” Foreign Countries- $3.00 ” ” IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Creosote Is An ‘Antidote’ for Ants White ants simply will not associate with creosote or anything that has creosote in it. Taking advantage of this knowledge it will pay you to use nothing but ■ i CRECSCTED LUMBER Rot is another problem that , causes large losses. Again i creosoted lumber brings a great saving. Actual use of i this has proven that it will prolong the life of lumber for many more years. We have ample stocks for all purposes, including piles and ties. ATLANTIC, GULF & PACIFIC COMPANY ELECTROLUX IS SIMPLER.. MORE EFFICIENT It operates without machinery... offers you these big advantages: PERMANENT SILENCE NO MOVING PARTS TO WEAR SAVINGS THAT PAY FOR IT CONTINUED LOW RUNNING COST ELECTROLUX has the simplest of all refrigerating methods ... a tiny gas flame takes the place of every moving, wearing part. As a result, Electrolux is always silent . . . assures you of long service at low cost. Come in today and see Elec trolux. MANILA GAS CORPORATION 136-138 T. Pinpin IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Reduce Building Costs with CANEC The material that insulates against heat and noise Strong, durable, economical, CANEC Wall Board fills a definite need in all building construction work. It is easily and quickly installed -lowers labor costs. It insulates against both heat and sound is an ideal material for interior ceil ings and partitions. Liu/ Ciiiii'C multrncath (!. I. Roojiiuj to keep out heat CANEC_ Js. vermin-proof, rot-proof, and fire-resisting. Anay will not attack CANEC. For new buildings, or for re modelling. old ones, CANEC meets every requirement for economy and long life. Samples and Information Upon Request PACIFIC COMMERCIAL COMPANY Cebu Manila Iloilo Agreed!! <®> I X a perfect blend perfectly brewed a product of the There is a difference in ages— andjhere may be many subjects that cause a difference of opi nion. But, there is one thing on which they both agree—The Best Beer for both is SAN MIGUEL III Ml I > the home of quality prices IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL