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: Vol. XXII, No.9 (February 1947)
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extracted text: Cigar Makers—Story on page 6 February \1947 Studio Photo 50 Centavos 1 i 8 ■I 1 1 1 r < li E w 1 FAITHFUL TO THEIR REPUTATION CONTINUE TO BE THE RECOG NIZED LEADERS IN QUALITY AND WORKMANSHIP KUENZLE & STREIFF INC. Temporary office at: 31 TAYUMAN, MANILA at "ALHAMBRA" Cigar Factory Building IMPORTERS & EXPORTERS Manufacturers’ Representatives B/VE & LIQUOR DEALERS CORONAS — Our pride — Manila’s Best in boxes of 25 ALCALDES — the all day smoke in boxes of 50 BELLEZAS ■^-a small, light cigar in boxes of 50 BEWARE OF IMITATIONS! ALHAMBRA CIGAR & CIGARETTE MFG. CO. 31 Tayuman — Manila General Agents for: SUN INSURANCE OFFICE, Ltd. London. SPRINGFIELD FIRE & MARINE INSURANCE CO., Springfield, Mass., U.S.A. BALOISE FIRE INSURANCE CO., Ltd. Basle, Switzerland Underwriting: Fire Insurance Marine Insurance Motor Car Insurance Accident Insurance Aviation Accident Insurance Baggage Insurance Loss of Profits Insurance Since 1887 our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. ---- --- CARMfLO C1E11, INC. OFFSET LITHOGRAPHERS ’ PRINTERS 2057 AZCARRAGfl . MANILA, PHILIPPINES DE LA RAMA LINES LEADERS IN THE SHIPPING INDUSTRY EXPRESS CARGO-LINER SERVICES TO AND - FROM THE UNITED STATES CONNECTING AT MANILA WITH OUR INTER-ISLAND VESSELS THROUGH BILLS OF LADING IS SUED TO ALL PRINCIPAL PHILIPPINE OUTPORTS ■ THE DE LA RAMA STEAMSHIP CO., INC. HONGKONG & SHANGHAI BANK BLDG. TEL. 2-82-04 NEW YORK • SAN FRANCISCO • LOS ANGELES SHANGHAI • HONGKONG Sole Importers SORIANO TRADING COMPANY M.R.S. Bldff. — Tel. 2-79-61 — Manila The American Chamber of Commerce Journal February, 1S47 1 AN OPPORTUNITY FOR EX INTERNEES EX-PRISONERS OF WAR AND THEIR FAMILIES TO GIVE PRACTICAL EXPRESSIONS OF THEIR UNDYING GRATITUDE o FOR HELP GIVEN-THEM IN ° THEIR TIME OF GREATEST NEED. Join the ESCODA MEMORIAL FUND ESCODA MEMORIAL FUND Mail Checks direct to E. B. Ford c/o Philippine Trust Co., Manila FAR EAST AMERICAN COMMERCIAL CO., IN C. ■ IMPORTERS - WHOLESALERS ■ EXPORTERS STEEL OFFICE FURNITURE • OF FICE EQUIPMENT & SUPPLIES GENERAL HARDWARE • MACHI NERY • TEXTILES • COSMETICS SHOES • TOYS • NOVELTIES HOSIERY • PLASTIC & LEATHER BELTS • PAPERS, ETC. MAIN OFFICE THIRD FLOOR, YUTIVO BLDG. DASMARISAS, MANILA TELS. 2-85-86 & 2-85-87 Glenmore Distilleries Co., Incorporated, Louisville, Kentucky SORIANO TRADING CO. A. SORIANO y CIA. AA General Managers ----M. R. S. Bldg. Tel. 2-79-61 SORCO 2 The Amelie Chamber of Commerce Journal February. 1947 THE americ^h;^ambeb;qf commerce VOL. XXII. No. 9 February, 1947 Table of Contents Page Manila Rises From The Ruins by Bernardino Ronquillo ............................................................... 5 The Road Back ............................................................. 6 Report On the Mining Industry by the Bureau of Mines, Mr. Demetrio Andres, Officer-in-charge 8 Stock Market Review by A. 0. Hall & Co................. 9 Editorial......................................................................... 10 Fifty Million Pesos Released ..................................... It An Iron and Steel Industry for the Philippines by Charles Mitke ................................................. 12 Labor In The Philippine Republic by Carson Taylor 14 List of Government Owned and Controlled Cor porations ................................... 17 New Air Route ............................................................. 19 Export Controls ........................................................... 23 Division of Standard Created ................... ,................ 23 Statistics on Banking Resources and Liabilities .... 24 B. GABERMAN STOCK BROKER 328 Dasmarinas Member MANILA STOCK EXCHANGE CODES: A B C 6 Ed. Bentley 2nd Ed. CABLES: “iPEKDJIAN” iPEKDJinn fflERCHnnDISIIIG co. IMPORT—EXPORT 312 Ayala Bldg. (Nat. City Bank Bldg.) Manila, P. 1. The American Chamber of Commerce Journal February, 1947 SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS of HIGHEST-PURITY OXYGEN and ACETYLENE GASES ★ “NATIONAL” CARBIDE ★ WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS of "SUPERFLAME" BOTTLED GAS and "TAPPAN" GAS-STOVES with Complete Installation and Service Facilities OFFICE and PLANT: Byng St. Mandaluyong (near Mandaluyong Bridge and Shaw Blvd.) Tel. 8-72-80 Subscribe t o AMERICAN CHAMBER OF COMMERCE JOURNAL THE ONLY JOURNAL 0 F I T S KIND 4 Manila Rises From The Ruins Rebuilding Gets Started By BERNARDINO RONQUILLO Manila’s skyline has already un dergone quite a change even before rebuilding has hits its stride. In 1945 downtown. Manila was a heap of rubble and debris; but in 1946 the city literally rose from the sorry sight it was just after liberation. The residential area south of the Pa sig was transformed early in 1945 to almost flat country-side with very little life; today quonset huts and other light material houses are help ing to fill the void caused by the worst conflagration that ever hit Ma nila during the first two weeks of the battle for the Philippine capital. A beginning is all that has been made in the way of rebuilding, but progress has been amazing, when one considers the obstacles that had to be surmounted, namely: 1. The uncertainties of the zonification plan which up to now has not been put into effect due to the conflicting ideas of property owners and city planners over the widening and improvement of streets in down town Manila particularly; 2. The general dearth of funds to enable small home-owners to start building new homes; 3. The delay in the payment of war damage claims for which possibly a million, claimants are waiting. 4. Scarcity of building materials for reconstruction on a larger and more extensive scale or the reluct ance of many prospective builders to start rebuilding due to the high cost of construction. Th«? tremendous demands for homing to accommodate the thousapds of city inhabitants left home less necessitated the hurried setting up of temporary quarters, but until now this problem has hardly been relieved and, despite the rental law, tenants are complaining they are not getting enough protection from the excessive rates charged by landlords. Increases .of 50 to 100 per cent in rentals have been already effected oy are about to effected as a result of the heavy demand for more accom modations. The necessity for setting up quarters to house business offices and stores was even more urgent in order to restore normal economic life and start the rehabilitation of the Islands’ shattered national economy. Hence, the comparatively greater headway made in rebuilding busi ness establishments than in rebuild ing homes. As a general rule, strong material construction last year was confined to the repair and rehabili tation of prewar structures, some of which were so badly damaged the cost of putting them in shape was almost as much as the cost of build ing new ones on a normal prewar basis. The encouraging fact about city re building is that many of the big pre war business establishments have been restored and reopened. These include a number of buildings in downtown Manila, like the Wilson building, the Trade and Commerce building, the Soriano building, the Aguinaldo building, the China Banking Corporation building, the National City Bank of New York (Ayala) building, the Hongkong and Shanghai Banking Corporation building and the El Hogar building on Juan Luna and others around the banking district; Insular Life building and Filipinas building on Plaza Moraga; the Calvo building, Perez Samanillo, Regina and Fer nandez buildings on the Escolta (the Heacock building having been pur chased by the U. S. government; the Mnyflower Photo Studio Escolta in January, 1947 Monte de Piedad building on Plaza Goiti (practically intact) ; Great Eastern Hotel on Echague; Central Hotel on Rizal Avenue; and a num ber of other edifices on downtown business throughfares. The theatres and movie houses which grew up in the decade that followed the depression years and which contributed to Manila’s sky line had all been virtually completely restored before 1946 drew to a close. They include such fine structures as the Avenue Hotel and theatre, Ideal Theatre, State building on Rizal Avenue; Lyric and Capitol on the Escolta; Times Theatre and Life Theatre on Quezon Boulevard. A number of new movie houseshave also sprung up in the area levelled by fire, particularly in the Quiapo dis trict. Official figures on city construc tion (which do not show all the re building accomplished in 1946) tell an even more convincing story of the definite gains scored in lifting the once beautiful “pearl of the Orient” from the rubble and ruins of war. City construction, including repairs, in 1945 (officially recorded by the (Continued on page lf>) The Road Back To Normal Production—To Normal Labor Employment Not Av Easy One The tobacco industry did not rank as the largest, or the next largest in dustry in the Philippines before the war. Nevertheless it did play in a very important role in the industrial organization of the country, creat ing about PIO,000,000 worth of ex port products a year and providing employment (on. the manufacturing end) to about 20,000 people. As an agricultural crop, it ranked eighth in area planted, approximately 58,000 hectares having been planted to to bacco in 1940. Not the largest indus try, no. But one that for many years, decades and even centuries (it is an old industry in this country) has brought in a steady income for many thousands of people, farmers and factory workers. The great plants of this industry were concentrated in the Manila area, where the four leading manu facturers of cigars and cigarettes were located — Tabacalera, La In sular, La Yebana, and Alhambra. Agriculturally, the industry was centered in the Cagayan valley, the two provinces of Cagayan and Isabe la in 1939 producing 17 million kilo grams of tobacco out of a total pro duction of 32 million kilograms. The province of Isabela far out rank ed all other provinces with 12 million kilograms. Outside of northern Lu zon, the only important producing area was Cebu, which accounted in that year for approximately 2 million kilograms. As was true of every other in dustry of the Philippines, large or Mayflower I’hoto Studio W. Eggman Treasurer-Manager, Alhambra Cigar ACigarette Co. small, the liberation of the Philip pines found the tobacco industry lying in dust and rubble. In their last orgy of destruction, the Japanese blew up or fired many industrial plants that up to then had partially or wholly escaped injury. Of the large factories named above, only one remained-Alhambra. La Insular was destroyed by fires from the second American bombing of the city in September, 1944. But Tabacalera (La Floi' de la Isabela on Isaac Peral St.) and La Yebana were the victims of the Jap scorched earth policy. The great Alhambra plant on Ta yuman St. emerged from those days of destruction almost unscathed. When the Japs blew up a nearby bridge, the force of the explosion shattered every window pane throughout the factory and office buildings; but otherwise it was in tact. The managerial and factory staffs were ready and prepared to resume operations almost before the smoke of battle cleared away. Nor was the destruction of the Meralco power plant a hindrance, for the factory was the‘fortunate owner of its own power plant on the premises. For several reasons it is worth while at this time almost (two full years after the liberation of Manila) to visit the Alhambra plant and to study the degree of success that has attended its efforts to return to its prewar production and labor employ ment levels. The results should throw a light on. not only the tobacco industry of the Philippines but also on industry in general. The very fact that it is one of the few fac tories of any kind whose rehabilita tion did not depend on the securing of new machines, etc. from abroad gives its experience in this post war world peculiar interest to the student of Philippine industrial conditions. The Alhambra Cigar and Cigarette Company was first organized in 1898. Its early years were beset with financial difficulties, and in 1912 it passed under the control of Kuenzle and Streiff, a well known Swiss company, who incorporated it with a capital of P800.000, all of which was in common stock form and was closely held by the original in corporators. The original factory was on Novaliches St., but in the early 1920s the buildings’of the La Flor de Intal were secured on Tayu man St. and the factory was moved to that location. The cigarette fac tory annex was built a few years later. Alhambra has always been strictly a manufacturing concern, buying its supplies of tobacco leaf in the open market. Most of its stocks were purchased in the Cagayan valley, where the company maintained five or six expert tobacco buyers, and several warehouses or bodegas. When the battle for Luzon began in Jan uary, 1945, these bodegas were filled with some 30,000 bales, much of which was 1941 production and pur chase. But during the first six months of 1945, as a result of the bitter fighting in the Cagayan, valley, 65% of their bodega stocks were destroyed. Probably the same per centage of loss was applicable to to bacco stocks generally. As has been said, this factory was ready and able to resume production (which means also “employment”) almost before the smoke of battle had cleared away. The first real obstacle it encountered was un fortunately placed by the govern ment, in the form of requirements for re-registration (being a cor poration). In spite of all that the company could do, this process con sumed months, and it was October, 1945, before it was finally permitted to resume operations. This period of enforced idleness was the source later of much difficul ty and trouble not only for Alhambra but for the bona fide tobacco indus try generally, and also for the gov ernment. It was during this period that cigars and cigarettes became •bootleg products. Numerous small J. H. Wendt Factory Manager, Alhambra Cigar ACigarette Co. The American Chamber of Commerce Journal February. 1947 6 illicit establishment took quick ad vantage of abnormally prices for cigars and cigarettes, and the tem porary forced suspension of legiti mate manufacturers from produc tion, with a resultant serious loss of revenue by the government. Of spe cial concern to legitimate, well-known manufacturers was the fact that the boot-leg producers imitated the labels of famous brands for the purpose of marketing their products. Protection against this mal-practice was far from sufficient. The consequence, in the case of Alhambra, was that it became necessary for them to take unusual and expensive precautions in preparing their own labels when they were finally permitted to re sume production. To some extent the emergence of the boot-leg manu facturer, during this period when the market was unwisely left to them to exploit, created problems of revenue collection that until today continue to cause financial loss to the govern ment. The problems that Alhambra has had to meet and solve since it re sumed operations in October, 1945, are fundamentally no different from those of industry in general in the Philippines. They involve such ques tions as inflated labor costs and raw material prices. A brief description of the specific situation at this one factory is worthwhile. By January, 1947, Alhambra had travelled the road back to normal production to the extent of 25 c/o in cigars and 15%- in cigarettes. As an employer of labor, it had progressed 30% of the way back to normal. Quite and 'achievement when it is learned that the present scale of wages is three and a half times pre war and the present cost of tobacco is five to six times prewar costs. And little short of miraculous when it is learned that some of its products are selling for little less than two times prevjar prices, and none of them as m^/as three times prewar prices, t or example, Corona cigars now sell for P28 per hundred as against P16.60 before the war; and Alcalde cigars for P20 -per hundred as against P8 before the war (all factory prices). The Alhambra Blanco cigarette (short) before the' war $old for P80 per thousand packages' of 30 cigarettes each, including P39 tax. In spite of inflated labor costs and raw material prices, this popular brand is now being sold at P150, which price includes P60. in taxes. Until January 1, 1947, the factory price was P230, which included an P120.—tax. A decrease of P20 in the factory price (minus tax) brought the cigarette down into the lowest tax bracket, which meant P60 less in taxes. In a nutshell, the com pany gets P20 less than before Jan uary 1, the government gets P60 less, and the buyer at the factory pays P80 less. But there has been no re duction in wages or in row material prices. The most serious obstacle in the way of further progress is the con tinued shortage of tobacco. Last Mayflower Photo Studio Cigarette machine—three oat of nine machines are being operated Mnyfiowcr Photo Studio Assembling cigar boxes year's crop was approximately onethird of normal. It was anticipated that this year there would be an in crease in tobacco plantings that would bring the crop up to 50% of prewar levels. But after the seed beds were planted last October in the Cagayan** valley, a typhoon with rains had al most disastrous effects. What the final crop will be it is impossible to (Continued on page 13) The American Chamber of Commerce Journal February, 1947 7 Report On The Mining Industry Conf iib it ted by the Bureau of '\Iivef<) Mr. Demetrio Andras. Officer-in-charge Mining was a major industry ol the Philippines before the war, being a close second to sugar which lecl by only a few million pesos. If the war had not broken out sugar might have been displaced by mining as the premier industry of the Philip pines by the end of 1941. "Prior to the war, 57 mines were in actual production. They consisted of 38 gold, 5 chromite, 5 iron, 6 manganese and 3 copper mines with a total production from 1935 to 1940 of the following values: 1935 ............ ? 33,289.897 1936 ............ 47,496,225 1937 ............ 57,494,278 1938 ............ 72,055,756 1939 ............ 82,980,021 1940 ............ 91.607,210 The mining industry gave employ ment to 42,931 laborers in 1940, used 84,267,607 board feet of lumber, bought P36,660,647 worth of machi nery and consumed 228,746,462 K. W. H. of power. The almost complete destruction suffered by the mining industry dur ing the war has been evaluated by the Bureau of Mines at about P121,000,000. Many of the mines that suffered complete destruction may never be .opened up again. Among the few companies which have been able to rehabilitate their mines, only two are today in actual production. The lack of machinery and the high cost of labor are de laying the opening of many mines, including the readily accessible ones. In the Baguio Gold District, Ben guet Consolidated Mining Co., Ba latoc Mining Co., Big Wedge Mining Co., and Lepanto Consolidated Min ing Co. are rehabilitating their mines. The 1000 ton mill which Benguet and Balatoc are putting up between their properties will soon be com pleted. It is 2000 feet northeast of the Balatoc main haulage level and is about 7000 feet from the Keystone vein of Benguet. It is expected to open operations in the early part of 1947. The company’s current pay roll covers more than 2,000 em ployees. Big Wedge is the only mine in the Baguio District which was saved from heavy destruction during the war. The mill is about 80% intact while the mine is in fair shape, although two shafts were badly Mayflower Photo Studio Demetrio Andres damaged due to timber decay and caving in of heavy walls. Many small parts of the mill were stolen during the Japanese occupation. Every effort is being exerted to get the mill .back in operation during 1947. The payroll of the company last October contained 250 men as against 160 men last June. Lepanto Consolidated is now pre paring the site and foundation for a new 500 ton mill, and is reopening and making its mine ready for stop ing ore as soon as the mill is com pleted. The Lepanto mill was razed to the ground and the mine blasted during the last minute resistance Of the Japs in that place. In the Paracale district only small scale rehabilitation is going on in San Mauricio, United Paracale and Coco Grove. The Companies are gathering and putting together what is left of the power plants and are repairing and reconditioning what is left in the mines. Treasure Island is also putting the camp and mine into operation, employing over 100 men. Masbate Consolidated is now clean ing and putting its mill and power plant into condition, which were left practically intact, by the Japanese. In the Surigao District, Mindanao Mother Lode and Surigao Consoli dated are now in operation. A new dredging company is assembling a dredge to work a placer ground ad joining the North Mindanao Mining Co. property. Surigao Consolidated is actually milling their oxidized ore mined by open pit, at a rate of about 150 to 200 tons a day by table and flotation. Operations have been hindered recently by labor difficul ties. Mindanao Mother Lode has been busy putting the mine and camp in' shape for mill operation by the middle of 1947 but due to the ship ping strike on the Pacific Coast the shipment of their machinery has been delayed another six months. Among the base metal mines, Con solidated Mines is the first shipper of ore to the United States, present shipments amounting to 12,000 tons of chrome ore monthly. Benguet Consolidated is mining their chro mite deposit on a profit sharing basis. The camp was completely damaged, while the road and bridges were in very bad shape after the war. Acoje Mining is doing some repair work on their property but so far no chrome ore shipments have been made. At Cagayan, Oriental Misamis, Luzon Stevedoring Co. has started reopening its chromite mine. Re pair on the roa;d is going on rapidly. Also the Soriano interests are busy exploring their chromite claims southwest of Cagayan. Among the manganese mines, Luzon Stevedoring is now opening the Philippine Nippon Mine on Busuanga Island, where the camp, pier and road are being repaired. The mine was badly damaged during the occupation. Coal mining is booming in Cebu at the present. The demand of, coal is great at the Cebu Portland Ce ment Co. and, since no importation is available, native coal is being used. The monthly production of the Cebu Coal District during 1946 was: January .... 954.02 tons February ... 938.56 ” March .......... 1277.72 ” April ............ 826.86 ” May .............. 3016.97 ” June..... 3796.36 ” July .............. 5043.25 ” August. 5895.20 ” September . . . 5702.65 ” October ........ 7583.24 ” November .. . 2709.31 ” (Contimied on page 23) The Ameri< ran Chamber of Commerce Journal February, 1947 8 Stock Market Review for 1946 By A. C. HALL AND CO. The past year witnessed the re sumption of official trading in the Manila Stock Exchange. The Ex change actually opened its doors on January 26, but previous to that date trading in securities had been carried on over the counter by Ex change members. On the resumption of trading, the Securities Commission permitted the Exchange to grant official list ing to all issues listed at the out break of war provided that the com panies in question were in a posi tion to effect share transfers. On January 26th, seventeen companies met these requirements. The Ex change was permitted subsequently to add to this group as soon as other prewar issues opened their share transfer offices. Later in the year, however, the Securities Commis sioner amended this ruling, with drew automatic relisting privileges, and placed certain requirements on companies seeking relisting on the Exchange. At the present time, there are thirty four stocks official ly listed as compared to ninety is sues on the Big Board during late 1941. The shares of previously listed companies which have not yet ap plied for relisting are meantime traded over the counter. In addi tion to these issues are such unlisted stocks as Benguet Consolidated Min ing Company and Far East Oil Dev elopment which have always been traded over the counter. Business transacted on the Ex change during 1946 was of consi derably smaller proportions than duri ng prewar years. The approxiuiat'e total value of transactions dur ing 1946 amounted to slightly over P20 million. Of this total, the min ing section accounted for about P17,000,000. MINING GROUP The improvement which commenc ed late in 1945 gained vigor early in the year, and selected issues ad vanced sharply during January and February under the impetus of a substantial demand from the United States. The rise was aided by an artificial shortage of stock. Poten tial sellers, attracted by high prices of some issues, were unable to dis pose of their holdings, for one reas on or another. The rise topped out late in Feb ruary when our mining share aver age reached a high of 49.85. By then additional transfer facilities were available, and local holders, desirous of raising funds to finance other business interests, became ready sel lers. At about the same time, in vestment demand from the U. S. slackened as the first rush of post war speculative enthusiasm evapor ated in Wall Street. Furthermore, it had become more evident that the rehabilitation, of Philippine Mining Companies was going to take a long er period of time than many people had hitherto considered possible. For most of the year thereafter, the market was in a sustained de cline. Prices hit bottom during August and September. Actually on a daily closing basis the low point in the average was reached on Sept ember 26 at 25.55. However, prices had traded in only a one point range on very small volume for about a month prior to that point, generally indicative of a sold out market. An old adage is that a market that can not decline can advance, and this was again witnessed as prices moved steadily forward since early October to close the year at 35.60, or almost forty percent better than the low point of September. In our opinion the Manila Stock Market, is currently performing the traditional function of Stock Mar kets all over the world. It is the barometer of public opinion, and coming events. The recent advance reflects investment faith in. the fu ture of this country. The- market’s technical action at present suggests that the highs of 1946 will at least be tested during this year. (In(Continued on page 19) The American Chamber of Commerce Journal February. 1947 9 Publihhcd Monthly in Monila, Philippine The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor Entered as second class matter Dee. 10, 1945 at the Posit Office at Manila, P. T. Subscription rates: Ono year in the Philippines, 1’5.00; United States $5.00 U. S, Currency, American Chamber of Commerce of the Philippines DIRECTORS E. H. STEVENS. President .1. L. MANNING. Vice-President EAY C. BAILEY, Treasurer E. G. Baumgardner Max Blouse John F. Cotton Samuel Garmcz.y G. C. Miller J. A. Parrish I.EONi ROSENTHAL. Secretary ANNUAL REPORT OF THE AMERICAN CHAMBER OF COMMERCE This past year has been a year of change and development and we may well add, progress in all lines of commercial and industrial activity. In fulfilment of its promises, the United States granted political inde pendence to the Philippines on July 4, on which day in the presence of high-ranking representatives of the American people the new Republic of the Philippines was proclaimed. ' From all points of view, this was the outstanding event of the year. To Americans in the Philippines it was of particular significance, for they found it necessary to adjust themselves to their new position as aliens in the Philippines. The year has been a particularly strenuous one for merchants. Difficulties in getting merchandise into the Philippines have been numerous and at times very trying. Shipping shortages, due to strikes in America, berthing shortages and warehouse shortages in Manila have all contributed to the merchant’s problems. These difficulties are gradually being solved. In the city of Manila many changes have been ef fected. Much of the rubble has been cleared from the commercial districts. Many large office buildings have been repaired or are in process of repair—though in some the repairs are of a temporary nature. Many new buildings have been erected, and while most of these structures built of lumber are for temporary use only and some would- best be classed as shacks, they are re lieving the much needed housing problem for business. Dozens of stores and offices are occupying these tem porary structures. The continued shortage of adequate building materials has prevented permanent construc tion requiring steel and cement. The situation in the Port Area has improved con siderably during the year. By releasing important piers and industrial and commercial properties in that area, the U. S. Army made it possible for civilian enterprises to expand their operations to the benefit of conditions generally. Pilferage of incoming cargoes still consti tutes an important problem, but losses have been re duced materially during the past few months. Transportation facilities of all kinds have improved remarkably during the year. Inter-island shipping and land transportation have been extensively improved in quantity and quality. But it is in the field of air trans portation that the greatest developments have taken place. The end of 1946 found Manila one of the world’s great air centers, a fact that has contributed in an im portant way to the solution of many of our problems. Most of the financial institutions of the country— banks and insurance companies—were rehabilitated or rc-opened during 1946, local banks and insurance com panies having been extended aid by the government. Eleven banks are now operating, as compared with 16 before the war. Deposits reported by the eleven banks, however, are twice as large as pre-war deposits in the 16 banks, amounting in November, 1946, to P480,000,000. Indicating the general confidence in the future, the Bank of America announced in November, 1946, its plan to establish a bra.nch in Manila early in 1947. Due to the almost complete destruction of the Philippine industrial plants, exports lagged far behind imports in volume during 1946. However, in the latter half of the year, the volume of exports showed a no table increase. This increase was contributed to most ly by copra, and hemp. The total value of copra ex ported was for the year about P70,000,000. Half of this total (P35,000,000) was exported during the last three months of the year. Total shipments of abaca to the end of October (the last date for which figures are available) amounted to 167,288 bales valued at P8,005,472. While the United States was by far the most im portant buyer of both products, other countries shared in the trade to some extent. Altogether 12 countries (including the United States) secured copra from the Philippines, and three countries secured hemp. Before the end of the year, the Philippine govern ment had acquired from the United States Surplus Property Commission more than two billion pesos worth of surplus property at less than 25% of its original cost. Included in the transfer were ships of various tonnages, machinery, equipment and supplies that will aid the re habilitation of Philippine industry. Such items as are not required by the government and its various branches will be offered for saje to the public. The moratorium on debts remained in effect at the end of the year, to the detriment of merchants who sold machinery and automobiles and trucks on deferred pay ments plans before the war. These merchants are still denied the right either to collect their accounts or to effect the return of their properties. The First Congress of the Republic passed A^'^No. 62 which established rules and procedures for the i >constitution of corporate records. This Chamber has met with other organizations in Manila for the pur pose of securing desirable changes in the law for the benefit of corporations and owners of stocks. Late in. the year, the Philippine War Damage Com mission established its offices in the Aguinaldo Building on Juan Luna Street and will probably distribute claim forms to prospective claimants in February. This Chamber has initiated a movement to amend the basic war damage law so as to make it more effective in re habilitating the industries of the Philippines. With the granting of independence, the tax obliga tions of Americans in the Philippines presented a con fused picture. This Chamber took an active part in clarifying the situation. Work in this direction has not (Continued to page 21) 10 The rican Chamber of Commerce Journal Febroarr, 1947 FIFTY MILLION PESOS RELEASED BY RFC Primitive Lovina, president and general manager of the Reconstruc tion Finance Corporation, announ ced at a press conference on January 17 that its initial capital of P50,000,000 has been allocated to various rehabilitation projects. The allocations are as follows: 1’15,000,000 for industrial loans 10.000,000 fcr agricultural loans 10,000,000 for home-building 7,000,000 for purchase of large estates for sub division and resale to ten ants 5,000,000 for loans to prov inces, cities and municipal ities 3,000,000 for loans to pub lie utilities The sum allotted to industrial loans will be used for the recon struction of the sugar centrals des troyed during the war, so that this premier Philippine industry may speedily be reestablished. The home-building program has already commenced. Mr. Lovina announced that a total amount of P300,000 had been advanced to borrowers up to the date of the an nouncement. Loans for the rebuild ing of destroyed homes are charged an interest rate of four percent per annum. Loans for the construction of new homes are charged an in terest rate of six percent per annum. The second type of loan is charged a higher rate of interest because the funds used for the purpose are taken from government funds cnrfusted to the RFC for investment, not from the rehabilitation funds. The first loan by the RFC to a local government was made to the municipality of Pasay, Rizal Prov ince, in the amount of P200,000. The purpose of the loan was to re construct the public markets and slaughterhouse. Mr. Lovina stated that the corporation will consider favorably applications from local governments for the reconstruction of waterworks, electric plants and other self liquidating projects. The American Chamber of Commerce Journal February, 1917 NEW TIRE BY B.F.Goodrich WEARS LONGER THAN PRE-WAR TIRES ★ Wider, flatter tread wears longer. ★ Stronger safer body. ★ 16,800,000 miles of tests helped to prove it’s better than prewar tires. Goodrich International Rubber Co. 13th & ATLANTA STS., PORT AREA—MANILA, P. I. F.Goodrieh FIRST IN RUBBER 11 An Iron and Steel Industry for the Philippines By—CHAS. A. MITKE, Consulting Engineer. As the year 1947 commences, the possibilities for industrial expan sion in the Philippines appear greater than ever. Taking one specific item—iron and steel—this is the first time in years that we are confronted with a world shortage. The present large demand for iron and steel products in the Philip pines offers an opportunity for the construction of an Island iron and steel plant. Furthermore, the loca tion of these islands places the Philippines in the center of a circle which takes in points as far distant as Guadalcanal, New Guinea, Dutch East Indies, Singapore, Straits Settlement, Burma, Siam, Indo China, China, etc. Therefore, a plant in the Philippines could supply any of these countries. Most of the essential raw mate rials are mined in the Philippines, and those which are not available here is sufficient quantities may be obtained from adjacent countries. Leafing over the Philippine Min ing Year Book for 1941, I find that on page 114, I made the following statements: “High grade iron ore is avail able in Paracale, Samar, and Marinduque; Ynanganese in Busuanga, chrome and alumina in Zambales, and water power in Mindanao. “If ever there was a combina tion of natural conditions for the development of a large new en terprise for the future growth, industrial expansion and preserv ation of a country, it exists in the strategic mineral and power re sources of the Philippines.’’ In regard to the natural re sources of high grade iron ores, there are four important pro ducers which were active before the war; the Philippine Iron Mines at Larap, with an annual productive capacity of 600,000 tons; the In sular Mine Operators Inc., with a capacity of 200,000 tons; the Gold Star Mining Co. at Marinduque, with 300,000 tons, and the Samar Mining Co. Inc., with 400,000 tons. All this ore ran 60% iron and had a low moisture content. These are all low cost smelting ores, and were formerly purchased by Japan a,nd treated in the large Yawata fur naces. Approximately 1,500,000 tons a year for the next fifteen years can be furnished by these former producers. In addition to the above, the Philippine Government owns the large Suriga,o iron deposit with a billion tons reserve. It is one of the largest iron ore deposits in the world and formely belonged to the United States Government, which gave it to the Philippines. The approximate analyses of this ore is as follows: Iron .................... .. 48.00% Chromic Oxide . . . . 1.00% Nickel.................. .. 1.00% Manganese ........ . . 1.00% Moisture ............ .. 10.00 to 18.00% This is a laterite deposit and its metallurgy has not as yet been worked out. In 1940, the Mitsui engineers, who were performing re search work on the Surigao ores, estimated it might take them an other five years to solve the metal lurgical problems. At that time they stated that their furnaces could not stand the extremely high heat re quired to melt the Surigao ores. Limestone for fluxing ores can be obtained in a number of places in the Islands. Coke can be imported from Southeastern Borneo; Newcastle, N.S.W. Australia, or obtained by mixing French Indo-China high grade semi-anthracite coal with Philippine fines and treating the mixture in coke ovens. Before, and during the war, the Japanese mixed French Indo-China coal with Naga saki fines, and coked them for use in the Yawata plant. In 1946 I saw the same thing being done in the auto matic poal mixing plants in the Yo kohama area. The Pauley Commission has re commended that all Japan’s steel tonnage in excess of 2,500,000 tons be made available for reparations. The peak of Japanese production in 1944 was 11,000,000 tons. The dif ference between 2,500,000 and 11,000,000 tons would be 8,500,000 tons, which, if intact, would be available for reparations. However, much of the productive capacity of the coun try has been destroyed, and the actual production figures at the present time are very much less. When I was in Japan in 1946, 1 studied a number of these plants, and found that, while at first glance, many appeared to be total wrecks, due to incendiary bombs which had started fires on roofs and destroyed all combustible material, a closer in spection revealed that many of the I-beams which formerly supported the roofs, were not even bent. Like wise, much of the machinery, which extended off and on for many miles in the highly industrialized areas, and which at first appeared to be totally destroyed, was not as badly damaged as might be expected, and with a little repair could be put in operation again. The great opportunity in the Phil ippines is three-fold: First:—For the Government to dev elop the Maria Christina Falls to its ultimate capacity of 1,000,000 horse power, the water for which is supplied by nature’s ready made lake—Lake Lanao. According to some engineers, all that is required is to deepen the channel and install control gates. A. D. Williams, Director of Public Works in 1941, often told me “this would provide the cheapest power in the world”. Anywhere up to half a dozen plants could be installed at the various major and minor falls. The construction of power lines to the water fronts, both North and South, certain areas of which might be set aside for in dustrial purposes. The building of about 100 kilometers of con crete roads to connect power plants and cities with the in dustrial plants along the water front. The building of power plants, construction of roads, and installation of power lines, etc., might involve an expenditure of approximately P300,000,000. and take about four years. Second:—Invitations might be ex~ tended to a number of large in dustrial corporations which would be.prepared to invest the necessary capital to utilize the power in various enterprises, such as “iron and steel mills”; “copper smelting and electroly tic plants”; “chemical indus tries” large enough to supply fertilizers for the agricultural areas of the Philippines; “pulp and paper mills”; “ceramic in dustries”; “aluminum indus try”; “ferro-chrome and ferro manganese smelters”; “ship The American Chamber of Commerce Journal February, 1M7 12 building and ship repairs”; “the manufacture of machine tools”; etc. Third;—Small businesses woulid automatically spring up once the larger ones were in oper ation. Henry Ford frequent ly used to mention that it took several thousand small businesses as feeders or sup pliers to his large motor works. An effective iron and steel indus try would require an investment of approximately P250,000,000. This would be needed, in part, to set up the plants obtained from Japan, and to supplement them with a great deal of new equipment. While I saw some electric blast furnaces in Jap an that were new, most of the equip ment had been used and will require extensive repairs. A large part of the machinery was modeled after American designs. as many of the Japanese engineers formerly worked in steel plants in the Eastern part of the United States, and on their re turn home designed the Japanese installations along parallel lines. While P250,000,000, may seem a large figure, some of the plants I saw in Japan, at today’s prices, would cost as high as P400,000,000. The big Mitsubishi plant cost much more than this. A Philippine iron and steel com pany would, first of all, have to select a suitable site and prepare the ground to .receive the machinery. This would undoubtedly include rolling mills, blooming mills, sheet and tube mills, coking ovens with their subsidiary or by-product plants using waste gases for the manufacture of ammonium sulphate, oils, tars, dyes, and other produts. It would also require a flee of iron ore boats to transport the iron ore, coal, chrome and manganese from the mines to the reduction works in Mindanao, as is done in the Lake Superior region (Michigan and Min(Contimied on page 2d) The Road Back. . . (Continued from page 7) foretell at the present time. Al though present prices of tobacco would normallly be considered highly attractive famine conditions in the Cagayan valley have made food crops still more attractive to the farmer. Until the basic problem of food is solved, much land formerly planted to tobacco will continue to be closed to that crop. Making a difficult situation still more difficult, trans portation costs are also extremely high. Before the war it cost P2 to haul a bale of tobacco overland from the Cagayan valley to Manila. Today the cost for the same bale, from Isabela province, is P7 and seemingly little prospect of re duction. Pa cka ging cigarettes Mayflower Photo Studio Subscribe to the AMERICAN CHAMBER OF COMMERCE JOURNAL The American Chamber of Commerce Journal February. 1947 13 Labor In The Philippine Republic By CARSON TAYLOR (Fr^m an address before tkc Manila Rotary Club) Less than 35 years ago the United States Congress deemed it necessary to confirm existing legislation, pro hibiting slavery, involuntary serv itude and peonage in the Philippines and the kidnapping of persons to be sold into slavery here or elsewhere. It is only logical to assume that of fenses against humanity of this character were being committed; it is only reasonable to believe that the Congress acted upon reliable knowledge of their commission. The advancement of labor in these less than four last decades has been rapid if not complete. There has been a succession of labor laws de signed to protect and bettei* the lot of the laborer, the servant, the me chanic, employee and tenant. As far back as 1915 legislation was enacted to protect contract la borers. In 1923 the Sixth Philip pine Legislature approved regula tions for the employment of women and children, prohibiting the employ ment of the latter below certain ages and their working in dangerous en terprises or those which might tend toward moral corruption. The Ninth Philippine Legislature prov ided free emergency medical treat ment for employees and laborers of commercial, industrial, and agri cultural establishments. These were but a few of the laws intended to benefit employees and tenants that were adopted over a period of years. In 1936 the First National Assem bly enacted legislation setting forth the rights of unions to engage in collective bargaining. The law, in part, said: “All associations which are duly organized and registered with, and permitted to operate by, the De partment of Labor, shall have the right to collective bargaining with employers for the purpose of seek ing better working and living condi tions, fair wages, and shorter work ing hours for laborers, and, in gen eral, to promote the material, social and moral well-being of theii* mem bers, and no labor organization shall be denied such registration and permission to operate, except such whose object is to undermine and destroy the constituted govern ment or to violate any law or laws of the Philippines, in which case it shall be refused registration and permission to operate as a legitimate labor organization.” Carson Taylor This Act, unlike any legislation existing in the United States, took precautions to make certain that labor unions should not have the un bridled right to operate without re gard to the public interest or with out control. It required that legiti mate labor organizations which were duly registered and permitted to operate, must keep books and re cords containing alphabetical lists of their members, minutes of their meetings and that once a year they must submit to the Secretary of Labor a report of fiscal and other activities during the previous year. Failure to comply with this require ment was cause for revocation of the labor organization’s license. The precautions taken against unions, however, were not one-sided. The same legislation made it a felony (and provided penalties) for any employer to intimidate or coerce his employees with the intent of per suading them not to join a legiti mate labor organization of their own choosing. It invoked the same pe nalty against employers who dis missed or threatened to dismiss em ployees because of membership in legitimate labor unions. This was a far cry from the days when it was believed necessary to enact legis lation prohibiting slavery, peonage or involuntary servitude. • 1940 witnessed the adoption of even more far-reaching labor legis Jation designed to protect the rights and interests of working men and women. In many ways this was the Philippine counterpart of the bitter ly disputed American Wagner Act. It was called the National Labor Relations Act, and it was protested by industry because of its drastically restrictive provisions and the legulations promulgated thereunder, as well as by those sections of labor which wanted more and more free dom for themselves and even more restrictive regulations of employers. Commonwealth Act No. 103. adopted by the First National As sembly, was “An Act To Afford Protection of Labor by Creating a Court of Industrial Relations Em powered to Fix Minimum Wages for Laborers and Maximum Rentals to be Paid by Tenants, and to En force Compulsory Arbitration Be tween Employers or Landlords, and Employees or Tenants Respectively.” It also created the Court of Indus trial Relations, having jurisdiction throughout the entire Philippines, to consider, investigate, decide, and settle all questions, matters, contro versies, or disputes arising between or affecting employers and em ployees or laborers, and between landlords and tenants or farm laborers and to regulate the rela tions between them. The Court was directed to take cognizance for the purpose of pre vention, arbitration, decision, and settlement, of any industrial or agricultural dispute causing or likely to cause a strike or a lockout. Such dispute might arise from dif ferences regarding wages, shares or compensation, dismissals, lay-offs, suspensions of employees or labor ers, tenants, or farm-laborers, hours of labor, or conditions of tenancy or employment. The only requirements imposed upon the Court for its intervention in such disputes were that the num ber of employees, laborers, or tenants, or farm-laborers involved exceeded thirty and that the dis pute be submitted to it by the Secretary of Labor or by either or both of the parties to the contro versy. Here again was a dif ference between the Wagner Act and the Philippine law. In the latter the employer was given the right to refer a dispute to arbitration. In the United States he was denied that right. Broad powers given to the Cour! authorized it to fix minimum wages, with the consent of the President of The American Chamber of Commerce Journal February. 1947 14 the Philippines, for employees, laborers and tenants. It was em powered to require production of books, statements of accounts, re cords, and other financial state ments by both parties involved so as to make a just determination of fair minimum wages. Under the American Wagner Act the union is confronted with no such requirement when seeking increased wages or in substantiation of strikes or other actions against employers. The burden of producing files and re cords for the scrutiny of aji interest ed government agency falls solely upon the employer. In the Philippine law violations of the Court orders, awards or deci sions, by either the employer or the labor organization constitutes con tempt of court. Also under the provisions of Commonwealth Act Number 103, both of the parties may appeal to the Supreme Court within, ten days after its award, order, or decision. There is another fundamental and vital provision of the Philippine law. Pending award or decision by the Court with regard to a dispute, no employee, tenant, or laborer shall strike or walk out of his employ ment when so enjoined by the Court after hearing and when the public interest so requires; and if he has already done so he shall forthwith return to it by order of the Court. In the event of failure of the em ployee to return to work upon Court order, the Court may authorize the employer or landlord to accept other employees, tenants or laborers. The law also protects the em ployee by providing that while a dispute is pending before the Court, the employer shall not accept other employees and, unless the Court au thorizes otherwise, shall permit his employees to continue in service under the last terms and conditions existing before the dispute arose. No employer or landlord is per mitted to suspend, lay-off, or dis miss any employee, laborer, tenant, or farm-laborer, without just cause, from the time a laborer association or organization or group of laborers or tenants or farm-laborers has pre sented to an employer or landlord a petition or complaint regarding any matter likely to cause a strike or lockout, provided the Department of Labor has been notified of the peti tion or complaint, or while an agri cultural or industrial dispute is pending before the Court. In case of non-compliance with any award, order or decision of the Court of In dustrial Relations after it has be come final, the judgment may be enforced by a writ of execution or any other remedy provided by law in Courts of First Instance. Legislation enacted in 1938 fixes the legal working day for industry and business at eight hours and the normal work week at 48 hours with the provision that if an employee is required to work on Sundays or holidays, except under certain un usual circumstances, he be paid at least 25 percent more than his re regular rate. In. 1935 the Bureau of Labor under the administrative supervi sion of the Department of Labor was created as an indication of the ever-increasing interest in labor and labor problems. Although Commonwealth Act Number 103 was enacted in 1940 the critical turn of world events soon thereafter and the encompassment of the Philippines in these af fairs delayed for many years the test of the operation of the law. In the United States aftei' Japan launched on its camphjgn of con quest the tremendous industrial po tential of that nation was forced into reality. Nevertheless it was delayed and hindered by strikes in certain industries, labor in the early days took advantage of its new found freedom from restraint. It must be said, too, in all fairness that certain industrialists, in their fight against ever-increasing controls ap peared to put self-interest before that of country. Throughout the entire war period in the United States reports to the people of labor-management disputes irked and irritated a substantial portion of the public and prepared public opinion for the swing of the pendulum away from labor and the unions which purported to represent it as well as from domination by gov ernment agencies and control by re gulations, the outstanding character istic of which in many instances was partiality and prejudice. In the Philippines in the grim days of the occupation there was no opportunity for expression of labor management discord. The Japanese have never been noted for their efforts to better the lot of the em ployee, laborer or tenant. With the liberation, however, both labor and management in the Philippines came to the threshold of great mutual op portunity. And with the granting of independence for this nation they both stepped through the open door which, on the one hand can lead to their tremendous advantage and the benefit of the entire Philippine Re public or, on the other, can be devas tating and even ruinous to all three. For the immediate future the Philippines has need of many work ers. There is much work to be done—enough for all. By this I do not mean necessarily in the field of urban development, although we all know there is plenty of room for that. But, we must first rehabili tate those things which bring wealth to the Nation, and, by bring( Continued on page 22) INHEEDER INCORPORATED PHARMACEUTICAL SUPPLIES Dea/ers in: INSTRUMENTS GROCERIES-TEXTILES 5th FLOOR ------------- TRADE & COMMERCE BUILDING---------------- MANILA The American Chamber of Commerce Journal February, 1947 15 Manila Rises. . . (Continued from page 5) city engineer’s office from April to December) consisted of 2,887 permits approved by the city government carrying a total valuation of P12,186,150. In 1946, the building ac tivity as measured by value was quadrupled, a total of 2,687 city per mits, being given with a combined valuation of P46,092,567—decidedly a new record in city building con struction from the peso point of view. The high cost of construction jvas largely responsible for the large value. The above figure would prob ably have been still larger but for the delay in the approval of the zonification plan and the shortage of ma terials for reconstruction. In comparison, the prewar annual rate of construction seemed low. Total 1941 city construction consist ed of 2,190 permits issued by the city engineer’s office which carried a combined valuation of P5,692,470, or a monthly average of less than half a million pesos against the 1946 average of about P4,000,000 month ly. From this building activity, city government last year collected P191, 184.47 in fees. In addition, the city government collected P19,822.19 from the setting up of 2,125 sign-boards. City construction in 1946 gained impetus in the latter part of the year although the early months of the year saw activity greatly ac celerated in comparison with the 1945 rate of construction. The year’s trend as shown by the figures on ap proved permits also showed construc tion as slowing down during the rainy season and picking up din ing the dry months. The following figures from the city engineer’s office indicate the monthly rate of building activity in 1946, showing the number of per mits issued by the city engineer and the total approximate cost of build ing: A’o. of Plans Approximate Approved Cost January . . . 451 P2,133,335 February . . 452 2,502.140 March ......... 436 4,883,490 UNION PLUMBING COMPANY — PLUMBING CONTRACTORS — Installations—Repairs—Supplies Office: 1883-B Azcarraga (Near Old Bilibid Gate) "Our staff of Experienced Plumbers are at your disposal to give you the best Plumbing Service" April ......... 387 3,355,952 May .......... 538 4,514,310 June ........... 541 3,921,450 Julv .......... . 454 3,124,040 August . . . .. 483 4,926,690 September . 507 2,416,170 October .. .. 535 4,658,500 November . 468 4,627,390 December . . 435 5,037,100 The 1946. figures seem b especially compared with prewar building statistics; but they were not big enough when compared with actual requirements for new hous ing and store and office space to meet the increasing demands of busi ness expansion. From a broad and long-term point of view, building ex perts would hardly call 1946 a year of rebuilding. Probably 1947 will witness the real beginning of recon struction to restore Manila’s skyline and make it, according to plans en visioned in the zonification blue print, a bigger and better city than it ever Was in the past. But this job of rebuilding is ex pected to take a number of years, probably as long as the restoration and rehabilitation of the country’s basic economy itself. The factors that would make 1947 a bigger year in building activity than last year are apparently just the reverse of those that held back the potential demand for full-scale rebuilding in 1946 to wit: 1. Availability of more funds for construction with the expansion and liberalization of credit facilities; 2. Availability of more tools and supplies for rebuilding, with the ar rival of more machinery and equip ment, hardware and building mate rials from the U.S. and other pos sible suppliers; 3. The start of payments on small claims by the war damage commis sion which will benefit small own ers; and 4. The possibility of the zonifica tion plan being finally completed and put into effect. If newspaper advertising of new products are on the market is any index to business and trade trends, then 1947 is likely to become the real beginning in rebuilding. A year ago, most of the display advertising in Manila papers gave almost over whelming emphasis to foodstuffs. Today, advertising copy shows that more products vitally needed in re building have arrived and are new available. Advertising has definite ly shifted to other goods the demand for which started to be evident last year and will very likely continue for some time to come. These in clude machinery and equipment, farm and industrial tools including tractors, motor and marine engines, electrical appliances, office supplies, and various types of hardware and building materials and supplies. In 1947, too, there is likely to be a greater supply of lumber which will permit home-building require ments to be more easily met. The lumber industry is anxious to expand to a point which will not only sa tisfy the local demand but also pro vide for export, particularly to the United States which is reportedly willing to pay attractive prices in order to supplement its domestic supply which is considered hardly enough to meet the tremendous de mands of the U. S. housing program. Local importers of building ma terials from the U.S. continue to be somewhat pessimistic over the pros pect of obtaining adequate supplies this year because of the labor trou bles which necessarily set back pro duction schedules in the heavy indus tries. But the overall picture of U. S. industry now indicates a possi ble step-up in American shipments of industrial goods vitally needed in the rehabilitation work in war-ravaged countries. The New York Journal of Commerce, in a recent survey, pre dicted that American exports of heavy machinery and equipment, railway equipment, electrical appli ances, textiles and a number of Gther items will increase in 1947. This estimate was made on the ba sis of a, peak export trade amount ing to around $10 billion, against the previous prewar high of $8.2 mil lion- in 1920. Steel circles in the U.S. also fore cast a considerable expansion in tlje production of the metal-working in dustries. The significant thing about this forecast is that it was predicat ed on the possibility of continued la bor troubles and material shortages. With all the possible favorable fac tors pointing to a substantial step-up in building activity, Manila can well look forward to another year of brisk rebuilding that is likely to be on a more permanent basis. The American Chamber of Commerce Journal February. 1947 16 List of Government Owned and Controlled Corporations and the Purposes of their Creation 1. National Development Company —It was organized to serve as an. agency of the Government in the furtherance of its eco nomic policies and to pro mote and maintain a suffi cient general production by an efficient coordination of the productive forces of the country and to secure a stable market for Philippine pro ducts. 2. Philippine National Bank—It was created to engage in the general banking business and to serve as the official de positary of the funds of the Government and its instru mentalities. 3. Manila Pailroad Company — This is a corporation orga nized for the purpose of constructing, maintaining and operating a railway line. 4. Philippine Charity Sweepstakes Office — This is a public corporation created by a special act of the Legislature for the purpose of directing and managing the holding of charity horse race sweeps takes. 5. National Coconut Corporation—This corporation was or ganized for the purpose of establishing, keeping, main taining and operating drying plants or copra driers or co conut centrals with a view to adjusting the coconut in dustry to a position indepen dent of trade preferences in the United States, and to provide facilities for the bet ter curing of copra products and the proper utilization of coconut by-products. 6. National Abaca and Other Fibers Corporation—It was organized to insure a per manent, sufficient and ba lanced production of abaca and other fibers for the re quirements of the local indus try and for exportation and to stabilize the price of abaca and other fibers. 7. Government Service Insurance System — This office was created to provide an insu rance system for government employees in order to pro mote their efficiency and welfare. 8. Metropolitan Water District— It was organized for the pur pose of furnishing an ade quate water supply and sewe rage service to the inhabi tants of the City of Manila and outlying municipalities. (Continued on page 20) Every Month the JOURNAL brings you important statistics and informational articles Subscribe Now! R5.00 for 12 issues A BETTER BLEND FOR BETTER DRINKS Sole Importers SORIANO TRADING COMPANY A. SORIANO y CIA. General Managers M.R.S. Bldg.. 5th Floor — Manila — Tel. 2-79-61 AA SORCO AAAAAAAAAAAAAAAAAAAAAAA of ('< 17 Manila Stock Exchange Report—1946 Banks and Insurance Pre-war Closing Opening High Low Close LISTED STOCKS Bank of the Philippine Islands ......................................................... China Bank .......................................................................................... Peoples Bank ........................................................................................ Pilipinas Cia. de Seguros....................................................................... The Insular Life Assurance Co. Ltd................................................. The Philippine Guaranty....................................................................... Commercial and Industrial <Jhe Manila Wine Merchants ............................................................. Marsman and Co. (Common) ................................................ Marsman and Co. (Preffered) ....................................................... Pampanga Bus Company....................................................................... Philippine Racing Club........................................................................ San Miguel Brewery ........................................................................... S u g a r s. Central Azucarera de Bais .............................................................. Central Azucarera de La Cariota .................................................... Central Azucarera de Pilar ........................... ................................ Central Azucarera de Tarlac ............................................................. North Negros Milling Co........................................................................ Pampanga Sugar Development Co........................... ...................... Victorias Milling Co............................................................................. M i n i n g Antamok Goldfields Mining Co........................................................... Atok Gold Mining Company ............................................................ Baguio Gold Mining Co.......................................................................... Batong-Buhay Gold Mines, Inc.......................................................... Big Wedge Mining Co. (*) ................................................................. Consolidated Mines, Inc......................................................................... IXL Mining Company.............................................. •...................... Lepanto Consolidated Mining Co......................................................... Masbate Consolidated Mining Co....................................................... Mindanao Mother Lode Mines, Inc.................................................... San Mauricio Mining Co..................................................................... Surigao Consolidated Mining Co......................................................... * 1.20b P 2.50 P 3.05 P 2.50 P 3.05 .50a .45 .90 .40 .85 .50a .45 1.00 .45 .95 1.32 3.50 3.70 1.20 1.90 .57 1.70 1.82 .90 1.06 135.00 150.00 335.00 150.00 335.00 P400.00a P500.00 P 530.00 P500.00 P521.00 80.00a 75.00 105.00 75.00 102.00 80.00a 80.00 95.00 80.00 100.00 65.00a 65.00 90.00 65.00 80.00 100.00a 23.00a 25.00 25.00 21.00 21.00 100.00a 100.00 100.00 100.00 100.00 P 0.0525 P 0.07 P 0.07 P 0.035 P 0.045 .53 1.20 1.50 .60 1.16 ’.16 .20 .22 .07 .08 .0042 .007 .011 .0056 .007 .45 1.10 1.60 .70 1.10 .0057 .007 .017 .006 .015 .20 .22 .27 .08 .08 .215 .22 .40 .12 .385 .08 .15 .16 .07 .075 .54 .75 .96 .48 .64 .155 .65 .65 .275 .275 .205 .39 .41 .27 .32 OVER THE COUNTER PREVIOUSLY LISTED STOCKS Commercial-Indiistrial-Sugar Jai Alai Corporation .......................................................................... Bacolod-Murcia .................................................................................. Talisay-Silay ..................................................................................... M i n i n g Acoje Mining Company...................................................................... Balatoc Mining Company...................................................................... Coco Grove, Inc..................................................................................... Demonstration Gold Mines, Ltd...................................................... East Mindanao Mining Co. Ltd......................................................... Itogon Mining Company...................................................................... Paracale Gumaus Consolidated Mining Co....................................... Suyoc Consolidated Mining Co............................................................ United Paracale Mining Company................................................... MISCELLANEOUS Benguet Consolidated Mining Co....................................................... Far East Oil Development Co............................................................ Manila Jockey Club ........................................................................... P 8.30 P .315 4.00 .065 .035 .06 .23 .235b .13 .20 P 3.30 .22 1.60 P13.00 10.00 6.00 P .32 5.00 .055 .03 .22 .22 .105 .225 P 5.00 .35 1.80 P15.00 11.00 6.50 P10.00 9.00 6.00 P .43 P .18 6.00 3.00 .0725 .03 .03 .24 .22 .11 .28 .03 .085 .09 .05 .10 P 7.10 .50 3.00 P 3.20 .18 1.80 P15.00 9.00 6.50 P .20 3.60 .037 .03 .11 .11 0525 .135 P 3.90 .50 2.80 a = Asked price; 1> = Bid price » New Stock The American Chamber nt Commerce Journal February, 1W 18 Stock Market. . . (Continued from p<ty<- :>) cidently, for chartists, the low point of our Mining Share Average for 1945 was 21.15). The accompanying chart shows the year’s fluctuations as plotted on a weekly closing basis. As regards individuals issues, the outstanding performers were Atok, Benguet Consolidated, Big Wedge, Lepanto, Mindanao Mother Lode, San Mauricio and Surigao. All of these issues ended the year substan tially above their prewar close. COMMERCIAL AND INDIVIDUAL The feature of this group has been the sustained demand for San Mi guels, resulting in a spectacular rise in these shares. This reflects the remarkable increase in demand for the Company’s products. Philip pine Racing Club shares have been actively traded all year in a wide price range. Jai Alai stock has been in demand latterly, and the years closing sale of P15 as com pared with P8.30 in December 1941 reflects the public estimate of this corporation’s potential earning power when ‘Quinelas’ will again be enjoyed by Manilans. SUGARS The past year has witnessed a wel come return of investment demand for shares of this group. All active issues are in good demand at higher prices than prewar thus reflecting optimism on the future of the indus try. __________ BANKS AND INSURANCE With the exception, of China Banks, all issues in this group have lost ground marketwise as compar ed with 1941. Until the status of occupation pay ments is decided, losses arising there from cannot be accurately determin ed. Whatever the final decision in the matte)- may be, it appears cer tain that the entities involved have suffered substantial losses as a re sult of the Japanese occupation. However, past operating records of these corporations suggest that in the years to come their war losses will be recovered with comparitive case. The year’s closing bid quota tions hardly reflect the market for these stocks, as there are no mate rial sellers except at much higher prices. NEW AIR ROUTE The new ‘Northwest Passage to the Orient” was recently inaugurat ed by the Northwest Airlines. A new DC-4 plane was the first to fly the new route, arriving in Manila on January 15. The plane landed at the Manila international airport at Makati after completing its commer cial survey flight. Among the passengers on this first flight over a new route were Donald J. King, vice-president of the Northwest Airlines, two CAA repre sentatives (Ridhard D. Schall and Cady R. Bullock), F. G. Jarvis, civii ail- attache of the United States in Shanghai, and Donald E. Bateman, Manila oldtimer and ex-internee at Sto. Tomas. Bateman is district Manila’s An Inferno!? “The city today, especially the downtown district, is an inferno of dust.” —Ed. Manila Times Parents who can afford it should’nt risk their health... Their life and the health of their beloved ones, living in the city. They should live where dust is “ignored”. We still have homesites for sale UNIVERSITY, ESPA5JA, QUEZON CITY, CAMP MURPHY and NEW MANILA. We sell beautiful homesites from 30'0 to 5,000 sq. m. payable 20% down & the balance in 60 monthly install"P r n nents ± MAGDALENA ESTATE, Inc. per sq. m. 7 and up 211 Consolidated Investments Bldg. Plaza Goiti, Manila traffic manager l'<»r the Manila of fice <>f the Northwest Airlines. Be fore the war he was passenger agent of the Everett Steamship Co. in Ma nila. Mr. King explained that the new route is by way of Canada, Alas ka, Tokyo and Shanghai. The flight by this route from Minneapolis, Min nesota, to Manila can be covered in 44 flying hours. Northwest Airlines, according to Mr. King, was organ ized by a group of U. S. army fly ers who operated from Alaska to Asia during the last war. They came to the conclusion that the new; route is more convenient than the customary route through Honolulu and across the South Pacific. Northwest Airlines has announceed that it expects to start scheduled flights over the new route by May 1. The schedule calls for three flights a week. Other arrivals by this first survey flight were: Chester M. Brown, Tho mas W. Cumming, Robert/ A. Ebert, James J. Fauteux, Waldo L. Holling sworth, Lewis H. Larson, Paul I. Linden, George D. Linklater, Wil liam McKnight, Ralph E. Nelson, Alroy D. Piepgras, Ronald E. Stelziz, Barnett H. Stevens, John Woodward, Ernest Yoris and Eugene Zimmer man of the Shell Oil Co. A. C. HALL & CO. MEMBERS — MANILA STOCK EXCHANGE COMMODITY EXCHANGE, N. Y. NEW YORK COFFEE & SUGAR EXCHANGE PHILIPPINE & U. S. SECURITIES —COMMODITIES INSULAR LIFE BLDG. MANILA The American Chamber of Commerce Journal February. 19*7 19 List of Government. . . (Continued from l>"!7' 17) 9. National Power Corporation— This is a public corporation created for the purpose of undertaking the development of hydraulic power and the production of power from other sources. 10. Itnral Progress Administration —This corporation was or ganized to promote small land ownership and to improve the • living conditions and the gen eral welfare of the rural po pulation; to acquire big land ed estates and to subdivide the same into small lots for re sale or lease to bona fide oc cupants or in the absence thereof to persons qualified to acquire public lands. 11. Philippine Relief and Rehabili tation Administration—This office was organized as an agency of the Government to deal with UNRRA and other relief agencies; to plan, co ordinate and administer the activities for the relief of victims of war and other calamities; to coordinate the procurement and equitable distribution of supplies and equipment for relief and re habilitation and to study and formulate plans for the ra pid rehabilitation and re construction of the Philip pines in agriculture, indus try, trade and commerce. 12. National Trading Corporation— It was organized to purchase, store, provide storage facili ties for foods, clothing, fuel, fertilizers, chemicals, building materials, implements, ma chineries and equipment re quired in agriculture and in dustry and other articles of prime necessity and to sell them in the manner apd method customarily followed in trade to prevent scarcity, monopoly, hoarding, specula tion, manipulation, private control and profiteering. 13. Met ropolitan Transpor tation Service—This was created to coordinate, maintain, and operate the passenger bus service formerly established by the Economic Control Administration and to avail and make use of the equip ments and supplies turned over to the then Common wealth Government by the United States Army. 14. National Tobacco Corporation— This was established to promote effective merchandis ing of leaf tobacco in domestic and foreign markets; to es tablish and maintain balance of production and consump tion of leaf tobacco and such marketing conditions there for, as will insure living wages to tobacco farmers and laborers; to improve living and economic conditions of tobacco farmers and laborers by gradual and effective correction of irregularities in the industry; and to im prove quality of leaf tobacco. 15. National Land Settlement Ad ministration — It was or ganized to facilitate the ac quisition, settlement and culti vation of lands; to encourage migration to sparsely populat ed regions and to facilitate the amalgamation of the people in different sections of the Philippines and to de velop new money crops to take the place of the present export crops which may suffer from the loss of pre ference which they enjoy in the American market. 16. National Cooperative Adminis tration—This is an office created for the promotion of cooperative enterprises. 17. National Housing Commission— This was created for the pur pose of acquiring, developing, improving, constructing, leas ing and selling of lands and buildings or any interest therein in the cities and po pulous towns with the object of providing decent housing for those who may be found unable otherwise to provide themselves therewith. 18. Surplus Property Commission— This was created to take charge of the acceptance, ad ministration. sale' and dis position of surplus property acquired by the Government of the Republic of the Phil ippines from the Government of the United States. 19. Cebu Portland Cement Comp any—This corporation was organized for the purpose of engaging in the manufacture, development, exploitation, and sale of cement, marble and other kinds and classes of building materials and the processing or manufacture of materials for any industrial or commercial purposes. 20. National. Rice and Corn Cor poration — This corporation was organized to aid in the rehabilitation and stabiliza tion of the rice and corn in dustry in the Philippines through the maintenance of stable price for said commo dities, the prevention of spe culation in the marketing thereof and the exploitation of consumers. 21. People's Homesite Corporation — This was organized to ameliorate the living condi tions of the people by stimulat ing home building and thrift; to established modern re sidential communities and to aid people of moderate means to acquire a lot and a house. 22. National Food Products Cor poration — This corporation was organized to engage in canning and preservation of fish, meat, vegetables, dairy products, fruits and other foodstuffs and to secure stable market for the manu facture thereof in the Phil ippines or abroad; to conduct experiments in connection with the production, canning and preservation of food pro ducts ; to manufacture cans and other containers and to finance the producers of raw materials needed for this en terprise. 23. Rehabilitation Finance Cor poration — This corporation was organized and took the place of the Agricultural and Industrial Bank and whose main business is to grant loans for the rehabilitation, establishment or development of agricultural, commercial, or industrial enterprises in cluding public utilities and to grant loans to government owned and controlled corpo The American Chamber of Commerce Journal February, IS4. 20 rations and political subdivi sion for their rehabilitation.. 24. Manila Hotel Company — This is a subsidiary of the Mani la Railroad Company. It was organized for the purpose of engaging in the business of operating, conducting and managing hotels and hotel properties. 25. National Footwear Corporation — This corporation was or ganized to promote the local footwear industry. It is a subsidiary of the National Development Company. 26. National Warehousing Corpora tion — This corporation was organized to establish bonded warehouses in different parts of the islands. This corpora tion is not in operation now. 27. Insular Sugar Refining Corpo ration — This corporation was organized to engage in the refinery of sugar. It is a subsidiary of the Nation al Development Company. Editorial . . . (Continued from p. 10) been completed yet, but definite progress has been made. There is in Manila at the present time an Amer ican Commission which is studying the problem in preparation of the concluding of a convention between the two countries to govern the tax ing of Americans in the Philippines and Filipinos in America. This Commission, which is assisting Am bassador McNutt, is open to sug gestions, written or oral, by interest ed parties. Since the American Army released the Post Office building to the local postal authorities, there has been a great improvement in the handling and distribution- of mail. The tele graph service of the post office has also been extended and improved. Although the Chamber’s activities as a general bureau of information were necessarily continued to some extent during 1946, they were not as dominant as in 1945. The Chamber was still called on during the year in review to furnish proof of death to people in America of friends and re latives in the Philippines, and certi ficates of births of children now in the United States who were born in (Continued on page 22) Sole Importers SORIANO TRADING CO. M.R.S. Bldg. Tel. 2-79-C1 There must be a reasO Walk all over town. you find studios here anst there-all «.thJ ^fieidof they are the best * douW photography. claims substantiate it. We have been ap^t6asb>their Commerce Maga and official photogi P • Lines n7cXrhlX better proof can we offer than- these ap pointments There must be a reason for their over whelming choice of our services! The American February, 1947 Chamber of Commerce Journal 21 Labor in the. . . (Continued from page 15) ing wealth to the nation promote the well-being of all the citizens. We must work to produce. We must produce the things for which we can receive payment in the world’s markets. These things are not only the articles and produce of industry, but are the products of the natural resources of the Philip pines. As we progress in the pro duction and development of those things which the world will come to us to buy, we can give time, effort &nd investment towards the round ing out of the national economy. In return for our -exporting of increased quantities of the things which the Republic can produce, we shall secure foreign exchange. With a favorable trade balance on the export side, we can look to the im portation of greater quantities of the manufactured articles and things which we do not have here. Increased amounts of these im ported goods in our markets will bring prices down. A downward trend in prices means a lessening in the terrific inflation to which we have been, exposed in the mere cost of living. Management and employ ers in general are unable to meet the top demands of workers under an inflationary condition unless they force still higher the inflationary spiral, which, in the end results in disaster for all. But, management and industry and labor can. meet the demands of the worker by reducing prices through increased production. It is again, I believe, a basic matter of the operation of the law of supply and demand. I believe that labor is entitled to a living wage. I believe further that it ought to be possible for a worker to secure to himself a decent and ade quate scale of living on the basis of his earnings. The inflationary way of making these ends meet is to raise wages to try to meet rising prices, but the two never can be equalized because in the final analysis prices will always remain higher than wages. The alternative, as I have said I believe, lies in producing enough to bring prices down through normal operation of the laws of economics. At the same time consideration must be given to the fact that the prices of manufactured articles here are conditioned, in part, by the basic cost of production at the place of manufacture, plus the cost of trans porting them to our markets. This would seem to indicate, on the basis of price indexes in the United States and in other industrial countries, that some increase in costs is going to prevail regardless of local factors. If the worker is to be paid more for producing a given article it follows that the manufacturer is going to have to charge more for it. The same is true here. If agricul tural workers are to be paid more for growing rice, then, the price of rice in the market is going to be higher than it was before the war. I be lieve a, basic upward adjustment of our wage structure is in order. I do mean this on the basis of emergency bonuses to compensate for temporary increases in living costs, but on a per manent basis. This is an axiom which has been developed out of the experience of other countries as they worked their way up the scale of civilized progress. We all of us,. I believe, would pre fer to see this matter worked out without upheaval. At this time—as never before—we in the Philippines cannot afford- to have a situation, already delicate, further disturbed. It is a time for understanding on the part of both employer and employee. In terms of human progress there is no such thing as the good old days. Rather than look backward, we must all look forward, and in looking we must also work towards a better estate for everyone. In this country of vast, untapped natural resources there are ample good things for everyone. But none can have them unless all work for them. Labor must realize that in dustry, which after all had the basic money investment here, has been hard hit, yes, in many cases pros trated. On the other hand, employ ers must realize and understand that the mass of the people who work for a living have also lost, many of them far more in propor tion than the employer group. I do not mean to weigh one loss against the other in any sense whatsoever. I appeal only for mutual under standing of the problems that con front Both groups. Labor cannot be expected to work for less than the cost of his daily food and other normal expenses of living. If the Philippines will at tain the goal of self-sufficiency infcod production, the first great triumph of the new Republic will’ have been accomplished. Labor, on the other hand, cannot expect sudden and unwarranted gains, sudden social and economic benefits from an economy which is struggling hard to arise ip the face of great’ industrial war losses or from a government which is having a difficult time in making both ends meet. To make unreasonable demands will not only dela^ solid gains for 22 labor, but it may well negate the possibility of labor achieving them. It will serve to promote dissension among the Philippine people. The example of American experience where middle class people turned on labor is only too vivid and recent. Within the framework of present Philippine labor legislation there are ample safeguards for both employee and employer. It is the high pri vilege of both labor and capital to make them work for the benefit of this new Republic. What the employers and the gov ernment to do and for labor and what labor does to itself may be the most important factors in the future economic development, of the Republic of the Philippines. Editorial . . .(Continued from p. 21) this country. People in the United States continued to ask the help of the Chamber in locating friends and relatives in the Philippines, which help was given whenever possible. The general lines of the Chamber’s activities are indicated in the discus sion of developments and conditions in the first part of this report. Members have been apprised specifi cally cf these activities by the 107 Bulletins issued by the Chamber during the year. In addition nu merous correspondence has been handled with American manufac turers and exporters seeking repres entation in the Philippines. The Chamber donated to the American School the sum of Six Thousand Pesos (P6,000.00) by re linquishing that sum from the School’s indebtedness to the Cham ber of P12,000.00. The following new members have joined the Chamber during the year: 1. American Factors (Phil.) Inc. 2. Armour & Company 3. Bataan Motor Corporation 4. Liddell & Company, Inc. 5. Nestie’s Milk Products (Ex port) Inc. 6. Neuss, Hesslein Company, Inc. 7. Peter Paul Philippine Cor poration 8. Philippine Industrial Equip ment Co. 9. Philippine Motors, Inc. 10. Andres Soriano 11. Universal Trading Company, Inc. 12. John R. Wagner The By-Laws have been revised during the year and will be publish ed as soon as the Chamber’s recon stituted incorporation papers have been approved by the Securities and Exchange Commission. The American Chamber of Commerce Journal February, 1947 An Iron and. . . (Continued from, page 13) nesota) where the iron ore is hauled 500 miles, by w'ater, to Cleveland, Ohio. Aside from iron and steel, large chemical works are needed for the manufacture of all kinds of fertili zers, necessary to enrich the soil for the various crops in the Philippines. ’Such installations would require about the same amount of capital as the iron and steel plant. The aver age rice production per acre in Jap an is stated to be three times that of the Philippines. This is largely due to the constant use of fertilizers. For example, it has been, found in Japan that every ton of phosphate rock imported and processed in to fertilizer, increases the yield in wheat and rice from two to six times its former production. The most commonly used processed fertilizers in Japan are ammonium nitrate and ammonium and phosphoric sulphate. Undoubtedly, a number of Japa nese chemical plants will be declared surplus, and the Philippines might have the rare opportunity of secur ing plants for the manufacture of various fertilizers. Also, soap, lye, caustic soda, chlorine for water puri fication, and many other useful articles. For centuries, little or no fertilizer has been used by agriculturists in the Philippines. The soil generally, has become impoverished, and the pro duction per‘acre is low. More re cently, small amounts of artificial fertilizer were imported from foreign countries. If fertilizers can be produced in quantity at a low cost and their use made obligatory, the increased yield per acre would go a long ways to wards solving the food problem and agrarian unrest. Report on the. . . (continued from page 8) The National Development Co. has also started to open the Malangas Coal in Zamboanga. Over P300,000 has 'been released for this purpose and they expect to produce next year. Mining in Semirara coal fields is being resumed. The Sinukuan Coal is working its holdings cn the Island. Considerable interest in the min ing industry of the Philippines has been shown by some capitalists from the United States. Repre sentatives of some mining interests in the States are examining mining properties in the Islands with the hope of finding property to be either bought outright or financed and operated on a royalty or profit sharing basis. Among those now examining properties are: The Panaminas Inc., Philippine-American Corporation and Col. Tallant of Freeport Sulphur. EXPORT CONTROL RELAXED The government is gradually re laxing control of the exportation of commodities for which there is no longer much public demand or the supply of which now exceeds nor mal domestic requirements, a Malacanan spokesman said on January 21. This official revealed, however, that the export ban on critical com modities or articles such as building materials, rice and popular brands of textiles will continue for a long time in order to provide adequate protection for the consuming public. The government has stricken from the long control list certain, unpo pular classes of textiles such as those used for draperies, ready-made dresses bought at high prices from abroad, cheap brands of cigarettes, chemicals and medicines certified by the bureau of health to be not need ed here, according to the spokesman. Some surplus materials which were sold by either the foreign li quidation commission or the sur plus property commission such as large tractors were also dropped from the control list, it was reveal ed. Malacanan has turned down per sistent pleas of lumber men for the lifting cf the ban on lumber because this material is greatly needed in the rehabilitation and reconstruc tion of the nation, the informant said. The government is closely watch ing the trends of domestic supply and demand on controlled commod ities. If it finds that there is a substantial supply of a certain, pro duct or there is no more demand for it locally, the ban will be lifted so that the owners could sell them abroad. In this way, it was pointed out, goods that otherwise would rot here could be disposed of profitaably. DIVISION OF STANDARD CREATED On January 15, President Roxas released a directive creating a divi sion of Standards. The new division was placed in the bureau of commerce and will be under the administrative control of Director of Commerce S. R. Mendinueto. Director Mendinueto explained that the purpose of the new division is to aid the rehabilitation and fu ture expansion of Philippine export trade. By effecting a dependable system of standardizing Philippine export products, it is anticipated that the local exporter will find it easier to find customers abroad. “We can not hold any market with sloppy products,” explained Mr. Mendinueto. “The imperative need cf our export trade is therefore the standardiza tion of all export commodities and the exclusion- from export shipments of those article or products falling below a given set of standards. On-' ly thus will Philippine products re tain the goodwill not only of the American market but of such other foreign markets as they may secure in the future.” The main function of the new divi sion will be to classify all export commodities. However it will also make surveys of foreign markets to find out what particular products are desired in each and the qualities preferred. SORIANO TRADING CO. A. SORIANO y CIA. General Managers M.R.S. Bldg. Tel. 2-79-61 The American Chamber of Commerce Journal February, 1947 23 STATISTICS ON BANKING RESOURCES, LIABILITIES, AND MISCELLANEOUS ACTIVITIES (Prepared by the Bureau of Banking from reports submitted by 11 operating commercial banks) Resources Week Ending Nov. 23, 1946 Week Ending Nov. 29, 1946 Week Ending Dec. 7, 1946 Week Ending Dec. 14, 1946 Loans, discounts and overdrafts.............. £184,804,112 £185,921,612 £188,303,557 £188,924,868 Investments ............................................... 39,863,434 39,863,146 39,910,480 39,906,914 Due from Head Office and/or other Office or Offices which supplies working capital to foreign banks ... 50,032,685 46,716,701 56,208,999 62,705,444 Due from other banks in. the Philippines . 39,688,867 38,068,650 42,568,405 41,837,976 Due from banks outside the Philippines . 149,246,217 160,801,534 166,263,645 169,295,987 Cash on hand ........................................... 173,491,713 169,673,645 159,811,182 154,648,872 Balances in clearing account.................... 34,500,000 33,500,000 37,500,000 36,500,000 Other resources not included above........ 155,737,390 154,177,277 153,982,275 155,545,100 Total resources ........... £827,364,418 £828,722,565 £844,548,543 £849,365,161 Liabilities Demand deposits ....................................... £226,274,110 £221,202,267 £225,134,231 £231,727,082 Savings deposits ........................................ 118,754,269 120,161,640 122,098,458 123,857,584 Time deposits ........................................... 9,848,601 9,978,344 10,060,141 10,371,125 Deposits of public funds .......................... 138,586,882 144,021,982 148,536,891 146,188,462 Due to Head Office and/or other Office or Offices which supplies working capital ................................................. 53,098,509 53,326,556 52,112,777 48,135,108 Capital - domestic banks............................ 33,414,400 33,414,400 33,414,400 33,414,400 Surplus, reserves and undivided profits .. 16,021,109 16,168,819 16,281,259 16,222,833 Due to other banks in the Philippines . .. 2,868,859 3,068,721 2,906,814 4,428,335 Due to banks (Clearing House depository) 34,500,000 33,500,000 37,500,000 36,500,000 Due to banks outside the Philippines .... 7,618,051 7,913,347 9,539,724 8,550,017 Other liabilities not included above........ 186,379,628 185,966,489 186,963,845 189,970,215 Total liabilities........ £827,364,418 £828,722,565 £844,548,543 £849,365,161 Miscellaneous Exchange bought since last report - spot . £ 15,832,676 £ 13,564,564 £ 13,440,069 £ 17,057,652 Exchange bought since last report - future 2,295,161 250,000 889,525 Exchange sold since last report - spot ... 15,702,541 11,936,252 14,378,421 14,454,691 Exchange sold since last report-future . 2,136,713 2,165,214 2.397,055 5,769,571 Import bills whether for the purpose of collection only or otherwise received since last report ................................ 8,541,506 3,910,506 9,733,394 7,901,514 Export bills sent abroad whether for the purpose of collection only or other wise since last report ...................... 4,616,835 4,375,277 2,550,101 5,140,592 Debits to individual accounts since last report ............................................... . 88,028,755 79,840,968 90,210,387 102,631,328 Letters of credit issued since last report . 13,730,732 11,248,510 16,684,880 15,503,477 Trust department accounts: a. Court trusts ............................... 1,364,778 1,310,431 1,338,232 1,351,839 b. Private trusts ............................ 4,013,875 4,025,063 4,038,176 4,128,513 c. Corporate trusts ........................ 7,582,254 7,582,254 7,582,254 7,582,254 24 The American Chambeir of Commerce.Journal 1GILANCE! ON THE GROUND—with constant radio communication, weather observation and all the latest facilities known to modern science and industry . . . IN THE AIR—with flying equipment and staffs trained and moulded in the iron discipline of war, now acutely attuned to the exacting requirements of progress in peace. . . . PART OF THE PHILIPPINE AIR LINES TRADITION of—Speed . . . Safety...and Comfort -of VIGILANCE in serving the Philippines. A. SORIANO Y CIA. GENERAL MANAGERS f 2 79-66 M. R. S. BLDG. Tels. 2 70 GT Freight Department : 2-79-68 TRADE <k- COMMERCE Ui.DG. Makati Airport Tel. 2-79-67 (Formerly Nielson) PHILIPPIXEr AIR LINES I— When Traveling Carry National City Letters of Credit and Travelers Checks. GOOD EVERYWHERE • SAFE • SELF-IDENTIFYING The National City Bank Of New York Bottled in the U. S. A. Fiqe American Whiskey • Preferred throughout the Americas Sole Importers SORIANO TRADING COMPANY