The American Chamber of Commerce Journal Vol. XXIII, No.7 (November 1947)

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Title: The American Chamber of Commerce Journal Vol. XXIII, No.7 (November 1947)
Issue Date: Vol. XXIII, No.7 (November 1947)
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extracted text: A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; John L. Manning, Vice-President; Fay C. Bailey, Treasurer; E. G. Baumgardner, Max Blouse, John F. Cotton, Samuel Garmezy, G. C. Miller, and J. A. Parrish. Leon Rosenthal, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXIII November, 1947 No. 7 Contents Editorials— Under-Secretary Balmaceda PRATRA ...................................................................................... Recommendations of the United Nations Special Committee on Palestine Humanitarianism versus Communism...................................................................... Ten-year Review of Philippine Business Trends The Luzon Brokerage Company................................ The Business View— Office of the President Money and Banking Stock Market Credit .... Insurance .... /. Electric Power Production . Real Estate.... Construction . Port of Manila . Ocean Shipping Inter-Island Shipping. Air Transportation Land Transportation (Bus Lines). Gold..................................................... Lumber Copra and Coconut Oil Synthetic Detergents Philippine Refining Co., Inc. Desiccated Coconut .... Manila Hemp . Sugar . . Tobacco ’ . Machinery............................................ Automobiles and Trucks ... Drugs, Health Supplies, and Toiletries . Textiles................................................................................. Legislation, Executive Orders, and Court Decisions Philippine Government Corporations Y Labor.................................................... . ( . Cost of Living Index . Philippine Safety Council Other Chambers of Commerce— Chamber of Commerce of the Philippines Spanish Chamber of Commerce of the Philippines . Business Book Reviews .................................................... The "Let Your Hair Down” Column 219 219 220 .................................................... 221 Leon Ma. Gonzales.................... 222 A. H. Barrett . 224 Official Source 226 C. R. Leaber 227 A. C. Hall . 227 D. Burn . 228 A. H. Henderson 229 J. F. Cotton . 229 C. M. Hoskins . 229 H. H. Keys . 230 H. W. Titus 230 F. M. Gispert. 231 D. M. Cameron. ... 231 V. A. Brussolo and’Pan American World Airways 232 L. G. James 233 C. A. Mitke ... 234 E. C. Von Kauffmann 234 M. Igual and K. B. Day 234 M. Igual and K. B. Day 235 K. B. Day. ... 236 H. R. Hick. 236 M. Cook . 236 G. G. Gordon 237 Conde de.Churruca . 237 V. E. Lednicky 237 J. L. Manning 238 F. A. Delgado . 238 J. Traynor 241 R. Janda 241 Official Source 242 Official Source................................... 244 Bureau of the Census and Statistics 244 F. S. Tenny...................................................245 P. J. Ocampo 245 J. M. Rosales 246 David Minsberg 251 50 centavos the copy 252 218 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 THE“HEART” HERE you see the inside, the “heart,” of Goodyear’s E-C Cord Multi-V Belt — and the reason why it consist ently delivers finest performance, highest efficiency and longest life on Multi-V drives. Note the large diameter of the endless, heavy-duty cord — unequaled in tensile strength and stretch resistance. This construction makes it possible to concentrate the load-carrying cord in the neutral section where it is not subject to extreme tension or compression in bending around the pulleys. Buckling, distortion and internal fric tion are thus eliminated. And Goodyear engineering insures perfect belt balance, with each cord pulling its full share of the load. It will pay you to contact U6 for full data on this and other Goodyear Industrial Rubber Products — all proved by performance to be highest in quality, lowest in ultimate cost. MOLDED GOODS HOSE and a INDUSTRIAL PRODUCTS THE GOODYEAR TIRE & RUBBER CO., OF THE PHILIPPINES, LTD. BACOLOD MANILA CEBU Editorials The American Chamber of Commerce of the Phil ippines wishes to express its gratification over the appoint ment of Mr. Comelio Under-Secretary Balmaceda Balmaceda as Under secretary of the new De partment of Commerce and Industry, recently separated from the former Department of Agriculture and Commerce. The Chamber congratulates His Excellency, the Pres ident, on having found a man of Mr. Balmaceda’s inte grity, ability, and experience to occupy this important position, and Mr. Balmaceda on having received the ap pointment. Mr. Balmaceda, a Harvard graduate, was Director of the pre-war Bureau of Commerce, and can be said to have risen to his present rank entirely on the basis of merit. PRATRA, which sounds like the name of some mons trosity in the Indian pantheon, stands for the Philippine Relief and Trade Rehabilitation AdministraPRATRA tion, a new government corporation which represents a fusion of the former Philippine Relief and Rehabilitation Administration, the National Trading Corporation, and the purchasing department of the National Cooperatives Administration. . In setting up this new entity, the Cabinet was reported to have been against the inclusion of the relief functions, but as the old PRRA was designated by UNRRA (the Unit ed Nations Relief and Rehabilitation Administration) to handle UNRRA relief work in the Philippines, and UNRRA insisted that the PRRA continue to handle this until that world organization terminates its activities here, it was decided that PRATRA would continue the relief functions of PRRA. • Basically, however, PRATRA is not simply an entity which directs and manages the Government’s relief and rehabilitation activities, but a government trading cor poration after the nature of the former National Trading Corporation which it absorbed,—of the spoiled cannedmilk fame. The powers granted by the Presidential Executive Order which created it, are truly enormous. Pertinent sections of the Order, setting forth these powers, were published in this Journal last month. The Order author izes PRATRA— “to undertake the prevention of monopolization, hoarding, injurious speculation, manipulation, private control, and profiteering affecting the supply, distribution, and movement of foods, clothing, fuel, and other articles of prime necessity”. Those are very broad, in fact, dangerously broad po wers to vest in any general manager or board of directors of any conceivable grade of ability and honesty. PRATRA may also — “acquire foods, clothing, fuel, fertilizers, chemicals, construction ma terials, implements, machinery, equipment required in agriculture and industry, and other articles and commodities of prime necessity, both imported and locally produced or manufactured, for sale in such a manner and at such prices as may be determined by the Board of Di rectors". It may furthermore — “ enter into negotiations and contracts with other agencies and branches of the Government and public or private corporations or associations for the manufacture or distribution of goods that it may consider neces sary to insure the availability of the supply thereof in the interest of public welfare and the national economy.” It sounds as if the drafters of this Order tried to sum marize all the possible economic, agricultural, industrial, and commercial activities of man, and then gave this PRA TRA not only blanket authority to engage in all these activities, but to wield a large measure of arbitrary power and control over all public and private entities engaged in these same activities. In other democratic countries, the danger of clothing a commercial entity with govern mental powers has long been recognized But even that is not all. All this authority and power is to be directed toward a certain designated end which is dangerously invidious on its face, though described in superficially persuasive language. PRATRA is directed— “to find ways and means of encouraging and assisting Filipino retailers and business men such as by supplying them with merchantable goods at prices that will enable them to compete successfully in the open market”. There could be no warrantable objection to the Gov ernment of the Philippines adopting measures to encourage and assist its own nationals in business, provided these are fair and do not unju tly discriminate against other nationals who live and are are engaged in business here, contribute to the country’s welfare, obey the laws, and pay the taxes. But the wording of this Order suggests that combina tions actually existed which made it impossible, before 219 PRATRA, for "Filipino retailers and business men” to "compete successfully in the open market”. Untrue though this is, the Order implies further that "ways and means” are to be "found” to put all others than these Fili pino retailers and business men at a disadvantage. One such "means” would be to job the import allocations in such a way as to serve selected Filipino retailers and busi ness men with certain monopolistic advantages, which certainly would not be "in the interest of public welfare and the national economy.” As a sovereign government, the Government of the Philippine Republic can do pretty well what it wants to do in enacting its laws and issuing its executive orders. There is no one in or outside the Philippines who has the power to cancel a line, although should there be a violation of some treaty right, protest could be lodged. But for any government to run crassly counter to generally accepted principles of justice and equity in the treatment of all who live under its jurisdiction is, of course, never advisable, and is especially stupid in a country which is vitally dependent upon outside capital. Fortunately, there are those in this country, men in high places among them, who are not swept away by a spirit of blind and narrow nationalism, and it is to be hoped that they will see the danger of such a spirit at work in drafting the laws and orders of the country. With respect to PRATRA, the Government evidently developed some misgivings shortly after the reorganization. According to the Manila Daily Bulletin for October 20: "President Roxas and his Cabinet last night decided to restrict the business activities of the PRATRA to non-competitive commodities and directed that government-owned agency to concentrate its efforts in securing goods and materials which are scarce and are being blackmarketed here. “The President made it clear that he does not want the PRATRA to import articles that are already being imported and are sold here on a competitive basis. In order to fulfil the objectives for which this entity was created, he said, it should limit its importations to products that are the subject of black-market prices, such as construction ma terials.” This constitutes a very timely clarification and recti fication, but it can nevertheless not be overlooked that the Executive Order which established PRATRA and which gave it its extraordinary powers still stands unchanged,— powers which it is in a position to exercise most arbitrarily, especially in sales to selected and favored "Filipino retail ers and business men” and through the commandeering of imports, at arbitrary prices, in the hands of its compe titors,—private business entities. Before proceeding further in the multiplication of such organizations as PRATRA or bestowing ever greater, and indeed monstrous powers on those which already exist, it would be well for government leaders here to contemplate the fact that our modern, democratic civiliza tion is based chiefly on private initiative and enterprise in economic organization, and that such government cor porations as are now being devised are apt to choke and destroy, rather than to encourage and assist such initiative and enterprise in the Philippines. The recommendations of the United Nations Special Committee on Palestine, probably soon to be put in effect, will tend to right and to alleviate a wrong and a tragedy which rims through the whole of written his Recommendations of the United Nations Special Committee on Palestine tory and which came to a horrible climax during the Nazi domination of Europe in the mass-murder of over 6,000,000 innocent people. Thousands of those left alive still live in grief'and bitter ness in huge concentration camps. Under the program recommended, Palestine, over which Great Britain has held a mandate since World War I, will be recognized as independent after a transition period of two years, but will be constituted as two separate states, one Jewish, one Arab. The Jews will have about two-thirds, or 6,000 square miles, of the total area,—not all of it, as was promised them in the Balfour Declaration of 1917, which was endorsed by the principal Allied Po wers in the Treaty of Sevres (1920). The part of the coun try to be Jewish is less in area than the State of New Jer sey and about the same as the Island of Palawan. The total population of Palestine is estimated at around 1,750,000, of whom some 60% are Moslems, 30% Jews, 7.5% Christians, and 2.5% other than these. The minority members of the Special Committee recommended the establishment of a federated state, but the Jews object to this on the ground that this would be an Arab state with the Jews in the minority. Arab spokesmen still bitterly oppose a settlement on the basis of partition, declaring that the United Nations do not have the right to take any part of their land and give it to the Jews, but the situation and the problem it presents is not as simple as that. The problem is inter national in scope and transcends local considerations. And Palestine was the ancient Jewish home; the Arabs may, in a sense, be said to be the interlopers. Further more, the area to be included in the Jewish state embraces but a very small part of the Arab lands. The Arabian Peninsula is around 1,000,000 square miles in area, most of it very sparsely populated. It was only during the first World War that the Arabs were freed from the Turks who had ruled them for four hundred years. Before that they were subject to the Ma melukes of Egypt. The Frankish crusaders held Jerusa lem for almost a hundred years, between 1099 and 1187. The Hebrews were closely related to that great trad ing people, the Phoenicians, to whom we owe our alphabet. About a thousand years before Christ, the Hebrews es tablished an independent kingdom which rose to its great est height during the reign of Solomon. After that the country was invaded and overcome by many nations, including the Assyrians, Babylonians, Egyptians, Per sians, Macedonians, Romans, and Byzantines. Repeat edly great numbers of them were carried off into foreign captivity. The Arabs, or, rather, the Moslems, did have one period of glory, lasting around a hundred years between 650 and 750 A.D., when they overran Persia and Armenia, Northern Africa, and a part of Spain, but during this time the center of Islam shifted from Medina and Mecca to Bagdad, and the so-called Arabic culture was Persian, Egyptian, Greek, Indian, and—Jewish. One historian states: "It is difficult to say, in the case of this Arabic culture, where the Jew ends and the Arab begins, so im portant and so essential were its Jewish factors.” The Jews and the Arabs both belong to the Semitic race. Traditionally they a?e both descended from the patriarch Abraham, through different wives. They should get along well together, and the Jews in Palestine say that they do, and that the opposition to them comes not from the common man, but from political agitators in Palestine and other Islam countries, and from feudal chiefs who fear the emancipauon of modem ways of life. Palestine, though an ancient center of civilization, is a land which has for centuries been onte of the most backward, povertystricken, and disease-ridden regions in the world. (The Jews should be paid for cleaning it up!) Since Palestine was opened to Jewish immigration, it has made remarkable advances in agriculture, industry, and commerce, and the establishment of an independent, prosperous Jewish state, which would draw many of its citizens from all parts of the modem world, would serve as an example and stimulus to the whole Near East, benefitting the Arabs among the other inhabitants. Probably the great majority of those of Jewish blood throughout the world, especially the better-assimilated, will never wish to leave the countries of their adoption, but the existence of a Jewish "national home” would re 220 lieve the social pressure upon the Jews,—the instinctive antagonism toward any "out-group” which is the basis of "anti-Semitism” where this is not deliberately provoked for political reasons, as it was in Nazi Germany. There is nothing "mysterious” in the fact that in many coun tries the Jews have long served as the most convenient target and scape-goat for the rabble-raiser and the cruelty of the mob. From the world statesman’s point of view, the deve lopment of a vigorous, Western-minded, and highly ethical people on the littoral of Asia Minor, would constitute a most important reenforcement of civilization in what is still a potentially turbulent area. But above all, the rights and dreams of a great race which has made and continues to make most vital con tributions to human advancement despite oppression and suffering, must be recognized by the world. Through their loyalty to their ancient ways and traditions during centuries of dispersion, the Jews have largely remained a distinct and single-minded people, who by everything except military reconquest have earned the right to regain a place of their own on earth. On every side the warning is voiced that the prolonged misery of the people of Europe must be allayed, or they will be overwhelmed by "comHumanitarianism munism.” versus Communism Why is this so fatefully true? Is it that communism could do what democracy is unable to do? Is it that a transition to communism would be the free choice of the people? If so, the people and governments of other countries and continents would not have the right, under any true conception of democracy, to interfere. That is what the Stalin oligarchy claims, with tongue in cheek. It is only because such a convulsion would be the result both of the general demoralization of the people,— political, economic, and psychological, and of aggression on the part of the Russian rulers, that other democratic people, more happily situated, have the right and the duty to exert their utmost effort to save the mother-continent of Western civilization from what would be a cataclysmic reversal of the great democratic movement which began, twenty-five hundred years ago, in ancient Greece. Does communism offer anything which democracy does not? Communism pretends to a paternalism (its police activities are far from paternal) which promises work and subsistence to all,—except those who oppose it. This has its appeal to the weak and poor in spirit; hence the danger of this appeal in time of material and moral deterioration. A strong, confident people will reject governmental pa ternalism even at its best, and the infantilism and helotism that go with it. The communistic system entails not only the loss of choice of work and of residence and the right to quit work or to "strike”, but all the fundamental individual, civil, and political rights of democracy, the most important of which are freedom of thought, speech, and press, and the right, through free elections, to control the govern ment rather than dumbly to be controlled by it. Dictatorship runs directly counter to the naturally independent will and pride of normal men, and it is for that reason that communism, where established, can main tain itself only through a suppression of all real criticism and a ruthless destruction of all opposition. The commun ist state must begin and end as a police-state, in which the government rules through turning men into driven cattle. The American policy in bringing aid to Europe in the form, this time, not of armies, but of food and machinery for renewed peace-time production, strikes at the heart of the situation and is based on the belief that men in their right minds will never embrace slavery. It is this issue of individual human rights and the control of the government by the people, which is of the most crucial importance in the further advance of man kind,—not the issue of property-ownership, of which com munism makes so much. That issue is rapidly dwindling in importance with the development of modern technology and the "abundance for all” which is clearly in sight. Wellmeaning theoretical communists still think in terms of the past, of limited capital and unavoidable scarcity, poverty and hunger,—to ameliorate which they would make the most suicidal sacrifice, that of the principles of liberty and popular sovereignty. War has thrown the people of Europe back a hundred years; poverty, misery, hopelessness are general. But that is only temporary, until help can be brought to them. For though democracy requires that men stand on their own feet, it does not preclude mutual aid in time of need. Democracy, indeed, implies cooperation, a standing of the people together, because in their union, rather than in a tyrannical government, there is might. While the now avowed enemy preaches his Satanic gospel of envy and hate, spreads confusion, and craftily plots to impose his slave-regime upon many nations, the people and the government of the United States of Amer ica have never shown a nobler and more enlightened hu manity than when they decided,—and so soon after their tremendous sacrifices in the war against fascism, to fur ther tax themselves and to stint their own consumption in order to bring additional material aid to these coun tries, thus to check by sheer humanitarianism, this new despotism which threatens them and, ultimately, all ci vilization. ''We have every reason to rejoice that we have locked our destiny with the strongest and noblest nation of the earth.” President Roxas 221 Ten-year Review of Philippine Business Trends By Leon Ma. Gonzales Director, Bureau of the Census and Statistics TWO and a half years after liberation, the Philippines finds itself in a state of re lative prosperity. The strong cash position obtaining at present has been largely responsible for it. Convertibility of the peso into the dollar without difficulty has made’ this country one of the best mar kets for foreign goods today. In effect, the import trade for the last two years has been among the highest registered so far in the history of the nation. A speedy rehabilitation and reconstruction of a war-devastated economy is also another desirable result of an abundance of cash resources. Our business indicators show a rising trend in corporate investments, electricity production, building construction, and gross sales—all indicative of considerable business activity. Cigars and lumber are still below pre-war level, as are many other local industries crippled by war, but they are, however, slowly picking up as the rehabilitation continues to forge ahead. The local commercial banks are in the pink of condi tion. Their combined resources have grown to more than Composite Chart showing the Trends of Production, Finance, and Distribution Chart showing the Trend of General Business Conditions (Monthly average for 1937 = 100) twice that of the base year. Bank loans, discounts, and overdrafts, show a steep uptrend since 1945, a consequence of a liberal loan policy to help speed up economic recon struction. The bank debits (which represent the sum-total of withdrawals from bank deposits) likewise show a sharp trend upward, another unfailing sign of an active circula tion of money that indirectly benefits business in general. The trend of general business conditions is, thus, upward. Using 1937 as the base or normal year, our index has risen from 100 of that year to 226.4 as of June, 1947. This index has been arrived at after a scien tific weighting process which in cludes the different items that represent the groups of business ac tivity under Finance, Production, and Distribution. The highest in dex recorded since liberation was 252.7, and this was for March of this year. That the strong financial posi tion is the bulwark of present economic activity is further shown by the Index of 399.4 for Finance for August, 1947, as compared with 100 for 1937. In July, 1947, the index was 443.8, one of the highest. The post-war peak was 466.0, for November, 1945, and this happened at the height of inflation in the Philippines. 222 Monthly Business Indicators (1936-1947) {Monthly average for 1937 = 100) MONETARY CIRCULATION 600 CORPORATE INVESTMENT —r '.i • i •{ ■ ! 11 * ; 4 ' t i: j DISTRIBUTION :J9Q FINANCE BUILDING CONSTRUCTION ELECTRICITY LUMBER " CIGARS PRODUCTION Production has its strength in the present building construction boom. Electricity production is qlso showing a sympathetic trend. These two are largely responsible for the index of 161.5 for Production registered for June, 1947. They make up for the weakness of other industries which may take some time to rehabilitate. The Distribution level is the least impressive among the three groups, in spite of the unprecedented size of both foreign trade and gross sales. The index for June, 1947, was 124.0, which is only 24 points above the pre-war (1937) level. Freight-car loading and steamship freight have been pulling down the index—a sign that the volume of Philippine products being transported has not yet reached pre-war average. 223 The Luzon Brokerage Company By Arthur H. Barrett Vice-President, Luzon Brokerage Company SPEAKING before the Seattle Chamber of Commerce, J.B. ("Bart”) Richards, Commercial Attache of the American Embassy in Manila, gave credit to the Luzon Brokerage Company for the part it has played in the rehabilitation of the Philippines now in progress. By definition, a customs brokerage is an entity which transacts customs business or acts on behalf of others in connection with the importation and exportation of goods, entrance and clearance of vessels, warehousing, and deli veries. The business calls for a full knowledge of customs laws and regulations, tariff classifications, routing of official papers, and filing of formal protests when necessary. The customs broker can be of service to the individual who is baffled by the numerous technicalities involved in the send ing or securing delivery of no more than one small pack age, or to the business firm which lacks the equipment or time for these phases of its activities. The Luzon Brokerage Company has not only revita lized its pre-war services, but now offers many new facil ities to the public. While its main offices are situated in the Port Area, the Company recently opened an office in down-town Manila, and shipping documents can now be handled at both places. The old offices, fortunately, suffered but minor damage during the enemy occupation and in the fighting for the liberation of the city. The continuing major activity of the Company,—the movement of cargo from the piers to warehouses or cus tomers, involves not only a multitude of technical details in paper-work, but calls for the physical handling of tre mendous loads. The Company’s equipment now comprises around 100 trucks, large and small, flat-beds and trailers, cranes and derricks. It has the following warehouse fa cilities available for exporters and importers: three bonded warehouses and two general warehouses on Cristobal Street, Paco; an export bodega just south of the Jones Bridge; a bonded customs storage compound in the rear area of the San Augustine Church; large open storage space in the Port Area; and a barge,—L-265. Generally the cargo is taken from the piers; however bulk shipments are sometimes delivered shipside. The shipment must be large enough to make at least one cascoor lighter-load, around 30 tons. In such cases no arras tre* charges are imposed. There is a checking charge of 60 centavos a ton. In the case of frozen merchandise or goods of a per ishable nature, special delivery permits can be obtained, this involving an application and an affidavit, accompanied by a shipside bond, guaranteeing the filing of the regular entry papers within 72 hours after the goods have been delivered. The Luzon Brokerage Company, in addition to effect ing the delivery of merchandise brought in by ships, also provides a service for merchandise received from abroad through the post office,—technically designated as "parcel mail” or "informal entry”. This covers two categories of merchandise,—that entitled to free entry and that subject to duty. A s did every other business in Philippines, the Luzon Brokerage Company suffered heavy damages dur ing the war. The story of destroyed equipment, wrecked offices, death of personnel, and lost records, is familiar to all. But the challenge to begin all over again, to restore and rebuild the business, brought back many of the oldtimers and induced new men to lend a hand. The importance of the brokerage business in the life of a community was emphasized immediately after the liberation in Manila when the United States Army re quested the assistance of the Luzon Brokerage Company in clearing the piers and expediting the flow of necessary commodities from the docks to civilian consumers. With a limited number of Army trucks, the goods started mov ing. Operations were at first conducted on an emergency basis, with the use of any equipment that could be bor rowed or salvaged. New equipment was practically im possible to secure because the bulk of shipping-space was required by the military to supply its large forces in the country and in preparing for the planned invasion of Ja pan. Civilian imports were restricted to only the most necessary commodities. Rehabilitation and expansion, therefore, were slow, One hundred forty drums (empty) on one trailer Some more good loads 224 but the Company kept forging ahead until February, 1947, when it became a victim of the strike contagion prevalent at the time. In spite of the fact that the em ployees of the Company were already receiving higher wages than other laborers engaged in similar work in the city, demands were presented for a 100% increase in wages and other desired "benefits”. After all negotiations had failed to brijng about a settlement, the management, be lieving that it would be impossible to continue operations under the conditions set by the strikers, decided to cease operation. The understanding and cooperation of the customers who came in to collect their valuable shipping documents at that time, showed how aware all business executives were of the extremely unsettled conditions then existing. But once again, the emergency brought out the im portance to the community of the Company’s services. Just after the liberation, operation had been resumed at the request of the military. Following the strike and the decision of the management to quit business, the Court of Industrial Relations ordered the Company, as a "public service”, to go on again. The Company was therefore reorganized and opera tion was continued under the management of Edmund W. Schedler as Treasurer, and the writer as Vice-President. Mr. Schedler is from Oklahoma and first came to the Phil ippines in 1924. He was an executive of the Insular Life Assurance Company and of several other insurance and brokerage firms until the war; during the war he rose to the rank of a lieutenant commander in the United States Navy. The writer was a civil engineer with the U. S. War Department and volunteered for duty with the Army Amphibious Engineers in July, 1942. He landed in Leyte with his unit on October 20, 1944, and was discharged as a colonel, ORC, in August, 1946. The Company now has the services of a number of very capable men, as may be seen from the success with which they handled a number of jobs calling for consider able "know-how”. One was the moving of four 28-tpn generators from Pier 13 to the Makati Power Plant and placing them-in position there, and removing the old ge nerators and transporting them to the Caliraya Hydro electric Plant at Lumban, Laguna. Another ticklish job was the handling of a 150-foot flag-pole, weighing 4 tons, which was brought to the Luneta with the aid of a trac tor-trailer and a dolly placed 30 feet from the end of the pole. On some occasions the Company has been approach ed by old customers with requests to add new and spe cialized equipment. Recently the Company was asked to establish an armored-car service for handling valuables and payrolls. Bullets fired -into several vans specially constructed for this service have shown that the new equip ment provided is adequate. A floating export bodega has been put in operation to handle incoming and outgoing cargoes on inter-island vessels, to eliminate double handling. In addition to constantly improving its equipment, the Company has expanded the scope of its services gen erally. Under the terms of an agreement with the Gen eral Superintendence Co., Ltd. of Geneva, Switzerland, the Luzon Brokerage Company has been appointed as Agent to operate an inspection service in the Philippines. Company men are now stationed in a number of out lying ports as well as in Manila to supervise and certify surveys of import and export cargo. In the case of copra and copra-cake, for example, this supervision includes the inspection of the cargo by an expert at the shipper’s warehouse to ascertain that it is of good merchantable quality. During the inspection, several sets of samples are drawn and sealed in a container by the shipper and the Luzon Brokerage Company jointly. These samples are analyzed by a recognized laboratory and an analysis certificate is obtained, showing the percentages of mois ture, oil, and fatty acids. Supervision is also made of the bagging at the shipper’s warehouse and in the subsequent weighing of the bags, of which a careful tally is kept, in order to ascertain the number of bags weighed as well as the tare to be deducted from the total gross weight found. Where transportation by truck from the shipper’s warehouse to the wharf or to lighters is necessary, a strict control is exercised over the trucks, to insure their reach ing their destination with all the bags which were loaded at the warehouse. Many other details are included in the reports which are rendered in connection with this service, which is supervised by J. A. Steiner, a Swiss citi zen, who has a valuable background in twenty years of shipping and insurance experience in the Far East. The Luzon Brokerage Company has been contract ed, too, as fiscal representative by the United States Com mercial Company and the Reconstruction Finance Cor poration for all financial transactions not fully liquidated. Another expansion of the Company’s activities came in July when it began the operation of a service-station on Echague Street to service all vehicles operated by the var ious federal agencies of the United States Government here. The Company takes pride in the various services it is extending to its customers. It is fully pledged to move along with other free enterprises in the Philippines in the present effort to restore normal business operations. * Arrastre (from the Spanish, meaning literally “haulage") is the operation of loading and unloading the cargo of a vessel. A compensation is collected by the port authorities or some delegated company from the owner of the merchandise for this service, vhich compensation is called also “arrastre." ' "The present issue is simple . . . whether men are to be left free to organize their social, political, and economic existence in accordance with their desires, or whether they are to have their lives arranged and dictated for them by small groups of men who have arrogated to themselves this arbitrary power.” Secretary of State George C. Marshall 325 The Business View A monthly review of facts, trends, forecasts by Manila businessmen Office of the President From an Official Source Sept. 16—President Manuel Roxas, in a speech in Cotabato, urges borrowers of crop-loans from the Govern ment to make the required repayments. He reveals that he had already ordered the repair of 200 steel bridges in the province. Sept. 17—Secretary of Justice R. Ozaeta, in a letter to the judges of the three branches of the Municipal Court of Manila, calls their attention to the frequent interven tion of “fixers” in the business of these courts and sug gests that, to do away with this anomaly, the judges refuse to permit the intervention in any case of anyone but the interested party himself and his authorized attorney. Sept. 17—Malacanan releases a letter from Secretary Ozaeta addressed to the Adjutant General, PHILRYCOM, supporting the City Attorney of Baguio in his de cision to prosecute a certain Army officer in the Philip pine courts. It was argued that the accident which befell the officer occurred on a recreational trip and therefore was incurred in line of duty; the Secretary held that this could not be considered military duty within the meaning of an article in the Military Bases Agreement. Sept. 18—Commissioner of the Budget, Pio Pedrosa, in a speech before the Rotary Club, states that revenue collections have increased from P58,000,000 the year before to P170,000,000 last year, which may still be bet tered this year to approximately P230,000,000. Last year’s actual collection of Pl70,000,000 was increased by the receipt of Pl20,000,000 secured as a budgetary loan from the. U. S. Reconstruction Finance Corporation, and P23,000,000 from the liquidation of investment bonds. Expenditures decreased from the P374,000,000 authorized for the fiscal year just ended, to P27O,OOO,OOO for the cur rent fiscal year. The budgetted expenditures are still from P40,- to P50,000,000 in excess of the estimated in come. The total appropriation available for public works will, when the P240,000,000 of the United States war damage fund has been released, amount to P332,400,000. The amount set aside for the purchase of materials and supplies is P 14,400,000, and for office furniture and equip ment, including automobiles, P 19,600,000. Secretary Ozaeta is reported by Malacanan to have rendered an opinion rendering the Pan-American World Airways Company subject to the increased franchise-tax passed by the Philippine Congress last year. The Com pany contended that the tax should not apply because a general law can not be deemed to amend by implica tion the provisions of its franchise. Sept. 19—The executive board of the Philippine Gov ernment Employees’ Association having petitioned the Reorganization Committee, through its Chairman, Com missioner Pedrosa, to recommend to the President that provincial, city, and municipal employees be extended a basic pay of P50 plus bonus and that increases be auto matically given to those who are receiving less than P80 a month whenever funds are available, the Commissioner states that the matter will be carefully studied. (See un der the column “Labor” for the action taken by the Pres ident under date of September 29.) Sept. 20—Malacanan approves the principal special budget of the Bureau of Public Works for the fiscal year ending June 30, 1948, allotting the sum of P873.557.70 for the operation and maintenance of irrigation systems, including the purchase of necessary supplies, materials, and equipment. The money will be taken from the col lections from irrigation fees (P12 a hectare) estimated at P948.000 for the same fiscal year. Sept. 22—United States Ambassador Emmet O’Neal presents his credentials to President Roxas, and in a pre pared address states in part: “Close and cordial as the relations are between our two countries, and unthinkable as is any weakening of those bonds, I am acutely con scious of the duty and of the opportunity that are mine to foster and strengthen them.” President Roxas states, in part. “The bonds that bind them [the United States and the Philip pines] were forged through half a century of mutual confidence and common efforts toward common goals, and have now been rendered indestructible by agreements looking to the insurance of our mutual security. Filipinos and Americans have the same ideals and the same purposes in relation to the peace, the liberty, and the happiness of all the peoples of the world. You will find us always ready to cooperate in all the efforts of your Government toward this end.’’ Sept. 23—According to a Malacanan press release, the Board on Textbooks will consider textbooks needed for secondary courses in Philippine history and govern ment, applied economics, business English, businesi ma thematics, and “business psychology”, bookkeeping and accounting, typewriting, and spelling. Books and ma nuscripts on Philippine history and government should reach the Board not later than July 31, 1948; on the other subjects not later than January 31, 1948. If adopted, the adoption would be for a period of 6 years. Sept. 25—Secretary Ozaeta, in answer to an inquiry from the Secretary of the Interior, states that he is of the opinion that the restrictions covering the alienation of lands acquired as homesteads, do not apply to the aliena tion of lands acquired under the free-patent provisions of the Public Land Act which may be alienated after 5 years. Sept. 26—The Cabinet is reported to have approved two special budgets, one of the Bureau of Lands for a ca dastral survey, and the other of the Bureau of Public Works for the reconstruction and construction of river control and drainage projects, one of the major projects to be undertaken being an irrigation system in Pangasinan. The Cabinet also approves turning over the Santa Ana area, near the Davao wharf, to the Bureau of Lands for subdivision and sale to “squatters” there. San Ramon Penal Colony, Zamboanga, will be transferred to the De partment of Public Instruction for conversion into a mo del coconut farm. The Secretary of Agriculture and Na tural Resources is authorized to open show-rooms in the different Philippine consulates in the United States and Hawaii for the display of Philippine products. The Cabinet furthermore approved the names sub mitted for the second group of Filipino business men to go to Japan,—B. S. Coloma of the Veterans Trading Corp.; L. Araneta, importer-exporter; M. T. Sales, of the Binondo Trading Co.; T. C. Martin, of A. E. Martin 8s Co.; M. Abad, of Philippine Traders, Inc.; and F. Genato, of Genato Commercial Corp. Sept. 27—The Philippine-Spanish Treaty of Friend ship is signed at Malacanan. Sept. 29—The Cabinet is reported to have approved the release of Fl,700,000, following the release of P3,400,000 a few weeks ago, or a total of P5,100,000, for 3,226 500 new classes in the public schools, which, added to 8,300 opened last year, will bring the total to 11,800, rais ing the enrolment from 1,800,000 to 3,500,000. Oct. 2—A special P478.000 budget of the Bureau of Animal Husbandry for the purchase and production of breeding animals, is reported to have been approved. Oct. 2—Malacanan releases Proclamation No. 43, dated September 29, making public the declaration on the part of the Republic of the Philippines acceding to the Convention for Promoting Safety of Life at Sea, signed in London on May 31, 1929. Oct. 4—A Malacanan press release reports on a lengthy Cabinet meeting held last night during which the govvemment reorganization plans were approved in final form. Two executive orders will put them into effect, but Secre taries Ozaeta and Nepomuceno have been assigned to go over the orders before the President signs them, effective October 4. The plans will effect savings of ?6,009,994. 2,956 positions were abolished (1,078 of them unfilled), but 1,519 new positions were created. The whole number of positions was reduced from 28,127 to 27,049. Oct. 5—Malacanan issues a press release stating that Quezon City authorities has given notice to real-estate operators that they may not sell any lots until their sub divisions have been inspected and approved by the City Engineer as it is desired to coordinate all such areas with existing and proposed roads. Oct. 7—President Roxas receives a delegation of over 300 tenants of the Tuason Estate in Santa Mesa, Manila, who are being evicted; he instructs Mayor V. Fugoso and F. Aguilar, head of the Rural Progress Ad ministration, to study ways and means of helping the te nants, but warns that the price of P7 a square meter, set by the Philippine Realtors, is considered low enough com pared with the prevailing prices of land. Commissioner Pedrosa, Chairman of the Repara tions Advisory Committee, announces that the Philip pines has been allotted 3,270 units of machine-tools and secondary metal-working equipment, these constituting about 1.5% of this category of reparation materials to be received from Japan. The Philippines will also receive its initial 5% share of the advance transfer of sulphuricacid, thermal-electric, and nitrogen-fixation plants. Oct. 8—President Roxas sends a telegram to the Pro vincial Treasurer, Misamis Oriental, warning him that complaints have been received that deputy assessors are threatening tax-payers to increase their property tax assessments if they do not vote for the Liberal Party, and that he and all other officials guilty of this illegal prac tice will be prosecuted and severely punished if this is not stopped. The President orders the expropriation of the estates of the haciendas Nagtahan, Santa Mesa, and Galas, for subdivision to tenants by the Rural Progress Adminis tration, the Rehabilitation Finance Corporation to ad vance the funds required. The assessed valuation of the Hacienda Nagtahan is P600,000. More than 250,000 people will be affected. The Cabinet approves the proposal of Commissioner Pedrosa that the Chinese dealers who chiefly are buying the American-made surplus Army cigars, being sold by the Foreign Liquidation Commission, be given permits to export them to eliminate the competition with locallymade cigars. According to a Malacanan press-release, reports in dicate that the recent typhoon did considerable damage to the rice-crop in the Cagayan Valley and that landslides put the Baguio electric-light and telephone systems out of commission. Relief agencies have been ordered to render all possible assistance. Secretary Nicanor Roxas, acting (Continued on page 247) Money and Banking By C. R. Leaber Manager, National City Bank of New York, Manila WE have been witnessing a somewhat unusual foreignexchange market recently, with the supply of dollars exceeding the demand. This condition reverses, at least temporarily, what has persistently been the post war tendency as a result of the large unfavorable balance of international trade for the Philippines. Since the latter part of September, there have been heavy exports of copra at advancing prices, and early this month (October) the Philippine Government sold rice abroad from its reserve stocks. These were the dominant factors contributing to the abundance of foreign exchange and, on the other hand, creating a demand by banks for local funds. An immediate result was a compensating fall in banks’ quotation for buying dollar exchange. Bank resources have shown a substantial expansion during the past weeks, according to reports from the Bureau of Banking. From a total of P799,770,000 for the week ending September 20, the total resources of 13 Manila banks increased to P819,311,000 for the week ending October 4. A significant feature of the returns since August is an almost consistent rise in savings-deposits, week by week. Total debits to individual accounts reflected a brisk trade-turnover, and total loans, discounts, and advances of P334,700,000 reported by banks as outstandings on October 4, is a record high for the year. Monetary circulation is being maintained at a more or less steady level. The Bureau of the Treasury reports the volume of money in circulation at P725,239,000 as of September 30. Predictions are that the velocity and vo lume of cash in circulation may show gains next year as the international balance-of-payments becomes more fa vorable to the Philippines. Another factor which is expected to influence the amount of available cash here next year, will be expendi tures by the United States Government, which is estimated will be in sufficient amount to off-set any adverse balance of trade. A statement from the Acting Chairman of the Rehabi litation Finance Corporation to the effect that a total of P66,965,000 has been authorized as loans by this govern ment-financing agency during its first nine months of opera tion, shows how far the Government has gone in assisting rehabilitation. The R.F.C. started with a capital of P50,000,000, which will be augmented from the proceeds of sales of surplus property, and from funds raised by selling bonds. Real-estate loans represented the largest item in R.F.C. disbursements, accounting for almost 50% of the total loans granted. Loans for the reconstruction of in dustrial plants were the second largest item, or about 30% of the total. Stock Market September 16 to October 15, 1947 By A. C. Hall A. C. Hall Company IN this column last month the writer expressed the opi nion that the market is in the second stage of a primary uptrend, and that, in due course, prices could be ex pected to penetrate the previous high point of February 20, 1947. On the latter date our average registered 43.66. Market action since then has served to strengthen this view, as prices have been in an almost uninterrupted advance during the past month. The market has displayed 227 MANILA STOCK EXCHANGE LISTED MINING SHARES September 16 to October 15, 1947 Acoje Mining Co........ P .325 P . 255 Antamok Goldfields. . .025 .02 Atok Gold Mining Co. 1.20 1.08 Baguio Gold Mining Co................................ — .05 Batong Buhay Gold Mines...............................0064 .006 Big Wedge Mining Co................................ 1.20 1.04 Coco Grove, Inc............... 03 .028 Consolidated Mines, Inc.....................................0145 .013 IXL Mining Co................ 07 .065 Lepanto Consolidated .52 .375 Masbate Consolidated .05 .04 Mindanao Mother Lode................................ 99 .80 Paracale Gumaus Cons................................. 095 .08 San Mauricio Mng. Co......................................215 .195 Surigao Consolidated. . 395 .26 Total Close Chance Sales 1’315 up .095 838,000 .02 off .005 48,000 1.18 up .08 151,400 .05 - 20,000 .006 off .0006 950,000 1 20 up .08 73,900 .03 up .004 140,000 .0145 up .0015 16,310,000 .07 up .005 79,000 .49 up .115 1,113,500 .05 up .007 445,000 .95 up .15 543,750 .095 up .015 39,000 .20 off .02 75,500 .38 up .12 791,250 considerable vigor at times, and at Monday’s closing of 40.97 our average was within reasonable striking distance of the year’s high. As measured by our average, price fluctuations dur ing the period have ranged from 33.68 opening and low, to a high of 40.97, closing at 40.50. The sharpness of the recent advance has probably weakened the technical position temporarily, and some correction is about due. Turning to individual issues, the demand for shares of base-metal producers has been the oustanding feature. Acoje and Lepanto have registered large advances on greatly increased activity, while Consolidated Mines has also pushed ahead. In the gold mining group, Surigao has registered the largest percentage advance, but Mindanao Mother Lode at 95 was up 15 points and thus marked up its fifth consecutive month of advance. Atok and Big Wedge were relatively neglected. In the unlisted mining group, activity increased. About 11,000 shares Balatoc changed hands between P4 and P4.50, closing at the latter figure. Small lots of Suyoc were done at 3 centavos, while Itogon was unchanged at 6 centavos. United Paracale declined to 9 centavos and East Mindanao was unchanged. In over the counter dealings, Benguet Consolidated advanced from P4.40 to P4.67 on a volume of 25,000 shares. Antipolo Mining was strong and active, advancing from 10 centavos to 25 centavos, with 1,250,000 shares chang ing hands. In the commercial and industrial section of listed stocks, the most noteworthy feature was the resumption of trading in San Miguel Brewery stock on September 23, following completion of the period of registration of the new stock with the Securities and Exchange Commis sion. Opening sales were at P75 (equivalent to P984 old stock basis—13-1/8 new for 1 old—and up P257 per share from the last recorded sale of P727), and the following day the stock advanced to P80. Since then increased offerings have caused an easier tendency, and the stock closed at P73 on a total activity of about 5,000 shares. Elsewhere in this section, trading has been slow. Small lots of Bank of the Philippine Islands at P72, and Filipinas at P21.50 and P22 were reported. Also reported were about 30,000 shares Philippine Racing Club from Pl.10 to Pl.14; and small trades in Pambusqo at Pl.52 and Pl.50; and Marsman Preferred at 50 and 48 centavos and Common at 40 centavos. Sugar shares were dull except for Victorias which advanced to Pl26 on sales of 360 shares. The only other trade in this section was 29 shares Bais at P600. Unlisted commercial shares were again inactive. A lot of 100 shares Philippine American Drug (Botica Boie) changed hands at ^140. Manila Jockey Club were traded at P2.90. There was an increase in activity in Jai Alai, and 2,300 shares changed hands at P14.50 and P14.25, off 75 centavos over the month. Credit By Duncan Burn Association of Credit Men, Inc. (P.I.) A S is natural and to be expected with the increased extension of credit, both in regard to larger numbers of accounts and higher limits of accommodation, the fre quency of difficulties and complaints increases. Credit is more widely used now than at any time since liberation. Credit-extension continues to increase, and certain lines of business which have thus far been able to remain on virtually a cash-basis are preparing against the time when it appears that the necessity of credit extension will be inevitable. Numerous inquiries through qualified credit execu tives, representing various leading business houses in Ma nila, bring forth certain pertinent opinions and comments. In general, a slowness in collections and a difficulty in certain collections have been increasingly evident in recent weeks. Some concerns felt the tightening begin some three months back, but prominent indications of tightening for most business houses began about the opening of Sep tember. Most credit executives, however, are not seriously concerned over the increasing slowness of payments of certain items and accounts. The causes underlying the increased slowness naturally vary. General opinion lays stress on several primary causes. It is virtually impos sible, without detailed study and survey, to positively evaluate the importance of these causes with respect to each other or with respect to the general picture of credit. Admittedly the following feelings and opinions each carry weight. Some credit executives attribute slowness in col lections to the fact that many purchasers have invested heavily in machinery, equipment, and other items, often at large expense, and that revenues resulting from opera tions have not yet become normal. The initial expenses of installation and reconditioning and other preparations have been heavy and restricted to a relatively short period, and have thus to an extent depleted assets which cannot be so quickly recovered through operation of the equip ment and assets procured. In certain service- and utility lines, this explanation applies and, coupled with it, is the inclination and tendency to decrease service-charges, which makes for a smaller margins. Similarly, to an extent the tendency in some lines to decrease sales-prices, has restricted the profit-margins. These explanations are lo gical and to be expected under conditions now existing. An explanation of a purely local and temporary na ture is offered by many who claim that the political cam paigns now under way serve as a definite drain on avail able cash. Cash which might go toward payment of re cognized accounts, is diverted into political funds. Con tributions for political purposes, are in many instances substantial, and some business people often consider such contributions as necessary and important and to take pre cedence over contracted obligations in trade. Following the election on November 11, it is anticipated that an ad justment will begin which will offset this temporary con dition. Another explanation of present tightness of collec tions, is the general tendency of many retail establishments to prepare for as large a Christmas and holiday stock as possible. Retail-trades people make a practice of building up credit-limits with a view to having as wide and large 228 an inventory for the anticipated brisk holiday-shopping as possible. Therefore, to a large extent cash is saved with the view to its being used where most necessary to allow for the largest selection of stocks. Such retail merchants are inclined to make use of their standings and connec tions in building up their stocks. It is anticipated that as has been generally true in the past, payments will be fairly prompt immediately following the holiday stock clearances. Several informed men in the credit field locally are of the opinion that beginning immediately after the Christ mas Season, payments will begin to be more prompt; most of them express no considerable concern over the present slowness, though in several instances this has resulted in substantial credit-accounts remaining outstanding. Some firms indicate an unusually large proportion of accounts running 30 to 60 days beyond the terms agreed upon. Insurance By Arthur H. Henderson President, American International Underwriters for the Philippines, Inc. AN invitation was extended to Mr. Cipriano Cruz, Chief of the Manila Fire Department, to meet with the senior fire insurance executives of the Philippines recently. The purpose of the meeting was primarily to bring about greater coordination and cooperation between mem bers of the Manila Fire Insurance Association and the Fire Department of Manila with the idea of attacking the most critical problems facing the fire insurance under writers and the Fire Department. The insurance executives were tol0 that the Fire De partment was doing its best to improve operations in spite of the limited facilities available to it, and the Chief out lined his recommendations for improvement in fire protec tion. The principal points enumerated by Chief Cruz were the inadequacy of the present arson laws, the lack of ade quate equipment for the efficient operation of the Manila Fire Department as well as fire departments in the various municipalities in the Philippines, the inadequacy of funds for the proper maintenance of the department and the pay of personnel, and the necessity for a more stringent enforcement of the Building Code. The Chief recommended that a joint committee of representatives of the Fire Department and of fire insurance underwriters be appointed to study the situation in its entirety and to see what could be done to solve the problems facing both the Fire Department and the fire insurance underwriters. As a result of the conference, steps are respectively being taken to appoint committees for a joint study of the problems enumerated by the Chief and the problems of the fire insurance companies as they affect each other. 'C'lRE losses in the Manila area for the month of Sepx tember, 1947, are the lowest reported for this year. It is believed that the stringent attitude of fire insurance underwriters has had a material effect in reducing fire losses. FIRE LOSSES IN THE MANILA AREA JANUARY TO SEPTEMBER, 1947 Number of fires I Losses 1947 ' W'th‘n I Outs,de I - ........ I ~ . i - • ■ January . February . March . . 60 71 88 6 3 11 P 42,700 114,615 280,874 P 91,578 1,286,048 2,199,074 525 37 Pl,456,775.00 P6,139,491.00 P7,596,266.00 April 73 4 497,443 1,228,304 1.725,747 May............. 45 4 173,402 588,660 762,062 June............. 63 4 67,302 579,974 647,276 July.............' 33 2 129,503 192,160 321,663 August 54 1 108,362 316.141 424.503 September 38 2 42,574 95,741 138.315 Electric Power Production (Manila Electric Company System) By J. F Cotton Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH 1947 1946 January.............................................. 17,543,000 9,286,000 K February............................................. 17,503,000 8,778,000 I March.................................................. 20,140,000 10,122,000 L April..................................................... 19,601,000 9,849,000 O May...................................................... 19,241,000 11,132,000 W June...................................................... 17,898,000 11,432,000 A July....................................................... 22,593,000 12,333,000 T August................................................. 23,358,000 14,411,000 T September.......................................... 23,122,000* 15,018,000 October............................................... 24,700,000** 16,787,000 H November........................................................................... 15,767,000 O December...................................................................... 17,984 000 U * Revised........................................................................................................ R ** Partially estimated............................................................................... S In October electric production increased sharply to a new record output. There was an increase of 1,578,000 KWH or 6.80% over September. Compared with October, 1946, the increase was 7,913,000 KWH, or 47.1%. Power output is now running over 60% higher than in 1941. Two important additions to power-capacity were added in October. A third unit at the Caliraya Hydro Station was placed in service on October 2, increasing Caliraya’s capacity from 20,000 KW to 29,325 KW. On October 15, a second unit at Blaisdell Steam Station started operating, increasing the capacity of the steam plant from 4000 KW to 16,500 KW. A comparison of available plant-capacity with 1941 follows: October 1947 Manila Electric Co. Steam Plants 46,500 KW Manila Electric Co. Hydro Plant .. . 7,000 ” National Power Corp.—Hydro Plant 29,325 ” Total........................ 82,825 KW Maximum Load..................................... Reserve Capacity................................... December 1941 29.500 KW 16.500 ” none 46,000 KW 42,000 KW 4,000 KW 61,000 KW 21,825 KW Plant-capacity is sufficient for present requirements, but repeated delays in shipment of transformers and other vital equipment still do not permit complete restoration of adequate service to all areas. Real Estate By C. M. Hoskins C. M. Hoskins & Co., Inc., Realtors IN October the President of the Philippines announced that he proposed to have the Government acquire larg: tracts of land in Manila for resale to present occupants, and to recommend to the Philippine Congress the creation of a Commission to fix subdivision prices. Construction of residential rental properties has slowed up materially, and new subdivision developments are in a state of suspended animation. Commercial properties are still in excellent demand. Individual transactions have remained fairly active. Preliminary figures show sales of P4,000,000 for October, 229 1947, against P5,500,000 for October, 1946, and against a nine-months average for 1947 of P6,000,000. This month was exceptional in that only three transactions were re corded of P 2 00,000 or more. The average was Pl2,600 per transaction. Many sales of land for new construction have been blocked by the growing squatter problem. With po pulation since liberation nearly three times pre-war, tens of thousands of families have moved on to unguarded private property and built shacks and even strong material houses. Ejectment proceedings have proved slow and in effective, months elapsing before owners can recover their land from trespassers. Construction By H. H. Keys Architect THE increasing difficulty in obtaining building materials from the United\States is already seriously hampering construction. Some structural-steel is in the Philippines, some is enroute to the Philippines. With the scarcity of steel and the added restrictions in America, it is difficult for struc tural steel contractors to quote prices and delivery dates with any feeling of security. Reinforcing-steel, also now under export license, is becoming more difficult to obtain. Architects are frequently faced with requests from contractors to change specified sizes to a size that may be obtainable. This request is not an attempt at evasion on the part of the contractor. Re inforcing steel is so scarce that one has to build with what the market can furnish. The building public had shown a commendable desire to use structural steel, but its desire to use steel is almost impossible to carry out without a probable delay of eight or ten months. The scarcity of reinforcing-steel will undoubtedly make the construction of reinforced concrete buildings in creasingly difficult, and this shortage causes people to look for substitutes. There will undoubtedly be more wood-frame buildings constructed, even though the owners would prefer build ings of more fire-resisting materials. Many buildings are being erected of hollow cement blocks for walls. These are produced by several different firtns. For the most part, they are quite good provided they are used within limitation. Corrugated asbestos sheets are being used to offset the scarcity of galvanized-iron. While its general use here is fairly recent, its use in the United States goes back many years and has been found successful. Delivery of steel-windows is improving. Their use in any building is desirable. Plumbing fixtures are still slow of delivery. Door-locks are hard to obtain. Butts (hinges) seem more readily obtainable. Galvanized-iron sheets are under license from the United States and under government control here. Lumber presents quite a problem. One might say that it was a tree yesterday and a building tomorrow. The COMPARATIVE STATEMENT OF REAL ESTATE SALES IN MANILA Prepared by the Bureau of thejCensus and Statistics Note: A large percentage of 1945 sales and a diminishing percentage of 1946 sales, represent Japanese Occupation transactions not recorded until after liberation. 1940 1941 1945 1946 1947 January...................... P 6,004,145 P 962,970 P 7,943,605 P 4,385,011 P 6,030,012 February...................... 918,873 779,783 1,337,830 2,267,151 7,217,317 March.......................... 1,415,246 1,532,104 (?) 2,622,190 7,166,866 April............................. 883,207 988,380 213,262 1,916,293 8,611,076 May.............................. 403,866 1,129,736 962,008 3,684,937 4,618,181 June.............................. 542,187 598,431 1,212,780 3,637,956 3,988,560 July............................... 1,324,861 559,742 1,123,565 4,974,862 4.097.183 August......................... 1,905,828 1,239,414 699,740 4,438,510 5,627,572 September................... 1,141,114 815,112 1,870,670 4,698,896 7 43i,213 October........................ 993,103 1,182,678 2,096,893 5,545,800 November................... 938,416 858,235 2,555,472 3,340,382 December................... 1,504,004 (?) 2,874,408 4,025,926 Total........................ Pl 7,974,844 P10,647,285 P22,890133 P45.537.914 P54.793 890 lumber dealers are not to blame for this. For five years there was almost no logging. The present-day demand is great. They have no time to season the lumber properly. It is very advisable to use kiln-dried lumber for all parts except the framing. Kiln-dried stock-size doors and windows are now being produced in the Philippines. Their use should be encouraged. There seems to be quite a bit of work contemplated by American firms. Much of this should get under way shortly after the first of the year. A new building ordinance will be presented for passage in the near future. This ordinance has to do with zoning and imposes some very stringent regulations as to the type of buildings that may be erected in various localities. The City has been divided into districts. Percentage of ground to be occupied, minimum yard-sizes, types of resid ence, business and industrial buildings are zoned. Property owners and people who contemplate leasing property for various uses should examine this proposed ordinance very carefully. They may find that businesses, apartments etc., heretofore permitted in certain areas will be banned. Totals of building permits for September were not available at this writing. Port of Manila By H. W. Titus Luzon Stevedoring Company, Inc. ONE of the greatest problems confronting persons con cerned with the Port of Manila, and it is hard to find anyone,—from the steamship operator and importer to Juan de la Cruz who buys a can of milk, who is not in terested in Manila Harbor affairs, is that of the type of packing employed by shippers for cargo coming by ocean freight into the port. Some 75% of all general cargo coming into this port is packed in fibre cartons, second hand cases, plywood cases, crates, and other inadequate material. A review of goods discharged in Bad Order from ships in the port over a period of time shows in general the following types of packing materials employed which are wholly unsuited to the contents packed in them: 1. Fibre Cartons: a. Canned goods (food products) b. Paints and lubricants c. Glassware d. Electrical supplies e. Drugs and chemicals f. Office supplies and stationeries g. Cigarettes h. Textiles i. Clothing j. Printed Matter 2. Second-hand Cases: 3. Plywood Cases: 230 4. Fibreboard Cases: a. Textiles b. Rayon and cotton remnants c. Clothing d. Hardware e. Medical instruments 5. Cotton Bags: a. Flour b. Sugar c. Salt 6. Jute Bags: a. Rice b. Sugar c. Bean 7. Crates: a. Plumbing supplies b. Hospital supplies c- Household appliances 8. Paper Bags: a. Cement b. Powder, paint, and talc 9. Wooden Barrels: a. Hardware 10. Fibreboard Drums: a. Powder, paint, and talc 11. Bales: a. Textiles b. Printed matter c. Clothing The objection to the use of fibre cartons is that the weight of contents alone will tend to break them open; also, that when they are used for glassware or bottles, they cannot withstand the normal shocks of handling or pressure of stowage in the ship’s hold. The chief fault of this type of packing, however, is that any moisture, whether by normal sweating while stowed in the ship or otherwise, causes the carton to disintegrate. A case in point is that of bottled vinegar, syrup, or catsup packed in fibre cartons. As soon as one bottle breaks due to normal handling or pressure of cargo above it, the liquid released at once causes the carton to disintegrate, ruining not only the contents of one carton but all those adjacent to it. One important factor contributing to loss through improper packing, is that marks are frequently obliterated as packages are damaged and it becomes impossible to make delivery 'to consignees. This adds to the congestion of undelivered cargo in the terminal warehouses at the piers, and consequently to the difficulty of making proper delivery of “live” cargo. It goes without saying that improper packing gives further opportunities for, and in fact encourages, pilferage. All of the foregoing adds up to the fact that inadequate packing, which results in conditions shown in the accomClose-up view of glassware packed in cartons. Taken in Bad Order Corral, Pier 13, May 20, 1947. panying photograph, may be cheaper initially from the point of view of the shipper but actually causes enormous losses which must ultimately be borne by the consumer of im ported goods. The remedy for this tremendous loss of commodities sorely needed by all here, can only lie in joint action by insurance authorities who can adjust insurance conditions to meet this problem, shipping companies which can and should demand adequate packing for their own protection and adjust freight rates accordingly, and im porters who should insist that persons shipping to them do so in containers suited to the cargo. Any additional costs arising from a better grade of packing thus obtained, would be more than offset by lowering the amount of loss now sustained by all concerned. Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines EXPORTS for the month of September showed very little change from, those of preceding months: 114,227 tons for September, as against 146,951 for August. The expected increase in shipments of logs and lumber did not materialize last month, and judging from reports, no large movement can be expected until all export restrictions are moved. Shipments of desiccated coconut have steadily in creased during the year from 386 measurement tons during September, 1946, to 7,130 measurement tons for September of this year. A comparison of this year’s September export figures with last year’s, follows: Cigars......................................................... Desiccated coconut............................... Coconut oil.............................................. Copra.......................................................... Copra cake............................................... Hemp (bales').......................................... Logs and lumber (bft)....................... Ores............................................................. Rope............................................................ T obacco..................................................... Sugar............................................................ September 1946 September 1947 177 tons 161 tons 386 ” 7,130 ” — 1,249 ” 75,121 ” 86,763 ” 920 ” 2,814 ” 60,678 bales 44,598 bales — 765,788 bft. 8,000 tons 20,338 tons 389 ” 508 ” 358 ” 175 ” Inter-Island Shipping By D. M. Cameron Everett Steamship Corporation SOME concern has been expressed in trading circles in Manila over an article that appeared recently in the local press to the effect that inter-island operators had requested an increase of 150% in inter-island freight and passenger rates. The article "was incorrect in its impli cation that such an increase was desired or intended to be added to present rates. The facts are that the Philippine Ship Owners Association, of which about all owners of inter-island vessels operating from Manila are members, requested in July, 1946, an increase of 150% over pre-war basic rates. In December, 1941 basic rates were subject to increases of 10% and then 15%, and after liberation an increase of 35% went into effect. This percentage was the same as that applied to ocean freights at the same time. When the extremely high operating costs prevailing at that time are considered, it can easily be recognized that the operations by the U. S. Maritime Commission which covered the period from liberation to August, 1947, were carried on at an appreciable loss to the American Government. 231 These costs have receded only in a very minor degree and only in a few categories, while freight tomage and numbrr of passengers have dropped off sharply. With the high pay demanded by stevedores and crews and the steadily increasing costs of fuel, the pre-war ope rators who chartered Maritime Commission vessels, all of which are too large and generally unsuited to the trade, will be forced to relinquish their charters at the end of the initial 6-month period unless rates, at least in certain cate gories and between certain ports, are raised. The with drawal of all such vessels would leave the entire inter island trade to be covered by small F. S.-type vessels, which would, to say the least, put shippers and producers in a very precarious position. Once lost to this area, the Maritime Commission vessels will without a doubt be unobtainable again, and it is generally felt that a number of F. S. vessels presently operated will, within a year or so, be worn out to the extent of being uneconomical except for the very shortest runs. The building of proper vessels which, at present costs, few will undertake, would take years, and consequently inter-island trade could easily break down. The regular operators, some of which operate a few F.S. vessels, have re-established regular, scheduled runs which in the main are adhered to, and it is only with re gular schedules that traders can handle their business in a lucrative way. A request for reduction in Charter Hire is being con sidered but even this saving will not make the difference between red and black figures, and only increased freights and/or rates are the solution. Air Transportation By V. A. Brussolo Vice-President, Philippine Air Lines DURING the months of September and October there were a number of significant aviation developments which airlines in the Philippines cannot afford to ignore, for they will directly or indirectly affect present and future operations of air companies. For a good over-all picture, they are herewith presented in chronological order: 1. On September IQ, Undersecretary of Foreign Affairs Bernabe Africa enunciated the policy of the Philippine Government with respect to the landing of foreign aircraft in the Philippines. He declared that the "Philippines will follow the policy of air neutrality, granting equal rights to aircraft of all nations to land on Philippine airfields”. 2. On September 25, the Secretary of National De fense—under whom the former Bureau of Aeronautics was operating—issued rules and regulations governing the use of domestic government airfields and navigation facilities and imposing fees for their use. Landing fees im posed are based on the types of airports and on the gross weight of aircraft. Business conducted within government airports are also taxed 5% of their gross income. The new regulations further prescribe measures and precautions aimed at promoting safety. 3. Civil Aeronautics Administrator Jesus A. Villamor declared on October 9 that five cities are presently com peting with the Philippines in the establishment of the aviation-hub of the Orient, namely, Singapore, Shanghai, Hongkong, Bangkok, and Tokyo. He also indicated that he proposed to build at Nichols Field a metropolitan center inside the international airport compound. 4. On October 13, four American congressmen visited Manila on a fact-finding tour to study civilian aviation. The four congressmen are Leonard W. Hall (New York), chaiman; Hugh D. Scott. (Pennsylvania), and’James I. Dolliver 'Iowa), all Republicans, and Richard F. Harless (Arizona), Democrat. They declared having found the Philippines’ aeronautical facilities "below modem stand ards” and in great need of improvement. Taking up the defense of the aviation situation in the Philippines, Mr. Daniel Me. Gomez, secretary of Philippine Air Lines, pointed out that the equipment and operations of local airlines could well compare with those of the United States and other modem countries. This brought about a modifi cation of their previous statement from Representatives Scott and Hall, who explained that they had referred spe cifically to "Philippine airfields and those of other Far Eastern countries which have no facilities for approach, especially in bad weather.” "With such problems,” they added, "American aid through the CAA can be of great help.” In closing, they declared that "there is no doubt the Philippines will play an important role in the develop ment of air commerce. . . Without the Philippines there can hardly be any air-trade in the Far East, considering the Islands’ strategic location.” 5. On October 16, in his conference with the Amer ican congressmen, President Roxas urged that the United States Government consider the feasibility of assisting the Philippine Government financially in the maintenance of airfields in Laoag, Puerto Princesa, and Guiuan, in cluding aviation installations thereon. 6. Following this up, President Roxas on October 20, sought a $5,000,000 annual grant from the United States to maintain these three strategic bases, declaring that they form "a triangular defense of the Philippines, with Clark Field, American Army base, in the center”. 7. Toward the end of October, President Roxas an nounced that plans are under way to establish the largest and most modern airport in the Far East at Nichols Field. Col'nel Villamor was appointed Administrator for the International Airport, and work on the project has begun with the Beyster Commission drawing up the plans. The foregoing events very clearly indicate that the Philippine Government has undertaken an all-out effort to place the Philippines on a par with other nations of the modern world in what concerns air travel. A forecast of the future of the aviation industry can be found in the fact that, according to Mr. B. J. Talbot of that Company, Northwest Airlines did the biggest bus ness in its 21-year history in August of this year, with profit reaching a new monthly high. In August, North west had a net profit of $566,000 from its business with the Orient alone, thus exceeding expectations at this stage of development of the airline business in the Far East. Pan American World Airways ON November 22, 1935, a crowd of 125,000 spectators gathered on the shores of San Francisco Bay to wit ness the take-off of the Pan American World Air ways famed flying-boat, China Clipper, on the first trans Pacific commercial flight in history. Commanded by the late Captain Edwin C. Musick, the China Clipper soared over the Golden Gate and after 59 hours, 48 minutes flying-time landed on the wa ters of Manila Bay, establishing the first air-link between the Philippines and the United States. The arrival of the China Clipper was an epochal event for the people of the Philippines. Until then, the only link with the Western world had been time-consum ing surface travel. Via ship, it had taken passengers, mail, and express weeks to reach the United States. The com ing of the flying Clippers slashed that travel time to a matter of days! For six years, Pan American continued to serve the Philippines. Then the Japanese struck. It was to be four years before the people of the Philippines again saw the familiar insignia of the Clippers. During the war inter val, John Oppenheimer, PAA’s District Traffic Manager at Manila, and 33 other employees of the airline were in terned at the Santo Tomas and Los Banos prison-camps. Today, two years after the Japanese surrender, the flying Clippers are playing a vital role in making Manila one of the great aerial crossroads of the world. 232 Since resumption of Clipper service to the Philip pines in September, 1946, Pan American’s Pacific-Alaska Division has embarked on an extensive program of in creasing flight frequencies, slashing travel-time and im proving travel-comfort. Today, the Clippers link Manila not only with the Pacific Coast of the United States, but with all the major cities of the Orient and with India, the Middle East, and England. Manila is on the direct route of Pan American’s round-the-world service, the first one-carrier global sche dule in the history of aviation. Clippers operating to Manila via' San Francisco and Los Angeles, Honolulu, Wake, and Guam, continue to Bangkok and Calcutta, making connections there with Atlantic Clippers of Pan American for Karachi, Damascus, Istanbul, London, and New York. Another Clipper-service links Manila directly with Hongkong in China. And at Hongkong, Manila pas sengers also make regular connections with Clippers stopping at Tokyo, Shanghai, Hongkong, Bangkok, and Calcutta on Pan American’s second round-the-world route. All this stimulates trade and travel and a free ex change of ideas with the people of virtually every part of the world. Before the war, Pan American’s trans-Pacific routes were flown by flying-boats. Today, these reliable but relatively slow aircraft have been replaced by fast, fourengine landplane Clippers of the Douglas DC-4 type. And travel-time across the Pacific has been cut to a matter of hours. Instead of making overnight stops at island stations en route, the Clippers now operate on "cannon ball” schedules, landing at the islands for only one hour, long enough to change crews and refuel. Making this possible, is installation on the Pacific Clippers of the remarkable new sleeperette chair-lounges. No longer do air-travelers have to sit up during the 8,000-mile flight. The reclining-chairs and adjustable leg-rests of the sleeperette combine into full-length loun ges. Passengers are able to stretch out during both dayand night-travel. And at night, curtains around each seat provide compartment privacy and assure a restful night of sleep. It is not only in the fields of speed and passenger comfort that Pan American has brought ne.v standards of service to the Philippines. Recognizing the increasing need for swift and frequent air-express, the airline has introduced the Pacific Trader, a new all-cargo Clipper, which operates between Manila and San Francisco and return on weekly schedules. /graphically illustrating the advances made since post''■*war resumption of service to Manila, are statistics on passengers and express. Between September, 1946, and August, 1947, for example, the Clippers carried 4,340 passengers to and from Manila, as compared with 1,031 passengers flown by the Clippers during 1941. Equally impressive are figures on air-cargo. From September, 1946, to August, 1947, the Clippers carried a grand total of 242,974 pounds of air-express, including 15,246 pounds already transported by the Pacific Trader all-cargo service. This is contrasted to the total of only 38,384 pounds carried in the year before Pearl Harbor. Indicative of Pan American’s long-range policy of bringing the swiftest and most comfortable means of transportation within the price-range of the average tra veler, are the reductions made in passenger fares and ex press rates. As an example, it cost $950 to travel by Clip per from Manila to San Francisco in 1938. .Today the fare has been reduced to $726. Strategically located on the all-weather Central Pa cific air-route, the Republic of the Philippines can look to Pan American World Airways for even greater service as it continues its march toward All-Aria leadership. Land Transportation (Bus Lines) By L. G. James Vice-President and Manager, A. L. Ammen Trans portation Co., Inc. OF interest to the land transportation business in general, is a recent development which may affect the future pattern of bus operations throughout the Philippines. This is a decision of the Public Service Commission establishing a uniform rate of 1-12 centavos per passenger per kilometer, to apply essentially to opera tors of passenger buses in Central and South-Central Lu zon. Heretofore, the rate of 2 centavos per kilometer had been authorized for the various operators concerned. The Laguna Tayabas Bus Company and the Batangas Transportation Company filed a petition before the Public Service Commission for authority to reduce their existing rate of 2 centavos to 1 centavo per kilometer on all direct trips between Manila and all important terminals served by the companies in the provinces of Rizal, Cavite, Laguna, Batangas, and Quezon. This petition was op posed by the Binang Transportation Company and the Western Batangas Bus Company ®n the ground that, under present conditions, it is impossible for an operator to do business at a profit using a basic tariff of 1 centavo per kilometer. The People’s Counsel, an investigatory and advisory board recently established for the purpose of representing the public in cases similar to that under consideration, recommended that a basic general rate of 1-12 centavos per kilometer be established for all operators concerned, both for local trips and for through direct trips. The deci sion of the Public Service Commission followed this re commendation. The result has been the establishment of the 1-1/2 centavo rate by all operators serving the Ma nila territory and areas adjacent thereto. The standard pre-war passenger rate in general effect throughout the Philippines was 1 centavo per kilometer. Pre-war cost of operation per bus unit (depending upon local factors and type of unit used) averaged from 11 cen tavos to 14 centavos per kilometer. Present costs of ope ration (based upon data supplied from the operation re ports of fleet operators in various areas) vary from 28 cen tavos to 37 centavos per kilometer. It is thus evident that operational costs have nearly trebled, whereas the newly established rate applying to the Central and South Central Luzon area, is only 50% greater than the pre-war rate. It is, however, probable that operators in other parts of the Philippines will follow suit in applying for authority to reduce rates. This will give the traveling public the benefit of transportation at a cost which is entirely out of line with general price trends. A/Tanagement in general has been confronted with serious labor problems during the post-war period of adjustment, but an entirely new theory in CapitalLabor relationships was the cause of the short-lived strike of the employees of the Pampanga Bus Co., Inc. who walked out en masse on October 20. Recently, the company was reimbursed by the United States Army for the partial value of its equipment and stocks of supplies taken over for military use in 1941, amounting to some P875.000. The employees union thereupon presented a formal demand for 20% of the amount of the payment, which demand, naturally was rejected by the management on the obvious ground that the settlement represented the value of capital assets delivered to the Army and simply constituted reimbursement therefor. After the walkout, 233 the dispute was referred to the Court of Industrial Rela tions which ordered the strikers back to work, the order being complied with on October 22. At the hearing before the Court of Industrial Rela tions, where the case is now pending decision, the officials of the striking union offered no argument other than that employees have a vested interest in any payment made to a corporation on war claims or war-damage claims. If the Court should decide that this has any merit, the results would affect every employer who anticipates re ceipt of such payments. Gold By Chas. A. Mitke Consulting Mining Engineer WORLD gold reserves are reported to be at an all-time high. The total supply is said to be around $37 til lion. Of this, the United States holds between $21 and $22 billion, while the remaining $15 billion is distri buted among the other nations. This is a tremendous advance over 1914, when countries outside the United States held something between $3 and $4 billion. In 1925 this had increased to over $5 billion, and at the time the Pacific war broke out, the amount was $10.5 billion. In the interim, gold had been re-evaluated, but even so, the amount of gold in the world had greatly increased. No accurate information is available regarding gold production in Russia, but aggregate annual production in other countries amounts to $700 million. One great trouble still is the uneven distribution. The United States is the greatest creditor country in the world today. The other countries need the goods America produces, but cannot find sufficient dollars with which to pay for them. Suggestions have been made to redistribute American gold-holdings, which suggestions are looked upon with disfavor by the United States Treasury. The Inter national Monetary Fund is endeavoring to divert funds to countries where they can be used most effectively. Swit zerland is reported to have made dollar-loans to France and Belgium. Sweden and certain of the Latin-American countries are extending credits to European nations in need. The purpose of the International Monetary Fund, created in 1944, is to regulate international exchange and to supply short-term credit to member countries. Recently, it made dollars available to Great Britain. The Fund’s total assets, in gold and currencies, when all subscriptions are in, are reported to be $7,700,000,000. Values of cur rencies are to be adjusted gradually over a period of time. Whether this will occur in time to meet pending emer gencies is not known, but many countries are in great need at the present time. France has been reported to be facing a crisis within the next 30 to 60 days; Great Britain has said it needs help before the end of the year; former Am bassador Bullitt, returning frorh China, reports that $450,000,000 a year, for three years, will be needed to keep China from falling into the hands of the Soviets. Of this, $130,000,000 would be used to stabilize currencies, and the ba lance to cover necessary imports of cotton, gasoline, to bacco, wheat, oil, and manufactured articles,—a cheap price, if it works, compared to what we are pouring into Europe. It has been said that “if gold is repriced upward, it will not come in the form of a rise in the price of the metal, because of strong opposition in Washington. Washington, alone, is compelling the world to retain the long obsolete valuation of paper currencies.” It is believed far more likely that the change, when made, will be in the form of a revaluation of the paper dollar to fit its buying-power. Very likely, this will come from some country, other than the United States, hardpressed to find an acceptable exchange medium with which to purchase necessary products. “When it comes to a choice between depression or a fair price for gold, even the most doctrinaire theorist must bow to the hard fact that gold will always find its level. There is no substitute for gold, and for 600 years, demand has always exceeded the supply.”* There would seem to be a tendency toward exchanging currencies for “hard” money, and, in some instances, hoard ing has been noticed. The desire for something tangible, which will not “evaporate” but retain a substantial value in the face of a national crisis, is only natural. In the Phil ippines, during the occupation, people purchased diamonds, rather than retain the semi-worthless Japanese currency. It has been said that “acceptance” of gold as a token of inherent value is so common a characteristic of all manner of men. that there is scarcely any part of the world in which an individual possessing gold would not be able to exchange it for the goods or services he de ires. This is not theory; it is simply an observation on a human trait which seems to come as near to following a natural law as anything else in social science. Gold is trusted as a basis of exchange and as a measure of the value of currencies, to a degree that is not even approached by any other medium. Confidence in gold far exceeds confidence in governments, and pos session of gold is rightly regarded as a better security for wealth than the holding of promissory notes. Gold has the supreme virtue of tangible existence and traditional value which makes it resistant to political manipulations and not exclusively 'dependent on definitions and agree ments apt to become scraps of paper when they run coun ter to national expediencies. * John E. Kelly. Mining World, July, 1947. Lumber By E. C. Von Kauffmann President, Philippine Lumber Producers' Association LUMBER producers have submitted a petition to President Roxas urging the lifting of the ban on ex ports of cut lumber. The present partial permit for logs and flitches is not enough to relieve the producers of their difficulties. They claim that if allowed to export their high-class grades, the local market would not be af fected. On the other hand, they would have an induce ment to increase their production which would more than offset the amount of lumber exported. They ask for a trial period of six months, after which the President could ban the exports again if there was a shortage in the local mar ket. Local prices being set at a ceiling under Executive Order No. 65, there is no reason to believe that lumber would be sold at higher prices if the Government is as watchful as in the case of other commodities. The lifting of the ban would be very timely at this moment. Copra and Coconut Oil By Manuel Igual General Manager, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company ON September 15, we reported that the copra market closed with buyers bidding $170 c.i.f. Pacific Coast and with sellers holding out for $175 c.i.f. Immediately thereafter, reports of the com-crop shortage and the conse quent strengthening of tallow, brought the market rapidly up to a point where copra was sold in volume at up to $195 c.i.f. by the 20th of the month. The increase had been too rapid, however, and it began to be felt soon there 234 after that the edge was off the market, grains and lard being unsettled, and the only real strength being reflected in tallow. For that reason, copra eased a bit to $185. But with in a few days tallow jumped to 21 t and later to 22 i for prime quality. The copra market reacted to this by ad vancing, first to $190, then to $195, and eventually, to ward the end of September, several thousand tons were sold to Canada at $205 c.i.f. This caused sellers to increase their ideas immediately thereafter to $210 and over, al though only $200 was recorded as sold^o Pacific Coast, and this on a very limited scale. However, lard and grains promptly sold off, with the natural result that heavy offer ings of copra during the first few days of October at S200 c.i.f. were declined, and the entire market structure looked weaker with the exception of tallow, which still maintained unexpected strength. The general opinion was that American crushers were well covered for October, November shipment and in some instances for the remainder of this year, and consequently showed less interest in Philippine offers. This led to a decline in quotations which, however, was not as abrupt as it might have been because Philippine sellers who were not well covered on previous commitments, some of them, at substantially lower prices, took advantage of the halt to cover in, rather than to offer freely. This was good policy particularly because the peak of the copra season appeared to be past. Nevertheless, copra gradually sold off from the high of $205 c.i.f. Pacific and $210 c.i.f. At lantic, to $182.50 c.i.f. Pacific, and on October 15, the end of the period under review, it was felt, that business could not be developed at over $180 c.i.f. Pacific Coast. T'xuring this whole period, the European market was U extremely quiet. On September 15, business was done at $170 f.o.b. No substantial business was reported thereafter until well into October, when a small lot was traded at $180 or a fraction better. SCAP came into the market on the 10th for 3,000 tons of copra for the Amer ican section of Germany, and bought their requirements at $190 f.o.b., which was considered an excellent price on that day. By October 15, European buyers who had been holding back, both in expectation of lower prices and be cause of lack of dollars, began to register interest, and on this date 2100 tons were sold to Sweden at $182 f.o.b. When the period closed, however, the market had an easier tendency and the general opinion was that although there was no apparent weakness in the general oil and fats struc ture, we were likely to see lower prices for a while. 'opra exports for the month of September were reported ' (subject to revision) as follows: To United States destinations...................... 35,243 L.T. Europe.................................................................................. 43,631 ” South America.................................................... 1,500 ” India...................................................................................... 6,900 ” Total............................................................................. 87,274 L.T. 'T'he coconut-oil market opened on September 15 at 13X 1 2 i with desultory trading. From there on it advanced along with the copra market, but not as spectacularly. Owing to the tank-car shortage reported last month, which now appears to be a difficulty of considerable future dura tion, Pacific ‘Coast crushers found difficulty moving their oil to the Atlantic Coast. Consequently, spot tanks sold at high premiums, and in fact any promised delivery be fore the end of the year commanded a far better price than next year’s shipments, which were offered at sub stantially lower figures. On this basis, spot oil went as high as 18-1 2i to 19C f.o.b. Coast. October November Dec ember shipments sold up to 17-1 It, while January for ward could not bring better than 15-12 to 16^, and even tually were entirely neglected. As copra prices declined, oil prices followed. Some Philippine crushers took advant age of this situation to sell round lots of October November December oil to the Atlantic Coast at competitive prices. T ocally, the price of copra, which started at P29 on September 16, rapidly increased to a high point of P38, only to decline gradually at the end of the period to P33. Local oil, which was selling at from P.56 to P.58 per kilo increased to P.75 to P.77 when copra was selling for P200, and thereafter declined to P.72 to P.74 by October 15. Expeller cake for Europe improved considerably during the month, business having been reported on Sep tember 16 at $72.50 per long ton f.o.b. as contrasted with bids available on October 15 said to be as high as $78 f.o.b. nV ere was a great uncertainty regarding the market at the time the period dosed. On the face of it and statistically, there was nothing very weak in the picture. At the same time, it was felt that prices were fully high, and consumer-resistance plus heavy crops of cottonseed, soyabeans, and peanuts might well take the edge of the market and keep it from advancing further. European buying was manifestly curtailed by lack of dollars, and the big question-mark was when and to what extent the United States will aid Europe by supplying these dollars for the purchase of fats, and also to what extent the United States will draw from its own resources to supply fats to Europe. The United States itself was, however, in another inflationary spiral, which might well translate itself into higher prices for everything, including copra and coconut oil. Under these conditions, it would be a bold man who would undertake to predict what might happen next, and conservative dealers were not taking a position one way or another, but were following the market and trading only in stocks actually in sight. Once again the market was made to order for speculation, but in view of the bad experiences of several speculators during the past month or so, there was less tendency on the part of dealers to commit themselves to any definite market theory. The gradual decline in production and arrivals which were seasonally due, and which had been already discounted in American markets, contributed to this policy. In view of unsettled conditions and the unpredicability of so many factors, the general feeling was, both in Europe and in the United States, that the next month should see additional price fluctuations, both up and down. Synthetic Detergents /Considerable publicity has been given recently to the future of synthetic detergents more commonly known as “soapless” soaps. Synthetic detergents have entered the market held by soap for a thousand years, and their rapid development has been spectacular. Some quar ters estimate that output this year may reach over 600,000,000 pounds with the possibility of 1,000,000,000 pounds next year. While the soap industry is one of the largest in the chemical markets, with an approximate annual output of 3,000,000,000 pounds, and while it is alleged that the future of soapless soaps does not lie in the replacement of soap, but rather in the development of new uses which are not practical or possible for conventional soaps, un questionably soapless soaps have been found a satisfactory replacement in many of the uses of ordinary soap. This is considered in some quarters a potential threat to coconut oil, and accounts for the possible move on the part of the industry to request the United States Congress to eliminate the excise tax of 3 cents per pound. Under present condi tions of fats and oils shortage, undoubtedly consumer demand can absorb all the soap and all the detergents now being produced. Obviously, however, if detergent production continue to skyrocket, the American soap mar ket will not permanently be able to digest the combined output. Although animal and vegetable fats are used in syn thetics, research has been chiefly applied to petroleum pro ducts, from which a large amount of detergents is now being produced. Many feel that, with the excise tax re 235 pealed, coconut oil can probably stand the competition, and, if markets should ever be forced down to even ap proximately pre-war levels, synthetics might find it hard to compete successfully. However, if at these lower levels Philippine coconut oil still has to shoulder an excise tax of 3 cents, copra producers will eventually have to shoul der the burden, and this might form a very serious threat to the welfare of the industry. Only time will tell the out come, but the problem is one to be watched. Philippine Refining Company, Inc. IN the morning papers of Tuesday, October 7, appeared an interview given by Mr. Geoffrey Heyworth, Chair man of the Board of Lever Brothers and Unilever Limited, stating that the Philippine Refining Company, Inc. is planning to erect a modem coconut-oil mill in Ma nila at an estimated cost of P4,000,000. The amount in volved being considerable, it has been deduced that the enterprise itself must be a very large one. The Philippine Refining Company, Inc. and its pre decessors have been in the coconut-oil business in the Phil ippines since 1915. Prior to the war, the Company operat ed two large coconut-oil mills, one in Manila and the other in Cebu. Both of these mills were wrecked by the Japan ese near the close of the war, and the Company’s invest ments out here were largely wiped out thereby. Inasmuch as we have been in this business so long, however, and have been identified as one of the produc tive enterprises of the Philippines, it has been decided that both duty and inclination dictated at least a. partial restoration of our previous endeavors. To this end, we contemplate the erection of a mill here in Manila of ap proximately pre-war capacity. Costs have risen so high, however, that the erection of such a mill will require se veral times the pre-war investment. Methods of processing copra have changed over the years, and our new mill naturally will be built on the latest and most modern plans, and should be an efficient pro ducing unit when it is completed about a year from now: In conjunction with this mill, we expect to continue the manufacture of refined products, including edible oil, vegetable shortening, margarine, and laundry soap, an enterprise which we embarked upon in 1939. If after the completion of this mill additional invest ment in this country appears warranted, we shall give consideration to reviving our Cebu installation. While fixed capital investment in any new country must naturally involve a considerable amount of risk, it is the opinion of our Company that the announced policy of the Philippine Republic to encourage and protect foreign capital must be taken at full value; and that in a Democ racy, continuing to function under the American prin ciples of free enterprise, there should be an opportunity for legitimate business to carry on substantially as it did before the war. Moreover, the Philippines has treated us hospitably for over thirty years, and we feel a moral obligation to do our part in helping rehabilitate the country. It is for these reasons that we, together with so many other con cerns, have begun to try to restore, at least in part, our pre-war business. Kenneth B. Day Desiccated Coconut By Howard R. Hick President and General Manager , Peter Paul Philippine Corporation THE following report covers the calendar month of September, 1947. During the period, there was a very large and sudden increase in copra prices which resulted in much speculation on the part of planters and contractors. As a direct result, and due to State-side ru mors of further increases, it was difficult to obtain nuts without paying large premiums over the copra equivalent value. Several factories were consequently forced to shut down for short periods in order to secure sufficient raw nuts for processing. The general trend of increased copra prices and speculations as to the limit of the copra advance has led to limited nut-buying and the holding of low nut inventories until the market becomes more stable. The market activity saw prices go from P40 to P70 per thousand nuts delivered to the factory, where the market remained at the end of the month with a general trend toward easing off in October. The great demand for desiccated coconut in the United States continues and shows indications of continuing for another six months. There is considerable activity in the United States to push and advertise desiccated coconut for use in new candies. This campaign may add consider ably to the pre-war volume of the desiccated coconut business. SHIPPING STATISTICS OF MANUFACTURERS OF DESIC CATED COCONUT FOR THE MONTH OF SEPTEMBER Blue Bar Coconut Products Co... 1,837,100 Canlubang Sugar Estate.............Shipped by Frankl|n Baker Co. Cooperative Coconut Products.. . Shipped by United Coconut Prod. Franklin Baker Co........................... 2,713,260 Marsman & Co., Inc.......................... 405,200 Peter Paul Philippine Corp............. 2,006,000 Philippine Desiccated Co...............Shipped by Blue Bar Coco. Co. Red V Coconut Products............. 714,000 Sun-Ripe Coconut Products. . . 1,000,000 United Coconut Products, Inc. .. 384,000 Manila Hemp By Murray Cook International Harvester Company of the Philippines THE month of September witnessed a firm and active market for Manila hemp. Starting quietly at a price of P45.50 per picul for Davao JI, the market soon firmed up. By September 9, the price had risen to P49, with some business reported at P50 per picul. Even at these prices, loose hemp was scarce and difficult to buy for a few days until sellers appeared and a slight reaction took place. The market remained steady to firm, around P47.50 for Davao JI to about the third week of September. At this point, exporters showed more desire to buy, resulting in a sharp advance in the market. By the end of Sept ember, buyers were eager at a price of P51 per picul, clos ing the market for the month on a firm basis. During the month under review, a steady and orderly market existed in the non-Davao grades. Opening quietly at a nominal price of F37.50 per picul for JI, the market— in sympathy with Davao, slowly advanced to P38.50 during the first three weeks. Supplies other than Unitea Kingaom grades were extremely scarce and difficult to buy. Fortun ately, demand for lower grades by United States manufac turers continued steady, and exporters kept comfortably operating. The last week of September was one of little activity in the absence of sellers, and exporters were content to digest previous purchases. The market closed very firm at a nominal price of P39 per picul for JI. ■production during September was within a few bales of the August figure supplied by the Fiber Inspection Ser vice. A total of 76,594 bales were produced, which again established a post-war record for any one month. This exceeded the total number of bales for August by 164 bales. Davao production was off to 29,106 bales, while the non-Davao grades accounted for the balance of 47,488 bales, a post-war record for non-Davao. Of the total of 76,594 bales produced, approximately 47,000 bales were United States grades. Non-Davao production is still tending toward lower grades. 236 Sugar By G. G. Gordon Secretary-Treasurer, Philippine Sugar Association FOR the purpose of receiving proposals of the Asso ciated Steamship Lines regarding the freight-rate on sugar for the coming milling season, a committee of sugar shippers consisting of Messrs. Gordon, Bridgeford, and Rosales was appointed recently to meet with a com mittee of the Associated Steamship Lines. Although the Indian Government has allocated a quota of jute bags to the Philippines, some sugar centrals are still facing the problem of securing their sugar-containers, in view of the inability of Indian suppliers to make further shipments from Calcutta. Other sources are being explored with the hope of finding satisfactory substitute containers. The War Damage Commission held a public hearing on October 20 regarding the Commission’s ruling on the filing of war-damage claims by the centrals on behalf of the planters, and also for determining the valuation of sugar to be used as a basis of war-damage claims by cen trals and planters. A large delegation of planters and central representatives attended this hearing. In view of the impending departure of Mr. Juan Cojuangco for the United States, Mr. Jose Cojuangco has been elected member of the Executive Committee of the Philippine Sugar Association for the unexpired term. The following centrals have reported that milling operations have begun: La Cariota Lopez Sugar Central Bogo-Medellin Milling Company Quotations on the New York Sugar Exchange for the period from the second half of September to the first half of October ranged as follows: Total Sales High Low Close Sales May............................ ............. 5.22 5 01 5 15 44,000 tons July.................... .... ............. 5.20 4 98 5.16 10,750 ” September................ ............. 5 19 5.00 5 18 2,100 ” December................. ............. 5.23 5 06 5.23 250 ” 57,100 Tobacco By the Conde de Churruca Compahia General de Tabacos de Filipinas ACTIVITIES in leaf tobacco are quiet, and only a small amount of local trading was done last month. Some tobacco was exported to Algeria (French North Africa), but the shipments were the result of previous contracts a few months old. The last typhoon which crossed northern Luzon could have had severe consequences for the tobacco planters; luckily, very few had started preparing the seed-beds, of which about one-third has been lost and must be re placed. That is the advantage of early planting; there is always time to replace losses caused by bad weather and storms. Also, the early crops, if not damaged, produce tobacco of better quality because the harvesting then has a very good chance of being done under the most favor ableyiveather conditions. On the other hand, the not Very enthusiastic or active farmers will not risk having to do their planting twice, and so plant as late as they can to avoid possible floods. /T'he cigar industry, one of the most famous of the Is lands, has been very badly hurt by the war. Most of the factories lost everything, stocks, machinery, and buildings. Part of the machinery was looted and sold to uncon trolled manufacturers and cannot be traced, the result being a persistent sale of inferior quality cigarettes and a falsification of a few of the most saleable brands. The Bureau of Internal Revenue and the Manila Tobacco Association are giving serious consideration to this problem and hope in a near future to effect control over the sale of cigarettes, so as to protect the public from products that are not guaranteed by the official inspec tions which are a necessary part of this business. The local cigar business has been greatly hurt by the flood of Army surplus cigars, which irresponsible small merchants and street-vendors are peddling everywhere, underselling the local product. The usual tax is sup posed to be paid on these cigars so as to give a fair chance of competition to local makes, but it is obviously impos sible to control the thousands of peddlers throughout the city, and the result is a very unfair competition. The harm done to the leaf tobacco-farmers and cigar factory workers is considerable, and will only come to a stop when the surplus cigars are banned or the supply runs out. Machinery By V. E. Lednicky Edward J. Nell Company THE machinery market in the United States is definitely improving insofar as deliveries to the Philippines are concerned. There is also a definite tendency for prices to rise steadily and to continue to do so until the expected recession begins. Although most manufacturers have a large backlog of orders, they prefer, if possible, to ship to countries not hampered by exchange restrictions, and the Philippines happens to be one of the favored few which are allowed by the United States Philippine agr ements to pay drafts promptly. When shipping to many other countries, the manufacturer often has to wait 90 days or more for his money. Such a long wait ties up too much capital for the average manufacturer and he cannot afford to take the risks of doing so. Although many factories are equipped to turn out much more than they are doing at present, they are unable to get operatives for machines, and it is no uncommon sight to see whole rows of idle machines in many plants. The officials concerned give several causes for the lack of labor, both skilled and unskilled. Two of the principal of these are that several hundred thousand young men are taking advantage of the “G.I. bill of rights” and are at tending college, and that many others have gone into busi ness for themselves with the aid of government loans. The high price of lumber and food products has attracted a great many young men who would otherwise be working in a production-line. Mechanics’ wages are high but they cannot compare with the income of a farmer today. The wheat grower of 1941 was broke and in debt, but now, after six years of high prices and bumper crops, he has more money than he knows what to do with, while the factory worker is struggling along against the rising prices of foodstuffs and can barely make ends meet. During the war the price of metals was controlled and this tended to keep prices of manufactured products down, but as soon as controls were removed, prices of metals sky rocketed. Even at the present prices, there is a definite shortage of lead, zinc, and copper; in fact, the shortage of copper this year will reach the substantial amount of 100,000 tons. Government reserves are being rapidly depleted, if they are not already gone, and there is no immediate relief in sight. Before the war, mines were forced, because of low prices, to operate at a loss or at no profit, so they did a 237 minimum of development work. During the war, metal was a prime necessity and was used at a rgte of ten times normal. In order to get sufficient production with limited crews, it was imperative that high-grading be resorted to. The best ore was taken out and only the low grade was left, and there was no time to develop future reserves. As the matter stands today, many mines cannot operate at present prices because their ore reserves are too low-grade and they won’t have funds to carry on extensive develop ment work until the reserves will have been brought up in grade. There is only one solution, and that is to raise the price until production costs are covered. Naturally an increase in the price of metals will necessitate an increase in the price of finished machinery. It is a vicious circle and only a depression or a recession, as it is now called, can stop the rat race. Automobiles and Trucks By J. L. Manning Manila Trading &• Supply Company THE records of the Division of Motor Vehicles reveal the following figures on revenue collected from vehi cle registration and drivers’ licenses for the periods indicated: 1941.......................... P5,300,000.00 1945.......................... 1,431,552.81 1946.......................... 8,221,666.18 These figures are particularly interesting in view of the fact that actual fees per vehicle are exactly the same at present as obtained before the war. A total of 118,630 drivers’ licenses were issued in the period from January 1 to June 30, 1947. A survey of market conditions in the automobile and truck trade, indicates a substantial increase in credit sales from January of this year through October. The majority of truck credit-sales are being consummated oh the basis of 50% in cash and the balance payable in 6 equal monthly installments. Automobile credit-sales are generally 50% to 75% in cash and the balance in 3 to 4 equal monthly installments. It is estimated that between 35% to 40% of automo bile sales are now being made on a time basis, as opposed to the strictly cash transactions for the first 7 months of this year. Best estimates on truck sales would indicate that at persent over 50% of all sales are made on an installment basis, whereas in January of this year less than 20% of the total were on a credit basis. All indications are that the market and .demand will remain strong and that merchants are in possession of an adequate inventory to handle requirements. Drugs, Health Supplies, and Toiletries By Frank A. DelgaD6 Assistant General Manager Philippine American Drug Company AN anomalous situation prevails today in the Philip pines in the marketing of such consumer items as packaged medicines, surgical dressings (cotton, ad hesive plaster, etc.,) toiletries, razor-blades, tooth-brushes, combs, sun-glasses, household dyes, insecticides, shoe polishes, and numerous other items imported and distri buted by drug wholesalers and importers. The anomally is that in recent months distributors in Manila frequently receive notices from the United States of actual or planned price increases for the subject products, notwithstanding a definite local heavily-overloaded inventory-situation which has resulted in quite a few of the items now selling at distressed and give-away prices, well below either actual landed costs or replacement costs. Despite the rising price-trend in the United States for a number of drugs, insecticides, cosmetics, toiletries, and drug sundries, many of these items continue to be sold in the Philippines at less than "State-side” prices. However in justice to the American drug industry, it should be pointed out that in the United States, consu mers are spending only 3.12% more today for nationally advertised packaged drugs and toiletries than they did in 1939. Mr. C. C. Caruso, President of the National Drug Wholesalers Association pointed out in April, 1947, that the drug business was almost alone among the great industries in the United States in maintaining a record of scarcely a price increase from 1940 to 1946. Most of the price increases referred to in this review have occurred since April. The situation is particularly disturbing and confusing when a distributor receives for example a shipment of ab sorbent cotton, the price of which has substantially in creased, and finds it impossible to make sales because competitors are actually selling at prices below his cost. Under circumstances such as this, where it is impos sible to meet such "cut-throat” price competition, it would seem that the best possible policy to adopt would be to discontinue ordering such an item or order it in greatly reduced quantities, until the supply and price situation assumes a normal tone. It is to be hoped that prices will adjust themselves as inventories are lightened. In the meantime, however, the situation is further aggravated by the disposal of surplus P.X. supplies such as razor blades, certain brands of tooth-paste, talcum powder, shampoos, etc. Such surpluses when thrown on the mar ket and added to the already excessive over-supply situa tion, result in the squatting sidewalk-peddlers with which Manila abounds hawking well-known brands of American shaving-creams at Pl.00 ($0.50) a dozen, hair-combs at 5 centavos each, Gillette razor-blades at 3 or 4 packages for Pl.00. It is very difficult for legitimate business estab lishments paying high rents to meet this competition. The difficulty is even greater when one considers that on a great number of the products the legitimate dealer pays a luxury tax of 20% and on others 5%. Even though he sells at much less than absolute landed cost, he must pay the tax. A brief explanation of the cause of the present oversupply situation would seem in order. The 15- to 18months period following the war, was one in which con sumers eagerly sought goods. Selling was to a large extent effortless. There was to a large degree a substantial amount of capital and cash, with restricted available quan tities of merchandise. During and especially after the war, many new firms sprang up and engaged in businesses that were new to them. Many of them made their capital in the "buy-and-sell” business. Another factor not to be overlooked is that several of the relatively small pre-war wholesale dealers, who were actually no more than sub wholesalers and who were regarded by the large whole salers as customers, decided to expand, import direct, and compete with the older and larger established wholesalers. Regardless of the tremendous cost of supplies, they in turn sold at high prices, particularly during the nearly two years that American troops spent so freely in the Phil ippines; and while many of them were wiped out and still others will probably disappear, a considerable number have swollen the present ranks of importers and whole salers of drugs, cosmetics, chemicals, and similar products. It is estimated that for every one pre-war dealer in the subject products, there are now two or three such dealers, even though some of them may not be large. 238 November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 239 Therefore, during the early post-war period, not only the legitimate pre-war dealers were placing large orders, but the newcomers in the field were doing likewise, thus for every pre-war importer there were two or even three, and it was not uncommon for an advertisement to read: “Just received a shipment of women’s dresses, cannedsardines, men’s shoes, liniment, penicillin, hardware, metal roofing and cosmetics.” The result was that although it sometimes took a second or third shipment, the pipe-line was finally filled to overflowing, and then, to add fuel to the fire, surplus Army supplies began to be thrown on the market and continue to be offered up to the present. The supply-situation was complicated further when the Philippine Government during 1946, through its Na tional Trading Cooperatives, placed large orders for such products as mouth-washes, pharmaceuticals, laxatives, sanitary-napkins, adhesive-plaster, and the usual items dealt in by wholesale drug houses. This action on the part of the Government was ostensibly designed to “prevent monopolization, hoarding, injurious speculation, manipu lation, private control, and profiteering affecting the supply, distribution, and movement of articles of prime neces sity.” It may be of interest to note that the agency in question appears also to be confronted with an excessive inventory problem and is reported to be making offers of part of its stock below cost. Another contributary cause to the overloaded inven tory-situation was the shipping by American manufac turers of large supplies to this country, even if the item was in short supply in the United States. For example in April, 1947, Canada, the United States neighbor, was threatend with a critical shortage of soap, notwithstand ing plentiful supplies in the Philippines, and frequent fresh arrivals. It should be mentioned that at about this time, acting in support of President Truman’s anti-infla tion drive, a large number of American soap manufacturers reduced their prices approximately 10%. It may be appropriate to remark, if it is any consola tion to the drug wholesaler in the Philippines, that in the United States retail inventories swollen far beyond nor mal levels accounted for a sharp decline in manufacturers’ shipments of toiletries for the first four months of this year. The same study revealed also that January, 1947, dealer-stocks of toiletries were 32% over January, 1945. The indication was that retailers were reducing inventories. A recent occurrence will illustrate the overloaded market for certain items. Early in October, the Manila representative of one of the largest drug houses in the United States received a cable offering quinine tablets, which had just been freed from government control in the United States, at what seemed a very low figure. But a survey of prevailing prices in the Philippines revealed that they were being and had been offered at much lower prices here. With the warehouses of Manila filled with the type of consumer goods under discussion, the only solution which seems to present itself for legitimate, long-estab lished drug wholesalers, importers, and distributors, is to recognize that on a substantial number of the subject items they must take a partial or complete loss, depending on their actual realizable value on today’s market, and carry them on their inventories only at such value. In cidentally, proper action should be taken regarding in surance at the new value. It is better to take a partial loss on such items immediately, than to wait and take a greater or complete loss later. This, of course, is difficult medicine for the wholesaler to swallow, particularly in view of the currently high operating cost. Wages, salaries, and all other expenses have increased greatly, and the tendency is for them to continue to rise. In the United r he Sign of friendly Service THE ASSURANCE OF GOODWILL ON THE ROAD Drive Safely with Mobilgas & Mobiloil STANDARD-VACUUM OIL COMPANY PHILIPPINES 240 AMERICAN CHAMBER OF COMMERCE JOURNAL November. 1947 States, 63% of the wholesale druggist’s cost of doing busi ness is labor. The subject of operating cost bring up the real need of trimming expenses to meet the lower salesvalue volume brought about by— 1. Unemployment and general economic conditions; 2. Reduced prices which may not provide margins which adequately cover the alays high wholesalers’ hand ling cost. It is a well-established fact that when sales begin to recede, it is impossible to bring down the cost of operations proportionately. According to the National Wholesale Druggist Association, “a slump of 20% in a wholesaler’s sales results in a rise of 2.7 in wholesaler’s operating cost, which is enough to wipe out completely their entire net earnings.” Obviously, a step in the remedy to relieve the local current high-inventory and low-price situation, is to pur chase ultra-conservatively, oftener, and in smaller quan tities, and to keep inventories down. Part of the cause of the situation under discussion was abnormally large pur chases, with consequent high inventories. While it is rea lized that the wholesale druggist in Manila must carry a larger inventory than his American counterpart, it is nevertheless interesting to know that according to an esti mate of the U. S. Commerce Department, based upon returns from 153 drug wholesalers, their inventories at the end of May, 1947, averaged only $410,000 (P820,000). During May, these same wholesalers enjoyed aver age sales of $232,100 (P464,200). A handling-costs study, completed early in 1947 for the National Wholesale Drug gist Association by Prof. H. J. Ostlund of Minnesota, revealed that for the 20 drug wholesalers who were sur veyed, average annual sales amounted to $3,750,000 (P7,500,000) each. These figures indicate, assuming the in ventory remained constant and there was an approximate mark-up of 25%, that five or six turnovers may be expected annually and that, if drug wholesalers in the Philippines exercise maximum care in placing and timing their orders, they should do a reasonably large business on a relatively small inventory. Another important step that should be taken, is to write the American manufacturers of the products which constitute a supply problem and urge them in their own interest and in the interest of the drug wholesalers affected, to engage in an aggressive and generous advertising cam paign designed to move the products in question into the hands of consumers. In at least two instances this plan has proved successful for a local wholesaler who now con templates writing many other manufacturers. Unfortun ately, many American manufacturers who advertised very heavily before the war and who continue to do so in the United States, have taken advantage of the situation and seem to have reasoned that if they received tremendous unsolicited orders from the Philippines for 12 to 18 months after liberation, why plow back part of their profits by buying advertising-space in foreign news papers? This is a strange attitude for any member of an industry that ranks in the United States among the first four in expenditures for advertising. During 1946, some 20 American firms manufacturing drugs, cosmetics, soaps, and related products, spent over $1,500,000 each in ad vertising. Several of them spent sums as high as from $3,000,000 to nearly $13,000,000. Many manufacturers who are newcomers in this mar ket have displayed sounder judgment and, as a result of well planned promotional programs for their products, are already well established. One could appropriately quote Mr. James Hill, Jr., President of Sterling Drug, Inc., who recently stated, ‘‘Ma nufacturers must continue to advertise if they are to halt sales declines.” This remark, however, should apply to foreign markets such as the Philippines just a much as it does to the United States. THIS EMBLEM . . . IDENTIFIES INTERNATIONAL HARVESTER BRANCHES AND DISTRIBUTORS. BEHIND THIS NAME STANDS ONE OF THE WORLD’S LARGEST SERVICE ORGANIZATIONS. NOW! The Finest Values in More Than 40 Years of International Truck History There is a Size and Type for every Hauling Need International Harvester Company OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA CEBU BACOLOD DAVAO IN T E R N AT IO N A ^Trucks November, 1947 AMERICAN CHAMBER OF COMMFRCE JOURNAL 241 To alleviate the local supply problem, not only should the American exporter resume and increase advertising in the Philippines, but he should allow larger and fairer margins of profit to meet the tremendous post-war increase in the costs of doing business in this country, which in cludes losses of cargo through pillaging, greatly increased labor and salary cost, transportation cost, etc. Distribu tors in the Philippines, just as in the United States, need a margin commensurate with the proved cost of handling goods in the units or quantities in which they are custo marily ordered. American manufacturers of high-grade prestige lines (perfumes, cosmetics, treatment-lines, and related pro ducts) will be wise to exercise care in the selection of ex clusive distributors and select one who will use discretion in obtaining reasonable high-grade outlets for resale. Their export sales may not be quite as large at the start, but from a long-range point of view it will pay the American exporter of a high-grade line to pursue a policy of selec tive distribution, otherwise he may find his line has been killed by falling into the hands of sidewalk-peddlers and other low-grade outlets. Textiles By James Traynor SEPTEMBER arrivals of American textiles were estimated to be about double the quantity that ar rived during August. The arrivals from Shanghai were approximately three times greater than during Au gust. These increased arrivals were sold readily enough, although some sold at cost or lower. The American grades suffering most from Shanghai competition, were printed, bleached, and unbleached goods. No new important busi ness for these grades has been placed with American mills for several months and no business is expected in the near future. No arrivals were reported from Japan during Sep tember. The volume of business placed with American mills during September is estimated to be better than during August, and according to reports this is also true of the volume placed with Shanghai mills. The New York market continued to be firm and in creases were reported on most grades. The delivery situa tion with American mills is still “far ahead”, but importers are now beginning to place orders for shipment up to next March Ap il. Until recently, importers were reluctant to place orders for deliveries so far ahead. All during September the off-take was satisfactory and toward the end of the month local prices on some grades, which were overstocked, adjusted themselves in line with cost. Legislation, Executive Orders, and Court Decisions By Robert Janda Ross, Selph, Carrascoso & Janda THE Congress of the Philippines has not been in ses sion during the past month and there is no new legis lation to require comment. Attention is directed, however, to the coming session opening in January next year. The Congress will consider the economic and legis lative programs proposed by the Beyster Report and by the recommendations of the Joint Philippine American Finance Commission. Legislation of far-reaching significance to the business community will undoubtedly be enacted. ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE 222 REGINA BUILDING TEL. 2-83-64 ENGINEERING DEPT. & SHOPS PUNTA, SANTA ANA TEL. 8-63-32 ENGINEERS-CONTRACTORS DIS TRIB UTORS FOR FAIRBANKS MORSE & CO. GARDNER DENVER CO. CHAIN BELT CO. ARMCO INTERNATIONAL CORP. PIONEER ENGINEERING WORKS YORK CORPORATION LINCOLN ELECTRIC CO. WALSH REFRACTORIES CORP. MARION POWER SHOVEL CO. 242 AMERICAN CHAMBER OF COMMERCEJOURNAL November. 1947 During the month there have been no decisions of the Courts of outstanding interest to the business community. However, the newspapers report that the Supreme Court had voted to decide the case of Krevenko versus Register of Deeds of the City of Manila adversely to plaintiff. If so, the result would be that aliens and alien-controlled entities would be constitutionally disqualified from owning residential and commercial real estate. Because of the adverse effect of disqualifying foreign capital from par ticipating in the reconstruction of Philippine urban prop erties, it is sincerely hoped that the report will prove to have been incorrect. The Supreme Court in denying mandamus in the case of Schoenbeck versus Barrios, in effect held that state less persons of former enemy nationality were not dis qualified from applying for Philippine citizenship, prior to the conclusion of a treaty of peace between the Philip pines and the country of their former nationality, if they can show they were divested of their former citizenship prior to outbreak of the war. In Executive Order No. 97 the President waived all unpaid additional progressive taxes provided in section 2 of Commonwealth Act No. 567 to be paid by the pro prietors or operators of sugar mills for the 1941-1942 crop. Payments made prior to the date of the Order, however, are not refundable. In Executive Order No. 93 the President abolished the National Enterprises Control Board and turned over supervision of government corporations to the Govern ment Enterprises Council which was created by the Order. The properties and operation of Metran were transferred to the Mani a Railroad Company. Certain other govern ment corporations were consolidated or reorganized. The Collector of Internal Revenue in General Circular V-39 publicized opinion No. 210 of the Secretary of Jus tice which held that the term "manufacturers”, as used in the Internal Revenue Code, does not include those engaged in the business of re-sawing or re-cutting of al ready manufactured lumber into smaller sizes, or the plan ing, surfacing, or otherwise finishing of such lumber. The result is that such processors are exempt from the percent age and other taxes payable by lumber manufacturers. The Collector revoked previous rulings and circulars of his office inconsistent with the opinion of the Secretary. Philippine Government Corporations From an Official Source Sept. 17—The appointment of Secretary M. Garchitorena of the Department of Agriculture and Commerce as Chairman of the Oil Commission, is announced. The Commission was created by joint congressional resolution in May. It will take steps toward the exploration, deve lopment, and utilization of the petroleum resources of the country,—whether through the National Development Company or through private entities, or both, will depend on the study and recommendations of the Commission. Sept. 19—President Roxas and his party visit Capiz to inspect the site of the proposed addition to the NDC cannery in the town of Panay. A tripling of the capacity of the plant was recommended by the Beyster Commission. It is planned to can meat as well as fish, and hog and cattle raising will be undertaken by the NDC in the interior towns of Ilayan and Aklan. Manager V. Sabalvaro asked for P500,000 to rehabilitate the Capiz fish industry, which presently nets the Government some P25,000 weekly. Sept. 22—Budget Commissioner Pio Pedrosa, speak ing at a meeting of delegates of the National Cooperatives Distinctive Printing Our advantages of superior workmanship, facil ities and experience are evident in the numerous printing jobs we have done for business leaders. McCullough printing company DIVISION OF PHILIPPINE EDUCATION COMPANY, INCORPORATED PRINTERS * ENGRAVERS * STATIONERS 1104 CASTILLEJOS ★ QUIAPO, MANILA ★ TELEPHONE 2-94-76 November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 213 Administration, states that one of the great tasks the Government faces is the nationalization of the retail trade, but that it is clearly not in Philippine interest to adopt a policy that is unfair or antagonistic to other countries or their nationals here who have assisted materially in the economic development of the country and have a right to be treated with equity and justice. The Govern ment will not compel patronage to be given to Filipino retailers just because they are Filipinos, but will extend to them such encouragement and such facilities as may properly be extended to enable them to stand on their own worth. This involves also the development of private initiative. He states that the National Cooperatives Ad ministration and provincial trading corporations (under the auspices of the Bureau of Commerce) were organized for this purpose. There are now 1,195 consumers’ coope rative associations with an authorized capital of P32,500,000 and a membership of 250,499. The provincial trading corporations have organized as subscribers some 2,000 of the 60,000 Filipino retail merchants in various localities, the corporations serving as procurement agen cies. He states these two organizations must be coordin ated and that therefore the provincial trading corpora tions will be transferred to the National Cooperatives Administration which will be renamed the National Co operatives and Small Business Corporation. The pur chasing functions will be transferred to the new Philip pine Relief and Trade Rehabilitation Administration (PRATRA). Sept. 26—Members of the Cabinet decide to initiate the floating of the bonds of the Reconstruction Finance Corporation by each purchasing at least Pl00 worth. The Cabinet agrees that the Surplus Commission be paid at least P300 for each jeep or other U. S. Army sur plus vehicle turned over to a government entity. Sept. 27—President Roxas appoints Commissioner Pe dros i ad interim vice-chairman of the board of directors of PRATRA. Oct. 1—Five officials and employees of the National Trading Corporation are suspended pendi g a final report of an investigating committee which is looking into certain irregularities allegedly committed by them. Oct. 4—Malacanan release a report that 10,000 cases of canned milk belonging to the National Trading Cor poration have spoiled. Further large losses are entailed in the decrease in price. The milk was bought in early 1946 at P15 a case and now sells for P9. The National Trading Corporation opened business on October 19, 1945, and from that time up to June 30 of this year s Id food stuffs amounting to P16,249,232.70, the purchases during this period totaling P17,987,752.47. Despite the losses indicated, the Corporation reported a profit of P426,011.16 as of June 30, 1947, and a profit of P494.523.02 as of June, 1946. Oct. 7—President Roxas casts the government votes at the stockholders’ meeting of the Manila Railroad Com pany. Commissioner Pedrosa is elected President, F. E. V. Sison remaining General Manager. The office of Comp troller is eliminated, in line with the policy of President Roxas of segregating the auditing from the accounting work in all government-owned corporations. For the fiscal year ending June 30, 1947, the Company incurred an ope rating loss of P786,000, and no provision has been made for the payment of interest and amortization on the bonded indebtedness to the former English owners of the Com pany. Only 866 kilometers of the pre-war 1,140 kilomet rs of trackage was operated during the year; 64 locomotives as compared to 146 pre war; and 2,037 cars of all kinds as compared to the pre-war 2,889. During the year, the Naga-Ligao line, 68 kms., the College-Pagsawitan line, 28 kms., the San Pablo-Lticena line, 44 kms., and the Col lege-San Pablo line, 44, kms. were rehabilitated. Eleven r----------------------------- > PRODUCERS and EXCLUSIVE DISTRIBUTORS OF: SUGECO Highest Purity OXYGEN and ACETYLENE Gases "NATIONAL” carbide WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS OF SUPERFL A ME" BOTTLED GAS FOR ALL COOKING PURPOSES and “TAPPAN” GAS STOVES with complete Installation and Service Facilities 244 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 steel bridges were completed, with a total length of 582 meters; ten bridges, with a total length of 240 meters, were temporarily repaired. The Company has filed claims with the War Damage Commission amounting to P29,000,000. Assets before the war amounted to Pl 17,000,000. During the past year, assets were increased by P20.000,000 represented by advances made by the Government of Pl2,500,000 and special assets received from surplus Army property valued at P8,000,000. Accumulated ope rating losses since before the war amount to P4,355,000, but the amounts are diminishing. Secretary Ozaeta, answering an inquiry of the Secre tary of Agriculture and Natural Resources, states that the National Development Company will have exclusive control, supervision, and administration of the land re served for government lumber-production, and that it will be exempt from complying with the forestry laws and regulations relating to cutting, gathering, and removing timber and other forest-products, but that it will have to pay the regular forest charges and must comply with, in ternal revenue laws and regulations. Oct. 9—Announced that Madox Brown is the new press relations officer of the Beyster Corporation, relieving J. S. Hinchman. Oct. 11—According to a Malacanan press release, the annual stockholders’ meeting of the Manila Hotel Company was held yesterday, with Commissioner Pedrosa presiding as President of the Manila Railroad Company, the controlling entity. For the fiscal year ending June 30, the Hotel made a net profit of P836,192.85, and the General Manager, Col. Manuel Nieto, and the board of directors were highly commended for this showing. Collonel Nieto’s main recommendation was for the appropria tion of funds required for the reconstruction of the airconditioned wing of the Hotel. Labor From an Official Source Sept. 17—Malacanan announces that the strike at the Pandacan plant of the Caltex Company is not a con flict between capital and labor but between two rival labor unions, one of which demanded the dismissal of three employees who were members of the other, the Company refusing to do this without a previous hearing of the men concerned. Sept. 22—Malacanan announces the settlement of the Caltex strike, an agreement having been reached that dismissals or lay-offs will be determined by a committee composed of two representatives of the Company labor association, two of the National Labor Union, and one of the Department of Labor. Sept. 29—President Roxas issues an executive order authorizing provincial, municipal, and chartered city governments to grant the living bonus, which lapsed the end of June, for the new fiscal year ending June 30, 1948, payments not to be in excess of the scale fixed by the Na tional Government for its own officers and employees and provided that their financial condition permits this pay ment. Oct. 4—Secretary to the President Nicanor Roxas, in a speech on the Malacanan grounds at the program given in honor of 113 "exemplary employees” of the Gov ernment selected for this distinction, states that these em ployees should serve as models to others and that merit alone should be the basis for advancement in government service. Malacanan reports that hundreds of families on Panay Island receive some P50.000 a week from around 3,000 relatives working under contract with the Luzon Stevedoring Company for the U. S. Navy Supply Corps in Guam. They are paid a minimum daily wage of P3.50, free food and housing, and various privileges, with a guar antee of 5 days’ work a week. At the end of his year’s contract, an employee is given a bonus based on his earn ings, and free transportation home. If he seeks reemploy ment after his vacation, he is given preference over new replacements. Filipino laborers are given priority over any other nationality in Guam job-placement, there being a scarcity of local labor. COST OF LIVING INDEX OF A WAGE EARNER'S FAMILY IN MANILA BY MONTH, 1945 TO MAY, 1947 Prepared by the Bureau of the Census and Statistics 1941 ~I00 All (59.15)2 House Rent (8.43)2 Clothing (0.63)2 Fuel, Light and Water (13.94)2 Miscel laneous (17.86)'. 1945 March...................... 559 8 635 5 236 4 1695 2 237.1 674.4 April........................ 598 8 702.1 236.4 1611 9 254.3 661 .4 May......................... 689 7 799 4 236 4 2041 .5 380.7 734 8 June........................ 745.8 872 7 236.4 1860 8 410.8 788.7 July.......................... 751.5 886.9 236.4 1664.2 393 4 794.1 August.................... 724.7 848 5 236 4 1484.5 397.6 774.3 September............. 708.4 852 4 236 4 1034.0 367.7 709 1 October................. 735.3 937.8 236 4 1045.1 466.1 499 5 November.............. 747.8 955.8 236.4 1017.0 480.2 499 9 December............... 669 4 852 7 236 4 1030 3 401 9 463 0 1946 January................... 603.4 759 2 236 4 984.0 363 8 434.8 February................ 547.2 656.3 236.4 940 3 369.5 460 7 March..................... 525.9 631 0 236.4 940.1 340.4 445 2 April........................ 556 2 684 1 236.4 910.3 345.5 435 9 May........................ 545.1 675.6 236 4 762.5 342.3 409 6 June......................... 538.7 666 4 236 4 737.9 343.3 404 2 July.......................... 552.7 704.3 236 4 598 9 341.3 364 6 August................. 477.9 590.0 236.4 384.7 320,9 346 3 September............. 477.9 591 .3 236.4 378.7 314.5 347.2 October.................. 487.4 587.2 236.4 382.7 405.8 342 7 November............. 484.8 607.8 236.4 406 4 346 5 305 2 December............... 461 .9 570 8 236 4 371 .9 344 7 302 1 November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 245 1947* January................... 394.1 468.2 February................. 389.5 454 9 March...................... 378.6 440.1 360.3 413.3 May........... 354.2 404.4 358.6 414.4 July........................ 364.1 426.8 August.................... 358.0 419.8 September............. 340.4 392.1 October................ 331 1 376 9 l Weekly average only > Weights 236.4 381.9 326.2 282.5 236.4 356.3 344.8 281.4 236.4 295.2 334.7 279.4 236.4 269.2 328.3 271.6 236 4 250.9 325.4 269.4 236.4 236.8 316.6 268.6 236.4 217.7 309.3 269.9 236.4 210.2 292.0 269.1 236.4 216.4 283.3 266.8 236 4 212 7 280.5 267.7 Philippine Safety Council Frank S. Tenny Director, Philippine Safety Council The Philippine Safety Council is well represented on both the President’s ^nd the Mayor’s Traffic Committees. Majority of committeemen and both chairmen are PSC members. Progress is expected. Mine safety meeting held on 29 October with Labor Secretary Magsalin and Safety Engineer Maliuanag. Other safety matters also discussed, Announcements to follow. Plans are underway for large public fire-fighting de monstration. Participants will be Manila Fire Department, PHILRYCOM Fire Department, and Universal Trading Corporation. Weekly radio program, newspaper and magazine publicity, and other routines continuing. Traffic Handbook, Driver’s Training School, and Chauffeur’s Qualification List now being planned and worked upon. Your comments, suggestions and questions are wel come. The Safety Council is now instructing Rizal City Police Department weekly. Other Chambers of Commerce Chamber of Commerce of the Philippines LAST month the United Technological Organizations of the Philippines was definitely linked with the Fili pino business community. The occasion was the third quarterly session of UTOP, when President Gil J. Puyat, of the Chamber of Commerce, was guest of honor and speaker at luncheon. The organization is a militant entity of architects, chemical engineers, civil engineers, mechanical and electrical engineers, and mining, metallur gical, and geological engineers—the Filipino technicians— and the Chamber of Commerce of the Philippines is the organization of Filipinos in business. Both aim at build ing the Philippines with the technical and business know how of its nationals. The central theme of the speech of President Puyat was industrialization, its handicaps in the past and the obstacles that lay in our path. Without mincing words in tracing pre-war Philippine economy, he stated this was the result of imposed legislation emanating from the Federal Congress, which made Philippine trade relations comple tely dependent upon American essential and luxury goods, impaired our industrial development, and caused us to place emphasis on the wrong things in economic develop ment. (It must be recalled that we opposed the’imposition of Philippine-American free-trade on the floor of Congress. A vigorous speech was delivered on the subject by the first Resident Commissioner, the late Pablo Ocampo). As a consequence, President Puyat asserted, there deve loped a national psychology, unhealthy for the advanceclear copies Erlanger & Galinger, Inc. OFFICE SERVICE DEPARTMENT Ground Floor, Calvo Bldft. 210 13th Street. Port Area 60 Escolta, Tel. 2-80-60 Tel. 2-89-21 246 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 GIETTZ BROS., & CO. SAN FRANCISCO, U. S. A. IMPORTERS AND EXPORTERS [ GLASS PAPER CARBIDE LEATHER TEXTILES LIVESTOCK HARDWARE MACHINERY EXPLOSIVES FOODSTUFFS CHUCHERIAS ELECTRONICS PHARMACEUTICALS DAIRY EQUIPMENT COPPER AND BRASS BUILDING MATERIALS PETROLEUM PRODUCTS INDUSTRIAL CHEMICALS CONFECTIONERY SUPPLIES IRON AND STEEL PRODUCTS BRANCHES: HONOLULU SHANGHAI HONGKONG SINGAPORE MADRAS CAPETOWN BATAVIA BANGKOK CALCUTTA BOMBAY JOHANNESBURG DURBAN MEXICO CITY MANILA Agencies Throughout the World “1871-1947. THIS IS OUR 76th YEAR.” Tiiadb & Commerce Bldg. Tel. 2-97-33 With the FORD, you get everything you would demand of a modern car ... perfect styling, distinguished as well as modern .... restful seats designed specially for luxurious comfort... and effortless driving, holding the road beautifully and responsive to your every wish. You will agree with mil lions of FORD owners that in style, comfort, economy, and thorough satisfaction - FORD IS OUT FRONT! Stock Available for Immediate Delivery MANILA TRADING & SUPPLY CO. PORT AREA MANILA The MANILA TRADING takes you “Out Front” — with FORD every Thursday, 7:00—7:30 P.M. Over Station KZRH. ment of the technical sciences, resulting in a national com plex against technical training both in industry and agri culture. A present obstacle to our industrialization, he asserted, is the Trade Act; so long as there is free importation of American goods, it will be hard for Philippine business with limited capital to compete,—a situation which is aggravated by the anomaly of Philippine exports being limited, while Philippine importation from the United States is unlimited. The Chamber of Commerce of the Philippines advo cates the amendment of the Trade Act, in favor of limited free trade for certain staple Philippine products in exchange for capital goods from the United States. Recalling his recent trip, Mr. Puyat explained the importance of dollarcredit in world economy, pointing to England, whose peo ple are limiting what they consume in order to sell to foreign countries and the United States to gain dollar-credit. Reiterating the stand of the Chamber that the Trade Act be amended so that Philippine imports be limited to essential goods, President Puyat declared that “Philippine business should be given full freedom and opportunity to develop itself, and could do so without government aid if only Philippine business, Philippine technology, and Philippine labor get united.” This is a re-definition of the stand of the Chamber. It is not against government pioneering in business ven tures, but in favor of the Government yielding to business— to Filipino business, since our independence—whenever the latter is ready to take over. It is not against the Govern ment starting industrial projects, but in favor of it turning them over to private capital when it is ready to step in. It is against the Government crowding private enterprises when these produce enough to meet consumption demands. This speech of President Puyat was well received by the public. The Manila Times had this to say: “ Mr. Puyat agitates for a change from the feudal economy under which we stagger onward, to a well-balanced domestic economy in which we would be free to limit imports, stimulate the kind of produc tive enterprises peculiar to the country and its people, and where busi ness would operate without government intervention. These are all realizable because practical, under a revised Trade Act between the Philippines and the United States. This statement poses a big * If’ which only Malacafian, and the combined efforts of progressive capital and labor, an articulate press—in short, public opinion—can resolve." P. J. Ocampo, Secretary Spanish Chamber of Commerce of the Philippines IT would be a serious omission as well as a discourtesy on the part of the Spanish Chamber of Commerce not to make mention in this column of the Amity Pact signed between Spain and the Philippines in^Malacanan Palace on September 27. The ceremony was simple but dignified, and both His Excellency, President Manuel Roxas, and the Honorable Teodomiro de Aguilar, Spanish Minister Plenipotentiary, underlined in their speeches the sincere affection which has united the two countries since the European discovery of these beloved Isles by Magellan in 1521, during the reign of the great Philip II. President Roxas made allusion to the blood-compact entered into by Legaspi and the Rajah of Manila in 1528, ELECTRONIC SERVICE PROBLEMS? Dozens of new electronic devices are now belnft marketed — wire recorders, electronic flash equipment, photo-electric control devices, to mention a few. We are equipped to service them all. RADIO ELECTRONIC HEADQUARTERS 821 MISERICORDIA, MANILA TEL. 2-94-21 November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 247 and said that the Pact that had just been signed is more sincere because the two countries are now on a plane of equality as independent nations. Their friendship, the President said, is based on the solid foundation of the common religion, culture, language, and family institutions which is Spain’s legacy and which will be forever treasured by the Filipinos. The Pact marks a milestone in the history of the rela tionship between the two nations, and it is with pride and pleasure that we write of it here. The Spanish Chamber of Commerce views the future relations between them with optimism, certain that the Pact will promote a continuing cultural and economic interchange, and will make possible the closer commercial relations which will contribute to the further economic development of the Philippines. Jose M. Rosales, Secretary Office of the President {Continued from page 227) chief of the Executive Office, states there is no danger of a rice-shortage as the National Rice and Com Cor poration has large supplies. Oct. 10.—President Roxas sends a telegram to Pres ident Chiang Kai Shek extending cordial felicitations on the 36th anniversary of the Republic of China. ■ The Public Service Commission issues an order fix ing bus rates at 1.5 i a kilometer per passenger. Some 50 operators in Luzon will be affected. Oct. 11—The Cabinet is reported to have approved the recommendation of the Secretary of Agriculture re garding the policy on Port Area leases. Leases of those who have not built on these areas within the specified time will be cancelled. Rents received from sub-lessees will be divided equally between the Government and the lessees. A section of the Port Area (to be designated by the Secretary of Agriculture in concurrence with the City Engineer and the Urban Planning Commission) will be set aside for the construction of postal-telegraph and tele phone offices, banks and office space for importers and ex porters, brokers, and commission agents, the section to be subdivided according to the requirements and allocated through public bidding. Oct. 12—Corregidor is formally transferred by the United States to the Philippine Republic in impressive ceremonies, Maj. Gen. G. F. Moore, war-time commander of the fortress stating: "With it go the warmest wishes of all Americans . . . that until the end of history no other flag than that of the Philippine Republic shall ever fly over the hallowed ground of Corregidor”. President Roxas, in his acceptance speech, states in part: “For almost half a century Corregidor stood sentinel at the en trance to Manila Bay, a symbol of military power. But to the Fili pinos it was more than that. To us it was the citadel of liberty and democracy, for we knew that its powerful guns would never be fired except in defense of freedom. It fulfilled its mission with a heroism unsurpassed in the annals of war. It has become in our eyes a symbol of justice, of liberty, of democracy, to which this Republic is eternally dedicated-. . . Corregidor is an indestructible monument.. . It will serve to remind this and future generations of my fellow countrymen that these are the ideals for which so many gallant soldiers gave their lives. May God give us strength and perseverance in the fulfilment of these principles for the enduring benefit of all mankind.” WHEN YOU WANT QUALITY ELECTRICAL WORK CALL E. J. MORA ELECTRIC GO., INC. Address: 171-2 M. de Comillas Tel. 6-65-85 INHELDER Dealers in: ★ PHARMACEUTICAL SUPPLIES ★ INSTRUMENTS ★ GROCERIES ★ TEXTILES 5TH FLOOR TRADE & COMMERCE BLDG. TEL. 2-65-48 ha Ilicrafters “THE RADIO MAN’S RADIO” CHOICE OF 33 GOVERNMENTS — 89 COUNTRIES THE U. S. ARMY AND NAVY—BROADCAST ING STATIONS AND LEADING AIRLINES AND NOW —THE PRESS when the “UNITED PRESS” PURCHASED FOUR HALLICRAFTERS MODEL SX-42 THEY WANTED WORLD NEWS COVERAGE WHICH THEY WILL GET—BECAUSE hallicrafters model sx-42 has THE GREATEST CONTINUOUS FREQUENCY COVERAGE OF ANY COMMUNICATIONS RADIO. DISTRIBUTED BY F. H. STEVENS & CO. EL HOGAR FILIPINO BUILDING, MANILA, PHILIPPINES 248 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 ADVERTISE IN MERALCO BUSES 122 BUSES SERVING A POPULATION OF OVER ONE MILLION 90,000 PASSENGERS CARRIED DAILY FOR RATES AND PARTICULARS CALL ADVERTISING MANAGER MANILA ELECTRIC CO. 134 San Marcelino Tel. 8-75-31 Glenmore Distilleries Co., Incorporated, Louisrille, Kentucky Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79-61 Earlier in the day, in ceremonies held at Pier 9, the Dredge Barth was transferred from the United States to the Philippine Government, through the Army Corps of Engineers, the funds for the purchase having been sup plied by the American Government under the Philippine Rehabilitation Act. This is the first dredge acquired by the Philippine Government since the war, and it is under stood that another dredge will shortly arrive from the United States to be acquired in the same way. In addition, the Government has purchased from United States Army surplus equipment in Guam five suction-dredges, one of which has already arrived at Iloilo and is undergoing re pairs there. The other four hopper-dredges are expected to arrive and to be in active operation by the end of the year. In expressing his appreciation of this further proof of American goodwill and willingness to assist in the coun try’s rehabilitation, the President stated that it is believed that with these seven dredges the Government will have sufficient equipment to improve the ports and harbors of the country, neglected since the war. The Barth valued at P6,000,000, was commissioned by the U. S. Army Corps of Engineers on March 2, 1945. It has a displace ment of 2000 feet at 11 feet draft. It is a sea going hoo per-dredge, with a rated hopper-capacity of 720 cubic yards which can be filled in 20 minutes by a centrifugal pump with two 15-inch suction pipes. It is expected to be assigned first to dredging and clearing the entrance to the Pasig River, and after that may be sent to Iloilo, Pulupandan, and Cebu, though its permanent station will be Manila. Oct. 13—At his first press conference in many months, President Roxas touched on a number of matters of in terest to the business world. He defended the proposed sale by the National Rice and Com Corporation of more rice to the Dutch East Indies, stating that 16,300 tons of rice bought from the United States have already been sold to the East Indies by NARIC in an advantageous transaction. In taking precautions to guard against short age, the Philippine Government made purchases in ac cordance with rice allocations approved by the Interna tional Emergency Food Council long before it was pos sible to obtain any accurate estimates of what the Phil ippine production would be. The total thus acquired was less than 3% of the total estimated consumption re quirement. During September and October of last year, NARIC was selling some 500,000 bags a month, while during September of this year, sales amounted to only some 10,000 bags, the cause of this reduced sale being the large stocks of rice coming in from the provinces. Present stocks of NARIC total over 2,000,000 bags, which it would be unreasonable and unwise to hold, the more so as rice begins to spoil after six months. The President stated that it is not possible to reduce prices now because of the enormous losses this would impose on the Government, MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 249 but that this may be done later when it has been possible to export the rice already purchased at relatively high prices. In reducing prices, however, he said that the Gov ernment must take the interests of rice-producers into consideration. "In order to definitely solve the rice pro blem in the Philippines, we must not reduce prices so ra pidly that it will discourage farmers who are now making every effort to increase their production.” On the loss of the National Trading Corporation through spoiled canned-milk, the President stated that this would probably not exceed Pl 17,000, and that des pite this loss, the Corporation made a net profit of P426,000. Yet, he said— "The Government is engaged in business activities with no aim of making profits. The National Trading Corporation and other similar government organizations have been organized to render ser vice particularly to Filipino merchants. It is the mission of the Na tional Trading Corporation to import commodities from abroad for resale to small Filipino merchants at practically cost price in order to enable Filipino retailers and small merchants to compete with others dealing in the same commodities now in the field. When the need for this service in this line will no longer exist, the activities of the Na tional Trading Corporation, and other corporations will be curtailed.’’ The President also announced at this press conference that the Government had concluded an agreement with Westinghouse International for the establishment of an electrical manufacturing plant, to involve an investment of some P4,000,000. The machinery and equipment needed, estimated to cost Pl,000,000, will be supplied by Westinghouse on a rental and royalty basis; P 1,500,000 will be supplied by local capital; P500.000 will be subscribed by the National Development Company; and Pl,000,000 will be supplied through a bond issue. The plant will be owned and operated by a corporation now being formed, the Philippine Electrical Manufacturing Corporation, and will first engage in the manufacture of fluorescent lamps, this to be followed by the manufacture of incandescent bulbs, not only for local consumption but also for export. The Company will have the privilege of utilizing Westinghouse patents on a royalty basis. 80% of the production will bear the trademark of the local corporation and 20% that of Westinghouse, the latter to be sold entirely abroad. For the future it is contem plated also to manufacture generators and various other types of equipment. In connection with the program, Westinghouse has agreed to train a score or so of Filipino engineers in its plants in the United States. As to the machine-tools to be brought in as repara tions from Japan, the President stated that due publicity will be given to a comprehensive inventory when this has been completed. After various government entities have determined their requirements, "which I expect will not be very large”, the remainder will be offered at reasonable prices and on an installment-payment basis to those who can show their need of them. ★ LUZON STEVEDORING COMPANY, INC. MANILA ♦ MANILA’S BIGGEST DEPARTMENT STORE PRE-WAR, IS STILL MANILA’S BIGGEST DEPARTMENT STORE POST-WAR AGENCIES CHARTERS SALES TELEPHONE 2-80-39 American Steamship Agencies, Inc. MANILA, SHANGHAI, SINGAPORE, GUAM WHERE DISCRIMINATING PEOPLE SHOP HEACOCK’S The Store of Quality 454 & 600 DASMARINAS • TEL. 2-70-81 CABLE ADDRESS: “AMERSHIP” 314 MYERS BLDG. PORT AREA MANILA SHOPPING HOURS: 8:00 A.M. TO 530 P.M. 250 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 HEADQUARTERS FOR -------- PRODUCTS---------Also Distributor for: LESTER PIANOS MALLORY PRODUCTS PROCTOR APPLIANCES BELTONE HEARING AID RADIOS • RADIO-PHONOGRAPHS • VICTOR RECORDS RADIO PARTS • LESTER PIANOS • REFRIGERATORS COMMERCIAL REFRIGERATORS • WASHING MACHINES PUBLIC ADDRESS SYSTEM • 16 MM. PROJECTORS PHILIPPINE ELECTRONIC INDUSTRIES, INC. REGINA BLDG., MANILA SILVER and JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO.. INC. General Agent. 17 Battery Place Nev York JAVA PACIFIC LINE N. V. S.M. -Nederland” N. V. Rotterdamecbe Lloyd Amsterdam —Rotterdam JAVA PACIFIC LINE. INC. General Agents 25 Broadway Nev York PHILIPPINES To and From VANCOUVER SEATTLE PORTLAND LOS ANGELES AND SAN FRANCISCO PHILIPPINES To and From BOMBAY AND CALCUTTA Secretary of Justice Ozaeta declares that "something abnormal, if not anomalous is happening in the Supreme Court” if the report which appeared in a local newspaper is true that "a highly placed official” of the Court told the editor that sometime last February the Court voted 8 to 3 on the still unwritten decision that aliens may not acquire lands or any improvements thereon in the Phil ippines. The editor claimed also that this official had told him that his editorials attacking the constitutional ity of Secretary Ozaeta’s contrary opinion "had helped in a big way” to bring the justices to a decision in the matter. "The newspaper editor’s alleged informant, judging from the nature of the supposed revelation, could be no other than a member of the Court itself. It is hard for me to believe that a member of the Court, unless he lost his sense of proportion and propriety, would make such undue and uncalled-for revelations to the press in total disregard of a long-standing and heretofore inviolate and sacred unwritten law governing the deliberations of the Supreme Court. Under that law the vote on a pending case must never be revealed by any member of the Court to anybody, and much less to the press, before the deci sion is signed and actually promulgated and published. One of the reasons for that law and practice is that the vote does not become final, and the Court or the members thereof are free to change it at any time before the decision is actually promulgated .. .. Further more, for a member of the Court or any responsible person to say to any newspaper editor that the latter’s editorials had influenced the decision of the Court, is to put the Court in a bad light, to say the least.” (Note.—A few days later, Justice Gregorio Perfecto publicly admitted that he was the informant, stating that he did so to "dissi pate speculation and misunderstanding”. He stated that he disclosed the vote “because I believe that in an ideal democracy, the one our people is striving to attain, no public act of any official should be screen ed from the people’s gaze. Besides, I could not close my eyes to the fact that, while our decision is pending promulgation, more and more lands are being transferred to aliens and registered in their names, and it is hard to remain silent in view of the grave consequences the situation may lead to in regard to the national interests of present and future generations of our people.” He expressed his apologies for causing his colleagues “any embarrassment which I never intended to cause”. Secretary Ozaeta said that Justice Perfecto’s statement "left the next move up to the Supreme Court”. On the 16th, Justice Pedro M. Tuason, in explaining his dissent from a Court resolution calling upon the editor to explain why he should not be held in contempt, stated that “it is unfair and unjust to call a man to the bar of justice for committing an act which was encouraged, aided, and abetted by a member of the Court • . . that the Justice concerned has already made an apology and that he is beyond the power of the Court to punish or discipline, does not alter the moral aspect of the case.) Oct. 14—President Roxas issues an executive order proclaiming the assumption of jurisdiction and adminis tration over the Turtle and Mangsee Islands and constitut ing the former group as a special municipal district of the Province of Sulu and the latter as forming a part of the Municipal District of Balabac, Province of Palawan. SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FROM U. S. ATLANTIC COAST PORTS T O MANILA FROM PHILIPPINES T O HALIFAX and U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 TELEGRAPH TO ALL THE WORLD AND SHIPS AT SEA OFFICES: PLAZA MORAGA Myers Bldg.. Port Area 2-79-00 Ext. Consolidated Invest. Bldg. Plaza Goiti 1749 Azcarraga 2-79-08 ., 918 San Nicolas 2-79-09 ,, November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 251 New Business Books INDUSTRIALIZATION OF LATIN AMERICA, edited by Lloyd J. Hughlett, first edition, published by McGraw-Hill Book Co., Inc., 1946; distributed by the Philippine Education Co. Inc., P12.50. FOR many years businessmen and industrialists in the Phil ippines looked to the United States for information, guidance, and help in their problems. Businessmen here have tried to pattern their methods after those of the United States. Sometimes this practice brought good results, sometimes di sastrous ones; but always business men in the Philippines had to modify American methods drastically be fore applying them. By now it is obvious to most people that the methods of the highly industrialized United States cannot be transplanted in toto and indiscriminately to the agricultural Philippines. Businessmen here realize now that in many ways they have more in common with their counterparts in the countries of Latin America than in the United States. Cultural, eco nomic, social, and even political conditions are similar to a surprising extent, and the problems that are found here are often also found in Latin America. It behooves us to study the experiences of American businessmen in Latin America, per haps to profit by them. Bearing all this in mind, you will want to make a careful examination of a recent book published by McGraw-Hill: "Industrialization of Latin America.” This is a timely symposium on Latin America con ducted by thirty business leaders from the United States and from Latin America. To businessmen, ex porters, and leaders in all fields of industry and technology, this book provides a comprehensive, over-all picture of the present-day, Latin American industrial system from a practical point of view. It interprets and evaluates trade potentialities, analyzes economic trends affecting manufacturing activities, and at tempts to anticipate the direction of future developments in diverse industries. With each specialist writing on his field, the following subjects are taken up in separate chapters: ce ment, chemicals, communications, fishing, food, leather, metal-working, mining, paint and varnish, petroleum, pharmaceuticals, power, publishing, pulp, paper and lumber, sugar, tex tiles, and transportation. The chapter "Mining Industries and their Indus trialization” is particularly compre hensive, with nine men contributing their viewpoints. The concluding chapter of the book is written by Spruille Braden, Assistant Secretary of State of the United States. OTHER BOOKS ON THE SUBJECT: CUBAN COUNTERPOINT: TOBACCO AND SUGAR, by Fernando Ortiz, Knopf, 1947, P9.20. How tobacco and sugar have influenced life in Cuba. LATIN AMERICA: COUNTRYSIDES AND UNITED REGIONS, by R. S. Platt, McGraw-Hill, 1942, P9.60. An economic geography of South America. OPPORTUNITIES IN LATIN AMERICA, by Ralph Hancock, Essential Books, 1946, P6.90. Discusses opportunities for trade, industry, and investments. PAN AMERICAN ECONOMICS, by Olsen and Hickman, Wiley, 1943, P9.40. PAN AMERICAN YEARBOOK, 1945, by Pan American Associates, Pl 1.00. Com bined encyclopedia, almanac, and direc tory of trade and industry. THE PEOPLE AND POLITICS OF LA TIN AMERICA,, by Williams, Ginn, 1945, P12.50. A well-rounded history. DAVID MlNSBERG Bottled in the U. S. A. Fine An.CTic.rn Whiskey • Preferred throughout the American SOLE IMPORTERS SORIANO TRADING COMPANY AA M. R. S. BLDG.-TF.L. 2-79-61- MANILA S. N. PICORNELL & CO. STOCK AND SHARE BROKERS MEMBERS—MANILA STOCK EXCHANGE ¥ 301 AYALA BLDG. cable address: TEL. 2-66-79 “BROKERAGE” 252 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 LYKES ORIENT LINE REGULAR LINER SERVICE FROM U. S. GULF PORTS DIRECT TO MANILALOADING FROM PHILIPPINES TO U. S. GULF AND ATLANTIC COAST PORTS LYKES BROS. STEAMSHIP CO., INC. 312 MYERS BLDG. PHONES Tops in COMMERCIAL PHOTOGRAPHY (SEE US FOR ANYTHING PHOTOGRAPHIC) The - —---------- --------“LET YOUR HAIR DOWN” - ---- - - ------- Column ONE of the best compliments to the Journal and its fine com pany of regular contributors came from the head office of the National City Bank of New York during the past month. The Manila branch of the Bank wrote us: “ With reference to our letter of September 4 and yours of September 6, 1947, regarding our New York Office subscription to your Journal, will you kindly arrange to have your next issues delivered to us for the at tention of the undersigned? "Our Head Office has requested us to for ward them by air mail. “Yours very truly, “E. J. Carvajal Pro-Manager" Apparently, the New York office of the Bank wants to receive each issue of the Journal as soon after it is out as possible. The cost of mailing a 40-page issue of the Journal to New York is P4. Of course, the Bank can afford this easily enough; still the managers there must think it really worth while to incur this extra expense. We also received a letter from the editor of Bus Transportation, "The Magazine of the Bus Industry”, founded in 1922 and published in New York. He wrote that the Mc Graw-Hill World News Bureau had sent him L. D. Lockwood’s article on bus transportation, published in the July issue of the Journal, and that he would like to reproduce this as a "feature” in his publication. He asked our permission for this and also for some photographs to illustrate the article. We turned the letter over to Mr. L. G. James, Judge Lockwood still being away. This reminded us of the Biblical bread, cast on the waters and re turning after many days. pne of the regular contributors to "The Business View” pages, in sending in his "copy” for this issue, wrote: “ I am finding the Journal very interesting and look forward to it monthly.” This, from a business man who, himself, by contributing, like some thirty others, a monthly "column”, helps to make the Journal as in teresting as it is! Many of these regular contributors, we have no ticed, seem hardly able to get over a feeling of surprise at their own creation whenever an issue of the Journal comes fresh off the press, though this happens every month now. They are like the architects and engineers, masons and metal-workers, electricians, plumbers, and painters, who, working together, construct a fine building, and who can hardly believe that it was actually them selves who brought the noble and stately edifice into being. Truly, in this lies one of the deepest joys of human cooperation. To create, to construct, to organize, to estab lish, to improve, to embellish,— these are the functions of man. They are rooted in instincts which, happily for the race, are far stronger than the instincts which tend to destructive action. That is why conflicts of all kinds between men, between classes, between nations, must ultimately cease. Secretary of State George C. Mar shall, in speaking before the Congress of Industrial Oganization in Boston on October 16, made one statement in particular which can not be given too wide a circulation. It was this: “Everyone agrees, I think, that labor plays a vital part in the functioning of the Official Photographer of AMERICAN CHAMBER OF COMMERCE JOURNAL Compliments of PETER PAUL PHIL. CORP. FACTORY OFFICE: CANDELARIA, QUEZON MANILA OFFICE: 338 REGINA BLDG. November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 253 modern state. If labor can be confused or embittered, if labor can be made to lose faith in the community of which it forms a part, then the core of any national society is threa tened. • • The enemies of democracy know this, and it explains the efforts they make to undermine the confidence of the labor element in the stability of our institutions and the soundness of our traditions. . . The hope and possibility of future gains for la bor. . . are absolutely dependent upon the preservation of civil liberties. . . The present issue is simply. . . -whether or not men are to be left free to organize their social, political, and economic existence in accordance with their desires, or whether they are to have their lives arranged and dictated for them by small groups of men who have arrogated to themselves this arbitrary power.” This “Hair-Down” column is about the only part of the Journal which is not functioning just as we hoped it would, fairly readable though it may be. As we stated, when we began it, in the July issue, the co lumn was to be open to very frank expressions of opinion on anything which had to do with business, in cluding, for good measure, the busi ness of living. Anyone bothered by anything was invited to come in and “let his hair down”. The editor says that, contrary to his experience with the Philippine Magazine before the war, when, in a somewhat si milar column, he could always pick from a large correspondence,—ideas on everything, arguments, objec tions, lamentations, kicks, he has so far received very little of that kind for this invitingly open space. One explanation is that the Jour nal is naturally more limited in scope than a literary-political month ly. It may be, too, that business men as a class are less articulate than most other people, or that they are more reserved, more restrained, more patient,—perhaps more cau tious. Of course, we already have a good number of Manila business men writing regularly in their co lumns in “The Business View” pages. They unburden themselves there to some extent. But there should be others who have something on their minds or who want to get something off their chests, at least occasionally. We are not asking for “fan” let ters, although an expression of ap proval and support now and then is very heartening. Nor do we think of ourselves as like some unhappy song-leader,’ on a stage, who is trying to get a reluctant audience to join in the singing. What we want is to get the readers of the Journal to exercise here their right of free speech. We want blows struck for the truth or what seems to the writers to be the truth. And from this column should arise not only bold declarations, but shouts of anger, sarcastic laughter, cries of pain, appeals for help. We want THAT WEARS LONGER THAN PREWAR TIRES! 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We want it to be one of the first things the readers will turn to. Here, too, things do not need to be too closely reasoned, or always too seriously meant. Here is a place where our readers may assert themselves, have a good rowdy time, and relax, if they can. For example, at the risk of wreck ing the Philippine cigar industry, and dangerously challenging Count de Churruca (who edits the "To bacco” column), the editor would, here and now, lodge bitter protest against the agitation and the official action which is depriving him of what has recently been his favorite smoke,—the excellent, Americanmade, Army-surplus, Webster ci gars, and which threaten to make further purchase of any other of these surplus cigars impossible. What the editor demands to know is why these surplus cigars, some of them of the best American brands, should go to the Chinese in China, who probably won’t appreciate them, and be denied to us here. The cigars are here, where there is a demand for them. Why should they be ship ped away? They were paid for and brought here by the American Army, with American tax-payers’ money, and we are denied even these leavings. Is it true that there are so many of them and that they would con tinue to be offered in the market for so long a time, that the sale here would really do any serious or lasting injury to our tobacco and cigar industry? The editor smoked Philippine cigars for thirty years at the rate of at least a box a week, so he has done not a little for home industry as it is. He is now on the prowl for Websters, and any one who has any for sale doesn’t have to send them all the way to China to find a buyer. In closing, and in spite of the fact that the Manila Daily Bulletin on several occasions recently quoted from the Journal at length without giving us the usual credit (though this may have been done through over-sight), we wish to extend our heartiest congratulations to the pub lishers and staff members of that excellent newspaper for again hav ing established themselves in a place of their own. The Roces papers deserve credit, too, for their hospi tality and assistance to the Bulletin until it could instal its own plant. That is the kind of cooperation even between "competitors” which makes one feel especially good about our so-called "competitive system”. Robbed of P1,200,000! ... in jewelry! And possibly the victim has been reduced to poverty “in 15 minutes!” There you*are I... Real Estate is the SAFEST place for your Money ... the SAFEST INVEST MENT! INVESTORS . . . HOME-SEEKERS act at once—TODAY' P6.00 ... We still have and up h°mesites for sale in per sq.m. University> Espafia, Quezon City, Camp Murphy, and New Manila. Lots: 300 to 5000 sq. m. Only 20% down—the rest payable in monthly installments. MAGDALENA ESTATE, INC. 211 Consolidated Investment Bldg. Plaza Goiti, Manila C. F. SHARP & Company, Inc. STEAMSHIP AGENTS OPERATORS SHIP BROKERS GENERAL ORIENTAL AGENTS: THE WATERMAN STEAMSHIP CORPO RATION MOBILE. ALABAMA, U.S.A. THE IVARAN LINES—HOLTER-SOREN SEN OSLO, NORWAY PACIFIC ORIENT EXPRESS LINE SAN FRANCISCO QENERAL STEAMSHIP CORPORATION SAN FRANCI8CO SIMPSON, SPENCE & YOUNO LONDON—NEW YORK GENERAL AGENTS: THE REARDON—SMITH LINES CARDIFF. WALES THE SHEPARD STEAMSHIP CO; BOSTON, MASS., U. 3. A. BRANCH OFFICES: UNION BLDO. P. O. BOX 60S SINGAPORE S. s. 33 CHINA ST. GHAUT PENANG 8. S. ROOM 209 DOLLAR BLDG. 51 CANTON RD. SHANGHAI, CHINA CENTRAL TOWER 703 MARKET ST. SAN FRANCISCO CALIFORNIA, U.S.A. HEAD OFFICES: Sth FLOOR. INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 CABLE ADDRESS: "SUGARCRAFT” November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 255 When Traveling Carry NATIONAL CITY • LETTERS OF CREDIT • and TRAVELERS CHECKS GOOD EVERYWHERE • SAFE • SELF-IDENTIFYING The NATIONAL CITY BANK OF NEW YORK MANILA CEBU BOTICA BOIE Philippine-American Drug Co. Founded 1830 * Drugs Chemicals Pharmaceuticals Botanicals Biologicals Mining and Laboratory Supplies Hospital Equipment Surgical and Dental Supplies AN INSTRUMENT WORTHY OF THE WORLD’S FINEST MUSIC ON DISPLAY AT: ELECTRIC INC. GENERAL ( (P. I.) PORT AREA MANILA PRINTED IN THE PHILIPPINES MCCULLOUGH PRINTING COMPANY