The American Chamber of Commerce Journal Vol. XVII, No.10 October 1937

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XVII, No.10 October 1937
Issue Date: Vol. XVII, No.10 October 1937
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extracted text: Hawes to the MacMurray Committee Brief by the American Chamber of Commerce Howe Advocates Totalitarianism Japanese Chamber Surprises Filipinos Sumulong’s Brief for Popular Front Wants Economic Breathing Spell for Islands EDITORIAL Clarifying the Facts Mining Reviews Will We Have Another Boom? Price Pegging Experiment The Stock Market Survey of Industrial Metals By United Press September, 1937, Gold Production OTHER FEATURES AND THE USUAL EXPERT MINING AND COMMERCIAL REVIEWS Canadian Pacific At Victoria connection can be made for Seattle and points in the U. S. A. At Vancouver the Empresses dock at the new (’. I’. R. Pier which adjoins the ( anadian Pacific Railway Station. Travel East, via the majestic Canadian Rockies, in clean, cool air-conditioned comfort. The latest type of air-conditioned equipment available on the north American Continent. 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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, Manila List of Distri butors furnished upon re quest to— C. A. Bond 15 Williams Street, New Collector of Internal Manila, P. I. Revenue MANILAS made under sanitary conditions will satisfy your taste! I (Health Bulletin No. 28( Rules and Regulations for the Sanitary Control of the Factories of Tobacco Products. “Section 15. Insanitary Acts.— No person engaged in the handling, preparation, processing, manufacture, or packing o’f 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, i or use saliva, impure water, or other I unwholesome substances as a moist- ■ ening agent;. . While you await the serving of your order, there is nothing more tempting to whet the appetite—than the grand old brew— a product of the SAN MIGUEL BREWERY IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 NCTICf Unequivocal Guaranty on WESTON 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 KRUEGERS 'The first BEER IN KEGLINED CANS AT ALL GROCERS OR DIRECT FROM TRANI-PACIFIC - TRADING,CO. Good for a Healthy Thirst! ALL SIZES, PRICES AS LOW AS P100.00 STOVES INSTALLED 8 YEARS ARE STILL OPERATING AND NO TROUBLE NON EXPLOSIVE—NO GADGETS TO TROUBLE YOU A CLEAN FLAME—NO SMOKE—NO SOOT ECONOMY GUARANTEED Listed as. Standard By Board of Underwriters KRESKY Fool-Proof OIL BURNING RANGES manufactured specifically for CAMPS, HOTELS, HOUSEHOLD. ALL SIZES—ALL FULLY AUTOMATIC YOUR OLD WOOD or COAL STOVE CAN BE CHANGED in 30 minutes to an OIL BURNING RANGE. CONSUMPTION—As low as 10 hours per gallon of oil The largest institutions in the Philippines operate and recommend KRESKY, “They Can’t All Be Wrong” R. J.YEARSTaEY-,2B.!:K"im' Gall the Sugar Mews Pre// Tel. 2-12-75 for ENGRAVED • X’MAS CARDS • INVITATIONS • STATIONERY Printers of Reliability /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CH AMEER OF COMMERCE JOURNAL Entered as Second Class Matter May 25, 1921 at the Post Office at Manila. P. I. Single Copies: 35 centavos WALTER ROBB Editor and Manager Hawes to the MacMurray Committee' Students of history will find no parallel or precedent in the annals of human events for either the past or present relationship between the Philippine people and the American Government. As we approach a termination of this relationship, we shall either carry on under the established policy of 39 years, or abandon it and subject ourselves to the con demnation of intelligent thought throughout the world. Fortunately, an abandonment of the traditional policy is not necessary. No selfish consideration can justify'a ■change. Clarification is advisable, removal of uncer tainty is necessary, and an agreement on a definite fixed program in accord with our past policy is essential. Certainty for a fixed period is as important from the international viewpoint as from considerations of reci procal trade. While the future of American-Philippine relationship cannot be determined solely upon the basis of sugar, copra, abaca or any other commodity, these are the major present blood streams that keep alive a valuable trade between the two countries. The control and direction of this relationship has been with the American Congress, which, with the approval of our Presidents, has always followed the initial policy of guardian and ward, a trusteeship of as high and moral an obligation as that of parent and child, but of even greater responsibility because created by a great nation in its treatment of a dependent people whose destiny it had assumed by force of arms. In dealing with the future, in making plans for the immediate years ahead of us, whether in carrying out the 1946 plan agreed to, or in shortening that period, or in specific preparation of conventions at the conclusion of any determined period, there must be a sustained consistency with past policy. When your distinguished Committee makes its report to President Roosevelt to be transmitted for acceptance or rejection to the American Congress, and to President Quezon for acceptance or rejection by the Philippine As sembly, the necessity of keeping in mind a complete understanding of the past, with its fine inspirational his tory, is obvious, that it may not be changed in any way from that clear period of enlightened advancement in political fundamentals, with its Christian philosophy in a part of the world where it is not so well known. If there be some deviation here from the immediate subject of sugar, with which this brief is primarily con cerned, it is because no single item of commerce can be segregated from the rest, and the question of commerce cannot be understood without some knowledge of its political origin and growth. Fortunately, the rest of the world will consider our future relationship to the Philippines with an under standing indulgence. They would pursue the same course under similar circumstances. All foreign nations will expect a transition period for readjustment, unless a covetous eye, or a grasping hand interferes with the broad principle of the status of guardian and ward. * This month we give our Just Little Things department to these important remarks by ex-Senator Harry B. Hawes on the most vital question facing the Philippines, their relations with the United States.—W. R. (Slnbe - Wernicke Automatic Record Control provides important facts instantly • When applied to slock records, inactive items and vitally essential datas are • With it, activity of lines, salesmen, customers is set out—new prospects or leads follow—all with a minimum work and expense—results, actual in crease sales. (Slobr-Krrnirkr VISIBLE RECORD EQUIPMENT DEPENDABLE QUALITY Ask Us to PROVE How Visible Records Will Help Your Business. . . Phone oi- 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 CH AMEER OP COMMERCE JOURNAL 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL. October, 1937 Brief by the American Chamber of Commerce • Ask equitable income tax treatment Our Chamber of Commerce submitted a brief to the MacMurray committee, supplemented by oral discus sions. The inequitability of Federal income-tax laws as applied in the Philippines was thus brought to the at tention of the committee and the authorities at Washing ton. Preliminary to the tax issue, the brief made a clear exposition of the Philippine trade that shows how vitally Pacific-coast states would be affected by the abolition or drastic amendment of the terms on which this trade is based. Philippine raw products bought in the United States don’t compete with American products; instead, they afford no little employment to American labor and capi tal, notably in the Pacific-coast states. They also yield the Islands funds for buying American goods, again largely from the Pacific coast. The trade is reciprocal between the one coast and the other. Since Philippine products are staple manufacturing necessities in the United States, should they cease to be obtained in the Islands they would be obtained, at least substitutes for them would be obtained, from other sources with which the Pacific-coast states’ commercial contacts would prob ably be less direct. Trade summing scores of millions of dollars a year might thus be shifted from the states that have laboriously established it with the Philippines. This would be of no advantage to the United States, rather it would be to their material disadvantage. Pacific-coast states, railways and allied interests should be roused to a sense of the jeopardy their ocean com merce on the Pacific is placed in by the possibility that trade terms between the Islands and the United States will be changed. The brief of the American chambei’ of commerce is fully informative on the point. It affects America more than it does Americans in the Islands. Another vital point argued to the committee is the mat ter of American civil rights in the Islands after 1946, when in absence of remedial action by Congress Amer ican sovereignty over the Islands will terminate. Prior to that time, American civil rights in the Islands are those enjoyed by Philippine citizens themselves—the Is lands are territory of the United States. The general request, however, emanating from the Philippine people and their most authoritative representatives, is for in definite extension of existing terms of commerce between the United States and the Philippines. Associated with this, obviously, should go extension of Americans’ en joyment in the Islands of the civil rights of their citi zens. As long as preferential trade arrangements per sist, essential as they are to the Islands’ economic sur vival, “citizens and corporations of the United States (should) continue to enjoy equal civil rights with citi zens and corporations of the Philippine Islands.” In his brief for bus-transportation companies, quoted in our September issue, Judge L. D. Lockwood spoke of the importance of having Congress define the term civil rights as it appears in the Tydings-McDuffie act: not merely the right to hold property, as a bus line may own and operate thirty trucks, but the right to acquire, convey and transfer property, as a bus line might obtain new certificates of public convenience and buy and operate additional trucks—and continue so to do after 1946. The necessity of forced liquidations should be obviated, otherwise Americans will be drastically penalized here for their enterprise in building up American trade and risking their careers and capital in its behalf. The income-tax question is an abstruse one hardly to be clearly treated in summary. But the meat of it is that from the very beginning Americans have generally supposed themselves to be on an income-tax basis iden tical with that of Filipinos and foreigners who are their business associates and competitors. With the effort in 1937 of the U. 8. Internal Revenue Bureau to collect in come taxes from Americans running back twenty years, but not from Filipinos and foreigners, this assumption is entirely overthrown and Americans claimed to be sub ject to tne tax face a situation entirely unfair—one that in many instances could take a man’s entire resources. • All seems to hinge upon construction of the U. S. In ternal Revenue Act of 1918, and in that act, patently, it seems to us that the intention of Congress was to con tinue Americans in the Islands and bona fide residents here on the same footing precisely as Filipinos and for eigners. In 1921 and subsequently, the internal revenue acts have carried clauses to prevent the Philippines from becoming an asylum for tax evaders—this showing again and again that Congress means Americans, Filipinos, and foreigners legally resident in the Islands to be taxed alike under its internal revenue enactments, Americans not taxed more than the others. There was no U. S. Internal Revenue office in the Islands until this year, when one was opened in Manila. There are still no U. S. courts here through which cases may be clarified and redress obtained. But the business of collecting continues, to the prejudice of sale of Amer ican goods and the welfare of merchants sustaining and expanding their markets here. “Are you not willing to pay for the privilege of being an American?” is asked. To be an American is indeed a privilege, but in these Is lands, by settled congressional policy, it is a privilege not shared by all Filipinos equally with Americans re siding here, practically speaking, including the privilege of passports, and its business advantages extend to for eigners for whose welfare America is also voluntarily responsible under the Treaty of Paris by which Spain ceded the Islands to the United States. The foreigner may at once claim under the treaty, but the American’s redress is by way of petition founded in no such solid obligation; and this particular petition should receive attention in Congress immediately the session convenes. October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 Howe Advocates Totalitarianism • Tribune Digests Third Lecture This paper closes with the Manila Tribune's digest of the third lecture at the University of the Philippines of Dr. Frederic C. Howe, economics adviser to the Com monwealth of the Philippines. The reader should prob ably take it as an exposition of totalitarian policy as practiced in Germany by Hitler, therefore an extreme position, or idealization, that even Dr. Howe him self would not advise the Philippines to take in stride were the Islands to become independent. Our own view is that however good for Germany, or for Italy, or for Russia, totalitarianism is inimicable with democracy and its benefits to the state that is readily resourceful are not worth the price to be paid for them. Germany is not to be envied by Denmark, who gets along without such doctrines. Italy is not to be envied by any of the middle-of-the-road states managing by one means and another to retain their constitutions. Ireland’s case is an unhappy one, but land reforms pro ceed even there without reduction of the people to the •status of hirelings of the state. Totalitarianism, if it remedies anything at all, remedies situations that have otherwise failed. Philippine economy has not failed, nor is it seriously threatened with failure. The economic power of this remarkable country is resilient. We sug gest that it is model, in many aspects; instead of having to imitate anyone or any exotic economic and social philo sophy, the world could find here some sound examples for imitation. Why should not this country exalt the frugal rules of.life of its people, why are these not ac cepted as a splendid social economic foundation of civic policy? Are the people content to vegetate? Not alto gether, they demand education and retention of civic rights. Are they perhaps too much inclined toward re gimentation? Alas, they may be—totalitarianism would but accentuate this civic fault, while continuation of de mocracy would moderate it. Fearing nothing, if they but retain some gentle asso ciation with the United States, the Philippines can grow in the atmosphere of sound democracy for generations to come—before arriving at a point where all their eggs must be placed in one basket and that basket safe guarded by a dictatorial state. Totalitarianism boasts its contrast with democracy, of which it is contemptuous before it has won its own spurs. The people exist for the state? It is more acceptable on earth, as it is in heaven, that the state exists for the people. Orgiastical regimes attest state weakness, not strength. It is wiser to sympathize with all peoples unfortunate enough to have to found and tolerate such regimes, than it is to cherish the slightest thought of imitating them. Besides, who is so systematic as the German, so de votedly given to method ? Certainly not the free-should ered Philippine citizen. In short, the Islands should adopt nothing—until they carefully appraise what they have, particularly that part that is their own, deeply sourced in their ancient culture and blended with their modern experience. “The whole world could buy from the Philippines if it could sell as well,” Dr. Howe is quoted as saying, sug gesting a leap toward free trade. But why leap? Why not go forward prudently, step by step? Free trade without industries and a merchant marine is submission to foreign economic exploitation, is it not? Why not procure industry .and a merchant marine by aid of a tolerable tariff, and then, should it then be advisable, plug for free trade? If you have duties encouraging domestic manufactures by lifting the landed cost of Ja panese goods and perhaps keeping some of them out of your market altogether, will you not still sell Japan what she wants: fiber, logs, base metals? Certainly, because she is your major market and makes you sell cheap to her, all surplus products that can’t be freighted to more remote customers. (In her position, you or anyone else would do likewise.) If all the world would buy here, if it could but sell, let it stipulate what manufactures it will take in exchange for its own. Adjust your tariff accordingly. What, by the way, will Germany buy here, an example, supporting our side of this discussion? Nothing she can’t duplicate synthetically at home. What will England buy in ex change for Manchester stuffs? Nothing available in her own colonies, except you arrange with her to try some of your exotic manufactures to maintain the exchange equitably. But first of all, and examples throughout the world show it, you can do nothing much beyond keeping up your major commerce with the United States until you have your own ships. Meanwhile, are you econo mically poor? No. Your economic position is enviable, as it deserves to be: analyze, evaluate, and keep it. Trade Planning Germany’s scientific and intelligent planning of her external trade and internal industry as a whole is a sugtion as to the future policy of the Philippines, Dr. Fre deric C. Howe, economic adviser to the Commonwealth, said in the third of- his series of lectures delivered at tne University of the Philippines. The Philippines, like Germany, will be forced to de velop a new national economy, Dr. Howe pointed out, and she may adopt an approacn to free trade so that her people can buy as cneapiy from other countries and sell vneir own products in exchange. “The whole world could buy from the Philippines if it could sell as well.” Discussing landlordism, he said that its liquidation is but one of the many things in a planned economy, and is designed for the same end that leads to a planned and well balanced industry. Dr. Howe explained that the farmer is treated as a capitalist, but as a capitalist he must work his own land. He cannot rent it and he should not and he may not speculate in it. Germany, whose agragrian program Dr. Howe discussed yesterday, declares that the land belongs to all the people and must be used for the benefit of ail the people. Land reform in Germany, he explained, has been or derly, being carried on by each government in turn. “The Hitler regime, in my opinion, is more concerned about the farmers than about any other class,” Dr. Howe said. “As in Ireland, a continuing program is in process of dividing up the great estates into farm holdings of from 30 to 50 acres and of small suburban holdings for artisans of about 1,000 square meters. (I'lcase turn to page IS) THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 Japanese Chamber Suprises the Filipinos • Islands a Base of Triangular Commerce Submission of a brief of their own to the MacMurray committee by the Japanese chamber of commerce agi tated a great many Filipinos who wondered that a body of foreign merchants and industrialists should interpose its views on a question more directly concerning the the Philippines and the United States. It was, how ever, not surprising to us. It was frank. It was due notice served. It has long been among our duties to observe as accurately as possible Japan’s political atti tude toward the Philippines. Conclusions were reached about this long ago, and stated more than once. If re petition is permissible, our conviction is that one shred of the sovereignty of the people of the United States extended over the Philippines is enough and will con tinue to be enough to command Japan’s respect. Japan does not care how long America remains in the Islands, but will take steps to come in on a moment’s notice im mediately America gets out. Japan has an Asiatic policy. She does not conceal it, she exploits it publicly on all occasions. It is exten sion of her own hegemony over the Far East. This po licy now takes into consideration the fact that American sovereignty persists in the Philippines. So much for that, say the Japanese, resigned to the fact that half a loaf is better than no bread; and besides that, there may be other, broader reasons why Japan is just as well pleased to have America in the Philippines as she would be should America withdraw. Should America Withdraw (and the McMurray com mittee sits on that account), Japan is coming forward now with exactly the proposals she would suggest were the business of the worldwide recognition of the neutral ity of the Philippines up for action. This should sur prise no one. It is fair warning, and Japan will surely cite it when the time comes to do so. Foi’ which reason we devote a little space to some of the Japanese state ments to the MacMurray committee: “To begin with,” says the brief, “we wish to clarify our attitude and state that we, for one, are not opposed either to the advancement of the date of Philippine in dependence or to revision of the Tydings-McDuffie law. But we believe that in the adjustment of American-Philippine trade relations preparatory to the concession of Philippine independence the economic relations between the Philippines and Japan and other foreign countries cannot be overlooked. “The commerce between the United States, the Phil ippines and Japan furnishes an excellent example of that ‘triangular’ trade arrangement which Secretary of State Hull fervently advocates. By this is meant that the sur plus merchandise balance in favor of the Philippines in its trade with America is offset or counteracted by a balance against it reaching up to yen 15,574,000 in 1936, in its trade relations with Japan. On the other hand, the United States enjoys a heavy surplus in its exports to Japan.” See Reciprocal Trade The brief claims that “reciprocal” trade exists among the three countries. The Japanese chamber has the fol lowing to say on this point: “Philippine purchases of cotton textiles from Japan, for example, help to finance Japan’s purchases of raw cotton from the United States which in turn form part of the economic set up whereby the United States is enabled to buy approximately twice as much from the Philippines as she sells to the Islands. Consequently, the rise in price of the Japanese goods occasioned by the elevation of customs tariff or by other measures adopted by the Philippines, will discourage the people of these islands from buying Japanese goods, a fact which will lead to the decrease in consumption of raw materials which Japan has been importing from the United States. “When we take into consideration the evident fact that such a well-balanced reciprocal trade relation will be of great benefit to the three nations concerned, we cannot but be of the opinion that it would be most desirable to try to maintain the status quo and to eli minate any activity destructive of this reciprocal rela tion,, as for instance, raising the customs tariff on Ja panese articles or establishing the quota system on Phil ippine imports.” Have Own Fields The brief says that “Japanese and American goods have their own respective fields in the Philippine market, naturally allotted according to their quality and price, so that generally speaking, they cannot compete with each other. This is so because Japanese goods are in tended for the daily necessaries of the common people, especially the farmers and laborers, and it will be almost impossible for the superior and high-priced American goods to substitute them. The brief points out that owing to their low prices, Japanese goods “are heartily welcomed by the majority of the laborers, and American goods can never be ac cepted as substitutes because they are 30 to 50 per cent higher in price.” “There is a belief that Japanese goods have been grad ually ousting American goods from the Philippine mar ket,” the brief continues. “This is ridiculous. The Jap anese goods are mostly commodities for the laboringclass and are exhibited in such a way as to draw their attention as much as possible, so that they look quite abundant in quantity although their value be really in significant. U. S. Ahead in Value Statistics are quoted showing that Philippine-American trade increased 38.40 per cent in 1936 as compared with 1935, while Philippine-Japan trade increased 23.59 per cent. It is also shown that imports from the United States represented 60 per cent of total imports into the Islands in 1936, while imports from Japan represented only 13 per cent. “As to the much disputed cotton piece goods, they are only 11 per cent of the whole value of American ex ports to the Philippines. The Japanese cotton piece goods imported into these Islands now exceed the American goods in quantity, but the American goods are far ahead in value.”**** “In order to accelerate Philippine exports to Japan, the country should develop the natural resources and pro(Please turn to page 13) October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 Sumulong’s Brief for Popular Front • Wants Clean Staples on Loiu-Duty Basis Juan Sumulong speaking for the Popular Front party in a brief to the MacMurray committee proposes that the Philippines be granted tariff autonomy at once, and also authority to effect commercial treaties with other countries besides the United States. In relation with the United States, under the Tydings-McDuffie act, he finds serious objection to the quotas limiting the dutyfree privilege of raw and refined Philippine sugar in the American market, and of coconut oil and cordage. He opposes the excise tax America has imposed on Phil ippine coconut oil since the Tydings-McDuffie act became law; in general he argues that while political steps are taken to make the Philippines independent, economic steps are taken at the same time to make their inde pendence impossible of realization. As we write, there is news that Quezon and Osmena have fused their factions of the Nacionalista party. Quezon has resigned as the head of his party, and an executive committee headed by Speaker Montilla of the Assembly takes his place. Supplementary news is that Aguinaldo’s Popular Front party for whom Judge Su mulong speaks is to have election inspectors in the forthcoming local elections throughout the Islands: there is talk on all sides of the possibility of welding together from among all the malcontents a strong opposition party, whose banner may be the Popular Front. This being so, there is merit in reviewing Judge Su mulong’s contentions. He strongly advocates abolition, of the graduated duties on Philippine products sold in the United States' during the second half of the common wealth period. He impeaches the ostensible motive be hind these levies. Judge Sumulong does not believe that holders in Amer ica of Philippine bonds are behind the levies, since “these creditors are interested in maintaining without loss the amount of Philippine exports (to the United States), be cause these exports are the best guaranty that our public debt will be paid wholly and in time.” Instead of bond holders, Judge Sumulong sees American sugar and farm ing interests behind the levies, hoping to freeze Philip pine products out of the American market before 1946 and before independence begins. Meantime, however, Judge Sumulong notes that the Islands have no tariff autonomy; they will be unable to effect commercial ar rangements with other countries except with Washing ton’s specific assent; also, all American goods continue coming into the Philippines until 1946 duty free, with no distinction as to the origin of their materials, but the old requirement that foreign materials in Philippine goods shipped fnto the United States duty free must be below 20% of the goods’ value remains unchanged. If the Islands are not to have tariff autonomy now, Judge Sumulong insists they shall have it when the graduated tariff levies begin three years hence. “Even ... granted to us now, ... it can not be ex pected that in the twinkling of an eye we would find, as if by enchantment, a new system already established to replace the old one (free trade with the United States since 1909).” Judge Sumulong thinks that the task of discovering new markets for Philippine products will be long and hard; he thinks the first practical diversification of crops in the Islands will embrace products mainly for local consumption, and new products for sale overseas will be much longer in turning up. He states that his party stands for immediate inde pendence, also for abrogation of Philippine-American free trade. But he does not join these ends. The free trade, he thinks, should be tapered off very slowly; in stead of being scrapped entirely, it should be placed on a permanent reciprocal basis, as nearly unencumbered as possible. “We are all vitally anxious that such liquida tion (of free trade) be not sudden or abrupt so that unnecessary economic disaster may be avoided ... We do not believe it is necessary that the date for the grant ing of independence which in our mind should be as soon as possible coincide with the date of complete aboli tion of the system of mutual preferential trade which should last longer.” In all this the Popular Front is not far from the con victions of the Nacionalista party. Sakdals are the only party of the extreme stand that independence come at once and all fostered commerce between the United States and the Islands cease at once. It is understood that President Quezon is coming to believe that the Sakdal is arrantly a revolutionary party, that he begins to doubt its legality. Should its privi leges under the law be rescinded, the field will be left to the Nacionalistas and the Popular Front. Judge Sumulong tells the MacMurray committee that based upon withdrawal by the United States from naval and coaling stations in the Philippines (after indepen dence begins) the Popular Front would heartily embrace proposals from certain commercial organizations in Ca lifornia for American commercial bases in the Islands after independence. “In this way we hope to prove to the American people that even if we do not desire to be involved in future conflicts in the Pacific, we are more than ready to be useful in all possible ways to American interests in this part of the world.” First independence, mutual trade preferences going right on “until the Fili pino people can enter into an agreement of trade reci procity without endangering their economic life.” Mutual trade preferences, the Popular Front petitions through Judge Sumulong, should not extend to “such products as are of general consumption among the masses of our country,” for these products should come into the Islands on a competitive basis. The Popular Front concedes that free trade with Amer ica has benefited the Philippine upper and middle classes and elevated their living standards, but “for the common Filipino laborers in the city and in the country, espe cially in the latter, the free trade means the high cost of living without a single adequate improvement in wages.” However, Judge Sumulong does not say free trade is the main cause of this; he hints that it is a fault of local government, and that the free trade is only a contributory factor. Judge Sumulong’s most emphatic protest is against the 3-cent tax a pound against coconut oil from the Phil(Plcase tirrn to po<je Z.?) 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 The American Chamber of Commerce OF THE Philippine Islands (Member Chamber of Commerce of the United States) DIRECTORS: P. A. Meyer. President C. S. Salmon. Vice-President John L. Headington, Treasurer J. C. Rockwell E. M. Grimm Verne E. Miller S. F. Caches E. Schradieck H. M. Cavender ALTERNATE DIRECTORS: I, . K. Cotterman E. M. Bachrach (deceased) L. D. Lockwood II. Dean Hellis ACTING SECRETARY: H. O. Bauman COMMITTEES EXECUTIVE COMMITTEE: P. A. Meyer. Chairman C. S. Salmon RELIEF COMMITTEE: C. G. Clifford. Chairman MANUFACTURING COMMITTEE: K. B. Day, Chairman F. H. Hale D. P. O'Brien H. P. Strickler LEGISLATIVE COMMITTEE: C. S. Salmon. Chairman Judge James Ross L. D. Lockwood C. G. Clifford FINANCE COMMITTEE: Verne E. Miller, Chairman E. J. Deymek FOREIGN TRADE COMMITTEE: H. B. Pond, chairman N. H. Duckworth PUBLICATIONS COMMITTEE: P. A. Meyer. Chairman C. S. Salmon Roy C. Bennett BANKING COMMITTEE: E. J. LeJeune. Chairman E. E. Wing J. R. Lloyd RECEPTION & ENTERTAINMENT COMMITTEE: E. Schradieck. Chairman H. J. Belden INVESTMENT COMMITTEE: P. A. Meyer. Chairman C. S. Salmon J. C. Rockwell S. F. Gaches SHIPPING COMMITTEE: H. M. Cavender, Chairman E. M. Grimm Chester F. Sharp CLARIFYING THE FACTS We give major space in this month’s issue to summa ries of the principal briefs submitted to the MacMurray “Joint Preparatory Committee on Philippine Affairs” quite properly, notwithstanding the merely inquisitory character of the committee and the fact that action at Washington affecting the Philippines will turn mainly upon counsel deriving from High Commissioner Paul V. McNutt. The service the MacMurray committee renders is the evocation of opinion on future relations with the United States from sources in the main highly respons ible, well informed, and with everything at stake. The committee will convey this information to the interdepartamental committee of the cabinet, and through the cabinet it will reach the President. The committee does not function under authority of Congress, and the greater value of its intermediary services consists in the oppor tunity it creates for the sober second thought of these Islands to find wide publicity in America. This value can not be overestimated. It goes without saying that the circumspection surrounding the commit tee’s procedure here is commendable throughout. It is a fact-finding body, binational—for Manila as well as Washington. It is a creature of the executive will, not the legislative. But every newspaper in America, prob ably, as surely the few here, is interested in the commit tee’s discoveries. Business correspondents of our patrons are more intensely interested, and we have printed many extra copies of this issue embracing summaries of the briefs in order that such key men in American industry and the great industrial cities may be reached. It works this way: You are an agent for something sold here. It is made somewhere in the United States. With a copy of the Journal you can reach the man who makes it, and he by wave of the hand can reach a re porter of business news on some leading newspaper in his city—or should he desire, the editor himself. In this way America will soon begin to hear, with some accuracy, just what the solid opinion of these Islands is. She will also note, we trust with chagrin, grave faults of her legislation affecting Philippine-American trade and the Islands’ solvency and prosperity. Now what is the solid opinion of these Islands? Nearly all the briefs were submitted under the aegis of the Philippine-American Trade Association organized upon Malacanan’s hint soon after the inauguration of the ten-year Commonwealth. Associate this fact, for sake of solid understanding, with the fact that the Philip pines have the habit of indirection; they had rather give you utterances wherein to find their views than to state those views bluntly—and they had rather, infinitely ra ther, you would do likewise in approaching accords with them. Bluntness is what the East likes least. It savors too strongly of the ultimate, of finalities—reached perhaps before all the argument is submitted and everyone has been heard. The Philippines are not innocent of this characteristic, not at all discreditable; indeed, so runs their nature. So what? All who submitted briefs through the Philippine-Amer ican Trade Association subscribed a statement of fun damentals. These universally subscribed fundamentals are two: “The imposition of export taxes on shipments from the Philippine Islands to the United States from November 15, 1910, and the imposition of import duties by the United States and the Philippine Islands, each on articles the growth, product, or manufacture of the other, from July 1, 1916, will be disastrous to the producers and manufacturers of both countries, and, the time being too short to make the necessary readjust ments, to the Philippine Islands in particular. . . Ir respective of any change in the political status of the Philippine Islands, a continuation of the present freetrade relations... would be advantageous to both coun tries.” Abolition of the partial American duties (in form of export taxes of the Islands) provided for the latter half of the Commonwealth is asked, and continuation of free trade without terminating date, after 1946. Now what really is wanted? By the sugar indus try, affecting % of the population, the copra industry affecting i/t. the population, the tobacco industry affect ing 100,000 persons, most of them in Manila, the em broidery industry affecting a much larger number, and so on through all the industries submitting briefs? To ascertain what is wanted, it is only necessary to make deductions between the lines. The reader should not demand greater candor than this, candor possibly em barrassing. The attitude of the solid opinion of these Islands is there, candid in every aspect, but revealed in directly. The Philippines know that what they will get from the United States if their political association terminates with that country (fewer words would put this, but less acceptably!), is the treatment of most favored nations, and that this is not duty-free trade. They ask however for duty-free trade. It will be a blind Congress and Exe cutive, a blind America that fails of reading what the Islands really mean in their homologous petitions to the McMurray committee. Emphasis is added by something from the Philippines Free Press that even President Que zon watched with the closest interest. It will be rememOctober. 19 37 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 bered that the MacMurray committee is a result of the suggestion for shortening the Commonwealth ten-year period, made by Sayre and Quezon in Washington in March. (Manila took it as the madness of a March hare, one with a lion’s strength for doing mischief.) The Free Press polled more than 12,000 middle-class folk of the Islands on this subject, some in every province. More than eight thousand responded, and 55% of them op posed shortening the period. So much direct avowal suggests that most of the minority believe as the major ity do, but do not make the sacrifice of saying so. Surely now America may discern how the Philippines feel about retaining the relations between them and the United States that now exist. With no sacrifice of selfrespect they favor it. It is the sense between the lines. —W. R. Wants Economic Breathing Spell for Islands Reciprocal Trade Should Be Permanent Certain additional data in the Araneta brief are inter esting. One is a quotation from Lyman P. Hammond’s report to Colonel Henry L. Stimson in 1928, when Stim son was the governor general of the Philippines: “The estimated population of the Philippine Islands in 1926 was 12,100,000 persons. Consequently, it seems that the value of the annual commercial production per capita here is only about P67. Assuming 5.1 persons to the family, as in the 1918 census, the value of the annual commercial production of the average family in the Philippines is only about P342 ($171.) According to data recently published by the Collector of Internal Revenue in the United States, the value of the annual income of the average family is about $3,900 in that country.” Araneta believes the per capita production of the Is lands has not increased materially since 1928, production remains about Pl per family per day. It is 1/10 the family production in the United States, on a basis of peso income here and dollar income there. Araneta con tends that family income here should be multiplied five times during the commonwealth period (which he op poses shortening). To do this he would continue the trade conditions of the Tydings-McDuffie act, eliminat ing the export duties to be laid on Philippine products sold in the United States during the last half of the period, and would have monetary and tariff autonomy granted the commonwealth. With tariff autonomy, the commonwealth could revise its duty schedules in a way to encourag^ manufacture in the Philippines of many staples now chiefly bought from Japan; if this affected any goods from the United States, other demands for more valuable imports would make it up; and extreme cases could be subject to nego tiation. Araneta argues that the volume of Philippine exports can’t be much increased, the volume of domestic commerce might be greatly increased. With the TydingsMcDuffie quotas on major products sold the United States, and with the prospect of no other overseas mar kets, incentive will be great to exploit the domestic market. Araneta thinks that during the commonwealth period Filipinos should dominate the retail commerce of the Islands, Filipino merchants would more readily sell, and try to sell, Philippine manufactures than the foreign re tail merchants who, many of them, eminently the Jap anese, put forward the manufactures of their own country. The feeble sovereignty of the Philippines subsequent to their independence from the United States could not prevail against Japan in a tariff controversy, Araneta holds, nor prevent a duty schedule discouraging to Phil ippine domestic manufacturing for domestic consump tion. Japan would want the widest possible market here, and impose conditions assuring her such a market. That is why Araneta recommends authority for the com monwealth to found its tariff policy right away. Re vising her tariff in 1934, China came off second best with Japan. The tariff has the effect of keeping China on an agricultural basis, and discourages her industries. (Japan holds that she can manufacture cheaper than her neighboring countries can, and can use quantities of their raw products in her industries.) China’s 1934 tariff raised the duty on raw cotton, an injury to Chi na’s textile industry, but the duty on numerous imported textiles was lowered. In the act as a whole, Araneta sees the insistent hand of Japan exerting a pressure China could not withstand. He infers that the Philippines would have similar ex perience in devising a tariff schedule after 1946, on attaining independence. Therefore he says, do this now. The long-term Philippine-American reciprocal trade pact subsequent to independence, he wants strictly bilateral. (Here is an inconsistency, unless continuation of con siderable commerce with Japan is contemplated as a factor in the Philippine-American arrangement, since the brief remarks extensively on the present triangular commerce between America, the Philippines, and Japan and says it “should be maintained as much as possible, and only any existing inequalities of the same should be corrected—the triangular trade should be improved and not destroyed.”) (Please turn to page 18) TOO MANY DRINKS _ _ _ ••• The effect of Cafiaspirina is especially soothing and pleasant in the nau seous after-effects of the abuse of alcohol and tobacco. In such cases, Cafiaspirina removes the distressing headache, the feeling of pressure and depression, and quickly clears the head and re stores normal activity more rapidly than almost any other remedy. Cafiaspirina promptly relieves • headaches, colds, neuralgia, rheumatism, lumbago, earache, migraine. ( A A BAYER (gFIflSPIRIM SAFE AND EFFECTIVE Formula: O.5 Gm. Aspirin and 0.05 Gm. Caffein per tablet. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMliER OF COMMERCE JOURNAL 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 Tobacco Industry Can’t Withstand Duties • Trade Note Reciprocal Would be Destroyed The Philippine tobacco industry is greatly dependent upon the American market as an outlet for its manu factures. These exchange on such a narrow margin of gain that when the partial American duties on tobacco products become applicable with the advent of the sixth year of the Commonwealth, 1941, the business will begin to die. This is an assertion of the Manila Tobacco As sociation, well grounded. Thus a reciprocal branch of Philippine-American commerce will be destroyed by the duty provisions of the Tydings-McDuffie act unless these provisions are repealed. The Philippine-American Trade Association asks that they be repealed, and is supported by the briefs submitted to the MacMurray committee. Bear in mind that though during the last five years of the Commonwealth the partial American duties apply to Philippine exports to the United States, American products continue to come into the Islands duty free, and this includes tobacco manufactures, almost exclusively cigarettes. While therefore the Philippine export-cigar industry will succumb to the partial American duties, except there is repeal, the American cigarette trade here will go right on—possibly at even better advantage than now. But is not the Philippine tobacco industry entitled to reciprocal trade? The reciprocal character of the existing free trade is quickly illustrated. The latest figures quoted by the as sociation pertain to last year. During ten months last year, Philippine imports of American leaf tobacco and tobacco products were valued at P6,324,323 and in 1935 were 98.55% of all tobacco • imports. During, ten months of last year Philippine ex ports of tobacco and tobacco products, cigars, to the United States were valued at P4,424,210 and in 1935 were 54.79% of all tobacco exports. Thus it is seen that the Islands do not drug America with their tobacco, but while selling her a quantity of cigars and some leaf, actually dispose of nearly half their export surplus in other markets. Observe that the advantage in this reciprocal trade lies with America, and would still benefit her were the partial duties repealed before they begin to apply. She enjoys a tobacco commerce here a third greater than the Islands enjoy in the United States, and her cigarettes, well advertised, well merchandised too, tend to become the popular smokes in the Islands. Here then is a trade that cries out against disturbance by legislation, being, as it is, on a sound basis. Besides leaf and tobacco manufactures, mainly popular priced cigarettes, the Is lands’ tobacco factories themselves buy extensively from America: paper, labels, lithographs, flaps, bands, wrap pers, shooks, cellophane, machinery. The Manila Tobacco Association is to be congratulated on its very candid brief, a clear presentation of the just case against the partial duties soon to be applicable un der the Tydings-McDuffie act unless Congress admits the fairness of the Islands’ uniform petition that these duties be suppressed. The value of findings for the tobacco industry, im ported from the United States, is not a little revelatory. Cellophane sums from P250.000 to P300.000 a year. Machinery has reached almost P150.000 in a year. Paper, lithographs, etc., are standard importations from the United States. The situation demonstrate that it would not only be unfair, but downright bad business for Con gress to permit a partial duty to apply to Philippine tobacco exports to the United States as it is now pro vided will be done beginning in 1941. The investment in tobacco factories here is a huge one, and thousands of men and women hired in them are dependent on the limited market in the United States the existing free trade has made it possible for the factories to procure. It is obvious that this market will remain limited at best, but it is equally obvious that it is vital to the industry and its employees. Naturally the Commonwealth is directly concerned, for the excise revenue the industry yields. This brings it out plainly that the partial duties nominally provided in behalf of Philippine bondholders in the United States will not in fact benefit these creditors and are really beneficial, if not designed to be so, only to special inter ests whose objective is to injure competitors. For the bonds will be weakened by duties that weaken trade, and will remain sound under conditions fostering trade and producing public revenue from it. INTERNATIONAL BUSINESS MACHINES International Electric Bookkeeping and Ac International Watchman’s Systems International Time Recorder International Electric Time Systems International Time Signaling Syster International Sound Distributing Syster International Fire Alarm Systc • International Recordolocks • International Proof Machine for Banks • International Ticketographs • International Certometers • International Electric Writing Machines • International Cosmographs WATSON BUSINESS MACHINES CORPORATION MANILA OFFICE: 510 Philippine National Bank Bldg. w Telephone 2-42-16 P. O. Box 135 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL I 3 Howe Advocate ... (Continued from page 7) The Reich borrows the money with which to buy the land, or it is provided by banks. It does not tolerate usury. The middleman gets but small part of the farmer’s prod ucts, the object of the government being to end every kind of oppression on the far mer and make the farmer as prosperous as possible. Complementing this agrarian program is a housing plan, houses for farmers being paid for in about 40 years’ time. Rents are as low as is the interest charged. Dr. Howe said that the object of all these measures is, first, to improve the wellbe ing of the farmer and the worker; second, to increase food production; third, to make the people contented, and fourth, to take care of the population. “Germany also controls her banking and credit so that in dustry and agriculture get the money they need and at a relatively low rate,” he con cluded. “By this means she increases the production of wealth and controls foreign exchange.” Japanese Chamber... (Continued from page 8) duce such goods as Japan keenly needs,” the brief points out. “Hut there is a strict rule in the constitution of the Philippines that 60 per cent of the capital must be owned by American or Philippine citizens. So we can say that the door to developing the natural resources is closed to foreign ers, and it will be impossible for Japan ny herself to improve the export business. Such being the case, it is quite advisable for the Philippines to put into force the so-called ‘economic control’ in the archi pelago through the cooperation of the three countries, i.e, Japan, America and the Philippines, as to capital, machinery, labor, etc., adopting an ideal policy of open-door and equal opportunity for all nations.” Deny One-Waij Trade The brief denies that there is a “one way” trade between the Philippines and Japan, saying that “the trade between the Philippines and Japan is approaching an equilibrium owing partly to the rise of market prices of Manila hemp and lum ber and partly to the increasing exports of various kinds of minerals to Japan.” Attention is directed to an increase of 8.98 per cent in Philippine imports from Japan, while Philippine exports to Japan have in creased 56.61 per cent. “The geopraphical positions of the Phil ippines and Japan will naturally improve the economic relation between these two countries,” the Japanese chamber points out. “The Philippines produces abundant agricultural and natural products, special ly minerals, which she can sell to other countries. On the other hand, Japan, be ing an industrial and manufacturing coun try, will have to purchase her materials from abroad. ■ This means that both the Philippines and Japan are in a so to speak satisfactory position to cooperate with each other. Must Remove Restrictions “We, therefore, are of the opinion that economic control and independence can be better attained among other things by takking advantage of the tremendous possi bilities offered by the Japanese market.” The chamber makes the following con clusion : “As is shown statistically, we have been exerting our efforts and will do our utmost to attain a trade equilibrium between the Philippines and Japan, but there lies a stumbling-block in our course towards that goal; that is a constitutional restriction as to the development of the natural resources in the archipelago. If this restriction can be either completely or partly lifted, our course will be clearer and our pace will be much accelerated. The Philippine in dustries and exports, consequently, will be enlivened, and naturally the purchasing power of the Philippine public will be in creased. Decisive Factor “Once we come to such a state of af fairs, we believe, the triangular trade re lations among the United States of Amer ica, the Philippines and Japan will be en hanced. “Under such circumstances, if the Phil ippines should raise her customs tariff or establish a quota system on her imports she will be committing suicide, speaking figuratively, for such an act will bring about the demolition of the otherwise wellbalanced trade relations among the three nations and the decrease of the purchasing power of her own people, thus eventually causing social unrest throughout the archi pelago. “On the other hand, the complementary nature of Philippine-Japan trade will no doubt be a decisive factor not only in pre serving but also in promoting the afore said triangular economic relations among the United States, Japan and the Philip pines.” Sumulong’s Brief... (Continued from page 9) ippines sold in the United States, a condition imposed in this trade that strikes a deadly blow at the Islands’ most vital farm indus try and dates subsequent to the TydingsMcDuffie act. He points out that while the blow was softened, by providing that the collections under tax be returned to the Is lands, the harm to the industry remain the same because no proceeds of the tax can be used directly or indirectly to benefit the co conut producers. These producers comprise a fourth of the population, on coconut lands well distributed throughout the Islands. | Nederlandsch Indische Handelsbank, N. V. | Established 1863 at Amsterdam I Paid-Up Capital - - - Guilders 33,000,000 [P37,000,000] I Reserve Fund - - - - Guilders 13,200,000 [Pl4,800,000] { j I General Head Office at Amsterdam i ' with sub-offices at Rotterdam and the Hague. ! I Head Office for the Netherlands Indies at Batavia. j i Branches in the Netherlands Indies, British India, Straits Settlements, China, Japan and the Philippines. Branch at Manila: 21 Plaza Moraga Every Description of Banking Business Transacted Current accounts opened and fixed deposits received . at rates which will be quoted on application. Judge Sumulong says the tax will operate to retard the gradual industrial progress of the Islands (which the Popular Front thinks should remain dominantly agricul tural for a long time to come); there are potential industries that could utilize by products of coconut oil production, yet under the law these may not be aided with the tax. Judge Sumulong signs his brief in his capacity as chairman of the advisory board of the Popular Front. Celerino Tiongco signs as chairman of the executive coun cil, Luis Agudo as the party’s secretary. General Emilio Aguinaldo and General Jose Alejandrino append a treatise on national defense. It stresses enforced service to the state of young men and women in tasks of building up industries supplying the needs of defense. It insists that America retain no naval bases here after indepen dence, because they could be “ground for violation of our territory in the event of war between the United States and any other power.” It says in closing that the Popular Front is willing to accept inde pendence at any time, along with its pos sible consequences, previous to the period fixed in the Tydings-McDuffie act. OBVIOUS OVERSIGHT A cordage brief submitted to the MacMurray committee points out what we are sure must be an oversight by Congress in drafting the Tydings-McDuffie act creating the Commonwealth of the Philippines and placing cordage from the Philippines going into the American market under a yearly quota subsequently fixed at six million pounds a year, of course duty free. The quota includes binder twine, heavily imported by the United States and on its free list. As the law stands, above six million pounds a year of cordage of every sort the Philippines can market no binder twine in the United States. They can not do so even by paying a duty, there is none; and while all the rest of the world is free to market binder twine in the United States, above the quota, taken up chiefly by rope, this territory still under Amer ican sovereignty with Congress having sole (Continued from page 15) /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 14 THE AMERICAN CHAMBER OE COMMERCE JOURNAL October. 1937 Manila Chamber of Commerce • Stresses True U. S.-Philippines Trade Balance A measure of the general economic pro gress of the Islands may be obtained from the advance of exterior trade figures be tween 1900 and 1936 (excluding bullion) — Imports Exports Total 1900 ______ T 49,727.000 P 46.981.000 P 96.708.000 1936 ............ 202.252.000 272,896,000 475,148.000 The Philippines have been subject, as have all countries, to fluctuations due to the world war and to trade depressions, from the latest of which the Islands have not yet fully recovered, but progress on the whole has been steady, with prospects of a further advance if conditions remain favorable. Industries in the Philippines during the same years increased to an even greater degree than the external trade. But that expansion has been due almost entirely to the existence of this healthy external trade. Without the latter the major items of pro duce—sugar, hemp, copra, coconut oil, to bacco—and such industries as embroideries, cordage, hats, etc., would have found a considerable expansion impossible in the ab sence of an external market, as no home demand has been available to promote a growth of any great size. Even indus tries mainly of internal activities, such as saw mills, power plants, public utilities, rice mills, iron foundries, etc., would have founo no means of attaining their present devel opment, had there not been the prosperity and resources existing from an active and growing external trade. And it follows that, if external trade declines, industries of nearly all kinds must dwindle also in the absence of internal resources adequate to maintain them. The growth of national revenue has also depended fundamentally on the expansion of external trade, not merely directly in such matters as import duties, sales tax, etc., but indirectly in the amounts collected from income tax and excise and other taxes on industry, which could not have attained their present proportions without the sti mulus of a considerable external trade. And naturally without this larger national revenue there could not have been the im provement and expansion of national insti tutions and functions which have been at tained and which are now essential for the well-being of the Islands. And here, too, it follows that if external trade declines, and industries as well, then national rev enue also cannot avoid decreasing and em barrassing the administrative services which depend on it. And as between Import and Export trade it should be noted that the growth of the former has been entirely dependent on the latter. If exports had not attained so con siderable a figure, imports could not have grown as they have; the import market depends almost entirely on exports, as the internal resources of the country in them selves cannot yet support imports of any size. There is usually a balance of trade in favor of the Islands, and it has been argued that the Philippines benefit unduly from the excess exports, but this is not the case, as interest and dividends on Philip pine bonds and investments held outside the country are met in part by excess exports, while freight, insurance and other trans portation charges on imports and exports accrue mainly to non-Philippine interests. If allowance is made for these, the gap be tween the import, and export totals will be The continuance of the external trade of the Philippines at a satisfactory level is essential for the commercial well being of the Islands and for the mainten ance of national institutions. A material decline in external trade inflict very serious injury on United industries and a dangerous decrease in national revenues, with inevitable inter nal difficulties. Such a decline in external trade will inflict very serious injury on United States Export trade to the Islands, and will have a very adverse effect on United States Shipping to and from the Orient. The policy of the economic develop ment of 40 years has led to a belief that abrupt and sudden changes of com mercial legislation will not be imposed on the Islands. The maintenance of the American-Philippine mutual free-trade relationship for the full period arranged by the TydingsMcDuffie Act, and for as long as possi ble afterwards, is essential to avoid commercial distress, decline of national industries, and perhaps economic ruin. Prior to 1946 there should be no econ omic changes in American-Philippine trade relations less favorable than those embodied in the Tydings-McDuffie Act; if an earlier political change should be decided, the free-trade relationship should be continued in an equivalent form for the mutual benefit of both countries. Export taxes threaten serious injury and early stoppage of the trade in me commodities involved, and should be elim inated. Excise taxes in the United States, par ticularly as regards the copra and coco nut oil businesses, are a definite restric tion of trade, inflict considerable dam age on interests involved, and do not seem to fit in with the terms of the Ty dings-McDuffie Act; it is urged that they be rearranged so that, without neglect ing American agricultural interests, they will inflict no unnecessary injury on the Philippine products concerned. After 1946 trade relations should be continued for as long as necessary along present lines on a reciprocal basis safe guarded wherever advisable by quotas and other conditions, but enabling exist ing trade and shipping to be maintancd to the mutual advantage of both coun tries besides saving the Islands from dis aster by giving them a reasonable oppor tunity to adjust their national economy. largely closed. Moreover, Philippine pro ducts (raw materials') and bulk commodities which require processing in the United States thus providing work for labor there, whereas imports from the United States are almost entirely composed of manufac tured goods. Also, under the "free-trade relationship” between the two countries American goods can still enter the Islands without any limitation as to volume or va lue, whereas Philippine free exports to the United States have now been considerably restricted by Congress—which also tends to reduce the gap between imports and ex ports. The importance of the export trade as essential factor in the maintenance alike of the import trade, of island industries and of national revenue, and consequently na tional institutions, cannot be too strongly emphasized. It has been estimated that 48% of the total production of insular indus tries of every kind is exported, leaving only 52% for internal consumption, includ ing such local essentials as rice and other foodstuffs, house construction, etc. A de crease of 66% in total exports is a mod erate estimate of the effect of abolishing mutual free trade between the United States and the Philippines, and this would involve a decline, or waste, of 32% of total national production. Such a result, espe cially on top of the depression of recent years, would amount to a national calamity, which would affect every phase of the in dustries and the institutions of the Phil ippine Islands, which would render impos sible the satisfactory continuance of many matters now considered as moderate neces sities, and which would lead to unsettled conditions and unrest, perhaps even to se rious local disorder. To summarize the above—the prosperity of the Philippines depends entirely on its external trade, particularly exports. If that trade should decline to any marked extent not only would concerns interested in it suffer heavily, but it is the full con viction of the Chamber that many indus tries would be almost ruined and others at least very adversely affected, and fur ther that national revenues would shrink to an extent making it impossible to-maintain adequate and normal administrative func tions—health, education, communications, public order, etc., employment would shrink, there would be wide-spread suffering, and the whole structure of the country as it has developed during the past 40 years would be injured and perhaps endangered. The Chamber feels that this outlook is ex ceedingly probable, and so serious as to justify all efforts to prevent any material decline in that external trade, particularly exports, which is the vital prop of the whole situation. In considering the external trade situa tion, the essential factor since 1909 has been the mutual free-trade relation of the Is lands with the United States. Without that special relation imports and exports could not have grown to their present level, and the commercial and other development of the Islands would have been on a lesser and slower scale. Smaller trade would have meant smaller expansion of produce pro duction and industries, and also lower na tional revenue. There would have existed now a less developed State, with a more (Please turn to page Ki) October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 Obvious cifically excluded from that privilege. This is greatly detrimental to the fiber and (Continued from page 13) cordage industry here; there is no parallel authority to regulate its commerce, is spe- to it in the treatment of other Philippine products in the American market, and it deserves to be brought to the attention of Congress for immediate correction. 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 Company of the Philippine Islands executes and covers BONDS INSURANCE Court, Customs, Firearm, etc. Fire, Life, Marine, etc. Plaza Goiti and Escolta Tel. 2-12-55 P. O. Box 150 UNION............ CIRCULATION COMPANY, INC. ASSOCIATE MEMBER: UNITED STATES CHAMBER OF COMMERCE WASHINGTON. D. C. MEMBER: MERCHANT’S ASSOCIATION OF NEW YORK CITY NATIONAL BETTER BUSINESS BUREAU OF NEW YORK CITY NATIONAL PUBLISHERS ASSOCIATION, NEW YORK CITY Founded years ago on the principles of SERVICE, COOPERATION and ECONOMY, the UNION CIRCU LATION COMPANY has aided thousands of men and women by giving them employment, at the same time bringing happiness and contentment to it’s millions of satisfied subscribers throughout the world. The UNION CIRCULATION COMPANY represents on a world-wide scale all of the outstanding publishers whose periodicals are listed on our official subscription contracts. When our representatives come to your door, they are seeking to perform a service. They come to you with pride in their work, confident that they can serve you efficiently and economically. They offer you a sincere, personalized service. They will serve you honestly, cour teously, and with profit to you, and thus uphold the high standards of the honorable calling which they have pledged themselves to follow. They will not force them selves upon you; if you are busy or otherwise occupied they will gladly call at your convenience. They will seek to sell you only what you need and feel you can afford to buy. They bring you the opportunity to buy advan tageously the-world’s finest publications. They ask the courtesy of your thoughtful consideration of the values 5 COLUMBUS CIRCLE COlumbus 5-9088-8089-8090 NEW YORK CITY they have to offer—and your welcome when you desire their services. Direct selling is recognized by the world’s great econ omists as a necessary method of distribution, one which has become a permenant fixture in America and is grow ing yearly. It offers you the advantage of buying right in your own home or office, a convenience which gives you time to carefully select with the assistance of a well versed sales representative, thus saving you much expense and effort. Direct selling provides a constant livelihood for more than a million persons. In 1936 more than 28,000,000 magazine subscriptions were sold in America by direct sales representatives. Magazine reading is recognized as the most profitable form of pleasant recreation. When you patronize the magazine subscription repre sentative you are showing true civic patriotism by con tributing to the spendable wealth of your community, all in increasing employment for your fellow citizens; you are buying a thoughtful and friendly service from a per son who fully and deeply appreciates your patronage, and who will do all he can to serve you with profit to you, and unending satisfaction. By placing your order through representatives bearing our certificate of identification and authority for subscrip tions at publishers’ prices in accordance with the printed terms on our official order card, you are guaranteed de livery of the magazines so subscribed for or a refund of the money paid. HEADQUARTERS FOR PHILIPPINE REPRESENTATIVES ROOM 301 UY YET BUILDING 217 DASMARIftAS, MANILA TEL. 4-87-50 KNOWLEDGE READ MORE IS POWER KNOW MORE ‘■•N UNION THERE IS STRENGT H’’ IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 Manila Chamber... (Continued from page 14) primitive standard of living and better able to bear the shock of economic adversity. As it is, the free trade relation has estab lished mutual markets for American goods in the Islands and for Philippine products in the United States to an extent that these markets have become of very considerable value to the United States and of vital im portance to the Philippines. And this free relation has not only developed large exter nal trade totals but has stimulated indus tries to a high level, and has facilitated the collection of adequate national revenue to sustain an Administration which maintains educational, social and other services of a high standard. If external trade declines, as it must if the free trade relation is ter minated, there is every reason of national resources as mentioned above—an economic II N S U IR. A N C IE For Every Need and Purpose WORKMEN’S COMPENSATION PUBLIC LIABILITY AUTOMOBILE —--- -_-------T.-------ATLAS ASSURANCE CO. LTD. THE EMPLOYER S LIABILITY CONTINENTAL INSURANCE CO. ASSURANCE CORPORATION LTD. ORIENT INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA General Agents E. E. UAEE. INC. Telephone 2-24-28 — MANILA — Kneedler Building ALU AM IBRA CIGARS continue to be the recognized leaders in QUALITY cigars CtDIRLOfMAS in® A IL IM A Ml IB RA disaster which may undo much of the good work done in the Islands during the last 40 years. In examining the course of trade since the American occupation one very satis factory feature has been the absence of too abrupt changes in policy, tariffs, etc. Even the establishment of free trade was de layed for 10 years, and though this was due to circumstances no longer existing, it is a precedent for adequate notice of vital changes to allow time to adjust the coun try to new economic conditions. The Ty dings-McDuffie Act also provides a 10 years’ notice period, apart from the export taxes proposed. Merchants, Shipping firms and Industrialists, American, Filipino and other, laid their plans, as far as they were able, looking to the economic terms of that Act at least to cover the situation till 1946, but still hoping for some favorable modifi cation of the economic conditions which FIRE MARINE ACCIDENT PLATE GLASS would enable the external trade with the United States, imports as well as exports, to continue even after that date; and they felt that the terms of the Act were an as surance of security (apart from export taxes) for not less than that period of years. It was a 10-year interval for liqui dation, adjustment and settlement not only of their own commitments, but also of the economic structure of the Islands, if this proves possible. Any shortening of that period will intensify the damage to Phil ippine economy and the injury to merchants and others; while if the period is made very brief, there will be insufficient time for a considered preparation and adequate notice of Tariff changes, Trade ap-eements and other necessary economic adjustments. At the same time, Merchants and others, while clinging to the 10-year interval of the Act as at least some protection from immediate disaster, feel strongly that the ultimate effect of the economic provisions of the Act will be ruinous to the Islands, their industries and trade. a. The export taxes will mean for cer tain commodities speedy, even im mediate, ruin within the 10-year pe riod instead of abrupt disaster on the cessation of mutual free trade. They will involve automatic de struction of business in a time too short to allow of liquidation in an orderly manner or to diversify trade into other channels if such be pos sible, and it is claimed they are un necessary for the purposes for which introduced as these are cov ered by other safeguards. b. Termination of mutual free trade from 1946 onwards will complete the ruin of American-Philippine trade, import and export. Almost certainly two-thirds of the export trade will disappear, and there is no suggestion of how it can possibly be replaced or switched to other countries. Such a reduction will make it impossible to import any thing except the cheapest of goods and probably only a little of those; ordinary American products will be quite beyond the purchasing capa city of the Islands as a whole. The ultimate result will be the same as forecast above if the mutual free trade relation should come to an end abruptly within 2 or 3 years— merely delayed a few years which may enable a few mercantile con cerns to liquidate their position, but which will not save the country as a whole from decline of external trade, ruined industries, dwindling national revenues, hampering of Ad ministrative functions, and perhaps internal disturbance. c. The decline of the external trade of the Islands, whether before 1946 or after, will inevitably inflict a most serious blow on trans-Pacific Ship ping, especially American; and the lack of Philippine export cargo, in particular, will be ruinous for many lines unable to secure adequate re turn cargoes to the United States from other parts of the Orient. Suggestions have been made that as a remedy for the decline in trade and production of sugar cane and other products which must result from ter minating free trade, the Philippines should turn to diversification of agricul tural products under Government auspices. Efforts have already been made in fo menting new activities to promote trade /.V RESPONDING TO ADVERTISEMENTS PI.F.ASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 193/ THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 readjustment, but, as is usual in agricul tural communities, it has been found im possible to move quickly. The change-over from the production of sugar to such arti cles as cassava, kapok, derris root and pea nuts is not easy of accomplishment, for the Oriental agriculturist, apart from being inherently conservative, is disinclined to give up the production of a remunerative crop in which he is thoroughly well-versed for that of unknown commodities the value of which is hypothetical and the market for which may never be developed to an equal degree. In time, changes will doubt less be possible, but they will come slow ly, and a 10-year period is all too short for the radical innovations which must be in troduced into the agricultural life of the Philippines if such an important commodity as sugar is to be replaced by other prod ucts which can be profitably sold in the open markets of the world. In urging the retention of the free trade relation, in one shape or another, as a fun damental necessity for saving the whole economic system of the Islands from se rious danger and possible collapse, empha sis must be laid on the fact that this re lation is mutual and reciprocal. What the Philippines sell to the United States is matched by the American goods they buy in return. Not indeed equally for in 1936 Philippine exports to the United States, excluding bullion, were P215,044,000 against only P122,994,000 imports, and other years show similar differences. Not only, how ever, must it be borne in mind, as mentioned above, that the factors of bond interest and of freight and other transportation ex penses diminish the real gap between im port and export figures, but there are also the circumstances. a. that the Philippines must inevitably bring in Far Eastern foodstuffs and other oriental supplies that cannot be obtained from the United States; b. that as a country still relatively poor the Philippines are often not in a position to purchase high priced goods; and c. that on the basis of population the per capita purchase by Filipinos of American goods is more than 5 times the per capita purchase by Amer icans of Philippine products. Apart, moreover, from the above, the pos sibilities of the future must be considered. If mutual free trade comes to an end in 1939 or 1946 or later, commerce will be ruined and other disasters will follow, with probably no recovery ever of the AmericanPhilippine trade position. If, however, the present free trade relation, in one form or another, is maintained, then mutual pros perity may be reasonably expected, for the Philippine population is increasing rapidly, and the the United States have in the Is lands their twelfth largest export market and, except Japan, their finest Oriental mar ket already accustomed to American mer chandise and with its credit so far unim paired; the expansion of the mining busi ness in the Islands in recent years and the steady increase of imports of mining sup plies from America indicate the future pos sibilities of this market. As America must always have a source of supply of tropical produce, this may as well be the Philip pines where the United States for so many years followed a policy of encouraging ex pansion of production, and where there is in return a considerable preferential mar ket for all American goods. If the Philip pines can sell to the United States, then they can also buy from them—but not otherwise. The retention of their existing markets against outside competition is now SUGAR First rate presentation of the case for Philippiue sugar in the general plan of commercial relations between the Islands and the United States was made to the MacMurray committee during the hearings at the Legislature building in Manila. Every business man who submitted oral discus sion spoke for sugar too. Ex-Senator Harry B. Hawes submitted the painstaking brief introduced by the general statement we quote from him in the introductory article in this issue. The Philippine-American Trade Association emphasized sugar in its brief, and Horace B. Pond parried all questions about it. Pond as the experienced head of the Pa cific Commercial Company, leader among the importing corporations handling Amer ican manufactures in this growing market from notions and groceries to motor vehi cles and heavy machinery, was naturally well prepared on the importance of the con tinued sale of Philippine sugar in the United States to the practical business of selling American goods in this market. Sugar can withstand no shortening of the Commonwealth ten-year period. As in all lines of industry, in sugar commitments and plans have been effected for the full ten years. If a time came when Philip pine sugar had to pay the American duty to approach that market (its only one, no other being procurable in the world), the industry would have to close down. This is the consensus of the briefs and testimony laid before the committee. Ten years is therefore in itself too short a time for cane growers to find it possible to shift to other crops. But the calamity that loss of the Amer ican market would be to growers and the mills would be mild beside that visited upon the government and the general pub lic of the Islands by the same circum stance. Tax structures are built upon the a world problem for many highly industrial ized countries, and it would be a misfortune for the United States and still more fbr the Philippines if their mutual markets should be deliberately sacrificed by a vo luntary change of policy. ESTABLISHED 1612 -------=- ?=- - Capital (Paid) — Surplus —-----Undivided Profits Total Assets----(as of March 31. 1937,1 ----------COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building worth of the fields for cane, bank credit stands on the same basis. Budgets of thriving provinces, together with indivi dual solvency, would crack like humptydumpty if our sugar could no longer be sold. Capital and business initiative, now looked to by the government to come from he cane producers and vitalize other in dustries, first selecting and founding them in order that the Islands may evolve an economy less dependent on the American market, would no longer be available. Salvador Araneta, though a Manila at torney, whose brief to the committee is quoted extensively in this issue, speaks as a sugar producer: the industry is tradi tional in his family. Note with what rea soned aggression he approaches the prob lem of supplementary new industries. It is because our sugar still goes regularly to New York and San Francisco. Such men as he ask but for the opportunity to put their shoulders to the wheel in behalf of the New Philippines by honestly seeking prac tical modification of her economic situation Congress will surely decide that men of this stamp have indeed the rights to the benefits of sugar while they improvise a more balanced industrial structure for the Islands. The faith of Senator Hawes, who renresents the industry at Washington, is much in point. The America who has con sistently been just as well as generous to the Islands has no choice but adherence to that policy. “To grant complete independence... without allowing sufficient time for neces sary political and economic adjustments... would be little short of a denial of the indenendence itself,” Roosevelt said in urg ing Congress to pass the Commonwealth act. The legislature here, accepting the act, relied upon this assurance and made formal note of it. The quota in the American market that our sugar has in this act is 800,000 metric tons of raws a year, 50,000 metric tons of refined. The world of sugar raises no ob jection, the London conference more than acquiesces. Cuba has no grounds for ob jection, Puerto Rico, though an organized territory of the United States, should cer tainly not stress sugar another pound—her (Please turn to page 56) U. S. $ 77,500,000.00 ” • 43,750,000.00 ” 12,949,374.52 $1,893,890,871.77 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE C& GRILK Phone 2-16-61 Port Area Wants Economic... (Continued from page 11) Araneta states: “Imports of Philippine products into the United States only represent 4% of the total imports into the United States, and with the exception of coconut oil, as to which there is some controversy, they do not displace a single unit of goods produced in the United States, so that with the destruction of the trade American producers will not be benefited in any way; only foreign producers will be benefited who would then be in a position to increase their exports of similar articles into the United States. “Maintenance of our present volume of exports to the United States which are dependent on the present free trade arrangement, amounting to P215,000,000 last year, constitutes a very valuable source of wealth to the country which would be impossible to replace, and which will not only maintain but even increase the standard of living of the people. . .. Besides, we should not forget the proceeds of the excise taxes collected in the United States from Philippine products, which are being returned to the Commonwealth of the Philippines, which amount to P70,000,000 a year, a benefit which we would not receive once our independence is granted. The loss of this big amount which would be very helpful in developing new industries in the Philippines will undoubtedly retard a readjustment of our national economy.” His suggestions adopted by the United States and the Philippines, Araneta believes that development of do mestic manufactures and their domestic consumption in the Islands will soon reduce the percentage of Philippine products sold to the United States, without affecting the volume, from 30% to possibly 10%. Correspondingly, per capita income would rise in the Islands and demand for American manufactures would expand. 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. THE MANILA DAILY BULLETIN has earned the public trust which it enjoys principally by being the newspaper that it is. Because its character, en terprise, and reliability have made it valuable to its readers, the Bulletin is VALUABLE to its advertising patrons. These advertisers know their messages take on added force from the medium from which they speak. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Islands' First Galena Project Three shills working eight hours each are handling 200 tons of galena a day at this mill of popular Mineral Resources on their Marinduque Island prop erty. Lead, zinc, gold. COMPREHENSIVE PHILIPPINE MINING NEWS UP TO DATE JOHNSON-PICKETT ROPES Unequalled quality durability and strength— Insist on a cordage worthy of your confidence. Manila Made Manila Rope We can fill all Your Cordage requirements. PINE TARRED ROPE COAL TARRED ROPE GREEN OLEATE LAID ALUMINAX DEEP SEA LINES FARMER’S AND FISHERMAN’S ROPE JOHNSON-PICKETT ROPE COMPANY Down Town Sales Room P. O. BOX 1457 Factory Sales 300 Tetuan, Sta. Cruz MANILA PHILIPPINES No. 2 Calle Cristobal Telephone 2-10*43 ’ Telephone 5-66-28 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Jose Castro & Co. • Promotion • Field Investigation • Location • & Patent Surveys We have competent licensed Mining Engineers and Mineral Land Surveyors at the disposal of Mining Firms and individual claim owners. For the protection of the Title and Right on your Min eral Claims give us a chance to examine your papers and declarations of location and we shall submit to you an exhaustive and complete report. Manila Office: 402-404 Philnabank Bldg. Tels.- 2-20-67 & 2-31-19 P. O. Box 490, Manila Baguio Branch Office: No. 1 Session Road Tel. 580 Manila Stock Exchange 1 139-143 Juan Luna, Manila, P. I. 1 TEL. 2-29-95 1 “| DIRECTORY: MEMBER-HOUSES ALDANES-E & CORTES 116 J tai n Luna Tel. 4-98-51 MACKAY & McCORMICK 34 Escolta Tel. 2-15-57 C. ALDECOA & CO. 40 Plaza Moraga Tel. 2-78-24 MARIA MARTINEZ & CO. 40-44 Rosario Tel. 2-22-78 ALEGRE & CO. 84 Escolta Tel. 2-29-12 A. MONTINOLA & CO. 122 Juan Luna Tel. 4-93-98 H. E. BENNETT & CO. 53 Escolta Tel. 2-24-51 MULCAHY, LITTON & CO. 30 Plaza Moraga Tel. 2-51-13 CAMAHORT & JIMENEZ 34 Escolta Tel. 2-34-81 L. R. NIELSON & CO. 601 Escolta Tel. 2-12-81 N. CONCEPCION & CO. 134 Nueva Tel. 2-89-66 MARINO OLONDRIZ Y CIA. Crystal Arcade Tel. 2-22-08 ELLIS, EDGAR & CO. 1189 Juan Luna Tel. 2-29-64 OVEJERO & HALL S. J. Wilson Bldg. Tel. 2-10-51 JOSE FELIX & CO. 36 Escolta Tel. 2-39-31 ANGEL PADILLA & CO. Burke Building Tel. 2-18-34 GUTIERREZ, GUTTRIDGE & BRIMO 132 Juan Luna Tel. 4-85-87 LUIS PEREZ Y CIA. Samanillo Bldg. Tel. 2-59-55 E. SANTAMARIA & CO. S. J. Wilson Bldg. Tel. 2-33-85 HAIR & PICORNELL S. J. Wilson Bldg. Tel. 2-18-44 LEO SCHNURMACHER, INC. El Hog<w Filipino Bldg. Tel. 2-37-16 HESS & ZEITLIN, INC. Crystal Arcade Tel. 2-32-74 SWAN, CULBERTSON & FRITZ S. J. Wilson Bldg. Tel. 2-38-34 MAX KUMMER & CO. 7th Floor S. J. Wilson Bldg. Tel. 2-15-26 TRINIDAD, CELESTE & CO. 101 Echague Tel. 2-66-09 S. E. LEVY & CO. Filipinas Building Tel. 2-38-51 HEISE, LARSON & CO. 423-35 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 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 Ingensoll-Rand The Earnshaws Docks and Honolulu Iron Works — Manila, P. I. P. O. Box 282 Sole Agents Branch Office Tel. 2-32-13 MANILA Bacolod, Occ. Negros IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 Will We Have Another Boom? We hope not, but the stirring in Mindanao, the prospect that something definite will be done to clarify Philippine-American economic relations before the middle of next year, war scares creating a ready market for our products, and other factors make us afraid that we will! Will we have another bocm? This question is heard on every hand, in the clubs, restaurants, and wherever people congregate. Some ask it hopefully, while the more thoughtful ask it fear fully. It seems to be the most popular subject for discussion of all subjects, completely crowding out the weather, the World Series and our two un declared wars. No one knows the answer. We don’t know the answer. We wish we did—we might use that knowledge to recoup some of the losses we suffered during this last unlamented crash. (Some people might ques tion our use of the word “crash” to describe the stock market recession which began in earnest in January, and stopped, at least for a while, on September 10th. Brokers might call it a “technical reaction”; market analyzers might term it a “healthy adjustment”; but to us when San Mauricio goes down from P4.00 to P0.49 and lower, that is a crash.) History teaches us that, however much we may dislike a crash, a boom is equally disastrous economically in the long run. Values and credit are impossibly inflated. Prices rise faster than wages. Factories expand, and businesses go into debt to meet an abnormal demand. Eventually the whole structure collapses with a re-sound ing thud, and ruin and destruction follow. No, we like a boom while things are booming. We also like to dance. But we don’t like to pay the piper when his price is too high. The price of a boom is always too high. The eventual crash frequently takes not only every thing we have, but everything we are going to have for years to come. Yet, a thoughtful review of the factors which may influence the situation here in the near future indicates that it is very possible that we may enter upon another period at least ap proaching the giddy levels of 1935. In the first place, we have never had in the Philippines a real depression such as other countries have suffered. This is obvious to anyone familiar with the Philippines who saw Europe after the world war, or the United States after 1931. We have had to retrench from time to time, yes. Once in a while we have thought it advisable to postpone that trip abroad until next year. But we have never had breadlines or home relief or wholesale unemployment or banks closing their doors for good. No, we have never had these things, and we don’t have them now. In fact, business in general is good. Retail sales are good. Lumber exports are very much higher than they were last year. Sugar men are jubilant over the passage of the 1937 Sugar Act by Congress (signed by President Roosevelt on September 1) which provides for the re fund of the excise tax of P0.01 per pound to be collected on sugar importations from the Philippines; recognizes the Commonwealth of the Philippines as a country not “foreign” to the United States by re-stating its status as distinct and apart from Cuba and other foreign coun tries; assures the continuation of the duty-free quota established under the Tydings-McDuffie Act. Shipping is satisfactory, despite war and strike conditions, and the rice crop outlook for next year is promising. The crash in hemp prices in the middle of August was due almost entirely to war condi tions and the Japanese government’s regula tions limiting or prohibiting certain exports. The decline in hemp prices did not last, how ever. Tobacco is plugging along about the same as last year, while real estate brokers report the best business in at least five years. In other words, business is good. And that is, of course, the first possible reason why we may have another boom. We have not been knocked out by the stock mar ket; we have just been knocked down. In estimating the future, Mindanao must be reckoned with. We frequently hear the opinion expressed: “We’ve got to find another mining district. The Paracale dis trict pulled us out of our last slump, and a new, important mining area will do the trick again.” JOURNAL readers will remember Earle W. Bedford’s excellent article pointing out the practical potentialities of mineral exploration in the Diuta Cordillera region of Eastern Mindanao. From the back ground of several years’ experience Mr. Bed ford discussed the geology of the area, and estimated that there exists an area embracing in excess of 15,000 square kilometers, sub ject to, and meriting, intensive investigation. It is known that many mining companies here have their eye on Mindanao—particularly the area of which Mr. Bedford wrote—and the rapidity with which claims have been staked there indicates that the region will not long be neglected. Last month the JOURNAL ran several timely articles on the road-building program planned for Mindanao. Although this vast, fertile region has only some 2,500 kilometers of highway today, President Quezon has begun pouring millions of pesos into the island for roads. Since that issue of the JOURNAL, the'President has announced his intention of giving Mindanao the lion’s share of the P70.000.000.00 road-building program of the Common wealth Government, and has also revealed plans for thn opening of large tracts of land there to homesteaders, and the development of hydraulic power in the country. Plans are afoot for developing rubber-growing there on a big scale. (Please turn to page 28) • 22 I HE AMERICAN CHAMBER OE COMMERCE JOURNAL October, 1937 Price Pegging Experiment d Will history reverse itself When brokers’ clients took their reserved seats in broker’s offices on Saturday morning, September 11, and settled back to watch the board, they noticed a cryptic announcement penciled across the bottom of the board reading, “trading will not be permitted in shares below the price last quoted at the close of trading on Friday, September 10.” Most brokers added figures showing the pegged price for each stock. The move came as a surprise to most people. For weeks there had been talk that brokers might as well close up shop, for all the amount of trading there was on the two exchanges, and this had actually been sug gested. A “breathing spell”, it was argued, would be a good thing for everybody. It would give a chance to catch their breath, and then, after the demoralizing ef fect of constantly lower prices had worn off, trading could be resumed after a few days or a few weeks, with everbody getting a fresh start. No one had taken this suggestion seriously, since they well knew that, with the exchanges closed, buying and selling of stocks would continue as before, “over the counter” or from hand to hand, without benefit of bro kers. Yet, it was felt that “something should be done.” Every piece of news that could be construed as in any way unfavorable sent the market daily down to new lows for the year. Indeed, it did not even require news to do this; every fresh rumor was reflected in a selling mar ket. Investors were almost completely scared out of the stock market. Trading dwindled to a minimum. Floor traders and brokers devised private sweepstakes among themselves in order to keep busy during the short hours the exchanges were open for trading. It was felt that in many cases stocks were quoted at prices which were not justified, in view of their produc tion figures, ore reserves, management policies and divi dend rates. So, the governing board of the Manila Stock Exchange took the situation in hand, and decided on the momentous and unprecedented step of pegging prices at a certain level, i.e., establishing a fixed price below which brokers would not receive buying or selling orders for any stock. The International Stock Exchange quickly fell into line, although in some cases their pegged prices were higher than those on the other Exchange, and, in some cases, lower. Then brokers waited grimly to see what would hap pen. If the pegged level were penetrated, stock would (Please tarn to page MINES: MANAGEMENT, OPERATION, PROMOTIONS, TECHNICAL ADVICE and CONSULTATIONS, ASSAYING, SURVEYING and GEOPHYSICAL HI PROSPECTING. ALVIR & CO., INC. CONSULTING ENGINEERS 1. Antipolo Mining Co. 2. Banban Mining Co. 3. Benguet Bokol Gold Veins, Inc. 4. Benguet Gold Cave Mines 5. Buneg-Mining Co., Inc. 6. Century Mining Co. 7. Kabayan Free Gold Mines, Inc. 8. Kabayan Central Mines, Inc. 9. Luzon Consolidated Mines Co., Inc. 10. Mambulao Central Mining Co., Inc. OFFICERS AND DIRECTORS: FOR THE FOLLOWING ORGANIZATIONS— 11. Mindanao Hamamali Mines. Inc. 12. Pacific-San Mauricio Mines. Inc. 13. Paracale-Tawig Mines, Inc. 14. San Mauricio-Pitisan Mining Co. 16. Santo Nino Mining Co. DR. A. D. ALVIR .................... DON VICENTE LOPEZ ......... MR. FREDERIC H. STEVENS MR. J. V. BAGTAS................. HON. F. A. DELGADO ......... ATTY. JOSE D. ALVIR......... . . . . President and General Manager Vice-President and Business Manager ....................................................................... Director ....................................................................... Director ....................................................................... Director ............................... Secretary-Treasurer DELGADO & TARADA Bankers: PHILIPPINE NATIONAL BANK TELS.: ' 2-29-19 1 2-33-36 Offices: YUTIVO BLDG., MANILA P. O. BOX 849 MANILA IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL October. 193 7 I lli- AMERICAN CHAMBER OF COMMERCE JOURNAL 1A INTERNATIONAL HARVESTER Keeps Them On the Job Models TD-35 TD-40 DIESEL TracTracTor ANY fine mechanical product is finer still when it has dependable service close at hand. That fact is a strong factor in the success of INTERNA TIONAL HARVESTER Tractors, Power Units and Farm Machinery. Behind every INTERNATIONAL HARVESTER machine stands a service policy of lasting cash value to every owner. A staff of expert mechanics is maintained and a complete stock of repair parts is always available. As a direct result, INTERNA TIONAL HARVESTER machines sold 10, 15 or 20 years ago are still in operation. International Harvester Company OF PHILIPPINES BRANCHES MANILA BRANCHES ILOILO CEBU BACOLOD DAVAO BAGUIO LEGASPI Above: /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 Price Pegging... (Continued from page 22) change hands outside of the facilities of the Exchanges, and the latter would be forced either to rescind their order, or to close up shop. The consequences of either step would be practically to wipe out stock equities, for the bottom would no longer be in sight. The Securities and Exchange Commissioner, Judge Ri cardo Nepomuceno, announced himself in favor of the expedient. (The Commission has, in general, been in favor of almost anything lawful which would tend to keep stock prices from going too low.) The public, on the other hand, was not so sure where it stood on the matter, and criticisms were spoken and published about the pegged-price level. It was argued that the two Exchanges exist in large measure to serve the investing public by providing it with a market place where stock could change hands with a minimum of delay; that in this sense they were invested with a public interest; that by their action they in effect denied owners of stock the right to sell at any price they chose, and buyers the right to buy at the lowest price they could get; and that in this way they neglected their duty and followed their own selfish in terest and the interests of their broker-members by establishing a level below which stock could not be bought or sold. During the first week of pegged prices the public crowded the sidelines. There was practically no trad ing to speak of, but the average price of shares rose more than 10 points. The middle of the second week saw a resumption of buying interest in producing issues, which carried some of them to prices many points above their September 10 levels. The rise was featured by San Mauricio, which went from P0.49 to P0.85. Profit taking set in the third week, and stocks lost part of their gains. The number of shares traded in also decreased, but stocks are still comparatively far above their levels before the two Exchanges announced pegged prices. Will the experiment succeed? So far it has, and this in itself is, at first surprising, when we look at some similar experiments in the past. President Hoo ver’s grain corporation tried to hold up the price of wheat by going into the wheat pit at Chicago, ready to buy wheat at its own high price. The government lost out in that experiment, and ended with millions of dollars of high-priced wheat in its warehouses, with nowhere to sell it. That carry-over of government wheat hung over the wheat market for years. But can that unpleasant experience of the United States government be compared with the action here? In our opinion it can not. It must be remembered that President Hoover acted on his own initiative, and without the support of grain buyers or brokers. Besides that, foreign wheat was being dumped in the United States, as well as in the rest of the world, at prices in some cases half as high as the United States grain corporation would pay at Chicago. Add to this a world-wide depression, which was beginning to paralyze American business in gen eral, and you have a combination of adverse forces which spelled the inevitable doom of President Hoover’s ef forts. We see no such combination of forces here. In the first place, the brokers acted together here in establish ing pegged prices. President Hoover acted alone. In the second place, obviously the local stock market faces no problem similar to that confronting Hoover in for eign dumping of wheat. Thirdly, business in general (Please turn to page 3i) Koppe|_ FOR THE MINING INDUSTRY: • Railroad Material Of Every Description • Ruhrthaler Diesel Mine Locomotives • Pennsylvania Air Compressors • Morgardshammar Mine Hoists • Craelius Diamond Drills • Atlas-Polar Diesel Engines • Asea Electrical Equipment • Avesta Drill Steel • Roebling Wire Rope • Etc. Etc. Etc. —e— Your Enquiries Are Solicited KOPPEL (PHILIPPINES) INC. MANILA 75 DASMARINAS ILOILO IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 Survey of Industrial Metals An exclusive feature, in the JOURNAL By the United Press NEW YORK, Oct. 15—Consider able unsettlement on all majoi' mar kets caused non-ferrous metal prices to drift to lower levels during Sep tember, according to the monthly review of the magazine Metal and Mineral Markets. The disturbed situation in Europe and the Orient together with the wide break in security prices caused a slump in metal buying. Even greater declines were probably averted by the steady consumption demands of industry. The industrial absorption of nearly all non-ferrous metals this year is expected to show marked increase over previous years. Any marked renewal of metal purchases by na tions carrying on rearmament pro grams would produce an instant response in prices, most traders be lieve. Copper prices drifted toward lower levels late in September following in AVERAGE METAL PRICES FOR SEPTEMBER, 1937 (By United Press) COPPER Electrolytic, Domestic refinery . Electrolytic, Export, refinery . . London, Standard Spot ............ London, Electrolytic, bid.......... LEAD 13.530 12.984 52.989 58.966 New York St. Louis . - 0.052 - 0.052 6.400 6.250 London, Spot ............................. 20.990 - 1.616 London, Forward ...................... 21.044 - 1.626 SILVER & STERLING EXCHANGE Silver, New York per oz............. 44.750 Unchanged Silver, London, pence per oz. . . 19.889 4- 0.041 Sterling Exchange, “checks” . . 495.145 - 2.898 ZINC St. Louis............................... . 7.190 - 0.002 London, Spot............................. 21.406 - 2.734 London, Forward ...................... 21.607 - 2.683 TIN New York, Straits .................... 58.675 - 0.790 London, Standard Spot ............ 258.943 - 5.652 OTHER METALS Gold, per oz., ,U. S. price.......... $35,000 Quicksilver, per flask ................ $89,020 Antimony, domestic ..................... 16.555 Platinum, refined, per oz................$51,000 Cadmium..................................... 142.500 Aluminum, 994-f4 per cent .... 20.000 CHROMIUM Chromium, 97G, per pound ... 85.000 MANGANESE ORE 52 to 55%, c.i.f. Atlantic ports . . 40.000 (Domestic quotations, unless otherwise stated, are in cents per pound. London averages for copper, lead, zinc, dications production was continuing to expand in nearly all producing areas. The average price of domes tic electrolytic for the month was */i. cent under August. Export cop per declined nearly one cent under the August level. Lead and zinc were in better de mand from commercial users and September average prices were only a shade under August. Lead con sumption has held up well through out the year with prospects good for renewed buying in October and November. October delivery sales have been small, leaving the market with a good undertone. Tin prices declined again on New York and London as traders worried over the world visible supply. The September average for Straits tin on New York was off % cent. The out look for improvement was good for October in view of month end reports from London that visible stocks had Gain or Loss from Sept. - 0.245 - 0.942 ’ - 4.154 - 4.629 I’inae has? smacagg s IT COSTS NO MORE Unchanged - 2.403 4- 1.228 Unchanged ft Unchanged J Unchanged Unchanged Unchanged declined about 3,000 tons during September. World visible stocks on Sept. 30 were placed at 20,922 tons. Development of additional industrial uses for tin may improve consump tion figures during the winter months and brighten the outlook for tin prices in the early part of 1938, Lon don metal dealers believe. Other wise, the International Tin Com mittee is expected to fix lower quotas for the first quarter of next year to adjust the present situation. The Sino-Japanese war has dis turbed the London silver market and produced a slight gain in September silver prices. The New York price was unchanged from August. Excepting antimony, most other metals were little changed from the August levels. Chinese antimony be came scarce and improved the de mand for the domestic product, re sulting in moderately higher prices. Higher tungsten prices have at tracted traders at all major markets. China, one of the world’s greatest producers of this mineral, has vir tually halted shipments as the result of the Japanese blockade. As a re(Please turn to page 41) and tin are in pounds sterling per long ton. Sterling exchange, checks, is in cents. New York silver is for foreign metal.) Midi Best Wir Old Schenley MANMnw COCMJAU. olion Vermouth Old Schenlev Enjoy quality^ THE GREAT COMMONWEALTH of Pennsylvomo. U. S. A., is famed for the fine American rye whiskey It produces. Old Schenley American Rye Whiskey comes direct to you from the genuine source ol monufocture. It is on American whiskey on which you may depend for quality in every drop. Populor in America, Old Schenley is rapidly finding equql popularity in all parts of the world. Moke no istqke . . when you buy American whiskey be sure get Old Schenley. Old Schenley "Men, Mi.er" will be rem fMing some l,om Schenley. fmC,<e Stole )II) ScHENLEY American Rye & Bourbon Whiskies Sole Agents:—TABACALERA (Liquor Dept.) 212 M. de Comillas, Manila, Tel. 2-25-81 Branches throughout P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 Galena Mill Exceeds Rated Capacity Mineral Resources' Marinduque Plant Going 24 Hours a Day: Company Pleased. Built and delivered for operation in contract time by Southwestern Engineering, Mineral Resources’ ga lena-ore mill on its Marinduque Is land property has been operating 24 hours a day during October. There has been no hitch in routine and the company expresses entire satisfac tion with milling results. The mill is Southwestern’s first job in the Philippines, extending its well earned engineering repute in California SOUTHWESTERN ENGINEERING COMPANY OF P. I., INC. Specialists in Metallurgical Engineering and the erection of Complete Ore Mills Facilities at Manila Complete Ore Testing and assay Laboratory. Mill, Mine and Power Plant Design Department, Staff of Metal lurgical and Mechanical En gineers, Mining Engineers licensed in the Philippines Facilities in U. S. A. The purchasing, shipping and Engineering Department at Southwestern Engineering Company, Los Angeles, Cali fornia SOUTHWESTERN ENGINEERING CO. OF P. L, INC. 506-508 Calle Aviles SAN MIGUEL Manila, P. I. Telephones: 2-35-96 & 2-35-97 where its main offices are in Los An geles. S. E. Stein heads the Manila company, occupying the entire first floor of the Skou building on Calle Aviles near the intersection with Mendiola. Southwestern is very keen on the mining possibilities of the Philip pines, and hopes to have a further hand in them. It is particularly in terested in the potentialities of base metals here and their commercial ex ploitation. Its laboratory is equipped with the miniature equipment of a modern mine complete, to approxi mate the results of a full-size mill in practical daily operation. Lead and zinc concentrates, be sides gold, arc the products of Min eral Resources at Marinduque. The mill’s rated capacity is 150 a day; actual runs are about 200 tons a day, and Mineral Resources reports they can easily be 250 tons, owing to the softness of the ore, if the flotation cells are not overcrowded. Trucking the ore from mine to mill is reported as entirely satisfactory, a truck deliv ering 2 meters of ore makes the round trip in 7*/2 minutes; two dump trucks easily deliver 200 tons of ore to the mill a day, at the cost of 8-9/10 centavos a ten. A supply of 3,000 tons of ore is stored at the mill as a reserve to insure continuous operation. In such business precautions the conservatism of Victor Lednicky, superintendent, and that of the com pany’s directors appears. Mineral Resources seems to have made cer tain of everything before it turned a wheel. The company’s main pro duct is zinc, for which the current market is very strong—“the outloQk is more favorable (for zinc) than for any other base metal.” Min.,.,1 Mill on Marinduque Island. And now, with Marinduque so well launched, what of the Labo property of Mineral Resources on the main land, the Paracale littoral? There is gold here, with copper. Work has recommenced on the main shaft, with the installations of a new engine. Will another commercial mine turn up? “New discoveries on claims 71-72 are very promising. Cuts across the formation have proved the length to be several hundred feet. A pros pect shaft is being put down 50 feet to crosscut the formation at depth. (Please tarn to page 32) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL October. 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 The Stock Market (September 10 to October 9) Buyers icatched front the sidelines to see how the pegged-price experiment would work out, and then started in on a buying spree which featured a rise of San Mauricio from fO.JtO to P0.75 on September 29. Profit-taking then set in, and the market eased off sharply with President Roosevelt’s Chicago speech, condemning “international anarchists,” but rose again on Friday, and closed strong on Saturday, October 9.. Interest mainly in producing issues. Down, down, down the market went from January of this year, with only short breathing spells, which gave a false sense of hope while they lasted. The QuezonSayre statement, presaging possible independence in 1939; rumors that Washington would reduce the price it now offers for gold; war scares in Spain and China all combined to drive it lower, and ever lower. Talk was heard that the two stock exchanges might as well close up shop. Trading became so slight that floor-traders amused themselves during the day with sweepstakes games gotten up every day among them selves. Everyone agreed that something should be done, but none knew what. Finally, on Saturday morning, September 11, this notice was posted on the big boards of all brokerage offices: “Trading will not be permitted below the prices for which issues sold at the close of trading on Friday, Sep tember 10.” Then something had been done. An emergency mea sure, certainly. And brokers were by no means certain that it would work. If it did not, stocks would of neces sity be bought and sold over-the-counter or privately without the assistance of the facilities of the exchanges. Brokers waited grimly to see. The first week of trading under the voluntary price restrictions was both encouraging and discouraging. Pegged prices did indeed bring a halt in dwindling prices, and a rally of about 10 points developed from the estab lishment of the minimum transaction level. But dull ness, which amounted to virtual stagnation, took hold of the market, and kept the volume of sales at record low levels. The private floor-traders’ sweepstakes boomed on the floors of the two exchanges. Speculators and investors were not at afl sure about this pegged-prices business, and crowded the sidelines. (Please turn to pay JJ) IX RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CH AM HER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 Will We Have . . . (Continued from page 21) Now, we don’t say the prophets are correct in predict ing that a new district may bring back the halcyon days gone by. But we do say that Mindanao is going to be heard from, and soon. Many people are of the opinion that there has been only one thing wrong with the stock market. They lay the blame for the whole amazing recession in stock prices on Independence. They point to the famous QuezonSayre statement (that the Interdepartmental Committee on Philippine Affairs would consider not only economic adjustments to be made between the United States and the Philippines, but would also consider the advisability of terminating political relations between the two coun tries much sooner than 1946, possibly in 1939) as the start of the decline in market prices, and they assert the fear of almost immediate independence for the Phil ippines is what will keep stock prices comparatively low. This may be true. Certain it is that Messrs. Quezon and Sayre contributed greatly to the market fall, and it is equally certain that many people are conserving their capital to the utmost while they wait and see what is going to happen. This does not contribute to an active market, or even a normally enthusiastic market. Now Chairman MacMurray has been at great pains from the first to make it clear that his committee is not concerned with political questions. The members of his Committee are defined by him as mere fact-finders. They are concerned with trade relations only; political ques tions are strictly up to Congress. This may be true. MacMurray is undoubtedly sincere. But we doubt whether nothing at all will be done about the Independence question so unexpectedly thrust back upon us by Sayre and Quezon, after the MacMurray Committee makes its report. While Chairman MacMur ray may be able to keep all political discussion out of that report; while he may be able to keep the pure sub ject of trade and quotas completely unsullied by any gross reference to, or recommendations as to the future political status of this country, it is almost certain that the subject will be taken up by the Interdepartmental Committee, as indicated by Sayre and Quezon. It also seems almost incredible that the subject will not be mentioned at all in the Interdepartmental Com mittee’s report to President Roosevelt, or that the Pres ident will have nothing to say on it in his recommenda tions to Congress. Of course, it is possible that neither the MacMurray Committee, the Interdepartmental Committee on Philip pine-American Affairs, President Roosevelt or Congress will touch upon the question of Independence for the Philippines. In this event, matters will stand as they were fixed in the Tydings-McDuffie Act, to-wit: Inde pendence on July 4, 1946. Which, come to think of it, wouldn’t be such a bad outcome at that. . While we are not political soothsayers, we throw out the suggestion we have frequently heard of late that Filipinos have grown unenthusiastic toward Independ ence since the Sino-Japanese embroglio, and, fearing that the restless expansion of the Japanese Empire may evenOctober, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 tually reach down to engulf the Philippines, are taking more and more comfort at the sight of the American flag flying cheerily in the breeze over Malacanang Palace. Of course, Congress has the last word, but at least with Filipinos themselves lukewarm toward Indepen dence, one influence for immediate political freedom for the Islands is removed. Chairman MacMurray has estimated that his Com mittee will have made its report by February of next year, at the latest, and probably much sooner. It there fore appears that we can confidently expect a Philip pine Bill by March of 1938. Those who have followed that stock market know that the Sino-Japanese war affected it adversely. (We know that neither side has declared war, and that both countries still maintain Ambassadors in the capital of the other, but where thousands are killed in fighting every day and a blockade extends all along the China coast, that, to us, is a war.) Business men know that the war has affected their business. Shipments to either China or Japan are vir tually prohibited by trebled freight insurance. If ship pers cannot afford to pay insurance costs, they cannot get bank credit on then* shipments, since banks do not loan money on uninsured freight. This affects the vol ume of bank business in foreign exchange and in com mercial paper. This, in turn, freezes a normal outlet for surplus bank funds, and depresses business conditions generally. Pro ducers are unable to sell their goods abroad; ship-owners are unable to find charterers for their bottoms; tourist traffic falls off to a fraction of normal—and so on. Yet, on the other hand, warring nations must have goods. And they must have not only goods which will be useful for war, but they must also have in large measure food, clothing, shoes, luxuries—goods which they would ordinarily produce for themselves within their own boundaries, but which they cannot produce during war time when their every energy must be bent toward winning the war. The United States discovered this fact in 1914, and profited by it immensely. It is entirely possible that, under the influence of an abnormal demand from other countries at war, Philippine industries and Philippine agriculture may receive a tremendous impetus such as they have never before experienced. We do not say this will happen. We merely throw it out as a possibility. Undoubtedly another, albeit more prosaic, cause of the 1937 crash was the unwarranted inflation of values. Stock prices were far higher than they should have been. Dividends were so far discounted that they were prac tically lost to sight. It couldn’t last. Then we also had the demoralizing effect of so many mining companies springing up, most of them capitalized at ridiculously high figures (no one thought of forming a mining company with Jess than a million pesos capi talization), selling their stock gleefully to a joyful public “25% down and the rest when the Board calls for it,’’ then starting in enthusiastically buying equipment, bring ing mining engineers out from the States, and figuring when they would be ready for a mill. Some of these companies were patently mere promo tion “get-rich-quick” schemes (the promoter got rich. 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 not you). The majority of them were honest enough, but over-enthusiastic, carried away by the hum of mil lions in the air. It often happened that, after a company had been formed for the purpose of mining gold, and, in fact, had actually sold its stock, it discovered that it had no claims. We don’t say gold—they didn’t even have a place to look for gold. And even this was not always dishonest. They thought they had gold claims—wonderful claims—but dishonest claims peddlers, over-lapping claims, or a failure to com ply with the requirements of the law in filing their claims or locating them—and reputable, honest business men frequently woke up to discover that they had sold stock to the public on nothing. Worthless claims, salted claims, Escolta miners, the penny share racket—all of these things combined merrily to fleece the people, and help the crash along. But the Philippines is an amazingly resilient country. It has taken shocks before—taken them in its stride. It has successfully come through crisis after crisis. Re member the first impact of the Tydings-McDuffie law? Remember the crash of 1933? This is not due entirely, or even primarily, to luck. After all, the Philippines is chiefly an agricultural coun try. This gives it a foundation of strength. Also, it is a peaceful country, its government is stable, its fi nances in good order, and its taxes low. Therefore, in the nature of things, it takes a lot to hurt the Philippines permanently. Remembering all of this, there are those who believe the country will shake off its headache, and stride for ward again. Yes, they predict another boom. They tell us that we will be buying and selling stocks again, and that we will just be putting different names on our buying and selling orders than we did before. Many of the weak companies with no ore resources will grad ually spend their capital in a fruitless endeavor to find the elusive metal, but their places will be taken by others. Remember King Solomon? Or Bicol Gold? Or Mon tezuma ? And, they will argue vehemently, and with some ef fect, new mines are coming into production regularly. This, they assert, strengthens the market fundamentally. To predictions that we will merely have a repetition of the last boom, with wildcat companies making off with the investor s money, they reply tnat this cannoc happen again, or at least not on nearly so big a scale as before, because the Securities and Exchange Commis sion and the Bureau of Mines have now organized and trained their staffs so that they are now prepared to protect the public against unsaie or dishonest ventures. This is wrong. The Government can never protect the public from unsaie ventures. It does not even pre tend to try to do so. The two agencies mentioned can only protect against fraud. They can keep us from hav ing our money stolen from us, but they cannot keep us from putting our money info a hopeless or near-hope less venture, if we feel like doing it. They can, however, tell us that a venture is hopeless -before we invest in it. They can make it possible for us to find out approximately what the chances really are of the company which is asking for our hard-earned money. This is all they can do, and all they were created to do. But it is a lot. (Please turn to page 52) Ideal Replacement Engine When the combined costs of installation, operation and main tenance are considered, Waukesha-Hesselman Engines effect the ' greatest economy ... They power Ingersoll-Rand compressors in all parts of the world . . . The ideal source of power for buses, lorries, light speed vans, trailer-tractors, farm tractors, agricul tural machinery ... Bus fleet operators report drastic economies: fuel costs reduced as much as 50% to 60%—mileage increased 20% to 40%. One bus company reports a saving of twenty pounds sterling per bus per month with Waukesha-Hesselman diesel-fuel power instead of petrol. Founded in 1906, Waukesha Motor Company today manu factures forty-two different models of engines burning all modern fuels. The ratings range from 12 to 375 HP. ^lellutel mean lonqet lived entjinsl, clu.teh.el, beatin^l—reduced ma.intenG.nce coltl Diesel-Oil, Low Com- IT N P I kl T C pression, Spark Ignition Ei Pl VI E IX EL w of economical application of fuel oil power The sEarnshaws Docks & Honolulu Iron Works MOTOR SERVICE,' INC." " 408 Rizdal Ave. Manila, P. I. WAUKESHA MOTOR COMPANY WAUKESHA, WISCONSIN, U. S. A. Cables: “MOTOR-WAUKESHA” 21-7:37 expand the field IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL WAUKESHA-HESSELMAN Waukesha-Hesselman Engines—four and six cylinders, 300 HP—burn low diesel fuels but without the Diesel’s high pressures. Fuel is fed by solid injection as in the conventional Diesel engine, but a spark from battery or magneto ignites the charge. © October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 MINES Acoje Mining Co............ Agno Consolidated........ Agusan Gold Mines ... Amalgamated Minerals. Ambassador ................. Angelo Mining Co......... Antamok Goldfields ... Associated Mines.......... Atok Gold Mining Co... Baguio Gold Mining Co. Balatoc Mining Co......... Batangas Minerals .... Batong Buhay .............. •Benguet Consolidated .. Benguet Exploration .. Big Wedge Mining Co. . Bued Mining Co........... Century Gold ............... Coco Grove, Inc............. Consolidated Mines .... Crown Mines ............... Dayaka Mining ........... Demonstration ............. Developments, Inc......... Dulangan Min. Int. ... Dulong Mining Co......... East Mindanao............. El Tesoro Mines, Inc. .. Florannie ..................... Gold Creek Mining Co.. Gold Shares, Inc........... Gumaus Goldfields, Inc.. Homestake Gold Mines . Ipo Gold Mines, Inc. ... Itogon Mining Co........... I. X. L. Mining Co......... Lepanto Cons................. Mambulao Cons.............. Mapaso Goldfields........ Marsman & Co., Inc. .. Masbate Cons................. Mindanao Hamamali .. Mine Factors ............... Mine Operations ......... Mineral Enterprises .. Mineral Resources .... Mother Lode ............... Nielson & Co., Inc. ... North Camarincs ........ Northern Mining ........ North Mindanao ......... Palidan Suyoc ............. Paracale-Daguit ........... Paracale Gold ............. Paracale Gumaus ........ Paracale Mining .......... Philippine Amalgamated Phil. Dorado................. Phil. Iron Mines ......... Pilar Copper Mines ... Prudential Min.* Co.. .. Rio Verde ..................... Salacot Mining Co......... San Mauricio ............... Sta. Cruz Mambulao .. Santa Rosa (New) .... Surigao Oriental .......... Suyoc Consolidated ... Syndicate Investments . Tinago Consolidated ... Twin Rivers Gold Co. . United Paracale............ Universal Explor. Co. .. Manila Stock Exchange MINING SHARES SOLD September 16th to September 30th, 1937 October 1st to October 15th, 1937 Share First Last Sale Sate Closing Hid Asked Total Sales From P .08% to .033 .043 .003 .(Mi .15'2 .14 11.00 .0634 .01 10.00 .06 ,10M> .3612 .013 .0.36 .35 '/2 .23 .03 .11 ,001 .07 .06 % .003 .11 % .38 .48 .11 .13% .09 40.00 .11 .002 .007 .11 .10% .10% .06% .06% .16 .007 .11 .05 % .013 .46 .001 .018 .15% .05% .08 53,076,550 P .09 .033 95,000 40,000 .09 .033 .10 .033 .08 .033 .08 .033 .08 .09 .05 .10 110,000 40,000 .044 70,000 .05 .05% .05 .05 .04% .05 150,000 .002 650,000 .033 .004 .002 .002 .002 .003 2,850,000 .07 330,000 .07% .09% .07 .07% .07% .08 600,000 .58 917,000 .58 .61 .54 .55 .55 .56 774,000 .004 1,400,000 .0041 .004 .004 .004 .004 2,250,000 .18% 650,000 .18% .20 .17 .17% .18 .18% 560,000 .17 130,000 .17 .18 .16 .16 .16 .17 225,000 7.40 2,000 7.40 .07% 1,535,000 .07% .13 .07% .13 .12% ’.is 3,195,000 .011 1,270,000 .011 .014 .011 .012 .011 .012 1,2/0,000 10.25 4,800 10.00 10.25 9.00 10.00 10.00 10.25 13,800 .06 30,000 .06 .06 .06 .06% 10,000 .12% 535,000 .12 .14 .11% .12% .12% .13 40,000 .09% .10% .002 52 518,000 .53 .57 .46 .52 .51 .53 467,00C .015 26,155,000 .016 .022 :016 .019 .018 .019 40,360,000 045 400,000 .047 .05% .035 .035 .034 .038 380,000 .06 .06 .038 .038 .05% 360,000 .42 1,426,000 .42% .45 .39 .39 % .’39 .39% 1,477,000 .23 5,000 .20 .23 .10 .03 50,000 .03 .03 .027 .027 .027 .03 230,000 .11% 410,000 .11% .13 .10% .10% .10% .11 495,000 .001 50,000 .001 .001 .011 .002 50,000 .08% .10% 20,000 .08 160 000 .07% .09 .07% .08 .07% .09 60,0ud .07 .07 .05% .05% .05% 895,000 .07 % 770,000 .07% .09% .06% .08 .08 .08% 1,110,000 .003 155,000 .003 .003 .003 .002 .003 1,900,000 .13 360,000 .12% .14 .11% ’.ii % .11% .12 435,000 .43 1,046,000 .43% .45% .38 .38% .38% .39 1,622,000 .56 567,000 .56 .63 .55 .58 .57 .58 456,000 .12 50,000 .13% .13% .12% .13% .12 .13% 45,000 ,13V> 125,000 .14 .15 .14 .15 .14% .16% 100,000 285 000 .09 .10 .08% .09% .09% .10 605,000 43 00 *2 45.00 47.00 40.00 40.00 45.00 39.00 180 .13 1,055,000 .13 .15% .13 .14% .14% .15 .004 1,705,000 .002 .007 100,000 200,000 .007 .007 .007 .007 .007 400,000 .13 165,000 .12 .12 .12 .12 .12% 10,000 .03 .03 .026 .026 .04 60,000 .15'/2 310,000 .15% .19 .13 .15% .15 .15% .04% 880,000 /in nnn ’.i3% .13% ’.ii .12 ’.ii .12% 60,000 .13 .24 .24 .23 .23 .23 .24% 70,000 .045 .045 .045 .045 60,000 .06 .06% .06 .06 .06% 40,000 465,000 .09% .11 .08 .09 .09 .09% 945,000 .09 .003 .003 .003 .003 .005 100,000 q/ja nnn .08 .09% .07 .08 .08 .09 1,105,000 one nnn .26% .26% .21 .23% .21% .24 140,000 2gi/ ,007_ ZUDjUUU 300,000 .009 .009 .007 .008 .007 .009 350,000 .12 .14% .ii % 42% .ii 43% 345,000 .12 100,000 ... 125.00 .05 .04 .05% .05% .05% .05% 40,000 .05% 70,000 .014 .014 .013 .613 .014 605,000 .015 370,000 .74 .83 .64 .67 .66 .67 1,718,000 .73 1,404,000 .002 .002 .002 .001 .003 150,000 .001 150,000 .028 .028 .02 .02 .02 .021 7,780,000 .027 3,840,000 .005 .005 .005 .004 .005 100,000 .005 450,000 .20% .24% .19 .20% .20 .20% 5,845,000 .19% 2,090,000 .07 .07 .07 .07 .06% .07% 115,000 .06% 170,000 .09% .09% .08 .08 .09 45,000 .08 20,000 .20 .20 .20 .20 5,000 .56 .64 .53 .57 .57 .58 2,102,000 .55 931,000 .08% .09 .06% .06% .07% 805,000 TOTAL SALES 88,734,980 TOTAL SALES 32 THE AMERICAN CHAMBER OE COMMERCE JOURNAL October, 1937 Galena Mill... (Co,“.,<.<<.<1 prom page 26) The oxidized surface contains con siderable free gold in addition to me tallic copper and chalcopyrite, but it is quite probable that this will all be in sulphides at depth.” The quota tions are from the recent circular to shareholders sent out by Mineral Resources over the signature of its president, Samuel F. Gaches. Various offers are in hand for the company’s lead and zinc from Maririduque, where the gold recovery is also very pleasing. INTERNATIONAL STOCK EXCHANGE CRYSTAL ARCADE BLDG—MANILA. P. I. FORTNIGHTLY REPORT Longyear Diamond drill at work at Malaguit. Waukesha’s New Export Manager Waukesha Motor Com pany (advertisers in the Journal) announce that Max Hofmann has been made sales manager of their export depart ment. He has been with the Waukesha Company since 1926 go ing to them from KoiMax Hofmann tinS Brothers in the Argentine, a diesel en gine building company. With the Wauke sha Company Hofmann has specialized in overseas sales and installation problems. The company handles Spanish correspond ence. AN AMERICAN MILL SU PERINTENDENT, now located in Mexico, with 13 years’ exper ience, the past five years as mill superintendent with a mining company operating in Mexico, wants a connection in a similar capacity or as flotation plant operator with a reputable Phil ippine mining company. Age, 32; married; speaks and writes Spanish fluently; can leave Me xico on short notice if necessary. Address, James C. Kennedy, A. S. & R. Co., Angangueo, Michoa can, Mexico. Mines Sept. 16th to Sept. 30th, 1937 Oct. 1st to Oct. 16th Total First Sale Last Sale Total First Sale Last Sale Sales Acoje ............................. .. P .08 P .09 41,000 .09 .08 50,000 Acop ............................... 000 000 Agno Consolidated .... .03 .03 15,000 ’ .033 ’ .033 20,000 Agusan ........................... 000 000 Amalgamated Minerals .038 .04 210,000 .045 .05 60,000 000 .003 .003 980,000 Antamok Goldfields ... .54 .57 379,700 .57 84,000 Associated Mines ........ .004 .004 140,000 .004 .004 415,000 Atok Gold ..................... • 17 .17 105,000 .18 .185 55,000 Baguio Gold ................. .135 .16 55,000 000 Balatoc Mining ........... 000 000 Batangas Minerals .... .005 ' .0775 1,280,000 .075 ’ .125 4,230,000 Batong Buhay ............. .01 .01 410,000 .011 .012 3,520,000 Benguet Consolidated . 10.00 10.00 000 000 Benguet Exploration .. 000 .12 000 Big Wedge ................... / .105 ' .H 401,000 .125 480,000 Bonanza .................... . _. 000 000 Bued ............................... 000 .04 .04 10,000 Coco Grove ................... .37 ’ .52 120,000 .53 .52 69,000 Consolidated Mines .... .013 .016 13,010,000 .015 .019 19,005,000 Cooperative Mines .... 000 .045 .046 000 Crown Mines................. .03 ’ .039 130,000 120,000 Dayaka ............. ........... .04 .045 40,000 .055 .055 15,000 Demonstration ............. .35 .42 618,000 .41 .39 646,000 Dulangan ....................... 000 '028 .026 000 Dulong ........................... .026 .027 70,000 30,000 Eastern Deep Sea .. . ^ 000 .ii5 000 East Mindanao ........... .115 ’ .i is 30,000 .11 140,000 Equitable ....................... 000 000 Filininas ....................... 000 000 Florannie ..................... 000 000 Gold Creek ............. . .07 ’ .07 15,000 000 Gold Shares ................. .035 .042 120,000 .04 ' .0525 775,000 Gumaus Goldfield ........ .06 .0725 60,000 .0825 .08 220,000 Ipo Gold Mines ............ .115 .13 15,000 582,000 000 Itogon Mining ............. .38 .43 .42 ”.39 770,000 IXL ............................... .49 .57 69,000 .62 .57 3,000 Lepanto Consolidated . 000 000 Luzon Consolidated . ..'’ . ’ .005 ■.005 42,500 000 Mambulao Paracale . .. 000 000 Mapaso Goldfield ........ .0875 ’ .0875 35,000 000 Marsman ....................... 000 000 Masbate ............. ........... .115 ”.i4 310,000 ' .13 .145 846,000 Mineral Enterprises .. 000 .026 .026 20,000 Minerals and Metals .. 000 000 Mineral Resources ........ ”.ii ' ’.i35 60,000 0OU Mother Lode ............... .045 .045 10,000 000 Niplqon & Co. ................. 000 000 North Mindanao .......... 000 000 Northern Mining ........ 000 000 Palidan Suyoc .... .0675 ' ^0925 125,0000 ’ .095 .09 294,000 Pampanga Gold .......... 000 000 Paracale Dagnit . . . 000 000 Paracale Gold ............... .065 ’ .075 90.000 ’ .0725 ’ .075 160,000 Paracale Gumaus ......... .16 .24 60,000 000 Paracale Mapalad ....... 000 .008 000 Paracale Mining Dev. . . .0065 ' .0085 765,000 .008 555,000 Philippine Dorado .... .105 .12 35,000 .12 .125 235,000 Philippine Iron Mines . . 000 000 Philippine Min. Mng. .. 000 .55 .54 000 Philippine Racing Club . 400 6,500 Prudential ..................... 000 ’ .055 000 Rio Verde ....................... .06 .06 50,00.0 ’ ’.055 90,000 Salacot Mining ............. 000 .013 .013 230,000 San Mauricio ................. .46 ’ .73 980,000 .71 .67 777,000 Santa Rosa ..................... .018 .026 6,655,000 .025 .02 5,340,000 Santo Nino ................... 000 .005 000 Surigao Oriental ........... .005 ’ ^005 1,645,000 .005 420,000 Syndicate Invest. .. .. 000 000 Suyoc Consolidated .. .. .i-5 ’ .195 1,511,000 .19 ' .20 6,630,000 Tagumpay ..................... 000 000 Twin Rivers ................... 000 ' .05 .047 Union Management ... . .04 .05 136,000 35,000 United Paracale ........... .44 .55 178,000 .55 .57 434,000 Universal Exploration .06 .06 60,000 .06 .0725 465,000 Virac Exploration .... 7,500 000 TOTAL (LISTED) MISCELLANEOUS GRAND TOTAL .. 30,671,200 48,319,500 145,170 30,816,370 35,000 48,354,500 October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 33 The Stock... • (Continued from page 27} Yet, the close of the week on Saturday, September 18. showed stocks up an average of more than 10 points over the low established on the previous Friday, and the mar ket seemed to have a strong undertone. Brokers de cided to report for work as usual on Monday morning. The second week of pegged prices opened quietly, but the market turned active toward the end of the week, some producing issues gaining sharply. San Mauricio opened at P0.49 on Monday, and began a steady rise interrupted only by a drop on Tuesday, to close the week at P0.61. Itogon advanced from P0.415. Antamok, Demonstration and United Paracale likewise recorded substantial gains. There was no news of importance which would account for this gain, and most guesses had it that a halt in short selling was the reason. This “short selling has stopped” reason has been ad vanced to account for every recent gain in stock prices, in spite of the fact that short selling has been outlawed for, lo, these many weeks. An exciting week was ushered in on Monday, Septem ber 27. With Marsman issues leading the way, the mar ket moved sharply upwards on Monday, in the most active day’s trading that either Exchange had witnessed since the middle of August. Interest was concentrated on producing issues, which all recorded gains. San Mauricio gained 8 points more to P0.70, while United Paracale reported a 4-point increase to P0.53. Coco Grove, Itogon, Marsman, I. X. L., Antamok, Ben guet Consolidated, Atok Gold, Demonstration and Ipo Gold, among others, sold at higher prices. Coco Grove continued to rise on Tuesday, while others held most of their Monday gains. Coco Grove made five points more on Wednesday, September 29, while San Mauricio, not to be outdone, rose to P0.76, dropped back to P0.71, and finally closed at P0.75. Virtually all produc ing issues were active, and closed two to three points higher. Apparently surprised at what they had done, buyers decided to take their profits, and Thursday, September 30, showed a slight decline in prices. That Friday was irregular, but the market turned upward again on Satur day, again led by the Marsman-managed mines. Averages gained 2.15 points, to close at 86.94, a gain of no less than 10.79 points over the close of the previous week. SAN LUIS INVESTMENT COMPANY Wilson Building Juan Luna Street Manila A permit has been granted by the Securities and Exchange Commission for the sale of 750 SHARES CLASS “A” 6% PARTICIPATING PREFERRED STOCK AT Pl00.00 PER SHARE. A detailed prospectus will be mailed upon application. YANGCO AND COMPANY ! General Agents P. O. Box 2707, Manila i Brokers, when queried, answered the question of why the activity and higher prices during the week of Sep tember 25 to October 2nd with the obvious answer that buyers were more active, and speculators were more interested in the market. There was again no news of any importance. The Sino-Japanese war continued to plug along on the Shanghai front, and, apparently, the gain was just one of those psychological things which cannot be explained. The week of Monday, October 5, opened with nice gains being registered all around, especially in producing issues. 17,049,450 shares were traded in at the Manila Stock Exchange, and 7,757,000 shares changed hands a' the International, the best business either mart ha done in many weeks. Suyoc Consolidated was the most active issue, and gained a point to PO^i/G. Masbate Consolidated also gained a point to 151/$ buf Santa Rosa lost 4 points to P0.024, on an announcement that the company proposed to sell its unissued capital stock to its stockholders at P0.02 a share to pay for the plant now being built. I. X. L., Angelo, Benguet Consolidated, East Mindanao and San Mauricio all gained. j WE SERVE THE MINING I INDUSTRY 1 AS MANUFACTURERS OF I Conveyors and Outfits for conveying any material | Belt Pulleys (any size) [ Mine Cars I Furnaces of all kinds i Bolts, nuts and nails Spare parts ' And “anything made out of iron” I AS AGENTS FOR I “Elin” Vienna Generators Electromotors, Transformers, Welding and Power Plants “Bukh” Diesel engines (every size and purpose) Tools, materials, And “Everything you could possibly need.” AS ASSAYERS Free pick-up and delivery 24-hour service AS CONSTRUCTION ENGINEERS AND CONSULTANTS Take any construction problem to us, from a tram line to a mill. P. I. MINING MACHINERY & ELECTRICAL SUPPLY CO., INC. Importers, Engineers, Manufacturers, Contractors Ysmael Bldg., 101 Echague, Manila Office Tel. 2-93-44 Factory: Rizal Ave. Ext. Factory Tel. Cal. 515 1 P. O. Box 1043—Cable Address “BALLMILL” (all standard codes) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 Tuesday, October 5, was another active and profitable day. Gold share averages advanced on both exchanges, and San Mauricio sold as high as P0.82—a gain of P0.33 points from the low of September 10. Batangas was up and down as usual, closing with a gain of 2:!/|. points at P0.115. Benguet lost the P0.25 it gains or loses from time to time, and closed at an even P10.00. As Marsman issues had led the gains registered all along, so they led in sharp losses suffered on Thursday, October 7. San Mauricio lost 5 points to P0.75, Suyoc fell off 2 to P0.22, United Paracale lost 4, closing at P0.60, and Coco Grove was down 3 points to P0.53. East Mindanao was the only gainer of the day, with a point 'Uvance to P0.12i/2. It was a busy trading day, and the big drop was at tributed to President Roosevelt’s Chicago speech wherein he excoriated “international anarchists,” and advocated a quarantine of treaty-breaking nations. The New York market also dropped sharply. Volume was still good on Friday, October 8, but the market continued to drop on receipt of news that the State Department had formally branded Japan the ag gressor in the Sino-Japanese war. There were no sharp drops in prices, however, and stocks were traded in a very narrow range. Batangas Minerals was an outstand ing performer, selling as high as P0.11 and Y>, and clos ing at P0.11. The market closed strong and active for the week, with practically all producing issues showing gains on Satur day, October 9. San Mauricio sold 147,000 shares within a range of P0.64 to P0.70, to close at P0.70. United Pa racale went from P0.53 to P0.56; Demonstration gained a point and a half to P0.39l/2, and Coco Grove went from opening sales of P0.46 to P0.48. Ipo was unchanged at P0.17, and closed at P0.18. There was practically no activity in non-producing issues. Brokers were pointing out as the JOURNAL went to press that the most important thing about the present market is not the gains recorded recently by many issues, but the greatly increased volume of sales on both Ex changes in the last two weeks. They argue that in vestors are much more likely to buy in an active market than they are in a sluggish one, and that the enthusiasm thus generated by increases sales is quite likely to reflect itself in increasingly higher prices all around. Meanwhile, the newspapers were being closely watched for war news, and for progress being made in the pro posed meeting of the signatories to the Nine-Power pact. Independence seems to have been forgotten, at least for the time being, and we don’t hear very much about reducing the price of gold. Price Pegging... (Continued from paye 2.',) is good here; we are not faced with the creeping paral ysis of depression which harassed Hoover and all of his efforts. We know that price pegging has succeeded in various ways since Hoover’s unfortunate experience. The New Deal has pegged the prices of farm products time and again, and apparently successfully, through subsidies to farmers and processing taxes, coupled with marketing restrictions. What are the currency stabilization funds maintained by England, France and the United States with the profits of devaluation of currency, if they are not price pegging devices? And, apparently, they are working. England has recently announced her intention to return to yrye ',{) H. A. WENDT & CO., LTD. Consulting Engineers — Geologists — Assayers — Mine Management — Diamond Drilling Contractors. 118 T. Pinpin Manila, P. I. Telephones: 2-26-27 2-26-28 2-26-29 Cable “WENDT’ Manila P. O. Box 3228 CARRIER, the same company which has cooled hundreds of theatres, depart ment stores, office structures and public buildings offers you at moderate cost, a Weathermaker cooling and air condition ing system for personal comfort in your home or office and to build profits in your store or shop. Investigate their application to your par ticular problem—make your own weather to order. EDWARD J. NELL CO. 1 T. Pinpin, Manila Tel. 2-29-75 LV RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL. 35 What the Diggers Are Doing HAUSSERMANN: BENGUET: .1 dividend of P0.25 was paid on September 30, to stockholders of record on September 20, making a total of P0.70 per share to date. Ore reserves as of July 1, 1937, were only P14,000.00 lower than the figure re ported on January 1, 1937. Total ore reserves after six months mining this year amounts to Pl6,295,240.00. The company earned a net profit for the first half-year of 1’3,955,608.75. according to its semi annual statement. Further figures for a later period than this were unavailable as the JOURNAL went to press. A JOURNAL representative had a very interesting talk with Judge Haussermann anent the timber problem now facing most important mining companies here. As usual, the Judge “saw no cause for alarm in the situation”. He said that some com panies, particularly in the Baguio area, had indeed experienced a shortage of tun nel timber during past months, and con firmed the fact that some of them had made rather extensive purchases of timber on the Pacific Coast. However, he pointed out that the Heald Lumber Company has expanded its faci lities greatly in order to supply the demand, erecting three new mills and connecting tramlines. It has1 also commenced the construction of a 15-mile aerial tram to tap new areas. These preparations place the company in a position to supply the demand, he said. The Judge pointed out that some mining companies have made very heavy demands on the facilities of the Heald company dur ing the rainy season, which has been in large part the cause of shortage of timber. He expressed the opinion that much of this rainy-season jam could be averted if mines would store up timber during the dry sea son against use in the rainy months. Mr. Francis Haussermann told the JOURNAL that the Benguet Consolidated Mining Co. has built and put into opera tion its own factory for making nuts, bolts, mine cars and other mine equipment (other than, of course, heavy machinery or rails, etc.) for the Haussermann mines. The pro ject has been very successful, and is ex pected to save many thousands of pesos for the companies in the future. The duty on some of these items runs very high, and the saving m this alone, not to speak of freight charges and handling costs, will be very great. The report for the first half of 1937 states that living conditions at the camps have been improved by the erection of a new school house, and additional housing for both American and Filipino employees. BALATOC. This premier producer de clared a thumping dividend of 40 centavos a share, 10 centavos higher than the second quarter dividend. Also paid stockholders last month was a 50 per cent stock di vidend. The JOURNAL wrote on Balatoc and Benguet Consolidated last month. The company is of course more con cerned than Benguet Consolidated over the pending test case to determine the present status of vested rights in mining claims located before the inauguration of the Philippine Government. This is a friendly test case instigated between the Balatoc Mining Company and A Message to Miners Hercules GELAMITE CUTS MINING COSTS and will in many mining operations successfully replace regular 40% and 60% gelatins ► HERCULES POWDER-COMPANY Philippine Distributors Engineering Equipment and Supply C'ompanv Dynamite E’ectric Blasting Caps Blasting Caps Delay Electric Caps Safety Fuses Blasting Accessories Thirteenth Street—Port Area—Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CH AM HER Ol COMMERCE JOURNAL 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 the Bureau of Mines to compel adminis trative action on the granting of a patent on the Lolita claim of the Balatoc com pany, which was located in 1914, and upon which all the work required for patent had been accomplished long before the inauguration of the Commonwealth. The Balatoc company contends that the saving clause contained in Art. 12, Sec. 1 of the new Constitution limiting mineral lands of the public domain as belonging to the State, and decreeing their future disposition only to citizens of the Philippines, or 60-Der cent Filipino-controlled corporations SUB JECT TO (Italics ours) any existing right, grant, lease or concession at the time of the inauguration of the Commonwealth, grants them, as locators under the Act of Congress a vested right in their claims, and, moreover, makes them parties to a contract with the United States which the Philippines cannot impair. “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 The Solicitor-General contends in his brief that the saving clause does not apply to corporations, and, further, that Congress had no intention of restricting the power of the Philippines in its Constitution to impair vested rights and contractual obli gations. The outcome of the case is of the great est importance, not only to the Balatoc Mining Co., but also to every person or corporation applying for a Datent to a mining claim located prior to the inaugura tion of the Commonwealth, in other words almost everybody. If the Government wins the case, all rights in such claims will be confiscated on November 7, 1938, and all investments lost unless State ownership under the abovementioned provision of the Constitution is recognized and application for a lease from the State made. As many top-rank mining executives have told the JOURNAL, a lease is ob jectionable in many ways, viz: (1) It is granted for 25 years, renew able for another period of 25 years. It is not perpetual as is a patent. (Please turn to page 5.1) MIGUEL CUADERNO SUCCEEDS L. R. AGUINALDO AS PRES IDENT OF THE INTERNA TIONAL STOCK EXCHANGE This month the International Stock Exchange passed its first year of suc cessful operation, and elected Mr. Miguel Cuaderno, head of the Fin ance Mining and Brokerage Company, as its President for the next year, to succeed Mr. L. R. Aguinaldo. The new president was quoted as expressing great satisfaction over the spirit of mutual cooperation which exists between the two local Ex changes, and also between individual members of the Manila and InterMiguel Cuaderno national Stock Exchange. He as cribed this largely to the friendly spirit shown by the president and other officials of the Manila Stock Exchange with officials of the Inter national. Mr. Cuaderno stressed as the basic policy of the board of directors of the International Stock Exchange during the ensuing year equal treatment to every Exchange member, no matter how small the individual sphere of operations of the several members might be. The Exchange head is the General Manager of the Finance & Mining Investments Corporation, and also of the Allied Management Corpora tion. He was formerly a Vice-Pres ident of the Philippine National Bank, and was a member of the Constitutional Convention. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER Ol-'COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 37 DEPENDABLE NEWS FROM LONDON Carroll Binder, Director of the foreignnews service of the Chicago Daily News, writes from London under date of August 22 on the state of opinion in the City of London on the price of gold. He has been covering the news in London for the News during the summer. It is familiar ground to him, and his observations are depend able. Here is what he says: "The shrewder investment experts here in the City of London have recovered their faith in good gold mining shares. They admit that the panic over reduction in the gold price was much, much overdone; they think the price will not be materially low ered. They have been buying good-yield gold shares in South Africa and Home stake, which they favor. I have not en countered partisans of the Manila shares, but there must be such here.’’ As our readers know, since Binder wrote in August, London has stiffened the price of gold. The world seems definitely com mitted to high psices for the metal and the price crisis seems to be passed. NIELSON: Two mines under the management of Nielson and Company, Inc., were brought into production on the first of October, Nielson interests announced. Lepanto Consolidated Mining Company, a copper and gold property, began milling concentrates on the first of the month. The 300 ton plant is the largest and best equipped copper extraction plant in the Far East, and the only one in the Philip pines. Hong Kong Mines, Ltd., a lead and sil ver property located in the New Territories of Hongkong, operating under a Crown lease from the British government, is the other Nielson-managed property which was brought into production this month. This property has a 150-ton plant, and is now operating at full capacity. Two gold properties in the Philippines were recently brought in as proven mines by Nielson engineers when a 75-ton mill was ordered for Tinaga Consolidated Mines, located in the Masbate district, and a 125ton mill for the Paracale Gumaus Conso lidated Mining Company in the Paracale district. Meanwhile, Nielson engineers report sa tisfactory progress on other properties un der their management. NALESBITAN VENTURE: The report of the Trustees of the Nalesbitan Venture written by Messrs. Francisco, Ortigas, Jr., D. P. O’Brien, and H. J. Belden, Trustees to the participants included a re port as of July 31, 1937, submitted by the General Manager, Mr. Folke H. Kihlstedt. After reporting generally on the progress of the mine and construction work from the beginning of the year, and discussing the geology of the area, the report esti mates that there was, at the date of writ Culled from the News ing the report, a total of 116,630 tons of proven ore, and probable and possible ore in the main vein zone. This ore averaged 0.198 oz. per ton, it was estimated, or a total of 23,004 oz. The report makes it clear that the above figures include proven ore, and also prob able and possible ore. Proven ore is se gregated from the probable and possible in the report. The ore bodies are of great width, and full advantage will be taken of this fact, to keep mining costs low. LOOK INSIDE Most Distribution Transformer. Look The Same on Superficial Examination. BUT! Before Buying Check the Inside THE EARNSHAWS DOCKS & HONOLULU IRON WORKS 60-118 SECOND STREET PORT AREA P. O. Box 282 MANILA. P. I. BRANCH OFFICE Tel. 2-32-13 BACOLOD. OCC. NEGROS Adding 17,500 tons containing 525 oz. of gold to the ore reserves, due to an esti mated 15% dilution of mineralized wall rock, carrying 0.03 oz. of gold per ton (which dilution Mr. Kihlstedt states can not be avoided, due to conditions encoun tered’) , total ore reserves of the mine will be estimated at 134,130 tons, with a grade of 0.175 oz. per ton, with an approximate value of Pl,635,666.00. After discussing mill tests, costs of oper ation, and other matters, Engineer Kihls tedt considers that the property should have IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 a mill of a capacity of at least 300 tons daily. The present rate of development in dicates that the mine should in not too long- a time be able to support a mill of this size. From the accomplishments of other mines in the Islands, Mr. Kihlstedt esti mates that the operating costs will not ex ceed P8.00 per ton, leaving a profit of some P4.00 per ton of ore milled. Mr. Francisco Ortigas, Jr., one of the Trustees, told the JOURNAL that plans are now afoot to develop the property along the above lines. At the time of go ing to press, no announcement could be made, but the JOURNAL was informed that the Bureau of Mines report on the ore samples was being awaited before def inite action was taken. The JOURNAL expects to be able to report what action is taken in its Novem ber issue. WENDT: The annual report of Amalga nutted Min erals, Inc., for 1936-1937, in addition to being a report on the activities and pro gress of this comparatively new company, affords an interesting picture of trends in the mining of base metals in the Philippines. Before attempting formation of the com pany, several months of preliminary work were required. Contracts were entered into with potential producers of base metal ores in the Islands on the one hand, and or pur chasing interests abroad on the other. Not until satisfactory contracts had been com pleted, was it considered justifiable to pro ceed with the formation of a local company. The company was actually formed on October 24th of last year. The Board of Directors, elected on that occasion, remains unchanged, viz. H. A. Wendt, President, W. B. Sheppard, Vice-President, Thomas N. Powell, Director and legal advisor, W. F. Gumperle, Director, A. D. Brunner, Director, C. F. Lloyd, Director, and Chas. Kurz, Di rector, and Secretary-Treasurer. In addition to the administrative staff, the company employs four mining engineers, and eleven American and Australian mine superintendents and miner-prospectors. One of the first problems confronting the guiding heads of the company was that of selecting worth-while properties from the mass of mineral claims hopefully sub mitted to it. A very much abbreviated statement of the company’s activities follows: COPPER: Amalgamated Mineral has a contract with the San Remigio mine for 68,000 tons of ore. Shipments of ore made, or in process of being loaded, at the date of the report, total over 51,000 tons. 1,000 tons had been shipped from Pilar Copper Mines at the date of the report, and the Wendt company hoped to resume SEPTEMBER, 1937, GOLD PRODUCTION shipments shortly. The Mount Vac property, in Masbate, a copper property in Zambales, one in Pangasinan, and one in Ilocos Norte complete the copper picture. M. INGA A ESE: The company waits the clearing up of weather conditions to ship from a port in Ilocos Norte, and from San Miguel Bay in Camarines Sur. A contract has been closed for the pur chase of 3,000 tons monthly from a large producing manganese mine, of which 300 tons was shipped during August. A man ganese property in Palawan is being worked, and options on two other properties have been taken. IRON: Diamond drilling on a Paracale option failed to prove ore in sufficient quan(Please turn, to page 48) Entrance to the .100 level tunnel of the Nayalc Con tract until Quartz HUI. Haulinq to the mill will be from this level. DAWSON WHISKY WITH ANY MINERAL, IS THE SAFEST AND MOST SUITABLE BEVERAGE IN THE EAST SPECIAL SCOTCH WHISKY JMITH0BELU(CQLTD. SOLE. D13TR.I&UTOM Name of Mining Companies September, 1937 September, 1936 Tonnage Milled Value Tonnage Milled Value Ambassador Gold ........ 1,242.00 f’ 12,917.06 Antamok Goldfields .. . 20,651.52 408,854.61 21,973.00 P 542,311.66 Baguio Gold .................. 6,225.00 106,827.50 5,288.00 86,511.86 Balatoc Mining.............. 36,900.00 1,076,134.34 37,020.00 1,061,472.16 Benguet Cons................. 27,824.00 853,594.80 23,623.00 673,534.96 Benguet Expl................. 3,150.00 19,780.00 3,242.00 23,950.00 Big Wedge .................... 3,480.00 134,115.74 3,344.00 113,371.44 Cal Horr ....................... 6,040.00 128,705.92 6,338.00 125,511.26 Coco Grove.................... No Production 103,796.60 Demonstration .............. 7,875.93 121,502.35 6,085.00 114,253.52 East Mindanao.............. 3,522.00 81,188.00 2,420.00 35,644.00 Gold Creek ................... 1,694.48 31,389.96 Ipo Gold......................... 6,006.00 49,811.98 5,861.00 49,940.37 Itogon............................. 30,438.00 320,319.10 13,794.00 226,537.88 I. X. L. Mining............ 7,515.00 208,874.21 6,236.00 137,637.32 Masbate Cons................. 57,344.00 277,741.00 48,078.00 220,046.71 Mindanao Mother Lode-* 167,191.54 North Mindanao *........ 8,000.09 Northern Mining.......... 164.00 2,750.28 557.00 8,602.34 Royal Paracale t............ 2,924.00 25,013.83 31,927.00 Salacot........................... 6,150.00 30,917.44 5,300.00 37,487.00 San Mauricio ............... 6,389.00 136,479.97 4,277.00 222,281.13 Suyoc Cons..................... 5,474.00 124,925.18 6,481.00 99,931.28 Tambis Gold.................. 40,138.00 x . 14,379.60 39,349.00 x 9,100.00 Twin Rivers.................. 20,031.00 38,769.32 United Paracale............ 6,798.00 190,005.96 9,401.00 129,293.37 Total.................... P4,537,183.28 P4,053,141.86 August 1937 Gold Production .... P4,279,452.30 * Concentrate Production only, t IXL Argos before now Royal Paracale. x Cubic, yard handled. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL UP TO DATE COMMERCIAL REVIEWS That home and garden which you always dreamed of— SAN JUAN HEIGHTS is the best place for it SAN JUAN HEIGHTS CO., INC. 680 Ave. Rizal P. O. Box 961 Tel. 2-15-01 MANILA /N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMFER OF COMMERCE JOURNAL October, 19 37 THE AMERICAN CHAMBER OE COMMERCE JOURNAL 39 Enlarging the Boundaries of Manila • Pros and Cons on Pres. Quezon's Proposal Six weeks ago it was announced that the President and members of the municipal board in conference had agreed to the immediate expan sion of the City of Manila to include suburban municipalities. The plan, which has long been contemplated, was revived when the President announced an appropriation of Pl,000,000.00 as an annual subsidy of the national government for the City of Manila. The announcement caused a storm of protest from most of the real estate men and brokers who have financial interests in the subdivisions included in the municipalities intended to be taken into the City limits if the ex pansion is carried out. The plan in volves inclusion in the city boundary lines of Caloocan. San Francisco del Monte, Rosario Heights, San Juan, Pasay, and possibly San Pedro Ma kati. If carried out, it will add about 200,000 inhabitants to Manila’s pres ent population. The advantage to the City is ob vious: the inclusion of this additional taxable property should have the ef fect (in theory) of reducing the present tax rate on city property. Consequently, no objections have been heard from city property owners. But there are disadvantages to the plan, even to the city of Manila, al though some of them are not apparent at first blush. In the first place, the police force will have to be doubled, or even tre bled, in order properly to maintain order and give protection in the su burban areas. There are at present about 860 uniformed policemen on the force, each policeman covering an area of approximately one square mile. This means that Manila does not have enough policemen right now to take care of its present needs, let alone a force sufficient to maintain order in a greatly enlarged territory. Expansion of the city will also mean the extension of the health and sanitation service. The sewerage system will have to be extended to those few suburban areas which do not now have adequate sewerage faJ cilities. The rural system of health super vision at present exercised in the outlying towns will have to be re placed by the city system. Zonification and other problems will have to be considered. All of this means that it is highly improbable that the city tax rate wili be lowered at all when the extension is accomplished. The theoretical ar gument that the inclusion of addi tional taxable territory in the city will automatically bring about a re duction of taxes is offset by prac tical considerations of the additional expense involved in the merger. Subdivision owners and owners of suburban property, when questioned by the JOURNAL, evinced prac tically unanimous opposition to the plan. They foresaw immediately higher taxes on their property, with no corresponding benefits to them. These higher taxes, it was pointed out, would greatly hinder the growth of subdivisions around Manila, since many of the subdivisions sell lots to the lower-salaried groups of workers on extremely easy terms, thus oper ating on a very small margin of profit to themselves. It was pointed out that there is, in the Philippines, no large middle class such as there is in the United States, capable of paying from $65 per month up for homes. The socalled “luxury matket” ' is limited here, and if any great business is to be done in real estate, it must be done FULLER PAINTS NORTON KNEEDLER BUILDING FOR PERMANENCE There is a Fuller Paint for every purpose. Whether your painting job is an interior or exterior one, FULLER & Co. have a superior paint product to suit your require ments. & HARRISON CO. MANILA, I>. I. /N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 with the small-salaried groups. Those in the business must be contented with a smaller margin of profit on each sale. As the JOURNAL’S Real Estate Review, edited by Mr. P. D. Cat-man, shows, real estate is now having a comparative boom, after more than five years of starvation. Brokers .deplored any action which would tend to retard this increase of business. To suggestions that the outlying districts would be benefitted by the merger because they would be given the benefit of Manila’s police and fire protection, these real estate men re torted that this, too, was all right in theory, but probably would not work out in practise. To prove their point, they pointed an accusing finger at Manila crime statistics, and stated that they could not see how a police force which cannot protect the city now, could properly protect the sub divisions when they were brought into the citv. The same argument held good, they said, for the fire de partment. Mr. Francisco Ortigas, Jr., of the Mandaluyon Subdivision, Mr. P. D. Carman of Addition Hills and Boule vard Heights, and Mr. J. L. Myers of San Juan Heights and Rosario Heights, as well as other subdivision managers, were unanimous in their condemnation of the plan. A con spicuous exception was Mr. John Gordon, of San Francisco Del Monte Subdivision, who stated that he fa vored it 100'/, and added that he thought any increase in taxes that would accrue to the subdivision prop erty would be more than offset by better police and fire protection from the city police force, which would result in lower insurance rates. Mr. C. M. Hoskins, a clear thinker, pointed out gently that the whole thing depended on how the proposed incorporation is brought about. If Manila taxes are not lowered, and if taxes on subdivision property are in creased without any corresponding benefit to them, then, of course, every one is against the plan. Hoskins recalled previous abortive attempts to make Manila bigger. The last one, about four years ago, he said, actually passed the then House of Representatives, but died a natural death in the Senate: That bill, he said, was not objec tionable. It provided that no higher taxes should be imposed on the sub divisions than before; contained a well thought-out program of gradual improvement of streets; provided for police and fire protection in outly ing districts, as well as extension of the city health and sanitation services there; and in every way met all ob jections that could be raised to any scheme to enlarge Manila’s bounddaries. We have not been favored with a glimpse into the President’s'mind, he said, and, consequently, we don’t have any idea at this time what form the proposed incorporation bill will take. It may well be that it, too, will meet all objections. If it does not, time enough then to speak out against it. At any rate, presumably the sub divisions will get their share of the Pl,000,000.00 annual subsidy to the City of Manila, if they become a part of the City. As the map printed here shows, if the President carries out his plan, Manila will look somewhat like an cctopus, with arms reaching out to take in the important subdivisions above mentioned. It is not planned to include the unproductive and sparsely-settled area in between. One wag suggests that the area in between the arms shown on the map be given to the City of Los Angeles as a not-improper extension of its territory. Sy-Quia-Mitchell Apartments ARMSTRONG’S CORKTILE Over 50,000 sq. ft. of Cork Tile will be used in this Upto-date Apartment. Owners decided to use corktile—be cause of its durability, and resiliency. It is made in three shades. DARK, ME DIUM-LIGHT. Manila Steamship Co.’s SS Lanao Officials of the Company have selected Accotile for its artistic and enduring value. ARMSTRONG’S ACCOTILE 20,000 sq. ft. of Accotile will be used to cover all floor areas of the NEW MARSMAN BUILDING. In MANILA, thousands of square meters of ARMSTRONG ACCOTILE have been used for Theatres, Stores, Private Offices, Res idences, etc. 28 colors from which to select; plain and marbleized. ASK FOR SAMPLES AND LITERATURE We take charge of the installation AGENTS F. H. STEVENS & COMPANY, INC. Tel. 2-21-01 MANILA 227 David IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 41 News of the Subdivsions Mandaluyong Estate. ‘‘Caesar came, saw, conquered; others come, see, and remain to live!” This clarion adorned with an effigy of the Roman conqueror of Gaul mounted on white charger has ap peared in billboard and newspaper advertising for the past year. It in vites attention to the Mandaluyong Estate subdivision, one of the fast growing new suburbs of Manila. Nearly everyone has seen this estate; you can’t miss it if you golf at WackWack or visit Camp Murphy. They are parts of it, good parts. It lies southeast of Manila over the San Juan river in Rizal province, twenty minutes by motor from Plaza Goiti. Francisco Ortigas, Jr. is the energy behind Mandaluyong. Young and a believer in letting folk know of what you have to sell, he makes the public Mandaluyong conscious through the radio, newspapers and magazines as well as billboards. The subdivision has been carefully planned, and dis tricted for residences and for indus tries. It is one of the extensive properties of Ortigas, Madrigal & Co., a Spanish form of association having some of the attributes of a corpora tion and some of a partnership na ture. The company was formed in 1932. Francisco Ortigas, Jr., president; S. J. Cook, treasurer; Clyde A. De Witt, Rafael Moreno, Vicente Ma drigal, other members of the board. J tian Luna Subdivision. Up Tondo way where Manila’s population is densest lies this twenty-block subdi vision managed by A. D. Gibbs, Jr., offices in the Peoples Bank Building. The specialty is low-priced homes, P380 the down payment on a Pl,900 house and lot, P8 the lowest terms lor unimproved lots. The company’s branch office at the subdivision is being housed in a model home illus trating what a small sum can be made to produce as a home for a family of low income. An interesting footnote on the state of the times is that sales in this sub division are rising in volume, to ap proximate the levels of the first year, 1930. Sales are under the manage ment of Conrado Espiritu, who re ports the tract is 50% sold; but many sales have been of large lots, the buyers selling parcels on their own account, so there are plenty of op portunities left. San Juan Heights under manage ment of J. L. Myers gave the village of San Juan over the calle Sta. Mesa bridge its initial modern growth and is dotted with new homes of every type. That suburban homes at MaAnnouncing An Offering Of P7OO,000.00 in Shares of Common Stock of REALTY INVESTMENTS INCORPORATED (A Philippine Corporation) Authorized Capital Stock: 400 shares of Management Stock of P500.00 par value................................................................ 1’ 200,000.00 1,600 shares of Common Stock of P500.00 par value .......................... 800,000.00 Total authorized capital................................................................................................................. Pl,000,000.00 Capital subscribed ...................................................................................................................................... 250,000.00 Paid-up capital ........................................................................................................................................... 128,250.00 Purposes of Corporation: To invest in real estate and interests in real estate. Officers and Directors S. F. GACHES, President & Director MIGUEL UNSON, Vice-President & Director C. M. HOSKINS, Sec.-Treasurer & Director AMOS G. BELLIS, Director B. H. BERKENKOTTER, Director J. C. VICKERS, Director B. S. Ohnick, Director Offices: 185 David St., P. O. Box 948, Manila, P. I. This is not a prospectus. For further information interested parties are invited to consult the prospectus, which will be sent upon application. The shares have been declared by the Securities and Exchange Commissioner to be NON-SPECULATIVE in character. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 SANSHiN PLYWOOD SUPPLY Lawan Sen. Oregon Pine Douglas Fir Plywood Telephone 2-91-08 P. O. Box 1262 741 Echague Manila, P. 1. Invest In Happiness! AT MANDALUYON ESTATE “The kind of a place I always wanted, but never hoped to find.” MR. K. E. ROBINSON PRICES RANGING FROM P0.80 to P2.00 PER SQUARE METER • Cool, Elevated Lots with Spacious Surroundings • Near Wack-Wack Golf and Country Club • Water, Electri city and Telephone Facilities • Twenty Minutes from Plaza Goiti ORTIGAS, MADRIGAL Y CIA., S. EN C. FILIPINAS BUILDING—TELEPHONE 2-17-62 Tune in on our regular Tuesday Night program over station KZRM—9:00 to 9:30 nila are good investments and axio matic if buyers limit their pledges to a prudent portion of their income. The clearing of slums will add new value to good titles. Addition Hills and Boulevard Heights. Addition Hills lies beyond the San Juan river and the city boun dary line. It ad joins the Insular Hospital, WackWack, San Juan, Mandaluyong, and Welfareville. The Pasig boulevard skirts it, and it is advertised as the closest-in subdivi sion. This subdivision is the pride of P. D. Carman, who estimates that P2,000,000 worth of homes have been built there during recent years. Many of these homes are spacious and beautiful, others snug and cozy. Real estate men all acclaim the fun of converting rent money gradually into full ownership of equities ac quired by down payments and aug mented by monthly installments. It does work, too. REAL ESTATE By P. D. Carman Addition Hills September sales were somewat under last month’s total as well as below the 1936 September figure. The January to Octo ber total (P19,599,102) is, however, very much larger than for the same period of last year (1*12,018,832). 1937 1937 sta. Cruz ............. P 100,321 P 105,637 Sampaloc............... 79,779 76,370 Tondo ................... 42,884 95,551 Binondo ............... 356,641 394,307 San Nicolas ......... 361,841 143,500 Ermita ................. 23,700 21,800 Malate ................ 107,933 344,680 Paco ....................... 346,137 57,400 Sta. Ana............... 168,157 132,258 Quiapo ................. 6,750 70,912 San Miguel ......... 6,500 — Intramuros ........... 75,000 — Pandacan ............. 40,815 — Pl,716,458 Pl,442,415 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 43 Building in and about Manila MARSMAN BODEGA: Within the short space of two days, all offi cials and employees of the various Marsman organizations moved out of their old offices in the Insular Life Building, and took up temporary quarters in the newly-completed Marsman bodega this month. The bodega, which cost about PIOO.OOO.OO to build, is located in the port area, just behind the Robert Dollar Co. offices. A new road was constructed to give access to the bodega from the street. Juan M. Arrellano was the archi tect, Mariano A. de Castro the build er, and Mr. J. B. Findley, long-time Manila contractor, was the consult ing engineer for the project. The Philippine Builders Agency, at the State Building, supplied Soule steel windows and stucco manufactured by the California Stucco Company. The first-floor ceiling is of Canec acoustic pulp, handled by the Pacific Commercial Company, and Norton and Harrison furnished acoustic celotex for the second floor ceiling. F. H. Stevens & Co. furnished the floor tile, and all electrical wiring was constructed by the Mora Elec trical Company. Meanwhile, plans are going ahead for the new 4-story Marsman Build ing, which it is expected will be com menced within the next few months. Bids were called for on this job about a year ago. C. M. Hoskins, local real estate broker, handled the bids at that time, and received bids from about twelve local contractors. Juan M. Arrellano is also the archi tect for the projected new building, which Mr. Charles Hirst, of the Marsman Trading Company, told the JOURNAL will cost about P600,000.00. SYNTHETIC MARBLE: Have you ever heard of synthetic marble? Well, there is such a thing, and a factory here, the Manila Artistical Decoration Co., is developing it into quite an industry. Piero Amberti, who says he is a member of the Royal Art Academy of Italy, and hails from Turin, is the guiding genius of the factory, which is located at 530 Raon. We spent a pleasant hour browsing through the place, and came away marveling at the things this man can do with what we always thought was ordin ary cement. It seems that he takes two kinds of cement—regular portland cement and a special grade imported from abroad, mixes them together to his Compliments DECORATION COMPANY To MARSMAN ANO CO., INC. Beautify your homes, offices and dens with Synthetic Marble, newest ideas in Mausoleums of ing beauty—a specialty. garThe lastBy SOULE’ STEEL COMPANY Monumental Steel Windows and Doors Durability Beauty Economy GUARANTEED CALIFORNIA STUCCO COMPANY Exterior Stucco 530 Raon, Sta. Cruz, Manila Phone 2-67-91 Sole Representatives: PHILIPPINE BUILDERS AGENCY, INC. 301-302 State Building Tel. 2-29-43 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 44 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October. 19 37 own formula, and gets a substance that hardens to a consistency which he claims is much harder and more durable than marble itself. He can shape and mold the stuff to any shape, and will build anything for you, from a copy of an ancient Ro man bath to a bird house. He did the new fountain in Pres ident Quezon’s garden in synthetic marble, and also did many of the decorations in the President’s new chapel with the same stuff. He has many orders on hand for walls, gar den carvings, decorative figures, etc. What has all this to do with the High Commissioner’s residence? Well, frankly, we don’t know, but it may have a lot to do with it. Two other projects are already proceeding apace in this Boulevard area: the Santos apartments, and the new club-rooms of the University Club in the fifth floor of the Univer sity Apartments Building. It was from the University Apart ments that someone recently sniped at workmen riveting structural steel on the Santos Apartments. It was not long after this that riveting stopped there during the siesta hour, after eight p. m., and before eight a. m. The new club-rooms of the Uni versity Club were not sufficiently completed for us to get a very good idea of how they are going to look when we inspected the job, but we could see enough to know that they are really going to be something. Indirect ceiling lighting, polishedwood walls, circular bar, and floor plugs—you will forgive us for men tioning floor plugs, but we were very much impressed. There is a floor plug every few feet, in every room. Apparently someone has long been annoyed at the paucity of floor plugs in many old Manila buildings, and has resolved to do something about it. We were also impressed with the fold-up partitions. They can be closed, to make five separate rooms, o) they can all be opened up to make one large room for dances and other r Marsman Bodega and the present home of Marsman Interests club doings. They are very high, and we thought they would be very heavy, but they fold up as easily as you would fold your pocketbook. What the Diggers ... (Continued from page 54) quijor, according to Mr. L. J. Harvey, Pres ident of Mine Factors, Inc. The mine is working at a minimum capacity of three thousands tons per month. A shipment to Japan was loaded on the S. S. “Susana,” and other shipment of 3,000 tons is due out of the mine on October 25th. This is the first industry ever to have been established on the island of Siquijor. Trading there has heretofore been largely a matter of barter, but, with Mine Fac tors’ pay days every two weeks, money is appearing as a medium of exchange for the first time at least since the American occupation. THE LAND will be here LONG AFTER Price Pegging . . . (Continued from page J4) plenish her stabilization fund, but Secretary Morganthau says his fund is still big enough to serve its purpose. So, we see no reason why the experiment must cer tainly fail here. And, meanwhile, it has given us much-needed relief. the gold is out of the ground INVESTIGATE DEL MONTE SUBDIVISION SAN FRANCISCO DEL MONTE, INC. Leyba Building 227 David Tel. 2-16-36 Branch Office Del Monte & Porvenir (when operator answers ask for local 4) Nicanor M. Bautista ARCHITECT 428 Rizal Ave. Tel. 2-94-13 Manila ENAMELS—PAINTS—OILS—VARNISHES For Quality Ask ■ RADIO” & SILLERS TELEPHONES CABLE ADDRESS 2-21-46 & 2-21-47 “SOSUAN” P. 0. Box 2527 MANILA SIMEON O. SUAN DEALER OF Hardware, Paints, Plumbing U Electrical Supplies 324-326 ECHAGUE MANILA /A’ RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAM HER OE COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 45 LUMBER REVIEW By Florencio Tamesis Director, Bureau of Forestry THE RICE INDUSTRY By Dr. V. Buencamino Manager, National Rice & Corn Corporation TOBACCO REVIEW By P. A. Meyer September, 1937 Lumber and tim ber exports in July amounted to 24,758,632 board feet, com pared with 29,691,872 board in June, or a decrease of 16.6%. The decline has been very large ly due to decreased shipments to Japan and China as a re sult of the Sino? Japanese conflicts Exports to Japan during the month under review amounted to 17,317,856 board feet, compared with 22,997,336 board feet exported during the previous month. Likewise, shipments to China showed a decrease of 640,664 board feet from those of the previous month. If the present Sino-Japanese conflict continues, it is believed that the timber licensees en gaged in exporting logs to Japan would suffer considerable financial draw-back in view of the fact that they have increased their logging investments with the expec tation to increase their log exports. On the other hand, the situation would be fa vorable to the big sawmill operators as it would give them opportunity to regain in the foreign markets whatever ground they have lost due to competition by the Japanese. As usual, the United States remained as the leading foreign market for Philip pine sawed lumber. Exports to this coun try during the month under review showed an increase of 1,166,848 board feet over the previous month. Several consignments of Dao logs to be manufactured into fur niture and similar articles were shipped to the United States during the month. Exports to Great Britain during the month amounted to 1,339,840 board feet, compared with 564,344 board feet in the previous month, or an increase of 1379;. Consumption in Australia showed a con siderable decrease of 93% from that of the previous month, while exports to Brit ish Africa showed an increase of 357,856 board feet or 98%. The upward trend of consumption of Philippine sawed lumber in British Africa during the past few months is indicative of good prospect of this prod uct in that country. The domestic market for lumber and timber remained active during the month in spite of the continuous rain. Lumber production exceeds lumber deliveries by 5.3% and showed an increase of 9.8% over the previous month. Survey of Industrial... (Continued from page 25) suit, tungsten prices have soared and now run above $30 per unit as com pared to the 1936 price of $14.83. Tungsten is used in the produc tion of electric light filaments, high speed tool steel and other alloys, electric contact points, and certain chemicals. Last year China pro duced two-thirds of the world’s pro duction. Firmness do minated the mar ket during the first half of Sep tember. Demand from the con suming areas was well sustained in the face of small er arrivals from the producing centers. In the second fortnight heavier receipts of 10c* to 15C for both varieties. The new harvest in the Bicol region, some parts in Pangasinan and Tarlac, Capiz, Lanao, Antique, and Zam boanga produced further depressing effect on the market. The National Rice and Corn Corporation started selling its rice at P5.75 f.o.b., Ma nila, only to places where prices are con sidered prohibitive. In the sales and dis tribution of its stock, it has opened selling stations in Samar, Leyte, Masbate and Da vao. Current quotations for Elon-elon and other luxury grades of rice ranged from P6.10 to P6.40 per sack of 57 kilos, net, with palay of that class quoted from P2.70 to P2.85 per sack of 44 kilos, net. Macan, Manila quality, ruled between P5.65 to P5.90 and with palay of same class at P2.70 to P2.85. Despite the gradual decline of the rice market, trading in palay has not been ma terially disturbed. Reports from the prov inces indicated that price of palay has not changed until about the closing day of the month. In view of the unfavorable mar ket conditions, it is expected that those who have been holding their stocks in anticipa tion of further advance in prices are now disposing of them either in the form of pa lay or rice, thereby depressing the market. Arrivals in Manila during the month by railroad and water from the provinces amounted to 131,048 sacks or a decrease of 13,096 sacks from the preceding month. Monthlv statistics of arrivals in Manila by railroad from the provinces may be noted as follows: tember, 1936 figures, lows: Australia ................... Belgium ....................... Hongkong ................. Indochina ................... Italy ........................... North Africa ............. Straits Settlement ... United States ........... Rawleaf: Pur chase of the 1937 crop continued throughout the month in Caga yan and Isabela. Nearly 90% of September ex ports was shipped to Italy, destined for Eu ropean monopo lies. Shipments to the United States were less than last month but more than double of the SepDetails are as folRawleaf, Stripped Tobacco and Scraps Kilos 1,210 6,687 4,600 51,932 1,888,590 120 944 187,287 Sept., 1937 ......... 2,141,370 Aug., 1937 ........ 228,321 Sept., 1936 ......... 88,006 Jan.-Sept., 1937 ......... 11,323,118 Jan.-Sept., 1936 ......... 10,104,405 CIGAR shipments to the United States show the following comparative figures: Cifiars Sept., 1937 ......... 20,563,441 Aug., 1937 ......... 17,430,560 Sept. 1936 ......... 16,234,920 Jan.-Sept., 1937 ......... 130,687,173 Jan.-Sept., 1936 ......... 126,620,142 Month January ............................. February ......................... March .............................. April ................................ May .................................. June .................................. July .................................. August ............................. September ......................... Total ................. Quantity 183,848 Sacks 174,406 ” 202,598 ” 181,318 ” 144,708 ” 160,797 ” 194,663 ” 144,144 ” 131,048 ” 1,517,530 Sacks /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 46 THE AMERICAN CHAMBER OE COMMERCE JOURNAL October. 1937 Government Regulation of Radio in the Philippines The rapid growth of radio from the day when Marconi sent a tiny signal across the Atlantic to the pres ent time has created many problems in regulation. The fact that radio signals do not recognize national boundary lines but are limited only by the strength of transmitters, has added to the difficulty of regulation. ! Presents new features you can see... hear... touch... and understand For example, the Federal Com munications Commission, which is charged with the duty of regulating radio broadcasting in the United States, outlawed the station of “Goat Gland Brinkley,” a quack doctor who had been advertising a preparation which he claimed was manufactured from goat glands, and which was guaranteed to cure anything from hay fever to appendicitis. The good doctor had been selling tons of the stuff, largely by advertising it over his station, which was located in Texas. When the Communications Com mission revoked the license for his station, Brinkley simply moved it across the border into Mexico, and continued his fraudulent broadcast ing as before. His programs, tra velling over the ether waves, ignored the border police altogether, and it was only after protracted negotiation with the Mexican government that its cooperation was secured and Goat Gland Brinkley’s station forever silenced. The Communications Commission is half expecting Brinkley to move his station to Canada, or Cuba next, and continue on his merry way until again suppressed. Governments have frequently com plained of “outlaw” stations belong ing to supposedly friendly powers, which will usurp the wave-length of established stations maintaining an international broadcasting program, and through “interference” make their signals unintelligible. Veiled hints that Mussolini was resorting to this were made in England dur ing the time of the Italian conquest of Ethiopia. Nevertheless, great progress has been made in regulation of radio, largely because of the fact that the nations of the world recognize that some form of regulation is neces sary in order that the radio industry itself may grow, freed of interna tional cut-throat rivalry. The first effort to regulate international radio telegraph communications was made when a conference of various nations, including the United States, was held in Berlin in 1903. Aside, however, from discussing drafts of proposed conventions, nothing was done here. THE WORLD’S MOST COPIED RADIO ALWAYS A YEAR AHEAD SEE Superior performance of the Zenith Radio is more than accidental. Acoustic adapter... Improved over tone amplifier. . . voice — music — high fidelity control. . Metaglas tubes ... Split — Second Relocater. Lightning Station Find er. . . Target Tuning... are the reasons why Zenith is the world’s “Popular Radio No. 1.” THE NEW 1938 AMERICAN-BOSCH CENTROMATIC RADIOS ‘ ENGINEERED FOR THE TROPICS” See and hear it at Beck’s NOW ON DISPLAY II., I&IECIK. INC. Sole Distributors 89-91 Escolta, Manila j Manila — Cebu ■- Basilio Dart — I’arac.li C. lilies & Co. Bosch Sales & Service 550 San Luis Manila Baguio Branch Pedro Armefia & Co. 29-A Session Road Baguio /X RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMHER OE COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 47 Another conference was held in 1906, which resulted in the First Interna tional Wireless Telegraph Conven tion. This treaty was not ratified by the United States until 1912, and was followed by others, notably the London Convention of 1912, the Washington Convention of 1927, and the Madrid Convention of 1932. Due to the peculiar status which the Philippines has always occupied with reference to the United States, namely, that of an unincorporated possession, the above-mentioned treaties to which the United States was a signatory power did not apply here. The Philippines have always been thought of as a part of the United States in “an international sense, but not in a domestic sense.” For some time, therefore, there was no regulation of any kind of ra dio in the Philippines. It was not until 1923 when the first attempt to regulate radio communication here was made. At that time, there were a few amateur stations, and some ship and private land stations. Local broadcasting was just emerging from the experimental stage. A Radio Communication Board was formed in that year, composed of a member of the staff of the Governor-General, as Chairman, and one representative each from the U. S. Army, the U. S. Navy, and the Bureau of Posts. This Board was to act as an advisory body to the Governor-General on all radio matters. The first radio law enacted in the Philippines to regulate radio com munications was Act No. 3275, which took effect in November, 1926. This empowered the Secretary of Com merce and Communications to reg ulate radio communications by aJl privately-owned land and ship sta tions within the Philippines, but it did not compel ocean-going and in ter-island vessels of Philippine reg istry to maintain radio stations on board. Not until several disasters had befallen Philippine vessels, not ably the VICENTICA, and the QUANTICO, and lives and property lost, was the necessity for a law to safeguard vessels at sea through ra dio communication fully realized. Act No. 3396 was passed, making it obligatory for vessels above a certain tonnage to be equipped with radio installation. The general provisions of this law were enforced by the Di rector of Posts, but those affecting radio installation on board vessels are enforced by the Collector of Customs. Establishment of more radio sta tions in the Philippines, and the rapid strides made in the progress of radio science, notably the advent of short wave broadcasting, rendered the pro visions of Act No. 3275 out of date. It was also necessary to consolidate enforcement of all radio regulations in one department of the government. KZRM’x 400-foot vertical Radiator antenna Act No. 2846, better known as the Radio Control Law, was therefore enacted in 1931, repealing Act No. 3275, and transferring the duties of the Director of Posts under Act No. 3396 to the Secretary of Public Works and Communications. The new law was patterned after the U. S. radio law. By its terms, the Secretary of Commerce and Com munications may delegate the en forcement of any regulations pro mulgated by him to an office or bureau under his department, or create a new agency for this purpose. At first, these regulations were en forced by a section of the Telegraph Division of the Bureau of Posts. Later, however, it was thought nec essary to create a separate division, not only to enforce radio laws and regulations, but also to carry out the administrative and technical features of the radio broadcasting law. Thus, the present Radio Division came into existence on March 25, 1933, and has continued this work to date, ex cept for the collection of radio regis tration fees under the broadcasting law, which was transferred to the Bureau of Internal Revenue on Sep tember 1, 1936. The radio control law requires that, before a radio station is estab lished, a construction permit shall first be secured. The Radio Division inquires into whether or not there will be interference with existing stations, and whether there will be a violation of existing law in the oper ation of the new station, etc., before granting this permit. After the sta tion is established, the law requires that it shall operate only under a license, which is revocable for cause, and renewable at stated periods. Heavy penalties are provided for violation of the act, or regulations issued thereunder. Next month, the JOURNAL will review in detail the rules and regu lations which have been promulgated under the Radio Control Law, and discuss how they have worked in ac tual practise. The Radio section will also include a discussion- of Govern ment subsidy of radio here, its feasi bility, and the chances for it develop ing into a weapon for government censorship. KRZM's mixing room KZRM Short-Wave Xmeter Overcomes Broadcasting Difficulties in the Philippines Last July station KZRM, Radio Manila, inaugurated its new 1000watt short-wave transmitter. We reproduce a picture of its new broad casting tower elsewhere in this issue. The operation of the new short-wave is simple: all programs over the reg ular wave-length are simultaneously broadcast over the short-wave. Contrary to popular opinion, KZRM officials state that the pri mary purpose of this new short-wave service was not to give service to countries outside of the Philippines, but to improve radio reception in the Islands. It seems that atmospheric conditions here are not conducive to good radio reception all over the is lands under ordinary conditions, but that it has been the- experience of radio listeners that their reception, even in islands close to Manila, was 48 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 often very poor, and sometimes non existent. For this reason it was de cided to install the short-wave trans mitter. On the night of the opening of this new transmitter, listeners from Iloilo, Samar, Misamis Oriental, and Min danao responded to test broadcasts made on a frequency of 31.55 meters, and reported perfect reception. How ever, other listeners from such far distant points as Shanghai, Hong kong, Singapore and Sarawak, Bor neo, have also reported excellent reception. The Palmeration North, an evening paper published in New Zealand, makes the programs of KZRM’s control panel KZRM a daily feature for its listen ers. Thus it is a fact that the Phil ippine broadcasts over station KZRM cover the entire Orient, when the new short wave was originally in stalled to meet the needs of local listeners only. Two different frequencies are used on the short-wave broadcasts from time to time, in order to insure the best possible results: 31.35 meters, and 25.38 meters. With the new 420-foot vertical radiator antenna in creasing the field strength of KZRM’s long-wave broadcasts more than two and one-half times their present strength, and with the short-wave transmitter apparently covering the entire Orient, to judge from fan let ters received by the station, the Philippines will lead countries of the Far East in radio broadcasting. MANILA HEMP By H. P. STRICKLER Manila. Cordage Company During the entire month of September all foreign markets were quiet with little or no demand. However, there have been several shipments to Japan indicating that the Japanese government is permitting the importation of cordage grade. It is under stood that shipments of the very lowest grades and the strings and tow are still on the prohibited list of importations into Japan. As a result of the absence of demand from foreign markets all local markets have eased off slightly, but the general attitude of most dealers and producers has been rather firm, these refusing to accept the parity of the prices offered or indicated in London and in New York. They are strengthened in this attitude by the fact that production is gradually decreasing, and is now substantially below normal. Reports from the provinces which are being confirmed by actual observation in dicate that the new production is tending towards the higher grades. In districts where formerly only lower grades were produced, producers have now switched to the nroduction of medium and higher grades. If this practice continues, it is bound to result in a further decrease in production, and also ultimately in a considerable de crease in the supply of the lower grades. PRICES OF LOOSE FIBER IN MANILA Per Picul August 31st CD ........... P28.00 E ............. 26.00 F............... 24.00 I ............... 18.50 S2 ............ 17.50 JI ............. 16.00 G .............. 15.00 J2 ............. 12.50 K ............. 10.25 LI ............. 10.00 L2............. 9.75 September 30th CD ............ P27.00 E............... 25.00 F............... 22.00 I ............... 16.50 S2 ............. 16.00 JI ............. 15.50 G ............. 15.00 J2 ............. 13.25 K ............. 10.00 LI ............. 9.50 L2 ............. 9.00 PRICES OF LOOSE FIBER IN DAVAO Per Picul August 31st CD ............ P26.00 E ............. 24.00 F............... 22.00 I ............... 17.00 S2 ............. 14.50 JI ............. 14.50 G............... 13.50 J2 ............. 13.50 K ............. 12.25 September 30th CD ..............P25.00 E ............. 22.50 F............... 20.50 I ............... 17.00 S2 ............. 15.75 JI ............. 15.75 G ............. 14.50 J2 ............. 14.25 K .............. 13.25 Culled from ... (Continued from page 38) tities. The company has transferred its labor’s in this field to another property, about which they hope to have an important announcement soon. LEAD: Galena properties of the com pany are being explored as showing favor able indications of a commercial quantity cf lead. To date, results have been dis appointing. CHROMITE: An Amalgamated Min erals engineer has been assigned to super intend the efforts of a Zambales company in grading their ore to the requisite com mercial standard. A Mindanao group is having their claims surveyed with a view to obtaining a lease from the government. SULPHUR: Exploration work is being "arried on in Camarines Sur and South Mindanao. GENERAL: The company earned pro fits in the last quarter of the period re ported on, and the Directors, while not declaring a dividend at this time, hope to grant an interim dividend, should profits continue. Mineral Enterprises, Inc. abandoned work on the Mindanao Trust property, due to un favorable showings, and has concentrated its efforts on the properties of the Mala guit Mining Association, and Maligaya, In corporated, with which it has operating contracts. Both of these properties are of low re lief, at sea level, with veins running into the sea. For this reason, it was deemed expedient to sink shafts, with the first level not less than 200 feet below sea level, to avoid possible inundation. This required quite large mine plants. The Malaguit plant is completely in stalled, while a power plant and compres sor are being installed at Maligaya. The report to stockholders for the year 19361937 grows enthusiastic about the possibi lities of the Malaguit property, while it warns that, in spite of headway made, the Maligaya property is still to be considered a prospect. YANGCO AND COMPANY: This promotion firm, with offices in the Wilson building, is now handling the pro motion of the Pan-Philippines Corporationand the San Luis Investment Company, ac cording to Mr. H. P. Hoskyn, Vice-President and manager of the company. The Pan-Philippines promotion has pro ceeded very satisfactorily, according to Mr. Hoskyn, and only a limited number of the company’s shares are now available for sale to the public. The shares are divided into pieferred and common, the preferred shares taking first call as to dividends to the ex tent of 10% of any declared dividend, or 60% of net profits, whichever is the larger. The San Luis Investment Co. is based on the principles under which the English fixed trusts operate, according to Mr. Hos kyn. This is a device whereby an investor can obtain an interest in many enter prises, thus being able to diversify his nor mal risk. Shares of this company are likewise di vided into common and preferred shares. Any dividends which may be declared will be given first, 6% to the preferred shares, then 6% to the common shares. The di vidend surplus, if any, will then be divided among both the preferred and the common stock. (Please turn to page 52) THE COMMONWEALTH OF THE PHILIPPINE ISLANDS DEPARTMENT OF COMMERCE AND COMMUNICATIONS BUREAU OF POSTS MANILA SWORN STATEMENT (Required by Act 2580) The undersigned Walter Robb, Editor. Business Manager. The American Chamber of Commerce Journal, published monthly in Manila. P. I., after having been duly sworn in accordance with law hereby submits the fol lowing statement of ownership, management, circulation, etc., as required by Act 2580 and amended by Commonwealth Act No. 201. Editor, Walter Robb, P. O. Box 1638, MiPublisher: The American Chamber of Com P. O. Box merce of the Philippine Islands. 1638. Manager: Walter Robb, P. O. Box 1638. Manila. Printer : ’ McCullough Printing Co. Owners or stockholders: The American Chamber of Commerce of the Philippines. Bondholders, mortgages, or other security holders of one per cent or more of total value: Total circulation—1,513. Manila, P. I., April 1st, 1037. Walter Robb. Subscribed and sworn to before me this 30th of September, 1937, the declarant having ex hibited his cedula F-52379 issued at Manila, P. I., on February 26. 1937. Pedro J. Bautista Notary Public Until Dec. 31. 1938 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 19 37 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 49 'SHIPPING REVIEW By H. M. CAVENDER General Agent, The Robert Dollar Co. For August the outward cargo total led 294,749 revenue tons exceeding July s 1 i g h t ly. Heavy movements in logs and molasses offset a slump in hemp and a decided slump in ores. The movement o f sugar, centrifugal 102,653 and refined 2,580, exceeded July figures, by 33,414 tons. Seven non-conference vessels participated in the August trade lifting a total of 56,211 tons. The shipments of desiccated coconut, 7,605 tons, shows that this commodity is in heavy demand. With no tanker movement in coconut oil, the berth lines took care of all offerings and carried 14,639 tons to the States. The copra movement dropped to 26,865 tons, to Pacific Coast 14,305 tons, Atlantic Coast 10,820 and to Europe 1,740 tons. This is the first worthwhile Euro pean business ■ for several months. Cake and Meal shipments dropped slightly, to the United States 4,440 tons, China 50 tons and Europe 3,450 tons, total 7,940. We reported a slow movement in hemp for July and must again report decreased business as August shipments were only 99,963 bales. The United States took 19,49/ bales, about 4,400 bales more than in July. The Japanese trade shows a slump of 20,000 To Tons. With Miac. Of Which Tons Were carried in American bottoms with Sailings China and Japan ........................................ ............ 97,771 51 652 6 Pacific Coast Local Delivery ................... ............ 28,984 17 17,584 7 Pacific Coast Overland............................... ............ 1,354 10 702 5 Pacific Coast Intercoastal ....................... ............ 2,307 7 1,822 3 Atlantic and Gulf Coast ........................... ............ 146,756 35 30,194 9 European Ports .......................................... ........... 14,498 16 56 2 All other ports .......................................... ............ 2,179 28 419 6 A Giund Total of 294,749 tons with a total of 103 sailings (average 2,861 tons per vessel) of which 51,429 tons were carried in American bottoms with 13 sailings (aver age 3,956 tons per vessel). The saving factor in the month’s busi ness was the heavy movement in logs and lumber, 1936 million board feet. Japan trade was exceptionally heavy and took 123s million feet. The United States took three million, Europe 132 million feet, China, Australia and South Africa absorb ed the remainder. Ores show a slump of more than 23,000 tons, 18,000 of which arc shown in the iron ore shipments to Japan. Tonnage for this trade could not be had in sufficient value The shipments in detail are: To Japan 46,130 tons of iron and 300 tons of man ganese. To the Atlantic Coast 6,500 tons of chromite and to Tacoma 523 tons of concentrates for treatment. A total of 53,453 tons. The molasses shippers forwarded one lot to Japan and a full tanker over 13,000 bales and only took 25,954 bales. Europe upped their orders to 48,735. The remain der widely scattered was on a normal basis. From statistics compiled by the Asso ciated Steamship Lines, during the month of August there were exported from the Philippines the following: tons was loaded at Iloilo and despatched to Hongkong for orders. The pineapple cannery forwarded 2,327 tons which we understand cleans up the season’s pack. Shipments of junk and kapok seeds to Ja pan register a slump. Shipments of to bacco and rope were also off. Gains are noted in cigars, embroideries, rattan fur niture, gums, kapok, cutch, margarine and vegetable lard. Europe took their custo mary 100 tons of coconut shell charcoal. Increases in rates ranging from 20% to 50% have been made within the past year and it begins to look as though further increases will be put into effect. The sit uations on the China Coast and in the Mediterranean are giving shipowners some thing to worry about. (Please turn to page 51) PRESIDENT LINERS SAILINGS TO SEATTLE & VICTORIA “The Express Route” via Hongkong, Kobe, Yokohama SS PRES. GRANT......................... Nov. 3 SS PRES. JEFFERSON ................. Dec. 1 SS PRES. JACKSON .................... Nov. 17 SS PRES. McKINLEY................... Dec. 15 TO SAN FRANCISCO, NEW YORK & BOSTON “The Sunshine Route” via Hongkong, Japan, Honolulu, Los Angeles, Panama Canal & Havana SS PRES. COOLIDGE.................. Nov. 10 SS PRES. HOOVER....................... Dec. 8 SS PRES. TAFT Nov. 27 SS PRES. LINCOLN Dec. 25 * To Los Angeles only. TO NEW YORK & BOSTON via Straits, India, Egypt and Mediterranean ports SS PRES. ADAMS......................... Nov. 10 SS PRES. POLK............... Dec. 8 SS PRES. HARRISON.................. Nov. 24 SS PRES. PIERCE.......................... Dec. 22 For further particulars, apply to AMERICAN MAIL LINE DOLLAR STEAMSHIP LINES Port Area MANILA Tel. 2-24-41 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 50 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 22.1 Dasmarinas Manila For Rates Line VESSEL See Table 10 NYK HIYE MARU 6 AML PRES. GRANT 11 FL SLEMMSTAD 9 NYK TAIYO MARU 3 CPR E. RUSSIA TRANSPACIFIC Courtesy—EVERETT TRAVEL SERVICE Overseas Dept. Tel. 4-98-91 Interisland Dept. Tel. 4-98-9-1 Manila Hongkong Leave Leave Shanghai Nagasaki , Nagoya Kobe Leave Leave Yokohama Honolulu Victoria Arrive Seattle Arrive Arrive Arrive Vancouver San Fran. L. Angeles Con Stmr. Nov. 6 Nov. 9 Nov. 21 Nov. 20 Nov. 3 Nov. 6 Nov. 9 Nov. 11 Nov. 13 Nov. 24 Nov. 24 Nov. 9 Dec. 3 Con Stmr. Nov. 15 Dec. 2 Nov. 8 Nov. 12 Nov. 14 Nov. 16 Nov. 18 Nov. 20 Nov. 29 Nov. 29 14 BF TYNDAREUS 4 DSSL PRES. COOLIDGE 10 NYK HEIAN MARU 16 SL BENGKALIS 12 BL TAI YIN Con Stmr. ::ov. 19 Nov. 10 Nov. 13 Nov. 16 Nov. 12 Nov. 15 Nov. 18 Nov. 23 Nov. 20 Dec. 2 Nov. 18 Nov. 19 Nov. 26 Nov. 29 Dec. 2 Nov. 28 Nov. 27 Nov. 30 Dec. 18 Dec. 16 Dec. 1 Dec. 5 Dec. 14 Dec. 13 Dec. 10 Dec. 5 Dec. 15 6 AML PRES. JACKSON 8 NYK TATSUTA 11 FL FERNSLEU 1 CPR E. JAPAN 13 KL CORNVILLE Nov. 17 Nov. 20 Nov. 23 Nov. 20 Nov. 22 Nov. 26 Nov. 28 Nov. 22 Nov. 26 Nov. 25 Nov. 27 Dec. 8 Dec. 8 Nov. 30 Dec. 15 Dec. 12 Dec. 1 Dec. 3 Dec. 9 Dec. 14 Dec. 14 Dec. 18 16 SL SILVERMAPLE 15 ML GRETEMAERSK 16 SL SALAWATI 5 DSSL PRES. TAFT 6 AML PRES. JEFFERSON Nov. 23 Nov. 24 Nov. 25 Nov. 27 Dec. 1 Nov. 27 Dec. 1 Dec. 4 Dec. 3 Dec. 4 Dec. 7 Dec. 9 Dec. 7 Dec. 11 Dec. 6 Dec. 7 Dec. 15 Dec. 9 Dec. 11 Dec. 22 Dec. 22 Dec. 18 Dec. 14 Dec. 25 Dec. 22 Dec. 17 Dec. 21 Dec. 26 10 NYK HIKAWA MARU Dec. 4 Dec. 17 Dec. 29 Dec. 28 3 CPR EMP. ASIA 5 DSSL PRES. HOOVER 16 SL HOESH MERCHANT 12 BL TAI YANG Dec. 6 Dec. 10 Dec. 8 Dec. 11 Dec. 13 Dec. 12 Dec. 14 Dec. 14 Dec. 6 Dec. 18 Dec. 6 Dec. 17 Dec. 24 Dec. 27 Dec. 27 Dec. Jan. Dec. 15 Dec. IS Dec. 23 Dec. 28 Dec. 7 Dec. 30 29 Jan. 2 10 Jan. 5 Jan. 14 6 AML PRES. MCKINLEY 10 NYK HIYE MARU 2 CPR EMP. CANADA 13 KL PLEASANTVILLE 15 ML NIELMAERSK Dec. 15 Dec. 30 Dec. 22 Dec. 24 Dec. 18 Dec. 24 Dec. 26 Dec. 27 Dec. 21 Dec. 26 Jan. 2 Dec. 23 Dec. 25 Dec. 29 Dec. 25 Jan. 5 Jan. Dec. 28 Jan. Dec. 31 Jan. 7 Jan. 12 9 Jan. 8 Jan. 12 Jan. 8 Jan. 6 Jan. 10 Jan. 17 Jan. 25 16 SL SILVERBELLE 5 DSS PRES. LINCOLN 6 AML PRES. GRANT Dec. 26 Dec. 25 Dec. 29 Jan. 1 Dec. 29 Jan. 1 Jan. 4 Jan. 3 Jan. 4 Jan. 12 Jan. 6 Jan. 8 Jan. 19 Jan. 21 Jan. 17 Jan. 18 Jan. 23 Jan. 19 5 MINIMUM RATES FROM MANILA 1 CPR (EMP. JAPAN) First P90 P190 P250 P275 $365 $450 $450 $450 Tourist 58 105 155 170 220 270 270 270 First P90 P190 P250 P275 360 440 440 440 2 CPR (EMP. CANADA) Tourist 58 105 155 170 215 260 260 260 First P90 P190 P250 P275 326 400 400 400 3 CPR (EMP. ASIA-RUSSIA) Tourist 52 95 140 155 190 230 230 230 4 DSSL (P. HOOVER-COLIDGE) First P90 P190 P250 P275 365 $450 $460 Tourist 58 105 155 170 220 270 275 First P90 P190 P250 P275 326 420 430 5 DSSL (535-TAFIECT) Tourist 52 95 140 155 190 230 235 First P90 P190 P250 P275 $400 6 AML (PRES. JACKSON) Tourist 52 95 140 155 230 First $360 8 NYK (ASAMA-TATSUTA) 215 Cabin $285 9 NYK (TAIYO) Tourist 155 10 NYK SCALE SERVICE First $345 180 11 FL First $150 12 BL First $20 $35 $55 $55 $195 13 KL First $140 14 BF (Rate from Hongkong) First £35.0.0 15 ML First $25 $45 $70 $75 $220 16 SL Firts $20 $60 $165 $160 (Please turn to page 55) October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 51 COPRA AND ITS PRODUCTS By KENNETH B. DAY and LEO SCHNURMACHER Gulf Porta .................................... 4,092 Europe .......................................... 4,231 China and Japan ......................... 1 Other Countries ........................... 806. Rather unexpectedly, the copra and oil markets took a turn for the better in Sep tember. Prices have been going down so steadily for several months that some check was inevitable. It had been felt, how ever, that with the copra season in full swing, this check should not appear until later in the year. Consequently, when the markets began to harden up in the middle of September, buyers were taken some what by surprise, which possibly accen tuated the situation more than a long range prediction would seem to warrant. Copra—Copra arrivals, although some what below August as should be expected, were still heavy, totalling something over 550,000 bags in Manila and approximately 440,000 bags in Cebu. These figures were approximately 25% above the eleven years’ average in the two ports, although only 15% higher than September 1936 in Cebu. The planting season had something to do with the Cebu situation, but at the end of the month prospects for fair seasonal arrivals, both in Manila and Cebu, for the balance of the year were very good. The month opened with desultory trad ing at P8.25 for resecada in Manila and equivalent prices in Cebu, with the mar ket tendency generally weak. About the middle of the month, the market firmed, and after some trading at P8.50 sellers ad vanced their prices to P9.00, at which figure a fair amount of business was done prior to the end of the month. At the very end of the month, sellers were holding for high er prices and buyers were indicating the possibility of paying P9.25. There was not as much selling as one would have expected, because sellers who were fairly well oversold at the beginning of the month became nervous and felt they should cover up their outstandings before committing themselves further. This they did by raising prices in the provinces and by buying up small odd lots in the open market. Thus, the provincial markets throughout the month, particularly in the Manila district, were substantially above base equivalents, and in general small lots were being absorbed by dealers with con tracts at higher prices than mills or ex porters could afford to pay. By the end of the month most dealers had covered up their positions and had gone slightly long in anticipation of higher prices in October. The export trade was fairly good with Coast prices advancing from 2.50 cents to 2.65 cents for October/November shipments of copra, and with European quotations Leo Sciinurmaciier Stocks on hand: End of Month Tons 33,349 31,027 market, of £13/2/6 to a high jumping from a low ___ . of £14/10/0, and possibly a little more. The European market, in particular, was in teresting in that the advance was more rapid than elsewhere in the world. It was at first thought that this advance was purely speculative, but it developed at the end of the month that a real consumptive demand had sprung up in Europe where present prices were, considered reasonable. The only reason a large volume of busi ness was not done with Europe was that freight space was very hard to obtain and closely held, thus making it impossible for sellers to take advantage of many of the attractive offers received and at the same time strengthening bjiyej-s\ opinions in Europe through scarcity of aecCi^'nS^SThe question of space shortage, therefore, plus the desire of dealers to cover up out standing contracts, gave an involuntary and probably an unXvarranted appearance of strength to the markets. Shipments for the month were compara tively light, due very largely to difficulties in berthing steamers in the Philippines be cause of the confused conditions in North ern China. Statistics for the month follow: Arrivals: Manila ...................................... (includes 725 tons shipped from Cebu) Cebu .......................................... Beginning of Month Tons Manila ......................... 31,108 Cebu ........................... 27,792 Coconut Oil—The coconut oil _____ , while reasonably quiet, showed more buy ing interest the second half of September than it had for the previous month. At the beginning of September oil could be sold in New York at 4 cents c.i.f., and on the Pacific Coast at 3% cents f.o.b. By the middle of the month the price advanced to 4*4 cents c. i. f. New York for Decem ber/January shipments, and a certain amount of spot oil could be sold on the Coast at 434 cents f.o.b. There was one occasion when a little oil might have been sold in New York at 432 cents f.o.b. By the end of the month, these prices were unchanged with buyers actively willing to take on additional December/January busi ness at 434 cents in New York and at the same price on the Pacific Coast, but with sellers holding for % cent more for both destinations. Buying on the whole was fairly light, with buyers interested chiefly in small parcels ranging up to 500 tons. Shipments totalled about half those for August, registering something over 11,000 tons only. Statistics for the month follow: Metric Shipments— Pacific Coast .. -_ Atlantic Coast Gulf Ports’"-?-^ Other Countries Tons ............................. 1,366 ............................. 8,412 _ ......................... 1,595 .. 79 Beginning 11,452 End of of Month Month Tons Tons Stocks on hand in Manila and Cebu ......... ........... 8,563 12,120 Shipments: Pacific Coast Sacks 552,202 439,195 Metric Tons 9,938 Copra Cake and Meal—The European cake market was much more attractive to sellers than the American meal market, which sagged badly due to the great amount of competing feedstuffs available, or likely to be available, a brisk trade was done in copra cake at prices ranging up to P44.00 per 1,000 kilos f.o.b. with a c.i.f. equivalent of approximately $34.00 per long ton. Unfor tunately, not much space was available, but Shipping... (Continued from page 49) The following figures show the number of passengers departing from the Philip pines for China, Japan and the Pacific Coast for the month of August, 1937: Fir nt Hongkong ........ 61 Shanghai......... 12 Japan......... 31 Honolulu .......... 20 Pacific Coast .... 75 Europe via America .... 8 Total for August 1937 ............. 207 Total for July 1937 ............. 189 Intermediate Third 117 162 116 15 11 87 13 25 69 44 0 0 — — 326 333 225 268 SAIL THE SULU SEAS/ F9000 12-DAY CRUISE NEW M. S. LEGAZPI S. S. KIN AU M. S. ELCANO (BUILDING) P90~ SAILING EVERY THURSDAY TO CEBU — DUMAGUETE — ZAMBOANGA — COTABATO — JOLO EVERETT STEAMSHIP CORP. 223 DASMARINAS — _ — _ MANILA IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 52 THE AMERICAN CHAMBER OE COMMERCE JOURNAL October, 1937 by the end of the month most local mills had sold out their estimated production for the balance of 1937 at about these levels. .The meal market on the Coast was nomin'ally about $25.00 per ton c.i.f., which, un der the new freight rate, worked about substantially less than cake to Europe. There was very little inquiry for meal from the Coast during the month, even at these low prices. The Philippines-Europe Conference an nounced another increase in cake rates of 7/6d, effective April 1, 1937, this being the third increase within a year. Statistics for the month follow: Metric Shipments— Tons Pacific Coast ................................ 2,431 Europe .......................................... 5,74'1 8,172 Beyinning End of of Month Month Stocks on hand in Manila and Cebu ..................... 4,743 9,25:, Desiccated Coconut—The desiccated co conut market was weak throughout the month. After excellent business for the first five months of the year, the demand slacked off, and with increasing stocks in the United States, mills here cut produc tion because they were unable to move these stocks rapidly enough. On Septem ber 20th the base price in New York was reduced to 8% cents with the possibility of a further decrease in October or No vember. Competition between the local ma nufacturers was keener than usual, and buyers in the United States were holding off with the hope of getting some advan tages from the fall close in their standard contracts, which, characteristic to this trade, gives buyers the advantage of anv marked decline, although holding. sellers to a fixed maximuni. Nuts were plentiful and facto ries could have operated at much greater capacity had the business been available. Exports for the month declined to 2,939 tons. General—At the end of the month there was a firm feeling in all markets, except for desiccated, and producers and sellers were looking forward to better prices in October. Whether this feeling of optimism was justified or not is for the future to tell but it was generally agreed that there was nothing in the statistical picture to give of more than a temporary firmness to the market, and if predictions of an excess cotton crop should come true, the whole market tone should be adversely affected thereby. At the same time, with Euro pean buyers keener than usual, and with oils and fats very reasonably priced on the whole, there was reason to believe that the lows of August and early September might very easily be the lows of the year. Rarely has the market looked more confused than it did at the end of September. Culled from the . . . (Continued from page 48) The San Luis Investment Company has already invested in the stock of a mine management company, an industrial com pany, and two mining companies, at very favorable prices, according to Mr. Hoskyn. PAN-PHILIPPINES CORPORA TION : This company, which was formed about the middle of this year by Major J. E. H. Stevenot, Mr. J. H. Sampson, and others, for the purpose of acquiring and developing mining properties in the Philippines, has signed a contract with the Treasure Island Mining Company for the management, financing and operation of the latter’s prop erties on the island of Lahuy, Camarines Sur. The well-known prospector, Mr. W. F. I’urcell, staked the Lahuy claims some time ago. He latei- sold his rights to the Treas ure Island Mining Company. In May of this year, work was started on the island on a comparatively small •scale. Encouraged by results obtained, however, work has been pushed at a faster pace, and has resulted in very gratifying ore discoveries. Two pieces of work of major importance are now being carried forward: on Tun nels Nos. 5 and 6. Mr. Orlando McCramey, the chief engineer of Pan-Philippines cor poration, has this to say about operations in his latest report: “Tunnel No. 5 encountered its objective at a little less than 200 feet from its portal, in the form of a vein which, upon sampling, returned Pl,664.00 in gold per ton, in a width of 18 inches. The cross-cut was continued through the vein, which exhibited a thickness of 8 and ’/£ feet, with a grade of P62.44 in gold per ton. After cross-cutting, drifting was con tinued along this vein, and, discarding the extremely high values first encountered, the vein area exposed by recent drifting may be conservatively appraised as con taining an average of P51.98 in gold per ton. “Tunnel No. 6 has been driven North for 180 feet, and two drifts have been run upon veins developed. Along the hanging wall side of Drift No. 1 there is a width of 14 feet of material which will average about P10.00 in gold per ton. Drift No. 2 ex posed an ore shoot showing excellent gold values which average P56.38 in gold per ton, over a width of 21£ feet.” Every effort is being made to put the Treasure Island property on Lahuy into production during the first half of the com ing year, and present indications are that this can be accomplished. THE HERCULES POWDER COMPANY, with head offices at Wilmington, Delaware, has sent its representative Mr. W. F. McCandlish, to Manila to remain here a short period to assist the Philippine distributors of Hercules powder, Engineering Equip ment and Supply Company. Mr. McCandlish came here via Clipper with Jim Marshall, Colliers writer, on the last lap of the latter’s famous Manila-to China-to- Japan-to Oregon-to Manila-to China trip. He expect to go back by Clip per shortly. QUARTZ HILL: Two properties of importance in the Phil ippine Gold Industry are being operated by the Quartz Hill Mining Company. They' are the Quartz Hill property consisting of 51 claims located four kilometers west of the Mountain trail at K. 57. The otherproperty is that of the Nayak Mining Cor poration located at K. 110, in the Suyoc District. The lattei- property is operated on a profit sharing contract. The former in the property of the Quartz Hill Mining Company. Incorporated September 9, 1937, the Quartz Hill Mining Company consists of 2,000 shares no par value with a market evaluation of P2,000,000. The company was organized to explore and develop the old Igorrote workings west of Kilometer 57. An examination and favorable report was made by W. T. Graham and the company started work in November of 1936. The officers of the Corporation are O. E. Hart, President; J. S. Sampson, Vice-Pres. and Tieasurer; T. S. Holt, Asst. Treasurer and Secretary; Frank S. Parker, Director; R. Fernandez, Director; and J. G. Hartman, Director. Progress to date has been extensive and even to the casual observer it is apparent that the property is being developed under competent engineering management and due regard for the stockholders funds. To date, at the Quartz Hill property, seven tunnels have been driven for a total distance of 3,000 feet. The main Bogan vein which is a strong structure running generally N and S is at present time show ing a width up to fourteen feet in a wintz being sunk on the vein. Assays made show values to P35.00 per ton. , Will we have . . . (Continued from page 30) To summarize: We have been through a lot, but we were not really hurt in a vital spot. It looks as though a new mining and agricultural district were going to be TVT /r'Y|\/T'D LOS ANGELES I JUV/iVlD HANG FORGED Automobile & Aviation Tools KLEIN chicagp°l.eRS FOR ELECTRICAL WORK E. VIEGELMANN 460 Dasmarinas Manila, P. I. opened up in Mindanao. Business in general continues good. The war in China and, to a smaller extent the war in Spain have hurt us, but it is possible that war demands may eventually give oui’ agriculture and indus try a tremendous impetus. The independence question will probably be settled, either by action or by inaction on the part of Congress, probably by March. At any rate, we will get legislation on trade relations between the United States and the Philippines by then. The last boom came down with an awful crash and it hurt us, but not permanently. The old producing mines are still producing, and new producers appear regularly. The bogey about reducing the price of gold seems to be laid to rest, at least for the time being. Yes, we hope we don’t ever get another boom, or anything approaching it. But we are afraid we might! JR IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CH AMEER OF COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 53 Numerous crosscuts are being driven on three levels to intercept the Bogan vein on the south slope of the property and when these cross-cuts intercept the vein and raises are constructed, it is believed that a large quantity of positive ore will be blocked ready for milling operations. Buildings on the property consist of an office, engineers’ quarters and mess, three laborers’ dormitories, warehouses, and power plant. A 20 H. P. diesel is installed at a central point on the property to sup ply light and power to the workings and quarters. A compressor was recently pur chased and is now being installed in the power house to provide air for jack hammers. This new equipment will speed ui the work and cut costs of operation. Before the end of the present year, the Quartz Hill property will show much sub stantial progress toward the decision to es tablish a mill. The property of the Nayak Mining Cor poration which in May, 1937 came under the control of the Quartz Hill Mining Com pany is fast approaching the stage when a mill will be ordered. Present discussion indicates that the type of milling equip ment needed will be settled within the next sixt'T days. This old Igorrote mine has been worked ntermittently by Americans since 1902 but at no time on as extensive a basis as at present. The property consists of twentytwo claims. Eleven tunnels have been driven for a total distance of 8,320 feet. There are three main working levels which are known as the 100, 200 and 300 level tunnels. Level No. 100 has been developed suffi ciently until milling starts. Over 1,800 feet or workings have been completed and two raises to the surface have been com pleted. Excellent ore shutes exist on this .level. Level No. 200 has 2,600 feet of drifts and crosscuts. Five raises have been cut to the 100 level. This level has partially developed ore bodies ready for stoping. Active development work is continuing to the south with very favorable results. Level No. 300 has a thousand feet of drifts and crosscuts, and raises to the 200 level are being pushed. It is from this level that the main hauling will be made to the mill. Assays at Nayak have been consistently good, indicating a large body of millable ore with assays running to $94.73 per ton. Other development work on the Nayak contract is moving ahead rapidly. Blowers have been installed in the No. 200 and No. 300 and Cobre tunnels. 7,000 feet of air and water lines have been laid. The power equipment consists of a 100 K. P. diesel connected to a 37 KW gene rator. A 65 H.P. diesel compressor unit supplies air for the jack hammers. A fully equipped assay laboratory is in daily operation on the property. Other buildings consist of an office, bodega, staff mess, residence, twelve bunk houses for native laborers, store, powerhouse, black smith shop and tool house. At the time of the recent inspection trip made by Mr. O. E. Hart, President and other officials of the company there were 143 employees at work at the Nayak Con tract. The program at Nayak is progressing on a most satisfactory basis and with recent installations of machinery operating costs have been greatly reduced and discussion now centers around the purchase of a mill. What the Digger . . . (Continued from page 36) (2) Conditions can be imposed on the lease which might hinder good mining operations; royalties exacted by the State increased and other charges imposed on mining out-put, which would make it very difficult, if not impossible, to esti mate costs in advance. Furthermore, under the law, ore ex traction must cease when application for a lease is made, until the lease is granted. This forces mines with unpatented claims to suspend production for '.an indefinite period, and thereby lose their income en tirely. The case is highly important, and will probably be carried to the United States Supreme Court for final decision. The pre dicament in which local mining now finds itself as a result of this case has been widely commented upon editorially in U. S. newspapers. CAL HORR: The report for the first six months of 1937 showed operations here very satisfactory, with a total of P596,345.14 of ore being milled during the period. This included Ukab, Hartwell and Crown Point ores, however, only P370,508.46 being Cal Horr ore. Including the manganese group, ore re serves seem to be limited to two more years, which will end the life of the mine. However, it is planned to mill all ore in the Crown Point and Kelly groups of Ben guet, and any ore developed in the adjacent Narba, Southern Cross, and Gold Hill con tracts, as well as any shallow ore found in the Hartwell group. The mill is cen trally located with respect to all these properties, and can be reached from all of them by comparatively inexpensive aerial tramways. IPO: Operations continued at normal here, with 31,200 tons of ore milled for a gross recovery of P315,128.51 and an ave rage of 93 per cent extraction. The halfyear report is very encouraging as to Ipo, WARNER, BARNES & COMPANY, LTD. LONDON—MANILA ILOILO — CEBU — BACOLOD IMPORTERS « EXPORTERS SHIPPING DEPT. INSURANCE DEPT. A peats For: Nippon Yusen Kaisa Cunard-White Star, Ltd. Ribby Line Marine Automobile Fidelity & Surety Bonds &c General Managers of COMMONWEALTH INSURANCE COMPANY ILOILO WAREHOUSING CORPORATION 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 I'lour Fertilizer Sugar Bags Cable Address: “Warner’- Standard Code) Manila Office: Soriano Building. Plaza Cervantes Far East—Europe RAPID LUXURY LINERS Via Singapore—Colombo—Bombay—Massowah—Suez—Port Said S.S. CONTE VERDE I.eaves HONGKONG. Nov. 6. for Venice and Trieste S. S. CONTE BIANCAMANO Leaves HONGKONG, Nov, 19, for Naples and Genoa S.S. CONTE ROSSO Leaves MANILA, Dec. 1. for Venice and Trieste Overland to London, Paris, Berlin Stopover privileges. From Egypt the iroyage can be continued any of the Italian line Mediterranean services. Through Tickets to the U. S. and Round the World at Reduced Fares. by EXPRESS SERVICE via INDI A - EGYPT - ITALY ITALIA LINE—LLOYD TRIESTINO Smith, Bell & Co., Ltd., Agents HONGKONG & SHANGHAI BANK BLDG., PHONE E-31-31 /N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 54 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 pointing out that discoveries of primary ore of commercial value give it a good chance for the first time of developing into a long life operation. However, pro fits will be curtailed for a few months more due to the necessity of a vigorous develop ment campaign. In general, operations on other Haussermann-managed mines are proceeding satis factorily. Florannie and Consolidated Mines have been held up by difficulty in securing cargo space, and other transpor tation difficulties. SORIANO: The Soriano mines reported a record total production for September, according to figures released the first of this month. Antamok, I. X. L. and Man hate turned out an aggregate of :926,829.95, as against 1*919,198.00, which was the pre vious high for these three mines. I. X. L. produced P208,874.21, from a ton nage of 7,515, as against P171,696.00 in August, and as against the previous alltime high of P186,058.63. Masbate reported a record of P277.742 from a tonnage of 67,344, which compares with P254.415.04 in August, and the pre vious high of P262.734.28. Antamok reported P440.244.57, as against :34,772.00 in August. Benguet Exyploration turned in PI 9,780, as against :21,442.82 in August. MARSMAN: Palidan-Suyoc Tunnel: September ad vance was 1,148 feet, which left the face 5,925 feet from the portal at the end of the month. This advance was considered creditable, in view of soft ground encountered, neces sitating much timbering. The tunnel is be lieved to have passed the influence of the Palidan Slide area. Country passed through during September showed considerable faulting, but no vein formation were cut. The company has at least one first class “mucker” on its force in the person of Mr. Herman Stokes, tunnel man from Ne vada, California, Mexico, and points North, South, East, and West. Stokes’ father is also well-known to tunnel men, and this young man seems to be a chip off the old block. We met Stokes, Jr. on our trip to the Philippines. He told us then that he was coming out to work the Palidan-Suyoc tun nel on a contract time-bonus basis. He evidently likes the country, because he has since brought his family out. We learned a lot about the business of digging tun nels on that long boat trip, but Stokes insists that, after all, all there is to dig ging a tunnel is getting the dirt out. Itogon and United Paracale made good records in September, according to reports coming from the mines. Its capacity increased to 1,000 tons daily, Itogon was able to produce P320,319.10. United Paracale hung up a record for the fourth consecutive month, with a total out put of P192.755.24 from 6,962 tons milled. Head values at United Paracale averaged P28.79 per ton for the month, with a re covered value of P25.10 on an extruction of 87.2 per cent. Itogon’s extraction was 86.75 per cent. September saw the completion of the ex pansion program at Itogon, started early this year. The capacity of the plant was finally put on a 1,000 ton per day basis, after long and costly delays due to labor and shipping strikes in the United States. For this reason, the matter of an in terim dividend was put over. Mindanao Mining Company. Operations have been going on at the placer property of the Mindanao Mining Co. since the first of September, J. O. Enberg of the Board of Consulting Engineers of Marsman and Co. reported last month on his return from a trip to Mindanao. Work has been going on on a one-shift basis, but the installation of a power light plant will enable work to continue 24 hours a day. San Mauricio: Increased its production from P95,064.40 in August, to P136,479.97, according to reports released by Marsman & Co. Sugar did not fare so well, due to the breakdown of one ball mill. This mine produced P124.925.18 of gold from 5,474 tons of ore milled. All construction work at San Mauricio for 1937 is expected to be completed ac cording to schedule. The big news anent Marsman mines is the new one million peso dredge recently completed for Coco Grove, about which more next month. Royal Paracale: Announced September production of P25,013.83 from 2,924 tons. Considerable development was run through the mill, as work is now being carried on at the new 320 level as well as at the 370 level. Royal Paracale was formerly the L. X. L. Argos mine, and was taken over from the Soriano interests by Sam Wilson and as sociates a few months ago. The stock is now being offered for sale to the public by the S. F. D., Inc., with offices in the Crystal-Arcade. MINE FACTORS: Has completed load ing of a second shipment of manganese at the mine operated by Mine Factors at Si(Please turn to page th) KUENZLE & STREIFF, INC. Main Office: MANILA Branch Office: 343 T. Pinpin CEBU ILOILO 44-48 Isaac Feral Tel. No. 2-39-36 ZAMBOANGA Tel. No. 2-17-62 /N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL October, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 55 8 Ki, 4 1 2 J Feb. 9 Jan. 17 Jan. 24 13 Jan. 14 ♦Jan. 27 Jan. 19 2 3 Feb. 5 16 Jan. 28 23 Jan; 26 ♦Feb. 15 1 4 4 4 4 -aas °5 S san ~ 3 HU 44 4 444 i 4 S3 a 4 4 44 4 rs 444 s a 1 4 -22^2 si'-sas 2 14444 *44M 44444 4 - 3^2 a 2 4 4444 4 4 a 2^ a a s' 2 £ M HI 4 4 4 K » * 4 ESS aa“"«a OS OH4 44444 4 sass S22 5 »a«~ * 4I4| 2222a 2S3SS ’SS-"- ■* 4'4444 4 2 a a ’ <N * i i 4 2 2 22 P S22 K 8 * * 88 44 3 aa s 2 £ f 4 * .4111 ihj i4hi till! I llUl iiiis I 56 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1937 RAIL COMMODITY MOVEMENTS By LEON M. LAZAGA Traffic Manager, Manila Railroad Company FREIGHT COMMODITIES REVENUE CAR LOADING The volume of commodities received in Ma nila during the month of September, 1937, via the Manila Railroad Company are as follows: Rice, cavanes ........................... 135,499 Sugar, piculs ........................... 118,240 Copra, piculs ........................... 125,858 Desiccated Coconuts ............... 29,809 Tobacco, bales .................... 3,554 Lumber, board feet ............... 566,407 Timber, kilos ........................... 1,709,000 Copra ....................................... Coconuts ............................... Molasses .................................. Tobacco .................................... Mineral Products .................. Lumber and Timber .......... Forest Products .................... Manufactures ........................ All Others including L.C.I.. 652 47 2 31 814; 10j 228 806 143 3 6 .SUMMARY 7,084 10,557 971. 6,752 ’ 85 7,193 (219) 73 (7) (154) (96) (1) 25 (23) (22) (2) 59 155 (208) (1,229) (1.123) (48) The freight revenue car loading statistics for four weeks ending September 25, 1937, as compared with the same period of 1936 are given below: Week ending Sept. 4 Week ending Sept. 11 Week ending Sept. 18 Week endinj " Totnl Sept. 25 (3.1S8) (3,796) 616 1,559 48.663 53,422 208 (4,759) Note—Figures in parenthesis indicate decrease. Sugar (Continued from page 17) farms require more diversification than our own. Domestic refiners raise no objections to the modest 50,000 metric tons permitted to be treated here for the American mar ket, an activity mainly carried on by Amer ican capital. It is disconcerting that sugar presently bulks so large in Philippine exports, there fore in their domestic economy. It equals the value of American manufactures sold in this market, but not when freight, in surance, and profits of American capital in the industry are taken away, and when federal taxes on corporations’ and indivi duals’ incomes are abstracted. However, it was 46% of all Philippine exports last year, by value, and exports are about 40% of the Islands production. Yet cane covers but 15% of the tilled land of the Islands, and now that it is confined to a quota its relative position among the exports will steadily decline. Population, will increase, food crops will be larger and new ones will be added. Some elaboration of products may be anticipated, and with all this, -with the passage of but a short times sugar ■will be in a normal place among our ex ports. But as the Manila chamber of commerce cites in its brief, even as matters stand there is admirable balance to PhilippineAmerican commerce. It does not appear superficially, international commerce is not transparent enough for that, but funda mentally it exists. There would be no re medy for an evil, since evil is absent from the situation, in injuring Philippine sugar the American market which was in for mer years, not twenty years ago indeed, held out as the peculiar inducement of the industry’s modernization. That could be nothing less than a breaking of faith. BUSINESS AND PROFESSIONAL DIRECTORY Kerr Steamship Co., Inc. General Agents “SILVER FLEET” Express Freight Services Philippines-New York-Boston Philippines-Pacific Coast (Direct) Roosevelt Steamship Agency Agents Chaco Bldg. Phone 2-15-21 Manila, P. I. P.O. Box 1 394 Telephone 2-20-70 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 American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila, P. I. fir « W rl1 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 CIRimSCTILID IL L IM lb IL R Rot. is another problem that causes large losses. Again creosoted lumber brings a great saving. Actual use of 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 In Manila Homes or Borneo Jungles ELECTROLUX THE SERVEL GAS REFRIGERATOR functions perfectly PLACE Is immaterial in the dependable operation of the Electrolux. The famous ex ploring Johnson’s had one in the dense, wild jungles of Borneo. CONSIDER THESE POINTS No Moving Parts No Expensive Repairs No Interrupted Service No Spoiled Food Lower Operating Cost Dependable Operation Plus More Ice Cubes More Conveniences Greater Beauty Manila Gas Corporation 136-138 T. Pinpin IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERK AN ('ll AM HER OE (OMMERCE JOl'RNAL COLOR \ HARMONY Can only be achieved from perfect blend of per manent and true colors. INDECO paints ARE permanent tropical paints. No weathering can mar its beauty. Insist on IN DECO for your next paint job. For further particulars: INDUSTRIAL DEVELOPMENT COMPANY MANUFACTURERS 6 Barraca St. ... . J 4-90-67 P. O. Box 21 lels U-90-68 LV RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL