The American Chamber of Commerce Journal Vol. XXIV, No.4 (April 1948)

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Title: The American Chamber of Commerce Journal Vol. XXIV, No.4 (April 1948)
Issue Date: Vol. XXIV, No.4 (April 1948)
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fifth Floor, Insular Life Building—Telephone No. 2-95-70 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 l^epffoers of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; E. G. Baumgardner, Vice-President; C. R. Leaber, Treasurer; Frank H. Ale, Arthur H. Barrett, Max Blouse, D. O. Gunn, L. C. Hayden, and F. L. Worcester. . I. T. Salmo, Secretary. Vol. XXIV April, 1948 No. 4 Editorials— Contents The World Recovery Act....................................................................................................... The American Threat of Force............................................................................................. How to End Black-Marketing............................................................................................. Ambassador O'Neal.................................................. ......................................................... Leon Rosenthal.................................................. ........................................................................ The FAO Baguio Conferences......................... ....,............................................................ The Central Bank Bill — A Summary........................................................................................ PRATRA Replies................................................................... ........................................................ Foreign Trade of the Philippines: By Countries............. ?.............................................. Principal Imports: 1947 and 1946................................ ........................................... Principal Exports: 1947 and 1946................................................................................... The Business View— C. R. Leaber.......................................... Ild. Coscolluela ..................... ................. Bureau of the Census and Statistics.... 111 111 112 112 113 113 114 116 118 119 119 Office of the President............................................................................................................ Banking and Finance............................................ .................................................. ........... American Stock and Commodity Markets................................................ ................... Manila Stock Market.............................................................................................................. Credit.................................:...................... ............................................................................... Electric Power Production.......................................................................... ........................ Real Estate............................................................................................................................... Construction................................................................................ t.............. ............ Building Construction in Manila: 1936 to 1947 ...................................................... Ocean Shipping.......................... ,......... Inter-Island Shipping........... .. ............................... ................A.............,.. Air Transportation................. '....................................................... The Sydney IATA Conference................... . ................................................................ Land Transportation (Bus Lines)................... .................................................................. Base Metals............................................................................................................... . ......... Lumber....................................................................................................................................... Copra and Coconut Oil........................................................................................................... Desiccated Coconut........................ ’..................................................... Manila Hemp.................................. .................................................................................... Sugar................................................................. . . .’............................................................’. . . Textiles............................................................. ,......................................................... Legislation, Executive Orders, and Court Decisions.......................................................... Other Chambers of Commerce— The Manila Chamber of Commerce.............................................................................. Philippine Chinese General Chamber of Commerce....................................... Philippine Government Corporations................................................................................... The “Let Your Hair Down” Column........ ......................................................... Official Source.............................................. C. R. Leaber.............................................. R. Ewing...................................................... A. C. Hall...................... :......... W. J. Nichols............»..................... J. F. Cotton.................................... ........ C. M. Hoskins................................ ........ H. H. Keys........................... Bureau of the Census and Statistics . ... F. M. Gispert.............................. • G. Ft Vander Hoogt.........................,... V. A. Brussolo..........................................? L. G. James.?.............................................. C. A. Mitke................................................ E. C. Von Kauffmann............................. M. Igual and K. B. Day......................... H. R. Hick.................................................. H. Robertson,............................................ S. Jamieson.................................................. J. TrXynor.................................................. R. Janda...................................................... T. J. Garrington....................................... Yang Sepeng....................... ............ Official Source.............................................. 121 122 123 124 125 426 "126 -■126 .. 127 128 128 129 130 132 132 133 134 136 136 138 139 140 140 141 143 145 50 Centavos the copy The "black market” is never heard of in normal times under a system of free enterprise. The expression is not even found in the dictionary. How to End Goods are produced as needed, Black Marketing and, under competitive conditions, sell at a fair price, — the price of any thing being based on supply and demand. These factors are mutually self-determining; a change in one tends to produce a change in the other. In abnormal times, times of inadequate production, distribution, or supply, black-marketing, — illegal buying and selling, often sets in and becomes a baneful complicating factor in the already disturbed economy. For, as prices rise, the government, to "keep prices down” in the interest of the public, may attempt to fix them, and this immediately results in the lowering of the offered supply, which, in turn, increases the demand and leads inevitably to a disregard of the fixed prices'by both sellers who have the goods and buyers who have the money. Price-fixing, therefore, unless the prices established are close to the levels which would be "natural” to the time and place, actually creates the so-called black market. And while a government is generally able to supervise and control the ordinary distribution system, it meets with the greatest difficulties in dealing with the clandestine sel ling and buying which is characteristic of black-marketing, thus greatly worsening the situation for the general con sumer. And in spite of individual profiteering or the reaping of excessive profits by a few illegal dealers, black-marketing worsens conditions also for sellers as a class. The popula tion suffers; business loses; the government also loses,— often seriously, not only in revenue but in prestige. We in the Philippines should understand this clearly for we have seen this whole process at work during the enemy occupation and to some extent after the liberation as well. Since the war, we have never as yet been entirely clear either of the black market or of government attempts at price-fixing. Vice versa, one evil generally calls for the other, although both derive from scarcity of supply. XXThere a scarcity of supply actually exists, what should, then, be done? How in such a case is conscienceless profiteering best dealt with? The most direct and fully efficacious measure to take is to augment the supply and bring it up to the demand. If this is not possible, or the supply can be increased only to a still inadequate extent, then the wise and generally the only fair recourse is to resort to equitable consumer rationing. But that, for many prime commodities is rather impracticable in the Philippines for several reasons, and especially because the consumption habits of our popula tion vary so greatly. We turn then, as so many governments have done, to price-fixing, — but that is not, on our part, to give the whole argument away, for we maintain that it must be recognized that this is very complicated and difficult and should be resorted to only as an emergency and tem porary measure, and with the further understanding that other factors in the situation should not be disturbed any more than is absolutely necessary. Ceiling-prices should be set only for those prime com modities in the case of which scarcities actually exist and which can not be remedied by increased production or importation. The price-ceilings fixed should be "realistic”, i.e. ge nerally materially above the actual free market’ prices so as to stimulate production and distribution. The price ceilings mustallow,too,for the customary profit or slightly more, — not the profit which some official may think is theoretically desirable. This is, also, of course, to stimulate production and distribution, for if this is not done, the situa tion will be worsened rather than bettered. Price-lists should be posted everywhere and people should be "educated” to observe them. The success of the whole measure is largely dependent on such education and the development of an "economic conscience” in the com munity. Both buying as well as selling above the legal prices should be made criminal offenses, as it takes not only sellers but also buyers to make a black market. The mea sure should further be enforced by cancelling the licenses and closing the business establishments of the illegal sellers. One other effective means of price-control of relatively imperishable goods is for the government or a government entity to purchase reserve stocks of a commodity to throw onto the market through established channels when a black market is in evidence. This is a measure which has been successfully employed here by the National Rice and Corn Corporation on a number of occasions. A most vital point is that if some government control must be exercised,it is obvious that this is most conveniently and efficiently exercised over the known agencies of the existing system of distribution, which is always the pro duct of long years of growth and adjustment to the peculiar needs of a country. We may say here with respect to PRATRA and its policies, that it is most unnecessary and uneconomical, unjust and unwise, and at the same time even absurd for this organization to seek to close long established channels of distribution and replace them with an improvised system of its own in its attempt to enforce what it admits is merely a temporary measure. Furthermore, PRATRA, in being authorized by a Presidential Executive Order— “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”, — is certainly not authorized thereby to set up whole series of monopolies of its own, thus promoting the very evil it was established to combat, in fact a greater evil, for of all monopolies, government monopolies are in the end the most difficult to control. They become "vested interests” with seats in the very citadels of power. Free enterprise will have been sacrificed, with no assurance against high prices, —in fact, with uneconomically high prices practically certain to continue forever. Ambassador Emmet O’Neal is returning to the United States this month, reportedly at the request of President Truman to inform him in person of PhilAmbassador ippine conditions, and, possibly, to consult O’Neal with members of Congress in connection with pending legislation affecting the Philippines. Though the Ambassador’s family will either accom pany him or follow him later, it is not to be assumed that he will not return to Manila, although this is possible. He has not resigned. The period of Mr. O’Neal’s ambassadorship has so far not been exceptionally eventful, and the Ambassador has devoted himself chiefly to maintaining and fostering goodwill between our two peoples. He has contributed largely to this end, possibly as much by what he has avoided doing and saying as by his more positive acts and statements. At times, however, he has quietly em phasized the fact that he is the American Ambassador. 112 He has interested himself in numerous Philippine matters, among which are those which affect Filipinos as well as those which affect Americans, such as equal treat ment for Filipino veterans, war-damage payments,"double taxation”, and a number of other important questions, and he has said that he will continue to do what he can in these matters when he is in Washington. In person, deportment, and action, Mr. O’Neal has proved himself exceptionally well fitted for the position he occupies, and, — as he now leaves us for a time, both Americans and Filipinos owe him a word of appreciation and thanks. He was born in Chicago and first came to the Philip pines in 1899 as a top-sergeant in the U.S. Army. He was subsequently engaged in various business activities and was operating his own stock-brokerage firm at the outbreak of the war. The war years he spent interned in Santo Tomas and at Los Banos. His knowledge of the country, his broad business ex perience, and his dignified but amiable personality espe cially fitted him for the important position he held with this Chamber. He was an able business man and a very fine man, and as both he will be deeply missed. It is with grief that we have to record here the loss of our Executive Vice-President, Leon Rosenthal, who pas sed away shortly after the close of the Leon Rosenthal business day, Friday, March 19, in the office of his physician to whom he had gone for relief for an asthmatic attack. He had spent the day at his desk and had given no signs that he felt especially unwell. Though he was seventy-five years of age, he was youthful and vigorous in mind and spirit. We wish to call the attention of our readers, and par ticularly of the authorities, to the clearly-put, constructive criticism contained in Mr. G. F. vander Hoogt’s column on "Inter-Island Shipping” in this issue of the Journal. As pointed out by him, — and other writers in past issues of the Journal, certain things, simple enough in themselves, should be done in the Port Area and done as soon as pos sible. The so-called FAO conference held in Baguio from February 23 to March 16, was actually a series of four con ferences, all under the Food and AgriThe FAO culture Organization of the United NaBaguio tions, but separate and distinct, not all Conferences attended by the same delegates, and each with its own chairman. However, Mr. Harold A. Vogel, of FAO, was the Secretary-General of them all. The Fisheries and the Nutrition conferences were held separately the first week, the International Rice Meet ing was held during the next two weeks, and the FAO regional meeting was heldat the end, on the 15th and 16th of March. /T'he Fisheries conference (February 23 to 28), with x Dr. D. V. Villadolid of the Philippines as Chairman, was attended by representatives of Burma, China, France, India, Italy Netherlands, Philippines, United Kingdom, United States, SCAP, and UNESCO. The conference formulated an important agreement which, on acceptance by five governments, will bring the "Indo-Pacific Fisheries Council” into official existence. The conference drafted a proposed charter for the Council and also established ad interim technical committees, — such are later to be conti nuing committees, on hydrology, biology, taxonomy, and technology. These committees each submitted tentative programs of proposed activities for a period of five years. The fisheries group also held joint discussions with the nutrition group. 'T'he Nutrition Committee meeting (February 23 to 28), A presided over by Dr. V. N. Patwardhan of India, was called in accordance with the recommendations of the Third Annual FAO Conference, and was the first regional nutrition conference convened. It was attended by repre sentatives of Burma, China, France, India, Netherlands, Philippines, Portugal, United Kingdom, United States, the League of Red Cross Societies, SCAP, USAMGIK (United States Allied Military Government in Korea), UNESCO, and the World Health Organization. A num ber of valuable committee documents were released, in cluding "Rice and Rice-diets—a Nutritional Survey”, "Extract from the Report of the Inter-governmental Conference of Far Eastern Countries on Rural Hygiene, Bandoeng, 1937”, "Summary of the Report of the Con ference on Nutrition, Singapore, 1946”, "Child Feeding with Special Reference to Eastern Countries”, and "Rice and Nutrition in China”. The report of the Committee itself, N48/Co. 1/11, on "Nutrition Problems of RiceEating Countries in Asia”, runs to 22 pages and covers improvement of rice and rice-diets, feeding of vulnerable groups (including school feeding), nutrition education, composition of tropical foods, national nutrition organ izations, and regional activities. 'T'he first plenary session of the International Rice Meeting in Baguio was held in March 1, under the chair manship of Ambassador J. M. Elizalde. The Rice Meeting drew the largest representation, being attended by delegates from all the countries and organizations already mentioned who attended one or the other or both the preceding con ferences, plus representatives from Australia, Ecuador, Egypt, Liberia, Mexico, Pakistan, Paraguay, Siam, Vene zuela, ECAFE, and the United Nations. The delegates had the advantage of having at hand the report of the Nutrition Committee on "Nutrition Problems of RiceEating Countries in East Asia”, and organized themselves into four committees each of which subsequently submitted its own report. The report of Committee I takes up "measures to increase the area, yield, and efficiency of rice production”, and covers the restoration of abandoned rice lands, devel opment of new lands, improvement of irrigation and drain age works, breeding and pure seed production, insect con trol, chemical fertilizers, chemical control of weeds, and improvement of work animals and of agricultural tools and equipment. Committee II studied and reported on a pro posed world-wide rice conservation campaign, standard ization of rice terminology, development of standard weights and measures, grades, and standards, storage facilities, public markets, transportation, extension of cooperative societies, statistics and market information, rationing, etc. etc. Committee III, charged with the examination of proposals made at Trivandrum, India, concerning the es tablishment of an International Rice Council, drafted a proposed charter for this, organization. Committee IV was established to consider a three-year program for ex panding the world rice-economy and its report covers the plans and projects of the various countries represented for increasing the area, production, trade, and consumption of rice during the next few years. 'T'he regional FAO meeting, held on March 15 and 16 under the chairmanship of Mr. Vogel, was attended-by delegates of only Burma, China, France, India, Nether lands, Pakistan, Philippines, Siam, and the United Kingdom, 113 the United States being represented only by an observer. This meeting was called mainly for the purpose of drawing up recommendations for the Indo-Southwest Pacific area to be laid before the Food and Agriculture Organization which will convene in Washington on April 5. Similar preliminary regional conferences were held in Rome for Europe and in Cairo for the Near East. The principal functions of the regional organizations which it is planned to set up, — consisting of regional advisory councils, technical committees, and secretariats, will be to facilitate the establishment and development of approved FAO programs to increase food supplies and raise nutrition levels. While, in this region, rice is the food of greatest importance, the activities of the organization will cover all food and agricultural products, and too, the promotion of general rural welfare. The regional or ganizations will help coordinate the projects of member nations, encourage and assist international cooperation, and guide investigation and research. Regarding the location of the regional office, all dele gates offered sites in their respective countries except France and the Netherlands, the United Kingdom offering Singapore. After much discussion, it was agreed on a five to four vote (affirmative: China, Burma, France, Philippines, and United Kingdom; negative: India, Netherlands, Pa kistan, Siam), to rotate the site every two years, the Direc tor-General of FAO to be invited to select the first site. Competent critics are of the opinion that the dele gates to these four conferences at Baguio “fairly well ac complished what they set out to do”. As to rice, the estimated production, requirements, and deficits for the world as a whole were carefully studied, and it was concluded that it may be five or six years before normal consumption can be resumed. * Of all the countries of Southeastern Asia, the Philippines has recovered the fastest according to the estimates, which are as follows: *A table of estimated rice areas of the world, in hectares, runs: pre-war, 83,400,060: 1947, 84,000,000: 1948, 84,825,000: 1949, 86,514,000: 1950, 87,541,000. The estimated production of milled rice, in metric tons: pre-war, 93,000,000; 1947, 88,000.000; 1948, 90,096,000; 1949, 92,447,000; 1950, 94,886,000. The estimated trade in milled rice, metric tons: pre-war exports, 5,666,000. imports, 4,799,000; 1947, exports, 2,844,000, imports 2,094,000; 1948, exports, 3,317,000, imports, 3,040,000: 1949, exports, 3,954,000, imports, 3,446.000; 1950, exports, 4,700,000, imports 3,769,000. Estimated consumption in metric tons: pre-war, 93,000,000: 1947, 88,000,000; 1948, 90,673,000; 1949, 94,117,000; 1950, 96,080,000. Estimated desirable levels of rice consumption: 1947, 93,071,000; 1948, 95,297,000; 1949, 96,835,000; 1950, 98,390,000. 1940-41 (pre-war normal output)......... 1945- 46 (year following liberation).... 1946- 47....................... ............................... 1947- 48 (estimated) ................................ Estimated requirement............ Estimated deficit..................... 1,503,000 M.T. 1,154,000 M.T.—23% below pre-war 1,398,000 M.T. 1,475,000 M.T.—2% below pre-war 1,753,000 M.T. 306,000 M.T. The normal rice in-take before the war was 408 grams per capita per day, and the 1947 in-take was 360 grams, from domestic and im ported sources, which, however, was supplemented by an increased consumption of other foodstuffs, especially bread. The preceding esti mated deficit, however, is based on the 408 figure. Experts are of the opinion that the total intake in calories is about the same as pre-war. The Central Bank Bill-A Summary By C. R. Leaber Manager, National City Bank of New York THIS report is designed as a brief analysis of the Central Bank Bill drafted under the auspices of the Central Bank Council and recently submitted by President Roxas to the Congress. An explanatory note accompanying the Bill holds out the promise that a Mo netary Board entrusted with a wide array of powers over money and credit can achieve the twin objectives of international stability and convertibility of the Peso and orderly growth in production, employment, and real income. Establishment and Organization The capital of the Central Bank will be P10,000,000, appropriated from the Exchange Standard Fund. It will b^ the duty of the Central Bank to use the powers granted it under the act to achieve the following objectives: a. To maintain monetary stability in the Philip pines. b. To preserve the international value of the Peso and the convertibility of the Peso into other freely conver tible currencies. c. To promote a rising level of production, employ ment, and real income in the Philippines. The powers and functions of the Central Bank will be exercised by the Monetary Board composed of the Secre tary of Finance, the President of the Philippine National Bank, the Chairman of the Board of Governors of the Rehabilitation Finance Corporation, and four other mem bers, oneof which will be designated the Governor of the Central Bank, appointed by the President with the consent of the Commission on Appointments. The Governor will be appointed for a term of six years, and the three other members for staggered six-year terms. The Central Bank will establish and maintain a Depart ment of Economic Research and a Department of Super vision and Examination. The latter will be charged with the supervision and periodic examination of all banking institutions operating in the Philippines, including all government credit institutions. It will perform most of the functions now delegated to the Bureau of Banking. The Central Bank and the Means of Payment The Bill specifies that the par v^lue of .the Peso shall not be altered except when such action is made necessary by certain circumstances which the Bill proceeds to enu merate as follows: a. When the existing par value would make impossible the achievement and maintenance of a high level of production, employment, and real income without — 1. The depletion of the international reserve of the Central Bank; or 2. The chronic use of restrictions on the convertibility of the Peso into foreign currencies or on the transferability abroad of funds from the Philippines; or 3. Undue Government intervention in, or restriction of, the international flow of goods and services; or b. When uniform proportionate changes in par values are made by the countries which are members of the International Monetary Fund; or c. When the operation of any executive or international agree ment to which the Republic of the Philippines is a party requires an alteration in the gold value of the Peso. “Notwithstanding the provisions of the preceding paragraph, if there should be an emergency which, in the opinion of the President, is so grave and so, urgent as to require immediate action, the Pres ident may modify the par value of the Peso without the prior ap proval of Congress; Provided, however, That he shall report to the Congress on his action at the earliest opportunity.” The Central Bank will have the sole right and author ity to issue currency within the territories of the Philip 114 pines. Notes and coins issued by the Central Bank will be liabilities of the Bank and may be issued only against, and in amounts not exceeding, the assets of the Bank. Notes and coins will be a first and paramount lien on all the assets of the Central Bank. Guiding Principles of Monetary Administration by the Central Bank The Monetary Board will endeavor to control any expansion or contraction in the money supply, or any rise or f^ll in prices, which, in the opinion of the Board, is prejudicial to the attainment or maintenance of a high level of production, employment, and real income. The Central Bank will exercise its powers to maintain the par value of the Peso and the convertibility of the Peso into other freely convertible currencies. In order to maintain the international stability and convertibility of the Philippine Peso, the Central Bank will maintain an International Reserve adequate to meet any foreseeable net demajnds on the Bank for foreign cur rencies. Instruments of Central Bank Action The Monetary Board may at any time require that any gold held by any person or entity under the jurisdic tion of the Philippines be delivered to the Central Bank. The Central Bank will engage in foreign exchange operations with banking institutions operating in the Philippines, with the Government and its political subdi visions, and with foreign governments and their instru mentalities. The Central Bank will buy and sell any quan tity of foreign exchange in currencies which are freely convertible into gold or United States dollars, provided that the offers or demands are made by entities with which the Central Bank is authorized to do business. The Bill provides for exchange-controls when deemed necessary in order to protect the Central Bank’s reserves during an exchange crisis and to give the Monetary Board and Government time in which to flake constructive measures to meet such a crisis. The approval of the President is ’required before exchange-controls and a licensing procedure may be installed. The Monetary Board will determine the rates at which the Central Bank will buy and sell spot-exchange, but these rates will not differ by more than 1/2 of 1% from legal parities unless a greater divergence from the legal parity exists in foreign markets. The Monetary Board will determine the maximum and minimum rates at which banks may buy and sell spot exchange. The Monetary Board may require the banks to sell to the Central Bank all or part of their surplus holdings of foreign exchange. The Central Bank may normally and regularly carry on credit operations with banking institutions operating in the Philippines. It is authorized to extend rediscounts, discounts, loans, and advances with the objective of regu lating volume, cost, availability, and character of bank credit and to provide the banking system with liquid funds in times of need. The Monetary Board will fix the interest and dis count rates t'o be charged in accordance with the character and term of the operation, after due consideration has been given to the credit needs of the market, the composition of the Central Bank’s portfolio, and the general require ments of the national monetary policy. The Central Bank may make direct provisional ad vances to the Government or to any of its political subdivi sions to finance expenditures authorized in the annual appropriations of the borrowing entity, provided that advances be repaid before the end of the first quarter fol lowing the end of the fiscal year of the Government and that the advances will not in their aggregate, exceed 15% of the estimated income of the borrower for the year. The Central Bank may in accordance with certain principles stated in the act, and with such rules and regu lations as may be prescribed by the Monetary Board, buy and sell in the open market for its own account evidences of indebtedness issued directly by the Government of the Philippines, or by its political subdivisions, and evidences of indebtedness issued by government instrumentalities and fully guaranteed by the Government. The Bank may, subject to such rules and regulations as the Monetary Board may prescribe, issue, place, buy, and sell freely negotiable evidences of indebtedness of the Bank. Banks operating in the Philippines will be required to maintain reserves against their deposit-liabilities which will ordinarily take the form of deposits in the Central Bank of the Philippines. The Monetary Board is authorized to prescribe and modify minimum reserve requirements. It is provided in the Bill that such ratios shall not be less than 5% or more than 25% for time- and savings-deposits, and not less than 10% or more than 50% for demapddeposits. Under certain circumstances, the Monetary Board may prescribe higher reserve ratios, but not exceed ing 100% for any future increase in the deposits of each bank above the amounts outstanding on the date on which the bank is notified of the requirement. The Monetary Board may: a. Fix the minimum rates of interest which banks may pay on deposits; b. Prescribe minimum cash margins for the opening of letters of credit; c. Issue such regulations as it may deem necessary from time to time with respect to the maximum permissible maturities of the loans and investments which the banks may make, and the kind and amount of security to be required against the various types of credit operations of the banks; d. Place an upper limit on the amount of loans and investments which the banks may hold, or place a limit on the rate of increase of such assets within specified periods of time. Functions as Fiscal Agent, Banker, and Financial Advisor of the Government The Central Bank will act as fiscal agent'and banker of the Government and its political subdivisions and in strumentalities, and will be the official depository of the Government and its political subdivisions and instrument alities. The issue of securities representing obligations of the Government and its political subdivisions or instrumental ities, will be made through the Central Bank. A Securities Stabilization Fund will be established which will be ad ministered by the Central Bank for the account of the Government. The operations of the Securities Stabiliza tion Fund will consist of purchases and sales in the open market of bonds and other fixed-income securities issued or fully guaranteed by the Government of the Philippines. Privileges and Prohibitions On the date on which it begins business, the Central Bank will assume the liability of the Treasury Certificate Fund for all outstanding treasury certificates. The Central Bank will then proceed to exchange outstanding treasury certificates for its own notes. The Central Bank will also assume liability for the Philippine Treasury coin-issue, and as soon as practicable, will exchange treasury coins in cir culation for Central Bank coins. Notwithstanding any provisions in the Bill to the contrary, the Central Bank may, until June 30, 1951, make direct advances to the Government. The total advances under this authority shall not exceed P200.000,000. The advances can be made only against an equivalent amount of negotiable government securities having ma turities not exceeding 15 years. 115 PRATRA Replies By lid. Coscolluela General Manager, Philippine Relief and Trade Rehabilitation Administration Ware extremely grateful for your furnishing us with complimentary copy of your Journal. We have aiways been interested in your paper, more partic ularly in your frank and straight-to-the-point editorials. It is for this reason that we are sending you this letter to convey some impressions we have gathered from your editorial entitled "The PRATRA Flour Control Order,”* which incidentally concerns our office. We have known your paper as one of the fairest in the field of journalism, so that we can expect that whatever will be stated by us hereunder will be given due merit and space in your future issues in fairness to your reading public, to your paper, and to the PRATRA. In the first paragraph, after your quotation of the PRATRA Administrative Order No. 4, you say that this office is "arbitrarily seizing a large part of all its competi tors’ stock-in-trade, at its own price, and asserting practi cally full control over the rest.” The inclusion of the words ■"arbitrarily seizing ... at its own price,” is believed an exaggeration, because the buying price of the PRATRA always gives allowance for profit to the importers over the landed cost of the commandeered stocks. This margin is believed just and fair, unless the enterprise from which the stock was taken has monopolistic or black-marketeering tendencies, and would want to take advantage of the situa tion at the expense of the consuming public by selling its stock at more than what would be considered a fair margin for profits. Commandeering is resorted to only when the situation reaches serious proportions as to require govern ment intervention. Importers have acquiesced to this practice, and their importations are always made with an implied reservation of the Government’s authority to interfere in the disposition of their articles when the cir cumstances so warrant. This office has exercised this ex traordinary power on several occasions already. As to the source and authority for the extraordinary measures being adopted by this office, we are quoting Sec tion 3 (e) of Executive Order No. 90, as follows: "SEC. 3. The PRATRA shall have the following powers, duties and functions: (e) 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;” No reasons were given for the order because we presume everybody to know the obvious. Flour in the black market has been priced since October of last year at twice the ceiling prices fixed by this office. These prices are still obtaining in the open market much to the prejudice of the public. • As to the duration this order will be enforced, we can say that it will last until the situation returns to normal. We can not definitely state in the order just how many days or months it will take before this objective can be reached, because this depends on factors hard to foresee and some times beyond human control. The "misbehavior” referred to in our order is a term general enough to include reprehensible acts by flour dealers, like selling flour at more than ceiling prices, selling ♦ See the Journal for March. to unauthorized customers, and discrimination of customers. In its broadest sense, it includes any act which would tend to frustrate the ends ajnd objectives of the order. You expressed doubt as to the legality of Executive Order No. 90, which created this office. In this connection, we would like to state that the said order is an instance of the exercise by the President of the emergency powers delegated to him by the Congress. This delegation of a portion of legislative powers is founded on a constitutional provision which follows: “ In times of war and national emergency, Congress may by law author ize the President for a limited period and subject to such restrictions as it may prescribe, to promulgate rules and regulations to carry out a declared national policy.” (Article VI, Section 16, Constitution of the Philippines.) The President still possesses the emergency powers given him by Congress. Until that body withdraws this authority, every act of his, made pursuant to it, is valid and legal. The determination of whether or not that emer gency still exists is an exclusive function of Congress. We therefore deem it improper for us to delve further into this question. The President is also empowered by law to reorganize the departments, bureaus, offices, and corporations and entities owned and/or operated by the Government with the objective of securing economy, coordination of func tions, and efficiency. The PRATRA is one of the offices reorganized by virtue of this law. You also inquired whether the General Manager of this Office is legally empowered to decree as he did that flour consumers in the provinces shall be served by the PRATRA through its provincial branches or authorized representatives. We believe Section 3 of Executive Order No. 90, previously quoted, is broad enough to include the power in question. When the flour situation became acute, importers were allowed to distribute their stocks in the provinces through their dealers, on representations made to this office that they would equitably and fairly undertake to shoulder this task. Verified complaints however subsequently received by this office revealed that only a mere trickle of the article reached the provinces. Evidently, the rest of the stock was disposed of elsewhere. The only way by which the PRA TRA could control the flow of the commodity was through its provincial agencies. Moreover, this administration, when it decided to adopt this means of distribution in the provinces, considered the advantage this arrangement would bring to provincial bakery owners who otherwise would be forced to come to Manila to secure the necessary authorizations before their needs can be met. Furthermore, on account of the exist ence of our branches all over the Philippines, the legitimate requirements of each one of these bakeries can be thoroughly investigated by the personnel of these agencies before the stock may be issued. The administrative order does not aim to stifle the business of the legitimate enterprises dealing in flour, be cause the measure is temporary in nature. It is a fact that no corporation or enterprise in the Philippines whether owned by its citizens or by aliens is exclusively dealing in flour. The temporary restriction and regulation of the flow of one commodity handled by them does not necessarily 116 result in driving these corporations or enterprises out of business. Whether or not this office can claim the status of an established government bureau, like the Bureau of Com merce, or a department, like the Department of Commerce and Industries, depends on one’s concept of what an estab lished bureau or office is. Suffice it to say that under Sec tion 1 of Executive Order No. 90, “this corporation shall exist for a period of thirty years from the effective date of this order.” Other government offices would hesitate to exercise the powers now being exercised by the PRATRA because they are not so vested. The ext'e,nt of the powers, duties, and functions of the PRATRA, on the other hand, appears in black and white in Section 3 of Executive Order No. 90, which is hereunder reproduced in full for the information not only of yourself but of your reading public: “(a) To act as the agency and representative of the Government of the Republic of the Philippines in dealing with the United Nations Relief and Rehabilitation Administration or with other international relief agencies; “(b) To plan, coordinate, and administer the activities fi^the relief of victims of war and other public calamities, such as p^^iding food, clothing, shelter, and other basic necessities, and medical and other essential services; “(c) To coordinate the procurement and equitable distribution of sup plies and equipment for relief and rehabilitation; “(d) To study and formulate plans for accelerating the rehabilitation and reconstruction of Philippine agriculture, industry, and trade; “(e) To find ways and means of encouraging and assisting Filipino re tailers and businessmen such as by supplying them with merchantable goods at prices that will enable them to compete successfully in the open market; “(g) To acquire foods, clothing, fuel, fertilizers, chemicals, construc tion materials, implements, machinery, equipment, required in agri culture and industry, and other articles or commodities of prime neces sity, both imported and locally produced or manufactured, for sale in such manner and at such prices as may be determined by the Board of Directors: Provided, however. That all purchases for stock of such supplies, materials, and equipment in excess of three-month’s require ments shall be subject to specific approval in each case by the Board of Directors herein created; “(h) To 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 necessary to insure the availability of the supply thereof in the interest of public welfare and the national economy; “(i) To lease, purchase, or otherwise acquire land, buildings, factories, or other facilities which may be necessary to carry out its objects, and to enter into any kind of contract or agreement incident thereto; “(j) Subject to the approval of the President of the Philippines, to contract loans or incur indebtedness, or otherwise secure credit facilities for its business enterprises, and “(k) To exercise all the powers of a corporation under the Corporation Law in so far as they are not inconsistent with the provisions of this Order.” You also inquired whether the action taken by this office in commandeering flour was necessitated by the circumstances. The exercise of the power was resorted to only when the prices of the flour reached exorbitant levels. This office has exercised it not only once but on several occasions already; and not only on flour, but also on other articles, like galvanized-iron sheets and milk, to mention a few. The monthly flour requirements of the Philippines averages 16,000 tons. The monthly allocation of 12,000 tons set by the IEFC is therefore 4,000 tons short of the normal needs. This situation will inevitably result in hoarding, black-marketeering, and other consequences unwholesome to the interest of the country, if this office does not step in. The PRATRA can not be said to impede the normal flow of commodities because the commandeering powers are only exercised when the circumstances so warrant, as when the expected supply is not sufficient to meet all legi timate needs. The exercise of commandeering powers is always conterminous with the return to normalcy in supply and prices of the article being controlled. The PRATRA will discontinue the control as soon as this objective is realized. We would also desire to emphasize that our organiza tion is not in business for the sake of profits. It is apparent from the enumeration of powers, functions, and duties of this organization that gain is secondary, and merely inci dental to the realization of our other lofty objectives. We are now more concerned in rehabilitating our trade and industries, and protecting the consuming public, than in material advancement. It is a legal truism that where the interests of private business conflicts with the interests of the country as a whole, and of the people, in particular, the state availing of its police powers may lawfully intervene, without vio lating any constitutional precept, this power being sanc tioned by the Constitution itself, by judicial decisions, and by customs and practices. Our Supreme Court has consistently held in a long line of decisions that “it is also a well-settled principle growing out of a well-natured civil society that every holder of property holds it under the implied liability that his use of it may be so regulated as not to be injurious to the equal enjoyment of others having an equal right to the enjoyment of their own property and not injurious to the rights of the community.” “IT has always been a maxim of politics, founded on, and drawn from, natural causes and consequences, that the more foreign countries which any nation can interest in the prosperity of its own, so much the better. Where the treasure is, there will the heart be also; and therefore when foreigners vest their money with us, they naturally invest their goodwishes with it; and it is we that obtain an influence over them, not they over us.” THOMAS PAINE In “Government, Banks, Money” (A pamphlet published, in 1783) 117 Foreign Trade of the Philippines, by Countries: 1947 Bureau of the Census and Statistics Total United States, Hawaii........... Country Total trade value (Pesos) 1,553,797,312 Panama, Canal Zone..................... Porto Rico....................... Other U.S. Insular Possessions.. . . Canada......................... France............................................... China................................................ Great Britain................................... Denmark.................................... Italy.................................................. Belgium............................................ Dutch East Indies......................... Malaya............................................. India............................. Switzerland....................................... Norway................................. Sweden............................................. British Africa.................................. Arabia............................................... Japan................................................ Argentina. .................... Czechoslovakia................................ Siam............................................ Netherlands..................................... British East Indies........................ Hongkong......................................... Spain................................................. Persia................................................ Ecuador............................................ Australia........................................... Mexico....................................... • Poland.............................................. Austria............................................. Brazil................................................ Palestine........................................... Germany...................... ................... French Africa................................. Venezuela......................................... Colombia.............».......................... Portuguese China........................... Jugoslavia......... ........................... French East Indies........................ Portugal........................................... Egypt............................................... Ireland.............................................. Panama, Republic of..................... Cuba................................................ Uruguay........................................... Costa Rica....................................... New Zealand................................... Chile................................................ Sto. Domingo (Dominican Rep.). Turkey............................................. Newfoundland................................. Finland............................................. British Oceania............................... Nicaragua......................................... Dutch West Indies........................ British New Guinea....................... Guatemala....................................... Peru.................................................. Bulgaria........................................... French West Indies..................... Canary Island............................... Dutch Guiana. .; k......................... Haiti.................’.............................. British Honduras........................... British West Indies....................... Syria................................................. Russia.............................................. Hungary........................................... Honduras......................................... Korea............................................... Ethiopia....................... ................... Salvador........................................... Iraq.................................................. Portuguese Africa........................... Spanish Africa................................ Bolivia.............................................. 1,184,379,453 3,334,241 617,783 146,948 141,875 11,461 38,823,437 37,071,801 31,378,979 23,220,601 20,554,858 16,272,787 15,852,492 14,366,148 14,329,898 13,043,674 9,115,084 9,076,402 8,240,100 7,689,673 6,899,650 6,413,323 6,111,091 6,066,786 5,984,133 5,955,257 5,908,744 5,881,564 5,660,059 5,151,400 4,559,848 4,300,871 4,197,532 3,937,211 3,862,087 3,334,350 3,309,947 2,663,117 2,238,301 2,052,576 1,955,815 1,676,354 1,015,926 801,450 782,615 698,146 622,686 595,619 536,514 500,832 390,420 387,598 390,907 225,238 216,186 209,432 148,750 122,990 91,744 67,546 59,304 38,497 28,679 20,298 12,950 11,664 9,180 4,527 3,917 3,804 2,866 2,120 2,040 1,725 1,290 518 463 380 200 50 20 Imports | Exports 1,022,700,608 531,096,704 879,999,624 304,379,829 2,123,122 1,211,119 — 617,783 — 146,948 27,848 114,027 — 11,461 27,624,606 11,198,831 1,815,000 35,256,801 28,535,866 2,843,113 6,199,018 17,021,583 425,942 20,128,916 669,188 15,603,599 4,859,784 10,992,708 4,627,898 9,738,250 319,26JL 14,010,632 7.962.81B 5,080,860 2,401,410 6,714,274 1,366,618 7,709,784 2,702,612 5,537,488 172,068 7,517,605 6,637,078 262,572 1,906,588 4,506,735 3,087,810 3,023,281 181,614 5,885,172 5,039,124 945,009 2,263,088 3,692,169 5,875,588 33,156 195,522 5,686,042 2,539,266 3,120,793 4,862,018 289,382 4,549,048 10,800 3,517,180 783,691 3,597,532 600,000 — 3,937,211 442,976 3,819,111 3,334,350 — 792 3,309,155 15,784 2,647,333 1,056 2,237,245 97,566 1,955,010 36,576 1,919,239 — 1,676,354 926 1,015,000 38,990 762,460 641,776 140,839 168,270 529,876 16,064 606,622 62 595,557 454,358 82,156 500,832 — 390,4 20 — 324,508 63,090 23,932 366,975 224,630 608 100 216,086 3,786 205,646 46,250 102,500 96,540 26,450 85,744 6,000 1,466 66,080 — 59,304 9,862 28,635 3,668 25,011 20,298 — 12,950 — 11,664 — — 9,180 — .4,527 — 3,917 2,278 1,526 2,866 — 2,120 — 2,040 — — 1,725 — 1,200 518 — — 463 380 — 200 50 — 20 — Balance of trade (+) Favorable (—) Adverse 491,603,904 575,619,795 912,003 617,783 146,948 86,179 11,461 16,425,775 33,441,801 25,692,753 10,822,565 19,702,974 14,934,411 6,132,924 5,110,352 13,691,366 2,881,954 4,312,864 6,343,166 2,834,876 7,345,537 6,374,506 2,600,147 64,529 5,703,558 4,094,115 1,429,081 5,842,432 5,490,520 581,527 4,572,636 4,538,248 2,733,489 2,997,532 3,937,211 3,776,135 3,334,350 3,308,363 2,631,549 2,236,189 1,857,444 1,882,663 1,676,354 1,014,074 723,470 500,937 361,606 590,558 595,495 372,202 500,832 390,420 261,418 343,043 224,022 215,986 201,860 56,250 70,090 79,744 64,614 59,304 18,773 21,343 20,298 12,950 11,664 9,180 4,527 3,917 752 2,866 2,120 2,040 1,725 1,200 518 463 380 200 50 20 118 Principal Imports: 1947 and 1946 Country of origin 1947 Value (Pesos) 1946 Value (Pesos) Total........ 153,444,326 94,476,363 1. Cotton and manufactures Total................ 153,442,326 94,476,363 United States.. 139,561,292 81,195,409 China............... 8,069,832 1,258,984 Japan............... 1,842,836 — Mexico............. 1,455,834 11,306,093 Great Britain. . 1,038,198 301,238 Switzerland. . . . 458,968 47,988 Brazil............... 307,256 84,848 France............. 213,422 82,712 Spain................ 176,000 2,574 Australia.......... 96,388 430 Other countries. 222,300 196,087 2. Grains and preparations Total............ 98,834,050 76,391,801 United States. . 70,588,036 58,541,829 Canada............. 16,444,314 4,980,922 4,541,016 8,716,870 Siam................. 6,433,200 Ecuador........... — China............... 1,717,840 1,234,374 Denmark......... 152,182 600 Mexico............. 98,000 — Australia.......... 88,982 228 Argentina......... 72,332 — Sweden............. 68,576 — Other countries. 81,850 1,464,700 3. Rayon and other synthetic textiles Total............ 90,584,900 29,649,242 United States.. 90,312,468 29,476,690 Switzerland. .. . 112,418 73,972 China. 50,472 37,846 Belgium........'. . 41,486 — France............. 18,596 238 Great Britain. . 16,210 6,004 Netherlands... . 5,978 — Italy................. 5,750 38,232 Czechoslovakia. 5,336 — Sweden............. 5,326 — Other countries. 10,860 16,260 1947 1946 Total Trade.. Pl,553,797,312 P720.091.530 Imports.......... 1,022,700,608 591,716,481 Exports.......... 531,096,704 128,375,049 4. Automobiles, parts and tires Total............ United States.. Great Britain. . Canada............. Italy................. France............. China............... 51,414,052 22,693,801 50,924,822 196,822 141,118 70,422 67,700 13,168 22,620,903 57,934 5,796 9,168 5. Iron and steel and manufactures Total............ 46,144,372’ 17,348,630 United States. 40,327,750 15,574,862 China............... 2,498,690 582,780 Belgium............ 1,984,976 260,040 Great Britain. . 992,012 657,207 Sweden......... 93,122 86,773 Hongkong........ 59,566 18,950 Netherlands... . 36,954 11,850 Australia.......... 34,320 530 Denmark.......... 30,516 — Mexico............. 22,548 49,996 Other countries. 63,918 105,642 6. Tobacco and manufactures Total............. 43,962,246 45,140,621 United States.'. 43,920,936 45,138,495 Dutch East In dies............... 40,746 Hongkong........ 424 — Great Britain. . 104 — China............... 30 2,126 Canada............. 6 — 7. Dairy products Total............ 42,625,172 21,424,183 United States.. 38,970,068 20,539,885 Netherlands... , 1,479,044 725,232 Australia.......... 1,321,750 3,058 New Zealand. . 324,426 — Denmark.......... 189,822 129,238 Switzerland. . . . 136,236 178 China............... 114,780 1,836 Mexico............. 30,040 — Belgium............ 16,972 — Great Britain. . 16,256 — Other countries. 25,778 24,756 8. Paper and manufactures Total............ 38,887,246 23,183,321 United States. . 33,034,490 19,840,164 Sweden............. 1,238,330 773,691 Norway............ 1,171,238 917,898 Canada............. 960,192 608,824 Hawaii............. 886,800 27,302 Spain................ 408,968 736,724 France............. 374,170 117,466 Netherlands... . 180,174 70 Great Britain. . 163,454 22,753 China............... 139,862 90,701 Other countries. 329,568 47,728 w 9. Mineral oils (petroleum products) Total............ 36,842,052 14,731,496 United States.. 15,236,064 9,907,404 Arabia.............. 6,637,078 — British East In dies............... 5,790,004 2,355,580 Persia............... 4,861,592 179,930 Dutch East In dies............... 4,264,780 2,284,458 Australia.......... 46,774 — Great Britain. . 4,528 4,124 Italy................. 1,232 10. Fish and fish products Total............ 31,883,484 16,870,466 United States. . 23,709,500 14,810,552 Canada............. 6,185,402 1,203,002 China............... 609,970 323,128 Mexico............. 511,570 104,625 Portugal........... 486,300 17,928 Spain................ 111,176 186,264 Venezuela......... 96,270 48,966 Great Britain. . 64,564 Norway............ 35,400 43,368 Sweden............. 25,846 Other countries. 47,486 132,633 Other imports.. 388,080,708 229,806,557 Total imports. 1,022,700,608 591,716,481 Principal Exports: 1947 and 1946 Country of destination Unit 1947 1946 Value Value Quantity (Pesos) Quantity (Pesos) Country of destination Unit 1947 1946 Value Value Quantity (Pesos) Quantity (Pesos) Copra Total ................. Kilo 1,000,094,860 354,415,334 389,985,296 78,020,891 United States France............ Denmark....... Italy............... Great Britain. Switzerland. . . Norway......... Czechoslovakia. P86,801,096 96,386,038 44,768,937 41,452,453 29,718,240 26,321,738 18,984,840 16,018,023 17,224,248 17,421,237 104,998,010 207,023,362 33,645,953 16,837,796 13,259,485 10,804,836 10,291,466 6,595,306 6,329,524 5,885,172 5,849,477 37,892,957 288,369,423 22,898,926 6,889,835 5,597,602 22,036,205 15,900,400 9,045,317 5,644,140 56,048,433 5,835,364 1,305,349 1,018,187 4,389,821 3,065,770 2,206,713 1,220,467 2,930,787 3. Desiccated Coconut Total...................Kilo 21,181,338 19,054,656 4,660,399 4,100,480 United States............. 20,966,653 18,821,257 4,660,399 4,100,480 Hongkong.................... 99,770 105,600 — — Canada......................... 77,115 77,792 — — Hawaii.......................... 37,800 50,007 — — 4. Coconut oil (inedible and edible) Abaca, unmanufactur Total...................Bale United States............... Belgium........................ Denmark...................... Great Britain............... Norway......................... Sweden.......................... British Africa............... India............................. Other countries............ 680,941 63,435,874 480,989 44,873,676 28,370 2,713,153 20,591 1,866,984 59,002 5,336,345 13,310 1,221,060 14,477 1,222,471 10,980 872,894 7,302 799,031 7,300 593,270 5,335 517,244 33,785 3,420,746 193,538 9,652,576 182,723 9,183,299 8,8’25 345,022 1,990 124,255 Total...................Kilo 18,144,956 13,940,603 1,522,000 United States............... JU-898-020 9.145,970 493,600 Italy.............................. 3,075,326 2,186,004 — Netherlands.................. 1,477,296 1,119,840 1,016,000 British Africa............... 502,275 573,470 — Belgium........................ 467,462 370,000 — Hongkong..................... 331,707 240,869 — India............................. 254,005 212,804 — Cuba............................ 128,820 82,156 — China............................ 10,000 9,400 12,400 Malaya........................ 45 90 — 630,090 207,227 415,168 7,700 119 120 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 1947 1946 Country of -----------------------------------------------------------------------destination Unit Value Value Quantity (Pesos) Quantity (Pesos) 1947 1946 Country of Unit destination Quantity Value (Pesos) Value (Pesos) 5. Copra Meal or Cake Total.............. ..Kilo 27,088,523 4,391,434 5,858,540 657,742 Sweden............... ......... 8,034,111 1,461,080 Denmark........... .......... 9,535,973 1,356,632 1,621,724 153,402 Belgium............. .......... 4,159,650 640,358 202,500 33,320 Netherlands.................. 2,239,409 439,844 — — Norway.............. ......... 1,000,000 154,000 2,090,650 269,920 France............... ......... 707,200 108,000 — — Finland.............. ......... 496,980 102,500 — — Poland............... .......... 508,000 72,500 — — Switzerland....... ......... 406,400 56,400 — — Hongkong..................... 800 120 — — United States . . ......... — — 1,943,666 201,100 8. Maguey Total................. Bales United States............... Belgium........................ France........................... India............................. Netherlands.................. Argentina...................... British Africa............... Sweden.......................... Great Britain............... Other countries............ 6. Tobacco and Manufacturers ' Total............................ 4,382,982 2,503,311 62,495 3,294,883 39,594 2,010,893 14,435 784,874 4,787 267,183 1,000 58,000 700 49,526 600 41,000 400 31,500 525 27,584 250 14,088 200 10,000 4 235 United States............... French East Indies ... China............................ French Africa............... Belgium........................ Hongkong..................... Australia....................... India............................. Other countries............ 2,304,659 665,292 509,211 294,340 216,000 163,237 97,182 71,195 32,970 10,960 17,936 617,054 738,997 241,400 246,723 125,000 16,523 416,000 58,226 2,850 26,264 14,274 9. Rope Total...................Kilo United States............... Malaya......................... British Africa............... Chile............................. China............................ Argentina...................... Hongkong..................... Dutch East Indies. . .. Siam.............................. Sweden.......................... Other countries.............. • 2,332,574 2,904,420 914,714 1,031,274 373,054 487,393 138,488 195,765 156,819 195,765 143,229 191,243 115,862 147,779 95,073 118,985 55,718 73,849 54,365 73,389 46,206 67,332 239,046 324,551 1,987,077 2,222,443 600,204 609,556 223,198 229,437 14,199 18,942 101,178 130,326 445,805 501,372 232,109 293,021 95,329 121,217 24,408 28,859 250,647 289,713 10. Embroideries Total......................... 2,335,116 83,228 7. Sugar Total...................Kilo 18,849,585 4,081,188 United States............... 18,849,135 4,081,058 Hawaii.......................... 450 130 United States............... 2,326,764 81,898 Guam............................ 5,553 — Hawaii.......................... 2,799 1,080 Hongkong..................... —250 Other exports............................................. 63,155,097 30,504,288 Total exports.................................. 531,096,704 128,375,049 Drive in at Pihe Sign of friendly Service PRODUCTS and SERVICES for <^op (Bar Performance Mobilgas ¥ Mobiloil ¥ Mobil Specialties Mobilu brication ATLAS Tires, Batteries, Accessories STANDARD-VACUUM OIL COMPANY PHILIPPINES April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 121 The Business View A monthly review of facts, trends, forecasts by Manila businessmen Office of the President From an Official Source FEBRUARY 27—The Cabinet approves a recommend ation that the rehabilitation of the port of Tabaco be given priority over the rehabilitation of the port of Legaspi as the former is better sheltered. Feb. 28—President Manuel Roxas issues Executive Order No. 121 further extending by one month the period for stamping Treasury certificates with the official seal, the extended period expiring March 31. The President issues Administrative Order No. 49 authorizing the South Sea Surety and Insurance Co., Inc. “to become a surety upon official recognizances, stipulations, bonds and under takings”. The Weather Bureau reports that the 10 typhoons and 3 “depressions” which affected the Philippines during 1947 took a toll of 1154 lives and inflicted damage to crops and property estimated at over P191,000,000, not includ ing the losses of a number of ships. The Bureau attributes the heavy damage to the “unusual frequency” of these storms during the year, the wider territory affected, the occurrence of several during the harvest season, inade quate drainage, deficient communications, dilapidated and poorly reconstructed buildings, and “indifference on the part of the people toward the consequences of the ty phoons”. The report stresses the need of the establishment of upper-air observation stations to' aid forecasting and of a more adequate communication system for the disse mination of typhoon warnings. March 2—The Cabinet again discusses the proposal to create a revolving fund for the construction of homes and apartments for public school teachers, the funds to be raised from diploma fees. The President states he could not approve making the payment of a diploma fee compul sory, stating that “a student who does not desire a diploma should be given a certificate stating that he has completed the course satisfactorily”. The President orders that struc tural steel from Surplus Property bases be reserved for government use. March 3—Machine tools and other industrial equip ment valued at P2.000,000 as a reparations payment from Japan, arrives in Manila on board a Philippine Naval Pa trol vessel,—the second such ship to bring this materiel from Japan. March 5—Malacanan issues a press release stating: “A statement appearing in some sections of the press that Pres ident Manuel Roxas is opposed to the withdrawal of emergency powers which he inherited from the previous Administration, is not correct. President Roxas has not made any statement to this effect. Malacafian has not given out any such information.” T. L. Hammarstroem, Swedish Ambassador to China and newly appointed Swedish Minister to the Philippines, presents his credentials to President Roxas. 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PORT AREA, MANILA BACOLOD, NEGROS OCCIDENTAL Centrifugal 122 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 to live here part of the time and in China part of the time. Before his present assignment, he was Ambassador to Cze choslovakia. In connecting with attacks in the House on Secretary of Justice R. Ozaeta, President Roxas states that there is “absolutely no basis” for the accusations made. With par ticular reference to the charges made in connection with the Krivenko case, the President states that these are “completely unjustified”. “The Secretary of Justice discussed with me the point of law in volved and, after hearing his views on the matter, I instructed him to adopt the position which he took. There was a very close question of law involved in this matter and it is perfectly possible that lawyers will differ as to the true interpretation of the Constitution in this re spect. As a matter of fact, the decision of the Supreme Court was not unanimous; four Justices dissented from the majority opinion... I have full confidence in the ability and rectitude of Secretary Ozaeta. I consider him one of the most honest, self-sacrificing, and patriotically devoted of our public servants. He has my full and unconditional sup port.” March 8—Secretary Ozaeta renders an opinion that contracts of loan between the Philippine National Bank and other government financial institutions and members of Congress do not contravene the constitutional provision which declares that “no Senator or Member of the House of Representatives shall directly or indirectly be financially interested in any contract with the Government or any subdivision or instrumentality thereof”. The opinion dis tinguishes between this matter and that resolved in a pre viously rendered opinion which held that “the wife of a Senator or Representative is disqualified from entering into a contract with the Shipping Commission involving the operation and disposition of ships ... on the ground that such a contract falls within the provision contained in Sec tion 17, Article VI, of the Constitution.” (Continued on page 143) Banking and Finance By C. R. Leaber Manager, National City Bank of New York REFERENCE was made in this column last month to a decline in export-exchange cover, while the demand for dollars from commercial sources continued steady. This trend was even more noticeable in March and finally banks were compelled to meet the situation by increasing the premium for dollars on both purchases and sales. Bank credit was somewhat more sought after. In terest rates are inclined to be firmer, but there is still plenty of credit for current business needs, though it is not quite so cheap, or quite so easy. The chief topic of interest to financial and business circles this month is the Central Bank Bill. A draft of this most important legislation was sent to Congress by the Administration on February 27, with the request that the * measure be given early consideration. The joint con gressional committee on Banking and Corporations held public hearings on the Bill early in March. The proposed legislation does not admit of detailed study in this column, but the more important features of the Bill are summarized in another article in this issue. COMPARATIVE FIGURES Loans, Discounts, and Advances (monthly averages) (000 omitted) February, 1948 January, 1948 February, 1947 P350.152 P346.012 P244.824 Your roof deserves the best! Use ASBESTOS-CEMENT SHINGLES Laid directly on purlines and guaranteed to be water tight. Managing Agents THEO. H. DAVIES & CO., FAR EAST, LTD. 6th FLOOR AYALA BUILDING MANILA ★ FIRE-PROOF ★ COOL ★ ECONOMICAL ★ CORROSIONPROOF ★ DURABLE ★ TERMITE PROOF ★ STRONG, TOUGH April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 123 Total Bank Resources (monthly averages) (000 omitted) February, 1948 January, 1948 February, 1947 P848.243 P847.289 P741.104 Bank Deposits (monthly averages)—(Public funds not included) (000 omitted) February, 1948 January, 1948 February, 1947 P400.945 P412.567 P377.851 Debits to Individual Accounts (monthly averages) (000 omitted) February, 1948 P125.527 January, 1948 P125.172 February, 1947 P119.202 February 29th, 1948 P798.462 Circulation (000 omitted) January 31, 1948 P783.608 PACIFIC MERCHANDISING CORPORATION John R. Wagner, Pres. 209 Rosario Manila February 28, 1947 P645.597 American Stock and Commodity Markets March 1 to March 29, 1948 By Roy Ewing Swan, Culbertson & Fritz DEVELOPMENTS in the international political scene were the predominating factors on American markets for the period under review. Between March 1 and 15 the New York stock market was featureless, the in dustrial average moving in a range of less than 2.00 points for this period. On the 16th, nervousness, following the announcement that President Truman would address a joint session of Congress, sent the industrial average down to 165.39, a new low since May, 1947. For the next few days the market appeared to digest the President’s message, together with its implications, and then to decide that it wa$ bullish. Strong buying appeared on the 19th and 20th, sending the industrial average up 6.20 points to 173.12. Volume on these days was the highest in many months, as chemicals, rails, minings, steels, aircrafts, and motors were in big demand, reflecting expectations of large govern ment spending for rearmament and stock-piling and the early passage of the European Recovery Program. On the following Monday, volume was over two millions shares for the first time in a year, but profit-taking halted the advance and from that date until the present writing the market has been firm around the 172 to 174 levels, with volume diminishing to around the one-million-share-perday level. Rails featured the latter sessions, closing at near highs for the year on dividend and earnings announce ments. While domestic developments, su'chi as high hopes that the tax-reduction bill would soon be passed, were important factors, it would appear in general that senti ment has considerably improved as a result of the strong stand which the United States Government has taken in international affairs. In spite of the recent impressive rally, however, the primary trend according to the Dow Theory remains bearish. To confirm a reversal of this trend, the averages should jointly penetrate their 1947-48 peaks of 186.85 for the Industrials and 53.85 for the Rails. Conversely, a drop beneath the 1946-47 lows would reaffirm the bear trend. The market has now moved in this narrow range for seventeen months. Should the break-out, when it comes, be on the up-side, it would mean that the bear market ended in May of 1947. The recent testing of the February lows without a break-through by both averages, together with the strong rally on increased volume which followed, would seem to throw the balance slightly in favor of this possibility. EXCLUSIVELY REPRESENTING....... CORBIN LOCK COMPANY AMERICAN RADIATOR & STANDARD SANITARY CORPORATION NATIONAL CARBON CO., INC. “Eveready” flashlights & batteries LINDE AIR PRODUCTS CO., INC. “Union” Carbide AMES BALDWIN WYOMING COMPANY BALL BROS. MASON JARS WEST BEND ALUMINUM COMPANY MALLEABLE IRON FITTINGS CO. FAIRBURY WINDMILL CO. CAPEWELL MANUFACTURING CO. SLOAN VALVE COMPANY BOMMER SPRING HINGE COMPANY HUBBARD & COMPANY COLUMBUS COATED PRODUCTS CO. KEENEY MANUFACTURING COMPANY BADGER METER MANUFACTURING CO. DICK BROTHERS MANUFACTURING CO. A. B. STRAUB CO. LIGGETT SPRING & AXLE COMPANY STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING 124 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 ■following the * sharp break in February, commodities x recovered moderately and fluctuated narrowly during March. Wheat recorded its high in the first week of the month, following Secretary of Agriculture Anderson’s announce ment that the Government was again going into the mar ket. This unusual action caused sharp criticism from some quarters, with the indirect accusation that the Government in an election year was against falling prices that affect the farmer. The new Government-buying program, how ever, of limiting purchases to one million bushels a day, made for a more orderly market, and predictions of another bumper wheat crop brought out enough sellers to meet all demands. March wheat recorded a low of 2.41-3/8 on March 9, but firmed to 2.44 on the 22nd. May corn fluctuated even more narrowly, closing steady at 2.20 after having sold as low as 2.10-1/2 on March 12. Cotton reacted to the announced plan of large credits to Japan for the purchase of United States cotton, and spot closed in New York at 35.73, a new high since January. Manila Stock Market Febuary 16 to March 15, 1948 By A. C. Hall A. C. Hall &> Company MINING SHARES OLLOWING the sharp decline in local stock prices during the first half of February, the market has shown no sustained capacity to recover, apart from short lived selective strength in one or two issues. As measured by the Manila Stock Exchange Mining Average, today’s closing level is little changed from a month ago. The marked reluctance to stage a more normal retrace ment of last month’s losses is due, principally, to growing concern over the world situation, and increasing war-talk. There are also other factors contributing to a lessened demand for stocks at the moment. Possibly the most important of these other influences is the fact that, in some lines of business, local importers have over-estimated their market and are having some inventory difficulties. Then again, at this season of the year, some tax-selling generally materializes. There has been no change in the technical position during the period of this review. The decline of the last few days has carried the M. S. E. Average down to within little more than a point of the February 14 close. Writing in this column last month, I suggested the improbability of the secondary correction, which commenced on January 3, 1948, terminating without further testing of the Feb ruary 14 closing level. This test is now in the making, and if prices fail to hold above the latter level, further indefinite extension of the correction will ensue. As stated last month, however, the major trend remains bullish. Total Hi ch Low Close Chance Sales Manila Stock Ex change Average.. 114.22 108.22 108 22 Up 1.23 Acoje Mining Com pany .................... .315 .29 .30 Up .02 240,000 Antamok Gold fields 028 .027 .027 Off .001 306,841 Atok - Big Wedge Mining Co.......... 1.24 1.16 1.16 Off- .02 115,500 Baguio Gold Min ing Co................. .07 .0675 .0675 Off .0025 90,000 Batong Buhay Gold Mines.................. .0072 .007 .007 Up .0002 2,450,000 Coco Grove, Inc.. . .035 .035 035 Up .005 25,000 Consolidated Mines, Inc....................... .014 .0135 .014 Up .0005 6,860,000 ATLANTIC GULF 1& 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 • • DISTRIBUTORS 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. April, 1948 AMERICAN CHAMBER 0>F COMMERCE JOURNAL 125 IXL Mining ComPany.................... .0725 .0675 .0675 Up .0075 168,800 Lepanto Consoli dated .68 .57 60 Up .04 533,000 Masbate Consoli dated ................... .0575 .043 048 Up 004 2,565,000 Mindanao Mother Lode Mines........ 1 20 1 .08 1 10 Up .02 274,850 Paracale Gumaus Consolidated. . . . .12 .12 .12 Unchanged 5,000 San Mauricio Mining Co................. Surigao Consoli .20 .195 .20 Off .01 36,000 dated ................... .36 32 345 Off .005 448,127 In addition to the foregoing, unlisted mining issues traded as follows: Antipolo, 202,000 shares, high 27 cen tavos, low 23 centavos, closing 26 centavos; Balatoc, 2,400 shares between P4.10 and P4; Benguet Consolidated, 14,000 shares at P4.10 and P4; East Mindanao, 140,000 shares at 1-3/10 centavos; Itogon, 80,000 shares between 8-1/2 and 7-3/4 centavos; Palidan Suyoc, 50,000 shares at 1 centavo; Suyoc Consolidated, 40,000 shares between 3-1/2 and 4 centavos; and United Paracale, about 100,000 shares from 8 to 9-1/2 centavos. Total COMMERCIAL AND INDUSTRIAL High Low Close Change Sales Bank of the Philip pine Islands......... P70.00 P70 00 P70 00 Unchanged 43 Central Azucarera de la Cariota .... 100 00 100 00 100 00 — 55 Far East Oil Deve lopment Co........... Marsmari and Co. .18 165 .175 Up 01 955,414 Pfd......................... Pampanga Bus Com .52 .47 .52 Up .07 9,500 pany ...................... Philippine Racing 1.20 1 20 1 20 Off 10 2,000 . Club...................... 1 36 1 26 1 28 Unchanged 29,832 San Miguel Bre wery ...................... 92 00 83 00 90 00 Up P7.00 3,453 Central Azucarera de Tarlac ................ 35.00 35.00 35.00 — 64 Victorias Milling Co. 120.00 120 00 120 00 Up P5 00 205 San Miguel was in good demand on the announcement of a further stock dividend. Apart from this stock, trading in this section was generally quiet. Trading in unlisted commercials was as follows: Jai Alai, 6,500 shares at P19 and P20; Manila Jockey Club, 1,000 shares at P2.80; Williams Equipment and Supply Company, 300 Common at P10 and Pl5, 1% Preferred at P100. Credit By W. J. Nichols Treasurer, General Electric (P. I.) Inc. A SURVEY of the credit experience of wholesaling firms indicates that during March there was continued ’ pressure on credit managers to extend more favorable terms to customers. Several companies report an increasing proportion of overdue accounts in their total outstanding receivables. This situation is attributed to (1) greater lockup of retailers’ capital in inventories, (2) reluctance of customers to part with cash in view of the current unset tled political outlook. Credit men are finding it necessary to devote more attention to the review of requests for ex tension of credit in order to avoid possible losses on bad accounts. Sales on the installment plan are still at a relatively low level but it is noted that transactions of this nature are steadily increasing. To date, installments terms have been restricted by most firms to higher-priced items of stock, and financing is being handled by the dealer rather than through banking establishments. Since the end of MARINE AND INDUSTRIAL PAINTS EMBODY THE ACCUMULATED KNOWLEDGE AND EXPERIENCE OF 70 YEARS OF CONSTANT RESEARCH BY THE LARGEST MANUFACTURERS IN THE WORLD, WITH FACTORIES IN 13 DIFFERENT COUNTRIES -----------X-----------ACCEPT NO SUBSTITUTES THE LITTLE EXTRA PAID FOR “INTERNATIONAL” WILL BE FOUND A GOOD INVESTMENT ———x--------INDUSTRIAL PAINTS and PAINTS FOR EVERY MARINE PURPOSE STOCKED IN MANILA ENQUIRIES SOLICITED. LET OUR EXPERTS IN ENGLAND AND U.S.A. HELP YOU TO SOLVE YOUR MARINE AND INDUSTRIAL PAINT PROBLEMS BOWEN & CO., INC. 940 Lepanto, Manila TEL. 2-82-55 126 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 Arriving Soon! THOMAS' REGISTER OF AMERICAN MANUFACTURERS ... Have You Placed Your MAGAZINES IN YOUR FIELD OF INTEREST • Subscribe to these publications thru us and get dependable subscrip tion service. It’s conven ient. All your subscrip tions can be entered at one place. All your mag azines can be paid at one time—at one store. Reservation? l-yr. rate Accountants’ Digest...................................... Q P 7.00 Accounting World......................................... BM 11.50 American Banker.......................................... 6 issues 39.00 American Business........................................ M 10 00 Banking.......................................................... M 10 00 Banker’s Monthly........................................ M 11.00 Bulletin of Business Research..................... M 4.00 Barron’s Weekly.......................................... W 24.00 Business Education World.......................... 10 nos. 5.00 Business Management.................................. 9 nos. 8.00 Business Digest (local)............................... M 10.00 Business Week.............................................. W 10.00 Chain Store Age........................................... M 8.00 Commercial & Financial Chronicle............... SW 84.00 Commercial Record................. ..................... W 28.00 Controller....................................................... M 9.00 Dun’s Review. . ......................................... M 10.00 Dun’s Statistical Review............................. M 6.00' Factory Management & Maintenance......... M 6.00 Financial World............................................ W 34.00 Forbes............................................................. SM 10.00 Fortune........................................................... M 26.00 Harvard Business Review........................... BM 12.00 Journal of Accountancy............................. M 10.00 Journal of Business..................................... Q 13.20 Journal of Business Education.................. 10 nos. 5.00 Journal of Commerce.................................. D 70.00 Journal of Retailing.................................... Q 3.50 Magazine of Wall Street............................. 26 issues 27.00 Manufacturer’s News................................... M 6.00 Manufacturer’s Record................................. M 8.00 Modem Industry.......................................... M 14.00 National Corporation Reporter................... W 6.00 Office Appliances........................................... M 6.00 Purchasing...................................................... M 12.00 Retail Management........... ....................... M 8.00 Sales Management..............'I.................. SM 18.00 Survey of Current Business........................ M 8.00 United States News...................................... W 12.00 Wall Street Journal...................................... D 52.00 PHILIPPINE EDUCATION COMPANY 1104 CA5TILLEJ05-TEL.2-95-5I • QUIAPO. MANILA the war local banks have not to any appreciable extent been requested to go into the business of discounting install ment paper, and it is not expected that the demand will be very great in the near future. As of March 12, 1948, the Association of Credit Men, Inc. (P.I.). reported a membership of 60 firms, highest in the history of the Association. This increased activity is an indication of the growing awareness of credit managers of the importance of collection work. Electric Power Production (Manila Electric Company 'System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH 1948 ' 1947 January............................................ 27,301,000 17,543,000 K February.......................................... 26,021,000 * 17,503,000 I March.............................................. 27,100,000 ** 20,140,000 L April................................................................................ 19,601,000 O May..'........ 19,241,000 W June................................................................................. 17,898,000 A July.................................................................................. 22,593,000 T August............................................................................ 23,358,000 T September....................................................................... 23,122,000 October.......................... 24,755,000 H November....................................................................... 24,502,000 O December........................................................................ 25,725,000 U ----------------- R TOTAL............................................................ 255,981,000 S * Revised ** Partially estimated Output in March was 1,079,000’ KWH or 4.1% over February and 6,960,000 KWH or 34.5% over March, 1947. However, the fate per day was lower in March than in February, this being the first month since June, 1947, that the rate per day has not exceeded the previous month. This can be accounted for by longer days, Easter holidays, and the shutdown of a large industrial customer due to a strike. Real Estate By C. M. Hoskins C. M. Hoskins S’ Co., Inc., Realtors THE March real estate market in Manila continued un changed, with large transactions scarce, and small sales extremely active. Land values continue steady. Buildings continue to be priced at more than double the pre-war figures, and many investors figure that new construction costs will not come down below double the pre-war figures for many years to come. Subdivision sales continue active, and there seems to be a definite shortage of small lots needed for housing the vastly increased metropolitan population. Mortgage money for small and medium-sized loans is abundant at 6% and 7%, savings banks and insurance com panies being active in this field. Construction By H. H. Keys Architect UILDING obstacles seem to be increasing rather than decreasing. The cement shortage is very serious. The con struction of quite a few buildings has been stopped due to April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 127 Compiled by the Bureau of the Census and Statistics from data supplied by the City Engineer’s Office. BUILDING CONSTRUCTION IN MANILA: 1936 TO 1947 MONTH 1 1936 1 1937 1 1938 1 1939 1 1940 1 1941 1 1945 I 1946 1 1947 " | Value) | (Value) | (Value) | (Value) | (Value) | (Value) | (Value) | Value) | (Value) January................... 540,030 426,230 694,180 463,430 1,124,550 891,140 1,662,245 3,645,970 February 720,110 479,810 434,930 1,063,050 1,025,920 671,120 467,790 — 2,509,170 3,270,150 March. . 411,680 396,890 1,300,650 662,840 641,040 — 3,040,010 3,398,910 April......................... 735.220 400.220 659,680 770,130 1,029,310 1,139,560 962,420 408,640 462,020 3,125,180 8,295,640 5,564,870 May........ 670,350 1,063,570 740,510 335,210 1,496,700 3,968,460 June.......... 827,130 459,360 754,180 809,670 542,730 418,700 ' 2,444,070 3,904,450 5,898,580 July.......................... 302,340 691,190 756,810 495,910 357,680 609,920 1,741,320 3,062,640 9,875,435 August. ................. 368,260 827,660 627,790 622,050 661,860 306,680 1,418,360 4,889,640 7,428,260 September 393,100 777,690 684,590 554,570 590,380 530,830 1,015,250 7,326,570 7,770,310 October.................... 363,120 971,780 718,190 645,310 738,700 699,040 639,030 4,630,550 6,747,240 November............... 460,720 320,890 972,310 461,580 485,100 315,930 1,364,310 4,373,390 7,088,283 December................ 648,820 849,160 503,230 1,105,970 333,490 67,553 1,605,090 5,034,600 4,924,320 Total.............. 6,170,750 7,530,690 9,280,560 9,053,250 8,234,460 5,692,273 ' 12,186,150 47,526,905 73,907,248 Annual Average.... 514,229 627,557 773,380 . 754,438 686,205 474,356 1,015,513 3,960,575 6,158,937 the lack of cement. While a certain amount of rationing exists, in most cases it does not pay to start up again un less the contractor feels sure that he can run for at least a week. Shipments of cement are expected shortly from the United States and from Japan. Estimates of the amount expected vary. While this will help, it undoubtedly will not fully relieve the situation. * ♦See Mr. Eduardo Tavlor’s statement in the "Philippine Government CorThe cement shortage mean a loss to owners whose projects are delayed, a loss to contractors whose overhead is extended indefinitely, and a loss to workmen of wages. Cement prices will undoubtedly be higher for the imported cement. Some contractors are already including an increased cost of cement in their bids and making it a condition of their bid that they be not penalized for delays due to failure to obtain materials within the specified time. This works a hardship on owners, but one cannot blame the contractors for their attitude. SILVER AND JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York JAVA PACIFIC LINE N. V. S.M. “Nederland” N. V. Rotterdamsche Lloyd Amsterdam —Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York SOMEONE SWEET IN THE U. S. A. SEND HER FLOWERS MANILA VANCOUVER ILOILO To and From SEATTLE CEBU PORTLAND LOS ANGELES and SAN FRANCISCO and To and From BOMBAY AND CALCUTTA SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FROM V. 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 TELEGRAMS TO ALL THE WORLD AND SHIPS AT SEA RCA COMMUNICATIONS INC. OFFICES: PLAZA MORAGA 306 13th Street, Port Area 2-79-00 Extension Consolidated Investment Bldg. Plaza Goiti 1749 Azcarraga 2-79-08 918 San Nicolas 2-79-09 128 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 THIS EMBLEM . . . IDENTIFIES INTERNATIONAL HARVESTER BRANCHES AND DISTRIBUTORS. BEHIND THIS NAME STANDS ONE OF THE WORLD’S LARGEST SERVICE ORGANIZATIONS. COMPLETE LINE OF AGRICULTURAL MACHINERY AND EQUIPMENT FOR MODERN FARMING ENGINES HARROWS TRACTORS CORN SHELLERS CORN 1 GRINDERS TRACTOR PLOWS RICE THRESHERS LUZON CLIPPER CARABAO PLOWS ETC. International Harvester Company OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA CEBU BACOLOD DAVAO Shortages of galvanized iron, structural steel, and materials of a similar nature continue, with no sign of im provement for several months to come. Due to the serious international situation and the possibility of a war or the commandeering of materials in preparation for a possible war, some contracts are now being written with a war-clause in them. The clause de scribes the conditions under which either the owner or the contractor may terminate a contract. There was a great deal of trouble after the last war in adjusting interrupted contracts. This clause is prompted by a desire to avoid a possible repetition of similar owner-contractor arguments. Export licensing in the United States is becoming even more drastic than it was a few months ago. Prices of lumber are up slightly. All of these things make owners wonder as to the advis ability of doing anything in the way of building, except of an inoperative nature. Yet building permits are being issued daily and many of the larger firms are seriously considering erecting new buildings. Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines EXPORTfiguresforFebruary of this year show a decid ed improvement over February. 1947. Seventy-nine vessels loaded 143,414 tons during the month as against 58 vessels and 117,345 tons for the corresponding month of February, 1947. Copra shipments show an appreciable decline, but ex ports of logs and lumber have steadily increased and sugar is once again moving. Principal exports for February of this year as compared with exports for February of last year are given below: 1947 1948 Cigars............................................... 3 tons 19 tons Desiccated Coconut....................... 2,629 ” 6,695 ” Coconut Oil.................................... 217 ” 3,635 ” Copra.................................................... 91,851 ” 63,148 ” Copra Cake....................................... 2,456 ” 301 ” Hemp............................................... 46,172 bales 74,360 bales Logs and Lumber......................... 4,896 bft. 2,764,171 bft. Ores.................................................. 9,046 tons 26,707 tons Rope................................................ 178 ” 367 ” Tobacco........................................... 199 ” 161 ” Sugar......................................... — 14,132 Inter-Island Shipping By G. F. Vander Hoogt Everett Steamship Corporation IN previous articles, mention was made of the need for improving the North Harbor in order to facilitate opera tions in that section of the Port of Manila which is used by almost all inter-island ships. The need for this improve ment has become imperative lately, due to the construction of the Del Pan bridge across the mouth of the Pasig river, which has resulted in the over-taxing of the North Harbor docks. The new bridge blocks the passage of inter island vessels up the Pasig river to the Magallanes landing previously used by some inter-island operators. With the exception of three or four very small vessels, all inter-island ships now dock at only three piers in the North Harbor. These are piers 4, 6, and 8. Pier 2 is assigned to the United States Government exclusively, while Pier 10. cannot be used because the laid-up ships of the Philippine Shipping April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 129 Commission are tied up there. Pier 12 cannot be used be cause the road leading to it is not completed. Aside for inter-island ships, there are also LST’s of the Philippine Government and the Japanese SCAJAP fleet making use of the slip between piers 4 and 6. It can therefore be seen that the three piers now being u^sed in the North Harbor are not sufficient to take care of all the inter-island ships assigned to that harbor. Lately there has been some construction work going on in the North Harbor area. Bulldozers have been tearing up the old road and evidently a new road is being readied. However, that work has been temporarily stopped because certain houses are in the way of the proposed road. Whatever is planned for the North Harbor, there is great and urgent need for the following improvements: 1. Widening and paving of the North Harbor road. 2. Paving of the piers which now are very dusty and which during the rainy season get very muddy, prejudicial both to vessels and the proper handling of cargo. 3. Dredging of the channel and shallow portions in the dock-areas. 4. Installation of telephone service on all piers. 5. Installation of lights on the docks and along the main roadways in the North Harbor area. 6. The detailing of more policemen to the North Harbor area, as shippers are now reluctant to have loaded trucks pass there at night for fear of highjackers. Due to the geography of the Philippines, adequate inter-island water transportation is one of the main factors contributing to normal living conditions here. A clear-cut program for the betterment of conditions existing in North Harbor, will go a long way toward improving this inter island service, and will certainly contribute to improving general conditions throughout the Archipelago. Air Transportation By V. A. Bpussolo Vice-President, Philippine Air Lines HOW much safer is air transportation compared with land transportation? Let figures supply the answer. In the United States, according to the 1945 census, air accidents accounted for 2.5 passenger-fatalities per 100,000,000 passenger-miles, — versus a total of 8.4 passenger-fatalities for railways, busses, passenger cars, and taxies for the same passenger-distance. This means that air-travel is about four times safer than land travel. Strictly speaking, according to the Philippine Civil Aeronautics Administration statistics, there were no re venue passengers killed locally in 1947, despite the 52,000,000 passefj-ers-miles flown during the year. Even if we consider che unfortunate Tinsay air accident, in which three were killed, the proportion is still over 17,000,000 miles per passenger-fatality. Accountable for this comparative safety of air-travel over the Philippines, are the improvements being made in all mj! nr airports. The Manila International Airport is now usi the latest safety landing-device, known as GCA (Ground Controlled Approach). This equipment alone has a procurement cost of $99,000. It is contemplated that another airport landing safety-device will soon be installed at the Manila International Airport, the Instru ment Landing System (ILS) at a cost of $75,000. lUTeanwhile, construction and repair work at the Manila International Airport is proceeding on a 24-hour daily basis. The Terminal Building is undergoing conAS^«ORSES BUT JOHNSON IS YOU ALL THISY Rubber Flow Shock Absorber Weedless Propeller Automatic Oiling Large Grease Capacity Large Gas Capacity Hardened Steel Gears Grease Seals Salt Water Protective Treatment Stainless Steel Pro peller Shaft —and much, much more Life Carburetion Starter Primer >-Control Rotor Pump Models Available HD - 2.5 H.P. KD - 10 H.P. TD - 5.2 H.P. SD : 16 H.P. PD - 22 H.P. H. E. HEACOCK CO. The Store of Quality 454 Dasmarinas Tel. Nos. 2-79-78 & 2-79-79 16th & Atlanta Sts., Port Area — Tel. 2-94-89 130 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 struction by the Sungga Corporation, which was awarded the contract on the lowest bid of P207.000. The contract calls for completion within 60 working days, and the build ing should be finished on time to accommodate the Philip pine Air Lines Domestic Division which is still operating at the Makati Airport. Philippine Air Lines, itself, is launching into an expensive program for its domestic and overseas operations at the Manila International Airport. Even while the Manila International Airport is in its organization stage, mammoth plans are being laid as per instructions from the President of the Philippines to Colonel Jesus Villamor, concurrently Administrator of the Civil Aeronautics Administration and the Manila International Airport. The latest draft of the corporation charter en larges the scope of the Manila International Airport, and calls for a corporation known as the National Airfields Corporation which will "serve as an agency of the Republic of the Philippines in the development, administration, operation, and management of all government-owned landing fields in the Philippines, except those controlled and operated by the Armed Forces of the Republic”. "Defore the war we used to have mobile expositions on land. Now we have them in the air. The Atlas Sky-Merchant, — formerly a DC-4 converted into a verit able flying exposition, has been launched on a round-theworld tour, carrying a display of various aviation, marine, and automobile products. This Sky-Merchant arrived in Manila on March 9 at 2:30 in the afternoon. The giant plane was displayed for five days at the MIA, Nichols Field, with special flights for invited guests. The flying exposition visited important points in the United States, Canada, and South America, and is now wing ing its way over important cities in Africa, and in India, China, Japan, and other points in the Far East. This is the first systematic and effective exploitation of aviation facilities for merchandising and business research. Opinion is to the effect that the Atlas Sky-Merchant will open a new frontier in worldwide business operation, as well as help international understanding and goodwill. 'T'he CAA announces a training program for Filipino A airways communicators * as one phase of the adminis tration project intended to rehabilitate communications in the Philippines. Subjects of instruction will include air navigation, meteorology, communications, pilot-radio and airport-traffic control, and teletype operations. AT the recent No. 3 Traffic Conference Meeting of the International Air Transport Association, commonly known as IATA, held in Sydney, Australia, March 3 to 10, a number of decisions were reached which will affect air transport in this area of the world. The International Air Transport Association has as one of its aims the facilitating of border procedures in con nection with immigration,‘quarantine, and customs. As there is often much duplication in this connection, it is the plan of the Coordinating Committee of IATA to outline standardized procedures to facilitate this phase of air travel, in the nature of which speed is the dominant factor. Inasmuch as Conference No. 3, which comprises the area east of Karachi and west of, but not including, Hono lulu, was the last to be formed, this Conference could benefit by the experience of Conference No. 1 in the United States and Conference No. 2 in Europe. There is still, however, a great deal of pioneering to be done, and many of the pro cedures which work in one area will not work in another. For example: One of the knotty problems discussed at the Sydney meeting &as currency-restriction and the frequent changes in currency-value. Also the problem of black market currency poses a problem in this area just as it does in the European area. ENGINEERING EQUIPMENT AND SUPPLY COMPANY Machinery • Mechanical Supplies • Engineers • Contractors General and Sales Offices Engineering Shops Room 310 Myers Building No. 1 Calle L. Segura Port Area, Manila Pasig River, Mandaluyong Phone 2-61-05 Phone 6-65-68 ANNOUNCEMENT We announce the rehabilitation and reopening of our Engineering Shops at their former site, No. 1 Calle L. Segura and Pasig River, Mandaluyong, under the same supervision and management as prewar, and continuing a policy of good dependable work at reasonable prices. OPERATING • MACHINE SHOPS • STEEL PLATE & STRUCTURAL STEEL SHOPS • • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • • MARINE RAILWAY • SPECIALIZING ON Steel Tanks of all Types anjl Sizes, Steel Truck Tanks, Steel Truck Dump Bodies, Mine Ore Cars, Steel Fabrication and Erection, Sheet Metal Fabric ation and Erection, Machinery Installations and Repairs, Marine Repairs. April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 131 Other matters discussed at the meeting had to do with the standardizing of fares and rates so that they will even tually be the same in practically all parts of the world. Coordinating operations and costs are also a particular problem, as there are so many governing factors such as cost of equipment, labor, taxes, climatic conditions, different types of equipment used, ground-service costs, in-flight service costs, insurance, and a multitude of other items which have a definite bearing on the over-all cost of pro ducing the transportation. Mr. F. E. Howell, sales-promotion manager for Phil ippine Air Lines, who represented PAL at the meeting, created quite a stir when he introduced the resolution asking for second-class fares to apply on the DC-4 freight passenger equipment after the inauguration of the De Luxe DC-6 pacemaker service. Mr. Howell reasoned that other forms of transport had found it advantageous to look into transportation of a second-class nature, and it is his opinion that this will fill a definite need for those who wish speed and some comfort but without extra frills. It is to be hoped that this will tap a new market of air travel. For example, many people living in California and Honolulu do not have time to travel by ship and would be hesitant about paying the full first-class fare, but would possibly be in terested in .this reduced fare. A further improvement in PAL’s service will be the offering for the first time of a real “sleeping-berth” across the Pacific. This will enable passengers to “sleep their way” in the utmost comfort in a pressurized atmosphere. The DC-6 schedule will reduce by at least 10 hours the present time of crossing. The Honorable Arthur S. Drakeford, Minister for Air and Civil Aviation in Australia, in his opening address at the Sydney Convention, stressed the great progress that had been made by IATA so far. He is quoted as follows: “It is, of course, the tragedy of international air transport, that it has outpaced almost everything that comes in contact with it. For instance, the same customs delays which seemed reasonable enough at the end of a month’s sea voyage are intolerable when the journey by air has taken oply a day or two. Even an hour’s hold-up represents a serious loss to an airline operator, — equivalent to 200 to 300 miles of travel. “In its short life IATA has accomplished much, but no achieve ment seems to me more remarkable than the worldwide rate-structure based on operating costs which was adopted at the Rio de'Janeiro meeting. “In reaching this type of agreement, IATA achieves a compromise between the two major schools of thought in international air trans port today. One school of thought declares that there must be some form of control over air transport to prevent unfair competi tion which could quickly lead to chaos. The other school of thought contends that the growth of air transport is of such first-rate import ance, and so valuable for its own sake, that no brake whatsoever should be put on its progress, even at the risk of‘rate wars’ and other possible and maybe even probable causes of friction between the air lines and their respective governments. “However, the 70 IATA members, belonging to 44 countries, have themselves got together, and by the exercise of democratic processes they have been able to avoid the worst dangers of cut-throat competi tion. “IATA claims, with some justice, to be well on the way toward welding its 500,000 miles of airways into an integrated world transport system, — an achievement which would have seemed visionary at the end of the Chicago Conference in 1944.” It is to be hoped that in the not too distant future Baguio will be selected for the meeting place of the Inter national Air Transport Association, as it is the opinion of those active in the tourist industry that the Philippines will attract great numbers of tourists from all parts of the world, through the media of air transport, when it becomes better known to prospective travelers that it is second to none in scenic beauty and in the hospitality of its people. The Philippines also lies strategically on the central roundthe-world route, easy of access, and offering facilities which make it a “natural” so far as air transport goes. HEADQUARTERS FOR 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 PURLIC ADDRESS SYSTEM • 16 MM. PROJECTORS PHILIPPINE ELECTRONIC INDUSTRIES, INC. REGINA BLDG., MANILA YOUR SECURITY SEAL! THE PHILIPPINE GUARANTY CO. FIRE, MARINE, MOTOR CAR, WORKMEN’S COM PENSATION, MISCELLANEOUS INSURANCE, FIDELITY, SURETY BONDS, MORTGAGE 3rd Floor • Insular Life Bldg. • Plaza Cervantes MANILA Telephone 2-81-12 132 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 WE HAVE WHAT YOU NEED! HARDWARE & MILL SUPPLIES Bristol Recording Instruments ★ Bailey Meter Company BOILER METERS FLUID METERS COMBUSTION CONTROL MULTI-POINTER GAUGES PRESSURE AND TEMPERATURE RECORDERS METERS AND CONTROL SYSTEMS ★ Pioneer Rubber Mills COPPER ftlNG TRANSMISSION BELTING COPPER QUEEN TRANSMISSION BELTING VICTOR CONVEYOR BELTS STEAM, AIR, AND WATER HOSE ★ Dolphin Leather Transmission Belting Dolphin Hydraulic Chrome Cup Leathers ★ Apex Bronze Bushing Stock Ohio Injector Valves John Finn Babbits Winslow Oil Conditioners Land Transportation (Bus Lines) By L. G. James Vice-President and Manager, A. L. Ammen Trans portation Co., Inc. THE “Eight-Hour Labor Law” affects many bus opera tors, particularly where schedules cover long-distance through-trips. City operators and provincial opera tors of short lines are able to adjust their schedules in such manner that their buses and operating crews are not re quired to be on the road in excess of the eight-hour daily maximum. However, schedules requiring more than 200 kilometers of daily operation usually involve more than eight hours of service-time. It is obviously impractical to provide relief-drivers and conductors at points other than terminals. Therefore, the operator so affected has no alternative other than to apply for authority from the Department of Labor to require more than eight hours of daily service from certain employees. As a rule, this authority is granted, with the stipulation that all overtime services rendered will be paid for under the overtime wage-provisions of the law. This places the larger companies at a distinct disad vantage. Their smaller competitors, not being affected by labor unions and being subject to a minimum of govern ment inspection and supervision, openly flout the require ments of the law and make no pretense of limiting the ser vices of drivers and conductors to eight hours daily, and they pay no overtime wages. An examination of the records of several of the larger companies operating in Luzon indicates average overtime payrolls amounting to P5,000 up to (in one case) P8.000 per month for the past six months. These represent aver ages of one centavo to one and one-half centavos per kilo meter of operation. Recently, the Department of Labor has been making an effort to publicize the requirements of the “Eight Hour Law”. It may be that the employees in the service of the smaller and “irregular” operators will thus become aware of their legal rights and that these operators may not con tinue to enjoy theillegal advantage that they have previous ly held over their larger competitors who meet the require ments of the law. W. P. Fuller Paints General Tires and Accessories ALL TYPES OF CONSTRUCTION^MATERIALS ★ SWITCHES THERMOPLASTIC 1 FUSES ! Trumbull Type “G” BUILDING WIRE General Electric ■ 2, 3. and 4-Pole ....... Standard and Non-Indicatlnft Renewable Links Heat-Resistant 15 Amp. to 600 Amp All Sizes ★ DISTRIBUTORS American Factors (phil.) Inc. Mary Bachrach Bldg., 25th St., Port Area, Manila I Tel. 2-65-72 j Base Metals By Chas. A. Mitke Consulting Mining Engineer THE Philippines is primarily known as a gold-producing country but it also has large, though but slightly developed base-metal resources. In Mindanao there is one of the largest undeveloped laterite iron deposits in the world (over 1,000,000,000 tons of 48% iron). Unfortunately, this ore is associated with small quantities of nickel, chrome, and manganese, and their separation constitute a metallurgical difficulty which has not as yet been surmounted. The Philippines also has one of the largest refractory chrome deposits in the world, amounting to 10,000,000 tons. This is at Masinloc, Zambales, where present production runs to 25,000 tons a month, all the ore being shipped to the United States. In 1941, approximately 140,000 tons of chemical and metallurgical chrome, running 48% or better, was mined and shipped to America. Some 80,000 tons of high-grade manganese was also shipped. Additionally, quite substan tial tonnages of low-grade chrome, manganese, and iron ores which could not stand the freight rate across the Pacific to the United States, were shipped to Japan. April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 133 The Philippines has four moderate-sized deposits of 60% iron, which, in 1941, were producing at the rate of 1,250,000 tons a year. At this rate, the reserves would last ap proximately twelve years. As iron ore brings only around $4.50 a ton, and the freight rate across the Pacific is $9 a ton, no shipments to the United States are possible. Up to the issuance of the 1941 order prohibiting all shipments to Japan, the Japanese market took all the Philippine ore. Since liberation, no iron ore, and no low-grade chrome, manganese, or copper have been shipped. All the mines are idle, and the mine workers are still waiting to get their jobs back. With the rehabilitation of Japan under way, SCAP is reaching out to get raw materials, such as coal and sugar, from the Philippines, and business men are being invited to visit that country with a view to starting the wheels of the export and import business turning once more. China is already shipping its iron ore to Japan, and it is understood that contracts have been entered into for the purchase of 250,000 tons of high-grade iron ore this year from Hainan Island. While the Philippine iron mines were badly damaged during the war, nevertheless there are no mills to be con structed, and the mines could quickly be brought into pro duction once the rehabilitation money is made available. The Philippine base-metal producers have made out their claims to the War Damage Corporation, and it is hoped that these can be quickly reviewed and an estimate made as to what may eventually be paid. Once this is known, the information could serve as the basis of credits to be utilized by the various companies in beginning their work of rehabilitation. If the low-grade base-metal mines could resume opera tion, at least 7,000 men would be employed regularly, and more than that number indirectly. In the early stages, extra forces would be required, such as gangs of carpenters to build housing quarters, bodegas, etc., while the miners would start the clearing and prepare the way for the surface and underground mining. Construction men would also be needed for the many bridges, wharfs, and other necessary structures which would have to be built. Large purchases of tools and supplies would be made, —rails, mine cars, locomotives, jackhammers, compressors, chum drills, diamond drills, bulldozers, power shovels, etc. There are two methods of finding new ore-bodies: one is to strike out in virgin territory and look for entirely new deposits; the other is to follow the ramifications of known ore into unknown ground. The latter is a practice followed the world over to prolong the life of mines. Here, in the Philippines, if the twenty-five high-grade iron, and low-grade copper, chrome, and manganese deposits were worked, it would no doubt stimulate prospecting to such an extent that the workers would soon find new ore-bodies to be added to the present list and brought into production. The known low-grade mines are not in one spot but are scattered all over the Philippines, and the revival of opera tions would bring payrolls and restore healthy and content ed communities in many areas. As before, these enter prises would promote the establishment of schools, churches, threatres, clubs, stores, transportation systems, as well as generally stimulate farming in the vicinity of the camps. Very few of such benefits are to be observed today. MERCHANTS CAFE ¥ WHERE THE BUSY MAN RELAXES AND WHERE ALL BUSINESS MEETS ON COMMON GROUND * 114 CALLE NUEVA'NEAR ESCOLTA Lumber By E. C. Von Kauffmann President, Philippine Lumber Producers' Association THE local market took a sudden drop during the last week of March. Red lauan and tangile were quoted at P200 to P210, apitong at P175 to P185, and 134 AMERICAN CHAMBER OF COMMERCE JOURNAL Ap-il, 1948 MENZI & CO., INC. GENERAL MERCHANTS ★ IMPORT EXPORT INSURANCE SHIPPING J. M.-MENZI BUILDING Corner Reina Regente & Soler Streets MANILA Tel. 4-79-29 (Private Exchange Connecting All Departments) ILOILO CEBU Your car needs conditioning too! Insist on PENNZOIL Motor Oil for the crankcase. PENNZOIL Gear Oil for transmission and differential. PENNZOIL Greases for chassis, wheel bear ings and other important points on automobile or truck. DISTRIBUTED BY : Marsman & Co., Inc PORT AREA, MANILA BRANCHES: CEBU, TEL. 2-79-33 ILOILO, DAVAO white lauan at P170 to P180. This was quite unexpected by most producers who had hoped that prices would remain well near the ceiling for some time to come; at least until the rainy season started. Some producers have stored their lumber in local yards in the hopes of a recovery in price. There has been a large amount of logs brought onto the Manila market and lumber arrivals have also been steady. Small producers and loggers take advantage of the market situation when prices are good. From nearby con cessions at a lower cost and with little investment, they can bring in large quantities of logs, or they can shut down temporarily when prices drop below their estimated margin for profit, without having to worry much about deprecia tion and overhead expenses for being temporarily shut down. This will happen every time and the whole industry is thereby affected. Copra and Coconut Oil February 16 to March 15 By Manuel Igual General Manager, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company SHORTLY after the middle of February, the United States copra market, which had purchased very little previously in the expectation of freer offerings, rea lizing that as large exporters were rumored to have rela tively heavy commitments to Europe, it might be very difficult to obtain supplies unless prices were increased, advanced price ideas to between $280 and $285 per short ton c.i.f. At these levels the market remained more or less steady up to the end of February with only moderate busi ness having been recorded. Subsequently, as a result of additional copra sales made to European destinations, coconut-oil buyers in the United States began to feel somewhat uneasy, and indicated willingness to increase their ideas of price. This in turn caused Pacific Coast mills to be more receptive to offers at higher prices, and during early March sales were recorded to the Pacific Coast at $295 c.i.f. Later the market oscil lated between $290 and $300, tapering off at the close with buyers generally expressing ideas at $285 per short ton, c.i.f. Pacific Coast. Considering the scarcity of supplies, we can say that a fair amount of copra was sold to Europe between the latter part of February and the closing date of this report. The War Department (not SCAP) was the accredited buyer of 6,000 long tons at $300 f.o.b. long ton. Other large expor ters, who had sold to Europe on delivered-weight basis, found difficulty in covering here on the same terms, and were forced to continue buying on f.o.b. basis, and during the first half of March, approximately 10,000 tons of copra were sold, mostly at $315 f.o.b. for March/April shipment. As of this date, it is reckoned that there is still limited in terest for European destinations at around $300 per long ton f.o.b., but sellers are not particularly interested at this figure, expecting higher prices as a result of a more ac centuated short supply. Preliminary figures on shipments during February, 1948, total 63,148 tons, of which 40,563 tons were shipped to the United States and Canada, 22,178 to Europe, and 407 tons to Balboa. Copra shipments during February, 1947, amounted to 91,851 long tons, or roughly speaking, 50% more than this year. A merican oil buyers’ unwillingness to follow copra prices " here, has been due to the fact that coconut oil has been maintained at a much higher level than other compet ing oils and fats. Buyers’ efforts to force coconut oil down April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 135 to the level of other domestic oils and fats have been unsuc cessful, and coconut oil, doubtless; as a result of decreased production, has remained independently strong. During the first part of this period, iarge oil buyers remained practically on the sidelines, and only a limited amount of business was reported to refiners and small buy ers, the market remaining between 20^ and 21^ for the second half of February. As a result of purchases of copra for European destinations, however, the market steadied somewhat early in March with sales at 22; * for nearby, 22-1/2^ for future. In general, it can be said that volume was negligible. During this period, oil buyers time and again reminded sellers here of the wide disparity between copra and other oil-bearing materials, and also of the fact that tallow— which ordinarily sells at but slightly under coconut oil— was consistently sold at 4 to 6 cents per pound less. Oil buyers also stressed the fact that despite low copra pro duction, the United States got along during the war with very much less coconut oil than will be available this year. It should be borne in mind that, unlike coconut oil in Europe which is mainly used for edible purposes, the bulk of coconut oil going into the United States is intended for the soap-kettle, and that there have been continuous re ports for the past two months that soap sales in the United States have been very disappointing, resulting in top-heavy inventories and price concessions. This ac counts for the reluctance on the part of the large coconut-oil buyers to meet the ever increasing asking prices. These are factors which to a large extent tend to restrain higher prices. Against this, however, the prospects of an early adoption of the European Recovery Program and the likelihood of the immediate export move ment of goods to needy countries will, to a greater or lesser degree, maintain buying-pressure and buoy prices up. It may also be admitted that markets have known about the Marshall Plan and the probable exports of various com modities, but the fact remains that only a few weeks ago markets suffered sharp price recessions in spite of export possibilities, apd, of course, the buying methods that are adopted in the purchase of needed commodities will have a bearing on price levels. Bearing this in mind, and with a view to implementing a measure of control, it has ap parently been agreed by the nations concerned to centralize purchase of Philippine copra in Washington through the Department of Agriculture. Doubtless, this could enable purchasers to synchronize prices more in line with the Amer ican market, — at the moment the only one available to Philippine producers. Which of these conflicting conditions will exert the most pressure, only time can tell. 'T'he expeller-cake market was completely dead. Buyers A on the continent withdrew completely, presumably as a result of shortage of dollars. Philippine mills were inclined to make price concessions, but to no avail, and it has simply been a fact that the respective governments did not have the necessary dollars or would not grant per mits for this purpose. Tn general-the local prices both for oil and copra followed closely export trends. Supplies were short, however, and the tendency was for local mills to overpay export equivalents for the small quantities available. This was particularly true in the Mapila area, where most mills faced shutdowns because of inability to buy copra on a profitable basis. Desiccated-coconut producers, in the face of strong competition within their industry, increased their prices to considerably higher than copra equivalents, which diverted a fair share of Manila supplies to this purpose. There was very little trading in local coconut oil. At the end of the period under review it was increas ingly evident that the beginning of the pinch in copra was in sight and that for the next few months supplies are bound to be short. American and European authorities, however, do not generally agree with local estimates of the decreased production, and in view of the fact that this year’s copra crop of the Philippines has been heavily over-allocated by IEFC, if the expected shortage becomes a reality, there will be a struggle for the copra available. This does not neces sarily mean increased prices, however, because lack of dollars by eager European buyers,- centralized buying control, lower levels of competing oils and fats, and the possibility of American price-control may play their part in holding prices down. We close this report, therefore, with the feeling that anything can and probably will happen to our copra and oil markets in the near future. TO. . . SAN FRANCISCO The Sunny Southern route is comfortably yours by Clipper . :----------------;------------•YOU RELAX in Pan American’s exclu sive Sleeperette * (no extra fare). Your roomy chair-lounge is foam-soft . . . adjusts at button-touch to a restful bed length. You arrive fresh for work or fim. •YOU GET traditional Clipper service — delicious food, assistance with all travel details, including passports. Manila Hotel • Phone 2-68-69 400 San Vicente, Manila • Phone 2-92-05 Quickest way to CALIFORNIA GUAM WAKE HONOLULU SAN FRANCISCO (or Los Angeles); Fligbtr every Mon.,Tuei^TburtH Sub. Pm Amlrlcm World Airways *TmJc Mari,PaeAmtricaaAlneaft,lue. 136 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 WHEN YOUR CAR GETS BUMPED IN... LET US BUMP IT OUT AND MAKE IT LIKE NEW AGAIN | Our body and fender specialists and refinishing ex- ! perts will “iron out” all body and fender dents and | make your car look new again. Original factory colors : are matched to harmonize with balance of car. . See i us for prompt, efficient service and reasonable prices, j MANILA TRADING & SUPPLY CO. “After We Sell, We Serve” Manila THE MANILA TRADING TAKES YOU “OUT FRONT" — WITH FORD EVERY THURSDAY, 7:00-7:30 P.M. OVER STATION KZRH. Will Reddy Stay In The Lead? Behind your electric switch a race has been going on—a race between supply and demand of electricity. The post-war use of electricity has been terrific. It has far ex. ceeded the pre-war peak. To meet this demand facilities have been added as rapidly as equipment could be secured. But there’s the rub—“as rapidly as equipment could be sccuted". Shortage of materials still delays us. And we are doing all we can to expedite'shipments. It’s a tight race—but Reddy is still in the lead. Keep him there by economizing in your use of electric current. MANILA ELECTRIC COMPANY 134 San Marcelino Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the calendar month of February, 1948. The first half of February saw declining copra and nut prices. Nut prices were in close parity with copra and continued that way until copra prices rallied. After the middle of the month, copra approached former highs of January, and scarcity of nuts boomed nut prices to record highs, much above copra equivalent values. Raw-nut prices soared on the strength of scarcity and highly competitive purchasing by all desiccated-coconut factories. The supply during the latter part of February was sufficient to operate the industry at approximately 70% capacity. Typhoon damage of December, together with seasonal low yields, are responsible for the present shortages. Indi cations at present show this situation may continue through March and April. An interesting sidelight of this competitive situation is that nuts are being brought to factories in large quanti ties from greater distances than ever before, many coming from Mindoro, Camarines Sur, and Paracale. The Red V Coconut Products Company, a Smith, Bell & Company entity, is making headway with the in stallation of a factory in Mindanao. United Coconut Pro ducts has changed its name to Standard Coconut Corpora tion and now operates its own factory in Gumaca, Quezon province. The Blue Bar Coconut Corporation is rushing its plans for operation in Zamboanga, while other companies are considering expansion plans in the southern islands. Following are the shipping statistics for February, 1948: Blue Bar Coconut Products Co....................... 1,240,800 lbs. Cooperative Coconut Products......................... 520,620 ” Franklin Baker Co................................................ 3,821,280 ’’ Isabelo S. Hilario.................................................. 297,100 ” Peter Paul Philippine Corp................................. 1,875,700 ” Philippine Desiccated Co......................................Shipped by Blue Bar Red V Coconut Products Co.............................. 794,800 lbs. ’Standard Coconut Corporation........................... nil ♦ New name for United Coconut Products; factory still under construction Manila Hemp By H. Robertson International Harvester Company of the Philippines THE period under review covers the month of February and March up to the 15th. Our report for January indicated that hemp in the SWAN, CULBERTSON & FRITZ BROKERS IN LOCAL AND FOREIGN SECURITIES Member—Manila Stock Exchange' New York — Son Francisco Correspondents — Honolulu — Uruguay Shanghai — Hongkong 701 S. J. WILSON BLDG, 143 JUAN LUNA TELS P'74’55 TELS’ J 2-80-53 April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 137 Davao District closed on a very weak note, which carried through most of the month of February in sympathy with that sounded by other world commodities. Sellers in New York the first week were offering without success Davao F at 28-1 '2£, I at 28-1/8^, JI at 27fS and G at 24-7/8^ per pound landed at New York. Quantities were increased as the week progressed, and at the end, buyers were requested to make bids. Buyers remained completely disinterested, and prices continued nominal until bids were opened by the U. S. Na<zy on February 18. The successful bidder sold 2500 bales of Davao hemp at a price estimated at Davao I, 26^ and Davao JI, 25^,—a decline of approximately two cents a pound for the first two weeks of the month. In the local market for Davao, buyers acted with great caution and a small business was done on a rapidly-declin-. ing market. Exporters’ ideas on Grade Davao JI by the middle of the month were on the basis of P50 per picul loose, ex bodega,—a decline of about P7.50. Prices gradually declined further, with some business being done on the basis of Davao JI P47.50 by the third week. During the period, there was considerable discussion between SCAP officials and the local trade on the subject of purchases of Manila fiber for Japan. On February 24, SCAP officially announced that bids would be requested on March 2 for 6,000 bales of Davao hemp and 9,000 bales of non-Davao hemp, or a total of 15,000 bales, for ship ment March 15. With this announcement, some Davao ex porters raised their buying ideas to Davao JI P48 - P49 per picul. By the end of February, buyers were freely bid ding Davao JI at P50, with very little if any business being transacted due to dealers holding back. Bids for Japan were opened by SCAP March 2 as sche duled. A total of about 30,000 bales were offered by the trade, of which SCAP accepted approximately 18,000 bales. Prices of various exporters were at quite a variance. Davao JI, for instance, was offered at P121 per bale f.a.s. vessel, to as high as P130, both of which bids were accepted. This situation ordinarily would have firmed up the market con siderably were it not for the fact that American buyers con tinued to remain on the side-lines. The local market continued at a stalemate due to per sistent holding by dealers of the small supplies of loose hemp available. Some small business was done at Davao JI P51.00 to P51.50. On March 10, SCAP announced further bids for Manila fiber to be opened March 18. In this instance, grades are specified but the quantity is undetermined, SCAP reserv ing the right to accept any and all bids at its discre tion. At the close of this period, March 15, the market is purely nominal and business is at a standstill. The non-Davao areas are becoming more and more important in the hard-fiber situation due to the gradual decline in production in Davao. Non-Davao JI opened the period at a nominal price of P43 per picul and gradMOTOR SERVICE CO., INC. ★ LUZON STEVEDORING COMPANY, INC MANILA * BABY BROWNIE SPECIAL The smallest of the Brownie family, this compe tent camera produces excellent pictures, 1%X2J^ inches, on 127 Kodak Film—big enough to mount without enlargement. It has fixed-focus lens, plung er shutter release, enclosed eye-level finder, plastic body. An excellent camera for beginners of all ages. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES ?7.00 plus P.44 postage At Your Kodak Dealer’s 230 13th ST., PORT AREA TEL. 2-65-27 KODAK PHILIPPINES, LTD. 104-13th Street Port Area Manila 138 AMERICAN CHAMBER OP COMMERCE JOURNAL April, 1948 Looking for Quality? Jfamilton - 'TSrown_> is the store that can give it to you in £Men’s SHOES SHIRTS NECKTIES BOUTONNIERE SETS HANDKERCHIEFS SLACKS SPORTSCOATS JACKETS PAJAMAS ROBES UNDERWEAR BELTS WALLETS TIE CLIPS KEY CHAINS SWIMTRUNKS PLAYSHORTS SUSPENDERS SWEATERS AND MANY OTHERS GREAT EASTERN HOTEL BLDG., ECHAGUE To place YOUR Advertising Message Before MORE people With a CLE ARER voice KZRH ‘THE VOICE OF THE PHILIPPINES” NOW * ually declined to P36. On the other hand, J2 dropped drastically from P32 to P22, due to the entire absence of American demand. The situation was saved by the buying of SCAP for Japan. At this writing, JI has advanced to P40, and J2 to P24, with the tendency upward. 'T'he production figures of the Fiber Inspection Service reveal an alarming situation in the Davao area. Out of a total of 71,125 bales certified during February, only 18,027 bales were produced in Davao. Albay was next with a total of 13,827 bales. Leyte also is fast gaining pro minence, with a total of 10,144 bales produced. This brings the total production for the first two months of the year to 130,461 bales, against 104,596 bales for the same period last year. This increase comes entirely from the nonDavao areas, especially the Bicol Provinces, where the December typhoon forced the rapid stripping of fallen stalks. While the effects may still be felt during March, it is the consensus that by April production will be con siderably smaller. Sugar S. Jamieson THE counter-offer which the U. S. Army was expected to make for the remaining export sugar available, did not materialize and further negotiations have been dropped. On February 26, the U. S. Secretary of Agriculture announced that the sugar quotas for United States con sumption for the calendar year 1948 were being reduced from 7,800,000 short tons to 7,500,000 tons, allocated as follows: Area Revised Quota Change from (short ton) January Quotas Cuba.......................................................... 2,943,509 (—) 295,920 Domestic beets........................................ 1,847,738 — Puerto Rico............................................. 934,134 — Hawaii...................................................... 900,000 — Mainland cane......................................... 513,260 — Philippines................................................ 290,000 — Full-duty countries................................. 65,200 (—) 4,080 Virgin Islands.......................................... 6,159 — 7,500,000 (—) 300,000 This caused a temporary advance in the New York market, but thereafter prices steadily declined to 5.35$6 on a dull and inactive market. The market became more active shortly before Easter; prices improved and some parcels of Philippine export sugar were sold at around 5.50^, New York basis, for April May/June shipment. The present indications are that further sales could be made at this price. 650. FIRST on the dial! 10,000 WATTS MANILA BROADCASTING CO. 7th FLOOR INSULAR LIFE BLDG. * Effective April 18, 1948 WHEN YOU DESIRE QUALITY ELECTRICAL WORK CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85 April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 139 Quotations on the New York Sugar Exchange for the period from February 11, 1948, to March 15, 1948, under Contracts Nos. 4 and 5, ranged as follows: Contract No. 4 (World Market) High Low Close May, July Sept. Dec. March, 1948.. 1949.. 5.11 5 10 5.11 4 80 4 73 4.63 4 90 4 89 4 90 4 80 4 50 4 47 4.90 4 89 4.90 4 80 4 52 4.47 Sales 75,350 tons 21,960 ” 25,200 ” 750 ” 5,650 ” 1,250 ” 130,160 Contract No. 5 Total . High Low Close Sales March, 1948. . . . .. 4.60 4.60 4.64 100 tons May. 9r . . . . .. 4.75 4.10 4 10 10,150 ” July . . 4 80 4.14 4.14 20,740 ” Sept. ” . . . . .. 4.77 4 12 4 13 9,300 ” March, 1949 . . .. 3 95 3 80 3.80 300 ” May, 3 80 3 80 3.80 150 . ” Total............................................................ _40,740 tons Following the Association’s representations to the Minister of Commerce of India, allocations of Fiji cloth for bags for the 1948-49 crop have been made, sufficient to cover all orders placed to date by local importing houses with their Calcutta representatives. These allocations cover a substantial portion of the industry’s require ments and it is hoped that further allocations will be made later in the year for the remainder. BABYand JUNIOR foods CONNELL BROS. COMPANY Textiles By James Traynor TEXTILE arrivals during the month of February were estimated to be slightly smaller than those of January. Arrivals from Shanghai were also slightly under those of January. The softening of local prices noted during January continued during February and in some grades fell below replacement. Importers report smaller sales all along the line even at reduced prices. New bookings with American mills fell considerably below those of January and it is ex pected that bookings will continue to be small for the next one or two months. Some reduction in prices was reported from New York on staple lines of about 5%. American mills continue to be well backlogged with orders so that new bookings cannot be made for shipment in under less than three to four months. MANILA SHIPYARD, DRYDOCK AND ENGINEERING CO. OFFERS COMPLETE SERVICE REPAIRING, BUILDING AND OUTFITTING ALL TYPES OF VESSELS. FLOATING DRYDOCK AVAIL ABLE AT ALL TIMES. 250 TONS CAPACITY. Office: Room 507 Insular Life Bldg., Manila Phone: 2-89-06 140 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 BOTICA BOIE Philippine-American Drug Co. Founded 1830 * Drugs Chemicals Pharmaceuticals Botanicals Biologicals Mining and Laboratory Supplies Hospital Equipment Surgical and Dental Supplies CHAM SAMCO & SONS, Inc. Direct Importers of CONSTRUCTION MATERIALS BUILDERS HARDWARE PLUMBING SUPPLIES PAINTS and OILS SHIP CHANDLERY MINING SUPPLIES, ETC. 300-308 Sto. Cristo Manila, Philippines Tel. 2-81-72 Legislation, Executive Orders, and Court Decisions By Robert Janda Ross, Selph, Carrascoso Janda DURING the past month Congress has passed the fol lowing four bills: House Bill No. 686 provides for a procedure to be followed by corporations for the issuance of new stock certificates in lieu of those which have been lost, stolen, or destroyed. The bill calls for the filing with the corpora tion, in triplicate, of an affidavit prepared by the owner of the certificates in which he describes the same and the circumstances of their loss, theft, or destruction. The corporation, after verifying the affidavit, must publish notice of the claim in a newspaper of general circulation at the place where the corporation has its principal office. Six months is allowed within which to present adverse claims, after which time claims are barred. If no claims are presented < the corporation must issue new certificates to the claimants. House Bill No. 1483 provides for a census of the Phil ippines to be taken not later than July 1, 1948, and appro priates P6,500,000 for the cost. House Bill No. 1626 provides for the redemption of pre-war treasury certificates, and an another Bill appro priates P 100,000 to defray the expenses of participation of the Philippines in the Olympic Games. A large part of the legislative program of the Adminis tration is, at this writing, yet to be introduced. The im portant tax amendments are still subject of extended ad ministrative discussion and no copies of the proposed bill have been made available to the public. The Administra tion has, however, introduced its Central Bank Bill (House Bill No. 1634). At a hearing on this bill, representatives of private banks in the Philippines suggested certain changes and the matter is still subject to committee action. Other Chambers of Commerce The Manila Chamber of Commerce THIS international chamber of commerce, one of the oldest in the Philippines, has now been re-organized and has re-opened its office at 409 Chaco Building. Founded at the time of the Spanish-American War by the British merchant-community of Manila, it has often erro neously been called the British Chamber of Commerce, but actually it has always been international in character. Membership now includes American, Philippine, Swiss, Netherlands, Spanish, and Chinese firms, besides British. April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 141 It was originally founded largely in the interests of the ex port trade of the Islands, but from an early date its activities covered imports, shipping, insurance, etc. Like many other concerns, it suffered serious losses in the war. Files and records were practically all destroyed, and the membership was depleted. Since 1945 the Chamber’s activities were carried on mainly through the offices of its President. Now, however, it has about 50 member firms and the hope is that with re-organization, membership may be increased to pre-war numbers. For the current year the President is Mr. S. Crawfurd of the Shell Company of Philippines, and the Vice-President is Mr. N. Linley, of Messrs. Fred Wilson & Company. T. J. Harrington Philippine Chinese General Chamber of Commerce OFthe 10,000 booths and stalls in the 13 public markets of Manila 1,435 were up to lately occupied by Chinese nationals retailing the daily necessities. In these stalls and booths, Chinese vendors had been selling food stuffs not only for years but for decades. Out of their earnings, they made a living,—some comfortably, most of them making just enough to keep body and soul together. Certainly, these stall-holders did not consti tute the type of businessman who becomes a millionaire, however enterprising he may be. These are the Chinese whom their Filipino competitors have succeeded in ousting from the public markets by virtue of Republic Act No. 37, otherwise known as the Market Stalls Law, and Municipal Ordinance No. 3051 which deprived of their means of livelihood some 15,000 persons directly dependent upon this modest business. Two typical examples of these stall-holders are Mrs. Yee Shi, a widow, 46 years old, who had occupied two stalls in the Divisoria Market from June, 1932, to the time she was ejected. For many years before that time, her deceased husband legally held the same stalls. Besides herself, Mrs. Yee supports five children from her earnings. The other stall-holder is or was Co Hong, 49 years old, who had been occupying his stalls at the Quiapo Market since 1916. He supports a Filipina wife and four children by that wife. With their ousting from the public markets, former stall-holders and their families are very seriously affected. But so is the average Manila housewife, who no longer finds her favorite "suki” at the market, and as her family lives on a day-to-day basis, she is already beginning to experience how increasingly difficult it is becoming to makd both ends meet. The prices of the commodities she used to buy INDUSTRIAL SPARE PARTS STEEL CASTINGS SERVICE i I C. M. LOVSTED & COMPANY i i Manila Cebu 902 Misericordia St. Gen. Echaves & Tel. 4-76-43 Sikatuna Sts. AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR H. HENDERSON President Sixth Floor, Wilson Bldg., Manila Telephone: No. 2-64-68 Cable: “Underiters” Managers in the Philippines for:^ COMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN’S INSURANCE COMPANY THE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY THE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS’ INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY — AUTOMOBILE - MARINE — REINSURANCE The BACHRACH MOTOR CO., INC. PORT AREA, MANILA ★ NASH—ENGLISH AUSTIN AUTOMOBILES ★ WHITE-FEDERAL TRUCKS -----------------OPERATING----------------RURAL TRANSIT PASSENGER—FREIGHT SERVICE BETWEEN MANILA—APARRI AND BMC TAXI CABS 142 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 FOR BETTER SERVICE-Call 2-77-03 ALLIED Brokerage Corporation Manila Port Terminal Building Port Area Documents may be delivered to our repre sentative in the branch offices of MACKAY RADIO & TELEGRAPH COMPANY, Plaza Moraga and Trade & Commerce Building. Individual attention rind competent super vision given to your customs brokerage re quirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING r A RIF FINANCIAL SERVICE ★ k ★ Mail and Cable remit tances to most parts of the World Foreign Collections Documentary Credits ★ Travelers Letters of Credit Drafts Travelers Cheques Money Orders ★ ★ ★ TRAVEL SERVICE ★ ★ Air Tickets Steamship Tickets Train & Pullman Hotels & Resorts ★ ★ ★ At Ticket Counter Rates Information on passports and assistance with other travel requirements FOREIGN SHIPPING SERVICE Merchandise of every description, personal effects and baggage accepted for foreign shipment in accordance with existing regulations of various countries. Protect your travel funds with American Express Travelers Cheques THE AMERICAN EXPRESS CO., INC El Ho&ar Filipino Bldg.—Juan Luna St.—Tel. 2-71-56 General Foreign Agents NEW YORK CENTRAL RAILROAD J in the Divisoria or other public markets of Manila have gone up since the Chinese stall-holders were replaced by her own countrymen. Coming as she does from either the middle or the working class, centavos count, and when she patronized the alien dealers when they were still in business in the markets, she had no alternative. In the retail business, prices and services are fundamental. The storekeeper who can offer the lowest prices and the best service to customers get the business. Those who have read Adam Smith’s “The Wealth of Nations” agree with the great economist on his fundamental proposition that “it always is the interest of the great body of the people to buy whatever they want of those who sell it cheapest.” If the former Chinese stall-holders were more pros perous than their Filipino counterparts in the public mar kets, this was because the Chinese sold their commodities to the public at lower prices and rendered better service to their customers than their competitors did. It is wrong national policy to sacrifice public interest merely to accom modate a thousand or fifteen hundred persons who covet the Chinese-occupied stalls in the public markets. The step affects not only the pockets of the people who cannot afford high prices, but also lessens the quantity and quality of food that should comprise their daily diet. We hear a continuous clamor for lower prices of prime necessities, but what ac tually is being done is to encourage the rise of prices by eli minating factors which would tend to keep them down. The Chinese here have not in any manner disturbed the Philippine economy so as to arouse justifiable alarm among Filipinos. On the contrary, they have constituted a major factor in the promotion of Philippine trade and industry, without interfering in the political life of the people with whom they have successfully lived for centuries. The Philippine Chinese have immigrated into this country not only to earn a temporary living but also to find homes here. They are easily assimilable and, generally, the second generation of Chinese here are almost as Filipino as the natives. In other words, the Chinese who are making a living through the hospitality of the Filipinos desire to live and die in their adopted home. They meet their obligations to the Government and to society; they help build the coun try and develop its resources; extend the nation’s commerce and strengthen its finances and economy. That is so because they are a part of the population, despite the difference in the pigmentation of the skin. Under that skin, the Chinese possess all the intrinsic characteristics of man kind. Under the doctrine of common subjection to the same law and the same government, and the coming universal brotherhood of man, we appeal to the Filipino people foj justice, equality, and fraternity. Yang Sepeng, Executive Secretary. AGENCIES CHARTERS SALES TELEPHONE 2-80-39 American Steamship Agencies, Inc. MANILA, SHANGHAI, SINGAPORE, GUAM CABLE ADDRESS: “AMERSHIP” 314 MYERS BLOB. PORT AREA MANILA April, 1948________________AMERICAN CHAMBER OF COMMERCE JOURNAL_______________________ 143 Philippine Government Corporations From an Official Source FEBUARY 27—Announced that President Manuel Roxas has approved the reduction of the selling price of P75,000 forF vessels by 15% if those past buyers who have balances outstanding will pay in full. V. Fragante, Manager of the People’s Homesite and Housing Corporation, replying to a complaint made by cement-block manufacturers declares that the block factory established by the Corporation was established primarily to meet its own needs and those of the Govern ment in the construction of government buildings, and that only a “very small amount” has been sold to private builders so far. He states that the Corporation buys its cement from the Cebu Portland Cement Company at the regular price for cash and pays taxes like any private block manufacturer. The prices it has fixed “as they are at present” because this Corporation “was not established to make big profits but to aid those in need of decent hous ing.” “It is unfounded to attribute to the Government any intent to stifle or kill private initiative or enterprise by the operation of our cement-block factory and the sale of its products”. March 4—The National Rice and Corn Corporation announces that according to a cable received from the Philippine Embassy in Washington, 15,000 tons of rice from Siam are coming to the Philippines as an emergency allocation. President-Chairman S. de la Cruz states that he believes this allocation “together with whatever stock we have at present, will be sufficient to meet our require ments until August 31, 1948”. March 6—With respect to the provisions of the Philip pine Flag-materials law, which grants an allowance of 15% to Filipino bidders in excess of the lowest bid offered by aliens, the Government Enterprises Council is reported to have approved a suggestion from the Control Committee (previously approved by President Roxas) that in all calls for bids for supplies, materials, and equipment,government corporations and the Government itself specify in their calls for bids that they will receive such bids “only from producers, bona fide dealers, direct importers, or manufac turers’ agents, and will consider as irresponsible bids those offered by persons or entities not dealing regularly in the goods offered”. The Government Enterprises Council also approves a recommendation of the General Manager of the Govern ment Service Insurance System to propose a bill to Congress which would place the property insurance of the Govern ment on a sound actuarial basis. The bill would provide for compulsory insurance of government property, optional insurance of residential buildings owned in fee simple by officials and employees of the Government, insurance against destruction or damage resulting from typhoons, earthquakes, etc., and an equitable distribution of surplus over the required reserves. The Control Committee recommended that the “catastrophe” insurance features be provided for on a condittional basis to take effect only when authorized by the President. The President sug gests that the bill include all government corporations. President Roxas approves the purchase by the Cebu Portland Cement Company of 1,000,000 bags of cement at $1.61 a bag from a Shanghai firm. Manager Eduardo Taylor, of the Cebu Portland Ce ment Company, issues a statement on the cement-supply situation, running, in part, as follows: The Company’s plant at Naga, Cebu, produced be fore the outbreak of the war some 4,000,000 bags annually; production ran to 1,417,253 bags in 1946; 3,140,548 bags in 1947. During all of 1946 and most of 1947, production exceeded demand. “Toward the latter part of 1947, starting in November, the local demand for cement began to rise sharply and continued to increase by leaps and bounds to the point where the demand is now almost twice the production-capacity of the cement plant. . .The great increase in consumption. . .is attributable to the letting of a considerable num ber of public-works contracts and to the very brisk construction of private commercial buildings and residences. The provincial demand throughout the Philippines also began to assert itself, especially inhavocstricken areas such as Iloilo, due to the recent earthquake, many pla ces in the Philippines due to the recent typhoons, as well as fire-dam aged towns such as Tacloban and Dagupan. The Metropolitan Wa ter District has been rushing the construction of its new aqueducts to prevent a water-shortage in Manila; the Philippine Army has been requisitioning large quantities of cement... Foreseeing that the capacity of the Cement Company would not be able to cope with the demand for reconstruction, rehabilitation, and development purposes through out the Philippines, the management of the Company had long urged the expansion of the manufacturing facilities of the Company in Cebu. Shortly after President Manuel Roxas assumed office, approval of the expansion program was obtained with an appropriation of ?5,500,000. Orders for the necessary machinery and equipment were immediately placed with manufacturing firms in the United States, but due to the enormous back-log of orders in the hands of machinery manufacturers in the United States and the steel-shortage there, the machinery and equipment already purchased have not as yet all been delivered. It is expected that the cement plant in Cebu will be able to operate at twice its present capacity, namely 20,000 to 24,000 bags daily sometime toward the latter part of this year.Construction work in the cement plant in Cebu is in progress 24 hours a day. In the meantime, while the present shortage exists... the Company is doing its best in the proper allocation and sale of cement. Projects of public benefit and importance are naturally being given the highest priority, although at the same time the needs of other consumers, be they large or small, are being served as fast as stocks will permit. No requests for cement have been or are being denied, although a customer can not obtain his cement on short notice and is often required to wait. . . for days and sometimes weeks. . . Although not properly equipped for the retail sale of cement (since such sales were formerly handled through dealers), the Company in order to avoid any profiteering in this product, has been and is handling all sales, whether large or small. .. The present shortage is expected to be of very short duration, and, with the shipments of imported cement due to arrive very shortly, it is expected that the Company will be able to take care promptly of all orders received.” __________ Office of the President (Continued from page 122) March 16 — The President orders the Surplus Property Commission to reserve all steel plates for the use of the Government. At a Cabinet meeting he asks Secretary of Agriculture M. Garchitorena to study the feasibility of increasing the production of palm-oil, now selling at around P500 a ton; he suggests that 10,000 hectares of land in Mindanao might be set aside for the purpose. March 19 — The President by Executive Order fixes government office-hours to from 8 in the morning to 2 o’clock in the afternoon during the period from April 1 to June 15. The Cabinet approves Philippine participation in the Milan (Italy) Fair to open on April 12. Under-Secre tary C. Balmaceda and Judge Guillermo Guevara (recom mended by the Philippine Chamber of Commerce) will be the government representatives at the exposition. March 23—Vice-President E. Quirino and Ambas sador Emmet O’Neal sign an agreement based on the Ful bright Act, the agreement providing that ?4,000,000 of surplus property proceeds will be used during the next ten years in financing the employment of American educa tional specialists and instructors and the transportation expenses of Filipino educators and students sent to the United States. A foundation to be known as the U. S. Educational Foundation in the Philippines will be set up to administer the program, with the American Ambassador as honorary chairman. April 2—The Philippine Government extends recog nition to the Government of Siam. The President asks the Cabinet to study ways and means to facilitate the release of funds accruing from the amounts being received from the War Damage Commission to be used for public works projects. He asks also that plans for the new capitol site be rushed. 144 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 why pay Mor®7 The" “LET YOUR HAIR DOWN” Column • Welded Steel construction throughout for maximum strength and rigidity. • Lifetime quality finish. Top-grade Oven baked enamel. • Positive Finger Release Compressor. • Instant Trigger Action Drawer Release. Philippine Distributors: F. H. STEVENS & Co., Inc. TeL: 2-86-13 Office Equipment Department El Hogar Filipino Bids. Subscribe to the JOURNAL to keep your files complete. 'T'he editor had a letter recently from Mrs.Gertrude C. Hornbostel, who, after surviving Santo Tomas, got into another place some people will think is not much better, — the U. S. Marine Hospital at Carville, Louisiana. She wrote, in part: “It was with great pleasure that we received our first copy of the American Chamber of Commerce Journal from Manila through Earl [her son], but in this place I am busier than I’ve ever been before in my life. There is a continuous stream of correspond ence from my own and my husband’s relatives, friends from Santo Tomas and Manila ge nerally, perfect strangers who have heard about my beinjj, here and who just have the urge to write, others who want information about this disease, writers, movie people, newspaper correspondents, nurses, doctors, charlatans, and they all, or almost all, should be answered if we want to get anywhere in our fight. I write an occasional article for the Star, our patient paper, with a subscrip tion list of 6500, and also do the proofread ing. All this is done under handicaps and we are all amateurs. The boy who runs the press is deaf and dumb. The editor is a Jew, — used to be an actor, who is blind and whose fingertips are gone. He came here 17 years ago, during the chaulmoogra-oil era, when this place was a pest-house. During the last few months he has at last had a few negative tests. It takes 12 consecutive monthly tests for a discharge. I have had only 8 ‘ rare’ tests so far, but they have all been in succes sion, and that is good from all I can make out. I look healthier than many supposed well people and if it were not for the fact that I am suffering from constant vertigo, brought on by 9 months intensive treatment with streptomycin daily, I could say that I feel fine. I have not had any of the miserable stuff for many months, but the damage ap pears to have been done and although it is better than it used to be I have a feeling that it will never go away entirely and that it is going to be slightly embarrassing when I am discharged because people may think I am spifflicated. Besides the streptomycin I took before, I have been taking diasone daily since the day after my arrival. This is taken by mouth and causes anemia in most people, including myself, for which, however, we compensate with ferrous sulphate and liver by mouth and daily injections. I feel like a pin-cushion. During the streptomycin course I was having 8 shots of that and one of liver daily. Now I take only liver and thiamine. Others get promin, intravenously, and still others take promizole by mouth. Now they are looking for volunteers for another sul fone,—promicetin. This, after Santo Tomas, is not very pleasant, but we bought a little cottage on the grounds and my husband is allowed to spend 12 hours with me every day and we can have all the visitors we want during the daytime. I also have a little Scottie for company. “I am going to take out a subscription for you (of the Star) and will send you some very potent back copies. I hope you will like them and we both would love to hear from you if you can spare us the time. The pre sent Chamber of Commerce Journal is a wonderful improvement over the old one and the articles and editorials are fine. There are about 20 Filipinos here who are always delighted to have my copy when I am fin ished with it. One of them in particular, who is half-Visayan and half-Moro, reads it apparently for business reasons. “We do not intend to ever return to the Philippines as we don’t think that either of us would do so well there now. My husband has had an operation for an infection of the intestines, and I think I will do better with a little cold weather once in a while. On our way to the West Coast in 1946, we had the pleasure of meeting your brother for a few minutes, he coming to the train to see us as we had a short wait in Denver. He looks very much like you, — but does not have that perfectly beautiful Shakespearian skull. [And some people just call me bald-headed, said the editor.] “I will be here at least another year and a half. If by that time I am not discharged, I may go to New York and take my treat ments there. New York laws are such that there are no restrictions at all outside New York City, and in the City, ‘no nursing of the sick, of children, and no food-handling’ —that is all. One has to report for a check up every 6 months, but that is nothing. . . “With very best regards from both my husband and me, “Sincerely, etc.” The "fight” Mrs. Hornbostel alludes to was that launched by Mr. H. G. Hornbostel to bring about a better official and public attitude toward persons suffering from "Hansen’s disease”. According to a writer in the Star, the socalled "Hornbostel case”, which made the pages of newspapers throughout the country, — “has definitely ‘helped’; in fact, we believe that the Hornbostel case, coming at a most opportune time, has done more to advance public understanding of Hansen’s disease than the usual run of educational publicity could have done in a decade or more. . .” A letter from Mr. C. W. Rosenstock, addressed to the editor, entering a subscription to the Journal for Thos. D. Stevenson & Sons of San Francisco, read, in part: “The Journal is better [twice underlined] each issue. You deserve great credit for pro ducing something the entire community is glad to have. If you continue putting your self into the Journal,as you are doing, it will soon be+the main source of commercial news in this country. Good luck to you!” ♦President Stevens, when he saw this, said: ‘What does ‘C. W.’ mean by this‘will be’ and ‘soon’? By the Great Horn Spoon, it is I” April, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 145 Again the editor would say that the credit is not his alone. At best, his position is something like that of the conductor of an orchestra; when the applause comes at the end of a piece, he bows and gestures to the members of the orchestra. Then, as it should, the big applause comes. Speaking of my putting myself into the Journal, said the editor, here is something along that line, but not in the way Mr. Rosenstock meant it, — though it may have its uses: “Tust what is a ‘chamber of comJ merce’, dad?” the editor was asked by one of his young daughters the other day at supper. ‘‘Why is it called a ‘chamber’?” She grinned indelicately. The editor snorted and said hastily: ‘‘Why, ‘chamber’ means ‘room’, of course, from the French, — and not only a sleeping room, but the room of a judge or a lawyer, and the room where a conference or assembly meets. ‘Chamber’ is also the official name of some legislative bodies, such as the Chamber of Deputies of France and the First and Second Chambers of the Netherlands. In the United States, the designation, 'chamber of commerce’ has been widely adopted by associations of merchants, manufacturers, and other business men.” The young people at the table looked a little'overwhelmed, but one took a swallow of water and bravely asked, ‘‘Is a chamber of commerce a part of the government?” ‘‘Didn’t you learn something about that at school?” asked the editor. ‘‘My goodness! No, of course not, although before the war Mussolini and the fascist leaders in some other countries incorporated such organiza tions into their governments. . . ‘‘Properly, a chamber of commerce has for its purpose the promotion and protection of the business in terests of its member, although it may also devote itself to furthering the general social and civic interests of a community, as many of such organizations do.” The editor clearly saw on the faces around him that they had had enough, but what father could pass up such an opportunity to instruct his offspring in right thinking? So he went firmly on: ‘‘Under a democratic form of gov ernment, business men have as much right as other citizens to seek to guide government policies in their own interests, but, as they make up only THAT WEARS LONGER THAN PREWAR TIRES! Long-wearing tread—Its wider, flatter tread gives greater protection against skidding. 35% Stronger ... The new tire has more and better cords, which give a tire body that is stronger, wears longer. Over 16,800,000 miles of tests under all conditions helped prove the new tire wears longer than prewar tires. B.F. Goodrich FIRST IN RUBBER 146 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1948 EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines FERN LINE To and From North Atlantic Ports Gulf Ports Philippines EVERETT ORIENT LINE Serving the Orient PHIL. STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. Overseas j J" J™ * | 2-87-92 Tel. Interisland 2-63-82 Tel. Executive 2-97-38 |—FILING CABINETS—v (liMIMW STEEL FILES The BEST there is 673 Dasmarlflas Tel. 2-98-16 one class of citizens, they have no right to seek to control the govern ment or to take an actual part in the government except as honest voters at election time. They may petition the government, they may call certain facts, as they see them, to the attention of the government, they may interest themselves in the passage of certain laws or in their amendment or abrogation, — all this is honest and above-board, and no one can reasonably object to that any more than they could object to other groups of citizens, such as farmers pnd laborers, doing the same thing. That is one phase of demo cracy in action. Attempts at coerc ing the government or at corrupting government officials, is, of course, bad in itself and bad for the whole community or country. . .” “I suppose chambers of commerce are pretty important, aren’t they, father, even though they are not part of the government?” “You are right there, son,” said the editor. “They are or ought to be. As a matter of fact, the opinion of the directorate of a chamber of commerce is often asked for when new laws or regulations are being drafted by officials of the govern ment or by members or committees of the legislature. That, also, is not only entirely proper, but wise. “Chambers of commerce and other organizations of industrialists and business men, you will understand, represent to a large extent the mate rial interests of the whole community or country as well as their own indi vidual interests. And, as you rea lize, sitting around this table, and living in this house, our material interests are very important, if not all-important. There are also politi cal interests, cultural interests, moral interests, and these are looked after more directly by other social groups, but all human interests are at bot tom material, just as a man is, first, a body of flesh and bone, an organism that must have food and shelter. Industry and business concern them selves chiefly with these basic needs of man and society, and organiza tions which represent the industrial and business interests of a country are rightly considered important, —wouldn’t you think so?” “Are you important, grandpa?” a little voice piped up. “. . .THE FIRST AMERICAN CHAMBER OF COMMERCE WAS FOUNDED IN NEW YORK IN 1768, EIGHT YEARS BEFORE THE DECLARATION OF. . .” But the editor’s drone was over borne. C. F. SHARP & COMPANY, INC. 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