The American Chamber of Commerce Journal Vol. XXIX, No.8 (August 1953)

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Title: The American Chamber of Commerce Journal Vol. XXIX, No.8 (August 1953)
Issue Date: Vol. XXIX, No.8 (August 1953)
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extracted text: Published monthly by the American Chamber of Commerce of the Philippines 424 San Luis Street, Manila, Philippines — Telephone No. 3-23-24 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 J. H. Carpenter, President; W. C. Palmer, Vice-President; R. J. Baker, Treasurer; F. C. Bennett, S. W. G. Lehman, Paul R. Parrette, E. E. Selph, W. M. Simmons, and Paul H. Wood. Mrs. Virginia Gonder, Executive Vice-President; I. T. Salmo, Secretary Vol. XXIX August, 1953 No. 8 Editorials — Contents Korea and the Coming Political Conference.............................................................................................................................................................................. Messrs. Lansang and Puyat on “Nationalization”..................................................................................................................................... The Philippine Highway Act of 1953........................................................................................................................................................................................... The Coming Scientific Congresses................................................................................................................................................. ............................................ Government Planning Commissions............................................................................................................................................................................................. American Funds and Credits “Sequestered” by the Japanese............................................................................................................................................. The Halsema Mountain Road............. ................................................................................................................................................................................................... Philippine Economic Development ............................................................................................ Secretary CorneliO Balmaceda............. 303 304 306 308 308 308 309 311 The Business View The Government..................................................................................... ....................................................... Banking and Finance.................................................................................................................................. Manila Stock Market................................................................................................................................... Credit................................................................................................................................................................. Electric Power Production......................................................................................................................... Real Estate...................................................................................................................................................... Building Construction............................................................................................................. Private Building Construction in Manila, 1940-1953 (tables).............................................. Port of Manila .............................................................................................................................................. Ocean Shipping and Export (Half-year figures)........................................................................... Freight Car Loadings.................................................................................................................................. Lumber............................................................................................................................................................. Mining.......................................................................................................................................... Gold and Silver Production, January to June, 1953................................................................ Base Metal Production, January to June, 1953......................................................................... Copra and Coconut Oil............................................................................................................................... Desiccated Coconut...................................................................................................................................... Sugar.................................................................................................................................................................. Manila Hemp................................................................................................................................................. Tobacco............................................................................................................................................................ Imports............................................................................................................................................................. Food Products................................................................................................................................................ Textiles............................................................................................................................................................. Legislation, Executive Orders, Court Decisions.................................................................................. Philippine Safety Council........................................................................................................................... Cost of Living Price Index, 1948-1953............................................................................................................ The “Let Your Hair Down” Column................................................................................................................ Official Sources................................................. 314 W. M. Simmons................................................... 315 J. J. Ortigas..................................................... 316 R. A. Callahan............................................... 316 J. F. Cotton..................................................... 317 A. Varias.......................................................... 317 J. J. Carlos....................................................... 317 Bureau of .the Census and Statistics 318 L. R. Wentholt.............................................. 318 B. B. Tunold.................................................... 318 J. B. Ltbunao................................................... 319 P. de Ocampo..................... .............................. 320 H. A. Brimo....................................................... 321 Bureau-of Mines.......................................... 322 Bureau of Mines....................................... 323 E. F. Underwood.............................................. 325 H. R. Hick........................................................ 327 S. Jamieson....................................................... 327 J. D. Conrad.................................................... 329 L. A. Pujalte................................................... 329 S. ScHMELKES................................................... 329 W. E. M. Saul................................................. 330 W. V. Saussotte............................................. 331 R. Janda............................................................. 332 F. S. Tenny....................................................... 334 Bureau of the Census and Statistics 335 ................................................................................. 336 50 CENTAVOS THE COPY FOR 50 YEARS. The Greatest Name in Motor OH! 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(At truce time, 2,350 square miles of former North Korean territory were left to the United Nations forces and 850 square miles, in the south-west, to the Communists, a gain of 1,500 square miles for the Allies.) Besides the foregoing provisions, a Neutral Nations Supervisory Commission (Sweden, Switzerland, Poland, Czechoslovakia) was to watch five Communist “ports of entry” and five United Nations mili tary centers; all prisoners-of-war desiring repatriation were to be return ed within 60 days, others to be placed under the custody of a Neutral Nations Repatriation Commission (India, Sweden, Switzerland, Poland, Czechoslovakia) for a period up to '120 days; and a political conference "of a higher level on both sides” was to be called within three months “for a peaceful settlement at a political level between both sides.” Among the questions to .be discussed would be the fate of the prisoners-of-war who refused to be repatriated, and if the con ference failed to agree on their disposition within 30 days, they would be transferred to civilian status and helped to go to “neutral nations.” The United Nations General Assembly will convene on August 17 to set the time and place for this political conference and will decide which nations, apart from the principal belligerents, will be invited to take part. All the world realizes that much depends on the coming political conference and that we are only in a period of truce and that peace is not yet. But it is also true that Com munist aggression in Korea has been repulsed, though at great cost, and that the Communist powers did not succeed in establishing their control over the whole of the east coast of Asia from Siberia to Indo-China, which was their aim. Instead, they suffered enormous losses,—Communist China chiefly in lives, Communist Russia in war materiel. It was more than three years ago, on June 27, 1950, that the Uniced Nations Security Council imposed the military sanctions against the Communist aggression in Korea which the United States took the lead in carrying out. President Truman issued his famous statement of that day which said in part: “. . .The attack upon Korea makes it plain beyond all doubt that Communism has passed beyond the use of subversion to conquer inde pendent nations and will now use armed invasion and war. It has defied the orders of the Security Council of the United Nations issued to preserve international peace and security. . . In these circumstances I have ordered the United States air and sea forces to give the Korean troops cover and support. . .” He then reviewed other steps he had immediately taken with respect to Formosa, the Philippines, Indo China, etc. American air and sea forces, it is to be stated parenthetically, went into action immediately; first contact between American ground forces and North Korean forces occurred a week or so later on July 5. The President ended with the statement: “A return to the rule of force in international affairs would have far-reaching effects. The United States will continue to uphold the rule of law.” The following day, in Manila, President Quirino declared: "The Philippines and the Far East are incalculably heartened by President Truman’s prompt decision to assist the Republic of South Korea and the threatened region in resisting the aggression of the Com munists from the North, The freedom, safety, and welfare of Asia and the whole world depend on this action. I am deeply gratified to learn of the acceleration of military assistance not only to our Government but to the area in general. Nothing could have reinforced better the Filipinos’ confidence [in being able] to contain communism............’’ This Journal stated editorially (July, 1950, issue): “President Truman’s forthright statement created a powerful impression throughout the world and was received with great relief and gratification in the communist-threatened countries in the Far East, including the Philippines.” The Journal took note of the fact that fear was being voiced that the United States “might be drawn into a pro longed and costly involvement”, and this proved to be the case. As to the possibility of a war with Russia itself, in stead of with one or more of its puppets, the Journal stated: “The forces now engaged and perhaps shortly to be engaged in Korea, will be at one place in the world where they would be needed in case of the outbreak of a general war, so that the United States forces, while being drawn into an involvement, would be far from unstrategically placed in such an event. In other words, while coping with a situa 303 tion in Korea, which it is to be hoped may be ‘contained’, the United States is simultaneously in a position to prepare for a greater war if it should become inevitable, and this is of most decided advantage.” Now, three years later, there is no doubt that despite the heavy cost of the fighting in Korea, American armed strength has greatly increased and the United States is far more ready for a general war than it was in 1950. While a war with Russia would have to be fought chiefly in Europe, and probably from bases in Europe, the Near East, and Africa, and the natural direction for a United-States-based attack on the Russian powerhouse is not from Japan nor from over Alaska, but across the North Atlantic, Greenland, and Iceland, attacks on Russia in Asia from Japan, other parts of the Far East (especially Okinawa), and Alaska, would, though secondary, still be of great importance, and forces in Korea serve to protect Japan and form a nucleus for continental invasion if this became necessary. As Time said, the truce “could be accepted, but not celebrated,” as it is not a victory. But it is undeniable that Communist aggression there was thrown back and that the United Nations, and chiefly American, forces occupy a very strategic position there. And, as everyone knows, the United States never employed its ultimate power. Atomic weapons were not resorted to. The United States adhered throughout, in spite of provocation, to a “limited objective.” Both militarily and diplomatically, this was probably the wisest course. The real enemy, self-elected, was always Communist Russia, but outright war, as distinct from the “cold war”, has been avoided by both sides, and probably for the best. While the “police-action” in Korea lasted a bitterly-long time, there were during this period two developments of great importance,—one, the Russian success in itself pro ducing some sort of atomic bomb, and the other the weak ening of Russia by the death of Stalin, the murderous struggle for power among his successors, and the recent extensive uprisings against Communist tyranny in the satellite countries. What the free world, and especially the United States, must consider now is whether this is not the time to force a settlement with Communist Russia which would end the threat of a universal atomic holocaust by such a system of international inspection and control as the United States Government proposed long ago even when it still held a monopoly in the production of atomic weapons. The coming political conference supposedly would concern only the settlement of the Korean issue, although efforts are already being made to broaden its agenda to include the admission of Communist China into the United Nations organization as a part of the price of “peace”. But this would be no peace. Admission of Red China would only increase the strength of the recalcitrant and subversive elements in the world organization, those ele ments which are actively hostile to the very aim and pur pose of the organization of which they ostensibly are mem bers. If the present Russian Government can not forcibly be made to adhere sincerely to that aim and purpose, then the objective of the free world should be to so curtail its power that it does not remain a universal menace. The aim of the political conference should simply be to convert the truce in Korea to a peace, but if the agenda of the conference is broadened at all, the basic aim should be to end all possibility of aggression everywhere. One of the resolutions introduced during the Filipino businessmen’s convention held in connection with the 50th anniversary of the Chamber of Messrs. Lansang Commerce of the Philippines last and Puyat on month, calling for the “nationaliza“Nationalization” tion”,* that is, the “Filipinization”, of Philippine trade, was finally adopt ed, though vigorously opposed by a number of men present, especially so by Mr. Amado D. Lansang, a member of the board of directors and secretary-treasurer of the Peter Paul Philippines Corporation, well-known coconut-product manufacturers. Mr. Lansang, a Filipino, is fifty years old and has had considerable business experience, having been connected with the sugar industry before he joined Peter Paul. As the newspapers carried only condensed reports of the discussion, we sent Mr. Lansang a short letter asking him whether he had any notes on what he had said which we could use for reference, and he sent us a reply which we are pleased we have his permission to print. His statement appears to us to be unanswerable. “In reply to your letter of July 20, I regret to say that I had no prepared material nor notes when I participated in the ‘trade national ization’discussion at the recent Philippine Chamber of Commerce con vention. During the discussion I merely sought to express my views on the resolution proposing to nationalize, by legislation, the retail trade in the Philippines. My stand was based on the following points: “(1) Retail trade, or any other field of business in the Philippines, cannot be forcibly, by legislation or any other artificial means, national ized or taken over by Filipino businessmen as this would be both un economic and unpolitical. It would be uneconomic because to place the retail business in Filipino .hands, by any other method except through the established principles of fair competition, would be placing a premium on inefficient management and conduct of business which, I believe, is not conducive to sound business development. “It would be unpolitical because in the existing relationships among the nations, at least in the democratic bloc, such a move would be violative of the principles and purposes of the United Nations. It would also constitute an unfriendly act, not to say an act of provocation, to friendly nations whose nationals would be directly or indirectly affected by the legislation contemplated in the resolution. In the light of the international situation today, the Filipino people should not be the first to commit any overt act that would be interpreted as destruc tive of painfully built international cooperation and comity. “(2) The active participation of aliens in our retail trade and other fields of business does not necessarily work against the larger interests of the Filipino people. On the contrary, at this stage of our economic development, the training, skill, and experience of friendly aliens in business have proved, and are proving, to be of tremendous practical value to the Philippines. At any rate there are other means by which Filipino businessmen can be assisted in their efforts to strengthen their competitive position in local trade. “(3) There are numerous aliens who, while not citizens of the Republic, have made the Philippines their permanent residence, many of whom have married Filipinos and have raised Filipino families. Any move to nationalize the retail trade would naturally affect not only these aliens but also their Filipino families. “(4) Because of the artificial character of the proposal to achieve nationalization, by legislation, I also expressed the fear that such a step would work against the interest of the Filipino consuming public, especially the laboring class. My observation during the war years and shortly after liberation, when the retail trade was practically in Filipino hands, was that the situation did not work to the advantage of the buying public. “The above points were the basis of my opposition to the resolu tion on trade nationalization at the recent convention of the Philippine Chamber of Commerce. Frankly, I was surprised how my position, which I thought any right-thinking businessman would take on the issue, has been given so much publicity in the papers. It would appear that, without intending it, I had gotten involved in a big controversy. “Thanking you for your kind letter and hoping that this letter can be of use to you in the way of clarifying my position on the matter under consideration, I am, very truly yours, etc.” THE essential force behind this power (of the free world not only to defeat what is evil but also to create what is good) is the unity of the free world; and one essential basis for that unity, in turn, is economic health nourished by mutually beneficial trade.”—President Eisenhower. 304 August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 305 camalaniugan * •. CAUAYAN DAGUPAN International Harvester TUGUEGARAO powers saw mills! CABANATUAN SAN FERNANDO. General offices • Dealers BATANGAS I INTERNATIONAL power units provide the dependable power that has helped make lumber one of the leading exports of the Philippines! Year after year, thousands of giant trees are run through saw mills, powered by International Harvester Units. This is a vital contribution to the lumber needs of the world as well as to the Philippines! International Harvester is proud ? of its part in the expansion of the many Philippine industries... that bring greater economic prosperity to the country. It is clear from Mr. Lansang’s statement that he is not opposed to Filipino businessmen gaining a stronger position in the trade of the country, but only to attempting to bring this about through legislation. One influential member of the Upper House, Senator Gil J. Puyat, him self a leading businessman, recently expressed a somewhat similar view in a statement reported by the Manila Daily Bulletin as follows: "Senator Puyat advocated ‘economic nationalism’ calculated to give control of the country’s trade to Filipinos, not by harrassing or persecuting alien traders but by offering incentives to Filipino business men to encourage them to invest more capital and enter more fields of business endeavor.” That, it hardly needs saying, is a wise policy. Harrassment of established business, no matter whose the owner ship, is purely destructive. It does not add to, but sub tracts from the national wealth and the general prosperity; there never can be even a full substitution for what has been thus driven out, for it is not mere property which is destroyed, but functioning organization; the national economy is not merely the poorer, but also the weaker. When the Filipino businessmen bring more capital into productive enterprise of their own, there is addition and not subtraction; production and trade are increased rather than diminished; more rather than less business is done; instead of destruction, there is development. Restored would be the sense of security, confidence, and hope. Instead of a general hedging, there would be the forward look. Goodwill, civic morale, public spirit, loyalty would return. Out of good faith, unity and cooperation would be reborn. Then we could rightfully speak of “total economic mobilization.” Philippine Roads and the Highway Act of 1953 ‘ Public Works officials and others interested in better roads are pleased with the recent enactment of the Philip pine Highway Act of 1953 (Re public Act No. 917), although they state that it would have been a better piece of legislation if there had been fewer amendments to the original House Bill No. 3199. However, it is still considered “a good bill.” One important feature of the Act is that it sets up the Highway Special Fund more definitely than in the past by prescribing that all of the proceeds of the tax on motor fuel all motor license fees must be deposited in it; the Act further provides for uniform quarterly releases from this Fund—which will permit work to go on the year around. The Highway Division of the Bureau of Public Works is also established more definitely as a continuously functioning entity. Formerly, it was dependent on special annual appropriations; under the Act, the Highway Division is authorized to spend up to 3% of the Fund for administrative expenses. The Highway Special Fund is set aside exclusively for the maintenance, reconstruction, improvement, and, where practicable, for the construction of national, pro vincial, and municipal roads and bridges; and the said funds shall be expended only upon projects to be de signated by the Secretary of Public Works and Commu nications. Commenting on the Act, the Philippine Better Roads Association, Inc. stated in a recent issue of its publication, Highway Report: “In other words... no more borrowing from the special funds... is possible under this Act... Another special merit of the Act is that it provides for a more equitable distribution of the Highway User’s Fund (Gasoline and Other Motor Fuel Tax, Act 466, and Motor Vehicle Registration Fees, Act 3992) for the benefit of the undeveloped or less developed regions. It makes definite allocations for the improvement of existing roads, and, where possible, the construction of new ones, and promises the construction of permanent bridges to replace tem porary timber structures which are expensive to maintain and at best are still traffic hazards. It sets definite amounts for the purchase of highway equipment which is very badly needed... It provides definite ready sums to meet emergency requirements as in the case of typhoons, floods... It formulates a definite policy on the determination of main and secondary traffic routes and a control on the establishment of national aid to provincial and city road-systems. It provides checks in the use or expenditure of the heretofore* unaccounted for shares allocated to municipalities...” With reference to the present state of Philippine high ways, this Journal recently received an interesting and informative memorandum from an American who regularly does considerable traveling throughout the Philippines but who, himself, has otherwise nothing to do with Philip pine highways or public works. The memorandum ran as follows: “Those roads which were paved main highways before the War, such as the Manila North Road from Manila to Laoag, the Cagayan Valley Road to San Jose, Nueva Ecija, etc. are in generally good condi tion now. The U. S. Public Roads Administration, Philippine Division, concentrated its efforts in the Manila area and on such main roads. Other roads, while passable, have not been properly maintained since 1941. Bridges have been replaced, and, in many cases, thanks to the use of Bailey spans taken from crossings replaced by the U.S.P.R.A. under the Rehabilitation Act, provincial bridges now have a better carrying-capacity than before the war. Surfacing, however, has in most cases badly deteriorated, due both to neglect and the fact that traffic is today much heavier in weight and greater in volume than before the War. The pre-war roads were not designed for big trucks. Army 6 by 6*s and still bigger trucks not only damage these roads, but also, since with their 4-wheel drives they are able to plow through mud and holes, have lessened the demand for adequate repairs. Most water bound macadam roads are now worn down to the original base-course of cobble-stones. The traffic tries to avoid this by pulling off to the side, and this creates series of ruts which in rain render the roads impassable for 2-wheel drive cars. • “Pre-war road maintenance was by hand-labor, brooms being used to push the gravel back into the grooves worn by the traffic. The post war traffic makes this system obsolete, and the present minimum wage makes it expensive as well. One big truck can undo the work of a gang of camineros in two or three trips. But the trouble is that these roads were designed for such hand-maintenance. The U. S. Army, in 1945, tried to maintain them with mechanical equipment, but it is not pos sible to scrape the foundation stones of a road smooth. There has to be a new top surface of gravel to start with. And, generally, the roads need to be widened, too. Such reconstruction .is initially expensive, but it is the only real solution for long-term use. U.S.P.R.A., now integrated with the MSA, has carried out several successful experiments of this nature, notably in Davao Province. This is the kind of work to be done on the Cagayan Road. “What is the cost to transportation operators of the present road conditions? It must be tremendous. Much of this cost is in spare parts, new vehicles, tires, and fuel, all of which costs U. S. dollars to replace. There is a considerable safety-hazard, too, in a variety of ways,— vehicles trying to pass each other on too narrow a road, steering-parts worn out prematurely, etc. “Notes on a number of specific roads: “In Mindanao, the Sayre Highway (Mindanao No. 3) is almost impassable from Kabakan to the Bukidnon boundary; no regular bus lines now use it because of its condition. The Malabang-Ganassi section of Mindanao No. 1, in Lanao, is like a dry river-bed. Yet these are the only existing north-south roads in Mindanao. “The Cebu North Road is smooth concrete in one section, then a series of pot-holes. “On Negros, the Dumaguete-Bacolod Road is fine at both ends, but in between lie several hundred kilometers of spring-breaking rocks. “This same thing can be said of all the roads on Panay except the few kilometers of paving which radiate out from Iloilo City. “The Cagayan Valley Road is being repaired, particularly in Nueva Vizcaya. The Nueva Ecija section, from San Jose to Balete Pass, was so rough that it was 10 to 1 that the road would stop a ve hicle before the Huks did. “The Tagudin-Bontoc Road (“Highway” No. 4) is impassable beyond Cervantes because of the lack of a bridge or a ferry across the Abra River; there is good axle-breaking country east of Cervantes. “The Baguio-Bontok Road is used by many heavy trucks hauling lumber and copper ore; it is passable, but so rough that all habitual users carry along a spare set of springs and have their steering-parts checked every few months. “The Bontoc-Lubuagan-Tabuk-Tuguegarao Road (northern part of No. 11) is not rough, but is very narrow; there were two bad accidents during the past year; if the road were in good condition, it would permit Tabuk farmers to sell their rice and com at good prices in Baguio. 306 August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 307 ng • • • New, Lower Electric Rates for General Service Customers Effective August 1, 1953 ¥ LET US figure out.................................. YOUR MONTHLY SAVINGS! Amount of Bill Under New Rate Savings Over the Old Rate KWH X-l X-2 X-3 X-4 X-l X-2 X-3 X-4 50 7.50 7.50 7.50 7.50 2.50 2.50 2.50 2.50 90 13.50 13.50 13.50 13.50 4.50 4.50 4.50 4.50 110 15.50 16.50 16.50 16.50 4.50 3.50 5.50 5.50 160 20.50 21.50 24.00 24.00 4.50 3.50 8.00 8.00 200 24.50 25.50 30.00 30.00 4.50 3.50 6.00 10.00 240 26.50 29.50 36.00 36.00 6.50 3.50 4.00 12.00 350 32.00 40.50 47.00 52.50 12.00 3.50 4.00 17.50 500 39.50 48.00 62.00 75.00 12.00 3.50 4.00 10.00 1,000 64.50 73.00 92.00 125.00 12.00 3.50 4.00 10.00 1,250 77.00 85.50 104.50 137.50 12.00 3.50 4.00 22.50 General Service Customers ... Under the old rate YOU would have paid a greater amount of money for the samp amount of Electricity. But, NOW, Your Electric Peso buys more Kilowatt-Hours of Electric Service than ever before! REDDY KILOWATT MANILA ELECTRIC COMPANY 134 San Marcelino, Manila Tel. 3-24-21 “To get a good idea of what most provincial roads are like, examine the Fort McKinley-Taguig Road in Rizal.” Our correspondent closed his memorandum with the statement: “Remarkable work has been done to restore the Philippine high way system to usefulness, but a long way must be traversed before the roads are back to pre-war standards, except in certain favored in stances.” Let us hope that the Philippine Highway Act of 1953 will help to bring this about. The Coming 8th Pacific Science Congress and the 4th Far Eastern Prehistoric Congress More publicity than the matter has so far received will no doubt soon be given to the forthcoming Eighth Pacific Science Congress of the Pacific Science Associa tion and the Fourth Far Eastern Prehistoric Congress which will hold sessions jointly in Quezon City and Manila (with some meetings in Los Banos and Baguio) from November 16 to 28 of this year. Between three and four hundred scientists from all over the world are expected to attend, making this the largest international meeting ever held in the Philippines. The congresses will be held under the auspices of the Re public of the Philippines and the National Research Council of the Philippines. Congresses of the Pacific Science Association have been held in previous years in Hawaii (1920), Australia (1923), Japan (1926), Java (1929), Canada (1933), the United States (1939), and New Zealand (1949). By au thority of the late President Quezon, the Philippine dele gation to the Sixth Congress, held at Berkeley and Stanford, and in San Francisco, presented an invitation to hold the Seventh Congress in Manila in 1943. The invitation was unanimously accepted, but the war forced a postponement of the Seventh Congress to 1949 and it was held in Auck land and Christchurch, New Zealand, because Manila had not yet sufficiently recovered from the war. On this oc casion, however, the Philippine delegation, by authority of President Quirino, extended an invitation to hold the Eighth Congress here. The Far Eastern Prehistoric Congress was tentatively organized during the Fourth Pacific Science Congress held in Java in 1929. The first formal Congress was held in Hanoi in 1932, the Second in Manila in 1935, and the Third in Singapore in 1938. It had been hoped to hold the Fourth Congress in Hongkong in 1941, but this was prevented by the war, and it was recently decided to hold it jointly with the other, and parent, Congress in Manila. The sciences and fields of research represented will include geology and geophysics, oceanography, meteoro logy, botany, zoology, anthropology, archeology, pre history, various social sciences, soil science, agriculture, forestry, public health, nutrition, etc. There will be delegates from many famous universities, scientific institutes, learned societies, museums, etc. from all parts of the world. Never before will Manila have been host to an aggre gation of such intellectual power in command of so much knowledge. Jf only there were some effective way of hold ing and applying all this to our national problems! Government Planning Commissions A revealing light was thrown on the subject of govern ment planning by the writer of an article on atomic energy in the June issue of Fortune. Refer ring to the present worrying of some government planners over the pos sibilities of the production of com mercial power from nuclear fission, he said: “Imagine if you can that the 18th century age of Newcomen and Watt had has as much historical consciousness and scientific imagina tion as our own,—and then imagine the problems that would have confronted His Majesty’s Royal Commission on the Expansive Qua lities of Steam after the British Government had set it up, first pro claiming that steam-producing materials must be a monopoly of the Crown. Might steam drive His, Majesty’s ships? Could steam be linked to electro magnetism in some way? Might this affect land trans portation and manufacturing? What about steam and balloons? Could something other than coal or wood be burned to produce steam? “The only sure outcome of such arrangements would have been chaos, and it is deeply to the credit of the men charged with the job of charting and overseeing the future of nuclear fission in the United States that they have kept so well clear of chaos. But they have been pulled and hauled in many directions...” The drawing of this historical analogy was wise as well as witty. Commissions have their place in government, but they should not be given exclusive powers. Planning is necessary, but to entrust it, in any given case, exclusively to any small group of men, is to commit the absurdity of using only a few brains when tens of thousands of brains could be employed on the problems presented. It is a great mistake to think that individual enterprise is plan less. Planning goes on constantly on a tremendous scale and it is naturally constantly corrected and correlated. The word totalitarianism is used for a system under which the government assumes a totality of functions and powers, but actually such a system is not totalitarian in the sense that the total intelligence and energies of the people are actively functioning; that happens only under a system of free individual competitive enterprise. A better word for “totalitarianism” might be fractionalism as only a fraction of the total intelligence and energy is given scope to function. The following letter, addressed to the editor, from Attorney Allison D. American Funds and Credits “Sequestered” by the Japanese Gibbs, will be of interest to many Journal readers; the decision re ferred to, a copy of which was inclosed with the letter, runs to 13 typewritten pages and is too long to be reprinted here. “Enclosed is a copy of the decision of the Philippine Office, Office of Alien Property, U. S. Department of Justice, dated June 29, 1953, finally adjudicating the claims of Max Blouse, J. L. Klar, and Everett Steamship Corporation. “This decision denies the claims of the bank depositors filed with the Philippine Alien Property Administration against the Bank of Taiwan and the Imperial Japanese Government, for the recovery of bank deposits and other credits ‘sequestered’ by the Japanese during their occupation of the Philippines. “The decision follows the Philippine Supreme Court doctrine in the Haw Pia decision relieving the Banks and other pre-war debtors of liability to Americans whose credits had been ‘sequestered’ by the Japanese. Fortunately the U. S. Department of Justice, in its decision, found: “ ‘Insofar as the claims are asserted against the Imperial Japanese Government, it is beyond dispute that they constitute war claims since they arose from and are deemed chargeable to the conduct of Japan as a belligerent in the last war.’ “To this extent the decision supports the recommendation to the U. S. Congress by the U. S. War Claims Commission of Washington, D.C., a copy of which I sent you on March 12, 1953. This is the silver lining to the otherwise dark picture. I reiterate my recommendation that every effort should be made by the American claimants to prevail upon their respective U. S. Congressmen to indorse the War Claims Commission’s recommendations, particularly now that the U. S. De partment of Justice has endorsed the same.” “...TN pursuit of this great objective of encouraging Individual Initiative, | we have taken a series of major economic decisions. To free our economy from the bonds that denatured healthy and necessary com petition, we abolished a labyrinth of needless controls. . .All these actions . .. are not mere gestures In honor of preconceived economic dogmas. They reflect our awareness of the mighty productive power of Individual enter prise to which America Itself Is history’s greatest testimony.’’—President Eisenhower. 308 The Halsema Mountain Road Formerly the Mountain Trail NOTE > held impressive necrological seri, on the occasion of the transfer n the site cf the Notre Dame Hos that city by the American Liberawished to erect an impressive rightfully be called the "father an be traced to the tireless Halsema. But the Halsema such a monument. ork of roads that lead to it as the series of power-plants of the City, of these improvements, but his consuming ad or the now tourist-attracting sentimental attachment. He was Trail in 1930 and through him jy to widen the trail and convert a Mountains that it is today. This ctors in (the progress of the Mountain development of the pine-timber reines, and the growing gold mines in is assignment to Baguio,as District which with four others of lesser imi has seen service in other assign will also be remembered in Cebu on with the Osmena waterworks, of his life, but practically all the ppines. Engineer.Halsema typifies today are still assisting in the ecothe hearts and in the O MORENO Romblon (Sgd.) DENNIS MOLINTAS Congressman, 2nd Dist., Mountain Province [Congressman Moreno was Assistant to the District Engineer of Benguet, 193338, and District Engineer of Bataan, 1941-42; Congressman Molintas was Com manding Officer, 66th Infantry (guerrilla), 1942-45, and Governor of the Mountain REPUBLIC ACT NO. 1662 AN ACT TO NAME "HALSEMA MOUNTAIN ROAD” THE NATIONAL HIGHWAY FROM BAGUIO TO BONTOC, MOUNTAIN PROVINCE ‘ SECTION 1. The national highway from Baguio to Bontoc, Mountain Prov ince, is named “Htalsema Mountain Road”. SEC. 2. This act shall take effect upon its approval. Approved, June 20, 1953. THE Halsema Mountain Road is the story of the high way that “couldn’t be built,” and of people who were so stubborn they didn’t believe the experts. Like any rugged area, the Mountain Province main tained its’diversity for lack of adequate communications. In olden days there were war trails like the one over Mount Polis used by Ifugaos and Bontocs on forays against each other and trade trails by which the mountaineers reached the lowlands to exchange their gold and coffee and honey for cotton, salt, and a few other commodities. The Spanish improved some of these trails and built a few others in order to facilitate the movement of their soldiers between the widely scattered garrisons in the mountains and the forts and settlements on the Ilocos coast and the Cagayan Valley. There is even the story of the 19th century governor of Benguet who, pining for the amenities of Manila, laid out a circuit in the Trinidad Valley over which he and his dame solemnly took a drive each afternoon in a carriage which had been brought up the Naguilian Trail on men’s shoulders in disassembled form. But the Spanish built no other roads in the mountains. The Americans also needed communications, but such were their relations with many of the mountain people that emphasis quickly shifted from military to economic needs. By August 1, 1908, the Governor of Benguet, William F. Pack, reported to the Governor-General in Manila: “There are now trails over which one on horseback may reach all the barrios in the province. They are not on any uniform grade, but are fair mountain trails easily traveled and satisfactory for the purpose for which constructed. This is a mountainous province, and it has taken 6 years to make these barrios accessible to even this extent. This having been accomplished, it seemed desirable and feasible in the further construction of trails to lay them out on a low and uniform grade [that of a 5% maximum being decided upon], so that if demanded they could be widened into wagon roads and no labor be lost. With this end in view, there has been constructed this year 40 miles of new trail of not to exceed a 5% grade. Nearly 30 miles of such trail has been made from Baguio over the mountain ridge toward Suyok in Le panto.” This was the beginning of the route now known as the Halsema Mountain Road, formerly the Mountain Trail. Governor Pack rushed work, despite expensive rock-blasting operations, to make the trail passable for ponies by 1909, while the authorities of the old province of Lepanto-Bontoc pushed it from the north. American engineers had learned a great lesson from the ill-fated original Benguet road and Abra Gap road, both of which had been smashed by flood waters of a height and fury quite unbelievable to the uninitiated. This trail deliberately avoided all rivers and clung to the highest possible terrain to avoid high water and expensive bridges. Wrote Pack of the early route: “This trail reaches an altitude of 7,000 feet, cuts through high cliffs, over dizzy precipices, and through a beautiful oak forest above the pines. Its importance will he the connecting of the mining district of the two provinces by a practical trail, which may be widened a little each year until it reaches the dimensions of a wagon road. The survey for such a road will at least be on the ground.” Over the years, the Mountain Trail formed a tenuous life-line to connect northern Benguet with Baguio. Rest houses famous for their good food were maintained by the Government at intervals calculated to be an easy day’s horseback ride apart. The cooks at Camp 30, 57, and 82 vied for the title of best biscuit-maker. Now and then a superb horseman racing on a vital errand would make most of the circuit in a single day, as Col. Henry Knauber of the Constabulary did when a child fell ill in Baguio when he was on an inspection trip to Loo. But for most people the trail was a long journey. Governor1 General Francis Burton Harrison established the Mount Data Lodge during his incumbency as a se cluded retreat off the main trail. A few hardy tourists made the horseback journey to Bontoc. Government officials and Constabularymen made their rounds. Towns people from Benguet went to Baguio occasionally on vital errands. Every July 4, delegations came from the Benguet municipalities on their ponies to take part in the Baguio parade. But it was not until E. J. Halsema came to Baguio at the end of 1919 as Mayor, City Engineer, and District Engineer of Benguet, that the dream of Pack and other Mountain Province pioneers of a road available to wheeled vehicles began to be translated into reality. A road had been built to La Trinidad in 1909 and small extensions had been made to this in subsequent years, but in 1921 the all-weather highway extended only a short distance beyond what is now Camp Holmes. Be yond this was a system of well-constructed and maintained horse trails which led to the principal settlements in Ben guet. The Mountain Trail connected Baguio to Bontoc via Lepanto. It was strictly a trail. An examination of proposed highways and of the annual reports of the Bureau of Public Works in the period Editor’s Note:—It is a pleasure to give space to the short text of Republic Act No. 1662, recently signed by the Pres ident, and to the Explanatory Note that accompanied the original Bill (H. B. No. 1662), through which the Philip pine Government paid deserved tribute to an able and devoted American, the late Mayor E. J. Halsema, of Ba guio, who spent a lifetime in the Philippine Government service. The article on the Halsema Mountain Road and the appended article on Mayor Halsema himself, first appeared in the Baguio Courier. 309 before 1930, shows no indication that a Baguio-Bontoc motor road was ever authorized. And thereby hangs a tale. Headquarters engineering opinion was virtually una nimous that a Baguio-Bontoc road via Mount Data was an impossibility. “Why, that cliff at Data would bankrupt the Philippine Government,” the experts said, recalling that even the hewing of a narrow ledge for a horse trail on steep grades to the Lodge had been an expensive and dangerous process. And there was a division of opinion as to the worth and need of such a highway, even if it were possible. Skeptics recalled the furor attending the millions of pesos spent building the Kennon Road to Baguio as a “waste of public funds.” But Halsema was a determined man of Dutch origin and he was backed by stubborn mountain people who knew both that the road was needed and that it could be built. The experts hadn’t reckoned on the courage and strength of the people of the mountains. If funds were not appropriated, a road not authorized, one could be built nonetheless. It took time. There was a little money and complete authority for “maintenance and widening of trails.” This point could be stretched a bit. If improvements to authorized roads could be ac complished more efficiently, a little extra money would be available. And people of the Mountain Province, never losing their community spirit, were willing to work for nothing a few days a year, tools and direction being pro vided, if it meant they would soon get an outlet to the world outside. Later, when Halsema’s close friend, Roque Peredo, became District Engineer at Bontoc, “maintenance and widening” began from the northern end of the trail as well. Each year a few more kilometers were added. - By 1926 the first vehicle, a Ford Model T, reached Haight’s Place. By 1929 the usually astute Henry L. Stimson, then Gover nor-General, could be taken as far as Abatan (kilometer 90), where he complained that “the road was fine for tou rists, but would never be of any practical commercial value to the 'local population.” A youth from Kapangan proved him wrong. In 1930, when the terrible Mount Data cliff at last had been con quered and the road connected Baguio to Bontoc directly for the first time, a “PU” car piloted by Bado Dangwa was right behind the officialjparty. Dangwa, now Governor of the Mountain Province, was carrying the first of hundreds of thousands of native passengers over the road. The Mountain Trail was a narrow, dangerous, one way track in 1930—but it was passable for motor vehicles. Halsema’s theory was that once a route had been opened and its value demonstrated, it would never be allowed to be closed. And once the toad was opened, appropriations became available for maintenance and improvement. Although the Bontoc-Tagudin road, 125 kilometers long, had been opened for light vehicles in March, 1926, it did not directly connect Benguet with the rest of the Mountain Province. The Mountain Trail became a central com munications link, binding the once separate peoples to gether. Many young Filipino engineers just out of the Uni versity got their first practical lessons in engineering tech nique on the Mountain Trail under the tutelage of Halsema and his veteran road foremen. Gradually the road was widened and gates eliminated one by one. The SuyocLepanto mining district developed along with other mines to the south. Sawmills were established. Villages grew up along a once uninhabited road. Hundreds of Benguet people supplemented their income with proceeds from vegetables they sent to Baguio on “the Dangwa.” During World War II, the Mountain Trail proved of great military importance. Twice the Mount Data cliff section was blasted as the Fil-American forces, and then the Japanese, sought to block their opponents. Some of the heaviest artillery barrages of the war took place around Abatan. When the war ended in September, 1945, the Mountain Trail was lined with guerrillas and American infantry and artillery compressing the noose around Yamashita’s forces. Since 1945, the Baguie-Bontoc road has resumed its importance in the social and economic life of the Mountain Province. Increasingly heavy shipments of copper con centrates are made from the Lepanto mine. Two sawmills have been rebuilt and many “colorums” exist as well. Hillsides have been converted into vegetable farms. Rice is hauled in from Tabuk. Work has continued to improve the road itself, against heavy odds such as lack of adequate appropriations. MAYOR HALSEMA ■pusBBius Julius Halsema, for whom the Mountain " Trail has now been re-named, never thought when he gave a high school oration on the Philippines that he would spend most of the rest of his life here. He could have been paid no higher tribute than to have his major engineering work named in his honor. The Mountain Trail was the capstone in a career devoted to public service for the Philippines. Halsema was bom December 12, 1882, in the small Ohio community of New Bremen. His parents were Dutch Catholics who had come to America to avoid economic and religious difficulties in their native land. His father was a watchmaker and jeweler. With five children to support’on a small income, he could supply no luxuries. Young Halsema took many odd jobs to help, including winding the church clock and marching in torchlight poli tical parades. When Halsema graduated from high school at the turn of the century he chose the Philippines as the subject of his address, for no conscious reason except that the country was very much in the news at that time, having just been taken over by the United States. His mind was on how to get an education at the Ohio State University, for his family could not afford to support him there, and the requirements for a civil engineering degree made parttime work after classes difficult. Halsema chose a unique way. He went to college one year and worked the next in the town bank as assistant cashier, earning enough money to scrimp through the next year of engineering training. Some summers he worked as a surveyor on railroad- and road-construc tion projects in the Rocky Mountain states. In 1907 he received the precious degree making him a civil engineer. With a college friend he went to Los Angeles and set up shop as a real-estate dealer. But the 1907 depression was on and no one wanted to buy lots in Los Amgeles. The pair lived on doughnuts and coffee and hope. But hope grew dim. One day they saw an advertisement in an engineering journal stating that positions were available in the Bureau of Public Works of the Philippines for engineers who could qualify by examination. Both took it: only Halsema passed. The young engineer was assigned to Cebu as assistant district engineer. His principal work was in the construc tion of bridges. Then he was assigned to the building of the Osmena Waterworks for the city of Cebu. Here he solved a knotty problem of terrain by inventing the conical arch dam. The waterworks was inaugurated in the midst of a terrible cholera epidemic, bringing it to a swift halt. In 1912 he returned.to New Bremen to marry his school-time sweetheart, Marie Boesel, promising her they would stay in the Philippines only three years. She stayed 33. Halsema became District Engineer of Pampanga in 1914 and was responsible for the building of the main trunk highways of that province. His first child, a daughter 310 named Betty, was born while the Halsemas lived in San Fernando. Later he was assigned to Manila. When World Wajr I involved the United States, Halsema, together with mahy other Bureau of Public Works engineers, volunteered for service with the U.S. Army, in which he served during 1917'and 1918. His son Jim vjas bom in Ohio. As soon as he could receive his discharge, Halsema returned with his family to the Philippines and was assigned to the province of Zamboanga. After a few months work developing the Malangas coal fields, he developed such a virulent case of malaria that it was necessary to send him to Baguio for recuperation. Shortly afterward, his nomi nation by Governor-General F. B. Harrison to the post of Mayor was confirmed by the Philippines Senate. He was concurrently City Engineer and District Engineer. Baguio in 1919 had been a chartered city for a decade, but it was little more than a summer resort which settled down for a peaceful village life the remaining 10 months a year. For a time the Government had moved there in April and May, but it did so no longer. Its population was less than 5000. It was connected to the railroad at Damortis and Bauang by narrow gravel roads on which travel was controled by gates. A road trip to Manila involved 10 to 12 hours of dusty driving, with several unbridged rivers eri route. An ambitious arid imaginative city-developmdrit plan had been laid out years before by the cele brated American architect, Daniel Bumham, but there seemed little prospect it would be needed. Stores carried a very limited supply of staples. It was, in other words, a typical Far Eastern “hill station.” Backed by able and devoted assistants, and securing the support of Filipino and American officials in Manila, many of whom were long-time friends, Halsema set to work to make Baguio a modern city in the image of the Bumham Plan, lifting it with its own financial bootstraps. The key to his program was the city utilities system. Securing a loan of P40.000, Halsema bought a collec tion of second-hand equipment and built Baguio Hydro electric Plant Number One on the Kennon Road. The loan was quickly paid, and from that time on Baguio’s develop ment-program was financed from the profits of its utility system. At the same time, rates and service were respect ively among the lowest and best in the Philippines. Even tually four hydros were constructed and enough power was produced to enable the surplus to be sold to the Itogon Mining Company. The water system was enlarged and extended; a sewerage system built (but never finally com pleted to his plan); many kilometers of new roads were laid and others widened, straightened, and paved. The City Airport at Loakan was built in 1932, giving Baguio the first commercial aviation service in the Philippines. Meantime, as District Engineer of Benguet, Halsema launched a highway program which was to make Baguio the hub of a network of roads and thus create a new major marketing center in northern Luzon. The major achieve ment was the 151 km. Mountain Trail from Baguio to Bontoc, for which he was directly responsible for the stretch from near La Trinidad to Mount Data. This was built between 1922 and 1930, but improvements continued steadily after that date. The Kennon and Naguilian Roads were widened to two-way, asphalt paving was undertaken and, on the latter road, over 150 curves were elim inated. When he retired from the Philippine Government in 1937 after nearly 30 years of service, Mayor Halsema recalled that Bumham had planned a city of 25,000 people and that the city now existed exactly as he had foreseen. It was a thriving, prosperous commercial- and mining center, and the tourist business was increasingly important. Halsema became President of the Marsman Con struction Corporation in Manila, building the American High Commissioner’s Residence on Dewey Boulevard. In 1939, he returned to Baguio to stay. Baguio was his greatest pride. Every day he took a drive around its streets to see that all was well. When World War II reached the shores of the Philip pines, Halsema was called briefly back to action. He helped organize the Baguio air-raid spotting service which in a few days became an effective warning against the frequent bombing attacks. As the invaders approached the city and government services broke down, he took charge once iriore on orders of the U. S. Army and saw to it that essential utilities remained in operation and that law and order were maintained in the face of looters and saboteurs. The Japanese interned the entire Halsema family along with other Americans and Allied nationals at Brent School on December 27, 1941. In camp, Halsema devoted his energies to maintaining sanitation, wielding a broom and mop with the same missionary zeal he had had in demon strating the proper use of a shovel to an inefficient road laborer in earlier days. At Eastertide in 1943, Halsema and his wife were among a small group of old-timers allowed to go into house-internment in Baguio because of ill health. In those trying times he realized, if he had not before, how many friends he had among the native population. Failing in health, ousted from the cottage he had rented, Halsema entered Notre Dame Hospital at the beginning of 1945, and here, in the carpet bombings of March 15, he met his death in the holocaust that destroyed his city. His remains were exhumed from their temporary resting place below the hospital and re-interred in the Baguio Cemetery in March, 1947, during necrological ceremonies participated in by all elements of the Baguio community. Over his grave is a simple bronze plaque reading, “Baguio Is His Monument.” Philippine Economic Development* Ey Cornelio BalmaCeda Secretary of Commerce and Industry WE are gathered here once again in a national convention called by the Chamber of Commerce of the Philippines to deliberate on the problems of Filipino businessmen. This convention has been called to coincide with, and to commemorate in a fitting manner, the golden jubilee of the Chamber of Commerce of the Philippines. Fifty years ago, as this country was just beginning to settle down after the American occupation, a small group of Filipino businessmen in Manila came together and organized themselves into a Filipino chamber of commerce. They had in view as their objectives not only the promotion of the business and trade of this country and to secure for themselves the benefits of mutual assistance and cooperation, but also to organize the Filipino business elements into a united group that could make its voice heard and assert its influence in national affairs. As stated in its original charter of July 19, 1903, the purpose of the chamber was "to promote and develop, to protect and safeguard and to defend the interests of Filipino business.” That this Chamber has successfully lived through these last fifty years and is today even more active and still growing, is a clear evidence of the importance of its mission as conceived by its founders, and of the constant and unremitting efforts of those who have been connected with its administration and have helped in its different activities. I wish to extend on this occasion the warmest greetings and congratula tions of the Department of Commerce and Industry to the Chamber— to its officials, and to all its members and workers. If we examine the progress of Filipino business in the course of the last five decades, and especially during the post-war period after ♦Speech delivered at the opening session, July 17, of the Fifth National Con311 we achieved our national independence, we shall find a record of con stant growth that moved parallel with the progress of the country’s economic development. Through all the years we were wont to voice our exhortations to our nationals to awaken us from what was regarded as a general lethargy in business. We especially bewailed the lack of a reasonable participation of Filipinos in trade and commerce. This situation was most apparent at the close of the Spanish ad ministration and during the early years of the American regime. The highly restrictive and backward commercial policy that was enforced here during the entire period of the Spanish rule discouraged rather than fostered economic development, and such Filipino business enter prises as then existed were confined to limited farming, handicrafts, and small manufacturing establishments. So when the first Philippine census was taken in the year 1903, which was the same year in which the Chamber of Commerce of the Phil ippines was organized, it was found that there were relatively few in dustries in this country; the most important of them, outside of farm ing, were those dealing in food and kindred products, textiles, metal products, wood manufactures, leather goods, printing, liquors and beverages, chemicals, clay and stone products, and tobacco manufac tures. In these small businesses Filipino nationals were active parti cipants. After 1909 when free trade with the United States was decreed by the American Government, there was a tremendous increase in our agricultural production and foreign trade. As before, agriculture re mained almost entirely in Filipino hands. Our producers received a great incentive from the high prices enjoyed by our duty-free exports in the United States market. These exports of primary goods were the means used for the payment of heavy imports of manufactured consumer goods. But while production of these Philippine export crops was almost entirely in Filipino hands, and while the users and consumers of the big imports of foreign merchandise that followed were almost all Filipinos, the trade and distribution was handled principally by for eigners. Both the export and import trade and the domestic retail trade were mostly in the hands of aliens. In other words, the Filipino pro ducers sold their farm products to foreign exporters and traders and obtained their supplies of imported consumer goods mostly from foreign importers and alien retailers. This condition was not materially altered until the outbreak of the war. However the Filipino participation was on the increase. More and more Filipinos went into the merchandising field. At the end of 1938, according to the census of that year, the total assets of Filipinos engaged in commerce had increased more than ten times over those of 1903. In the Constitutional Convention and in the Legislature before the war, proposals were repeatedly made to nationalize the retail trade -in order to ban the foreigners and make it the exclusive right of Filipinos to engage in it arid remedy the age-old predominance of alien merchants. These proposals failed to pass, however, because of the realization of their adverse effects on our international relations. After the war, the steady increase of Filipino participation in the country’s trade has been maintained, as may be seen in the following census figures on the worth of the total business assets of Filipinos engaged in commerce: Year 1903. 1918. 1939. 1948. Value of total assets of Filipinos engaged P 18,571,610 .... 35,822,850 .... 203,598,865 .... 306,891,917 From May, 1945, to June 30, 1953, the records of the Securities and Exchange Commission reflect the constantly growing interest of Filipino businessmen in trading enterprises. The total amount of Fili pino paid-hip capital actually invested in new corporations and part nerships that were organized during the post-war period mentioned was P50,511,482.96. The share of Filipino investors in the capital investments of the new corporations registered was 62.2%, and in the new partnerships, 29.2%. Thus it can be stated that we are gradually forging ahead in our effort to improve the relative position of our nationals so that we shall handle the bigger portion of our domestic and foreign trade. This is a national movement that is animated, not by any anti-foreign spirit, but by the spirit of self-help and an economic awakening on the part of our people. Lest our efforts in this direction are misunderstood, it should be made clear that foreign capital and foreign businessmen are welcome to join us in our business development, particularly in the establish ment of new enterprises that will help to increase the national wealth. It has been said that there seems to be no way for our countrymen to win their place in our trade and commerce except through some legis lation that would give them special advantage or privilege. The handi caps and difficulties of the Filipino retailer in competing with alien retailers because of the latter’s long entrenched position, extensive experience, bigger capital, organization, and even the factor of lower living expenses, have often been advanced as reasons that would justify such protective legislation for Filipino retailers. The Government is aware of these problems and various measures have been adopted from time to time to extend Government assistance to Filipino retailers. The latest of these measures was the inclusion in the Import Control Law of a provision requiring all importers to reserve 50% of their imports for sale to bona fide Filipino distributors. This did not last long, however, as it ceased to operate upon the ex piration of the Import Control Law on June 30 last. Another was the organization by the Government before the war of the National Trad ing Corporation as a wholesale supplier of merchandise to Filipino retailers. The assets and function of this corporation have been trans ferred to the present PRISCO or Price Stabilization Corporation, which combines the functions of stabilizing prices of essential consumer goods and of giving assistance to Filipino traders to enable them to compete in the open market. The Bureau of Commerce and the Cooperatives Administration Office, both under the Department of Commerce, are also engaged in organizing the Filipino merchants into retailers’ cooperative associa tions to facilitate their getting assistance from the PRISCO and from other agencies of the Government. The biggest retailers’ group that they have so far organized is the Federation of Filipino Retailers’ As sociations in Manila, known as the UNIFIRCA, with a total member ship of the affiliated retailers’ groups numbering more than 3,000 Fili pino small merchants. After the discontinuance of the 50% import-sharing law, the PRISCO will continue giving to the UNIFIRCA and other Filipino retailers’ groups in the different provinces supplies of imported mer chandise as well as local products out of its dollar allocations. All of these forms of government assistance, however, no matter how much or how often they can be made available, can only help our retailers to a certain extent, but cannot be the main source of their strength and success. There is no substitute for self-help, and for busi ness ability and efficient service to customers. The movement that has been started to organize a wholesale corporation among Filipino retailers which will supply them with the stocks of merchandise that they most urgently need for their individual stores should be pushed ahead. The execution of this plan will be a new test of the ability of our Filipino merchants to cooperate and to pool their strength and resources in order to advance Filipino participation in business. Tn the manufacturing field the progress of Filipino business has been remarkable. Here more than half of the business is in Filipino hands. Tracing the progress back to the year 1903, we find from the census figures that the investments of Filipino citizens in manufac turing industries had considerably increased before the war and took a much speedier pace after the war. This can be gleaned from the worth of total assets of Filipino-owned industrial estblishments as shown below: Value of total assets of Filipino-owned Year manufacturing establishments 1903......................................................................... P5,952,742 1918........................................................................... 27,332,171 1939........................................................................... 197,322,234 1948........................................................................... 275,266,809 The post-war registrations of new corporations and partnerships in the Securities and Exchange Commission show that the paid-up capital of Filipino industrialists invested in the new corporations amounted to P25.513.072, and in the newly-formed partnerships, P7,638,997. The Filipino investments in the 463 new industrial cor porations registered from May, 1945, to June 30, 1953, was 60% of the total paid-up capital of all nationalities. Our Government has launched an industrialization program in which it performs the role of promoter, financier, and pioneer. Under this program, the Government not only undertakes some of the projects itself, but also gives encouragement and assistance to private enterprise in the forms of financial loans through the Reconstruction Finance Corporation and the Philippine National Bank, a Pl0,000,000 Industrial Guarantee and Loan Fund under the PHILCUSA, experimental or pilot plants, actual pioneering in new industries, tax exemption for new and necessary industries, and promotion of cottage industries. This government industrialization program forms a vital part of the general economic development or total economic mobilization program whose aim is to establish here a definite pattern of national economy based on diversified and increased production both in agri culture and in industry, a higher degree of self-sufficiency in foods and other prime necessities of life, greater earning power and a higher standard of living for the masses of the population, more employment opportunities within the country, rural development, and a strong, contented, and land-owning and working middle class. The most severe and systematic critics of this economic develop ment program of the Government have called it such unsympathetic, not to say deriding and sarcastic names as "grandiose”, “mere blue print”, or “ideas on paper”, criticisms which, however, cannot change the facts and realities on the actual implementation of the program which have earned the admiration of fair-minded people and the con structive support and encouragement of our businessmen. In the fulfillment of its role as industrial pioneer to blaze the trail for private enterprise, the Government has actually completed, among others, the setting up of the National Textile Mills under the National Development Company, the Ilocos Textile-Mills, the Cebu Portland Cement factory, a nail factory which has already been turned over by the NDC to private enterprise, the national shipyard at Mari312 veles, the first unit of the huge Maria Cristina hydro-electric power plant, a chemical fertilizer plant there, the paper mill in Negros Oriental jointly with private capital, and a steel plant in Iligan, Lanao. The Government is also actually undertaking the construction of the huge Pl00,000,000 Ambuklao hydro-electric plant for the island of Luzon, other smaller electric projects, quarrying and manufacture of marble and manufacture of kraft paper through the Cebu Portland Cement Company, another new cement factory, and the promotion and development of handicrafts and cottage industries in the provinces through the PRISCO which takes charge of training workers in the use of modem tools, looms, and equipment to improve the methods of production and of finding markets for what is produced by the barrio people and provincial workers. 'T'his is the government-end of the industrialization program. The greater part of it must find its implementation among private enterprise and private capital, and it is heartening to find the real constructive support of this program on the part of our businessmen and industrialists. As I have already stated, the investments in new industries since 1945 have kept on increasing. In fact, more capital has been invested in manufacturing by business corporations organized here during the last 8 years than in any other line of business, including real estate. The new industrial corporations recently put up by Filipino business men include the Marcelo Steel Corporation, Marcelo Tire and Rubber Corporation, Philippine Fiber Processing Company, Mayon Metal Windows, Rayon Corporation of the Philippines, Plywood In dustries, Inc., International Hardwood and Veneer Co., Philippine Wallboard, Philippine Buttoncraft, Philippine Electrical Manufac turing Company, Alto Pipe 8s Foundry, Inc., Morales Engineering Works, Gonzales Toy Factory, Marble Corporation of the Philippines, Maria Cristina Chemical Industries, and many others. The San Miguel Brewery, one of the oldest industrial establishments in the country, has also recently built new plants to manufacture corrugated carton, glass bottles, fluorescent tubes, and laboratory and domestic glassware and carton containers. A great aid and incentive offered by the Government to the estab lishment of new and essential industries is the giving of tax exemp tion for a period of 4 years which was recently extended by a new law passed by the last Congress to 10 years. No less than 170 firms and individual manufacturers have been given this tax-exemption privilege so far; of this number, 92 are Filipinos. These new industries manufacture a wide variety of articles that were formerly imported almost entirely, such as fertilizers, knitted cotton fabrics, glass, jute bags and burlaps, shoe-laces and eyelets, automobile and truck tires, soil pipes, steel windows, filing cabinets, nails, bolts and nuts, poultry feeds, fluorescent lamps, radio receivers and transmitters, toys, water-pumps, paper, enamel products, as bestos roofing, paints, tableware, aluminum kettles, sulphuric acid, and others. 'T'hese new Filipino industries, together with those owned by for-*■ eigners which have recently been established here, and those established by the Government itself, have opened a big era of indus trial development never before seen in the history of this country. With an aggregate capitalization running into many millions of pesos, big American firms have organized and capitalized Philippine domestic corporations to engage in the local manufacture of articles which these firms in the United States were formerly exporting to the Philippines. Among these are the Philippine Manufacturing Company, ColgatePalmolive Philippines, Inc., Sharp & Dohme (Phil.) Inc., E. R. Squibb & Sons Philippines Corp., U.S. Tobacco Corporation, National Lead Company (Philippines) Inc., Watts Selective Philippine Timber Co., Inc., American Contractors Corporation, Music Corporation of the Philippines, and Electric Arc Welding Supplies, Inc. The latest big American corporation to decide to come to the Philippines and organize a domestic corporation to manufacture its line of products here, is the Reynolds Metals Company, one of the biggest aluminum manufacturers in the world. Its plant, to be estab lished in Mindanao, will be capitalized at P6,000,000. It has been attracted to come here because of the great economic potential of this country and the progressive policies being followed in its economic development program. The government jhydro-electric power plant at Maria Cristina will supply the cheap power that the modem aluminum plant will need, this being thp most important requisite for this industry. This is an example of the way these gigantic electric-power plants being financed and constructed by the Government in Luzon and Mindanao will generate and expand a nation-wide industrial development. Already, other important industries that depend mainly on cheap electric power are being set up in the region of the Maria Cristina electric plant. Among these are new fertilizer and chemical industries. As the cheap power-supply will reach the homes of the poor and the rural sections, it will not only brighten the lives of the people with the use of the brilliant white thread of electricity that will replace the crude petroleum lamps, but production will be speeded up, as cheap electric power will gradually replace the slow human and animal power that are the only forms of energy now being used in most parts of the country. In this lies the reason for the great difference in prosperity and standard of living between the average communities in the highly developed industrial nations and in the poor and backward rural areas in the underdeveloped nations. We are right now introducing more efficient semi-mechanical looms, and other equipment and tools into the provinces and rural sections through the PRISCO and the Philippine Rural Reconstruc tion Movement to develop the home or cottage industries. If our native craft articles made of native fibers, bamboo, buri, abaca, and other materials, are to be successfully sold on a commercial scale in the world markets, and if they are to be developed into bigger sources of income for the people in the agricultural areas to supplement farming, the cost of production must be lowered, the products have to be better stan dardized, and the output of the workers must be considerably increased. This will require the use of cheap electric power. ■CcoNOMic development is not a simple process. It requires good planning and plenty of hard work. The Government has to set national plans and policies. It must have at its command adequate means to finance its part of the program of development. It must count with the support and cooperation of the people, particularly those who can lend a hand in the realization of the plans for development. Economic development is our chief concern today. This dawned clearly upon us the moment we obtained our independence. The plan ning was immediately and very conscientiously done under the leader ship of the first head of our Republic, President Roxas. Came succes sively the Joint Philippine-American Commission report, the BeysterNDC report, and the Westinghouse electric power-program report. The death of President Roxas cut short his planning work, but he had signed the Bell Trade Rehabilitation Agreement and gotten from the United States Government the Tydings War Damage Act. It fell on his successor, President Quirino, to finish the planning and to implement the Republic’s economic development program. In 1948, an economic program was adopted by the National Economic Council and the President, which was revised in 1950 in connection with the economic survey made by the Bell Mission sent here by Pre sident Truman at the request of President Quirino to help determine our rehabilitation needs. As a result of this survey, American aid in the amount of $250,000,000, to be spread over a 5-year period was secured. This P500,000,000 fund, increased by an equal amount of the Philippine counterpart fund, or Pl,000,000,000, increased by P200,000,000 more from the funds of the Central Bank, or a total of Pl,200,000,000, is the amount ear-marked for financing our present economic development program. So, today, we are actually undertaking the most extensive development and rehabilitation program that we have ever had. Every businessman has his share in the execution and realization of this definite program. We have seen that this program has long passed the blue-print state. It is now in the stage of active implementa tion both by the Government and by our bnaiffessmen. Important parts of the over-all program have even been,completed. Our Filipino businessmen who have given their active Support, and even foreign investors and business firms which have come and are coming here to participate in our development program, have shown their complete faith and confidence in the soundness of the economic program that has been launched and in the future of the Philippines. Our businessmen have every good reason ?o feel satisfied with the progress that has been made. Despite the varied difficulties that still remain as a result of both domestic and international factors that con tinue to retard the full progress of business everywhere, the Philippine scene is far better today than in many other parts of the world and our recovery since the war is regarded by observers as most remarkable. There are not lacking, of course, those who, for reasons of their own, either see no progress at all or consider the pace of our develop ment too slow. The latter need not give us any cause for concern, for any well-meant, constructive, and practical plan to help accelerate our progress should be regarded with respect and consideration. In a certain sense it is a good sign at times to feel discontented with our achieve ment, for it gives one the urge to do still better or do still more. Our Filipino businessmen will find it useful to keep finding more ways to strengthen their position in business and to make more ex tensive their contribution to the country’s program of economic deve lopment. To this end, I wish to offer the following observations: 1. Filipino risk capital actually invested is still small compared with the amount of available domestic capital that could be mobilized for economic development. 2. The most outstanding Filipino business enterprises that have been built successfully heretofore are mostly family businesses or “closed” corporations. We need bigger corporate business enterprises with Filipino capital. 3. Filipino businessmen should invest in the domestic corporations being established here by American firms. The P6,000,000 aluminum .corporation to be established here by the Reynolds Metals Company of the United States will sell shares up to nearly half of the capitaliza tion to Filipino investors. 4. Filipino retailers can organize their own cooperative wholesale business if they will practice more mutual trust and confidence and sin cere cooperation. When the first national convention of Filipino businessmen was called in 1929, the Chamber of Commerce adopted as the theme of the convention the slogan, “Organize and Mobilize for Our Country’s Sake.” This rallying cry of Filipino businessmen was true and timely then. It is still so today. 313 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources JULY 1 — According to a Malacanan press-release, President Elpidio Quirino reached Baltimore at 11:30 a.m. yesterday. Malacanan releases several proclamations signed by the President before his departure, including No. 400 declaring the period from July 13 to 19 of every year as Philippine Business Week; the 50th anniversary of the Chamber of Commerce of the Philippines falls on July 19 of this year. Executive Secretary Marciano Roque administers the oath of office to Under-Secretary of Labor Aurelio Quitoriano as Acting Com missioner of the National Employment Service. Acting Foreign Secretary .Felino Neri releases a note handed him today by American Ambassador R. A. Spruance in reply to the Philip pine proposal for the revision of the Trade Agreement (See this Journal, July issue.) July 2 — Secretary Neri discloses that prior to the President’s pardon of Japanese war criminals serving sentences in the Philippines and his commutation of the death sentences of others to life imprison ment, the Japanese Government accepted the judgment of the Inter national Military Tribunal for the Far East and other allied war-crimes courts and will carry out the sentences imposed by them upon Japanese nationals imprisoned in Japan; the power to grant clemency, reduce sentences, and parol war-prisoners may not be exercised by the Japan ese Government except upon the decision, on the recommendation of Japan, of the government or governments which imposed the sentences in each instance. July 3 — President Quirino, through Secretary Neri, and President Dwight D. Eisenhower, through Ambassador Spruance, exchange messages of felicitation on the occasion of the independence day cele brations of the Philippines and the United States tomorrow. Other nations also send their congratulations. By order of ExJebutive Secretary Roque, Dr. Leon Ma. Gonzalez resumes his former duties as Director of the Bureau of the Census and Statistics and Acting Director Alfredo G. Eugenio returns to his status as technical adviser to the President on engineering matters; Mr. Eu genio was assignedotaa-the Bureau in April, 1950, following charges brought against Director Gonzalez by Assistant Director Manuel Buenafe and countercharges against Buenafe by Gonzales, wljich charges were subsequently withdrawn. Malacanan- releases the names of 437 prisoners granted executive clemency by the President on the occasion of the 7th anniversary of the Philippine Republic, of whom 114 are Japanese and the rest Fili pinos convicted by the .Peoples Court and other courts of treason and other offenses involving collaboration with the enemy during the war; of the 114 Japanese war-prisoners, 31 had been sentenced to life im prisonment and 27 others to various terms, these 58 being pardoned on condition they leave the Philippines never to return; the remaining 56 Japanese prisoners had been condemned to death and their sentences were commuted to life imprisonment to be served in Japan. July 4 — Vice-President Fernando Lopez represents President Quirino at the 4th of July celebrations held on the Luneta; Speaker Eugenio Perez delivers the address. July 6—President Quirino states in Baltimore: "I have extended pardon to Japanese war-prisoners serving terms in the Phil ippines, not an amnesty which requires concurrence of the Philippine Congress. I should be the last one to pardon them as the Japanese killed my wife and three children and five other members of my family. I am doing this because I do not want my children and my people to inherit from me the hate for people who might yet be our friends for the permanent interest of our country. After all, destiny has made us neighbors.” The Philippine Government formally turns over the custody of 114 Japanese war-prisoners to representatives of the Japanese Govern ment in ceremonies held in the Office of Foreign Affairs. The Hakusan Maru, due at Manila on or before the 15th will take the prisoners to Japan. Secretary Neri tells the press that the; Cabinet tomorrow will take up a request from the Japanese Government that it be permitted to have sent back to Japan the remains of Japanese war criminals exe cuted in the Philippines; it is stated that 84 were executed here, 67 for war-crimes against the United States and 17 against the Philippines. Executive Secretary Roque releases P465.000 for the construc tion, improvement, and maintenance of roads mostly in Davao and Bukidnon; also Pl70,000 for additional expenses in the maintenance and repair of piers and wharfs and the dredging of ports, chiefly in Manila. July 7 — Announced that President Quirino has set up an exe cutive office in a room adjoining his hospital suite at the Johns Hop kins Hospital; meanwhile he is undergoing various examinations and tests. The Cabinet discusses the result of technical consultations between the Philippine and Japanese Governments relative to the salvage of sunken vessels here. The Cabinet approves the request of the Japanese Government for permission to bring back to Japan the bodies of 17 Japanese war prisoners who were executed and buried in the vicinity of the Insular Penitentiary at Muntinlupa. The Department of Foreign Affairs announces that Toru Nakagawa, head of the Japanese Mission in the Philippines, today handed Secretary Neri copies of resolutions passed by the Japanese Diet thank ing President Quirino and the Republic of the Philippines for the pardon, commutation of death sentences, and repatriation of Japanese war prisoners. July 8 — The President undergoes a surgical operation for the removal of a stomach ulcer at the Johns Hopkins Hospital and it is announced he is doing well. July 10 — Executive Secretary Roque administers the oath of office to Counselor Benito H. Lopez as Mayor of Baguio City vice Gil Mallare who reportedly resigned because he believes he could be more useful as an engineer. Secretary of Labor Jose Figueras returns to the Philippines from attending the 36th session of the International Labor Organization at Geneva; he passed through the United States on his way home. Malacanan announces the expected arrival, about July 15, of geo logists Howard S. Stafford and Harry Puttuck of the U. S. Atomic Energy Commission who will assist in a cooperative exploration for uranium. The Supreme Court issues an injunction against Acting Secretary of National Defense Oscar Castelo and Pasay City Fiscal F.G.H. Salva forbidding them temporarily from filing charges of perjury against Antonio Suarez, father of Florentino ("Scarface”) Suarez, who has tes tified that his son confessed to him that he murdered Manuel P. Monroy and had been promised a job by a high government official. July 11 — Malacanan authorizes Secretary of Public Health Juan Salcedo, Jr. to sign on behalf of the Government a supplementary agreement and plan of operations regarding the Schistosomiasis Con trol Pilot Project with the World Health Organization; schistosomiasis is an intestinal disease caused by intestinal parasites which is endemic in Mindanao, Leyte, Samar, Mindoro, and other southern areas. Florentino ("Scarface”) Suarez, two of his sisters, and Rodolfo and Rogelio Robles, the first of whom was arrested (and later released) in connection with the murder of Manuel Monroy, chief witness against Secretary of Justice Oscar Castelo, lodge charges with Executive Secre tary Roque, accusing Manila Mayor Arsenio Lacson of unlawful arrest, arbitrary detention, maltreatment, etc., and unlawful search, malicious mischief, etc. July 12 — The President is reported to be fast recovering from the effects of his operation and cheered by numerous messages of good wishes received by him. Announced that the President has been formally advised by the Reynolds Metals Company, one of the world’s largest aluminum manu facturers, that it will establish an aluminum factory in the Manila area which will serve all the requirements of the entire South-east Asia market and that construction will be began within two or three months involving an investment of $3,000,000; the initial plant to be estab lished will be a modern rolling mill manufacturing sheets, plates, bars, rods, and foil from pig aluminum, but as soon as the Maria Cirstina hydro-electric plant has been further developed, a reduction mill to produce pig aluminum will also be set up; estimated that the first year’s production will be at least 8,500,000 lbs., to be increased to 25,000,000 lbs. annually. July 13 — Proclamation No. 398, signed by the President a few days before he left for the United States, is released setting aside the period from October 4 to 10, and the week beginning with the first Sunday of every October in subsequent years, as “Barrio Improvement Week”, to focus public attention on the requirements and capacities of the barrios and to foster rural-mindedness and leadership; it is estimated that some three-fourths of the population of the country live in barrios. Presidential candidate Carlos P. Romulo returns to Manila from the United States. July 14 — Executive Secretary Roque requests Secretary of Na tional Defense Castelo and Mayor Lacson to submit their respective versions of the incident last evening at the Shellborne Hotel on the Luneta which almost led to a shooting affray between their body guards and during which the Secretary called out army and constabulary units to protect him from what he claimed was an attempt to assassinate him; he also ordered the arrest of Lacson, which Lacson resisted as no warrant was served, the order of arrest later being withdrawn. The Cabinet approves the proposal of the National Development Company that it sell its can-making machinery to the Rose Packing, Inc., a Filipino owned corporation, for P250.000. July 15 — The President delivers a short radio chat which was tape-recorded in his hospital room and beamed to Manila from San Francisco and broadcast by the local radio stations. The Supreme Court issues a writ of preliminary injunction order ing the suspension of the preliminary investigation’ being conducted by Pasay Fiscal Salva of “Scarface” Suarez, upon a petition filed by 314 Sen. Claro M. Recto in behalf of the widow of Monroy. It is reported that the case will be referred to the Municipal Court of Pasay. July 16 — Executive Secretary Roque administers the oath of office to Lope Damasco as Governor of Bukidnon, vice Marcos Resina, resigned. Two plans of operation are sighed in the Office of Under-Secretary of Foreign Affairs Neri, by Secretary of Health Juan Salcedo, Jr., in behalf of the Government, and Dr. I. C. Fang, director of the Western Pacific Regional Office of WHO (World Health Organization), covering assistance to the Institute of Hygiene, University of the Philippines, and field technical assistance in the control of schistosomiasis and bil harziasis, the former a disease caused by an intestinal parasite (com mon in Southern Luzon, Mindoro, Leyte, Samar, and Mindanao) and the latter by a dangerous blood parasite (common in the same areas). July 19 — The President’s physicians in Johns Hopkins Hospital announce that X-ray tests indicate that his stomach is functioning well and gradually returning to normal. July 20 — The President is reported satisfied over the action thken by Executive Secretary Roque and Maj. Gen. Calixto Duque in taking control of the situation created by the Shellbome incident and to make due investigation. Secretary Roque has requested both Secretary Castelo and Mayor Lacson to submit their respective accounts of the affair, and General Duque, who was absent from Manila at the time, has opened an investigation into the dispatch of army troops into the city against orders issued by him following public criticism of the use of troops in the arrest of Sen. Justiniano Montano some months ago. July 22 — The President has approved the inclusion of Sen. Jose C. Locsin as a delegate to the United Nations Conference oh Sugar in London, which started July 13, and the designation of Dr. Jose Mirasol of the Philippine Sugar Planters Association, as adviser to the Philip pine delegation. The other members are Minister Jose E. Romero, as Chief Delegate, and Salvador Oliveros and G. G. Gordon as alter nates. The Conference is considering the conclusion of a new interna tional sugar agreement and participation is necessary as the Philip pines is a member of the International Sugar Council. Executive Secretary Roque requests the Secretary of Finance and the Secretary of National Defense for a fast, well-equiped launch to deal with Moro pirates terrorizing outlying coastal villages in Zam boanga del Sur, appeals having been received from the Constabulary commander and other officials there. July 23 — Malacanan releases the text of a letter from President Dwight D. Eisenhower to President Quirino expressing his good wishes and closing with the line, "I trust you will be able to visit Wash ington before you return to the Philippines.” The Department of Foreign Affairs, through the Malacanan Office of Public ’Information, releases a statement declaring that the Philippines “is hopeful of participating in the proposed political con ference that is to follow the signing of the Korean armistice agree ment.” Acting Secretary Neri states that “we will continue to voice our opposition” to the admission of Communist China into United Nations membership and to any change in the status of Formosa. July 25 — The President undergoes a second surgical operation for the removal of an obstruction that developed in the lower part of the stomach. July 26 — The Supreme Court declares Dominador Jover the rightful Mayor of Iloilo City and rules that since the Charter of the City provides for a 6-year term of office for the (appointive) Mayor, the President of the Philippines can not remove him “at pleasure” but only for cause; it was argued that the dismissal fell within the President’s powers because the position is policy-determining and con fidential in nature. The Court of First Instance, Bacolod City, Negros Occidental, sentences suspended Governor Rafael Lacson to from 8 to 14 years imprisonment for rape; presiding Judge Francisco Arellano in his deci sion also vigorously criticises the Department of Justice for “unneces sarily delaying” the prosecution. July 27 — Malacanan releases a report stating that the President is resting well and that his physicians are satisfied with his condition. In connection with the signing of the truce in Korea at 10 o’clock this morning, the Department of Foreign Affairs, through the Mala canan Office of Public Information, issues a statement expressing the Philippines’ satisfaction, stating that the Government has taken steps to insure participation in the political conference which is to follow the armistice, and that “Philippine security as well as that of the other countries in this region should be properly safeguarded.” July 28 — Malacanan releases a statement of the President with respect to the truce expressing the belief that the United Nations “even tually will fulfill its mission." The Cabinet approves the outright sale of the low-cost governmentbuilt houses in Roxas District No. 1 and Quirino District No. 2, Quezon City, a total of some 2,116 dwellings; study will be made of a possible future sale of the houses in Quirino Districts Nos. 3 and 4. The Cabinet also approves Philippine participation in the Indone sian International Fair to be held in Jakarta from August 29 to October 3, 1953. July 29 — Rumors of the death of the President arouse Manila despite a 10 a.m. Malacanan release stating that he passed a satisfac tory night. Vice-President Lopez, returning to Manila by plane from Camarines, is heavily guarded by Manila police. The Vice-Pres ident having joined the Democratic Party led by former Ambassador Carlos P. Romulo, would greatly complicate the political situation were he to accede to the Presidency now. In case of his death or in ability, the next two men in line are, according to law, Senate President Eulogio B. Rodriguez, Nacionalista, and Speaker Eugenio Perez, Liberal. Announced by the Department of Foreign Affairs that President Quirino has designated Secretary of Foreign Affairs J. M. Elizalde, now in the United States, as head of the Philippine delegation to the United Nations General Assembly session opening August 17. July 30 — Malacanan releases a bulletin on the President’s condi tion as announced by Joseph Kelly, public relations officer of Johns Hopkins Hospital, at 11:15 a.m., on the 29th, Baltimore time, and dis patched to Malacanan by Governor Eliseo Quirino, stating: “The President rested well last night and his condition is satisfactory. He had a period of difficulty yesterday when there was some internal bleeding. He received several blood transfusions after which his blood pressure and pulse re turned to normal and remained so through the night. His condition this morn ing is improved.” The Department of Foreign Affairs announces that it has been informed by the Philippine Embassy in Washington that (House Bill No. 3884, authorizing continuance of the Manila regional office of the U. S. Veterans Administration in Manila until July 1, 1960, has been passed by the Senate. July 30 — Announced that following a recommendation of Acting Governor Ramon Torres of Negros Occidental, Fiscal Emmanuel Munoz has been named to investigate irregularities alleged to have been committed by past and present public officials of the province. July 31 — The President is reported to have passed a restful night; today he will be given liquid food by mouth, there having been no evidence of internal bleeding during the past 24 hours. Banking and Finance By W. M. Simmons Manager The National City Bank of New York COMPARATIVE statement of condition of the Central Bank. As of As of As of As of Dec. 31, Apr. 30, May 29, June 30, 1949 1953 1953 1953 Assets (In thousands of Pesos) International Reserve............. P460.689 P479.042 P483.265 P466.827 Contribution to International Monetary Fund.................... 30,000 30,000 30,000 30,000 Account to Secure Coinage.. . 113,306 106,940 106,940 106,941 Loans and Advances............... 77,047 44,380 36,380 35,860 Trust Account-Securities Sta bilization Fund..................... — — — — Domestic Securities................. 92,197 234,515 234,310 232,236 Other Assets............................... 20,390 42,842 46,712 44,171 P793.629 P941.589 P935.066 P914.128 Liabilities Currency —Notes...................... P555.576 P579.620 P565.019 P545.179 Coins.................... 74,384 88,255 87,761 87,316 Demand Deposits—Pesos. .. . 117,682 221,649 228,871 227,482 Securities Stabilization Fund.. 2,000 18,828 18,115 18,158 Due to International Fund.. . 22,498 496 496 497 Due to International Bank for Reconstruction and Deve lopment .................................... 2,389 2,379 2,377 2,377 Other Liabilities........................ 2,636 5,337 6,335 5,782 Deferred Credits........................ 3,002 3,630 603 Capital.......................................... 10,000 10,000 10,000 10,000 Undivided Profits...................... 6,464 1,881 2,329 6,601 Surplus......................................... 10,133 10,133 10,133 P793.629 P941.589 P935.066 P914.128 The international reserves as of June 30 were as follows: Central Bank International Reserves............. §233,413,676.92 Japan Open Account (due from)...................... 9,305,187.76 Net FX Holdings Other Banks......................... 51,914,071.02 §294,632,935.70 This is a decrease of $17,477,987 from May 31, 1953, and is the first time the international reserve has dropped below $300,000,000 in many months. 315 195 131 Currency and coins issued totalled P632,495,271.30. Money continues tight, with merchants reporting business slow. importers are passing through an interim period of A adjustment to the new import-licensing system. The market’s reaction to the new import-control arrange ment has been favorable, generally speaking. The expec tation that the new system by its nature will eliminate many of the evils of the old, is a source of great satisfaction all around. •implementation of Regulation No. 42 of May 21 has A not as yet assumed a definable pattern. On June 18, the Central Bank instructed Authorized Agents to advise their clients that to “facilitate licensing transactions” under Circular 42, clients were requested to submit to the Central Bank general statements regarding the nature of the transactions normally accomplished with respect to their assets abroad. Note: The information contained herein has been derived from responsible sources, but the National City Bank of New York assumes no responsibility for its accuracy. Manila Stock Market By J|. J. Ortigas Hall, Picornell, Ortigas & Co. June 29 to July 24 THE mining share market has been extremely quiet during the period under review, with most issues registering fractional declines as buyers and sellers showed little interest. In the gold mining group, prices tended easier on a very limited trading, while, in base metals, issues have ruled steady to firm with the exception of some easiness in Philippine Iron Mines. The price .of gold in the local free market has ruled steady with prices recovering from a low of P98.50 to P101 per fine ounce. In the commercial and industrial section of the market, an easier trend has also been in evidence. 53 Range gh Low 53 87.55 MINING SHARES 90 00 75 ISO 00 00 100 00 00 100 00 50.00 32 325 00 00 320 12 00 27 50 12 00 7 00 0 30 90 30 10 00 23 00 7 50 7 00 0 25 3 00 0 00 100 30 00 23 7 00 00 20 50 0 0925 0 10 0 90 100 36 00 99 28 50 00 101 00 93 00 108 00 102 00 13 13 50 00 50 8.70 6.00 Central ^Azucarera de Central Azucarera de la Cariota................. 1 Central Azucarera de Pilar........................... 1 Central Azucarera de Tarlac.....................,. China Banking Corpporation x.................. Cia. de Celulosa de Filipinas........................ Filipinas Cia. de SeIndustrial Textiles Mfg. Co. P.I........... Insular Life Assurance Co............................... Manila Broadcasting Co............................... Manila Wine MerMarsman Ik Co.—pref. Meralco 6-1/2%......... Metropolitan InsurPasudeco....................... Philippine Air Lines, Inc.............................. Philippine Oil Dev. Philippine Racing Club, Inc............................. ~ RtkD Bonds 4%—1959 99.50 San Miguel Brewery— San Miguel Brewery— 7% prefix................. San Miguel Brewery— 8% prefix................. Talisay-Silay Milling.. Universal Insurance & Indemnity................. Williams Equipment x—Ex-Dividend Company Anakan Lumber Co........................... East Mindanao Mining..................... Jai-Alai Corporation.......................... Philippine Long Distance Tel. Co. 6% Bonds, 1966............................. Victorias Milling Co., Inc................ 30 106.00 106.00 106.00 100.00 100.00 100.00 32.00 10.50 23.00 7.50 .27 .02 30.00 96.00 39 22 32.00 32.00 — 280.00b 10.50 10.50 23.00 23.00 7.50 7.50 6.00b .27 .27 3.10b ,29a — 101.00b — 150.00b — 25.00b 5.00b .02 .02 Off 3.00 Off 1.00 272 ,000 500 3,200 5,000 1,072,000 .90 99.50 .90 99.50 Off .50 1,000 40 29.50 96.00 104.00 103.50 30.00 13,438 96.00 104.00 13.00b Off 1.00 75 12.50b 8.30b OVER THE COUNTER High 12.00 0.012 4.00 99.00 95.00 Close Total Sales 12.00 50 0.012 41,000 4.00 300 99.00 P8.7OO 95.00 267 0 0 6 315 065 0 16 038 60 High Lov M.S.E. Mining Share Close Change Total Sales 0 3 0 06 2 0 65 1 0035 0 SO 0013 0 0 80 07 048 3 0 0 SO 02 028 0 0 2 9 0 0 25 16 0 0 55 075 5 0 0 C - 0 875 0 0 0 0625 038 65 028 075 0 275 0 0875 3 6 15 0.32 0 17 0 0 85 2 0 0 Acoje Mining Co........ Antamok Goldfields. . Atok Big Wedge MinBaguio Gold Mining Balatoc Mining Co.. . Batong Buhay Gold Benguet Consolidated Coco Grove, Inc......... Consolidated Mines, Inc.............................. General Base Metals. Hixbar Gold Mining Co............................... Itogon Mining Co.. . . IXL Mining Co.......... Lepanto Consolidated Masbate Consolidated Mindanao Mother Lode.......................... Paracale Gumaus Con solidated ................... Philippine Iron Mines, Inc.x........................... San Mauricio Mining Co............................... Surigao Consolidatedx United Paracale Min ing.............................. x—Ex-Dividend 40 87 265 0525 86 88 23 046 39 25 05 Up .31 Up .01 60 075 50 07 50 07 SO Off .0025 3 0026 80 3 002 70 3 Off .30 1,150 153,000 9,200 043 29 041 27 041 27 Off .01 840,000 53,000 0625 055 70 07 0625 055 06 07 08 09 2 35 25 20 075 0875 2 0775b Off .0025 80,000 0875 30 2 35b Off .0025 Off .10 60,000 30,950 25 195 25 195a .03a Off .03 Off .005 1952-53 Range High Low 155.00 120.00 22.00 22.00 20.00 IS.00 COMMERCIAL SHARES Bank of the Philip pine Islands........... Binalbagan - Isabela Bogo-Medeliin ' Mil— 155.00b — 20.00b — 20.00a Credit By R. A. Callahan Accountant and Office Manager Philippine Refining Company, Inc. THE Association of Credit Men, Inc. (P.I.) is a non profit organization of reputable firms doing business in the Philippines. The Association was organized in 1932 to obtain, disseminate, and exchange credit infor mation among its members. In addition, the Association takes whatever steps are deemed necessary to protectits members in matters of commercial credits, including the issuance of warnings against lraudulent practices, com piling and circulating statistics on overdue accounts, and listing currently all court cases involving sums of money. The directors of the Association held their regular monthly meeting on July 21. A membership committee was appointed to handle the applications of firms applying for membership. Other subjects discussed by the Directors were the index of the Credit Manual which was published last year, summarizing Philippine regulations as they affect credit men, and credit information secured from non members on accounts circulated through the Ledger Inter change Bureau, which is a service among the members for experience on stated accounts. Most credit executives interviewed noted a slight improvement in collections during July. Many firms have tightened credit restrictions and reported that strict credit terms were being enforced. Current figures on past-due accounts show little change in July as compared with June. Inquiry through various credit and collection execu tives suggest that there are several reasons for collections being slow at the present time. They say that during the rainy season and typhoon season collections normally fall off. There have been a number of fires recently which 316 made payments difficult in some provincial areas. Certain credit men indicate that their customers are slow because copra prices have been low. Others report that there is some improvement in the collections in sugar areas. There seems to be general agreement that collections are slow, but most credit mdh seem to have expected this general slowness. Some credit executives interviewed suggest that they expect general improvement in collections in the next months. Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—16,316,000 KWH 1953 50,107,000 45,501,000 50,789,000 49,159,000 52,042,000 51,304,000* 53,900,000** Kile 557,458,000 January...................................................... February..................... ........................... March......................................................... Total......................................... ••Partially eatimated Jul,y output was 6,358,000 KWH, or 13.4% above July, 1952. New peak daily and monthly output records were set. The peak output was 128,800 KW, set on July 16; a daily high of 1,909,100 KWH was registered on July 15; the monthly figure is 1,858,000 over the .pre vious high month of May. The addition of three units at the Blaisdell Station totaling 20,000 KW is now in full operation; Work is progressing rapidly on a third 25,000 KW unit at Rockwell Station. Real Estate By Antonio Varias Vice-President, C. M. Hoskins & Co., Inc., Realtors REAL ESTATE sales registered in the Greater Manila area during the month of July, 1953, numbered 639, with a total value of P7,012,621, as compared with 632, with a total value of P5,839,980, registered during the preceding month of June. Of the July sales, 192, with a total value of P3,744,881, represented deals within Manila proper, and 447, with a total value of P3,267,740, were transactions in Quezon City, Pasay City, and in the suburban towns of Makati, Caloocan, Malabon-Navotas, Mandaluyong, Paranaque, and San Juan. Some of the bigger sales registered during the month were: CITY OF MANILA Binondo Alvarado St. Area: 1,105 «q.m. sold by Maria Concepcion to Mariano S. Florendo for P175.000, or, P160 a sq.m. T. Pinpin St. A parcel of 474.8 iq.m. told by Manuel Soriano to Francisco Almeda for P100.000 or, P210 a sq.m. Dewey Blvd.—M. H. Del Pilar St. A parcel of 6,407.2 square meters sold by La Santa Sede to the Government of the Republic of China for the reported sum of P268.900. M. H. del Pilar St. A parcel of 2,933.2 sq.m, sold by Mervince Maria de Ynchausti to Vicente Aug for P1S3.837. Pandacan L. de la Paz St. A tract of 6,693 sq.m, sold by Crisanto B. Mauricio toExequiel Floro for P100.615. REAL ESTATE SALES, 1953 Quezon Pasay Suburban Manila City City Towns Total January.......... 1,499,139 1,477,332 213,490 4,141,742 7,331,703 February........ 3,460,932 1,286,414 341,023 1,710,106 6,798,475 March............. 3,775,675 1,643,140 680,593 1,649,801 7,759,209 April................ 3,481,727 1,322,975 213,465 1,947,750 6,965,917 May................. 2,980,713 1,657,605 200,299 1,218,360 6,056,977 June................ 3,200,302 1,066,751 277,416 1,295,511 5,389,980 July................. 3,744,881 1,456,079 434,581 1,377,080 7,012,621 REAL ESTATE MORTGAGES, 1953 January.......... 3,691,913 1,377,690 245,200 2,016,917 7,331,720 February.... 5,560,707 2,196,329 718,300 2,924,480 11,399,816 March............. 7,586,190 2,419,165 553,800 1,503,942 12,063,097 April................ 5,069,966 1,973,705 184,500 1,976,673 9,204,844 May................. 4,962,183 2,026,850 1,219,800 2,645,032 10,853,865 June................ 4,465,288 2,062,071 457,000 2,096,738 9,081,097 July................. 3,602,235 1,395,078 564,709 1,641,841 7,203,863 Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of June, the Office of the City Engineer approved building permits for construction work amounting to P5,578,290. For the same period in 1952, the volume of work authorized amounted to P3,274,050, in comparison with P5,152,480 in 1951 and P3,776,630 in 1950. Some of the big projects that were started during the month of June were: For the Philippine-American Life Insurance Company, a 5-story office building at Taft Avenue, comer San Luis, costing Pl,500,000; A theater and office building for the Luzon Theater Company at Rizal Avenue, comer Ronquillo, estimated at P600.000; A one-story steel building for Elizalde & Co., Inc. on Tanduay Street, costing P400.000; A 2-story apartment building at 850 M. del Pilar, for Jose de Leon Joven, estimated at P120.000; 317 PRIVATE BUILDING CONSTRUCTION IN MANILA, CLASSIFIED: 1940-1950 Bureau of the Census and Statistics Total Residential Non -residential Alteration & Repair Year Number Value (pesos) Number Value (pesos) Number Value (pesos) Number Value (pesos) 1940........ 2,714 8,234,460 1,352 5,143,720 572 1,070,200 790 2,020,540 1941........ 2,190 5,692,470 1,054 3,077,790 734 1,543,540 402 1,071,140 1945........ 2,887 12,186,150 1,079 8,299,100 835 2,426,400 973 1,460,650 1946........ 5,636 51,070,567 3,886 25,041,250 995 23,402,200 755 2,627,117 1947........ 7,057 88,412,162 4,921 44,425,230 1,492 29,892,400 644 14,094,532 1948........ 6,843 91,266,606 3,273 41,592,400 1,924 27,347,100 1,646 22,327,106 1949........ 5,497 59,353,500 3,389 35,232,120 796 20,239,280 1,312 3,882,100 1950........ 4,953 46,022,670 2,200 25,036,350 516 19,698,980 2,237 1,287,340 For the Bolinao Electric Company, an addition to the 5th floor of the building at Soler, comer F. Torres, streets, costing P 180,000. As last month, the reason for the increase in this month’s volume of construction is the construction of a new theater. qpHE price of essential commodities such as galvanizediron sheets, reinforcing steel bars, and other items which can be obtained from Japan, remained firm. Con sumers are expecting that with the signing of Korean truce all produce from Japan will decline in price. *t*he contracts for the construction of the Veterans J- Hospital project amounting to P12,29.8,810 were recently awarded to the contractors who offered the lowest bids last June 5, 1953. The Hospital site covers an area of 54 hectares in Quezon City which was donated by the Philippine Government, and the fund to be used, amount ing to P18,000,000, is a grant from the United States Government for the benefit of Filipino Veterans under the Rogers Act. All buildings are expected to be completed by October, 1954, and will be ready, together with all the fixtures necessary for occupancy, the following month. In accordance with an agreement between the two Govern ments, materials and equipment used exclusively in this project are exempt from all taxes. There will be employed in this work at least 3,500 laborers and skilled men. •vvtit'h funds’coming from a $10,000,000 assistance fund from the United States Government, reinforcedconcrete elevated water tanks and fire-protection equip Bureau of the Census and Statistics Number of buildings Value NonPRIVATE BUILDING CONSTRUCTIONS1 IN MANILA, BY MONTH: 1951-JUNE, 1953 Year and month (pesos) Total Resi dential residen tial 1951.......................... 51,706,840 5,797 2,770 3,027 1952.......................... 46,318,345 5,813 2,803 3,010 January........................... 4,921,570 479 210 269 February......................... 4,226,040 527 244 283 March........................ 3,465,780 552 282 270 April................................. 3,502,260 422 202 220 May.................................. 6,902,020 568 282 286 June.................................. 3,274,050 510 254 256 July................................... 3,478,360 536 257 279 August............................. 2,828,540 376 177 199 September....................... 4,421,330 525 282 243 October............................ 4,040,150 530 256 274 November....................... 2,748,860 433 187 246 December........•.............. 2,509,385 355 170 185 1953.......................... 30,120,951 3,084 1,214 1,870 January........................... 3,742,310 475 199 276 February......................... 4,299,776 528 250 278 March.............................. 5,172,855 555 266 289 April................................. 4,123,120 516 230 286 May.................................. 7,204,600 5,578,290 554 137 417 June.................................. 456 132 324 >Includes new building constructions, additions, buildings, schools, churches, monuments, etc. Based on construction permits. alterations, repairs to old number of private building ^Buildings not for dwelling purposes. Includes commercial and industrial buildings and others like schools, churches, monuments, etc. Source: Compiled from the records of the City Engineer's Office, Manila. ment will be installed at Camp Murphy, Camp Nichols, Camp Basa, and Camp Ord, costing about Pl,000,000. Several offers for this work were received by the Office of Engineers, Philippine Army, in a bidding held recently. Awards will be made in the near future. Port of Manila By L. R. Wentholt Vice-President, Luzon Brokerage Company DURING tie month of July about 84,000 tons of general cargo were discharged on piers and lighters. Deliveries were satisfactory although congestion was experienced on Pier 9. Due to the present checking system, under which loaded trucks have to wait on the pier, obstacles in dis patching are caused. Loaded trucks have to wait inside the pier premises until all cargo has been checked by Del gado Brothers before they are allowed to leave the pier itself, which obviously creates a bottle-neck since empty trucks have difficulty in entering the area, especially on busy days. Something should be done to rectify this situa tion. Substitution of textiles, etc. by old newspaper is still going on, however, on a reduced scale. More publication is given to these matters and the Collector of Customs has appointed a committee to study how this can be prevented. However, up to this day it has not been found out where the pilferages actually occur. It is incredible that a thing of this nature can go on for such a long time without any result in efforts to apprehend the guilty party. The change-over in the import control licensing to the new system of obtaining releases from the Central Bank, caused some delays in coursing papers through the Customs House. The matter has been taken up by the authorities, and necessary measures have been taken to overcome these delays. Ocean Shipping and Exports By B. B. Tunold Secretary-Manager Associated Steamship Lines TOTAL exports for the'first half of 1953 amounted to 2,400,026 tons, as against 2,275,417 tons for the first half of 1952, or approximately 124,000 tons more this year than last year. This increase is mainly attributed to increases in lumber and chrome-ore exports. Total exports for the first 6 months of 1953, as com pared with the first 6 months of 1952, were as follows: Commodity 1953 1952 Alcohol........................................ 53 tons 498 tons Beer............................................. 4,848 ” 1,619 ” Cigars and cigarettes............. 112 ” 78 ” Coconut, desiccated............... 24,176 ” 25,490 ’’ Coconut oil............................... 21,239 ” 40,119 ” 318 August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 319 Concentrates containing copper, gold, etc........................ 778 Concentrates, copper............. 23,488 Concentrates, gold.................. 1,066 Concentrates, lead.................. 1,193 Concentrates, zinc.................. 793 Copra.......................................... 2J5.819 Copra cake/meal.................... 26,913 Embroideries............................. 1,487 Empty drums.......................... 1,857 Fish, salted............................... 131 Foodstuffs.................................. 23 Fruits, fresh.............................. 1,300 Furniture, rattan.................... 5,546 Glycerine................................... 1,054 Gums, copal............................. 424 Gums, elemi............................. 32 Hemp.......................................... 460,003 bales Hemp, knotted........................ 588 tons Household goods..................... 1,949 Junk, metal.............................. 696 Kapok......................................... 50 Logs............................................. 189,989,385 bft. Lumber, sawn.......................... 30,011,298 Molasses..................................... 106,369 tons Plywood and plywood pro ducts........................................ 266,734 sq. ft. Ores, chrome............................ 263,807 tons Ores, iron................................... 604,797 Ores, manganese..................... 10,438 Pineapples, canned................. 46,947 Rattan, round (palasan).... 1,468 2,160 Rope............................................ Rubber........................................ 216 Shell, shell waste.................... 296 Shell buttons............................ 50 Skins, hides............................... 403 Sugar, cent./raw...................... 484,950 237 Sugar, muscovado.................. Tobacco...................................... 10,152 Vegetable oil............................. 279 Veneer......................................... 59 Transit cargo........................... 277 Merchandise, general............ 5,612 Freight Car Loadings By Jose B. Libunao Traffic Manager, Manila Railroad Company 298,731 ” 36,965 ” 1,186 ” 2,610 ” 115 ” 68 ” 667 ” 6,496 ” 1,064 ” 121 ” 32 ” 460,880 bales LOADINGS of revenue freight during the month of June, 1953, totaled 1,916 cars. This was a decrease of 588, or 23.48%, less than the loadings during June, 1952, which ran to 2,504 cars. Revenue Carloadings by Classes Revenue freight carloadings by general classes of com modities for the month of June were as follows: 1,579 tons 8,800 ” 61 ” 75.718.503 bft. 28.644.504 . ” 119,143 tons Commodi ties June 1953 Tonnage 1952 Products of agriculture...................................... 3,357 4,160 Animal products................................................. 1,019 658 Mineral products................................................ 967 476 Forest products................................................... 12,634 12,617 Products of manufacture................................... 21,869 32,147 Merchandise less than by carloads.............. 7,811 6,785 Total 47,657 56,843 159,827 sq.ft. 187,095 tons 596,577 ” 14,157 ” 26,067 ” 1,433 ” 2,371 ” 639 ” 275 ” 40 ” 221 ” 569,636 ” 6,547 ” 7,384 ” 332 ” 1,919 ” 4,585 ” There were 32 items in June, 1953, compared with 30 items for the same month last year. In spite of the increase in items shipped by rail during June, 1953, there was a total net decrease of 9,1,86 tons. The principal items which caused the decrease in carloadings were copra, 1,348 tons; centrifugal sugar, 9,660 tons; and cement, 1,273 tons; an aggregate of 12,281 tons. On the other hand, the principal items which registered increased carloadings were livestock, 551 tons; lumber, 1,048 tons; gasoline, 1,399 tons, and less carload merchandise, 1,026 tons; or an aggregate 4,024 tons. No shipments of other forest products, coconut oil, iron and steel products, agricultural implements, and wines, liquor and beer were made in June, 1953, which accounted for the remainder of the decrease. On the other hand, in INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS ------- ¥-------SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila Philippine Lumber Manufacturing Company 14-30 Soler St. Manila Insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE; 603 FILIPINAS BUILDING June, 1952, there were no shipments of tobacco, other animal products, coal and coke, and refined sugar and molasses, which helped to offset a further decrease in car loadings for June, 1953. The decrease in tonnage for June, 1953, was not indi cative of decrease in the exportation of such commodities as desiccated coconut and logs, but was largely due to the shortage of cement and the routing of centrifigal sugar and molasses by other means of transportation. To these causes may be added a decrease of freight service due to the shortage of power. The present trend of carloadings may continue during July, except for cement, flour, and manganese, which may react favorably. Lumber By Pacifico de Ocampo Secre tary-Treas urer Philippine Lumber Producers' Association, Inc. DURING the month under review, June, 1953, the Philippines exported 57„214,097 bd. ft. of logs and lumber, 16,948,195 bd. ft. more than during the preceding month. This increase was mainly due to the shipment of logs to Japan'—from 32,755,465 bd. ft. in May, to 49,337,497 bd. ft., in June, 1953, or an increase of 16,582,032 bd. ft. The exports to the United States and Canada increased by 1,430,690 bd. ft., from 5,361,349 bd. ft. in,May, to 6,792,039 bd. ft. in June, 1953. Export to all other countries decreased by 1,064,527 bd. ft., from 2,149,088 bd. ft. in May, to 1,084,561 bd. ft. in June, 1953. The following are the quantities of logs and lumber in bd. ft. inspected for export during June, 1953, as re leased by the Bureau of Forestry: Volume in Board Feet Shippers Ldestination Lufmber Lotfs Aguinaldo Development U.S.A. 200,359 Corporation. ..'........................ Japan 909,338 Alberto S. Llorente.................... Japan 499,940 American Rubber Co................ Japan 1,127,662 Anakan U.S.A. 154,591 800,000 Lumber Co................................ Japan 4,680,016 Arturo Say.................................... Japan 497,460 A. Soriano y Cia.......................... Japan 823,100 Atlantic Gulf & Pacific Co. of the Phil...................................... Formosa 2,563 Basilan Lumber Co.................... U.S.A. 1,097,167 Bislig Bay U.S.A. 238,241 Lumber Hongkong 326,283 Co., Inc................................ Japan 4,552,439 Brigido R. Valencia.................... Japan 1,101,630 Calapan Lumber Co., Inc........ Japan 500,631 Cantilan Lumber Co................... Japan 849,688 Cipriano Luna Enterprises.... Japan 507,683 Cuison Lumber Co., Inc........... Japan 450,002 Dee Cho Lumber Co................... Guam 43,762 Dolores E. de la Rosa................ Japan 499,902 Dy Bun Chin................................ Japan 811,286 Dy Pac & Co., Inc...................... Japan 1,390,292 E. Guinoo & Son Enterprises. . Japan 652,993 F. E. Zuellig, Inc......................... U.S.A. 54,687 Findlay Millar Timber Co........ U.S.A. 221,604 F. M. Triplitt............................... Japan 294,333 General Enterprises.................... Japan 500,398 General Lumber Co., Inc.......... Formosa 146,463 Gonzalo Puyat & Sons, Inc.. .. Japan 473,671 G. S. Manalac............................... Japan 1,048,813 Hercules Lumber Co., Inc........ Japan 1,499,513 Insular U.S.A. 1,746,498 Lumber Africa 411,414 Com Hawaii 47,780 pany.................................... Erie 69,721 Iligan Lumber Co., Inc.............. Japan 675,087 Jos? G. de Castro........................ Japan 482,297 Johnston Lumber Co., Inc........ Japan 1,655,485 Luzon Manufacturing Enter prises, Inc.................................. Japan 499,941 Manuel Sotelo.............................. U.S.A. 6,498 Martha Lumber U.S.A. 325,000 Mill.............................................. Japan 4,425,227 M. R. Lacson.............................. Japan 479,674 Misamis Lumber Co., Inc......... Japan 929,945 Mindanao Lumber Dev. Co., Inc................................................ Japan 677,887 Nasipit Lumber U.S.A. 370,076 777,930 Co., Inc...................................... Japan 6,235,761 North Star Lumber Co., Inc.. . Japan 278,088 P. B. Dionisio............................... Japan 458,074 Ralph W. Dampsey.................... U.S.A. 135,664 Redwood Co.................................. Japan 1,098,002 Sta. Ana Sawmill......................... Japan 802,553 Sta. Clara Lumber U.S.A. 300,000 Co., Inc....................................... Japan 1,737,732 Sincere Lumber Co...................... Japan 279,060 Standard Sawmill........................ Japan 1,000,000 Taggat Sawmill U.S.A. 116,082 Co., Inc....................................... Hawaii 93,640 Taligaman Lumber Co., Inc.... Japan 1,000,000 Tirador Lumber Co..................... Japan 975,000 Valeriano C. Bueno.................... Japan 548,422 Vic Corporation........................... Japan 601,697 West Basilan Timber, Inc......... U.S.A. 85,312 Western Mindanao Lumber Co., Inc...................................... Japan 200,347 Woodcraft Works, Ltd............. Japan 479,965 Woodworks, U.S.A. 162,330 Incorporated............................. Africa 89,398 Totals...................................... 5,385,436 51,828,661 Resume of Exports to: Lumber Logs Total (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) Japan............................................. — 49,337,497 49,337,497 United States............................... 4,303,438 2,488,601 6,792,039 Other countries.......................... 1,081,998 2,563 1,084,561 Totals............................... 5,385,436 51,828,661 57,214,097 Arrivals of logs and lumber at Manila during the month under review, aggregating 12,827,143 bd. ft., in creased by 1,396,248 bd. ft. as compared to arrivals during the previous month of 11,430,895 bd. ft. During the month under review, June, 1953, the prices of lumber in the local wholesale lumber market slightly improved from those of the previous month. Prices of apitong and red lauan increased to P172.50-P180 and P187.50-P195 per 1,000 bd. ft., respectively, as com pared with their prices of P170-P175 and P185-P195 the month before. White lauan remained unchanged at Pl60-Pl70. The slight increase in the prices of apitong and red lauan may be attributed to the continuous rains the month before which slackened the supply of lumber from Bataan. As a result of the vigorous protest filed by the Philip pine Lumber Producers’ ' Association, Inc. against the unusually short duration of the freight reduction by $5 per 1,000 bd. ft. on shipments to the United States, the Associated Steamship Lines extended the decreased-rate Period Lumber in Board Feet Logs in Board Feet Grand Total Western States Eastern States Gulf States All Others Total Western States Eastern Gulf States States All Others Total May, 1953...................................... June, 1953...................................... 1,949,554 2,537,483 299,857 1,117,803 208,573 224,862 17,317 423,290 2,475,301 4,303,438 1,000,281 1,778,289 676,845 1,158,922 85,312 425,000 200,000 2,836,048 2,488,601 5,311,349 6,792,039 Difference (Increase+; 587,929 + 817,946 + 16,289 + 405,973 + 1,828,137 + 778,008 + 591,533— 733,922— 200,000 + 347,447— 1,480,690 + 320 August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 321 Trend of Exports to: This Month Month Ago Year Ago Lumber Logs Lumber Logs Lumber Logs (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) Japan..................... — 49,337,497 — 32,755,465 — 18,174,183 United States and Canada.............. 4,303,438 2,488,601 2,475,301 2,886,048 1,859,365 920,544 Other countries. . 1,081,998 2,563 1,493,231 655,857 1,177,396 499,986 Totals............ 5,385,436 51,828,661 3,968,532 36,297,370 3,036,761 19,594,713 SUMMARY OF EXPORTS DURING JUNE, 1953, ARRANGED BY COUNTRIES OF DESTINATION IN THE ORDER OF VO LUME OF SHIPMENT TO EACH COUNTRY Countries of Destination Japan............................................. United States.............................. Africa............................................ Hongkong..................................... Hawaii.......................................... Erie................................................ Guam............................................ Formosa........................................ Lumber Logs Total (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) 49,337,497 49,337,497 4,303,438 2,488,601 6,792,039 500,812 — 500,812 326,283 — 326,283 141,420 — 141,420 69,721 — 69,721 43,762 — 43,762 — 2,563 2,563 Totals............................... 5,385,436 51,828,661 57,214,097 period to the end of the current year. Although this is a relief, it is still believed that it will not considerably prevent diversion of log shipments to Japan. The steady increase in log exports to Japan, where the logs are processed into sawn lumber and plywood and later exported to the United States, competing unfavorably with Philippine lumber there, is viewed with serious alarm by American importers. Philippine mahogany 'continues to be in such demand in the United States, that Philippine sources can hardly supply enough. Mining By Henry A. Brimo President Philippine Gold Producers Association, Inc. WITH the price of gold hovering unsteadily around P98.50 per ounce, the gold producers have little to bolster their confidence at present. On the other hand, the tax relief recently granted through Republic Act No. 909, after several faulty starts, finally got into high gear and is now operating smoothly, thanks to the well-oiled machinery provided by the Department of Finance, the Department of Agriculture and Natural Resources, and the Bureau of Mines, together with the cooperation of the Tax Division of the Central Bank and the Bureau of Internal Revenue. Thus we write Finis to the chapter entitled TAX RELIEF. And no historian will be needed years hence to write that, without Republic Act No. 909, there was no gold mining industry to save by the time the national elections rolled around! We mention the national elections because, although several months remain before the balloting begins, the Parties vying for power have already demonstrated that each is familiar with the vicissitudes confronting the in dustry and have solemnly pledged further aid. This is encouraging because it signifies that the aura of prosperity that normally accompanies the mere mention of the word gold is a thing of the past. Indeed, the Philippines was the most belated country to recognize the seriousness of the plight of gold producers, and we are now doubly pleased that at long last the true facts were recognized, and that serious study and legislation has already accomplished much, and promises to accomplish more, to keep the in dustry on its feet. Of course, a cynic might say that promises made during an election campaign must be taken with a grain of salt, but the fact is that, apart from the statements of the candidates, there have been active preparations to For HIGH SPEED DIESEL ENGINES^OS^* J SHELL ROTELLA OIL When choosing a lubricant for your high speed tractor or stationary engine, profit from the expe rience of others—choose the new SHELL Rotella Oil... meets all the requirements of U. S. 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These persons have been busying themselves seeking information, studying statistics, and encouraging frank discussions, in sincere efforts to determine what measures might prove feasible, including outright subsidy. The mere fact that the word “subsidy” is now being used, is encouraging. It is likely, at any rate, that the next Congres sional Session will bring additional legislation to further help the gold mining industry. GOLD AND SILVER PRODUCTION IN THE PHILIPPINES January to June, 1953 January Fobruary March April May June Name of Company Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value A^w'ds'l. f/s r/s Bri's « at ’:a B^°”aM,"l at s as as ss ::a ::a B“‘ s .at st s .at s s.at at > st at ® .at s at .at -a & .at .at 33: s at s > at “"■-"■“I. at ™ at s st s at s atis sat - = = z z z z z = z = at s bb. bb. s at s sb. s .st :a “““"k at s at > st > at at. at :a AMERICAN CHAMBER OF COMMERCE JOURNAL 323 X1 IZ U,00506 ^ METAL “aTo^mY^C^. CHROMITE ENGINEERING EQUIPMENT r> & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office i 1 74 M. de Comillas | Manila Tel. 3-29-21 I ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 I 324 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 LEAD (METAL) ZINC (METAL) SUMMARY REFRACTORY CHROMITE ORE........ METALLURGICAL CHROMITE ORE COPPER METAL......................................... LEAD METAL.............................................. ZINC METAL................................................ IRON ORE..................................................... MANGANESE ORE.................................... TOTALS................................................ “• ’« "1 “ « 1” 2“ 244 150,148 265 162,271 205 125,222 152 82,863 183 95,146 226 102,978 ■% 3 4ASl S "-,s° _59 1,2°° -10 '»4“ 215 121,156 206 115,747 139 78,023 75 41,250 59 28,600 30 14,640 98,205 1,851,255 87,310 1,685,056 98,637 1,891,379 103,746 1,996,885 117,546 2,243,415 103,793 1,991,379 3J98 178,092 —45 2—168 —6 52,704 ——q 1,041 56,214 837 45J98 = = JS S2 I I r 8° T | | l2o° =e E E E= =" -°° =E 3,298 178,092 1,500 129,600 976 52,704 1,098 109,800 1,041 56,214 4,293 318,461 For our part, we are busy compiling statistics on the Operating Statements of each of our Member-Mines for the first 6 months of the current year, and we expect to have sufficient data ready for use in our next article in this Journal. For the present, a few statements and observa tions concerning the industry may be of interest. The first is that production of gold of our 10 MemberMines for the first 6 months of the current year was about equal to that for the same period a year ago. The second is that the average price of gold sales for the first 6 months of the current year was approximately P103.75 per ounce, August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 325 as against Pl08. 49 for the first 6 months of the previous year. A third observation is that if the gold price maintains itself around the current level until the end of this year, the average price will be down to Pl01.00 per ounce for the entire year. However, sin^e the price-trend of gold appears to be downward, it is impossible to foretell what the ultimate average will be. A fourth observation is that costs of supplies and materials, despite predictions to the contrary, have shown no tendency to decline. In fact, certain special items are higher than 6 months ago. A final observation, sad to make, concerns the fact that labor efficiency has not only failed to show a tendency to improve but in some cases is reported to be declining. It is unfortunate but true that whenever labor begins to agitate, even in an intramural fracas, as between two unions seeking ultimate and sole control, efficiency suffers. So much labor is involved in mining that even a slight decrease in efficiency becomes immediately costly to the operators. The matter becomes more serious whenever there is agitation against manage ment itself. Production for the second half of this year will likely be slightly lower than for the first 6 months. The ultimate overall trend of production, of course, depends on too many factors to warrant a prediction. For one thing, the mines seeking to expand as a result of the incentive provided by tax relief, may be unduly delayed by the Central Bank’s poli cies since its assumption of the former powers of the Import Control Commission, and a delay can sometimes be fatal to planned expansion. In fact, after four years of quota vexations originating in the now defunct Import Control Commission, which difficulties incidentally had been finally ironed out, we are now beginning to experience more stringent regulations at the hands of the Central Bank. Too much of such trouble may cause management to throw up its hands and give up further thought of expansion. The other factor concerning the trend of future pro duction, depends not only on the results of future oredevelopments, but also on the possibility that one or two mines may be forced to shut down before further aid is received by the industry. This simple statement, more than anything else we could say, will show that the outlook for the gold producers is still very grim notwithstanding the important relief obtained through the recent tax reduc-. tions. Copra and Coconut Oil By Edward F. Underwood Manager, Copra Buying Department, Philippine Manufacturing Company COPRA prices during July showed surprising stability. Prices rallied about 5% early in the month on failure of arrivals to increase and confusion in regard to the Korean truce talks. Later in the month when arrivals soared and it became evident that a truce in Korea was imminent, prices dropped and the market closed at the month’s lowest levels. Indonesia continued to sell substantial quantities of copra to Europe. European buying interest was bolstered by a 50% advance in United States lard prices. As copra production began to exceed United States consumption by a wide margin, European buyers again resumed their role as the deciding price arbiters of Philip pine copra. Marginal European demand was dependent on availability and comparative prices of edible-oil substi tutes such as lard, cottonseed oil, and soybean oil. The United States demand remained extremely inelastic and showed almost no tendency to expand on the basis of lower prices. pacific Mciu iinnisnc CORPORATION 449 Dasmarifias Manila AMERICAN RADIATOR & STANDARD SANITARY CORPORATION AMERICAN VALVE COMPANY AMES BALDWIN WYOMING COMPANY BADGER METER MANUFACTURING CO. BADGER FIRE EXTINGUISHER CO. BALL BROS. MASON JARS BOMMER SPRING HINGE COMPANY CAPEWELL MANUFACTURING CO. CARBORUNDUM COMPANY COLUMBUS COATED PRODUCTS CO. COLUMBIAN VICE & MFG. CO. COLEBROOKDALE IRON COMPANY CORBIN LOCK COMPANY DICK BROTHERS MANUFACTURING CO. EKCO PRODUCTS CO. FAIRBURY WINDMILL CO. GREAT NECK SAW CO. JACOBS MANUFACTURING CO. KEENEY MANUFACTURING COMPANY MALLEABLE IRON FITTINGS CO. NORTH WAYNE TOOL COMPANY PABCO PRODUCTS, INC. “Pabco” Products RUDISELL FOUNDRY COMPANY SLOAN VALVE COMPANY SOLARINE COMPANY TEMPLETON KENLY JACK CO. UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries Linde Air Products Division “Union” Carbide UNITED STATES STEEL EXPORT CORP. ♦ STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING 326 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 Every three seconds... There is a customer being served by one of our fully staffed branch offices in some commercially important world city every three seconds. This globe-wide service plus our unparalleled resources and 141 years of banking experience are available to you at Copra Prices. Copra prices inched higher most o July, reaching a peak of $191.50 per short ton c.i.f. West Coast for afloat copra. News of an imminent Korean truce coupled with sharply increased arrivals, forced the market lower. On July 31, spot ijopra was quoted at $177.50 no minal c.i.f. Pacific Coast. European buyers at the close were quoting $175.00 per long ton landed weights f.o.b. Manila for nearby, $170.00 for second-half August, $167.50 for September, and $165.00 for October shipment. Local prices in Manila for fresh copra resecada basis for 30-day delivery dropped from P33.50 at the end of June to P32.50 at the end of July, down Pl.00 per hundred kilos. The lowest price during the month was P31.75 per hundred kilos. Coconut Oil Prices. Coconut oil closed 13-3/4/ per pound f.o.b. tank cars Pacific Coast for immediate delivery unchanged, with sellers offering 13-1/2/ for August ship ment and 13/ for September shipment. Coconut oil for immediate shipment to the East Coast was quoted at 13-3/4/ per pound nominal unchanged from June 30. Copra Cake and Meal Prices. Copra cake and meal prices declined $5 per ton. At the end of July cake and meal prices were $67 to $70 per short ton c.i.f. West Coast. Copra Statistics Philippine Copra and Coconut Oil Exports (In long tons) Copra May United States............................................................ 22,946 Europe........................................................................ 6,603 Other countries......................................................... 3,021 25,178 10,150 4,213 Total................................................................... Coconut Oil United States........................................................ Other countries.................................................... 32,570 39,541 2,125 4,942 Total. 2,125 4,942 PHILIPPINE AND INDONESIAN COPRA EXPORTS Philippine Copra Exports* Indonesia Copra Exports Metric Tons Percentage Metric Tons Percentage January. . February. March. . . April........ May........ Total. February........ March............. 1953 38,672 50,168 48,745 36,536 48,144 1952 1953/1952 77,050 53.2% 84,884 45.6% 55,549 90.3% 55,405 88.0% 56,053 65.0% 59,876 80.4% 1953 14,230 18,884 19,559 17,258 5,854 17,266 1952 1953/1952 32,657 24,931 34,518 33,771 28,364 35,696 43.6% 75.5% 56.7% 51.1% 20.6% 48.4% 263,290 386,817 67.7% 93,051 189,937 49.0% * Includes coconut oil exports converted MANILA AND CEBU COPRA ARRIVALS* (In Metric Tons) Manila Cebu Manila & Cebu Percentage 1953 THE NATIONAL CITY BANK OF NEW YORK BRANCHES IN THE PHILIPPINES MANILA Main Branch: Juan Luna Street Port Area Branch: 13th Street PAMPANGA: Clark Field CEBU: Cebu City April. May. JuFy. 9,202 10,541 13,620 1953 1952 1953 1952 1953-1952 12,682 16,303 21,130 31,078 68.0% 13,029 11,705 20,770 28,275 73.5% 17,991 10,092 24,888 24,325 102.3% 13,380 9,587 21,685 21,998 98.6% 10,164 14,018 19,366 29,541 65.6% 14,462 15,581 25,003 30,389 82.0% 18,264*** 16,914 31,884 35,355 90.2% Total.... 64,754_____ 106,761 99,97J 94,200 164,726 200,961 82.0% 'Manifested arrivals only. Unmanifested arrivals are usually estimated at 10% of manifested. ’Does not include 1.800 tons of damaged copra from the SS Anthony. •Preliminary. Production and Future Prospects. Production increased slowly early in July but soared late in the month to a new peak for 1953. Both Manila and Cebu arrivals hit new highs as copra production in the Philippines was estimated up 65% from the record low levels in May. A further rise in production and in arrivals in August and early September is expected. Clarification of the U. S. Commodity Credit Corpora tion, 1953-1954 package cottonseed support-program indi cates that United States oils are likely to be stabilized, but at levels 15%-20% below last year. The big question now is what the CCC plans to do with its huge stocks of cottonseed oil acquired under the 1952-1953 program. August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 327 If the United States tries to move this oil to Europe as a give-away or at greatly reduced prices, European demand for Philippine copra may be reduced substantially. As a rule there is a strong seasonal upturn in copra prices from late August and early September to late October and early November. The present outlook for more or less stable United States oil prices would be conducive to such a move. However uncertainties in regard to CCC disposi tion of its cottonseed oil stocks after August 31, make prognostication of future copra prices extremely perilous. Prices in August will be under continued pressure from heavy production and arrivals. The real threat to the copra market however—the sword of Damocles—will be the prodigious quantities of cottonseed oil in the hands of United States Government. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from June 15 to July 15 during which prices went slightly lower than the preceding month and reached a new low for the year. Both copra and raw nut prices were at their low and at parity during the period. There was no need to pay premiums to divert nuts from copra to desiccated coconut due mainly to the plen tiful supply. Harvests were at near peak and the bad effects of the September-October typhoons had ended. The prospects of equally good harvests will continue through the next two months or to about mid-September. Due partly to lower-cost nuts, a plentiful supply, and an increased demand in the United States, producers operated nearer plant-capacity than they have for the last 6 months. This reflects a much easier tone in the industry and suggests that 1953 might be the end of- a very difficult-period for the industry. It might be pointed out that although the industry faces a brighter future, today’s statistics, which follow, show only 6 major producers, whereas before there were 9. The loss of three is mainly due to severe competition and a very unstable copra and nut market during the last two years. Last month’s shipments show an increase of about 40% over the previous month. The June statistics are as follows: Shippers Pounds Franklin Baker Co................................................................. 4,221,400 Blue Bar Coconut Company......... 1,085,740 Peter Paul Philippines Corporation................................. 1,717,500 Red V Coconut Products, Ltd........................................... 2,998,300 Sun Ripe Coconut Products, Inc...................................... 268,000 Cooperative Coconut Products, Inc................................. 70,000 Total.................................... 10,360,940 B. F. Goodrich SILVERTOWN Wide, road-level tread wears slowly. Strong, rubber-sealed cords absorb road shock, lengthen tire life. Low-pressure construction cushions your ride for comfort. B. F. Goodrich Silvertowns cost you less per mile. Remember—B. F. Goodrich, First in Rubber —makes the tires that arc best in the long run. Watch for the friendly Goodrich sign — Sugar By S. Jamieson Secre tary-T reas urer Philippine Sugar Association THIS review covers the period July 1 to July 31, 1953. New York Market. The outstanding events of the market for the period under review were the increase in the price of refined on July 20 from 8.75/ to 8.85/, and the increase in the United States consumption quota from 7,900,000 to 8,000,000 short tons on July 22. Prior to the increase in the price of refined, there had been on the whole a quiet market, with sellers generally holding for 6.45/ and buyers indicating 6.40/, and business being done, mainly in unsold Philippine afloats and in prompt MORE THAN 200 DEALERS THROUGHOUT THE PHILIPPINES 328 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 NOW IN OPERATION Security Delivery Service A Registered. Philippine Corp. 613 M. H. del Pilar Tel. 5-63-90 COMPLETE AIR-GROUND COLLECTION & DELIVERY SERVICE Payroll Deliveries—Gold Pickups Daily Collections—Provincial Trips DETAILS ON REQUEST—CONFIDENTIAL Directors: F. S. Tcnny, D. 0. Gunn, Jose Razon, A. H. Henderson, V. G. Miller. Still the Only Complete and Authentic Guide to U.S.A. Manufacturers GET YOUR OFFICE COPY NOW! THOMAS' REGISTER (1952 Edition — the Latest) 4 Big Volumes, Including Index — ^6029 YOUR BUSINESS LIBRARY ALSO NEEDS— The World Almanac and book of facts for 1953 P 4.00 Everyday Reference Library, 1951 ............................ 42.90 The Lincoln Library of Essential Information, 1951 56.70 Commercial Directory of the Philippines, 1953 ...... 25.00 Yearbook of International Organizations, 1951-52 .... 18.90 Philippine Mining Yearbook, 1952 (Latest) .......... 5.00 PHILIPPINE EDUUHON CO 1104 CASTILLEJOS MANILA P. O. BOX 620 TELEPHONE 3-22-51 Portos, at prices in between. Upon the announcement of their price increase, refiners seemed disposed to buy freely at 6.45/ and a few transactions took place at that figure, but the fact that a quota increase was announced only two days after the refiners’ announcement served notice to the Trade that Washington wduld act swiftly when necessary to keep prices within bounds. The market dropped a few points and at the end of the month appeared to have stab ilized itself at 6.40/, at which price buyers and sellers both seemed interested. Reported sales of actuals totalled approximately 191,200 long tons. Exchange operations for the period approximated 167,200 tons. Deliveries of refined for the period June 28 to July 25 totalled 748,098 short tons, as compared with 670,578 short tons for June, 1953, and 673,406 short tons for July, 1952. Distribution for the year to July 18, 1953, was 4,394,359 short tons (raw value), against 4,525,869 for the same period last year. On June 20 refiners stocks were at 277,990 long tons, high for the year, as compared with 229,175 tons for the same date last year. Opening and closing quotations on the No. 6 Contract were as follows: September July 1 5.94^ July 31 5.88 November Jan. 1954 March 5.95f! ------ 5.56j! 5.91 5.78f! 5.57 May July 5.62»! 5.72j! 5.60 5.71 Average spot price for July was 5.912174. Average spot price January 1 to July 31 was 5.795405. Local Market, (a) Domestic Sugar. The market was firmer and the base price advanced from P15.00 to P 15.30 per picul ex warehouse for mill run 97°. (b) Export Sugar. The local market continued firm and had reached P 15.80 when the announcement of the increase in the United States consumption-quota was made. Thereafter, prices declined to P15.50, but special buyers appeared willing to pay P0.10 per picul more, pre sumably to fill space on their vessels. The main buying season is about over. The principal buyers are now ar ranging their clean-up shipments and have practically stopped their day-to-day buying of small lots and are now interested only in sizeable parcels when available. Total export shipments for the month are estimated at 80,697 long tons, making a total of 654,642 long tons against the 1952-53 crop, and a total of 534,642 long tons for the period January 1 to July 31. New York reports show Philippine arrivals for the period January 1 to July 18 of 512,059 long tons, as against 506,825 long tons for the same period in 1952. 1952- 53 Milling. Four mills are still grinding for the 1952-53 crop. The latest estimate of production is 1,139,365 short tons, or a shortage of 92,635 short tons in the combined United States and domestic quotas. 1953- 54 Crop. Weather conditions continue favor able and a preliminary survey indicates that the crop may exceed the quantity required for the United States and domestic quotas, but it is realized that it is too early for a reliable forecast. The Philippine Sugar Association ex pects to issue an estimate toward the end of August. General. The International Sugar Conference has been in session in London since July 13. The Philippines is represented by a delegation comprising the Honorable Jose E. Romero, Minister, Philippine Legation in London, Chairman, and Mr. Salvador B. Oliveros, Acting General Manager, Philippine Sugar Institute, Senator Jose C. Locsin, and Dr. Jose J. Mirasol, Executive Officer of the National Federation of Sugarcane Planters, as members, and Mr. G. G. Gordon as adviser. The delegation is mak ing a strong bid for a modest quota in the world market, in which it seems to be receiving some support from the representatives of the United States beet and the Hawai ian sugar industries. There will undoubtedly be strong opposition from other quarters, but the request is reasonAugust, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 329 able and it is hoped that our right to participate in the world market will be accorded due recognition by the Con ference. Manila Hemp By J. Deane Conrad President, Conrad & Co,, Inc. DURING the month of July prices in New York for Davao fiber declined approximately 1-1/2/ to 1-3/4/ per pound. The market was dull at the close of the month with buyers reluctant to take on supplies, but there was small business done on the basis of Davao I 22/ and Davao JI 21-1/4/. In London, prices for Davao fiber declined $35 to $40 per ton for grades I, JI, and G. There has been a smaller decrease in values for the lower grades of non-Davao fiber at the close of the month, which reflects a falling off of approximately $15 per ton. In the Philippines, the Davao market has fallen off considerably during the month, due to the continued decline in New York, London, and Japan. Actual business has been done at ?4 per picul below the opening prices in Davao on July 1, and exporters have found it necessary to reduce their prices further to keep in line with the decline in consuming markets. In non-Davao fiber, prices for the medium and higher grades have been brought down con siderably as a result of the decline in values on the New York, London, and Japan markets. While prices for the lower grades declined a little during the month, we find that production of K and below is falling off. We have not yet received the June, 1953, export figures but we understand that these were approximately 63,500 bales. This compares with exports of 74,761 bales in May. The baling figures for the period January to June inclusive are as detailed below. Balings—January/ June inclusive 1953 1952 1951 1950 1949 Davao.............-.................... 251,839 264,451 254,895 166,038 112,701 Albay, Camarines, and Sorsogon............................ 114,065 86,426 148,245 89,343 63,449 Leyte and Samar.............. 59,248 76,098 97,887 58,436 60,853 All other non-Davao......... 51,736 41,804 55,813 40,277 44,638 Total.................................. 476,888 468,779 556,840 354,094 281,641 Tobacco By Luis A. Pujalte Exporter, Importer, and Wholesale Dealer in Leaf Tobacco BUYING of the new crop in Isabela and Cagayan is proceeding cautiously and the situation as between buyers and sellers is tense. The market is almost depleted of stocks and Spain will require its usual share of the crop, as will the other smaller purchasing countries. Local manufacturers will have larger requirements than in the past because of the restrictions on imports of Virginia leaf. Prices have risen and will rise more because the demand is great. ’Unfortunately the crop is quite poor; dealers are paying high prices for a large proportion of poor grade tobacco. This is a farmers’ year. Dealers and exporters may yet find themselves in a fix. Imports By S. Schmelkes Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units: PASIG RIVER BODEGAS GENERAL BONDED WAREHOUSES ¥ SOUTHWESTERN SUGAR & MOLASSES CO. (FAR EAST), INC. MOLASSES BUYER 145 Muelle de Binondo Tel. 2-63-10 Prescript! \idence... Thru the glass doors of BOIE, you can enter with a sure step and a confident smile. People who go to Boie know that when they hand over the slip of paper to the man behind the prescription counter, it will be filled with utmost precision and care. For BOIE not only dispenses powders and syrups and liquids; it also bears the seal of a reputable name backed by 122 years of integrity and experience. It is their business to live up to it. It is their duty to maintain confidence. Philippine American Drug Co. (BOTICA BOIE) 102-104 Escolta, Corner T. Pinpin, Manila CEBU * ILOILO * LEGASPI * DAVAO 330 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 THE ROUTE OF THE BEARS Serving THE PHILIPPINES JAPAN HONGKONG U S. WEST COAST PORTS FAST - REGULAR - DEPENDABLE UNITED STATES LINES, INC. GENERAL AGENTS 33601 33602 33603 33604 TELS. J PORT AREA MANILA Commodities: JunE, 1953 June, 1952 Automotive (Total)................................... 1,585,130 1,344,193 Automobiles............................................. 254,247 111,630 935 Auto Accessories..................................... 2,184 277,244 Auto Parts................................................ 277,870 Bicycles...................................................... 7,821 60,256 749 Trucks........................................................ 73,719 Truck Chassis................................* . . . . 650,882 285,542 Truck Parts.............................................. 45,395 163,755 Building Materials (Total)..................... 9,732,469 8,483,456 Board, Fibre............................................ 94,955 80,801 6,360,714 Cement....................................................... 5,485,552 Glass, Window........................................ 268,488 608,647 Gypsum..................................................... — — Chemicals (Total)...................................... 8,753,148 4,215,970 Caustic, Soda.......................................... 652,958 273,782 Explosives (Total)..................................... — — Firearms (Total)......................................... 23,802 7,152 Ammunition.............................................. 22,778 6,938 Hardware (Total)....................................... 4,869,156 3,367,424 Household (Total)...................................... 1,640,252 894,162 Machinery (Total)..................................... 2,320,514 2,076,691 Metals (Total)............................................ 10,214,653 8,804,024 Petroleum Products (Total).................. 83,885,645 49,667,708 Radios (Total)............................................ 51,198 22,260 Rubber Goods (Total)............................. 1,281,639 536,155 ---------:--Beverages, Misc. Alcoholic..................... 9,777 2,025 Foodstuffs (Total Kilos).......................... 28,179,940 20,218,961 Foodstuffs, Fresh (Total)....................... 22,445 131,524 Apples........................................... ............. 6,981 1,000 Oranges....................................................... 11,807 9,237 Onions......................................................... — 94,943 Potatoes..................................................... — 2,500 Foodstuffs, Dry Packaged (Total).... 45,381 19,620 Foodstuffs, Canned (Total).................... 597,647 217,853 Sardines..................................................... 7,789 18,140 Milk, Evaporated................................... 252,530 105,290 Foodstuffs, Bulk (Total)......................... 478,473 315,662 Rice............................................................. Wheat Flour............................................ 396,964 283,058 Foodstuffs, Preserved (Total)............... 3,751 723 NEUSS, HESSLER & CO., INC. 75 WORTH ST., NEW YORK, N.Y. FOREMOST SUPPLIERS OF TEXTILE FABRICS THROUGHOUT THE WORLD for 86 years and FOREMOST SUPPLIERS OF TEXTILES TO THE PHILIPPINES FOR 51 YEARS. ♦ • FAUST SUITINGS • FLATTERY PRINTS • WALDORF PERCALES • SEINE TWINE & YARNS • AGUILA DENIMS • CARABELA CHAMBRAYS • COMMANDER BROADCLOTH • COTTON & RAYON POUND-GOODS -------------------------- MANILA OFFICE:---------------------------304 NUEVA STREET CORNER DASMARlfiAS MANILA PHONE 3-99-71 Cable Address “NEHESCO” Bottling, Misc. (Total)............................ 1,128,968 Cleansing and Laundry (Total)........... 93,509 Entertainment Equipment (Total).... 6,728 Livestock-bulbs-seeds (Total)................ 277;820 Medical (Total).......................................... 840,156 Musical (Total)........................................... 144,794 Office Equipment (Total)........................ 68,139 Office Supplies (Total)............................. 78,448 Paper (Total).............................................. 6,163,672 Photographic (Total)................................. 68,588 Raw Materials (Total)............................. 4,034,805 Sporting Goods (Total)........................... 15,020 Stationery (Total)...................................... 689,970 Tobacco (Total)....................... .............. 1,748,772 Chucheria (Total)...................................... 106,408 Clothing and Apparel (Total)............... 640,385 Cosmetics....................................................... 69,120 Fabrics (Total)............................................ 771,245 Jewelry (Total)............................................ 8 Leather........................................................... 264,774 Textiles (Total).......................................... 4,274,641 Twine (Total).............................................. 92,252 Toys (Total)................................................. 6.671 General Merchandise (Total)................ 673,551 Non-Commercial Shipments (Total). . 89,298 Advertising Materials, Etc. (Total)... 19,052 626,108 43,007 20,330 40,373 284,510 23,842 89,927 121,521 4,233,121 56,412 1,070,247 6,895 350,749 1,015,919 22,141 308,447 11,876 1,236,723 305 47,227 2,044,187 34,767 3,784 505,26B 61,065 58,590 Food Products By W. E. M. Saul Manager, Food Products Department Marsman &• Company, Inc. Trading Division THE life of the Import Control Commission expired on June 30, 1953, and effective July 1, 1953, the Central Bank of the Philippines took over the con trol of importations by means of licensing foreign exchange. August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 331 Flour arrivals during the month of July have been fair and local selling prices are within the government ceilings. Heavy flour arrivals can be expected during August and September which should assist building up some reserves. The entire 1,000,000 50-lb. bags made available to the Philippines fsom Greece were purchased. The Price Stabilization Corporation (PRISCO) obtained a master license covering some 400,000 50-lb. bags of Amer ican flour which enabled the purchase of the entire 1,000,000 bags of American flour made available to the Philip pines for shipment at the old IWA (International Wheat Agreement) prices. Arrivals of all kinds of milk during the month of July were substantial. At present importers carry a fair reserve of evaporated, natural, condensed, and powdered milks. Local selling prices showed a further downward trend and prices are well below government ceilings. The Central Bank has classified all kinds of milk as “highly essential” and under the circumstances it can be expected that suffi cient foreign exchange will be made available to importers to avoid any shortage of this very essential food item during the second semester of 1953. Although there was the expected delay in the alloca tion of foreign exchange to importers, fortunately there was no local shortage of imported prime necessities,' such as canned fish (anchovies, pilchards, and herring) andj canned meats (corned beef, Vienna sausage, potted meat, and lun cheon meat), since fair quantities have been brought in regularly. Under the new Central Bank rulings, macke rel, herring, and squid are classified under essential con sumer goods and are also exempt from the 17% exchange tax. With the addition of these three types of low-priced canned fish, the ever-present fear of a sardine shortage during the U. S. West Coast fishing season (August and October) will be allayed somewhat, as these three can replace sardines to some extent. Green coffee, powdered coffee, and cocoa powder, as well as canned vegetables have arrived in sufficient quan tities and neither is there any shortage of canned che’ese and fresh butter. Local fresh fruits and vegetables have been plentiful. It is gratifying to find good qualities of locally roasted and ground coffee, jams, jellies, ham, bacon, and sausages, though their prices are still beyond the reach of the masses. Textiles By W. V. Saussotte General Manager Neuss, Hesslein Co., Inc. THE New York market was unchanged during July, meaning that there has been little change for approxi mately the last 90 days. Local prices also remained steady; the prospect of future shortages due to the curtailment of textile imports under the new regulations of the Central Bank was offset by a drop in agricultural purchasing power, so that while local prices remained steady, there was a marked slow-down in the movement of goods during July. The local market is confronted with a rather odd situa tion wherein one agency of the Government regards tex tiles as essential and simultaneously another agency of the Government has declared them to be non-essential. By Presidential Executive Order, the Price Administra tion Board has for the past two years or more regarded the less expensive staple textile items, which cover over 50% of local consumption, as essential and have imposed price-ceilings at the importing, wholesaling, and retailing levels. However, under the new Central Banking rules and regulations relating to imports, only one single textile item, namely, blue denim, is declared to be essential. Why m a.d comi'iu nt PHiupriffi Hemp Exporters Steamship Agents 207 Myers Building Port Area, Manila —Ready to help you plan and create business literature with a team you can trust to turn out prestige-building jobs: GOOD, OLD LETTERPRESS, for typographic excellence and clarity of press work—WIDE SELECTION OF TYPE-FACES—A TASTE FOR ATTRACTIVE COLORS—and OUR PRINTING KNOW-HOW OF 54 YEARS. Printing Headquarters Since 1899 (A DIVISION OF PHILIPPINE EDUCATION CO.) 1104 CastiUejos, Manila 332 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 ★ LUZON STEVEIIORING COMPANY, INC. Manila ★ It Doesn 't COST to AIR-AWIRT/SI It PAYS! Idzhh ~ The B fwadcwTmg ^OHqoc&uj bzmb| BZH this particular item alone was singled out, is a question which confronts the local trade and for which there seems to be no answer. On the other hand, likewise there is no answer to the conflicting classifications of textiles by the Price Administration Board and the Central Bank. Arrivals'from the United States totalled 26,226 pack ages, which is the largest monthly arrival for well over a year, the figure being somewhat exaggerated due to the abnormally large imports of cotton knitting yarn amount ing to over 4,000 packages; deducting this figure, July arrivals were “normal”. Included were 10,529 packages of cotton piece goods, 3,898 packages of rayon piece goods, 3,019 packages of cotton remnants, and 1,921 packages of rayon remnants. In addition to the 4,093 packages of yam, there were 805 packages of cotton twine, 789 packages of sewing thread, and 365 packages of cotton duck. Arrivals from countries other than the United States totalled 3,372 packages. Included were 1,023 packages from Hongkong, of which about half consisted of yam, 1,098 packages from Japan, which included 720 packages of cotton piece goods and 272 packages of jute sugar bags, and 957 packages from India, consisting entirely of jute sugar bags and jute cloth. 294 packages arrived from Europe consisting almost entirely of cotton thread. Legislation, Executive Orders, and Court Decisions By Robert Janda Ross, Selph, Carrascoso & Janda A NUMBER of cases interesting to the business com munity have been decided since the decisions reported in the July issue. In the case of University of Sto. Tomas vs. Board of Tax Appeals, L-5701, the validity of Executive Order No. 401, creating the Board of Tax Appeals, was questioned. Section 8 of the Order gave the Board exclusive jurisdic tion to hear and decide all appeals from decisions of the Collector of Internal Revenue, and Section 20 provided that no judicial proceedings involving matters arising under the National Internal Revenue Code should be maintained until an appeal had previously been filed with the Board of Tax Appeals and disposed of ifi accordance with the provisions thereof. The Court held that the Board of Tax Appeals was formed by the President by virtue of the provisions of the Reorganization Act (R.A. 422) and that consequently, insofar as the Executive Order went beyond the authority granted by the President in the Reorganization Act, the Order was null and void. The Court found that the Reorganization Act gave the President no power to affect the jurisdiction of the courts and that consequently, the sections ‘of the Order limiting the right of a taxpayer to access to the courts and those providing for an MOTOR SERVICE CO, INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 333 appeal to the Supreme Court were null and void. The Court upheld the validity of the Board of Tax Appeals, however, as an administrative agency. In People vs. William H. Quasha, L-6055, the Court stated that Article XIV, Section 8, of the Constitution, providing for 60% ownership by citizens of the Philippines of public utilities, would not prevent the organization of a Philippine corporation for the purpose of engaging in a public utility business, even though the requisite percent age of stock was not owned by Philippine citizens, the Court stating that the constitutional provision did not operate on the corporation until it secured a franchise and prepared to actually engage in a public utility business. In the case of Nazario Trillana vs. Quezon College, Inc., L-5003, the Court held that a conditional subscrip tion to stock of a corporation was not binding upon the subscriber until notice of acceptance of the condition was communicated to him by the corporation. In the case of Lingayen Gulf Electric Power Company, Inc. vs. Ireneo Baltazar, L-6,344, the Court held Section 40 of the Corporation Law requiring that notice of a call for payment of a subscription to a stock corporation be pub lished, was mandatory and that a delinquent subscriber of a solvent corporation could not be sued for the unpaid part of his subscription until publication had been made, even though he may have been given actual notice of the call. The Court stated that the rule is to the contrary if the corporation is insolvent, in which case no publication would be necessary, the unpaid portion of the subscription being immediately due and collectible. The Court further held that the unanimous consent of the stockholders is necessary to release a subscriber from his subscription contract. In the case of Sofronio G. Alcantara, et al., vs. Manila Electric Company, et al., L-4555, the Court in determining the damages- due for negligence resulting in death of a man whose life expectancy the Court found on the basis of the mortality table to be 28 years and who was in good health, held that that the decision of the trial court allowing damages equal to the salary the deceased would have expected to receive during the four (4) years after his death, including a large raise that he might have antici pated during the fourth year, was fair and reasonable. The Court held, however, that the amount of an anticipated bonus need not be included in the basis on which the dam ages were determined as a bonus cannot be claimed as a matter of right. In the case of Ng Mee, et al., vs. Springfield Fire fie Marine Insurance Co., CA-G. R. Nos. 9624-R and 9625-R, the Second Division of the Court of Appeals had before it a fire insurance policy expressly excluding from coverage losses directly or indirectly, proximately or remotely, occasioned by or contributed to by war, invasion, etc., and a further provision that— “Any loss or damage happening during the existence of abnormal conditions (whether physical or otherwise), directly or indirectly, proximately or remotely, occasioned by or controlled to by or arising AGENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 American Steamship Agencies, Inc. Manila and Tokyo Cable Address: 212 Myers Bldg. “AMERSIIIP ” Port Area Manila PAREB J. P. HEILBRONN CO.HW ESTABLISHED 1909 ■ ESTABLISHED 1909 PIONEER PAPER DEALERS IN THE PHILIPPINES PAPER and Paper Products of All Kinds Office and School Supplies Printing and Lithographic Machinery and Supplies Surveying and Drafting Material Genuine DU PONT Cellophane, Cellulose Sponges, Cellulose Bands (Bottle Caps), Cellulose Yarn Esterbrook Fountain Pens, Push Pencils and Desk Sets FIR-TEX Building Board and Insulating Board Bodega Equipment—Barrett Lift Trucks and Portable Elevators Office and Sales Room: 575 Atlanta, Port Area, Manila ✓—;- - - - - - . Doing a Fine Job! CATERPILLAR BEG. U.S. PIT. Offltt Throughout the islands today, “CATERPILLAR” products are doing a fine job—helping in the re-habilitation of the Philippines. These yellow machines are in many different kinds of services. But wherever they are called upon to serve, you can count on them to do their jobs staunchly and dependably. KOPPEL (PHILIPPINES), INC. PHILIPPINE REPRESENTATIVES: PRESSED STEEL CAR CO., INC. BOSTON & 23rd STREETS, PORT AREA •• TEL. 3-37-53 Branches; BACOLOD. ILOILO .CEBU .DAVAO .COTABATO’ZAMBOANGA ✓ 334 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. HEMP AND COPRA EXPORTERS STEAMSHIP AGENTS ¥ 206 Myers Building Port Area, Manila, P. I. ¥ BRANCHESi Davao • Tacloban • Cebu • Tabaco MARCHANT CALCULATOR ' Wherever speed and accuracy are required, you can always count on a MARCHANT to help you do the job right. Capable of operating at speeds ranging up to twice those of any other calculator, it’s the only Amer ican calculator with dials for verifying keyboard entry. ERLANGER & GALINGER, INC. 123 T. Pinpin off Escolta Tel. 3-21-61 out of or in connection with any of the said occurrences shall be deemed to be loss or damage which is not covered by this insurance, except to the extent that the Insured shall prove that such loss or damage hap pened independently of the existence of such abnormal conditions.” The fire in question occurred during the confusion incident to the occupation of Lucena by the Japanese forces on December 27, 1941. Most of the inhabitants, including the firemen and their equipment, had left the town and the Court held that on the facts, the invasion and war must be deemed to have been a contributing cause to the fire and that, consequently, the fire insurance company was not liable on the policy. Philippine Safety Council By Frank S. Tenny Founder and Executive Director CURRENT safety activities are most intensive, almost feverish in both quantity and scope. A brief partial summary follows. Two large firms have begun company-wide safety programs recently. The new Fabar Automotive Service Center is giving close attention to training all classes of employees in accident-prevention techniques. This in cludes elements of fire protection. The 7-Up Bottling Com pany has started a driver training-traffic safety program throughout its plants in Paranaque, Dagupan, San Pablo, and San Fernando, Pampanga. Both programs have sup port of top management and are being directed by the Council’s technical staff. Considerable interest has been evinced, as might have been expected, in the Council’s contemplated legal action to require theater owners to comply with pertinent ordin ances and fire regulations prohibiting overcrowding of aisles and blocking of exits. Due to the varied interest involved, this matter may become a cause celebre when it reaches the courts. The Fire Prevention Board of the Office of the Pres ident is now preparing literature for distribution to over 2,000 mayors, district engineers, police and fire chiefs urging them to form local volunteer fire-fighting units in their towns. This plan will be followed up. The Council is pleased to note a new interest in safety and accident prevention being shown by certain govern ment entities. How much of this may be attributed to the election is not known, but it is in the public interest and therefore deserves support. Several policies long and loudly advocated by the Council for several years are now being activated. The Security Delivery Service, Inc., has taken over all payroll-delivery functions from the Council. The new organization is now in operation. Inquiries are invited. Nearly 200 additional taxicabs came into “the national safety movement” recently when the Manila Taxicabs Association accepted two new company members, making a total of 15. About 86% of the taxis operating in the Manila area are now enrolled. JOHN E. CURTIN ANNOUNCES THE ESTABLISHMENT OF THE METROPOLITAN INVESTIGATIVE AGENCY, INC. 2147 Azcarraga Tel. 3-25-19 PILFERAGE, EMBEZZLEMENT AND ARSON INVESTIGATIONS August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 335 COST OF LIVING PRICE INDEX FOR WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1948 TO 1952* (1941 = 100) Bureau of the Census and Statistics, Manila i Average number of peraona in a family = 4.9 membera. ♦For explanatory note, aee the August, 1951, Journal. 1948 All (100) (63.43) House | C|oth. Rent* ing (11.96) | (2.04) Fuel, Light and Water (7.73) ^Miscel laneous |(14.84) ing Power January............ 390.7 427.6 453.9 224.5 304.6 249.9 .2560 February.......... 369.8 394.0 453.9 223.8 301.1 254.4 .2708 March............... 349.4 361.0 453.9 214.6 308.1 255.9 . 2862 April.................. 354.6 374.1 453.9 209.4 289.7 254.8J .2820 May................... 349.8 360.2 453.9 214.2 289.7 271.6i .2859 June................... 354.3 370.4 453.9 205.2 283.2 262.9i .2823 July.................... 356.4 374.2 453.9 201.3 281.6 262.4 .2806 August.............. 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September.... 370.6 397.2 453.9 199.2 279.6 260.6i .2698 October............. 374.9 404.0 453.9 204.81 283.2 257.9i .2668 November........ 368.7 394.4 453.9 202.01 281.6 258.7 .2712 December........ 365.9 389.9 453.9 202.0 282.4 258.9i .2732 1949 343.7 357.9 453.9 198.4 272.9 251.1 .2910 January............ 363.8 386.8 453.9 202.0 279.0 258.9i r2757 February.......... 343.8 355.5 453.9 203.01 277.5 258.9i .2900 March............... 345.3 358.2 453.9 202.0 276.3 258.5■ .2896 April.................. 348.7 362.6 453.9 197.6 287.5 257.1 .2868 May................... 348.8 362.8 453.9 197.2 287.5 257.1 .2869 June................... 349.0 362.9 453.9 203.9) 287.5 257.2 .2865 July................... 351.7 374.0 453.9 194.2 265.8 240.5■ .2844 August.............. 337.5 351.2 453.9 196.3 266.6 241.2 .2963 September.... 333.6 345.1 453.9 190.31 264.8 243.1 .2998 October............. 332.9 343.3 453.9 .199.9 264.8 245.0i .3004 November.... 339.6 356.1 453.9 191.1 258.4 239.8 .2945 December........ 329.6 335.9 453.9 202.91 259.5 256.2 .3035 1950 337.5 333.7 453.9 270.'r 252.0 313.8 .2963 January............ 332.3 336.8 453.9 238.01 253.1 269.3 .3010 February.......... 336.9 340.2 453.9 233.3 257.8 284.1 .2969 March............... 339.0 341.4 453.9 236.7 257.8 292.6> .2950 April.................. 331.8 328.6 453.9 237.7 252.9 301.2 .3015 May................... 320.2 308.6 453.9 244.7 249.7 309.1 .3123 June.................. 323.1 310.9 453.9 243.5 249.7 319.1 .3095 July................... 332.0 322.4 453.9 252.6 249.7 328.7 .3012 August.............. 334.4 325.9 453.9 258.7 251.1 328.4 .2990 September.... 341.3 335.0 453.9 317.4 252.5 327.5i .2930 October............. 352.8 351.1 453.9 337.3 249.7 334.5> .2835 November. . . . 354.1 353.2 453.9 322.81 249.7 335.9i .2825 December........ 352.2 350.5 453.9 325.2 249.7 334.8i .2836 1951 359.4 361.5 453.9 365.3 248.0 331.5 .2782 January............ 355.2 355.0 453.9 331.5 249.7 334.6i .2819 February.......... 358.4 359.8 453.9 342.8 249.7 334.4 .2790 March............... 352.4 349.3 453.9 379.4 248.8 334.3i .2838 April.................. 361.2 362.6 453.9 398. ( 247.5 334.7' .2769 May................... 365.0 367.0 453.9 410.4 247.5 339.3i .2740 June................... 367.8 372.0 453.9 399.! 247.5 337.7’ .2719 July................... 366.3 370.1 453.9 382. () 247.5 339. C) .2730 August.............. 365.1 371.4 453.9 354.0 247.5 329.1. .2739 September. . .. 363.0 369.0 453.9 356.4 247.5 325.4 .2755 October............ 358.1 361.1 453.9 350.4 247.5 326.7 .2793 November. . . . 351.1 351.1 453.9 343.8 247.5 323.3 .2848 December........ 349.0 348.9 453.9 335.2 247.5 319.4i .2865 1952 346.4 347.4 453.9 280.6 244.1 317.7 .2887 January............ 355.1 357.8 453.9 323.0 247.5 324.6 .2816 February.......... 348.0 349.8 453.9 282.9 243.4 318.3i .2874 March............... 344.3 345.1 453.9 273.7r 243.4 315.C) .2904 April.................. 342.7 342.7 453.9 276.1L 243.4 313.61 .2918 May.................. 342.2 341.8 453.9 279.9 243.4 313.8 .2922 June................... 345.4 346.3 453.9 277.1L 243.4 316.31 .2895 July................... 347.6 349.5 453.9 273. ( 243.4 318.3i .2877 Aug.................... 347.9 349.4 453.9 276.1 243.4 320.4r .2874 September. . .. 348.3 350.0 453.9 274.8J 243.4 320.5i .2871 October ....... 344.5 344.6 453.9 276.2 243.4 317.8 .2903 November.. .. 347.5 349.3 453.9 274.7 243.4 318.3) .2878 December. ... 347.9 348.9 453.9 271.5 247.5 321.1I .2874 1953 January........... 344.3 343.2 453.9 271.0 247.5 321.4 . 2904 February.......... 330.1 321.1 453.9 268.8 243.4 322. ■1 .3029 March............... 325.7 314.3 453.9 268.8 243.4 321.6i .3070 April.................. 324.7 312.8 453.9 268.4 243.4 321.3 .3080 May................. 321.3 307.8 453.9 268.2 243.4 320.01 .3112 June.................. 315.6 306.0 453.9 277.8J 243.4 287.7' .3169 July................. 316.0 311.0 453.9 277.8 243.4 269.5i .3165 found wherever fine cars travel ’*• HUM OF P«Or«CT,°* veedol MOTOR “the film of protection” TIDE WATER ASSOCIATED OIL COMPANY COLGATE-PALMOLIVE PHILIPPINES INC. MAKATI, RIZAL 336 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 “LET YOUR HAIR DOWN” tt sometimes devolves upon the Journal editor to laboriously com pose, on behalf of the Chamber, mes sages of congratulation, felicitation, and greeting, and he therefore read with especial appreciation, he tells us, an anecdote about the notedly laconic President Coolidge. This is the anecdote: A group of the Pres ident’s former college mates once addressed a message to him, as a Tr^ I AMON D CORE DRILLS CAPACITIES 500 FT.'TO 2250^FT.—7 8”7CORE GASOLINE • DIESEL • ELECTRIC • AIR-DRIVEN • Accessories are interchangeable with all other U.S. products. J. K. SMIT & SONS, INC. DIAMOND DRILL BITS "HARDHED 55” CORING BITS—REAMING SHELLS—CASING BITS “The only Diamond Drill Bit stocked in Manila for immediate shipment” THE EARNSHAWS Main Office: Cor. Tacoma & 2nd Sts. Port Area, Manila loyal alumnus, informing him of a certain convention that was being held and suggesting that he might wish to send greetings. He did. In due course they received a message in reply. It said: “Greetings.” (4't'he national economy moves in A mysterious ways its wonders to perform,” said the editor over a cup • CP is the only Diamond Drill serviced with spare parts in the Philippines. • Standard accessories — drill rods, casing, reaming and coring barrels, and other accessories stocked in Manila. Exclusive Agents: DOCKS & HONOLULU IRON WORKS Branch Offices at: Telephone: 3-35-41 Bacolod City P. 0. Box 282 Cebu City of coffee. “You will know I could never have made this up! Coming to the office this morning, in a taxie, the driver complained about the poor business he was doing,—‘No passengers,’ he said; ‘everybody rid ing in buses and jitneys.’ ‘Why should that be?’ I asked. ‘Well,’ he said, ‘of course, it’s toward the end of the month, but a big loss for me comes from the closing down of the I. C. C. Office.’ ‘How is that?’ I asked. ‘Well, those Import Con trol fellows, even the clerks, were always taking taxies. Now they are not there any more.’ ‘Too bad!’ I said, heh-heh! From the most un expected and innocent quarters come intimations of the immorality.” •yvTE received during the month an ** attractive booklet, illustrated in color, about the StandardVacuum Oil Company. Though this company became a corporate entity only in 1933, the name being derived from the two companies which form ed it,— the Standard Oil Company (New Jersey) and the SoconyVacuum Oil Company, Inc., the story of its real beginnings goes back to before the turn of the century when the clipper ships were sailing out of New York and other Atlantic ports with their case lots of kerosene for the new market that was China. Stanvac’s working force in the East ern Hemisphere totals over 40,000 of which some 97% are nationals of the country in which they work. The booklet was published, accord ing to Mr. E. C. Hostmann, emplo yee relations manager of Stanvac in the Philippines, because “the more people know about us, the better will be our chances for friendly re lationships with the many people with whom we do business.” ■yy7E appreciate the appreciation w of Mr. Francisco Ortigas, Jr., expressed in his letter received dur ing the month: “A million thanks for the editorial on ‘Planting Rice is Never Fun’. I appreciate your comments. I appreciate your observa tion in the penultimate paragraph. I’d really like to read more about ‘free enter prise’. My views may not be the best. Thanks for calling my attention to this. “I wish to stress the importance of re search. See what Japan has done lately— read the Manila Daily Bulletin of yester day (July 22). They now can raise two crops there by means of electricity! “Gracias again.” 'T'HE following ECAFE letter is one of mixed praise and com plaint such as we receive from time to time. We are sorry that delivery of the Journal is so irregular, but the blame must lie with the post office, either here or in Bangkok since, as we have said before, we have an August, 1953 AMERICAN CHAMBER OF COMMERCE JOURNAL 337 automatic addressing and mailing system which, in so far as our office is concerned, is practically accident proof : “In the course of its work on current econ omic documentation for Asia and* the Far East, our Secretariat has found your Journal a very useful source of reference. We find, however, that the supply of this Journal has been rather irregular, and we had occasion in the past to send reminders to you to supply us copies of certain issues which failed to reach us. The last two reminders were sent on 13 January, 1953, and 27 March, 1953, requesting you to send us a copy each of all published issues from Vol. 28, No. 9, Sep tember, 1952, onwards. Since then we have received Vol. 29, No. 1, January, 1953, No. 2, February, 1953, and No. 3, March, 1953. “The irregularity in the receipt of so in formative a journal as the American Cham ber of Commerce Journal inconveniences us very much and we should therefore be grateful if you would kindly ensure that the replacement copies of the following missing issues are sent us immediately on receipt of this letter and also ensure a prompt and regular supply of future issues. “Thanking you in advance for your co operation, “Yours faithfully, “(Sgd.) P. K. Garde "Librarian" We sent the missing issues, but what can we do about “ensuring and prompt and regular supply of future issues”? All we can do is put them in the mail and hope for the best. The editor showed us the following letter he received from an old contri butor to and reader of the pre-war Philippine ' Magazine: “Dear Mr. H— “I just went through the July, 1953, issue of the American Chamber of Commerce Journal which, I find, you edit. The ‘Let Your Hair Down’ column reminds me of the famous ‘Four o’Clock’ column of the pre-war Philippine Magazine which you published. My friends and I consider the Philippine Magazine to have been the finest yet edited in the country. We are wondering whether it could not be revived under your editorship. “I really am wondering whether that would be possible. Of course, I can see that you must have your hands full with the Journal and that you must be earning much more than you could hope to get from a magazine like the old PM. But you ren dered the Philippines great service by en couraging the preservation of what is truly Philippine culture. We need that again more than ever. What do you think? “I don’t know if you are interested, but when I wrote for the PM before the war I was a classroom teacher. Happily for me, I am now a district supervisor. “My best wishes to you. Here’s to the revival of the Philippine Magazine! “Sincerely, "Bonifacio P. Sibayan “Tublay, Benguet “Mountain Province” The editor did not show us his reply to Mr. Sibayan but he told us that he saw very little chance for a publication like the pre-war Philip pine Magazine under present con ditions of costs and advertising support. If the enterprise found backers, they would have to be ready to invest, and possibly lose money over some considerable period of time, he said. By co-incidence, the following “piece”, also concerning the Philip pine Magazine, was written a month or two ago, but was crowded out of this column until now. qpHE Journal of East Asiatic A Studies, a scholarly quarterly published since last year under the editorship of Dr. Charles O. Houston, Jr., by the University of Manila contains in its latest issue (Vol. II, No. 2) “A Preliminary Bibliography SINGLY OR IN COMBINATION THESE AC & P FACILITIES ARE AVAILABLE TO PHILIPPINE INDUSTRY— ENGINEERING AND CONSTRUCTION FACILITIES Design, fabrication, erection and con struction of Steel Bridges and Buildings; Light, Medium and Heavy Structures; Penstocks, Tanks, Bins and Mine Structures; Industrial Equipment; Re inforced Concrete Structures, Founda tions, Piling, Wharves, Piers, Tunnels. Marine Works, etc. MANUFACTURING FACILITIES Machine Shops for Construction and Repair Jobs; Structural Steel Fabricat ing Plant; Foundry for Cast Iron. Brass and Bronze; Marine Repair Shops. Welding Shop. "KNOW-HOW" BACKED BY EXPERIENCE SINCE 1905 ATLANTIC, GULF & PACIFIC CO. OF MANILA ENGINEERS * CONTRACTORS ★ MANUFACTURERS * DISTRIBUTORS Executive Offices—Engineering Div. Structural & Machine Shops Merchandise Sales Divis.on Barrio Punta, Santa Ana, Manila Robert Dollar Bldg'., Port Area, Manila Phones: 6-75-31—6-75-32—6-75-33 Phones: 3-36-61 • 3-36-62 of Philippine Anthropology, Linguis tics, Ethnology, and Archeology.” It is divided into two parts, and under “I, Older Works,” 242 titles are listed, and under “II, More Recent Works,” 579 titles. Of the latter, 143, or nearly one-fourth, are citations of articles, etc., pub lished in the pre-war Philippine Magazine of which the present editor of the American Chamber of Commerce Journal was the editor and publisher. “I am really stirred by this,” he said, “especially as the Magazine was not a scientific publication but devoted itself to matters of general cultural, literary, and political interests. Could there WOOD PRESERVING PLANT Pressure Creosoting of Structural Tim ber, Poles, Piles, X’Anns, Posts. (Member, American Wood Pieservers Association). MERCHAND1S1 NG FAC1L1T1ES Representing over 30 major U.S. Manu facturers of Industrial, Agricultural and Engineering Equipment ami Supplies . . . ■ including Air Conditioning. Refrigera tion and Ventilation: Power and Light Plants: Irrigation. Sewage. Drainage and Flood Control Systems; Indu-trial Machinery Equipment, etc. 338 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1953 be anything in the world, that would make an editor of any periodical happier than the publication of such a list of material published by him, thus estimated to be of permanent value? And that in practically only one field? More literary material, taken from the Philippine Magazine also continues to appear in one an thology after another!” •DUMP YOUR TRAVEL WORRIES OVERBOARD! for carefree travel at its best... consult Uy Yet Bldg., Dasmarifias Manila Tels. 2-69-56—2-69-59—2-69-50 “And you the happy midwife!” said we. “Obstetrician,” he corrected. “Ac coucheur. . . Or, perhaps, the foster father. . . even, in some cases, the father; if not the actual impregnator, then the catalyst. . . What is an editor? A good editor? He must be a stimulator. . . An encourager. . . He must elicit, educe. . .” “If you ask me,” said we, “he conceit. . . Not a creator, not a worker himself. . . but a claimer of credit on the strength of a few bluepencil marks with which he botches up the pristine beauty of original work. He is. . .” “I think I’ve got to go now,” said the editor. Index to Advertisers Page American Steamship Agencies................ 333 Atlantic Gulf & Pacific Co....................... 337 Caltex (Philippines) Inc............................ 324 Colgate-Palmolive Philippines, Inc... 335 Columbian Rope Co. of Philippines. . 334 Earnshaws Docks & Honolulu Iron Works.......................................................... 336 Engineering Equipment & Supply Co.. 323 Erlanger & Galinger, Inc........................ 334 Everett Steamship Corp.......................... 338 Getz Bros. & Co......................................... 338 Goodrich International Rubber Co......... 327 Goodyear Tire & Rubber Co.........Inside Back Cover Heilbronn Co., J. P................................... 332 Insular Lumber Co.................................... 319 International Harvester Co. of Philip pines.......................‘................................... 305 Koppel (Philippines) Inc......................... 333 Luzon Stevedoring Co.............................. 332 Macleod & Co. of Philippines.............. 331 Manila Broadcasting Co.......................... 332 Manila Electric Co.................................... 307 Metropolitan Investigative Agency. . . 334 Motor Service Co....................................... 332 McCullough Printing Co......................... 331 National City Bank of New York. . . 326 Neuss, Hesslein Co.................................... 330 Page Pacific Far East Lines............................. 330 Pacific Merchandising Corp.................... 325 Pasig River Bodegas................................. 329 Philippine American Drug Co............... 329 Philippine Education Co. Inc................ 328 Philippine Manufacturing Co................. 322 Philippine Tobacco Corp..............Back Cover Security Delivery Service, Inc.............. 328 Sharp & Co., C. F..................................... 338 Shell Co. of Philippines, Ltd................. 321 Standard Vacuum Oil Co. Inside Front Cover Tide Water Associated Oil Co.............. 335 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-VILLE LINES Service to U.S. Atlantic Via Straits, Suez, Mediterranean FERN-VILLE FAR EAST LINES 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 155 Juan Luna St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) GETZ BROS. & CO YES, IT’S TRUE! THESE GOOD, GOOD BORDEN’S MILK PRODUCTS ARE AVAILABLE ANYWHERE IN THE PHILIPPINES THROUGH THE SALES DISTRIBUTION SYSTEM OF----GOOD? THEY’RE WONDERFUL!! THESE BORDEN’S MILK PRODUCTS ARE SO-O-O DELICIOUS/ "fie Wrk WorldOw More people ride on Goodyear tires than on any other make! More tons are hauled on Goodyear tires than on any other make! MORE people walk on Goodyear soles and heels than on any other make! More tons are hauled on Goodyear conveyor belts than on any other make! More airplanes land on Goodyear tires, tubes, wheels and brakes than on any other make! I'm no fool! I smoke Old Gold because It has the finest taste treat ever put in a cigarette. Because no other leading cigarette is less irritating, or easier on the throat, or contains less nicotine than OLD GOLD. Moreover, OLD GOLD has the fastest growing sales record among the five leading regular-sized cigar ettes in the world today. Millions of people all over the world can’t be wrong. Every year for the past five years OLD GOLD has consistently shown the greatest increase in sales. PERCENTAGE OF INCREASE IN SALES OF OLD GOLD CIGARETTES VS. THE 4 OTHER LEADING AMERICAN DRANDS IN THE UNITED STATES 1948-1952 This conclusion is based on statistics shown above and reproduced from a copyrighted article by Harry M. Wooten, recognized authority in tobacco, in PRINTER’S INK, January 9, 1953, published by PRINTER’S INK Publish ing Co., Inc., 205 E. 42nd St., New York 17, New York. P. Lorillard Co., established 1760, U.S.A. REG. PHIL. PAT. OFF.