The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Description: Manila : The Chamber, 1921-1976
52 v.
Issue Date: Volume XVII (No. 12) December 1937
Publisher: The American Chamber of Commerce of the Philippine Islands (Member Chamber of Commerce of the United States)
Year: 1937
Language: English
Subject: Philippines -- Commerce -- Periodicals.; Philippines -- Economic conditions -- Periodicals.
Rights
Place of publication: Manila
extracted text: I i< ns i\-< Wrinkles of Safety Stop Skidding Worries HY do your tires slip and slide? Because they have stiff, unyielding tread ribs that act like sled runners when you try to stop. To eliminate this sled-runner sliding, General in vented the Dual-10—a tire with tread so flexible it wrinkles when brakes are applied. The wrinkles squeegee wet pavements dry—they sweep aside loose dust and greasy traffic film on dry roads—GRIP and STOP right now! See Your General Tire Dealer THE NEW GENERAL zW 10 Pacific Commercial Company DISTRIBUTOR Reddy Kilowatt .... your electrical servant - - - - says “Give Electrical Gifts” “1 have never know n of a single instance when an electrical gilt was not appreciated. . . and I speak from experience in millions of homes." “You may ask ‘What shall I give''.’ I suggest that you visit your electrical dealer to SEE what he has. 'khat will he a lot hotter than anything Electric Current Is Cheap "Compared with other modern cities. New York, Reddy’s Cut-Out Contest I charge you." "1 want every one of our Meralco customers to Reddy Kilowatt join in this contest. <Jet the handhills which give full information about it." MANILA ELECTRIC COMPANY /.V RF\I>(>\I)I\'G ID AllVI Rfl\l Ml V 7 s />/ IASF Ml- \'TI( >.V Illi AMFRK A\ (IIAMHFR OF (OMMIIK F JOl’RKAl December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 Rainier Club You’ll like this deli cious beer the first time you taste it— and better and better as time goes on. TRY RAINIER CLUB TODAY ISUAN, INC. Tel: 5-73-06—We Deliver Philippine Refining Company . --------------.------ INCORPORATED---------------— MANILA CEBU Producers of Coconut Oil, Copra Cake and Copra Meal We Solicit Direct Shipments of Copra from Producers and Provincial Merchants and he means ‘countless hours” of real satisfaction. 7 jewels, 10 Kt. natural gold filled ease, P59.50. WE HIGHLY RECOMMEND COPRA MEAL-FOR STOCK FEEDING. IT CAN NOT BE EXCELLED Try It Once And Be Convinced 1035 ISAAC PERAL-TEL. 5-69-51 -MANILA Why not give HIM an ELGIN too...? •HEACOCK'S RETAIL STORE • 72-74 Escolta IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 OXY-ACETYLENE Welding & Cutting Equipment Philippine Acetylene Co 281 CALLE CRISTOBAL, P\CO MANILA, P. I. LETTERS Dr. Victor S. Clark —Well known to our readers and in Manila most lately as counsel to President Quezon on economics matters. “Your letter of June 27 was at my office when I arrived last Wednesday. I had heard of the murder of Percy Hill when in San Francisco last August. The crime naturally shocked me as it did everyone who knew the history of American settlers in the Islands. “I have not read through the last two issues of the Journal including the August number with a cover pic ture of very great personal interest to me. You keep up the standard whatever is happening with the Is lands in general. It was an excel lent idea to publish the WarringDorfman Report. You have put it in excellent form for reference and preservation. I am glad to have it in the Library files. “My summer’s trip included a motor tour with Robert Lincoln O’Brien, until recently Chairman of the United States Tariff Commission, who is an old road companion. We went west through Minneapolis and Winnipeg toward the prairie provinces of Ca nada, made our way by motor through the Rockies via Banff, Lake Louise, and Frazer Canon, did the Olympic Peninsula, the Redwood Highway and the new coast road from Monterey to Santa Barbara, crossed the desert to Boulder Dam, and spent about a week in the Grand Canon and Zion Park country. I separated from Mr. O’Brien and a friend who accompanied us at Salt Lake City to fly back to the coast and take a steamer stopping at Central American and Columbian ports through the Canal to New York. It did not seem a hoalthy time to ven ture across the Pacific as I was seek ing relaxation rather than excite ment. “I have been much interested in your observations on current condi tions in Manila and wonder what you think of the present Far Eastern situation in general. Did you meet Fred Howe, the Agricultural Adviser to whom I gave a letter for you? Louis Weinzheimer seems to regard him highly. “Philippine questions are quiescent in Washington and harried officials are trying to forget about sugar in the hope that all parties will let sleep ing dogs lie. I have not been back long enough to learn much more than that.” _______ Salvador Araneta —Manila attorney whose brief October 6, 1937 to the MacMurray committee was summarized by us. “I thank you very much for yours of the 5th inst., informing me of the kind treatment you have given to my brief. I was prompted to submit my candid views on the problems con fronting the Joint Preparatory Com mittee on Philippine Affairs with the belief that such step would be help ful to our cause. I know that any space to be given to such views in your Journal or in the “News” at Chicago will be a factor in bringing about the purpose which actuated me in the preparation of the same. “Your Journal is, indeed, an ex cellent magazine and I have been fol lowing it with much interest.” IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION' THE AMERICAN CHAMBER OF COMMERCE JOURNAL Here’s how to get Manila’s! Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby! C. A. Bond Philippine Tobacco York City List o f Dist r i - b u t o r s furnished upon re quest to— New 15 Williams Street, Collector of Internal Manila, P. 1. Revenue A S conditions MANIL made under sanitary will satisfy your taste! (Health Bulletin No. 28) Rules and Regulations for the Sanitary Control of the Factories of Tobacco Products. “Section IS. Insanitary Acts.— No person engaged in the handling, preparation, processing, manufacture, or packing of tobacco product or supervising such employment, shall perform, cause, permit, or suffer to be permitted, any insanitary act during such employment, nor shall any such person touch or contaminate any tobacco products with filthy hands or permit the same to be brought into contact with the tongue or lips, or use saliva, impure water, or other unwholesome substances as a moist ening agent;...”. December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 NOTICE 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 KRUEGER'S Tfye first BEER IN KEGLINED CANS AT ALL GROCERS OR DIRECT FROM TRANS-PACIFIC- TRADING. CO. P.O. BOX 497 . MANILA • TEL. 2-42-04 Good for a Healthy Thirst! ★ BALINTAWAK is NOT “just another subdivision”. It is an exclusive Estate conceived to meet the fastidious requirements of a distinguished home builder. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Just Little Things • We write from Hongkong, where we arrived by the President Taft November 29 from Manila and are awaiting Blue Funnel accommodations on the Patroclus Monday, December 6, to Shanghai—where the Taft would not go. One of the littlest of things is our vacation, to last three weeks or so—as welcome as if it were ever so long. Every day, here, some Soongs come to town. This week, T. V. Soong has been in and out, or possibly just in, and last night another brother flew in from Hankow with ten members of his family, stay indefinite. These flights of flurried statesmen from mainland China make Hongkong a good deal of money, but presently place her in an unwonted predicament because Japan blames her first with one ulterior design, then another, while all the stranger can see is that she is just another British trade outpost trying to get along. Maybe the agitation that fetches to Hongkong so many Soongs, noted as they are for prudent wisdom and ability to safeguard the welfare of the Soongs, is favorable to peace between China and Japan. Conversations are in progress at Hankow, the newspapers say, and both sides deny any willingness to come to terms. Surely a pro mising sign. • Hongkong would welcome peace, though it booms her entre-pot business for the time being to have merchants passing through her harbor, to China via Canton and Hankow, what they can no longer route through Shang hai. She could, she feels, get along with more regular business—more regularized. She is a bonny port, an ► aggrandized stevedores’ establishment wherein all is the routine of the movement of goods: invoices, drafts, etc., but her streets are wide and clean, her police discipline thorough, and her enormous trade is effected in an atmosphere actually suburban in its quietude. This ex tends to the shops and hotels, in short pervades every thing. If there is noise and disorder, it is in the road stead where the ships of all nations lie—discharging and reloading. • Japanese bomb Canton every day, the railway being a special objective, the usual time being early morning. Emergency crews hasten repairs, and the trains soon resume schedules. Hongkong herself even anticipates such visitations, on grounds that she furthers commerce in articles the contraband of war. But how could the attacks be justified, until Japan formally declares war and enforces a blockade? For until them, surely, China has the right to buy what she wants where she can get it. However, Hongkong conceals her misgivings admir ably. She has built no cellars, and vacillates between teaching the populace to abandon buildings for open spaces in case of aerial bombardment, or to stay in doors where it is thought the first floors would be places of real security. • Hongkong is as substantially built as she is beautiful. Principal materials seem to be granite and brick, with marble and wood for embellishment. You can sense at first glance that all building is carefully planned, and (Please turn to page 10) WARNER BARNES & COMPANY, LONDON — MANILA — ILOILO — CEBU — BACOLOD LTD. SHIPPING DEPARTMENT Nippon Yusen Kaisha Cunard-White Star, Ltd. BH>by Line INSURANCE DEPARTMENT Transacting: Fire Marine Automobile and Miscellaneous Fidelity and Surety Bonds IMPORTERS & EXPORTERS General Managers of COMMONWEALTH INSURANCE COMPANY ILOILO WAREHOUSING CORPORATION RAMONA MILLING COMPANY Special representatives of IMPERIAL AIRWAYS, LTD. MACHINERY DEPARTMENT Agents For: Sugar Machinery, Diesel Engines, Condensing Plants, Mining Machinery and Steels, Ship builders and Engineers. AGRICULTURAL DEPARTMENT All Classes of Fertilizer IMPORT DEPARTMENT Sperry Flour Sugar Bags Manila Office: SORIANO BUILDING, Plaza Cervantes Cable Address: “WARNER” Standard Codes IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 Araneta Gave Committee His Views • Plugs for Free Reciprocating Commerce' Attorney Salvador Araneta’s brief to the MacMurray Committee attracted favorable attention downtown. Associated with monetary and tariff autonomy for the Commonwealth, the Araneta brief proposes to keep the Commonwealth period as it is and to add to it a fifteenyear economic transition period “during which time the volume of our exports to the United States will not be materially increased.” During the fifteen years, the Islands would try to manufacture more of their staple requirements; if this curtailed similar supplies from the United States, importation of more capital goods and other types of consumer goods should offset it. Tariff autonomy is urged as a measure against fall ing prey to Japan in the manner of China; if this is delayed until the transition period expires, it will be a myth—and so will independence be, at least in matters economic. During fifteen years the Islands need the excise taxes collected by the United States on Philippine products, about P70,000,000 a year, “to finance their industrial de velopment.” At the same time, the Davao * problem is to be solved, “which might otherwise give rise to disin tegration of our territory.” Meantime, this brief would repeal the export taxes that otherwise will apply to major Philippine exports to the United States commencing with the sixth year of the Commonwealth and reaching 25% of the existing U. S. full duty rates at its close in 1946. It will be seen that aside from getting these charges out of the way, the proposal is to expand the transition to fifteen years; after that, the brief proposes continuation of the trade’ on a basis of true reciprocity. Thirty per cent of the Islands’ total production now finds its market in the United States, Araneta argues that, without reducing the volume, its relation to total production should be re duced by increasing production as well as wealth (making for greater local consumption). He thinks it might stand at no more than 10% of total production at the end of fifteen years. Refined sugar................................ 10,000,000 Desiccated coconut........................ 9,200,000 Embroideries ................................ 8,550,000 Copra cake..................................... 3,700,000 Cordage ......................................... 2,600,000 Pineapple (canned) .................... 1,100,000 Hats ............................................... 1,500,000 Vegetable lard .............................. 2,000,000 Vegetable butter .......................... 1,000,000 Cutch ....................................•.... 650,000 Pearl buttons.................................. 446,000 Total .................................. P91,146,000 Percentage of P. I. manufactures last year exported to U. S. and other markets: United States Other Countries Per Cent Per Cent Coconut Oil .................. 82.11 4.59 Cigars and cigarettes ..... . 25.82 4.38 Refined sugar ................ 94.25 0.09 Desiccated coconut........ 94.63 0.95 Embroideries ................ 99.80 0.19 Copra cake .................... .. 55.91 42.99 Cordage ........................ 34.59 57.63 Pineapple (canned) .... 91.18 0.004 Hats .............................. ... 63.98 14.45 Vegetable lard .............. 34.00 11.03 Vegetable butter .......... .. 20.56 46.65 Cutch ............................. .. 99.40 0.00 Pearl buttons .............. . .. 97.99 0.00 “The export taxes that are being levied by the TyTotal production last year: Agriculture .................................. Livestock ..................................... Manufacturing ............................ Mining ......................................... Forest Products .......................... Fisheries ..................................... P357,391,770 10,854,000 91,146,000 52,200,000 33,511,000 84,200,000 Total P629,302,770 Estimates of the percentage of Philippine products that went abroad in 1936, showing share of the United States follow: United States Other Countries Agriculture ........................ Mining................................ Forest products................. Fisheries ............................ Last year’s manufactures: Coconut Oil........................ Cigars and cigarettes........ Per Cent 39.50 43.48 7.87 0.05 Per Cent 11.01 5.64 12.03 0.09 P32,000,000 18,400,000 • Davao is a large productive province forked around Davao gulf In south eastern Mindanao and extending far northward from the coast. Its community 16,000 thrifty Japanese, chiefly farmers and plantation workers, disturbs Fili pinos far more than the community of probably 160,000 to 200,000 Chinese chiefly merchants, scattered throughout Manila and all the provinces.—Ed. dings-McDuffie Law have the expressed objective to pro vide means for the payment of our bonded indebtedness to the United States. Four of our principal exports like oil, pearl, buttons, cigars and tobacco will not be able to stand the imposition of export taxes from the very beginning. Sugar, embroideries and desiccated coconuts will perhaps be able to stand the export tax for two years although with great hardships for many individual pro ducers. The practical result of the tax will, therefore, be to nullify its very aim, for with the curtailment of our principal exports, the expected income from the export taxes to be used for the payment of our bonded' indebted ness would not be realized.” The following paragraph of the Araneta brief sup ports this magazine’s belief that a Philippine tariff high enough to keep most foreign manufactures out of the Islands, while American goods came in duty free, would, because American wages are high, create an industrial atmosphere in the Islands enabling the country to make its own staples to a considerable and increasing extent, and at the same time fostering wider demand for other American manufactures than those the local products might gradually supplant—a process that should make the Islands a highwage country, comparatively, rich enough to support a strong government necessarily in dependent, economically, of low-wage imports: “To attain a more balanced economy, we should with out reducing the volume of our trade with the United States, reduce its importance in relation to our total pro duction, which should be increased by multiplying the production of our prime necessities. The loss in the im ports from the United States, which our industrialization (Please turn to page 0) December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 Philippine Copra and Oil • Briefs for Repeal of Penalties Irrefutable The Philippine coconut industry offers Cordell Hull, secretary of state, an inter esting problem in his favorite subject, in ternational reciprocal commerce. This is to say, commerce of reciprocating nature. The Kalaw brief for copra submitted to the MacMurray committee estimates four mil lion Filipinos dependent on copra for their living, and it is well known that nearly all of them are small holders. The brief of the oil expressers says that somewhat more than half of the coconut oil utilized in the United States from the Philippines is ex pressed in the Islands, but that Philippine mills will be unable to compete with Amer ican mills after the partial duties become applicable to Philippine coconut oil imported into the United States commencing with 1941. Copra is charged no duty by the United States, Dut the oil duty is 2 cents gold a m. and will be applicable with the advent of Philippine independence in 1946 (or an earlier or later date tnat may be fixed by Congress) unless the principle of recipro cal trade is interposed in the Islands’ be half and for the real benefit of American commerce with them. It is alleged that manufacturing costs in the Islands and in the United States vary little. But both the expressers and tne growers see ad vantages in extraction of some of Amer ica s coconut oil in the Islands. The larger expressers represent very large soap in terests, Proctor & Gambel, and Lever Bro thers, and therefore, since their principals are interested in Copra as well as oil, must have spoken with detached candor to the MacMurray committee. The argument, which seems altogether valid, is that the Philippine mills compete with the world for Philippine copra. They also buy it the year round, redeeming grow ers from the evils of the seasonal market, io get copra, they must of course pay the current world price at Manila or even some thing better; and the fact that the bulk of Luzon copra goes to the mills indicates they do pay such prices. American fats and oils benefit from this, which keep copra at top prices in the field of its largest pro duction and stabilizes the world price of copra to their obvious advantage. This infiuence on fats and oils prices is not sea sonal, but constant. The growers, through their representative, Dr. Maximo M. Kalaw, himself a grower, support this argument in detail. There is no use elaborating it, it is sound. But the growers have a further case, the American excise’ tax on the oil content of copra of 3 cents gold a lb. In force for three years now, at times this has exceeded the price growers could get for oil and has therefore tended to bankrupt them and cause them to lose their groves by foreclo sures. The Philippine National Banx has executed many such seizures during the past three years. The reason that tne tax is a direct price cut applied to copra is that copra has a world market and therefore sells at the world price independently of the tax. The grower does not get the world price and the tax, he gets the world price less the tax. A further evil of the tax is that though the proceeds revert to the Philippine treas ury, where its bulk shows that copra is taxed out of all proportion to any other Philippine product, law forbids its use for benefit of the copra industry, directly or indirectly. This is unfair to the industry, and altogether at contrast with Philippine sugar. The processing tax from Philippine sugar sold in the United States goes back to the industry, growers get it for complying with the quota. Besides, Philippine sugar UNDERWOOD . sj// Z) ? //sr PORTABLES UNDERWOOD engineers have given them outstanding typing performance. Underwood designers have given them smart ness and style. They are the world’s major developments in per sonal writing machines. The new type-masters are here in two models—the Underwood “Champion” and the “Universal.’’ WORLD’S LARGEST MANUFACTURER OF TYPEWRITERS UNDERWOOD ELLIOTT FISHER SALES AGENCY 30-32 ESCOLTA, MANILA SMITH, BELL & CO., LTD. {Sole Agents) MANILA—CEBU—ILOILO—LEGASPI—CAGAYAN SUB-AGENTS Johnston Trading Co. Ker & Co. Marsman & Co. Zamboanga Davao Baguio & Paracale Bazar Grand Capitan Tacloban, Leyte IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 8 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 does not sell at the world price in the United States (as copra does, bear in mind); it sells for the duty price, about three times the world price, and otherwise the Philip pine sugar industry that means so much to American manufacturers in this market could not survive. But copra is even more important from the viewpoint of trade sustained from its sale. The four million folk who live from it are a fourth of the Islands’ population. Aside from machinery, they buy their full share of American manufactures and re lish the opportunity to do so. Copra com munities are wide-awake, well advanced. There are, for instance, three million pairs of leather shoes sold in the Islands during a year, the uppers at least all made from American leather. Casual observation in dicates that the copra communities buy more than their proportionate share of these shoes. There are 12,000 college stu dent in the Islands, who will found homes whose staple desires for American manu factures will be high; and the copra com munities are the homes and property of more than a proportionate share of these young men and women. Now it goes without saying that Con gress had no wish to be unjust to the Phil ippines, nor any industry of theirs, when it made provision for the partial duties ap plicable to Philippine products during the last half of the Commonwealth, or when in 1935 it began collecting the excise tax of 3 cents a lb. on the oil content of copra and the coconut oil expressed in tne Is lands and sold in the United States. Con gress desired in the first instance to pro vide for the payment of Philippine public bonds held in the United States. It is now so plain that there are better ways of doing this that it is hard to see, in Ma nila, that Congress will not repeal the par tial-duty clauses of Tydings-McDuffie act, or that the High Commissioner will not urge this repeal. Congress desired in the instance of the excise tax to raise the general level of fats and oils in the United States, in benefit of domestic production; and it may have desired to discourage use of coconut oil in margarines and other edibles, to the end that more domestic fats and oils would so be utilized. It is to illuminate the actual situation that ensued, that on the first page of this discussion certain pertinent tables appear. Here is a table of our own: reduced). The final column of the table shows, in each instance, importations of the fat ingredients of margarines far in excess of the quantities actually utilized in margarine manufacture. This means that America’s domestic production could not supply the requirements outside the margarine industry. Coconut oil in margarines has not been competing with American fats and oils. If Congress acted under the assumption that it was competing, Congress was erro neously advised. If therefore the excise tax is retained, it should go to the copra producers—as the sugar processing tax goes to the growers and is intended for the benefit of labor. The copra excise tax would inevitably benefit labor, if so reverted, be cause the bulk of the copra is actually pre pared by the labor of small farmers and their families. This makes America mar kets for her staple manufactures, largely from the farms: milk, leather, cotton tex tiles. In the present situation, in eloquent need of correction, as we believe the copra and the oil briefs and this paper show, mar garine makers turned away from copra from the Philippines to sources of other oils where the American farmer and dairy man has no such markets as the Philip pines offer when their great crop, copra, is not penalized in the American market. It is also true, should compromise be sought, that coconut oil in American edi bles is but a fraction of the coconut oil utilized in American nonedibles, chiefly soap. Should the excise tax remain on oils for edibles, it should surely extend to all alike. Meantime, from oil for nonedibles it should be removed in order to give the Philippine grower the world price for his copra. If this is not done, then the grow ers should of course, have the proceeds of the tax, which would effect the same pur pose by means merely more cumbersome and costly. There is equal force in the mills’ petition for relief from the partial duties already discussed. Without doing America good, all these impositions do the Pnilippines in finite harm. England has built empire on the Consols of the East, bags of pungent copra. America can at least sustain sub stantial commerce on the same product. I-'ATS, OILS IMPORTED CONSUMPTION January to June 1937 inclusive From Preliminary quarterly Reports Bu reau of the Census Department of Commerce Kind Pounds Animal Oils and fats, edible 6,900,365 Other Animal oils and fats, edible .................................. 3,392,690 Tallow, inedible ................... 3,350,939 Wool Grease ......................... 2,544,452 Whale Oil ............................... 33,502,245 Cod Oil .................................. 12,468,443 Cod Liver Oil......................... 23,576,746 Other Fish Oil ..................... 1,002,285 Oleo Acid or Red Oil........... 43,171 Stearic Acid ......................... 821,644 Grease & Oils, n.o.s. (Value) $11,921 Cottonseed Oil—Crude ........ 20,186,163 Cottonseed Oil—Refined .... 136,771,243 Shortening ............................. 14,988 Corn oil ................................ 20,595,586 Peanut Oil ............................. 39,199,222 Sunflower Seed Oil ............. 469,123 Palm-Kernel Oil ................... 84,545,344 Olive Oil—edible ................. 28,613,514 Olive Oil Sulphured ............. 15,127,605 Sesame oil ............................. 15,739,949 Olive Oil, other inedible .... 3,822,614 Tung Oil ............................... 95,997,015 Coconut Oil ........................... 171,556,789 Palm Oil ............................... 176,743,527 Soy Bean Oil ......................... 21,076,327 Rapeseed (colza) oil ............ 1,341,465 Linseed Oil ........................... 239,570 Perilla Oil ........................... 18,137,730 Oiticica Oil............................. 1,666,383 Teaseed Oil ........................... 23,522,538 Other Vegetable Oils ............ 28,895,568 Carnauba Wax ..................... 9,362,371 Other Vegetable Wax .......... 4,637,667 Vegetable Tallow ................. 7,547,133 Fatty acids—vegetable ........ 9,784,090 Glycerine Crude ................... 10,570,170 Glycerine Refined ................. 5,556,607 OIL SEEDS IMPORTED FOR CONSUMPTION (Same Period as Above) Data on Fat Ingredients of U. S. Margarines in 1,000’s of pounds Kind of Fat Utilized First Half 1936 First Half 1937 Imported First Half 1937 Babassu Oil .............................................. ........ 9,570 10,645 18,000 Coconut Oil ................................................ ........ 80,391 31,302 308,957 Cottonseed Oil .......................................... ........ 50,701 79,613 156,957 Palm Kernel Oil........................................ ........ 638 4,327 109,745 Soya Bean Oil .......................................... ........ 2,514 15,094 21,076 Totals .............................................. ........ 143,814 140,981 615,735 Kind Tons Castor Beans ......................... 33,278 Copra ........... 114,448 Flaxseed ................................. 491,512 Sesame Seed ......................... 4,297 Babassu Nuts and Kernels .. 14,792 Rapeseed ................................ 1,126 Poppy Seed ........................... 1,186 Palm Kernels ....................... 20,688 Other Oil Seeds ................... 7,559 To effect approximations, 60% of ba bassu kernels and palm kernels, and copra imported by the United States during the first half of 1937 is taken as the oil con tent. This will probably be accurate enough to serve for graphic illustration. Not one domestic fat or oil utilizable in margarines benefited at all from the mo derated use of coconut oil in margarines brought about by the excise tax of 3 cents a lb. (Dr. Kalaw says also that use of margarines in lieu of butter has not been 688,886 Total Tons COMPARATIVE STATEMENT OF INGREDIENTS USED IN MARGARINE July July June June First Half First Half 1937 1936 1937 1936 1937 1936 Babassu Oil ........... .. 1,123,255 1,288,920 1,793,530 1,181,683 10,644,635 Coconut Oil .......... .. 6,567,654 9,553,577 5,614,136 9,735,659 31,301,665 80,391,066 Cottonseed Oil .... .. 9,281,541 7,611,752 10,960,897 6,649,498 79,613,118 50,701,367 Palm Kernel Oil ... 971,551 269,279 866,118 1,581,329 307,724 4,326,809 637,672 Soya Bean Oil .... .. 1,976,968 1,278,358 955,044 15,093,928 2,513,602 December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 Manila: A General Headquarters Point • Reside here and Canvass the Far East The catastrophe of war that has ruined a great deal of Shanghai and placed in jeopardy the civilian population and its places for residence and business, suggests Manila as the better central point for the headquarters of American manufacturers’ general representatives in the Far East. There have been some such removals, the Philippine government is wisely cordial to the movement. Manila has every advan tage as a general representative’s place of residence. Modern government, good health and sanitation conditions, tolerable schools, uni versities, churches, these are features of a Manila that opens an expanding market to a wide variety of imported manufac tures. Peace has been unbroken in the Philippines during a generation and more, and the political integrity of the Islands is a responsibility of the United' States. Ma nila is subject to no upheavals rising from the clashing interests of the Powers. Her means of communication are incomparable, as opposed to anything offered on the Chi na coast. By air she is within about one week of New York as the western terminus of Pan American’s airway across the Pa cific, and within five hours of Hongkong (with connections to China and Europe) as the eastern terminus of Pan American’s Manila-Canton-Hongkong circuit via Macao. Steamship arrivals and sailings are very frequent, passport facilities convenient. Exchange is stable. Put all these items together and add security, and you have a good case for Manila as a commercial headquarters point for the Far East. Malacanan is so cordial toward the move ment that it has been proposed to establish a free-port zone here. The suggestion has merit, but is not essential to Manila as a commercial headquarters. If the necessary legislation were perfected, and the essential foreshore in the district north of the Pasig reclaimed, future events might give the pro ject substance. In the present instance, it is chiefly helpful as a manifestation of good will. Manila has some of the features of a free port now. Transit cargo is handled here with economy, safety, and dispatch. A great deal of it is being handled, for China, while Shanghai’s facilities lie paralyzed. For a charge of P5 a ton, transit cargo is unloaded, stored accessibly in good bonded warehouses, and reloaded for export at the will of the shipper. Steamship men say this is a very reasonable charge. The service is unexceptionable. The warehouse charge the first month is Pl a ton, 50 centavos a month thereafter. The govern ment’s checking fee is 15 centavos a ton. A ton of transit freight is therefore handled at Manila for one full month for P6.50, or $3.75. Actual frec-port facilities such as space for manufacturing and reconditioning and the splitting of shipments inward for va rious points outward, would not now be used at Manila in normal times. The reason is, Manila has practically no advan tage over Hongkong and Shanghai in ocean freight rates, while both those cities enjoy the advantages of guild and coolie labor and a keen indigenous banking and com mercial class. But why not the free-zone legislation now, against opportunities that would jus tify implementing this legislation in the future ? It might be that domestic manu facturing could.be drawn to such a district, while it could certainly do no harm to re claim the foreshore for it. A time might arise when the Philippines and the United States effected an accord about shipping. At that instant, the free zone would be needed. Manila exports raw and semiraw products chiefly. But she now has some important manufacturing business that weighs con siderably in her exports. This trade is ex panding. If it would be a benefit, the en couragement of factory sites in the Tondo shore area should be offered. This hinges upon reclamation for the potential free zone. There are some dozen companies, several of them quite large, manufacturing here, and exporting largely to the Far East, margarines and cooking compounds made from coconut oil. They also export these products to more distant fields. The busi ness seems to be" well established. Another group of companies makes and exports reed furniture. A world market is enjoyed, monthly shipments run from 600 to 1,000 tons a month, 40 feet cubic measurement. Manila has the largest and best equipped reed furniture factory in the Nederlandsch Indische Handelsbank, N. V. Established 1863 at Amsterdam Paid-Up Capital - - - Guilders 33,000,000 [P37,000,000] Reserve Fund - - - - Guilders 13,200,000 [P14,800,000] General Head Office at Amsterdam with sub-offices at Rotterdam and the Hague. Head Office for the Netherlands Indies at Batavia. Branches in the Netherlands Indies, British India, Straits Settlements, China, Japan and the Philippines. Branch at Manila: 21 Plaza Moraga Every Description of Banking Business Transacted Current accounts opened and fixed deposits received at rates which will be quoted on application. world. Her factories of this sort utilize the world’s choicest supply of rattan, a native Philippine product that is cheap and abundant, supplemented with the best hard woods. One factory at least, is able to warrant its product against insect attacks— it has perfected a method to destroy them. Such utilization of Philippine natural products is bound to expand, the quality and price can not be touched by competitors. The fact that such enterprises are con stantly expanding, attests the existing good facilities of the port of Manila. Araneta gave... (Continued from page 6) program will entail, should be replaced with the importation from the United States of more capital goods that we shall need in connection with the establishment of our industries, as well as of consumer's goods of various kinds necessary to the refinements of modern life and which can not be efficiently produced locally. The foregoing will be made possible by a con certed programme of achieving a higher standard of living for our people with a more wide-spread distribution of the benefits derived at present from our trade relations with the United States. “The protective tariff duties that will be necessary to levy to protect our infant industries will serve the added purpose of protecting American goods, thereby mak ing our trade relations with the United States more truly reciprocal for the United States than at present.” IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1937 The American Chamber of Commerce OF THE Philippine Islands (Member Chamber of Commerce of the United States) DIRECTORS: >’ A. Meyer, President C. S. Salmon, Vice-President John I,. Headington, Treasurer J. C. Rockwell E M. (J imm Vr>- o E. Miller S. F. Caches E. Schradieck H. M. Cavender ALTERNATE DIRECTORS: L. K. Cotterman E. M. Bachrach (deceased) L. D. Lockwood H. Dean Hellis SECRETARY: C. G. Clifford COMMITTEES EXECUTIVE COMMITTEE: P. A. Meyer, Chairman C. S. Salmon RELIEF COMMITTEE: C. G. Clifford, Chairman MANUFACTURING COMMITTEE: K. 13. Day, Chairman •F. H. Hale D. F. O'Brien H. P. Strickler LEG'SLATIVE COMMITTEE: C. S. Salmon, Chairman J nd -e J ames 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 HANKING 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. Caches SHIFPING COMMITTEE: H. M. Cavender. Chairman E. M. Grimm Chester F. Sharp But to get back to the zone. Among the members of the Paez committee is A. de Castro, director of the com merce bureau where a foreign-trade zone for Manila has been advocated for years past. From one viewpoint, please; namely, a viewpoint looking exclusively to the future: our old Manila is passing, and a new port city aspiring to her rightful place among the greater ports of the world is rising from her traditions. This is written from Hongkong, the editor is on a bit of a vacation. It seems that Hongkong, when she con gested the scarp over which she is built, found a natural port area at Kowloon that could all be developed under the impartial 'discriminating eye of the government. Therefore here, where this is written, in the British Leased Territory, but on the lip of the harbor, rises not only a busy city but a beautiful one. Everything from the very gutters up is presentable, there is plan and pur pose behind it—the public weal is paramount—and Kow loon’s commerce as a consequence, as well as Hongkong’s, is carried on in an atmosphere actually suburban in its expansive quietude. Since at Manila you observe much the same thing in the Port Area south of the river, facing the piers at the bay, there is souhd argument for a like area north of the river under restrictions limiting its use to such pur poses only as would benefit the port. It is possible, we think, that a considerable commer cial structure might rise from such a foundation. Once the city had it, projects not obviously feasible now might resolve into the practical. Not everything, nor even one thing, would necessarily have to be done in a day; and certainly there should be no leaping at conclusions. Yet the day may come, and sooner than expected, when the manufacturing western world would rejoice in the exist ence of a foreign-trade zone at Manila with a stable and friendly government, justly ambitious, behind it. And now, what do our readers think. FOREIGN TRADE ZONE Interest in the project for a Foreign Trade Zone at Manila has been thrust upon us and we would value the help of our readers should they extend it, to sound con clusions on the subject. President Jose Paez of the railroad, that should of course tap the zone, is President Quezon’s shrewd choice to head the foreign-trade zone committee. It is our understanding that Malacanan backs the project with enthusiasm. And that is about as far as our understanding goes, save that we know that elaborate plans were worked out for such a zone on the Tondo foreshore fifteen years ago—land was to be reclaimed and freight piers built in conjunction with a railway terminus. In general it can be said that the reclaiming of fore shore is justifiable in itself. All land reclaimed from the bay at Manila is a means of modernizing the city. Why not the Tondo reclamation proceed, independently of the use for foreign-trade zone purposes to which it might be put? For if never so used, at least it will be well utilized in a city that grows so rapidly and enjoys such consistent ocean commerce as does Manila. The Port Area south of the river, well drained and with wide streets, is warrant in itself for effecting a similar pro ject north of the river. As we recall, the Tondo recla mation involves even a larger tract than the Port Area. Then go ahead, it would be well to have such land in the ownership and management of the government. Just Little Things (Continued from page 5) presentability insisted upon. Hongkong therefore has a finished appearance almost wholly wanting in Manila, where the authorities seem never to have decided pre cisely what type of building to approve nor what ma terials and decoration to require. Hongkong approaches the prospective builder more formally, and he her—to their mutual advantage in the end. What will Shanghai be? • In many wavs Manila surpasses Hongkong, and some Hongkong business men envy Manila her vast contiguous hinterland as well as her' convenient geographical and political connection with the whole Philippine archi pelago. It is mainly a matter of building up, and espe cially, building up a character in Manila attractive enough to induce visitors to the Far East to wish to see the place. Hawaii has her beach, Hongkong her shops and hotels where you are happy merely to ramble, buy, and take your ease. Manila has her evening dancing, but ought to have a daytime supplement. She will get hun dreds more tourists when she solves this little problem. They roll through Hongkong, positively gay in being left- to their own devices. —W. R. December. 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 1 Three Musketeers with Springfields • H. L. Heath, Percy Hill, Thomas Leonard Percy A. Hill’s life in the Philippines illustrated the callowness of the young sol diers who settled down here after the sol diering ended. Not knowing their worth, and how the challenge of experience would bring it out, they made casual associations during their early years, often at lonely places in the provinces, that they soon grew out of—soon became too big for, and soon found it burdensome to tolerate. Hill came to the Islands a cavalry soldier, enlisted from New York. Thirty years ago, after a few years as a lieutenant of constabulary, he took up about 150 hectares of public land in the village of Bantug, jurisdiction of the town of Munoz, Nueva Ecija, in the broad central valley of Luzon. Employing tenants and introducing no innovations save unusurious charges on the advances tenants always need between one crop and another, Hill developed this place into an irrigated rice plantation worth about •’80,000. From this place he gained his living, while he gave his personal time to the avocation of a philatelist. At sundown Friday, July 23, he was foully, cold-bloodedly and bru tally murdered in his home as he sat at table reading the morning paper and wait ing to be served supper. The gang of men who did this seem to have numbered eight Percy Hill at least. Captain Severo Cruz in command of constabulary at Cabanatuan, the provin cial capital, together with the new State Police and the town police of Munoz was at once on the job and soon made many arrests that have since been followed by confessions. It is astounding that some of the killers seem to have been Hill’s neigh bors. One or two well-known men of Nueva Ecija may have been leaders of the plot to do Hill to death—subsequent robbery of his strong-box cloaking the sanguinary mo tive of private vengeance. It certainly may be said to Hill s be reaved friends throughout the world, his correspondents as philatelists and merchants in stamps, and to all who knew him through his books and the rice-review column he wrote for this magazine from its begin ning even including July, that the author ities seem to be doing all possible efforts to apprehend the men truly guilty of mur dering him, and to effect their conviction. The funeral was held at the Catholic Cathedral on Plaza McKinley in the Walled City Wednesday afternoon, July 28, Father Kelley officiating. The body rests in the Catholic cemetery, La Loma. Hill was nearly sixty-one years old, but looked to be only in his forties because his life was THE KING OF BEERS Sole Agents THE MANILA WINE MERCHANTS, INC. Largest Wholesale and Retail Liquor Dealers in the Philippine Islands Head Office Retail Branch Office 174 Juan Luna 37-39 Alhambra Tels. 4-90-57 or 4-90-58 Tel. 2-17-61 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 193 7 very regular and he had never known ill ness of any sort. Hill's was a very assertive character; he had enemies, and rejoiced in having them, but they were thought to be men who dis agreed with him in provincial affairs, mainly political matters. He had been a founder of his community, a leader in pro curing the rights and building its communal irrigation system. He had helped many young men homestead in the vicinity, and was not known to have ha‘d differences over the field-water supply since the Cen tral Luzon Agricultural School at Munoz had gone over to the public irrigation sys tem put in by the government some decades ago. Hill and his neighbors kept the old system in which their rights were estab lished, a system they owned. Why such a man was murdered as he was is still to come out. But let us speak of his life. Since the farm took none of his time, but required his presence and at least the bit of bookkeeping necessary to a knowledge INSURANCE For Every Need and Purpose WORKMEN’S COMPENSATION PUBLIC LIABILITY AUTOMOBILE ---~-----------— --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. ELSER. INC. Telephone 2-24-28 — MANILA — Kneedler Building of costs and a clear understanding with the tenants, Hill gave his time to hobbies. Over these he stayed up very late, often till early morning, and would sleep late during the forenoon. Stamps were the hob by he made a trade of; he bought, sold, and collected, and it is said by friends who should know about such things that the collection he left is worth at least as much as the farm, that is, P80,000 or more. Working nightly with this stamps and the writing they entailed, under the light of oil lamps, impaired his sight during the past year—the only infirmity he had. Reg ularly, to the most distant addresses, Hill’s stamp correspondence spread over the world. In these letters he dispensed freehand opinions, receiving back the like from phi latelists high and low. He was also always active in the fraternity’s behalf in Manila, his contentions sometimes jarring witn those of the postal authorities. To a man so individualistic as Hill, there was never but one right way to do anything—his own. But if put down, he grinned. Joviality FIRE MARINE ACCIDENT PLATE GLASS was his very soul; he sought the humorous or dramatic side of every experience, and never failed of finding it. His own exit from this earthy stage, could he have be held it, would have been an episode for his nimble pen; and the story would have said the obvious truth, that the victim of the dastardy was the least frightened of any man in the house. Hill lived and died without a sense of fear. This shows in the way he built his house, a task effected twenty-five years ago—the only visible improvement on the farm beyond the dikes about the fields and the irrigation ditches. The house is spa cious enough, and the desks, cupboards, bookcases and strong Socony Rayo lights about identify themselves as conveniences of its master. But there is no protection, either of life or property. The house is low, rising in the midst of rice fields and not a meter above their muddy level. The shrubbery about, probably for a windbreak rather than ornamentation, is perfect cover for anyone approaching the house stealthily from any direction; and it is instant cover for him who assaults an open window and sneaks away across the paddies. In addition, the low wide windows are not safely secured—a boy ten years old could probably force the best of them, all mere clapboard affairs; and at night, as long as Hill sat reading, or busy with his stamps and letters, doors both front and back were habitually open. This had been quite all right when the house was new, twenty-five years ago. With the influx of a ruffian element into Nueva Ecija, and the restive belligerence of the sedentary tenant element, it had become wholly un safe. It is reported that the men alleged to have murdered Hill say they surrounded him, guns ready, cocked, some coming in the front way, some the back, and he only knew they were there when they tapped him on the shoulder. Then he leaped up, tiger-like and fearless. But they shot him down at once, always aiming for the heart because they had come on an errand of deliberate homicide. (To be concluded next month) INTERNATIONAL BUSINESS MACHINES International Electric Bookkeeping and Accounting Machines • International Time Recorders • International Electric Time Systems • • International Time Signaling Systems • International Sound Distributing Systems • International Fire Alarm Systems • International Watchman’s Systems • International Recordolocks • International Proof Machine for Banks • International Ticketographs • International Certometers • International Electric Writing Machines • International Cosmographs UJflTSON BUSINESS MACHINES CORPORATION MANILA OFFICE: W Telephone 2-42-16 510 Philippine National Bank Bldg. P. O. Box 135 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL -.1 X'rir /'i <><lue< /■ i omi’ri iii xsivi pi 111 irrixi MIXING. N1AVS LT IO DAT! A/eed.1 no mole ait than a ekkamet (AIR-OPERATED) SIZE 25-T TANDEM SUMPUMP Two Sumpumps can be fur nished coupled together as shown, to act as a two-stage pump for higher heads than the standard pump will handle. This two-stage pump, known as the 25-T Tandem Sumpump, is good for heads up to 240 feet with 100 lbs. air pressure or 160 feet at 80 lbs. air pressure and is very useful for dewater ing shafts, etc. The I-R line includes 1000 sizes and types of air compressors, 500 rock drills, paving breakers, clay diggers, hoists, pneumatic tools of all kinds, pumps, diesel engines and much accessory equipment. THE SIZE 25 SUMPUMP If you want your smaller pumping jobs handled quickly and inexpensively, use a Sumpump. It uses no more air than an ordinary "Jackhamer" and will handle 200 gpm against a 25 ft. head. It is compact -one man can carry it anywhere. It will pump clear or dirty water, oil, sewage or moderately heavy sludge. The unit can be depended upon for reliable service no matter how severe the working condition. We believe that one or more of these pumps will prove to be a profitable investment. Phone, wire or write to the nearest I-R office and asAto see a Sumpump in action. Sunishaws Stacks & ^mwluh f^nrks 60-118 SECOND STREET, (P. O. BOX 282) MANILA, PHILIPPINE ISLANDS Ing enroll-Rand 350 BRANNAN ST, H BROADWAY, NEW YORK, N. Y. SAN FRANCISCO /v R/'sro.v/)/.vc, /n inuKr/gvivn ’'/r.x^r i hi nn \7. i\ < »/>» ■ • -w \ii ; m-rvv December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 Three Mines are Soon to Join Ranks and Producers Those who read newspaper notices of progress (oi* lack of it) being made by the numerous mining com panies in the Philippines with care know that the mining industry is going through a gradual process of reorgan ization. Mining companies without any excuse for existence are folding up regularly, and either liquidating and distributing any unspent capital back to the stock holders, or merely going into a dormant state. On the stock exchanges, trading is confined to the better issues, and stock prices go up or down according as news of production figures and dividends declared or omitted is discouraging or encouraging. This is a good thing, since it signifies that the mining industry in the Philippines is growing up and settling down to work. The recent boom was probably necessary, since during boom times investors are more ready to put their money into new ventures than they ordinarily are. Without the boom, it is probably true that the mining industry would not have received the impetus in money and enthusiasm that it did from the general public. While the people were temporarily intoxicated with visions of getting rich quick, and too many suffered severe losses when the inevitable crash came, nevertheless it is true that because of the boom many many years were saved in the development of the mineral resources of the country. Money cannot be made in the stock market, at least for a while. If money is to be made in the mining industry, it must be made from good, down-to-earth min ing and dividends. Almost unnoticed in the general weeping and wailingover lost paper profits, mining engineers have quietly been working to bring promising properties into produc tion. Thus, while some companies have been folding up as'their capital or mineral resources faded away, others have brought their properties to the verge of production of gold. Three of these companies, of which you will likely hear more and more in the future, are the Treasure Island Mining Company; the Santa Rosa Mining Company, and the Capsay Mining Company. Treasure Island will order its mill this month. Santa Rosa has a part of its new mill already installed. Capsay will order its mill in the very near future. Treasure Island refers to the island of Lahuy, off of the coast of Camarines Sur, and Northwest of Catanduanes Island. A group of men consisting of Sam Feld man, Roy C. Tuggle and Jaime M. Reyes, of Naga financed the well-known prospector, Michael Purcell in various prospecting forays about the islands. He dis covered and staked the claims on Lahuy island. The claims were later sold to the Treasure Island Mining Company, and Pan-Philippines corporation now has a contract to develop the claims, on a profit-sharing basis. Pan-Philippines corporation is a comparative newcomer to the mining picture here. It was formed this year by Major J. E. H. Stevenot, J. S. Sampson, Teodoro R. Yangco, Tomas Confesor, and others to operate and develop mining properties all over the islands. This company does not expect to purchase mining claims. It is primarily an operating company. While Pan-Philippines has its engineers at work on several properties today, it has more or less concentrated on the Treasure Island claims from the beginning. Major Stevenot enlisted the help of his brother in San Francisco, a high-ranking Bank of America executive, who secured for Pan Philippines the services of Mr. Orlando Mc Craney, well known mining engineer. Mr. McCraney came out here on the Clipper some months ago, and it wasn’t very long after his arrival that he began saying nice things about the Treasure Island claims. This property will be the first to be brought into production by Pan Philippines corporation. That is to ray, it will be brought into production again—for the (Please turn to page 1.5) The Power House at the Santa Rosa Mill Site Set in a natural sylvan setting—it symbolizes how the mining industry is penetrating the jungle. 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 The Stock Market (Nov, 15th to Dec. 11th, 1937.) The period under review is probably the dullest and gloomiest on record. Trading during the week ending November 27th, was encouraging to brokers, since most issues registered losses of but fractions to 1 and % points. This was less than losses had been for any week for some time. Mine Factors made a slight gain. About 30 issues were traded on the board, and investors entirely ignored favorable production figures. The first upward movement in four weeks came the following week. Mineral Resources was the only stock to show a loss at the close of the period, and it dropped to P0.19 for a loss of a point. Trading volume was much lower than the preceding week, amounting to P403,322.00 at the Manila, and P202,377.00 at the Inter national. This cheery feeling did not long continue, however. Holders of mining shares sold out a low levels all week, apparently in order to get a little Christmas money. Holders made strenuous efforts to find buyers, but the latter kept away from the exchanges most of the time. Total sales were lower than the preceding week, and stocks lost from fractions to 3 and % points. As the JOURNAL went to press, many stocks were hitting pegged levels, and it was apparent that there would be more sales, if the pegs were taken out. Buyers will not buy in many cases, feeling that prices are too high. There is some justification for their attitude, at least in so far as some stocks are concerned. For example: Salacot stopped production last month, and is practically without funds, according to statements to the press. Yet, the pegged price of this stock is quite high. A number of others could be mentioned, which would be unattractive at prices much lower than required by the pegs. The pegged prices are generally conceded to be illegal. Under the law, no stock exchange is allowed in any way to hinder the free sale of shares of stock, or to fix an arbitrary price therefor. The Securities and Exchange Commission is aware of this, but has winked at it, be lieving pegged prices beneficial to the public. December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 Individual members of the two exchanges are con sidering pressing for elimination of the pegs. As far as the JOURNAL could discover through interviews, the general sentiment at the International is in favor of abolition of the pegs, while most Manila Stock Ex change members favor retaining them. The Manila Stock Exchange was also in favor of eli minating the afternoon sessions, in the belief that present volume of business does not warrant but one session; that having one session instead of two would enable brokers to cut down their overhead; and that during present unproductive afternoon hours, brokers could drum up business, in preparation for the following ses sion in the morning. Newspapers had it practically official that the Inter national would fall in line, but the Board of Directors of the International turned down the proposition. Double sessions will continue, at least for the present. Picketing has come into practise at the stock ex change. This month, when brokers were cautioned gently against matching pennies on the floor of the.ex change to pass away the time, some of them prepared placards reading “stopping matching of pennies UNFAIR to brokers!” and marched back and forth on the exchange floor with them. We were unable to learn whether they won their point. Three Mines are... (Continued from page 13) Spaniards worked it, possibly three centuries ago. Their 'workings still show in various places, in some spots practically intact. The mill will have an initial capacity of 200 tons, but work is being rushed to have 100 tons’ production before the next rainy season. The other 100 tons will wait until the rainy season is over. The Santa Rosa Mining Company was incorporated in 1934, with a capitalization of P100,000.00. In 1935, the board of directors obtained permission from the Insular Treasurer to increase the authorized capitalization to Pl,500,000.00. Of this sum, P500,000.00 worth of shares was held in escrow, P240,000.00 for claim owners, and P260,000.00 worth of shares for the old stockholders, as a kind of reward for their early investment in a new company. The board of directors is entirely Filipino, and con sists of Vicente Singson Encarnacion, Sr., President, G. P. Nava, Vice-President and Gen. Manager, P. Angulo, Treasurer, S. Araneta, T. Teodoro, A. Montinola and C. Tuason, Directors. In December, 1936, the company entered into a con tract with the Union Management Company, whereby the latter undertook to develop the company’s claims in Camarines Norte, adjoining the San Mauricio claims. According to R. G. Bergmann, consulting engineer for the Union Management Company, two veins, called the Pelang and the Luna veins, have shown sufficient ore to supply the mill for several years. It has been found unnecessary to develop other discovered veins up to the present time, as development work from the start on these two veins has continued to block out minerable ore in satisfactory quantities. (Please turn to page 53) OCTOBER AU6UST JULY SEPTEMBER NOVEMBER 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 10 3 7 What the Diggers Are Doing SORIANO: One of the Soriano mines presented Andres Soriano, active head of the Soriano interests, with an all-time high production record—a thumping P228,416.58 —upon the latter’s return this month via Clipper from an extended trip abroad. This November figure was made from 8,826 tons treated. Antamok, the biggest Soriano producer, turned in P442.311.66 from 23,261 tons dur ing the month, while reliable old Masbate Consolidated did P215,859.00 out of 54,988 tons. These figures are slightly lower than the October figure for Antamok, but slightly higher for Masbate Consolidated. Mr. Soriano arrived on a Clipper full of enthusiasm and plans for the coming year. He has been gone about six months. MARSMAN: “Two down and two up” was the story with Marsman-managed mines last month. Itogon was down slightly from Oc tober, with P339,019.97 from 30,000 tons milled. Suyoc was higher, producing PI 19,972.91 from 6,266 tons. United Paracale was just a little below October, turn ing out P201,693.61 out of 7,750 tons. San Mauricio beat October with P163,911.25 from 7,221 tons. Mr. Jan Hendrik Marsman, genius of the Marsman organization, returned this month also from Europe. He expressed the proper confidence of a citizen of the Philippines in the future of the country, but was pes simistic about the general feeling in Europe. He said it is hard for Manilans, accustomed as they are to “go the even tenor of their way” to appreciate how jittery Europeans can get, particularly at a time like this, when rearmament is proceeding at a rapid rate. He stated that the slightest incident is frequently magnified in the minds of Europeans into an international affair of grave seriousness. Turning to mining, Mr. Marsman an nounced ambitious plans on the part of the Marsman organization to develop new mining properties during the coming year, all over the Philippines. He spent part of his time in Europe in teresting foreign capitalists in the Philip pines. Mr. Marsman, who has spent a long time in England, accompanied him. Marsman employees are enthusiastic about their companies, if John Barnes is an example. This young man is employed at the Suyoc Consolidated mill, as a shift boss. A graduate of the Colorado School of Mines, he came over here in January of this year to go to work at Suyoc. We met him on his trip over, and when he came down this month for a vacation he looked us up. He says life at the mining camp is very good. The bachelors of the camp live in central houses, while the married couples have little cottages of their own. The bachelors have individual rooms, and house boys to attend to their every want. The JLow Waukesha-Hesselman Engines—four and six cylinders, 20 to 300 HP—burn low cost 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. mean longet Lived engine^ clutckel, lkafgtl, beatingi—tedu.ced maintenance coAtl WAUKESHA-HESSELMAN pression, Spark Ignition ENGINES expand the field of economical application of fuel oil power 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 erigines burning all modern fuels. The ratings range from 12 to 375 HP. Distributors for Waukesha Industrial Emines The Earnshaws Docks & Honolulu Iron Works Second Street, Port Area* Manila. P. I. Branch at Bacotod* Occ. Nee. ’TJoto^sSvwT'Vnc."0 40S Rlzdal Ave. Manila, P. I. WAUKESHA MOTOR COMPANY WAUKESHA, WISCONSIN, U. S. A. Cables: “MOTOR-WAV KESHA” 21-7:37 f /A’ RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE. JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 rooms are free, and all services are also gratis. One complaint he had: he says the married couples get first crack at the JOURNAL, and it is sometimes several weeks before the bachelors get a crack at the current issue. However, he is going to remedy this situation by getting married, probably in the spring. It just goes to show how far some people will go to read the JOURNAL. Barnes, of course, is also enthusiastic about Suyoc as a gold producer. He says the mine should do great things in the way of production from now on. Shift bosses working on the PalidanSuyoc drain tunnel (which now is within the territory of the Suyoc Consolidated) are also enthusiastic. Marsman has worked out a bonus arrangement with them beyond a minimum footage which they must meet, and this bonus, added to their salary, adds up to a very good monthly income indeed. It is good for the Palidan-Suyoc company, since the shifters push the work along at a great rate, and it is obviously good for the shifters. Marsman interests purchased a controll ing interest in the Manila Machinery com pany, of which Mr. A. W. Ralston is gen eral manager, some time ago, from the Atlantic Gulf & Pacific Co. The Manila Machinery Co. sold Coco Grove, Inc., its two new dredges. Another’ important job in recent months has been part of the equipment for the new Santa Rosa mill. BAGUIIO GOLD: Had the biggest pro duction in its history in November, turn ing out P130,974.42, from 7,317 tons milled. This company also declared a dividend of 10% on its stock, .to stockholders of record at noon, December 11th. This is the second dividend this year, the last one, of P0.005, having been declared in June. HAUSSERMANN: Benguet Consolidated was another leading producer to set a new all-time monthly production record during last month, turning out P922,797.88 from 31,086 tons of ore treated. The total out put of the four Benguet producers, Balatoc, Benguet Consolidated, Cal Horr (with Ukab), and Ipo Gold was P2,165,465.22, which is a gain of P13,000 over October. Balatoc was P27,000.00 over October, while Cal Horr and Ipo Gold were each slightly lower. Hausscrmann dividends, although large, were slightly down from last year, due to extensive purchases of equipment and lum ber during the year. Benguet and Balatoc each declared dividends for the last quarter of the year of 30 ctvs. a share, bringing the total yearly dividends of these two Hausscrmann mines to Pl2,000,000.00, which is P100,000.00 below 1936. The 30-centavo dividend of Benguet amounts to Pl,800,000.00, which is the big gest quarterly dividend of the year. Benguet in four quarters declared 25, 20, 25 and 30 centavos respectively; and Ba latoc 35, 30, 40 and 30. "th Floor Telephone 2-33-95 S. J; Wilson Bldg. P. O. Box 2015 Manila, P. I. E. Santamaria & Co. GENERAL BROKERS E. Santamaria A. K. Macleod R. H. Machado Cable Address: “SANTA" Codes: Bentley's Peterson International Wall Street, 1927 Edition This illustration shows McCormick-Deering 50 h.p. Model PD-iO Diesel Engine driving an Air Compressor. McCormick-Deering powered air compressors are popular among Mining Companies for efficiency and economy. McCormick-Deering DIESEL Power Unit PD-40 50 H.P. PD-80 80 H.P. POWER costs go down when McCormickDeering Power Units go on the job. That’s the experience of owners—and it is the best guide to follow when you need power. A comparison of the operating costs of these engines with other forms of power will show you how much money you can save by using McCormick-Deering. McCormick-Deering Power Units are soundly engineered to stand the strain of continuous operation. Heavy-duty construc tion assures years of trouble-free work. And when service is needed, you can depend on it being the best—complete spare parts being carried in stock for immediate delivery. International Harvester Company OF PHILIPPINES 154 M. de Comillas, MANILA Branches: ILOILO . BACOLOD . CEBU . DAVAO . LEGASPI . BAGUIO IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 In addition, Balatoc declared a 50% stock dividend during the year, amounting to P2,000,000.00. It is interesting to note that both com panies declared exactly the same amount in dividends this year—P6,000,000.00 each. Also, while theoretically Balatoc stock should have been quoted on the exchanges at exactly half of its price before the stock dividend, this has not been the case. Even discounting present abnormal conditions, Balatoc stock is quoted currently at appre ciably more than half of what it was be fore the stock dividend. Ipo also declared a cash dividend, pay able November 20, to stockholders of record November 15th. The dividend was 5%. Ipo missed one quarterly dividend this year. JOURNAL readers remember that the latest report to stockholders issued by the Haussermann mines predicted better times for Ipo in the future. TWIN RIVERS: Which makes a nice in come treating tailings that the big pro ducers in the Baguio district don’t want, continues to show good tonnage, better than October. This is due to the fact that, as the water in the creeks recedes, mill ton nage inci'eases. This company averages better than P30,000.00 a month. EAST MINDANAO: This company is proud of its mill extraction, which averages 90% or better. The company did better than P50,000.00 during November, which is better than the October figure of P48,589.00. John Smeddle is the acting man ager of the company’s mine in Surigao. The mine is handicapped by the rains which have started down there. | ATOK CHRISTMAS PRESENT: Atok Gold Mining Company, which operates the Big Wedge property, declared a dividend this month of 10%, payable to stockholders of record as of December 15th. Dividend checks issued December 20th. This is the first dividend Atok has declared this year or last. As we analyze the balance sheet, however (and we are not a certified public accountant) it seems to us that this com pany is in a very strong financial condi tion. We don’t pretend to know the poli cies of the company, but we suspect that it is declaring only this picayune dividend (picayune compared to what it could de clare if it were so minded) in order to conserve its growing capital, with a view to acquiring and developing more and more mining properties. Woo Uy-Tioco & Naftaly FINANCE & MINING INVESTMENTS CORP. General Merchants — Investments — Loans — Insurance STOCKS AND BONDS - -----Members: MANILA STOCK EXCHANGE FINANCE & MINING BROKERAGE 322 San Vicente Stocks & Bonds Tels: 2-30-75 — 2-17-91 —2-93-02 — Cable Address: WOOSTOCK ( 2-18 39 M. CUAOERNO 205-207 CRYSTAL ARCADE FHONES -j 2-42-65 UNION MANAGEMENT COMPANY Capital ....................................................... ............................................P3,000,000.00 General Managers of: Santa Rosa Mining Company Abra Goldfields Company Zambales Chromite Mining Co. Nagcuartelan Mining Company Surigao de Oro, Inc. Big Lode Mining Company Executive Committee: V. SINGSON ENCARNACION......................... ......... President G. P. NAVA.......................................................... ........ Vice-Pres. & Gen. Manager SALVADOR ARANETA.................................... ...........Legal Counsel Engineering Staff: H. NORTON JOHNSON .................................. ........ Chief Consulting Engineer GLENN L. ALLEN............................................... ........ Metallurgical and Mining Engineer RAOUL G. BERGMAN .................................... ........ Mining Engineer & Chromium Expert C. STRINE ............................................................ ........ Construction & Mining Engineer DONALD D. MacLELLAN................................ ........ Geologist and Mining Engineer The Union Management Company is in a position to finance, develop, operate and manage mining properties of merit. Office: f 2-30-85 9 Plaza Moraga Tel. Nos. J 2-30-88 [ 2-65 32 Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Culled from the News DEVELOPMENTS, INC. Signed a sixmonths contract with Layog Gold Mines, Inc. to inspect and explore the latter’s properties on Cebu and Leyte. Frank Berkenkotter, of Developments, is in charge. PARACALE-TIGBI MAKES ANOTHER SETTLEMENT: Paracale-Tigbi Mining Co., Inc., which figured in the news recently because of its fight with Walter Robb, for merly its president, over control of the corporation, has settled a dispute with the Mambulao Central Mining Company, an Alvir company, over some claims in Camarines Norte. This is the second settlement of major importance which this company has made this year. It settled the dispute with Walter Robb and associates some months ago. NORTH CAMARINES Gold Mining Co. last month increased its capitalization to Pl,000,000.00 from P500,000.00. A recent report to stockholders states that 14,000 tons of ore, valued at Pl,500,000.00 have been positively blocked out. JUDGE HAUSSERMANN SAYS U. S. MUST REMAIN RESPONSIBLE: Judge John W. Haussermann, admired alike by Filipinos and Americans for always stat ing his position frankly and honestly, stated last month that America should do the following things, even if Independence is granted the Philippines: 1. Negotiate treaties with all powers, wherein they agree to respect the territorial integrity of the Philippines. 2. Renounce the light of intervention here, but retain the right to take such reasonaDle measures as may tie necessary to saieguard the rights oi ioreigners in the rhinppmes, should a newly-created Phil ippine Republic iail to do so; 3. Continue present free trade relations with the Philippines at their present volume. These steps, the Judge said, the United States owes it to the Philippines to take, since by its occupation of the Islands, it assumed a moral duty which it can not now lay aside. At the same time, the Phil ippines would be given a free hand to work out their own destiny. BATANGAS MINERALS: Undismayed by the famous report of Bureau of Mines engineers, submitted to the Securities and Exchange Commission, to the effect that Batangas Minerals has no mineral deposits on its claims of commercial value, the com pany is proceeding with exploration and development work. G. T. Geringer sub mitted a report to the company early last month, outlining a program of develop ment, which Claude E. Fertig, superin tendent at the mine, is following. Work POWER—ECONOMY—PERFORMANCE Refer Your Washing Problems to Allis-Chalmers The Blade Mill shown here is a new development in Ore Prepara tion. It is specially adapted to washing materials carrying large percentages of clay and primary slimes. The Blade Mill will handle rock up to 14 inches. Allis-Chalmers build a complete line of Scrubbers, Log Washers, Sand Washers, Scrubber Screens and Vibrating Screens, and Straight and Conical Trommels. THE EARNSHAWS DOCKS & HONOLULU IRON WORKS 60-118 SECOND STREET P. O. Box 282 PORT AREA BRANCH OFFICE Tel. 2-32-13 MANILA. P. I. BACOLOD. OCC. NEGROS IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 is proceeding on several levels to connect with lead-zinc ores indicated by a recent geophysical survey to exist and, accord ing to Mr. Roy C. Tuggle, president of the company, the lower level is expected to expose ores of shipping grade in the near future. TAMBIS GOLD: A small placer prop erty, this company handled 34,251 cubic yards of gravel during October, from which 189,555 oz. of gold valued at Pll,373.30 were extracted. KEELER HITS NEW MINING LAW: Ralph Keeler, Mining Editor of the Manila Daily Bulletin, and publicity man for the Marsman interests, in front-page editorials 20 cbft. Sl'oping door type in the Bulletin described the new Philip pine Mining Law as frightening mining interests, and as being potentially capable of destroying the mining industry here. He said that it retards free development of the mineral resources of the country through excessive regulation by the Gov ernment, and cited the Encyclopedia Brittanica as authority for the proposition that, any country benefits in the long run through following a policy of freedom of individual initiative in developing mineral resources. The mining law, doing away with the old system followed since 1902, of allow ing patents to be issued to private parties locating mining claims and substituting KOPPEL Standard Phil ippine Type AllAround Dump Mine Car, Improved Matheson Type, 18" gauge, with Special Dust-Proof and Fully En closed Benguet/Balatoc Type Running Gear with Extra-Heavy Cast Steel Wheels and genuine Hyatt Roller Bearings 1 % " x 4". therefor a system of leases for a term of years, is extremely restrictive of new cap ital. Also, it is inequitable, since it denies patents to those who have unpatented min ing claims (very few patents were issued prior to the passage of the Act). The first editorial, printed on December 11th, made a plea for a mining law made by miners familiar with mining problems, rather than by legislators. In large part, of course, the Philippine mining law is a law made by miners, since it is mostly copied from the California law—a law made by the 49’ers, and adopted by the California legislature. One other law which has worked out very well, al though not made by legislators, is the Cali fornia Law of Waters, which throws over entirely most of the law regulating the use of waters as it exists in England, and as it was carried to the United States. The triumph of miner-made law was dramatized in the movies some time ago, in the picture “Sutter’s Gold." Old John Sutter migrated to California before the gold rush days, and, somehow, secured a very large tract of land. When gold was discovered on his land, he assumed it was his by right. The rest of California re fused to accept this thesis, and went on his land staking it off into mining claims. Sutter spent the rest of his life fighting in court for the principle that “to the owner of the surface belongs all above and below it,” only to lose in every court. AMBASSADOR DOWN: November pro duction for this small producer was P15,074.00 from 1,255 tons, compared with P19,222.32 for October. 20 cbft. square box type 14 cbft. sloping door type Used and Approved by Philippine Mines. KOPPEL (PHILIPPINES) INCORPORATED MANILA ILOILO 75 Dasmarinas Mpelle Loney PRODUCE EXCHANGE WILL TAKE STEPS: The National Produce Exchange has not been as successful as it was hoped when the exchange was first established, a prominent member of the exchange told the JOURNAL. While the principal reason for this is probably the fact that growers are as yet uneducated to the' system of selling their unharvested crops on “futures” through the facilities of the exchange, the present organization of the exchange, with the Government one of the principal own ers, has not worked out in practice, he declared. It is now generally recognized that a program of education among the growers will have to be started, in order to get them to use the facilities of the exchange, rather than to dispose of their produce by the time-honored method of “spot-selling,” i. e., selling on the spot from grower to buyer, without intervention of a middle man. Meanwhile, it is anticipated that the Ex change itself will shortly be reorganized, and the matter of Government membership thrased out. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 Spot trading on the exchange has not grown sufficiently in volume to warrant establishment of regular hours of trading. This month, 3:00 to 4:00 on Tuesday and Friday afternoons were established for this trading. Futures selling will commence January 3rd, and the hours for this will be from 10:00 to 12:00 a. m. every morn ing. The aim of the exchange members is eventually to operate the exchange precisely as the Chicago commodity exchange is operated the JOURNAL was told. To this end, several changes in exchange rules will be necessary. MINE OPERATIONS, INC. R. C. Staight, president of this company, in a special report to the stockholders last month, described the financial position of the firm as excellent, and was enthusiastic about progress and prospects of the com pany’s Capsay development. According to the report, stockholders subscribed to 2,924,336 of a new issue of four million shares, and over 85% (at the time of the report, published in local papers on November 26th) had been placed in desirable hands by the underwriters, Syn dicate Investments, Inc. Closing paragraphs of the report were as follows: “Summarizing technical re ports, it appears certain that in Capsay your company will, in a reasonably short space of time, be the operator of an excep tionally good grade producing mine, pos sessing every indication of developing into a large tonnage operation. “Influenced by the depressing atmosphere of the local share market, it is perhaps difficult for some shareholders to appreciate our unusually favorable prospects, conse quently, the management will welcome visits from those interested, and will see to it that such visitors receive from capable hands adequate information on what we opine is a very bright spot on an otherwise gloomy horizon.” FOREIGN CAPITAL? Rumors have been passed enthusiastically about what is left of “financial circles” during the last few weeks that foreign capital has at last been interested in Philippine mining shares, particularly dividend-paying stocks, as good speculative and investment buys. Many of these rumors centered about Jan Hendrik Marsman, head of the Marsman interests, who arrived this month from Europe. While Mr. Marsman made no state ment whatever indicating that he had in terested any foreign capital, it was gen erally believed that this was one of his purposes in making his trip in the first place, and many said that he had succeeded in interesting London money. At the time the JOURNAL went to press, it was being buzzed about that there was a big dividend due in Antamok, of possibly 20% and an extra 10% to boot. It was said that Andres Soriano had been suc cessful in interesting foreign money here, CHARTERED BANK OF ,NAD‘AD cXTaRAL,a Capital ................................................................ £3,000,000 Reserve Fund ................................................ 3,000,000 Reserve Liability of Proprietors ....................... 3,000,000 MANILA BRANCH ESTABLISHED 1872 SUB-BRANCHES AT CEBU, ILOILO AND ZAMBOANGA Every description of banking business transacted. Branches in every important town throughout India, China, Japan, Java, Straits Settlements, Federated Malay States, French Indo-China, Siam, and Borneo; also in New York. The Bank’s London Office undertakes Executor and Trustee business, and claims recovery of British Income-Tax overpaid, on terms which may be ascertained on application. Head Office: 33 Bishopsgate, London, E. C. C. E. STEWART, Manager, Manila SOUTHWESTERN ENGINEERING COMPANY OF P. I., INC. ORE TESTING ASSAYING MINE, MILL, AND POWER PLANT DESIGN ORE MILL CONTRACTING If you have a metallurgical problem, or are planning erection of a mill, why not consult us? There is no charge for preliminary consultation. SOUTHWESTERN ENGINEERING COMPANY OF P. I., INC. 506-508 Calle Aviles San Miguel Manila, P. I. Telephone: 2-35-96 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 19 37 $nkntyama ^prrir Sank ---------- £ t D . (Established 1880) HEAD OFFICE: YOKOHAMA, JAPAN Capital (Paid Up) ...................................................................................... Reserve Funds ................................................................................................ Undivided Profits ........................................................................................... Yen 100,000,000.00 134,400,000.00 10,745,726.93 MANILA BRANCH 34 Plaza Cervantes, Manila S. DAZAI, Manager Telephone 2-37-59 Manager Telephone 2-35-28 Import Dept. Telephone 2-37-5S Export & Current Telephone 2-37-68 Remittance & Deposit Dept. Deposit Account Dept. Telephone 2-37-55 Cashier & Accountant CHICAGO PUMP CO. ELECTRIC PUMPS FOR ALL SERVICES Double-Suction, Single-Stage Horizontally Split-Case Pump for House Pumps Fire and Booster Service Circulating Water Water Supply Pneumatic Water Systems Brine Circulating Air Washer Circulating Industrial Services Vertical Enclosed-Shaft Non-Clog Pumps Features 1— Tongue and Groove construction throughout assures perfect align ment and vibrationless operation— two highly desirable features. 2— "Automatic Alternator,’’—automatic ally transfers the operation from one pump in a duplex set to the other—thereby equalizing wear on both pumps, preventing rust and clogging and keeps both pumps in good running order. 3— “Micrometer Adjustment” of shaft and impeller assemblys enables op erator to lower or raise impeller in pump casing with slight effort. 4— Bearings are placed every 4 or 5 feet on pump leg. Long pumps have intermediate coupling to faci litate installing on job. Write for information to our nearest office PHILIPPINE ENGINEERING CORPORATION Cebu — Bacolod — MANILA — Iloilo — Cotabato although neither Mr. Soriano, nor any offi cial connected with the Soriano interests, intimated such a thing. It may be that the wish has been father to the thought, in all these rumors. METAL PRICES CONTINUE DECLINE IN DULL TRADING * Reduced steel operations and general business decline leaves market sluggish during November. (By the United Press) NEW YORK, Dec. 16—Continued reduc tion of steel operations and general busi ness uncertainty resulted in a general de cline in all metal prices during November and the early days of December, according to the monthly summary of the magazine Metal and Mineral Markets. The increase in stocks of domestic refined copper was one of the principle unfavorable factors. Lead prices were slightly firmer, although refined domestic stocks increased 9,904 tons in October and continued to pile up in November. Lassitude in several foreign markets, combined with the virtual certainty that business aid proposals will be deferred un til the regular session of Congress, con tributed to the general decline. Definite lack of interest on the part of domestic copper consumers was reflected throughout the month, although London prices advanced sharply for a brief period in mid-November. Actual consumption of copper in the do mestic market is generally estimated about 55,000 tons a month. The fact that deli veries have been running at a lower level points to a reduction in stocks in the hands of consumers, market observers believe. This created optimism that the increased stocks of producers may soon be erased. Production of refined lead exceeded ex pectations. The industry had counted on a gain of not more than 5,000 tons in October. The downward trend in prices brought in a larger flow of both ore and secondary metal. Eventually the lower prices now prevailing will restrict supplies, according to producers. Lead stocks at the beginning of Novem ber totaled 100,646 tons, against 90,742 tons a month previous and 183,430 tons a year ago, according to the American Bureau of Metal Statistics. Zinc consumers displayed practically no interest to buy metal, even following the announcement November 22 that the price named for prime western supplies was re duced from 5.75 to 5.50, St. Louis. Many in the industry believe large consumers have ample supplies of metal on hand or contracted for to take care of their reduced requirements. Sales of prime western zinc during the week ended November 25 were less than 500 tons. Shipments totaled 3,069 tons, reducing unfilled orders to about 66,000 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 H. A. WENDT & CO., LTD. Consulting Engineers — Geologists — Assayers — Mine Management — Diamond Drilling Contractors. Du Pont DYNAMITE CAPS FUSE Stocks in Manila for Immediate Shipment 118 T. Pinpin Manila, P. I. Telephones: 2-26-27 2-26-28 2-26-29 Cable “WENDT” Manila P. O. Box 3228 Indent Orders Accepted for Future Delivery SMITH, BELL & CO., LTD. Agents Cebu — MANILA — Iloilo . To All Mining Companies in the Philippines Tabacalera C I G A R S and CIGARETTES On sale in Manila and Throughout the Provinces We have cigars and cigarettes of all grades and prices, and send price lists promptly to all mining companies on request. Telephone 2-42-40 Or Write to the Sales Department, Cigars and Cigarettes TABACALERA P. O. Box 143 Manila, P. I IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 tons. Current business was confined almost entirely to small consumers who did not participate in the buying movement last summer. The tin trade was generally dull, with sporadic fluctuation in prices. Malay op position to the proposed reduction in out put on the grounds that a drastic revision of standard tonnages is in order created some confusion. The tin-plate industry, which has been operating at capacity until recently, fell to 60 per cent of capacity during most of November. Large consumers of quicksilver could not be interested at current quotations and sellers in most instances regarded prices at little more than nominal at $83 and $85 per flask. The silver market has fluctuated over a wide range because of uncertainty whether the world silver agreement would be re newed when it expires at the end of the month. Heavy selling of Indian supplies, combined with large importations in Lon don of Chinese supplies, broke the market early this month. AVERAGE METAL PRICES FOR NOVEMBER, 1937 (By United Press) Gain or Loss from Oct. COPPER Electrolytic, Domestic refinery .. 10.797 — 1.041 Electrolytic, Export, refinery ... 9.850 — 1.357 London, Standard Spot................ 39.321 — 6.063 London, Electrolytic, bid............ 44.023 - 6.596 LEAD New York..................................... 5.033 — 0.707 St. Louis ..................................... 4.883 — 0.707 London, Spot................................ 16.706 — 1.553 London, Forward ........................ 16.714 — 1.604 SILVER AND STERLING EXCHANGE Silver, New York per oz............... 44.750 Unchanged Silver, London, pence per oz......... 19.707 — 0.235 Sterling Exchange, “checks’* .... 499.467 + 4.072 ZINC St. Louis....................................... 5.630 — 0.455 London, Spot ............................... 15.808 — 1.941 London, Forward.......................... 15.970 - 1.985 TIN New York, Straits ...................... 43.299 — 8.355 London, Standard Spot................ 190.477 — 33.392 OTHER METALS Gold, per oz., U. S. price............ $35,000 Unchanged Quicksilver, per flask.................. $83,435 — 2.705 Antimony, domestic .................... 15.848 — 1.087 Platinum, refined, per oz............. $43,652 — 4.908 Cadmium ..................................... 142.500 Unchanged Aluminum, 99 + % per cent .... 20.000 Unchanged CHROMIUM Chromium, 97%, per pound .... 85.000 Unchanged MANGANESE ORE 52 to 55%, c.i.f. Atlantic ports .. 40.000 — 4.000 (Domestic quotations, unless otherwise stated, are in cents per pound. London averages for copper, lead, zinc, and tin are in pounds sterling per long ton. Ster ling exchange, checks, is in cents. New York silver is for foreign metal.) I JUST AS SURELY AS THE EARTH YOU MORE SELL” MORE PEOPLE TELL —THE PEOPLE YOU MR. ADVERTISER: The MANILA DAILY BULLETIN Reaches Your Prospects — People Who Have the Money to Pay for the Goods You Have to Sell. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL £AST ASM .4 Modest Attempt to Report the Pacific Drama THIRSTY??? The California- Florida Company of the Philippines 4! Nagtahan Order by calling Order 6 bottles Tel. 6-78-54 at a time IX RFSPOXO/XC, TO AOVF RTISF MFXTS PLFASF~MFXTIOX THF AM F RIO AX CHAMRFR OF COMMFRCF lOL’RXAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 Arms Race in Asia • By WILLIAM HENRY CHAMBERLAIN The Far East is arming competitively to the limit of its financial and economic re sources. This was the strongest single im pression I gained from a recent trip which took me from Tokyo to Singapore and back. In the course of the journey I visited Cen tral and South China, the Philippines, Malaya, Siam, French Indo-China and For mosa. For several reasons the oriental arms race has made less impression on public consciousness than the more obvious and spectacular race for military supremacy in Europe. For one thing, the countries af fected are much poorer and are hence less able to approach perfection in equipment with weapons of destruction than are the leading European powers. Only the frontier between the Soviet Union and Manchoukuo has bristled with fortifications in the European style. Distances are greater in the Far East than in Europe, and sea power, which is less demonstrative than are land armaments, is relatively more im portant. So the casual wanderer in the Orient has been less impressed by visible war preparations than he would have been ;n Europe. But the Far Eastern arms race has been none the less a reality. Every East Asian country is panting and stag gering under a burden of armament that has been growing heavier from year to year, and thait shows no sign of abating. Consider first the position of Japan. Ap propriations for the army and the navy have approximately trebled since the seizure of Manchuria. (In the fiscal year 19311932 the army received 227,480,000 yen, the navy 227,120,000 yen. The corresponding figures in 1937-1938 are 704,900,000 yen and 658,600,000 yen.) The fighting services ab sorb almost half of the record budget ex penditures, of which one quarter will be covered by floating new bonds. If one adds the interest charges on the national debt that has grown by more than fifty per cent since 1931, very little is left for ordinary government expenses. Many of the features of the controlled economy which is so characteristic of the Soviet Union, Germany and Italy today are being forced on Japan piecemeal be cause of the exigencies of a military pre paredness program which is out of propor tion to the country’s resources and real economic strength. Steel at the present time, for instance, is practically reserved for the needs of the army and navy. Be cause of the acute shortage and the bound ing world price of this most necessary in dustrial raw material, new public buildings are obliged to get along with substitutes for steel. Control over imports is constantly tight ening; and a rationing system, which would place the demands of the fighting services first and those of the ordinary consumer last, is in course of preparation. What is even more discouraging to thoughtful Japanese than the sacrifices which have already been made in the name of national security is the fact that there seems to be no end to the process. The increased monetary outlay has not been wasted; Japan’s forces on land and sea are much stronger than they were six years ago. But from the relative point of view Japan’s intensive armament has been a Sisyphus affair; its strength vis-a-vis its principal rivals has diminished rather than increased. Japan is now maintaining in Manchoukuo the largest military establishment it has ever possessed on the mainland. The wide rolling plains and wooded hills of Man churia have represented both an arsenal and a training-ground for the Japanese army. Military control is much more sweeping in Manchoukuo than it is in Japan proper. The whole economy of the new state, the railway, road and harbor con struction. the preeminent attention bestowea on such industries as chemical, cement, iron and steel, oil refining, all are dictated by strategic considerations. And Japanese peasant conscripts are receiving a realistic training in warfare, at least of the guer rilla type, when they hunt down the men whom the Chinese call insurgent “patriots" and the Japanese “bandits." But, swiftly as Japan’s strength ha,s grown, Russia’s military preparations h^ve gone forward at a still more rapid tempo. Japan can scarcely feel much sense of security when it knows that at Vladivostok is a large concentration of Soviet bomb ing airplanes, capable of raiding Tokyo within three and a half hours. The Soviet Far Eastern army is immensely more for midable, as a fighting force, than the mas ses of troops, badly led and poorly supplied, which the czarist regime poured into Man churia during the Russo-Japanese War of 1904-1905. The Soviet and Japanese armies are among the most secretive in the world. Accurate official figures about the forces which face each other along the far-flung curved frontier of Northern Manchoukuo are impossible to obtain. But there is gen eral agreement that the Soviet forces in the Far East are in the neighborhood of 250,000; few observers are inclined to estimate the Japanese forces in Manchoukuo at more than half of that figure. There can be little doubt that the Soviet Far Eastern army is also definitely superior to the Kwantung army, the Japanese force of occupation in Manchoukuo, in airplanes, tanks and armored cars. Indeed the Jap anese army has just entered on a special arms replenishment program, calling for an expenditure of 2,000,000 yen, spread over several years, for the purpose of increas ing the quantity and enhancing the quality of its aviation, mechanized and motorized units. But there is certainly no guaranty that the Soviet Union, which has almost two and a half times Japan’s man power and is vastly richer in coal, iron, oil, gold and other natural resources, will not move ahead with at least equal speed during these years. Japan’s comparative armament status seems equally bleak in the naval field. Great Britain has launched out on an arms ex pansion program which calls for the annual expenditure, over the next five years, of approximately £300,000,000—a sum which is almost double the entire Japanese an nual budget. Much of this expenditure will be for warships; and hitherto America has adhered to the principle of naval parity 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 with Great Britain. Japan’s military and naval leaders have not yet found the answer to the challenge implied in the following passage in the speech which Mr. Yukio Ozaki, veteran liberal parliamentarian, del ivered before the last session of the Diet: "The army says it needs money, but the essential need is men. Japan has a popu lation of only 70,000,000; the Soviet Union and China have hundreds of millions. The essential factor of the navy is money. But Great Britain and the United States out strip Japan in wealth by the difference between clouds and mud.” Japan’s present position in the arma ments race is that of a runner who is beginning to lose his wind. One ominous symptom is that steep price increases are beginning to nullify the effectiveness of the larger military and naval appropria tions. Japan must face the full brunt of the world-wide rise in the price of base metals, because much the greater part of its important raw materials, with the ex ception of coal and copper, must be im ported. Moreover the steady increase in budget appropriations and the diversion of large sums to war production are produc ing inflationary effects. The cost of living, Which had been creeping upward steadily but very slowly after the devaluation of the yen in 1932, took a sharp jump during the first months of 1937. Japanese labor, docile and weakly organized as it is, began to show signs of restlessness. Strikes mul tiplied, and all-around wage increases which will raise the costs of production and make the army and navy building programs more expensive seem unavoidable. Japan at the present time is in the peculiar position of being faced with many Grini-faced Members of Japan’s Cabinet of the economic problems of the modern style militarized dictatorship without having gone over to full-blooded dictatorial rule. This discrepancy, as much as any other single factor, accounts for the chronic uncertainty of Japanese political life, for the frequent changes of Cabinet and the strained relations between the Cabinets and the Diet. The Soviet Union has made great military and economic efforts to keep ahead of Japan in the armaments race. According to an estimate of the Foreign Policy Asso ciation, the Soviet Union led the world in military appropriations in 1936, with an expenditure of $3,000,000,000. Japan’s com bined military and naval outlay in the same year was approximately $300,000,000. Even if one allows for some exaggeration of the real value of the Soviet expenditure, be cause of the uncertain purchasing power of the ruble, there can be little doubt that the actual military preparedness effort of the Soviet Union was considerably in excess of Japan’s. The Soviet Union is much richer than Japan in natural resources and has been placing at least an equal strain on the endurance of its population. While no foreign observer has been per mitted to make any detailed investigation of the Soviet military zone in Eastern Si beria, it is generally recognized, by Jap anese military experts as well as by other observers, that the Soviet position has greatly strengthened during the past few years. There is now not the slightest chance of overrunning this vast but sparsely populated territory by means of the sudden raid that might have been suc cessful in 1931 or 1932. Steel and con crete fortifications have been erected at the more accessible points along the Amur and Ussuri rivers; a flotilla of submarines at Vladivostok threatens the security of Japan’s sea communications with Korea in the event of war; the Soviet air concentra tions have been noted. The double-tracking of the Trans-Siberian Railway, now almost completed, promises a swifter flow of re enforcements and supplies. Fully realizing that distance is still Rus sia’s greatest handicap in a war with Japan, the Soviet military leaders have gone to great pains to make their Far Eastern army as nearly self-sufflcient as possible. Vast quantities of provisions, sup plies of all kinds and oil, so necessary for* the mechanized units, have been stored with a view to making the army independent of the supplies from Russia which might be cut off or interrupted. Russians, like Japanese, have been obliged to make considerable sacrifices in order to promote a national preparedness effort which has been projected on a twopower scale, since Soviet leaders have fre quently expressed the conviction that their country will ultimately be compelled to fight Germany in the West and Japan in the East. Food conditions, while they have undoubtedly improved from the incredibly low level of the hardest years of the first Five-Year Plan, 1931, 1932 and 1933, are still unsatisfactory, if one may judge from the prices of foodstuffs (as compared with the wage standards) and from Soviet figures of livestock, still well below the prewar and 1928 numbers. The manufacture of consumers’ goods is still stunted as to quantity and quality in order to feed the insatiable maw of the war industries. Despite or perhaps because of the inten sive competition in arms, the prospect of a Soviet-Japanese war seems to be receding rather than advancing. A kind of uneasy equilibrium, resting on tanks, airplanes and bayonets, has been established along the great rivers, the Amur, the Ussuri and the Argun, which mark the new RussoJapanese military frontier. Hayashi’s re cent statement that there have been twentyfour hundred border incidents between Russia and Japan since the establishment of Manchoukuo is capable of an optimistic as well as of a pessimistic interpretation. If it shows that there has been a con spicuous absence of good will in frontier relations, it also shows that neither coun try has been disposed to take advantage of innumerable pretexts for resorting to large-scale hostilities. China is another active participant in the Far Eastern arms race. Over thirty per cent of the' last national budget of 990,658,450 Chinese dollars (a little less than $300,000,000) was earmarked for military expenditures. A considerable part of the provincial revenue certainly goes for troop maintenance; and the total outlay for arDecember, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 mament is further swelled by indetermin able contributions from funds which are at Chiang Kai-shek’s personal disposition (the lucrative opium revenue, for instance, which does not appear in the budget) and by reconstruction projects of a strategic char acter. China has made a special effort to build up an efficient air force. Last year, Chi nese purchases of aeronautical material in the United States exceeded those of any other power and were valued at $6,872,000, American money. A large German military mission, headed by General Von Falkenhausen, has been stationed at Nanking for several years. While it has been notably adverse to publicity, its services are be lieved to have been especially useful in training the new type of Chinese officer, well versed in modern warfare and devoted to the state, not to any private war lord, and in strengthening the defenses which have been set up on the hills overlooking Nanking. Military training is now obligatory for Chinese students and government em ployees. China’s plans for a war precipi tated by Japanese aggression have been framed on the assumption that the coast towns could not be held, in view of the ■overwhelming Japanese naval superiority. Strategic railways, of which the most im portant is the one connecting Canton with Hankow and the Yangtze Valley, and high ways to such remote centers of China’s huge interior as Chungking, Kweiyang and Yunnanfu, have been and are being rushed to completion. Arsenals have been estab lished at places which are reasonably safe against air attack,* such as Sianfu, scene of Chiang Kai-shek’s detention a few months ago, Chengtu, the capital of Szechwan, Chungking, on the upper Yangtze, and Nan ning, in Kwangsi Province. It is not only the large nations of East Asia, Japan, China and the Soviet Union, which are arming as rapidly as financial and economic resources permit. The spirit of intensive rearmament has spread to the smaller countries as well. My trip took me from China to the Phil ippines. And one of the first sights that strikes the visitor to these green, palmfringed islands is the number of new camps where the first conscripts of the Philippine national army are learning to drill, march and shoot. The Philippines until very re cently were guarded only by a force of 4,000 or 5,000 American troops, concentrated in and around Manila, and by 6,000 Philip pine Scouts, Filipino soldiers who were enlisted in the United States army. The American troops will be withdrawn as soon as the islands acquire the status of full independence—which will be on July 4, 1946, or perhaps, by arrangement, even earlier. What was more important than the physical presence of American troops, who have not seen action in the Philippines for many years, was the previous certainty that an outside attack on the islands would en tail war with the United States. With a view to filling up the large gap which will be left in the pattern of national security when this assurance disappears, the Com monwealth government has put into effect a universal service defense scheme which was worked out by Major-General Douglas MacArthur, who has been serving as mili tary adviser to President Quezon. Under this scheme 40,000 Filipinos will receive six months of camp training every year, so that a trained reserve of several hundred thousand men will be built up within a decade. General MacArthur, in conversation with me in Manila, expressed enthusiastic con fidence that the Philippines, as a result of his scheme, would be able to defend them selves against any invader. He emphasized such points as the difficulty of effecting large landing operations in the face of ac tive opposition, the rugged character of the Philippine coastline, the adaptability of the forests and jungles to prolonged guer rilla fighting. 'Not all observers are so optimistic about the ability of the islands to defend themselves against an attack in Can These Maeses Be United? force from Japan. There is a disquieting possibility of air raids; the northernmost of the Philippines can be seen on a clear day from the southern promontory of For mosa. It is not clear how expensive air craft and naval units can be purchased out of the annual allotment of 16,000,000 pesos ($8,000,000) which has been set aside as the permanent military item in the Philip pine budget. But, whatever the future results may be, the Philippine government has committed itself to a program which involves the creation of the largest organ ized armed force the islands have seen since the times of Magellan, or before. The seven thousand islands and islets of the Philippines merge, toward the south and southwest, with the vast archipelago of the Netherlands Indies, where over 65,000,000 Malays and other natives are un der the rule of a tiny country thousands of miles away in Europe. Intensive Jap anese commercial penetration, rate wars between Japanese and Dutch shipping lines and loose talk in Japan about the necessity for “southward advance,’’ without its being made clear whether this advance is to be naval, political or purely economic, have generated no little concern among the Dutch administrators of this rich and extensive 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 Philippine Commonwealth May Train Men for Foreign Service An interview with Dr. Regala, Professor of International Law at the Law College, University of the Philippines yielded a JOURNAL representative some very inter esting information about plans which Malacanan has on the fire for the training of a group of men who, some time in the indefinite future, may form the nucleus of a Philippine consular and diplomatic corps abroad. Dr. Regala, who has been detailed to the Division of Foreign Affairs at Malacanan from the Department of Justice (his reg ular position) stated that, at present, there are four men working in the Division be sides himself. The other three are, Mr. Leyves, a U. P. graduate, Mr. Borja, a graduate of the U. P. and Columbia Uni versities, and Mr. Silverio Almirianas, a recent Georgetown addition. The plan is to have trained men ready to represent the Philippines abroad by 1946, when the country will become independent under the Tydings-McDuffie act (barring changes in the act before that time). This may be accomplished by sending men. trained in foreign affairs to join the diplo matic and consular staffs of the United States abroad, for first-hand observation of how diplomacy is conducted. This can be done, of course, even before 1946, with the approval of the United States Depart ment of State. Dr. Regala emphasized that all plans are still somewhat hazy and indefinite, but he mentioned that it has been suggested that the Philippines send three such men abroad to join United States diplomatic and consular staffs in foreign countries each year. This would give the Philippines about twenty men at the end of the Com monwealth period, and these men could then act as the advisers and teachers of others that would be needed. The International • Law professor also said that plans were afoot for the Depart ment of State at Washington to send one of its experts here to help in training future diplomats and consuls. He heaped praise on the way the government of the United States has always been anxious to help the Philippine government by lending it its best experts in every field. He said that, in his opinion, this is a very important factor in future Philippine-American rela tions, since it means that a very large per centage of Philippine Government men will be, if they not already are, imbued with American ideals, and will have the Amer ican point of view. When asked what effect making a Dom inion of the Philippines instead of an inde pendent nation by 1946 would have on these plans for a Philippine diplomatic corps, Dr. Regala laughingly stated that he refused to act as a political seer. Assuming, how ever, he said, that the Philippines become Dominion, occupying about the same status toward the United States that Canada oc cupies toward England, he pointed out that in all probability Philippine representatives would go abroad just the same as though the islands were independent. Canada and the other Dominions maintain their own representatives in foreign countries, he reminded. Dr. 'Regala repeatedly emphasized throughout the interview that nothing has been definitely decided. All foreign af fairs of the Commonwealth are now in the hands of the United States under the Phil ippine Constitution and the Tydings-Mc Duffie Act. While the necessity is recog nized of training men for possible service of the Philippines abroad as consuls or ministers, even this has not been definitely decided upon. Any Filipinos who do join the staffs of the United States in foreign countries, will do so mostly as students and observers, preparing themselves for future service. colonial empire. This concern has found expression in a substantial increase in de fense appropriations. A big airplane base at Sourabaya and submarine and seaplane bases on the coast of New Guinea are among the most prominent features of the new defense plans. There is also a fleet of four cruisers, six destroyers, twelve sub marines and some mine-sweepers. Some of these vessels are approaching the obsolete state; and there is a strong popular demand among the Dutch in the East Indies for more and newer ships, flying-boats and torpedo bombers. The Dutch feel much more secure in the East Indies because of the rapid progress toward the completion of the great British naval base at Singapore. Although there is no public treaty between Great Britain and the Netherlands, it is generally as sumed in the Far East that the manifold imperial interests in southeastern Asia would impel any British government to oppose actively any Japanese onset on the Netherlands Indian possessions. The im portant holdings of the largely British Shell Company in the oilfields of the East Indies (the largest source of oil in East Asia) are another factor which must be considered in this connection. Singapore is a very important element in the Far Eastern arms race. One of the world’s largest naval bases has risen on what was formerly a jungle swamp on the northern side of this island, which is at the tip of the Malay Peninsula and com mands in the main sea route from the Far East to Europe. Equipped with the third largest floating dock in the world and with a huge drydocks, its shore lined with ware houses and oil tanks, the Singapore base is in a position to take care of any fleet which Great Britain may choose to send into oriental waters. The nonfortification agreement as to Pa cific possessions which the United States, Great Britain and Japan concluded at Washington in 1922 did not apply to Sin gapore. By constructing an eastern Gi braltar there, Great Britain has perceptibly increased both the naval and the political weight which it can throw into the scales of East Asian politics. Singapore is an international cross-roads metropolis. China and India meet there. The great mass of the population of the cosmopolitan port is Chinese; but one can find a picturesquely decorated Hindu temple in the city and Hindus are the city scavengers. Singapore is the outlet of Malaya, ono of the richest regions in the world in tin and rubber. A fleet stationed there could simultaneously operate for the protection of the neighboring Netherlands East In dian islands, block a southward thrust against Australia and protect the ap proaches to India. Singapore is already a main center of long-distance civil aviation; i.t is a main port of call for British and Dutch air liners plying between Europe and the Far East. It is rapidly becoming also an important military air base, with bombers and flying boats performing reg ular practice evolutions over the maze of near-by channels and islands. North of Malaya lies picturesque Siam, land of constant heat, wide swampy paddyfields, priests in saffron robes, naked little boys riding astride buffaloes, and garish, vividly colored Buddhist tepiples and pa godas. Long thought of mainly as a tourist (Please turn to page 30) December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 The Phenomenon of Popular Consciousness in the East • The Peoples’ compelling demands for the fruits of our present remarkable age— with direct application to the Philippines and Chino,. In the September Mercury, a newsman by name of Thomas Steep exploits the thesis that China has gone ancestoresque again and is laying aside so-called western cul ture. One of the flimsiest pieces ever to appear in the magazine mentioned (which is in hand from Volume I, No. 1 to date, September), this piece is titled China Calls the White Man’s Bluff. In the first place, western influences impinging on China, as upon the rest of the world, are no bluff: archeology, physics, chemistry, astronomy, with their concomitants—broader and deeper intellectual horizons, growth of population, the identity of our globe with the cosmos, machines, alchemy (such as the making of chrome steel, and rayon fabrics), electric power and conveniences, rapid transit, in stantaneous communication. These are not bluffs, philosophy even in China is put to it to do anything with them at all; and philosophy, against them, is quite unable to save its face. There is a new world, having hardly any relation to the past. What served to explain the past has no bearing on it. It is a world of the masses: China will no more extricate herself from its compelling influences than will England, Russia, or Massachusetts. Nor does she have the will to do so. Nothing comes up in the world, affect ing the masses, that does not at once popularize itself with the Chinese: the theater, the movies, the automobile, good roads, factories, schools, national conscious ness and national government: citizen armies, national navies and air forces. Old barriers such as the Great Wall no longei’ signify; and the less tangible barriers, of philosophy, do not signify either. This age has nothing to learn from the past, in China as elsewhere, for the reason that it is not implemented physically as was the past. Chinese feel this, being unable to escape it. If a Chinese student who has sojourned at a western university returns to China and doffs his western clothes for the costume of which his family approves, this does not mean that he will not keep in touch with exchange rates by telegraph. That a Chinese youth does not undertake to modernize his family life and disturb his parents’ peace of mind, does not imply that he has not himself acquired a conscious ness of his community as a whole, or that he has no national outlook. Current days in China demonstrate the contrary; and in the Philippines, scores of thousands of Chinese react to theii- age in the same way as all other peoples do: that is to any, they swing along in active step with cataclymic changes without questioning for a moment where the journey will lead or what its fruits will be. The old world known to be 5,000 years old is gone. A new world, machined to new forms, is in its place. But also, archeology, much of it carried on in China, has pushed the horizons of the old world far back into antiquities all but obliterated, and so Confucius is brought forward into the field of modem scholar ship—Confucius stands but 500 years be fore Christ. Chinese reject the west? Then why is the leading theater corporation in the Phil ippines a Chinese enterprise ? But why too, Chinese schools crowded with Chinese girls as well as boys; and why do Chinese fa milies, hastening to the movies, take along the girls as well as the boys? Are there no girl nurses in Chinese hospitals, are there no caps and gowns for Chinese womanhood? There are, of course, many; and if tradition holds stronger sway in China than in other countries, it is only because China is large and has to go take more time to get in motion and catch up with the modem procession. But toward that procession she heads, nevertheless. It seems utterly absurd to contend that China’s new nationalism is in any sense traditionalism. It engages the masses more than their leaders; and when frustrated, it overthrows its leaders, seeks new banners and moves on. The west has forced nothing on China not even opium; there may be bitter chapters in the history of the opium trade —it is not intended to deny that there are—but if there had been no will among Chinese to use opium, and among others to traffic in it, China would have no opium today. (It is notable that the fight against opium in China is a young man’s fight; it is not a conservative movement, it is a liberal movement, and its ideology derives from the west). Chinese, when the western nations sent ships to China, wanted to trade. They wished to sell, also to buy. What was overcome were the artificial bar riers by which the government of that day tried to prevent Chinese from doing what they wished to do—carry on international trade. Allusion has been made to China’s na tional spirit, that varies only in detail from the same spirit now so profoundly mov ing Japan and the west (and the Philip pines, too). It grows among the people, fiom the soil. Presently much hampered by some plans of militarists in Japan, it proceeds in spite of this temporary re straint. And how does it proceed ? The man closest to it in Manila is Dee C. Chuan, the well known banker and lumberman. He says it proceeds mainly by means of the newest physical devices. He says that the modern communications China is effecting will inevitably make the national spirit and the national government paramount. Over new roads, along new railways, and with airplanes, national forces can move with facility. Is this China calling some western bluff, or is it not just China geo graphically—China of today? Dee C. Chuan anticipates unification of China with 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1937 in 20 years, or a time less than 2/3 of the brief space America has been in the Phil ippines. He does not worry because Jap anese forces temporarily hold Manchuria, since Chinese are rapidly filling up Man churia and the Japanese improvements there are beneficial mainly to Chinese. If traditionalism moved these Chinese, Dee C. Chuan would be entirely wrong about them —they would be inert, a people spiritually defeated, fleeing from and shunning the exigencies of their age. But as it is the same force moving them ’that moves the west, Dee C. Chuan is probably right about them. They seek mass life in Manchuria, as they do in China proper; and as they seek this as Chinese, so they will have it as Chinese. Better thinkers by far than Thomas Steep have given us the clue to such phenomena as the Nanking government, the Philippine Commonwealth, and the new deal for India. One of these thinkers is the Spaniard Gas set. He points out the fact that during the 19th century peoples idealized common rights but left matters to their leaders with out caring to take tangible hold of what their sentiment cherished. But in this cen tury all this is quite changed, they now do take hold. China can’t make terms with her past and invite a long era of renewed philosophical vegetation. China is now the Chinese people, who want, and will surely have, things for themselves. In this, they don’t rebuff the west; they but join the west in the rapid forward-march. It is only because the west invents and passes the implementation of this novel regime along, that the west is taken as in the lead —accused sometimes of bluffing the east into acceptance of its standards. But the charge is untrue, the dynamics of our era enjoy electrical acceptance everywhere. In fact, the fundamental truth is, they are universally demanded, and no people will long permit itself to be excluded from them. These are such facts as are true. There are few places in the world better than the Philippines in which to observe and verify the truth of them. Arms Race... (Continued from page 28) backwater, Siam during recent years has begun to play an important part in oriental politics, and it has not escaped the pre valent craving for more and better arms. Its military expenditure has risen from approximately 13,000,000 bahts (about $6,000,000) in 1932-1933 to a record figure of 23,300,000 bahts in 1936-1937. Imitating methods of secretive European dictatorships, the Siamese budget-makers have not item ized their military outlay. Its precise destination, therefore, is unknown. But it is known that a considerable num ber of airplanes and some tanks have been purchased abroad; the British financial ad viser to the government, Mr. W. A. M. Doll, inserted into his last report a gentle warning that heavy expenditures abroad, together with the constant homeward drain of remittances from the large Chinese com mercial community in Siam, might endanger currency stability. Siam is also building a navy; an additional appropriation of 18,000,000 bahts has been set aside for this purpose. Only small warships are being ordered, some destroyers having been bought in Japan and in Italy. Siam is .the only independent country in southeastern Asia. So it is naturally a focal point of international rivalry and in trigue. For a time there was some con cern in British circles as to whether the new nationalist government which has suc ceeded the ousted King Prajadhipok might not swing over entirely into the Japanese orbit. Japanese trade grew rapidly; a Japanese cotton expert arrived to study the possibilities of growing Siamese cotton for the Japanese market; Siamese naval cadets were sent to Japan for training. There were persistent rumors that Siam, with Japanese financial backing, would construct a canal across the narrowest part of the Malay Peninsula, the Isthmus of Kra. Such a canal would be a stunning blow to Sin gapore, both commercially and strategically. During my visit to Bangkok in the winter of 1936-1937 I gained the impression that British apprehensions were relieved, if not altogether allayed. No concrete proof of the Kra Canal scheme was obtainable; and the idea was specifically repudiated by Luang Pradit Manudharm, the Siamese Foreign Minister. After all, Siam is sur rounded by British territory on three sides, by Malaya on the south, by Burma on the west and northwest. Moreover, the new regime in Siam, while definitely nationalist and inclined to resent any suggestion of tutelage from Great Britain, certainly has no desire to fall into a relation of depen dence on Japan. At the moment the Far Eastern arms race, which has been speeding up from year to year, has led to a state of unstable balance of power. The best guaranty of peace in Asia, as in Europe, had seemed to be the unwillingness of any government to take the responsibility of precipitating war when its neighbors were armed to ths teeth and the outlook for victory was so uncertain. But peace on these terms was hardly to be regarded as permanent or stable. —Reprinted from Asia Magazine foi October, 1937. Vikings of Ships without decks or engines, chart or compass, still cross the Indian Ocean to East Africa. They were trading along that coast before the first Portuguese ex plorers burst into those seas. They are running between the Persian Gulf and Zan zibar now, fleets hundreds strong, while the Queen Mary maintains her trans-Atlantic time-table. They are the dhows, the ocean-going sailing ships that have not changed since the days of Ptolemy. I have sat at the tiller of a fast-coasting dhow off Zanzi bar, yarned with dhow skippers and crews in Mombasa, Mozambique and Colombo. But I have never learnt all their secrets. The dhows, with their rakish lateen-rig and dark, battered hulls, have about them an air of mystery that is not easy to pene trate. By the rules of modern commerce, they should have been driven from the ocean long ago. Yet they sail on, defiant relics of an earlier age of seafaring. The largest are about the size of Drake’s hip, the Golden Hind. Some that venture over from the Persian Gulf to Mombasa, three thousand miles, do not displace more than ten tons. Their Arab crews are the Vikings of the East, accomplishing in their high-pooped dhows the deeds of adventure the old Norsemen achieved in their loneships. I remember a dhow that came drifting into Colombo Harbor after a hard passage from the Maldives—the shining atolls that are strung out in line for four hundred miles just north of the equator.' My boat man spoke the island dialect, and we boarded the dhow to see how she had fared. Her mast was the bent trunk of a coco nut palm, her sails were mats. The fiber rigging was frayed. Sheets of corrugated iron covered with thatch formed the cabin. Nearly all the small bottles used for water storage were empty. Her crew of thin and timid young islanders seemed unaware of any feat of seamanship in bringing this flimsy ark safely to port. If it had hap pened in western waters the news would have been on the front page. Sometimes the frail Maidive dhows keep company in mid-ocean. Fleets of a hun dred sail have been sighted, the dhows in the outer lines burning torches at night to keep the whole formation together. December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 the East • By LAWRENCE G. GREEN perience of the dhow skipper. Some there are with a knowledge of the stars. They tell you that, when a star appears in a familiar position, a known port or island must lie under it. Others are able to es timate their latitude with the aid of a wooden instrument, two arms set at right angles with a knotted string across. This gives a fair idea of the angle of the Pole Star. How do the dhows find their way across thousands of miles of open Indian Ocean? I knew the Maidive Islanders had their wooden sextants, and navigation tables copied from modern books. But most of the Arabs, Indians and Swahilis display Not very graceful—But she will ride out any storm none of the up-to-dateness of the island people. How is it done? At last I formed the opinion that it was indeed a “hit or miss” affair, the chances of disaster varying according to the ex On board a fine baggala that had sailed all the way from Bombay to Colombo I saw a shining binnacle. Many Arab dhows still put to sea without a compass, in spite of the fact that the Arabs have been credited with using some form of magnet ized needle when they first met seafarers from Europe. The sun and the steady monsoon winds are the great signs of direction observed by dhow sailors. The position of the sun at dawn and dusk is important. If there is no sun, and fog or clouds cover the stars, then Allah is held responsible for the safety of the ship. It does not matter if currents take her off her course. As long as there is water in the earthenware jars, rice and dried fish in the cooking pots, a week has no significance. “There are no devils save imaginary devils,” say the stout-hearted Arabs. Nevertheless, a bold proverb is a poor sub stitute for a sextant, and these rough methods of navigation do lead to wrecks and heavy loss of life. Whole fleets of dhows have been driven ashore on Cape Guardafui—the sinister cape that was called, even late last century, “the un known horn of Africa.” Weather lore is all right up to a point. The white man’s liner with her barometers, echo-sounding gear, wireless direction finder and chrono meters may carry too many aids to naviga tion. The white man’s liner with her baro meters, echo-sounding gear, wireless di rection finder and chronometers may carry too many aids to navigation. There is no doubt that the dhows have too few. But it is impossible to shake the oriental philosophy of these aged, sea-wise Arabs. On a coast, where they recognize every landmark by day, they prefer to anchor at night. Ask the skipper why he wastes time like this, and the answer comes with a smile. “I cannot see in the dark. Also, the night is the best time for sleeping. Do not count the days of a month which do not belong to thee.” Every long voyage starts with a ceremony of drums, music and dancing to appease the spirits of the deep. Charms are fixed to the bowsprit and eyes painted on the bows, a precaution copied from the Chinese junks. Then, with the crew singing a shanty that the monsoons have blown down these eastern seas for two thousand years, the dhow makes sail for blue water. 32 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 One day I stood on the beach at Port Amelia, that wonderful harbor in Portu guese East Africa, watching the Arab ship wrights building a dhow. They were work ing to a plan that was old wjien the ancient Britons were paddling their coracles. Not a nail did they use as they laid the planking along the hard balks that made the ribs. Every plank and timber, deck beam and stringer, in a dhow is fastened with wooden pegs. Most seaworthy of all dhows are the large baggalas from Muscat and the Per sian Gulf, with their high, square sterns— often richly carved—and shapely prows. A baggala may be a hundred feet in length with a beam of thirty feet. Tiller, cleats, bulwarks, spars, everything about her is massive. She has a double skin, like the famous Norwegian life-boat design, the space between inner and outer planking being filled with a lime-and-coral mixture to make her thoroughly watertight. Fish oil or propoise fat serves as paint. The heavy rudder might have been transshipped from the Ark. Yet the dhow has lines that capture a sailor’6 eye. She may appear to ride low in the water amidships, but she has a powerful bow and a stern that will not be swamped when she runs before a gale. The deep keel gives her a grip on the water, so that she can be driven to windward and claw off a lee shore. Her keel is of such stout timber, too, that she can scrape over a coral reef or pound heavily on sand with out causing serious damage. A type of dhow that has aroused wide interest is the mtei>e, the sewn boat in which the planks are held firmly together with coconut fiber. A certain amount of elasticity is created by this ingenious de vice, and the mtepe stands up remarkably well to the hammer blows of the sea. You can distinguish a mtepe by her square rig, long projecting stern and a bow like the head of a camel throwing up white spray on an emerald sea. I have seen these boats at Zanzibar, but I believe they are now built only at Pate Island in the Lamu group. The odors of past cargoes cling to all these hardbitten wanderers of the Indian Ocean. They are "tramps” in the true sense of the word; for most of them sail without knowing where the next freight will be lifted. I 'saw a Maidive dhow arrive in Colombo reeking of dried fish. In her holds, too, were coconut .products, tortoise shell; and I was told she would carry rice and bicycles back to the islands. When you see any battered, ocean-going dhow you may be fairly sure that frankin cense and skins, coffee and ivory, carpets and dates, cloth and sponges have all been heaped in her bilges at some time or other to cross the seas covered with tarpaulins. The passengers sit on top of the lot with their baggage. It is transportation reduced to simple terms. Cooking is done in an iron box half-filled with sand. Often a flying fish drops on deck at night, drawn by lanterns. Occasionally a turtle asleep on the surface is captured. Oranges help to keep the scurvy away. As a luxury there is the Arabian melted butter called samn, and always there is coffee. If supplies run short (or even, one sus pects, when there is still ample food in the locker), the dhow skipper does not hesitate about holding up a liner. Thousands of passengers bound for India or Australia must recall those little dramas of mid ocean—the dhow becalmed and flying a distress signal, the liner sending casks of fresh water and sacks of provisions across to her in accordance with the unwritten law of the sea. Most captains, however, refuse pleas for tobacco. This is not a form of begging to encourage. Sea routine on board the dhows is a lazy affair of tiller and lookout. There are no decks to scrub, there is no brasswork to polish. Each. morning before dawn comes the call to prayer. “Allahu akbar!” In the evening, when the sun touches the sea-rim, the skipper becomes priest again. All on board face Mecca, -dropping to the deck with their foreheads touching the wood, kneeling until the last words are chanted. “Peace and the mercy of Allah be on you!” The Indian Ocean is sprinkled generously with groups of coral islets. Fishing sta tions have been established on dozen of atolls, copra is produced on the larger is lands. These calm lagoons seldom see the keel of a steamer. The dhows are not too proud to visit tiny outposts in search of cargoes. You can identify a pearling dhow by the smell of long-decayed oysters. Arabs and deep-chested, black-skinned Somalis go as divers. The only apparatus canied is a primitive form of "submarine eye”—a glass bowl or a funnel with *a glass bottom pressed below the surface. Thus the pre cious beds of oyster-shell are found. If sharks keep away and no dreaded octopus appears, if a man is not trapped by a giant clam and if the oyster-shell is rich, the divers may sail back rejoicing to the pearl market of Zanzibar. Malindi waterfront at Zanzibar and the tortuous, narrow streets and coffee houses of the bazar form a memorable scene dur ing the northeast monsoon. Then the crews of dhows from distant coasts arrive to spend their pay recklessly, just as the sailor-men of other nations do at the end of a hard passage. The dhow, as I have said, does not al ways survive the dangers of the Indian Ocean. One of the strangest disasters oc curred only a few years ago, when a dhow left Zanzibar for the Gulf of Cutch with thirty-seven persons on board, mainly Arabs and Indians. They were sailing well in fair weather one night when a shock was felt below the water line. The dhow began to leak, and a hurried search revealed the long, serrated snout of a saw fish protruding through the planking. Crew and passengers toiled all night to shore up the rotten timbers and plug the leak. It was useless. Towards morning the skip per ran for the Lamu Islands and left the dhow on a reef to avoid foundering. No lives were lost, but the dhow became a total wreck. Yet the old dhow trade flourishes in spite of the known and unknown perils of the sea. These Arabs sail on as if turbines and marine motors had never been invented. I see them now, the monsoon droning in the bellying sail, brown sailors singing and beating their drums, an old man with a green turban and a thin beard crouched at the tiller. These are the Vikings of the East indeed, sailing boldly to adventure over the horizon. —Asia, Oct., 1937. MALACANAN PALACE Manila BY THE PRESIDENT OF THE PHILIPPINES ADMINISTRATIVE ORDER No. 52 CREATING A COMMITTEE TO •STUDY THE PROPOSED ES TABLISHMENT OF A FOREIGN TRADE ZONE AT THE PORT OF MANILA It appearing that Manila is favor ably situated as a transshipping port for foreign trade and that the estab lishment of a Foreign Trade Zone at Manila would benefit the commerce of the Philippines, I, MANUEL L. QUEZON, President of the Philip pines, by virtue of the powers in me vested by law, do hereby constitute and create a Committee to study the advisability and feasibility of estab lishing a Foreign Trade Zone at the Port of Manila. The Committee shall be composed of the following: ■Mr. Jose Paez, President and Gen eral Manager, Manila Railroad Company, Chairman; Mr. J. Bartlett Richards, U. S- Trade Commissioner, Member; Mr. Jesus Obieta, Acting Collector of Customs, Member; Mr. Anastacio de Castro, Acting Director of Commerce, Member; Mr. A. T. Sylvester, Portworks En gineer, Bureau of Public Works, Member; Mr. Walter Robb, Editor, Amer ican Chamber of Commerce Journal, Member; and Mr.'Richard C. Wilson of the United Press., Member. Captain Boomer Fellers, U. S. Army, shall serve as Secretary and Executive Officer of the Committee. This Committee shall submit a re port covering its findings and recom mendations as soon as practicable. Done at the City of Manila, this 19th day of November, in the year of Our Lord, nineteen hundred and thirtv-seven, and of the Comonwealth of the Philippines, the third. (Sgd.) MANUEL L. QUEZON President of the Philippines 11 isl oric (i multi I ii pc Canadian Pacific 26,000 21.500 16>00 16,900 EMPRESS OF EMPRESS OF (AX XI) \ EMPRESS OF RFSSI \ EMPRESS OF XSI \ Maintaininc a fortnightly service from the Philippines to the Pacific < oast. When necessary, connection can he made al Honolulu direct to San Francisco or l.os Anceles. At Victoria connection can he made for Seattle and points in the I . S. \. At Vancouver the Empresses disk at the new C. P. R. Pier which adjoins the Canadian Pacific Railway Station. Travel East, via the majestic Canadian Rockies, in clean, cool air-eondif ioned comfort. Ihe latest type of air-conditioned e<|iiipmen-t available on the north American Continent. Ask us about the new tou> first class, intermediate class and coach class fares to points in Canada, and the U.S.A. Canadian Pacific Telephones 2-36-56 and 2-36-57 (’able Address "GACANPAC" II David. Manila The Drink That You Await with pleasant anticipation J5an Miquel The beer that has tone, quality, and with a tempting appeal from the inimit able San Miguel bouquet a product of the.......... SAN MIGUEL BREWERY where the mark “Quality” means Quality 'X /</ sr< >\ r >/.\’( . F< ’ W>\ l R I M/ Ml \ l V /7 / IS/ Ml \ I It A i III \MI II 1 MRI A • <1 ■ ' 'C \ December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 33 Guadalupe: An Heroic Ruin The ruins of the old Augustinian sanc tuary, Nuestra Senora de Guadalupe, sur mount the heights on the left bank of the Pasig river near Fort William McKinley and a little to the right of the main road to the fort from Manila which skirts the river bank. The ruins are full of interest to all who have any inclination whatever to ruminate upon the noble monuments of a past but glorious age; and surely nothing is truer than that by the light of the past the future is illumined. “We are the same our fathers have been.” It is also true that we “run the same course.” The sanctuary was built in 1601, six years prior to the founding of Jamestown and eleven years prior to the voyage of the Mayflower—a ship little different from the caravels of Legaspi in which, in 1565, Fray Andres de Urdaneta and four other Augustinians arrived at Cebu and began the work of redemption of the land from barbarism, and subjection of the neophytes of the faith to the rule of Emperor Charles and his son Philip II, whose name, first applied to Leyte island alone, soon pre vailed over the archipelago as a whole, theretofore known as the Islands of Ma gellan from his discovery of them, and his death at Cebu, upon his epochal voyage round the world, in 1521. The friars of that period were men of the type who lead the world today in sec ular life. It was, for example, not Legaspi, but really Urdaneta, who, an experienced cosmographer and navigator with former experience in a Portuguese expedition, routed the armada successfully to the Phil ippines and then, upon the return voyage to Mexico, which was the initial one, charted the route by which Spain for centuries kept communication with her new territory and carried on her commerce with the Far East. Yet it had been necessary for Legaspi to break out his sailing orders from the viceroy of Mexico only after he was safely 100 leagues at sea, off San Diego and Aca pulco. And why? Because, for Urdaneta, the project wa^ far too tame; he had no zest for it and the viceroy had assured him, as a pretext to gain his consent to embark and actually get him aboard, high' adven ture of a better sort: “Far from undertaking a direct voyage to the Far East, he (Urdaneta) proposed to descend to the greater latitudes and dis cover the extent of New Guinea, which it was then believed reached into Antartic regions; or to ascend to the frigid latitudes in the opposite hemisphere and ascertain what islands or continents existed there, but coming at last to land, in the one case or the other, in the already known Phil ippines.” He was an angry friar when, finally, Le gaspi called a council, broke out his orders and read that the voyage was to be direct to the Philippines, these Islands of the West, and therefore innocent of material disco veries. But he was habituated to disci pline; he overcame his disappointment and set faithfully about guiding the ships west ward. His fellows were of like kidney. Two, Herrera and Rada, within one year had so thoroughly mastered Cebuano and instructed the people, that they had them converted and brought together into villages where their elders were maintaining order. Rada was made first provincial of the Augus tinians in the islands; and Herrera was sent by Legaspi back to Mexico and to Spain to get reinforcements, not of sol diers, but of devoted friars; and with these and only handfuls of troops the Philip pines were actually taken for Spain. Of The Paths of Glory Lead But to—Crumbling Decay (with apologies to Gray) course many of the orders, and the Jesuits too, had a hand in this; the Augustinians were but first in the field. Father Alba, arriving here at seventy, his memories of Villalobos’ disaster for gotten, going alone to Panay and by means of learning an utterly strange language so as to talk and reason with the barbarians intimately, making the province Christian! The imagination hardly compasses the truth in respect to the faith of these men. Their wills, however, were as unshakeable of purpose; and so we find them, the Au gustinians notably, often at odds with the king’s governor—evlen arresting Salcedo summarily and putting him to the question. But I go on with Guadalupe, chiefly in quotation from original sources. The plans for its construction seem to have been those of Fray Herrera, like those of the Augustinian church in Manila. The plans for both called for the most sub stantial building. The church, still stand ing as firm as when first completed, attests this; and so do the massive walls and deep and wide foundations of the sanctuary, set in the living rock. The materials for the convent were taken indeed from the live34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1937 rock of the hillsides, and soil was placed in their stead so that gardens might adorn the sanctuary grounds. “Two leagues up the river is our con vent of Nuestra Senora de Guadalupe, which is built of stone. It is the most frequented house of devotion in the islands, both by Spaniards and by natives. And it is enough that it has not ceased to exist, because of the changeableness of the country.” This was written very early in the 17th century by Fray Juan de Medina, who, in the Augustinian mission in the Philippines twenty-three years, died at sea from the hardships of the voyage back to Spain. Another gave Guadalupe all he had, $1,000. The Augustinian province of the Philip pines is that of the Most Saintly Name of Jesus. The leadership of the Lord was very real to the missionaries, and He had said, “In so much as ye do it unto the least of these, ye do it unto me. Suffer little chil dren to come unto me.” So we must go on to another old relation. “The father provincial of the Augus tinians, representing his order, took under charge the support, education and teach ing of abandoned and orphan children. They transferred the children to the lower parts of the convent at Guadalupe, which were spacious and well ventilated. There they opened work-shops of sculpture and ceramics, painting and modeling, and there they remained until the year 1892, when the schools, workshops and children were transferred to the building of the new plant constructed for that purpose in the village of Malabon. The pace united all the de sirable conditions of solidity, decoration, size and even elegance, which could be desired. There the Augustinian fathers taught the orphans, in addition to their primary letters, painting, designing, sculp ture and modeling, printing and binding, and indeed the printing plant was bought by the voluntary donation of some religious (friars), through the economies practiced in the missions by dint of privations and of a life of poverty and mortification.” Fray Francisco Mercado, who took his vows in Manila in 1611, “gave generous alms to the province from his own funds, showing special favor to the convents of Guadalupe and Bantay.” Now let usr turn to Buzeta, writing in 1851. Each order, and the Jesuits, had a chronicler; and numerous and valuable are the volumes of their records. “The Augustinians always have at Gua dalupe a prior, who is usually a priest superannuated in the mission work. The elevation of the place is notable; it is reached by ascent of hundreds of steps hewn from the rock. It dominates the whole province of Tondo and is one of the most picturesque places in the islands. The health and spaciousness of the place, together with the character of the instruc tion given by the prior, bring many per sons there for convalescence, and youths to pursue their studies. “It is also notable for the famous Fiesta of St. Nicholas. On this saint’s day, Sep tember 10, the infidel Chinese established (in business) in Manila, hold a celebration at Guadalupe. It is very significant to a thoughtful man who knows how to appre ciate and value the customs of peoples, to see, on this day, those infidel votaries of the sanctuary arriving in their gayly decked boats from Manila, whence they attract the entire city. They fetch along the military band and make a thousand preparations for the festivities. They form a gala procession at the river and elabo rately manifest their veneration for their patron saint.” The reader must remember, respecting the charity the Augustinians established and continued to the very end at Guada lupe, that St. Augustine himself gave his deathbed to the poor. (Please turn to page 38) I KO FLEX YOU SEE WHAT YOU ARE TAKING Even during exposure, with the Ikoflex Camera. How often does one get the impression that the person whose picture is being taken either alters his expression or moves from the right position? Subject is always clearly in view in the ground glass. Three different focusing models to choose from. Gives 12 pictures 2%" x 2%" on ordinary No. 120 film. $ £ % V % V % V % a £ a To All Our Friends & Patronizers A ifterru Christmas! Alhambra Cigar & Cigarette Mfg. Co. MANILA I a A 5 A A $ A 5 A 5 A % A A 5 A t A 5 A 5 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 ORGANIZED TO PROMOTE TRAVEL TO AND IJV THE PHILIPPINES • FREE TRAVEL INFORMATION • COURTEOUS WELL TRAINED GUIDES •CITV DRIVES •PROVINCIAL TRIPS • SOUTHERN ISLAND CRUISES • HOTEL RESERVATIONS THE PHILIPPINE TOURIST BUREAU (OPERATED JOINTLY BY THE MANILA RAILROAD COMPANY AND THE MANILA HOTEL COMPANY) Francisco Limjap Superintendent Nilo Aragon Chief Clerk Main Office: MANILA HOTEL, Manila, P. I. CABLE ADDRESS: TELEPHONE: “MANHOCO” 2-20-22 Manila IHctll “The Aristocrat of the Orient" Situated on a reserve property of some three hectares, with Burnham Green as a background: facing the historic Luneta on the south, gorgeous Manila Bay on the west, the old Span ish Walled City on the .north, and Modern Manila on the east... the location is incomparable: a setting' hardly to be found in other world ports. Preferred by world travelers because of its luxurious ap pointments and culinary excellence, the Manila Hotel enjoys the patronage of the elite, both local and foreign. In the air-conditioned rooms and suites of the new Manila Hotel Addition one lives in the crisp, cool, invigorating at mosphere of temperate climates at their best. SPECIAL FEATURES The suites in the new air-conditioned addition are de luxe. period and modern in style, furnishings and decoration: Spanish . . Louis XVI. . . Old English. . . Filipino . Chinese. . . Modernistic. . . Neo-Classic American Colonial. . . Ultra-Modern. OTHER ATTRACTIONS Air-conditioned Grand Banquet Hall and Ballroom. Dao Room and Oak Room for private parties. Continental Bar 19th Hole Bar Cocktail Lounge Open-air Dancing Pavilion Swimming Pool (under construction) Telegraph and Postal service IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 Where to Go? Travellers coming to the Philippines for a long or short stay, or on their way to some place else, and Philippine residents fortunate enough to have a few days’ or a few weeks' vacation, must first answer this question to their own satisfaction be fore they can proceed with the pleasure of planning a trip. Of course, the wise traveller will consult a good travel bureau as to the details of any trip; an experienced travel counsellor is worth his weight in gold; but it is always well to have some idea in advance of where you want to go, what you want to see, and how much you can afford to pay before going to the travel bureau. For this reason, the JOURNAL takes the liberty of suggesting a few de lightful trips within easy reach of Manila. All of them are worth while. Each month we will describe a vacation trip, in detail. The trip described this month, elsewhere in this issue, is the cruise through the Southern Islands by boat. Six vessels make this run. Other trips are sketched below. (See your travel bureau for further details.) Starting with places close to Manila, of course we have Baguio. The Philippine Aerial Taxi Co. has a daily service between Manila and Baguio. The trip takes about an hour. One-way fare is P25.00; round trip P45.00. There are a number of good hotels in Baguio, and a week-end trip— leaving Manila early Saturday morning and returning early Monday morning—will cost about P75.00, including hotel accommoda tions, according to the type of accommoda tions desired. Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE C& GRILK Phone 2-16-61 Patco has other scheduled flights includ ing Paracale, the famous mining town, his toric Legaspi, and Naga. On these trips, no reduction is made for a round-trip ticket. Airplanes leave from Grace Park, straight out Rizal Avenue Extension. Pas sengers provide their own transportation to Grace Park, but in Baguio free taxi service is provided to points within the limits of the city, and the Royal Garage picks up passengers free of charge for the Baguio Airport. TRAVEL AGENCIES IN MANILA The American Express Co., Inc. (Mr. J. R. Lloyd) 95 Plaza Moraga Tels. j 3.35.55 Everett Travel Service (Mr. Donald W. Cameron) 223 Dasmai-inas Tels. j 4.98-93 Philippine Tourist Bureau (Mr. Francisco Limjap) Manila Hotel Tel. 2-20-22 Philippine Travel Bureau 115 Crystal Arcade Tel. 2-32-72 Many people prefer to go to Baguio by train, and rest on the way. The Manila Railroad Company’s air conditioned train leaves Manila every ‘morning, and makes bus connections for arrival at Baguio in the early afternoon; returning early every afternoon and arriving at Manila in the evening. A week-end trip by this service, Port Area including hotel accommodations, costs ap proximately P45.00. A trip which is off of the beaten path, but rich in scenic beauty is the train trip to Legaspi. The Bicol Express leaves Ma nila daily (except Mondays) in the early evening, and makes connections to arrive at Legaspi the next day, shortly after noon. Three days should be allowed for this trip, and it will cost, including hotel accommo dations at Legaspi, about P60.00 round-trip. The Southern Islands: There are several delightful round-trip routes offered by the airplane and steamship companies. Your choice of a way to go will depend on how much time you have to spare and how much you want to spend. If you prefer to go by airj the IloiloNegros Air Express Co. (INAEC) main tain regular service between Manila and Davao, via Iloilo, Cebu and Del Monte. A six-day trip including stop-overs will cost about P220.00. INAEC berths at the new Nielson Airport. The Robert Dollar Company runs the well-known Mayon through the Southern Islands, for its principals, the Philippine Interisland Steamship Co. This ship es pecially built for the tropics, leaves Ma nila every Tuesday for Iloilo, Zamboanga, Cebu, and return to Manila every Sunday. Round-trip fare is P100.00. The Everett Steamship Corporation have the S. S. Kinau or M. S. Rizal sailing from Manila every Thursday evening and return ing the second following Wednesday, calling at Cebu, Dumaguete, Bais, Zamboanga, Cotabato, Jolo and Port Holland. Round trip fare is P90.00. These ships call at more ports than most of the others. Compania Maritima maintains regular service between Manila and Davao, via Cebu and Zamboanga. Either the Bohol or the Mactan leaves Manila every Wednesday, returning the second following Monday. Fares vary; these ships carrying what amounts to a “First Preferred” and a “First” Class, but round-trip tickets cost about P120.00. The Manila Steamship Company operates a similar service with the steamers Bisayas and Sorsogon, leaving Manila every Satur day, returning the second following Thurs day. Their fare is about the same. The De La Rama Steamship Co. put the luxury steamer, the Don Esteban into the Manila-Iloilo-Cebu service the first part of this year," with sailings once a week. Passengers making these round-trips live on the steamers while in port, and all lines grant liberal stop-over privileges. One things we never knew before—there is an excellent hotel in Davao. Your travel agent will advise you about special regulations respecting baggage, air express, etc. Usually children under three years travel free; children three to twelve pay half fare, and children over twelve pay (Please turn to page .38) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 37 LET US DO THE WORRYING! That’s our business BUY A RAILROAD TICKET AND ENJOY: SAFE transportation. No passenger fatality in many years MEALS—comparing favorably with the best restaurant fare, and at low prices under Manila Hotel management COMFORT—air-conditioned coaches, and a smooth, gliding ride. TRAVEL BY TRAIN AND REST! OPERATING BENGUET AUTO LINE and LUZON BUS LINE For Information Write or Call Traffic Department Tel. 4-98-61 Information, Local 42 Leon M. Lazaga Traffic Manager City Office Tel. 2-31-83 521 -2 3 Dasmarinas R. E. Bernabe Chief Clerk Candido Soriano City Agent MANILA RAILROAD COMPANY 943 AZCARRAGA MANILA IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 full fare. Sometimes further restrictions are imposed regarding children. The Phil ippine Aerial Taxi Co., for example re quires that children sit on the accompanying adult’s lap, unless there are unsold seats on their planes. One thing to remember: it is prohibited to take pictures from the air. Only Amer ican and Philippine citizens may take pic tures from the air at all, and these only by applying to the Aeronautics Division, Post Office Building, Manila. Turning to trips outside of the Philip pines: there are several trips to be taken over Indo-China way. One trip, taking about three weeks, would take you from Manila to Saigon direct, or via Hongkong, thence by bus or motor to Pnom-Penh, Angkor, Dalat, returning via Hongkong. A slightly longer trip would be from Manila to Hongkong, thence to Haiphong via Fort Bayard, Hoihow and Pakhoi. A side trip can be sandwiched in to Bay de Along, then to Hanoi, Yunnanfu and return via Hongkong. If you have a month to spare, you could go from Manila direct to Saigon, or via Hongkong, thence by bus or motor to PnomPenh, Angkor and Aranya Prades, then by rail to Bangkok, Penang, Kuala Lumpur and' Singapore, returning from Singapore direct by steamer to Manila. There are many other very fine vacation trips within easy reach of Manila. We will describe a few of them with each issue. Meanwhile, a study of our sailing schedules and rate tables—particularly those covering sailings to the Southern Islands and Aus tralia—will disclose many more, to suit every taste and every purse. These tables have been very carefully prepared, and, barring printer’s error, are accurate, and complete. We repeat—you should not attempt a trip without consulting a good travel bureau. (For a list of travel bureaus in Manila, see elsewhere this section.) Guadalupe... (Continued from, page 34) “The asylum of the orphans,” which we see had been removed in 1892 to Malabor., “and of the unfortunates abandoned by its founders who had to flee from the revolu tionists, was burned by the shells which the Americans threw to dislodge the Indian rebels who had made forts of it; and it was looted afterward by pillaging Chinese who took away even the paving stones of the lower floor> a cargo of which was surprised by the North American (the Spanish term for us) police in the. Pasig river, and re turned to the Augustinian fathers—the onbindemnity which they have received up to date. “The Augustinian fathers also extended their charity to orphan girls...” But, stopping here, I add that the claims of the church, and of all others, too, were all carefully considered by the United States, in good time, and where demonstrated to be just they were paid. The funds seized in the treasury were returned to Spain, eventually, but meanwhile were used to expedite sanitation and repress epidemics. We may conjecture what became of the steps at Guadalupe after the place was fired: some Chinese was on watch for them. The old treasure vault is easily traceable still; and the old cisterns, though in worse condition, and the old granaries and ware houses; for there were lands round about, and peasants clothing them. Guadalupe was destroyed by American forces March 13, 1899, just five weeks after the outbreak of hostilities between the United States and General Aguinaldo. It 'was a necessary act of war executed thor oughly by “Weaton’s Flying Brigade.” This brigade was organized to "clear the enemy from the country to the Pasig and to strike him wherever found,” for the reason that from this quarter the water works at San Juan del Monte had been repeatedly threatened; and the enemy in this region also had easy access to Malolos, Aguinaldo’s capital. “Many a year is in its grave Since I crossed this restless wave, And the evening, fair as ever, Shines on ruin, rock and river.” Roosevelt Steamship Agency, Inc. • 'REP'RESEJVTJJVG Kerr Steamship Co., Inc.—New York Silver Line, Ltd.—London Prince Line, Ltd.—London Pacific Java Bengal Line—Amsterdam Kawasaki Kisen Kaisha—Kobe Operating the Following Services: Prince Silver Round the World Service (Philippines to U. S. Atlantic Coast Ports via Java, Straits Settlements, and Cape of Good Hope) Silver Java Pacific Line (Philippines to U. S. Pacific Coast and Gulf Ports, also to Java, Straits Settlements, Bombay, Persian Gulf and Calcutta) “K" Line Round the World Service (Philippines to U. S. Atlantic Ports via Suez) "K” Line Express Service to Atlantic Ports (Philippines to U. S. Atlantic Ports via Panama) Chaco Bldg. Tel. 2-15-21 MANILA Far East—Europe RAPID LUXURY LINERS Via Singapore—Colombo—Bombay—Massowah— Suez—Port Said Regular fortnightly sailings alternating from Manila or Hongkong for Venice, Trieste or Naples, Genoa. Overland to London, Paris, Berlin Stopover privileges. From Egypt the voyage can be con tinued by any of the Italian line Mediterranean Services. Through Tickets to the U. S. and Round the World at Reduced Fares. EXPRESS SERVICE vi* INDIA-EGYPT-ITALY ITALIA LINE—LLOYD TRIESTINO For passage and further particulars apply to Smith, Bell & Co., Ltd. HONGKONG 4 SHANGHAI BANK BLDG.. PHONE 2-31-31 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 39 Sailing the Sulu Seas Elsewhere in this section we describe briefly some of the vacation trips which can easily be made by anyone with a few days or a few weeks to spare. These trips would be a delight to many Philippine re sidents, as well as to tourists. Some of us live in the Philippines for years without "seeing the Philippines first.” One of these trips is the steamer voyage to the Sulu Seas. We describe a few of the interesting ports the ships call at on this round-trip below, starting with Cebu, one of our newly-chartered cities. CEBU The city of Cebu, the capital of Cebu province, is situated on the island of the same name. It is the first port of call, after leaving Manila and is reached on the third day out. From a historical point of view, Cebu has a prominent place in the history of the Philippines, Spain and the civilized world. It is the cradle of Catholicism and Euro pean civilization of the archipelago. Cebu was the landing place of Magellan April 7, 1521, after his voyage from Spain by way of the Straits that bear his name. Legazpi followed him 43 years later and Cebu was used as headquarters and capital until Manila was established and head quarters moved there. There are many points of historical in terest. On the Plaza is Magellan’s cross erected in 1521. Several historical churches reminiscent of the days of the Spanish will prove of interest to the visitor. The most imposing is the Cathedral with its vaulted nave and gorgeous altar: The most inter esting is San Agustin with its celebrated statute of the Santo Nino, situated in its own compound and across the Plaza. Tile small wooden statue of the Santo Nino (Holy child) also called the Black Christ may be seen in the church. Legend says, it was left by Magellan with the natives who venerated it and gave it to the priests with Legaspi. Another story is that it was found in the net of a fisherman and that although he threw it back in the seas several times it always reappeared in his net. A delightful ride from Cebu along palm bordered roads, leads to Talisay Beach, where by some freak of nature a great underground stream of cool water is found within a short distance of the sandy beach. A delightful swimming pool has been built there. COTABATO The port of Cotabato is the capital of the province of Cotabato. This province is a large undeveloped store house of nat ural wealth and resources that have been scarcely touched. Capable of growing rice to feed the entire Philippines, its vast areas are undeveloped as yet. Its size is about equal to that of the state of Massa chusetts and Rhode Island combined, its population less than 200,000 compared to their 6,000,000. The town lies half an hour steaming time from the mouth of the Mindanao River in Coconut Groves along the beach itself an intensely interesting trip. There are two markets the most interesting, across the river, reached by a ferry. From the Constabulary barracks on the highest knoll above the town a panorama of the wide plain with the river winding thru it and the high mountains to the north may be seen. Mt. Dapayungan to the north crowns the sky line, while the highest peak in the archipelago, symetrical Mt. Apo arises out of the haze to the west. Use QUAKER STATE MOTOR OIL Go Farther Before You Need a Liter Swiss Oriental Commercial Co. Exclusive Distributors of QUAKER STATE PRODUCTS 153 Juan Luna Ph°“e 4-90-14 j Kiosk protecting Magellan's Cross, Cebu In the village of Timoka a short auto ride from Cotabato a very old church built by the Spaniards may be seen. DUMAGUETE Dumaguete is me most important port on the island of Negros and is the capital of the province of Oriental Negros. The harbor presents a typical tropic appearance from the sea, with its wide crescent shaded beach fringed with palm trees. Silliman Institute, the great educational center of the Visayas with its wide campus and at tractive buildings is located here. In the nearby village of Luzuriaga, is an old church on a gently sloping hillside and a short distance further are the great groves of Boco and Dauin. The village of Sibulan on the outskirts of the town has an interesting church facing the plaza. JOLO Jolo is the capital of the Province of Sulu and is situated on the island of Jolo. Jolo is a tropic paradise removed from the rest of the world, where Moro life goes on much as it did in the days when the Spaniards first came. It is the home and capital of the Sultan of Sulu (the only sultan under the American Flag) who no minally nolds sway and maintains his court while the affairs of the government are administered by a civil governor appointed by the President of the Philippine Com monwealth. The island is inhabited almost entirely by Moros, who live by fishing and tilling the land. High mountains lift tnemselves in the center of the island, pro viding beautiful scenery of a diversified character. The town of Jolo was formerly a walled city and the old wall and gates still remain as evidence of warlike days. Foremost among the interesting sights is the Chinese Pier most picturesque and ramshackle structure extendig out into the bay for half a mile. The large Chinese (Please turn to page 46) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL J x 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 (X XX VI Od eI I IB x i ii = P O R T S O F C A L L B lili X Be eB s Bi II I Si I Be B Be Be Be Be B5 B B is Ba XX XX 1 = I a h ii r «s al eBeBs g Bata i s IMishpiisf: ! 0=0110001=1 = BIBiBIiOhOf BesisgSlSEaBagaB gB«=Si=B=B irtiillilllllill hlliillii hlilllihllllli HllMlilliiii Bx xxS5 eS is Bi If IB ESEEEEEs EsEHHSHE EES ssgsSSSS § ? ! Itllxx I I i December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 41 ONV110H d 90AV81V3 ovnva OWO1V1 ovAva oior V9NVO0WVZ O1V0V1O3 V9NVO0WVZ 9NIX9NIX 9N0V1 N090SH0S NVH09ISV3 OiVN 3VHIA A0N-I9V1 O3V0V1 ldZV93*l NV9OTV01V3 VS33NIHd Old AVWVHV3 I133VHV 0A03 NOI1A3 N0H03 IHHVdV NVIOfl 0V1A8WVW 31V3VHVd 13 VO I E I E i h xx X Is £ E x x I = x x < i< I 5 - 55 ! ! ! S! XX XX J 5 HSSSgSS J,85H!;!sS S _ _ !!£!!!!! S ! « i -2 ii 3! I 5= i 42 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 37 SAILINGS MANILA to U. S. TRANSPACIFIC 223 Dasma/rinas, Manila Courtesy- EVERETT TRAVEL SERVICE Tel. i-SS-91 Arrive Arrive Arrive Arrive Arri« Vancouver Seattle San Fran. L Angeles Leave Leave Leave Leave Leave Leave Leave Arrive Manila Hongkong Shanghai . Nagasaki Kobe Yokohama Honolulu .poJvaSd VESSEL 6 AML PRES. GRANT Dec. 27 Dec. 30 Jan. 2 Jan. 4 Jan. 6 Jan. 17 Jan. 17 11 FL SNESTAD Dec. 30 Jan 21 4 DSSL PRES. COOLIDGE Jan. 5 Jan. 8 Jan. 11 Jan. 14 Jan. 21 Jan. 26 Jan 30 c ■ 8 9 NYK TAIY0 MARU Conn. Str. Jan. 10 Jan. 12 Jan. 21 Jan. 27 Jan 29 6 AML PRES. JACKSON Jan. 12 Jan. 15 Jan. 18 Jan. 20 Jan. 22 Feb. 2 Feb. 2 16 SL DJAMBI Jan. 12 Feb. 15 Feb. 9 Feb. 4 11 FL FERNDALE Jan. 15 Feb. 5 Feb 23 12 BL TOULOUSE Jan. 15 Jan. 18 Jan. 23 Jan. 27 Jan. 30 Feb. 10 Feb. 12 Feb. 28 14 BF TALTHYBIUS Conn. Str. Jan. 18 Jan. 25 Jan. 29 Feb. 1 Feb. 15 Feb. 17 13 KL ROSEVILLE Jan. 22 Jan. 26 ♦Mar. 2 Feb. 22 Feb. 17 5 DSSL PRESS. WILSON Jan. 22 Jan. 26 Jan. 29 Jan. 31 Feb. 1 Feb. 9 Feb. 15 Feb. 20 Mar. 10 NYK HOIAN MARU Conn. Str. Jan. 22 Jan. 25 Feb. 5 Feb. 6 16 SL SILVERGUAVA Jan. 23 ♦Feb. 12 Feb. 16 Feb. 21 15 ML ANNA MAERSK Jan. 24 Jan. 27 Feb. 2 Feb. 6 Feb. 9 Feb. 23 Mar. 12 8 NYK TATSUTA MARU Conn. Str. Jan. 25 Jan. 27 Feb. 3 Feb. 10 Feb. 12 16 SL MANOERAN Jan. 26 Feb. 25 Feb. 20 Feb. 16 ♦Mar. 27 6 AML PRES. JEFFERSON Jan. 26 Jan. 29 Feb. 1 Feb. 3 Feb. 5 Feb. 16 Feb. 16 3 CPR EMP. OF RUSSIA Conn. Str. Jan. 26 Jan. 28- Jan. 30 Jan. 30 Feb. 1 Feb. 12 11 FL FERNBANK Jan. 30 Feb. 21 Mar. 11 4 DSSL PRES. HOOVER Feb. 2 Feb. 5 Feb. 8 Feb. 10 Feb. 11 Feb. 18 Feb. 23 Feb. 27 10 NYK HIKAWA MARU Conn. Str. Feb. 5 Feb. 8 Feb. 19 Feb. 20 1 CPR EMP. OF JAPAN Conn. Str. Feb. 8 Feb. 10 Feb. 12 Feb. 14 Feb. 21 Feb. 26 6 AML PRES. MCKINLEY Feb. 9 Feb. 12 Feb. 15 Feb. 17 Feb. 19 Mar. 2 Mar. 2 16 SL TOSARI Feb. 12 ♦Mar. 18 Mar. 11 Mar. 7 14 BF TYNDAREUS Conn. Str. Feb. 15 Feb. 22 Feb. 26 Mar. 1 Mar. 15 Mar. 17 12 BL TRITON Feb. 15 Feb. 18 Feb. 23 Feb. 27 Mar. 2 Mar. 13 Mar. 15 Mar. 30 5. DSSL PRES. CLEVELAND Feb. 19 Feb. 23 Feb. 26 Feb. 28 Mar. 1 Mar. 9 Mar. 15 Mar. 20 Apr. 5 10 NYK HIYE MARU Conn. Str. Feb. 21 Feb. 24 Mar. 7 Mar. 8 8 NYK CHICHIBU MARU Conn. Str. Feb. 22 Feb. 24 Mar. 3 Mar. 10 Mar. 12 13 KL GRANVILLE Feb. 22 Feb. 26 Apr. 2 Mar. 25 Mar. 20 6 AML PRES. GRANT Feb. 23 Feb. 26 Mar. 1 Mar. 3 Mar. 5 Mar. 16 Mar. 16 3 CPR EMP. OF ASIA Conn. Str. Feb. 23 Feb. 25 Feb. 27 Mar. 1 Mar. 12 16 SL BENGALEN Feb. 23 •Mar. 15 Mar. 19 Mar. 24 16 SL SILVERWILL0W Feb. 25 ♦Mar. 28 Mar. 23 Mar. 19 4 DSSL PRES. COOLIDGE Mar. 2 Mar. 5 Mar. 8 Mar. 10 Mar. 11 Mar. 18 Mar. 23 Mar. 27 9 NYK TAIYO MARU Conn. Str. Mar. 7 Mar. 9 Mar. 18 Mar. 24 Mar. 26 2 CPR EMP. OF CANADA Conn. Str. Mar. 8 Mar. 10 Mar. 12 Mar. 14 Mar. 22 Mar. 27 6 AML PRFS. JACKSON Mar. 9 Mar. 12 Mar. 15 Mar. 17 Mar. 19 Mar. 30 Mar. 30 3 CPR FMP. OF RUSSIA Mar. 9 Mar. 18 Mar. 20 Mar. 22 Mar. 24 Apr. 4 10 NYK HEIAN MARU Conn. Str. Mar. 14 Mar. 17 Mar. 28 Mar. 29 14 BF IXION Conn. Str. Mar. 15 Mar. 22 Mar. 26 Mar. 29 Apr. 12 Mar. 14 12 BL TAI SHAN Mar. 15 Mar. 18 Mar. 23 Mar. 27 Mar. 30 Apr. 10 Apr. 12 Aor. 2R 5 DSSL PRFS. TAFT Mar. 19 Mar. 23 Mar. 26 Mar. 28 Mar. 29 Apr. 6 Apr. 12 Apr. 17 May 3 13 KL CORNEVILLE Mar. 22 Mar. 26 •May 2 Apr. 22 Apr. 17 MINIMUM RATES FROM MANILA I First ’ Tourist P90 P190 1 CPR (EMP. JAPAN) 58 105 2 CPR (EMP. CANADA) J First 3 Tourist P90 58 P190 105 3 CPR (EMP. ASIA-RUSSIA) J First I Tourist P90 52 P190 95 4 DSSL (P. HOOVER-COLIDGE) J First v Tourist P90 58 P190 105 5 DSSL (535-PRES. TAFT) J cirst > Tourist P90 52 P190 95 P250 P275 $365 $450 $450 $450 155 170 220 270 270 270 P250 P275 $360 $440 $440 $440 155 170 215 260 260 260 P250 P275 $326 $440 $440 $440 140 155 190 230 230 230 P25O P275 $365 $450 $460 155 170 220 270 275 P250 P275 $360 $420 $430 140 155 190 230 235 1 First P90 P190 6 AML (PRES. JACKSON) ) Tourist J First 52 95 8 NYK (ASAMA-TATSUTA) . Second 9 NYK J Cabin (TAIYO) i Tourist 10 NYK SEATTLE SERVICE J First S Tourist P250 P275 140 155 $360 215 $285 155 $400 230 $345 180 $440 $450 260 265 $345 $350 190 195 11 FL First 12 BL First $20 $35 13 KL First 14 BF (Rate from Hongkong) First 15 ML First $25 $45 16 SL First $20 $60 $55 $55 $70 $75 £35.0.0 $150 $195 $140 $220 $165 $160 December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 43 The True Story Station KZRM • As a follow-up to its story re Govern went aid to radig sta tions in the Philippines in its November number, the JOURNAL herewith prints the results of a recent investigation it has made into KZRM. The figures contained herein are substan tially accurate, and all statements of fact have been care fully checked. It is hoped that this article, as have other JOURNAL investigations, will serve to correct mis-impressions of fact which may have existed in the minds of our readers. —Ed. Radio Station KZRM accepts financial assistance from the Commonwealth Gov ernment, which assistance is made possible through the collection of the radio license fees imposed under Act No. 3397, as amended by Commonwealth Act No. 107. These license fees are collected annually by the Bureau of Internal Revenue, and amount to P10.00 for tube sets, and P2.00 a year for crystal sets. There are some 34,000 radio sets regist ered with the Secretary of Public Works and Communications, paying, under the law, P10.00 yearly. This works out to P340,000.00 annual income to the Govern ment from this source. Actually, however, the Government col lects only about P200,000.00 in license fees, due to the ingenuity displayed by many owners of radio sets in avoiding the tax. The law contains a provision that payment of the fee may be avoided when radio sets are out of order, and during the period that they are out of order. In other words, set owners are allowed a proportionate re duction in their license fee for the period that their sets are not working. Many set owners have seized upon this provision of the law to evade the tax alto gether. Although the Government tries to prevent evasion by having radio repair shops report all sets turned in to them for repair, and by other regulations, tax evaders still can easily avoid payment. lities of KZRM at any time. All contracts written by the station with sponsors for radio time contain a proviso that programs going out over the station under such con tracts may be interrupted or suspended at any time. One of the purposes of this pro vision is to enable the station to meet any demands of the Board for radio time. Secondly, the National Information Board now broadcasts three programs daily over station KZRM. These are excellent pro grams, enjoyed by the radio audience, but the fact remains that they cost the Govern ment nothing. The third, and perhaps the most important advantage accruing to the Government through this subsidy is the fact that the Government is thus relieved of the im portant expense attendant upon equipping and maintaining its own radio station. It would cost about P250,000.00 to equip a radio broadcasting station. This would be just the bare expense of transmitters, control boards, microphones, etc., which go into a broadcasting station. Maintenance of such a station, at least a station of the size and strength of KZRM, would run into P10,000.00 a month. This figure is approxi mately the monthly operating cost of KZRM. So, for its P45,600.00 a year, the Gov ernment gets access at any time to an es tablished radio broadcasting station—a sta tion which lately through its new short wave transmitter is becoming known all over the Far East. ..; broadcasts three programs daily over this station, and is relieved of a P250,000.00 initial cost, and P10,000.00 monthly maintenance cost at tendant upon having its own broadcasting station. ■In this connection, also, it might be well to mention the obvious fact that the pro grams going out over KZRM are not the least of the reasons why the Government is able to collect a license fee at all. It should also be borne in mind that, even after paying the station its subsidy, the Government makes a profit of about Pl 20,400.00, which is left over out of the proceeds of the radio set fee. The law provides that any such profit to the Government shall be spent in the pur chase and distribution of radio sets among municipalities and Government institutions. A sincere attempt has been made to carry out the provisions of the law in this respect, with quite discouraging results. It has been found that, especially in the smaller municipalities, there is no one who knows enough about radio to keep the sets in repair. They are constantly getting ?ut of order, and must be sent some distance to a repair shop, where, frequently, they stay for weeks and even months. And the The system used is for evaders tempo rarily to disable their sets by putting in worn-out tubes, or by some other means, and then to request inspection by the Gov ernment tax men. Through this means, they easily obtain certification that their sets are out of order, and the sets never see the repair shop. Since Government records show the sets out of order, and no record of the sets being repaired is at hand, the license fee is not paid. What becomes of the P200,000.00 which is actually collected? Well, of course, a substantial percentage of this is eaten up in costs of collecting the tax, and in regis tration of radio sets, keeping of records, etc. A safe estimate would be Pl.00 per each registered set, used ud in this way, or P34,000.00. This leaves approximately P166,000.00 left to the Government from license fees annually. Of this amount, the Government has been paying station KZRM about P3,800.00 a month, to make up the station’s difference between operating income and expenses, or P45,600.00 annually. For this subsidy, the Government has been getting value received. In the first place, it is entitled, through the National Information Board, to the use of the faciAll-Wave Design in New Horizontal Cabinet Model 193, for AC current Three tuning bands, 16-545 meters DILOT has created the outstanding 1 horizontal-type all-wave radio in this model. It is as lovely in its ap pearance as it is beautiful in its tone quality and its sensitiveness to for eign stations.—5-tube superheterodyne Multi-purpose Metal Tubes—over size dial with foreign and U. S. sta tions logged in easy-reading type—2speed' tuning—Class A power pen tode—phono pick-up and extra speaker connections—tone control—improved AVC—selective lighting—8-in. speaker. SOLE IMPORTERS JOSE OLIVER SUCCESSOR, Co. 317 Carriedo, Manila Tel. 2-15-37 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 44 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 V smaller districts frequently do not have enough money to pay repair bills. Station KZRM can never make money under present conditions. Its owners, Er langer and Galinger, Inc., do not, in fact, expect ever to break even, although the station at present has so many sponsors, that its management wants to drop some of them, and replace some of the sponsored programs with sustaining features. This apparent anomaly is explained by the fact that in the Philippines, at least for the present, a broadcasting station is limited to about eight and one-half hours daily broadcasting time. This is due to the costumbre of the people. KZRM goes on the air every morning at 5:30. This is primarily to broadcast news. 10 ENGINEERING TRIUMPH FOR 1938 Zenith Model 7-D-229 ZENITH can guarantee For eign reception because only ZENITH incorporates: • “Robot” dial • Electric Automatic Tuning • Personalized Acoustic adapter • Wave Band Selecter • Spinner Tuning • Sensitivity Control • Service free Engineering Guaranteed Foreign reception II., IBIECK., INC. Sole Dutributors 89-91 Escolta, Manila Miiniln — Cebu — Baguio — Daet — Paracale At six o’clock in the provinces, with the ex ception of those larger districts near Manila which are served by Meralco (and even in some of them) electrical service is discon tinued. Service is not resumed until six o’clock in the evening, so, for a period of twelve hours, KZRM is limited to its short wave audience, and Manila and the larger Meralco-served municipalities. By nine o’clock in the evening, most of the people in the provinces are asleep. So, good broadcasting hours from the point of view of sponsors, are limited to from 5:30 to 6:00 in the morning, and from 6:00 to 9:00 at night; a period of 3 and V2 hours. This is the time for which KZRM gets full rates from sponsors. The rest of the 8 and % hours it is on the air is worth only 1/3 to 1/2 of the full-time rate to sponsors. In the United States most of the big sta tions give 18-hour service. Income from sponsors at KZRM amounts to about P6,000.00 monthly. Since its ope rating expense is about P10,000.00 a month, the P4,000.00 or so difference is met by the Government. As we have seen, it is a good bargain for the Government. And KZRM is satisfied. There are two methods by which radio broadcasting is supported. One is the American system of sponsored programs. Under this system, advertisers underwrite the whole cost of broadcasting, and with enough more to net broadcasting companies a handsome profit. The other system is that used in England, and generally in Europe, of licensing re ceiving sets at a fee, and using income thus obtained to pay broadcasting costs. Each system has its advantages and dis advantages. As things now stand, a mid dle course is followed here. The cost of broadcasting, at least as far as KZRM is concerned is divided between private spon sors and the government. As we have stated, this is satisfactory to KZRM. The station was not started, and is not run for profit. KZRM officials stated to the JOURNAL that, while of course there are strings to the Government money it gets, the Gov ernment has not pulled these strings too tightly. Every program, and every speech broadcast over the station must be sub mitted to the censorship board before being broadcast, but, so far, this board has not been unreasonable in its censorship, and has used its powers lightly. One way for KZRM to make income catch up with expenses so that it would no longer have need for Government help would be for it to raise its rates for radio time. It could not do this to any great extent until the radio audience increases considerably over what it is now. This can only b9 done by bringing the cost of radio receiving sets down to a price which the poorer classes can afford to pay. When ques tioned as to the best way to do this, Mr. Worthen, KZRM manager, stated that he thought the solution would be crystal sets. Head-phones can be made and sold for as little as P1.00 a set. The cost of crystal sets is insignificant. These sets are strong enough to pick up KZRM broadcasts, and they operate on batteries, and so are not dependent on electricity from a central source. They do not get out of order very easily, and when they do, the cost of re pairing them is almost nothing. The Gov ernment could well use its surplus from the radio license tax, and buy and distribute at cost crystal sets and receivers, thus enormously increasing the present radio audience. This is how radio got its first big impetus in Japan—through the lowly crystal set. Of course, if this program were followed here, the license fee of P2 00 now imposed on crystal sets, should be abolisheu. It is a nuisance tax on the poor man, and would tend to retard any large-scale program of taken. AMERICAN-BOSCH RADIO Model 812—5 tubes, 8-tube performance New 1938 AMERICANBOSCH built especially for dependable WORLD-WIDE Reception ASK FOR A FREE TRIAL AMERICAN-BOSCH RADIO Model 828L 7 tubes, 9-tube performance. Short and long wave • General Agents: C. 1LLIES & CO. 550-556 San Luis, Manila Sub Agents: P. Armena & Co. BAGUIO Ohta Development Co. DAVAO O. K. Bazar ZAMBOANGA IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL i ir /•' < ill ii hi i h ut .Ma Id ca iKi ii i/ UP TO DATP COMMFRCIAI R1 VIFWS The Home and Garden which you always dreamed of— SAN JUAN HEIGHTS is the best place for it. SAN JUAN HEIGHTS CO., 680 Ave. Rizal P. O. Box 961 INC. Tel. 2-15-01 MANILA L ccmber, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 45 Title Insurance Company (Continued from last month’s issue) • The Ultimate Development in Real Estate Security, and Invaluable Aids to Those ivith Land to Sell or Money to Loan. A modern title insurance company offers the public a varied list of important serv ices. First of all, of course, it issues poli cies of title insurance upon real property. The procedure is for a prospective buyer of land to give the title company a descrip tion of the property he proposes to buy, and requests what is known as a Preli minary Report upon Title. Title companies now have such excellent and complete re cords in their offices showing all real es tate transfer (or nearly all) in their par ticular counties, and their personnel are so highly trained in the work of running down titles to real estate that, within two or three days in the average they are able to issue Preliminary Reports showing in detail the ownership of property, taxes against it including sales for unpaid taxes, if any; mortgages or other security in struments; “stray” deeds; defects in title resulting from imperfect probate proceed ings—in short complete reports upon tne title as of the date of the reports. Title Insurance Companies are geared so as to take most of the work out of the hands of the client. As often as not, clients request a “search” of the title of a piece of land without knowing the description of that land. They may know the name of the adjoining owner, or they may know that the particular- property is about 100 feet from a church, or some such other exasperatingly vague description. This is enough for the title company. From it the exact piece of land in question can be found, and reported on. The Preliminary Report carries no liabil ity on the title company. It is what its name implies—a report preliminary to the closing of the deal. Prospective buyers or mortgagees are expected to study the report and, if they are satisfied with the condition of the title as it appears there on, they may proceed to close the deal with their other parties and the title policy will be issued. If the report shows the title to be seriously defective, they may demand that the other party clear it up, either by an action in court, by obtaining quitclaim deeds, or by other means satisfactory to the title insurance company. As we shall see, title insurance com panies commonly ' go much farther than this. They frequently are called upon to explain to their clients the nature and im portance of any defects in title which ap pear, specify the steps which will be nec essary to remove those defects, and even to take those steps themselves in some cases. Title men have been known to go so far as to go out and get quitclaim deeds themselves and put’them on record, in or der to clear up a title, and close a deal. Banks, Building and Loan Associations, the Federal Government lending agencies, private lenders, real estate brokers—in short, all those who deal in real estate now demand title insurance where they can get it. This means, simply, that the title companies have the final say as to whether a real estate transaction shall be completed, simply by agreeing or refusing to issue a policy of title insurance. Title companies also issue what are known as “Litigation Reports.” These are reports upon title similar to their Preliminary Reports, made at the request of, usually, lawyers contemplating litigating over real property, or bringing litigation which might incidentally involve real property. With a Litigation Report in hand, an attorney is in a position to draw a fool-proof com plaint or other pleading. Mortgagees who are forced to foreclose on property request “Foreclosure Reports.” Through the use of them, mortgagees can carry through to completion foreclosure proceedings which will meet all of the strin gent requirements of law, and result in a clear title in the mortgagee, free of all junior encumbrances. Title Insurance Companies do not confine their activities to real property. They fre quently examine records for instruments describing personal property, either because such instruments may incidentally create encumbrances on real property, or because they are requested to do so by clients con templating chattel mortgage loans. Other incidental services rendered by title insurance companies could be described. The most important of these is the Escrow Service. Many of these companies maintain Es crow Departments. These departments are Whether your paint ing job is an in terior or exterior one, FULLER & CO. have a superior paint prod uct to suit your requirements. FULLER PAINTS PURE PREPARED J k PAINT ji NORTON & HARRISON CO KNEEDLER BUILDING MANILA, P. I. L IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 46 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1937 composed of men who are highly trained in real property law, contract law, the law of wills and succession, insurance law, etc., and act as agents of buyers and sellers, and mortgagors and mortgagees in helping them to close real estate transactions. They re ceive, for example, a deed from a seller, with the former’s instructions to deliver the deed when the escrow officer has re ceived a certain amount of money for the account of the seller. From the buyer the escrow man will take the specified amount of money, with instructions to deliver it to the seller when the title insurance com pany can issue its policy of title insurance showing the title to the piece of real prop erty in question to be in the buyer, free HER CHRISTMAS PRESENT CORY COFFEE BREWER Smart and Modern! Many Exclusive Features CORY "FAST-FLO" FILTER Control* limo and temperature. Avoid* metal contact. Iniurc* finer colic* quicker Patented Funnel Holder Colli you no extra Decanter Cover Attractive I Hinged I Never need* removing Formed Pouring Lip Avoid* ipatter In icrvlng SEE THIS MOST IMPROVED GLASS COFFEE BREWER Remember the Electric Element is guaranteed for one year. Escolta Drug Co., Escolta See it operate there Cadwallader Cochran Foot of Jones Bridge Elmacs Electrical Store 627 Rizal Ave. R. J. YEARSLEY Distributor 429 Samanillo Bldg., Cory Service Phone 2-26-66 and clear of all liens or encumbrances. This is the simplest form of real estate deal. It is, of course, “duck soup” for the escrow officer. Unfortunately for his peaceful existence, however, many prop erty transactions are not so simple. Some times three or more pieces of property are traded back and forth. Encumbrances existing are to be paid off, or assumed, or transferred. Fire insurance must be trans ferred to new owners, or cancelled and new policies obtained. New encumbrances must be obtained, and recorded in their proper order. As a usual thing, clients do not know how to write instructions to the escrow department which will embrace all of the elements involved in even the simplest deal. The escrow officer must himself write these instructions, and get them signed. Strangely enough, he prefers this situation. It is when attorneys or real estate brokers unfamiliar with modern methods of handling property deals under take to write long, involved and utterly useless instructions that he tears his hair. When the escrow department has ob tained all of the instruments necessary to comply with instructions received from all parties to a deal (usually buyer, seller, and mortgagee), it then records these instru ments with the County Recorder, and the policy of title insurance is issued. Then funds are paid to whomever is entitled to receive them under the terms of the escrow instructions. Usually funds are paid to the seller, to the real estate broker for his commission, and to the former mortgagee. The deal is then marked “closed.” It is impossible to glean from the fore going even an inkling of the enormous im portance of the services rendered by title insurance companies in real estate transac dew ESTABLISHED 1812 ---- -------Capital (Paid) - - U. S. $ 77,500,000.00 Surplus —- ” 43,750,000.00 Undivided Profits ” 12,949,374.52 Total Assets------- $1,893,890,871.77 (as of March 31, 1937) --- ■■ =--COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building tions. Without them, it is safe to say that real estate “booms” in many localities would be impossible. Through the use of their facilities, real estate brokers are relieved of the tedious details of their transactions, and are left free to consummate sales. Even their commissions are paid directly by the title companies—one of the best features about title companies, from the brokers’ point of view. There are no institutions in the Phil ippines which resemble title insurance com panies. It is argued that they are not needed here, because of our system of re gistering titles under the Torrens System (Act 496). Under this system, an insur ance fund is provided, out of which are paid losses to buyers or mortgagees result ing from certain specified failures of title. We italicise “specified”—many of the most frequently-encountered failures of title are not insured against under this system. Besides that, many restrictions hedge about recoveries from the insurance fund, even in ordinary cases. In the next issue of the Journal we ex pect to outline in our opinion how the Land Registration Law is defective. Sailing the... (Continued from page 39) population is housed here in homes built on the high piles, being born, living and dying without leaving the place. It is a world of its own tiny shops, stores, houses and homes all jumbled together and on top of each other. In down town Jolo, there are splendid examples of old Spanish houses, including the Customs house built, as usual, around a court, with overhanging second stories. The old wall which once defended the city, is still to be seen in parts of gates and other defences. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 47 IF YOU LIKE HILLTOPS— WHY NOT LIVE ON ONE— AT MANDALOYON ESTATE Coo I El evated and Spaciou/ Lot/ All Modern C onvenience/ Near Wack Wack Golf Club 25 Minutes f rom Plaza Goiti PRICES FROM -P-0.80 TO -P-2.00 PER SQUARE METER ORTIGAS, MADRIGAL Y CIA. S. EN C FILIPINAS BUILDING TELEPHONE 2-17-62 I (Tune in on our regular Tuesday Night Program over station KZRM— 9:00 to 9:30) $ IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 48 THE AMERICAN CHAMBER OF COMMERCE JOURNAL Dcce-bcr. 19 V Building in and about Manila HIGH COMMISSIONER’S RESID ENCE: The American High Commissioner’s combined offices and residence is to be built soon, it was announced. Bids will be opened shortly, and construction will Start early next year. The High Commissioner, Hon. Paul V. McNutt, has been living with his family in El Nido, attorney Perkins’s residence on Dewey Boulevard, and has been using half of the Elks Club for his offices. Constantly ALERT TO YOUR NEEDS WE MANUFACTURE Drainage Pipes Hume Centrifugal Pipes Cement Pipes Floor Tiles Roofing Tiles Keystone Bricks Hollow Blocks Posts Clay Bricks Synthetic Marble Terrazo The selection of the right company to manufacture your cement products is the first step in economical con struction. If we were not continually seeking perfec tion, to improve the quality and reduce the cost, our ce ment products would be the same as others. Our aim is to give the consumer a bet ter product than his money could buy. Our Manufacturing plant, the largest in the Philip pines is equipped to turn out all kinds of cement products. Products of the highest qual ity yet at the lowest prices. We would be glad to con sult with you on your par ticular needs. Manila Hume Pipe & Tile Works, Inc. Factory & Office—1003 Cordeleria P. O. Box 2045—Manila Tel. 6-71-10 Rumor has it that Oscar Campbell, for mer Manila contractor, and builder of the National City Bank Building, will bid on this job. Mr. Campbell now lives in Palo Alto, California, but he was here for sev eral months on a visit. It is his custom to come out here from time to time, erect an important building or two, and then go back to Palo Alto. Stringent bonding requirements will pre vent many local builders from submitting quotations on the job. This construction project is booming building along Dewey Boulevard and other Malate districts. Several apartment houses are now being constructed there, and more will be commenced next year. Apartment houses have always paid their owners well here. Many American and foreign families, most of them without children, come to Manila intending to stay for three years or less. They have no de sire to build or rent a home here, and anartment house life suits them exactly, since it cuts their housekeeping responsi bilities to the irreducible minimum. Ma nila has never had enough first-class apart ment buildings or hotels to accommodate this trade. Those who, like Dr. H. D. Kneedler, have had the vision and the con fidence to put their money into apartment houses and hotels in Manila, have pros pered deservedly well. Even with the pre sent mild “boom” in construction, it is hardly likely that the saturation point will be reached. MANILA HOTEL SWIMMING POOL: In spite of an occasional Englishman who complains about Manila Hotel waiters serv ing from the left side, the Manila Hotel is known far and wde as a hotel as good as any that can be found in the Far East. Catering to a somewhat well-to-do clientele, this hotel competes with no other in Ma nila. This has been especially true since the new air-conditioned wing was inaugur ated, and will be truer than ever with the opening of the new swimming pool. The pool will be opened this month, ac cording to Mr. Mendoza, genial assistant manager. It will be reserved for hotel guests and their guests, for w-hom it will be free. No expense has been spared to make it as fine as any of the numerous pools in and about Manila. P400,000.00 DEAL: The Rufino family, theater operators, purchased this month n large lot and building on Rizal Avenue, formerly occupied by the old Liceo de Ma nila, at a price reputed to be P400,000.0'i. Leopoldo Kahn, wealthy businessman, was the seller. The lot occupies an area of about 4,000 square meters. The building on it is 00 years old, and has stood empty for many years. After the old Liceo closed its doors, it became the headquarters of the old Democrata party. The Rufinos admit only that they will erect a new building on the site. They will not state what it will be. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOTRWV December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 49 SUGAR REVIEW By Sidney Plato The domestic sugar market over a period of the past month was almost entirely featureless. Buyers and sellers ideas covered a ten point range between P4.60 and P4.70 with the last week show ing a firmer tend ency at prices rang ing between P4.70 and P4.75. However, there are indications of transactions hav ing been made at prices slightly lower than the reported market quotations. This busi ness was done by the smaller dealers and there were not any evidences of sizeablo quantities with the old crop still being very much in evidence and awaiting further dis posal by local traders. The trade is now awaiting the new year quotas which will point the way for new values of this com modity in 1938. until the immediate future of this, market is more clearly defined by the announce ment of the new United States quotas for the coming year. This phase of the sugar picture is a trifle obscure, the fate of the quotas being entirely in the hands of Sec retary Wallace. Philippine producers are, nevertheless, inclined to take an encourag ing view of the final outcome. One prom inent sugar grower expects to see the New York price for duty free sugar at about 3.60 or 3.65 during the middle of 1938. If this high price is realized, it will mean a more lenient attitude on the part of Mr. Wallace towards American refiners. On the present basis of 3.30<? for spot sugar, refiners are getting $4.85 per 100 lbs. for their manufactured product. An increase in the spot price will see higher values for refined sugar and which will probably be $5.05. A highlight in sugar during the past month was the freight situation. Ship owners were not inclined to consign their vessels since a Conference Rate of $12 per ton was indicated. This restricted the movement of sugar for some time but with the Rate r.ow fixed at $10, chartering is being done freely. Spot prices in New York for Philippine sugar have experienced a widely fluctuat ing range. Over a period of approximately six weeks this market gradually advanced from a low of 3.5<? per pound to 3.45c. Currently, spots are quoted at 3.30c. The New York futures market has been a stagnant affair with the No. 3 contract showing very little change. This market has acted remarkably steady in view of its extremely nervous condition with fluctua tions confined within a five point range It seems to be torn between a steady but moderate demand from refiners, who have kept their stocks low, and uncertainty over what action to expect from the Administra tion. The next major move of this market depends entirely upon extraneous circum stances and, from a speculative angle, should not be too closely followed. On the other hand, the futures market may soon be in an excellent position to serve the Philippine sugar producer to good advan tage. In that event, no better medium could be desired for actuals sugar opera tions. The export market was a more lively af fair with increasing interest shown in the new crop sugars. The 1937 quotas had been filled up to about 97% by the end of November and all attention is now being given to the new milling season. The 1938 sugars are giving a good account of them selves, sellers’ offerings being slightly above the current market. However, the trade is not anxious to make commitments Nicanor M. Bautista ARCHITECT 428 Rizal Ave. Tel. 2-94-13 Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 50 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1937 COPRA AND ITS PRODUCTS By KENNETH B. DAY and LEO SCHNURMACHER Kenneth B. Day LEO SCHNURMACHER November was a very weak month for all coconut products. Owing to the in creasingly evident oversupply of all fats and oils, particularly cottonseed, plus the general decline of American industry which assumed large proportions during the month, the tendency of both copra and oil was downward, almost without a break from the beginning of the month to the end. COPRA—Copra arrivals showed a sea sonal decline in November, but this decline was very much more evident in Manila than in Cebu. In Manila, arrivals were around 25% under those of October but were almost 50% above those of November 1936, and were 17%% above the average for the past eleven years. Cebu recorded the biggest November on record and while arrivals were 6% under those of October, they exceeded those of November 1936 by 74% and were 82.6% above the last eight years average. Cebu arrivals have been exceptionally heavy this year and bid fair to continue heavy for the future. The month opened with copra selling in the Manila market at P8.50 per hundred kilos resecada. Prices gradually slumped almost of their own weight until by the middle of the month they were down to P7..75 and at the end of the month buyers’ ideas were P7.00 with no business done at over P7.25. Sellers resisted the decline all the way down the line, but it was evident that the reaction in copra was consistent with the reaction in other commodities the world over. Nevertheless, it was felt that at the end of the month a good deal of copra was being' held in storage in the provinces with the hope that prices may react upward in December, or January at the latest. Export markets for copra declined throughout the month both in Europe and in the United States. In Europe, prices dropped from £14/2/6 to £12/10/0 for sundried quality with F.M.Q. quoted at 5 shill ings lower. On the Pacific Coast prices dropped from $2.55 per hundred pounds c.i.f. to $2.25. A fair amount of copra was sold both to Europe and the United States during the month. Some Philippine dealers had copra space available at previous freight rates which they were able to cover up profitably in November. Some busi ness, however, was done at current rates. Most export business was for NovemberDecember shipment and it was thought that dealers were not overselling themselves on this market. Shipments for the month maintained fairly good levels. A recapitulation of shipments for the year shows a total of 203,771 tons exported in 1937 as against 263,798 tons exported in 1936—a decrease of almost 23%. A large part of this was due to the shortage of copra during the first few months of the year plus the im possibility of transporting copra to the United States owing to the shipping strike. Coconut oil, on the other hand, is holding up very well with exports of 148,557 tons for the first eleven months of 1937 as against 148,893 tons for the first eleven months of 1936. Statistics for the month follow: Arrivals: Sacks Manila.......................................... 381,839 Cebu ............................................ 451,343 Shipments: Metric Tons Pacific Coast ................................ 17,338 Atlantic Coast.............................. 1,917 Gulf Ports...................................... 4,090 Europe............................ 2,063 Other Countries .......................... 701 26,109 Stocks on hand: Beginning End of of Month Month Tons Tons Manila ..................... 36,104 30,060 Cebu ......................... 30,184 29,064 Big Nights at =TOM’S^= ORIENTAL GRILL Dinners-----Gay Suppers----Dancing Every Evening! You’ll enjoy the EXCELLENT ORGHESTRA IDEAL DANCING FLOOR and the DELIGHTFUL ATMOSPHERE * TOM’S DIXIE KITCHEN Famous for its First-Class Cooking Meeting Place of Manila’s Epicureans Call the Sugar News Pre// Tel. 2-12-75 for ENGRAVED • X’MAS CARDS • INVITATIONS • STATIONERY Printers of Reliability IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 51 COCONUT OIL—The month opened with buyers of coconut oil enitrely out of the market but indicating that they might do 4 cents c.i.f. New York if oil were offered. Early in the month sellers agreed to a 4<! price, whereupon buyers again dropped to 3% cents, and by the end of the month were not even bidding 3% cents although some business might have been done at this lat ter figure. During this whole period there were two slight bulges—one on the 12th of the month when a little oil was sold at 4 cents, and another on the 23rd when a little more oil was sold at 3% cents. Pacific Coast prices were slightly under those of the East Coast and the demand was limited to small quantities of spot oil. At the end of the month a few tanks might have been sold on the Coast at 3V2 cents but the general idea of buyers was 3% cents. Whatever demand there was came from soapers with edible buyers preferring to use cheaper priced cotton-seed oil and other lower priced substitutes. It was felt that until the surplus supplies of these lower priced oils, and particularly cotton seed oil, were taken from the market, no material improvement in prices can be ex pected. Shipments for the month totalled nearly 18,000 tons of oil, which was considered a fairly heavy amount. Statistics for the month follow: Shipments: Pacific Coast ........................ 1,840 Atlantic Coast.............................. 12,913 Gulf Ports .................................... 2.722 EUROPE ...................................... 340 China and Japan ........................ 63 Other Countries ........................... 25 Stocks on hand in Manila and Cebu 17,903 Beginning of Month Metric Tone End of Month Metric Tons 9,038 11,621 COPRA CAKH AND MEAL—With sel lers having covered themselves fairly well earlier in the year, and with space to Europe very difficult to obtain, there was not much business in copra cake during November. What little business there was ranged at prices from P43.25 f.o.b. for De cember shipment to P41.50 for January forward, the differential largely represent ing a freight increase which becomes ef fective January 1st, 1938. These prices, however, were about as good as the Amer ican meal market in which some little in terest was displayed at prices ranging up to $27.50 per short ton c.i.f. Coast ports. At the end of the month additional space for Europe for shipment the first quarter of next year came into the market and it is expected that a fair amount of business for the first quarter of 1938 will be done in December if prices maintain their present levels. Statistics for the month follow: Shipments: Metric Pacific Coast ................................ 2,659 (Includes 55 tons shipped to Honolulu) Europe .......................................... 11,278 Total ........... ■........................• 13,937 Beginning End of of Month Month Metric Metric Tons Tons Stocks on hand in Manila and Cebu 10,903 7,695 One of the latest products is the fountain in the garden at Malacahan made of Synthetic Marble. Architects and interested parties are invited to call at the factory of the MANILA ARTISTICAL DECORATION CO. 530 Raon MANILA Phone 2-67-91 DESICCATED COCONUT—The desic cated market continued quiet in November. Prices continued unchanged, although it had been previously anticipated there might be some price re-arrangement in November. Consumption of desiccated coconut was down nearly 50% as contrasted with No vember, 1936. As stated previously, this was partially due to the bad weather in the States in 1937, but also due to the heavy supplies of peanuts and almonds during this year, which have made these products more attractive to the low-priced candy trade than desiccated coconut. Stocks re mained high in the United States and mills are controlling their operation in accord ance with what they think they can sell. The future looks uncertain, but apparently there will not be any large increase in the trade within the next few months. Shipments for the month totalled 3,313 tons. GENERAL—During November the coco nut regions were visited by two rather severe typhoons. These storms will have their effect on next year’s poduction, par(Please turn to page 53) BEAUTIFY Gardens with your homes, Offices and SYNTHETIC MARBLE obtainable in artistic and beautiful colouring to match architects’ colour schemes. The texture is uniform, non disintegrating and will not flake or crack. • WASHINGTON GROCERY MAIN STORE BRANCH STORE 203-05 ECHAGUE 355 A. MABINI, ER. TELS. 2-17-17—8—9 TELS. 5-71-61—5-71-20 FANCY AND STAPLE GROCERIES, WINES & LIQUORS FRESH FRUITS & VEGETABLES CHOCOLATES AND CANDIES ETC. 215-17 ECHAGUE AMERICAN GROCERY TELS. 2-16-14—15 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 52 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 >7 SHIPPING REVIEW By H. M. CAVENDER General Agent, The Robert Dollar Co. During October there was little change in the shipping ditions. " ’ tion at Shanghai re mained exceptionally unsatisfactory. W e note a falling off of shipments to the Orient, particularly noticeable as to Japan who curtailed her purchases of logs and hemp, taking 5 million feet less of logs and practically no hemp. There was a move ment of Shanghai distressed cargo to va rious ports. The outward movement for October to talled 172,879 tons, 16,000 less than Sep tember. Practically closing out the season the sugar interests shipped only 15,202 tons of centrifugal and 2,382 tons of refined. Shipments of desiccated coconut—5,789 tons measurement were normal. No tank ers were available for coconut oil, the berth line steamers lifted 14,821 tons for United States delivery and 670 tons for Europe, normal amounts. Copra shippers for warded 21,965 tons to the United States and 6,735 tons to Europe, one chartered vessel took a full cargo to Pacific Coast, we understand that other vessels have been chartered for November and December loading. The conference lines were unable to furnish the needed space. The United States took 2,665 tons of copra cake-meal, The situaEurope 5,200 tons and China 50 tons. Shipments of all coconut products were on a normal scale. We are obliged to show a discouraging picture as to hemp. The United States upped her purchases to 27,060 bales. Japan took only 4,852 bales as against her customary 50,000 or more. Europe took 47,535 bales, a drop of 5,000 bales. The total shipments amounted to 89,771 bales only. This is at least 40,000 bales below normal business. The movement of lumber and logs dropped to 5 million board feet. Japan, the heav iest buyer for a long time took only IV2 million feet. The United States took 21/? million feet, Europe % million feet, and small lots went to Australia and South Africa. Ore shipments also dropped off. Japan took only 47,508 tons of iron ore, at least 13,000 tons below normal, due to a lack of tonnage. She also took 4,957 tons of cop per ore and 1,385 tons of manganese. The United States took only 2,900 tons of chromite and 541 tons of concentrates for refining. Small and sample lots bring the - total to 57,860 tons. Cigar shipments, 1,088 measurement tons, were quite satisfactory but ship ments of tobacco were only 434 tons. Two small lots of molasses, total 1,380 tons, were shipped. Shipments of embroideries, vegetable lard, margarine, furniture, gly cerine and junk were about as usual. Shipments of gums., kapok, kapok seeds, skins and hides dropped off. Slight in creases are noted in shipments of rope, rubber, cutch, liquors and charcoal. Tran sit cargo, including Shanghai distressed shipments, were noticeably heavy. During October notice of increases in rates on practically all commodities to United States was sent out. On minor commodities these increases to take effect on January 1st next. On major commo dities to take effect on February 1st next. From Statistics compiled by the Asso ciated Steamship Lines during the month of October there ‘ ' Philippines the vere exported from the following:— To ss ss PRES. GRANT . . PRES. JACKSON * SS * SS PRES. PRES. SS ss PRES. PRES. Port Area Were carOf American Which bottoms Tons with 5 China and Pacific Coast Local .............. Pacific Coast Overland .... Pacific Coast Intercoastal Atlantic and Gulf Coast .............. European Ports . All other Ports A Grand Total of , total of 86 sailings (average 2,010 tons per vessel of which 34,634 tons were carried in American bottoms with 12 sailings (average 2,886 tons per vessel). The following figures show the number of passengers departing from the Philip pines for China, Japan and the Pacific Coast for the month of October, 1937: First Intermediate Third " ‘ 38 ................ 0 8 2 75 0 69,415 32,921,272 1,270 42,980 20,805 4,213 45 16 8 5 22 16 25 7,581 13,806 627 228 11,035 87 1,270 4 2 7 3 5 172,879 tons with a Hongkong ................. Shanghai ................... Japan ........................... Honolulu ..................... Pacific Coast ........... Europe via America . Total for October, 1937 ..................... 123 Total for September, 1937 ..................... 137 TO SEATTLE & VICTORIA “The Express Route” via Hongkong, Kobe, Yokohama ........... Dec. 27 SS PRES. JEFFERSON ........... Jan. 12 SS PRES. McKINLEY . Jan. Feb. 26 9 102 0 13 2 65 0 182 229 64 0 17 24 17 0 122254 TO SAN FRANCISCO, NEW YORK & BOSTON “The Sunshine Route” via Hongkong, Japan, Honolulu, Los Angeles, Panama Canal & Havana COOLIDGE................. Jan. 5 SS PRES. CLEVELAND .............. HOOVER ................... Feb. 2 * SS PRES. COOLIDGE ................ 1 * To San Francisco and Los Angeles only TO NEW YORK & BOSTON via Straits, India, Egypt and Mediterranean ports VAN BUREN ............. Jan. 5 SS PRES. HAYES ....................... GARFIELD................. Jan. 19 SS PRES. MONROE ................... 1 For further particulars, apply to Feb. Mar. Feb. Feb. LINE LINES 19 2 2 16 Tel. 2-24-41 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Dece...oer, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 53 THE RICE INDUSTRY By Dr. V. Buencamino Manager, National Rice & Corn Corporation The market en countered very aggressive buying throughout the period under review. In the face of a greatly reduced crop and the comparative ly light arrivals from the supply ing centers, prices hit new highs for the year, Elonelon netting an advance of 85<J and Macan 45(J. Sellers’ position was strengthened further by the continuous rains during the month which rendered the drying of the early crop extremely difficult. The trade, therefore, had to depend mainly on the old crop which was already nearing exhaustion. What little of it remained was in strong hands. At the close of the period there were strong indications of further appreciation in values. November arrivals by rail and water were the lowest during the year, as may be gleaned from the following table: Month January . . February ........ ............... March................................ April ................................ May .................................. June .................................. July .................................. August ................. September ......................... October ............................. November ......................... Quantity 183,848 sacks 174,406 ” 202,598 ” 181,318 ” 144,708 ” 160,797 ” 194,663 ” 144,144 ” 131,048 ” 125,571 ” 101,265 ” Total ..................... 1,744,366 ” Opening and closing quotations on the Tutuban Rice Exchange were as follows: Elon-elon and Macan (Manila Quality) (Sellers, per sack of 57 kilos, net) Elon-elon: 1st class .... 2nd class . .. Closing Quotations P7.00-P7.10 6.90- 7.00 Opening Quotations P6.15-P6.25 6.05- 6.15 Macan: 1st class .... P5.60-P5.70 P6.05-P6.15 2nd class . .. 5.50- 5.60 5.95- 6.05 Palay prices were maintained above the parity of rice in Manila in view of the expected shortage of the new crop. In spite of very attractive prices being offered by speculators, sellers were not keen in anticipation of more favorable prices in the future. While no definite figure on the extent of the damage sustained by the present crop is available, it is generally admitted in well-informed quarters that it may fall short of the country’s require ments for 1938. Some observers ventured to estimate the probable damage to the crop by as high as 30*7 and look forward to the possibility of the country’s necessitat ing importation from abroad next year. Opening and closing quotation in Cabanatuan are given below: Macan Ordinario (Cabanatuan Quality) (Per sack of 44 kilos, net) Opening Closing Quotations Quotations Macan No. 2 ... P2.60-P2.65 P2.85-P2.90 Inferior............... 2.30- 2.45 2.55- 2.60 Copra and... (Continued from page 51) ticularly in the belt from Samar to north Panay, including Romblon. It is estimated that the total normal crop of the Islands might be affected 10% by the November storms plus the storm which took place early in December. On the other hand, barring accidents, next year’s crop should be a very reasonably good one providing prices will justify production. At the beginning of December all mar kets were very lifeless and the general prediction was that no material pick up in copra and oil can be expected until the second quarter of 1938, although it is en tirely probable that certain markets will improve to a limited extent, notably the European copra market, which with no ex cise taxes to pay, still finds copra very reasonably priced. Mr. >,000 J,874,000.00. Mines... (Continued from page 15) Bergmann estimates present ore reserves at tons of proved and prospective ore, valued at Probable ore is estimated at 50,000 tons, laving an estimated value of Pl,750,000.00, giving a total /alue of P4,624,000.00, “without considering the poten;ial value of undeveloped veins.” The mill is a combined flotation and cyanide plant, rhe flotation part is already installed, and practically ready to go into operation. It has been designed for a naximum tonnage of 250 tons, but provision has been nade for a possible future increase to five or six hunired tons. All buildings, including power house, staff louses, laborers’ quarters, hospital, etc., have been comileted. The staff at present consists of R. G. Bergmann, consulting engineer in charge of operations, Glenn L. Mien, General Superintendent, W. Stine, construction superintendent, A; R. Baba, mine superintendent, and 3. H. Mackenzie, master mechanic. SOLINGEN CUTLERY “TREE” Brand “TWIN” Brand E. VIEGELMANN 460 Dasmarinas Manila, P. I. Tel.: 2-26-64 KUENZLE & STREIFF, INC. Main Office: MANILA Rraneh Office: 343 T. Pinpin CEBU ILOII.O 44-4$ Isaac Peral Tel. No. 2-39-36 ZAMBOANGA Tel. No. 2-17-62 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 54 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 REAL ESTATE By P. D. Carman Boulevard Heights San Miguel................. Intramuros ................. Pandacan ................... Sta Mesa ................... 31,058 59,550 .......... 7,000 1,160 775 18,601 .......... P911.477 P938.068 t Although recorded sales of real estate within the City of Manila show a de cline during the past four months as com pared with the same period of 1936, the January to Novem ber total of P21.448,647 greatly exceeds that of P16,808,594 for’ the first eleven months of last year. For the first time since 1919 Manila Cigar shipments to the United States compare as follows: real estate sales have exceeded P20,000,000 in any year. 1937 with still a month to go will break any known record. Sales City of Manila October 1937 November 1937 Sta. Cruz .......... .... P198.345 Pl 22,200 Sampaloc ............ 174,689 130,120 Tondo ................. 44,554 100,668 Binondo ............. 64,750 77,297 San Nicolas ........ .... 108,500 76,000 Ermita ............... 113,706 49,931 Malate ............... 69,075 169,889 Paco ................... 30,673 126,343 Eta. Ana ........... 18,091 18,295 Quiapo ............... 38,275 TOBACCO REVIEW By P. A. Meyer November, 1937 Nov., 1937 21,965,431 Oct., 1937 .......... 20,428,920 Nov., 1936 .......... 11,151,085 Jan.-Nov., 1937 .......... 173,081,524 Jan.-Nov., 1936 .......... 154,402,028 Belgium ............... Guam ................... Holland ............ Hongkong ............. Italy ..................... Straits Settlements United States .... Rawleaf: Pur chase of the 1937 crop in the prov inces of Cagayan and Isabela con tinues rather slowly. Except for tobacco scraps shipped to the United States the quantity exported was small. Com parative figures are as follows: Rawleaf, Stripped Tobacco and Scrape KUot 2,521 2,010 3,120 4,480 180,000 1,124 208,434 FOREIGN EXCHANGE By Leon Ancheta Manager, Foreign Dept., Phil. Nat. Sant Nov., 1937 401,689 SANSHIN PLYWOOD SUPPLY Lawan Sen. Oregon Pine Douglas Fir Plywood Telephone 2-91-08 P. O. Box 1262 741 Echague Manila, P. 1. Trade and financial factors enabled the dollar to maintain firmly the level that it reached during the prev i o u s month, which is a vast improvement com pared with its position during November, last year. At that time, it was a buyers’ market, banks selling T. T. dollars on New York at as low as 199.25 and buying demand drafts and 60 days sight bills at as low as 198.75 and 198.25 respectively. During November, this year, the situation was reversed. Selling rates for T. T. dollar ruled steady at 199.75 and buying rates for demand drafts and 60 days sight bills at 199-199.25 and 198.75 respectively, or P0.50 better than last year. The sustained steadiness of the dollar is a reflection of prevailing lower prices for the Islands’ export products, in sympathy with general price recessions in the world’s commodity markets. Toward the middle of November, last year, centrifugal sugar (for export), copra resecada, coconut oil and hemp (F grade) were quoting in the local market at P8.40, Fl 4. P.26 and P17.50 re spectively against P7.20, P8.00, P.17 and P15-P16, respectively, for the same period, this year. The cash position of banks also was con siderably stronger. Total cash held by banks in November, last year, averaged P34.500.000 (Manila offices only) against P50 500.000 during the month under review. The dollar showed a marked tendency to move above the October level which, howPhilippine 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 IN RESPONDING TO ADVERTISEMENTS PI.EASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 55 ever, did not materialize due to the sup port which the peso received from gold shipments, of which substantial amounts of the proceeds were sold during the month. Business decline coupled with devalua tion rumors brought about heavy European liquidation of dollar balances resulting in general rise of foreign exchanges against the dollar. Despite official denial of de valuation rumors given out during the first part of the month the pressure on this exchange had not eased up and on the whole it continued weak up to the close. A record low of $5.02-1/8 in terms of the sterling was reached during the month. With dealers holding unusually heavy stock of copra during October and facing a continuous decline of prices in Novem ber (from $2,875 to $2.30) the rise of the sterling brought some relief to dealers as it enhanced buying for this product in the London market. Keen competition in the local market sent up the price for 60 days sterling bills at as high as 2/0 3/16. The crisis noted in the Franc last month appeared overcome. Without reced ing from $3.37% at which it was quoted at the beginning of the month, it reached a high of $3.41% although closing at $3.39%. In sympathy with the sterling, the yen ruled strong rising from $28.93 at which it was quoted in the New York market at the beginning of the week to a high of $29.27, the highest reached during the year. Indicating a reversal of method noted last month of making available a relative ly cheaper yen for its export markets, Ja pan presently desires to keep up the level of the yen, this exchange not being gen erally obtainable in Kobe at a lower rate. Excluding items already paid for and handled for foreign accounts or shipments not yet paid but for which provision was made for exchange coverage, Japan should realize more foreign exchange from the liquidation of its exports during the past several months which amounted to 50 mil lions in terms of the old U. S. dollar for each of the months of September and Oc tober. ELEKTROMEKANO for SAW MILLS Haelsingborg, Sweden Totally enclosed surface cooled dustproof MOTORS Squirrel cage motors with low starting current A. C. and D. C. Generators, Transformers All Motors and Generators fitted with Ball Bearings Sole Agents for P. I. ELMAC INC. Electrical Machinery Company 627 Rizal Ave. MANILA P. O. Box 625 Concurrently with the rise of the ex changes within the sterling area, Hong kong moved up from $31.15 at which it was quoted at the close of October to $31.48, also the highest reached during the year. Shanghai moved within narrow range in Shanghai market between $29% and $29-5%. (Please turn to page 56) GOLD MINES etc. 1938 PHILIPPINE EXPOSITION February 12 to 27 AGRICULTURAL, COMMERCIAL and INDUSTRIAL FAIR The great event of the coming year will show the biggest display of the country’s accomplishment along commercial and industrial developments. “Progress in Every Field” is the motto of 1938 Philippine Exposition IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 56 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1937 RAIL COMMODITY MOVEMENTS By LEON M. LAZAGA Traffic Manager, Manila Railroad Company FREIGHT REVENUE CAR LOADING COMMODITIES I Number of ' Freight Care 1937 1036 The volume of commodities received in Manila during the month of Novem ber, 1937, via the Manila Railroad Com pany are as follows: Rice, cavanes ........ Sugar, piculs ........ 101,196 177,656 Copra, piculs .......... 110,361 Dessiccaited Coco nuts, cases .......... 35,624 Tobacco, bales ........ 4,568 Lumber, board feet 329,552 Timber, kilos ........ 1,554,000 Sugar .......... .......................... Sugar Cane .......................... Copra ... ................................ Coconuts .................................. Molasses .................................. Hemp ........................................ Tobacco .................................... Livestock .................................. Mineral Products .................. Lumber and Timber .......... Forest Product ...................... Manufactures ........................ All Others including L.C.L. Total ................................ 399 91 338 1,756 5091 105 12 270 33 87 1,599 387 5 387 104 1841 2,558 6,7061' Freight , Increaee or Tonnage | Deereaee 1 7 ' 1936 I Care I Tonnage SUMMARY The freight revenue car loading statistics for four weeks ending November 27, 1937, as compared with the same period of 1936 are given below: Week ending Nov. 6 .......... Week ending Nov. 13 .......... Week ending Nov. 20 .......... Week ending Nov. 27 .......... 1,804 1,188 951 982 1,817 2,456 2, 2,909 0 356 3 2.211 10 27,148 '4 2.687 >5 946 15 19 7 13 16 i5j 26 7 4.991 12 2,549 - 6 54 2.464 111 16,633 12,869 10,838 16,702 39.252 8,086 8,148 12.889 33,846 353 206 4,273 2,690 8,813 5,407 6,432 5,706 79.151 62,968 726 16.183 Note—Figures in parenthesis indicate decrease. Total .................. .......... (Continued from page 56) FOREIGN EXCHANGE REVIEW u. s. Dollars Ster)ing Fra Yen Shanighai Hongkong High Low High Low High Low High Low High Low High Low January .................................... ....................... 199.50 199.25 2/0-5/16 2/0-3/8 9.45 9.45 57.80 57.00 60.40 59.80 61.80 61.60 February ............... .................. ....................... 199.50 199.25 2/0-3/8 2/0-7/16 9.45 9.40 57.60 57.50 59.90 59.70 61.55 61.15 March ...................................... .. ..................... 199.75 199.50 2/0-3/8 2/0-7/16 9.45 9.20 57.60 57.40 59.95 59.80 61.20 61.10 April.......................................... ....................... 200.00 199.75 2/0-1/8 2/0-3/8 9.35 9.00 58.10 57.50 60.25 60.00 61.90 61.15 May ................................................................... 200.00 199.75 2/0-1/8 2/0-3/16 9.15 9.05 58.10 58.00 60.20 59.90 61.90 61.35 June .......................................... ....................... 199.75 199.50 2/0-1/8 2/0-3/16 9.05 8.95 58.00 57.80 59.90 59.40 61.35 60.90 July ................................................................... 199.75 199.50 2/0- 2/0-1/8 7.90 7.55 58.40 57.90 59.65 59.25 61.75 60.90 August ...................................... ..................... 200.00 199.75 1/11-15/16 2/0-1/16 7.65 7.60 58.70 58.40 60.55 59.25 62.80 61.90 September ......................................................... 200.00 199.75 2/0-1/16 2/0-1/8 7.60 6.85 58.40 58.10 60.40 59.90 62.65 62.25 October ............................................................. 200.25 199.75 2/0-1/16 2/0-1/8 7.00 6.70 58.30 58.10 60.10 59.60 62.65 62.45 November ....................................................... 200.00 199.75 1/11/3/4 2/0 6.95 6.85 58.90 58.20 59.80 59.60 63.30 62.50 BUSINESS AND PROFESSIONAL DIRECTORY SUBSCRIBE For Your FAVORITE MAGAZINES Thru The UNION CIRCULATION CORPORATION 217 Dasmarinas Tel. 4-87-50 CO-OPERATION—SERVICE ECONOMY 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 Dealers in American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila, P. I. fr M T CHINA BANKING CORPORATION MANILA. P. I. A.GARCIA Domestic and Foreign Banking of Every Description AMERICAN CHAMBER OF COMMERCE JOURNAL P. O. Box 1 638 —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 .ClklECSCTIEID IL LIMI IB IE Ik 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 Let A Handsome ‘Wa8tr QLhef” GAS RANGE say lHcrry Christmas Its presence in the kitchen on Christmas mornin)', will he eloquent expression of YOl’lt greetings this year. Appropriate? Yes indeed... one that provides more hour’s of rest and leisure: that simplifies cooking and linking tasks; that brings beauty into the kitchen. Conic in and let us explain the many features so impor tant to the wornafr of today. MANILA GAS CORPORATION 136-13S T. I’inpin /V «r.S/>()\7)/V(, /o ADVI-R flM \/l .V/A />/ I\Sf Mr\//o\ I III WIII/H IX i ll\ \l /</ /-' < ’/ 'oVW'a/ l< >' /\ KI SP< / < > U >'• / P / I'd \ll \ I \ 1'1 I \ > < 'MM/ !K I !< '.I ■ P.\ A/