The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XVIII (Issue No.12) December 1938
Year: 1938
Language: English
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extracted text: I I m ; s 3X . Vi a 4k 1 Just Little Things The Philippine Fishing Industry Dr. J. H. Landman Urges a Protectorate Golf in the Philippines Comes of Age This Girl Ruth Analysis of Dr. Landman's Nine-Point Suggestion Editorial: World Conditions MINING REVIEW About These Street Certificates A Timely Article • The Stock Market New York Stock Market Mining at a Glance OTHER IMPORTANT FEATURES AND THE USUAL MINING AND COMMERCIAL REVIEWS HEACOCK’S ( II rite to Hept. Manila. Im /nrtliei i n I man at i mi ) December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 /,V RESPONDING TO ADV ERTISEMEN IS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 38 "Modern Women (Appreciate Electrical Gifts" REDDY KILOWATT Your Electrical Servant ♦ Give Something ELECTRICAL ACCORDING TO STATISTICS, WOMEN BUY— 81 percent — of all groceries sold. 41 per cent — of all hardware sold. 75 per cent — of all men's sox sold. 30 per cent — of the jewelry sold. 63 per cent — of men's neckware sold. 22 per cent — of Dept. Store goods sold. 78 per cent — of the drugs sold. • YOU REACH WOMEN BUYERS AS WELL AS THE MEN EVERYTIME YOU PLACE YOUR SALES MES SAGE IN THE— Manila Daily Bulletin /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOL’RNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 LUZON BROKERAGE CO., INC. Derham Building MANILA P. O. Box 591 Port Area Tel. 2-24-21 Licensed Customs Brokers Foreign Freights Forwarders Heavy Trucking Contractors Warehousemen Enlargements make smart CHRISTMAS GIFTS CELECT your favorite snapshots now and bring us the negatives for enlargements. They make inexpensive Christ mas gifts that will always be cherished. For albums, Kodak Film and photo supplies, this is the place to come. Let us prove it. CAMERA SUPPLY COMPANY 138 Escolta, Manila P. 0. Box 778—Tel. 2-39-30 MANILA BAGUIO' INSURANCE For Every Need and Purpose WORKMEN’S COMPENSATION PUBLIC LIABILITY AUTOMOBILE IFIRE MARINE ACCIDENT PLATE GLASS ATLAS ASSURANCE CO.. LTD. THE EMPLOYER’S LIABILITY CONTINENTAL INSURANCE CO. ASSURANCE CORPORATION, LTD. ORIENT INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA General Agents E. E. ELSER, INC. Thirteenth and Boston Streets, Port Area, Manila, P. I. Telephone 2-24-28 P. 0. Box 598 Here’s how to get Manila’s! Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby.’ C. A. Bond Philippine Tobacco List of D i strib u tors furnished upon request to— 220 W. 42nd St., New York City Collector of Internal Revenue Manila, P. I. 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, pre paration, processing, manufacture, or packing of tobacco products or supep vising such employment, shall per form, cause, permit, or suffer to be permitted, any insanitary act during such employment, nor shall any such persons touch or contaminate any to bacco 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 un wholesome substances as a moisten ing agent;.. /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December °Wfiniefd Pure Product rfS<o|lanJ WESTCN Special Reserve a fine old SCOTCH 8 years in wood before it's bottled Direct from the Distillery in bond Scollond JondonKtttfisaoW Transpacific Trading Co. KRUEGER'S first BEER IN KEGLINED CANS AT ALL GROCERS OR DIRECT FROM TRANS -PACIFIC - TRADING. CO. P.O. BOX 497 • MANILA • TEL. 2-42-04 Good for a Healthy Thirst! Known everywhere as the best The only light raincoat that meets all the re quirements of the busy business man—grease proof, stain-proof and quick to dry. . . yet dur able enough to last several wet seasons. ALLI GATOR Raincoats are now made in a variety of styles and shades for your selection. Rut be sure that you are getting the genuine ALLI GATOR. Hamilton - Brown MANILA Entered as Second Class Matter May 25, 1921, at the Post Office at Manila, Just Little Things • Herbert Hilscher in the Cosmopolitan let enthusiasm run away with his prudence when he enlarged on the opportunities in the Philippines for young Americans, and now it turns out that hundreds of his readers have set their caps to come here and are writing to the cham ber of commerce or to businessmen for jobs. Hilscher was probably misunderstood, scores of Americans are on Manila’s streets without jobs or very much hope of getting any, and other scores are eking out hand-to-mouth existence either on irregular work lowly paid or regular work at mere Manila wages, or perhaps on small re tirement pay or pension. Young Americans with no work are in our office every day desperate over their circumstances; and Secretary Clifford, who handles such appeals, has only a job now and then for many, many applicants. All of Hilscher’s victims must be advised that the Islands have nothing for them, and by all means not to come here unless on a roundtrip ticket. It’s all too bad, and bad Christmas information. • Jesuits spend about eleven years at their college work, we believe, after being carefully selected in the first place, and they are dynamic fellows always tho roughly informed and grounded in Plato, Thomas Aqui nas, St. Augustine and the other approved philosophers as few men can be. When something deep and moving hits the world, Jesuits get to the roots of it quickly and often try to do something about it; not always as a so ciety of teaching priests, more often as individual scho lars of the pulpit inspired by some particular misery of mankind to proffer practical means of relief. And Jesuits write like all get out, write as well as they talk. So they are powerful when they get going, and we wish they would get going here—on some of our own socio logical problems. This is all suggested by a circular, Free America that has come to us from 112 East 19th St., New York, and seems to be the name of a magazine that is a new one on us and is edited by Chauncey Stillman. It may not be all Jesuit, but surely some Jesuits have something forceful to do with it because the circular speaks of the work of a Jesuit among the Nova Scotia fishermen that we mentioned in passing some months back. Free Ame rica tries to instruct these Nova Scotians, who through cooperation are steadily solving their economic problems, “building their own canneries, buying tools, and putting up livable homes on the first land they’ve ever owned.’’ Free America also reaches Suffern, New York, quite a different community made up of commuters to the city. Cooperative home building captivated Suffern. A group of Suffernians took a whole tract of land, subdivided it to suit each buyer, and worked out a long-term lowinterest financing plan with nonspeculative sponsorship. “At the upper end, business men are learning to spread out their centralized plants and start shops in the country run by local men and seeing to it that they have homes and land,” says the circular, adding that readers are finding renewed faith in economic democra cy. We dare say there’s a lot of everyday secular work to be done everywhere, even here, as well as in Nova WARNER, BARNES eV COMPANY, LTD. LONDON — MANILA — ILOILO — CEBU — BACOLOD SHIPPING DEPARTMENT Nippon Yusen Kaisha Cunard-White Star., Ltd. Bibby Line INSURANCE DEPARTMENT Transacting: Fire Automobile and Miscellaneous Fidelity and Surety Bonds IMPORTERS & EXPORTERS General Managers of COMMONWEALTH INSURANCE COMPANY ILOILO WAREHOUSING CORPORATION RAMONA MILLING COMPANY Special representatives of IMPERIAL AIRWAYS, LTD. MACHINERY DEPARTMENT Agents For: Sugar Machinery. Diesel Engines. Conden sing Plante. 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 December. 19 38 Scotia and Suffern, by talented religious men wise enough to see that while they tend the lamps of the temple they can’t have philistines undermining the foundations; though churches began in a pastoral and agricultural age whose communities were all self-sufficient save where trade benefited a few seaports, ours is ineluctably an industrial age in which, as always, new occasions teach new duties. The price of Free America is a dollar a year. • When we saw by a morning newspaper, the Tribune, that George T. Boles of Mindanao was in Manila for the first time in thirty years, and had seen Commis sioner McNutt and had his picture taken with him, we looked Boles up at the Pioneers Club on calle Echague —a good place for one of your Christmas remembrances to go. Boles is a sandy, stocky whilom sailor 51 years old who did some of his navy work under Admiral “Fight ing Bob” Evans. He enlisted at Cleveland in 1904, hav ing gone to Cleveland on french leave from his home in Erie, Pa. Just two weeks before his father died, he wrote his first letter home; his mother is still living, in the old home at Erie, and is only 75 years old. For a man who has spent 30 years in Mindanao, Boles is not as old as you would think. He is not at all an oldtimer, and he has not gone to seed in Mindanao. He came here a night bos’n on the U. S. A. T. Logan 31 years ago, and left ship here because the ship was too small to hold him and the mate, who bulldozed him, but some years later was in stir at San Quentin for opium running. For a fortnight soon after reaching Manila, Boles was chief of police of Paranaque, then during a few months he was a packer at Fort McKinley in Packtrain No. 9 under Joe Gardner. He says he is a flapjack specialist, no one can beat him making flapjacks, but he tired of the packtrain because the packers all agreed CHECK STARTING WEAR WITH Momtoti with him and kept him over the cookstove every morn ing. He now loped off to Mindanao, landed at Iligan from the coastguard Negros, and plunged into the wil derness to learn about the various peoples living there and pick up their talk. He smokes mildly, but does not drink, and has a sailor’s cunning about leaving the wrong women alone. He worked when he first went to Mindanao, the best job he seems to have had was that of a supervising line man for a provincial telephone system. What we sus pect is that Boles always saved money, even at sea. and that he saves it now. We are glad to see, in talking to him, that he reads widely in current literature and that he has steadily added to his schooling since the formal part of it ended at Grade VIII in Erie nearly 40 years ago. He speaks a number of the Mindanao dial ects, he says, and claims mastery of Bisayan. but he mingles very few patois phrases with his English, and uses no pidgin at all. Many years ago, out of his sav ings, he bought the 60-hectare farm at Lama-Lama that he still owns. It is 9 kilometers from Kolambugan (site of the lumber mill of the Findlay Millar Timber Co.), on Panguil bay. Boles says his house stands on the spot where Mohammedans of Panguil once auctioned off their Christian captives as slaves. Originally the place be longed to Sultan Na Minata, the one sultan in all the Kapitagan valley. Na Minata sold it to W. W. Swain, who sold to a German, Otto R. Siefert, who in turn sold to Boles. Boles planted coconuts and has just short of 4,0’00 bearing. He gardens and cultivates fruits, and has a few cattle and buffalo, and the coconuts made into copra are his cash crop seldom turning up less than P150 a month. We dare say the place yields 1,000 piculs of copra a year, if there are about 4,000 bearing palms. This would keep a family nicely. There are two boys and a girl in the family, the girl now sixteen and soon to live among Boles’s relatives at Erie and try for a good education. The boys plan to stay on at the farm, which, supplemented by hunting and fishing, employs them well enough. Boles does not believe in schooling a boy very far, unless he schools himself. At the Commissioner’s Boles registered his children as Americans, and he gained the assurance, for which he had come to Ma nila, that things will probably keep on all right for everyone here after 1946. Manila depressed Boles exceedingly. As he ex pressed it, it made him seasick. Instead of tender care, he found some daughters of men he had known being exploited; and Boles is clean, all this went through him like a knife; he was glad, in a few days, to be heading back to Lama-Lama, with him a tot 7 years old that he could care for without tongues of malice licking after them. He promised a widow and her daughters to look up a small place where they might garden and raise chickens, and possibly have a store, if they wanted to come on later. It wouldn’t be much, he told them, neither would it be too little—provided they worked. Lama is a petty Mohammedan title at Panguil, it seems, and perhaps signifies just an elder of the community, or a liaison functionary. Boles says that no one from sultan down to sacop undertakes to do anything affect ing anyone else without first consulting the lama. He adds that during all his 30 years in Mindanao no one has been a bad neighbor to him. There’s a new high way building now, 275 kilometers, clear to Zamboanga. THE ASIATIC PETROLEUM CO., (P.l.) LTD. Cebu Manila Iloilo JAMES M. ROBB ATTORNEY AT LAW Property—Wills—General Practice Suite 613 Insular Life Bldg. Tel. 2-16-44 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE? JOURNAL 7 The Philippine Fishing Industry ® Local officials still exercise great powers over the fishing industry, often with no conception of the vital responsibilities involved. In a brawl between local police and villagers on one side, apparently nearly 200 Japanese fishermen on the other, on November 19 at the town of Coron, Palawan, the chief of police shot and killed one of the Japanese and thus precipitated a situation demanding the central government’s atten tion. President Quezon at once sent a com mission of inquiry to Palawan, on the coastguarder Arayat, which of course had diffi culty in getting there and could not find the Japanese once it had arrived. There will be a report, of course, but it is doubtful that the real facts will all come out. The main worth of the incident is that it brings the condition of the Philippine fishing in dustry to public attention and gives editors and reporters a chance to examine it. It gives the Commonwealth the same chance, with more means of ascertaining the truth, and it would be worth while knowing just why this brawl started and why it reached the killing point. It is given out that the Coron police were tracing whether all the Japanese boats fishing there were licensed; you hear that some of the boats were reluctant to show their papers, if indeed they had them. The police insisted, the fishermen stood adamant, vil lagers grew irate and par tisan, and the fight was on. Just the same, could there have been a sudden ac cession of Japanese boats at Coron? What could have been going on in fishing there that had not been going on and known all along? Coron is on the southern shore of Busuanga, the northern is land of Palawan province, of which Palawan itself is the mainland, and opposite Coron at a short distance lie Uson and Coron islands. Coron shows on the map as the largest community on Bu suanga, a municipality. Well protected and near rich fish ing grounds, it should be a rendezvous for fishing fleets. But a regularly patronized rendezvous, you would say, and not an occasional haven. Inquiry gathers that this is just what Coron is. If this is true, it should not take a brawl and a killing to discovei* whether all fish ing boats using Coron are li censed and operating legally. Certainly the boats have names, all licensed boats do— we have a copy of the entire list, courteously furnished us by the Fish & Game Administration at the Bureau of Science. Surely the Coron police could catalogue names of all fishing boats there, at any time, and check the names with the official records that must be nearby, at Notes.--Boats owned by companies or corporations arc probably to be counted as practically all Japanese. Since foreigners can not register fishing boats later than 1932. no doubt some boats of nominal Filipino ownership are more accurately properties of Japanese: but Filipinos thus associated with Japanese fishermen should be deriving some revenue from the arrangement, just as men taking up public lands in Mindanao benefit from Japanese tenants who turn the land into productive plantations. It would be hard to prove that a boat nominally owned by a Filipino was not actually so owned: on the other hand, to own such a boat lind have Japanese handling it wou'd probably lie profitable, there must be legitimate investments of this Philippine Fishing Boats Licensed by Fish & Game Administration a. Boats Owned by Filipinos Number | Nel 'Pons | Av. Tons | Total Value lv. Valu<l-; Av. Nets 1 1 .1 1 | & Lines 128 | 1,280.82 j 10 | P 811,263 | P6.338 | P 978 b. Boats Owned by Japanese 24 ! 198.87 j 8.29 | P 161,450 | P6.852 | Pl,269 - C. Boats Owned by Americans I " 16.5.5 i 15,5 j P 28.790 ; 1’7.577 | Pl,233 <1. Boats (.Iwned by Companies & Coriporation: .36 198.55 13.81 j P 214,145 ; 1’6.782 1 P 789 All Licensed Fishing Boats 2.021.89 1 10.6 | Pl.248 648 | 1’6.537 | P 983 Authority: Fish Jt Game Adminis■tratien,. Nominally. Filipinos own at least 128 out of the total of 191 boats licensed for commercial fishing. This is nearly 67 r'<. These Imats average a value P500 less than the Japanese bonts, their nets * lines average a value of 1*300 less than the nets lines of Japanese boats. Nets & lines on the 3 American bonts almost par those on Japanese bonts, in value per boat. Nets & lines on all the 191 average the value of 1*983 per boat. almost P300 below the Japanese boats. Obviously the Japanese boats aro the best equipped, as a fleet, with the possible exception of the 3 American boats. The Filipino boats average a horsepower of 48. Japanese 16.6. American 60. company 61.5. and all the boats together .-,0.7. Puerto Princesa, and at most are not farther away than Manila. On the other hand, if there had been some deal ing on the side to defraud the Commonwealth and en rich some private purses, if unlicensed boats had been around there and been winked at, here could be the fertile source of quarrel. Later than 1932, Japanese may not reg ister new boats. This privilege is limited to Filipinos and Americans or companies chief ly owned by them. But Japanese fishing grows here, and a situation such as we sug gest is certainly not out of the question. As soon as you study anything in the Philippines, respecting government, you come on the shortcomings of the town ad ministrations. Commercial fishing is no ex ception to the rule. The most monstrous practices are tolerated, in fishing, where even dynamiting schools of fish at sea or in inland waters is let by. There is not a town that can not apprehend its fish-dynamiters, and do so easily, yet you never hear of one that does. There is not a town or city where an unlicensed fishing boat can harbor un known to the police, yet there must be towns as well as cities where they do. Coron’s seems to have been a sudden and inexplicable excess of zeal; you suspect it tells of bad administration, rather than good. At the same time, of course, your mind is open for correction of false surmise. The point is that the incident runs true to the pattern of in efficiency, and worse, that most town administrations purvey. In the interest of social justice, the plan by which Philippine towns and cities are administered needs scrap ping: the towns have liberty, they have usually converted it to license. They deserve no popular councils; every one of them, including Manila, simply needs a public admin istrator who may be styled a mayor, hired in the general civil service and gaining pro motion on merit. Their po lice ought to be detachments of constabulary under this responsible officer. With a little inspection, such a sys tem would give the people low-cost clean government. What they have now, gen erally, is a system of rackets. These extend to traffic in the people’s food supply, for instance to traffic in the sources of fish. Though fish are basic as the poor's meat, this will not stop many a council from shortening the supply or (Continued on page 13) THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1938 Dr. Landman’s Nine-Point Suggestion Some valid, some vulnerable, the points serve to suggest thought about the Islands' potential future. During two months Dr. J. H. Landman of the Col lege of the City of New York traveled in the Philip pines, studied at their libraries, observed their cities, and lectured on occasion at the University of the Philip pines on subjects related to political science. In that time the Islands’ general election occurred, giving Pres ident Quezon another body of assemblymen adhering to his party and ready to support his endorsement of the report of the MacMurray commission that recommends independence in 1946 as already scheduled by congress, and mutual trade concessions by the Philippines and the United States up to 1960 as a breathing spell during which the Islands are expected to rise to full economic stature. The MacMurray report is too long for republication, the gist of it was published in full by the Journal as the Waring-Dorfman report many months ago. A summary of the MacMurray re port, given out at Commissioner McNutt’s office, appeared in the newspapers at the end of November, a Thanksgiving tidbit. Dr. Landman’s conclusions vary from the commission’s in suggesting a permanent Philippine status in political relationship with the United States si milar to that enjoyed by Cuba. Were his suggestion adopted by congress, it would entail that reexamination of the whole Philippine question, in relation to the larger question of America’s general Far Eastern problem, that has been urged by Commissioner McNutt. On the other hand, congress might modify its Philippine legislation to suit it to the MacMurray report without complete reexamination of all the cir cumstances involved. But the fear is not baseless that should congress take up the Philippines at all, it might vote them free at once, or much earlier than 1946, because, as Dr. Landman truth fully says, America fears that staying in the Philippines involves her with Japan; and while she “believes she could best an enemy in war, she has no relish for war to be provoked by incidents or situations arising here. We have been asked to use some of Dr. Landman’s speech to the university group that gave him a farewell ban quet, and so we do so. We have boxed on this page Dr. Landman’s main points, and on another page we reprint from the Bulletin of November 22 his full elaboration of the thesis that the Philippines ought to seek a protectorate similar to Cuba’s from congress. It is evident that politics is not running in that direction, a Philippine commissioner having been chosen, and a Philippine special commission being in Washington helping him, to put through the MacMurray proposals. The commission is powerfully headed by Vice President Sergio Osmena, and may be joined early next year by President Quezon himself. It ought to be borne in mind that voters know that com plete independence has been abandoned by their favorite Dr. Landman Said Separated from America the Phil ippines would be confronted by "the Philippines are as attractive Japanese autarchial imperialism-to Japan as China is.” The Philippines are at another crossroads of their history, their fate lies with the 76th congress, meeting in January, where grow ing labor and agricultural influ ences may offset Roosevelt’s and Quezon’s endorsements of the Joint Preparatory commission’s report. Organized American labor re sents low Philippine wage scales. Americans believe that holding the Philippines may embroil them with Japan. There are no raw Philippine pro ducts indispensable to the economic welfare of the United States. America has spent $595,000,000 here, get back $10,000,000, as the insular-affairs bureau gives the America sells only 50 to 60 mil lion dollars’ worth of goods here a year, buying 20 million dollars’ worth more than she sells. party, and knowing this, endorsed this party at the No vember polls. Let us take up Dr. Landman’s points seriatim. 1. If America abandons the Philippines Japan icill pick them up. We have never felt sure of this, China’s interest here exceeds Japan’s and China may yet be the future leader of the Far East. Also, Japan might never annex the Islands in name, puppet rule might well suf fice her. The situation does not readily simplify. 2. The Philippines are at a crossroads in their his tory. This must be admitted. 3. American organized labor ob jects to the Islands’ lout wages. This must be admitted. 4. Americans believe that keeping the Islands might involve them with Japan. This must be admitted. 5. The Islands have no raw pro ducts indispensable to America’s econo my. Free list products such as copra and Manila hemp are as nearly indis pensable to American industries utiliz ing them as products may be to any in dustry, but Borneo could soon surpass the Philippines in their production. 6. America has spent $595,000,000 here, got back $10,000,000. Official figures of the insular-affairs bureau must be accepted, and Dr. Landman cites this authority. But the outgo is mainly for military purposes and there fore would not cease if bases were con tinued here after sovereignty was aban doned. 7. The yearly bilateral balance of trade runs $20,000,000 against the United States. But an actual balance fairly equitable is nevertheless main tained, with exchange free at nominal charges. The balance will turn the other way when Philippine sugar ceases to be sold in New York, or only such part of it as, economically grown and manu factured, pays the duty and gets by. One way of think ing of what America sells here is to think of it as a draw back on the price of what she buys here, since she must buy only what she needs and gets at some advantage or at least at no higher price than she could buy at else where. So if America sells 60 million dollars’ worth of goods here a year, and buys 80 million dollars’ worth of products for manufacture and use at home, from every dollar paid out no less than 75 cents comes back, on which basis we suppose the Philippines to be a very fine American market. America sells the Islands in a year, let us say, goods marked at $60,000,000 half of which at least represents wages paid all along the line in the production of pro ducts and the manufacture of the goods. She buys in turn products worth $100,000,000 in a year, for manu facture of other products in the United States, and will have to add 25rf to 40c'< to this outlay, this time by way of wages, to make the manufactures and market them. Thus Philippine products give American labor wide em(Co)itinited on page 14) Entreaties of 172 American firms here, capital $100,000,000 all told, that American sovereignty be prolonged here, fall on deaf ears in the homeland because of the Filipinos should try for a Cubanlike protectorate from the United States. (Elsewhere in this number, Dr. Landman’s suggested plan for ihe Philippines is quoted in full.I December. 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 Golf in the Philippines Comes of Age By James M. Robb On January 6, 1939, an estimated 70 top-notch golf ers from all over the world will swing their drivers from the first tee of the Wack Wack course for the start of the three-day 1939 Philippine Open tournament. Among them will be George Montague, highly-publicised “mys tery man of golf”, Norman Von Nida, Australian ace, who won the title last year, E. Cremin, who beat him this year in the Australian Open, Chin Sesui of Japan, runner-up last year with nine of his countrymen, and our own Larry Montes, five-time title holder. The par ticipation of such outstanding performers, some of whom will travel many thousands of miles to enter the compe tition, ensures the success of next year’s tournament, and definitely marks the coming of age of golf in the Philippines. Although it was only last year that an Open Tour nament was held here with sufficient inducements in the form of cash prizes to attract champions, actually the annual Philippine Open is one of the oldest, if not the oldest tournament in the Far East, and the history of the ancient and honorable sport in the Philippines goes back so far that there are few left today who can tell us about it. In the hope that it might be of inter est, we have tried to piece the tale together from scraps of information gathered from conversation with oldtime golfing residents, old newspaper files, and club rec ords. Golf has been described as “a Scottish invention, an English sport, and an American profession.” However this may be, golf in the very early days after the Amer ican Occupation was almost exclusively an English af fair, although' Mr. J. R. H. (Bob) Mason says the En glishmen “let a few Scotchmen play”. These pioneers had a seven-hole course built on some land in Pasay, where the Manila Polo Club now stands, and there they endeavored to satisfy that golfers’ urge to try to hit that little ball high, far and straight. Nothing organ ized about it; just a small group of English gentlemen far from home, infected with the golfing virus but other wise normal, swinging their clubs on a bit of green grass—and keeping the game alive. Most of these players, naturally, belonged to the Manila Club, sometimes known as the English Club. It was not long before there were enough club members (Wack Wack) Looking toward the clubhouse from the eighteenth fairway. It’s a long way home. who insisted on playing golf, to form the nucleus of a golf club. Just how this came about is not clear, but evidently by 1902 there was a golf club of some sort within the Manila Club. Its membership was not welldefined, in fact was apparently not defined at all, for we have a minute-entry in this wise: Manila, July 1, 1902. “The club met in pursuance of a call by the acting secretary as follows: “GOLF CLUB CIRCULAR June 24, 1902. “In view of the disorganization in the management of the golf club, and the want of proper data for deciding the actual membership roll, it has been proposed that a general meeting be called of origin al members. Membership for proposal and those anxious of joining the club with the object of plac ing the same on a proper basis, electing committees, etc., and dealing with the general business of the club for the purpose of thoroughly reorganizing same. With this object a meeting will be held in the Manila Club Tiffin Rooms at 5:30 on Tuesday July 1st, when a full attendance is earnestly re quested. (Sgd.) H. T. MORRIS Acting Hon. Sec. and Treas. Protem." The meeting was duly held, articles of association and by-laws adopted, and officers elected. Civil Gov ernor William Howard Taft was elected president, the club members evidently overlooking the rotund Govern or’s ineptitude for the game in favor of the amenities. Major H. C. Carbaugh (U. S. A.) served as secretary. Carbaugh was one of the very few American members, and he gradually brought in others who, in turn, intro duced their friends into the Club, until eventually the Americans outnumbered the British. History records which will give it two full 18-hole courses. While the Manila Golf Club probably still has a litte edge in the quality of its players—claiming such toprank amateurs (Please turn to page 28) 10 THE AMERICAN CHAMBER OE COMMERCE JOURNAL December. 19 38 Vol. XVIII. No. 12 December, 1938 OMHfRCt The American Chamber of Commerce OF THE Philippine Islands DIRECTORS: P. A. Meyer, President H. M. Cavender, Vice-President John L. Headinglon, Treasurer .J. C. Rockwell E. M. Grimm Verne E. Miller S. F. Caches E. Schradieck ALTERNATE DIRECTORS: E. D. Gundelfinger L. K. Cotterman K. B. Day H. Dean Hellis SECRETARY: C. G. Clifford COMMITTEES EXECUTIVE COMMITTEE: P. A. Meyer. Chairman II. M. Cavender RELIEF COMMITTEE: C. G. Clifford. Chairman MANUFACTURING COMMITTEE: K. B. Day. Chairman A. W. Ralston D. P. O’Brien H. P. Strickler LEGISLATIVE COMMITTEE: K. E. Selph, Chairman Judge F. B. Ingersoll C. G. Clifford FINANCE COMMITTEE: Verne E. Miller. Chairman E. J. Deymek FOREIGN TRADE COMMJTTEE: H. B. Pond, Chairman E. D. Gundelfinger PUBLICATIONS COMMITTEE: P. A. Meyer, Chairman H. M. Cavender C. M. Hoskins Roy C. Bennett BANKING COMMITTEE: E. J. I.eJeune. Chairman J. IL Llyod RECEPTION & ENTERTAINMENT COMMITTEE: E. Schradieck. Chairman E. D. Gundelfinger INVESTMENT COMMITTEE: P. A. Meyer, Chairman .1. C. Rockwell S. F. Caches SHIPPING COMMITTEE: II M. Cave.nder, Chairman E. M. Grimm Chester F. Sharp WORLD CONDITIONS In Great Britain as early as June I found opposi tion to committing the nation to armed intervention for the coercion of national minorities desirous of associat ing themselves politically with neighboring governments of the same race and language. An argument against such intervention was that it would precipitate another world war likely to end in social revolution ahd a col lapse of the capitalist system. The Scandinavian countries seemed fairly prosper ous. Tourists were unusually numerous partly because fewer people were going to Germany and Austria. There was remarkably little war excitement. I saw no evi dence of hostility to the Hitler regime although the three northern nations'that I visited are very loyal to their democratic institutions. In Germany conditions seemed better than at any time since the War. I have been in Germany frequently and once attended a German university. A trace of the old ease and jollity of the early Wilhelm era seqmed to have returned, especially in southern Germany and the Rhine country. I talked no politics and did not hear Hitler mentioned. Neither did I see flag displays, or political parades, or many men in uniform. The only public demonstration of this kind I witnessed was a rather small ceremony as I was taking the steamer at Bremen for the Far East, when a delegation of German naval cadets leaving for study and training in Japan were sped on their way by a detachment of Japanese cadets studying in Germany. No notable enthusiasm at tended this incident. Shops were well stocked with attractive merchan dise and the few purchases I make were reasonably priced and of good quality. Rates are low at the best hotels. I walked through some working class quarters which I knew in former days, such as the Neukoln district of Berlin, once notable as a radical communist center. Housing conditions there had improved, food shops were abundantly supplied, and restaurants served adequate menus. At Singapore and the Malay States where there are many wealthy Chinese, considerable funds were being raised for the patriot armies in China and a party of volunteers were going north to fight. Siam and Indo China are dealing with a problem that is also engaging attention in the Philippines—the oppression of the rice farmers by local money-lenders. All these countries have a nascent cooperative movement encouraged by the government, but it does not yet cope adequately with the needs of the peasantry. There is some talk of Japanese penetration in Siam as there is in the Philippines. There are said to be numerous Japanese advisers in Siamese government offices, and Japan is supplying the country with its new but rather diminutive navy. But . Chinese merchants control trade and were successfully boycotting Japanese goods. Common commercial inte rests, however, promise to make Japan increasingly influential in southeastern Asia, especially if she suc ceeds in controlling Shantung and the Yangtse Valley and planting cotton on lands now occupied by rice and other food crops. This will end America’s heavy exports of raw cotton to the Orient. It will also force Chinese territories under Japanese control to import food. This will probably come from Siam, Burmah and Indo-China •and be paid for partly with cotton goods made by Japa nese mills at Chinese ports. The Philippines were the most prosperous country I visited. This is partly due to the expansion of mineral production, especially gold. I had luncheon with Pres ident Quezon who is in excellent form and occupied with plans for improving the status of the working people and peasants of the Commonwealth and for colonizing the comparatively undeveloped territories of Mindanao where the Japanese already have a foothold. If Japan retains control of coastal China her influence in the Phil ippines will probably be greatly increased. Her new in dustrial enterprises there may enable her to offer the Philippines better markets for their raw material and to use economic pressure to secure favorable trade rela tions with the Commonwealth. Americans and Englishmen with whom I talked in Honk Kong and Shanghai reported that while the north Chinese soldiers—not those of the south—were equal or superior to the Japanese in hand-to-hand and rifle fight ing, the Chinese army was so lacking in staff organiza tion and in the competent handling of airplanes, tanks and modern artillery, that it could not engage the Japa nese successfully in offensive operations and therefore stood little chance of expelling them from the territo ries they have won. The only hope of China seemed to be in wearing out Japan by protracted irregular opera tions. Japan herself feels the effect of the war. I heard it called there “a miscalculation.” Business is said to I,p dull. A tourist finds things much as usual. Prices in department stores are about what they were two years ago. One can hire a motor car more cheaply than in the United States. But the people are not cheerful. December, 19 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 Over 700,000 workers are said to be unemployed in in dustries idle from lack of raw materials, the falling off of domestic consumption, and general war exigencies. Department stores and national marketers are not ad vertising because the government opposes encouraging unnecessary expenditures by the public. Capital equip ment is wearing out and not being replaced. Some years may elapse before Japanese factories are again in as good shape relatively to those of other countries as they were two years ago. No opportunity presented itself of learning Japan’s reaction to American policies. My personal conviction is that boycotts and similar measures aggravated the situa tion without influencing in the slightest the public poli cies of Japan. It is barely possible that if there had been no Chinese boycotts of Japanese goods Japan’s armies would not be in China today. Public sentiment in Japan does influence government policy to a consider able extent. It is probably behind the government though not so enthusiastically so as after the Manchuria crisis. Japanese farmers want more land. The army is officered by men of peasant extraction to a greater extent than formerly. In fact the hereditary military caste is being supplanted somewhat by a new army type laised from the nation’s grass roots. Furthermore it is possible that Japan’s determination to create a vast em pire is motivated partly by an inferiority complex or at least by resentment at discriminatory treatment such as immigration exclusion by the United States. Speaking from frequent visits to the Far East dur ing recent years I imagine that most Americans fail to realize how much prestige we have lost there since the prosperous 1920’s. Former respect and admiration have changed to patronizing condescension. Our manage ment of domestic affairs is criticized especially by those whose trade with America has been affected by our last depression. Our foreign policy is characterized as vacil lating and undependable, especially by the very consider able number who would make this an evidence of the in competence of democracies. The withdrawal of our lin ers from Shanghai and Hong Kong last year was inter preted as chicken-hearted. Altogether we seem to have “lost face’’ abroad during the past few years. Our principal achievement in the minds of those whom I met in the Far East is our successful airway service across the Pacific. The re-establishment of our merchant marine on a basis worthy our importance as a nation would strengthen our prestige. We shall have to think through our Philippine policy. It is too closely inter-related with our international standing in a critical part of the world to be left to the occasional attention of public men and to narrow-visioned private interests. A question frequently asked me was whether Amer ica would resist effectively Japan’s permanent occupa tion of eastern China. My answer naturally was that my opinion was worth no more than that of the question er. I did not expect the United States to go to war over China. Moral indignation and sympathy with China might move Americans to protest vigorously against Ja pan’s proceedings in Asia, but I could not see a likeli hood that this would make much practical difference west of the 180th meridian. A movement might even tually develop in America in favor of Joining Japan in exploiting her newly occupied territories if this promised sufficient profit to American business. From a long term point of view, however, I doubted if the profits made by American business in a Japan-controlled China would be as great as some anticipate. The so-called “co lonial” countries no longer offer such tempting rewards to American and European enterprise as formerly. Japan’s expansion in Asia may reach its territorial limits within a thousand miles of the coast. I doubt if that country’s general urge toward expansion will cease with this. Japan covets the fisheries and the timber and mineral resources of Alaska and need of these has al ready been discussed in that country. Maritime control of the Pacific is another goal of Japan’s ambition. These deferred objectives may seem of no present concern to us. Nevertheless they foster dreams in a militant peo ple conscious of growing power. As these dreams be come more definite and coherent and the sense of power is strengthened we may be faced with a historically in evitable war. A JOURNAL FRIEND. Washington. I). C.. November NEW FEATURE Commencing in January our front cover will be made up of basic business indices prepared and kept current by Trade Com missioner Paul P. Steintorf who succeeds J. Bartlett Richards, another excellent friend of the Journal and its readers. Mr. Steintorf has been the trade commissioner in Japan during 17 years, with a break of three years spent at Washington. A Vir ginian, he majored in economics at Georgetown, and was graduat ed there in 1921. In the war he captained the 317th infantry of the 80th “Blue Ridge” Division of the A. E. F., with the British on the Somme, then at St. Mihiel, and in the Argonne. The last of the fighting got him, the armistice found him among the wound ed in Base Hospital No. 7 at Tours, old Villon’s beloved locale. The new feature for our front cover is suggested by the businessmen’s concerted movement to invite America to take an other and more practical view of the Philippines. We have seen Mr. Steintorf’s outline of it and are sure you will approve. PHILIPPINE ENGINEERING CORPORATION MACHINERY IMPORTERS—INDUSTRIAL CONTRACTORS— ASSAYERS—MANUFACTURERS MANILA Cebu ------ Iloilo ------ Bacolod ------ Cotabato San Francisco, California \ RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 >8 This Girl Ruth By Walter Robb The King James translation of the Bible is such interesting reading, why don’t you read your copy? Perhaps it is because you recurrently hear it made a mystery of, yet why not assume that it is not called the book for ecclesiastical reasons, but because no other book contains so much of what has come to be our common culture. Think of it as just your best book and you will get into it oftener. One church takes the Bible as a sculptor chooses a slab of Etruscan mar ble, and shapes a dogma out of it; and other churches take it as something not so hard, say a bit of softgrained wood, and whittle it pretty much to pieces before ar riving at just the ideals they prefer .... and they sometimes leave themselves free to reshape these ideals. All this is all right, since churches choose to do it. But it still leaves you your Bible—a good serviceable copy with glos sary and maps for no more than a dollar. It is crammed with masterpieces of literature; and it is full, not so much of ecclesiastical law as of everyday morals, sanitation and hygiene, and sound property and business law. You remember, of course, that the Levites who were the Jews’ temple keepers in charge of the Ark of the Covenant, could not own land, but through them you gave God a tenth of your year’s gains. No one indeed could own the land forever, Jubilee every fiftieth year redistributed it, and it was bought and sold according to the number of years pending Jubilee. Land speculations such as have impoverished multitudes in great nations—Poland, Hungary, the United Kingdom are thought of at once—could not get very far under such law as that. Again, modern hygiene and sanitation are now merely catching up with Leviticus. Those old Levites may have been crusty at times, but they had figured out a lot of things that modern science is but now confirming—after the travail of the Dark and the Middle ages. For the family, the rhythm theory? The Levites had it down pat. It strikes you all through the Bible, how it dovetails with your recreation from current literature. Robin Hood, perennial rather than imme diately current, you come upon in detail in the first book of Samuel. And lo, David is your hero: you could not wish for better. Of course, tales about David are true, and tales about the rowdy layman Robin Hood are not true. But there the two tales are, cut to the same pattern, and for the same purpose: to exalt the humble who are in every way worthy, and to confuse the mighty who are iniquitous. David brings us close to that girl Ruth, with whom we are to catch step in a moment, after hearing from a few of your favorites on the compensations of reading the Bible. Henry Van Dyke says, "No other book re flects so many sides and aspects of human experience.” Whitelaw Reid says, “ . . . the basis and mainspring of Anglo-Saxon development.” William Lyons Phelps says, “It has swayed a greater amount of mind than any other volume the world has known.” Stanley Bald win looks to the Bible to redeem the world from the fog and despair wherein it now blindly gropes. James Dwight Dana (a geologist!) says, “The Grand old Book of God still stands,” and no one must have read it with a more pro nounced secular viewpoint; unless it might be Jean Jacques Rousseau (The Social Con tract), who says, “How meager, how con temptible are the books of philosophers, with all their pomp and diction, when com pared with the Scriptures.” And crying Hear, hear! you discover, among all men of letters, William E. Borah, William Allen White, Lord Bryce, Daniel Webster, Abra ham Lincoln, Joseph H. Choate, John Rusk n, Napoleon Bonaparte, and more expect edly, Thomas Carlyle, Christopher Morley, and Woodrow Wilson. Few regular pew holders, but all devoted to the Book. Paul is a curious figure to follow through his re markable epistles to the early Christian congregations, some Jew, some mixed, some gentile. In Corinthians you find sectarianism blasted out of council, but in Gal atians you find it readmitted. Like the apostle who wrote, sometimes with regrettable personal feeling if not downright pique, the Bible is all things to all men. But now sweet Ruth is perhaps waiting for us. Ever very careful of her appearance in the presence of men, she must be looking charming. You will search long for a short story that tops this one about Ruth. It is the mold, in fact, in which thousands of short rom ances have since been cast; but they are all imitations and few are as engaging as their prototype. The first surprise about Ruth is that she is on good terms with her mother-inlaw, Naomi, though Naomi is an immi grant and speaks the national language only with difficulty. When times were bad in Naomi’s country, she and her hus band with their two sons had gone to Ruth’s country on the farther side of Gali lee and there, of course, worked hard and got hold of some land. The boys had also grown up and married. But first the fa ther died, and then these boys, before chil dren were expected. This left Naomi old and somewhat lonely and homesick, she de cided to go back to the old country. Beth lehem-Judah. Both her daughters-in-law wished to go with her, but the one, Orpha. finally turned back to look after the farm and try her luck for a new husband right there at home, but Ruth would not. On second thought, Naomi let Ruth have her way. The old matriarch concluded that it might not be so bad after all to get back to Bethlehem-Judah with as eligible a daughter-in-law as Ruth was, to recommend her long (Continued on page 25) December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 Philippine Fishing . . . (Continued from page 7) monopolizing the take. With such problems the central government will get nowhere until the chief officer of every community is a central-government official with an esprit de corps to honor. Let us make fish the sole source of our illustrations. Tabular matter about the fishing boats is/ooxed in the first page of this paper, Jr/ all the islands, fewer than 200 licensed commercial fishing boats. A license costs P5, a charge of Pl per ton of fish marketed is collected; the owner pays this to the town treasurer where he brings in his cargo, but the license comes from the Fish & Game administration and is an insular charge. Now for a few outrages: Taytay, Palawan is a town nearby Malampaya sound, perhaps the richest land locked fishing grounds in the archipelago. Some years ago the Taytay council de clared Malampaya sound to be a fishpond— because the towns still have the administra tion of ponds, the marketing of bangos fry, and fish traps. A monopoly was then granted one man, he only could have traps in the sound, he alone could take fish com mercially there; and if anyone else did so, they had to arrange with him and pay him something for the privilege—the poorest family could not fish without paying this racketeer tribute. This lasted years, un til the supreme court knocked it out on grounds that a fishpond implied an im pounding place for fish that was at least in part artificially prepared—whereas Ma lampaya sound is a mere natural arm of the sea and not a fishpond at all. In all those years, Taytay got its cut and some chap there got a fat income out of the peo ple's staple meat, fish. Now go to a Tagalog community, and a very proud one at that, Batangas. Taal volcano and Taal crater lake are in Batangas, the lake drained to the sea by the Pansipit river. The town of Taal is cn one bank of this river, Lemery on the opposite bank. Formerly the lake teemed with two species of mackerel, cheap, pala table, and wholesome. They spawned in the sea, but the fry went to the lake where they grew to maturity, and went back to the sea to repeat the story of their an cestors. This habit demanded an open river, and if not that, then a by-pass to serve the upstream and downstream migra tions. But no; consulting only their con venience, the towns of Lemery and Taal let out a monopoly to a man who dammed the river in order to waylay and catch the mackerel as they went back to the sea. This man.gave each town P18.000 a year, an indication of what a quantity of the people}/ food was involved. XXe supply of mackerel is now running low, which is natural because the fish should be caught only in the lake, such as can make their way to the sea should be let do so in order to maintain supply. So now, without abandoning the monopoly, Lemery and Taal have reduced the annual charge to conform to the depletion of the catch— they collect only P9,000 each a year. You see, corrals or traps are still under the towns; these two towns give an extended meaning to the law, authorize a fatal fish dam, and make the people’s meat supply precious and costly. Wherever this is done, it is an invitation for the Japanese to come and do some fish ing. Let present processes continue during a few more years, and fishing in the Phil ippines will have been made a large and remunerative vocation for many Japanese; and the fault will not be theirs, but that of town officers either shortsighted or indif ferent about what should be done. Yet you hear that the new legislature may change the national fish & game law radically, and give even more discretion to the towns, such as rights off the foreshore. Now go into Laguna de Bay. Here used to abound a toothsome catfish the male of which incubates the eggs in his mouth. This transpires in the main during April to June, and at that time the fish ought not to be molested. Frightened, they drop the eggs and it is not uncommon to see heaps of them so deposited, all oi course quite dead. But local officials take no account of this, the catfish are sought at all seasons of the year, dynamite may even be used, and so the fish are already scarce. Carp are taking their place, carp being voracious vegetarians and harder to disturb in their plans to reproduce them selves. Local wiseacres round the lake have it that the carp are killing the catfish, but carp are not carnivorous and in fact it is these very men who are killing the supply of the superior fish. Carp, the inferior fish, are naturally coming on in greater numbers, and gra dually the people are coming to use them. This deterioration in a notable fish supply comes of nothing else but negligent local administration that takes no thought for the morrow. How monstrous this is may be imagined by thinking about Japan, how readily she maintains a population of 70 millions (with Hokkaido, her northern island, little popul ated) because she lives so largely from the sea. Just how much she relies on the sea is ascertainable, but the seas round her lit tle archipelago are practically a part of her domain—and by far the most important single part. Men lose sight of this, say ing how crowded Japan is: such men fail to calculate the resources of her seas. It is the same here, and if we were but to deal logically with our natural fish supply from the sea not less than 100 million people could domicile themselves comfortably in this archipelago, whose lands fit for crops exceed Japan’s with forests and minerals yet to be considered. Such resources, we maintain, can not be left to petty local officials elected for short terms who are not conscious of how des tructive some of their negligences and over sights and condonements may be. FRIEND No. 1 PLEASE CALL UP 2-39-3S Write to: P. O. Box 301, Manila, P. I. /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1^38 Now refer to the three things affecting fish that town authorities still control: the traps, the bangos fry, the pond. There are instances where councils turn all these over to monopolies, for an agreed payment a year; whoever puts in a pond, whoever sets up a corral, whoever impounds females and raises bangos fry—for salting, for ex ample, and selling as bayony—must make his arrangements with the monopolists and pay them tribute. This is a fantastic way of administering such responsibilities, un questionably the law means that opportun ity will be equal to all, especially to all the poor, and not limited to the few who can pay comparatively high fees for the mono polies. He who sets a trap, let him pay a tax; he who breeds fry, let him too pay a tax; and he who grows pond fish, let him pay a tax; and all this money will go to your town treasury and not for private tribute. It is also often vital that experts of the Fish & Game administration be consulted, to see that whatever is done will not deplete the fish. As to Japanese fishing here, they are the only foreigners who do, and they fish chief ly at sea beyond the three-mile coastal li mit. Early next year the first boats of the army’s offshore patrol fleet are arriving at Manila from the builders in England—but we hear America builds better ones, which should be looked into—and after that no such incidents as that at Coron in Novem ber should occur. After that it ought to be possible to overhaul very readily any craft in Philippine waters, since the new boats attain 45 knots an hour, and, without killing anyone, ascertain that it is licensed and using the banks legally. And here is a reported practice that might be stopped by the new boats: It is reported that Filipino crews take some boats to sea, WORLD WIDE ORGANIZATION The services of The National City Bank of New York, through its world wide organization, including branches in many foreign trade centers and cor respondent in every commercially important city, are available to world traders and travelers everywhere. The bank maintains close contact with trade con ditions throughout the world, has intimate knowledge of the demands of foreign customers, and is familiar with the customs and trade practices of the various countries. It is to the advantage of business men to use National City facilities and experience in the develop ment of their foreign markets. THE NATIONAL CITY BANK OF NEW YORK or beyond the breakwater, turn them over to Japanese crews who do the fishing in them, and then take charge once more when the boats are brought up the bay with the catch, the Japanese dropping off some where along the river or a launch taking them off in the bay. We do not know how reprehensible this is, but we assume it co vers something from the law that ought to be exposed and discontinued. The slow coastguards are not up to that. This country can’t have its cake and eat it too, not even its fishcake. President Quezon plans better adminis tration of the country’s fish resources in the future, and hopes to instruct Filipinos in new methods of fishing. Some Japanese instructors, for this, may be employed—the President thinks they are among the best fishermen in the world and have lessons to impart to this country. Practically, he de mands that Filipinos take hold of their own problems and solve them. Certainly compe tent fishing, competent fish administra tion, that supplies will be conserved, is among these problems and not the least of them. Japanese ice boats at Manila, make for Palawan and Malampaya sound, and trawl for Spanish mackerel. They do beam trawl ing; to a beam athwart the stern of the boat they attach a net in such a manner as to scoop up the mackerel as the boat moves along. They do this type of fishing at sea, too. They fish a great deal in Palawan waters, where fish are found at the reefs abounding there. At a reef they set a net in form of a triangle, the ends forward, the belly back, something in the form of a movable corral or trap. Now comes a skill ful business. A light cable is paid out, far up current from the net, and man after man goes overboard to help move it for ward. Palm leaves dangle from it, objects that help the men's swishing legs frighten the fish along, and finally everyone closes in at the net and the haul is made. This method gets quantities of dalagang bukid, an acceptable fish now plentiful on the Manila market, of which a large speci men 5 inches broad and 14 inches long costs about 50 centavos—the weight about 1 kilj. Filipinos do not use this method of fishing, called muro-ami or moving-corral by the Japanese. Sometimes Filipinos say they fear sharks and swordfish at the reefs, which can not be true; what is more prob ably true is that they shun the exertion in volved for the prospective gains. Filipinos do not have to work so hard for a living, but Japanese do. All this poses the ques tion whether Japanese compete with Filipi no fishermen or merely supplement their efforts. One reporter at President Que zon’s latest news conference suggested that law require at least mixed crews on all li censed fishing boats, the majority of the men to be Filipinos—this for learning the skill of the Japanese and keeping sea fish ing national. If such a suggestion caught on, it prob ably could not apply to boats licensed prior to 1932 and the date of the national fish &■ game act, No. 4003. Dr. Landman’s Nine-Point . . . (Continued front paye 8) ployment, including farmers and farm labor, since the bulk of all they buy derives almost directly from farms. The bulk of what they sell, too, sells as low prices, to labor. But suppose America turned to ether sources for copra, Manila hemp, etc., where she could sell in turn only 30 million dollars’ worth of goods, instead of twice that, as here, labor being about half the whole charge. This would at once cut American payrolls by $15,000,000 a year, unless new sales made up for what was lost in the Philippines. Of course, if America actually buys here what she does not need, she throws money away foolishly; but this is not the fact. She does buy, just now, short of a million tons of sugar that she might get from Cuba with a duty drawback, but she can readily settle this difficulty at any moment with out disturbing the whole fabric of Philippine-American commerce, of which after all sugar is but a part. This year, or during 1938, the trade bal ance has been running more favorably for the United States. But Dr. Landman un derstated it if the average balance during the decade ending with 1937 is taken, the direct average balance of visible items dur ing that period having been more than $36,000,000 a year. 8. Entreaties in America from 177 Amer ican firms here whose whole capital is ■<100,000,000 fall at home on deaf ears. If the aptitude of these appeals improves. thi< may not remain true. It is our view that (Please turn to paye 33) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL ' V..pm : N -.P'l PH'i H-'P'Ni r'1 'Ip When you attend performances at tbc new AVENUE THEATER you will be c-o-in-f-o-r-t-a-b-l-e because of Carrier AIR CONDITIONING Now is the Time to Plan for Hot-Season Comfort Now. while the welcome cool season is here, is the time to plan to Aarp that season with you always. Why not provide now for all-year com fort? Carrier air conditioning for your home, office or store will give you Decern her comfort throughout the year, and at surprisingly low cost. And it will add immeasurably to your heallhfulness and resistance to annoying colds. 'There is no reason w hy you, too. should not enjoy the comfort, and the many other immeasurable benefits of a ('ai rier system. An iiii/iiiri/ mill hiihf/ iironi/il 11 (f t h 1111 ft. Sole Wen I s EDWARD J. NELL COMPANY A>>. I, I. I’mpiii Mmuh, 1’. I. P. O. Box 1G4I» Let us go over the job with you and show you how little it will cost. Plan it NOW—so it will be ready for your comfort during the hot season. I December. 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 About These "Street Certificates" ® Supreme Court in a recent decision upholds ruling of the SEC, strictly limiting their use. By James M. Robb Almost unnoticed, a decision has recently been ren dered by the Supreme Court, of considerable interest to brokers and traders, as well as to the general public. The decision, upholding the interpretation which the Securities and Exchange Commission placed upon one of its own Rules governing trading on the Stock Exchange, is far-reaching in effect since it hits at an almost univer sal practise among brokers—that of converting all certi ficates placed with them into “street certificates.” A street certificate is a certificate on which “the name of a person other than the owner—is inserted for convenience of rapid trading.” In practice local brok ers have been following the Wall Street custom of send ing all stock certificates deposited with them by their customers, whether margined or not, to the Clearing House for cancellation and substitution by new certi ficates, usually in the name of another brokerage house. This custom has been general because through it stock certificates become very nearly as negotiable as “bearer” promissory notes or bills of exchange. Thus, transfer of the stock on the books of the corporation need not oc cur at once, and often does not until it becomes desirable to change the entry on the register in order to avoid com plications with dividend checks. This increased negotia bility is due to the fact that, once a certificate is changed into a street certificate in the name of a brokerage firm, nearly all impediments to negotiation—such as the pos sibility of fraud or forgery, or bankruptcy of a client— are removed. . In March of last year, the Securities and Exchange Commission promulgated its Provisional Rules and Reg ulations, Rule A-6 of which read as follows: “Securities to which a broker has not extended any credit to a customer shall be kept separate for the particular customer who owns them and, except with the written consent of the latter, shall not be loaned, pledged, or commingled with other securities owned by the broker himself or by other customers, or otherwise disposed of as his own. In case they should be loaned, pledg ed, or otherwise disposed of as his own by the broker, by virtue of the customer’s written con sent, the broker shall report it to the latter, stating the name of the person or persons to whom they were loaned or pledged or disposed of, and the amount for which they were dispos ed of, and the maturity of the loan”. Soon after this rule was promulgated—and it has not been amended—one Vicente Galian deposited with Swan, Culbertson and Fritz an order, good until can celled, to sell 10,000 shares of Gumaus Goldfields, Inc., at P0.185 per share, and deposited with the brokers a certificate for 20,000 shares of the corporation’s stock, issued in his name, and properly endorsed in 'blank. At the same time, he signed the usual form, which provided that, “All securities, or commodities, contracts for commodities or other contracts now held or here after purchased by the Brokers for, or now or hereafter deposited with the said Brokers by the Customer, are to be held by the Brokers as security for the payment of all liabilities of the Customer to the Brokers however and whenever arising, and the Brokers are hereby author ized, without further notice to the Customer, and without regard to whether the Brokers have in their possession or subject to their control at the time thereof other securities, commodities, or contracts for commodities of the same kind, and amount in the usual course of business, to repledge, rehypothecate—and loan the same from time to time, separately or together with other securities; and the Brokers shall not be required to deliver to the Customer the same certificate or securities deposited or received, but only certificates or securities of the same kind and amount." On April 13, 1937, the broker sent the original cer tificate to the clearing house of the Manila Stock Ex change for transfer to “street certificates,” and two new certificates were sent to it for 10,000 shares, in the names of Mackay and McCormick and Leo Schnurmacher, res pectively. On that same day, the customer cancelled his selling order, and requested return of his stock, and the two street certificates were delivered to him. He ac cepted them without protest, and signed the correspond ing receipt. On April 19th, he filed a written complaint with the Commission, alleging violation of the Rule A-6 above-quoted. The Commission, aftei’ taking evidence, held that the brokers had indeed violated the second part of the Rule, in that they did not give notice of the conversion of the original certificate into street certificates, although they did not violate the first part of the Rule since they had the customer’s written authority to deliver to him substitute certificates of any kind, so long as they totalled the number of shares originally deposited with them. The Brokers were censured by the Commission in rather strong language, and they appealed to the Supreme Court. Counsel for the brokers argued before the Court, among other things, that the simple transfer of certi ficates endorsed in blank, to street certificates is not a “disposal” of them within the meaning of Rule A-6. The brokers had not, of course, “loaned or pledged” the se curities, and, it was contended, neither had they “dis posed” of them. When the brokers received two street certificates from the Clearing House, in the names of two other brokerage firms, they had then on hand 20.000 shares of Gumaus Goldfields stock, as they had before, and immediately delivered these two certificates to the customer, who accepted them without protest, and re ceipted therefor. The advantages of the practise were pointed out, and the prevalence of the custom brought to the attention of the Court. Furthermore, it was argued, since there was no “disposal”, or other forbidden dealing with the certificates, there could be no necessity to report to the customer, as required by the last part of the Rule. It was contended that the Ride contem plated a report to a customer only where certificates 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 were loaned, or pledged, or hypothecated, and not in a case of mere conversion into street certificates. Besides, said the lawyers, since the customer accepted the new certificates without protest, he of course knew that the original certificate had been substituted by the two which he received, and there was no necessity for reporting to him something which he already knew. The Attorney General, for the Commission, retort ed that the brokers had “disposed” of the original certi ficate, and called upon Webster as their authority, that “to dispose of” means “determine the fate of; fix the condition, employment, etc., of; to direct or assign for a use; to get rid or, put out of the way; to finish with— to transfer to the control of someone else, as by selling; to alienate; part with; relinquish; bargain away”. The Attorney General also expressed grave concern over the plight of customers whose original certificates are dealt'with in this fashion, stating “if brokers could at will convert the customer’s certificates into street certificates, they could use and trade on such street certi ficates as their own even without retaining equivalent certificates in their possession. They could sell or pledge —or trade on their own account.” Furthermore, “if a stockholder’s meeting is called, a stockholder will not be notified, and will not, therefore, be able to vote and otherwise take part in the deliberations. If he wants to retransfer the street certificate to his own name, he must send that certificate to the transfer office of the corpora tion, and pay the corresponding transfer fee. If a divi dend is declared, he will not receive any portion thereof because his name does not appear among the corpora tion’s stockholders.” The fact that the practise is wellnigh universal in New York and other securities centers does not mean that it should go unrestricted here, the At torney General argued, for local investors are not as yet educated in the intricacies of market trading, and need more “protection” than traders with more experience. Strangely enough, neither side succeeded, apparent ly, in locating much authority in support of their res pective positions. The attorneys for the brokers relied mainly on a case decided by the New York Supreme Court, Appellate Division, and the Attorney General cited a decision of the Court of Appeals of the State of California. Neither court is the highest court of the State, and decisions of these two courts are not, natural ly, controlling. The Attorney General also dug up a very old Massachusetts case, and both sides quoted free ly from Meyer, “The Law' of Stockbrokers and Stock Exchanges”. The Supreme Court, in a unanimous opinion, su stained the Commission, holding that the brokers had “disposed of” the original certificate of stock, without notifying the customer, as required by the Rule A-6 of the Commission. The Court also criticised the practise of changing “free” certificates on which the broker has not loaned money, into street certificates. (Swan, Cul bertson & Fritz, Petitioner, vs. Securities and Exchange Commission and Vicente Galian, Respondents, R. G. 45792). The immediate effect of the decision will probably be that brokers will have their forms amended, so as .to include a waiver of notice of the changing of certifi cates into street certificates, and that brokers will be careful to see that every customer signs these forms. The practice itself has not been outlawed, but only the obtaining of street certificates without (1) previous authority from the customer, and (2) notifying the cus tomer when the street certificates have been obtained in lieu of the originals. /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 A Timely Article By Clay W. Crane Statistician, Hess & Zeitlin, Inc. SAN MAURICIO MINING COMPANY The recent report released by the board of Directors of San Mauricio, coupled with the substantial advance in market price of this issue, makes necessary at this time a reappraisal of this company’s earning power, financial condition and future possibilities. (This analysis was prepared for the clients of Hess and Zeitlin early in No vember and is being now made public for the first time). ORE RESERVES: One of the most important things to consider about any mining security is, of course, its ore reserves. At the end of 1937 the reported ore re serves at San Mauricio were extremely limited. At that time it was estimated that ore reserves totalled 143,198 tons with an average value of P24.29, giving a total con tained value of P3,477,422. In other words, the com pany had at that time only a sufficient amount of ore to supply its 300-ton mill for a period of 16 months, and a gross value of only P24.29 per ton. In the report referred to above, it was stated: “Ore reserves are being greatly increased each month, both in positive tonnage and average value. Although final to tals will not be available until the end of the year, it isdefinite that the January 1st, 1939 figures will approxi mate an average value of P50.00 per ton, and tonnage in excess of three years' operations." This indicates that there will be approximately 325,000 tons of ore which, at an approximate value of P50.00 per ton, would mean a gross contained value of better than P16,000,000, a sub stantial increase in ore reserves for a period of one year of development work and development work ahead of actual production. As development work on the various vein systems' have proved up the existence of sizeable blocks of ore which will average considerably in excess of the above estimates of P50.00 per ton, it would appear reasonable to presume that at least some months will show a pro duction which will average considerably more than P50.00 per ton. FINANCIAL CONDITION: On October 31st, last, current assets amounted to P855,809 of which P663,267 was in cash or its equivalent. Current liabilities, on the other hand, amounted to P625,911 of which P64,735 re presented accrued income taxes. Therefore, on October 31st, current assets exceeded current liabilities by P209,899 while cash and its equivalent exceeded current lia bilities by P37,358. At the end of 1937 current assets amounted to only P592,755 while current liabilities were Pl,372,644. Cur rent liabilities at that time exceeded current assets by P779.889. The bulk of improvement in current position was accomplished during the past five months as, on May 31st of this year, current liabilities still exceeded current as sets by P797,027. Although almost all of the improvement in current position was accomplished out of earnings, the company has received Pl50,000 from Marsman & Company in pay ment for 1,500,000 shares. It also received P110,088.80 from stockholders who had been given the right to pur chase additional stock at 40 centavos. From this latter source San Mauricio will receive another P89,911.20 sometime this month. CAPITALIZATION: By the end of this month, when stockholders have subscribed to their share of new stocks at 40 centavos, San Mauricio will have an author ized capital of Pl,000,000, divided into 10,000,000 shares of 10 centavos par value common stock, all of which will be outstanding. MANAGEMENT AGREEMENT: By virtue of a management agreement with Marsman & Company, en tered into in February 1934, Marsman & Company re ceives a monthly fee of P4,000 per month plus 10% of the profits (net profits is not defined in the contract but in actual practice the 10 c/< is deducted after all charges including a depreciation charge) which exceed 50% of the capital subscribed when the first dividend was declared. When the first dividend was paid, the company’s capital was P800,000. In other words, should the company’s net divisible profits in any one fiscal year be P400,000 or less Marsman & Company would only re ceive the regular P4,000 monthly management fee as compensation. However, should the net divisible profits amount to P800.000 Marsman & Company would receive, in addition to their monthly fee, 10% of the difference between P400,000 and P800,000 or P40,000. EARNINGS: It has been often said by those who are not familiar with the facts, that costs at San Mauri cio are high in comparison to other mining companies in the Islands. In the letter to stockholders of November 14 it was clearly shown that “controllable” costs at San Mauricio compare very favorably with any other mines in the Islands. Controllable costs such as mining, milling and mine general during the month of October amounted to only P8.26 per ton. The very complex nature of San Mauricio ore, how ever, is of such character that the bulk of the values must be recovered in the form of concentrates and then fur ther processed by smelting with final recovery of values in United States smelter. This obviously results in a larger marketing expense than in the less costly free milling or straight cyanidation of ores by which most of the values in the Philippines are recovered. For Octo ber, this cost was P6.04 per ton, but this figure, as noted in the cost statement, includes a charge of P2.33 per ton for slag and dust losses, which is actually a smelter deduction for unrecoverable value similar to a tailing loss in milling plants. This item, as has been pointed out, is “uncontrollable.” Another uncontrollable item is taxes. Because of the high production plus its large profits San Mauricio is forced to pay a comparatively large percentage for taxation. Estimated production tax and income tax for October was an amount equal to P3.79 per ton of ore milled. San Mauricio follows a conservative policy in de preciation accounting. It has charged against earnings an amount per ton which is among the highest in the Is lands—P2.08. Miscellaneous general expenses such as various fees and incidental expenses amounted to only 76 centavos per ton. Marsman & Company’s P4.000 month fee (the profit participation has been waived tem porarily, it is understood until December 1st) amounted to only 46 centavos per ton. The total cost, therefore, of both controllable and uncontrollable items for the month of October amounted to P21.39 (before Marsman & Com pany’s profit participation). For the past several months. San Mauricio has aver aged approximately 9,500 tons per month. It can there fore be estimated that San Mauricio’s cost per month will total approximately P205.000 after all charges but be18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1938 fore the profit participation. As was made public sometime ago, the net profit for San Mauricio during the first six months amounted to P388,616, after a depreciation charge of P152.214 and after payment of P95.501 for the now cancelled financing agreement. Although no official figures have been released relative to earnings for the third quarter it can be estimated, based on an analysis of the first six months operations, that during that quarter the net profit, after all charges, amounted to approximate ly P450,000 or a net profit for the nine months of approximately P850.000. According to the above breakdown of Oc tober earnings and a knowledge of actual production for that month of P437.383, it J<oppeLJ Manufactured by JOSHUA HENDY IRON WORKS (San Francisco, Cal.) ONE (1)4—5' x 6' HENDY BALL MILL has just been ordered by KM. 73 MINING COMPANY. -----------*41*5^----------Sole Agents KOPPEL (PHILIPPINES) INCORPORATED ILOILO MANILA CEBU can be estimated that the net profit for October was approximately P240.000. This brings the profit for the 10 months to approximately Pl,075,000 after all charges and Pl,275,000 after all charges but before depreciation. According to the letter referred to above, November produc tion is estimated at around P500,000 (ac tual was P501,000) and a production of ap proximately this amount is expected to con tinue for sometime to come. Basing an an alysis of potential earnings on a production of P500,000 on the above breakdown of Oc tober’s costs a monthly profit of P295.000 can be expected for November and Decem ber. In other words, the net profit of this year can be estimated at approximately Pl,650,000, an amount equal to approximately 16.5 centavos per share. The comparable profit before depreciation can be estimated at about Pl,900,000 or nearly 19 centavos a share. This, however, is only a portion of the future possibilities for this company. If San Mauricio can maintain a production of P500.000 a month, it can be estimated that the net profit, after depreciation, for a twelve month period, or one year, will be P3,540,000 before the Marsman & Com pany profit participation, and P3,236,000 after the Marsman & Company profit par ticipation. The comparable net profit be fore depreciation and after the profit par ticipation would amount to 1’3,475,000. The per share net profit then, before de preciation, but after the profit participa tion would be equal to 34.75 centavos per share and 32.36 centavos per share after all charges. DEVELOPMENT: San Mauricio’s ex tensive expansion program was virtually completed in the first five months of this year. Since that time capitalized expendi tures for capital development and additions and improvements to mill and equipment has been averaging about P25,000 a month. With the continuation of this figure ap proximately P300.000 a year, an amount al most equal to the depreciation charge can be expected to be spent on capital improve ments. Therefore, it can be estimated that a bulk of the net profits, after all charges, as described above, can be utilized for im proving the current position. DIVIDENDS: Up to the present time San Mauricio has only paid one dividend— 4 centavos a share at the end of 1936. Al though no dividend action has been taken as yet, it would appear reasonable to pre sume that a resumption and a continuation of dividend payments can be expected in the very near future. As was pointed out above, San Mauricio’s current assets on October 31st exceeded current liabilities by approximately P210,000. As a result of estimated profits for November and December, this amount should be improved by approximately P580,000, bringing the net current position on November 31st to P790.000. To this must be added the P89.000 receivable this month from stockholders. With a net current asset position of ap proximately P879.000 it would seem reason able to presume that, should the Board so desire, a dividend of 5 centavos or P500.000 should be paid at that time. (Since this was written a 5-centavo dividend was de clared). If the estimate for a 12-month period earning power holds true next year, the company could pay as high as 30 centa vos a share in dividends, but it would seem safer- to presume that the Board will take a more conservative attitude and pay out a smaller portion of the net profits. COMMENT: The above analysis of San Mauricio has been prepared, using as its basis, information which, to the best of our (Please turn to )>ar/e 22) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION I HE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 The Stock Market (November I llh to December 8th) Hugh Robertson Ovejero & Hall November 11th to November 17th, inclusive: After six consecutive weeks of advance, a technical correc tion set in. The high point of the rise was recorded on November 11th with the averages reaching 111.42, and the volume of transactions on that day since May 25th, 1937. Considerable profit-taking was in evidence during the balance of the week, which closed with the index at 105.31 for a net loss of 5.60. The aggregate volume dur ing the four successive sessions of decline totalled rather less than P4 million, whereas the volume during the previous four sessions of advance exceeded the P6*/2 million mark. The only stock to move against the trend was San Mauricio which gained six points over the period to close at Pl.76. Mindanao Mother Lode held its ground to close unchanged at 111/2- With these exceptions, losses were more or less uniform through out the list, except in the case of Atok which lost 4^2 points to close at 26. The reason for’ this slump was not clear but it was to some extent pre cipitated by the switching of sizeable blocks of this stock into Big Wedge. On November 14th, in a letter to stockholders, the President of San Mauricio gave a report on the pro gress and prospects of the company. It was stated that this company’s ore reserves as at the end of the year, should approximate three years sup ply with an average value of P50.00 per ton. Total operating costs had been reduced to P21.39 per ton which would leave a margin of profit of P28.61 per ton. At the present monthly capacity of 9,000 to 10,000 tons, a monthly profit of approxi mately 21 o centavos per share should be maintained. The foregoing is yet another ex ample of the great potentialities of the Philippine Gold Mining industry, and credit is due the management for the genuine progress accomplished during the past year. November 18th to November 2 ’tth, inclusive: The week opened with a vigorous rally on Friday when the extensive losses of the previous day were fully recouped. Subsequently, interest was lacking and the market velopments have probably been the major reason for the continuation of the downward drift. However, there appeared necessity for further drifted slowly downwards on great ly reduced volume. The averages closing at 104.92 for a net loss of .39. Less favorable foreign political de Earnshaws flocks & Honolulu 'dlrnn fForta 60-118 SECOND STREET, (P. O. BOX 282) MANILA, PHILIPPINE ISLANDS Il BROADWAY. NEW YORK, N Y Ingersoll- 350 BRANNAN ST , SAN FRANCISCO /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE JOURNAL 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1938 consolidation of recent gains, while Public Holidays this month also tend ed to keep traders on the sidelines. The only stocks to successfully com bat the easiness were Itogon and San Mauricio. The former closing at 21J/2 up */> on unconfirmed rumors that a new vein carrying good values had been cut; San Mauricio closed the week unchanged at Pl.76. November 25th to December 1st, inclusive: During a short week’s trading, the line of least resistance proved to be upwards and a gain of 2.26 was recorded, the index closing at 107.18 on the lightest volume for some six weeks. Individual price movements were small and neither buyers and sellers showed much dis position to operate. During the pe riod, it became increasingly clear that a further period of consolidation would be required prior to a resump tion of the main upward trend, al though it appeared unlikely that much of a decline would materialize unless European conditions should deteriorate further. The widest gain during the week was made by Mambulao Consolidated which rose 3 points to 17on good development results. United Paracale was also strong, closing at 51. An tamok, Coco Grove and Demonstra tion moved meaninglessly against the trend each losing >/2 point in quiet trading. December 2nd to December 8th, inclusive: Although the market as a whole was somewhat more active, ac tual price changes in the leaders have been small. Over the period the aver ages showed a gain of 1.53 the in dex closing at 108.71 and are, thus, within striking distance of the previ ous resistance level. It would appear that equities of the leading producers are passing through a period of ex tended consolidation. Neither the numerous dividend announcements, nor the favorable production figures for November aroused any particular enthusiasm on the buying side. On the other hand, the recent severe drop in domestic sugar futures on the New York Coffee & Sugar Exchange, following the announcement of 1939 quotas, was almost completely ig nored by the market, and this must be considered favorably. The feature of the week has been the revival of interest in issues which have been neglected for a long period, and which have been quoted at nom inal prices. The advances recorded have been due to improved develop ment results; also that most of these issues have possibly been quoted at less than their intrinsic value. It is a sign of increasing public interest in the market as a whole, however, and indicates a definite revival of speculative interest. In the investment issues, Antamok and Benguet Consolidated have prov ed to be the leaders, the former gain ing 2*2 to close at 49>2 on the ex pectation that favorable development news will be released shortly. The 50f dividend announcement by Ben guet met with approval, and strong buying raised the bid to P13.30, for a gain of 40f. In the other issues, Crown Mines staged a meteoric ad vance from .01’2 to .04 apparently on the belief that the recent new dis coveries at Demonstration run into Crown ground outside the “city li mits”, thereby increasing the possi bility of some agreement with De monstration to work these claims. East Mindanao, Gumaus Goldfields and Northern Mining all turned ac tive and registered good advances. In retrospect, the action of the market over the past month has been encouraging. A decline of 2.20 points in the averages following a rise dur ing the previous month of 23.57 points must be construed favorably from a technical standpoint. While it should not be overlooked that the reaction has possibly not yet have run its course, there appears at the (Please turn to page 22) DEPENDABLE MARINE & STATIONARY DIESEL DU PONT MOTOREN-WERKE MANNHEIM A.-G. VORM. BENZ ABT. STAT. MOTORENBAU MWM PATENT BENZ TYPE RII 326 SU—140 IIP T YPE 11SII 326 SU—200 IIP Sole Agents C. ILLIES & Co., INC. 550-556 San Luis, Manila Tel: 5-69-89 DYNAMITE CAPS FUSE Stocks in Manila for Immediate Shipment Indent Orders Accepted for Future Delivery SMITH, BELL Co .,Ltd. Agents Cebu — MANILA — Iloilo Cagayan de Misamis IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 19 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 2\ New York Stock Market (December I Oth) By Glendon B. Loveles Ovejero & Hall The principal question at the pre sent time is whether or not indus trial production, if it continues to mount at as sharp a rate during the immediate future as is presently in dicated, will not outstrip consump tion. If such is the case, some mo derate recession in business activity may be witnessed. Whether the current setback in the security market reflects a possible slackening off of industrial produc tion or whether it represents mild fear over new European develop ments, is a question difficult to answer. In either case, it appears quite certain, from the market’s ac tion, that no great apprehension exists in the minds of investors over the ultimate outcome of the latter. Normally, the market between Thanksgiving and Christmas is called upon to absorb a fair amount of liquidation for tax purposes, and this fact has no doubt contributed its share to the current mild recession. In last month’s article, attention was directed to the danger of con tinued industrial recovery at the pace witnessed during the past seven months and the current flattening out of the business activity curve is considered favorable in that it re presents digestion’ and consolidation of previous gains and will, no doubt, ultimately provide a basis from which the general upward trend of business activity will emerge. Recently, some apprehension has been expressed over the possible de flationary effect on the national eco nomy of the striking political gains of the Republican party in the Nov ember elections. However, it is hardly likely that the Republicans (even if they had a Senate and House majority which they have not) would dare (politically or economically) to curtail present spending plans. What reasonably can be expected, possibly, is that the spending authority of the President will be curtailed and Con gress will make its own allocations of public work and relief funds. In any event, the peak of deficit spend ing will probably not be reached un til late spring or early summer and there will be sufficient time to re appraise the situation, from a mar ket standpoint, prior to that time. Definite lessening of apprehension over the foreign situation would pro bably result in a resumption of ral lying tendencies which meantime, however, may be confined to mode rate proportions. The modern world has grown so small that the development of a dy namic bull market in America pre supposes an accompanying improve ment in other world centers. Serious consideration must be given at this time, therefore, to a major factor which may contribute to general un certainty in world security markets, namely, the very uninspiring action THE TEXROPE DRIVE NEW DEVELOPMENTS “HEX TEX” THE EARNSHAWS HOCKS « HONOLULU IRON WORKS 60-118 Second Street, Port Area P. 0. Box 282 Manila, P. I. Branch Offices: Tel. 2-32-13 Bacolod, Occ. Neg:. Cebu, Cebu of prices on the London Stock Ex change and the attendant implica tions of its failure to respond to the spectacular improvement in the American economy and to the appar ently improved political and econo mical developments at home. The week of April 2nd, 1938, marked the low for American security prices as measured by the Dow-J ones indus trial-average which at that time stood at approximately 103. At the same time, the London Financial Times average closed the week at approxi mately 104. Today, thirty-five weeks later, the American average has risen over 44 points, while the London IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 38 market has declined, hovering peril ously close to new low ground. Technically, the New York mar ket appears to be gathering strength, and ominous news dispatches from abroad have so far failed to shake OVEJERO & HALL STOCK, COMMODITY & EXCHANGE BROKERS MEMBERS MANILA STOCK EXCHANGE NATIONAL PRODUCE EXCHANGE NEW YORK COFFEE & SUGAR EXCHANGE 6th Floor, Wilson Building Juan Luna, Manila Tel. 2-10-51 Cable Address OVERALL, Manila out any appreciable amount of stock. Seasonally, a rise can ordinarily be anticipated during the early months of the year and present market ac tion justifies the belief, barring un expected adverse developments abroad, that higher prices may be seen within the reasonably near fu ture. Overlooking, therefore, a fur ther period of indecision and irregu larity during coming weeks, the longer term outlook currently is for a continuation of the recovery cycle. A Timely . . . (Continued from page 18) knowledge, reflects to a great extent con ditions as they now exist at the mine. We realize that mining at best is a hazardous venture and these estimates may prove ex tremely optimistic as present future pros pects become history. On the other hand, we believe that there is sufficient reason to presume that instead of these estimates proving exceedingly optimistic they may very well exceedingly conservative. For this reason; the progress of San Mauricio over the next few months should be watched closely in order to fully participate in any change in market price, which will only be reflection of actual operations and condi tions as they exist at the mine. The Stock . . . (Continued from page 20) moment no reason why any parti cular weakness should develop pro viding world conditions remain about unchanged. In assessing the possibil ity of a reaction it is well to bear in mind that although the averages have staged a considerable percentage ad vance this has been largely accounted for by wide gains in only a few indi vidual issues. As these are apparent ly fully justified, in almost all cases, the market may not be in as vulner able a position as might be expected after such a sustained upward move ment. The likelihood of any runaway rise appears to be equally slim. Local and world conditions are not ripe for such a movement, however, it would appear that the present healthy con dition of the majority of the produ cers, and near producers, coupled with the increasing dividend dis bursements, would bring confidence and money enough to support a price structure irregularly higher than that to which we are now becoming accustomed and could lead to a some what more active market early next year. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE .JOURNAL December. 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 What the Diggers Are Doing SORIANO: International Engineering — Ba tong Buhay: On November 22nd, stockholders of Batong Buhay ap proved the terms of an agreement entered into by their board of direc tors with International Engineering Corp., a Soriano management com pany, whereby the latter undertakes the development of the claims in Kalinga, and the erection of a mill. The agreement requires an increase in the capital stock of Batong Buhay by 100,000,000 shares, (P0.01 par), giv ing shareholders the right to subs cribe to 40,000,000 of the increase at par, and International Engineering or its nominees subscription rights to an equal number. The remaining 20,000,000 shares are optioned to the management company or its nomi nees until December, 1939. The agreement further provides for the payment to the Soriano company of a monthly management fee of Pl,000 until the mill starts operation, and P2,500 monthly after that. In add ition, International Engineering will receive 5% of the operating profits. The Securities and Exchange Com mission having approved this in crease in capital stock, transfer books of the Batong Buhay Mining Com pany were closed from the close of business on Saturday, December 10th, through Monday, December 12th, and stockholders at the close of business December 10th were en titled to subscribe for 4000 new shares at one centavo for each 10,000 shares held. They have until January 14th to pay 1% on the subs criptions to the new stock, the bal ance being payable within six months. Shares sold “ex-rights” be ginning December 9th. Paracale Gold—International En gineering: “It is understood” that International Engineering Corp, is now’ furnishing a full-time engineer to supervise development work on the claims of the Paracale Gold Min ing Company, Inc., and that an un derstanding exists that if, in the opinion of the Soriano company, the property warrants a large amount of development work, International Engineering will undertake the job, and w’ill have the first opportunity of financing. Production: During the month of No vember, the three Soriano gold producers, Antamok, IXL and Masbate Consolidated, turned out a total of P983,457.81 from 101,912 tons of ore. These figures are be low the production figures for October. REDUCING THE RISK The w'ord corporate security is a misnomer. It should be corporate risk. Every investment is a risk w’hich is constantly exposed not only to the effects of social, economic and mo netary changes, few’ of w’hich can be forseen, but also to inter-company operations and activities. No in vestor can ever protect himself against all risks inherent to the ownership of securities. But it is possible, even in these uncertain times, to minimize the risk by following a flexible investment plan adopted to your individual objectives. Reducing the risks can be accomplished by basing each original investment decision on complete, accurate and up to the minute information. This principle must not be confined only to original purchases but should be used periodcally in making “realistic reappraisals” of your portfolio. Merely to keep abreast of events and individual company operations, to separate rumors from facts and to arrive at intrinsic values in the present markets is more than a full-time job. To separate those secur ities w’hich have discounted future possibilities from those which have the greatest opportunity for sound appreciation is beyond the capacity of the individual investor. To minimize successfully one’s investment risks means monthly, daily and even hourly reappraisal of in vestment values. This is a job that Hess & Zeitlin, inc. is equipped for and that it is now doing for many individual and corporate investors. How’ can we be of service to you? It is impossible to tell unless w’e have the opportunity of examining your holdings and studying them in the light of your individual requirements. We welcome the opportunity to be of service to you—your inquiry w’ill be held in strict confidence and will involve no obligation. ZEITLIN^ “SPECIALISTS IN PHILIPPINE SECURITIES” /X KESPOND/NG TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 Soriano Returns: Andres Soriano, heal of the Soriano business interests, returned this month from a combined business and pleasure trip to the United States and Eu rope. It is understood that he continued negotiations initiated sometime ago, for the listing of I X L stock on the board of the San Francisco Stock Exchange. It is planned to follow this listing with that of the Antamok Masbate Consolidated shares. MARSMAN: Dividends: Marsman Investments, Ltd., top holding company of the Marsman or ganization, declared an interim dividend of 7-1/2 percent last month. The dividend, paid on December 15th, amounted to £37,500, or approximately P375.000 for the 1,000,000 shares outstanding. Meanwhile, Marsman and Company, Inc., DAWSON WHISKY which acts as an operating, financing and holding company, declared its regular P5 per share dividend, which was paid on December 1st. San Mauricio, which had not paid a div idend since soon after the mine commenced production, declared a 50% (based on par value) dividend. On the same day—No vember 28th—the boards of directors of Coco Grove and United Paracale met and declared dividend payments, of two cen tavos each per share. The Coco Grove dividend, which was paid on December 16th, is the first yet de clared. The United Paracale money was distributed on December 13th, and brought total dividends for 1938 to 5 centavos per share. Aggregate money distributed by these three producing mines is slightly more than Pl,000,000, with Suyoc Consolidated un heard from as we went to press. It was expected that Suyoc would declare at least 1/2 centavo per share, and possibly as much as one centavo. HAUSSERMANN: Consolidated Mines: Hess and Zeitlin’s market letter of December 10th contained the following paragraph: “Reflecting confidence in the future of the Masinloc chromite operation, Judge John W. Haussermann, this morning by telephone from Washington, D. C., ap proved a modification of the Benguct Consolidated Mines contract, enabling Consolidated Mines to participate im mediately to the extent of 10% in the earnings from the operation of the property, 50% participation to follow as soon as Benguet has been ful ly reimbursed for its expenditures. A. F. Duggleby, of the Benguet Consoli dated Mining Co., announced further this morning that cables just re ceived from General Refractories Corp., opening negotiations for the immediate resumption of orders of Masinloc ore indicated improved industrial conditions in the United States, particularly in the steel industry, curtailment of which dur ing the depression forced a suspension of Masinloc shipments. These inquiries mentioned an immediate shipment of 2,000 tons, and purchase of 10,000 to 15.000 tons during the coming year. Here tofore, there has been no European out let for Philippine chromite because of prohibitive freight rates to European ports. Such rates, however, have just been reduced to the point where Phil ippine chromite can successfully com pete with other ores, and, resulting from the lively' interest evinced by European customers in Masinloc ore, negotiations are now under way to supply' the full chromite requirements of such consu mers in the manufacture of refrac tories.” Dividends: Benguet Consolidated this month declared two fourth-quarter divi dends. Besides the regular dividend of P0.30 per share, Benguet paid an extra Christmas present of P0.20. The divi dend was paid on December 20th, to stock holders of record as of the 9th. The action brought 1938 dividends to Pl.40, compared with Pl last year. Balatoc paid P0.20 per share this month, bringing its total dividends to Pl. 10 per share, compared with an even Pl last year. Ipo Gold Mines declared a fourth quarter dividend of P0.005 per share, bringing the 1938 total to P0.016. Last year Ipo paid a total of P0.015 per share, and also de clared a 3% stock dividend. NIELSON: Lepanto: This copper producer turned out P132.920 from 12,770 tons, an average copper-gold recovery of Pl0.41 per ton, and a new all-time record for the mine. Total production for the first eleven months of 1938 amounts to P329.376. During NovemWITH ANY MINERAL, IS THE SAFEST AND MOST SUITABLE BEVERAGE IN THE EAST Liguan Coal Mines ^AfahionaL ^J-Aockiat Yx Peter Dawson SKOAL SCOTCH WHISKY 3MITH,BELU( CQLTD. SOLE DlSTkiawTOM Mineij at: Liguan Albay Head Office: 315 National City Bank Bldg. Manila Tel. 2-22-93 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OE COMMERCE. JOURNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL her, the mill produced 1,318 tons of con centrates. Mill heads averaged 2.95 per cent copper, Pl.61 gold, and 0.67 ounces of silver per ton. Copper extraction averaged 87.11 percent, while gold and silver aver aged 83.4 and 79.6 percent, respectively. The average grade of concentrate assayed 24.9 percent copper, 0.186 ounces of gold, and 5.167 ounces of silver. It was stated that the increase in pro duction was due to uncovering higher-grade ore, plus increased milling efficiency. Lepanto had pretty rough going until this year. At one time, at least, it was thought that it would be necessary to aban don the property, since it was known that the gold on the claims was low-grade, and th«» copper was no better. Benguet Consoli dated abandoned all effort to develop the property, Mr. A. F. Duggleby having a poor opinion of any copper property. How ever, after the Nielson contract was made, new discoveries of higher-grade ore, and the signing of a contract with Japanese buyers for the copper out-put apparently solved Lepanto’s troubles. Hixbar: This latest Nielson acquisition produced P98,060 from 2,810 tons of cop per ore mined during the months of Sep tember, October and November, it was an nounced. Work has been progressing on the property for the past three months, but no publicity was released until a con tract was signed for the sale of the ore. It was stated by officials of Nielson and Company that a road is being built on the property, which will make it possible to mine and transport approximately 3000 tons a month “at a conservative estimate”. Ore at Hixbar is said to average around 10'/? copper, and is shipped direct to the smelter without milling or other treatment. Paracale Guniaus: Treated 3,029 tons of ore during November, for a gross oper ating revenue of P54,047.22 in gold bullion and concentrates. Although average re covery was somewhat above that of October, total production fell off some P3000, due, it was said, to the fact that a larger amount of hard rock was sent to the mill, and the grinding capacity thereby reduced. Hongkong Mines, Ltd.: Has produced P470,495.98 worth of lead and silver con centrates, for the first eleven months of this year. Production for November was about P4000 less than that for the previous month, due to lower mill heads, but it was anticipated that December should register an increase, since the mill capacity is be ing raised to 175 tons daily from 125 tons. Selinsing: The second Nielson and Com pany property outside of the Philippines, Selinsing will go into production in Jan uary of next year, it was announced re cently. Construction work began in July, and has progressed steadily, under very difficult conditions of transportation and labor. Supplies, for example, have to be brought in over twelve miles of river, in which there are a number of rapids, mak ing it impossible to haul more than three tons in the shallow-draft boats which must be used. All large pieces of equipment must be sectionalized. Trucks carry equip ment and supplies four miles from the un loading station to the mine. The ore, how ever, is said to be very nearly free mill ing, and the mill will, therefore, be quite simple. The milling process will consist of a grinding unit, jigs, and flotation cells. The mill building was completed last month. Tinago Consolidated: No details were available as to progress of operations on this property as we went to press. This Girl . . . (Continued from page 12) absence. Ruth was a Moabitess, no Jewess, but a girl from out of town, who had been Choose INTERNATIONALS for HEAVY-DUTY PERFORMANCE Heavy-duty performance. . . digging and smashing their way through tough terrain with bullgrader or giant ripper. . . International TracTracTors get the tough jobs because they are built for them. From radiator to drawbar they are de signed for industrial needs. International Harvester builds ten industrial tractors— five wheel types and five crawler types—for operation on kerosene and Diesel fuel. The wide range of types and sizes in this famous line meet every tractor requirement. A long list of equipment built around these tractors further increases their usefulness. Write for catalogues and complete information. INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES CEBU MANILA DAVAO ILOILO BAGUIO BACOLOD CAGAYAN, OR. MIS. LEGASPI around. Ruth had no hay in her ears. Naomi was prudent, the hardest circum stances upset her only momentarily. Ruth liked this competence, and tended to rely on it. And Naomi chose as the season for arriving back in Bethlehem-Judah, the harvest season when the men would be cutting the barley. Her relatives would be among these men, especially Boaz. It was a long trek, around the sea, and Naomi no doubt told Ruth a good deal about her cousin german Boaz as they whiled away the miles together and rested at the vil lages. The two women would have little enough on which to live when they reached journey’s-end, but Ruth might glean with the harvesters and perhaps some luck would turn up. /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. Ruth promised to be in every way adapt able, and Naomi never feared but that they would get on somehow. So as soon as they were back in Beth lehem-Judah and settled, Ruth went glean ing, as well as to find favor in some man’s eyes, and as was but the most casual for tune, unless we think that women some times think twice, she happened to glean in that portion of the field that belonged to Boaz. She had brought cosmetics with her from home, and did not despise their use merely because she was a widow—quite the contrary. So now, she did not just put the breakfast vessels to soak, grab a ker chief, kilt her skirts, and go among the other gleaners a slattern and a stranger. She kilted her skirts, as the nature of the work suggested, but otherwise, on this first occasion that Naomi’s people would see her, and Boaz most of all, she looked her pret tiest; and her manner as a gleaner was de mure, shy, wholly disarming. Boaz came along, when the harvesters stopped for lunch, and fell for Ruth right away, giving his foreman the wink and asking who she was. This gave Ruth a break. She curtsied becomingly to Boaz, dubbing herself his handmaiden, as it was but good manners to do, and letting it escape her that there might be kinship in law between them by reason of her being the widow of one of Naomi’s sons. From her knees, as she chattered away in her charming Moabittish accent, she lifted a gaze to the old man’s that was more than admiring, and they spent the noon together without Ruth’s no ticing any of the younger men at all. He told her she could call him uncle, and blushingly she lisped the unfamiliar title, ==Tel. 2-32-51=--------------Carmelo & Bauermann, Inc. I--------------------------- Lith ogra phers Printers Bookbi nders Box Makers 2057 Azcarraga, Manila. w:th a roguish glance that seemed to imply it should be no barrier to their cordiality. With such a whimsical damsel at his feet, Boaz was bewitched. The harvesters had bread and sour wine for their lunch, but Boaz had parched corn in addition. This corn he shared with Ruth, and told her just to help herself, during the afternoon, to the wine and loaves whenever she should be hungry or thirsty; they were for the harvesters but could be for her too. Ruth thanked Boaz tenderly, and made out to him that she thought him the finest man she had ever met—as was possibly true—and at least we can surmise that Ruth was grateful for the way her day was turning out, the friendly welcome to her by Boaz and his farmers. When she gleaned in the after noon, Boaz told the men to let her go even among the sheaves, and to let handfuls of barley fall as they cut it, so when Ruth went back to Naomi with the tale of her wonderful day to relate, and to talk over, she had a full ephah of barley—2 pecks and quarts—besides Boaz’s invitation that she do all her gleaning in his field only. Naomi liked this, things were indeed coming along as she- might wish. But let us stop to say here that gleaning laws were clear among the Jews, in benefit of widows and orphans and the poor, and that also, corners of fields could not be cut clean but had to be left to the gleaners, together with any sheaves that might be forgotten or overlooked as the harvesters quit for the night. Wisdom told Naomi that Boaz was stricken of love for Ruth, and would sure ly marry the girl if all cards were care fully played. £ The threshing was next to be done, a rite that the men performed alone at the threshing floors in the barns. Boaz had such a barn, and Boaz would surely be there late with the threshers, and probably sleep there with them and supervise the weighing and dividing of the grain. Here Ruth could go to Boaz, though women were not expected to do such things. So Ruth went, at Naomi’s suggestion as well as by her own willingness to marry again, and as Boaz slept, she raised the skirt of his robe and slept at his feet; and there was incense on her hair, that flowed about her as a garment, and all but in the in nocent arms of Boaz, she dreamed the dreams of virtuous motherhood. But by midnight, as the old man turned about in his sleep, she had wakened him and he had learned who she was. Then they whis pered the rest of the night away, making sentimental plans, and with more barley for Naomi, Ruth got away in the morning before the hands woke up. Boaz went immediately to town, for he could not be sure that none had seen the girl in the barn and that he was not some what compromised. He had a name in the community. More law at this point is this: Naomi was a tribal widow beyond re marrying and bearing children. She had land from her late husband Elimelech. Her widowed daughter-in-law, Ruth the Moabitess, was living with her and was marriagable. Men who were blood kin to Eli melech were lawfully bound to buy the land, that it should remain in the family, and the nearest of kin had the refusal of this obligation. With the land went mar riage of Ruth, that the seed of Elimelech should not die; no land, no Ruth; no Ruth, no land. Now there was a fellow who was nearer in blood kinship to Elimelech than Boaz was, but apparently he had never seen Ruth; either that or he was cloddish and knew not a thoroughbred when he saw one. Boaz went at once to the city gate, hailed this fellow as he passed and hailed elders enough to make up a council of legal wit nesses in a suit at law. Then Boaz put it to the fellow straight, was he going to buy Elimelech’s land or not? (Law suits were thus informal and inexpensive then, with witnesses but no lawyers and jurors). The fellow answered Boaz that he might buy the land, he supposed he would buy it; he hadn’t hurried about it, he knew of course that Naomi was back home, and that Elimelech had died among the Moa bites, but he’d been busy with his harvest and hadn’t been around to see her—he took it there was plentv of time. But no, there was not plenty of time, that was just the point at issue—he couldn’t suit his own pleasure in any such manner, and keep de serving widows disappointed. So Boaz said, the elders listening and nodding as sent because Boaz was rich and commanded respect. (Please tarn to page 32) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Pandas from 1 ibet When the editor was 'n Hongkong early in November he went one Sun• lay after church Io the S. F. C. A. station to see these pandas (just as you sec them here) that a rran called Smith was taking to London roe. lire S. P. C. A. woman and her husband were simply doing their best for th» pandas, not approving their captivity. A British woman snapped the pictures, and we‘over took her at the finishing shop and got a set of them as lhe best we had seen—quite too good not to publish. .UP TO FATE COMMERCIAL PPYIEUS Canadian Pacific txk a .* iiliuiit the tun /on fir </</>». i n I ci rn << 11 nt < <l<i>r ami rfHuli </<.»>» Imo Io pottil* in ( amttht. nthl lha I . V t. Canadian Pacific ftOOfCf^t To Seal Roofs Water-TightSherwin-Williams Roof C o a t i nqs Late 1 j > h < ;< > ] 1 > ami inmmi-mi.-fblc eaiii- ma.\ rm.md i la Im' i 11) 11 i i ■< i i a 11 - miH' iv|>air>. Sl’.mm. m-\\ iilmm.- ol'lm^ 1 i i m ■< I mi'il ami l.-.-K'd | > n i< I nd\\ i i h-L w Hi ad \ .• md hmkr’ am ln\\ md : S \\ I'.la.'lic hool’ (’. ■ t i 11 ■ 111. o-W I .uni id hind’ ( lama.: and S-W l-dimml. Pacific Commercial Company December, 1938 7 HE AMERICAN CHAMBER OF COMMERCE JOURNAL Dr. J. H. Landman Urges a Protectorate O We comment elsewhere on Dr. Landman's address +c Filipinos, quoting its gist below.—Ed. “If I were a Filipino, as an intelligent man, I would not urge independence for my country. Instead I would aspire for the status of protectorate like that of Cu ba’s relationship with the United States un der the Cuban treaty of 1934. This treaty abrogated the treaty of Relations of 1903, between the United States and Cuba, which contained the famous Platt Amendment giving the United States the right to inter vene for the protection of Cuba’s indepen dence and financial integrity. “Under the new treaty, the Cubans en joy complete independence in domestic and foreign affairs, except for one naval base over which the United States has absolute sovereignty. The United States by virtue of this treaty base can continue to imple ment her Caribbean Policy. This treaty has also made it possible for Cuba and the Uni ted States to enter into tariff and military agreements for mutual advantages. “In addition to this, Cuba is protected by the Franklin D. Roosevelt corollary to the Monroe Doctrine which grew out of the Pan-American Conference of 1933 by which the matter of maintaining peace and order in the Latin-American countries devolves upon all of them including the United Sta tes, jointly. Landman’s Plan “My suggested plan for the Philippines parallels the provisions of the Cuban Trea ty except that several naval bases and mi litary posts may be substituted for the one naval base; the American Far Eastern pol icy for the Caribbean policy; and the open door policy and the Nine Power Treaties of 1922 for the Franklin D. Roosevelt Corol lary. “Absolute independence would mean that the Filipinos would have to make the sacrifice of a much lower standard of liv ing comparable to the one now prevalent in the Orient and to face the menace of Ja panese aggrandizement. In order to com pete in the world markets Philippine pro ducts would have to be produced with cheap labor which would entail disease, fewer educational opportunities and lower living standards. “Freed from American imperialism, the Philippines would then be confronted with the menace of Japanese autarchic impe rialism. The Philippines are just as attrac tive to Japan as China is , because the Phil ippines would be an excellent source of raw materials needed by Japan for her indus tries, while China would furnish the huge market in which to sell the products of Ja pan’s industrial machines. “The Filipinos appear to exaggerate the virtues of freedom and independence. Na tionalism and patriotism are intellectual and emotional diseases and blind a people to the realities of life. The Filipinos are not alone in this. The Irish, the Egyptians and the Hindus are troubled with the same disease and are suffering economic suicide as a result. As a Filipino, I too would be very much concerned about the success of my new government because of, first, the poor qualifications of the electorate; sec ondly, the absence of a middle class since Philippine trade today is monopolized by Chinese, Japanese .and Americans; and thirdly, the diversity of religious, linguistic and racial groups. Independence Is Relative “The status of the protectorate would continue to give the Philippines the cul tural, economic and military blessings which the United States have accorded them without the Filipinos losing much of their internal political independence. In dependence is after all only a relative term. Examine the map of the world. How many countries are absolutely independent poli tically and economically? I have the great est admiration for Filipinos who want ab solute independence for their country, but I believe Filipinos who demand indepen dence for the country, no matter what the consequences may be, are foolhardy. “I urge strongly that the Philippine lead ers request of the United Congress that it grant the Philippines the same status as that of Cuba for an. indefinite time. This will enable the Philippines to prepare it self more adequately for independence. It will have more time to build up its mili tary and naval organizations. It will be able to educate its people more thoroughly in the science of government so that they might enjoy democratic government and prevent the economic and political domina tion of the 1,000 Philippine families who now exploit their own people. It will give the Philippine Islands greater opportunity to diversify their economic life and develop their own middle class. Lastly, it will help to eradicate Philippine provincialism and social stratification based on race, language and religion which are defects in any na tional body. Must Take Initiative “Philippine leaders must take the initia tive and make such a formal request of Congress in January. The American peo ple and Congress will not take the initia tive. I strongly urge that the request be made soon, or it might be too late. “Since the American people and Congress are hostile to the thought of perpetuating United States rule over the Philippines, I recommended that when the Philippine leaders petition Congress for a continuous protectorate status, they offer as induce ment to increase the tariff wall to exclude the trade of other countries, particularly, that of Japan, which was as much as $12,171,000 in 1935, so as to assure American exporters of a greater Philippine market. This would tend fo convert the AmericanPhilippine unfavorable balance of trade for the United States into a favorable one. “An unfavorable balance of trade for the United States with the Philippines would be justified in event the Philippines sold goods to the United States which the United States lacks and are indispensable for the economic welfare of the United States, but the conditions do not exist. Se condly, the Philippine leaders ought to make Congress and the American public conscious of the role of the United States in the Far East and the significance of the strategic location of the Philippine Islands in the Pacific. The Military Value “Through the Philippines as such are a financial liability to the people of the Unit ed States, they ought to realize and can be convinced of the military and naval value of the Philippines in America’s Far East ern Policy. No isolationist program on the part of the United States will permit the United States to escape being embroiled in the affairs of the Pacific. “In the near future the Far East will be the scene of great economic, industrial, political, social and imperialistic changes which will be so universal in their influence that the welfare of all civilized peoples will be involved. The Philippines will then be in the cross-fires of imperialist conflicts in the Pacific. The great nations will soon throw themselves into another world war to capture the markets and raw materials of the Orient. “The enormous profitable market of China with 450,000,000 customers and the vital raw materials of rubber, tin, vegetable oils, sugar and tropical fibers in British Malaya, the Dutch East Indies and the Philippines will be the stakes of this war. The Philippines lie athwart all the prin cipal trade and aerial routes of the Pacific. Its strategic location would enable the Unit ed States to use it as a military and naval base, when properly fortified, to enforce its Far Eastern program whether it be the Open Door Policy in China or an effort to halt Japanese expansionism in Asia or whatever policy we may have in the Far East.” EXPERIENCED AMERICAN Desires position. General bookkeeping and accounting; mine accounting; construction work. Age 27; Married. Best references. Write to B. Y. c o this magazine. Box 1638 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 Golf in the . . . (Continued from page 9) as Mervin Simpson, Jr., “Bob” Mason, Allison Gibbs, Jr., John R. McFie, Colonel R. K. Sutherland, Frank Chalmers, “Tommy” Aplin and A. C. Hall, — Wack Wack is coming up, with “Johnny” and Celso Tuason, Judge Albert, “Johnny” Cuadrado, and others. Many golfers belong to both organizations, and play on both courses. Rivalry is naturally keen, and many wordy battles have been waged at the 19th hole on the question, “how much tougher a course is Wack Wack than Caloccan”? A possible source of ill-feeling was neatly removed in 1935, when it was agreed that the Manila Golf Club would thenceforth have the Philippine Ama teur Championship Tournament, and Wack Wack would play host at the Open. The Open Tournament did not amount to very much until last year- They used to offer small prizes—P50.00 or so—and most of the entrants were, as usual, Ma nila Golf Club players. Larry Montes used to turn out regularly, more for the publicity than anything else. Larry won the title in 1929, ’31, ’32, ’36 and ’37, and it began to look as though the boy would be an easy win ner of every tournament. But, then, Bill Shaw got to thinking again. And he talked to Henry Belden, and got him to thinking, too. Something was bound to happen, and it did—a big, bangup 1938 Open, with four champions entered, and enough near-champions to provide the crowd with a thrilling battle which ended only with Norman Von Nida’s blaz ing 69 on the last day. Now, to attract golf professionals to a tournament takes just one thing—money. At least PIO,000 was needed in cash prizes, and Belden started out to pass the hat. It was not long before he discovered that people were reluctant to donate to the kitty when it looked as though Montes would have no competition for the first prize. “What is the use of putting up a big prize for Larry Montes to win?” was what Belden heard every where. Good players, who could give Montes a run for his money, were desperately needed. Of course, invitations were sent to well-known professionals in the United States and elsewhere, but the first response was dis couraging, for, while the Japanese signed with a will, the Americans held off. Hagen and Kirkwood went on a hunting trip to Africa. Sarazen, then in the course of a world tour, thought at first that he would enter, but later found that he could not work the event.into his itinerary. As tee-off day drew near, it began to look as though the Open Championship would be fought out between the Japanese aces, Tim Kanrai, Siamese cham pion, and Larry Montes. Then one day when things looked blackest, Belden got a cable from Australia, signed, “Norman Von Ni da”, asking for details. Von Nida had read about the tournament in “Golf in Australia”, a sporting journal, and had become interested. Belden answered at once, and the Australian champion entered the competition. It was a big break for the committee, for the colorful Aus tralian, as much as anyone else, made the tournament a success. With these entrants to offer, the money was’ final ly raised. As everyone knows, Von Nida, after trailing far behind for the first two days of play, burned up the course on the last day to nose out Chin Sesui, Japanese title holder, by two strokes. Behind the runner-up came two Japanese, while Larry Montes, who had led the field for the first 36 holes, blew up on the last round J. A. MACKAY First President, Manila Golf Club to finish fifth. Hugh Robertson and “Tommy” Aplin, both of the Manila Golf Club, were first and second among the amateurs. These men will all be in there next January, and this field, with the addition of Montague and the others, guarantees an Open Competition of a calibre equal to similar events everywhere. The Committee now envi sions nothing less than a Far Eastern Circuit, embrac ing Open Tournaments in Japan, Siam, Australia, India, the Straits Settlements, and Manila. The tournaments would be held during the Fall and Winter—off-season for golf in the States—and would provide world-fame professionals with lucrative endeavor during these months. Sarazen has expressed himself publicly in fa vor of the scheme, and much work is now being done behind the scenes to bring it about. It is a far cry from that first little group of En glishmen stroking happily away on their seven-hole that Major Carbaugh was a fair golfer, tying for third place with Warren Kennedy in the first Handicap Tour nament. The competitors in that first tournament, held on February 28, 1903, negotiated the seven-hole Pasay course twice, and the Carbaugh-Kennedy tie was played off at the fifteenth hole. By 1905, membership in the Manila Golf Club had grown to such an extent that the seven-hole course at Pasay was no longer satisfactory. Accordingly, in 1906, a nine-hole course was constructed out at Caloocan, and the Club transferred its activities there. In 1909, the land occupied by the golf course was purchased. December. 19 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL with an option on enough adjoining ground to construct an additional nine holes. In that same year, the Club was incorporated. The Manila Golf Club dominated—and very nearly monopolized—the golfing picture in the Philippines for many years. While no Open Tournament was held un til 1913, the annual Club Championship was the precise equivalent, since the best golfers in the country belonged to the Club and took part in the competition. This be ing so, when, in 1913, the Manila Golf Club sponsored an Open Championship with everybody welcome, the si tuation was but little changed, for the winner of the Open always turned out to be a Club member. “Bob” Mason won the title in 1913, and repeated in 1914, 1918, 1921 and 1927. J. C. McGregor took the title in 1919 and 1920, and title-holders of other years, such as G. M. Ivory, E. A. Noyes, Capt. J. S. Moore, and others were regular mainstays of the Club. But, here and there, good golfers were developing outside of the Club membership. Out on the Municipal Links, for instance, there was a caddy by the name of Larry Montes, who, they said, had the most beautiful swing of any golfer in the country. Rumor had it that the boy could play a shot with a controlled hook on it for extra yardage, which, as every golfer knows, is as difficult to do as it is desirable. Other good players were developing on the little Wack Wack course, near Camp Nichols. William J. Shaw of the Atlantic Gulf & Pacific Go., who acted as president of the Manila Golf Club in 1926, began to think about the situation. And when “Bill” Shaw thinks, something usually happens. The burden of his thoughts was that what golf in this country need ed was another club which could furnish facilities for golfers of every nationality which the Manila Golf Club W. J. SHAW J. R. McFIE Jr. President, Manila Golf Club could not duplicate. He reasoned that such a club would help the game to no end, since it would naturally lead to the development of more good players, and to healthy competition between clubs. Bill began to sound out his legion of friends on the subject. The upshot of the whole thing was that the old-time Wack Wack club was taken over bodily, and entirely re juvenated. A big tract of land was purchased out at (Please turn to page 34) THE GOOD EARTH FOR YOUR CHARMING WIFE AND YOUR LIVE LY TOTS, BUY THE MODEL HOUSE IN THE MANDALOYON LOTS MANDALOYON RANGING IN AREAS ESTATE Tune in on our regular Tuesday night program over station KZRM from 9:00 to 9:30 p.m. P0.90 TO P4.00 FROM 600 TO 4,000 SQUARE METERS AT PRICES FROM ORTIGAS, MADRIGAL Y CIA. S. en C. PILIPINAS BUILDING MANILA TELEPHONE 2-17-62 /.V RES7’()A7)/.VG TO Al)\EHT/SEME.XTi Pl. EASE ME.VEJO.V THE AMEHK A.X CH AM HER OMMERC E JOCRXAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 >8 Philippine Railway Bonds William P. Buckner who was in Manila a year ago trying to get the Commonwealth to buy the defaulted bonds of the Philippine Railway Company is afoul of the Federal government for misuse of the mails in con nection with his effort. It seems he had organized a bondholders committee, made himself its chairman, raised funds among the members and came to Manila proposing that the Assembly approve purchase of the bonds at a figure far above their market price at that time. So far, nothing wrong, but there could be some thing more to the case if something passed in the mails that induced transactions in the bonds under the false encouragement that the Commonwealth really would buy them. Numerous Hollywood movie stars have been cited as witnesses in the Buckner case. Assemblyman Felipe Buencamino, who was Buckner’s lawyer here, has been cited from Manila and will go, President Quezon says, to New York to testify and cooperate in full with the Federal authorities. President Quezon himself is co operating in the case, and has published correspondence showing Buencamino’s position, for a while, as Buck ner’s counsel—a place he gave up after learning that the Commonwealth had no interest in the bonds, would not buy them at any price, nor pay more interest on them. The Hollywood stars are among the bondholders, apparently. The total face of the bonds is P17,098,000. This is the road’s main capital and the bonds are a first mortgage lien against the property. The sum of P10,000,000 common stock was also authorized by Congress. Presumably it was issued, but we learn of no dividends paid on it. The term of 30 years during which the Philippines was obliged to meet interest deficits on the bonds ex pired June 30, 1937. On grounds of it sequity at stake, or the sums it had laid out as bond interest, the Com monwealth then threw the road into bankruptcy by ac tion in the local courts and had E. A. McCreary named receiver. (Mr. McCreary has long been an official of the road, and prior to that was fiscal officer of the Phil ippine government: at one time he was Iloilo’s provin cial treasurer). Main offices of the company are in New York. Directors meet there, including the two who represents the Commonwealth (or is it the Federal govKLEIN Chicago BEST IN THE LONG RUN E. Viegelmann 460 Dasmarinas, Manila, P. I. Tel.: 2-26-64 ernment, or just the Bureau of Insular Affairs as the Commonwealth’s agency, or is it the War Department itself, of which the insular bureau is but a branch, though one that functions as an agency of the Commonwealth?). Bankers Trust, in New York, is the trustee for the bond holders, according to a provision of the bonds. Three years ago the Directors were: Alexander Berger, Pierpont V. Davis, Major General Frank Mc Intyre, Colonel Donald C. McDonald, C. McKay Lewis, George N. Lindsay, Brigadier General Creed C. Cox, John H. Pardee, Cornelius Vanderbilt, and John H. Wat kins. Brigadier General Charles Burnett, now head of the insular bureau vice General Cox who is an adviser at Malacanan to President Quezon, is a recent member of the board in General Cox’s place. Death has taken others from the board, among them Mr. Pardee who was trying to get the Commonwealth to buy the bonds when he was in Manila, about three years ago, as was Genoral McIntyre when he was here about the same time. Governor Frank Murphy turned all such proposi tions down, by his own election as well as by counsel of his advisers and the auditor, J. Weldon Jones who is now Commissioner McNutt’s financial adviser. Presi dent Quezon has followed Murphy’s course, no doubt this has Commissioner McNutt’s sanction though it may be a matter that does not touch his office directly. It is popularly supposed that the Philippines always paid the full interest on the bonds, during the 30-year .term of its obligation to do so if necessary, but this does not square with the figures. Apparently the road earned a good deal of the interest (P683.920 a year), because all the Philippines paid was P12,943,696, while 30 times P683,920 is P20,517,600; the difference or P7,673,904 seems to have been earned and paid by the road. The government’s largest payment was that of 1928, P621,000. A fact to bear in mind is that the road still ope rates; it operates in the Philippines, at the Common wealth’s behest—indeed under its own receivership. Another fact is that some operating profit is now being made. Another is contingent: If Cebu Portland on the Cebu coast builds its own wharf as it probably should do, the Cebu railroad line will not pay and ought to cease operating. But it is possible that this road could be used elsewhere, taken to Panay, for instance, and laid in Antique province as a branch or branches of the Capiz-Iloilo line. Some critics suggest diesels for pow er, as cheaper than steam engines to repair and fuel and operate. A view of all the facts does not persuade us that the bonds have been heard of for the last time. They will, we hazard, keep bobbing up in Philippines politics periodically, and one day the Commonwealth will buy them, or assume some obligation in them. Bitt bear h> mind! This is merely what we think, and we don’t ad vise anybody either to buy or sell on the strength of it. We concede that the government’s present attitude is all against it, as in the past. It’s just a hunch of ours, wholly based in the facts just recited, and in what gov ernments generally end up by doing in similar circums tances. However, when anything is done about these bonds, in view of the current scandal it is a fair guess that it will be done in the open. /.V RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 U- S. Foreign & Domestic Commerce Bureau's November Business Cable Washington, D.C., December 9, 1938 The upward trend of business activity under way since the middle of the year was extended during November. Industrial production rose sharply and the flow of general merchandise into the hands of con sumers recorded an improvement. Further gains in the index of manufacturing out put was reflected primarily by expansion in the steel industry and the rapid increase in automobile production. Steel ingot pro duction advanced to 63 per cent of capacity, although incoming orders for steel have keen somewhat below the current rate of operations and slightly less than in Oc tober. Production of passenger automobiles and commercial vehicles rose to 97,000 units prior to the Thanksgiving week, ex ceeding the comparable output of the same period last year. Production data for other industries gen erally recorded smaller increases than steel and automobiles but the volume of fac tory production has currently moved above the rate of output at this time last year, when industrial production was being cur tailed. However, production in some con sumers goods industries has declined recent ly on a seasonally adjusted basis and, not(Please turn to page 40) TOBACCO REVIEW NOVEMBER, 1938 By P. A. Meyer Rawleaf: The heavy inundation at the end of November did da mage to some seedbeds in Isa bela province. Most of tie 19.38 crop tobacco in Isabela and Ca gayan already being in ware houses, only little damage due to the overflowing of the Rio Grande and its tributaries is anticipated. The local tobacco market re mained dull. Exports showed only a small increase over October. Comparative fig ures for shipments abroad are as follows: Raiclcaf. Stripped Tobacco and Scraps 1,236 72,612 9,745 25 2,884 237,000 1,062 129,665 9,440 463,669 385,356 401,689 Sales City of Manila 1938 REAL ESTATE by p. d. carman boulevard HEIGHTS B 9 November sales were somewhat in excess of the total for the same month of 1937, 1935, 1934, 1932, 1931 and 1930 but lower than in 1936 and 1933. While the record of last year will probably not be reached, the total for 1938 is likely to exceed that of any other year since 1919. October November Sta. Cruz . . P 385,178 P 433,079 Sampaloc . . . 183,392 25,925 Tondo............... 295,504 53,982 Binondo .... 739,277 152,261 San Nicolas ... 273,723 60,750 Ermita .... 79,486 51,730 Malate .... 157,295 84,238 Paco ............... 21,450 83,577 Sta. Ana .... 90,972 30,334 Quiapo .... 24,174 19,000 San Miguel . . 3,984 14,230 Ii.tramuros . . 3,412 80,000 Sta. Mesa . . . 1,570,893 — Pandacan . . . 61,906 10,552 P3,890,646 Pl,099,658 January-November 1938 .... 6,417,309 January-November 1937 .... 12,370,208 Cigars: Shipments to the United States compared as follows: cigars November 1938 ....................... 13,622,108 October 1938 ....................... 16,640,055 November 1937 ....................... 21,965,431 January-November 1938 .... 171,106,230 January-November 1937 .... 173,081,524 LA IWEANA BUILDING AND LOAN ASSOCIATION SUGAR MARKET REPORT FOR NOVEMBER By Warner, Barnes & Co., Ltd. The marketing policy of the Louisiana producers again came into prominence as t. market factor during the first week of the month. Insufficient warehouse space nullified the proposal to ease pressure by putting some of the Louisiana sugar into store and further sales at 2.95c were re corded, while one of the largest refineries contracted for 76,000 tons on the basis of the average weekly price. In consequence, spot sugar declined to 3c while new-crop offerings attracted no attention from buy ers. The Republican gains in the elections on November 8th had a stimulating effect on sugar in sympathy with other markets and a limited business was done during the sec ond week of the month at the parity of 3c. Uncertainty regarding next year’s quotas, however, continued to restrict demand. During the second half of the month, in terest centered principally around rumours of a reduction in the tariff on Cuban sugar, prompted by Colonel Batista’s visit to Washington. A reduction from the present late of 90y to 75c per 100 pounds is still possible under existing Presidential au thority and there was considerable belief that this concession would be made. It was thought that the decrease might bj granted in exchange for the elimination of white sugar exports from Cuba to the U. S., though, at the same time, there were re ports that Peru had lodged a request for a 50% cut in the duty on her sugar, which would automatically achieve the reduction of the Cuban tariff to 75c under Cuba’s treaty preferential of 20%. With these uncertainties, the New York market remained almost continuously in the Australia ................................ Belgium ................. ‘................ China ........................................ France .................................... Holland .................................... North Africa ........................... Straits Settlements ............... United States ......................... Uruguay .................................. November 1938 ....................... October 1938 ........................... November 1937 ..................... 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. P- O. BOX 138 SANTA CRUZ, MANILA „ TEL. 2-18-55 3 . - % IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 32 THE AMERICAN CHAMBER Of- COMMERCE JOURNAL December I Q 33 doldrums until the end of the month, only two brief periods of activity being recorded. The announcement by the A.A.A. on No vember 18th that deliveries for the twelve months ended October 31st, the period on which consumption requirements for 1939 are to be estimated, amounted to 6,392,609 tons was regarded as an encouraging feature; this figure is some 470,000 tons less than that for the corresponding period in the preceding year, while October del iveries, which were announced simulta neously, showed an increase of almost 200,000 tons over those for October 1937. The advance in both futures quotations and actual sugar’ prices which followed this announcement was short-lived and the market relapsed into a dull uncertainty re garding the Cuban tariff and 1939 quotas. Speculation regarding the former culmin ated in the news published on November 30th that the State Department had ap pointed January 3rd for public hearings in connection with revision of the Cuban Trade Treaty, while Cuban sources them selves claimed that a reduction to 754 per 100 pounds had already been promised. Heavy buying by Cuban interests resulted in a smart advance in futures and the ac tuals market recovered again to the 34 basis. Quotations on the Exchange have fluc tuated as follows during the month:— High Low Latest January .............. 2.094 2.034 2.084 March ................. 2.134 2.044 2.134 May ..................... 2.164 2.074 2.164 July ..................... 2.194 2.114 2.19c September .......... 2.234 2.134 2.23c Latest figures of world stocks are 3,837,000 tons, against 3,690,000 tons a year ago and 3,670,000 tons in 1936. Sales of Philippine sugar during the month amounted to 32,500 long tons at prices ranging from 3.004 to 3.054- No second hand sales were reported. The local market for export sugar has been comparatively quiet throughout the month. Exporters reduced their price to P6.80 in sympathy with the easier tendency in New York and, although in the second week P7.00 per picul was again quoted, the majority of holders preferred to wait in hopes of higher prices and little business was reported. Later, quotations declined again to P6.80, closing the month at P6.90 per picul in an inactive market. The domestic sugar market declined steadily during the first half of Novem ber to a low point of P4.50 per picul. A rather firmer tone developed subsequently with buyers quoting prices fluctuating be tween P4.60 to P4.80 but the volume of business remained limited. Exports to the United States during the month amounted to 27,859 tons centrifugals and 546 tons refined. Total shipments from November 1st, 1938 to November 30th, 1938 were as follows:— Centrifugals ........................... 27,859 tons Refined ..................................... 546 ” Total ......................... 28,405 tons This Girl . . . (Continued from page 26) Besides, said Boaz, the widow of one of old Elimelech’s boys had come back with Naomi; he who bought the land would have to wed this foreign creature—was the fellow prepared to do so? In that glaring light, flashed on suddenly, the fellow quick ly backed out of the whole business; before the elders he said openly that Boaz might himself buy the land and marry Ruth in the bargain. Charging the elders to bear him witness, Boaz accepted the deal. Thus culminated Naomi’s ambition, if not Ruth’s, and there was a very pretty wed ding as soon as the harvest was out of the way. All the gossip ran to the effect that Ruth the lovely Moabitess widow would be like Leah and like Rachel, and a great mother in Israel, and even neighbors pass ing by corroborated all that the solemn elders swore. Ruth was utterly happy. She soon bore Boaz a son, whom Naomi took charge of from infancy. Ruth being a belle not too well suited to the task, and this son was named Obed, whose own son was named Jesse, whose son in his turn became David the king. Far later, Joseph appears, of the seed of David and BathSheba, and Bath-Sheba’s son to David was Solomon the Wise. The heavens declare the glory of god, and the firmament showeth His handiwork. And so does man, as Boaz did, and more so woman, as did Ruth. But there is earth in it too, and is it not meet, since the earth is His footstool? IN ’RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 19 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3'5 FOREIGN EXCHANGE By Leon Ancheta Manager, Foreign Dept., P.N.B. Anticipating the seasonal influx of dollars funds to finance local pur chases of sugar and sugar ship ments, the dollar moved down from 5/8% pr. to 1/2% pr. for T. T. on New York for cus tomers. The rate interbank sales was ruling at 3/8% pr. T.T. New York up to the end of the first fortnight, with small sales effected as low as 5/16% pr. However, during the second fortnight it became evident that the ex pected pressure on the dollar was not forth coming. Sellers held back and the rate for interbank sales rose immediately to 7/16% for T.T. New York and leached 1/2% pr. at the close. Despite the rise in the rate for interbank sales, banks were selling to customers at 1/2% pr. for T.T. dollars up to the close. Buying rates correspondingly eased from 1/4% pr. to 1/8% pr. for sight bills and from par to 1/8%C discount for 60-day bills of which substantial business was done. As borne out by the trade figures, a complete reversal took place in the Islands’ exchange position this year as compared with that of last year.' Supporting the pe sos was a comfortable excess in exports over imports of over P80,000,000 up to the end of October, 1937 and the dollar was ruling at 1/8% discount T.T. New York during the last two months of that year. Exports up to the end of October, 1937 amounted to P263,345,000 compared with P200,155,000 for the same period in 1938. This year the Islands’ exports position is on the other side, imports exceeding exports by P30,708,000 up to the end of October. Total imports amounted to P230,863,000 compared with P183,121,000 for the same period last year. Principally, offsetting the heavy purchases of foreign commodities is the funds that accrued to the Government on account of the oil excise tax. In the foreign exchange market, the sterling suffered the most severe set back in many years. Closing at 475 3/8 during the previous month, it moved erratically, holding comfortably the same position un til the middle of the second week when it began to weaken sharply, continuing its downward course up to the close. The fall of the sterling is ascribed to unfavorable British trade, nervousness and confusion arising from the European political situa tion and conjectures as to the level at which the dollar-sterling rate is to be main tained as a result of the Angio-American trade pact. Vigorous action by the British equalization fund succeeded in halting the continued decline of this exchange after reaching a record low of 462 3/4 and at the close it was quoting in New York at 468 7/16. Due to the present low level of the sterl ing, Philippine coprax was not quoted in the London market. Another developing crisis in the French Franc appeared averted by the French authorities. A change in the cabinet took place by the resignation of Finance Minis ter Marchandeu whose proposal for a pro hibition in the hoarding of gold and flight of capital was rejected by the Daladier Government for fear that these measures might lead to a further devaluation of the Franc and the institution of foreign ex change control. The rates for franc in terms of sterling in the London market ap peared steadier than in the previous month. Opening at 178.71, it reached a low of 178.87 and closed at 178.31. The new Finance Minister, Paul Reynaud reported large scale repatriation of French capital during the month. Quoting at 27 3/4 during the first days FOREIGN EXCHANGE REVIEW COUNTER RATES of the month, the Yen, in sympathy with the sterling, moved successively downward, reaching a low of 27 1/8 toward the close. Opening at 29 11/16, Hongkong was fair ly steady up to the end of the second week when, in sympathy with the sterling, it moved successively downward reaching a low of 29 toward the close. Shanghai showed fairly steadier tone than in the previous month. Opening at 16, it reached 16 1/16 and a low of 15 21/32, closing at 15 11/16. Dr. Landman's Nine-Point . . . (Continued from page 14) both labor and capital in America incline to heed what serves their mutual interests, and one thing that does this is a substantial and growing overseas market. 9. Filipinos should seek a protectorate from congress, such as Cuba enjoys. (On this point, please read Dr. Landman close ly). Nomenclature in diplomacy is hamp ering and often embarrassing. The Philip pines have started out better than Cuba, with the term Commonwealth of the Phil ippines; and they are protected by the United States, even more sovereignly than Cuba is or ever was, and much more to their economic advantage. Should America retain any interest here whatever, after 1946, such as a garrison or two and some naval and air bases, this actual protection will continue over the Islands as well with out formal baptism as with it. —W. R. U.S. Dollars High Low Sterling Francs Yen Shanghai Hongkong High Low High Low High Low High Low High Low November 1938 . . . 201.50—201.50 November 1937 . . . 200.00—199.75 2/0-7/8—2/1-9/16 5.50 — 5.35 56.20—54.70 33.10—32.40 60.70—59.30 l/ll-3/4—2/o 6.95 — 6.85 58.90—58.20 59.80—59.60 63.30—62.50 /\ RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December 1 Q 38 COPRA AND ITS PRODUCTS by KENNETH B. DAY AND LEO SCHNURMACHER Kenneth B. Day in Cebu with plenty November was a comparatively quiet month for coconut products, except for one minor peak shortly after the middle of the month, at which time practically all the month’s business was done. The month ended as it bepan, with prices weak and uncertain. COPRA—Arrivals in Manila were some what disappointing, being off 37% as con trasted with October, although 2% above the previous November. Cebu arrivals were also off about 11% as compared with October, and 24% as compared with the Leq Schnurmacher previous November. The weather was bad of rain, thus holding to market. It was expected that December up production of copra and transportation arrivals would improve. In Manila elec Golf in the . (Continued from page 29) Mandaluyong, where an elaborate 18-hole course was laid out. Plans were also drawn for a big, ultra-mod ern club-house, and for tennis courts and a swimming Don’t tail to make your next trip an enjoyable episode in your life by sailing on the “Bisayas” or the “Lanao” — the biggest offers in travel value! All the modern conveniences — talkies, specially built dance rotundas, airy cabins, bars, etc., plus a staff of experienced cooks make Elizalde service a synonym of comfort! Phone or write for reservations! - ‘LANAO* s *BISAYAS ELIZALDE & CO.;™ (St Sa tions and holidays did a good deal to limit production, thus holding copra back in the provinces which should be marketable in December and January. When the month opened, copra was weak with no Manila buyers al over P5.75 for resecada, at which price sellers were not generally interested. Quotations dropped to 1*5.30, but owing to the stimulus m the American oil and copra markets resulting from election returns and a more encour aging world outlook, prices advanced and about the 18th of the month business was done at as high as P5.75. At this price a great deal of copra changed hands and trading was very brisk for a number of days. The market gradually eased, how ever, with selling down the line as far as P5.50. Below that figure very little busi ness was done and at the end of the month buyers were quoting P5.30 to P5.40 with sellers holding back because of higher provpool. For ladies and super-duffers, a nine-hole auxilia ry course was provided. A membership drive quickly netted 400 members, at P1000 each. With the money thus in hand, “Jim” Black, long-time Manila Golf Club professional, was told to go ahead and lay out a course which would be worthy of the very best efforts of champions. Black proceeded to do just that. He found at Mandaluyong 880,000 square meters of land, abounding in natural golf ha zards, and low-handicap men as well as duffers have since decided the canny Scotchman took advantage of each and every one of these hazards in building his course. It is a long course—par 72—6,590 yards, and no less a person than the great Gene Sarazen said last year to Henry Belden, “whenever anybody breaks par on this thing, please write and let me know”. The Wack Wack course was opened for play in 1931. Few changes have been made on it since it was first built, and those changes have been mostly with a view to placing somewhat less of a premium on distance, and more emphasis on accuracy with the irons. Both the Manila Golf Club and the Wack Wack Golf and Country Club have prospered exceedingly since 1931. Neither organization has since look back, and in fact “Caloocan” is now engaged in erecting a new club house to replace the 1914 structure, and Wack Wack is completing a nine-hole addition to the auxiliary course, “course” in Pasay nearly forty years ago, to the present lusty picture of two first-class golf clubs, and dozens of smaller courses all over the Islands, thousands of en thusiastic players, and an annual Open which attracts the very best the game has produced. But is it such a far cry, after all? To be sure, golf is still golf, and the 27-handicap duffer and the smooth, parbreaking pro fessional have one thing in common: love of the game. Both get the same delightful thrill that comes from smacking out a long one straight down the fairway, or stroking a high pitch onto the green. The “pro” ac complishes these things automatically, like a well-oiled machine; the duffer does it accidentally, but the thrill is the same The game is the thing, whether it is played with precise perfection in a big tournament to an ad miring gallery, or hopelessly by a duffer everlastingly trying to straighten out his “gorblimey” slice. Those early pioneers deserve plenty of credit, and they wrought better than they knew, but don’t forget the Game. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 incial equivalents. These provincial equi valents were largely due to speculative dealers covering sales they had made ear lier in the month at top prices. In Cebu prices reacted in a similar man ner, but Cebu prices were constantly above Manila equivalents with large Cebu dealers interested chiefly in export. Export markets were comparatively quiet with copra ranging on the Pacific Coast from a low of 1.65 cents to a high of 1.80 cents and with the European market ranging from a low of £8/15/0 for F.M.Q. to Marseilles to a high of £9/13/9 for sundried to northern European ports. A fair amount of business was done to the Pacific Coast, mostly in reasonably small lots. Not much business was done to Eu rope. Local dealers have had poor exper ience with European shipments this year, it being estimated that over 75% of the sundried copra shipped to Europe has been subjected to arbitration and penalized by buyers. The unsettled exchange situation also has militated against recent European business. Notwithstanding this, shipments to Europe for 1938 have totalled over 100,000 tons as contrasted with less than 20,000 tons in 1937, thus advancing Europe’s percentage of the export trade from 9% to 32%. Freight conditions were unsettled throughout the month, but it was finally agreed that the Conference rate on copra to the Pacific Coast would be reduced by $1.50 to $6.50 effective December 15th, with coconut oil and meal rates going down by the same amount. It was thought that these rates were more equitable and would prevent a large part of the rebating which has recently been going on. Shipments for the month were down, to talling only 22,192 tons, of which 6,275 went to Europe. Statistics for the month follow: Arrivals— Sacks Manila ................................. 389,063 Cebu ...................................... 342,920 Shipments— Metric Tons Pacific Coast ....................... 5,168 Atlantic Coast ..................... 1,524 Gulf Ports ........................... 3,757 Europe ................................... 6,275 China and Japan ............... 174 Other Countries ................. 5,294 22,192 Be ff inning of Month End of Month Stocks on hand— Tons Tons Manila ........... . . . 51,050 47,448 Cebu ............... 41,158 42,108 COCONUT OIL—At the beginning of November coconut oil business was possible at 2-7/8 cents c.i.f New York and 2-5/8 cents f.o.b. Pacific Coast, chiefly for for ward positions. Prices eased off early in November, but came back about the mid dle of the month to 3 cents New York and 2-3/4 cents on the Coast, with buyers will ing to accept earlier positions for selected parcels. Some small amount of business was reported at 3-1/16 cents c.i.f New York. Buyers continued to bid 3 cents un til near the end of the month. Later buy ers retired but were still willing to consid er1 offers at 3 cents for shipment during the 2nd quarter of 1939. Apparently, most of the demand was from soapers who con sidered coconut oil reasonably priced, with edible buyers out of the picture because of the possibility of buying competing oils and fats at cheaper equivalents. Statistics for the month follow: Shipments— Metric Tons Pacific Coast ..................... 1,732 Atlantic Coast ..................... 7,617 Christmas is Best Enjoyed With the Family at Home Visiting Relatives and Friends Traveling to see Interesting Places See Baguio — Bontoc Terraces — May on Volcano TRAIN TRAVEL or TRIP ON S.S.MAYON will insure success of your X’mas Vacation By train you will reach home ON TIME, af ter a very comfortable and Easy Riding trip. Fares are reasonable — Trains are equipped to insure the best travel comforts in the Philippines Ship your X’mas purchases by train They will arrive on schedule A Trip on S. S. Mayon to see Iloilo, Zamboan ga and Cebu has no equal Only the MAYON can give travel com forts which compare with large Transpacific Passenger Liners. FOR FURTHER PARTICULARS Call Up Traffic Department Call Up City Office Tel. 4-98-61 Tel. 2-31-83 Information, Local 42 521-523 Dasmarihas R. E. BERNABE Chief Clerk LEON M. LAZAGA Traffic Manager Gulf Ports ........................... 2,836 China and Japan ............... 2 South Africa ....................... 178 12,365 Beginning End of of Month Month Stocks on hand— Tons Tons Manila and Cebu . 20,689 25,746 COPRA CAKE AND MEAL—The cake market, which was very depressed at the end of October, showed some little improve ments in November, particularly for Ger many where import duties were decreased. Some little business was done at prices ranging up from $23.75 to $24.50 c.i.f (Please turn to page 38) CANDIDO SORIANO City Agent IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 1938 EVERETT TRAVEL SERVICE Authorized agents-all lines STEAMSHIP-AIR-RAIL RESERVATIONS AND TICKETS ITINERARIES PLANNED TOURS-CRUISES ARRANGED HOTEL RESERVATIONS TRAVELERS CHEQUESINSURANCE LETTERS OF CREDIT NO BOOKING FEE CHARGED. Southern Island Cru ises 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 OXY-ACETYLENE Welding & Cutting Equipment Philippine Acetylene Co. 281 CALLE CRISTOBAL, PACO MANILA, P. I. SHIPPING REVIEW Secretary, Associated Steamship Lines By CHARLES KIRKWOOD Our statistics for October 1938 shows that the export movement figures as 218,050 revenue tons, somewhat below September figures but noticeably greater than October 1937 (172,879 tons). Carriers engaged in trans-Pacific trade found difficulty in getting sufficient cargo. The dwindling sugar movement which amount ed to 11,409 tons raw/cent and 2,105 tons refined was offset by increased movements :’n hemp and forest products. All coconut products show increases over September figures. Desiccated coconut shipments were 6,727 measurement tons, a figure that has not been reached for many months. The makers of margarine and lard forwarded 580 tons. The U. S. was the only buyer of coconut oil and took 17,297 tons. The movement of copra was, to U.S. 17,034 tons, to Europe 15,881 tons, to Japan 229 tons and to S. America 100 tons, a total of 33,244 tons. The ship ments of copra cake/meal amounted to 14,107 tons, Europe took the major part 9,600 tons and the U.S. buyers got 4,417 tons, 90 tons to other destinations. It is certainly pleasant to report the hemp situation with 140,911 bales export ed. Europe was again the heaviest buyer, taking 54,166 bales. Evidently Japan has resumed buying as 45,469 bales went to that trade. The U.S. trade improved and took 32,602 bales. 8,674 bales went to scattered world-wide markets. The movement of lumber and logs amounted to 9,429,901 board feet, another report that we take satisfaction in making. Japan again resumed buying and took roughly four million feet of logs. The U.S. took over two million feet. China a triffle less than two million feet. The trade with Europe, Australia and So. Af rica shows a falling off as compared to September but is still quite satisfactory. Mine products: Japan took 77,980 tons of iron ore, 5,500 tons of manganese and a sample 1 ton, total 83,481 tons. The U.S. took 500 tons of chromite and Europe 140 tons. There was shipped 821 tons gold/ silver concentrates to Pacific Coast smelt ers. Singapore took 16 tons of rock as phalt. Grand total 84,958 tons. The cigar trade remained good and there was shipped 888 tons. The trade in leaf tobacco improved by shipping 725 tons but this seems a small amount as compared to former years. Improvement is noted in shipments of gums, junk metals, rope, rubber, cutch, hides, nuts, and canned pine apples. The trade in embroideries, furni ture, kapok, molasses, wines and liquors was slightly off. From our statistics, during October the 223 Dasmarinas VESSEL MM MARECHAL JOFFRE ----- Dec. 22 RL BOLOERAN ------ ------ J;in I P & O CORFU ------ Dec. 24 — APL PRES. ADAMS Dec. 26 ------ ----LT C. BIANCAMANO Dec. 27-----MM ATHOS II ------ Jttn. :, NRM MARNIX ------ ------ Dec LT CONTE ROSSO ------ Jan. 6 ----HEAL SEROOSKERK Jan. 7 ----- ----NDL POTSDAM Jan. 14 ___ -MM JEAN LABORDE Jan. 19 __ B & O CARTHAGE ----- Jan. 21 MM SPHINX ------ -----APL PRES. GARFIELD Jan. 2:! -----P &. O CHITRAL ------ Jan 7 LT VICTORIA Jan. 23 -----APL—American President Line MM—Messageries Maritimes P & O—Peninsular & Oriental LT—Lloyl Triestino HEAL—Holland East Asia Line NDL—Norddeutscher Lloyd Brem< export movement is as follows: A Grand Total of 218,050 tons with a total of 89 sailings (Average 2,450 tons per vessel) of which 17,251 tons were carried in American bottoms with 5 sail ings (Average 3,450 tons per vessel). China & Japan 104,849 51 523 3 Facific Coast Local 27,331 17 7,581 2 Pacific Coast Overland 1,160 10 182 1 Pacific Coast Intercoastal 2,249 5 1,610 1 Atlantic & Gulf 44,394 21 7,289 2 European Ports 34,804 19 All other ports 3,263 26 66 2 RICE REVIEW NOVEMBER, 1938 By Dr. V. Buencamino Manager, National Rice & Com Corporation RICE Further down ward revision in price was regis tered during the month under re view due to the announcement of the second re duction in the price of NARIC rice on Novem ber 9, 1938, to take effect on the 15th. President V. Singson Encarnacion 1 eleased the said announcement as follows: /N RESPONDING TO ADVERTISEMENTS PI.F.ASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3" ’Bangkok SAILINGS MANILA TO EUROPE VIA SUEZ Courtesy— EVERETT TRAVEL SERVICE Tel. 4-98-91 Singapore Colombo Bombay Aden Djibouti 'Massoua Arrive Leave Leave Arrive Arrive Suez Port Said Malta Naples Genoa *Alexandria "Brindisi *Venice Arrive Arrive Marseilles South hampton “Trieste *Plymouth Arrive London •Bordeaux Arrive Arrive Hamburg Rotterdam •Bremen ’Amsterdam Jan. 7" Jan. 11 -----Dec. 31" Jan. 1 Jan. 7 Jan. 5 Jan. 9 Jan. 14 ------ Jan. 3 Jan. 5 ------Jan. 17 -----Jan. 18 -----Jan. 25" Jan. 28 - _ Jan. 16 ------ Jan. 20 Jan. 26 Jan. 27 Jan. 31 Feb. 1 -----Jan. 17 ------ ----------- Feb. 1 — — -----Jan. 24 Dec. 31 Jan. 4 ----- Jan. 14 Jan. 14 Jan. 19 Jan. 19 Jan. 23 ----- Jan. 31 Jan. 28 Feb. 1 Jan.16 Feb. 4 Feb. 15 ----- ------ Jan. 23 - - ----- Jan. 27" ------ ---Feb. 5 ---- ------ - Feb. 19 Feb. 11 Feb. 3 ----- Feb. 8 - Feb. 10" Feb. 9 Feb. 15 --- - ------ Jan. 14 ------- Jan. 23 ------ Jan. 30" Feb. 2 Feb. 3----- ------ - — Feb. 8 - — Jan. 12 Jan. 31 Feb. 2 Feb. 6 Feb. 11 ------ Feb. 20 Feb. 21 Feb. 22" Feb. 25 Feb. 28 Mar. 1 ---------- Jan. 13 Jan. 14 Jan. 18 Jan. 21 Jan. 25 Jan. 28 Jan. 29 Feb. 1 — ----- Feb. 3 Feb. 9 Feb. 10 — Jan. 26 ------ Jan. 30 Feb. 1 Feb. 5 ------ Feb. 8 - Feb. 11 Feb. 12----- — ----“As the palay which is at present being harvested in Central Luzon, Visayas and Mindanao supplies only part of the market demand and as His Excellency the Pres ident of the Philippines has reduced the duty on imported rice from 5 to 3 centavos a kilo, the National Rice and Corn Corpora tion hereby announces that, beginning No vember 15, 1938, it will reduce the price of its rice from P6.50 to P6.24 a cavan of Macan 2.a, of 57 kilos, net. With this price, retailers in Manila could sell at 27,Z> cen tavos a ganta and still obtain a profit of 19 centavos per sack. In the provinces, the cost of transportation will have to be added to the original price.” Since NARIC rice was the dominating factor during November, the trade had to adjust itself to every change in the price of NARIC rice. During the first week, NARIC was selling mixed Saigon and na tive rice in the proportion of 5 to 1, aver aging 4,000 sacks daily; it jumped to 17,314 sacks on the 9th as pure Saigon was placed on the market, then gradually declined un til the 15th when the new price took ef fect. The second half of the month wit nessed an active market for NARIC rice mainly as a result of the continuous rains which interfered with the drying of the early crop. NARIC sales in Manila during the month amounted to 144,153 sacks valued at P870.621.60. Total arrivals during the month amounted to 28,363 sacks or a de crease of 126,634 sacks from the preceding month. Comparative statistics of arrivals by rail at Manila are given below: RW 19.1 8 Mouth Monthly Monthly Total Total January .......... 184,758 194,586 February ........ 171,115 191,100 March ............. 186,530 166,453 April ............... 176,831 107,882 May ................ 150,383 123,954 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 fortnightly sailings from Manila or Hongkong for Venice, Trieste, Naples or Genoa and 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 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. Atlantic Coast Ports via Java, Straits Settlements, Colombo and Cape of Good Hope) Silver Java Pacific Line (Philippines to U. S. Pacific Coast and Gulf Ports, also to Java, Straits Settlements, Bombay, Persian Gulf and Calcutta) “K” Line Round the World Service (Philippines to U. S. Atlantic Ports via Suez) “K” Line Express Service to Atlantic Ports (Philippines to U. S. Atlantic Ports via Panama) r 2-15-21 Trade & Commerce Bldg. Tels.-{ 2-15-22 2-15-23 MANILA IN RES POX DI NC> TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1938 SAILINGS MANILA to U. S. TRANSPACIFIC 223 Dasmarinas, Manila Courtesy— EVERETT TRAVEL SERVICE Tels.: J Line VESSEL Manila Leave Leave Hong- Shangkong hai Dairen Leave •Naga- Kobe saki Yoko- Honolulu Victoria •Portland Van- Arrive Seattle Arrive San. Fran. Arrive Los CPR EMP. RUSSIA SL SAPOROEA ML NIEL MAERSK SL SILVERBELLE APL PRES. TAFT CPR EMP. JAPAN Dec. 19 Dec. 23 Dec. 24 Dec. 26 Dec. 27 Dec. 23 Dec. 25 Dec. 27 Jan. 1 Dec. 30-----Jan 24 Jan. 26 Dec. 27 Dec. 29 Dec. 31 ------ Jan. 9 ----- ■ ------ ------ Jan. 12* Jan. 5 Jan. 9 ------ ---------- ----- — Jan 28° Jan. 3 Jan. 4 Jan. 12 -----Jan. 29 Jan. 31 Feb. 6 Feb. 11 ----- ------ Jan. 23 Jan. 17 ----- — Jan. 18 Jan. 21 SL JAMBI Jan APL PRES. CLEVELAND Jan BL TAI SHAN Jan SL SILVERGUAVA Jan ML PETER MAERSK Jan APL PRES. PIERCE Jan SL MANOERAN Jan. 26 NYK HIE MARU -----NYK TATSUTA MARU ----NYK HEIAN MARU ----- ------ Feb. 13» Jan. 17 Jan. 18 Jan. 26 •---------- ------ - - Feb. 13 Jan. 31 Feb. 1 Feb. 9 —— ----- ------ ------Feb. 28 Dec. 27 Dec. 30 —-—--------- -----Dec. 27 Dec. 29 Jan. 6 ---------- Feb. 6 Feb. 1 -------------- Feb.------1 Feb. 4 ----- ----- Feb. 13 ----- Feb. 17 Feb. 21 ----- ------ Feb. 24 ----- --------- Feb.----15 Feb. 18 ------ Feb.--- 23 Feb. 1G Jan. 10 Jan. 11 Feb. 4 Feb. 6 . 1. " APL—American President Line CPR—Canadian Pacific Railway SL—Salen Line BL—Barber-Wilhelmsen Line NYK—Nippon Yusen Kaisha June .......... ... 158,499 .. .... 125,092 July ............ .. . 203,269 .. .... 176,599 August .... . . . 143,276 .. ... . 169,677 September . ... 132,115 .. .... 237,127 October .... ... 122,348 .. . ... 155,370 November .. 98,868 .. .... 28,476 TOTAL .. . . 1,727,992 ... ... 1,676,476 Arrivals from Cagayan Valley declined sharply from 31,186 sacks in August, 11,941 in September, 6,992 in October to 214 sacks in November. NARIC prices after Novem ber 15, were as follows: f.o.b. steamer ex-bodega or railroad car, Manila (Per sack of 57 kls., net) Macan No. 2 .... P6.24 .......... P6.27 Saigon ........ 6.24 6.27 Siam ................... 6.24 6.27 P A L A Y Trading in palay in the provinces was fairly active at prices ranging from P3.10 to P3.20 per sack of 44 kilos (old crop). Despite the reduction in the price ot NARIC rice from P6.50 to P6.24 per sack, which ordinarily affects the price of palay, Macan ordinario in Nueva Ecija, Bulacan and Pampanga, remained steady. This is due to the fact that this grade of palay when polished slightly whiter than the NARIC No. 2, commands a premium of 20c to 30tf in the open market. Current quotations: Macan ..........P3.10 to P3.20 per sack of 44 kilos. BY-PRODUCTS Prices sagged off in sympathy with rice. Closing quotations were as follows: Binlid ................. P3.00 per sach of 50 kls. Tiki-tiki No. 1... 1.60 „ „ „ 50 , ” ” 3... 0.80 „ „ 45 ,. Mata-mata ......... 1.50 „ „ „ 45 ,. FOREIGN MARKETS A bumper crop is expected in Burma, Indo-China and Siam. Latest reports from Saigon and Siam quote new crop, January shipment at P3.50 - P3.60 per sack of 57 ki los, c.i.f., Manila. Copra and Its . . . (Continued from page 35) Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE GRILK Phone 2-16-61 Port Area Hamburg, or from P30.25 up to P31.75 f.o.b., the business being chiefly for December to March. Scandinavian buyers were not particularly interested. At the end of the month there was additional buying interest for the January-March position with sellers fairly well looked after and not particular ly interested. The copra meal business was spotty with a few small sales made to scattered destina tions on the Pacific Coast at prices ranging from $21.00 to $22.00 ex Pacific dock, or $19.50 to $20.50 c.i.f. Pacific Coast. These prices worked out considerably better than cake, taking into consideration the new' reduced freight rate. At the end of the month most mills were sold up until February, at least. Statistics for the month follow: Shipments— Metric Tons Pacific Coast ....................... 4,858 Europe ................................. 6,299 11,157 (Please turn to page 40) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CH AM DER OF COMMERCE JOURXAI PRINCIPAL EXPORTS Commodities October 1938 October 1937 Quantity Value % Quantity Value Monthly average for 12 months previous to October 1938 Canton (Low grade cordage fibre) Cigars (Number) ................................ Coconut Oil ............................................ Copra Meal ............................................ Cordage .............................. ................... Chromium Ore .................................... Desiccated & Shredded Coconut Embroideries .............. ........................... Hats (Number) ................................ Hemp .............. ......................................... Leaf Tobacco ........................................ Lumber (Cu. M.) .................................. Maguey ................................................... Pearl Buttons (Grs.) ........................... Sugar ...................................................... Other Products .................. ................... Total Domestic Products ................ United States Products ...................... Foreign Countries Products .......... GRAND TOTAL , .,...................... 87.823 17,668,288 258,239 9,815 317,516 55,385 18,538,821 P 2.4 0.2 P14,370,644 Articles % Quantity 1.2 0.3 P21,137,202 NOTE: All quantities are in kilos except where otherwise indicated. Exports of Gold amounting to P3,575,392 not included in 1937. PRINCIPAL IMPORTS CARRYING TRADE — _ _________________________________ IMPORTS____________________________ October 1938 Monthly average for October 1937 12 months previous to October 1938 58.9 0.9 0.2 Automobile .......... ............ Automobile Accessories. Automobile Tires .......... Books and Other Printed Matter .......................... Breadstuff Except Wheat Flour ............................. Cars & Carriages .......... Chemicals, Dyes, Drugs. Etc...................................... Coal .................... ............... Cacoa & Manufactures Except Candy ........ . Coffee Raw & Prepared . Cotton Cloths ................ Cotton. All Other ....... Dairy Products ............... Diamond & Other Precious Stones Unset ........ Earthern Stone & China ware .......................... .. 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 .... Instruments & Apparatus not Electrical ............ Iron & Steel Except Ma chinery .......................... Leather Goods .. •........ Machinery & Parts of .. Meat Products ................ Oil. Crude ....................... Oil, Illuminating ............ Oil. Lubricating ........... Other Oils. Animals. Mi nerals & Vegetables .. Paints, Pigments, Varnish Paper Goods Except Books Perfumery and Other Toilet Goods ................ Rice .......... .......................... Shoes & Other Footwear. Silk. Artificial ................ Silk, Natural .................. Soaps ................................. • Sugar A Molasses .......... Tobacco and Manufactures of .................................... Vegetables ....................... Wax ................................. Wheat Flour .................. Wood, Reed, Bamboo and Rattan ............................ Woolen Goods ...............« Other Imports ............... GRAND TOTAL ......... ~ Value P 620,506 99,219 181.896 91.078 143.147 41,459 153.900 158,120 479,377 3.5 0.6 1.0 1.2 0.5 0.8 2.9 2.4 Value ~P 576,564 260,070 124,297 184,145 154,377 119,048 488,677 57,076 58,029 180.494 45,773 790,459 139.494 837,243 3,350,930 199,416 2,067,996 56.007 270.409 662,354 341,983 101.563 180,633 844,738 % Value 2.3 P 843,3 1.0 42.1 Nationality of Vessels Monthly average for October 1967 12 months previous to October 1938 0 0.6 0.5 1.9 0.2 0 0 10 0 2 0 0 3 3 0 8 9 0 8 13 3 2 2 6 0 7 3 6 6 6 2 0.6 0.4 1.3 854,81; 243,127 829,720 143,552 78,721 148,389 28,623 653,150 212,595 333,913 356,580 331,384 301,128 552,795 180,748 166,721 111,600 126,037 156.783 631,292 173,853 • 78,808 61,010 436,500 149,345 106,942 31,812 3.8 3.7 0.6 0.5 0.6 10.8 3.*1 0.3 0.7 0.1 2.9 1.5 1.6 1.4 2.4 0.8 0.7 0.5 10.1 2.1 7.7 1.2 1.9 0.9 0.7 0.6 0.7 2.8 ).8 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Ports Monthly average for October 1938 October 1937 12 months previous to October 1938 Manila .... ........... 51oilo ........ ........ Cebu .................... Jolo ...................... Zamboanga .......... Legaspi .............. Jose Panguniban TOTAL ........ 63.9 6.2 19.8 69.6 6.4 16.0 1.5 1.5 4.7 2.6 P32.161.194 1.1 American .................. British ...................... Chinese ...................... German .................... Greek ........................ Hondurian ............ Italian ........................ Japanese .................... Norwegian ................ Panaman .......... ........ Philippines ................ Swedish ..................... By Freight .............. American Aeroplane Mail ............................ TOTAL .................. 56.922 P17.790.550 Nationality of Vessels American .. British .... Chinese ... Danish ... Dutch .... French ... German ... Greek ...... Italian .... Japanese Norwegian Panaman Philippines Swedish By Freight Aircraft .. Mail .......... TOTAL 14.4 39.2 5.7 6.9 9.8 0.3 .2 EXPORTS October 1938 Value 706,127 669,817 4.9 4.7 4.6 0.5 19.7 11.9 Value % Value 20 41 0 4 0.5 0.2 2.1 Monthly average for October 1937 12 months previous to October 1938 Value 1,116 153,295 28.9 26.2 2.1 2.8 0.9 P14,168,297 98.6 P17.535.252 83.6 2.627 — 4.128 — 199,710 1.4 3,450,710 16.4 P14.370.644 1.4 P20.980.090 Value 17.6 24.7 0.3 5.8 5.4 3 P20.218.624 95.7 5,028 913,551 ______________4.8 P21.137.203 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Countries October 1938 Monthly average for October 1937 12 months previous to October 1938 Value United States ...... United Kingdom .. Australia ................ Belgium .................. British East Indies Canada .................... China ........................ Denmark .................. Dutch East Indies France ...................... French East Indies Germany ................ Hongkong .............. . Italy .......... ............. Kuantung .................. Japanese-China .... Netherlands ....... Norway .................... Siam .............. ........... Spain ........................ Sweden .................... Switzerland ............ Other Countries ... TOTAL ................ P32.161.194 1.8 1.2 1.3 2.8 3.3 0.8 02 1.9 0.2 P43.906.65 No Importation of U.S. Army and Navy in 1938 not included. 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL December. 19 >8 RAIL COMMODITY MOVEMENTS By LEON M. LAZAGA Traffic Manager, Manila Railroad Company FREIGHT REVENUE CAR LOADING COMMODITIES The volume of commodities received in Manila during the month of November 1938, via the Manila Railroad Company are as follows: Rice, cavanes......................... 27,021 Sugar, piculs......................... 25,408 Copra, piculs......................... 128,449 Desiccated Coconuts, cases . . 31,746 Tobacco, bales....................... 607 Lumber, board feet............. 861,075 Timber, kilos......................... 1,430,000 Rice .............................. I'alay ............................ Sugar Cane .............. Copra ............................ Coconuts ...................... Molasses ...................... Tobacco ........................ Livestock .................... Mineral Products Lumber and Timber.. Other Forest Products : Manufactures ............ j All Others including L.C.L............................| TOTAL The freight revenue car loading statistics for four weeks ending November 19, 1938, as compared with the same period of 1937 are given at right: NUMBER OF I FREIGHT FREIGHT CARS, TONNAGE i 1937 | .301 i 1938 280 5.218 13 1.1' .265 15.824 __________ SUMMARY Week ending Oct. 29 Nov. 5 '• 12 ,i 1.270 1,058 1.129 1.761 1.375 1,304 1,188 1,398 12,220 9.061 20^539 12,760 12.359 10.838 16,702 ( 105) ( 510) ( 246) 1 ( 3.298) | ( 59, I < 805) 363 3,837 ■ TOTAI.................... J__ 5.218 5.265 51.853 52.659 1J=.£D___ (__ 8062. NOTE—Figures in parenthesis indicate decrease. U. S. Foreign . . . (Continued from page 31) withstanding the recent market expansion in durable goods industries, the aggregate output of such products is still compara tively low. Although railroad equipment orders are still in mail, the railway outlook has improved and weekly freight carload ings exceed 1937 figures in mid-November for the first time this year. Retail sales of general merchandise have improved during November and the loss in dollar volume from a year ago was reduced to about five per cent, compared with 10 per cent in October. Retail sales of passenger automobiles mounted rapid ly as dealers were supplied with cars to deliver against the substantial volume of orders built up with the introduction of new models. Monthly income payments, the most inclusive single indication of cur rent economic change, have increased steadily since May, the 1938 low point and for the final quarter of the year, it is like ly that “real income” will exceed the total for the same period last year. Total employment in non-agricultural pursuits increased by about 900,000 work ers between July and mid-October, an J about 1/3 of those who lost their jobs after autumn last year have returned to work. Commodity prices during November were generally stable both in raw materials and finished products. Prices of farm products have remained around the year’s lows but the Department of Agriculture estimates cash farm income for the present year at $7,600,000,000 compared with the depres sion low of $4,300,000,000 and about $1,000,000,000 below last year. Copra and Its . . . (Continued from page 38) Beginning End of of Month Month Stocks on hand— Tons Tons Manila and Cebu .. 8,216 7,773 DESICCATED COCONUT—Sales of de siccated in the New York market fell off approximately 20*/ as contrasted with Oc tober, which is usually the peak month for the Christmas trade. December sales are expected to decline even further. Desiccat ed prices, however, held steady and aver aged possibly a shade better than those of October for fancy cuts. Stocks of desiccat ed in the New York market were normal. Mills in the Philippines were operating at fair capacity for this time of year. Ship ments for the month totalled 3,479 tons. GENERAL—At the close of November buyers and sellers of copra were more or less at a stalemate. Buyers saw very lit tle promise for higher prices in the future, and sellers saw no profit in buyers’ quota tions. It was thought that some large mid dlemen were accumulating stocks of copra in the provinces with the hope of holding them for better prices and, if necessary, carrying them over into 1939. Copra prospects in general were good, the weather having been favorable, and it was thought that there should be plenty of copra in sight to meet all demands up to and including the best part of January. Demand for oil was light and for far for ward positions and it was not expected that a great deal of oil could be sold ir. De cember. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE. JOURNAL BUSINESS AND PROFESSIONAL DIRECTORY It ® a T P. O. Box 1394 Telephone 2-20-70 CHINA BANKING J. A. STIVER Attorney-At-Law—Notary Public CORPORATION Certified Public Accountant MANILA, P. I. Administration of Estates Receiverships Investments Collections Domestic and Foreign Banking Income Tax of Every Description 121 Real, Intramuros Manila, P. I. Creosote Is An i Antidote M 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 Rot is another problem that causes large losses. Again creosoted lumber brings a great sav ing. Actual use of this has pro ven that if 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 for < hrisl nuis. ;i SEHVIL ELECTROLUX Illi G3S KEI ’’KIGER \ TOK \’o Moving Parts X’o Expensive Repairs X'n Interruptions \o Wasted Rood Mm? Convenience .More Ice-Cubes Greater Leant) Low Operating Cost I .i l'u-1 .ono Economy MANILA GAS CORPORATION That Home and Garden which you always dreamed of SAN JUAN HEIGHTS is the Best place for it. SAN JUAN HEIGHTS GO., INC. 680 Ave. Riz.il I cl. 2 hOl I1. O Bon 961 ’ \1 \ \ I I A