The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XVIII (Issue No. 4) April 1938
Year: 1938
Language: English
Rights
extracted text: RESULTS OF THE JOURNAL SURVEY OF PUBLIC OPINION Other important features and the usual complete Mining and Business Reviews A STA BREEZE No. 1 T. Pinpin. Manila Phone 2-29-75 ''pODAY you can bring the cool, clean, freshness of this picture indoors!. . . into your home, your office, your place (>f business! You CAN. . .if you install Carrier Air Conditioning. Carrier means real air conditioning— in addition to just cooling. It means prop er control of temperature and humidity, gentle air circulation, ventilation, dust and noise elimination—just where and when you want it, all year 'round! A Carrier installation is efficient, eco nomical—and will continue to be so for years to come. It embodies 35 years devoted exclusively to air conditioning, and the experience gained in making large and small installations in every field, as well as such famous installations as those in the U. S. Capitol, Radio City, the “Queen Mary,” to name a few. Don’t put off your Carrier installation till “tomorrow.” You need it NOW. The EDWARD J. NELL COMPANY April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL Creosote Is An ‘Antidote for Ants’ White ants simply will not asso ciate with creosote or anything that has creosote in it. Taking Advantage of, this knowledge it will pay you to use nothing but CREOSOTED LUMBER Rot is another problem that causes large losses. Again creosoted lumber brings a great sav ing. Actual use of this has pro ven that it will prolong the life of lumber for many more years. We have ample stocks for all pur poses, including piles and ties. ATLANTIC, GULF PACIFIC COMPANY Year after Year, Season after Season, McCORMICK-DEERING Tractors Give You Economical Service T-20 Kerosene 25-30 II. P. 15-30 H.P. TD-35 Diesel 35-41 H.P. TD-40—Diesel 40-50 II.P. When You Need a Tractor DEPEND ON THE WORLD'S LARGEST Tractor Manufacturer INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES MANILA Iloilo—Bacolod—Cebu—Davao—Legaspi—Baguio—Cagayan, Misamis 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 DAWSON WHISKY WITH ANY MINERAL, IS THE SAFEST AND MOST SUITABLE BEVERAGE IN THE EAST Vk PBTER Dawson SPtOAL SCOTCH WHISKY SMITH,BELlJ CQLTD. SOU OlSTaj&VTOM LETTERS Dr. Victor S. Clark —Economics consultant, Washington, D. C. “I have received letters from Pres ident Roosevelt and from Mr. Joseph R. Sheehan, Executive Director of the United States Maritime Commission. (These letters have to do with the proposal in our February issue that the problem of finding tolerance for Philippine sugar in the American mar ket be forever solved—and other ends achieved besides—by an arrangement between the two governments con cerned, the Commonwealth and the United States, for freighting the su gar in American and Philippine ships exclusively, after lapse of a period ample for building the ships to navy specifications as auxiliaries when needed for the Pacific fleet. As re actions from President Roosevelt down have been favorable at Wash ington, where Dr. Clark’s interest served to implement action, we make another appeal now, to the Philippines, that steps be taken to implement the project here.—Ed.) “President Roosevelt writes that he communicated with the United States Maritime Commission with regard to the matter brought up in your letter and in reply has received a suggestion which is in substance that which I quote from Mr. Sheehan’s letter below. He adds— “ 'It is needless to say that these various problems are very complex and hardly of such a nature that they can be handled through the medium of correspondence. Therefore I suggest that you communicate with the Joint Commission and present your ideas to them.’ “Mr. Sheehan’s letter says: “ ‘The matters discussed by Mr. Robb would seem to involve not mere ly shipping but the whole subject of such economic relations and, accord ingly, it is believed that Mr. Robb’s suggestions might well be referred to the Joint Commission rather than acted upon here by this Commission.’ “I have written a letter to Mr. MacMurray of the Joint Commission about this matter.’’ (Readers will find the project detailed with illustrative data in our February number). "Meat of the Matter” £ William Allen White Famed editor-owner of the Emporia (Kansas) Gazette, among whose sub scribers are a thousand other Amer ican editors who respect his opinions and await their utterance. Of the matter dealt with in Dr. Clark’s letter above, first column, Ve teran Editor White says: “I am sa tisfied that you have got at the meat of the whole matter." (And still no action here!) R. McCulloch Dick, publisher of the Philippines Free Press, writing from Paris, says of the same suggestion, “Seems to me you make a pretty good point, so far as maintaining trade be tween U. S. and P. I. is concerned, in TIDE WATER ASSOCIATED OIL COMPANY MANILA, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 LETTERS cont. that rather original presentation, sta tistical, of the ‘fleet of merchant ships’ benefit accruing to U. S. from its present relations with the Islands. The way things international are go ing now, it looks as if one of these days the U. S. will need quite a fleet of merchant ships ‘for servicing of the naval fleet.’ I hope your presentation will have some weight in Washington when next the Philippine question comes up for* discussion.” Jose Paez— President & General Manager of the Manila Railroad Company. “While it would be a very great privilege to have the services of such a distinguished architect as Mr. Frank Lloyd Wright made available to the Commonwealth Government, the hotels which this Company contemplates to build at various places are really of modest size and pretentiousness, and it is doubtful whether structures of this kind would justify the interven tion of a man of Mr. Wright’s repu tation and ability. The services of an eminent architect would of course be very desirable, were these hotel struc tures of such size and importance as to require heavy outlay of funds. “The above is of course only my personal reaction to your valued sug gestion.” (This suggestion was in our March issue. We have amplified it somewhat in a reply to Mr. Paez and we hope the matter is not quite at rest. Objectives: Wider recogni tion of the Filipino architect or archi tects whose work the hotels would primarily be, and, aside from assured esthetic form find utility, immediate worldwide notice of the hotels as mo dern accommodations for visitors tour ing Philippine inland places.) Cornelio Balmaceda —Director, Bureau of Commerce & Industry, and acting manager of the National Produce Exchange. “I have just read the article on the National Produce Exchange which ap peared in the February issue of the Journal, and I hasten to write this letter to thank you for it. It presents very clearly and vividly the informa tion about the Exchange. At this stage, the Exchange needs all such in formation as may be disseminated among producers and traders in com modities so that they can make sure use of its facilities and the object of this new marketing institution may be accomplished. If you will permit us, we would like to make reprints of the article, crediting the Journal of course, as its source. The reprint will be added to the pamphlets, circulars, and other materials about the Ex change that are being distributed.” (Welcome indeed is Friend Balmace da to use of Journal stuff, with credit or without, for advancement of the marketing problems of Philippine growers). Hon. Frank Murphy —Governor of Michigan, last American Governor General of the Philippines and first U. S. High Commissioner here. “. . .Of course, there should be some sort of permanent association between the Islands and this country. We have guided Philippine destinies too long to cut abruptly away. Just how this can be done, I am frank to say, I do not know at present and, of course, it depends'a great deal upon the happenings of the next few years which can’t be planned or controlled in a large degree. “I am in fine health and enjoying myself greatly except for an occasion al throat trouble which may be an af ter-effect of the tonsillectomy I had when I was back here in 1935. I was in Ann Arbor yesterday on account of this throat trouble and had a good visit with Governor Hayden for whom, as you know, I have deep friendship and respect.” (On preparing for the press, Governor Murphy was in Wash ington where he planned radio-speak ing to the country about the Philip pines. For our part, the situation seemed to have changed materially after Commissioner McNutt had spok en to the country on the same subject in March: prima facie difference of views between the two speakers would be more apparent than real, and made more of in the press than could be warranted by fact. Certainly Com missioner McNutt’s address was a tre mendous service to the Commonwealth and the United States alike). COMFORTABLE ARM-CHAIR ENTERTAINMENT ZENITH MODEL 6A 203 A ZENITH RADIO-GRAMO PHONE COMBINATION RE PRODUCES FAITHFULLY BOTH WAYS. A GRACEFUL, YET COMPACT SET. Guarantees World Wide Reception L BECK, INC. Sole Distributors 89-91 Escolta, Manila PHILIPPINE TRUST COMPANY sells drafts and cable or radio transfers for the payment of money any where 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 BONDS Court, Customs, Firearm, etc. executes and covers INSURANCE Fire, Life, Marine, etc. Plaza Goiti and Escolta Tel. 2-12-55 P. O. Box 150 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CH AM HER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 linked Pure Product 4 WESTON Special Reserve a fine old SCOTCH 8 years in wood before it's bottled Direct from the Distillery in bond KRUEGER'S 7%e first BEER IN KEGLINED CANS AT ALL GROCERS OR DIRECT FROM TRANS-PACIFIC - TRADING, CO. !WI iM^COTCB 'f 5WHISW Scotland by Wnain WeAZcn^M londoni.GlftSfJoW Trans-Pacific Trading Co. Good for a Healthy Thirst! No movement is too quick for the CONTAX II. Tlu- highest speed the metal focal-plane shutter gives is */izw th sec. and that’s sufficient for any purposes. The finder-meter of the Coiitax II, or combination of finder and distance meter in one. so increases the rapidity of handling that scarcely any 'ZEISTl subjects can esca|je the CONTAX II. M An interesting brochure ..Unfettered Pho tography" and demon stration gladly given without obligation by BOTICA BOIE 95 Escolta, Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Just Little Things • A recent Sunday Tribune magazine tells us about salt-making in the Philippines, for which we found that March and April are the banner season—when we in vestigated for ourselves. The sunshine of this season is relied upon for rapid precipitation of the salt, recover ed in shallow beds from sea water, and therefore the saltmakers are undergoing very hard times: for salt there has been too much rain both in March and April. Saltbeds are laid out in fields comprising the bottoms of mud-diked ponds (in the rainy season May to Novem ber). During nine months of the year, bangos, batten ing rapidly on the vegetable growth in the ponds, are grown in these places. Put in as minnows, an industry in itself, in three months they are large marketable fish for which there is good demand; they are bony, but pala table. The law ranks this a branch of farming, excludes it from taxation. Three crops of bangos are marketed during the nine months and more that the saltbeds are fishfarms. And the fish pay better than the salt, but the peasants who make the salt are not beneficiaries in the fish. The landowner profits both from the salt and the fish. That is why the first field of saltbeds you pass on the left of the highway as you motor to Cavite or Laguna sold for P25.000 recently, to a Manila doctor. You would think it incredible that a field of but a few hectares of tidewater could be worth so much commercially. But think again, salt and fish—two of man’s staple foods, one indispensable to life. Peasants who win the salt from the sea get 40% of it as their share, 60% is the landowner’s. This is not a livelihood for a peasant family, who in a good season may have Pl50 to P200 as their share—if they have beds enough. The young peasant we talked with knew English quite well. He is married, and keeps a store for sale of salt, 55 centavos a picul, about 133 pounds, and during months when he is not recovering salt, he farms, with his father. In the Philippines, where public debt is very low, the people’s salt is neither taxed nor mort gaged, therefore it is cheap, below 1/4 cent a pound. Seawater comes into a saltfield with the tide, and sluice gates confine it to a common basin at one side of the field to increase its salinity by evaporation until it is strong enough to go to the saltbeds, when ditches convey it to where it is wanted, and drop it into earthen settling jars that catch at the bottom whatever debris it carries. From these jars it is dipped into the beds, about six meters square, all floored neatly with shard, until it stands two inches deep in the bed. At this shallow depth the sun can sweat the salt from the water very quickly; in short, in a single unclouded day, but of cloudy days two to three are required. It is also remarkable how very much salt is won from a single flooding of a bed, often more than a picul, which of course, given the data above, must be the case. The salt is raked up in piles on the runways between the beds, where it contacts the soil. Here is obvious waste, but the clean salt not touching the soil is taken away in bamboo-scoop baskets and dried on the cement floor of the field’s warehouse, and there weighed and divided between master and servant. The contaminated salt is gathered up and sold to drovers and tanners at about the same price as the clean. Of it too WARNER BARNES A COMPANY, LONDON — MANILA — ILOILO — CEBU — BACOLOD LTD. SHIPPING DEPARTMENT Agents For-. Nippon Yusen Kaisha Cunard-White Star., Ltd. Bibby Line INSURANCE DEPARTMENT Transacting-. Fire IMPORTERS & EXPORTERS General Managers of COMMONWEALTH INSURANCE COMPANY ILOILO WAREHOUSING CORPORATION RAMONA MILLING COMPANY Marine Automobile and Miscellaneous Fidelity and Surety Bonds Special representatives of IMPERIAL AIRWAYS, LTD. MACHINERY DEPARTMENT Sugar Machinery, Diesel Engines, Conden sing Plants, Mining Machinery and Steels, Shipbuilders 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 April, 1938 the landowner takes his sixty sacks in the hundred. The peasants make the saltbeds themselves, for which they must buy the broken tile; their children help them lay the floors of the beds, and the cost of a bed under these circumstances is five to six pesos. Each peasant treats the landlord well, having, in a number of beds sufficient for his family, a considerable capital at stake. The Tribune has something, in this primitive indus try series. It would be fine to go all through the prov inces and track every such industry down, photograph and describe it. The lime industry followed salt, edible lime from seashells. It is burned in kilns built of tufa, of which the grate is perhaps a harder stone. Rice chaff is the retarding agent, also the insulating material; it is coated thickly over the grate, and capped over the loaded kiln that otherwise is not closed, and is also mingled liberally with the shells and charcoal making up the charge. Straw fires the kiln, from beneath the grate; there is means of determining when the charge has been reduced to sweet white lime. For what? For rumin ating, with a segment of bunga and a bit of plug tobacco, wrapped in a succulent leaf of the ikmo vine that grows best on the most friable best-drained sandy bottom land such as much of the land of San Leonardo and Penaranda, Nueva Ecija, or Pasay and Pasig. Tagalogs call the areca nut bunga, not buyo, and it is also ikmo with them, as to the leaf, not betel. The lime neutralizes the acidity of the chew, and the name for the lime is apog, while a chew fully pre pared to stimulate digestion and discolor and perhaps destroy the teeth is a pulido. In the Manila markets, two pulidos for one centavo, but of course the tobacco is but a hint. A chew suffices for an hour. Peasant wo men eschew the habit and keep their teeth pearl white until they are married, and then at once take to chewing in grand style. This is puritanism. Having married, their future interest is children; they never care for finery again, and -rather glory in pulido and spitting it about. Influenced by the public schools, this is chang ing, while among the rich it died long ago. • Manila owns the distinction of having two of her daughters working with Macroeditoi* Luce who in his success with Time during the fifteen years elapsed since February 28, 1923, and Time’s first issue, has proved man’s power to rocket himself to the moon. The girls we mean are Lura Street and Edith Hind. Lura is an editorial assistant on Life (pictures and palaver). She is the elder daughter of the late Thomas A. Street, for many years an associate justice of the Philippine su preme court and one of Manila’s ablest and most eminent Americans—the author of the Islands’ Administrative Code of 1917. Lura did her undergraduate work at Po mona, California, and her master’s work at Barnard. Her sister, Julia, has gone in for science and is in labora tory research at Columbia. The girls live with their mother, in New York. Lura did a stint of foreign cor respondence in Rome for the New York Herald Tribune before enlisting with Life. She is a graduate of Manila Central High, where Miss Hind did most of her own highschool work. Of Miss Hind’s apprenticeship to journalism we have not heard. She is a daughter of Mr. and Mrs. R. Renton Hind, and her father’s imprint is on the Philippine sugar industry. She is on Time, whose first number with her name in the masthead as an editorial assistant is that of March 14. She began, last June, in research, as all girls do on Time, and has been advanced twice, we hear, since. She is married, her husband is James B. Dilling ham, who writes and is associated with a New York ad vertising agency. Time jobs for girls are remunerative, secure, exhilarating, challenging—in all, heaps of fun— for the accouchement of an issue of the famous news weekly is as much a nursing climax as it is editorial. The matrix of every story is put under observation at the outset of the week, and given a chart. Out of the 20,000 words of pressnews flowing in every hour, besides tidbits of special mail and telegrams, the story’s diet is selected. The yarn is exercised, also exorcised, rubbed with facts, plied with confidence throughout the week— during which every crisis is taken as primordial and evokes a huddle of specialists. Delivery is ceasarian. At last the teletypes rumble the creature educed by this tireless painstaking group reporting to Chicago, where the printing is done, to be baptized another child of Time and the river of unending human drama. Now the staff rests, two days; every Time is strictly a five-day job for staff folk, a ceaseless one for editors. Consultations precede every operation, and outside experts are called into consultation when needed: for example, showing how no detail is too small for due attention, a query to Los Angeles brings back a telegram saying the man’s middle initial stands for Mortimer, not Maitland. Time brings all things, but Time sorts all things brought and prints a vital selected grist. (If you keep your February 28 number, it has inside a replica of the first issue fif teen years ago). • The Manila Hotel, the tourist bureau, and whoever else may have been behind it did quite the right thing when the worldtour ship Franconia was in port by arranging a society display at the hotel during the even ing, and all the young folk who participated may congra tulate themselves that they helped their city, their coun try, their race. There was a series of folk dances min gled in the evening’s program, supplemented by costume shows exhibiting the evolution of the Philippine woman’s dress during the past century and leading up to Binibining Guia Balmori’s fetching array as the year’s carnival goddess. We learn that the Franconians were greatly pleased, that many congratulatory telegrams came to the hotel. Having long advocated this sort of thing, in Manila and at Pagsanjan for tourist groups, we submit that it can be safely carried a step or two farther by due exercise of discretion. First, there might be booths where the costumes the visitors see worn so captivatingly could be bought, and second, there might be some intro ductions arranged between the visitors and the exhibiting butterflies of local society in order that they have a dance or two together. The clubman who got back to New York with the experience of having danced with a true belle of Manila, gemmed as a princess and with the grace of a doe in apposition to the repartee of a Dorothy Par ker, in English, would probably make it the subject of his garrulity for years to come; and what is equally probable, he would come back for more. • Chico is amazing. He is our bird, a canary bought from one of the Cantonese bird shops on Dasmarinas. The Spanish barber on Plaza Goiti had given us a silkstocking canary—he breeds them, belongs to an interna tional canary association, and they are remarkable—but we had come home one day and found it dead in the cage without ever having shown a symptom of illness. So, unable to afford a finer bird, we laid out three pesos for Chico. This lowbrow has something of the qualities of a chameleon, but in. the voice and not the color. When we first got him he couldn’t sing, he chattered, trying to imitate all the birds on Dasmarinas street in cluding parrots. But Chico has no memory, soon he (Please turn to page 38) April. 1938 THE AMERICAN CHAMBER OE COMMERCE JOURNAL 7 The Big Broadcast of 1938 Commissioner McNutt's halfhour radiologue in Washington about the Philippines probably carried out some pledge of his.—Islands' future now but minor element in America's general Pacific-ocean problem. A new animus moves the White House relative to the Pacific ocean. By way of illustration we lift in full from Time of March 14, the item boxed on this page. There is ample evidence in this, as well as in the basic understanding that has been announced, between Pres ident Roosevelt and President Quezon, that Commis sioner Paul V. McNutt’s halfhour radiologue in Wash ington, a reasoned case for giving permanency to the Commonwealth of the Philippines, was an academic dis cussion. It certainly served the practical purpose of get ting millions of Americans to sit down half an hour and digest a grist of facts about the Phil ippines, but as argument for a commonwealth status for the Is lands it was probably compli ance with a pledge Commis sioner McNutt had made. It is well known that pow erful influence here has, until very recently at least, desired an initial move from Congress, tantamount to an invitation to the Philippines, to effect a per manent commonwealth status for the Islands in association with the United States. This is enough to explain McNutt’s ra diologue. If advisable some time, Congress can pick the long discussion up at this point and evolve a commonwealth bill. But more recently still, over whelming events affecting the whole Pacific littoral have moved rapidly along a far broad er course; when Commissioner McNutt spoke, he knew the Phil ippines had been reduced to a minor element in a broader American state policy. Before he leaves the commissionership, as he soon will, we surmise, he will have had something to do with the furtherance of this broader policy. We cannot -state it better than Time has, nor so well. You may add to what the boxed mat ter says, the new naval viewpoint that calls for 45,000ton battleships to lend defense to the fragile network of southern Pacific islands, probably scores, that America plans reclaiming under rights of original discovery or set tlement. The ships are to have the largest guns, etc., and it is said that they are to be adequate for defense of America on both oceans, also her remotest possessions, including the Philippines specifically. That a good deal of international politics enters into this goes without say ing. There is also in it the domestic policy of extension Icebergs & Atolls The Pacific Ocean, from Hawaii to Australia, presents a tantalizing picture. All over it, like the nutmeg on an eggnog, are sprinkled little is lands that appear to be ideal refuges from the turmoils of civilization. Worthlessness of the is lands hitherto turned ' out to be an additional nuisance: since no one has claimed them, no one knows whom they belonged to. Last week, the U. S. took two steps to correct this lamentable situation. First it was an nounced that the State and Navy Departments were investigating claims to the titles of some 50 islands presumably discovered by U. S. whaling captains from 1791 to 1828. Two days later, Franklin Roosevelt issued a Presidential pro clamation that the U. S. was assuming possession of Canton and Enderbury Islands in the Phoenix group that is 1,850 miles south of Hawaii. At the same time, it was announced that the U. S. would claim nearly 300,000 square miles of ’ ice encrusted land discovered by Rear Admiral Rich ard Evelyn Byrd on his second visit to Antarc tica in 1933-34. U. S. claims to Antarctica, most of which Eng land claims also, will be presumably threshed out some day before an international commission. Claim to Canton and Enderbury may be settled directly between the two nations. Canton Island is an atoll reef 29 miles in circumference com pletely surrounding a lagoon that has been called the best seaplane base in the Pacific. Enderbury, 30 miles east, is a flat coral reef that should be as valuable for land planes. There six months ago, two New Zealand and U. S. astronomical expeditions came to blows as to which had the best right there. Last week the Department of Interior landed four U. S. citizens on Enderbury, five on Canton for colonization. Best guess as to the outcome of the case last week was that nego tiations with England, which claims the whole Phoenix group, were already quietly under way; and that with England eager for U. S. co-opera tion in the Far East, they would be speedily and satisfactorily concluded. (“Time” March 14) of commerce and intercourse, as by practicable airlines between New Zealand, Australia, the East Indies, Guam, the Philip pines, and Asia, and the United States. It was air, perhaps, that re minded America to revive her many oldtime claims to atolls, isles, islands and tiny archipela goes in the Pacific. The era a century ago was a great mis sionary one in America, old mis sionary records should turn up many gospel stations long aban doned—valid claims of owner ship today. Whaling was con temporary with Bible teaching, where angry monsoons drove whalers ashore to wreck or refuge, and where the flag was raised and some account went into the log of an ill-starred voy age, there remains a claim of territory. Washington’s current anxiety to make good its claims derives of course from the bellicose po litical situation throughout the world and progress in some of the deadlier branches of military science. There was an awaken ing, not merely in Washington, but in Europe too, when Portu guese Timor (the larger part of that member of the Celebes) fell to Asiatic interests. It seems the option that Serge Wittouck had on this large territory was not finally taken up, and similar rights in Timor farming, min ing, etc., went to a Japanese syndicate that should have the capital necessary to exploit them. There is also Borneo’s vulnerability to colonization and industrial exploitation, that our readers found fully treated in this magazine last month. This movement is all southward, and provoked a desperately realistic re-examination of old maps and claims and station narratives. Having come to the point where it is clear that in America’s new farthest line of defense in the Pacific, now under readjustment by means of reclaiming and redis covery and hurried settlement, the Philippines are an in termediate station, we have come far enough. Jingoism would lie immediately ahead, and divert us from the main point. (Please turn to page 37) THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 Malacarian’s Moro Policy The Philippines resemble European countries in a number of ways, one of which is their having a minority -peoples problem whose chief element is more than 500,000 Mohammedans in the southern islands of Min danao and the Sulu archipelago. True to the ideology of Philippine unity, Congress never took a word’s notice of these Moros (the Spanish for Moors), and the Com monwealth inherited them to do with them as it would. Thereby they became a care of President Quezon’s. He had a policy to devise affecting them, he has now devised it. Mindanao residents asserting familiarity with these Moros and their ways have sometimes said they would renew their stand for independence from the Christian Philippines, if they could arm. These statements have been fac tual, rather than partisan. A more decisive fact is that the Moros are not armed, save by the state, during their military train ing. Desultory smuggling of arms to them, from Borneo, and the crude fieldpieces they improvise for themselves can only make them outlaws—they amount to nothing as the equipment for what would have to be a trained force of re gimented troops. Moro resistance to association with the Common wealth is a desperate nostalgia, hope is that contentment with the established order will supplant it. Having to found a Moro policy, Quezon soon did so. The first thing in it is to require submission to Philippine law and the law’s re presentatives, and to put down de fections with severity. The second thing in it is to give the Moro a chance, in order that under the civil law of the Islands the Moro communities may be self-governing in the sense that their officials will be Moros—most of them chosen by the franchise. There is a Commissioner of Mindanao and Sulu; Malacanan appoints him, and he could be a Moro, save that no Moro is as yet qualified for such a post. Marcial Kasilag is the commissioner, his seat at Dansalan. He is from Batangas, a civil engineer of the Public Works bureau, and on his work impinges the third element in President Quezon’s Moro policy. This is the networking of Mindanao with highways ending the iso lation of many of its ports. In part, no doubt, it is aimed at gun-running—that ‘encouraged by an enemy country’ might now be effected on a considerable scale. But the main purpose is ventilation of the isolated set tlements, the opening of the public domain to Moro and Christian emigrant colonization. It is logical, then, that Kasilag lives on the mainland at Dansalan above the port The late Governor General Wood... Moron remember of Iligan instead of at Jolo, the political capital of Sulu and the best known Moro city. For it is this mainland that offers the greater obs tacles to the Quezon plan, one of secular assimilation. It is the Lanao Moro, the good farmer and craftsman whose cottas are in the mountains surrounding the lake that bears the tribal name, who is the outstanding recalcitrant. He has no sultan. He follows chiefs who on small provo cation fortify their cottas and live, with their faithful sacops or peasant followers, the lives of outlaws. This month the First Service Company of the Philippine Army returned to barracks at Camp Mur phy in Mandaluyong from the bu siness of razing cottas in the re gion of Lake Lanao. They had destroyed sixty of these grotto fortresses. Others have been des troyed since. The Lanaos had due notice that cottas that are chiefs’ homes, not fortified, would not be harmed, but that fortified cottas would be rated the strong holds of rebels and their clansmen —they would be demolished. It is a tenet of the Quezon policy that in civil matters Moros shall not serve two masters—they shall be obe dient to Manila. But Manila will be a long time in bringing Moros up to the level of the Christians educationally. They start so far behind. Nor has the last fortified cotta been dealt with. The government was sur prised to learn that the fortified cottas were not old stock taken over from Spain; they were recent, built during the American period. Lanao today is as stubbornly op posed to modifications of her cul ture as ever she was under the dons who during three centuries failed utterly to conquer her. Many an encounter will stain her hills before she is brought into line, though she will fight every one of these under tragic disadvantage. You do not hear the same of Cotabato, nor of Sulu. Cotabato Moros accepted civil administration from the general Philippine government long ago. Like the Lanaos, they live without benefit of sultans, but their greater chiefs have had influence enough to effect peace: they are many, but their annals are brief because they are happy—they compromise where they can not have their way in full. Three hundred thousand Suluanos recognizing a sultanate are another picture altogether. Their piracy, pearling, mining and husbandry made them the Islands’ leading people at the time of the Spanish acquisition of a foothold here; they kept their independence to the last, and Spain held them only as a protectorate when she ceded the Philippines to the United States. But Spain (Please turn to page 14) April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 Great is Diana Ghastly as it seems, putsch may be a solvent for European problems adamant to lesser agencies.—More putsches are .probable. By WALTER ROBB We think it was from Brenner Pass at Innsbruck that Hitler communicated to Mussolini Germany’s absorp tion of Austria, whose people, six million and a half, are of course Germans but of a softer way of life because they are of the heart of the old Habsburg empire where all came in and lit tle went out—whose splendid contribution to the state as well as to all the world was a gay design for sheer living. Brenner Pass is the easiest way across the Alps, the short est too, we believe, it being less than thirtythree miles from Innsbrucken to Verona— “beyond lies Italy,” Napoleon reminded his legions. Italy had been torch-singing for Aus tria, Brenner Pass was a strategic trumpet ing point for the Fuhrer—a good point at which to close a land deal between friendly dictators. My, what a lot many German fuhrers have had to do with Brenner Pass! No less than sixty-six of them marched triumphantly over the pass and down through Italy and on, some of them, through Spain in the period from 780 to 1402; and why they did so, where they stopped, and precisely what became of them it would puz zle the most learned to say. Probably they felt cramped at home, probably ’they sought colonial empire; no doubt they had urge enough, and a patriotic ideology to which to rally frenzied support. Yet Italy is still Italian, and Spain, though sore pressed now, still Spanish. The fuhrers, kaisers then, or strongest men, wore down the pass a bit—a carriage road was built over it in 1760, and a railroad, one of the earliest in those parts, only seventy years later. That is all the stream of history knows about the oldtime fuhrers, they broke a trail. They marched away with carts, they carted back ideas and suggestions that came to be the foundations of Germanic culture, at least the handsomer parts of it, but if they rested anywhere definitely, it was back in the fatherland. They did some casual burn ing, of course, some purging perhaps. Sum ming it all up, we suppose that as harmless a putsch as the world knows is a German fuhrer’s. There is iron enough in it, but somehow it doesn’t grasp permanently—it wants magnetism. Colo nies stick here and there, if not in.German territory (and it is a wonder how few Germans were in all the Kaiser’s imperial colonies), but what is implanted is soon uprooted, for some reason or another: the strife, the cost of it—all* comes to very little. Germans are good planters too, none better, and good folks in every way, but seldom in stride when extending their political horizons—a task they never abandon however often it lays an egg. This must mean that the urge is in the Germans and that they can no more inhibit it or eradicate it than they can cease breathing. It is decidedly uncomfortable for their neighbors when the urge seizes them, but even so, the weight of evidence is that they are blind instruments of ambition at these emotional periods and nothing practical can be done about it save to give them rein. It results, of course, in curious introver sions, some of them intrinsically malevolent; but if not all things, certainly some things can happen for the best, some of these fuhrer things included. France for example, the Third Republic, a putsch made it—made it out of decadent lackadaisical empire whose contribution to mankind’s culture was a lady’s bonnet—aside of course from Paris rebuilt and her gay es prit that will now never leave her and will always keep her the choicest jewel in the diadem of cities. We have been thinking of Paris when the putsch came, and Paris later, and Berlin back over the Rhine, Munich and Hei delberg to boot if you will. What were the French at then? Pasteur, the Curies, Monet, Manet, Offenbach, Anatole France, Zola—any school student can name off hand quite a list of them, and the things they were achiev ing, since the works of a dozen or so of them have been the themes of soul-stirring movies—they were cultural donations to mankind with universal appeal. Over the Rhine, however, at this same time, another putsch was gestating in the Germanic soul. It would be born, the people themselves were powerless against it; and mind you, they had won this time, France was pay ing, had indeed paid through the nose for their victory to enforce peace and empire, bismarckian empire, well conceived. But what was going on while the accouchement was awaited, the World War that was to come of that particular mass remonstrance against introversion? Well, substitutes were going on. German national leadership was madly preoccupied with its unending substitutes for things genuine. Tar was being taken from coal, and God knows what extracted from it —but substitutes always. Aniline dyes were a-borning, to destroy the Philippine indigo industry, among other things. Nobel’s dynamite was be ing pepped up secretly, and degeneration and substitution proceeding toward the point now reached—where on the country’s famous black bread, wherein something is sub stituted for flour, lard displaces butter. Motherhood is also displacing marriage, but this we know will pass. Did the German people want all this? -Goodness, no; they are like other peoples, but the emotion,, the mystic remonstrance of the psyche against moody introversion was being imparted to them; they absorbed it, came to the worst with it, and now, partly by fault of the nations (Please turn to page 13) 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 The American Chamber of Commerce or THE Philippine Islands DIRECTORS: ALTERNATE DIRECTORS: _ , ,, E. D. Gundelfinirer P. A. Meyer, President H. M. Cavender, Vice-President L. K. Collermnn John L. Hendington, Treasurer K. B. Day J. C. Rockwell H. Dean Hellis E. M. Grimm Verne E. Miller S. I'. Caches SECRETARY: E. Schradieck C. G. Clifford H. M. Cavender COMMITTEES EXECUTIVE COMMITTEE: P. A. Meyer. Chairman H. M. Cavender RELIEF COMMITTEE: C. G. Clifford, Chairman MANUFACTURING COMMITTEE: K. B. Day, Chairman A. W. Rais n D. P. O'Brien H. P. Strickler LEGISLATIVE COMMITTEE: E. E. Selph, Chairman Judge F. B. Ingersoll C. G, Clifford FINANCE COMMITTEE: Verne E. Miller, Chairman E, J. Deymek FOREIGN TRADE COMMITTEE: H. B. Pond. Chairman E. D. Gundeliinger PUBLICATIONS COMMITTEE: P. A. Meyer. Chairman C. M. Hoskins Roy C. Bennett BANKING COMMIT! EE: E. J. LeJeune, Chairman J. R. Llyod RECEPTION & ENTERTAINMENT COMMITTEE: E. Schradieck. Chairman E. D. Gundelfinger INVESTMENT COMMITTEE: P. A. Meyer. Chairman J. C. Rockwell S. F. Gaches SHIPPING COMMITTEE: H M. Cavender. Chairman E. M. Grimm Chester F. Sharp LABOR Growth of industry in this Commonwealth introduces inevitably, questions involving labor. Inevitably too, labor organizes. The era of strikes and lockouts has come, as it was bound to come. But what will happen is not what should happen. What will happen is what we see happening now. Labor hired at the higher prevail ing levels of pay will be agitated, by outside organizers, because the employing corporations are vulnerable to at tacks of this sort. Not because they do not pay good wages, as wages go here, but because they are well man aged ,going and profitable companies—many of them constrained to unbroken operation under their franchises. It is hoped that the new Court of Industrial Relations will rate this point foundational in its work. Its power to subpoena is not even enjoyed by the Industrial Rela tions Board under the Wagner act in the United States. That power, though it has been upheld by the Common wealth supreme court, would be best used with the ut most discretion. Many strikes will be found unwar ranted on the most cursory examination; they will be for higher wages, and it will be found that existing wages among the men affected range materially above wages paid by other employers for similar work. The .govern ment has as its aim social justice. Applied in an occupa tion or craft, this would mean a benefit in wages for all men so occupied—not merely to the few, speaking com paratively, who acting in unison may tie up their particu lar factory or public utility. When such tie-ups occur, the germane fact is that the wages complained of are equal to or perhaps above wages currently paid by other employers for similar work. We say it is not cricket in such disputes to ascer tain from a showing of the books that a company might pay still higher wages and not run in the red. In six months the books might reveal a different picture alto gether, new and higher wages might then be imposing a net loss on operations: management and circumstances beyond human control have everything to do with this. A company is more than fair, and advancing social jus tice rather than retarding it, when it consistently tops, or always matches, the best wages prevailing in its line. For illustration we cite a bus line in central Luzon that recently underwent a brief walkout of many of its men, lasting one day, circumstances of which are eye opening to all who respect the Commonwealth and its institutions. The tie-up came in the busiest week of the year; it was but one day’s inactivity, but in that day thir ty thousand passengers would have been handled. The base wage at which men begin work in this company is considerably higher than the wage in another large com pany in adjoining territory that has just been raised. In fact, this base wage is a standard in the business, that other companies have not reached. It graduates twice a year, the fogie for longevity of employment is upped every five years. The bonus plan is followed. There are gold-star drivers, men who drive six months without an accident and so gain the right to a gold star on their cabs and PIO more on their month’s wage. Gasoline mileage wins another wage boost; and altogether, a stea dy man can work his base wage up to P65 or more a month, his actual wage up to P80 or more a month, while meantime a pension system is being worked out. It is no warrant for striking that this company keeps solvent, is our point. The business is highly precarious and can come croppers in a hundred ways. Success usually hinges on a fine capacity in a single man topside. The men’s loyalty contributes to success, but success rightly determined is to be measured over wide periods of time. Wages do not come in here, only the bonus on a year’s take, and the pension for longevity in employ ment. A wizard with ledgers could not possibly swear with accuracy whether wages were too low or too high. It is such circumstances that should give pause to the Court of Industrial Relations in subpoenaing records. Where pay is setting standards in advance of the prevail ing pay level in an industry, and there is no monopoly, strikes on account of wages have no justifiable motive and the public weal and social justice will be served by giving no countenance to such movements. We comment on this subject because we happen to know that the number and character of recent strikes and walkouts has been alarming the best employers in these Islands. They are creating a feeling actually bad for labor’s best interests. The government’s course should be to allay these misgivings. There will be or ganization of labor, no one can help it, but much can be done to confine the movement to the scope of justice. Suppose you were in transportation, paying good wages but still not so much as the company just spoken of: your territory might not be so good, your manage ment not so resourceful. How would you look upon a standard still higher, forced upon that company? You certainly could see yourself going to the wall. By which we mean that repercussions of these localized demands go far beyond the employers and employees immediately af fected, and the status of the books is no criterion as to what should be done. Only in the extremist case, involv ing monopoly, should the books be required. Equity is the norm advised. April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 Manila's Pleasing Newspapermen Their comprehensive and timely telegraph services make the Commonwealth throb in unison with the current tempo of the world. Roy C. Bennett has run the Manila Daily BULLETIN some twenty years, with a break or two, and it is to him, his cou rage and unending determination, more than to anyone else, that the balanced, calm-visioned, comprehensive Bulletin of today is to be ascribed. David T. Boguslav is the presiding ge nius at the desk of the Manila Tribune who has everything it takes for great ness in newspaper work, including an indefatigable sense of humor and a habit of laying ten to fifteen pesos on the line for the latest worthwhile book. His Na tional Affairs is capital breakfast food. Many influences are breaking down the insularization of this Commonwealth of seven thousand islands among which eleven are the really important terrain stretching a thousand miles north-south, half that dis tance east-west. No one of these influences is more serv iceable or gratifying than the telegraphic services of Ma nila’s newspapers. It is distinctly worthwhile noting this remarkable coverage of spot world news, from mar ket prices coming in throughout the trading day to un abridged narrative limning vividly the crises of war and diplomacy that make the big headlines in the crucial cap itals of countries from Japan to western Europe, Great Britain, Ireland, and Spain. course to transpacific Pan American service. What such things are all about, or background stuff, in trade par lance, hurries through by mail from ace men heading up the European staffs. International News has recently been added by one Manila newspaper. Its stories would not fill a newspaper every day, but when they do come they are often much to the point. Manila newspapers’ telegraph coverage of the recent British cabinet crisis wherefrom popular Anthony Eden was jettisoned as excess baggage as foreign secretary when it was wanted to get down to cases with Germany, Italy, and France, left nothing to be desired. Timely, analytical, complete. You fairly heard the cheering for R. C. “Dick" Wilson, as interested in the Philippines as if they were his pri vate garden, he followed Reuel S. “Dinty" Moore for the “UP" here and has built up the United Press Associations’ Manila bureau remarkably. F. S. “Fritz" Marquardt, Philippines correspondent for International News and editor of the trenchant and popular Philippines Free Press. A son of Dr. W. W. Marquardt, for long the Islands’ education director, and a Hamilton Col lege man, Marquardt has no superior in the Philippine newspaper field. Wireless and cable get hot daily and nightly with reports filed by topnotch correspondents of the ubiquitous news-gathering services. Because of the convenience and economy of the syndicate arrangement, readers in the Commonwealth benefit from the costly services of these news reporters and analysts. What is just under worth putting through by telegraph, is taken care of by Pan American clipper over the Pacific, and the Dutch and English tones from Europe to Singapore and Hongkong. Radio and wire photographs are quick follow-ups. The Associated Press features these. Thanks to them, we have seen Hitler in his armored Mercedes-Benz be side his chauffeur driving into Vienna; and thanks of Eden, you plainly saw Neville Chamberlain taking his hecklings in the Commons: a responsible cabinet at its dramatic best, cold logic thrusting higher feelings and sentiment aside for what Chamberlain had decided was England’s weal—notwithstanding it might be Spain’s final woe. Whether you approved or not, there it was— the current European picture in detail. In the business sections of the newspapers the sta tistical quotations told how business was taking it. There were premonitions of the next Hitler coup, too, and cut backs to France, Poland, Lithuania, and the Little En tente warned that the time was ripe. It was capital (Please turn to page 36) Dr, Carlos P. Romulo is the publisher of the Herald group of newspapers with such distinctions outside newspaper work as a regency in the University of the Philippines and a past-presidency of Ma nila Rotary. He is tops at taking great interviews, as his reports of his recent interview with President Roosevelt de monstrated. Vicente Albano Pacis, editor of the Philippines Herald, has developed into a first rate telegraph-desk man with ver satility left over for the able editorial izing he likes to cap off with two-page feature comments in the Herald’s mid week magazine. 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 Philippine Hardwood Bowls The Arts & Crafts School will make anything you want out of hardwood, and do it well. Cigar or tobacco humidor, glorious ly grained wood would find favor as a gift any where. This is that time of year when Manilans can patron ize to best advantage to themselves the Philippine School of Arts and Trades, one of the better craft schools of the world where during vacation months young men far ad vanced in their apprenticeships turn out such jobs as the school picks up for them. If you want any special thing done, you will be surprised how well it is done at this school—on calle San Marcelino opposite the Meralco building. For our part, we like bowls. What more use ful, therefore beautiful, than a well-turned bowl from any of the hardwoods Commonwealth forests supply munificently? The bowl is one of man’s oldest utensils. The Bri tannica does not list it, possibly because it is older than any records and as common as could be; the bowl is ubi quitous, not unique. It is improbable that man caught A new idea in ash. trays. These big bowls, from 12 to l't inches across; receptacles in the rim hold pipes, cigars; the center holds ashes without danger from the va grant breeze, and can go a whole week-end without dumping. the suggestion from the bowl of heaven. Instead, he came upon natural bowls hollowed in fallen branches by insects and used by nature as depositories. So, when he wanted to pound something into something else, as maize into meal, and needed to confine it, he resorted to these ready-made bowls. Afterward, with stone adzes, he found he could make bowls to suit specific purposes. Or namentation followed as matter of course, and at last the vase evolved from the humble bowl. But the good bowl remained, and however decorative, at whatever pains, its basic pattern unchanged. No bowl is ugly, the fact that it is a bowl precludes that. If you too should like bowls among your bric-abrac, what more convenient than to draft some designs or pillage some from books or magazines, and have what ever bowls you want turned out at the Arts and Trades? But of course, you can have anything else turned out there, should you think bowls silly. For our part, we have discovered a novel use for really large bowls. We use them for ash bowls, and now we have a friend who designs furniture for exportation to the United States who has taken up the idea and will send Manila ashbowls to American cities where the pipe and cigar are still civilized smokes. For a lusty hard wood bowl does for the cellophane, the band, the stubs and ashes, and at the same time, for a few cigars and a pipe or two. There is no overflow, nor does a breeze through the room do its usual mischief—seeding the rug with ashes and laying just grounds for divorce. Does it not intrigue you, the varied details you could get worked into your own bowls—the different woods you could specify, for different colors. April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 Diana is. . . (Continued from page 9) whose cupidity starved the republic to death, another frenzy rides them, another fuhrer than Kaiser Wilhelm points the way to promised lands, and so they are inevit ably on the march. Had the republic been supported as it deserved to be, by far-see ing diplomacy among the powers, it was German freedom and it would have lived That the people had no relish for all that was thrust upon them thirty years ago, and forty and fifty years ago, is proved by their emigrations; millions upon millions emigrated, though quite naturally, not to the imperial colonies. There is a deal of claptrap about these colonies, their restoration and whatnot. It comes to nothing, you buy nothing from a colony a cent cheaper than you buy it else where; you do not want colonies for the needs of peace, but for what war requires, including conscripts. Right now there is nothing that either Germany or Italy wants on account of peace that they may not have on the best terms current, or even on ac count of war for that matter—everything is sold in this modern world, to everybody— but for war you do prefer that its substan ces be within your own jurisdiction, there fore to want colonies, or want old colonies back again, means to want war back too. So it is with Austria, can be nothing less—though nostalgia may be in it a bit. Another fuhrer marches, that is all there is to it. The source of this spirit is fathom less, its recurrence is as the hoofbeats of time; if we had not the Swiss, the Belgians, and Dutch to the contrary, we might sur mise that it is simply unbearable to live near neighbor to la belle France—burgeon ing at intervals with whole broods of gen iuses and with nonchalant sang froid. But this, in the circumstances, we can not al lege. The true cause lies elsewhere, and in circumstances, not in the people themselves. Goethe, Heine, Grimm, and this? Not at all. It is shortwaved to the world that the march will be up the Danube. Governments there must knuckle, or else ... Some good ought to come of this; with no particular political good to Germany, since what she marches for has no adhesive properties and never sticks, there should be the economic good of more orders for her factories and an outlet into her cities for Danubian grain, lumber, livestock. The duties that now hold back these products from their natural market in Austria and Germany are absur dities. Then will come Poland’s turn, and that of the diminutive Baltic states—John Gun ther in his Inside Europe reviewed last month remarks Tallin, tiny Estonia’s capi tal, as a desirable Baltic naval base, and that will lay Germany right alongside Rus sia, who in all probability can withstand the close propinquity. But it will lay no ghosts. Think of a splendid work of nature, a forest tree of sturdy girth and height. Its strength derived from the mass of its tiny roots spreading all about through the soil and taking sustenance therefrom, and its mighty cap of leaves gives it life from the sun. Not so an empire such as the Fuhrer conceives; the more it spreads, an imposi tion at best, the weaker must it become, un til rings of rifles, machine guns and bomb ing planes will not suffice to hold it toge ther: the seed of empire will indeed be sown, the harvest will be parliaments, or dinances of old liberties, revolts of the masses. While the Versailles treaty may not have given the peoples affected precise ly what they desired, and while some of their governments do not have what it takes to make good, this but implies that a pri mordial struggle is yet in process—it by no means implies that conquest can be sure and lasting, or enforced submission loyal. There is this further consideration, as the march proceeds the German people them selves may find opportunity to assert their old and well beloved, good and dignified liberties, and they may seize this opportuni ty. Really the putsch is but a phase of the World War, provoked as it was by unbear able demands upon the German peoples; a younger commandei’ maps a strategy, that is fundamentally all there is to it, and he will readily overreach himself and bring his schemes to nought. But the calmer world will be enriched. The movement is to be compared with the tragic fanaticisms of the fifteenth and six teenth centuries in the gentler parts of Europe, fanaticisms that recoiled on them selves and robbed their countries of all im portance. There will be, there is, an ex odus of talent and fortune from the Reich; and now from Austria, and soon from every land brought within the Fuhrer’s hegemony. Roosevelt has extended an invitation from the United States, and invited othei- coun tries to do likewise; for all the Americas, for Africa, even for Asia, notably includ ing the Philippines, the flight from central Europe will become a boon. God knows that thousands must perish, and the wan ton shame of this is terrible, but other thousands will win through and worship forever the soil and the new neighbors where they find sanctuary. It is both tragic and comic that such iron power is given to a myth; there is no aryan race, blood purges to the contrary notwith standing. But the hallucination, as we sur vey the situation, doing so because it af fects this Commonwealth and business feels it, can only be left to extinguish itself. To curb it would be to feed oil to flames. The Fuhrer rebukes democracies, alleging they inspire themselves with no ideology. Bet ter no light than a will-o’-the-wisp. Demo cracies can afford tolerance to the totali tarian state, whose Babels must crumble from the very weight of their disingenuous assumptions. 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 Philip pines. Branch at Manila: 21 Plaza Moraga Every Description of Banking Business Transacted Current accounts opened and fixed deposits re ceived at rates which will be quoted on applica tion. Sympathy even for the worthy (a num ber of the states to be affected are by no means worthy) can do no possible good. It ought to be felt, but the consequences of activating it would in our view entail in finitely more suffering, and more danger to civilization, than a resigned determina tion to let the emotion spend itself—as within a time reasonably brief it can not fail of doing. It is only more than a cen tury ago that Napoleon built an empire. Its boundaries can not now be readily traced, but there it was, from Warsaw to Paris, and even over in the West Indies, and on the continent too, in Louisiana, and scatter ed through the Mediterranean—Rome her self was in fee to it, and the pyramids gazed down upon its phalanxes. It had an ideology, too. We think it was rather a good one, a united Europe or something, and Germany was in the midst of it. But it soon came to inspire no one, least of all the practical French, and Waterloo came along and wiped it all away, a campaign into Rus sia a contributing factor. The French now remember Napoleon for his truly great works, not caring a fig for the memory of the empire. The Fuhrer ef fects great works too, and when he is gone, we mean superseded, as he soon will be, Germany and the world will like him for them. We know the German peoples need no man on horseback flaunting banners in everyone’s face extolling not merely their obvious virtues but specified virtues he as serts to be theirs alone. They do have a sense of humor, mislaid at the moment. This putsch is costly too, and on one ground and another it will soon weary them unendurably. Meanwhile, every sacrifice to the inexplicable urge is martyrdom for un iversal civilization, specifically for Ger manic civilization that in its true colors ranks with the highest. This is philosophic and cold, but it is fact. Now has the question other sides? We think it possibly has. It is possible that the putsch may be Europe’s indirect means of disarming. Let us see. It ought to extend Germany’s commercial scope permanently. Once the duties on the Danube are erased, why should they ever be written again? This will tend to competencv in all states it affects. Then, as the fragile structure of IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 the putsch falls apart into communities fighting to the death if need be for re stored liberty, Germany will speak in other tones at home. The states regaining au tonomy one after another will, in reason, try their constitutions again—they will need lesser shows of armaments to maintain their liberties. All this should be a process of years, ten years or more at least, and if it can but be slow, and at the same time sure in the large, that is precisely what Europe needs—to effect either a rational limita tion or abatement of arms. No country in Europe can disarm alone (Denmark would have, but the putsch now restrains her), nor can all Europe disarm abruptly. Armament is too much a vital part of the economic structure everywhere —something this magazine invited atten tion to a year ago. Gradual abatement of armament is feasible, it was effected sub sequent to the dissolution of Napoleon’s em pire. Had the Congress of Vienna been wiser, rearmament need never have occur red. Metternich was kind to steel at Vienna, just as Clemenceau was at Versailles. When it is all up with the Fuhrer, possibly better luck. It will be up with him when the mood of vain remonstrance against a sense of belittlement leaves the people, a sense of humor restoring their mental health. In a people who have replenished so profusely the wellsprings of rich learning and en nobling philosophy, idolizing a fuhrer is in congruous. Why theh do they do it? Be cause he personifies their power, his legions are graphics of their boundless energy and capacity. They are great, and at Ver sailles they were stigmatized with little ness. The Fuhrer wipes all this out, turns defeat into victory, no less. This effected, he will no longer be able to subvert their allegiance to principles of liberty. There is an instance similar in the Bible. The Ephesians were suffering some unto ward mortification when the congregation called Paul there. Possibly business was poor. The shrine to Diana failed to at tract as of yore; the more worshipers fell away, the more the Ephesians pure in blood rallied to Diana. Paul had an unfriendly welcome. There were storm troopers on the lookout. They met Paul at the city’s gates with menacing salutes—men sworn to fealty to Diana. Their cry was, in unison, “Great is Diana of the Ephesians! Great is Diana of the Ephesians!” Paul was wise. He admitted the point, and they let him in, where he taught them Christ. They dropped Diana of their own accord. It is a lesson in practical modern politics. Malacanan’s. . (Continued from page 8) gave them a fearful drubbing sixty years ago, for flirting with rival powers, for ced ing Balambang to the Company (British East Indies Company), and for leasing and frittering away to Englishmen an empire in Borneo. Then Spain rebuilt Jolo, walled it, and put a governor there with interces sory power, a garrison supporting his au thority. It is only because the Christian regions of the Philippines have, favored by cir cumstances, won the centers of ocean com merce away from Sulu that the common impression prevails that Suluanos are be hind the times. The reverse is true, on sea and land. Unsurpassed as pearlers and fishermen, they are unsurpassed as farm ers. Farming, not the sea, is their prin cipal occupation. Jolo is richly cultivated. Sulu fruits, grafted varieties for centuries, are of the best, a number of them grow ing nowhere else in the Islands. But if Sulu industries flourish, so also do Sulu feuds. The sultanate has been dege nerating for several generations, but at every vacancy their is unbridled rivalry to possess it. Traditional honor is not the only incentive to this, considerable religious in come is another. The late Senator (by Ma lacanan’s appointment) Hadji Butu devised a code, as state secretary under the sultan reigning when America took over, quite lucrative to the sultanate. The place is still worth holding, and rates a pension of Pl000 a month from the Commonwealth together with lesser sums to its higher officers. Malacanan likes to put in an oar when Sulu waters are troubled. Princess DayangDayang Hadji Piandao made a hasty pro gress to Manila following Sultan Jamalul Kiram’s death two years ago, and was feted here. Her intrigues set her husband up as sultan, Datu Ombra Amilbangsa; and other sultans sprouted from other factions. This pot pourri was let boil awhile, then Datu Ombra was made an Assemblyman. Pres ident Quezon was frankly grooming him for the Sulu civil administration, and now he has made him Sulu’s provincial gover nor. If Governor Datu Ombra can rise above partisanship and govern Sulu well, he is qualified educationally and may ex pect advancement to the Mindanao-Sulu commissionership. There is cause to fear that Dayang-Dayang’s influence will be partial, but Malacanan has been assured that Datu Ombra, for all the greater pres(Please turn to page 24) Serve adds tone to the occasion / It has Tone as well as The Drink Served QUALITY and TASTE a product of the MARSMAN & CO. Baguio Agents SAh MIGUEL BREWERY IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL The Journal Survey of Public Opinion Cabaruan Chromite The Observation Post Other Features SHIPPING 9 CURVES ARE LIKE THE STRAIGHT AWAY to this magnificently bal anced 1938 Studebaker with its independent planar suspension and symmetrical, direct-action steering. Its stability is amazing. IMPRESSIVE FUEL AND OIL SAVINGS give this Studebaker the operat ing economy of a smaller, lighter car. It probably won’t use half a gallon of fuel on your 10-mile trip. It saves oil sensationally. DRIVE •••THEN DECIDE GET YOUR MONEY'S WORTH - GET THESE STUDEBAKER FEATURES! Independent planar suspension ★ Symmetrical direct-action steering * Finest hydraulic shock absorbers ★ Non-slam safety door latches* Fram oil econ omizer ★ Oversize trunk ★ Horizontal gearbox ★ Hypoid gear rear axle* Safety glass all around—standard equipment on all models ★ Automatic overdrive, Automatic hill holder and Miracle shift available on all models. SIT behind the wheel of this big new 1938 Studebaker for 10 miles .. . put it to every diffi cult test you can think of I If you de, we know you’ll want to drive it at least 10,000 miles the first year—to say nothing of future years—because it’s so far ahead of anything you’ve been accus tomed to in a motor car. Amazing is the only word that describes how this vigorous, sweet-running 1938 Studebaker handles and performs. It smoothly levels off the roughest going . . . piles easy-chair comfort, steadi ness and security into every mile . . . gives vibration the un qualified go-by. And to get this marvelous motoring experience, you put up nothing but your time. The 10mile drive in this powerful, good looking, completely new, 1938 Studebaker is our treat. So don’t do anything about any car until you go out for 10 miles of Stude baker proof. See how this great challenger out-performs the rest . . . and then get a still bigger surprise when you find that this handsome 1938 Studebaker costs just a little more than for a small, light car. PARKING EFFORT IS CUT IN HALF by the new 1938 Studebaker dual ratio steering gear with one range for parking and one range for quick, safe con trol on the straightaway. You can edge this Stude baker into parking line ups you wouldn’t attempt with any other car. MANILA MOTOR COMANILA BACOLOI) April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 The Journal Survey In an attempt to obtain a cross-section of responsible public opinion, the JOURNAL asked readers to respond to a questionnaire regarding conditions in the mining and related business. Herewith, the results. Lest there be any misconception of the motives of the Journal in conducting a survey among its readers in in the Manila area to determine public opinion on ques tions relating to the condition of the mining industry, the stock market, the brokerage business, and so on, let it be made entirely clear that the Journal has no axe to grind. We are just as much interested in the prosperity of business in this country as is any person in the Phil ippines. We have many friends—good friends—in all branches of the mining industry, in the brokerage busi ness, and among those who merely participate in the development of the mining industry in the rdle of stock holders. But the Journal can see no harm in publishing the results of its survey, unpleasant as some of the opinions disclosed may be to any firm or individual. On the contrary, it is our opinion that the publication of these results may have a salutary effect, by disclosing just what public sentiment appears to be; so that those whom that sentiment affects, directly or indirectly, may if they choose take such steps as they think necessary or advisable. It may well be that public opinion in certain mat ters is unjustified; certainly it is true, we believe, that scarcely any of the readers of the Journal, howevervigorous their expressions of disapproval or condemna tion, intend a blanket indictment of all those engaged in any particular branch of the industry. And it must be remembered that human nature is a factor of no little importance; that the results of the Journal questionnaire reflect this factor to a very con siderable extent. In other words, if such a question naire were to be sent out during a boom period in the mining industry, its results would be, we believe, quite different. For who cares, when he is making money, how many brokers there are, or how much trading the brokers may or may not do for their own accounts, or what practices are employed by management companies and by the directors of mining companies, or even how much of an overdraft he has at the bank—so long as he is making money? Who worries, at such times, about promotion fees, or lavish expenditures for this and that? Yea, verily, a boom changes all things. And so does a depression. Yet if a depression can be defined as a time when most people lose money, then it can also be construc tively used as a period during which, if there are any faults with a system, those faults may be corrected. Therefore, if the results of the Journal survey serve to indicate that there are faults, or that the public thinks there are some faults (the two are not necessarily cor relative) then, we think, the survey will have'justified itself. It is not our purpose to suggest what may happen, or even that anything at all will happen, as a result of the disclosure of the state of public opinion, as reflected by readers of the Journal. In publishing the results of the questionnaire, we merely place on the map the reefs and shoals, the jagged rocks of public opinion. What course the mining industry, in all its branches, shall choose to chart on that map, is the business of those concerned. In presenting these results, the Journal makes no claim of infallibility. The results may, or may not, be a true index of public opinion. They are at least a true cross-section of the opinions of Journal readers, Amer icans and Filipinos alike; and those readers are business men. Before reading the summary of the results, it should be made clear that the questionnaire was sent, without regard to business classifications, to an equal number of American and Filipino Journal subscribers living in the Manila area. A proportionate number of subscrib ers (not every subscriber) was taken from each letter of the alphabet. In order to obtain as large a percent age of returns as possible, we tried to make it easy as possible for readers to express their opinions. This was done by taking opinions most commonly heard in con versations where business men foregather, printing those opinions in the questionnaire so that, to express a similar view, the reader had only to make a check mark. But space was provided for expressions of other opinions besides those printed, and readers were invited to do just that. And did. Returns: 34.6of questionnaires distributed. To anyone familiar with questionnaires, that means results. On the question— WHAT DO YOU THINK IS THE MATTER WITH THE STOCK MARKET? (readers were asked to indicate relative importance of the reasons by marking 1, 2, 3, etc., if they thought more than one condition was affecting the market.) 69.2% said the unsettled political status of the country is an important reason for present con ditions. 66.6% thought the public had lost confidence in the management of mines. 337c thought that market prices of stocks are still to high. 22.2% said they thought there was lack of ready capital. 19.2% thought conditions in China, Europe, etc., were affecting the stock market. More significant than the above percentages, we think, are the No. 1 choices indicated by our readers. First reason for present market conditions was loss of confidence in the management of mines (number one choice of 38.37c of all returns.) Second most important reason lies evenly divided, in our readers’ opinions, between lack of ready capital and the unsettled political status of the Philippines: both reasons received an equal number ,of votes for No. 1 (22% each.) 16 THE AMERICAN CHAMBER Third in importance as No. 1 reason was that prices of stocks were still too high (15.5%). Last reason, in point of importance as the chief factor, was the unsettled conditions in China, Europe, etc.—chosen for No. 1 position by only 2.2% of Journal readers. On the question— WHAT DO YOU THINK OF THE BROKERAGE BUSINESS?—there was a general uniformity of opinion on some points. For example, 6-to-l, readers thought there were too many brokers; and in addition, about 20% of the readers took the trouble to write-in the opinion that there are also too many stock exchanges; that one exchange would be enough. This 20% write-in vote must, we believe, be given considerable importance, both because it in volved some extra effort, and because of the prepon derance of opinion regarding the surplus of brokers. In this connection, it should be noted that very few people appear to believe that the number of brokers or the number of exchanges have anything to do with the depressed condition of the stock market. Opinion in general is that the excess of brokers (or what the ma jority believe is an excess) is an evil in itself, and that it does more harm to the brokers (by spreading profits thinner) than to anyone else. But there were some who expressed the opinion that the conflicts between the two stock exchanges, the lack of uniformity in trading rules (such as on the ques tion of the pegs), and so on, deter people to a certain extent from Ynarket trading. Three-to-one, readers thought brokers should not trade for their own accounts. Most important reasons why they should not do so, in order, were: (1) that brokers can manipulate public trading to their own ad- • vantage, and (2) that it is unethical for brokers to trade for their own accounts while at the same time handling transactions for their clients. On the other side, one-quarter of the people believe that it is either (1) unfair to prohibit brokers from investing their own funds in the market, as anyone else can do, especially during periods when commissions on straight brokerage are not enough to show them a prof it; or (2) that it is useless to try to prevent such trad ing by brokers because they will find a way to do it anyhow. On the question— WHAT DO YOU THINK ABOUT THE S E C?—there was even more evidence of unanimity of opinion on al most all points. Nine-to-one, readers replied that the SEC has not effectively cleaned up conditions in the various branches of the mining industry; only 54% of readers thought that the SEC has even scratched the surface. Yet, less than 2% thought the SEC was unneces sary or unjustified; only 6% thought the SEC has not enough power to do its job. It appeared conclusively from the above returns, and from comments written in on the questionnaire forms, that public sentiment is overwhelmingly 'in favor of a more aggressive SEC. Of conditions which people thought the SEC should take steps to correct, the following were considered most important, in order: Expenditure of stockholders’ funds in unjusti fied items. OF COMMERCE JOURNAL April, 1938 Expenditure of stockholders’ funds in exces sive amounts. Continued expenditure of stockholders’ funds in spite of unfavorable engineers’ reports on mining claims. Incomplete or inconclusive reports to stock holders. Use of non-uniform accounting systems. In addition to the above points, which were printed in the questionnaire and which were answered simply by check marks, readers were asked to indicate other conditions they thought should be corrected. Descrip tions of these conditions had to be written in; conse quently, though fewer in number than the simple check marks, they are possibly more important as indications of public opinion than their mere numbers indicate: Of written-in answers, the conditions the public wants corrected, in order of importance, are: (1) mani pulation of stock market prices by “inside” operators; (2) methods employed by operating companies in their administration of mines; (3) promotions of issues prim arily for the profit of the promoters—also payment of excessive promotion fees, organization expenses, com missions, etc.; (4) existence of two stock exchanges. (In connection with this latter point, which was given such prominence in replies to the question, “What do you think is the matter with the brokerage business?”, it should be noted that Journal readers for the most part apparently are aware that the SEC has not the power to effect a merger of the two exchanges. Hence the suggestion that the SEC should do something about this condition was made by very few; whereas the general statement that there should be only one stock exchange was made by many more.) On the the question— WHAT DO YOU THINK OF THE PEGS?—readers were divided about 60-40, 60% believing the pegs should never have been used at all, as against 40% believing they should have been. BUT, on the question, should they now be removed entirely?, there can be no doubt—the vote is 7-to-l, “yes”. Some few readers were undecided and express ed no opinion; less than 8% thought the pegs should be retained by both exchanges. On the the question— WHAT DO YOU THINK OF CONDITIONS IN GEN ERAL?—some of the most significant answers in the whole questionnaire were received. Readers are divided exactly equally on the question —are you completely fed up on mining speculation?— discounting a very small number who expressed no opin ion at all on this question. But, fed up or not, they say, 3-to-l, that they would speculate again if the market firmed up. Readers said (more than 5-to-l) that their friends were mostly losers in the stock market to date. Two-to-one, readers also believe that there will be another boom; but they are even more decided (4-to-l) that prices of mining issues will not again reach 1936 levels. In short, they appear to think there will be an other boom, but not that kind of a boom! Those who were undecided on this point numbered about 10% of the total. On the question—what do you think is a fair divi dend on mining investments?— April. 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 preponderant opinion indicated 20% per annum; next choice (50% less than the first group) was exactly divided between 10% and 15% per annum; a still smaller group thought 12% about right; there were just three readers who thought about 8% would satisfy them, and the same number who want 25%; one wants 30%, two vote for 40%, and one optimist wants 100% of par per year. These were scattering votes; range of majority opinion lies between 10% and 20%, with the latter figure pre ferred. On the question— WHAT DO YOU THINK OF INVESTMENT VS. SPECULA TION?—Eight-to-one said they have noted a tendency toward investments for dividends rather than speculation for market appreciation; but 60% of readers failed to answer this ques tion at all, so that the 8-to-l answers represent only 40% of the total number of returns received. We interpret this to mean that more than half of our readers have not thought about this point and therefore have formed no conclusions. As to how Journal readers today would prefer to employ their funds (on this question, too, 1st, 2nd and 3rd choices were indicated by a majority of readers, while others, without indicating pre ferences, said they would distribute their funds among several choices) : Outstanding choice (2-to-l over the next nearest)—pro ducing mines. Next choices: evenly divided between investments in di versified P. I. industries (other than mining) on a dividend basis; and investments in promising non-producing mines. Only one-third as many people would invest any funds in U. S. stock market securities, as would invest in producing mines in the Philippines. But even fewer (about one-fourth of those who would in vest in producing mines) show a marked disposition to keep all their funds in the bank, although 36% would keep some reserve in bank accounts. Commodities in the U. S. were the first choice of only one reader, and one other preferred to put his money into annuities. Finally, although the questionnaire emphasized that readers did not have to sign their names or otherwise identify their re turns, about 40% nevertheless chose to do so. This, as anyone knows who has ever used the questionnaire to obtain expressions of public opinion, is an unusual performance. We choose to be lieve that it indicates: (1) that Journal readers hold their own opinions and that they don’t care who knows them; and (2) that Journal readers have confidence in the integrity of this publication. ANALYSIS Most significant feature of the returns as a whole, without question, is the nature of comments written in by those who res ponded. Such comments were mainly directed at the brokerage business and at the management of mining companies. Since we divulge no names, we are violating no confidence when we quote, verbatim, some of the more significant of these remarks: On the brokerage business: “How can they give service to a client whose market position is opposed to theirs?” “Short selling should either be definitely stopped or should be made a legitimate trading feature open to all.” “Too many exchanges.” “Merge the two exchanges.” “Why try to prohibit brokers trading, they will do it anyway.” “Over-manipulation by some brokers.” “They won’t keep their clients if they consistently advise them in their own (brokers) .interests.” “Cut the number of brokers and they can make legitimate commissions.” “One exchange would be quite enough.” “Brokers should be allowed to trade for their own account only as an investment house under dealer’s license; all such transactions to be kept separate.” “Should only be one exchange.” “The two exchanges conflict.” “Smaller number of brokers could afford to render better service.” Modem £nyinel fiot Modem 7uel^ All Bf A Guilds engines for every gas and liquid ■W BA BA VA ^A fuel—each the most economical in its class—each the product of thirty years of engineering experience in design and manufacture and each built to perform a specific duty for a particular industry. Today, the Waukesha Motor Company manufactures forty-two different models of engines burn ing aotificial or natural gas, high or low octane petrols, paraffine, alcohol and the generally available modem high-speed diesel-oil fuels, to serve the power needs of thirty-four different industries. The ratings range from20to 325H.P. Fuel oil power finds its widest application in the economical and depend able performance of the Waukesha-Hesselman Spark Ignition Engine. The outstanding difference between this engine and a compression ignition Diesel engine is the fact that it is a low compression solid injection fuel oil engine using battery or magneto ignition. Easy to 6tart, even under adverse weather conditions. The Hesselman cycle is readily under stood by anyone familiar with petrol engine operation. Waukesha-Hesselman Power Units are built in sizes varying from 20 to 325 H.P. Ask for special booklets “What Is That Hesselman Engine?’ or ,jQue Es Un Motor Hesselman?’ • Write the home office for complete information and specifications Waukesha Gasoline (Petrol) and Gas Engine Power Units range from 20 to 325 H. P. WAUKESHA MOTOR CO. Waukesha, Wisconsin, U. S. A. 21-3:38 Cables: “Motor-Waukesha” PETROL DIESEL FUEL ir 18 THE AMERICAN CHAMBER "Playing both ends against the middle.” “A broker is in a position of trust. To act as a principal is a violation of that trust.” “What ethics?” “If this market continues its present trend this (too many brokers) will take care of itself.” “They might as well (trade for their own accounts) as most of their clients are getting wise enough not to.” “What are ethics quoted at today, or are they pegged too?” “Yes (allow them to trade for their own accounts) they all speculate anyway under dummy names.” “It would be possible (to make a profit on straight brokerage) if there were fewer brokers.” “They do it (trading on their own account) anyway, underhandedly.” Yet, because there is at least a minority sentiment—“it is a poor loser who will blame the broker for his losses”—we can not overlook the fact that although the majority opinion is adverse to them, the brokers have some staunch defenders. DU PONT DYNAMITE CAPS FUSE Stocks in Manila for Immediate Shipment Indent Orders Accepted for Future Delivery SMITH, BELL & Co.,Ltd. Agents Cebu — MANILA — Iloilo OF COMMERCE JOURNAL April, 1938 But let no one suppose that brokers are the only ones who come in for criticism. Consider, first, that the chief reason ascribed for the present condition of the stock market is not political uncertainty, not lack of money, not conditions in the rest of the world, not the brokers— but loss of confidence in the management of the mines. It is a reflection on some operating companies and on some boards of directors of companies which do their own operating. But it is not a blanket inditment of all operating companies, or of all boards of directors. For an appreciable percentage of readers in commenting on management took the trouble to mention specific exceptions; while others, without noting exceptions, did mention certain specific ones in which they had lost confidence. Perhaps, again, verbatim quotations from replies received from readers, will best serve to illustrate the trend of thought: “Management companies with no training or experience for management, such as (name of company deleted) and others of similar nature.” “Get fake stocks off the board.” “Cause a large number of ‘mining companies’ which do not own claims or are not actively developing same to be dissolved. See that fantastic salaries are not paid to of ficials of such companies.” “Not allow trading.. .where there is no actual proof of the presence of sufficient paying ore.” “A more complete study of how the market is manipulated to the advantage of a chosen few.” “Thoroughly investigate operating companies.” “There can be no doubt but that two prominent groups... mislead their stockholders.” Certainly not of least significance in the returns of this survey is the anomaly that although 50% of our readers say they are fed up on mining speculation, no less than 75% say they would specu late again if the market turns better. As against this, 32% have noted a tendency toward invest ments for dividends rather than speculation for market apprecia tion, and a total of 92% would put their money into either pro ducing mines or into diversified Philippine industries paying divi dends; with promising non-producers and U. S. stock market se curities as somewhat less preferred choices. If these indicate a trend toward conservatism, how account for the fact that 75% would nevertheless speculate again if the market firms up? CONCLUSIONS We believe that several important conclusions are to be drawn from the results published above. Perhaps most significant is that apparently there is still plenty of money available for investment (or speculation) in the mining industry. And that despite losses, despite an apparent lack of confidence in the management of at least some mining companies, despite the evidence of public disfavor with at least some brokers, three quarters of the business men of the community could never theless be counted upon to resume trading again, if and when various conditions improve. As one wise and successful business man puts it, it is still just as true today as it was in 1936, that the mineral resources of the Philippines have as yet barely been scratched. The history of mining throughout the world shows that we in the Philippines could not reasonably have expected to develop the local mining in dustry without experiencing some of the “giowing pains” peculiar to that business—booms and recessions, unsuccessful promotions, barren claims, worthless stock as well as spectacularly valuable stock, good mines and bad, good mining operators and bad—the whole pattern. We happen now to be in a depression period in that industry—a depression which might have been brought on by any one of several conditions existing in the industry in 19361937, or by a combination of such conditions. In short, a depres sion which might have come regardless of political affairs, regard less of disturbed situations in the rest of the world. That depres sion period, like others before this, will come to an end; quite (Please turn to next page) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OR COMMERCE JOURNAL April. 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Cabaruan Chromite Cabaruan Chromite, Inc. Top, opening a new lens; middle, office at main camp; bottom, loading station on Bilangaguin river. Cabaruan Chromite, Inc. has 2000 tons of 46% chromite 12% iron and about 5% silicates taken from pros pecting pits and tunnels on its 56claim chromite property in southern Pangasinan and ready for shipment from storage bins in its two ware houses on its riverport where a load ing platform accommodates lighters up to 500 tons capacity. This is the work of J. R. “Joe” Federle, one of the older miners in the Common wealth. Cabaruan Chromite is cap italized at P350,000 but only P70.000 of the authorization has been issued and Federle says there won’t be any more sold. He owns, he says, P50,000 worth of the stock, and has ad vanced the company P30.000 more by way of loans. Practically, this makes Cabaruan Chromite a one-man enter prise and lays all responsibility on Federle. Primary development on the prop erty consists of a 10-1/2 kilometer truck highway cutting the property north-south and graded to obviate steep aclivities bn any tap road from claims where deposits turn up. Ex ploration is mainly open-cut work, supplemented with drilling. Two paying lenses have been discovered and are being worked, while many other points on the property are pro mising, Federle says. His great boast is the highgrade quality of the ore; nevertheless, he plans a concentration plant at the loading station on the river for conditioning ore of lower grade and winning the maximum from the deposits. The longest haul on the property is 10-1/2 kilome ters, the haul from the deposit most recently opened is 3 kilometers. Ore waiting sale and shipment is binned in sheds to obviate weathering. Federle says the capa city of the concentrating plant will be 4000 tons. According to his data, costs have been low for every thing. The truck highway, surfaced and well built, cost P16,000; the large office and administration building at the main camp cost P6,000; the warehouses at the river port cost P2,500; other warehouses at the main camp cost P2000; the garage, cartshed, fuelshed, toolhouse and shop, and stables at the main camp cost P3000. There are tools and equipment for 250 men, the payroll and incidental project expenses run P1500 to P2000 a month. Sales made and ore ready for sale sum about 40% of the investment to date, Federle reckons. He says the margin per ton excels that for gold, and he expects a re markable return from his investment. The Elizaldes and Puljates once had the property, but Federle bought it from them, having learned from employment there what mistakes were being made, in his judgment, and something of what might do with the property were it in his control. Federle is a native of Wisconsin who came to the Islands a soldier in the 23rd U. S. Infantry with the Third Expedition under Colonel (later Brigadier General) Ovenshine on the transport Indiana in 1898, and from soldiering went to mining—in Mindanao, when building Camp Overton in Masbate, in the early part of 1900-1901 and from 1905 at Baguio, where he worked at the building of Camp John Hay, the Country Club, etc., prospecting and mining in his off time. You know Demonstration? Fed erle prospected it as the Copper King property. He was also on the groundfloor at Cal Horr, and sold this property to Benguet Consolida ted. His prospecting and develop ment work extended over what is now Big Wedge, Muyot, and Gold River. He says Gold River has a good chance to come back, “they will find it at depth.” His mining career at Baguio embraced nineteen consecutive years, and his sobriquet earned there is “Baguio Joe.” When you ask him if he can sell his Chromite, he says, “I can—leave it to me.” The typical pioneer confidence of the old Veteran. Pictures of Federle’s project show up very well._____ __________________________________ Journal. . . (Continued from page 18) possibly the end will come, as is usual in the mining business, more suddenly than now appears likely. And the surest indication of this is that a big majority of the public believes there will be an other boom; and it is the public which makes booms. But so few people think prices will again reach 1936 peaks, that perhaps we should qualify that: what lies ahead is a boomlet, or a boomecito— but still, a boom. How soon? You guess. T) T M 1\/f R ! OS ANGELES 1 VV 1V1 D HAND FORGED Automobile & Aviation Tools KLEIN CHICAGO PLIERS FOR ELECTRICAL WORK E. VIEGELMANN 460 Dasmarinas Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL The Observation Post By Eric S+aight The United States is back on the inflation highway— not greenback printing—not further dollar devaluation— but just plain spending, with a consequent increase in National debt. As discussed in last month’s article, the price structure collapsed' because the props were re moved, and it has now been found that no amount of talk—no amount of promises, will take the place of the golden stream. The price rise and pseudo prosperity of 1933-37 was built on pump-priming, or the Government expenditure of over sixteen billion dollars, and now, after the structure has been found as shaky as it was bound to prove, the Administration has decided to return to its first method—largesse. This turn of events was almost inevitable, as the only other course lay in renunciation of the New Deal’s most cherished objectives. Popular support for its reform and socialistic measures could hardly survive a long and disastrous price decline. . The big question is, how gullible is the popular vote? Will the resumption of the original methods have the same appeal? It seems doubtful, particularly in view of recent events in Congress. After all, the United States is basically a democracy, and one in which the country’s actual ownership is more widespread than any other in the world. Making all allowance for the labor vote, giving full weight to the socialistic and semi-communistic elements, will the country as a whole greet with compla cency the almost casual admission that the only way to pursue the present scheme is through staggering increases in the national debt? Time alone will answer that ques tion, but if it is possible for a nation to spend its way to lasting prosperity, then a new economic law has been dis covered, and this writer believes that national scepticism on that point is growing by leaps and bounds. However, it may be premature to predict an early revulsion of feel ing. Early in the game a very famous politician de scribed us as a nation of one hundred and thirty million guinea-pigs, and it seems more useful at the moment to analyse this fresh experiment rather than to indulge in prophecy. At this writing the facts seem to be that the new program involves the injection into the national circula tion, by direct or indirect means, of approximately seven billion additional dollars. The greater part of this is to come by the direct method—i.e. borrowing, and the bal ance from gold desterilization and a decrease in reserve requirements. On the subject of gold desterilization, there seems to be some confusion of thought, so an explanation appears in order. Member Banks of the Federal Reserve system operate under Government regulations. These regula tions govern the amount of deposit expansion of such member banks. There must be a direct relation between the Banks’ reserves and their deposits, therefore a cer tain legal limit is set beyond which member banks may not go. Prior to August 1936 member bank reserve re quirements were ten percent, or one gold dollar (Treas ury certificate) to every ten dollars of deposits. Under the gold standard, when gold flowed freely in response (Please turn to page 25) Market Graph for 1936, 1937, 1938, prepared exclusively for the Journal by Clifford A. Greenman, Securities Service Corp. DOUBLE-DRUM ELECTRIC TUGGER HOISTS EASY TO MOVE The compact construction of I-R Hoists reduces their weight and permits their easy movement from one working place to another without the usual inconvenience and difficulty. EASY TO OPERATE You can depend on the "Tugger" to be a perfectly simple and safe machine for one man to operate with comparative ease. COMPACT The compact design of these machines makes it possible to install them in narrow stopes, low places, or other restricted mine areas. MANY SIZES A wide variety of sizes and types of double-drum electric hoists enables mining men to make a suitable selection for a particular job. Air and gasoline hoists are also available. DEPENDABLE Scraper mucking and other mine hoisting work demand dependable service. The "Tugger" has an enviable reputa tion for handling tough jobs without costly breakdowns. POWERFUL l-R double-drum "Tugger" hoists have that "extra power" which so often helps in the handling of arduous under ground jobs. Janishaws 60 118 SECOND STREET, (P. O. BOX 282) MANILA, PHI LJ^IN^-ISLANDS /M Broadway: new york, n. y. InoeTwoll-Rand RPAMMAN CT CAM TOAMflcm 22 Illi-. AMERICAN CHAMBER OF COMMERCE JOURNAL April. 19 38 Culled from the News OIL: Far East Oil Development Com pany, formed by J. B. Hoover, W. W. Har ris, B. H. Berkenkotter. ,and other as sociates to search for oil in Tayabas, is down over 300 feet, and has located oil shale, according to Mr. Hoover. The [KqppeL] Sole Agents for PENNSYLVANIA PUMP & COMPRESSOR COMPANY Two-Stage Duplex Synchronous Motor Driven Air Compressor Orders recently placed and delivered: Palidan-Suyoc Deep Level Tunnel Co., Inc. 1-19" x 11" x 14" COMPRESSOR I tog-on Mining- Companv, Inc. 1-25" x 11" x 16" COMPRESSOR San Mauricio Mining- Companv, Inc. 1-18" x 11" x 14" COMPRESSOR United Paracale Mining Company, Inc. 1-18" x 11" x 14" COMPRESSOR Marsman & Companv, Inc. 2-12" x 11" COMPRESSOR Surigao Consolidated Mining Co., Inc. 1-15" x 9’4" x 12" COMPRESSOR YOUR ENQUIRIES ARE SOLICITED Sole Agents KOPPEL (PHILIPPINES) INCORPORATED ILOILO MANILA CEBU JOURNAL understands that, since Mr. Hoover’s trip last month, the operation has begun producing six barrels of oil a day. Two drilling units are now in operation, one of these having been started toward the end of last month. The gold boom pulled us out of the slump which followed the passage of the TydingsMcDuffie Act. It may be that an oil boom may pull us out of the current doldrums. It is to be hoped that such a boom, should it develop, can be controlled. We wonder whether the recent expro priation of foreign oil interests in Mexico (including some valuable Standard Oil pro perties) will have any effect on Standard of New Jersey’s decision to come into the Philippines? MINE FACTORS AND MANILA WINE MERCHANTS LISTED ON I. S. E.: The International Stock exchange has re cently listed the stocks of Manila Wine Merchants and Mine Factors on its big board. Trading in these stocks is fairly active, and both are selling comfortably above par, so that no complications have ensued from the fact that the International has removed the pegs while the Manila has not. Can’t somebody spare a word of praise for the stubborn determination the major ity members on the board of directors of the Manila Stock Exchange have shown in maintaining the pegs in the face of an insistent demand from nearly every source that they be removed? They certainly stick to their guns. Feeling over the matter has become pretty bitter, with the beleaguered “peggers” apparently determined to keep those pegs, no matter what. MINE FACTORS SEES AMALGA MATED: A series of conferences held between officials of the two companies in an effort to adjust Amalgamated Minerals’ indebtedness to Mine Factors having fail ed, the latter company through its attor neys, Julian Wolfson and Alva J. Hill this month filed suit against Amalgamated. The latter was apparently expecting the action, for, a few minutes after the Mine Factors complaint was filed, it filed a cross-complaint alleging that the managanese ore of Mine Factors Was not up to contract standard, with consequent over-payment by Amalga mated Minerals, under the contract sued upon. Former Justice t’laro M. Recto is Amalgamated’s attorney. Mine Factors has been selling manga nese f.a.s. Siquijor, to Amalgamated Mine rals, among other purchasers, under a con tract drawn according to standard prac tises, providing for payment of 80', of the contract price of Pl9.00 per ton when the ore is delivered alongside ship at Siquijor, and the other 20'7, upon receipt of smelter returns from the point of destination of the ore, which receipts must be delivered to Mine Factors within a specified period (Please turn to pane 29) /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION I HE -\M ERICAN CHAMBER OE COMMERCE' JOURNAL April. 10 38 ////-. AMERICAN CH AM HUR OR COMMERCE JOURNAL 23 What the Diggers Are Doing RALSTON: .4. If. Ralston was re elected president of the two Ralston-man aged mines, Demonstration and Beiiyuet EzpE'rntion, held last month. The two an nual meetings disclosed that both comp anies had a successful 1937, and look for ward to increased profits during 1938. Demonstration stockholders particularly, it was stated, can expect a regular divi dend of 10 per cent per quarter, according to the annual report. (Other officers and directors re-elected are, Bairn Baldicin. vice president, M. M. Morgan, Jose Aranc ta, and Jose Maria Larson, directors and Eranciseo Segado, secretary.) MARSMAN: Seven new production re cords were established by the Marsman mines during March. Total output from four lode and one placer operation was well over the million peso mark for the first time, production amounting, in fact, to Pl,156,887.14. Ton nage handled in the various mills, 57,024 tons, and cubic yardage handled—366,(»iH> cubic yards—were also new records. United Paracale beat all of its previous records with an output of P209 099.00 worth of ore. San Mauricio put 8,625 tons of ore through the mill, which is the highest ton nage since the plant was staited. ENGBERG TO SUMATRA: J. O. Eitgherg, chairman of the board of con sultants of Marsman and Company, left on April 5 for Sumatra and the Mangani mine. This property has been considerably developed. It was formerly operated by the Equator Mining Company. Marsman engineers have been interested in the project for some time, and ore is in fact now being subjected to metallurgical tests here in the Philippines in order to de termine the proper flow sheet for a milling plant. Mr. Engberg and other Marsman engineers plan to select a suitable location for a mill. A Marsman release states that diamond drilling at Mangani during the past year has met with satisfactory results, and a considerable amount of ore is indicated. There is a good road to the property, and three hydro-electric plants exist, of which one is in use and the other two are ready for operation. Much mine and electrical equipment is stored on the property, and many of the necessary buildings for a min ing project exist and are serviceable. SORIANO: North Camarines Mill: The North Camarines Gold Mining Comp any, of which Andres Soriano is the pres ident, and International Engineering, the Soriano mine-management company, as general manager, has granted a contract to the Southicestern Engineering Company of the P. I., Inc. for the construction of a 300ton ore milling plant at its property in Paracale district. A unique feature of the mill will be the This is necessary for accounting purposes inclusion of a customs mill arrangement in connection with the plan to treat ore for the sampling and weighing of the ore. from other properties in the North GamaENGINE TYPE “Al” SYNCHRONOUS MOTORS For Direct Connection to Air Compressors Providing Power Factor Correction With Mechanical Energy. THE EARNSHAWS DOCKS & HONOLULU IRON WORKS 60-118 Second Street, Port Area Manila, P. I. Branch Offices P. 0. Box 282 Bacolod, Occ. Neg. Tel. 2-32-13 Cebu, Cebu IX RI:SI>()X'l>IX’C I (> Al)\ I RIISI Ml X I S I’l l A\I MI.N I 1<>X’ Illi AMLRKAX ( IIAMIM: .R ()l (OMML.RCI JoURX'AI 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 19 38 Here’s how to get Manila’s! Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby’ Philippine Tubaeeo Agent: List of D i s tri ll u t o r s furnished upon re quest to— C. A. Bond 220 W. 42nd St., New York City Collector of Internal Manila. P. I. Revenue MANILAS made under sanitary conditions will satisfy your taste! (Health Bulletin No. 28) Rules and Regulations for the Sanitary Control of the Factories of Tobacco Products. "Section 15. Insanitary Acts.— No person engaged in the handling, preparation, processing, manufac ture, or packing of tobacco product or supervising such employment, shall perform, cause, permit, or suf fer to be permitted, any insanitary act during such employment, nor shall any such persons touch or con taminate 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 substan ces as a moistening agent;...”. lines plant. Initially, the North Camari nes mine will supply approximately 200 tons a day to the mill, and up to 100 tons will originate from the Mambulao Consoli dated mine. Southwestern Engineering, which built the Mineral Resources galena mill at Marinduque, will be responsible for the com pleted job, including design, purchasing of equipment and field construction work. It is now preparing the preliminary layout drawings of the milling plant, and work will be commenced immediately following approval by North Camarines engineers of the preliminary drawings. Present estimate of positive and proba ble ore reserves of North Camarines is 64,936 tons with an average value of P55.90 per ton, according to the February report of D. Spafulding, general superin tendent. Good assays have marked pro gress of development work, and work is now concentrated on stope preparation. INTERNATIONAL ENGINEERING TO DEVELOP PARACALE NATIONAL: The 24 claims of the Paracale National Mining Co., adjacent to the Tumbaga group of Consolidated Mines, Inc. and that of the Universal Mining & Exploration Co., in Mambulao, Camarines Norte, will be devel oped by International Engineering Cor poration one of the Soriano companies. Marsman and Company, which had the development contract for six months, agreed to cancel its contract in favor of Interna tional Engineering. The Paracale National claims are the particular interest of J. R. Reed, old-time miner, who first visited the property in 1909. He began active development work that same year, although the company it self was not organized until last year, with C. W. Rosenstock, (who was largely respon sible for the International Engineering deal) as secretary-treasurer. Development work so far done has been sufficient to determine existence of several veins, and it is now planned to develop these veins at depth. It is anticipated that, by the time the North Camarines mill is completed by Southwestern Engineering the property will be able to furnish 100 tons of ore a day for the North Camarines mfil (see above). PARACALE MINING DEVELOPMENT MILL: This company has announced that its combination flotation and cyanide mill is expected to arrive here on May 2nd. It will have a daily capacity of between 75 and 100 tons. BAGUIO GOLD RECORD: In line with predictions of its management that 1938 profits will substantially exceed those of 1937, Baguio Gold Mining Co. reported last month that its production was P143,501.48 from 9,220 tons treated. This is a new record. HAIJSSERMANN: The four gold pro ducers of the Benguet interests established a new all-time high for monthly production last month, producing P2,216,046.96 from 81,250 tons treated. Benguet Consolidated set a record, and the production of Balatoc, Cal Horr and lpo Gold showed increases over February, although not new records. Meanwhile, Benguet Consolidated has ceased operations on the Masinloc chromite property of Consolidated Mines, due to lack of current demand for the chrome at Ma sinloc. It is hoped that negotiations now underway in the United States will dis close a new market for the Masinloc pro duct. Until then, Benguet is confining its chromite activities to its Florannie opera tions. Florannie Mining Co. recently declared a twelve percent dividend on the common stock. MACAWIWILI MILL: The Macaw iwili Gold Mining and Development Comp any has recently contracted with Marsman and Company for the purchase and install ation of a 120-ton cyanide plant for its Acupan property in Itogon, Mountain Province, where P2,887,105 worth of high grade ore has already been blocked out. Demonstration Gold Mines, American Cyanamid Company, Engineering Equip meat and Supply Company, and the South western Engineering Company of the P. I., all conducted ore tests, and agreed that the ore, being free-milling, offers no dif ficulty in treatment. It is reported that the Macawiwili company may become a pro ducer within the next four or five months. Two main vein systems have been located cn the claims. These systems, although extensive and containing high-grade ore, seem to be pretty well confined to the Ma cawiwili group. To the Southwest of this group lies another group of claims which the old Padcal Mining Company struggled with in 1934. The Padcal company sold them to Tomas Confesor in 1937, and he formed the Benguet-Itogon Goldfields Comp any, which sank more money into the claims, but without developing anything commercial. MINDANAO MOTHER LODE PROFIT ABLE: Ore reserves of Mindanao Mother Lode amount to 114,474 tons valued at P3,633.040.20, according to the report of Frederick McCoy, general superintendent, submitted to stockholders last month. He also stated that the last four months of last year (the company became a producer in September, 1937) were quite profitable, a total of 16,787 tons of ore being milled, from which P663,041.56 was produced. A profit of P301,532.04 was made from this operation, of which 15 per cent went to Engineering Equipment & Supply Co., the managers. The company is capitalized at P2,000,000 of which P800,000.00 is subscribed and paid by mine development, machinery and cash, and the rest held for claims, await ing approval of the Securities and Ex change Commission for release. L. D. Hargis is president, T. M. Jordan, vicepresident; F. S. Parker, secretary-treas urer, and C. C. Grinnel, and C. E. Olsen, directors. Malacanan’s. . . {Continued from page 14) titre his wife enjoys, really wears the pants in his family. He gives up the sultanate in assuming the governorship, and the sultan at the an cient capital, Datu Aberin, at Mayombong, rules alone and must angle as best he may for the usual gratuities from Manila. He is of Hadji Butu’s camp. This abasement of a throne of whilom dignity and wealth illustrates the involun tary evolution Sulu affairs have undergone during the American period. Congress, perhaps with wisdom, certainly with intend ed fairness, has wanted to do nothing in the Islands (such as setting up a special administration for Moros) that would divide the people or tend to keep them divided on the arti6cial ground of differences of reli gion. Bag and baggage, therefore, all the minority peoples, prominently the Moros, were laid on the Commonwealth’s doorstep and tagged, “These are your children too.” /.V RESPONDING l() ADVERI /.Sl-.U/ N f.S Pl.EASF. MENTION EHL AMERICAS’ CHAM HER OF COMMERCF JOURNAL THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 April, 1938 Observation. . . (Continued from page 20) to normal laws of supply and demand, this requirement appeared adequate: There was no terrific excess of gold entering the country and therefore no great expansion of “excess reserves”, but when the dollar was devalued and the United States became a magnet for most of the world’s gold production, the picture changed. Gold li terally streamed in from every producing country and was bought by the Treasury with “Gold Certificates” which found their way into member bank reserves. In asmuch as the ten to one ratio still held good it will be seen that by August 1936, when excess reserves amounted to some three billions, a base had been created for credit expansion of some thirty billion dollars. This proved a source of apprehension to the Ad ministration (although in view of other policies it is dif ficult to see why) and reserve requirements were raised to fifteen percent, thereby cutting excess reserves to slightly under two billions. However, the flow continued, so a new policy called “sterilization” was introduced. Under this system the Treasury, instead of paying for its gold by means of gold certificates, borrowed in the open market, thus avoiding the creation of excess reserves. This effectively halted the expansion of such reserves, but of course, increased Federal debt in direct proportion. Much has been made of the fact that this increase in debt was at least figurative. After all, it was offset by gold buried in vaults here and there, and could there fore be disregarded in budgetary discussions. Very true —as long as it remained buried, but we now find, as some unpopular economists predicted some time ago, that this gold, or its equivalent, is not to stay buried but is to be thrown into the general pot. True enough, it has already been paid for, but the plain fact remains that the debt so created must now be added to the total spending bill rather than remain as an academic and relatively unim portant item. In other words, the Treasury has “desteri lized” its gold hoard and will issue gold certificates against it which in turn will be drawn upon for various types of Government spending. So much for “desterili zation.” Aside from the question of public reaction to the resumption of general pump-priming comes the practical matter of the Government bond market. The 1933-37 program was financed for the most part by the unloading on the banks of billions of dollars in Government Bonds. As matters now stand they already hold far too many such obligations for profitable operation, and any further large scale purchases would make a bad condition worse. Furthermore, the nation’s commercial banks, as a whole, are not in a position to increase deposit liabilities to any great extent, which would most certainly happen in the event of further large Government bond subscriptions. Most of these banks are now insured under the Govern ment deposit insurance system, and this demands a maximum deposit-capital ratio of ten to one. Latest reports indicate that all insured banks have approximate ly six billions capital funds and about forty-eight billions of deposits, which is already a ratio of eight to one, or close enough to the line to place a modest limit on further deposit growth. This discussion would hardly be complete without mention of another important item. While it has already been shown that increases or decreases in reserve re quirements control the amount of general credit expan(Continued on page 30) NORTH.. or SOUTH— TRAVEL THE COOL WAY go by rail! Vacation plans, or business, call you either North or South on Luzon.... air conditioned coaches of the Manila Railroad Company get you there in cool comfort. You dine on food cooked to Manila Hotel standards, while big oil-burning locomotives draw you swiftly, smoothly to your destina tion. You arrive refreshed, ready for fun or business. Or, if your travel budget is more modest, easy-riding 3rd class coaches give you travel comfort at low cost. Baguio-Ilocos Express, or Bicol Express— north or south—the cool way, the comfort able and safe way, to travel. RATES WELL WITHIN YOUR MEANS For full particulars Call City Office: Tel. 2-31-83 521-523 Dasmarinas Call Traffic Dept. Tel. 4-98-61 Information, Local 42 LEON M. LAZAGA Traffic Manager R. E. BERNABE, CANDIDO SORIANO, Chief Clerk City Agent MANILA RAILROAD COMPANY 943 Azcarraga, Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 HOW THINGS LOOK TO CLIFFORD A. GREENMAN Defeat of the administration’s reorgan ization bill gave the American Markets their first psychological impulse in many weeks as prices rallied sharply. Political developments little by little, are favoring the market. The foreign imbroglio has overshadowed recent trends at home, which, in the main, have been somewhat more hopeful. There are signs that a mild spring upturn in business is now getting under way, which may be extended for at last a few months. The favorable response to the amendments to the Federal Housing Act provides basis for the belief that residential construction this year will be markedly better than ex pected earlier. Average prices of primary raw materials have been fairly stable for almost two months, which is a favorable sign. No additional radical legislation is likely to be enacted and it is now reason ably certain that Congress will moderate considerably the capital gains and undistri buted profits taxes. Developments abroad have been so rapid in the past few weeks that an accurate in terpretation of their full significance is not yet possible. Needless to say, however, Germany's annexation of Austria and the truculent attitude of Poland indicate that the possibilities of a general European conflict have been decreased considerably. Many of the domestic factors responsible for the depression have been or are in the process of being corrected, and there is some basis for the hope that business activ ity has passed its low-point for some time to come. Nevertheless, with the stock market still faced with dismal first quarter and probably first half-year earnings state ments, additional dividend reductions and omissions, and a highly disturbing foreign situation, sound investment policy dictates continued conservatism. Until the situa tion abroad clarifies, no increase in aggre gate stock holdings is justified, and cash reserves should be kept intact. FOREIGN BONDS NOT ATTRACTIVE No one can yet say whether the present unsettlement in Europe will lead to a general war, and if so what countries will be affected. However, a highly cautious attitude toward all foreign bond issues is advisable. Sale of Central European obli gations are advised, and Balkan issues should be avoided. Moreover, it is felt that little is to be lost and added security gained by switching out of French and Belgian obligations. No new commitments should be made in Scandinavian issues, despite the probability that these countries will not be directly involved, nor in obligations of Canada or Australia, despite their high credit rating. Although there are signs of improve ment in the domestic business picture, the foreign situation will make it more difficult for recovery forces to get under way here. In spite of unprecedented low prices for many types of bonds, this is not the time for adding to holdings, particularly of me dium-grade and speculative obligations. A continued policy of shortening maturities of highgrade bonds as opportunity offers is advised. AUTO SALES LAG Although inventories of used cars were reduced moderately by the “National Used Car Exchange” campaign carried on dur ing March, trade sources report that the reduction has been considerably less than press reports have indicated. It is still estimated that first quarter new car output will approximate 675,000 units, which would be only about half of the com parable 1937 total. Most manufacturers will show losses for the quarter and the few who will operate profitably will not show large earnings. Somewhat better re sults are indicated for the seasonally more TAKE HOME WITH YOU THE PRIDE PHILIPPINE^ liHi\ A xX;: I I I.IO TABACALERA /N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE- JOURNAL April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 favorable second quarter, but the heavy inventories of both used and new cars on hand will tend to slow up factory sales. Thus, commitments in the automobile and parts shares should continue small. GEN ERAL MOTORS, among- the assemblers, and BORG-WARNER, in the parts divi sion, are considered to be in tho strongest position, but purchases of these shares need not be hastened. since January first; lowci* production likely in second quarter. DOUGLAS AIRCRAFT Capacity production assured well into 1939; experiment al costs to be lower this M1NN.-MOLINE mally accounts for 80% of sales; Housing Act will Timely Comments on Active U.S. Stocks ALLIS-CHAMBERS AM. LOCOMOTIVE another $1,500,000 or locomotive prospect AM. SMELTING AM. STEEL FDRIES. AM. WOOLEN pfd ANACONDA BALDWIN LOCO. BLAW-KNOX BORG-WARNER CERRO DE PASCO CHIC. PNEU. TOOL CHRYSLER CLIMAX MOLYB. COLUMBIA G. & E. CONTINENTAL ING •A” Tractor business well sus tained : small unit recently introduced proves sales AM. CYNAN1MID "B" Research expenditures amounted to $0.72 a share last year against $0.61 a share in 1936. Alco Products divisic der; First half earnings probably will be no better than the 1935 level of $1.51 per share. Rate increase may stimulate equipment purchases, parti cularly by roads in 77B. Stock has substantial asset protection : woolen industry probably nearing upturn. Armament psychology likely to sustain interest in this stock despite earnings out look. Rail equipment buying still negligible; Midvale Co. a bright spot in the picture. Immediate prospects unfav orable : response to business improvement should be Indications point to a first quarter loss, caused by the low level of auto produc tion. Output continues high, but profits have been lowered by the drop in world metal Goodwill written down $5,500,000 in 1937; funded and bank debt nearly eliniFavorable long-term out look. for company warrants retention of stock at pre sent levels. Sales holding at a high level; persistent foreign de mand offsets lower dom estic takings. Management proceeding with .plans for simplification, but early action is unlikely. HAKCONTINENTAL OIL Stability of bread prices favorable as to current earnings; sales off only moderately. Earnings in first quarter1 tentatively estimated at $0.70 compared with $0.77 in 1937. Continuation terly dividend stock affords yield. Backlog reduced sharply >f $0.50 quarprobable ; attractive CUTLER-HAMMER FOSTER WHEELER GEN. PRINTING INK GEN. REFRACTORIES GT. NORTHER pfd HOLLAND FURNACE INT’L HARVESTER INT’L NICKEL LIQUID CARBONIC MASONITE MINN.-HONEYWELL Bookings in first two months $4,800,000, an increase of $1,600,000 above 1937 level. MONT. WARD Agricultural implement sales fairly good at present, and profit margins arc favor able. February sales off 1.8% from last year, satisfactory Volume of to decline, newspaper sales continues magazine NATIONAL SUPPLY in view of general condlSome drop in first quartet* earnings indicated, but Drop in firet quarter profits has been fully discounted; suits will be better than stock should be held. .Rate increases to $4,500,000 annuully to venues, according to an ficial estimate. add NORTH AMERICAN NORTHERN PACIFIC Decline in electric output foreshadows moderate drop in first quarter profits. Cash on Jan. 21 amounted Net working capital at the to $9,148,000; funded debt due in six months $1,228.000. year end was equal to over $22.00 per common share. Maintenance of $0.62 V.quarterly dividend appears assured; stock reasonably First quarter earnings ex pected to be around $0.60 a share against $0.77 last year. Small deficit likely in the March quarter; subsequent period should be better. Immediate outlook poor, but building industry may be one of leaders of next upResidential construction norOLIVER FARM EQUIP. Bank debt of $6,600,000 due OTIS ELEVATOR PAC. WEST. OIL November, 1938. not likely to raise serious difficulties. Incoming business now chiefly confined to repairs, but company still has good backlog. Value of investment hold ings provides cushion against further market decline. PENNSLYVANIA R.R. Benefits of rate increases officially estimated at $1,100,000 monthly on present traffic. PHILLIPS PET. PURITY BAKERIES Weakening of gasoline prices an unfavorable sign ; lower earnings well discounted. Good first quarter showing likely; further drop in raw material prices beneficial. PROSPECTING IN THE SNOW During the long cold winters in Northern Canada it is impossible to continue ordinary prospecting methods, but geophysical survey work is unimpeded by the heavy snows. The numerous lakes offer no difficulties as they are frozen over. The efficiency of the instruments is uneffected, and the geophysical engineers work on skis and snow shoes. The mineralized zones may be located and outlined as though it were the balmy Philippines. Developments' geophysical engineers, geologists and tech nicians have made many surveys in Canada as well as in the States, Mexico, Alaska and the U. S. S. R. They have made over 50 geophysical surveys in the Philippines on all types of terrains, and many of these were on properties of producers. Write or phone for an appointment to discuss details and costs. Preliminary discussions will be treated confiden tially and with no obligations. DEVELOPMENTS, INC. Filipinas Bldg. P. 0. Box 3230 Tel.—2-17-46 Manila, P. I. 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 Seasonal Gain in Buying Keeps Metal Prices Steady Domestic prices hold firm during March despite bearishness on Wall Street. (By the United Press) NEW YORK, April 15.—With actual consumption of non-ferrous metals slowly expanding, domestic prices held mostly unchanged during the past month, accord ing to the magazine Metal and Mineral Markets. Business in major non-ferrous metals suffered dur ing the latter half of March because of the depressing influence on sentiment exerted by the sharp decline in securities in Wall Street. Prices were not depressed be low the previous month’s levels, however, because of the slight seasonal gain in consumption. “Actually,” the magazine reported, “buyers are cer tain that the movement of goods into consumption is slowly increasing, but the rate of improvement remains disappointing. The sudden change in the Treasury’s purchasing policy in reference to Mexican silver, and the lower prices named on foreign metal, were disturbing factors in those countries producing silver in quantity. The U. S. Treasury had been absorbing 5,000,000 ounces of Mexican silver monthly in the first three months of 1938. The 1937 earnings of most of the major non-ferrous metal producing companies showed substantial gain over 1936. International Nickel Company of Canada reported net 1937 profit of $50,299,623 as compared to $36,865,526 in 1936. Besides nickel, this company is a major producer of copper and platinum. Consolidated net income of the Phelps Dodge Corp, in 1937 was $12,740,772 as compared to $11,392,546 in 1936. The other large American copper producer, Kennecott Copper Corp., reported consolidated net income of $49,822,393 in 1937 as compared to $25,490,764 in 1936. There was a tendency toward improvement in the copper market during March and prices finished the month firm. Actual consumption of copper in the domes tic industry during February was about 37,000 tons, whereas domestic deliveries in February amounted to 27,389 tons. The higher actual disappearance of copper, contrasted with deliveries, indicates that consumers are eating into their stocks. 'The foreign copper market was fairly active until the end of the month when prices eased on the decline in securities and the calmer view of devel opments in Europe. Production of refined lead in the United States has been reduced from a monthly high of 49,197 tons last October to 34,869 tons in February. Statistics for Feb ruary were about as expected by the industry. Consumers having stored’ lead with producers have been steadily re leasing metal for shipment to their plants before the new freight rates become effective. Domestic lead prices held unchanged for the month while there was a slight gain at London as the result of some speculative buying result ing from the European tension. Buying of zinc continued on a modest scale during the past month with. most sales covering the common grades only. Galvanizing operations are moving upward slightly. World production of zinc during January to taled 156,992 short tons, against 161,106 tons in Decem ber, according to the American Bureau of Metal Statis tics. The tin market remained unsettled and prices eased off towards the end of the month after a brief flurry of activity. The International Tin Research Council rep orted that world tin consumption during January de clined to 13,800 long tons, a drop of nearly 3,400 tons from January, 1936. There was dissatisfaction in Ma laya over the new quotas established for the second quar ter of this year. Tin-plate mills in the United States are maintaining production at around 55 per cent of capa city, with the trend in activity slightly upward. The silver market was sharply depressed by the announcement from Washington that the Treasury De partment had again lowered its buying price one cent. AVERAGE METAL PRICES FOR MARCH, 1938 Gain or Loss from Feb. COPPER Electrolytic, Domestic refinery 9.775 Unchanged Electrolytic, Export, refinery 9.496 + 0.217 London, Standard Spot 39.772 + 0.334 London, Electrolytic, bid 42,582 - 0.918 LEAD New York 4.500 Unchanged St. Louis 4.350 Unchanged London, Spot 15.992 + 0.869 London, Forward 16.073 + 0.885 SILVER & STERLING EXCHANGE Silver, New York, per oz. 44.446 - 0.304 Silver, London pence per oz. 20.088 + 0.088 Sterling Exchange, “checks” 498.394 - 5.106 ZINC St. Louis 4.417 - 0.333 London, Spot 14.364 + 0.473 London, Forward 14.477 - 0.148 TIN New York, Straits 41.219 — 0.294 London, Standard Spot 183.473 + 0.527 OTHER METALS Gold, per oz., U.S. price $35,000 Unchanged Quicksilver, per flask 72.444 - 5.056 Antimony, domestic 13.750 Unchanged Platinum, refined, per oz. $36,000 Unchanged Cadmium 117.500 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 Unchanged (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.) April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 Culled from. . . (Continued from page 22) of days. A moisture content of 5% with out penalty is permitted, and, should the manganese be found at the point of desti nation to contain more than 5% moisture, a penalty rate is specified in the contract. This provision respecting moisture con tent will probably come up for careful in spection, should the case come to trial, since Amalgamated Minerals allege among other things, in their pleading that the ore furnished them was high in moisture con tent. The case may pose a problem in penalty clauses and their interpretation of equal interest to that recently raised in the old suit instituted in 1935 by the Big Wedge Mining Company against Fred M. Harden and others. JOURNAL readers will re member that the court in that case held that the individual defendants, claim own ers, had to content themselves with consi derable reduction in the amount of money to be paid them for their claims by the Big Wedge company, because of a clause stipulating for a fairly stiff penalty should the claim owners fail to secure patents to their claims within a specified time—some thing which they failed to do for all of the claims involved. At that time, attorneys for Harden, et al, did not see fit to raise the question of equitable reduction of the penalty imposed, and Judge Alex Reyes, upon petition of their present attorneys, has ordered rehearing of the case for the purpose of taking evidence helpful on this point. BATONG BUHAY RESERVES HIGH: About P2,000,000 of positive and probable ore has been blocked out on this property, not counting a large volume of possible ore. Ore reserves have increased rapidly, due to the fact that most of the underground re serves are concentrated on well-known and well established vein systems, showing high values in gold and silver, according to the Manila office of the company. A set of cross section samples of the vein systems has been sent to tthe United States, and one set turned over to a Ma nila concern for complete metallurgical tests, in order to determine the type of mill to be constructed, and plan the flow sheet. The mill, it is planned, will be of iOO tons initial capacity. KILOMETER 73: All officers and directors of this company were re-elected at the annual meeting held recently, in cluding George M. Ivory, re-elected pres ident. The company is in a strong cash position, and development work, which is proceeding without a let-up, indicates a good possibility that a mine may be devel oped. CONSOLIDATED MINES—Report for the first quarter erf 1938 on the Tumbaga mine show a steadily rising monthly pro duction figure, with total production for the quarter amounting to P135,062.27. More significant, however, is the form of the re port on production, which includes produc tion costs as well as gross production, and thus serves to indicate what the stock holder may expect in benefits therefrom. This report, coming out just before the Easter holidays, has so far failed to re ceive the attention to which we think it is entitled. Foi* it is the first report of its kind to be published in the Philippines, so far as we. know. It is quite possible that it will have far reaching effects on the whole mining industry of this country, as far as presentation of the facts concerning production are concerned. Included in Tumbaga’s production costs were smelter charges, which have also been deducted from gross figures. Smelter charges, we learn, are a considerable item and can play a very important part in final results. Such charges include: 5% of the gold 1 oz. (minimum) of silver per ton 20 lbs. of copper per ton 2-l‘> cents (U.S.) deducted from the price of each pound of copper Plus a basic smelter charge of P 50 per ton. This basic charge depends on the copper content of the concentrates; more copper, higher charge. In Tumbaga’s case, production costs totaled P75,440.29 for the quarter, leaving an operating profit of P59,621.98. TIMELY COMMENTS (Continued from page 27) SOUTHERN PACIFIC Road in fair financial con dition ; losses incident to re cent floods probably not SUTHERLAND PAPER Profits for the first quarter SYMINGTON-GOULD TECHNICOLOR 20TH CENT.-FOX UNITED AIRCRAFT U. S. STEEL WALWORTH expected to be $0.50 a share againBt $0.75 a year ago. Developments in merger sit uation indicate that a new plan may be drafted soon. Despite drop in theater at tendance, indications point to a further earnings gain in 1938. Gross earnings so far this year have held within strik ing distance of the 1937 Volume well sustained; Pratt & Whitney division reports new order of $1,173.000. Stockholders to vote on pro posed issuance of convertible bonds; approval favored. Outlook remains uninspir ing revival of building construction would change picture. WESTINGHOUSE EL. First quarter profits esti mated at $1.00 a share compared with $2.01 a year YOUNGSTOWN S. & T.Year-end balance sheet re veals $20,000,000 reduction in funded debt during 1937. STONE & WEBSTER Field for management ser vices will be broadened through utility realignments. MARCH 1938 GOLD PRODUCTION F March 1938 March 1937 MINE Tons Milled Value Tons Milled Value Ambassador .......... 725 P 10,375.00 __ _____ Antamok ................ 23,670 417,280.14 23,272 P 500,223.75 Baguio Gold .......... 9,220 143,501.48 5,370 89,284.46 Balatoc ..............'.. 37,848 1,109,944.44 37,721 1,055,538.24 Bengeut Cons......... 32,372 947,435.36 24,867 822,483.00 Benguet Expl......... 2,650 19,338.44 3,477 24,530.00 Big Wedge............ 3,939 139,692.90 2,702 37,302.54 Cal Horr................ 5,728 105,953.90 5,680 105,306.78 Coco Grove............ 366,000 cu yds. 245,800.00 — — Demonstration .... 9,500 160,150.00 7,210 154,516.44 East Mindanao .... 2,630 36,673.72 3,383 66,000.00 Gold Creek............ 1,332 24,697.00 647 13,475.65 Ipo Gold ................ 5,302 52,713.26 5,350 54,854.85 Itogon .................... 32,296 347,821.97 18,880 269,610.37 IXL Mining .... 11,016 264,113.04 7,231 167,559.68 Mindanao Mother L. 4,065 120,499.90 — -------- , Masbate Cons......... 75,282 330,999.56 40,004 251,422.39 North Mindanao ... 173 oz. 12,110.00 98.11 oz 6,868.05 Royal Paracale .... 2,898.82 27,628.97 — — San Mauricio ........ 8,625 230,306.59 4,263 175,777.06 Surigao Con............ 3,837 66,747.00* — — Suyoc Cons............. 6,368 123,859.28 6,732 136,145.86 Tambis Gold.......... — 21,861.35 Twin Rivers.......... 39,266 43,499.85 — — United Paracale ... 9,735 209,099.30 9,158 93,644.57 Total ................... P,190,241.10 P4,089,589.52= Lepanto Consolid ated Mining Co. . 7,092 Hongkong Mines .. 3,901 Mineral Resources . 2,086 Base Metal 54,080.00 42,325.00 JA002.31 (*) Includes IXL Argos P31.635, Northern Mining P71.80 and Salacoti Mining P21,477.00. (x) Includes production from Feb. 15, 1938 to the end of Fe. 1938. (F) Figures furnished by the Chamber of Mines of the Philippines. 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 Observation . . . (Continued from page 25) sion, as distinct from Government credit expansion, the building up of excess reserves is only half the story. It amounts to leading the business horse to water—the ques tion of making it drink is something else again. Since 1933 that animal has refused to imbibe in any quantity. Time and again the cry has arisen from Washington that business was not bearing its share of the recovery burden. The answer has always been that regulation, reform, ex cessive taxation, and generally vacillating policies have made it imperative to stay close to shore. That answer stands the test of sound economic thinking, and it can hardly be said that this most recent move has done any thing to change the attitude. On the contrary, it seems more likely that it will be intensified, so that an increase in excess reserves of almost any amount will more than probably prove so much waste motion. Altogether this writei' believes that the situation can be summed up in a few words: The price structure may be temporarily bolstered by fresh spending, but the fun damentals are so far unchanged. Neither the New Deal nor any other agency has devised a means of circumvent ing natural laws, and until fear of the Administration’s basic aims is removed no lasting change for the better may be anticipated. SOLE AGENTS THE MANILA WINE MERCHANTS, INC. THE LARGEST WHOLESALE AND RETAIL LIQUOR DEALERS IN T1IE PHILIPPINES Head Office: 174 Juan Luna Branch Office: 37-39 Alhambra Tel. : 2-17-61 ADVERTISING DOES FOUR THINGS IF YOU MANAGE A RETAIL STORE, THERE ARE FOUR THINGS YOU WISH TO DO... 1. You wish to HOLD your present customers. 2. You wish to SELL more goods to your present customers. 3. You wish to REPLACE with new customers the ones who have moved away. 4. You wish to INCREASE the NUMBER of your customers. Not one of these objectives can be reached by doing nothing. None of these objectives can be wholly realized without advertising in the— MANILA DAILY BULLETIN The backbone of Philippine Advertising. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Canadian Pacific Gross DisplaceTonnage ment Tonnage EMPRESS EMPRESS OF OF JAPAN .................. CANADA ................ ................ 26,000 ................ 21,500 39,000 32,250 EMPRESS OF RUSSIA 16,800 25,200 EMPRESS OF ASIA 16,900 25,350 Maintaining a fortnightly «ervice from the Philippine* to the Pacific Coait. When nece**ary, connection can be made at Honolulu direct to San Francisco or Loa Angelo*. At Victoria connection can be made for Seattle and point* in the U. S. A. At Vancouver the Emprene* dock at the new C. P. R. Pier which adjoin* the Canadian Pacific Railway Station. Ask us about the neu' loir first elans, intermediate class and coach class fares to points in Canada, and the U.S.A. Canadian Pacific Telephone* 2-36-56 and 2-36-57 Cable Addre.* "GACANPAC” 14 David, Manila Time Will Tell! The test of years proves that it is economy to invest in paint that endures— Sherwin-Williams No need to experiment: Use Sherwin-Williams paint because it has the quality, the durability, which gives a bright, protective coating to defy tropical climatic conditions long after the first cost is forgotten. All You Need to Know About Paint is Sherwin-Williams JKjsi ) Send for a copy of the S-W Home Decorator. Enclose 8-centavos in stamps Pacific Commercial Company—Distributor April. 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 COPRA AND ITS PRODUCTS by KENNETH B. DAY AND LEO SCHNURMACHER Statistics for the month follow: Shipments— Metric Tons March was a rather surprising month in that copra and coconut oil, instead of maintaining a steady position, which would normally be expected at this time of year, continued to drop. Furthermore, an unexpectedly large amount of copra was available. Ordinarily, it would have been possible to have sold oil and copra freely in the American markets, but with the recession in the United States, and the rest of the world in a most uncertain poli tical and economic condition, buyers have been operating from hand to mouth and even though copra and oil were undeniably cheap, both were a drug in the market at the end of March. L. SCHNURMACHER Pacific Coast........................... 1,518 Atlantic Coast......................... 13,345 Gulf Ports............................... 1,340 China and Japan..................... 102 Othei- Countries....................... 891 Total ............................. 17,196 Stocks on hand— Beginning of Month Tons Manila and Cebu .......... 16,874 End of Month Tons 11,371 COPRA—Copra arrivals in Manila in March were nearly 7% above those of February, which in turn were above those of January. These heavy arrivals, very largely unexpected by the trade, represented not only a very fair production but the liquidation at heavy sacrifice of outstanding provincial stocks. A falling market always draws copra, and March was no exception. At the beginning of the month, the posi tion was none too secure with Manila buy ers quoting P7.25 for resecada and sellers holding for P7.50. The market gradually sagged during the first half to about the middle, at which stage buyers were pay ing P7.00 and possibly a small amount of business was done at P7.25. Shortly after wards, the market started receding again at accelerated speed, and at the end of the month buyers were quoting P5.75 with sel lers willing to do a small amount of bus iness at P6.00. Thus, copra prices took a drop of approximately 20% during March and reached a point at which we are sure true production costs must have exceeded market prices. The American market for copra opened with sales at 2.20c1, but declined through out the month until at the end of March the best offer available was l.SO^ with sales made as low as 1.87-l/2(?. A very considerable amount of copra was sold during the month, mostly at prices rang ing between 2.20c1 and 2c* with buyers backing away in view of heavy offerings. The European market declined more slow ly than the American market. Starting the month at £11/17/6 for sundried, the market declined to £11/0/0, which price as a matter of fact was somewhat better than the Coast equivalent at the end of the month, and resulted in a certain am ount of business being done to Europe. The whole outlook for copra and coco nut oil was largely modified by increas ing stocks of competing oils and fats in the United States, coupled with a prospec tive heavy lard production for the year and a very good whale oil catch, which must be disposed of within the next month or two. The heavy cottonseed oil crop of 1937 was disposed of more quickly than anticipated, but at the expense of other oils less favored for immediate consump tion, which consequently continued to press on the market throughout the month. Copra shipments for the month were re latively heavy, being about equivalent to those of February and totalling 22,500 tons, of which nearly 19,000 tons were shipped to the United States mostly to the West Coast. At the end of the month stocks on hand of copra were nearly double those of a year ago with every expectation that co pra arrivals would continue very good, at least until the Easter Holidays. Statistics for the month follow: Arrivals—Manila, 461,052 Sacks Cebu,- 389,072 Shipments— Metric Tons Pacific Coast............................. 13,983 Atlantic Coast......................... 1,524 Gulf Ports............................... 3,607 Europe ..................................... 3,048 China and Japan..................... 11 Other Countries..................... 387 Total ............................. 22,560 Stocks on hand— Beginning End of of Month Month Tons Tons Manila ... .... 31,794 40,569 Cebu .... .... 38,338 38,304 Shipments— Metric Tons COCONUT OIL— At the beginning of March, the markets were very quiet with buyers not bidding and sellers offering oil in New York at 3-3/4 cents c.i.f. and on the Pacific Coast at 3-1/2 cents f.o.b. The New York market was easy throughout March, gradually fading away until at the end of the month sellers were offering at 3-1/4 cents without success with buyers showing only a slight interest at 3 cents c.i.f. New York. On the Pacific Coast there was a little more activity, but at constantly dropping prices. Some business was done for scattered positions at 3-3/8 cents f.o.b. and a little later at 3-1/4 cents and 3-1/8 cents. At the end of March sellers were offering at 3 cents with buy ers showing a small amount of interest at 2-7/8 cents. Most of the business from the Pacific Coast was for the edible trade. A fair volume of oil was sold in March, but at no time were there as many buyers as there were sellers, and buyers were dropping out of the market entirely every few days, thus disconcerting the general situation. Oil stocks in the Philippines at the end of March were approximately the same as they were exactly a year pre viously. COPRA CAKE AND MEAL — The month opened with the possibility of sell ing copra cake for shipment during the second quarter at a figure as high as $31.00 per ton c.i.f. Copenhagen. By the middle of the month this price had dropped to $30.50, which proved to be the stand ard price for the balance of the month. Local buyers were quoting from P36.00 to P38.50 f.o.b. steamer for positions from May to August, with the understanding that should the proposed freight increase, postponed from April to July, go into ef fect July 1st, this would have to be for account of sellers. In view of the unset tled conditions in Europe it was rather surprising that there was as much buying interest for copra cake as actually devel oped. In the United States the copra meal market was very dead with a few sales recorded at from $24.00 to $25.00 c.i.f. Pa cific Coast, all for spring shipment. With the great assortment of competing feed stuffs available in the States, the demand for copra meal was practically negligible and it was only occasionally that sellers could get a bid from the Coast, even for limited quantities. On an f.o.b. basis, the American meal market worked out slightly more favorable to sellers than the Eu ropean' cake market. Statistics for the month follow: Pacific Coast........................... 2,495 Europe .................................... 8,180 China and Japan..................... 51 Total ........................... 10,726 Stocks on hand— Beginning of Month Tons Manila and Cebu .......... 6,448 End of Month Tons 3,736 DESICCATED COCONUT—'The market for desiccated remained quiet with quota tions tending to sag. Inventories remain ed fairly heavy in the United States and sales slow. Local factories were working not over half of capacity. The outlook re mains rather discouraging foi* any decided improvement in the near future. Ship ments of desiccated from the Philippines totalled 2267 tons in March, being a slight increase over February. GENERAL—At the end of the month all markets were very disspirited. The general upswing in business, anticipated for the second quarter, has been apparent ly delayed and now most business men do not look for better, conditions until the (Please turn to page 39) 32 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 REAL ESTATE By P. D. Carman BOULEVARD HEIGHTS January and Feb ruary sales this year were disappointing but the March total was the highest for that month since 1931 ex cepting 1937 and 1935 which was only slightly in excess of this year’s March figure. Sules City of Manila 1938 February March Sta. Cruz . . . P243.042 P 430,205 Sampaloc .... 88,473 93,147 Tondo ................. 75,178 91,382 Binondo .... 111,000 376,500 San Nicolas . . . 41,684 25,800 Ermita............... 42,600 104,660 Malate............... 58,101 102,054 Paco................... 106,577 58,384 Sta. Ana .... 19,131 54,667 Quiapo............... 44,096 41,634 San Miguel . . . 23,128 49,764 Intramuros . . . 6,667 11,607 Sta. Mesa .... 11,000 — San Juan .... 2,500 — P873.177 Pl,439,804 With the exception of last year, which broke all records, the first quarter of 1938 compares favorably with the corresponding periods of recent years: 1934 P3,223,239 1935 3,769,487 1936 3,608,043 1937 5,143,955 1938 3,046,043 LA URBANA BUILDING AND LOAN ASSOCIATION LOANS for the construction of buildings, and mortgages at moderate rates INVESTMENTS in shares of stock giving 6% dividends annually. We also issue savings shares from one peso-up monthly PATERNO BLDG. SANTA CRUZ, MANILA MONTHLY REVIEW OF THE NEW YORK SUGAR MARKET By S. E. Levy & Co. Members New York Coffee & Sugar Exchange, Inc. The month under review has been a disappointing one for the sugar trade. The firm, tone in evidence at the end of February was not maintained. The first days of the month saw futures steady and raws at 3.15 for prompt delivery and later arrivals' at 3.18. On March 2: influenced by Secretary Wallace’s letter to Senator Bulkley of Ohio, to the effect that sugar prices were already sufficiently high if not too high, No. 3 futures opened the week easier, 4 to 6 points decline on initial trading. The market for the balance of the week pur sued a downward course under the in fluence of this statement. Scale-down short covering and some new buying for new account absorbed producer hedging, short selling and liquidation. New season’s lows were established in all positions. Closed 8 to 9 points lower. Total sales on the Exchange for the week were 53,400 tons. The weakness in the futures market was also seen in the raw market where prices declined to the 3.05 basis; the lowest since March 1935. Sales for later delivery were made at prices between 3.10 and 3.05. The second week of the month was quite active with the futures market ir regular and business done in the raw mar ket, between 3.05 and 3.10. There was some buying interest possibly because of reports of further labor trouble developing in Porto Rico. There was also consider able talk of a possible revision of the 1938 quotas, which helped the market in spots. Rumors to the effect that the Administra tion would possibly change it’s attitude towards sugar were not confirmed and a further decline set in, which carried prices to new lows. Raws eased off to 3.01 on March 16. P. 0. BOX 138 TEL. 2-18-55 Another period of steadiness followed as refiners showed an interest in the market and sellers appeared reluctant. The mar ket for both futures and actuals turned uncertain and hesitant and again declined under pressure of nearby arrivals which were sold on March 23, at 3.00. Further parcels were reported available at 2.99 with possible buyers at 2.98. From then on until the end of the month, the market was hesitant and most days showed comparatively small business actually booked. Refiners announced a reduction to 4.60 and it was thought that this might result in a refined move causing buying interest in actuals. This hope was short lived and an easier tone was in evi dence on the last two days of March. Raws hovered around 3.00 for early ar rivals, with slightly higher prices obtain able for later deliveries. A press dispatch from the Journal of Commerce in New York, stated that refined sugar at the present average price was considerably below the Administration’s frequently stated objective. The Journal reported indications that the A.A.A. would try to promote recovery in sugar prices. However, A. A. A. officials again denied trade rumors of an early reduction in sugar quotas with a view to boosting sugar prices. They said that no changes were contemplated at present. Raw Sugar Futures', No. 3 Contract, Sept. Delivery Last sale, February 28 . . 2.27 High sale during March 2.28 Low ” ” ” 2.14 Closing bid, March 31 ... 2.1# Net change Down . ................09 TOBACCO REVIEW By P. A. MeYer RAW LEAF: In view of the large shipments to Spain and Japan, exports during March were hea vier than in any month during the last two years. Comparative fig. ures of shipments abroad are as follows: Raivleaf, Stripped Tobacco and Scraps Kilos Belgium ....................... 30,843 China ........................... 6,442 Germany ..................... 732 Holland ....................... 247,329 Hongkong ..................... 28,970 Japan ........................... 1,043,265 Java ............................. 1,770 Korea ........................... 90.775 North Africa .............. 155,294 Spain ............................. 1,680,840 Straits Settlements ... 1,298 United Stotes .............. 259,880 3,547,438 199,284 1,019,931 United States Cigars 13,438,781 20,633,884 14.793,718 CIGARS: March 1938 February 1938 March 1937 Shipments to th compare as follows: March 1938 February 1938 March 1937 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 33 RICE REVIEW FOR MARCH, 1938 By Dr. V. Buencamino Manager, National Rice & Corn Corporation dined sharply. We The up-trend reported in our February review gained further momentum i n March. IVhile no spectacular ad vance was1 regis tered, observers considered it as being note worthy in that the prices of other major ex port crops de share the opinion often expressed in well informed circles that the market may see higher prices in the coming months. Volume had a ten dency to increase on the up-trend, a sign of a healthy market position. The first half of the month was quiet and featureless. It was generally inter preted as a reaction to the important ad vance registered in the previous month. The .second half, however, witnessed re newed interest and more speculative acti vities. Milling went on at top speed in certain places to meet the heavy seasonal demands from the consuming market. Manifested arrivals during March show ed a decline of some 27,000 sacks below the February figure. We believe, how ever, that in view of the difficulty expe rienced by millers in obtaining freight cars, a comparatively heavy volume of cargo was carried on by motor vehicles. It is noteworthy, however, that the total arrivals during the first quarter of 1938 exceeded the 1937 figures as may be glean ed from the following table: RICE ARRIVALS BY RAILROAD 1937 1938 January. . . 184,758 Cavs. 194,586 Cavs. February. . 171,115 ” 191,100* ” March. . . . 186,530 ” 163,759 * ” Total . . . 542,403 Cavs. 549,445 Cavs. * (30 days only) The above table shows that in the face of a greatly reduced harvest receipts at Ma nila were heavier than last year when the crop was abundant. The National Rice & Corn Corporation which holds practically the only supply of the old crop continues to sell at a premieum at about 30d per sack over the new crop of Macan sold by the trade. How ever, in view of the probable shortage which may develop later in the year, no efforts is being made to speed up the sales. Opening,, high, low and last quotations are given below: Macan No. 2 Opening High (new crop) per P5.80-5.90 P5.90-6.00 Low Last sack of 56 kls. P5.75-5.85 P5.90-6.00 PALAY Owing to persistent rumours of a pro bable rice shortage this year, palay holders showed no anxiety to part with their stock. Prices ruled very firm at P2.80—P2.85 per sack of 44 kilos, for ordinary varieties. Elon-elon sold as high as P3.20 in Nueva Ecija and P3.30—P3.40 in Bulacan. BY-PRODUCTS There was a strong demand for tiki-tiki and other by-products for poultry feed. No. 1 tiki-tiki advanced as high as Pl.90 compared with Pl.65 at the beginning of the month. FOREIGN MARKETS Siam and Indo-China reported favorable developments in view of heavy demand from Hongkong and Singapore. Always a Jump Ahead at MANDALOYON ESTATE Where the Convenience of a Modern CityMeets the Freedom and Charm of Country Surroundings, and Produces a Perfect Residential Setting for Discriminating People. Tune in our regular Tuesday Night Program over Station KZRM from 9:00 to 9:30 Lots Sold as Low as from P0.60 to P2.00 per Square Meter | ORTIGAS, MADRIGAL Y CIA. S. EN C. FILIPINAS BUILDING MANILA TELEPHONE 2-17-62 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 The Story of Old Dr. Madara Administering the early Philippine gov ernment made Americans sweat; especially Civil Governor Wm. H. Taft, who was cor pulent. They thought of Baguio, 36 kilo meters from Pozorrubio up the gorge of the Bued river, and Captain Charles W. Meade, 36 Infantry, U. S. V., said a wa gon road to Baguio could be built for $75,000. He was detailed to build it Dec ember 21, 1900. Other men followed, other money too—much other money — and the road was finally put through by Major L. W. V. Kennon in whose memory General Leonard Wood had the road named when Wood was governor general of the Islands. The surgeon who worked with Kennon on the road died at his home on calle Herran in Manila a few days ago. This man was Dr. J. W. Madara, the most interesting side of whose character was his classical misanthropy, richly spiced with agnosticism. Born a Kentuc kian, near Lexington, Dr. Madara’s male volence was lustily visited upon the Demo crats. When Woodrow Wilson Was elected President in 1912, Dr. Madara accounted it a national calamity. He swooned with wrath when Wilson led the United States into the World War, and spent the last twenty years of his life loafing downtown at or near the Plaza Lunch snarling I-toldyou-so’s; he would arm himself with the day’s news, then lay for victims. Dr. Madara looked the part he played so well. He was tall, thin, lanky. His gangling legs crossed knot-fashion. His features habitually unshaven, dour and ca vernous, brooding under heavy shaggy brows. His nose was knobby, large yet not strongly arched. His throat was dew lapped, and a pendulous lower lip, thin and quivering, gave his asocialism weird and terrifying sincerity. Customarily he sat slouched in his chair, hairy eyes halfINSURANCE 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 INNSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA General Agents E. E. IIAII. INC. Telephone 2-24-28 — MANILA — Kneedler Building Another picturesque char acter leaves the Philip pine stage. closed and distant in thought, only rous ing, his eyes now gleaming derringers, for . his diathetic attacks. In a word, his ap pearance and posture were those of a practioner of the black art. Since he lived alone and knew the arts of chemistry and physics, you quite imagined him gloating at witching midnight hours over noxious brews and deadly concoctions with which to poison Democrats. He never met us, and he met us often, without dubbing us Democrat and drub bing us for such pusillanimity. A most picturesque patriarch of the em pire days leaves Manila with the passing of Dr. Madara—only he was anything but patriarchal. Dr. Madara believed he knew his Europe. That the war debts would never be paid was an early surmise of his. They would, he said, never be paid except with taxes wrung from thrifty Republicans by Demo crats; he never believed any Democrat had income enough to be taxable, or if he did, would so report. His opinion of the Philippines was low, of course: he took pride in holding low opinions of everything and everybody. Misanthropy was ingrain ed in him, not a pose. He could afford complete independence, since the home he had acquired and the competence he had saved were sufficient for his meager needs. The Plaza Lunch took charge of the fun eral arrangements, something characteris tic of this friendly little restaurant, where Dr. Madara kept a small deposit. No one knows just how Dr. Madara died, a servant just came to work at the usual hour in the morning and found him dead in bed. Age had taken him. Dr. Madara had migrated to Philadel phia from Kentucky, for his medical edu cation, and had been graduated in medi cine (and Republicanism!) by Rush, or FIRE MARINE ACCIDENT PLATE GLASS possibly Jefferson, in ’77, after which for a time he had lived at Harper, Kansas, and married a girl from Tribune, Kansas. There are believed to have been three children from the marriage. A daughter, Mrs. Helen Dyer, lives at No. 11 Russell St., Buffalo, New York. A son, John E., is a sculptor whose recent address was Roaring Springs, Pennsylvania. An elder brother, now 91 years old, lives on North Main, Wichita, Kansas. Dr. Madara came to the Islands in 1899 as a contract sur geon with the Army, and we believe had never returned to the United States. Thus Kansas was concerned in the cast ing of this modern Vulcan of truly classi cal mold; and we write as a casual friend of Dr. Madara’s who admired sincerely his adamancy toward fate and all its composi tions—the adamancy of it, not necessarily the attitude itself. As a surgeon with troops Dr. Madara served in Samar, also at Jolo when a bevy of Nipponese charm ers went there, by arrangement, to cheer the garrison, and when quite a hubbub ensued. Later he was with Kennon, as al ready noted. Still later, in the health ser vice, he did autopsies at the morgue, where his craftmanship was dependable but un orthodox: as good a place as any, for a scalpel not in use at the moment, was in the subject next at hand; or sometimes, grasped between the teeth like a pirate’s dagger—with a rinse with alcohol at any time later on. Such was this sinister man, beetling to all, harmless to all, a very hu man story, perhaps, such as a Democrat for father-in-law, behind his consistent acerbity. DEATH OF GEORGE SEAVER A friend has handed us a clipping from a San Francisco newspaper, dated March 9, 1938, which notes the death in that city and on that date of Col. George Seaver, oldtimer who is best remembered in the Philippines as Chief of Manila’s police. The newspaper clipping is as follows: Col. George Seaver, special investigator for the alcohol tax unit of the U. S. Inter nal Revenue Service and former deputy prohibition administrator for California and Nevada, died today from a heart ail ment of long standing at the Veterans’ Administration Hospital at Ft. Miley, San Francisco. Colonel Seaver was a member of Com pany L of the First Cavalry, Col. Theo dore Roosevelt’s “Rough Riders,” and saw service during the Spanish-American War. Later he served for 25 years in the Phil ippine police, and was chief of the Manila police department for 12 years. In 1925 he entered the service of the Treasury Department and served as chief deputy administrator and enforcement of ficer until 1933. During the dry era, he conducted raids of importance, including many in Oakland and a raid at Cai-Neva, famous State-line resort. Following repeal, Colonel Seaver joined the alcohol tax unit as a special investi gator in the San Francisco and Sacra mento areas. His home for the past several years has been at Fair Oaks, but his residence was in Oakland for seve ral years. Colonel Seaver served in the World War as a colonel and held that rank in the Army Reserve Corps. He is survived by a widow, Mrs. Irene Seaver, and three children. Funeral ser vices, in charge of Halstead & Co., San Francisco, have not yet been arranged. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE' JOURNAL April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 FOREIGN EXCHANGE By Leon Ancheta, Manager, Foreign Dept., P.N.B. The tone of the dollar continued generally strong but several factors worked to prevent a sudden rise to the high level at which it reached during the previous month. The pur chase from the Philippine Treas ury last month by local banks of do llar exchange help ed to a certain ex tent in replenishing their supply. Most important, however, were maturing dollar bills which represented proceeds of initial shipments of the 1937-1938 sugar quota and certain inflow of; outside funds to meet financing commitments. These two factors held the rate for a time at 5/8r/< pr. on T.T. New York at which it closed during the previous month. Noting a certain easiness of the dollar, buyers withheld buying except for urgent coverage and the rate momentarily moved down to 1/2</< pr. T.T. on New York. At this rate buyers reappeared with heavy de mand and the dollar suddenly regained strength moving to %% pr. toward the close. Despite the rise in the rate, de mand was unabated and the market closed strong at this level. It is noteworthy that despite greater shipments of sugar effected which totalled 397,346 tons up to March 15, 1938 com pared with 309,493 tons for the same pe riod last year, the peso has not received sufficient support. Two important factors influenced the sustained strength of the dollar, namely increased circulation and stagnation of exports due to poor demand and low prices. Last year circulation averaged P169,000,000 compared with Pl 93,000,000 during the fortnight ending March 12, 1938. Sixty days dollar bills on New York ruled between 199.50 and 199.75. In the foreign exchange market, the dollar also strengthened in the face of re newed increased tension in European re lations. The sterling opening at 501-13/16 dropped sharply to 499 at the close of the second week of the month, the immediate cause being Germany’s absorption of Aus tria which developed fears that Germany’s move may cause a major European con flagration. The fate of Czechoslovakia following that of Austria also brought ad ded apprehension and was reflected in further weakening of the sterling and other European currencies in terms of the dollar. After reaching a low of 494-15/16, the sterling partially recovered and closed at 496-5/16. Extreme nervousness bordering on near panic characterized the behaviour of the French Franc and reflected the turbulence of the French domestic situation due to continued labor and political troubles as well as the high tension in the European situation. Opening at 326-3/8, it reached a new low of 302-7/16. Toward the end a slight improvement was noted, closing at 305-1/4. For the first time since the beginning of the Sino-Japanese conflict ten months ago, the yen was the object of serious con cern. Opening at 28.9375 in the Kobe market, this exchange moved sharply downward to 28.4375 at the close of the third week. Noting a possible break, private banks in Japan concluded an agree ment to fix daily the yen—dollar rate based on the New York—London cross rate around the sterling-yen rate of 14 pence. Thereafter the yen fluctuated within the narrow range between 28-7/8 and 29, closing at 28-15/16. Shanghai dollar' was fairly steady dur ing the first week, the rate fluctuating between 29-11/16 and 29-23/32. During the second week, however, a certain ner vousness was felt due to the impending Hongkong & Shanghai Banking Corporation Authorized Capital ........................................... $50,000,000 Issued and fully paid ....................................... $20,000,000 Reserve Funds: Sterling ....................................................... £ 6,500,000 Silver........................................................... $10,000,000 Reserve Liability of Proprietors .................... $20,000,000 BOARD OF DIRECTORS AND HEAD OFFICE IN HONGKONG Sir VANDELEUR M. GRAYBURN, Chief Manager LONDON OFFICE—9 Gracechurch Street, E. C. 3. MANILA AGENCY ESTABLISHED 1873—Agency in Iloilo Agents at Cebu: Messrs. Ker & Co. The bank buys and sells and receives for collection Bills of Exchange, issues drafts on its branches and correspondents in the United States, Canada, Great Britain, Continent of Europe, Australia and Africa and transacts banking busi ness of every description. Current accounts opened in Philippine currency. Fixed deposits received in Philippine Currency, British or U. S. Currency at rates which may be had on application. C. I. Cookes, Manager. operation at Peiping of the Japanese-spon sored Federal Reserve Bank of China. The rate weakened and dropped to 29-1/2 at the close of the second week. The begin ning of the third week saw the issuance of Chinese government’s mandates for the control of foreign exchange, the principal object being to prevent the Federal Re serve Bank of China at Peiping from ab sorbing Chinese foreign exchange funds. The restrictions immediately brought about a general weakening in the rates. As the second fortnight of the month advanced further adverse developments took place. The Mexican government expropriated foreign oil properties located in that coun try. The action greatly affected American interests and the latter countered by re ducing the price of silver and abrogating the agreement for America’s purchases of Mexican silver. Confusion in the silver market immediately ensued and on March 27th. silver trading in the London mar ket was suspended. Shanghai dollar tum bled down to a low of 23-9/16, closing at 25-11/16. Hongkong dollars also dropped in sym pathy with the sterling. The break in the silver market, however, had not brought a corresponding fall in this exchange due to heavy Chinese demand brought about by the paralyzed condition of the Shanghai exchange. Opening at 31.45, it reached a low of 30.4375 toward the end of the month, closing at 30.625. FOREIGN EXCHANGE REVIEW COUNTER BATES U.S. Dollars Sterling Francs Yen Shanghai Hongkong High Low High Low High Low High Low High Low High Low March 1937 ............................................ 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 March 1938 ............................................ 201.50—201.50 1/11-9/16—1/11-15/16 6.85—6.40 59. —58. 60.30—54. 63.60—62.30 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1936 Lumber Review By Florencio Tamesis Director Bureau of Forestry STATEMENT SHOWING TIMBER AND LUMBER EXPORTS FOR THE MONTH OF JANUARY, 1938 Despite the unsettled condition in Europe and the Sino-Japanese conflict in the Orient, lumber and timber exports in January showed much greater improvement either in volume or in range of distribution than in any month of the last quarter of 1937. A total of 19,174,796 board feet of lumber and timber was exported during the month under review as compared with 12,114,104 board feet in the previous month, or an in crease of 58.3%. Compared with the cor responding month of 1937, lumber and tim ber exports during the month registered a decrease of 19.4%. Shipments to Japan, consisting entirely of round logs, totalled 9,533,216 board feet as compared with 8,298,104 board feet in the previous month, or an increase of 14.6%. The activity of the Chinese market which was completely paralized during the previous month re turned to normal during the month. Ship ments to Japanese China, consisting entirely of round logs, amounted to 2,122,544 board feet. Prospects for increased shipments to this market are good as soon as reconstruc tion begins. Local exporters are anticipat ing increased demand in the near future and are making plans accordingly. Shipments to the United States in Jan uary amounted to 4,148,416 board feet as compared with 2,759,392 board feet in De cember, or an increase of 50.3%. The Fed eral backing of the house building program and the reduction of lumber inventories are signs favorable for the marketing of Phil ippine mahogany in this country. Lumber and timber exports to Australia in January totalled 757,264 board feet, of which 131,864 board feet consisted of round logs, as compared with 91,160 board feet in the previous month, or an increase of 730.7%. . . Demands in Great Britain during Janua ry were active. Shipments to this market totalled 1,244,864 board feet as compared with 429,088 board feet in the previous month, or an increase of 190.1%. Ship ments to British Africa amounted to 951,032 board feet as compared with 8,480 board feet in the previous month, or an increase of 942,552 board feet. Likewise, lumber exports to Portuguese Africa registered an increase of 101,760 board feet as compared with the previous month. The local market remained active. Mill production exceeded mill deliveries by 3.7%. Further improvement in the local market is expected in the next few months as the building season approaches. The following statements show the lum ber and timber exports, by countries, and the mill production and lumber inventories for the month of January, 1938, as com pared with the corresponding month of 1937. ALHAMBRA CIGARS continue to be the recognized leaders in QUALITY cigars CORONAS kla Manila’s Pleasing Newspapermen (Continued from page 11) build-up, as remarkable as in a play, with the anschluss a brief third act and the final curtain down—pegged there by a thorough censorship allowing only propaganda to drip through, save as press ingenuity could evade the rules. Inside stuff, from that, is still to come. Hardly less satisfactory as good workmanship is the reporting of the Sino-Japanese war. But there the truth is less clear-cut; in a field of ambiguities,.the newspapers and news services do all that is humanly possible to piece together a pattern of accuracy—and broadly speaking it is possible to follow the ebb and flow of the indecisive April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 37 campaigns. So it is with Spain, where along a front of 800 miles minor gains and losses string along weeks on end before decive movements round out a problem. In these periods the news services have had to take criticism from both sides, each feeling that specific dispatches were biased—a standard proof that a good job is being done. To sum up, we know of no time in the past when there was such a grist of great news to report from both hemispheres. Certainly there has been no time when the Why worry along with an ICE BOX?’ Ray P. Cronin, an “AP" Bureau Chief during the past ten years, puts in an 18-hour day funneling news to Manila and dishing local news out to the world at large. news was reported so extensively and so well, and so judiciously edited for publication. Newspaper publishers in Manila put into this foreign-news service the utmost their incomes permit of. Their editors, slowly and pains takingly, have also built up staffs of reporters and re writers and feature writers until today’s Manila news papers are productions in which the whole community can take just pride. The Big Broadcast . . . (Continued from page 7) The main point is that independent or not, America’s new and broader interest in the Pacific assures the Phil ippines her consistent protection. That seems to explain why, in Washington, opinion suddenly verved definitely away from prolonging the Commonwealth and toward Jet ting politics run in the groove set for them in the Conmonwealth act of 1935 that terminates in independence in 1946. And we believe this settles the Philippine ques tion. Formally or informally (it matters little which), the United States and the Philippines are to be perman ently associated and the Islands are to have America’s protection in preserving themselves from aggression. Oc casions fo rlegislation there will be, but apparently never another doubt that the political integrity of the Philip pines is an American responsibility; because America’s new interest in the Pacific makes this to her bounden advantage. As this has been the real Philippine ques tion (means by which they could preserve themselves), it stands resolved. The basis of commerce proposed between to the United States and the Commonwealth is that during twenty year, ending in 1960 with full levies, duties shall rise 5% of 100% yearly. This is to affect dutiable Philip pine products marketed in the United States and (President Quezon says he surmises, or that it is his understanding) Amer ican manufactures marketed here after 1946. It is an agree ment between Roosevelt and Quezon, and apparently is to be the gist of the report of the MacMurray commission on Philippine-American commerce. What a capricious change of course—fruit of Ja(Pleai-e turn to page 44) Qet a Modern ELECTROLUX THE SERVEL GAS REFRIGERATOR An ‘ice box’ may give you a few cold things to eat and drink if you continuously watch the ice supply. You are never SURE. With an Electrolux you ALWAYS have plenty of deliciously cold things of every kind, day and night, without watching, without worrying about ice. Why not end vour worries? Come in and let us talk it over and learn about our Easy Purchase Plan. MANILA GAS CORPORATION IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 Just Little. . . (Continued from page 6) forgot this pidgin and made up a song of his own. This song was vulgar enough, yet it was Chico’s own and it really was a song. But when Chico moulted, of course he drooped into a lenten quietude and would not sing. We waited and waited for Chico to sing again, and when we told the good barber on Plaza Goiti he said to bring Chico to him—that the moulting had laid an egg and Chico would never sing again until he was thorough ly plucked. So we did this, and the barber plucked a bagful of feathers out of Chico, who was soon very pert again and wanting to sing. Only he had forgotten his song. Meantime, mayas had made a refuge of our premises. They chatter, though they never sing, and that’s what Chico does—he chatters like another maya. and would be a maya if he had a brown coat. We think if owls came round he would hoot, and if crows, he would caw: all things to all birds, that’s Chico all over. Only in one respect does he maintain the imperious traditions of canaries, this in the care he demands. His chirp “Come here, you!” is staccato, distinct, not to be denied. But it is always honest, so you had best obey it: Chico’s cage is dirty, or Chico wishes a bath, or Chico wants water, or Chico gave his dinner to the mayas, or Chico desires to be in the sunlight, or Chico wishes now to be back in the shade. And as soon as she, whose min istrations are Chico’s life, says “All right, I’ll see about it!” then Chico chirps no further orders but waits a rea sonable time for the promise to be fulfilled. But though Chico has no memory, he has a temper. “Come, come! Get a move on, make it snappy!” he orders whenever, in a moment or two, his summons is not obeyed. Then, happy once more, if it is day hS starts chattering with the mayas, and if evening, he composes himself for sleep. All in all, Chico is utterly worthless, exasperating, lovable. KUENZLE & STREIFF, INC. Main Office: MANILA Branch Office: 343 T. Pinpin CEBU II.OII.O 11-18 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 April. 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 39 SHIPPING REVIEW By H. M. CAVENDER General Agent—Dollar Steamship Lines Shipments for February 1938 were well maintained and amounted to 235,746 revenue tons, about 11,000 tons less than for January. The sugar industry had its tribulations, char ter rates were high but radically soften ed during the month. On February 18 the Conference announced a reduction of $1.00 per ton and at the end of the month it looked as though a further reduction was in order. The forwardings were 88,520 tons of centrifugal and 7,013 tons of re fined grades, a total of 95,533 tons. As the market price dropped considerably during the month shippers were seriously concern ed. The picture is decidedly gloomy. Coconut products as a whole show an im provement. The desiccated coconut pro ducers shipped 3,888 tons (40 cu. ft.)—an increase of 1,800 tons. The oil shipments were practically the same as last month— 6,714 tons—all to the United States except ing 10 tons. Copra shipments upped over 4,000 tons. The United States trade took 24,292 tons, Europe 3,178 tons and a small lot 225 tons went to Valparaiso, Chile, a new customer. The total was 27,695 tons. Cake and Meal shipments to United States dropped to 2,760 tons, Europe upped to 7,250 tons, a total of 10,010 tons. The hemp market is the weakest of all major products,- only 83,627 bales were shipped establishing a new “low” in the trade. Japan purchased only 16,677 bales which figures 40,000 bales monthly less than she purchased during 1937. Europe was the best customer taking 44,456 bales or 5,000 less than the preceding month. The United States trade amounted to 15,943 bales. The balance was scattered over the usual trade range. Possibly the increases in freight rates is reflected in the stagnant trade picture, another gloomy one. January shipments of ores apparently filled the needs for chromite and manganese as shipments of these ores dropped sharp ly. Japan took 50,650 tons of iron ore and 384 tons of copper. The Atlantic Coast took 4,950 tons of chromite. The Tacoma smelters took 435 tons of concentrates, gold and silver contents. Europe took two small lots—a total of 300 tons of manga nese. The total of all shipments was 56,719. The movement of lumber and logs was a total of 6,266,482 board feet, about 700,000 bd. ft. less than January shipments. The United States purchases were two million less than January. Japan increased by one million. African shipments were over one-half million and Europe slightly in creased her purchase but the Australian trade was slow. The saw mill interests charge the increases in freight rates as responsible for the unsatisfactory condition in the trade on sawn lumber. The trade in cigars amounted to 950 tons (40 cu. ft.) and was a decided increase. Tobacco on the other hand dropped to 411 tons. The cutch plant resumed shipments at their normal rate and forwarded 645 tons. Small decreases are noted in alcohol, junk and molasses. Increases are noted in embroideries, glycerine, gums, kapok, rope (701 tons), rubber, hides, liquors, lard and margarine. The mango season opened with a small shipment. Transit cargo amount ing to 2,525 tons were forwarded—most of it being Shanghai distressed cargo. The "recession” in the United States is reflected in several commodities. The Sino-Japanese war has seriously curtailed shipments to Japan and Shanghai but so far the European situation has had but lit tle influence over Philippine trade. The charter market has visibly softened since the New Year. From statistics compiled by the Associa ted Steamship Lines, during the month of February, there were exported from the Philippine Islands the following:— Were carTo Torn. S With Mine, ailinff, Of American Which k Tons with ■■aUin'it China & Japan 66,112 34 1,190 4 Pacific Coast Local -37,943 15 11,205 6 Pacific Coast Overland 963 7 749 4 Pacific Coast Intercoastal 556 4 396 2 Atlantic & Gulf Ports 108,516 31 14,194 5 European Ports 17,857 15 63 All other Ports 3,799 25 800 3 A Grand Total of 235,756 tons with a total of 86 sailings (average 2,741 tons per Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area vessel) of which 28,597 tons were carried in American bottoms with 10 sailings (Average 2,859 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 February 1938:— First Inter mediate Third Hongkong 53 50 42 Shanghai — _ _ Japan 7 11 _ Honolulu _ 4 11 Pacific Coast 59 40 32 Europe via America — 1 — Total for — February 1938 Total for 119 106 85 January 1938 65 41 27 Copra... (Continued from page 31) Fall. While we have been confidently ex pecting higher prices during the second quarter of 1938, it is now by no means certain that prices will move up radically, if at all. We generally feel that copra and coconut oil are at very low levels, and normally we would expect small reactions for the ensuing two months rather than major price changes. Prospects for the copra crop for 1938 are excellent with nuts setting well on the trees and, barring storms and other Acts of God, 1938 may be the biggest produc tion year for copra the Philippines has yet known. This, however, will depend very largely on price, for if the market goes much lower producers will find but little profit in making copra and sending it to market. During the month hearings were held in the Philippine Assembly by a special IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 OXY-ACETYLENE Welding & Cutting Equipment Philippine Acetylene Go. 281 CALLE CRISTOBAL, PACO MANILA, P. I. EVERETT TRAVEL SERVICE Authorized agents-all lines STEAMSHIP-AIR-RAILRESERVATIONS AND TICKETS ITINERARIES PLANNED TOURS-CRUISES ARRANGED HOTEL RESERVATIONS TRAVELERS CHEQUESINSURANCE LETTERS OF CREDIT NO BOOKING FEE CHARGED. Oouthepn Island C ruises Cebu—Dumaguete—Zamboanga Cotabato—Jolo Twelve days through, the Sulu Sea NINETY PESOS Sailing Every Thursday New m/s. Legazpi—s. s. Kinau EVERETT STEAMSHIP CORP. 223 Dasmarinas Manila, P. I. Phone 4-98-91 ' committee appointed to find out the ills of the copra business and to try to reme dy them. This Committee has worked con scientiously and as a result has introduced into the Assembly and had passed a bill requesting the Congress of the United States to repeal the excise tax against coconut oil made from Philippine copra. The Committee is also studying other pos sible remedies for the situation, which at present is a source of great concprn not only to the copra producers and oil mills, but to the Philippine Government as well. SWORN STATEMENT OF MANAGEMENT, OWNER SHIP, ETC. The undersigned. Walter Robb, editor of tho AMERICAN CHAMBER OI' COMMERCE JOURNAL, published monthly in Manila, P. I., after hav.ing been duly sworn in ac-i oordancc with law, hereby submits the follow ing statement of OWNERSHIP. MANAGE MENT. circulation, etc., which is required by Act 2580 as amended by Commonwealth Act No. 201: (Circulation required only of daily publications) Editor and Manager, Walter Robb, P. O. Box 1638, Manila. Owner. American Chamber of Commerce. 180 David. Munila. Publisher, American Chamber o<f Commerce, 180 David. Manila. Printer, Carmelo & Iiauermann, Manila. Stockholders owning one per eent or more of total amount o(f stocks: NONE Bondholders, mortgages, or other security holders, etc.- NONE (Sgd.) WALTER ROBB. Editor Manila. P. I. March 29. 1938 April 12, 1938 CHOOSING Winnifred Lewis If you could be some kind of bird, which would you choose to be? SERVICE AND SECURITY The organization of The National City Bank of New York enables it to offer an unexcelled service in connection with every class of banking business. THE NATIONAL CITY BANK OF NEW YORK 223 Dasmarinas Line VESSEL Leave Leave Manila Hongkong SEA NANKING HAL OLDENBURG HAL BURGENLAND LT CONTE VERDE NYK KATORI MARU EALJS S. JAVA HEAL GROOTKERK WL TEMERAIRE DSSL P. HARRISON NDL GNEISENAU May 1 April 27 May 7 May 10 May 7 May 14 May 14 May IS May 31 May 13 P & O RAWALPINDI April 30 BF SARPEDON May 4 MM D’ARTAGNAN April 29 CR CAP. VARELLA NLRDM CHR. HUYGENS RL SIBAJAK G & S GLENIFFER EALBS BORINGIA May 24 DSSL —Dollar Steamship P&O —Peninsular & Oriental BF —Blue Funnel Line NYK —Nippon Yusen Kaisha MM —Messageries Maritimes LT —Lloyd Triestino NDL —Norddeutscher Lloyd CR —Chargeurs Reunis EALJS—East Asiatic Line—Japan Service A calao with his mate imprisoned in a hollow tree? An eagle with his nest of sticks on Apo high and free? A hawk? A shrike? A booby living in the Sulu sea? Or would you be a maya in a field of ripened rice? A little grass owl hunting for his meal of fattened mice? A man-of-war that flies all day above the tumbling sea And very rarely comes to shore?— Now which bird would you be? I wouldn’t be a calao, IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OI- COMMERCE JOURNAL April, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 41 SAILINGS MANILA TO EUROPE VIA SUEZ Courtesy- EVERETT TRAVEL SERVICE Tel. 4-98-91 ‘Bangkok Singapore Penang •Belawnn fMadras Leave Colombo Bombay Port Said Malta Naples _______ * Alexandria Brindisi Marseilles SouthHampton ♦Trieste "Plymouth Arrive London Gotten- Rotterdam berg "Amsterdam May 8 May 3 May 10 May 13 May 19 May 13 May 17 May 12 May 14 May 18 May 19 May 25 May 24 May 22 May 31 May 25 May 29 May 25 May 23 May 26 May 30 May 28 June 6 May 29 May 30 May 30 Jun 3 June 5 June 11 June 21 June 8 June 10 June 7 June 13 May 19 May 19 May 20 May 21 June 4 May 21 May 26 May 27 May 23 May 27 June 1 June 5 June 9 June 11 June 12 June 11 June 12 June 13 June 13 June 26 June 21 June 7 June 8 June 27 June 24 June 6 June 7 June 16 June 19 June 21 June 10 June 12 June 20 June 2G June 29 June 27 May 3 May 24 May 6 May 11 May 5 May 27 May 13 May 7 May 13 May 14 May 11 May 17 May 10 May 18 May 18 May 22 May 25 May 29 May 17 May 20 May 21 May 27 June 12 June 18 May 27 June 2 June 3 June 3 June 9 May 25 June 24 July 7 May 31 June 6 May 20 May 21 May 25 June 3 May 13 June 3 June 9 June 22 June 23 May 3 May 10 May 13 May 17 May 24 May 29 June 7 June 12 Duly 4 June 3 June 11 HEAL —Holland East Asia Line NLKXM—Netherlands Lloyd Royal Dutch Mail RL —Rotterdam Lloyd HAL —Hamburg Amcrika Line SEA —Swedish East Asiatic Lint G&S —Glen & Shire Line EALBS —East Asiatic Line—Bangkok Service WL —tWilhelmsen Line MMIC —Messageries Line—Indo-China Service t Also calls at Tourane and Pondicherry Also calls at Jaffa and Haifa c Also calls at Antwerp w Also calls at Gibraltar and Tangier v Also calls at Amsterdam x Also calls at Port Sudan. Algiers and Antwerp t Calls at Nantes and Bordeaux J Also calls at Sabang (Indo-China), Ville Franche and Gibraltar z Also calls at Malacca and Port Swettenham n Also calls at Haifa d Also calls at Sabang, Gibraltar, Tangier and Lisbon or a booby, or a shrike; I wouldr.’t be a grass owl; no, there’s none of them I like; I wouldn’t be an eagle upon any mountain high, And a jnan-of-war seems very lone between his wave and sky. I’ll tell you: I would choose to be a bird so small and bright That people might mistake me for a flash of colored light. I’d greet the dawn with song; I’d dart from flower to scented flower And find the sweetest nectar in the deepest leafy bower. (Continued on next page) Roosevelt Steamship Agency, Inc. REPRESENTING 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. Pacific Coast and Gulf Ports, also to Java, Straits Settlements, Colombo and Cape of Good Hope) Silver Java Pacifie Line (Philippines to U. S. Pacific Coat 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 S.S. “Conte Biancamano” S.S. “Conte Rosso” S.S. “Conte Verde” M/S “Victoria” Via Singapore— Colombo—Bombay—Massowah— Suez—Port Said Regular fornightly sailings from Manila or Hongkong for Venice, Trieste, Naples or Genoa and monthly to Hongkong and Shanghai Through Tickets) to the U. S', and Round the World at Reduced Fares. For passage and further particulars apply to F. E. ZUELLIG, Inc., Agents CEBU MANILA ILOILO 55-63 Rosario Passage Tel. 2-31-16 Freight Tel. 2-31-15 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 42 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 SAILINGS MANILA to U. S. TRANSPACIFIC 223 Dasmarinas, Manila Courtesy— EVERETT TRAVEL SERVICE Tels^f W6'76 I 4-98-91 For Rates . See Line Table VESSEL Muniln Dairen Leave •Naga- • Kobe Yoko- Honolulu Victoria •Portland Van couver Seattle San. Fran. Los N. York Angeles M. Orleans 22 DSSL PRES. COOLIDGE FL FERNMOOR 10 NYK HEIAN MARU 23 NYK TATSUTA MARU CPR E. RUSSIA 24 NYK BOKUYO MARU Apr. 30 May 2 Conn. Str. Conn. Str. May 9 Conn. Str. May May May 13 13 May 15 ♦May 17 May 10 May 11 May 19 May 2 May 5 May 7 May 9 May 17 May 19 May 21 May 22 May 26 June 7 May 16 May 17 May 30 May 23 May 27 May 27 May 23 May 25 June 16 June 19 25 26 27 BENGKALIS TAI PING YANG TYNDAREUS 13 28 May May May May’ May 24 May 27 May 28 May 25 1 6 6 June 3 June July 10 June 10 lune 14 3 July 2 10 9 June June July 13 12 17 23 24 June 28 Aug. 9 July 10 SL MADOERA FL SKRAMSTAD SL H. SILVERSTAR NYK RAKUYO MARU BL TAI YANG KL GRANVILLE May 26 May 27 Jun. 12 Conn. Str. Jun. 15 Jun. 15 Jun. 18 Jun. 23 Jun. 22 Jun. 26 •July 16 June 24 June 28 July 10 June 27 June 30 *Aug. 2 June 22 June 17 June 20 July 9 July 5 July 19 July 22 July 14 July 29 July 23 July 18 CPR—Canadian Pacific DSSL—Dollar Line AML—American Mail Line NYK—Nippon Yusen Kaieha F L—Fern Line BL—Barber Line KL- -Klaueness Line BF—Blue Funnel ML—Maersk Line SL—Silver Line ♦ “Fernglen” $270 to $290 ■J- Niel Maerak” & Gertrude Maersk” $265 I’d weave a nest of grass and down, a roof to keep it dry; And hang it from a swaying branch beneath a friendly sky. I’d neighbor with an orchid on a gray molave bough;— A sun bird, red, and green, and gold, somewhere in Mindanao. Miss Lewis is a teacher of English in the Bureau of Education and a gentle finespirited woman native to Kansas. Her poem is copied with acknowledgements from the Philippines Herald’s Midweek Maga zine.—ED. _____ TROPIC NIGHT Enchanted was the world last night— Dressed in a silvery gown, Her carriage drawn by streams of stars, Diana rode to town. She dropped a jeweled reticule Far in the distant hills, And hence a bed of meteorite A favored valley fills. The arc of Heaven was her course And westward was her way— It was indeed a beauteous night, Almost as fine as day. —W. T Tel. 2-32-51= along with the rest SOFT DRINKS are Refreshing----------- S timulating They Pep You Up ISUAN, INC. Tel.: 5-73-06 We Deliver Carmelo & Bauermann, Inc. ---------------------- Lithogra ph Printer Bookbin Box Mak 2057 Azcarraga, Manila. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL PRINCIPAL EXPORTS Monthly average for 12 months previous to Feb. 1938. Commodities February 1938 February 1937 Canton (Low grade cordage fibre) Cigars (Number) ................................ Coconut Oil ............................................ Copra Meal ................................. :....... Cordage .................................................. Desiccated & Shredded Coconut Embroideries .......................................... Hats (Number) .................................... Hemp ........................................................ Chromium Ore .................................... Leaf Tobacco ........................................ Lumber (Cu. M.) .................................. Maguey Pearl Buttons—Grs................................. Sugar ...................................................... Other Products ...................................... Total Domestic Products .................. Products United State ........................ Foreign Countries Products ............ NOTE: All quantities are in kilos except where otherwise indicated. Articles Automobile .......... ........... Automobile Acceso’rie Automobile Tires .......... Books and Other Printed Matter .......................... Breadstuff Except Wheat Flour; ............................. Cacao & Manufactures Ex cept Candy .................. Cars & Carriages .......... Chemicals, Dyes. Drugs Etc...................................... Coal .................................... Coffee Raw & Prepared . Cotton Cloths ................ Cotton, All Other .......... Dairy Products Diamond & Other Precious Stone unset .................. Earthern Stone £ Crinaware ................................ Eggs & Preparation of . Electrical Machinery ... Explosives ......................... Fertilizers ......................... Fibers, Vegetables and Ma nufactures of .............. Fish & Fish Products ... Fruits and nuts Gasoline ■•• •................... Glass & Glassware .... India Rubber Goods .... Instrument & Apparatus not Electrical ............. Iron & Steel Except Ma chineray .. .■.................. Leather. Goods .............. Machinery & Part of ... Meat Products ................ Oil, Crude ...................... Oil, Illuminating ........... Oil, Lubricating ........... Other, Oilsi animals, Mi neral & Vegetables .. Paints, Pigments, Varnish Paper Good Except Gooks. Perfumery and other Toilet goods ................ Rice ........ ........................... Shoes & Other Footwear. Silk, Atificial ................. Silk, Natural...................... Soaps ............... •................. Sugar & Molasses ....'.. Tobacco and Manufactures of ................................... Vegetables ....................... Wax .................................... Wheat Flour .................. Wood, Reed. Bamboo and Rattan ............................ Woolen Goods Other Imports ............... Grand Total .............. ~ Quantity Value % Quantity 126,601 21,070.477 10,304.808 20,666,271 9,659,696 744,139 2,178,986 99.343 8.467,687 6.367,950 42,672 4,862 471,213 79.704 96,379.269 P 10,314 642,050 1,674.418 1.763,326 414,962 283,733 578,501 846,040 160.760 1,663.125 87,850 15,489 198,560 57,784 57,204 11.500.426 1.444,063 1’21,505,069 Value Quantity 13,919,627 13,143,061 2,451,302 4,471,166 637,040 2,369,850 46,037 10,063,526 1,702,000 2.178,311 8,153 1,059.439 69.963 96.516,194 1* 438.625 4,146,093 482.180 204,674 229,430 718,263 430,368 82,489 2,691,633 47,080 784,015 227,499 168,999 38,819 13.638,293 1,442,827 P25.671.277 112,986 37,688 P25.821.951 828,943 17,185,623 13,433,763 20,746,572 9,637,446 630,344 3,373,097 64,401 13,694,712 8.279,625 751,452 11,614 1,223,268 61,022 72 905.046 Value % 1* 46,165 616,276 3,278,604 2,687,439 606,907 243,936 1,048,G96 630,260 76,283 3,60G,569 199,837 225,410 356,419 169,791 43,237 9,435,102 4,561,948 P27.531.778 173,583 39,229 P27,744.690 Value of gold to the amount of P3,528,802 is not included in the 1938 figure. Monthly average for February 1938 February 1937 12 months previous to Feb. 1938 Value 763,349 407.065 472.351 128,577 92,427 99,945 848,149 201,401 122,663 2.694,229 1,334,291 654,498 85,868 635,445 306,006 232,481 352,962 242,889 178,347 124.700 2,796,017 252,464 2,631,549 263,707 213,401 123,754 147,303 205,083 95,266 60,965 479,614 155,968 188,438 82,651 P24.277.106 2 6 0 5 0 5 8 5 5 7 0 4 3 0 1 7 4 0 2 3 9 6 0 7 0 5 11 10 1 0 0 2 0 9 0 9 5 6 0 0 6 5 0 8 4 2 8 6 0 1 0 0 7 9 0 0 6 8 5 9 Value 393,778 113,847 251.288 110,139 113,678 66.081 133,857 118,676 275,847 8 94.414 127,614 57,129 93,001 109,869 245,877 6.491 257,947 94,927 581,866 46,685 46,723 1,334,122 P13.875.544 0.8 0.5 0.8 0.5 0.8 0.4 0.2 3.0 1.4 3.4 0.9 0.8 2.0 0.7 0.9 0.1 9.9 1.9 7.1 1.8 3.9 0.2 0.7 0.8 1.8 0.8 3.1 0.4 2.4 1.0 0.2 0.2 1.9 0.7 4.2 0.3 0.3 9.6 169,799 123.093 107.346 152.121 71,703 366,038 811.456 212,367 372,639 177.698 152.831 100,949 144,376 260.676 61,142 391,379 146,447 88,639 36,921 P18.827.880 % 1.9 >.7 0.8 0.4 0.6 0.6 0.4 7.9 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Ports Manila ................ Iloilo ........ ........... Cebu .................... Jolo ...................... Zamboanga .......... Davao .................. Legaspi .............. Aparri .................. Jose Panganiban Total ................ Monthly average for February 1938 February 1937 12 months previous ________________________________ to Feb. 1988 Value P31.666.116 69.1 6,966,616 16.2 4,716,730 10.3 83,440 ~ ~ 366,295 931,218 549,927 14,798 498,036 0.2 0.8 2.0 1.2 Value 60.4 24.3 8.1 P45.782.175 150,010 P41.586.427 0.8 P29.883.426 6,416,058 6,376,270 71,954 466,093 1,884,087 1,002,509 16.660 466,024 1 8 7 1 0 0 2 P46.572.071 0.1 1.9 11.9 9.7 0.9 0.9 3.8 2.3 0.3 12.8 0.7 0.8 1.3 0.6 0.1 34.2 16.< 99.3 9.6 0.1 _________________________________ IMPORTS__________________________________ Monthly'averagp’for .February 1938 February 1937 12 months previous Nationality of Vessels_______________________________________to Feb. 1938 Value %Value %Value % American British Chinese . Danish Dutch ...... French German Greek .... Hondunan Italian . .. . Japanese . Norwegian Panaman Philippines Swedish .. By Freight American A Mail ........ P 6,017,478 25.4 10,151,138 42.5 45.507 0.2 1,583,144 6.6 1.225,794 5.1 P 1.859.564 6,211,029 60,901 530,769 988,319 1.127,706 17,789 39,964 1.991,619 1,551,466 147 10,466 23,983 4.7 640,530 20.352 3.851 1,646,723 925,584 297.481 119.678 127,336 14.0 P 3.718.969 46.7 7,131,784 0.4 76.614 3.9 679.348 7.4 1,267,816 — 14,772 4.8 1,234,723 0.1 3,626 — 16,072 11.6 2.066,319 6.9 1,437,432 2.2 546,996 0.9 34,245 0.9 114,959 1*23,786,191 98.0 P13,332.097 96.1 P18.341.663 97.6 1,862 — 6,197 — 4,968 — 489,053 2.0 537,250 3.9 480,749 2.5 TOTAL .........................., P24.277.106________P13.876.544 P18.827.380 NOTE: Importations by U.S. Army and Navy not included in 1938 figure. Nationality of Vessels American ............................ British ................................ Chinese ............................... Dutch ................................ French .............................. Greek Italian .’.............................. Japanese ................... Norwegian ........................ Panaman ............................ Philippines ........................ Swedish ............................ By Freight ..,........... American Aeroplane Mail .......................... I EXPORTS Monthlyaveragiefor February 1938 February 1937 12 months previous to Feb. 1938 Value % P 4,603,416 21.2 3,683,428 17.3 72,060 0.3 1.713,295 8.0 2,163,196 10.1 462^841 2.2 111.899 0.6 5.611,699 26.0 2,686,648 12.6 380 — 376.440 1.8 Value P 5,323,486 6,651,663 208,240 1,498,668 482,031 70.794 379.862 29,239 0.1 8,304,038 32.2 2,775,901 10.7 19,536 — 125,609 0.6 Value P 7,526,701 6,886.116 178,402 997,921 948,393 6,899 736,221 92.895 160,966 5,224,463 3.623,382 217,840 22,882 280,272 P21.273.697 99.0 P26.869.066 93.6 P26,243.061 91.0 11,632 — 1,731 — 8,890 — 219.740 1.0 1,790,096 6.5 2,497,749 9.0 TOTAL ■ ■ ■ .................. NOTE: Value of gold to P21,606,039 P27.660.883 P27.744.690 the amount of P3.628.802 is not included in the 1938 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES. Countries February 1938 February 1937 Monthly average for 12 months previous to Feb. 1938 Value % Value % Value % United States .............. .. P34.578.674 75.4 P31.981.786 76.8 P33,882.483 72.7 United Kingdom 810,340 1.8 1.036,962 2.6 1,484,209 3.2 Australia ...................... 453.1'88 0.9 362,634 0.8 629,701 1.1 Austria .......................... 66,005 8.636 13,188 Belgium ........'.............. 301,391 0.7 262,443 0.6 407.911 0.9 British East Indies .. 671,497 1.5 270,164 0.6 486,064 1.0 Canada .......................... 296,794 0.6 225,606 0.6 882,641 0.8 China .............................. 708,642 1.5 571,414 1.4 729,216 1.6 Denmark ........................ 90,460 0.2 98,277 0.2 116,972 0.2 Dutch East Indies ... 836,933 1.8 324,807 0.8 467,301 0.9 France ............................ 396,060 0.9 187.273 288,316 0.6 French East Indies ... 95,690 0.2 228,016 0.6 186.047 0.4 Germany ...................... 834,033 1.8 649,848 1.1 1,032.002 2.2 Hongkong . ............. . .. 372,494 0.8 274,981 0.7 866.202 0.8 Italy ..........'.................. 127.382 0.3 43,881 0.1 187,097 0.4 Japan -.............. ............. 3.320,397 7.3 4,029,463 9.7 4,411,776 9.6 Japanese-China *............ 33,986 10,226 25,870 Netherlands ....,--------- 842.862 1.8 66,417 0.1 661,794 1.4 Norway .............. ........... 77,302 1.7 69,063 0.1 74,923 0.2 Siam ..............,................ 38,833 226,411 0.6 117,367 0.3 Spain ............................... 19,467 18,897 31,511 Sweden ..........,.............. 209,972 0.5 21.383 169,281 0.3 Switzerland ..’.............. 218,999 0.6 71,126 0.2 105,333 0.2 Other Countries .......... 896.886 0.9 618,726 1.6 441,066 0.9 TOTAL ...................... .. P46,782,175 P41.636.427 P46.572.071 44 THE AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1938 RAIL COMMODITY MOVEMENTS By LEON M. LAZAGA Traffic Manager, Manila Railroad Company The volume of commodities received in Manila during the month of March 1938, via the Manila Railroad Company are as follows: Rice, cavanes.......................... 176,986 Sugar, piculs................................719,412 Copra, piculs.......................... 128,744 Desiccated Coconuts, cases . 21,428 Tobacco, bales......................... 2,323 Lumber board feet................ 937,202 Timber, kilos.............................1,217,000 The freight revenue car loading statistics for four weeks ending March 26, 1938, as compared with the same period of 1937 are given below: FREIGHT REVENUE CAR LOADING FREIGHT TONNAGE NUMBER OF FREIGHT CARS Increase or Decrease COMMODITIES I Tonnage 22,' Sugar Cane . . Livestock . . . Mineral Products Lumber and Timb Other Forest Pro ducts .... Manufactures . . All Others inclu ing L.C.L. . TOTAL . . 16,184 I 17,167 I 274.823 | 297.784 |( 973 NOTE—Figures SUMMARY Week ending Feb. 26. | 4.196 I 4.480 | 73.979 | 81.192 |( 283 )]( 7,213) Week ending Mar. 5. I 4.161 I 4.324 | 68,798 | 74,726 |( 173 )|( 6,928) ” ” ” 12. | 3.947 I 4,336 | 67,069 | 75.006 |( 389 )|( 7,937) ” 19. | 3,890 I 4,017 | 64.977 | 66.860 |( 127 )|( 1,883) TOTAL . . . . 1 16,184 I 17.167 | 274.823 | 297,784 |( 973 )|( 22.961) parenthesis indicate decrease. THE POLITE JAPANESE The following conceits were the reac tions of their liberal authors to certain re cent events: By Ogden Nash How courteous the Japanese! He always says, “Excuse me, please.” He climbs into his neighbor’s garden And smiles and says, "I beg your pardon.” He bows and grins a friendly grin, And cals his hungry family in; He grins and bows a friendly bow: “So sorry, this my garden now.” —Thanks to Reader's Digest. The Big Broadcast (Continued from page 37) pan’s belligerency! Writing the article, America’s Forfeited Islands, in 1928, no forecast of revived interest in insular em pire was made. The new American policy has burst upon the Pacific out of clear skies. But it settles the Philippines’ future. That’s enough. W. R. BUSINESS AND PROFESSIONAL DIRECTORY SUBSCRIBE For Your FAVORITE) MAGAZINES Thru The UNION CIRCULATION CORPORATION 217 Dasmarinas Tel. 4-87-50 CO-OPERATION—SERVICE ECONOMY fr Ifi ® T CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description P. O. Box 1394 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. AMERICAN CHAMBER OF COMMERCE JOURNAL P. O. Box 1638—Manila—180 David RATES Philippines .... P4.00 per year United States . . . $2.00 ” ” Foreign Countries . $3.00 ” ” IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE. JOURNAL That Home and Garden which you always dreamed of— SAN JUAN HEIGHTS is the best place for it. SAN JUAN HEIGHTS CO., INC. 680 Ave. Rizal ' P. O. Box 961 Tel. 2-15 01 ,M A N I L A IN THE SPIRIT OF PUBLIC SERVICE, WE INVITE YOU TO See the Philippines Safely! During the past few years, the Standard-Vacuum Oil Company has been conducting community campaigns on “Road Safety” and “See the Philippines First!” It is gratifying to note the enthu siastic approval accorded these movements by public-spirited motorists throughout the Islands. In extension of this program, we will again feature places of interest that we urge you to see this summer. To start the series, we can do no better than to reproduce the advertisement below which we are publishing abroad in an endeavor to attract foreign tourists to our shores. SEE THE RICE TERRACES OF IFUGAO OAE OF THE II O.V'OEKS OF THE It OKU) L HE PHILIPPINES abound in majestic and inspiring panoramas, breath-taking vistas, gorgeous, everchanging mountain scenery -views found only in the •Pearl of the Orient." See the “Wonderland of the Far East." Talk about the beauties of the Rockies, marvel at the luxuriant trop ical foliage of the Amazon, revel in the magnificent spectacle of the alten fjords of Norway, stand in awe before the ancient pyramids of Egypt—in the unrivalled grandeur of our "Mountain Province” you will have a touch of each. Ifugao! Bontoc!... Interesting studies of primitive life, unique ceremonies and tribal customs, virgin forests of stately oaks and sweet-scented pines, the glorious pan orama of one of the world’s thrilling sights—miles and miles of rice terraces which on a moonlight night will grip the heart with a beauty as enthralling as it is un forgettable! We invite you to visit Beautiful Philippines! Here you will feel at home... here you will find the same friendly Socony service as you encounter wherever GARGOYLE MOBILOIL and SOCONY GASOLINE are sold. Motorists! Pleasant weather is here—enjoy it to the utmost visiting the beauty spots of the Islands. But whether you are out for an afternoon trip or on a week-end tour, please drive care fully. Combine pleasure with public service—“SEE THE PHILIPPINES SAFELY!” SOCONY •ND MOBILOIL STANDARD-VACUUM OIL COMPANY