The American Chamber of Commerce Journal Vol. XXIV, No.10 & 11 (October-November 1948)

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XXIV, No.10 & 11 (October-November 1948)
Issue Date: Vol. XXIV, No.10 & 11 (October-November 1948)
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extracted text: A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; E. G. Baumgardner, Vice-President; C. R. Leaber, Treasurer; Max Blouse, D. 0. Gunn, L. C. Hayden, J. T. Hicks, E. W. Schedler, and F. L. Worcester. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXIV October-November, 1948 Nos. 10 and 11 Contents Editorials— The American Elections .............................................................................. The Coming Import Control ...................................................................... The Huks Unmasked .................................................................................... American "Imperialism" and the Taruc Letters .............................. This Journal Issue .......................................................................................... Present American Contribution to Philippine Economy .......................... Macondray & Company Centennial .................................................................. The Coming Import Control ................................................................................ Possible Manila Power Shortage in 1949 ...................................................... Recent Court of Industrial Relatione Decisions ........................................ Election Broadcast (Excerpt) .............................................................................. Imports and Exports by Countries January to June, 1948 .............................................................. Imports and Exports ty Nationality of Traders .................... Principal Exports, compared with first half year of 1947 Principal Imports ................................................................................. The Business View— Office of the President of the Philippines ............................................ Banking and Finance .................................................................................... American Stock and Commodity Markets ............................................ Manila Stock Market ..................................................................................... Credit ................................................................................................................... Electric Power Production ............................................................................ Real Estate ....................................................................................................... Building Construction, Manila, 1936-48 .......................................... Real Estate Sales, Manila, 1940-48 .................................................. Ocean Shipping ............................................................................................... Inter-Island Shipping ..................................................................................... Air. Transportation ........................................ ............................................ Land Transportation (Bus Lines) ............................................................ Gold ..................................................................................................................... Lumber ........................................................?.................................................... Copra and Coconut Oil ............................................................................. Desiccated Cbconut ......................................................................................... Sugar ................................................................................................................... Manila Hemp ..................................................................................................... Tobacco ............................................................................................................... Automobiles and Trucks ............................................................................. Pharmaceuticals ............................................................................................... Food Products ................................................................................................... Legislation, Executive Orders, Court Decisions .................................. Other Chambers of Commerce Philippine Chinese Chamber of Commerce .................................... Philippine Safety Council ........................................................................... Cost of Living Index, 1946-1948 (Table) ....................................................... The “Let Your Hair Down" Column ............................................................... Thomas II. Luckett ............ N. Most .................................. H. P. L. Jolley .................... Ewald E. Selph .................... Bert Silen .............................. j Bureau of the Census and ................ 359 .................. 361 .................. 362 ................ 364 .................. 364 ................ 366 .................. 367 .................. 368 ................ 371 ................ 373 .................. 374 (376 378 379 881 Official Source .......................................... 380 C. R. Leaber .............................................. 383 R. Ewing .................................................... 384 A. C. Hall .................................................. 385 W. J. Nichols ............................................. 386 J. F. Cotton .............................................. 387 C. M. Hoskins ......................................... 388 | Bureau of the Census and Statistics 389 F. M. Gispert ............................................ 390 C. F. vander Hoogt ............................... 390 S. Canceran and D. J. Talbot ........... 391 L. G. James ............................................. 392 C. A. Mitke ............................................... 394 E. C. Von Kauffmann .......................... 395 M. Igual and K. B. Day ....................... 397 H. R. Hick .............................................. 399 S. Jamieson .............................................. 400 H. Robertson ............................................ 402 Conde de Churruca ............................ 404 G. E. Shingledccker ................................ 405 F. A. Delgado ........................................... 406 E. A. L. Best .......................................... 408 James Traynor ........................................ 409 E. E. Selph ............................................... 410 Yang Sepeng ........................................... 411 F. S. Tenny ............................................. 412 Bureau of the Census and Statis-.ics 413 ........................................................................... 414 50 Centavos the copy 358 AMERICAN CHAMBER OF COMMERCE JOURNAI October-November, 1948 MODERNIZE YOUR PRESENT CAR Does this mean an overhaul job? Not at all! Investing lots of money? No, again! To give your car that 1948 feel, simply install Goodyear s sensational new Super-Cushion tires on your present wheels. Super Cushions run on only 24 lbs. of air ... give you a ride that’s smooth as silk ... the sensation of floating through traffic ... unequalled fn all motor history. THE GOODYEAR TIRE & RUBBER CO. OF THE PHILIPPINES, LTD. Bacolod Manila Cebu Editorials " ... to promote the general welfare” "President Harry S. Truman, in an astounding upset of pre-election predictions, Wednesday won the United States Presidency. He will have Democratic Senate and House of Represent atives to work with him."— Associated Press. The American Elections "...the tightest presidential contest since Woodrow Wilson won over Charles Evans Hughes in 1916...” — Associated Press "Governor Thomas Dewey conceded the elec tion of President Truman. Dewey’s statement read by James Hagerty, Dewey’s press secretary, said: ‘The Governor has just sent the following telegram to President Truman at Kansas City: “My heartiest congratulations on your election and every good wish for a successful administration. I urge all Americans to unite behind you in support of every effort to keep our nation strong and free and to establish peace in the world.” ’ In Kansas City, President Truman received the news of Governor Dewey’s concession with a broad smile and, with humble demeanor, thanked well-wishers who crowded into his suite to congratulate him on his astounding victory.”—United Press "President Truman promised to dedicate himself to the ’cause of world peace and prosperity and happiness at home’ when he accepted the re sponsibility of guiding the ship of state for the next four years bestowed upon him by the American electorates. Truman’s surprise victory, together with the near Democratic landslide in both houses of Congress, evoked varied reactions, but all over the United States there was unanimity that the job now 'is to get together and support the administration.’ For the Republican’s defeated candidate Dewey promised all cooperation. For labor. CIO President Murray viewed the Truman triumph as a victory for the working man. Ex-President Hoover urged closing of the ranks around the President for the cause of world peace. Although careful to preserve their neutrality in American party politics, other world leaders expressed satisfaction that the status quo of American foreign policy remained. The United Nations was now expected to go full-speed ahead with its most important problems after the delegates had been held back in their w.ork by the shadow of the American elections.” — Reuters Many analyses will be attempted of the results of the general elections in the United States, especially of the fact that the presidential contest was so close and the popular vote was so nearly balanced. It is clear that relatively few more votes for Dewey would have turned the scale, although, as against this, it must be considered that the margin in Truman’s favor would have been larger but for the Thurmond and Wallace defections. That the voting was not overwhelmingly one sided, would seem to indicate that there was no startling or alarming unanimity either of enthusiasm or embitterment for or against either of the principal candidates or political parties. That the voting was so even indicates rather a political balance and a moral equilibrium, a general soundness, the demonstration of which is most up lifting. IN fact, though the results of the election were gen erally surprising, no serious charges of failure, mismanagement, or improbity in office were made against the party in power. The Republicans, who it was believed would be elected to office, were not ex pected to bring about any great changes. Dewey was not looked upon as one called to save the country. The Democratic administration, in power for sixteen years, had brought the country out of a great economic depression, led it to victory in a terrible war, and piloted it safely through the first phases of that war’s grim aftermath. President Truman, though there was some question of his ability and though he had made a number of rather serious mistakes, was per sonally liked and respected by most Americans,—so it seemed even before the elections. And the general employment and prosperity and sense of well-being in spite of prices and shortages, was never so high. Dewey’s campaign was based principally on “competence in government.” He is considered a quiet, able, honest, experienced administrator, still young and one who listens to advice, a man who had long aspired to be President and who had prepared himself for that great office. Truman had against him, perhaps more than anything else, the fact that it was a widely held belief that the Democratic Party had been in power long 359 360 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 PKILIPPIRE AIR LIHES inc. THE ROUTE OF THE PACEMAKERS OFFICES AT: HONGKONG—SAN FRANCISCO—NEW YORK—HONOLULU—SHANGHAI-LOS ANGELES CHICAGO—MADRID—LONDON enough,—a belief which has its source in the instinc tive wisdom of the people that it is inadvisable that any party should hold the power long. Over against this, however, stands the fact that the Democratic Party is generally considered the more progressive and liberal. Apparently, the people, es pecially the labor element, are in no mood to return to the traditional conservatism of the Republicans, though the wholly minor voting for Wallace indicates that, in these days of continuing international antagonism and great bitterness abroad, they are for a sober, downto-earth policy,—a strong but cautious conduct of do mestic and, foreign affairs. Many may have thought that the upset incident to a change in administration would be dangerous at this time, being satisfied with the present bi-party conduct of foreign affairs. To an extent, comparatively minor personal pre ferences may have tilted the balance,—the fact that the people liked Truman’s courage and spirit, as well as his frankness, as against Dewey’s obvious caution and determination not to commit himself on many issues. There was also the fact that President Tru man seemed definitely to be the “under-dog” who to the last put up a valiant fight while all those about him quailed. The people may not have liked Dewey’s complacency and the cocksureness of his backers. Perhaps the American voters did not like simply to be taken for granted. Over-confidence may also have affected the turn-out of the Dewey vote. The absence of any deep conflict over principles or policies, as indicated in the balanced voting, would seem to show that the country was never so united and, on the whole, so content with what has come to be called the American way of life,—the nation’s faiths, institutions, and procedures. The voting was so nearly even, however, that the strength of the minority can certainly not be disre garded by the Party which remains in power. To succeed, it will have to be exceedingly responsive to public opinion. And it should be remembered that elections gen erally do not determine truth or error, right or wrong, but only what is politically expedient, advisable, or practical. ONE result of the general upset of all predictions as to the outcome of the election, will be to weaken the reliance placed on public-opinion polls. That may be a good thing lest we came to think that we might depend entirely on such polls and dispense with our “cumbersome” elections altogether. There is some thing refreshing, as well as deeply moving and inspir ing, in the fact that elections, with all our science, are still so unpredictable. A GREAT democratic people have willed; have elected Harry S. Truman to the Presidency of the United States, the greatest office in the world, and one which may, during the ensuing year, become the most fateful in all human history. Not because Truman, rather than Dewey was elected, but because the American people are so sane, so cool, so free, and so determined, — therefore, still, all is well with America. Let its enemies beware. The Coming Import Control Readers will be interested, though they may also be dismayed, by the article in this issue of the Journal by Mr. Nathan Most, General Ma nager of Getzs Bros. & Company in Manila, on the subject of the coming import control. Mr. Most was one of the representatives of the American Chamber of Commerce of the Phili)>pines in the hearing held by the Import Control Board during the past weeks. When increased taxation of so-called luxuries and other non-essential goods, and control over the importation of such goods, were first talked of, months ago, this Journal flatly opposed the under taking of such measures. Since this increased taxa tion has been levied and since an import control law has been enacted,—shortly to be put in effect, nothing has happened to incline us to modify our stand. Because the implementation of the law is ul timately the responsibility of the President, we voice here what may be considered a final appeal and we re peat that we are opposed to the projected control measure as basically, specifically, and wholly per nicious. The move is contradictory to the ITO Charter drawn up at the Havana Conference held early this year, and which our Philippine delegate signed, al though the Government has not yet ratified it. This Charter is the work of the world’s leading economic, financial, and trade authorities, and, though escape clauses were inserted, provides for the eventual world-wide reduction of tariffs and the lifting of quotas and import and export controls, with the aim of achieving a freer world trade and the greatest possible prosperity everywhere. The move is furthermore in effect contrary to present agreements between the United States and the Philippines under which the latter,—for value received, is enjoined from imposing duties on im ports from the United States until July 4, 1954, be cause the imposition of import control over goods coming chiefly and in many cases exclusively from the United States is a very near equivalent to im posing such duties; in fact, such virtual prohibitions are worse than any tariff. In addition to this,- the very constitutionality of the Import Control Act has been challenged by com petent legal authority on the ground that the Con gress may not delegate unlimited general powers and, in the case of the Import Control Law, failed to specify the limits within which the presidential dis cretion was to be exercised. On this point, the Philippine Constitution states: “The Congress may by law authorize the President, sub ject to such limitations and restrictions as it may impose, to fix, within specified limits, tariff rates, import and export quotas, and tonnage and wharfage dues.” (Art. VI, Sec. 22, Subsec. 2) TOURING the past fiscal year, from July, 1947, to June, 1948, the Philippines made very good progress in its foreign trade, which came to Pl,696,302,396, or 38.6% more than during the preceding fiscal year. Though the value of the imports ran to almost twice the value of the exports, the inter national balance of payments, due to the flow of funds from the United States, was favorable to the Philippines. Since the war, some P2,500,000,000 has been sent here or spent here by the United States and 361 the total by the end of 1951 will reach over P4,300,000,000,—which should go a long way to paying for an excess of imports and for considerable industrial development besides. There is certainly no “dollar shortage”. And after a long, destructive war it is natural and necessary for the country for some years to import considerably more than it exports. The foreign trade of a country, always closely integrated with the whole of the economic and social life, is of such exceeding complexity that it is be yond the capacity of the most competent government really to control it. Attempts at control have every where achieved only a bungling. First results may be foreseen to some extent and correctly evaluated, but the secondary consequences are generally incal culable. To be clearly foreseen are the bringing about of conditions of artificial and unnecessary scarcity, rising prices, a reduced standard of living, and, in general, all the evils of inflation,—a worse inflation than we are already suffering from. One immediate consequence of the Import Con trol Law, to be observed even now, before it has gone into effect, is the alarm and discouragement of business generally, and the abandonment of plans for expansion and further capital investment except pos sibly in those relatively few cases where local manu facture of certain curtailed goods may be possible. Is it wise to sacrifice the prosperity of business as a whole, and the country as a whole, to the gain of these few? That is plainly the exact opposite of what Con gress intended, but so it is bound to work out. The most effective way to promote a greater industrialization here is to encourage in every pos sible way the direct investment of capital, and this must for some years at least be chiefly foreign ca pital. This capital can be attracted only by giving it scope, not by imposing controls and restrictions in any branch of trade. It is wholly unbelievable that the few millions or even tens of millions of pesos not spent for socalled luxury and so-called non-essential goods,—by some hundreds of thousands of people, will be used instead to buy “necessary” goods or be “invested” by them in “productive enterprise.” Investment capital in any quantity can not come from such petty sources. Most of the money which it is presumed will be saved, will doubtless be drained off in paying the higher prices and meeting the increased living costs which will result. The spirit of business enterprise and the will and the wherewithal to invest, is not produced by cuts and curtailments and by putting business in the straight-jacket of government control. Economic de velopment requires freedom and scope,—it may be under wise government encouragement and direction, but never under arbitrary control. A tree will not grow in a pot. Three months ago (July issue) this Journal joined in the very general expressions of approval of the Government’s extension of amnesty to the The Huks Hukbalahap insurgents, stating that this Unmasked promised to bring a most unhappy situa tion to an end. We entertained some doubt because the laying down of arms by a communist-led organization in the Philippines was wholly inconsistent with the increas ing communist provocations and violence in other parts of the world,—not only in Europe, especially in Berlin, but in Indo-China, Siam, Burma, Malaya, and the East Indies, which was just becoming noticeable at the time. During the fifty days accorded for this, only some hundred Huks registered and less than fifty firearms were turned in. Luis Taruc, Huk leader, who had been permitted to assume his seat in Congress, has again taken to the hills and from some unknown place has been sending letters to the newspapers in Manila blam ing the Government for the failure of the Amnesty. Either Taruc was sincere and failed to discern the “Moscow line”, the other Huk chiefs realizing this and refusing to follow his lead, or he was merely playing for time. But in either case, the Huk position has been greatly weakened, for the people now know where the true responsibility for at least the continuation of the trouble lies. The Amnesty, though it has failed, has proved how far the Government was willing to go, and how much of error and crime it was willing to pardon to reestablish order and peace. Confusion long existed as to the true nature of the Hukbalahap. It first came into being during the Japanese occupation as a strong guerrilla organization, the name meaning, “People’s Anti-Japanese Army”, but it was an outgrowth of an earlier, socialist-led agrarian 1 eform movement in Central Luzon. Agrarian reform had many supporters both in and outside the Government and rapid progress was being made in improving conditions for the farm tenants. The Huk guerrillas also had many admirers and friends as, for the most part, they fought bravely and well are also known to have saved the lives of not a few American airmen forced to land behind their lines during the war. Unfortunately, however, communist infiltration began even prior to the enemy occupation and the Huks came definitely under communist leadership, though this was not generally recognized. Today there can no longer be any question about this. Lately, in deed, Taruc has publicly declared that he is a mem ber of the Communist Party. If Taruc and the other Huk leaders were so con cerned about the lives and happiness of the peasants, as they claim, why did they not preserve the peace which had temporarily been established? The sorely tried inhabitants of the Huk-infested provinces had begun to go back to their villages and to till their lands again. But the Huk “raids” were resumed and, most abominable of all, the few men among the Huks who, following Taruc’s own public persuasions, did register, in honest compliance with the terms of the Amnesty, are being “executed” by these “friends of the people”. The Constabulary again had to take the field against the bloody bands of this now patently criminal and traitorous organization. The Huks do not want peace in Central Luzon. They do not want amelioration or reform. They will do all they can to oppose any attempt to improve the condition of the tenants. They, like all the tools of the present Moscow slave-state, work only for an in crease of disorder and bloodshed and misery every where. Their aim is to foment hatred and rage and despair among the people and to reduce all legitimate government to impotence, so that, in the end, they may seize the power, or so they think. But the people of Poland, Jugoslavia, Czechoslo vakia, and other countries behind the “iron curtain,” —including the native socialists and communists of these countries, are finding out how the Kremlin, citadel of the new reaction and tyranny, uses and ultimately deals with them. October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 363 WORTHINGTON REFRIGERATION MACHINES Make Food More Plentiful Food preservation is vital to your nation’s health. And good refrigera tion is vital to food preservation. Wherever foodstuffs are stored, processed and packed, Worthington refrigeration equipment—’’Freon” and Ammonia compressors, conden sers, product coolers, etc.—are doing a superior job to prevent food wast age through spoilage. The outstanding users of indus trial refrigeration the world over have learned that Worthington, spe cialists in air conditioning and refri geration machinery for over 50 years, provides a more complete line —all components for an entire sys tem built by one manufacturer. That is your assurance of greater profits through more efficient performance, lower maintenance costs and longer life. Whatever your refrigeration pro ject or problem may be, whether large or small, write direct to Worthington Pzimp and Machinery Corporation, Export Department, Harrison, N. J., U. S. A. WORTHINGTON PUMPS COMPRESSORS • ENGINES THE SIGN OF VALUE AROUND THE WORLD TURS1NE-GENERATORS CONSTRUCTION EQUIPMENT • REFRIGERATION The Taruc Letters and American “Imperialism” The open letters of Luis Taruc, Hukbalahap leader or misleader, published in the Manila press following his return into hiding and to a continuation of his insurrectory activities, display that muddle-headedness as well as insolence which has come to characterize the pronouncements of so-called com munists all over the world. Often, however, the ap parent muddle-headedness is not genuine, but only a result of a deliberate effort to confuse the public, and the author of such statements personally knows better. It would appear from the letters that Taruc, in the “negotiations” which preceded the President’s Amnesty Proclamation, sought not only to introduce questions of administrative and national policies into the discussions, but to dictate the policies to be fol lowed by the Government and, in some cases, to force a reversal of established policies. Taruc knows very well that under a democratic (presidential) form of government, administrative policies are determined by the President and general national policies by the people through the Congress. Under what simulacrum of authority or right could Taruc and all his followers,—who constitute not alone merely a small minority but a group in armed insurrection against the Government, arrogate to them selves any part at all in the formation of either nation al or administrative policy? The letters are mere propaganda, intended not to rectify or to better, but to confuse and mislead, to promote uncertainty and mistrust, dissatisfaction and disunity. The propaganda, further, is intended to in spire hatred of America, the Philippines’ only protec tor, and a stupid trust in the present world activities of the Russian imperialism. Taruc is a traitor and his followers are dupes. The President did well to ignore the letters, for to have entered into public controversy with Taruc would have been to extend to him a degree of recog nition in no wise warranted. The President had no other choice than to order a renewal of the Constabula ry activities against the dissidents with a view to res toring by force the peace and order destroyed by them. He does well, also, in simultaneously exert ing every governmental effort to correct conditions in Central Luzon which may still give rise to legitim ate dissatisfaction and to render every possible aid to the thousands of harassed people driven from their homes. While the President, as we have stated, did well in not entering into controversy with Taruc, it is quite fitting for this Journal to point out that Taruc’s attempt to stir up feeling against the United States (as well as his own Government) by alleging that Phil ippine independence is not real and by protesting against the American military bases in the country, the present continued limited free trade, and the con tinued limited “parity” between Americans and Fili pinos here, are all stock items in the propaganda of the Stalinites who would like to be able to hold up the Philippines as a horrible example of American “imperialism”. But the world and we ourselves know better. Everyday events prove that the political in dependence of the Philippines is as real as is that of any member of the family of nations. ReCognizedly, the Philippines is still to a degree economically depen dent on the United States, but that the United States realizes this and is extending aid to the Philippines in various ways, is a blessing which many nations would like to share. That the Philippines may develop in freedom under the protection of the United States, is another blessing many nations would like to share. As for the so-called “parity”, the Americans here, more than anyone else, know that there is more real parity between American and Filipinos in the United States, than there is between them here. The present relationship between the Philippines and the United States is the natural outcome of half a century of development and of many years of plan ing on the part of the most brilliant American and Filipino statesmen. Fortunately, we do not have to ask for the Kremlin’s blessing on the results of that magnificent effort and splendid devotion—nor Mr. Taruc’s. This combined October-November issue of the American Chamber of Commerce Journal is presented _, . n ♦ r with apologies as taking the place of inis uctoDer- two separate numbers issued at the November usual monthly interval. “Sue The regular October number was lost on October 11, just as it was ready for the press, in the P6,000,000 fire which destroyed the McCul lough printing plant along with the whole of the Philippine Education Company compound. All the made up pages of type and cuts, and practically all of the proof and the original copy as well, were des troyed, and it would have been a hopeless effort to attempt to reproduce the number in the time avail able. However, our loss was small compared to the los ses suffered by others in this disastrous fire, and we extend our sympathy to that grand old firm, the Phil ippine Education Co., Inc., and the other firms affected which include the local branches of the Lawyers Co operative Publishing Company and the Singer SewingMachine Company. We are grateful to all our contributing writers for supplying us with new copy for their articles, and especially to the editors of the various columns printed under the heading, “The Business View”, who readily took on the extra task of preparing material to cover the two-month period. We are grateful to our advertisers who in all cases transferred their October advertising to this com bined issue, and more especially to those among them who increased their advertising. With a change in printers, a change in the type face and the paper was unavoidable, and we regret this, but we are nonetheless grateful to the firm of Carmelo & Bauermann, Inc. for undertaking to print the Journal on short notice and for rendering us their full cooperation. It takes an emergency, sometimes, to prove cer tain things, and all the friendly cooperation so readily extended to the Journal in its difficulty speaks well for the regard which the publication has been able to gain. The delay, if not the entire loss of one monthly issue, has helped to bring out the value of the special role which the Journal has assumed in the business life of this country. It is only the truth to say that many business men here and abroad have come to rely on the Journal and especially on its monthly business reports in the over all consideration of their affairs in the Philippines. Some of them, and a num ber of government officials, have been so kind as to say that the Journal has become well-near indispen sable to them. 364 October-November, 1918 AMERICAN CHAMBER OF COMMERCE JOURNAL 365 STEEL FABRICATION AND ERECTION OF BRIDGES, TANKS, BUILDINGS, ETC. You can depend on AG&P. Hundreds of im portant engineering jobs visible throughout the Philippines exemplify AG & P’s enviable record of skill and dependability in engineering and construction for oVer 48 years! AG&P not only has an engineering and construc tion department. It also has a steel fabricating or ganization of exceptional ability... adequately housed and completely tooled. They have time and again, proved that localized experience, ingenuity and onthe-spot fabrication facilities have overcome the han dicaps of time and circumstance. If you have an important project... you can depend on AG & P. 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OF MANILA Sales Office: 222 Regina Bldg., Escolta Tel. 2-83-64 Engineering Dept. & ShopsPunta, Santa Ana, Manila Tel. 8-63-32 Present American Contribution to Philippine Economy’ By Thomas H. Lockett Charge D’Affaires, American Embassy I AM most pleased for this opportunity to meet with the members and friends of the Rotary Club during this luncheon hour today. I have noted for some time now the constructive and for ward-looking work undertaken by the Rotary Club in the civic activities of this city. I need only to mention your last week’s meeting at Welfareville in which you so generously extended your assistance to the children of that Home as an example of the spirit of constructive fellowship which traditionally distinguishes Rotary everywhere. Today, as I look about this room, I note many prominent and active members of the business com munity. I feel very close to those in the business world, for my early life was spent in business activi ties. For example, during the 15 years before enter ing the service of my Government in 1933, I served as a clerk with a railroad; a salesman and then as district sales manager for Portland Cement com panies, and finally as president of a company. In other wprds, during those years I accumulated ex perience as a clerk, salesman, buyer, manager, and in overall management. This means that I have had to meet payrolls just as you do. Let me say also that since entering the Govern ment a great deal of my experience has been in mat ters relating to business and economic affairs. I had the pleasure of serving over 12 years in Mexico City as the ranking economic officer of the United States Embassy there. Those years in Mexico were very full years dur ing which I saw Mexico build dams and enlarge its area of cultivation; extend electrification to many rural districts and small villages; add hundreds of miles to its highway system, and step up production for both export and home consumption. Since my arrival in the Philippines, I have been very much interested in the economic life of this country and in the economic rehabilitation of the Philippines. The people of the United States are grateful to the Filipino people for their magnificent record of resistance during World War II. They have a special fondness in their hearts for the Fili pino people and are anxious to see the Republic of the Philippines prosper and progress. That is why the Congress of the United States has repeatedly during the past three years shown its keen interest in extending assistance to our sister republic of the Pacific. We hear a great deal today about the type and extent of the assistance being given to the Philip pines by the United States Government. Unfortunate ly, through no one’s fault in particular, there is a great deal of confusion regarding just what the United States Government is contributing to the eco nomy of the Philippines. If you will be so kind as to permit me to recite a few figures, I should like to tell you just what the different United States agencies in the Philippines have spent already and will spend in the future. While actual totals must await the final auditing of the accounts of the different agencies, the most ac curate estimates available today of United States Government expenditures in the Philippines are as follows: For For For When to this total another P200,000,000 as _ ___ war surplus materials turned over to the Philippine Government (actual procurement cost to United States Government, Pl,079,000,000), we get a grand total of P2,549,000,000 or $1,274,500,000 of United States Government expenditures in various forms in the Philippines during the years 1945 through 1947. And there are still more United States Govern ment expenditures coming which follows: For For For For the the the the the the the year 1945 year 1946 year 1947 year year year year 1948 1949 1950 1951 .............. 880 million pesos .............. 672 million pesos .............. 797..million pesos of P2,349,000,000 is added the estimated fair value of are 670 484 441 169 estimated as million million million million pesos pesos pesos pesos Total ..............................1,764 million pesos By the end of 1951, post-war United States Gov ernment expenditures in the Philippines are estimated to exceed four billion, 300 million pesos or 2 billion 150 million dollars. After 1951 there is every reason to assume that United States Government payments to veterans and their beneficiaries will continue for many years at a yearly rate of between P100,000,000 and P150,000,000. I am sure the foregoing figures are interesting to you as they show a real interest on the part of the American people in the rehabilitation and welfare of the Philippines. I am most encouraged by the progress being made in reconstruction in many fields in the Philip pines today. This Republic has made a most com mendable start as a member of the family of nations. In the future many problems will arise to test the strength of the Republic. I see in this future an es pecially keen need for two lines of development. I see the need for increased development of the natural resources of the Philippines. This land is blessed with many rich natural resources. Mindanao, for example, is a vast storehouse of economic wealth. In flying over the great virgin forests, innumerable mountain ranges, the beautiful rivers and falls, such as Maria Cristina, I could not help but think to myself of the great potential riches lying untapped in this part of the world. I see also a need in the Philippines for an in creased development of a program of vocational train ing. I have observed that Philippine educators and leaders are well aware of the importance of voca tional education to the future of the Philippines. As * Address before the Manila Rotary Club, September 2, 1948. 366 a matter of fact, in one of last Sunday’s newspapers, Dr. Gilbert Perez, your Superintendent of Vocational Education, wrote as follows: “There is a crying need for more and larger enrollment in trade, agricultural, technical, and industrial schools. The very future of this Republic is threatened by the absence of a large and intelligent group of skilled craftsmen, techni cians, and practical farmers...” The future before us today is a future that is full of many challenges. It is a future which will probably test us as never before. In that future, let me say that it is the hope of my Government and my people that our two countries will always work together in the closest friendship for common objec tives. In conclusion, let me reiterate that the Amer ican people have an abiding interest in the destiny of the Republic of the Philippines. They are proud of the record of the Filipino people in the war; they respect the record of the Philippines in peace; and they look forward to a future in which the Philippines will continue to be a highly respected and admired member of the community of nations. Macondray & Company Centennial IN commemoration of its one hundred years of busi ness activity, fifty years in San Francisco and fifty years in Manila, Macondray & Co., Inc. has published a tastefully printed 44-page illustrated booklet, attractively bound, a copy of which was pre sented to the American Chamber of Commerce of the Philippines with the compliments of Mr. Carlos Young, President of the Company. The Company was first established in San Fran cisco in 1848, the year of the gold-rush, by Captain Frederick William Macondray, who had commanded a clipper ship engaged in the tea trade with China and who had lived there from 1831 to 1839. It became one of the most prosperous commission houses in San Francisco, and the business was carried on by the Captain’s son, also named Frederick William, and after that by the latter’s son, Atherton. About the time the second Frederick died, Barry Baldwin be came one of the partners. Mr. Baldwin came to Manila in 1898 in connec tion with the sale of large quantities of foodstuffs and coal to the U. S. Navy, this leading to the open ing of a branch here in August of that year, just fifty years after the founding in San Francisco. The office was at No. 3 (later numbered 18) Plaza Cer vantes, the site now occupied by the Bank of the Phil ippine Islands. Barry Baldwin and Atherton Macondray alter nated as Manila managers until 1905, when the latter left Manila permanently. A month later, Mr. Carlos Young came to the Company as joint manager. Mr. Young had arrived in the Philippines as a soldier in the Spanish-American war and had been secretary to Col. E. H. Crowder, in charge of the civil govern ment branch of the Military Government, and also, for a number of months in 1900 and 1901, acting pri vate secretary to the Military Governor, General Ar thur MacArthur. Shortly after Mr. Young joined the Company, Mr. Baldwin arranged with the Macondray family to buy out its interests in the Manila Compahy in ex change for his interests in the San Francisco Com pany, and from then on the two companies went their separate ways. Some years after the first World War, the San Francisco Company decided to go out of business, and this left the Manila Company to carry on the name. In 1919, Mr. Baldwin sold his interest to his son, Newland ,and to Mr. Young, and these two carried the business forward and greatly expanded it during the following years. Mr. Newland Baldwin’s son, another Barry, and the latter’s brother, James, also became active in the business. Barry became a lieu tenant in the U. S. Army, fought on Corregidor, and died as a prisoner-of-war in Japan in 1943. Newland Baldwin died in the Santo Tomas Internment Camp later in the year, aged 60. After Manila was liberated in February, 1945, Mr. Young, who had also been interned in Santo To mas, immediately set to work to rebuild the business, being assisted in this effort by Mr. Maurice Furstenburg, manager of the Merchandise Department, who, after his release from Santo Tomas, also remained in Manila. The Macondray Company had always been a large importer of flour, and the first commercial flour received in hungry Manila in 1945 was brought in by the Company. James Baldwin, who, like his brother, had fought on Corregidor and been taken prisoner, survived and became manager of the Ship ping Department in 1946. Other Baldwins who helped were Richard, Newland, Jr., and Alice. In a postscript to the history of the Company, thanks are expressed to the Company’s American sup pliers : “The officials and owners of the Company wish to ex press their high appreciation of the loyalty of its suppliers and correspondents in the United States after the return of the American troops to Manila. Without exception they gave us the fullest possible cooperation, and if it had not been for their efficient help in getting shipments to us, the Company could not have gotten on its feet so quickly as it did.” The war dealt Macondray’s a severe blow, “never theless,” in the words of the chronicler,— “...the Company is going on, with its credit and reputa tion unimpaired, and is looking forward to the next hundred years with every confidence. Of the companies established in San Francisco in the year 1848, and of the American compa nies established in Manila in 1898, it is the only one still in existence.” 367 The Coming Import Control By N. Most General Manager, Getz Bros. & Co. AS this is written, the President has not yet is sued an executive order putting the Import Con trol Act into effect. Accordingly, any state ments made relative to the operation of the Import Control Board and its effect on trade can only be regarded as surmise. However, a study of the pro ceedings of the various panel discussions as well as of the information which Secretary of Commerce Balmaceda has made public is sufficient to give us a fairly good idea of the probable workings of the Act and its probable effects on business. The Department of Commerce recently concluded a series of hearings at which importers were invited to state their views. These meetings as well as state ments made by Secretary Balmaceda and Executive Officer Ledesma have been impressive in that they demonstrate an obvious desire on the part of the Department of Commerce to cause as little disruption to business as possible, and to apply the import con trol measures as fairly as possible with such a dif ficult piece of legislation. As all governments which have attempted it have discovered, import control is one of the most difficult measures to implement which a government can possibly attempt. The num ber of importers and the variety of goods they handle is so extensive that the Department of Commerce will, of necessity, be required to process a huge amount of paper. All indications lead us to believe that the Department of Commerce has fully antici pated most of the problems which will confront it, and has taken all steps within its power to prepare for the coming activity. While the administrating of the import control is undoubtedly in the best possible hands and we may anticipate that it will be administered in a manner which will bring credit to the Department of Com merce, nevertheless, we cannot overlook the fact that import control once effected, even though mild in the beginning, is more likely to increase in scope and in number of items controlled as time goes on, than to decrease. This has been the history of import control in almost every country which has imposed it and it is logical to presume that the course will be the same in the Philippines. Statements continue to appear in the newspaper issued by officials in Phil ippine business and some departments of the Gov ernment, expressing the viewpoint that the Philip pines should have import control because almost every other country in the world has it. Such a view point can only be the result of lack of know ledge as to why import controls are imposed, and can only come from people not conversant with the fact that import control is a strong medicine and one only taken by a sick country. The disease consist of a shortage of U.S. dollars. And while the me dicine, if taken in doses commensurate with the ex tent of the disease, may be regarded as helpful, it has been the experience in many countries, that the medicine often becomes worse in its effects than the original disease. In most cases, a far better course lies in increasing exports. It is interesting to note in that regard, that the Philippines is still shipping only token quantities of quota items to the United States. As an example, whereas the quota allowed for cigars is 200,000,000 a year, the shipments for 1948 up to October 2, 1948, were 839,222. Likewise in coconut oil, whereas the quota is 448,000,000 pounds, shipments to October 2, 1948 were only slightly in excess of 60,000,000. The unbalance of trade for the first 6 months of 1948 was approximate ly P250,000,000. This disregards the invisible ex ports which actually give the Philippines a favorable remittance balance. It would pppear that a con centrated effort to increase exports would result in enabling the Philippines to avoid import control and thus avoids the reduction in the standard of living which control brings. However, regardless of whether or not the con trol of imports is really necessary in the Philippines, it appears that it will be with us and that we had best consider its probable course and effects. There are a number of loose ends relative to im port control on which the Government’s decisions, if they have been made, have not yet been announced. First there is the question of the effective date of the control. Secretary of Justice Sabino Padilla has given the opinion that the Import Control Law will not become effective until the President issues an executive order setting forth the list of non-essential and luxury articles to be controlled as well as the rules and regulations for carrying out that control. Just when this order will be issued is not known, but a fair guess would be November 15. It is pos sible of course, that the President will recognize the inauspiciousness of inaugurating import control at a time when the West Coast shipping strike is going on with a possibility of strikes on all coasts of the United States. Another point which needs clarification is the establishment of definitions of non-essentials and luxuries on which the operation of the law will be based. No such definitions are included in the law. It is true that these terms are very difficult to de fine, since they depend in a large measure on the standard of living of the group concerned. As an example, refrigerators, which will undoubtedly be controlled under the Import Law, are regarded as absolute necessities by Americans living in the Phil ippines; however, to Filipino families in the barrios, where no electric power is available, a refrigerator is of no use whatsoever. The Import Control Board from its statements thus far seems to be taking the view that the term non-essential can be used both in the sense of un necessary for livelihood or manufacturing purposes, as well as unnecessary because a substitute is availa ble in the Philippines. However, adoption of the latter definition results in actuality in a general im port control rather than a restricted control. As an example, it is very probable that the Import Con trol Board will prohibit the importation of soap on the basis that since it can be manufactured in the Philippines, it is unessential. However, soap can certainly not be considered unessential in so far as its necessity for livelihood is concerned. It would seem logical to presume that if the Philippine ConOctober-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 369 All Bethlehem Production is Centrally Controlled 0ETH EHEM0 STKL E Bethlehem steel has a wide reputation for quality, uniformity and dependability— the result of unified direction of every step in man ufacture, from mining the ore to shipment of the finished product. Bethlehem, a continent-wide concern with steel-making units on both the east and west coasts of the U. S. A., is a completely integrated organization. All Bethlehem steel products are made under the constant supervision of technical experts whose advanced Bethlehem's great Sparrows Point plant is the only steel-producing plant in the U. S. A. located on tidewater. Products for export can be loaded at this plant di rectly aboard steamers, thereby minimizing possible damage due to additional handling. skills are augmented by modern methods and equipment. PHILIPPINE CORRESPONDENT: 1 U/ nrT7CD 615 TRADE AND COMMERCE BLDG. L. W> ULlLtll 123 JUAN LUNA MANILA 2OT-1 gress in passing the import control measure truly wanted to give the President power to control all imports, it would have so stated in the law. Ac cordingly, it appears necessary that some limitation on the interpretation of the words luxury and nonessential be included in the law in order to limit its administration. Another matter which has not yet been clarified, is the question of who will receive the import quotas. There are two groups of contenders for this distinc tion, one, the importers, and the other the indent houses. The importers in the main are made up of the Chinese dealers, although there are a number of Filipino, American, and European firms which import as well. The indentors, are largely American or European firms holding the exclusive representa tion of foreign manufacturing firms. Of course, there are firms of all nationalities doing both im port and indent business. In the early considera tion of this matter, it appeared that the Import Con trol Board favored giving import quotas to the in dentors or exclusive representatives, since there are fewer of them to deal with. However, it appears that the quotas will be given to the importers, on the theory that the quotas will be widely spread and con trol of the market in a particular commodity should not be held in a few hands. This may make things difficult for certain indent houses which have in the past been selling some of their products exclusive ly to a closed ring of importers. They will now find themselves in the hands of the ring which will be able to more or less dictate terms. In spite of the foregoing uncertainties, enough has been revealed about future import control opera tion to give us a fair idea of coming events. It can, of course, be anticipated that the President’s order implementing the Import Control Law will set forth a list of classes of commodities which will thenceforth require import licenses for importation into the Philippines. These items will probably be divided into three classes, those which are considered luxuries, those which are considered non-essential and which could be replaced by items manufactureable in the Philip pines, and those items considered non-essential not manufactured or manufactureable in the Philippines. These classes will probably be divided into sub groups and importers will apply for separate licenses in each sub-group. It is anticipated that the im porter will be free to import individual items with in a sub-group to suit his requirements. As an exam ple, importers of cosmetics will probably be given a dollar quota under which they can import face powder or hair-oil or any other cosmetic in any pro portion which suits them. In order to qualify for an import license, it has been indicated that an importer will have to be re gistered with the Securities and Exchange Commis sion or with the Bureau of Commerce, licensed to do business in the Philippines, and also registered with the Import Control Board. After registration, he may apply for quotas in the various sub-classes in which he is interested. The importer will be required to pay P2 as a filing fee with each application, and upon the granting of a license, he will be required to pay a fee of Pl per Pl,000 of the c.i.f. value of the license granted. Funds derived from this source will be used in operat ing the Import Control Office. Import licenses issued will probably be valid for 6 months and will have a provision for deducting in dividual shipments from the total amount licensed. The importer will have to submit his import license to the Customs at the time of arrival of the mer chandise, and will also have to furnish a copy of his import license to the Philippine Consulate in the country of the origin of the merchandise at the time the consular invoice is secured. This latter detail will probably require some reconsideration, since, otherwise, a great number of copies of the license will be required. It would appear sufficient to fur nish the Philippine Consul only the import license number without the necessity of submitting a copy, since the Consul would, in any case, have no way of determining the unused balance of the license. Im porters who receive licenses, but do not import the full amount of the license within its validity period, will be required to show cause why he should not lose his quota for the suceeding periods. In applying for an import license, importers will probably be required to state the amount of the com modity they imported during a base period to be set by the Import Control Board. This period will probably be the years 1947 and 1948, or some part thereof. If the importer’s application is approved, he will, in all likelihood be given an import license for a percentage of the amount he imported during the base period. If, as an example, he imported P100,000 worth of a particular item during 194748, and the period of the quota is 6 months and a 40% cut is to be made, he will be given a license for P15,000 for the 6 months’ period. It can thus be seen that under this system, if adopted, no definite quota will be set, since the amount to be licensed will depend on the amount applied for. Although this method presents problems, it is much to be pre ferred to the alternative method which would re quire the Import Control Board to wait until sub stantiated reports of all applicants’ imports during the base period were received, and then make a di vision of a fixed quota among these applicants in pro portion. The problems presented by this latter method are obvious. It is probable that the Pres ident’s order will limit new importers to 20% of the allocation to old importers. This would require under the first system indicated, that the Control Board wait until it has determined the total of old importers quotas to be issued before licensing new importers. Of vital interest to importers is the list of items to be controlled and the extent of limitation. No of ficial information on this subject has yet been re leased. However, a consideration of the items dis cussed at the various panel meetings held by the Im port Control Board at which importers were invited to state their views, gives us a basis for reasonable surmise. It appears that the Import Control Board would like to cut the importation of items to be controlled by about 40%, on the average, of the importations during 1947-48. However, the amount of cut will probably vary widely on different classes of goods. Of the various items discussed in the panel meetings, it would appear that the following groups of items are due for control: beverages, wines and liquors; cosmetics; watches and clocks; beauty-par lor equipment; textiles, in the high priced cot ton and rayon classifications; ready-made clothing; (Continued, on page 412) 370 Possible Manila Power Shortage in 1949 Public Cooperation Needed By H. P. L. Jolley Vice-President, Manila, Electric Company STUDIES made by the Manila Electric Company (Meralco) indicate the possibility of a power shortage during part of 1949 and 1950. The accompanying graph shows how the rapidly increas ing demand or “peak load” is fast approaching the system’s capacity. The upper line shows the generating capacity of both the steam and hydro plants available to Meralco for supplying electric service to Manila, suburbs, and neighboring municipalities up to December, 1950. The lower line shows the peak load month by month to date, and the dotted line shows the estimated pro bable growth of the demand. It will be noted that the lower line gradually ap proaches the upper line. The estimated increase in peak load as shown in the graph is less than the rapid rate of increase during the past year. Should the peak load continue the current upivard trend, the de mand will exceed the supply perhaps as early as the middle of 1949. There is no possibility of increasing the source of supply until September, 1950. Should there be delays in the delivery of materials, this date may be even further postponed. At the present time the generating capacity is double that of 1941, but the demand is very nearly double. These facts are brought to the attention of the public in order that the situation may be fully real ized. Meralco will do all it can to give service, but the cooperation of all is needed. Everyone should re frain from using more electric service than absolute ly necessary, especially during the peak hours from 6 to 8:30 p.m. The only way Meralco can ration service is by disconnecting an entire circuit as soon as demand ex ceeds supply. This is a great annoyance to many. Therefore rationing should be a voluntary act on the part of the public until such time as there is suffi cient capacity. Meralco, with the assistance of the National Power Corporation, has done and is doing all it can to continue its pre-war standard of service. How ever, the demands of the public are so much greater than in 1941 that it will be impossible to keep capa city ahead of demand until the new Rockwell power station is completed and until other materials, prin cipally for sub-stations, come forward more quickly than at present. Owing to the total destruction of Manila’s gene rating stations and much of its transmission and dis tribution systems early in 1945, we feel that there is every reason to account for the existing situation. The efforts of the National Power Corporation and the U. S. Army coupled with our own have produced a capacity of 88,000 K.W. compared with 45,500 K.W. in 1941. We believe almost everyone will agree that this is a fine accomplishment. In many cities of the United States, the reader may be surprised to learn, there is also a shortage of power, not, of course, due to destruction but due to the increased demand and the impossibility of ob taining equipment in time to cope with the increase. In Meralco’s office there are copies of many adver tisements inserted in newspapers by power companies with reference to shortage of capacity for one reason or another. The following States are among those included in these “ads”: Florida, North Carolina, Maine, New Mexico, California, Texas, Kentucky, Connecticut, and Mississippi. So the Philippines is comparatively well off, especially when one considers that nearly twice the pre-war capacity is available and being supplied. Commenting on the fact that Meralco is now supplying twice as much electricity as pre-war to a larger number of customers, a visiting executive of a well known United States electrical manufacturer said, “Your impending shortage of power is largely due to the excellent job you have done in rebuilding your system so rapidly.” He pointed out that there would be no shortage of power capacity if the Com pany had not connected so many customers so quick ly, thus substantially filling the gap left by the gas company. It is not necessary to write more. Please keep everything you can off the peak hours 6 to 8:30 p.m. Nothing is too small to matter; if everybody coope rates, the total will be significant. Both large and small power customers are asked to give serious thought to the possibility of power curtailment dur ing those hours. Everybody will benefit by giving this assistance, and will also have smaller accounts to pay for Reddy Kilowatt’s service. 371 372 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 I When you turn out a light that isn’t needed, you’re protecting your own electric service and helping the community. For until the new power station is completed in 1950, the power situation here will continue to be “tight.” Every available kilowatt is needed--so please don’t waste ANY electricity. Manila Electric Company Recent Court of Industrial Relations Decisions By Ewald E. Selph 1. Bargaining agent IN a case decided June 10, 1948, following numer ous precedents, the Court of Industrial Relations stated that a union duly registered is entitled to collective bargaining for its members, and management may deal with non-members individually. In no case has the union been made the sole bargaining agent. In some instances two or more unions have sought exclusive bargaining rights. In one case the Court said, “The Court is not concerned as to whether these unions have a minority or majority of members in the company — that whatever one union gets for its members, the same shall be applicable to the other workers.” 2. Closed shop and check-off This demand has been consistently denied. Some companies have agreed to it. 3. Prior reference to a union of dismissals, sus pensions, or penalties This demand has generally been denied although investigation and hearing have been required and in some cases the Court has stipulated that notice of such disciplinary measures be given the union or a committee thereof and the employee be given the right of appeal to the executive of the employer. 4. No discharge without just cause This is generally embodied in the decisions. In some cases the Court has asked that employees be given another chance even though discharge was for just cause. 5. Policy of promotional incentive This has generally been left to management. 6. Period of probation before employee is con sidered permanent In one case this was fixed at 3 months; in another case, 60 days, but laborers are not general ly put on a monthly basis; clerks, etc. generally are. 7. 50% additional for work on Sundays and holidays This demand has generally been granted except in the case of public utilities. 8. Vacation and sick-leave with pay In general, after one year of service, 15 days vacation, and 15 days sick-leave on physician’s cer tificate, have been granted. 9. Overtime for monthly employees The Court in one case decided that as monthly employees generally work only about 6 1/2 hours per day and only 4 hours on Saturdays, and that as only occasionally did they work overtime and then were given a meal-allowance, they were not entitled to over time ; but if they desire to be transferred to an hourly basis, dividing their present salaries by 26 days and 8 hours, the employer should make such a transfer. For daily workers, uncollected overtime has been awarded in a number of cases, retroactive to the date of the complaint. 10. Access to a place of employment by union officials In one case an employee was reinstated on con dition he would not engage in union activities in the company’s premises. 11. Scale of wages In one case the Court said the minimum of “health and decency standard of living wage,” is midway between a subsistence or poverty level and a comfort standard. The Court also said that the fact the business is not making a profit does not relieve the employer from paying a fair living wage. Evidence was admitted of the trend in the cost of living figures as prepared by the Bureau of the Census and Statistics based on a family of 5: January, 1947 — P156.95 per month December, ” — 131.54 ” ” The report of the Bureau for July, 1948, shows P137.42 per month. In one case (April 23, 1948) the Court said the employer’s “financial ability to pay fair, decent, and reasonable wages to its workers does not mean that it should be made to pay whatever increase that its workers may demand.” The Court also said that “one of the factors for determining a fair and just wage mentioned in Commonwealth Act 103 as amend ed, is the rate of wages of laborers employed in other factories.” In some cases the witnesses on statistics have testified that living expenses in Manila are general ly about 15% more than in the provinces. 12. Discharge of employees objected to by a union In general, this demand has been denied. 13. Christmas gifts or other bonuses In one case the Court indicated that while pro bably this would tend to improve employer-employees relationships, a bonus is a manifestation of liberality and cannot be demanded as of right. 14. Pay during the period of a strike This demand has been consistently denied. 15. Pensions and retirement or separation alloivances In general, these are in the experimental stage. In one case an agreement was reached for a sliding scale of approximately one half month’s pay per year of service after 30 years of service, and after 15 years service, 10 days pay per year of service. 16. Maternity-leave with pay In one case the Court approved the company’s plan for female employees having 6 months service, of 8 weeks leave with pay at average weekly earn ings for the 12 weeks immediately preceding the leave. 373 17. l>2-hour work-week The Court stated that as the legal working day is defined by Act 444, the shortening of hours per work-week is something for management to decide. 18. High cost-of-living allowance In one case the union demanded that the custom which grew up in 1945 and 1946 of making special high cost-of-living allowances apart from base pay, be modified so that the actual take-home pay be en tered on the payroll and such terms as “bonus” and “living allowance” or “allowance” be eliminated, but the Court approved the continuance of that custom on condition that the same not be reduced without approval by the Court. 19. Additional pay for night-tvork In two cases the Court of Industrial Relations fixed salaries and wages for night work at 50% over regular day-work pay, both of which were approved by the Supreme Court. Several applications for re vision of this figure are pending. The differential in labor contracts entered into in the United States in 1947 run about 2-1/2% to 5%> for the swing-shift and not over 7-1/2% for the graveyard-shift. Night work has been defined by the CIR as work done be tween 6 p.m. arid 6 a.m. 20. Back pay or bonus during the Japanese oc cupation This demand has been consistently denied. In a recent case the Court ruled that the granting of “this payment to the laborers is completely a privilege in nature and not a matter of right.” Election Broadcast (Excerpt) Bert Silen over KZRM, Manila "QO, once again the United States Govern^ment will be in complete control of the Democratic Party. For better or for worse, during the next four years, the American people will have a Democratic Congress, a Democra tic Senate and, no doubt, a Democratic President. How this will affect the Philippines, remains to be seen. We do know that under a Democratic ad ministration, there has been a great deal of sympathy shown to aid the financial situation of the Filipino people. But there are things which must be con sidered. In my talks around New York with people whom I have had to do business with, they asked me various questions about conditions in the Phil ippines, and seemed to be concerned over the Huk situation, over the apparent nationalism of the Fi lipino people, and, recently, over the proposed Im port Control Act. It does seem that the business men here, who have dealings with the Philippines, know more about Philippine affairs than we would usually give them credit for. “And as one man, the President of one of the largest manufacturing concerns in the United States, said: ‘The measure of consideration to be given to the Philippines, would be in direct proportion to the consideration given American business by the Filipinos.’ I pointed out to him that the Philippine Government, in exercising its rights to regulate im ports, was only following the advice contained in the joint Philippine-American Commission Report. He admitted this fact; but said that this Report was made at a time when the realities of post-war prob lems in the Philippines could not be accurately gauged and, as all reports or predictions, this one would have to be revised in the light of known events and situations. He even went further—and I report this because I think it is important, he said that he and some of the other businessmen with whom he had talked the matter over, thought that the whole situation was being used as a subterfuge to promote Philippine nationalism. This coming from a man who stands high with the new Congress and who is well acquainted with Philippine affairs! “And I report here again, because I do think ii is important that the Filipinos realize it, that the people in this country are concerned over their wel fare as well as their future relations... It is cer tain that the Filipinos will be dealing with forces here in this country, which may have a different temper than those which we have felt for the past sixteen years. How these things will work out, will depend on a quick and complete understanding of the situation, and a frank and honest attempt on the part of all concerned to meet the problems squarely, openly, and with much thought... This is Bert Silen in New York, turning you back to Manila...” pi OR the first time since the war the socialists and the middle parties found themselves united by a corn in mon hatred of Communism stronger than the acute differences over state enterprise and capitalism •*“ which divided them . . . The abhorrence of Communism and the police state, the belief in individual liber ty and representative government, are the common heritage of Britain and the peoples of Western Europe. Until the civilization which they created was threatened with destruction by a hostile creed assailing the Chris tian ethic and the whole concept of human self-determination, the western nations never realized that their com mon beliefs might outweigh their differences in the scale of values. For the first time they are coming to feel an emotional need to unite, without which no society can become a living reality . . . [Europe] will no longer be divided by barren hatreds, but will seek the path to a better way of living together. It will abjure war except in defense of freedom itself.”—Sir Harold Butler, in the July FOREIGN AFFAIRS 374 October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 375 ‘'Buy NATIONAL CITY BANK TRAVELERS CHECKS If you're wise you'll make reservations for hotels, train berths, ships, planes to avoid a spoiled trip. Why take chances with your travel money? Carry National City Bank Travelers Checks and protect yourself against theft or loss. 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THE NATIONAL CITY BANK OF NEW YORK First in World-Wide Banking Branches in the Philippines MANILA CLARK FIELD CEBU Imports and Exports by Countries January to June, 1948 By the Bureau of the Census and Statistics Country Total Trade Value (Pesos) Per Cent Distribution Imports Per Cent Distribution Total Exports Per Cent Distribution Domestic Exports Re-exports Total ................... 955,200,806 100.00 606,135,260 100.00 349,065,546 100.00 318,267,660 30,797,886 United States................... 730,641,814 76.49 511,749,410 84.43 218,892,404 62.71 211,788,208 7,104,196 China ................................. 25,184,417 2.64 23,048,458 2,188,132 3.81 2,135,959 .61 784,411 16,107,099 1,351,548 Japan ................................. 19,746,330 19,723,975 2.07 .36 17,558,198 5.03 1,451,099 France ............................... 2.06 805,392 .13 18,918,583 5.42 18,903,678 14,905 Dutch East Indies........... 19,143,102 2.00 9,996,372 1.65 9,146,730 2.62 242,908 8,903,822 Canada ............................... 16,359,772 1.71 8,010,556 1.32 8,349,216 2.39 8,246,594 102,622 Denmark ........................... 12,461,621 1.31 255,224 .04 12,206,397 3.50 12,203,177 3,220 Poland ............................... 8,597,503 .90 — — 8,597,503 2.46 8,597,503 Great Britain................... 8,563,891 .90 4,929,674 .81 3,634,217 1.04 3,634,217 __ Belgium ............................. 7,499,155 .79 4,667,940 819,928 .78 2,831,215 .81 2,831,005 210 Italy ................................... 6,822,159 .71 .14 6,002,231 1.72 6,002,231 __ Sweden............................... 6,441,911 .67 2,690,992 .44 3,750,919 1.08 3,750,919 __ India................................... 5,951,302 .62 4,587,066 .76 1,364,236 .39 1,292,716 4,542,087 71,520 Netherlands...................... 5,069,373 .53 527,286 .09 4,542,087 1.30 Ecuador ............................. 5,019,780 .52 5,018,968 .83 812 __ 812 __ Argentina ......................... 4,236,224 .44 1,718,964 .28 2,517,260 3,794,115 .72 263,189 2,254,071 Germany ........................... 3,869,839 3,830,227 .41 75,724 .01 1.09 3,794,115 __ British East Indies......... .40 3,819,442 .63 10,785 — 4,386 6,399 Korea ................................. 3,407,350 .36 — __ 3,407,350 .98 — 3,407,350 Arabia ............................... 3,389,213 .36 3,223,262 .53 165,951 .05 165,951 Hongkong ......................... 3,239,861 .34 240,294 .04 2,999,567 .86 1,344,511 1,655,056 Switzerland....................... 3,081,162 .32 2,118,344 .35 962,818 .28 962,818 Norway ............................. 3,070,228 .32 624,976 .10 2,445,252 .70 2,445,252 __ Brazil ................................. 3,032,025 .32 3,027,680 .50 4,345 — 4,345 __ British Africa ................. 2,951,838 .30 86,998 .01 2,864,840 .82 2,210,740 654,100 Persia................................. 2,658,242 .28 2,658,240 .44 __ — — Hawaii ............................... 2,565,931 2,384,712 .27 1,466,114 .24 1,099,817 .32 735,634 364,183 Austria............................... .25 312,112 .05 2,072,600 .59 2,072,600 840,044 Spain ................................. 2,245,328 .24 1,397,754 .23 847,574 .24 7,530 Cuba ................................... 1,454,932 .15 1,454,932 .24 __ — — Australia........................... 1,400,814 .15 996,602 .16 404,212 .12 11,739 392,473 French Africa ................. 1,187,715 1,058,253 885,046 .12 — — 1,187,715 .34 1,215 1,186,500 Siam................................... .11 121,618 .02 936,635 .27 738,527 198,108 Czechoslovakia ................. .09 305,046 .05 580,000 .17 580,000 Malaya............................... 826,961 .09 57,680 .01 769,281 .22 693,733 75,548 French East Indies........ 816,942 .09 — — 816,942 .23 116,164 700,778 Mexico ............................... 775,126 .08 758,110 .13 17,016 __ __ 17,016 Panama, Republic of ... 716,466 .08 12,000 704,466 .20 704,466 Uruguay ........................... 616,300 .07 594,982 .10 21,318 .01 21,318 __ Colombia ........................... 509,634 .05 210 509,424 .15 509,424 British New Guinea .... 438,131 .05 __ __ 438,131 .13 __ 438,131 Russia ............................... 421,388 .04 421,388 .07 __ __ __ Ceylon ............................... 361,414 .04 361,414 .06 __ — __ __ Portugal............................. 345,829 343,324 .04 117,040 .02 228,789 .07 228,789 __ Costa Rica ....................... .04 343,324 .06 __ — __ __ Palestine ........................... 332,000 .04 — __ 332,000 .10 203,000i 129,000 Porto Rico......................... 246,375 .03 19,306 227,069 .07 227,069 Portuguese China .......... 227,000 .02 — __ 227,000 .07 __ 227,000 Egypt................................. 170,966 .02 170,966l .03 __ — __ __ Guam ................................. 148,604 .02 — __ 148,604 .04 76,715 71,889 Panama (Canal Zone) . 99,214 .01 — __ 99,214 .03 99,214 Turkey ............................... 83,354 .01 142 83,212 .02 73,600 9,612 New Zealand..................... 81,568 .01 75,320> .01 6,248 — 6,248 Venezuela ......................... 68,387 .01 42,3881 .01 25,999 .01 25,999 Peru ................................... 50,406; .01 42,314 .01 8,092 — 8,092 Dutch West Indies.......... 49,048 — __ 49,048 .01 49,048 British West Indies .... 48,232 48,232 .01 — — __ Dutch Guiana................... 45,221 — __ 45,221 .01 45,221 __ Dominican Republic .... 39,716 36,728I .01 2,988 — 2,988 Paraguay ........................... 30,352 25,972 30,352 — — — __ British Honduras............. — __ 25,972 — 25,972 Finland .....’................... 25,390 21,986 1 — 26,39C1 — — — __ Ireland ............................... 7,714L — 14,272 — 14,272 Aden................................... 17,941 — — 17,941 — 17,941 British Oceania .............. 17,086 17,086 — __ — __ __ Nicaragua ......................... 11,993 — 8,668 — 3,325 — 3,325 Chile ................................... 7,001 — __ 7,001 — 7,001 __ Salvador ........................... 2,411 — — — 2,411 — 2,411 __ Haiti................................... 1,186 — — — 1,186 — 1,186 Azores and Madeira lands ........................... 1,004 — 1,004 — Liberia ............................... 872 — — — 872 __ 872 Honduras ........................... 747 — — — 747 __ 747 British Guiana................. 180 — — — 180 __ 180 Jugoslavia ......................... 34 — — — 34 — 34 — 376 October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 377 In handling the world’s municipal water supplies—from the great me tropolis of London to post-war in stallations in Greece—Worthington Pumps outnumber all others. One reason is that Worthington builds more types of pumps than any other manufacturer—meeting every possible operating condition and every local requirement. Foremost In Experience Also, Worthington has the longest and broadest experience in the field. Pumps for the first water works in the world using a pressure system were built and installed by Worth ington, and this organization has consistently led the way in design and manufacture. For best service to your own com munity, investigate the pumps and numerous other machines that have won international preference. Write to Worthington Pump and Machinery Corporation, Export De partment, Harrison, Nero Jersey, U. S. A. WORTHINGTON THE SIGN OF VALUE AROUND THE WORLD F.7.21F 378 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 Imports and Exports by Nationality of Traders January to June, 1948 By the Bureau of the Census and Statistics Nationality Total Trade Imports Exports Domestic Exports Re-exports 955,200,805 606,135,260 349,065,546 318,267,660 30,797,886 Total American........................... 340,221,505 168,405,856 171,815,649 159,749,173 12,066,476 Chinese............................... 307,618,647 242,758,328 64,860,319 63,020,227 1,840,092 Filipino ............................. 210,701,842 136,382,928 74,318,914 61,106,893 13,212,021 British ............................... 37,922,080 23,225,728 14,696,352 13,947,603 748,749 Spanish ............................. 21,970,224 4,454,622 17,515,602 17,479,412 36,190 Swiss ................................. 15,289,481 15,198,014 91,467 57,754 33,713 British-Indian................... 5,781,074 5,640,768 140,306 97,234 43,072 Syrian ............................... 5,454,565 5,254,136 200,429 200,429 — Dutch ................................. 2,703,390 .91,524 2,611,866 509,850 2,102,016 French ............................... 2,498,102 1,383,304 1,114,798 528,400 586,398 Panama ............................. 1,337,662 1,337,662 — — — German ............................. 768,811 68,756 700,055 700,055 __ Danish ............................... 736,945 2,926 734,019 733,819 200 Swedish ............................. 714,058 714,058 — — — Turkish ............................. 625,338 625,338 — — — Argentinian ..................... 330,417 262,032 68,385 67,225 1,160 Siamese ............................. 121,372 170 121,202 — 121,202 Dutch-Malayan................. 91,349 89,300 2,049 — 2,049 Jewish ............................... 87,983 24,950 63,033 63,033 — Armenian ......................... 64,872 62,812 2,060 460 1,600 Italian ............................... 48,718 48 718 Norwegian......................... 45,890 45,190 700 700 — Austrian ........................... 20,934 20,934 British-Malayan............... 13,890 13,890 — Portuguese ....................... 12,613 7,220 5,393 5,393 — Polish ................................. 3,580 1,032 2,548 — 2,548 Hondurian......................... 2,342 2,342 — — — Greek ................................. 1,712 1,712 — — — Czechoslovakian ............... 1,344 944 400 — 400 We are ready to receive magazine subscriptions and to forward these promptly to the publishers. The Magazine Subscription Section is set up in our main office, Port Motors Building, Port Area. NOTE: If you placed n magazine subscription with ua between the dates of October 2 and October 11. will you please let us check yeur copy of the invoice so that we may reconstitute our records. Will all subscribers who placed their magazine subscriptions thru us please send us the stencil from the next issue of each magazine they receive. Write on the back the name of your magazine. We will use these stencils to reconstruct our card system on your subscriptions. If you had an order on file with us at the time of the fire on October 11, whether it called for one book or a hundred books, will you please let us have a copy of the order so that we may be sure to attend to it properly as our new shipments come in. We need your help in reconstituting these records. PHILIPPINE EDUCATION COMPANY Retail-Educational Depts. Accounting & General Offices PORT MOTORS BUILDING PORT AREA, Tel. 2-95-51 P. a BOX 620 MANILA Wholesale Department Magazine & Confectionery Dept. Music Department DERHAM BLDG., (Ground Floor) PORT AREA, Tel. 2-94-76 October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 379 Belgian..................................... 1,000 1,000 Russian ................................... 1,000 1,000 Irish-(Free) ........................... 268 268 Slovakian................................. 128 128 Egyptian ................................. 50 50 Ecuadorian ............................. 40 40 Hungarian............................... 30 30 Others ..................................... 7,550 7,550 Principal Exports, First Half Year, 1948 1947 I. Copra— Article and Country Unit 1947 1948 Quantity Value | Quantity I Value Denmark ......... Germany ......... Belgium ............ Portugal ......... Other countries 12,168 13,320 11,412 11,170 5,097 2,745 2,635 15,391 1,479,617 1,239702 1,108,519 1,092,195 606,593 383,367 228J89 1,311,242 8,210 726,265 12,916 1,213,357 21,148 2,030,601 3,800 437,631 50 6,175 775 81,876 25,940 2,323,706 484,969,564 P181.133.094 Total—Kilo. 332,144,592 United States . 190,908,689 104,833,1 14 267,427,183 100,265,114 France .............. 35,430,891 18,902,508 46,137,893 17,143,688 Denmark ......... 18,215,657 9,376,3 10 30,321,864 12,048,653 Poland ............. 15,748,048 8,597,503 5,080,000 973,125 Japan ................ 16,828,089 8,262,742 — — Canada ............ 12,446,912 7,261,615 14,493,306 5,552,846 Italy ................ 10,104,190 4,818,778 24,385,096 7,993,397 Netherlands .. . 6,502,414 3,743,464 7,965,000 1,615,400 Germany ......... 4,892,040 2,498,273 — — Austria ............ 3,454,400 2,072,600 7,416,800 3,076,11! Other countries 17,613,262 8,640,744 81,742,422 32,464,720 2. Abaca, unmanufactured— Total—Bale.. 363,446 P 3 5,280,1 30 373,434 P 35,827,083 United States . 164,960 17,772,377 280,709 27,118,907 Japan ................ 76,978 6,660,687 — — Great Britain . 47,570 3,397,042 19,886 1,888,565 5. Coconut oil (inedible and cd:ble) — 3. Desiccated coconut— Tocal—Kilo. 30,044,967 P 3 1,396,367 5,989,188 P 5,578,066 United States . 29,708,947 30,977,892 5,839,321 5,415,478 Canada ........... 303,362 375,73 1 34,012 34,650 Hawaii ............ 32,658 42,744 16,085 22,338 Hongkong .... — — 99,770 105,600 4. Sugar— Total—Kilo. 118,680,079 P 22,032,386 - - United States . Netherlands. . . 1 18,680,019 60 22,032,362 24 z z Total—Kilo.. 19,920,109 P 17,876,850 5,379,832 P 4,126,680 AVAILABLE IN STOCK FOR IMMEDIATE DELIVERY Galvanized Steel Sheets Corrugated No. 26 x 8 ft. REYNOLDS Aluminum Roofing Sheets Corrugated and Plain Reinforcing Steel Bars ATLAS Portland Cement Ceiling and Partition Boards *CANEC Boards 5/16" & 1/2" x 4' x 8' *Panel Boards 1/4" x 4' x 4' *ASECO Boards 3/16" x 4' x 8' *PABCO Plasterboards 1/4" x 4' x 8' *MASONITE Tempered Boards 1/8" x 4' x 8'& 4' x 12'; 3/16" x 4' x 12' *KENM0RE Boards 3/16" x 4' x 8' STANLEY, CORBIN and YALE Builder’s Hardware Metal Lath 27" x 96" ATLAS White Cement KEENE’S Cement ALSOCO Aluminum Solder Bathroom Glazed Wall Tiles White and Ivory Machine Bolts and Nuts Plain Galvanized Wire LUCAS Paints *METRO Prepared Paints for Interior and Ex terior Surfaces *LUCATONE Water Paints for Interior Walls and Ceiling *LUCASINA Paint in Powder for Concrete, Bricks and Plaster *GIBBSBORO Colors in Oil Etc. ---------------------------Also---------------------------Mill Supplies Ship Chandlery Plumbing Supplies General Hardware CHAM SAMCO & SONS, INC. DIRECT IMPORTERS 300-308 Sto. Cristo, Manila Telephone 2-81-72 380 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 United States 18,258,690 16,276,526 3,110,074 2,400,840 Italy .............. 1,012,544 93 5,016 325,000 236,000 British Africa 590,047 5 89,71 1 — — Arabia ........... 52,991 67,758 — — Jipm 5,010 6,143 __ __ Guam .............. 810 1,680 __ Hongkong . . . 17 16 — — Netherlands. . — — 1,477,296 1,119,840 __ 467,462 370,000 6. Embroideries— Total— . . . P 5,057,372 P 369,705 United States 5,057,3 36 360,109 36 3,663 Guim .............. — 5,933 7. Copra Meal or QaPc_ Total—Kilo 30,005,15 1 P 4,489,056 9,234,45 5 P 1,630,414 Sweden ......... . 14,157,133 2,071,654 5,991,421 1,169,088 Denmark . . . . 9,239,366 1,439,340 2,276,634 306,500 Netherlands 4,171,850 595,332 107,325 18,444 United States 1,850,081 275,850 — — 485,030 90,865 151,875 28^82 Italy .............. 101,600 16,000 French Africa 91 15 — — __ 707,200 108,000 8. Chromite— Total—Kilo . 114,819,581 P 2,25 3,726 3,048,000 P 120,000 United States . 105,691,481 2,105,721 3,048,000 120,000 Great Britain 9,128,000 148,000 — — Belgium ......... 100 5 — 9. Rope— Total—Kilo . 1,946,597 P 2,058,237 1,206,5 1 1 P 1 ,5 5 1,302 Malaya ............ 524,5 50 5 5 0,145 127,157 1 82,3 86 United States . 492,342 465,605 565,293 669,500 Dutch East Indies ......... 228,127 240,875 12,560 13,890 French East Indies ......... 94,368 116,164 22,142 3 3,5 93 British Africa 82,482 113,373 129,261 184,987 Arabia ............ 67,192 98,193 8,090 11,414 Hongkong .... 66,181 75,287 60,45 1 79,159 79,128 70,05 3 36,278 51,427 China 42,487 62,306 54,982 76,259 Panama, Canal Zone ........... 38,948 48,746 18,745 27,23 5 Other countries 230,792 217,490 171,552 221,452 10. Lumber and Timber Total—Bd. Ft. 7,779,437 P 1,829,482 United States . 6,953,752 1,672,091 — — China ........... 764,305 137,575 — — Hawaii ......... 61,350 19,786 — — Hongkong .... 30 30 — — Other Exports including ReExports .. P 47,784,289 P 20,343,456 Total Export P349.065.546 P250,679,800 Inside and out, the Futuramic Oldsmobile 4-Door Sedan bears the un mistakable stamp of quality... quality in design, quality in engineering, quality in craftsmanship. In this car, all the advantages of Futuramic design are seen at their very best. The extra visibility, the riding comfort, the handling ease... the eye-catching smartness and breath taking style... all are here combined to make this luxury sedan the proudest achievement of Oldsmobile’s fifty-year history. LIDDELL a COMPANY, INC. 85 THE HOUSE OF FRIENDLY SERVICE 13TH AND CHICAGO STS., PORT AREA, MANILA TEL. 2-90-40 October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 381 Principal Imports, First Half Year, 1948 Compared with First Half Year, 1947 Article and Country 1948 I 1947 Value | Value 1. Cotton and manufactures— Total .... P 71,187,038 P 83,743,230 United States . 63,45 5,078 78,736,164 China ................ 9,441,372 1,988,464 Great Britain .. 778,884 610,140 Switzerland ... 509,682 1 89,958 Japan ................ 507,267 — France ................ 233,754 1 52,450 Belgium ............ 92,676 — Canada .............. 54,366 — Czechoslovakia . 40,814 — Hongkong .... 25,720 — Other countries 47,430 2,066,054 3. Grains and preparations— P 75,052,710 Total ......... P 42,874,906 United States 32,528,368 55,804,978 Ecuador ........... 5,006,400 4,541,016 Canada .............. 3,917,906 8,609,850 China ................ 832,124 685,844 Great Britain . . 303,772 — Australia ........... 166,340 86,546 Siam .................. 80,5 50 4,966,620 Denmark ......... 31,970 97,182 Switzerland . . . 2724 — Hongkong . . . . 2,538 — Other countries 2,214 260,674 6. Iron and steel and manufactures— Arabia ................ 3,223,262 2,658,036 1,638,512 2,977,348 Switzerland . . . 3,650 — Great Britain . . 1,034 5,126 Australia ........... — 46,546 Netherlands . . . — 3,088 Italy .................. — 1,232 Total ......... P 30,173,814 P 20,424,424 2. Rayon and other synthetic textiles— Total ......... P 60,1 33,860 P 46,591,710 United States China ................ Switzerland . . . Italy .................. Belgium ............ 4. Automobiles, parts of and tires— Total . . . . . P 33,323,240 P 26,132,778 United States 33,162,546 25,928,028 Great Britain . . 124,794 77,728 France ............. 27,570 66,290 Italy ................... 5,624 50,906 Switzerland 2,452 — Canada ............ 254 6,618 China .............. — 3,208 United States . 25,287,140 17,415,226 Belgium ............ 1,764,134 1,094,586 China ................ 1,532,3 12 1,146,166 Japan ................ 682,462 — Great Britain . . 626,096 546,374 Sweden .............. 108,698 56,090 Italy .................. 73,818 — Netherlands ... 29,546 3 5,862 Austria .............. 15,412 — Australia ........... 12,702 26,728 Other countries 41,494 103,392 7. Tobacco and manufactures— Total ......... P 23,509,412 P 26,011,836 Hongkong .... France .............. Sweden .............. Other countries 5,656 4,728 3,634 1,876 1,662 1,492 7,476 1,388 17,778 5. Mineral oils (petrokum products)— Totai ......... P 31,343,642 P 14,879,858 United States . 12,434,842 5,654,990 Dutch East Indies 9,273,654 1,548,086 British East Indies 3,749,164 3,004,930 United States . 23,509,028 26,01 1,702 Hongkong ......... 258 — China ................ 78 30 Great Britain . . 36 104 Canada .............. 12 — (Continued on page 418) America's first 1949 cars PORT MOTORS, INC. (Located at Manila Trading & Supply Co.—Port Area) The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source AUGUST 31 — President Elpidio Quirino informs the Cabinet that the Philipines and Argentina have agreed to an early exchange of diplomatic representatives. The Cabinet decides that the Philippine Iron Mines, Inc. may comply with the insistent request of SCAP to ship 200,000 tons of iron ore to Japan dur ing the next 12 months provided it be converted into construction materials to be shipped back to the Phil ippines. Announced that the Government is considering the purchase for subdivision and sale to the tenants of the Quezon family hacienda at Arayat, Pampanga, and the estates of Secretary of Education Manuel Gallego and of Felipe Buencamino, both in Nueva Ecija. The President asks the new Labor-Management Board to make a study to determine what would con stitute a “living and reasonable wage” for each cate gory of workers in the various parts of the country. The Malacanan Office of Public Information states that the President will ignore the open letters of Hukbalahap leader Luis Taruc, published in some of the newspapers. September 1 — Reported that a volcano on Camiguin Island, off northern Mindanao, is in eruption for the first time since 1871. A typhoon, followed by floods, does considerable damage in Central Luzon. Destruction of certain water-works disrupts the water-service in a part of Manila. Sept. 2 — The President instructs Arsenio Luz, Chairman of the Surplus Property Commission, to suspend all officials and employees who have been re commended for prosecution by the Horilleno Investi gating Committee and also to eliminate the allegedly numerous cases of nepotism in the organization. Sept. 3 — Servillano de la Cruz, Chairman of the National Rice and Corn Corporation, states there need be no fear of a rice-shortage as his firm will receive during September, including cargo already in the Bay, some 33,406 tons of rice, chiefly from Siam, Burma, and Ecuador. Sept. 4 — Reported that two-thirds of the 52,000 inhabitants of Camiguin Island have already been evacuated to the mainland, Bohol, and other places, by private and government vessels which rushed to the scene. The Government and the Red Cross are sending aid. Sept. 7 — The Cabinet reaffirms the policy re cently adopted under which the Commissioner of Cus toms is to “use sparingly his discretionary power to allow ocean-going steamers to call at subports to load cargo.” Reasons given: such calls deprive inter island lines of their legitimate business; due to in adequacy of customs supervision at such ports, the Government may be deprived of legitimate revenue; may result in smuggling in of goods and undesirable foreigners. Sept. 8 — Announced that the Control Commit tee of the Government Enterprises Council has entered into a contract with Charles Choy (Philip pines), Inc. jointly with Mollers’ (Hongkong), Ltd., for clearing and salvaging vessels, scrap metal, etc. in Philippine waters. The contractors will erect a Pl,000,000 re-rolling mill to reprocess scrap of which 11,000 tons will be finished as reinforcing steel rods and bars to be sold to the Government at P232.43 a ton, and within 30 days the contractors will move in salvaging and other equipment worth £2,000,000. The contractors will post a general performance bond of £100,000, will pay in advance before the beginning of operations £200,000, and will post an additional bond of £200,000 to guarantee the reprocess provi sions. It is estimated the contractors will make a minimum recovery of 100,000 long tons of scrap metals. Operations will begin within 90 days under the supervision of a British salvage expert, Captain W. A. Doust, C.B.E. Sept. 9 — The President confers with members of the U. S. Philippine War Damage Commission, the U. S. Public Roads Administration, and the Depart ment and the Bureau of Public Works on the public works projects to be undertaken under the £240,000,000 appropriation in the Rehabilitation Act. Chair man F. A. Waring of the War Damage Corporation has said that the law provides that these projects must be completed by the end of the 1950 fiscal year, and the President is perturbed over reports that due to lack of equipment and financial resources, some contractors will be unable to complete the projects in the time allowed. Waring explains that the Commis sion advances 50 c/c in cash of the total amount needed for a project and gives the remainder as the work progresses and that during the last 15 months the Commission has been making such advances at the rate of £1,000,000 a week, or a total of £68,000,000. Of the total 931 public works projects already awarded, work is now being undertaken on 226. He states that the Commission has sent no less than 200 letters to provincial officials urging them not to delay work on their respective projects. The President states the Government will cooperate to the fullest extent and authorizes the Surplus Property Commission to al low contractors to reserve equipment in the surplus depots which they may want to use. Sept. 13 — The President accepts the resignation of Secretary of Justice Roman Ozaeta who will be re-appointed to the Supreme Court; Associate Justice Sabino Padilla will resign from the Court and will be appointed to take Mr. Ozaeta’s place as Secretary. The President issues an executive order (No. 171) waiving the additional progressive taxes which were to have been collected from the sugar mills on the 1947-48 sugar crop. Sept. 14 — Announced that Executive Secretary Emilio Abello has resigned and will assume the posi tion of Minister-Counselor at the Washington Embas sy, replacing Narciso Ramos who will head a diplo matic mission to Argentina. Teodoro Evangelista, 382 Acting Under-Secretary of Foreign Affairs, will be come Executive Secretary. The President appoints Jorge B. Vargas and Gil J. Puyat as Chairman and member, respectively, of the National Urban Planning Commission. The President orders the suspension of all of ficials of the Surplus Property Commission accused in new complaints filed in court yesterday. Chair man Luz, charged with negligence, is included among these officials. Secretary Abello reporting that he has received numerous protests against the order on the cargo loading at subports by ocean-going vessels, the Pres ident states that the order has been misinterpreted and does not mean an absolute prohibition. The President instructs Secretary of Commerce and Industry Placido Mapa to inquire into complaints from the provinces that rice handled by PRATRA is being sold at a higher price than NARIC formerly charged. Willis G. Waldo, consultant on ramie to the National Development Company, submits a report to the President stating that the Philippines offers vast possibilities for ramie culture but that it would take from 2 to 3 years to get into large-scale production. Reported that the volcanic disturbances on Camiguin are subsiding and that evacuees may be re turned within a few days. Sept. 15 — The President appoints Secretary of the Interior Jose C. Zulueta as Chairman of the Sur plus Property Commission. Abello and Evangelista are given the appointments announced yesterday. Reported that the Government will make repre sentations to the United States Government for an extension of the time-limit for the construction or reconstruction of public works under the Rehabilita tion Act. Sept. 16 — The President confers with Charge d’Affaires T. H. Lockett on the matter of extending the time-limit for public works undertaken under the Rehabilitation Act. The International Bank for Reconstruction and Development, Washington, announced yesterday that the Philippines has made formal application for a loan to finance the foreign exchange cost of four hydro-electric power projects and a fertilizer plant. Sept. 17 — The President appoints Sabino Padi lla as ad interim Secretary of Justice and Roman Ozaeta as ad interim Associate Justice of the Su preme Court. He also designates Major Andres 0. Cruz and Major Bartolome C. Cabangbang as Act ing Administrator and as ad interim Deputy Admi nistrator, respectively, of the Civil Aeronautics Ad ministration. The President convenes the National Economic Council for‘the first time since he assumed the Pres idency and refers three reports to the body for study: (1) the special committee’s report on the transac tions of the National Coconut Corporation, (2) the report of NACOCO Manager Maximo Kalaw, and (3) the Waldo report on ramie. The President in structs the Council to consider the recommendation of the special committee that the functions of NACO CO be limited to research work. The Corporation, according to the committee, has lost around P4,000,000 in “unauthorized transactions.’’ The President issues an executive order (No. 175) amending Order No. 58 with reference to vessels sunken or beached in Philippine waters dur ing the last war and not removed by their owners. The Philippine Government Employees Associa tion petitions the President to use his emergency powers in providing for the cash payment of a part of the back-pay due to government employees under the Back-pay Law. The Korean Goodwill Mission, headed by Dr. Pyung-Ok Chough, arrives in Manila. Banking and Finance By C. R. Leaber Manager, National City Bank of Neto York iOMPARATIVE Financial Summary of Thir, teen Manila Banks compiled from reports issued weekly by the Bureau of Banking: (Monthly averages — 000 omitted) Loans, Discounts, and Advances September, 1'948 P434.680 August, 1948 P408.164 September, 1947 P329.106 September, 1948 Pl,009,544 Total Bank Resources August, 1948 P992.850 September, 1947 P795,603 Bank Deposits (Public Funds Not Included) September, 1948 August, 1948 September, 1947 P447.662 P457.197 P388.824 Debits to Individual Accounts September, 1948 August, 1948 September, 1947 ?105,010 P104.112 P118.139 Currency in Circulation (Circulation Statement issued by Treasurer of the Philippines) September SO, 1948 August SI, 1948 September 30, 1947 P834,831,236 P838,173,532 P725,239,914 Some acceleration in the business tempo was discernible in October. Sales reflected some improve ment, and collections were a little more prompt. The shipping strike on the West Coast had the expected stimulating effect on prices of imported food-stuffs, and in general the smaller arrivals, as a result of the strike, relieved the pressure somewhat on inven tory financing. The steady growth over recent months in the amount of bank loans and advances outstanding, attests to a considerable demand' for credit to finance trade, investments, agriculture, and industrial development. The expansion in the note issue was halted in August and September, but it would not be surpris ing to see currency in circulation increase again be tween now and the end of the year. Customarily we avoid making predictions in this column on the future trend of business here, or any where else. It seems worth while to mention how ever, for what it be worth, that some commentators on business affairs in the United States are cautious ly advancing the opinion that the inflationary forces AMERICAN CHAMBER OF COMMERCE JOURNAL 384 are weakening. There have been occasional excep tions to the following general statement, but by and large, prices and business conditions here react fair ly quickly to prices and business conditions in the United States. Markets can so quickly discount changes in the demand-supply outlook once the fun damental factors are seen to be working in a new direction, even though their full effects are still some distance off. Perhaps we can begin to eliminate from our business thinking the probability of further great advances in the general price level. American Stock and Commodity Markets By Roy Ewing Sivan, Culbertson & Fritz August 28 to October 27, 1948 SINCE our last review in this column, the New York stock market has recorded both a minor low and a minor high in the current secondary reaction. On September 7, with the Industrial Aver age at 185.36 and the Rails at 63.12, the critical European situation and worsening news from Mos cow and Berlin caused considerable nervous liquida tion and the market sold off sharply until Septem ber 27 when the senior average stood at 175.99, a new low since March of this year. Since that date, how ever, the market has zigzagged upward in healthy October-November, 1948 fashion and at present writing both averages stand within sight of the highs for the year. In addition to the foreign tension, other causes of the September slump were (1) the Federal Re serve Banks second anti-inflation move, and (2) the spreading of recession-fear as consumer demand in more and more lines becomes filled. The market strength which followed, however, has tended to con firm the opinion which Wall Street has advanced for some time, that “everything is up but the stock market.” Supporting this, the bulls contend that earnings and dividends in many industries could de cline substantially from present levels and still justify current market prices, as, for example, the following: Earnings Earnings Divi dend Market Prices Stock 1947 1st Half 1948 1947 October 26, U. S. Steel ... $11.71 $6.20 $5.00 1948 $86.00 Socony Vacuum Oil .......... 3.13 2.28 1.00 19-5/8 General Motors 6.25 4.55 3.00 65-3/8 Erie Railroad . 1.16 1.41 1.00 15-7/8 Phelps Dodge . 8.64 4.87 4.20 57-1/8 According to the Dow Theory the primary trend has been bullish since May of 1947. The sell-off which started in July and terminated in late September, appears to have been a normal secondary reaction, although it did approach so close to theoretical limits as to cause some interpreters of the theory to call the last decline the first leg in a bear market. A decline from current levels through the September A LIFETIME... almost Our pride in the record of our growth is not so much in floor space nor in sales totals, as it is in the type of satisfied customers of national reputation that we serve . . . by the experience . . . and the enviable position of leadership we enjoy in printing today. This is a record of skillful hands thathave acquired almost a lifetime of training in the art of printing. • OFFSET • LETTERPRESS OFFSET LITHOGRAPHERS ■ PRINTERS .TELEPHONE 2-73-53 2057 AZCARRAGA, MANILA October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 385 lows would confirm this but present market strength and bullish volume indications strongly favor an ex tension of the upward move. /COMMODITIES moved in a narrow range. New ^York spot cotton is 31.74 as compared to 31.66 two months ago, but did sell as high as 32.40 on Sep tember 16. The biggest crop since 1937 was offset by the Department of Agriculture agreeing to make the loan applicable to cotton stored on farms instead of only in approved warehouses, and has resulted in cotton going into the loan at a heavy rate. The December contract of Chicago wheat is 229-7/8, against 227 on August 30; the main factor remains the government support through loans and purchases. Nearly 100,000,000 bushels have gone into the loan as compared to 20,000,000 last year. The crop es timate on October 1 was 1,283,770,000 bushels. De cember corn is 137-5/8 as compared to 138-7/8 two months ago. The crop estimate on October 1. was 3,567,955,000 bushels, 10% above the 1946 record. The anticipated government support level is around $1.60, but the market is about $0.20 below this because of insufficient storage. The sugar market in New York was quiet but fully steady, the December No. 5 contract being quoted today at 5.30 bid as compared to 5.12 two months ago. Manila Stock Market By A. C. Hall A. C. Hall & Company August 15 to October 1 THE Berlin crisis has continued to be the most important market factor. In sympathy with hopes that the Kremlin conversations might pro vide the basis for a settlement, prices staged a mode rate recovery during the latter part of August. Sub sequent developments, however, have failed to justify optimism, as the situation has since suffered further deterioration. Locally, the business outlook has not been inspir ing, as general conditions have continued unsatisfac tory. Credit has become tighter, and strikes still mar the labor picture. A further source of worry to the business com munity is the approach of import controls. It now appears that these will be imposed on a much wider variety of goods than was previously understood, but there is no precise information at this time as to how far restrictions will eventually be extended. By the adoption of controls, traditional freedom of trade will be abandoned, and it is to be hoped that the import trade can be regulated successfully enough to prevent further dislocation of the internal price level. With a change of such economic importance in the offing,' it is not surprising to find great indeci sion manifesting itself in our securities market. Pending clarification of current uncertainties, trad ers and investors alike are mostly on the sidelines; in consequence trading-volume has shrunk to very small proportions. While present prices appear to have largely dis counted all known bearish factors, it seems unlikely that the market will shake off its present lethargy in the near future, without some important shift in the news. even If qou meet an accident! Almost everyday, newspapers carry items of people being killed in motorcar accidents. Yet, these items do not make the headlines... be cause being killed in a motorcar accident has ceased to be important news—it happens daily. You, as a pedestrian, can avoid accidents but “you cannot prevent them from happening!” Protect yourself from any eventuality by se curing a HARTFORD ACCIDENT POLICY. Send us the coupon below for particulars. - HARTFORD . CONNECTICUT f AMERICAN0 FACTORS (PHIL) INC. ■ INSURANCE DEPT. ■ Mary Bachrach Bldg., 25th Street g Port Area, Manila ■ Send me particulars about your HARTFORD • ACCIDENT POLICY. I NAME..................................................................AGE............. J 4DDRESS ................................................................................. ■ OCCUPATION ........................................................................ 386 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 In addition to the foregoing, unlisted mining is sues were traded as follows: Amalgamated Mine rals, 15,000 at 21/2 centavos; Antipolo Mining, 145,000 at 11 and 12 centavos; Benguet Consolidated, 63,000 shares from P3.35 to P2.80, closing at P2.95; Eastern Development, 90,000 shares at P.0035; and 1,050 shares Philippine Iron Mines from P16 to P31. Commercial and Industrial yVZ'HILE volume of business in the commercial and W industrial section has been very slow, leading sugar issues have continued in demand at improved prices. Tarlacs were an exception on the resumption of Central Luzon operations against the Huks. Dis appointment over San Miguel dividend-action, caused substantial liquidation in this issue. Unlisted commercial stocks traded during the month included: 33 shares Heacocks at P105; 3,500 shares Jai Alai from P22 to P18; 5,500 shares Manila Jockey Club from P2.15 to P2.10; 100 shares Philip pine American Drug (Botica Boie) at P140; 100 shares Polo Plantation Company at P500; and 155 shares Victorias Milling Company at P135. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. EFFECTIVE July 1, 1948, the National Internal Revenue Code was changed to provide for the collection of sales taxes before the articles, whether imported or locally produced, leave the cus tomhouse or factory warehouse. This new require ment is already having an effect on the cash posiENGINEERING EQUIPMENT AND SUPPLY COMPANY MACHINERY—MECHANICAL SUPPLIES—ENGINEERS—CONTRACTORS General and Sales Offices 174 MARQUES DE COMILLAS MANILA, P. I. TEL. 2-61-05 Engineering Shops No. 1 CALLE L. SEGURA PASIG RIVER, MANDALUYONG TEL. 6-65-68 OPERATING (A) Machine Shops (B) Steel Plate Shops (C) Structural Steel Shops (D) Welding Shops (E) Blacksmith Shops (F) Sheet Metal Shops (G) Marine Railway SPECIALIZING ON Steel Tanks of all Types and Sizes, Steel Truck Tanks, Steel Truck Dump Bodies, Mine Ore Cars, Steel Fabrication and Erection, Sheet Metal Fabri cation and Erection, Machinery Installations and Repairs, Marine Repairs. October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 387 sary to have on hand sufficient capital to finance the advance payment of taxes until the merchandise is sold. We estimate that a very considerable amount of money is now tied up in taxes paid in advance and consequently unavailable for the current settlement of normal business obligations. Until recently civil court cases involving sums of money over P1000 came under the jurisdiction of the courts of first instance. Now it has been decided that the municipal courts of Manila may handle cases filed in connection with sums up to P2000. We be lieve that the majority of suits for recovery of bad debts fall within this limitation. Just how satisfac tory the new arrangement will be, remains to be seen. We hope that with the continued increase of litigation over delinquent accounts, the municipal courts will be able to settle cases with a minimum of delay and confusion. IT has always seemed to us highly unnecessary to send collectors after checks which could just as readily be remitted by mail. Although the use of collectors has decreased somewhat since the war, there is still a great deal of room for improvement. Most business houses would probably welcome some sort of campaign to simplify normal collection work. As of October 1, 1948, membership in the As sociation of Credit Men, Inc. (P.I.) stood at 66, highest in the history of the organization. Interest in the work of the Association continues to be keen and several new projects are under way for the benefit of the various member firms. Electric Power Production Manila Electric Company System By J. F. Cotton Treasurer, Manila Electric Company 1948 1947 January ............................... 27,301,000 17,543,000 K February ............................. 26,021,000 17,503,000 I March................................... 26,951,000 20,140,000 L April ................................... 26,871,000 19,601,000 O May ..................................... 28,294,000 19,241,000 W June ..................................... 29,216,000 17,898,000 A July ..................................... 31,143,000 22,593,000 T August ............................... 31,993,000 * 23,358,000 T September ........................... 32,012,000 23,122,000 H October ............................... 33,914,000 * ♦ 24,755,000 O November ................................................................ 24,502,000 U December.................................................................. 25,725,000 R Total ............................................ ........................ 255,981,000 S ** Pnrtially estimated The tabulation above clearly shows the continuous rapid increase in demand for electricity. In October, output was 221% of the 1941 average output, and re quests for additional power still continue to pour in. The effects of this increased demand on the Manila Electric Company system, are explained in an article elsewhere in this issue. Comparisons of 1948 and 1947 output figures follow: Increase Over Previous Year September ..................................... 8,890,000 KWH 27.7% October ........................................... 9,159,000 ” 27. % Ten months ended 10/31/48 ........ 87,962,000 ” 42.7% REMEMBER THE FOLKS AT HOME! You cannot go wrong with if you want to send something special and dis tinctly superior to your relatives, friends, and business associates in the UNITED STATES. ALHAMBRA CIGARS enjoy wide popularity because of their outstanding quality and can be relied upon to please the most fastidious taste. Delivery to any address in the UNITED STATES can be effected through our New York Office, all expenses prepaid. Boxes are attractively wrapped in holly paper and your personal card can be enclosed, if desired. ★ For further particulars please contact ALHAMBRA CIGAR & CIGARETTE MFG., CO. MANILA 31 Tayuman, Tondo P.O. Box 209 Tel. 2-64-94 388 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 BUILDING CONSTRUCTION IN MANILA: 1936 TO 1948 Compiled by the Bureau of the Census and Statistics from data supplied by the City Engineer’s Office. MONTH 1936 (Value) | 1937 (Value) 1938 (Value) | 1939 (Value) 1940 (Value) 1941 I 1945 I 1946 I 1947 I 1948 (Value) | (Value) | (Value) 1 (Value) ! (Value) January . . February . March . . P 540,030 P 426,230 P 694,180 P 463,430 720,110 479,810 434,930 1,063,050 411,680 396,890 1,300,650 662,840 April May . June July............. August . . . September . . October . . . November . . December . . Total . . 735.220 400.220 827,130 302,340 368,260 393,100 663,120 460,720 648,820 659,680 670,350 459,360 691,190 827,660 777,690 971,780 320,890 849,160 770,130 1,063,570 754,180 756,810 627,790 684,590 718190 972,310 503,230 645,310 461,580 1,105,910 P6,170,750 FJ,530,690 P9,280,560 P9,053,250 Annual Average 514,229 627,557 773,380 754,438 495,910 622,050 554,570 1,029,310 1,139,560 809,670 Pl,124,550 P 891,140 P — P 1,662,245 P 3,645,970 P6,571,660 1,025,920 467,790 — 2,509,170 3,270,150 6,827,005 671,120 641,040 — 3,040,010 3,398,910 7,498,560 962,420 408,640 462,020 3,125,180 8,295,640 7,370,292 740,510 335,210 1,496,700 3,968,460 5,564,870 8,570,410 542,730 418,700 2,444,070 3,904,450 5,898,580 10,217,840 357,680 609,920 1,741,320 3,062,640 9,875,435 7,771,487 661,860 306,680 1,418,360 4,889,640 7,428,260 7,568,950 590,380 530,830 1,015,250 7,326,570 7,770,310 7,095,860 738,700 485,100 333,490 699,040 315,930 67,553 639,030 1,364,310 1,605,090 4,630,550 4,373,390 5,034,600 6,747,240 7,088,283 4,924,320 P8,234.460 P5,692,273 P12,186,150 P47,526,905 P73,907,248 686,205 474,356 1,015,513 3,960,575 6,158,937 Real Estate By C. M. Hoskins C. M. Hoskins & Co., Inc. REAL estate sales in Manila for September, 1948, totalled P4,757,580, represented by 298 trans actions. Of this total, 95% of the number of sales, and 65% of the peso value, involved transactions of P50,000 and below. The mortgage market shows a smaller amount of institutional funds available. Even the Reconstruc tion Finance Corporation is generally using its loan able mortgage funds for small home loans. Major building projects are still hard to finance, due to the low limit allowed to domestic savings banks. RFC of ficials anticipate that when the Central Bank is established they will have abundant mortgage funds to be released from the excess monetary reserves. A STANDARD in BUSINESS EFFICIENCY... No. 1660 F 60-INCH TOP DESK 1 1 Type Width Pedestal Storage Drawers 12" Drawer 23% " Letter Drawer 12.5/32” Knee Space 23.%" Sliding Shelves. Height Depth 5.9/16" 14%” 2,/t” 21.5/1G” 10.13/16" 22%" 25.%" Removable Partition for each Stor age Drawer, f Center Drawer Convenience Tray. 1 Compressor for Letter Drawer. Lock in center drawer locks all dra in modern business and professional procedure . . . in routine methods and technique... simplicity is the keynote. In the same modern spirit of construc tion. General Fireproofing metal desks and tables have been guided. GOODFORM ALUMINUM OFFICE CHAIRS No. 2327 Height of back front seat .............................. ld%” Height of scat from floor (Maximum) ... 19%" Height of seat from floor (Minimum) .. . IG%” Width of Seat ........... 19%" Depth of Scat ............ 17%" Width between arms 19” Weight ............................ 27 lbs. H. E. HEACOCK CO, * Th* Store of Quality 454 Dasmariiias St. * 16th & Atlanta Sts. Tels. 2-79-78 & 2-79-79 Tel. 2-94-89 & Tune in on KZPI for the HEACOCK’S TALK OF THE TOWN Program every Tuesday night from 7:30 to 8:00 and on KZRH for the PHILCO HOUR, BING CROSBY SHOW every Wedncsday night from 7:00 to 7:30. October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 389 Republic Act No. 273, approved last June, permits insurance companies to make loans on unimproved urban land. So far none of the companies appear to have formulated policies on the subject. The Debt Moratorium Law (Act No. 342) has given no help to pre-war subdivision operators. In many cases it appears that accumulated interest will run the obligation far above repossession value before the moratorium is lifted. REAL ESTATE SALES IN MANILA, 1940 TO 1948 Prepared by the Bureau of the Census and Statistics Note: A large percentage of 1945 sales and a diminishing percentage of 1946 sales, re present Japanese Occupation transactions not recorded until after liberation. January. . February. March . . . April. . . May.... June .... July. . . . August. . September October. . November . December . Total. . . 1940 P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 P17,974.844 1941 1945 1946 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 P10,647,285 1947 P 7,943,605 P 4,385,011 P 6,030,012 1,337,830 2,267,151 7,217,317 (?) 2,622,190 7,166,866 213,262 1,916,293 8,611,076 962,008 3,684,937 4,618,181 1,212,780 3,637,956 3,988,560 1,123,565 4,974,862 4,097,183 699,740 4,438,510 5,627,572 1,870,670 4,698,896 7,437,213 2.096,893 5,545,800 6,083,486 2,555.472 3,340,382 4,177,054 2,874,408 4,025,926 3,205,584 P22.890.133 P45,537,914 P68,260,104 Mechanical help can be excesslvel NO DOUBT When It comes to fast figuring BARRETT DOES IT FASTER EASIER AND CHEAPER There are marvels of modern of fice machinery like electronic computing machines and fully automatic calculators—veritable robots—but look at the prices! DOES YOUR BUSINESS WARRANT IT? The Simple, evor-recurrent routine of addition and multiplication comprises 00% of the figur ing work. Small, compact, handsomo BARRETT masters It at LOWER COST IN COMFORT. 1948 P 3,644,734 3,879,633 4,243,719 5,021,093 3,129,799 8,019,246 5,146,529 6,192,876 4,737,581 P44,015,210 ELECTRIC—P475.00 HAND-OPERATED—P325.00 Distributors F. H. STEVENS & CO., Inc. EL HOGAR FILIPINO BLDG._________ 5___________________MANILA 390 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 Owners of vacant land are arriving at the view that building costs will not be reduced substantially for many years to come, and are planning to go ahead and build at today’s costs. ELECTRICAL EQUIPMENT RELIABLE MOTORS GUARANTEED POWER This squirrel cage induction mo tor is but a part of a wide va riety of ALLIS-CHALMERS motors, which are recognized for their high efficiency and durability. These different types, including those of wound rotor, direct current, and the synchronous models, are manu factured in all ratings. They are obtainable in models which are totally enclosed, splash and explosion proof. STEAM AND HYDRAULIC TURBINES SWITCHGEAR Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for August of this year were 107,825 tons, carreid by 84 vessels, as against 146,851 tons for August last year, carried by 72 vessels. Principal commodities carried during August, as compared to last year, were: 1948 1947 Cigars.............. 3 tons 1 ton Desiccated co conut ............ 8,801 ” 5,775 tons Coconut oil . . 3,095 ” 1,033 " Copra............. 37,114 ” 86,822 ’’ Copra cake . . 2,215 ” 5,299 ” Hemp.............. 32,402 bales 84,052 bales Logs and lum ber ................ 2,893,169 board feet 1,003,409 board feet Ores................. 15,541 tons 20,500 tons Rope................. 362 ” 278 ” Sugar............... 15,105 ” — Tobacco .... — 531 tons The effects of the shipping strike on the United States Pacific Coast, which started on the 2nd of September, were not felt here during the month and were not expected to be noticed until October. MOVEMENTS of vessels and exports maintained x ‘L their usual volume during September, with 81 vessels lifting 107,936 tons. The decline in the total exports as compared with last year, however, still continued, caused principally by curtailed copra shipments. During September last year, 77 vessels lifted 144,227 tons of export cargo. Principal commodities exported during Septem ber, 1948, as compared with September, 1947, were: 1948 1947 FOR YOUR ELECTRICAL NEEDS CONSULT US We represent the complete line of ALLIS-CHALMERS equipment and have at your disposal mo tor controls, transformers, switchgear, circuit breakers, and induction heaters. YOUR REQUESTS WILL BE AT TENDED TO PROMPTLY. TRANSFORMERS EXCLUSIVE DISTRIBUTORS THE EARNSHAWS DOCKS & HONOLULU IRON WORKS CORNER TACOMA & SECOND STREETS PORT AREA, MANILA — TEL. 2-68-48 BRANCH AT BACOLOD, OCC. NEGROS Cigars ............. Desiccated co conut .... Coconut oil . • Copra .............. Copra cake . . Hemp............... Logs and lum ber ................ Ores................. Rope................ Sugar .............. Tobacco .... 8 tons 8,375 ” 2,708 ” 43,397 ” 3,781 ” 32,868 bales ,371,249 board feet 17,186 tons 184 *’ 3,149 ” 5 ” 1 ton 764,780 board feet 22,670 tons 508 ” 173 tons Inter-Island Shipping By G. F. VANDER Hoogt Manager, Everett Steamship Corporation THE Maritime Strike presently affecting the West Coast ports of the United States has not yet been felt to any noticeable extent as regards inter-island shipping in the Philippines, although there will undoubtedly be considerable adverse effect if it should continue for a long period. A good part of inter-island traffic consists in goods which have been October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 391 imported into Manila and are subsequently sold to dealers in the provinces who receive their merchan dise via inter-island vessels, something which coast wise-vessel operators have long been looking forward to. This helps compensate for the loss of tonnage due to the control on rice which has completely stopped movement between ports of this item, except for small and occasional shipments from Manila to some outports. The recent decision by the Philippine Govern ment to close non-Customs outports to ocean shipping, will no doubt have a beneficial effect on inter-island shipping. There is much controversy on this matter, particularly from shippers who have become accus tomed since the war to load their cargo direct into ocean vessels at various non-Customs outports. It is not the purpose of this article to go into the merits or demerits of the government decision, and it is understood that temporarily at least the Government will not construe the terms of this decision too rigid ly. It is expected, however, that a certain amount of cargo which has in the past been accumulated for loading at non-Customs outports will begin to find its way through the various inter-island services into the Customs ports of entry for export loading. This procedure will have a beneficial effect on both inter-island and ocean shipping, as the inter-island vessels will receive additional business, and the ocean vessels will not be required to call at various outports to load comparatively small amounts of cargo at con siderably higher expense. The point of view of the exporters who have in the past been using such out ports for direct loading, without doubt will receive the Government’s full consideration in the implemen tation of the terms of the decision. Air Transportation PHILIPPINE Air Lines inaugurated a new air ser vice between Hongkong and the United States on October 6, 1948. The local airline has been granted the air-parcel franchise by the Hongkong Government and the dispatch of parcel-post is con ducted twice a week. The United States inaugurated the International Air-Parcel Post on September 1 this year and Hong kong is the first foreign government in the world to reciprocate in the international scheme by arrang ing a return service. It is expected that the same parcel-post service will be inaugurated between the Philippines and the United States, which will un doubtedly boost further the trade and commerce be tween thi two countries. The Philippine Government has initiated a series of diplomatic negotiations on embassy level in Washington, D. C. with a view to concluding bilateral air agreements with countries on the Manila-London route of the Philippine Air Lines. These countries are Siam, India, Pakistan, Egypt, Saudi Arabia, and Greece. They are important links in Philippine Air Lines Manila-European route and the proposed treaties will stabilize PAL’s globe-girdling operations. At present PAL planes on the London flights stop at cities of these countries only for refueling. Pending the conclusion of these air agreements, however, PAL is seeking an interim agreements with the governments of the countries concerned to be able to engage in international traffic in passenAlways far in advance OF THE FIELD... No matter what your hauling need . . . there is an International of the right capacity and proved operating economy. Sturdy, dependable, economical . . . adapt able to a variety of body styles .. . these are the features that have made Inter national Trucks so popular on farms, on construction jobs, for general delivery. Thousands of truck operators who put their trust in Internationals have been able to keep them on the job during years when new trucks were impossible to get. These operators, together with others who have become familiar with Interna tional all-truck performance, are going to specify Internationals as basic units in their new truck programs. INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA CEBU BACOLOD DAVAO INTERNATIONAL Trucks & Busses McCORMICK-DEERING INTERNATIONAL EARM EQUIPMENT INTERNATIONAL INDUSTRIAL POWER 392 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 gers, mail,_ and cargo along the intermediate points covered by its route. Daniel Me. Gomez, SecretaryGeneral of PAL, is now in Washington for the pur pose. S. Canceran Philippine Air Lines For Flying Horsepower MOBILOIL'S QUALITY TEAM-MATE STANDARD - VACUUM OIL COMPANY PHILIPPINES AS aviation strives to bring an improved and more frequent service to the Philippines, it immediate ly brings to light what tremendous opportunities exist for the development of tourist travel. The Philippines have an enviable geographic posi tion,—it is the crossroads of the Orient. Up to the present there has not been any concerted effort to stimulate interest on the part of the traveling public to pause on their journey in the Philippines. How many travelers making their first trip to the Orient realize that Baguio, the summer capital, offers the finest climatic contrast to Manila and is still only 45 minutes away by air? The beauties of Pagsanjan Falls, the wonders of Tagaytay and other scenic splendors present a potential financial income worth millions of dollars to the Philippines. In being realistic about developing such a poten tial, the first consideration would require setting up of an organization possibly called the Philippine Tourist Service. Its main objective would be the pro motion of interest in the Philippines. Secondly, this organization would encourage the establishment of fine hotels and the proper development of scenic beauties, such as Pagsanjan Falls. Thirdly, it would publish pamphlets, booklets, maps, and the like to be made available to tourists throughout the world. The Phil ippine consulates would offer an excellent medium for the dispensing of such information. In addition, the transportation companies, such as airline and steam ship companies, stand ready and willing to offer the facilities of their innumerable offices to place this in formation in the hands of the traveling public. There should be a distinct line of demarcation between the functions of a tourist service established by the Government and the noteworthy service per formed by the innumerable travel bureaus. Their duties are distinct and represent two phases of service to be offered to the public. For justification in establishing such an organization, we need only to look to the splendid accomplishments of countries like Switzerland and the Scandinavian countries to realize there exists an unexplored potential that would benefit everyone. As a step in the right direction, let us suggest the formation of an advisory commission consisting of non-paid individuals who have experience in promo tion work and who will be untiring in their'^fiorts to set up an efficient tourist bureau. B. J. Talbot Manager, Northwest Airlines, Inc. Land Transportation (Bus Lines) By L. G. James Vice-President and Manager A. L. Amnion Transportation Co., Inc. THE heavy floods which occurred during the months of August and September seriously affected highway traffic in all parts of Luzon. Bus operations between Manila and all points to the October-November, 1948 AMERICAN CHAMBEROFCOMMERCE JOURNAL 393 north were interrupted for extended intervals to the extent that most operators suffered substantial operat ing losses during the period concerned. Bad weather and bad road conditions always re duce the potential passenger volume, in spite of which the operator must make every effort to maintain his schedules regardless of reduced revenue. Operational expenses, under such circumstances, are usually higher than under normal conditions. The current military campaign against the Huks in Central Luzon has affected travel in the areas con cerned. Law-abiding civilians are afraid to move about. In some areas passenger movement is practi cally at a standstill with no hope for improvement until the Iluks are subdued. Of almost daily occur rence are incidents involving the hold-up of busses and robbing of conductors and passengers, with fre quent killings of the unfortunate victims of such episodes. The Truck Show sponsored by the Army Trans portation Association was of great interest to bus operators, who were given the opportunity of view ing a wide assortment of equipment of the latest types. The sponsors and the many dealers who placed exhibits in the show are to be congratulated for an excellent presentation. TO date, the grave problem confronting pre-war operators with respect to the extension of time within which to complete their pre-war authorized equipment has not been satisfactorily solved. The Public Service Commission recently set September 30, 1948, as the final date for the registration of equip ment under this authority, later on indicating that individual petitions for extension of time would be considered upon their merits. Very few of the companies with sizeable fleets in operation in- 1941 have, for various reasons, been able to bring their post-war fleets up to pre-war status. Primarily and almost without exception, operators were forced to start post-war operations from “scratch”. Their pre-w'ar equipment, and main tenance and office facilities weie a total loss as a result of the war. All were handicapped by lack of financial resources and had to depend upon current profits for the rehabilitation of their businesses. Even at this date, very few companies have received war damage payments, and such payments as have been made are not substantial enough to provide funds for more than fractional rehabilitation. The efficient operator, for reasons of economy in mAiiJ^nance, standarizes upon one make and one model of equipment. Due to limited United States production and availability, it has been impossible for an operator of a pre-war 200-unit fleet to secure from any one manufacturer such a large number of bus-chas sis, even if financial resources were available to pay for them. The current cost of a bus chassis, depending upon wheelbase, gross capacity, and type of power plant, averages PG,000 to P8,000. The majority of operators have their own individual body-types which they con struct in their own shops. The cost of a body, de pending upon size and type of construction, will average between P2,000 and P4,000. Thus, the cost of a bus, ready for operation, will probably average PIO,000. A 200-unit fleet represents an investment in rolling stock alone amounting to approximately P2,000,000. This is exclusive of the very necessary For Top Engine Performance THE WORLD'S LARGEST SELLING MOTOR OIL STANDARD - VACUUM OIL COMPANY PHILIPPINES 394 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 substantial investment in office buildings and equip ment, terminals, shop buildings, tools and machinery, spare parts, etc., which requires the outlay of another P500,000 minimum. The Public Service Commission, recognizing the urgent necessity of establishing temporary transpor tation facilities during the post-war period, as an es sential factor in a stable economy, issued many thou sands of temporary certificates of public convenience, literally to all applicants who were able to show evid ence of possession of a motor vehicle. The basic idea was a meritorious one, but a far greater number of operating permits was issued than the public con venience required. The result has been ruinous com petition, inability of government agencies to supervise the operations and to enforce regulations, and a gen eral decline in standards and quality of facilities, to the detriment of the public interest. The Public Service Commission has extended the validity of temporary certificates until December 31, 1948, with the additional proviso that the owners You’ll senee something differ ent when your fingers touch the highly responsive keys. It’s Rhythm Touch... to make your type writing easier. Your fingers will find comforting ease in the light ning key response. You’ll note better-balanced finger action ... the free-and-easy rhythm of Underwood’s finest typewriter... the popular choice of secretaries and executives. With Rhythm Touch . . . plus other new refine ments . . . you get all the time-tried famous Under wood features .. . they make typing easier. See this new Underwood Standard Type writer... with Rhythm Touch... NOW I SMITH, BELL & CO., LTD. Trade & Commerce Bldg., Manila Telephone 2-96-49 Cebu • Iloilo • Bacolod a Tabaco • Legaspi thereof may make application, prior to that date, for “regular” certificates, each case to be decided upon its merits. Hearings are now in process on a number of these applications. Pre-war operators concerned are obviously making every legal effort possible to contest these applications. Under these circumstances, operators who hold pre-war certificates of public convenience, while ex pending all current profits for rehabilitation of fleets and facilities, are most dubious of the future. There is reason to believe that extension of time may be granted for completion of fleets in individual cases, but the ruinous competition resulting from any gen eral issuance of new regular certificates would great ly prejudice the investment involved. Increasing costs of operation, due to higher prices of equipment, fuel, parts, and new demands by labor, make the picture still more obscure for all operators. Competitive conditions have resulted in generally de creased rates. Both new and pre-war operators are faced with a very uncertain future, probably resolving itself into a situation wherein survival will be deter mined by ability to sustain operating losses until exist ing transportation facilities are reduced, through com petition, and a proper balance is reached between public need and the number of busses on the road. Gold By Chas. A. Mitke Consulting Mining Engineer THE method generally in use in the Philippines for the treatment of gold ores is the cyanide pro cess. This requires fine grinding, and the ul timate treatment of the pulp with cyanide in large tanks, followed by the use of zinc dust to precipitate the gold. The residue is then heated in a furnace and the gold poured into bars. In a few instances, the flotation system must be used to supplement the cyanide, especially where the gold occurs in combination with copper or lead sul phides. Even before the war, the cost of a cyanide plant of 500 tons per day was in the neighborhood of Pl000,000, and if flotation units were necessary, the costs would be increased by another P250,000. The cyanide process involves the use of many auxiliary units, such as leaching, filtering, jigging, settling, agitation, classification, de-sliming, etc. To duplicate these plants at the preser^ time, would probably require an expenditure equal'to 2 1/2 times the pre-war cost. On account of the high expense and complica tions of the cyanide process, attempts have been made, from time to time, to recover gold by some simpler method. At the University of Arizona, Tucson, undei- the guidance of Professor T. G. Chapman, Dean of the College of Mines, experiments have been in progress for some 15 to 20 years. A carbon-cyanidation pro cess has been developed whereby the product from the ball mills is fed through a tube on to a rotary screen drum, one-third full of activated charcoal. The charcoal picks up the gold, while the solution passes through a second rotary screen, and finally goes off in the tailings. The charcoal is taken out about every 4 hours and the gold removed, either by burning up the charcoal with the gold, or by a October-November, 1948 ___ AMERICAN CHAMBER OF COMMERCE JOURNAL______________395 process, now being perfected, which the inventors claim permits them to recover the charcoal. In 1936, Professor Chapman came to the Philip pines to try out his process on Masbate ores. The results were sufficiently encouraging to warrant further research. Several years ago, the Eagle Pitcher Company of Cincinnati became interested in the process, and agreed to finance the construction of a pilot plant, and to carry on considerable research to perfect the method. A plant was therefore built near the com pany’s Sahuarita concentrator, about 20 miles south of Tucson. During the early part of October, 1948, I visited this pilot plant and saw it in operation. At the time I was there, tests were being conducted on several tons of Harquahala ore, from Salome, Arizona, averag ing $3 a ton. Professor Chapman said that the amount of slime in the Harquahala ores is similar to that in the ores of Masbate. He also said that the initial cost of a carbon-cyanidation plant is consider ably less than that of a conventional cyanide plant, and that the operating cost would be far less, Even with the high wage scale in America, it is believed that the Harquahala ores can be treated at a profit. During my visit, they were also experimenting on the recovery and re-use of the carbon, and it is thought that the carbon may ultimately be re-used some 5 or 6 times. In this respect, Professor Chap man has written me:— “Referring to carbon-cyanidation, as I informed you dur ing your visit to Tucson, we are now able to remove the gold essentially completely from the carbon and re-use the carbon. We are now determining whether reactivation is necessary before the carbon is re-used. The process has also been sim plified in that the dissolution of the gold, the adsorption of the gold, and the separation of the carbon from the ore pulp, is now accomplished in one step. This is done by employing coarse carbon and confining it in a revolving perforated con tainer which dips into the ore pulp during the adsorption. Activated coarse carbon is now available at sufficiently low cost to make it unnecessary for plants in the United States to prepare activated carbon. I assume, however, that com panies operating in the Philippine Islands will find it cheaper to use coconut-shell carbon and prepare the carbon at the plant.” I also looked over their process of activating carbon. The screened and sized carbon is put into a cylinder about 12 inches in diameter, and 5 feet long. This cylinder has a 1-inch perforated pipe through the middle. When the large cylinder is filled with the sized carbon, live steam is turned into the inner perforated pipe and allowed to spread through the carbon. This has the effect of making it more porous, and when it is cooled, it is activated, and ready for use. In the Philippines, where only 5 gold mines are operating out of 40, and where costs are much higher than in 1941, this new treatment method should be given serious consideration. Lumber By E. C. Von Kauffmann President, Philippine Lumber Producers' Association ^TIHE Philippine Lumber Producers’ Association, | through its President, recently sent the Commis sioner of Customs the following appeal relative to the loading of lumber at outports by ocean-going vessels: PACIFIC MERCHANDISING CORPORATION John R. Wagner, Pres. 209 Rosario Manila EXCLUSIVELY REPRESENTING.... CORBIN LOCK COMPANY AMERICAN RADIATOR & STANDARD SANITARY CORPORATION NATIONAL CARBON CO., INC. “Eveready” flashlights & batteries LINDE AIR PRODUCTS CO., INC. “Union” Carbide THE PARAFFINE COMPANIES, INC. “Pabco” Products 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 396 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 All The New Things You Want In A Radio-Phonograph Cabinet details as advanced as its “Golden Throat” acoustical system. 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Inc. “Dear Sir: “Lumber producers and exporters have been very much alarmed with your recent ruling that export shipments with few exceptions will have to be shipped from ports of entry. It is doubtful, if lumber is included under this order, that inter-island shipping operators would benefit at all as the lum ber export business would be completely paralysed. The ex tra expense, the time loss, and the difficulty of coordinating shipping dates would make for such difficulties as to discourage lumber exporting entirely. The permission to export 50% of the production was granted by the Government some time ago precisely because the industry could not survive on local sales alone, but youi- new ruling as to shipping would place pro ducers in an even worse position than before the export ban was partly lifted because prices are now much lower than last year. Aside from the fact that few inter-island ships are available for the lumber trade, no regularly scheduled inter island ships will deviate from their routes to pick up lumber cargo. Non-scheduled ships usually call at a number of dif ferent mills to pick up full cargos, and there would be no as surance that any export parcel would reach a port of entry on time for transhipment to an ocean-going vessel. Ocean going vessels also are frequently not on schedule, which further complicates the matter. “Another important factor is introduced by the lumber inspections of the Bureau of Forestry, in conformity with the grading rules of the National Hardwood Lumber Association, done at the mills when the lumber is taken down from the yard stockpiles and resorted and trimmed to specifications, after which the lumber is restacked for shipment. If this lumber has to be shipped first to a port of entry, this would cause unavoidable splitting and breaking and possibly wetting by rain, which would lower the grade and the shipment would not conform to the certificate of inspection issued by the Bureau. This would subject the shipment to re-grading at destination, causing extra expense and leading to controversy between shippers and buyers, and giving Philippine lumber a bad name, although the Philippine Government is otherwise do ing everything possible to see to it that the best graded lumber is shipped, able to compete with woods from other countries. “At the ports of entry there are few or no facilities for storing lumber, and export grades can not just be left out in the open and exposed to the elements, with shippers still able to hope that the lumber will be accepted by foreign buyers on the basis of the Government grading certificates. “The costs of transhipment to ports of entry would be prohibitive. In the case of the North Mindanao outports, where only non-scheduled ships call at the lumber mills to take on cargos for Manila, it would be next to impossible to coordinate such shipments for export, for instance, through Cebu. Ar rangements would have to be made for an inter-island ship to call say for 150,000 board feet of lumber and to get the lumber to Cebu in time to transfer it to an ocean-steamer ac cording to some previous contract. But delay in the arrival of the lumber at Cebu might result in missing the ocean-go ing ship, and necessitate the storing of the lumber there, un der roof, with proper segregation of each grade. Freight from the mill to Cebu would amount to from P18 to P20 per 1,000 board feet, unloading and re-stacking would cost around P10, transportation to the warehouse PG, rental from P2 to P10, and splits and breakages might cause the shipment to be down-graded by as much as 15%, at a loss of from P20 to P30 per 1,000 board feet. When the ocean-going vessel called, trucking and re-loading would again cost P10 per 1,000 board feet. If the lumber got wet during any of these movements it might arrive at the destination in such a poor condition as to lose 50% of its value. The minimum extra expense in curred under such circumstances would be not less than P60, and might reach as much as P100 to P150 per 1,000 board feet. You will understand that shippers would have to take such risks as to discourage them entirely. “In short, in so far as the lumber industry is concerned, it is absolutely essential that the prohibition against loading at the mills be lifted, otherwise the Philippine lumber export business may be regarded as extinct not only because of the added cost to overseas buyers, but because of the splitting and breakerage and chaffage and the general deterioration resulting from the extra handling and the increase exposure to the elements. This would all be bad enough in the case of sawn lumber; in the case of logs, the business would be en tirely impractical not only because of the great extra hand ling cost but because of the lack of facilities at most ports for handling such heavy lifts. “We believe that inter-island shipping operators will be the first to recognize the impracticability of carrying on the lum ber export business if transshipment is involved and that they October-November, 1948 AMERICANCHAMBEROF COMMERCE JOURNAL 397 would raise no objection to the continuation of outport loading in so far as lumber is concerned. We invite your attention to the fact that it had been only since 1924, when the privilege of loading lumber at outports was first granted, that there has been any export of Philippine lumber in any considerable volume. Before that time, our lumber exports were negligible. “In view of these reasons, I urgently request, in the name of the lumber producers, that lumber shipment, including the shipment of logs, be allowed from the outports as heretofore.” Copra and Coconut Oil By Manuel Igual General Manager, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company August 16 to September 15, 1948 W/E closed our last report with probable buyers v at $250 c.i.f. Pacific Coast at the same time that there was practically no demand from Europe, their ideas being expressed as around $230 f.o.b. A fair amount of copra was reported sold dur ing the third week of August at $250 to $255 c.i.f. Pacific Coast, for immediate or prompt shipment. Pacific Coast buyers were then facing the possibility of a shipping strike but, with general opinion in clined to believe that the strike might be settled be fore the deadline or be short-lived, they continued buying in the hope that the strike would be over by the time copra would get to the Pacific Coast. At the end of the third week of August, on ru mors that the strike would come off and that it might be a prolonged one, Pacific Coast buyers be gan shying away and buying-interest tapered off, with the result that during the last week of August, after recording sales at $240 c.i.f. for September ar rival at the Coast, prices eased off further and by the end of August additional sales were recorded at $235 c.i.f. for September shipment. September opened with all markets weak with downward tendency and even though there was very little selling-interest, at the same time there was less buying-interest except for an occasional odd parcel for prompt shipment. Shortly after the strike date of September 2, on reports that chances for settle ment were very remote and that the strike might easily be prolonged indefinitely, American buyers took a very indifferent attitude. This caused traders to turn toward Europe as soon as they realized their inability to sell futures to the Pacific Coast because of the bearish domestic outlook based on the very large crop reports. Consequently, since late August well over 20,000 tons of copra was sold to the CCC and to European buyers at prices ranging from $240 to as low as $227.50 and then up to $235 f.o.b. for October and October/November shipments. During the first of September, with interest on the part of. United States buyers further dampened by the shipping strike, buying-interest continued very narrow at around $235 c.i.f. for prompt ship ment only, with European buyers on the side lines. AT the end of the first week of September, a new ruling was promulgated by the Commissioner of Customs virtually prohibiting direct shipments from other than customs ports, which means that while heretofore copra has been shipped from some 50 dif ferent places, this new ruling would restrict ship ments to 11 ports only. As a result, pending clarifica tion of this most controversial issue, a most unsettled and erratic situation developed to which several factors have contributed. In the first place, selling interest narrowed to sellers’ ability to ship from cus toms ports only; and since the problem of moving outport copra became a very uncertain one, in some quarters it gave ground to the belief that sellers might have considerable difficulty in moving out port copra to fill previous commitments. Although subsequent indications were that the Government will allow previous commitments to be lifted, the result was that new buying-interest was momentarily cen tered and accentuated at the few places which could supply copra unhampered. Thereafter, prices rose rather rapidly starting with sales at $235, later at ONLY..; Pan American offers Sleeperette service 3 flights weekly to the U.S. via GUAM HONOLULU SAN FRANCISCO or LOS ANGELES Aboard Pacific Clippers...your comfortable chair-lounge...adjusts to restful bed-length ...with curtains for privacy. No extra cost! S Go Flying Clipper! Over the Smooth Southern route to the U. S. A. You can fly straight through or stop over at beautiful Hawaii Manila Hotel • Phones 2-97-96, 2-79-01 Downtown Office (270 Plaza Cervantes) Phones 2-82-61,2-68-69 Airport Office • Phones 5-10-75, 5-12-65 PAM AMERLC/W World Airways V/ Cliff", TrsJs Meri. Pu Aueritte Aineep, Ik, 398 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 $240 and $245, with bids at the end of this period of $240 f.o.b, for October and $250 c.i.f. for Sep tember shipment, at which prices business was re ported. Demand at these figures seems rather nar row, but since supplies are relatively limited, we close this period once again with the market entire ly in the hands of copra sellers, whose views, par ticularly in Manila, have also been influenced to a certain degree by the temporary buying aggressive ness of Philippine oil mills to fill prompt commit ments. Europe was not bidding for the moment. THE Pacific Coast strike completely upset the plans of coconut-oil buyers in America who, as we remarked in previous reports, have been conduct ing a hand-to-mouth buying policy for quite some time and now find themselves critically short of oil, which, had it not been for the strike, could have been delivered during September, but which Pacific Coast mills will not be able to supply until the strike is over. As a result, the spot-market for coconut oil has soared again, regardless of competing oils and fats. Taking advantage of the fact that there is no strike on the Atlantic Coast, abortive attempts have been made to buy copra for shipment to the AtlanScience of Binding ONE GREAT BEER —TS^rBlue Ribbon_ _ Distributors: F. E. ZUELLIG, INC. 55 Rosario St. Tel. 2-95-43 Manila Hear MUSICANA-KZRH Sr KZRC tic Coast, but, fearing that the Pacific Coast strike might be over before they get machinery ready to crush copra, buyers have resorted to covering some of their requirements for coconut oil from Philippine mills, paying as high as 22 cents for October/November deliveries. This, in turn, has resulted in quite an improvement in the Manila market, copra having been sold up to P49 as we close this report, which is equivalent to $260 f.o.b. Activity by Manila mills and price improvement here is therefore a reflection of the tight market which has developed as a result of these conditions, but it is difficult to foretell how long this spot-market will continue. We close this period with a very confused situation, involving a number of contradictory factors which may cause our market temporarily to continue independently firm, but erratic and very unsettled. All indications, however, seem to point to the probability of lower than closing copra levels as soon as the Pacific Coast strike is settled, granting, of course, that other un predictable factors do not run contrarywise. The long range world outlook for grains, oils, and fats in general is undeniably bearish. PRELIMINARY figures for copra exports dur ing the month of August show a total of 37,600 tons, of which 22,100 tons were shipped to, the Pacific Coast, 4,250 to the Atlantic Coast, 6,750 to Gulf ports, 4,000 to Europe, and 500 to South Amer ica. Copra exports for August of last year were 86,822 long tons. August coconut-oil exports totalled 3,105 tons. ________ September 16 to October 15, 1948 IN anticipation of a prompt settlement of the Pa cific Coast strike, some Pacific Coast buyers continued with their ideas at around $250 c.i.f. Pa cific Coast for prompt shipment with sellers up to $255. At the opening of this period there was a rather mixed feeling among the various buyers in the sense that while some anticipated a prompt settle ment of the strike, others were apprehensive and while an occasional trade was reported during the second half of September, first, at $250, and later, at a slightly higher price, volume was relatively small. On the other hand, a fair amount of business was reported done to New York, first, at $260 c.i.f. which gradually was increased to as high as $272.50 c.i.f. which marks the top for this period. Since New York prices were comparatively higher than those obtaining at the Pacific Coast, when buying resistance developed, sellers in turn endeavored to sell to Pa cific Coast, but by the end of September most Paci fic Coast buyers seemed to have decided to wait for the end of the strike before renewing purchases. The result was more selling-pressure toward New York but, because of the limited crushing capacity of Eastern Mills, sellers found considerable resistance to their offerings and the market gradually declined during the first half of October, copra selling at as low as $260 c.i.f. New York, with very limited demand, mand. The heavy f.o.b. sales made to Europe since late August at levels between $227.50 and $240 for ship ment during September and October, seemed to have been relegated to the background by sellers, in view of high prevailing prices here and in the hope that with increased arrivals and no demand from the Pa cific Coast, prices would sag to the point of permit ting them, if not cover at profit, at least at no loss. Unfortunately, copra production turned out to be October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 399 smaller than anticipated and since Philippine coco nut oil mills continued buying rather aggressively be cause of the ability to sell to eastern markets at pre mium, the level of prices at primary points was main tained at rather unattractive heights from the view point of sales made to European destinations. How ever, when exporters realized that there was not much more time to cover, they came into the mar ket and the added buying-pressure during the second half of September and first half of October caused the market to gradually appreciate from ap proximately $240 f.o.b. to $250 for shipments dur ing September/October. There was renewed buying interest from European sources during the period under review, but buyers’ ideas were generally at not over $240 f.o.b. long ton, for shipments during October, No vember, and even into December, but because of the firmness at primary markets and prospects. of continued buying pressure, only very few sales were recorded for future deliveries at prices approximat ing between $255 and $260 f.o.b. landed weights, Europe. EXPORTS during September were 15,700 tons to the Pacific Coast, 4,750 tons to the Atlan tic Coast, and 23,550 tons to Europe, or a total of 43,300 tons. Exports for September of last year were 86,763 tons. At the close of this period, we are again faced with a market entirely in sellers’ hands, but with so many contradictory and uncertain factors that the nearby situation continues unpredictable. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from August 15 to October 15. At the beginning of this period copra was low and continued through August with signs of weakness due to the then impending shipping strike on the United States West Coast. However, contrary to many opinions, the copra market, in spite of the strike became more firm, eventually going from P41, to P49 per 100 kilos of resecada copra. Toward the middle of September, when a general weakness set in, copra started on the down grade, reaching a low of P45 early in October, but it picked up again with prices ranging around P47 at the close of the period. The raw-nut market followed the copra prices with a tendency to buy below copra-equivalent during the first half of this period, after which time the Military Police started “zoning” certain areas and evacuating people to safer places because of the cam paign against the Hukbalahap. It is estimated that around 15% to 20% of the coconut-producing area was cut off; consequently the nut-supply was affected, resulting in local speculating which in part caused a spurt in the market toward the close of the period. Due to the zoning, desiccators found it difficult to buy under copra-equivalent and were 'forced to meet copra prices and perhaps in isolated cases to go even higher. Labor difficulties are still prevalent, two fac tories having been strike-bound for almost a month and ^e.FlRSlnameintypewriters Smooth... Fast... and Responsive! That’s the keynote of the new Re mington KMC, now equipped with the STANDARD PHILIP PINE KEYBOARD. Typing takes on a swift ease that is reflected in the high quality of cor respondence that comes from the machine. TYPEWRITE MORE WITH LESS EFFORT [THE FIRST NAME IN TYPEWRITERS, Exclusive Distributors TAYLOR PACIFIC (Phil.) LTD. ATKINS, KROLL CO., INC. General Managers Exclusive Distributors TAYLOR, PACIFIC (PHIL.) LTD. ATKINS, KROLL & CO., INC. General Managers 124 Myers Bldg., Port Area Tel. 2-94-67 400 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 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 and competent super vision given to your customs brokerage require ments. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR H. HENDERSON President Seventh Floor, Wilson Bldg., Manila Telephone: No. 4-79-86 Cable: “Underiters” Managers in the Philipines for’.— AMERICAN INTERNATIONAL ASSURANCE CO., LTD. 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 three having cases in the Court of Industrial Rela tions at the close of the period. Shipping became a problem due to the West Coast shipping tie-up and much thought is given to East Coast shipping and to what will happen after the cooling-off period ends in November. Production capacity remains much the same. Several factories have increased production, but strikes caused a small decrease in shipments during September over the high established in August. The nut crop looks good for the next few months with only the Huk trouble standing in the way of good nut procurement. This situation threatens to last several months, which will mean curtailed sup plies to the industry and large losses to planters. The following are the shipping statistics for the months of August and September, 1948: August September Franklin Baker Co. of the Philippines............................. 4,376,600 lbs. 3,655,800 lbs. Blue Bar Coconut Company 1,926,880 ” 549,600 ” Peter Paul Philippine Corp. 1,935,700 ” 3,248,100 ’’ Red V Coconut Products, Inc. 1,872,100 ” 1,728,500 ” Sun-Ripe Coconut Products, Inc............................................. 649,600 ” 766,500 ” Standard Coconut Corpora tion .......................................... 360,000 ” 56,000 ” Isabelo Hilario......................... 249,800 ” 50,000 ” Cooperative Coconut Pro ducts, Inc................................ 256,340 ” 298,860 ” Tabacalera................................. 550,000 ’’ 371,000 ” Luzon Desiccated Coconut Corp........................................... 77,400 ” 387,000 ” Total .... 12,254,420 lbs. 11,111,420 lbs. Sugar By S. Jamieson Alternate Secretary-Treasurer, Philippine Sugar Association HIS review covers the period from August 15 to October 15, 1948. Arrivals against previous contracts enabled re finers to remain indifferent to offers of raw sugar at the 5.75/5.80 level, and although sellers did not press their sugars on the market they were eventual ly obliged to reduce their prices. There were small transactions, including 2,000 tons of Philippines for September arrival, at 5.70<*, and later further trans-, actions in Cubas and Puerto Ricos at 5.65<*. There were fairly large offers of Puerto Ricos at the latter price for late September arrival, but refiners re mained aloof, indicating 5.60<*, at which price some of the sugar was eventually sold. By the last week of September a better tone was evident, and small lots of Puerto Ricos for October shipment were sold at 5.65<*, followed by sales of Cubas and Puerto Ricos at 5.70tf. Sellers then raised their price to 5.75<* and heavy offerings were made at this price, but refiners were not interested and the market fell back to 5.60<‘, at which price some Puerto Ricos were sold. By the middle of October, there were sellers at 5.65c* and buyers at 5.60c1, with indications, however, that buy ers might go up to 5.65c* in the near future. There have been no deliveries of raw sugar on the West Coast for about two months owing to the stevedore strike there, and the following comment taken from the Weekly Statistical Sugar Trade Jour nal will convey some idea of the effect of the strike on the sugar business alone: October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 401 “About 98,000 tons of raws are strike-bound on ships in San Francisco Harbor with an additional 20,000 tons afloat from Hawaii. The C. & H. Refinery has had to close down, affecting some 16,000 persons at the refinery with a monthly payroll of $400,000.” Quotations on the New York sugar exchange for the period August 16 to October 8, 1948, under Con tracts Nos. 4 and 5, ranged as follows: Contract No. 4 (World Market) High Low Close Sales September .... . 4.44 4.40 4.39 2,250 tons March, 1949 . . . . 3.98 3.90 3.87 17,300 ” May, 1949 .... . 3.98 3.88 3.86 6,900 ” July, 1949 .... . 3.98 3.98 3.88 500 ” September, 1949 . 3.90 ... ” Total..................................... 26,950 tons Contract No. 5 High Low Close Sales September............... 5.40 5.26 5.25 42,650 tons December................. 5.30 5.10 5.10 5,450 ” March, 1949 ... . 4.96 4.86 4.86 20,200 ” May, 1949 ............... 4.93 4.86 4.85 14,500 ” July, 1949 ............... 4.95 4.87 4.86 5,100 ” September, 1949 . . 4.97 4.90 4.87 3,750 ” Total 91,650 tons THE domestic market was very firm and during September prices advanced considerably, reach ing as high as P19 to P22 per picul for centrifugals and P23 to P24 per picul for washed sugar, delivered Manila. However, with the approach of the 1948-49 milling season, which would make new crop domestic sugar available for the local market, prices had a tendency to decline and current quotations are P17 to P19 per picul for centrifugals and P20 to P22.50 per picul for washed sugar. It is reported that forward sales of large quantities of new crop domestic sugar (centrifugals) have been made at P15.50 to P16.15 per picul ex mill warehouse for deliveries made dur ing 1948 and- P14 for deliveries made during 1949. The local market for export sugar was also quite firm, and sellers with sugar available for immediate delivery could get as high as P12.75 per picul ex mill warehouse. The nominal quotation for new crop ex port sugar for prompt delivery is P12.50 per picul ex mill warehouse. A few mills have already started their 1948-49 operations. Others are scheduled to start dur ing November, and by December the milling season should be in full swing. During September the Sugar Quota Office re leased its first official estimate of 723,349 short tons for the Philippine 1948-49 crop. 130,000 tons of this quantity will be set aside for domestic consumption, leaving about 593,000 tons for export, as compared with approximately 240,000 tons exported from the 1947-48 crop. The freight rate on sugar from the Philippines to U. S. Atlantic Coast ports for the 1948-49 season has been fixed at $18 per long ton. THE latest estimate of the European beet crop, excluding Russia, is 6,074,706 metric tons, as against 4,626,112 metric tons last year. Most of the important European beet producing countries show substantial increases in production, as follows: Ger many, 318,000 tons; France, 216,000 tons; Czechoslo vakia, 211,000 tons; Italy, 128,000 tons; Sweden, 127,000 tons; Spain, 123,000 tons; Belgium, 103,000 tons; United Kingdom, 72,000 tons. Catch'em in ^Action! for SPEED and SHARPNESS Use IKOPLEX IKONTA SUPERIKONTA The Only Cameras with the Brand of Quality Now available and ivithin the reach of everybody. Full particulars at our PHOTO DEPARTMENT BOTICA BOIE, Inc. 95 Escolta, Manila CEBU ILOILO LEGASPI THE MARK OF SUPERIORITY IN MODERN BUSINESS MACHINES WHEREVER THERE’S BUSINESS THERE’S BURROUGHS In Mindanao & Jolo In Panay In Southern Luzon In Northern Luzon & Pangasinan FELIX M. ONGOCO 522 San Pedro St. Davao City PEDRO E. ALCANTARA J. M. Basa St. Iloilo City GABRIEL & CO. Legaspi, Naga, Lucena BAGUIO GENERAL TRADING COMPANY Session Road, Baguio BURROUGHS, LIMITED P. O. Box 2769 Manila Philippine Chamber of Commerce Bldg. 402 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 The final out-turn of the 1948 Cuban crop was 6,674,950 short tons, — an all time record. The 1949 crop is placed tentatively at 6,000,000 tons. The 1937 World Sugar Agreement, which would have expired on August 31, was renewed, and a Com mittee was appointed to investigate the Cuban re quest for new quotas as a result of changes brought about by the war. Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines AS the October issue of the “Journal” was not published due to the fire which destroyed the McCullough Printing Plant, this review covers the periods August 16 to September 15 and Septem ber 16 to October 15. These two periods are dealt with separately in order to preserve the continuity of our reports. August 16 to September 15 Buyers in the United States continued to act with caution. The volume of business recorded, —aside from stockpile buying, was small, with demand centering on certain of the more popular non Davao grades. SCAP did not buy during the period and business, other than that to the United States, was again limited. Distilled, Blended and Bottled in Scotland “BLACK&WHITE SCOTCH WHISKY JAMES BUCHANAN & CO. LTD., GLASGOW, SCOTLAND Sole 'Distributors in the Philippines KUENZLE & STREIFF, INC 31 Tayuman, Tondo, Manila Tel. 2-64-94 Branch Office: 306-308 Dasniarinas, Manila This general lack of demand would have resulted in an easier market were it not for the record low production for August,—34,832 bales only, (August, 1947, production—76,598 bales) and the fact that July shipments exceeded July balings by 15,876 bales. Continued low Philippine production at a season when rice harvesting, planting, and other ag ricultural pursuits are not responsible for the decline, is serious, both for Philippine economy and world consumers of Manila hemp. The decline cannot be attributed to poor prices, as current hemp values are close to the recent highs. It is zvell-known that Davao production has contracted sharply, due to the destruc tion of old plantings and the limited replanting, but the alarming current decline in non-Davao produc tion indicates serious overstripping in non-Davao dis tricts. This certainly is true in the Bicol area. Provincial markets have remained steady throughout the period. In Davao, prices were unchanged, but small advances were recorded in the better grades of non-Davao hemp. Competition has been unusually keen for the limited supplies avail able. Nominal provincial values on September 15 were: Per Picul Loose Davao I ..................... P62. — Unchanged from August 15 Davao Jl ................... 60. — Unchanged from August 15 Davao G ................... 52.50 — Unchanged from August 15 Non-Davao I .......... P58. — Up Pl. per picul from August 15 Non-Davao G .......... 42. — Unchanged from August 15 Non-Davao K .......... 25.50 — Down P0.50 per picul from August 15 Closing New York quotations were: Per Lb. c. i. f. New York Davao I ..................................... 28-1/8(5 — Down 1/8(5 Davao Jl ................................... 27-3/8 — Up 1/8C Davao G ................................... 24-1/8 — Unchanged Non-Davao I ............................. 26-1/2. — Up l/4<5 Non-Davao G ........................... 20 — Up l/4<* Non-Davao K ......................... 14 — Down 1/4(5 Production for the month of August was 34,832 bales,—a decrease of 4,053 bales from July, and a decrease of 41,766 bales from August, 1947. Non-Davao balings were 21,459 bales,—down 5,760 bales from July; and Davao, 13,373 bales,—up 1,707 bales as compared with July. Total pressings for the first eight months of 1948 were 435,963 bales, as compared with 529,885 bales for the same period last year. September 16 to October 15 UNITED STATES buyers once again acted with great caution and bought only sparingly. More business was done than during the previous month, particularly for non-Davao grades. Buyers showed increased interest in the better grades of non-Davao. SCAP was still out of the market but were ex pected to begin buying early in November, if not sooner. Provincial prices for low grades held consis tently aboye consumers’ ideas in anticipation of heavy SCAP buying in the near future. Toward the end of the period, some ECA buying was recorded, and the Allied Control was in the market for supplies for Germany. In the Philippines, a very steady market ruled throughout the period, with exporters once again dis October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 403 playing more interest in buying than was warranted by the demand from consuming markets. This un doubtedly was due to continued small production and the probability of improved demand before the end of the year. Nominal provincial values on October 15 were: Davao I ............... P62. — Unchanged from September 15 Davao Jl ............. 60. — Unchanged from September 15 Davao G................... 52.50 — Unchanged from September 15 Non-Davao I P59. — Up Pl per picul from September 15 Non-Davao G 43.50 — Up Pl.50 ” ” ” Non-Davao K 25.50 — Unchanged from September 15 Closing New York quotations were: Per Lb. c. i. f. New York Davao I ................................... 27-7/8<J — Down l/4<* Davao Jl ................................. 27-3/8 — Unchanged Davao G ................................... 24 — Down l/8(f Non-Davao I ........................... 26-3/4 — Up l/4tf Non-Davao G ........................... 20-1/4 — Up 1/4<J Non-Davao K ........................... 14 — Unchanged Production for September was 38,197 bales,—an increase of 3,365 bales from August, but a decrease of 38,397 bales from September, 1947. Non-Davao balings were 23,704 bales,—up 2,245 bales from Au gust; and Davao, 14,493 bales,—up 1,120 bales as compared with August. Total pressings for the first nine months of 1948 were 474,160 bales, compared with 606,479 bales for the same period last year. It is interesting to note that 1948 pressings for January to June were only down 19,338 bales from 1947; whereas the July/September pressings were down 112,981 bales, as compared with July/September 1947. The drop during the first six months is not serious,— averaging only around 3,200 bales per month The drop during the July to September period, how ever, averages over 37,600 bales per month,—which is indicative of the deplorable production conditions existing at the present time. Unfortunately, there is no prospect of any worthwhile improvement during the last three months of the year, so that 1948 pro duction is likely to be about 200,000 bales less than that of 1947. This represents a drop of about 26c/o for 1948, as compared zvith 1947. The current trend of production,—at a time tvhen prices are so favorable to the producer, is viewed with grave concern by the industry. Manila hemp is the only Philippine agricultural product, as yet, that has no serious competitor in world markets. This being the case, it appears essential that Philippine producers maintain their prodtiction in order to hold their market. The producer is receiving an excellent return for his hemp, but must realize,—particidarly tvhen prices are high, that a portion of his gains must necessarily go back into the soil if Manila hemp is to hold its position in world fiber markets. It is not enough to continue harvesting and obtain pro gressively higher prices due to declining supplies. This policy is likely to force manufacturers to seek cheaper substitutes, such as sisalana and Central American hemp. If consumers should make such a switch, per manent damage to the Philippine fiber industry would result. The ultimate aim of Philippine producers should be to increase production and lower prices in order to hold their market and discourage other po tential competitors. HUME PIPE & ASBESTOS CO., MANILA The Modern Building Material ELEPHANT BRAND ASBESTOS - CEMENT SHEETS Flat for Siding and Ceiling Corrugated for Roofing Standard and Special Sizes. THEO. H. DAVIES & CO., FAR EAST, LTD. Agents 6th Floor, Ayala Bldg. Manila CONNELL BROS. COMPANY 404 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 KODAK REFLEX The Kodak Reflex Camera, shown here, is a superb picture maker that will give keen en joyment for years to come. Has big ground-glass finder, twin f/3.5 lenses . . . both Lumenized and both highly corrected for color, and Flash shutter with 7 speeds to 1/200. At Your Kodak Dealers KODAK PHILIPPINES, LTD. 104 - 13th St., Port Area, Manila • Sherry (Medium) • Port • Sauterne Sole Distributors in the Philippines KUENZLE & STREIFF, INC. 31 Tayuman, Tondo, Manila Tel. 2-64-94 Tobacco By the Conde de Churruca President, Manila Tobacco Association THE 1948 buying season is practically over, and the farmers have obtained more than a fair price for their tobacco. The distribution of the crop is more or less as follows: Cagayan Valley National Tobacco Corp, bought around 10,000 quintals Alhambra Cigar Factory ” ” 12,000 ” Tabacalera ” ” 10,000 ’’ Bunning ” ” 8,000 ’’ Chinese merchants ” ” 36,000 ” Private buyers (L-3) ” ” 5,000 ” Total........................... 81,000 quintals There are still about 4,000 quintals held by the farmers who do not want to sell under P40 a quintal. The prices paid have averaged between P25 a quintal for the poorest lots of the Cagayan province to P40 for the best in Isabela. The crop is better than average, with tobacco of “heavy body” predominating which will be in the best condition to use in about two years, but which can be used after one year. There are a more than the usual amount of brok en leaves, and on the leaves from some localities there is a very faint dusty film which, however, does not devaluate the crop. The higher Isabela localities, as Echague, Bigga, etc., have yielded some very fine tobacco, clean and of even color, part of which will make excellent wrap per-leaves. This tobacco is well worth the price paid for it. The writer has just returned from the Cagayan Valley, and the prospects for the next crop are good. Seed-beds are already being prepared, and the farmers will do their best to have enough to meet any losses caused by bad weather. We can expect, under the best conditions, a maxi mum of — Cagayan....................... 50,000 quintals Isabela.......................... 140,000 ” Total . . . 190,000 quintals and with unfavorable weather — Cagayan...................... 25,000 quintals Isabela.......................... 80,000 ” Total . . . 105,000 quintals — so let us hope for the best. In Western Luzon the first estimate of the crop was 64,000 quintals, but due to the heavy rains, this was reduced to — Union............................... 26,500 quintals Pangasinan.................. 14,500 ” Ilocos............................. 3,000 ” Total . . . 44,000 quintals Besides, there were about 9,000 quintals of Batec to bacco which is much sought after for the native mar ket. The buying in these provinces was wild, with practically everybody except the Chinese merchants out of the picture; and all of these competing against themselves. They bought 40,000 quintals plus 9,000 of Batec, the only other buyers being the Tabacalera with just under 2,000 quintals and some private buyers (L-3) with 2,400. Prices paid were around P30 a quintal. October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 405 In the South, the so called "Visayas” tobacco yielded a crop of 20,000 quintals, of which the Taba calera acquired around 11,000 and the Chinese mer chants the rest. Buying in this region was more nor mal and prices, although high for the locality, were not so impossible as those mentioned before. Around P20 a quintal would be a fair average. LAST September 15, the War Damage Commis sion called a meeting of tobacco dealers and manufacturers, government experts, and generally every available representation in the business, with the object of obtaining a clear picture of it, especially of it’s diverse and complicated methods of buying and evaluating the tobacco. We sympathize with the Commission for we understand the problems it has to deal with and ap preciate very much the fairness and tact with which the Commission is resolving them. It has spared no effort, and in spite of the seemingly practical impos sibility of establishing a pattern, if it is possible to do so, it will be done by the Commission. Every claimant and, especially the small farmer may be assured of the personal interest taken in his behalf, as the Chairman, Mr. Frank Waring, and Commissioners O’Donnell and Delgado, personally took up and discussed every matter that might help to resolve fairly the different claims. ANOTHER important meeting was held by Secretary of Commerce Balmaceda on the 12th of October to discuss limiting the importation of cigar ettes, as they come under the luxury classification of imported products. I will not go into the details of the discussion as the newspapers have published them, and will only point out the importance that such a measure will have for the local business. Once the quotas are fixed, it will be possible to get a clear perspective of the future possibilities, and how the three aspects, — agricultural, industrial and commercial, will be affected. The actual trend of every country is to econo mize as much as possible in foreign imports, reducing these to the essential ones which cannot be produced or manufactured locally. Naturally, in a tobacco producing country, any import affecting this busi ness has to be seriously considered. We hope that any measure taken will be for the best of the country, the business, and the smoking public. Automobiles and Trucks By G. E. Shingledecker Manager, Ford Motor Company THE Import Control Board conferred with auto mobile dealers and manufacturers’ representa tives on September 24 concerning proposed con trols on the importation of passenger cars. Conversa tions with the board members indicated that very stringent controls are being considered. Dealers and representatives advised the Board that due to pecu liarities of the automobile industry, the 'following points should be considered before instituting maxi mum restrictions: 1. The unemployment of skilled and semi-skilled labor which would result; wages paid by automotive ★ LUZON STEVEDORING COMPANY, INC. MANILA ★ MACLEOD AND COMPANY OF PHILIPPINES 307 Myers Building — Port Area HEMP EXPORTERS Agents For: ISTHMIAN STEAMSHIP CO. SWEDISH EAST ASIATIC CO. GLEN LINE LTD. AUSTRALIA-CHINA LINE LTD. Telephones. General Manager 1 2.73.92 Asst. General Manager J Manager Shipping Dept. 2-91-93 Accounting Dept. 2-96-22 BRANCHES AT: DAVAO and LEGASPI 406 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 it doesn’t COST TO ADVERTISE ON 650 KC KZRH 9640 KC 10,000 WATTS it-PA YS! MANILA BROADCASTING COMPANY INSULAR LIFE BLDG. MANILA ENTERPRISE HEAVY DUTY DIESEL ENGINES for Electric Drive Prompt Delivery Exclusive Distributors MANILA MACHINERY & SUPPLY CO., INC. 675 Dasmarinas Tel. 2-72-98 dealers and manufacturers in the Philippines are much higher than the general average. 2. The fact that the industry does not lend it self to the rapid contraction of capital-structure due to its large investments in fixed assets, such as ma chinery, buildings, and service and maintenance equip ment. 3. The loss to the Government in compensating taxes from a reduction in the sales-volume. 4. The fact that allocations based on pre-war historic import statistics will be difficult to apply be cause of the suspension of many pre-war firms and the many new authorized dealers who have begun operations since the end of the war. 5. The return of black-market conditions simi lar to those of 1946 because of the high demand for transportation. All passenger cars are being consi dered as luxuries or semi-luxuries, but the public to day considers automobile transportation to be an ab solute necessity. Representatives present requested that controls be begun on a graduated basis to give the industry time to contract its operations to meet the imposed restricted market, as the recent increases in com pensating taxes to 15% and 30% have definitely cur tailed sales and imports of the medium and higherpriced passenger cars. Pharmaceuticals By Frank A. Delgado Manager, Sales and. Wholesale Department Philippine American Drug Company (Botica Boie) THERE has been a general falling off in the pharmaceutical business, and indications are that the decline will continue well into 1949. Any sales estimate for the coming year is therefore speculative. However, one authority predicts that a drop of as high as 40% may be expected. This es timate, however, is an average figure and will vary with different lines depending on various factors, such as the quantity and quality of promotion, the aggres siveness of the distributor in covering the territory, and the support received from manufacturers. In spite of a stiffening in buying on the part of dealers and consumers, competition is increasing among im porters and manufacturers’ exclusive representatives, including manufacturers’ branches. During the cur rent year, several additional (not less than 4 or 5) American manufacturers have entered this market, employing sales staffs and engaging in the usual pro motion activities associated with these products. All, or nearly all of these firms, are of the so-called “ethical” type. A week seldom passes that one does not receive one or more announcements of price increases from various American medicinal manufacturers. These manufacturers state that, due to a steady increase in the cost of materials, they are compelled to increase their prices, which increases are frequently as high as 30%. Notwithstanding these increased prices, lo cal wholesalers and importers of the subject product continue to offer them at the old prices, due to an oversupply situation. The price-cutting situation has become so serious that one American manufacturers’ branch recently October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 407 released an announcement stating that it would cease selling to any of its distributors who cut their prices or give any discounts except to a list of selected whole salers. The number of distributors, large and small wholesalers, is greatly in excess of pre-war. The re sult is that, some of them, mostly the new-comers, frequently give away most of their mark-ups and at tempt to stay in business on a 5% to 10% gross margin. Aggressive and effective advertising is obvious ly necessary in such a highly competitive market. Manufacturers must not assume that because their product is among the large sellers in the United States, that it may likewise have a favorable reception in the Philippines. There are many peculiarities in taste and differences in consumers’ demand and usage. Many products could be named that are among best sellers in the States, but which are only “shelf-warm ers” in this country. The outstanding mistake which most American export managers insist on making, is to try to force the use of Latin American “copy” in this country. It is difficult to make them understand that any good American copy that is successful in the United States, will in all probability, with few exceptions, be well received and appropriate for the local press. In the field of medicinals, particularly the popular proprieta ry type, there should be more use of space in the vernacular press. On the other hand, manufacturers of the so-called ethical prescription specialties, should engage in heavy mailings to physicians and the health professions and make announcements in professional trade journals such as the Journal of the Philippine Medical Association. They should also engage one or more representatives, known in the trade as detail men usually a physicians or a pharmacists, to personal ly contact physicians in their offices, leaving pamph lets, literature, and samples. These, detailmen, ob viously, should also contact government and non-government hospitals and other related institutions. A big mistake, not infrequently made by American ma nufacturers, is to send 3,000 to 4,000 mailings of ex pensive literature, brochures, etc., without having first ascertained whether there is any stock or sufficient stock of the product being promoted on the pharma cists’ shelves. The domestic production of medicinals, particular ly of the popular type, is greater than is frequently believed, and the domestic manufacturer is usually much more encouraged than his American competitors when it comes to advertising. They not only use most of the media available, but their “ads” are generous in size and the copy compares favorably with that for the imported articles. Most of the domestic me dicinals are confined to the popular proprietary (pa tent medicines) type of product. Indications are that the domestic industry will continue a slow and steady expansion. There is some encouragement in the fact that the very heavy inventory of many medicinal items (not all) has been greatly reduced over that which pre vailed a year ago and wholesalers and importers are beginning to order many items. 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 Sold by leading Motor Car Dealers, Auto Supply Stores and Auto Shops DISTRIBUTED BY Marsman & Co., Inc. TRADING DIVISION COR. ANDA & STA. LUCIA STS. BRANCHES: CEBU INTRAMUROS. MANILA ILOILO TEL. 2-79-33 DAVAO . ==^=^====^=== Philprom=--------408 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 FOR RE-WINDING OF GENERATORS-MOTORS CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Manila Telephone 3-21-85 MOTOR SERVICE CO., INC. ★ AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES ★ 230 13th ST., PORT AREA MANILA TEL. 2-65-27 Food Products By E. A. L. Best Manager, Food Products Department Marsman & Company THE Pacific Coast maritime strike which began 65 days or. so ago at this writing, has seriously impaired the normal flow of foodstuffs to the Philippines. Deficits in some commodities are be coming apparent, notably fresh fruits and vegeta bles, which emanate largely from San Francisco and Los Angeles. A survey discloses there is no shor tage of other staple merchandise. General price tendencies seem to be toward lower levels. Flour importations continue steady, with suf ficient arrivals to meet ordinary requirements. With Seattle strike-bound, shipments are clearing through Tacoma and Anacortes, Washington. Limited car go-handling facilities at these two ports have caused serious freight congestion and extensively retarded ship loadings and sailings. Up until September 30, average monthly flour receipts for 1948 were 460,000 bags of 50 lbs. each. During 1947 the figure was 670,000 bags a month, of which part was re-exported to SCAP in Japan. For several months past there has been little varia tion in United States prices. Sizeable consignments of both American an dCanadian flour are reported to be enroute. Local quotations for established brands remain regular,— (per 50 lbs. bag). 1st grade .................................. P9.10 2nd ” P8.70 3rd ” P8.60 First-class Canadian flour is offered at P9.20 to P9.30 per 50 lb. bag. The new Canadian wheat crop is again favorable but probably not sufficient ly large, hence the market has a firm undertone. In any event, Canadian wheat closely follows the Chicago market which for the next year has a floor price of $2 for wheat at the farm (about $2.25 Chi cago). This prime factor should hold flour prices at present levels, with every possibility of advanc ing, once farmers have adequately stored their crops. The shipping strike has not decreased exports from Vancouver. In certainty, it stimulated Canadian flour sales. Since my last report there have been insigni ficant local price fluctuations covering evaporated milk. Leading brands are sold at P16 to P17 per case. The United States tendency is downwards, which many observers consider very singular for this period of the year. Prices usually increase dur ing winter months, and decline when spring grass becomes available for dairy cows. Evaporated milk importations during 1947 were 145,000 cases month ly. To date for 1948, the figure is slightly higher. Should the Pacific Coast strike be prolonged, a shortage of perishables is anticipated. Fortunately, there were sufficient overstocks to cover consump tion during the past two months. California supplies have been curtailed except for shipments via Tacoma, which in the future may not be such a ready shipping outlet. Prevailing market prices for important items are: Potatoes, American — 100# crate ............... P13.50 Onions, American — 50# bag ....................... P 7.00 ” Australian — 50# bag ...................... P 5.00 Apples, American size—163/216 crate ... P13.00 ” ” ” large ......................... P12.00 Oranges, American size — 200 ...................... P38.00 October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 409 A tinned-fish report or forecast of this market should be considered unreliable. Purchasers never follow a definite or systematic buying policy which is soundly correlated with price, supply and/or demand as these exist at the source-of-supply areas. A few weeks ago many Manila indentors were offering various types of canned fish in Manila at prices con siderably below factory replacement costs in Ameri ca. This Archipelago has been enjoying favorable weather to maintain an excellent and reliable local catch. Hence, imported products have not attained expected selling proportions. Present quotations: Sardines, oval tins, tomato sauce . . P25 to P30 case Mackerel, ” ” ” ’’ .. P24 Anchories, ” ” ” ’ ’ .. P23 Pilchards, Tall tins natural Mackerel, ” ” ” sauce P24 ” P23 Squid, ” ” ’’ ” PIO to PH Salmon, ” ” ” ” P35 In 1947 the Philippines brought in 1,375,726 cases of various classifications of tinned fish. From January to September inclusive (1948), importations amounted to 907,332 cases. That’s a lot of fish! Fishermen on the Pacific Coast will not bother to set their nets unless guaranteed $60 per ton of fish upon delivery to the cannery. Prices in the United States are declining. The official packing season is draw ing to a close. Throughout the Philippine wholesale and retail grocery trade, there exists a definite depreciation of purchasing power. Merchants in the Visayas are slightly better off than those in Northern and Southern Luzon. This may be partially attributed to internal disorders. What is hoped by conservative importers is that there will be no “after-strike” back log of order re petition such as last year, which flooded the market for months and completely upset our economic con ditions. There is another serious subject to con template. Will the Atlantic and Gulf seaboard strike issue be settled before the deadline of November 9? Textiles By James Traynor THE depressed condition existing in the local tex tile market for some 5 months ended around the latter part of August. During the months of September and October local prices came into line with replacement costs and generally showed a sa tisfactory return to importers. During September and October substantial com mittments were placed with American mills for ship ment during the balance of the year. Early in August importers requested American shippers to accept a change of terms from confirmed, irrevocable letters of credit to 60-days sight draft, documents against payment, which latter terms now apply to practically all orders being placed with Ame rican suppliers. Arrivals of textiles from China continue to be substantial and have increased in volume month by month since July. THE MACHINE TO COUNT ON For your multiplying and dividing work — FAST, ACCU11ATE, DEPENDABLE. So inexpensive — Yo>i should place one on every desk. SALES SERVICE PARTS SOLE DISTRIBUTORS O. E. S. & S. CO., INC. 673 DASMARIRAS (Gibbs Bldg.). MANILA TEL. 6-72-36 ISM the New Fire Retardant Coating Material ★ Excellent adherence and bonding qualities to insula tion boards, lumber, and other inflammable building materials. ★ Albi-“R” can be overcoated with any decorative or industrial oil paint, enamel, or lacquer, and retain fire protective quality. ★ Lasting fire protection—effective after 12 years weathering. ★ APPROVED by U. S. Underwriters’ Laboratories. Exclusive Distributors PHILIPPINE ENGINEERING CORPORATION 936 RAON, MANILA TEL. 2-98-71 410 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 YOUR SECURITY SEAL! The Philippine Guaranty Co., Inc. FIRE, MARINE, MOTOR CAR, WORK MEN’S COMPENSATION, MISCEL LANEOUS INSURANCE, FIDELITY, SURETY BONDS, MORTGAGE LOANS. 3rd Floor • Insular Life Bldg. • Plaza Cervantes MANILA Telephone 2-81-12 SILVER AND JAVA PACIFIC LINES SILVER LINE, LTD. JAVA PACIFIC LINE London, E. C. 2 N. V. S. M. "Nederland” N. V. Rotterdamsche Lloyd Amsterdam—Rotterdam 1<ERR STEAMSHIP CO., INC. JAVA PACIFIC LINE, INC. General Agents 17 Battery Place New York General Agents 25 Broadway New York MANILA ILOILO To and From CEBU VANCOUVER SEATTLE PORTLAND LOS ANGELES and SAN FRANCISCO To and From BOMBAY and CALCUTTA ★ SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Piece, New York 4, N. Y. FROM U. S. ATLANTIC COAST PORTS TO MANILA FROM PHILIPPINES TO 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 Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda SOME decisions of the Supreme Court which are of interest to the business community have been rendered recently. In the case of Aurrecoechea v. Kabankalan Su gar Company (September 11, 1948), the Court said that there had been no coercion in the plaintiff’s ac ceptance of Japanese war-notes, and that if he had been intimidated, he spent the proceeds and ratified the payment. We quote an interesting excerpt from the decision: "The ‘Mickey Mouse’ had value. It does not require any argument to show the falsity of plaintiff’s assertion that they were worthless. Indeed, we take judicial notice of the fact that in October, 1943, they had as much purchasing power, if not more, than the Victory notes had at the time the plaintiff filed his suit in April, 1945, — at least as regards local food stuffs and products. The very evidence of plaintiff says he used the notes to survive. “We refrain from considering whether the Japanese notes were legal tender. This question does not enter into this case. The point might be material if the plaintiff had avoided a tendered payment in those notes, or if he had really accepted them under coercion, express or implied. Neither of these factors, it has been demonstrated, was present in the instant litigation. On the contrary, as has also been demonstrated, it was upon his instance and insistence that the payment was effected. Neither was there any surprise, deceit, fraud, or mistake. There was only lack of foresight or business ability. ___________ In an insurance case (Estate of Villlanueva, August 31, 1948), the policy was on the life of Espe ranza Villanueva, with a specific maturity and with her brother as beneficiary in event she died before maturity. She survived the insurance period, but the beneficiary claimed the proceeds as against the estate. The beneficiary claimed that the proceeds of an in surance policy belong exclusively to the beneficiary as separate and individual property and not to the heirs of the deceased. The Court held that a bene ficiary of such a policy has a contingent interest only, and that in event the insured survives the maturity of the policy, the proceeds are payable to the insured or his assignee, or to his estate if there is no assignee, notwithstanding a beneficiary is designated in the policy. ________ In an appeal from a decision of the Insular Audit or denying a claim of the owners of property adjoin ing the ECA compound for damages for the burning of buildings arising through the neglilgence of a per son in such premises igniting his cigarette-lighter near gasoline belonging to the ECA, which had no permit from the City to have gasoline on the premises, the Court held that the Government was not respon sible for the negligence of ECA or its officers. The Court denied reconsideration of the Haw Pia case involving payment of pre-war debts in Japanese currency. However, in a case (Legarda v. Carrascoso, August 31, 1948), where the contract provided for an option to the creditor to require payment of the debt in either Philippine currency or British currency, and the Court of First Instance had held that the creditor had no right to refuse payment in Japanese currency, the Supreme Court reversed the judgment and ordered a new trial. The court said: October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 411 “...And although he did not say so in plain words, his refusal to take the Japanese notes could have no other signi ficance than his election to be paid in British currency or, at least, Philippine currency at the right valuation, — consider ing the well-known depreciated value of the Japanese notes at that time. We are all of the opinion that defendant should have been permitted to establish such defenses.” In a proceeding by sub-tenants to restrain the sheriff from carrying out an order of eviction of the lessee and the removal of their “barong-barongs”, the Court over ruled their petition and said that the sub tenants had no rights greater than the lessee, and the fact these sub-tenants had not been parties to the eviction suit made no difference. In an estate proceeding the Court held that as property of a decedent is deemed to be transmitted to the heir from the instant of the death, and each heir becomes an undivided owner of the estate with respect to the portion which may be adjudicated to him, a community of ownership is thus formed among the co-owners of the undivided estate, and that under the Civil Code every part-owner may assign or mort gage his part of the common property but the ef fect of such assignment or mortgage shall be limited to the portion which may be alloted to him in the partition upon dissolution of the community. Re ference is made to a former decision which held that where some of the heirs, without consent of the others, sold property of the deceased, the sale was valid but its effect limited to the share which might be allotted to the vendors upon partition of the es tate. On October 2, 1948, a decision was rendered on a petition to set aside an order of the Court of In dustrial Relations. In 1947 the Court of Industrial Relations authorized the temporary closing of a saw mill and the laying off of its laborers with the con dition that should the Company reopen its mill it should permit its employees to continue in its ser vice. Later the Company leased its saw-mill to an other Company which took some but not all the for mer employees. Those left out filed contempt pro ceedings against both the lessor and the lessee. The Court of Industrial Relations dismissed the contempt proceedings and rendered a decision to the effect that there was no evidence that the lease was fictitious or entered into to negate the former order of the Court. The Supreme Court held that the question raised was whether the two companies were identi cal, or the lease fictitious for the purpose of circum venting the Court’s order. The Supreme Court held these were questions of fact and that the Supreme Court would not inter fere with the findings of fact of the Court of Indus trial Relations, but would limit its attention to ques tions of law. Three Justices dissented and stated the principle should be that “the findings of the Court of Industrial Relations are conclusive and will not be disturbed in the absence of a showing that it has abused its discretion,’’ but that in the present case the Court of Industrial Relations had not properly weighed the evidence and that its findings were not supported by the evidence and that the order should be reversed. Other Chambers of Commerce Philippine Chinese General Chamber of Commerce By Yang Sepeng STANDING in the midst of a community that is gradually emerging from the ruins of the last war, the P600.000 building of the Philippine Chinese General Chamber of Commerce on Benavides Street is nearing completion. It may be the most imposing edifice in the vicinity, but it certainly was built at a tremendous sacrifice on the part of the Chinese community in the Philippines, in general, and of the members of the Chamber of Commerce, in particular. It was a sacrifice because the money used in the construction of the building came from funds urgently needed in the rehabilitation of the business enterprises, large and small, of the members of the Chamber. Started early this year, the building which stands on the old site of the pre-war Chinese YMCA, is a three-story structure designed to house the down town office of the YMCA of the Philippines on the ground floor; the Philippine Chinese General Cham ber of Commerce on the second floor; and the UNO Club, successor to the pre-war Cosmos Club, on the third floor. It is not an architectural masterpiece, but the design is for general utility, hence, its simpli city. Special mention must be made of the YMCA, the leadership of which comes from members of the Chamber of Commerce. As before the war, varied recreational facilities are available, like the bowling alley, the swimming pool, the gymnasium, the indoor baseball court, and, of course, enough space for other games, such as pingpong and billiards. There is also a dormitory, and there is even a Turkish bath and massage-room for businessmen. The Philippine Chinese General Chamber of Commerce feels proud in having been instrumental in expediting the resumption here of the great youth movement, the YMCA, which has proved to be so great a social, educational, and spiritual factor every where. The members of the Chamber feel happy that the YMCA unit on Benavides street is no longer the Chinese YMCA alone, but a part of the national YMCA of the Philippines. Youths of any nationality will find the downtown unit of the YMCA, in the Chinese Chamber of Commerce Building, the same type of organization that it is in any other part of AGENCIES CHARTERS SALES TELEPHONE 2-80-39 American Steamship Agencies, Inc. MANILA, SHANGHAI, SINGAPORE, GUAM CABLE ADDRESS: “AMERSHIP” 314 MYERS BLDG. PORT AREA MANILA 412 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 the world. Finally, if the building symbolizes anything at all, it is that it stands as a token of the faith of the Philippine-Chinese in this new Republic, under whose flag and laws they live. The building speaks of the hopes of the Chinese for the future of the Republic, for they did not hesitate in constructing a building that will stand for a great number of years. Those who have so glibly charged that the Phil ippine-Chinese “abuse the hospitality” of the Filipi nos, might examine the 44 years of life of the Cham ber and note what part it has played not only in promoting legitimate business, but in contributing to the uplift of a sound community life. YANG SEPENG, Executive Secretary. Philippine Safety Council By Frank S. Tenny Executive Director LAST call has been issued to those interested in the Vehicle Safety Maintenance Class to be conducted by the Philippine Safety Council in conjunction with the Army Transportation Associa tion and the PHILCOM Ordnance Depot. The course will cover instruction and demonstration of proper maintenance, lubrication, and servicing of army-type vehicles. It will be specially adapted to the interests of fleet operators who are running former army or surplus jeeps, weapons-carriers, 6 x 6’s, etc., a sur vey having shown that many operators do not know the proper procedures and that many of these vehicles prematurely been worn out or become unsafe* Special invitations have been sent to members of the Philippine Motor Association, Army Transporta tion Association, National Post-war TPU Operators Association, and Safety Council. Those desiring to attend the class or to send representatives are asked to contact their respective organizations or the Safe ty Council headquarters at 129 L. Guerrero, telephone 2-97-24. There is no charge or obligation of any kind. THE new extra-low-pressure tires for passenger cars, now being manufactured by most tire companies, are praised by United States safety autho rities and have gained the endorsement of the Phil ippine Safety Council. Information from abroad in dicates that engineering tests conducted on the new 24 lb. pressure “supers” have disclosed many improve ments over the former types. The tires contain an average of 10% larger cross-section, 18% greater air volume, with 14 %> less air pressure. Other ad vantages include: (1) increased cushioning, (2) re duced body-shake, (3) improved cornering, (4) lower rolling resistance and slightly better fuel eco nomy, (5) improved flotation, (6) Less road noise, (7) longer tire life, and (8) improved life of many other car parts. The Council stresses that it does not recommend any particular brand of these new tires over any other brand. The Coming Import . . . (Continued f rom page 370) firearms; fireworks; and ammunitions; Soaps; toys and novelties; photographic Equipment (non-professional) and supplies, radios and moving-picture films; cigarrettes; home-type cooling apparatus and electri cal appliances; articles manufactured of leather, such as shoes, etc., as well as rubber shoes and compo nents thereof; fresh and dried fruits (including oranges.), candy, sugar, molasses, etc.; automobiles; glass and glassware, clay porcelain and china, sun dries, chewing-gum, matches, candles, steel office fur niture (except filing cabinets), etc. Of the items originally considered for control, but which will probably be excluded are explosives, tobacco, leather skins, bulk candy-making materials such as blucose, and construction materials. Natural ly, goth of the foregoing lists are only surmise, and official information will not be available until the President’s order is issued. In general, it can be considered that the aims of the government in imposing import control, are to conserve dollar-exchange, to promote the domes tic manufacture of articles previously imported, and to assist the Filipino businessman in establishing himself in Philippine trade. It can be anticipated, too, that the Government will seek to avoid causing shortages or increases in prices of items which are in everyday use by Filipinos. With the foregoing aims in mind, businessmen in the Philippines and those interested in Philippine trade should be able to make a fairly accurate guess as to the effect of import control on their own particular business. MANILA SHIPYARD, DRYDOCK AND ENGINEERING CO. OFFERS COMPLETE HULL AND ENGINE REPAIR THREE SLIPWAYS AND DRYDOCK AVAIL ABLE. Shipyard: Navotas, Rizal Tel. 40 Ask 499 Office: Room 507 Insular Life Bldg., Manila Tel. 2-89-06 NORTH COAST LUMBER DRY KILNS OPERATORS WITH VISION ARE NOW PLANNING FOR A COMPETITIVE MARKET. C. M. LOVSTED & CO. (MANILA) LTD. 220 Regina Bldg. P. O. Box 2485 Escolta Phone 4-n6-43 October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 413 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO (1948) (1941 = 100) Bureau, of the Census and Statistics Manila 1948 1946 All ^Rent | (8.131 I Cloth ing | (0.G2) Fuel, Light and Water (13.94) Miscel laneous (17.8G) Purchas ing Powei January .. 603.4 759.2 236.4 984.0 363.8 434.8 .1657 February . 547.2 656.3 236.4 940.3 369.5 460.5 .1827 March .... 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April .... 556.2 684.1 236.4 910.3 345.5 435.9 .1798 May .......... 545.1 675.6 236.4 762.5 342.3 409.6 .1835 June ........ 538.7 666.4 236.4 737.9 343.3 404.2 .1856 552.7 704.3 236.4 598.9 341.3 364.6 .1809 August ... 477.9 590.0 236.4 384.7 320.9 346.3 .2092 September 477.9 591.3 236.4 378.7 314.5 347.2 .2092 October ... 487.4 587.2 236.4 382.7 405.8 342.7 .2052 November . 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December . 461.9 570.8 236.4 371.9 344.7 302.1 .2165 19472 (100.00) (63.43) (11.96) (2.04) (2.73) (14.48) January .. 426.2 468.2 453.9 381.9 326.2 282.5 .2346 February . 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March .... 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April........ 387.7 413.3 453.9 269.2 328.9 271.6 .2579 May.......... 381.0 404.4 453.9 250.9 325.4 269.4 .2625 June ........ 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July .......... 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August ... 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October ... 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November . 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December . 371.9 395.8 453.9 219.1 298.2 262.9 .2689 R. C. STAIGHT & CO., INC. Ill—13th Street, Port Area General Agents for the Great American Insurance Co., N. Y. Great American Indemnity Co., N. Y. Fire, Automobile, Marine, Workmen's Compensation Telephone 2-70-30 January .. February . March .... April ........ May.......... June ........ July.......... August ... September October ... 391.2 428.3 368.5 392.0 349.4 361.0 356.1 374.1 349.8 360.2 354.3 370.4 35G.4 374.2 363.6 385.7 370.6 397.2 374.9 404.0 453.9 224.5 453.9 223.8 453.9 214.6 453.9 209.4 453.9 214.2 453.9 205.2 453.9 201.3 453.9 199.8 453.9 199.2 453.9 204.8 304.6 249.9 301.1 254.4 308.1 255.9 289.7 254.8 289.7 271.6 283.2 262.9 281.6 262.4 281.6 261.7 279.6 260.6 283.2 257.9 .2556 .2714 .2862 .2808 .2859 .2823 .2806 .2751 .2698 .2668 SUPERIOR GAS & EQUIPMENT CO. MANUFACTURES AND MANUFACTURERS’ REPRESENTATIVES 1 Average number of persons in u family — 1.9 members. 3 Revised in accordance with the new survey cn the "levels of Living, in Manila” by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. The following weights were used in computing the "over-all” index: Foodstuffs — 63.43; Clothing — 2.04; House rent — 11.96; Fuel, light, and water — 7.73; and Miscellaneous — SWAN, CULBERTSON & FRITZ BROKERS IN LOCAL AND FOREIGN SECURITIES Member—Manila Stock Exchange New York — San Francisco Correspondents — Honolulu — Uruguay Shanghai — Honcfkong 701 S. J. WILSON BLDG. TFT J 2-74-55 143 JUAN LUNA 1 ^12-80-53 Producers of: SUGECO Highest Purity OXYGEN and ACETYLENE GASES “SUPER FLAME” BOTTLED & TANKED GAS For all cooking purposes CARBON DIOXIDE in liquid and solid form For FIRE EXTINGUISHERS, BOTTLED DRINKS and FROZEN FOOD PRESERVATION HYDROGEN GAS For Balloons Distributors of: NATIONAL CARBIDE WELDING EQUIPMENT & SUPPLIES TAPPAN GAS STOVES with complete Installation & Service Facilities Tel. 6-88-02 414 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 • TRUCKS • PICKUPS •TRAILERS • HEAVY LIFTS Available Daily Telephone 2-79-35 MR. SCHEDLER LUZON BROKERAGE COMPANY The=-- —=^— ----^=— . - ’ LET YOUR HAIR DOWN” —-------- :------- Colum n THE Far Eastern Economic Review (Hongkong) in re printing the August Journal editorial, “Elimination of Sub marginal Post-war Business Ven tures,” introduced it with the fol lowing paragraph which is of in terest here: “All the mushrooming little trading and brokerage firms which were a com mon sight in Hongkong and every other city in the Far East in the first and second year following the end of the hostilities have slowly but inexorably given way to the old-established mer cantile houses and, by and large, their prosperity has not lasted but re sulted in the end in failure. Conditions as described in the following article of the American Chamber of Commerce Journal of Manila are not peculiar to the Philippines but with slight varia tions, have been observed both in Hong kong and in other centers of Far Eastern trade.” The editor received the follow ing fine letter from Mr. Horace B. Pond, who now lives in Reno, Nevada: “I have received a file of the Jour nal, which, as you1 are the Editor, I as sume was sent by you. I appreciate your kindness in sending it to me. I have gone through it with much inte rest. May I congratulate you on the fine work which you are doing on be half of American business in the Phil ippines? It measures up to the high standards set by you over the many years when you were Editor of the Philippine Magazine. “Philippine problems have changed. With the recognition of independence there seems to have developed an up surge of economic nationalism. This is to be regretted, for there is much to be gained by cooperation among all elements in the Philippines, Filipino as well as foreign, in working out the E. E. ELSER, INC. GENERAL AGENTS for ATLAS ASSURANCE CO. LTD.—THE EMPLOYERS’ LIABILITY ASSURANCE CORP. LTD CONTINENTAL INSURANCE CO. OF NEW YORK—ORIENT INSURANCE CO. THE INSURANCE CO. OF NORTH AMERICA 404 Ayala Bldg., Manila Phone 2-77-58 Cable Address: “ELSINC" problems of rehabilitation and read justment. Foreign capital in foreign business not only can provide more jobs for more people, but can greatly ease the stresses and the strains as Ameri can financial aid declines and Ameri can tariff preferences are progressive ly reduced. “I read with particular interest your article in the September, 1948, issue on Foreign Manufacturers’ Representa tives. The nationalization of their businesses would, I believe, not only be harmful to American business in the Philippines, but to the Filipino people as well. I appreciate the kind things that you said of the Pacific Commer cial Company and of me. “Mrs. Pond and I are living quietly here in Reno, where we see many of our old Philippine friends, and with them reminisce on your years spent in the Philippines, and discuss current developments there. She joins me in kindest remembrances and in all good wishes.” We had a letter from Mr. Ver non E. Moore, Director of the Washington office of the U. S.Philippine War Damage Commis sion, which read in part: “Last week I had the pleasure of hav ing several visits with Fred Stevens, President of the American Chamber of Commerce of the Philippines, and Mrs. Stevens when they were here in Washington. “I welcomed the opportunity to talk to Mr. Stevens because he was able to give me a first-hand picture of conditions in the Philippines at this moment. The in formation he gave was augmented ear lier this week when I had the pleasure of visiting with A. D. Calhoun, of the National City Bank of New York, who plans to return to the Philippines very soon. October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 415 “The real purpose of this letter is to advise you of my interest in your Jour nal. When I asked Mr. Stevens whe ther it would be possible for me to place a subscription for the Journal, he very graciously offered to send it to me with out charge, but knowing that you have a budget to meet and that publication costs are on the increase everywhere, I am enclosing my check for $5 for a year’s subscription. “I enjoyed reading the Journal for August, this year, it being the-only one I have seen since I was in Manila as an attache to the official United States De legation to the inauguration of the Re public on July 4, 1946. The August is sue was of particular interest to me as it contained some enlightened articles from the pens of several of my friends and acquaintances, — ‘Chick’ Parsons and Messrs. Hoskins, Mitke, and Selph. “I am sure the Journal will be of great help to me in connection with my work in my dual capacity as Director of the Washington Office of the Philippine War Damage Commission and Secretary of the Philippine Rehabilitation Commis sion. “In the event it is possible to send the Journal by air-mail, please advise me of any additional charges as I should like to receive it as soon after publication as possible...” We sent Mr. Moore all the available back issues of the Jour nal and informed him that the cost of mailing a copy by air is now P6 per issue, which, with all respects to the air-line companies (valued advertisers of ours, too), we think damn high! A letter of similar tenor came from Mr. Chas. A. Mitke, who wrote from the Bankers Club, 120 Broadway, New York, who wrote in part: “In both New York and Washington I have heard a great deal about the Ame rican Chamber of Commerce publications and I feel that they are doing a great deal of good...” A letter from a local reader, Mr. P. R. Romero, Chief of the Commercial Intelligence Division of the Philippine Bureau of Com merce, read: “This is to acknowledge receipt of a copy of the September, 1948, issue of the American Chamber of Commerce Jour nal, and to thank you for your kindness in sending us said copy. Your publica tion is a valuable reference to our office personnel and researchers who use our business library. In fact, it is one of the few magazines which we recommend to parties who inquire from this office for useful and reliable local publications of an economic and commercial nature. We have noted, however, that we have not received any copies of the June, July, and August, 1948, issues of your Jour nal. We should appreciate it very much if you would send us said missing issues happv bhoiho’ For the detiili of MARCHANT AUTOMATIC SIMULTANEOUS MULTIPLICA TION, pleeie write for folder CWAM-r. the MAR CHANT man 2-80-60) to Pr°ve the •tatements. AUTOMATIC 5ILENT-5PEEO Marchant M0l.ipli„,lol, “ '^swiftest bwaMe there’s no waiting for an. swers...it’s the SIMPLEST because it takes only two acts-..it’s the SUREST X'caute aU C'ntain i„ the dia|s positive proof of operate, accuracy. Exclusive Distributors ERLANGER & GALINGER, INC. On Muelle del Banco Nacional • Entrance — 60 Escolta, Manila CEBU — DAGUPAN — SAN PABLO — BAGUIO 416 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS AGENTS — SHIP BROKERS General Oriental Agents: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama ★ THE IVARAN LINES — FAR EAST SERVICE (Holter-Sorensen - Oslo, Norway) ★ PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) Sweden ★ GENERAL STEAMSHIP CORPORATION LTD. San Francisco ★ SIMPSON, SPENCE & YOUNG ■New York ★ V. MUELLER Kobenhavn, Denmark ★ Head Office: 5TH FL., INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 2-96-17 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA KOBE—NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: “SUGARCRAFT” All Offices to enable us to complete our collection of your publication. Reiterating once more our thanks and offering you at all times the reciprocal services of this Bureau, we remain, etc.” We thanked Mr. Romero for his letter and sent him also a full set of the Journal for his library although we have regular ly sent complimentary copies ad dressed to the Director of the Bureau of Commerce. Readers •who fail to receive the Journal re gularly are urged to inform us so that we can send them is sues which they may miss. Since we use an automatic addressograph, copies are always duly mailed out, but they may be lost in the mails or in the offices to which they are addressed. We had a letter from Frederic H. Stevens, President of the Chamber, now in the United States, which ended with the fol lowing postscript: “Tell H. that his paper, our Journal, is very, very well thought of in New York. Am proud of the numerous com pliments I receive.... ” Then followed a few lines which modesty prevents the edi tor from reprinting here. The general sense was that Mr. Ste vens was getting credit that should go to the editor, but no one knows better than the editor how much of the present success of the Journal is due to Mr. Ste vens’ support and active assist ance. am having some trouble with my course in economics, dad,” said one of the editor’s sons the other night. “We are getting all sorts of theories, old and new, ac cepted or discarded, sometimes I don’t know which, and it is all very confusing. Isn’t there some one, underlying principle, like, in biology, the theory of evolution?” “Well, son,” said the editor, pleased with his offspring, “that is an intelligent question. To tell you the truth, I had the same dif ficulty when I was a student, and I am not sure that everything is clear in my own mind even now. Economists still differ on many points. The whole subject is very complex and there does seem to be a lack of a general, unify ing, and clarifying principle. Of course, the concept of evolution underlies the social sciences as well as the biologic, but we must look for something less general. I have a notion, not original, but yet not generally emphasized enough, in my opinion. Perhaps it is too simple. Of course, many other factors enter in... ” “What is that notion?” asked the boy, and the editor, readily enough, went on: “Of course, you know the principle of supply and demand in relation to value and price. When supply decreases, the price goes up; as supply increases, the price goes down.” “Yes, that’s simple enough.” “Well, the concept of supply and demand can be applied not only to the value and price of goods, but to the ‘prices’ or re muneration of all four or five of the so-called factors of produc tion. “As you know, the factors of production are land, capital, labor, and enterprise or direction. The remuneration for the use of land is rent; for capital, interest; for labor, wages; for enterprise, management, and risk, profits. There is a fifth factor, — protec tion and regulation, exercised by the community through the gov ernment, the remuneration for which is taxes. This classifica tion may be a little sharp, even doctrinaire, but it is illuminating. Some economists recognize only two basic factors of production, — land and labor, but I think the five-point list more helpful. “Economic production is a co operative enterprise, you see, and the various elements concerned in it and their agents, — the land owner, the capitalist, the worker, the entrepreneur, and the govern ment, all share, rightly, in the proceeds. Now the underlying principle I have in mind is that rent, interest, wages, profits, and taxes all go up or down according to the principle of supply and de mand as it affects the factors concerned. “The respective shares of the total proceeds which the various agents receive, depends upon the relative demand for, and supply of, these agents or the elements they represent. The shares of each vary, — one receiving more and the other less, depending October-November, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 417 EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U. S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf Ports — Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarinas St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) Automatic Calculators To all who need accurate figures in a hurry,,, PHONE OR WRITE US FOR DEMONSTRATION ON YOUR OWN WORK JMiTKBfLUCaiTD. TRAOE AND COMMERCE BLDG, MANILA upon the conditions existing at the time. “This principle would seem to account not only for short-time fluctuations in rates and aggre gates, but for the known broad historic trends, too.” Hardly pausing to take breath, the editor continued: “It is well known that, as the world has been building up its capital, through what must fun damentally be a process of saving, — of producing more than is im mediately consumed, its factory buildings and machinery, its tools and implements, and its materials for work (capital goods), the in terest rate has, historically, been going down, though the total paid in interest has, of course, greatly increased. “It is also well known that as our machine civilization has been developing, the need for more and more highly skilled workers has been increasing, in the main, faster than the supply, so that wages, historically, have been ris ing, not only for the individual wage-earner, but vastly in the total paid in wages, which, of course, is also in part due to the tremendous increase in produc tion made possible by our ma chines. “With our growing populations as well as increasing urbaniza tion, suitable land has become re latively more difficult to obtain, so that rents have also been ris ing. “And as, under the growing complexity of our economic life, successful entrepreneurs and man agers must survive more and more stringent tests as to their ability, their share, in the form of pro fits, has been increasing, too, in dividually and in the aggregate. “As for taxes, they have gone up because of the need, the de mand, for more and better gov ernment. “You will see, now, that the re muneration of all these agents concerned in production, with the exception of the capitalists if the rate of interest is considered, has been and is continuing to rise, not only because the total production has increased- and continues to increase so tremendously, but be cause in the case of all these four factors, demand has tended to ex ceed supply. RADIOTYPE YOUR MESSAGES S&r-ou'nd f/ie For GLOBE MESSENGER Tel. 2-95-17 — 2-97-91 GLOBE WIRELESS Ltd. Main Office Sixth Floor China Bank Bldg. Branch Office Lobby, Filipinas Bldg. Plaza Moraga 418 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 “Basically, it is all a matter of supply and demand. With our growing control over our environ ment and our vastly improved means of production, we can de mand more of life and are pro ducing more to supply that de mand. (Continued from page 381) Total ......... P 22,839,522 P 18,498,150 8. taper and manufactures— United States . 17,510,044 1 5,655,410 Sweden .............. 1,524,766 577,110 Canada .............. 906,738 344,1 54 Hawaii .............. 899,978 294,938 Norway ............ 43 3,474 872,684 Spain .................. 344,038 186,780 Austria .............. 296,662 Belgium ........... 241,094 84,648 Italy .................. 173,874 — Netherlands . .. 143,432 — Other countries 365,222 482,426 9. Dairy products— Total ......... P 22,239,134 P 30,886,400 United States 21,495,788 28,166,400 Switzerland . . . 233,106 101,218 Denmark ......... 162,914 187,718 Netherlands ... 141,886 1,271,974 Australia ........... 89,372 83 1,050 New Zealand . . 75,320 229,954 China ................ 37,234 20,602 Argentina ......... 2,552 — Hongkong .... 884 — Italy .................. 50 — Other countries 28 77,484 10. Machinery, except agricultural and electrical Total ......... P 20,443,736 P 15,817,898 United States . 19,328,368 15,014,832 Great Britain . . 629,408 434,792 Switzerland . .. 201,134 32,960 Sweden .............. 154,990 106,594 Canada .............. 38,236 26,088 Hawaii .............. 33,732 13,166 Australia ......... 13,802 44,308 Italy .................. 10,018 13,530 China ................ 9,804 43,418 Denmark ......... 9,704 — Other countries 14,540 88,210 Other Imports P244.067.156 P202,631,672 Total Imports P606,135,260 P560,670,666 The Journal Goes Straight to the Desks of Business and Government Executives “As for prices, it is true that they have, historically, been ris ing, in terms of money, and that is because our supply of media of exchange has been increasing, but as we have been producing more and more goods and services all along, and as our transportation, communication, and other ex change and distribution facilities have been improving all the time, real prices have, historically, been going down. The average man now consumes goods and com mands services which were not even thought of by the richest and most powerful men of past times except in tales of magic and marvel. “Supply and demand in econo mics may, in terms of biology, be taken to correspond to the avail able food and the number of ani mals and plants in a given habit at. The food available finally de termines the number. There can never be more living things than there is food for. As living be ings, also our fundamental con cern must always remain that of food production. “Another biologic principle, that of the struggle for existence and the survival of the fittest, also applies in the world of hu man economics, — in agriculture, in industry, and in trade. So, it would seem, does the biologic law of optimum size. “But to come back to the law of supply and demand, — that is of fundamental importance in all branches of economics. That, I believe, is the underlying, unify ing, and clarifying concept you are looking for. “Practically speaking, if you want to be well rewarded for your efforts, then produce or manufac ture goods or render services which are scarce and for which the demand exceeds the supply... “And could there be a more perfect, a more beautiful law? Supply limits the satisfaction of demand, yes; but demand also, in effect, creates supply. Man makes his demands on Nature and on himself (he is a part of Nature), and Nature, and he himself, sup plies that demand. Man asks, and, — provided he takes proper thought and does some work, he receives. O beautiful, bountiful world!” The editor noticed that his son was nodding, — but not, alas, in understanding, agreement, or ap preciation ... He had been out late, to a students’ dance, the night before. But the editor kept on, talking to himself: “The exception in the case of capital, — the steadily decreasing interest rate, is most interesting and significant. Unless we go on destroying our capital in one disastrous war after another, capital will become more and more abundant and the interest rate will decrease until it becomes only nominal, and this may peace fully bring about revolutionary social and political changes. The remuneration of labor and man agement, and also of the commu nity as a whole, through the gov ernment, will continue to increase until practically the whole of the proceeds of production will pass almost directly to all the people. Capitalism will, of itself, turn into a kind of socialism, as, in fact, is already doing... Not be cause of its alleged “inner contra dictions,” but because of its mag nificent success. Even now it is plain that the people in the most highly capitalized countries are the best off.” Republic of the Philippines Department of Public Works and Communi cations BUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, A. V. H. Hartendorp, editor and manager of the American Chamber of Commerce Journal, published monthly in English at the Office of the American Cham ber of Commerce of the Philippines, Manila, after having been duly sworn in accordance with law, hereby submits the following state ment of ownership, management, circulation, etc., which is required by Act No. 2680, as amended by Commonwealth Act No. 201: Editor, A. V. H. Hartendorp, 512 Insular Life Building, Manila Business Manager, A. V. H. Hartendorp 512 Insular Life Building, Manila Owner, American Chamber of Commerce of the Philippines 512 Insular Life Building, Manila Publisher, American Chamber of Commerce of the Philippines 612 Insular Life Building, Manila Printer, Carmelo & Bnuermann, Inc. 2067 Azcarraga, Manila Stockholders owning one per cent or more of the total amount of Btocks: None. Bondholders, mortgagees, or other security holders owning one pet cent or more of the total amount of security. None. Total number of copies printed and circu lated of the last issue, dated September, 1948: Sent to paid subscribers .................... 800 Sent to other than paid subscribers . 1200 Total ........................ 2000 (Sgd.) A. V. H. Hartendorp Editor and Manager Subscribed and sworn to before me this 25th day of September, 1948, at Manila, the affiant exhibiting his Residence Certificate No. A-71585, Issued at Manila on January 15, 1948. Emilio V. Salas Notary Fublic Until December 31. 1948 Doc. No. 249 ; page 63: Book No. II; series of 1948. 419 See that trademark! It stands for today’s ‘Big Tire Value’... and it’s on the tire that OUTWEARS PREWAR TIRES Careful buyers are putting their money on the new B. F. Good rich Silvertown tire. They know it OUTWEARS PREWAR TIRES . . . costs less per mile . . . because it has a wider, flatter tread that covers more ground with less wear at any one point. They know this huskier tread has a stronger cord body to give added protection against blow outs and resistance to road shock. They know that price is what you pay . . . that what a tire costs is measured in length of service. Yes ... the new Silvertown is best in the long run. It’s the tire that actually costs you less per mile. GOODRICH INTERNATIONAL RUDDER COMPANY 13TH STREET, PORT AREA MANILA TELEPHONE 2-88-24 420 AMERICAN CHAMBER OF COMMERCE JOURNAL October-November, 1948 This P&H Welder Has Its Own Power Taka It Anywhere—Weld Anything You can use this P&H Trailer Welder any where — in the field, or in the shop. It has its own' gasoline engine to drive the welding generator. The P&H Trailer Welder is easy to use. It has only one simple control for all welding jobs. Behind its design is the experience gained in operating hundreds of welders and using thou sands of pounds of welding electrodes each month in the huge P&H plants. Ask your P&H dealer for more information. P&H ARC WELDERS Main Offices and Plarts Milwaukee 14. Wit, U.S.A. P&H WELDING ELECTRODES P&H also manufactures a complete line of AC and DC welding electrodes tor all needs. Your dealer can supply you. THE EARNZHAWT D O C K T & h C \ C L LL L Corner Tacoma & Second Streets, Port Area, Manila — Tel. 2-68-48 IUCN WOIJKf Branch at BACOLOD. Occidental Negros THE MARK OF EXCELLENCE FINANCIAL SERVICE ★ Mail and Cable remit tances to most pails of the World ★ Foreign Collections ★ Documentary Credits ★ Travelers Letters of Credit ★ Drafts ★ Travelers Cheques ★ Money Orders TRAVEL SERVICE ★ Air Tickets ★ Steamship Tickets At Ticket Counter Rates ★ Train A Pullman ★ Hotels & Resorts ★ Information on passports and assistance with other travel requirements FOREIGN SHIPPING SERVICE Merchandise of every description, personal effects and baggage aocepted 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 Hogar Filipino Bldg.—Juan Luna St.—Tel. 2-71-56 General Foreign Agents NEW YORK CENTRAL RAILROAD Wherever electri city is used, there you will find the influence of Ge neral Electric re search, engineer ing, and crafts manship. GENERAL^ ELECTRIC (P.IJ INC. 120 13 TH STREET PORT ARIA, MAN ILA