The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Description: Manila : The Chamber, 1921-1976
52 v.
Issue Date: Volume XXV (No. 2) February 1949
Publisher: The American Chamber of Commerce of the Philippine Islands (Member Chamber of Commerce of the United States)
Year: 1949
Language: English
Subject: Philippines -- Commerce -- Periodicals.; Philippines -- Economic conditions -- Periodicals.
Rights
Place of publication: Manila
extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fifth Floor, Insular Life Building—Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; J. T. Hicks, Vice-President; F. C. Bailey, Treasurer; F. C. Bennett, J. H. Carpenter, C. H. Hirst, N. Most, R. J. Newton, and F. L. Worcester. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXV February, 1949 No. 2 Contents Editorials— The President’s Rose-tinted Glasses ......................................................................................................................................................................................................................... 61 Government Loans versus Private Investments ................................................................................................................................................................................................ 51 Samar Exile ....................................................................................................................................................................................................................................................................... 53 The "Southeast Asia” Bloc and Indonesia ................................................... 53 Mail Delay in Manila ................................................................................................................................................................................................................................................... 54 The New Chamber Board .................................................................................................................................................................................................................................. 54 Annual Report of the President American Chamber of Commerce of the Philippines ........ Frederic H. Stevens ................................ American Capital in the Philippines ............................................................................................................................................................................................................................. The Bus Terminals Proposal .......................................................................................................................................................... Frank S. Tenny ........................................ 66 CO 62 The Business View— Office of the President of the Philippines Banking and Finance ...................................... American Stock and Commodity Markets Manila Stock Market ...................................... Credit ...................................................................... Electric Power Production .............................. Real Estate .......................................................... Real Estate Sales in Manila, 1940-48 Building Construction in Manila, Port of Manila ........................................ Ocean Shipping (Export statistics for Inter-Island Shipping .............................. Land Transportation (Bus Lines) .... Mining ......................................................... Copra and Coconut Oil (1948 totals) Desiccated Coconut .................................. Sugar (United States quotas) ............ Manila Hemp (Annual figures) ........ Tobacco ......................................................... Textiles ......................................................... Food Products .......................................... Legislation, Executive Orders, Court Philippine Safety Council (1948 accident and fire statistics) United States Government Agencies m the Philippines U. S. Coast nnd Geodetic Survey ............................................ Import Control Regulations (Circulars 1-7) ........................................ Weekly Changes in Retail Prices ......................................................... Cost of Living Index, 1946-1949 ............................................................. The "Let Your Hair Down” Column ................................................... 1956-48 .............. 1947 and 1948) Official Source .................. F. C. Bailey ........................ R. Ewing ............................ A. C. Hall .......................... W. J. Nichols .................. J. F. Cotton ........................ C. M. Hoskins .................. Bureau of the Census nnd Bureau of the Census and R. L. Bary ........................ F. M. Gispert .................... G. F. Vander Hoogt ........ L. G. James ........................ Ci A. Mitkc ........................ M. Igual and If. B. Day H. R. Hick ........................ S. Jamieson ....................... H. Robertson ........................ Ccnde de Churruc;............... J. Traynor .......................... C. G. Herdman .................... E. E. Sei ph ........................ F. S. Tenny ........................ Statistics Statistics ,63 64 65 65 66 66 66 67 67 67 68 68 68 70 72 74 75 76 76 77 United States Information Service ... 81 Import Control Board ............................ 82 Bureau of Commerce .............................. 85 Burcnu of the Census and Statistics . . 87 50 Centavos the copy It delivers more horsepower than any belt ever built! IT is a revolutionary new belt— Goodyear’s COMPASS 250 Steel Cable capable of trans mitting up to 37 horsepower per inch of width. That means more compact, more efficient drives than ever before, with unusually high power-load capacities at both extremely slow and fast operating speeds. Built with a load-carrying core of finely stranded, high-tensile, end less steel cables enclosed in a rubberized-fabric envelope, the COMPASS 250 is so strong it has TWICE the horsepower rating, width for width, of the best belts now available — and with far longer life. And it is the first and only strelchless belt. It will pay you to contact ua for full data on this and other Goodyear Industrial Rubber Products—all proved by perform ance to be highest in quality, lowest in ultimate cost. .GOOD/ ye ARJ IHDUSn Al THE GOODYEAR TIRE & RUBBER CO. OF THE PHILIPPINES, LTD. Bacolod Manila Cebu Editorials “... to promote the general welfare” The President’s Rose-tinted Glasses. We in the Philippines have recently been vouchsaved the privilege of reading or hearing over the radio two significant addresses, one following the other closely: the first by President Truman, the second by President Quirino. Comparisons are often odious and though we wish to point out certain unhappy facts, it is not our intention to say anything invidious but to submit certain thoughts for serious cogitation. The two addresses differed naturally in that one was an Inatfgural, addressed to the people of the United States and also, definitely, to the whole * world, while the other was a “state of the nation” address delivered before the( Congress of the Philippines and primarily addressed to its members, though not with out a thought to the electorate. It is notable that President Truman’s address dealt chiefly with the tenets of the American faith and with American foreign policy. It was impersonal, solemn, and highly realistic. President Quirino’s address, quite properly, dealt almost wholly with domestic matters, but was in large part a review of the accomplishments of his adminis tration. It was, we are sorry to say, quite the opposite of realistic. As one listened, or read the address later, one’s sense of wonder grew at the almost magically one-sided picture of the “state of the nation” which was presented. Why, if all that were true, and that were all the truth, there’ was nothing wrong with the Philippines! What have we been so worried about? But alas! we know, the people know, that there is much that is wrong, deeply and gravely wrong. Day after day the newspapers are; loaded down with accounts of the unhappy facts as to the homelessness and poverty of many of the people, the general cor ruption in the government, abetted in high places, the widespread lawlessness and criminality, the popular criticism, unrest, and actual insurrection. And added to this, the persistent government interference with, rather than regulation of, the nation’s economic life, which can only make general conditions worse. We have still a long way to go even to equal our pre-war state as to general living conditions, peace and order, the efficiency of the public services, and as to nu merous other things. The Government, obviously, even the President himself, is much more pleased with the Government than are the people. That, in fact, is natural enough, though all the more lamentable for that. For we have here a politicians’ government rather than a govern ment of the people. “Politics” is still the Philippines’ first industry; the politicians are our most prosperous and complacent citizens. They are sitting on top of their little world. They call the tune to which all others must caper, and will, perhaps, until the dancers’ exhaustion will end the ball and the lights will go out. Is it wise for the President to use such rosetinted glasses that he misses all the deep shadows that are cast over the land? Hopefulness, courage, determination, are one thing. Blindness, wilful or otherwise, is quite another. President Quirino has accomplished a great deal, though less than he might have, especially if the Government had followed wiser economic policies. But much has been left undone, and so long as the President thinks, as he seems to, that everything is so beautiful, will the remedial actions and processes so desperately called for ever be decisively enough undertaken ? Government Loans versus Private Invest ments Satisfaction has been expressed in the Philippines over the success of the Government in securing the promise of a loan from the World Bank to finance, in part, the construc tion of two hydro-electric plants. That is a good thing, nobody will deny. We may, nevertheless, in this con nection, ponder the following very lucid statement by S. G. Baggett in the December issue of the American Bar Association Journal: 51 52 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 1948 1949 P.A.L.’s outstanding achievement • P.A.L.’s program will be to start in serving the public was the inau- the reconversion of all its passenguration of the DOUGLAS DC-6 ger Inter-Island aircraft to Super five-mile-a-minute pressurized ca- —DC-3 four-mile-a-minute de luxe bin sleepers on all International xL planes, with all the latest imflights. ’— provements for your air-travel comfort. PHILIPPinE AIR LinESmc. on the occasion of its Anniversary takes pride in presenting the folloiving facts and figures covering one year of outstanding service. PASSENGERS SERVED Inter-Island ................................................................... International ................................................................... 1947 26^938 8,793 276,731 MILES FLOWN Inter-Island .................................................................. . International ................................................................... 4,619,119 2,276,394 6,895,513 FREIGHT CARRIED Inter-Island ................................................................. . . International .................................................................. TOTAL SEATS MILES ..................................................... TOTAL HOURS FLOWN Inter-Island ................................................................... International ............................................................... 4,581,724 Kgs. 303,768 ” 4,885,492 ” 173,119,163 INCOME IN PESOS SALES Inter-Island .. ................................................................,‘. International ............................................................... Hrs. 36,151 ” 12,089 ’’ 48,240 PIO,138,269.69 7,812,466.53 P17,950,736.22 1948 300,046 10,930 310,976 4,656,743 2,596,098 7,252,841 4,867,241 Kgs. 451,437 ” 5,318,678 ’’ 193,771,715 37,516.40 12,198.42 49,715.22 ' P12,122,461.11 11,058,599.94 P23,181,051.05 PHILIPPINE AIR LINES started in February 14tb, 194G, with EIGHT Planes of the C-47 type. Today, the PHILIPPINE AIR LINES operates the following fleet: DC-G C- 38 C-Gl Making a total of .................. 47 planes In 1941, PHILIPPINE AIR LINES began operating with a capitalization of P500,000.00. The present capitalization, since May 8th, 1947 is P10,000,000.00 of which P8,210,000.00 is fully paid. PHILIPPINE AIR LINES maintains daily service, except Sundays, to all important points in the Philippines. Regular trips twice a week to Sun Francisco, Honolulu, Guam and Hongkong. Once a week to Tokyo and Okinawa. Every other week to Calcutta, KaPHILIPPINE AIR LINES has inter-line agreements with the most important air lines all over the world and can give service to any point in the U.S.A, or Europe, as well as Asin or Africa. Phiuppihe Air Lnes me. MAIN OFFICE — M.Il.S. Bldg., Corner Plaza Cervantes, Juan Luna, Dasmarinas Tel. 2-79-GG Tel. 2-79-67 Tel. 2-79-68 Manila Hotel Office Tel. 2-79-01 Avenue Hotel Office Tel. 2-79-66 FREIGHT DEPARTMENT — (Inter-Island and International! Trade & Commerce Bldg. Juan Luna St. Tel. 2-79-66 MANILA A. SORIANO Y CIA. General Managers “Inter-governmental loans usually hang a mill stone around the neck of the borrower because the loans must be repaid and funds for such purpose must be raised through additional tax levies. The payment of the service charges on loans upsets international balances and puts a further strain on international exchange. “Private capital, on the other hand, if invested in productive enterprise, results in additional production and an increase in purchasing power. Instead of plac ing additional burdens on the receiving nation, the in vestment of private capital produces additional sources of governmental revenues. “At best, all the government could do through in ternational loans would be to engage in some pump priming, but if private capital does not take up the slack, the priming would be lost and both the creditor and the debtor would suffer. “The investment of private capital, however, mul tiplies like seed-corn, and, if replanted, will continue to produce large and abundant harvests.” It is hoped, of course, that the projected hydro electric plants will in time pay for themselves, so that all that Mr. Baggett says about international loans does not apply strictly in this case. Nevertheless, his contrasting of the two kinds of capital, or, rather, of the two ways in which foreign capital may be brought into a country, is most instructive. It was reported recently that the first of some 205,000 new immigrants have begun to reach the United States, so-called “displaced Samar persons” whose entrance was authorExile ized by a special act of Congress. Most of them were chosen because of their special skills, for although the United States has over 60,000,000 of its own people gainfully employed, there is still need especially for agricultural, house hold, construction, and clothing workers. All of them have been assured jobs in advance either by employ ers or voluntarily organized commissions. The labor unions have not only not objected to this influx of new labor, but are firmly behind the program. The Clothing Manufacturers Association, in conjunction with the Amalgamated Clothing Workers, for instance, has promised jobs for 10,000 tailors. According to the December issue of Fortune: "There is no reserve of unemployed. There is a chronic, if sporadic, shortage of agricultural labor. In addition, in the words of the Federal Security Agency, ‘the nation does not have any significant pool of unemployed to meet the growing demand for non-agricultural workers resulting from the gradual expansion of exports and national defense pro duction....’ Increasing needs are seen for aircraft workers, shipbuilders, engineers of all types, bricklayers, plumbers, me talworkers, machinists, electricians, domestics, scientists, teach ers, stenographers, and textile and clothing workers.’’ According to Fortune, “The I.LJJ.W.U. offered to admit displaced persons to membership at once, and several other unions have agreed either to waive or to defer initiation fees. A mid-western zinc manufacturer said he wanted 300 smelters; a Massachu setts firm making store furniture and fixtures applied for skilled woodworkers; Colorado wants miners; a Texas cattle raiser wants a mixture of leatherworkers, blacksmiths, handy men, and cooks; an Indiana saw firm asked for nine good craftsmen. Connecticut wants dairymen, tobacco workers, sewing-machine operators, tool and die makers, electronic en gineers. Minnesota and Wisconsin, where two of the best com missions operate, have jobs and homes for about 10,000 dis placed persons each, mostly farmers. So far, few company applications have been motivated by desire for cheap labor.” Acting upon the request of the International Re lief Organization, the Philippine Government has re cently approved the sending here of some 8000 re fugees of mixed nationalities mostly from China for several months’ stay, until they can be sent else where. This has been hailed as an act of humanity, as it no doubt is. However, far from offering them homes and jobs here, we do not even allow them to set foot in Manila, but pack them off to the remote coast of eastern Samar. We seem to be afraid that they might conceiv ably be able to help us. Shouldn’t we learn one more lesson from Amer ica? Let us keep asking ourselves, What makes Amer ica so rich and so great? What makes even the newest comer to America so loyal? The editor requests the indulgence of the mem bers of the Chamber and of the readers of this Jour nal in his advancing here what must The “Southeast be considered his personal opinion Asia” Bloc and rather than that of the Chamber on Indonesia a matter regarding which the gen eral opinion of the membership would be difficult to gather, but which, nevertheless, is of some importance particularly to the foreign policy of the Philippines. Speaking personally, he has been interested since the time of Governor-General Harrison and Governor Carpenter, — wiho gave serious thought to it: the possible emergence at some time in the future of a Malaysian confederation, to be led, perhaps, by the Philippines. Such an aggroupment, including the Philippines, the East Indies, the Malay Peninsula, and perhaps other parts of Southeastern Asia, would have a geo graphical, racial, and cultural validity, and a certain historical one as well as it would encompass the ele ments of the old successive, Sri Vishaya, Madjapahit, and Malaccan Empires. With this as a background, the editor has not been able to share in the enthusiasm of some of our officials here, notably Ambassador Romulo, over the recent meeting at New Delhi and the formation there, or the tentative formation, of a so-called “regional Asiatic” bloc, because it embraces such diverse ele ments as Australia and India and even a number of Near and Middle East countries. The area covered is difficult to place geographically and the nations included comprehend peoples of great racial and cul tural differences. The conference at New Delhi was in fact predominantly one of Islamic representatives and barely escaped being drawn into the Jew-Arab dispute, which possibly accounts for the brevity of the meeting. The immediate object of the conference was to bring pressure against the Dutch Government for its recent police action in Java. The upshot of the con ference was the adoption of a comparative mild re solution asking the United Nations Security Council to set up a definite time-table leading to full inde pendence for the United States of Indonesia by Jan uary 1, 1950. Various speakers, including Indian Prime Minister Nehru and Ambassador Romulo, de clared that “colonialism” in Asia and elsewhere must end. 53 The latter point is not to be argued at the pres ent stage of world development, though there still are peoples who need tutelage at least. But everyone will agree with Mr. Romulo’s eloquent statement made be fore the Manila Rotary Club on his return from India: “....democracy, if it is to endure, if it is to survive the forces that seek to destroy it, must be practiced among as well as within natidns. Freedom and equality must be for all peoples, as they should be for all men.” But it appears to the editor that the occasion for making a declaration against the continuance of the old-style colonialism, was not well chosen by the gov ernments represented at New Delhi. The editor be lieves that the world-wide criticism of the Dutch ac tion was based on an equally wide misunderstanding of the situation particularly in Java. Let us ask ourselves how the United States Gov ernment would have taken any attempt at compelling it, after the war, to deal on a basis of equality with the puppet government set up here by the Japanese? How would the Filipinos today take any kind of for eign bloc interference in the Government’s policy with respect to the Huks? These parallels are very close, and, furthermore, most of the men who are so loosely talked of as the leaders and representatives of Indonesia, can at best be considered as controlling only 23,000,000 people in Java out of a total population there of 40,000,000, and 70,000,000 in the whole of the East Indies. The recent calming down of the United Nations on the subject is probably due, not to any insincerity, as has been charged in some quarters, but to a growing understanding of the conditions in Java with which the Dutch Government has to deal. The outside in terference which the Dutch have had to accept, has served only to make their task the harder. * * This was written before the United Nations Security Council adopted the resolution calling on the Netherlands Government to "free” the Dutch East Indies by July 1, 1960. Suppose the League of Nations, say in 1935. when the ten-year Philippine Commonwealth period was about to open, bad demanded that the United States Government grant the Philippines com plete independence within two years I Democratically-minded observers, including the editor, have criticised the Dutch policies in the Ne therlands Indies before the war as too studiedly in hibitory of native political development, but the Dutch today are committed to the establishment of an inde pendent Indonesia within a reasonably short period of time. Meanwhile, by virtue of hundreds of years of rule there, the Netherlands remains the sovereign power. No competent student would hold that the Japanese invasion and occupation of the Netherlands Indies ended that sovereignty. The Dutch are a great and honored people, who established one of the earliest democratic govern ments in Europe. Their interest in a successful estab lishment of an independent Indonesia, is as great today as any outsiders’ can be. Their knowledge and understanding of the situation there can not be ques tioned. Their administrative ability is generally acknowledged. Amid all the noise, — which fortunately is some what subsiding, let us listen to what the Dutch have to say. Meanwhile, let us in the Philippines not go over board in this matter of a so-called Southeastern Asia bloc which is not that at all, but a loose and scat tered aggregation which lacks all cohesion and has very little, if any, reason for being. The editor hopes that nothing he has said will be taken as a stricture on the spontaneous sympathy ex pressed among the people here, — in the newspapers and in congressional and other Philippine Govern ment circles, for a people akin to them who they be lieve are being oppressed, or a reflection on the na tural indignation felt over an action taken by the Netherlands Government which appeared to be un provoked. The trouble is chiefly to be attributed, as has already been said, to the insufficiency and the one-sidedness of the information available. The fault seems to lie chiefly with the United Nations represent atives on the ground, and with the emotional rather than the rational treatment of the matter not so much at New Delhi as in the Security Council itself, not ex cepting the United States representation in that body. Businessmen abroad, interested in business with the Philippines, should be informed of the fact, re cently brought out in Manila newsMail Delay papers, that some 1,500 bags of in Manila United States parcel-post matter, and some 6,000 bags of other mail have been allowed to pile up in the Manila Postoffice. The parcel post mail which reached Manila in Decem ber, totalled some 3,000 bags to begin with, and no more than half of it was distributed as late as February 1. The Postmaster cites the Pacific Coast strikes in the United States and lack of sufficient postoffice personnel here as the reasons for the backlog. The situation should supply an explanation to businessmen abroad for delays in or failure to receive replies and acknowledgements in connection with let ters and parcels sent here. There is no need to expatiate on the general in convenience and the damage to many that results from such delay in delivery, nor on the obligations of the Philippine Government in this respect as a member of the Postal Union. The annual meeting of the American Chamber of Commerce of the Philippines was held on January 28 and resulted in the election of the The New following men to the new Board of Chamber Board Directors, the officers being chosen at the organization meeting held on the 31st: President — F. H. Stevens, President and Manager, F. H. Stevens & Co., Inc. Vice-President — J. T. Hicks, Manager, Liggett & Myers Tobacco Company. Treaszirer — F. C. Bailey, Sub-Manager, National City Bank of New York. Members — F. C. Bennett, Vice-President, Atlantic, Gulf & Pacific Company of Manila. J. H. Carpenter, General Manager, Colgate-Palmolive-Peet Company. C. H. Hirst, Vice-President and General Manager, Ameri can Factors (Phils.) Inc. Nathan Most, Manager, Getz Bros. & Co., Inc. R. J. Newton, Vice-President and General Manager, Wil liams Equipment Co., Ltd. F. L. Worcester, Vice-President and General Manager, Philippine Refining Co., Inc. Executive Vice-President— (Mrs.) Marie Willimont. Secretary — Isabelo T. Salmo. The Journal believes it may speak for the mem bership at large in denoting the ne^Board, which contains a number of men who were re-elected, in cluding the President, as a strong and able group, under which the Chamber may be expected to continue to make good headway. We congratulate these men, the membership generally, and ourselves. 54 February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 55 Annual Report of the President American Chamber of Commerce of the Philippines To the Members American Chamber of Commerce of the Philippines Sirs: TO put it succinctly, I believe that I may say that the Chamber has had a good year in that it has been more than usually active and in that it has been successful, in some degree, in its activities. Our officers, directors, and committeemen, aided by the of fice staff, have faithfully, diligently, and effectively discharged their responsibilities. We have at present 100 active members and 74 associate members. During the year we lost two active members, but seven came in, of which three represent ed membership transfers. Fifteen associate members dropped out, but ten new associate members came in. * After a thorough consideration of the matter by the Board, it was decided, to reduce the active mem bership fee from Pl,000 to P250, effective September 1. We trust this meets with your approval. The outgoing officers and directors hope that the action will lead to an increase in our active membership. During the year the Board elected the United States Ambassador to honorary membership in the Chamber, which membership he accepted. The Board also invited him to attend, if he should so desire, the Board meetings or to send some member of his staff, like the trade attache. After that, we sent the Em bassy the agenda iof all board meetings and Mr. Patten. D. Allen, the first secretary, attended most of them. The Chamber during the year twice suffered serious loss, first, in the sudden death last March of the Executive Vice President, Mr. Leon Rosenthal, and, second, in the death in May of one of the direc tors, Mr. A. H. Barrett. Mrs. Marie Willimont was appointed to the position left vacant by Mr. Rosenthal. Another lamentable death was that of Mr. H. W. Titus, editor of the “Port of Manila” column in the Journal. The Chamber is indebted to Messrs. Ross, Selph, Carrascoso & Janda for the reconstruction of our cor porate records destroyed during the war. A certifi cate to this effect was subsequently issued by the Securities and Exchange Commission. Claims for the Chamber’s pre-war bank deposits, amounting to ap proximately P30,000, are still pending. Since August, 1947, the Chamber has had its tem porary offices here on the fifth floor of the Insular were elected to active membership during * The seven underlisted firms Williams Equipment Company, Ltd. Bunge Far East Agencies, Inc. Colgate-Palmolive-Peet Company Philippine Engineering Corporation W. A. Chittick & Company, Inc. Pampanga Sugar Mills Philippine Packing Corporation Ten new associate members were A. C. Davis G. 8. Burton R. F. Baker Louis G. Wagner John R. Cooney taken in during the year as follows; Fred McN. Butler Tom O. Gaston C. C. Crawford John D. Hardie Harry Avlrom Life Building. During the past year we were kindly offered space in the reconstructed building, across the river, of the Chamber of Commerce of the Philippines, but on the basis of the limited area available and the price, the offer was declined. Next month the Cham ber offices will be transferred to the fourth floor of El Hogar Filipino Building, around the corner, where we shall have some 190 square meters at our disposal instead of the 150 here. The rental per square meter is the same. The Board having queried the member ship by mail, some 70 of the active members voted in favor of installing both a bar and a coffee-counter in the new quarters. I hope, personally, that you will reconsider your vote as to the bar. Most of us, I am sure, do not favor drinking hard liquor during the middle of the day; licenses, fees, and up-keep would run into money, and we would probably incur a deficit. FOLLOWING the annual meeting held early last year, the Board held twelve regular meetings and a number of special meetings, — among the latter ione was to discuss the third-quarter imports, at the request of PRATRA; another was held in connection with the coming of the businessmen’s delegation from the United States Pacific Coast to the regional trade conference sponsored by the Chamber of Commerce of the Philippines; still another was to consider the Chamber’s transfer to the Hogar Filipino Building; and the last was a meeting on import control. A number of more generally attended meetings of members were held on the Chamber premises during the year. One, held in February, concerned the licen sing of American flour exports to the Philippines; another, held in July, was called to discuss labor pro blems and the advisability of organizing an “employ ers’ association,” on which the decision was in the negative; and the last, held only a few weeks ago and very well attended, concerned the recently instituted import control. Among the more social occasions, was a luncheon given in February at the Manila Hotel by the Board of the Chamber of Commerce of the Philippines to the Board of our Chamber, in return for a luncheon given by your President to the Philippine Chamber Board the preceding November. Your President also gave a luncheon at the Manila Hotel in June in honor of Secretaries Cuaderno, Mapa, and Abello, Mr. Jose Yulo, and a number of other prominent Filipinos. Due to the circumstances and to the crowded schedules of the delegation of United States business men to the regional trade conference already men tioned and held here in July under the auspices of the Chamber of Commerce of the Philippines, we were not able formally to entertain these men, as we wanted to do, but means of individual friendly social contacts were found nevertheless. AT the regular meetings of the Board, many mat ters other than routine were dealt with, among them the following: (1) A joint petition with the Philippine Cham ber of Commerce addressed to the President with re56 February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 57 "7@WITH 11 TONS PAYLOAD "We find that our new Ford F-8 BIG JOB has averaged approximately IVz miles per gallon of gasoline, with about eleven tons payload,” reports W. F. Covington, Jr., of the Covington Planter Company. "On long trips, the truck will gain a full day comparea with trips made with a two-ton truck.” Enthusiastic reports like this are rolling in from Ford BIG JOB users in every part of the country. They claim gross train weights of 50,000 lbs. and more on tan dem axle semis . . . power that leaves other trucks behind in the hills, or on the level . . . astonishing gas economy . . . unusual driving ease. The Ford BIG JOB is the truck success oj the year! Come in and let us give you more if Brand New 145-Horsepower Ford V-8 Truck Engine ★ New Heavy Duty Quadrax Axles; F-7 Hypoid, F-8 Two-Speed ★ Big Tires; up to 10.00-20 on F-8, up to 9.00-20 on F-7 if New Heavy Duty Five-Speed Transmissions if Big Rear Brakes, Vacuum Actuated, 16-in. by 5-in. on F-8 if Built and Warranted for the following ratings: Grow VnUdn Wnipht Grou Tran Wniqht FORD F-7 19,000 lbs. 35,000 lbs. FORD F-8 21,500 lbs. 39,000 lbs. if Nationwide Service From Over 6400 Ford Dealers BU/LT STRONG ** TO LAST LONG ** FORD SERVICE THROUGHOUT THE PHILIPPINES BICOL TRADING, INC. Iriga, Camarines Sur MINDANAO MOTORS CORP. Cagayan^ Or. Misamis DAVAO MOTOR SALES Banquerohan, Davao City MONTILLA BROS. CO. Bacolod City EAST VISAYAN MOTORS, INC. 3 R. Palma, Cebu City PAN AY MOTORS, INC. Muelle Loney, Iloilo City MANILA TRADING & SUPPLY CO., Port Area, Manila ference to the lifting of the Moratorium, and, Later, protests against certain provisions of the bill on the subject which became law. (2) Representations made and letters addressed to the United States Embassy in connection with the congestion at the piers and the release or partial re lease of Pier 5 by the United States Army. (.3) Representations made and letters addressed to the Embassy and the U. S. State Department with reference to changes in the export license policy in Washington, “new importers,” etc. (4) Various actions with reference to a number lof bills introduced in the Congress of the Philippines, including those affecting the professions of mining and chemical engineering, new taxes on liquors and cigarettes, “luxury” taxes in general, and import con trol, the high fees for the inspection of imported fruits, etc. (5) In connection with import control, and on the invitation of Secretary of Commerce Balmacedai, the Board appointed a committee composed of Messrs. D. 0. Gunn, N. Most, and R. J. Newton, to meet with the Import Control Board in the discussion of the con trol provisions of the Act which was finally passed and of the presidential executive order which implemented it. Mr. Gunn had also previously been nominated by our Board, on invitation of the Government, to advise in connection with the revision of ceiling prices. I was absent from the Philippines during the pe riod of the import contnol hearings, but I wish to say that our committee did all that could reasonably have been expected of it under the circumstances and that it well deserves our thanks. I do not believe that anything could have been done by us to avert import control, and I am certain that the Chamber, through this committee and through criticism frankly and forcefully expressed in a number of editorials in our press organ, the Journal, did much to temper the provisions, though many of these are still most oner ous. We have continued to press our objections strongly. With respect to labor problems, a special commit tee was appointed headed by Mr. F. L. Worcester, which sent out a questionnaire to the members on the basis of which a bulletin was put out in mimeographed form for restricted circulation showing the minimum and maximum salaries and wages paid in different categories of employment, special privileges accorded, such as vacation and sick leave, medical and dental care, hospitalization, accident and group insurance, re tirement pay, holiday, over-time, and night-shift pay, etc., and the type and extent of unionization in the various business and industrial establishments repre sented in the Chamber. This committee, through the Chamber, has also taken steps toward the engagement of a man who will make a digest of all the post-war decisions of the Court of Industrial Relations and thereafter regularly sup ply the Chamber with a digest of current decisions. Another important Chamber survey, handled by Mrs. Willimont, and published for restricted circula tion in mimeographed form, was that of the present, still very high cost of living of Americans and foreign ers in Manila. We are at present planning still another survey, at the suggestion of Commissioner Waring, of the total American post-war business and industrial invest ments and the total annual American business expen ditures in the Philippines. Much of this survey work has fallen on Mrs. Willimont, who has rendered outstanding service in 58 this as well as in her regular capacity as Executive Vice-President. Most recently we have received a valuable report by Mr. C. H. Hirst, Chairman of our Civic Affairs Committee, on the proposed establishment of a Com munity Chest organization here. Our members should indicate to the incoming Board of Directors what they think of this matter. WHILE in the United States during the latter part of 1948, I was impressed by the high apprecia tion shown by businessmen there of our Chamb publications, both our mimeographed Bulletins, of which we put out 543 during the year, and our monthly Journal. However, I recommend to the incoming Board that it consider whether or not it is necessary to continue to send out excerpts from the “Special Business News” dispatches of the Associated Press, as I am personally of the opinion that the local press now gives adequate coverage. I found the Journal on the desks of practically every business executive interested in business with the Philippines. They were outspoken in their praise of both the regular monthly contributors to “The Business View” pages and the editor, Mr. Hartendorp. The editorials, especially, have helped to clarify, abroad as well as here, a number of important issues. I may say that though they are always trenchant, they are so obviously imbued with a concern for the best interests of the country that they have always been well received and have frequently been reprinted in full in some of the local newspapers. The editor has stuck to his belief that the Journal, though strictly an organ of the Chamber and there fore appealing to only a somewhat limited class, should require no direct subsidy from the Chamber. I am glad to say that the advertising in the Journal has been fairly good for the past six months, but it could be better. I urge all our members to continue and to increase their support of the Journal through the ad vertising columns. It is our own organ and is serving us with intelligence and distinction. DURING the year we have had the pleasure of working jointly with the Philippine Chamber of Commerce on a number of matters. I feel that such cooperation could well be increased if the mutuality of the interests of all business organizations are more clearly understood here. We have continued the closest relations with the Philippine American Chamber of Commerce in New York and a number of other important United States business organizations. The New York Chamber has been especially cooperative and we are under con tinuing obligation to Colonel Daye for assistance in many important matters. We have also received great help from Mr. M. D. Thompson, Chairman of the Philippine Committee of the Foreign Trade Coun cil. His advice has always been of the greatest value to our Board. THERE is no gainsaying that American business in; the Philippines has had its set-backs during the year, but where necessary we have put up a good fight and have been able to make our influence felt both for the good of the country, I firmly believe, as well as in self-interest. There are those among us who would have us take a stronger stand in some matters affecting our posi tion here, and there are others who think we have gone quite far enough, if not too far, in frank opposi tion to certain tendencies. But frankness is an AmeriFebruary, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 59 Bethlehem is engaged in international commerce in its truest sense. For this great steel-producing organization, with steel plants on both the Atlantic and Pacific coasts of the U.S.A., is much more than a great exporter. Bethlehem Steel buys and imports from 41 countries throughout the world. It takes a world of products to make a ton of steel. Chrome, tin, tungsten, manganese, fluorspar and many other minerals and ores are needed to make various types of steel products. And indirectly, steel production requires quantities of imports such as hemp, rubber, paper, pulp, chemicals and a wide variety of other goods. Here is active international cooperation —where all the world joins to produce STEEL, a material for universal use. BETHLEHEM, EXPORTER OF STEEL, IMPORTS FROM 41 COUNTRIES rt tanoration »: ‘BETHLEHEM, NEWYORK" Philippine Correspondent: L. W. Detzer 615 Trade & Commerce Bldg., Manila, P.I. M No. 301E can quality and a commendable one, especially desira ble and necessary, I think, here and now. We must think of ourselves not as constituting a chamber of commerce alone, but a group of Americans who, for the most part, have been closely identified with the building up of the modern Philippines and who continue to hold both a moral and material in terest in Philippine development and progress. We can be of greatest service to this country only by stoutly upholding the American view and the Ameri can way of life. American Capital in the Philippines THE somewhat disparaging remark that “no American individual or firm has invested as much as P200,000 in any local industry since Parity”, made by Mr. J. Amado Araneta, a leading Filipino sugar industrialist, led to a significant ex change of facts and opinions during the past month between him and another Philippine business man, Mr. Gerald Wilkinson, President of Theo. H. Davies & Co., Far East, Ltd. and a number of other com panies. The background of this exchange is the con troversy initiated by sugarcane planters in connection with the ownership of the sugar export quota, the whole of which some planters now claim for them selves, and certain statements reportedly made by Mr. •Ildefonso Coscolluela, President of the Federation of Sugarcane Planters, to the effect that the planters would bring the matter to court, and his incidental proposal that the Government, through a bond issue, advance the funds that would be necessary to enable the planters to buy the centrals, Mr. Coscolluela also adding that the planters were going ahead with their plans to seek the aid of foreign capital “to build their own centrals”. It was this latter statement which led Mr. Ara neta to discount the prospects of American invest ments in the sugar industry. Mr. Wilkinson challenged Mr. Araneta’s state ment and brought out the fact that his own Company has since 1945 invested, on behalf of American in vestors and institutions, over PIO,000,000 in the fac tory, railroad, and dock of the Hawaiian-Philippine Company at Silay, and P2,700,000 in the factory, rail road, and dock of the San Carlos Milling Company, both in Occidental Negros, and Pl,200,000 in the As turias Sugar Central in Capiz. As regards the planters’ proposals, Mr. Wilkinson stated, in a letter to the Chronicle: “We have noted in various countries that the interests of production and employment are at times beset and obscured by political cross-currents, and as guests in a friendly land we are qualified, neither by right nor by inclination, to political expression. But as men of goodwill who love the Philippines, and have expressed our faith in its future in tangible form, we would urge every section of the sugar industry to look outward and onward, not inward, for the betterment of its lot. “For centrals, improved factory and handling processes; for planters, research and improvement of yields through new cane varieties, can bring to this Republic gains that can in finitely outweigh the maximum concessions that any central might gouge from its planters, or any planters from a mill, and the vital interests of labor are inseparable from the pros perity of both. “Unity may require patience and understanding. But it can build a great industry. Disunity can bring nothing but paralysis and the impoverishment of all.” Mr. Araneta’s reply to this was that he is not against the coming of foreign capital: “I am 100 percent for it. I urge it to come and enjoy the full benefits of a potentially rich country, the cooperation of an industrious and hardworking people, and have the sa tisfaction of having helped in building the future economy of the Philippines.” However, he pointed out,—wrongly as it proved, that the funds invested in the Theo. H. Davies enter prises— “.... your 14 million pesos, if anything, was purely re habilitation money used to protect, and if possible resuscitate, pre-war investments. Similar capital has indeed come in, to help put back into operation mines, lumber mills, sugar cen trals, and other old Philippine industries. That money was bound to come in as a matter of economic necessity, not on behalf of the country but to salvage pre-war investments. “I repeat and I insist that neither you nor anybody else can point out a major American or other foreign investment in new industries in this country since liberation. About the only notable exception is Glo-Co [toilet preparations], but even that firm had begun local investments before the war. So, strictly speaking, it’s not a newcomer to the field.” Mr. Araneta added that he was under the im pression, also, that the Davies Company was a Bri tish and not an American firm. Mr. Araneta’s letter received wide publicity in the daily press. Mr. Wilkinson replied in detail pri vately to Mr. Araneta, but feels that anything in the nature of a public controversy between interests of identical aims within the industry would be bene ficial to no one. At our request, however, he has re leased the following extracts from his reply to Mr. Araneta of December 23: “Of the P14,000,000 of capital that has been committed to Hawaiian-Philippine, San Carlos, and Asturias sugar centrals since the war, approximately P10,000,000 came from American entities which had no pre-war interest by loan or investment in these three companies, and whose motives therefore were totally divorced from the protection of salvage and the resus citation of assets to which you now refer. This was genuine new American finance coming into the Philippines, as new and as beneficial to the economy of the country as would be capital entering an unproven industry.” Mr. Wilkinson went on: “If, by modification of previous statements, you should wish to exclude sugar from this discussion, I would like to quote anothei * industry in the Philippines, also under our man agement and therefore the only, other one on which I am qual ified to speak with detailed knowledge, in which more than double the limit of P200.000 to which you referred, has been invested by new American capital since the war: the Hume Pipe and Asbestos Company, incorporated in July, 1946. Of the P750.000 of new cash remitted into this Company during the last six months of 1946, nearly P500.000 was of American origin, and in saying this I am excluding our own investment in the Hume Pipe and Asbestos Company since there is British as well as American ownership in Davies & Company.” BY way of comment, we of the American Chamber of Commerce Journal believe that Mr. Araneta in his second statement, if modified to refer only to American investments in new post-war industries 60 in the Philippines, was correct in emphasizing the minor extent of such investments, and it would be of interest to us and to our readers if further data on the subject were communicated to the Journal. In this matter, we share the disappointment of Mr. Ara neta and other forward-looking Filipino business lead ers. At the same time, Mr. Wilkinson and his asso ciates, whose faith in the Philippine economy is wide ly known, are on strong ground when they point out that the country’s over-all economy is as much bene fited by a dollar invested in the rehabilitation of a pre-war factory as it is by a dollar invested in a new and perhaps less stable undertaking. The wages of men at work buy no less food or clothing if those wages are derived from a rehabilitated industry, than if derived from a new venture. In fact, the pros perity of new industries is more likely to be increased than diminished by the revival of pre-war enterprises, particularly those engaged in production for export, in view of the increase in both foreign exchange and domestic buying power that results therefrom. Another interesting point that has emerged from the correspondence quoted, is the fact that finance committed to the rehabilitation of war-damaged in dustries is not, as the public perhaps tends to ima gine, necessarily of the same origin as the pre-war capital engaged in the same enterprise. Mr. Wilkin son has a pertinent example in pointing out that ap proximately £10,000,000 out of £14,000,000 of new money committed to three of the Centrals under his direction, came from American entities which had no pre-war interest by loan or investment in those three companies. It is also of interest to learn that in quoting the total of £14,000,000 referred to, Mr. Wilkinson inten tionally refrained from reference to some £7,000,000 of new finance employed since the war in other com panies associated with Theo. H. Davies & Co., Far East, Ltd., on the grounds that there is a British as well as an American interest in the finance of these other companies, thus rendering them not strictly re levant to the category discussed by Mr. Araneta. It is clear that the efforts of both Mr. Araneta and Mr. Wilkinson and their associates have been of unquestioned value to Philippine production and em ployment and all that results therefrom. It is by no means true that money is bound to come into the Phil ippines as a matter of economic necessity to rehabili tate pre-war investments. The number of silent mines and silent mills that still stand in ruins are eloquent testimony to this, and there is no question that Amer ican capital is cautious, if not timid. So perhaps is all capital worthy of the name. Has Philippine do mestic capital been bolder? In the case of American capital, a sense of caution tends to be increased by a number of provisions in the existing land, mining, and corporation laws. The so-called Parity Rights, conveyed to Americans under the Philippine Trade Act of 1946, while much publicized and sometimes criticized, apply only to the development of national resources and public utilities, while in the important and varied fields of manufacturing, Americans enjoy no parity but are, in fact, as gravely handicapped as other nationals by the “Flag Law” which penalizes Americans, as well as other non-Filipinos, to the ex tent of 15% when bidding to the Government and its numerous entities and corporations. Investors will listen with interest to the state ments of our Government and business entities, and to any publicity that may be organized to promote foreign investment here, but capital, as Mr. Araneta has rightly pointed out, is cautious, and will look more particularly into the actual provisions of Phil ippine laws, regulations, and court decisions, than to the warmest expressions of welcome couched in gen eral terms. t^Z-g-lHE AMERICAN system of free, private, competitive enterprise is not pure laissez-faire, since it operates within I a framework which combines enlightened self-discipline with a substantial measure of intelligent and purposive regulation by government. Legislation enacted by democratic process to promote the general welfare and to assure public order and safety, to eliminate unfair business practice, or to regulate public service enterprises which are natural mo nopolies— all these are fully consistent with this thesis; but while private enterprise readily adapts itself to an intelligent system of law and regulation designed to enhance the social purpose, stability, and security of the national economy, it can not willingly accede to arbitrary governmental intervention in the processes of production, investment, and trade. Such in tervention is the antithesis of economic freedom and is in essential conflict with the fundamental tenets underlying the pri vate enterprise system.” — National Foreign Trade Council. 61 The Bus Terminals Proposal By Frank S. Tenny Executive Director, Philippine Safety Council SINCE the plan to establish bus terminals in Manila was formally presented, there has been much comment both for and against it. This is a healthy sign, for no one interested in the plan wants to meet only with apathy in a matter of such import ance. However, some of the opposing opinion appears misinformed as to the purpose and nature of the plan. It is the writer’s intention to present the matter from the point of view of the public interest. The need for bus terminals is but a consequence of the growth of Manila. There is always opposition to any change, and a present danger lies in unneces sarily prolonging difficulties simply because of a ten dency to resist change and to preserve the status quo. One of the main arguments advanced by oppo nents of the plan is that the establishment of such ter minals would cause extra expense to the traveling pub lic, yet this need not necessarily be true. For instance, assuming that the price of a ticket for a trip from some outlying point to Manila is P1.00, this must in clude the cost of transporting a passenger through and to the center of Manila. A fractional amount, there fore, could be deducted from the cost of the ticket without loss on the part of the bus operator, and this amount could then be paid by the passenger to an operator holding a city franchise who conducts a shut tle-service from the terminal. If an efficient transfer system were adopted, such as is in effect in other cities of the size of Manila, this could all be made very simple and of benefit to all concerned, with the net cost to the passenger remaining the same. Another lobjection which has been raised concerns the added inconvenience to the traveling public since passengers, after reaching a terminal, would have to seek a secondary means of transportation to take them to where they want to go. This difficulty, on exam ination, practically disappears, for the recommended sites of the terminals are not so remote as might be thought. The proposed Divisoria terminal, for exam ple, would be within walking distance of one import ant general point >of destination, and this would be true of most of the terminals. Furthermore, there is no possible way for any bus operator to divine the ul timate destination of the majority -of his passengers. No matter where a bus finally stops, most of the pas sengers will go on to somewhere else. The conclusion is that some secondary means of transportation, foot or vehicle, is necessary whether the terminal plan is put into operation or not. Still another objection, voiced in certain quar ters, is that the plan would require the employment of additional workers to handle baggage and freight, but this, if true, should not be permitted to outweigh the advantages to the public. It is not necessary to emphasize the importance of the plan as a means of reducing the congested traf fic in the city. That, of course, is the main point in its favor, but there would be other advantages, some of which may be listed as follows: 1. Value of the terminals as information centers to travelers, — information as to the local geography, hotels, restaurants, shops, etc. This would greatly lessen the present preying on innocent provincianos. 2. Value of the terminals in improving conditions of sanitation, — rest rooms, etc., especially for mothers and children, could be provided more conveniently than at present. 3. Value of the terminals in promoting public safety, — the inspection of busses would be facilita ted, over-night parking in the streets would be elimin ated, losses from theft would be reduced, the entrance and exit of persons wanted by the police could be bet ter controlled. A great deal more of protection could be afforded tihe public than is now possible. 4. By establishing the bus terminals, depots, etc., in supervised areas, fire-danger would be reduced. Some operators now store gasoline in prohibited places and others operate garages which do not meet even the minimum safety standards. 5. The public would be convenienced by the op portunity to compare routes, schedules, fares, etc. Travelers would have the opportunity to choose what appeared to them to be the cleanest and best operated busses, and this would undoubtedly result in a general raising of operation standards. Much more could be written on the subject, and probably will be. It is the opinion of the writer that if the matter is correctly presented, it would meet with widespread approval. Many other cities have met the same problem in this way. The plan has been success ful wherever it has been put into effect, to the benefit not only of the city and the public, but of the operators. “Collective bargaining is not a vehicle of economic warfare bnt a normal and necessary part of business dynamics. That it is so frequently depicted in the former aspect is largely due to the fact that much recent legislation has been based on the false assumption. Listening to many of our neo-liberals, you might picture the American economic scene as a chaotic free-for-all, with its amazing productivity a lucky and inexplicable accident!” William A. Orton, in FORTUNE 62 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source DECEMBER 31, 1948 — President Elpidio Quirino, on the basis of the census just completed, pro claims the population of the Philippines to be 19,234,182. Census Day was October 1. The President and the Cabinet approve the re quest of the International Relief Organization for the accommodation here of refugees of mixed nationalities, mainly from China, numbering up to 8000. The eva cuees will be concentrated at the former Guian Base, Samar, and not more than 1000 will be sent -at one time. The Quonset huts, once numerous there, have been removed, and the evacuees will probably be housed in borrowed ior hired U. S. Army tents. January 3, 1949 — The Central Bank of the Phil ippines is inaugurated. (For details see the January issue of this Journal.) Jan. 5 — Announced that Budget Commis sioner Pio Pedrosa assumes today the position of Secretary of Finance, vice Miguel Cuaderno who was appointed Governor of the Central Bank. Pedrosa also becomes ex-officio Chairman of the Monetary Board of the Central Bank. On recommendation of Governor Cuaderno, Ceferino Villar, ranking official in the Bureau of Banking, now absorbed by the Cen tral Bank, is appointed Insurance Commissioner. The President has also signed the appointment of Felino Neri as permanent Under-Secretary of Foreign Affairs. Jan. 6 — The President and Cabinet are re ported to have decided upon the reconstruction of the University of the Philippines buildings on the old campus vacated by the remioval of the University to its new site. The Philippine Naval Patrol has been authorized to expand its personnel by 80 officers and 700 enlisted men to man, operate, and service additional ships re ceived from the United States Government. The President and a party of government officials, including Speaker Eugenio Perez, board the S.S. Argus for a tour of the Bicol region. Jan. 7 — The President accepts, acting for the Philippine Government, the invitation of the Indian Government that the Philippines participate in New Delhi conference, opening January 16, to consider the situation created in the Netherlands Indies by the re cent action of the Dutch Government with respect to the Indonesian Republic. Ambassador Carlos P. Ro mulo, chief of the Philippine delegation to the United Nations, will represent the Philippines at the con ference. Jan. 9 — The President formally reopens the Le gaspi railway line in ceremonies in Legaspi City. Jan. 11 — President Quirino, commenting on a Washington news dispatch stating that President Tru man has included $185,000,000 for the Philippines in the budget he has sent to Congress, expresses his gra titude and says also that he is happy over the choice of the new U. S. Secretary of State, Dean Acheson, to whom he has sent a telegram of congratulation. Announced that the Philippines has so far receiv ed under the transfer program of Japanese repara tions, machinery and equipment worth P24,087,946. Jan. 13 — The President and his party return Manila. Jan. 14 — The President signs an executive order (No. 201) amending Executive Order No. 200, extend ing for 6 months the period “within which logs, flit ches, and sawn lumber may be exported by any actual producer thereof.” The President appoints a committee headed by Secretary of the Interior Sotero Baluyot to study ways and means of ridding Manila of the present make shift dwellings and getting their inhabitants properly housed. These structures are all fire-traps. Seven persons were recently burned to death in a fire in Paco. Jan. 15 — Announced that the Council of State has set greater production and more widespread social amelioration as the 1949 aims of the Quirino adminis tration, as the establishment of peace and order and the strengthening of the people’s faith in the Govern ment were the objectives in 1948. The President pre sented the main features of his proposed legislative program to the Council, including the building of more roads and bridges, and irrigation works, speeding up the development of ports and subports, the construc tion of power plants, and the reorganization of gov ernment corporations. The opinion is expressed in the Council that certain of these corporations which have not shown sufficient success or which are com peting with private enterprise should be abolished. Jan. 17 — The Cabinet grants permission to the Freedom Shrine Foundation of the United States to raise funds through Dr. Harry Gregory Schnackel, for the construction of a war-memorial on Oorregidor. According to a communication from Dr. Schnackel, the project has the support of the Pacific War Memorial, Inc., whose President is Gen. R. C. Richardson, and of other eminent Americans, including Generals Douglas MacArthur, J. M. Wainwright, H. H. Arnold, and F. R. McCoy, and Adm. W. Halsey, former Secretary of State Stimson, etc. Photographs of a sculptural group of the Four Freedoms, designed by Dr. Walter Russell of Carnegie Hall, are circulated. [Some cri ticism of the design was voiced in Manila.] Jan. 18 — The President asks the department secretaries to instruct their bureau directors and other lofficials to pay special attention to provincial and municipal officials who come to Manila on official bu siness so that their stay will not be unnecessarily pro longed. He makes it known that his former residence on Dewey Boulevard will be available as a guest house for provincial governors here on official business. Announced that a five-man mission of the U. S. Veterans Administration will arrive in Manila on February 7 to look into the needs and welfare of Fili pino veterans. Jan. 19 — In a telegram of congratulation to Pres ident Harry S. Truman on the occasion of his inau guration. President Quirino states in part: “You carry the mandate of the age of the common man, and the success of your administration in advancing his welfare will undoubtedly be signal victories at large for democracy, free dom, and peace in our troubled world. God steady your heart and hand in this tremendous task and opportunity. I wish to reiterate the gratitude, friendship, and loyalty of my people to the noble people of America, which has unselfishly given us the same opportunity.” Jan. 20 — Secretary of Finance Pio Pedrosa cor rects a statement which appeared in the newspapers to the effect that P400,000,000 was to be withdrawn from the Reserve and Exchange Fund, saying in part: “The amount of P200,000,000 is the maximum total which the law authorizes to be advanced by the Central Bank to the Government. The Monetary Board will fix the amount of each of such advances as may be applied for. The size of each ad vance would depend, first, upon the adequacy of the interna tional reserve to meet all foreseeable demands upon it; second, upon the maintenance of domestic monetary stability ; and third, upon the merits and justification and financial requirements of the ‘productive and income-producing’ project for which such advance would be requested.” The Technical Committee on the Reorganization of the Government Enterprises Council meets at Malacanan for a general discussion of the present system of control over the government corporations. The Committee will study the possibility of simplifying the supervisory work over these corporations. It is composed of Messrs. Pedrosa, Chairman, and Commis sioner F. Cosio, V. Sabalvaro, V. Carmona, C. S. Cer vantes, I. Coscolluela, S. Bayan, and G. S. Licaros; the secretary is Dr. Amando Dalisay. Jan. 22 — The President issues three administra tive orders implementing the Executive Order which created the Rice Emergency Board. Of the first two orders, effective December 8, 1948, one authorizes NARIC to “exercise full control and supervision of the .distribution of rice” and the other designates the Rice Emergency Board as the “sole coordinating body of the Government to gather data from different sources on matters of rice production, consumption, and sup ply for purposes of official publication.” The third order sets forth the rules governing the issuance of licences for the purchase of palay and rice, effective January 15, 1949. Jan. 24 — The Fourth Session of the First Con gress of the Republic of the Philippines opens. Jan. 25 — The President and a large party of government officials leave Manila for a visit to the Ilocos region. Jan. 26 — The technical committee on tariff and foreign trade of the National Economic Council con siders a proposal of the Belgian Legation to reduce the tariff on plate- and window-glass. Jan. 28 — Arriving in three groups, two by plane (19th and 20th) and the third by ship (23rd), 585 refugees from Shanghai, mostly White Russians, have landed at Guiuan, Samar. The U. S. Army is supply ing them with K-rations, tents, cots, bedsheets, mos quito nets, and kitchen utensils. Local foodstuffs are supplied by local contractors and are paid for by the IRO but subject to control by the Government to avoid profiteering. For “deliberately ignoring the instruc tions” of a representative of Malacanan (Technical Assistant Alfredo Eugenio), Colonel Constatin Klug, leader of the third group, was refused permission to land and is to be returned to Shanghai with his family. Jan. 29 — President Quirino and party return to Manila from a tour of the Ilocos region. Philippine Ambassador J. M. Elizalde has notified the Department of Foreign Affairs that prospects are good for Philippine inter-island ship-operators to se cure renewal of the charters under which they are operating certain ships of the U. S. Maritime Commis sion. Unless the General Ship Chartering Law is amended, the operators face loss of their charters by March. Jan. 31 — The U. S. Army formally transfers 60 army-built houses near Marikina, Rizal, valued at P650,000. to the Philippine Government; the houses will be used for Boys’ Town. Banking and Finance By F. C. Bailey National City Bank of Neto York COMPARATIVE financial Summary of Thirteen Manila Banks compiled from reports issued weekly by the Bureau of Banking. Monthly Averages (000 omitted) December 31, 1948 P448.219 December, 1948 P985.471 December, 1948 P455,450 Loans, Discounts, and Advances November, 1948 P430.956 Total Bank Resources November, 1948 P994.103 Bank Deposits November, 1948 P458.222 December, 1947 P349.085 December, 1947 P846.737 December, 1947 P412,050 Debits to Individual Accounts December, 1948 November, 1948 December, 1947 P106.445 P100.422 P113,885 According to the Currency Statement issued by the Treas urer of the Philippines, the following figures are given re lative to the Currency in Circulation: December 31, 1948 November 29, 1948 December 31, 1947 P813,501,310 P836,528,887 P769,915,824 Money conditions became somewhat tighter dur ing the past month and there has been a tendency to ward higher interest rates on loans and advances. The Central Bank has assumed the functions of the Treasurer of the Philippines with respect to sup plying banks with dollar exchange. It has established rates at which it will sell Telegraphic Transfers and On Demand drafts on New York to banks who wish to obtain cover for their sales to merchants. At pres ent the Central Bank rates are: Selling T.T................................. P201.00 Selling O/D.............................. 200.95 The Central Bank has also authorized the follow ing rates within which commercial banks may quote dollar exchange to their clients. Selling Buying U. S. Dollars T.T. over $500.00 ............ P201.75 P200.75 ” Demand over $500.00 . . . 201.625 200.75 U. S. Dollars T.T. and Demand — under $500.00 .................................................... 202.00 200.00 During the month banks quoted generally for T.T. P201.75 selling and P200.75 buying. 64 American Stock and Commodity Markets By Roy Ewing Sivan, Culbertson & Fritz December 28, 1948, to January 27, 1949 THE New York market has been dull and unin teresting for the past month. Moderate strength continued to be evident but prices moved in a narrow range and volume averaged well below a million shares per day. As measured by the Indus trial Average, the market is 179.52 today against 175.98 a month ago. The high for the period was 181.54 on January 22, and the low 175.98 on Decem ber 28 of last year. The sluggish market is probably explained by many traders being on the sidelines pending economic and political developments. On the one hand are most pleasing 1948 earnings reports and a record all-time national production of $253,000,000,000. On the other are an increasing number of soft spots in industry; textile, clothing, and shoe businesses have cut prices in an attempt to keep up sales, all scrap prices are on the decline, and even automobiles are coming into supply. As a result of expected government actions, such as increased taxes, there is a widening acceptance of the fact that total corporate earnings are likely to decline from 20% to 25% this year. That the market is firm indicates, in the opinion of some, that a bus iness recession of this proportion has already been discounted. According to the Dow Theory, the current strength represents a secondary reaction in a bear market which began last June. The theory holds that a primary trend once established remains in force until reversed by an authoritative counter-signal. At present writing, therefore, chartists’ opinion is that lower prices are to be expected. COMMODITIES also moved in narrow range, grains in general declining moderately, reflecting the fact that the United States 1948 harvest was 11% bigger than the previous record. May Chicago wheat is 220-1/8, down from 228-3/4 a month ago on winter crop estimates of 965,000,000 bushels, a near record. May Chicago corn recorded a low of 141-7/8 on Jan uary 26 but recovered to 143, down from 149-1/8 on December 28. Visible supply on January 15 was about 45,000,000 bushels versus 11,500,000 a year ago. New York spot cotton is 33.74 against 32.98 last month, on the heaviest export demand in several months from both Europe and the Orient. The March Contract No. 5 sugar in New York is 5.26 bid, practically unchanged from a month ago. The market is reported as fundamentally steady. Manila Stock Market By A. C. Hall A. C. Hall & Company December 16, 1948, to January 15, 1949 Mining Shares ]N this column a month ago we stated that indica tions were that the market was in the process of reversing the major trend. Since then the market has gone up 15.16 points as measured by the Manila Stock Exchange Mining Share Average, thereby con firming, iii this writer’s opinion, that the bear trend which was in force since early January of 1948 ended on December 1 of last year. As usual when bullish sentiment prevails, factors which were considered bearish several months ago, such as Import Control, the Central Bank, and foreign political developments, did not affect the market. The best performers were Mindanao Mother Lode, Surigao Consolidated, and Atok-Big Wedge, re flecting better news from the properties and the gen eral strength of gold shares in other markets, includ ing New York. Acoje, Consolidated Mines, and Le panto Consolidated registered substantial gains on re ports of satisfactory shipments and earnings. Interest was almost entirely in the producing is sues and what few sales were made in non-producing listed shares were at prices practically unchanged from a month ago. Volume of business done picked up considerably, — additional confirmation that the major trend is bullish. At present writing, the rapidity of the rise suggests that a consolidation, — or correction-period is to be expected. Theoretically this would be a healthy development and provide a firmer base for further strength. 1949 Range High Low 86.90 75.32 M. S. E. Average ............ P .37 P ,JJ Acoje Mining Company ... — — Antamok Goldfields .......... .57 ,J0 Atok-Big Wedge Mining Co — — Baguio Gold Mining Co. .. .0028 .0028 Batong Buhay Gold Mines . — — Coco Grove, Inc................. .014 .012 Consolidated Mines, Inc. .. — — Itogon Mining Company .. .76 .72 Lepanto Consolidated Mining — — Masbate Consolidated Mining .54 .42 Mindanao Mother Lode Mine .17 .15 Misamis Chromite, Inc. ... .02 .02 Suyoc Consolidated Mining .14 .14 San Mauricio Mining Co. . .28 .26 Surigao Consolidated Mining — — United Paracale Mining Co. Up Unchanged Off Up Up Unchanged Change Total Sole, Up 15.16 -------Up .065 329,000 420,750 41,500 1,070,000 30,000 11,1301000 161,000 598,000 516^000 65,000 102,500 73,000 233,000 20,000 During the month there were sales on the overthe-counter mining market of Benguet Consolidated at from P2.50 to P3.00; Philippine Iron Mines at P31; and Taysan Gold Mining “A” shares at P0.20 and P0.18. Commercial and Industrial THERE was moderate activity in the commercial and industrial section and some good gains re corded, notably Central Azucarera de Tarlac, re flecting improved conditions in Central Luzon. San Miguels sold between P57 and P61; this company paid a dividend of Pl.50 on January 15 to stockholders of record January 10. 1949 Range High Low P64.00 P59.OO 550.00 550.00 156.00 155.00 107.00 105.00 Metropolitan Insurance Co. . Pampanga Bus Company .... Philippine Oil Development Co...................................... Philippine Racing Club ...... San Miguel Brewery ............ Williams Equipment Co. Pfd. Williams Equipment Co. Bank of the Philippine Is. .P64.00 Central Azucarera de Bais ..600.00 Central Azucarera de la Carlota ................................. 156.00 Central Azucarera del Pilar ..107.00 Central Azucarera de SaraChina Banking Corporation .. ----Filipinas Cia. de Scguros .... ----Manila Wine Merchants, Inc. ----High Low Cloie Change Total Sale, Up ril.OO 622 Off P30.00 4 Up P 6.00 79 Up P17.00 20 Up P20.00 183 Off .10 1,000 Off .025 510,000 Off .02 14,000 Up P2.00 1714 Off Pl.50 120 Over-the-counter commercial transactions in cluded 75 Victorias Milling at P145; a small block of Jai Alai at P10; 1,400 Philippine Air Lines at P7; and 275 Philippine American Drug Co. at P135. 65 Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. WE have had several indications that the amount of capital tied up in inventories and receiv ables is steadily increasing. There are seve ral factors which have contributed to this condition. Increased buying and selling during the recent holi day season resulted in stocks and accounts which have not yet been fully liquidated. In addition, buy ing against the effects of import control has tended to raise inventories above normal. The situation does not appear to be alarming and we look for a general leveling off during the next few months but in the meantime it may well be advisable to keep a close check on the credit of customers who are apt to over extend themselves. From a management viewpoint the ideal condi tion for a firm doing business on standard credit terms of, say, 30 days, would be to maintain accountsreceivable totals equal to about the same number of days’ billings. This indicates that funds invested in receivables are being turned over regularly. As a matter of practice, however, it seems that there are always enough delinquent accounts on the books to stretch the turnover to something less desirable. Cer tain government departments and agencies are not always, for example, overly prompt in paying bills within the specified period. Again, it is often good business to grant special concessions in some in stances without altering regular credit terms. Al though it is not an infallible yardstick, the rate of turnover of receivables is still a fairly accurate and useful measure of the efficiency with which capital is being employed. Real Estate By C. M. Hoskins C. M. Hoskins & Co., Inc. Note: MANILA real-estate sales were quite active in the number of transactions but low in total peso value during the month of January. Registered sales for the month aggregated Pl,889,924, represented by 208 transactions, which is typical of post-war acti vity, but only two of the transactions, one of P200,000 and the other of Pl45,000, represented a price of over P80,000. The unusually high vol ume in ihigh-priced pro perties changing hands during the past two years seems to have represented in large part an adjust ment process which is drawing to a close. There were abundant offerings of large proper ties by pre-war owners who were attracted by the high prices, and also by many who were unable to finance rehabilitation of their warravaged properties and were forced to sell. There were a fairly large num ber of large properties sold January . February March . . April . . May . . June . . July . . August . September October . November December Total . . by those who were liquidating local fixed investments, or changing their investment portfolios, or settling estates of deceased persons. Most of the offerings in the foregoing categories have been readily absorbed, and sellers are now fewer. On the other side, a large number of new for tunes have been made since liberation and the pos sessors of these new fortunes have been heavy buyers of large properties. How many of this type remain in the market is uncertain. The heavy volume in lower-priced properties in dicates a continued stability in real-estate values. There is no evidence of a decline in post-war price levels which have been established by repeated trans actions. Electric Power Production Manila Electric Company System By J. F. Cotton Treasurer, Manila Electric Company 1941 Average — 15,316,000 KWH 1949 1948 January 33,440,000 ** 27,301,000 February 26,021,000 March 26,951,000 April 26,871,000 May 28,294,000 June 29,216,000 July 31,143,000 August 31,993,000 September 32,012,000 October 33,943,000 November 32,661,000 December 35,104,000 TOTAL 361,510,000 H 0 U R S K I L 0 W A T T * Revised ** Partially estimated Output decreased in January because of a 10-day shutdown of the Impedance for repairs. It should be noted, however, that despite this loss of capacity the January output exceeded all prior months except Octo ber and December, 1948. January, 1949, output was 6,139,000 KWH great er than January, 1948, or an increase of 22.5%. The decrease from December, 1948, was 1,664,000 KWH, or less than 5%. ESTATE SALES IN MANILA, 1940-1948 by the Bureau of the Census and Statistics REAL Prepa/red A large percentage of 1945 sales and a diminishing percentage of 1946 sales, re present Japanese ~ ‘ ‘ ..-i 1940 P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 Occupation 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 (?) transactions not recorded until after liberation. 1945 1946 1947 19^ P 7,943,605 P 4,385,011 P 6,030,012 P 3,64 1,337,830 2,267,151 7,217,317 3,87 (?) 2,622,190 7,166,866 4,24 213,262 1,916,293 8,611,076 5,02 962,008 3,684,937 4,618,181 3,12 1,212,780 3,637,956 3,988,560 8,01 1,123,565 4,974,862 4,097,183 5,14 699,740 4,438,510 5,627,572 6,19 1,870,670 4,698,896 7,437,213 4,73 2,096,893 5,545,800 6,083,486 3,04 2,555,472 3,340,384 4,177,054 5,38 2,874,408 4,025,926 3,205,584 5,35 66 BUILDING CONSTRUCTION IN MANILA: 1936 TO 1948 Compiled by the Bureau of the Census and Statistics from data supplied by the City Engineer’s Office. I 1936 1937 1938 1939 1940 1941 I 1945 I 1946 I 1947 1948 | (Value) (Value) (Value) (Value) (Value) (Value) | (Value) | (Value) | (Value) (Value) January . P 540,030 P 426,230 P 694,180 P 463,430 Pl,124,550 P 891,140 P P 1,662,245 P 3,645,970 P 6,571,660 February . 720,110 479,810 434,930 1,063,050 1,025,920 467,790 — 2,509,170 3,270,150 6,827,005 March . . 411,680 396,890 1,300,650 662,840 671,120 641,040 — 3,040,010 3,398,910 7,498,560 April . . 735,220 659,680 770,130 1,029,310 962,420 408,640 462,020 3,125,180 8,295,640 7,370,292 May . . . 400,220 670,350 1,063,570 1,139,560 740,510 335,210 1,496,700 3,968,460 5,564,870 8,570,410 June . . . 827,130 459,360 754,180 809,670 542,730 418,700 2,444,070 3,904,450 5,898,580 10,217,840 July . . . 302,340 691,190 756,810 495,910 357,680 609,920 1,741,320 3,062,640 9,875,435 7,771,487 August . . 368,260 827,660 627,790 622,050 661,860 306,680 1,418,360 4,889,640 7,428,260 7,568,950 September . 393,100 777,690 684,590 554,570 590,380 530,830 1,015,250 7,326,570 7,770,310 7,095,860 October . . 663,120 971,780 718,190 645,310 738,700 699,040 639,030 4,630,550 6,747,240 5,368,800 November . 460,720 320,890 972,310 461,580 485,100 315,930 1,364,310 4.373,390 7,088,283 3,424,125 December . 648,820 849,160 503,230 1,105,910 333,490 67,553 1,605,090 5,034,600 4,924,320 4.507,580 Total . . P6,170,750 P7,530,690 P9,280,560 P9,053,250 P8,234,460 P5,692,273 P12,186,150 P47,526,905 P73,907,248 P82.792.569 Annual Average 514,229 627,557 773,380 754,438 686,205 474,356 1,015,513 3,960,575 6,158,937 6,899,381 Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for December, 1948, amounted to 189,166 tons, which was considerably more than the 150,846 tons exported during December of the previous year. The shipping strike on the United States Paci fic Coast caused no falling off in exports; in fact, the 189,166 tons lifted during December was more than the 179,766 tons carried during the previous month of November. Principal commodities exported during Decem ber, 1948, as compared with December, 1947, were: 191,8 191,7 Alcohol ....................... 40 tons — Coconut, desiccated . . 8,701 ” 8,425 tons Coconut oil ............... 5,670 ” 5,204 ” Concentrates, copper . 2,400 ” — ” gold .. 186 ” 214 ” Copra .......................... fc2,708) ” 55,549 ” Copra cake ............... 3,977 ” 2,240 ” Embroideries ............ 117 ” 59 ” Empty cylinders ....... 216 ” 249 ” Furniture, rattan .... 493 ” 624 ” Gums .......................... 92 ’’ 93 ’’ Hemp .......................... ^45,805)bales 45,232 bales Household goods ........ 134 tons 55 tons Junk metal ............... 4,665 ” 1,177 ” Kapok ......................... 75 ” 101 ’’ Logs .............................. /l,208,197| bft. 595,878 bft. Lumber’....................... (3,986,938"! ” — Molasses ..................... (13,066^ tons — Ores, chrome ............. (26.500A ” 20,500 tons ” iron ................. G.6,196'1 ” — ” manganese........ 4,748 ’’ — Rattan ........................ 186 ” 228 tons Rope ........................... 377 ” 233 ” Rubber ....................... 135 ” 134 ” Skins and hides ........ 208 ” — Sugar, raw ............... (.19,9981 ” 17,500 ” Transit cargo ........... 57 ” General merchandise (11,558\ ” 14,711 ” Port of Manila By R. L. Bary General Manager, Luzon Brokerage Company CONGESTION on the piers and within the customs area is a condition which will probably recur from time to time in the future, and is one which will net be easily solved in spite of sincere efforts bn the part of the Philippine Ports Terminals Company, customs officials, and custom^ brokers. With Pier 9 not available for use and with the lack of overhead cranes, rush periods will cause con fusion, a fact recognized by all interested parties. All freight-handling agencies must cooperate to im prove the situation as much as possible. On January 24 this matter was discussed in a two-hour meeting between Commissioner of Customs Jose de Leon, Philippine Ports Terminals Company officials, harbor police, the Arrastre Advisory Com mittee, and customs brokers. Recommendations came from all interests present and are being considered. It is the hope of the customs brokers that action will be taken for the alleviation of the situation both for the benefit of themselves and their customers. Careless piling of cargo on the pier has occurred in the past to the extent that truck lanes were blocked, but this has already been stopped by means of con trolling the rate of discharge of the ships. Traffic con trol is being considered with the view to adopting measures to speed up movements of cargoes on the piers and within the area. Apparently the Philippine Ports Terminals Company has enough laborers and equipment on the piers to meet the cargo-handling problem, but measures were discussed for better co ordination between customs brokers and the Philip pine Ports Terminals Company so as to have men and equipment available where and when needed. Within a short time definite controls should be in operation. One of the major losses of time has been in the checking of cargoes moving through the gates, and it was suggested that additional men check the trucks, several at a time, before the gates are reached, and trucks be allowed to pass through the gates on pres entation of a pass showing that inspection has been completed and that its load is in order. 67 Parties on both sides of the argument over the pier congestion have admitted that the problem is a really serious one, not easily solved, but cooperation between customs brokers and the various government entities should result in an improved situation. We hope to report in the next issue of the Jour nal the final recommendations of the committees and success of new measures put into operation. Inter-Island Shipping By G. F. Vander Hoogt Manager, Everett Steamship Corporation DURING the month of January, shipment of goods between Manila and other parts in the Philip pines was fairly brisk. We believe that one of the contributing factors was the arrival from the United States of considerable amounts of merchandise which has been more or less backlogged by the long Pacific Coast strike. This merchandise began to arrive about the first of January and continued, with ocean vessels arriving almost daily, throughout the month. Although, during the strike, there was no great shortage of necessary goods in the Philippines, as these were supplied from the Atlantic Coast and the Gulf, it appears that the new merchandise arriv ing after the Pacific Coast strike attracted consider able buying by merchants in the southern cities. An other factor tending to improve inter-island carryings is, no doubt, the lesser number of vessels competing for the trade, as commented upon in previous articles in this Journal. The opening month of the year 1949 has been one of encouragement for inter-island operators, and it is hoped that the normal flow of inter-island business ■will continue throughout the year without the previous handicap of too many vessels to carry the cargo ■offered. Land Transportation (Bus Lines) By L. G. James Vice-President and Manager, A. L. Ammen Transportation Co., Inc. TRUCK and bus operators are faced with con stantly increasing costs of operation due to sev eral factors over which they have no control. 1 The basic cost of a new unit, including chassis and body which in 1941 amounted to P4.000 now requires an initial investment of approximately PIO,000. 2. The cost of gasoline which is still the principal fuel used in public utility operations is more than 50% higher than in 1941. Lubricants are in the same proportion. 3. The demands and requirements of Labor are constant ly becoming moye burdensome. Present wage levels are from 2 to 4 times those in 1941, depending upon the locality. 4. Prices for the many essentials that are necessary in keeping a fleet of busses in operation — tires, spare parts, shop equipment and building materials, are at high levels and in most cases show a constant tendency to increase. 5. Tax burdens steadily increase. The average reput able company which meets its tax obligations conscientiously, pays out a present average of 30% to 40% of the value of its paid-up capital every year by way of tax responsibilities. As an example, one company operating on Luzon paid the Gov ernment P450.000 in taxes of various kinds during 1948. This represented 35% of its paid-up capital. This company showed 1948 net earnings of P30.000 on a gross income of P3,000,000, which indicates the disparity between the amount paid in taxes and the amount available for distribution to stockholders by way of dividends. 6. Provincial operators are beset by toll charges which are established in some cases by the national government in connection with bridges on national highways and in other cases by provincial governments at bridges on provincial roads. In the latter case, the funds so collected are not exclusively used for the erection and maintenance of the bridges con cerned. Toll fees paid by a number of companies amount to as much as P150,000 per annum for each. The rising cost of operation is not offset by a corresponding increase in basic rates. Competition is so widespread and so lacking in supervision and regulation by government authority, that a general policy of rate reduction has been forced upon all ope rators. A number of the well known companies co vering lines between Manila and outlying provinces have adopted the P0.01 per km. passenger rate which was a pre-war standard. Others have been able to maintain a rate of P0.01i/2 per km. When these rates are compared with the current average cost of opera tion, which amounts generally to 2i/2 to 3 times the pre-war cost, the present prospects for prosperous operation are remote. A number of the largei- operators are substitut ing Diesel equipment for gasoline-powered units. Operating experience indicates that Diesel power ef fects a saving of P0.03 to P0.04 per bus kilometer as compared to gasoline power. This seems to be the only possible solution of present problems involving high operating costs and low rates. The initial investment in a Diesel bus is consi derably higher than that required for a similar unit with a power plant using gasoline for fuel. The for mer costs P2,300 to P3,500 more than the latter, de pending upon make and type of Diesel. However, a Diesel truck or bus operating an average of 6000 kms. per month, will save P180 to P240 per month in fuel cost. Estimating the average life of the unit to be 5 years, the total net economy of operation is appre ciable. A list of the well known transportation compa nies which have invested in Diesel equipment with satisfactory operating results includes Pangasinan Transportation Co., Inc., La Mallorca, Halili Transit, Pampanga Bus Co., Inc., Laguna, Tayabas, and Batangas Transportation Companies, Negros Transpor tation Co., West Leyte Land, and others. Operators in the sugar-producing areas will no doubt install alcohol-conversion equipment for use in their present units which require gasoline as a fuel, as soon as alcohol becomes available in sufficient quantities. The use of lower-cost fuel seems to be the only apparent means of reducing operating costs. Under the present ruinous competitive situation, the operator who lowers his costs will be the one who sur vives with a chance to earn an operating profit as his competitors retire from the field. Mining By Chas. A. Mitke Consulting Mining Engineer THE principal Philippine exports before the war, were sugar, lumber, and minerals. The sugar industry, employing approximately 2,000,000 people and paying, in 1932, over P20,000,000, or 43% of the Insular Government revenue for that year, dates back to Spanish days, but mining, while prosecuted before the time of Magellan, and conducted <on a small scale during the entire Spanish colonial period, never attained commercial importance until after the Ameri can occupation, when more scientific techniques of prospecting and modern methods of mining were in troduced. As a matter of fact, it was not until around 1934 or 1935 that mining attained any real signifi cance. At first, mining consisted chiefly of gold and silver. To this, later were added iron, chromite, man ganese, and copper. Assets of all mining companies in 1938 totalled £201,225,396, of which 94% apper tained to gold mines, 2% to iron mines, 2% to chrome mines, 1% to manganese, and 1% to copper mines. While largely an agricultural country, the impetus given mining during the boom years, 1934-35, through the influx of Spanish and Chinese money, bid fair to create a rival for sugar, long the bonanza crop of the Philippines. In 1940, Philippine mineral production ranked third in value among Philippine products, being ex ceeded only by sugar and rice. It accounted for ap proximately 30 % of the total export trade; it paid the highest wages in the Philippines, having disbursed £29,163,416 to 44,276 laborers and employees; it con tributed £7,447,616 to governmental revenue in the form of taxes, and paid annual dividends to stock holders of approximately £18,000,000. The following year, 1941, promised to show even better results, and there was a possibility that mineral exports would equal, possibly exceed, those of sugar. Then came the war and its death and destruction. Practically every mining camp suffered, some worse than others. Without funds for rehabilitation, ham pered by difficulties in obtaining equipment and sup plies, recovery has been slow. However, five gold mines, and several iron and chrome and copper mines are now operating. Loans and gifts of funds from the United States are helping the country materially, but much more is needed if it is to take its place among the galaxy of nations, independent not only in the government, but in its ability to finance itself and pay its way. Apart from its agricultural products, the Philip pines has great natural undeveloped resources in the form of minerals not yet opened up or exploited. In dications are that only a small fraction of the rich mineral deposits have as yet been uncovered and min ing still remains one of the great potential sources of the nation’s wealth. FOR purposes of comparison, let us look at another country which a few decades back was in much the same position as the Philippines. For two centu ries, Canada was chiefly noted for its furs, later also for its wheat and wood products. The world had considered Canada as a country good only for a few raw materials, otherwise it was thought of as cold, bleak, and inhospitable. That it contained mineral stores of incalculable richness was beyond imagina tion. A famous American geologist, making his first examination, is reported to have exclaimed, “There just can’t be a mine in this country. Everything is wrong, no rocks, no carbonates, no gossan, no hills, no mountains. Nothing but this hellish bush, as you call it, and flies and mud.” The particular tract of “hellish bush” he was looking at at the moment, later became one of the world’s notable mining camps, with an annual production of $40,000,000. As time moved on, Canada was to learn that its bush was “an im perishable asset.” As an agricultural country, producing grain, wood products, and furs, Canada very likely would have re mained a comparatively unimportant member of the British family of colonies, but mining transformed the economic and social life of the Dominion, lifting it to a position of importance among the nations of the world. The last 25 to 30 years have been epochmaking for Canada. Off to a slow start, it has pro duced gold at the rate of $200,000,000 yearly, with every prospect that this figure will be materially in creased. In 1900, the total mineral production of the Dominion barely exceeded $64,000,000. In 1942 this figure had increased to $567,000,000. Canada must export. It produces far more than it requires in almost every essential, and while its in dustries have increased, raw products obtained from the back country comprise the livelihood of the nation. In addition to being its major industry, the gold pro duction, normally $200,000,000 a year, has given Ca nada an enviable position at international monetary conferences, besides furnishing domestic currency and credit requirements. The world has become dependent on Canada for such necessities as nickel and asbestos. Canadian uranium played a leading part in the devel opment of atomic energy. It ranks second in zinc and cadmium production; third in gold, copper, magne sium, and cobalt; fourth in silver and lead. In short, as one authority has stated, “Canada would not be the modern, virile country it is today without the mining industry.” In Canada, anyone over the age of 18, regardless of nationality, can purchase a miner’s license for $5 or $10 (it varies in the different provinces) which entitles him to stake a designated number of claims each year. This freedom from restriction is unique. The prospector is circumscribed only by assessment work requirements. He must perform a specified number of day’s work on any claim he stakes. A pa tent, or some other form of ownership is granted after he has completed five years’ work, and thereafter he only pays a nominal tax as the permanent owner of the land. The Canadian miner receives a larger week ly wage than workers in any other industry. With his family and those dependent on the industry he con stitutes 7% of the population. The taxes obtained from mining are enormous, enabling Canada to main tain a pay-as-you-go fiscal policy; this was the chief reason why Canada refused to accept Lend-Lease dur ing the war. Canada is a fabulous mining country, but Cana dian mining has always meant hard work, back-break ing prospecting, and sound geological knowledge. TODAY, the Philippines stand where Canada stood some 30 odd years ago. It also has an “imper ishable asset” in its bush, or jungle. Moreover, pros pecting here is easy compared to the difficulties en countered in Canada, where the extreme cold — 50c below zero, the flies, and the combination of peat, rot ten wood, swamp, and water, known as “muskeg” con fronts the prospector at every turn; where canoes and packs must be carried from stream to stream, or lake to lake, and where the difficulty of bringing in sup plies makes the search for mineral an almost unbear able hardship. There is no reason why the Philippines should not follow in the footsteps of Canada. The dis coveries already made here are sufficient encourage ment to search for additional ore-bodies, the discovery of which would tend to lift the Republic into an envia ble position among the nations. 69 Copra and Coconut Oil By Manuel Igual General Manager, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company December 16, 1948, to January 15, 1949 THIS period covers the last two weeks in 1948 and the first two weeks in 1949, and also represents a period of sustained strength and one of acute weakness. During the last two weeks of December, the co pra market held steady to firm, with buyers willing to pay up to $255 c.i.f. or f.o.b. and sellers reluctant to accept these prices because they felt copra might be scarce in January, and because estimated stocks on hand were light. Consequently, sellers did not gen erally take advantage of what now appears to have been an excellent opportunity, and the year ended with sellers holding for $260, and with buyers show ing less interest, even at $255. At the beginning of 1949, the picture suddenly changed. Preliminary estimates of oils and fats avail able for Europe indicated that there will be plenty of copra available for all the ECA dollars allotted, largely because of increased availability of fats in soft currencies. Edible oils, notably cottonseed, soya, and peanut, began to decline sharply on the American' • market, due to surplus crops, and tallow was parti cularly weak. American oil-buyers immediately with drew from the market entirely and refused to quote, and this made it impossible for Coast crushers to buy copra unless they happened to be in a short position, which but few of them appeared to be. Consequent ly, Philippine copra declined in ten days from $250 to $180, a sensational drop of over 25%. This ten dency was reinforced by the French buying policy, . where the market was brought down from $240 f.o.b., shipped weights, to $197.50 f.o.b., delivered weights, equivalent to little more than $185 f.o.b., shipped weights. After making these purchases, France drop ped out, and the subsequent interest from Europe was negligible. Buyers pessimistically predicted that copra would soon drop to at least $175, and maybe $150, which would be reasonable if coconut oil were to fall into line with other domestic oils. But with the sharp drop, production immediately dried up, and it became evident that there should be a fair amount of short covering to be done on a market which appeared to be reasonably well sold up for January/February shipment. Therefore, the market steadied at $180 to $185, and, at the close of the period, sellers were hold ing back, it being felt that any copra required for prompt shipment could command fully $190. As mentioned previously, large oil buyers were practically out of the market for the whole period, though a little spot oil was sold in the last half of December at‘around 21i/2^ a lb. The nex transac tion reported was a speculative purchase of 3000 tons by the United States Government, but by January 15, there was no interest at any price, except for scat tered spot cars at 14^, f.o.b. Pacific Coast, with no indication of when buyers might change their views. At the close of the period, there was no strength in outside markets whatever, and there was nothing to indicate that copra or oil would be in demand at other than prices considerably lower than we have recently seen. While it was not anticipated that sup. plies would be heavy in January and February, and while this is the short period of the year, it was dif ficult to see how these factors could hold prices up against the world trend, except for occasional small coverings by shorts. After a rapid drop, a reaction is to be anticipated, but in this case it is difficult to believe that the reaction could be prolonged or sharp. Consequently, the outlook for Philippine copra and Philippine oil during the first part of 1949, while un predictable, certainly does not give hope of other than a gradual leveling down of prices to more nearly the equivalent of other oils and fats, with an unusually weak tallow market exerting strong additional pres sure. LOCAL copra markets naturally reflected the out side trends, and even in Manila, prices dropped to a new low since 1947. Copra required for local production, however, commanded somewhat better prices than world equivalents, particularly because of the interest of desiccators who maintained their price for nuts at well over copra values. At the close of the period, desiccators were reported dropping their prices. Exports for the month of December were about as expected, totalling 53,808 tons, with destinations as follows: United States Pacific Coast Atlantic Coast Gulf ............... 10,231 6,498 8,220 .... 24,949 Canada .......................................................... 2,000 South America ............................................ 4,510 Europe ............................................................ 22,349 Copra exports for the year 1948, while still un official, indicate the following: United States Pacific Coast ............ 228,675 Atlantic Coast .......... 61,143 Gulf ............................ 69,320 .... Europe ........................................................ Canada ......................................................... South America ............................................ Japan ............................................................ 359,138 199,376 17,799 14,541 24,340 615,194 Total ................................................ During December, shipments of oil, all of which went to the East Coast of the United States, totalled 5,670 tons, and shipments for the entire year totalled 43,013 tons, equivalent roughly to 71,000 tons of copra. Total 1948 exports of copra and oil in terms of copra were therefore slightly under 700,000 tons. Whether 1949 will be a better oil year or not will depend en tirely on whether prices for oil in the United States will be in line with copra values here, which has proved to be rarely the case in 1948 and which is an impos sibility at this particular time. The copra-cake market was dull, but there were but few offerings. There was some interest from Europe at about $47.50 per long ton f.o.b. Meal on the Coast, however, sold from $70 down to $67 per short ton c.i.f., still slightly better than European equi valents. Prospects were that meal would drop further as the Spring advances. 1949 gives promise of being a normal copra year in the Philippines, perhaps 10% to 15% better than 1948. Price-wise, however, prospects for 1949 are far less favorable than for last year, and it would not be surprising if the average price in 1949 should be well under $200 per ton, gradually declining as the year progresses. This will surely be hard on producers, and on the national economy, but is in line with world 70 February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL _________ 71 values of oils and fats as they are today, and as they are expected to be during the year. The picture is not bright, and the uncertainty is not conducive to what used to be considered legitimate trading. Desiccated Coconut By Howard R. Hick President and General Manager, Peter Paul Philippine Corporation THIS report covers the period from December 15 to January 15. In the last half of December, copra remained firm and sellers were even thinking in terms of a rise in the market in January and were reluctant to sell. As workers on the plan tations stopped work for the Christmas season, even a delivery premium failed to induce sellers to sell. As the first half of January opened there was a sud den drop in copra from P47 per 100 kilos of resecada to a low of P31, which is almost unprecedented in the history of the business. This sudden collapse of the copra market was fol lowed by a similar collapse of the raw nut market and although this was seriously damaging to sellers, it was a healthy thing for the business. For a long time coconut oil was far out of line with other oils and many times in the past year copra value was in ex cess of oil value. These factors presented a very un real copra and nut market and could not sustain healthy business conditions. Today’s prices are in keeping with influencing factors and it may be presumed that copra has come back to earth, let us hope, to stay. Any rise or fall in the market will likely reflect a more accurate world and domestic picture than we have had for the last 18 months. The nut supply during January has been abun dant and promises to continue that way until Feb ruary. Labor problems remain unchanged, but the Hukbalahap trouble has subsided, practically all of the areas now being open, and procurement of nuts has eased up considerably because of this factor. The following are the shipping statistics for the month of December and the year 1948: December Total for .19^8 Franklin Baker Co. of the Philippines 4,134,800 42,976,816 Blue Bar Coconut Co........................... 1,842,450 17,379,490 Peter Paul Philip pine Corp............. 3,313,900 27,009,000 Red V Coconut Pro ducts, Ltd............. 2,050,100 15,575,100 Sun - Ripe Coconut Products, Inc. . . 451,000 7,266,100 Standard Coco nut Corp.............. 236,000 2,096,800 Isabelo S. Hilario — 1,273,500 Cooperative Coconut Products, Inc. . . 2,082,640 3,344,280 Tabacalera............. 493,960 Luzon Desiccated Coconut Corp. .. 376,860 1,553,540 12,899,070 120,557,266 The bills of these birds never change. The peculiar bird’s bill at the left is long and thin. The duck’s bill is always sort of flat. The pelican’s bill always has a pouch attached. Each species retains the same distinctive bill — year after year. It’s a far different story with consumers’ electric bills. It is only by constant care and turning off all lights and appliances when not required that you can keep your electric bill at a minimum. In these days of power shortage we ask you to be very careful. MANILA ELECTRIC COMPANY 134 San Marcelino, Manila 72 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 Sugar By S. Jamieson Alternate Secretary-Treasurer, Philippine Sugar Association THIS review covers the period from December 28, 1948, to January 28, 1949. NEW YORK MARKET.—The period opened with large offerings of Cuban, Puerto Rican, and Phil ippine sugar for shipment from January to April, 1949, at 5.75$ * , sellers indicating a willingness to shade this price a little but buyers showing no interest. During the closing days of the year, sales were made at from 5.65^ to 5.72$!. On the resumption of business after the New Year holidays, the market had a firmer tone and refiners made limited purchases at 5.75$! but still left untouched the major portion of the sugar on offer at that price. On January 3, refiners advanced the refined price from 7.75^ to 8.00$ * , though many were willing to accept 30-day contracts at the former price up to the close of business that day. During the greater part of January, the market for raws was. dull and prices had a tendency to decline. Sellers in gen eral, however, gradually withdrew their offers rather than force supplies on the market, and there was not much sugar offering. The market closed with a few sales at 5.65$! and buyers willing to buy further quan tities at this price for suitable positions. The spot price at the close was 5.65$!. Substantial quantities of Philippine sugar were sold during the period under review, as will be seen from the following list of sales: December 30, 1948—2,000 tonsMarch/April shipment 2,000 ” January/February ” 2,000 ” February/March ” 6,000 ” March/April ” 31, ” —2,000 ” January/February ” 2,500 ” January/February ” January 4, 18, 20, 22, 29, at 5.70 5.65 5.65 5.70 1949—2,000 ’’ January/February 3,000 ” February 4,500 ” February/March 2,000 ” March/April ” —1,000 ” now loading 1,800 ” 2nd half January ” ” —2,000 ” afloat 2,000 ” January 2,000 ” April/May ” —7,500 ” February/March ” —2,500 ” afloat 5.75 5.65 5.65 Quotations on the New York sugar exchange for the period December 15, 1948, to January 31, 1949, under Contracts Nos. 4 and 5, ranged as follows: Contract No. 4 (World Market) High Low Close Sales March 4.00 3.96 3.96 3,550 tons May 4.03 3.97 3.97 1,050 ” July 4.04 3.98 3.98 1,300 ” September 4.05 3.97 3.97 600 ” March, 1950 3.65 3.42 3.41 2,850 ” Total 9,350 tons ENGINEERING EQUIPMENT AND SUPPLY COMPANY MACHINERY—MECHANICAL SUPPLIES—ENGINEERS—CONTRACTORS Engineering Shops No. 1 CALLE L. SEGURA PASIG RIVER, MANDALUYONG TEL. 6-65-68 General and Sales Offices 174 MARQUES DE COMILLAS MANILA, P. I. TEL. 3-24-08 3-26-20 OPERATING (A) Machine Shops (B) Steel Plate Shops (C) Structural Steel Shops (D) Welding Shops (E) Blacksmith Shops (F) Sheet Metal Shops (G) Marine Railway Steel Tanks of all Types and Sizes, Steel Truck Tanks, Steel Truck Dump Bodies, Mine Ore Cars, Steel Fabrication and Erection, Sheet Metal Fabri cation and Erection, Machinery Installations and Repairs, Marine Repairs. February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 73 Total Contract No. 5 December High 5.42 March 5.32 May 5.32 July 5.32 September 5.32 March, 1950 5.00 201,550 tons Low Close Sales 5.18 5.18 800 tons 5.11 5.11 51,350 ” 5.11 5.11 85.300 ” 49.300 ” 5.12 5.10 5.12 5.11 14,450 ” 4.91 4.91 350 ” Regarding sugar exchange quotations, it may be of interest to know that the cumulative average for the calendar year 1948 for No. 4 contract was 4.2366^per pound, and for No. 5 contract, 5.0453^. In our previous review, we mentioned that the United States consumption quota for 1949 had been set at 7,250,000 short tons. We now give below the allocation of this quota: Basic Quota for U. S. A. — 1949 Less Statutory Basic Quotas Domestic beets 1,800,000 Mainland cane 500,000 Hawaii 1,052,000 Puerto Rico 910,000 Virgin Islands 6,000 Philippines 982,000 Short tons 7,250,000 5,250,000 Balance for Cuba and Foreign Areas 2,000,000 To Cuba 98.64% 1,972,800 Foreign 1.36% 27,200 2,000,000 Regarding the Philippine allocation of 982,000 short tons, a deficit of 125,000 short tons has already been declared and reallocated as follows: To Cuba 95% 118,750 Foreign areas 5% 6,250 125,000 This leaves a net allotment of 857,000 short tons to be filled by Philippine sugar during the calendar year 1949. LOCAL MARKET.—(a) Export Sugar.—There was a good demand for export sugar during the last week of the year, and the market advanced to P13 per picul ex mill warehouse. After the New Year, how ever, prices declined in keeping with the downward trend of New York prices, and for a time buyers were not greatly interested and were quoting nominally P12.60 per picul ex mill warehouse. During the past few days there has been an improvement, and at the close buyers are quoting from P12.70 to P12.90 per picul. (b) Domestic Sugar. — As was expected, there was a steady decline in prices after the New Year as supplies became more plentiful. Latest sales were made on the basis of P17 per picul ex mill ware house for ordinary centrifugal sugar and washed sugar is quoted at from P19.50 to P22 per picul. GENERAL.—The 1948/49 milling season is now in full swing in all sugar districts. "The records of the Uniter! States and the United Kingdom have demonstrated that over a period of many years productivity in industry bears an important relationship to the amount of energy which is available per employee. In the United States this figure is approximately twice that in the United Kingdom. This fact, in our opinion, accounts In large measure for the greater output per man hour in many industries in the United States.’’ — Jicport of the Anglo-American Council on Productivity. DELVAC OILS have been particularly developed to provide the utmost in lubrication qualities that help engines to deliver efficient, economical, long life performance under the most severe operating conditions. DELVAC OILS are specially treated to provide ex ceptional stability and powerful resistance to the oxidizing influences always encountered in heavyduty service. •oil-purpose”, heavy-duty engine oils FOR All AUTOMOTIVE-TYPE DIESEL RETOR ENGINES DELVAC OILS have the factory and service ap proval of prominent equipment have won notable endorsement units employed in all types of the entire automotive field. manufacturers and from operators of service throughout STANDARD - VACUUM OIL COMPANY PHILIPPINES 74 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period December 16, 1948, to January 15, 1949. In New York, the market period opened on a very steady tone, but grad ually developed into a dull affair, and ended with sellers rather than buyers at the quotations given be low. At the time of writing, buyers are showing a tendency to hold off in anticipation of lower prices. A fairly large business was done by SCAP in Davao hemp toward the end of the period. This ten dency developed when it became apparent that United States buyers would not pay the prices asked by ex porters here except for limited quantities. Prior to this, exporters had preferred to sell to the United States market as prices there were slightly better than when selling to Japan. Business to other markets was once again small. In the Philippines, the market closed rather steadier than in the consuming markets due to pro vincial sellers still being of the opinion that the small available supply of abaca would prevent a decline. Whether their ideas are correct remains to be seen, but local producers must not forget that manufactur ers are finding ways and means to reduce their con sumption of high-priced Manila hemp by using sub stitutes. There are also indications that the over-all business picture in the United States is not as bright as heretofore and a lessening demand for manufac tured products is becoming a distinct probability. This may fairly quickly manifest itself in a decreased demand for raw products such as Manila hemp. An interesting feature noticed during the month was the apparent increase in demand for non-Davao hemp which resulted in a small rise in values; where as Davao prices ended about unchanged. This in part may be explained by the somewhat higher pro duction of Davao hemp and the continued scarcity of non-Davao hemp. Nominal provincial values on January 15 were: Per Picul Basis Loose Davao I . P70.50 — Unchanged from December 15 Davao JI . 69.00 — Davao G . 61.50 — Non-Davao I P68.00 — Up P2.50 from December 15 Non-Davao G 51.00 — Up P0.50 ” Non-Davao K 30.00 — Unchanged ” ” ” New York quotations: Per lb. c.i.f. Per lb. New York From December .15 Davao I ............... 30-5/8^ Down 3/8<S Davao JI............ 30-l/4<? Down 3/8(! Davao G ............. 27-3/8<J Down 3/8^ Non-Davao I . . . 30-l/8< * Up l/4< * Non-Davao G . . . 23-1/8^ Up l/8tf Non-Davao K . . . 15-1/2^ Unchanged Production for December, 1948, was 36,884 bales, — an increase of 6,745 bales from November, 1948. Non-Davao balings for December were slightly better than those of November, being 15,936 bales as comALLIS - CHALMERS WORLD’S LARGEST LINE OF MAJOR INDUSTRIAL EQUIPMENT HYDRO-TURBINES Engineered for High Performance! Experience gained in building turbines for some of the world’s largest hydro-electric power plants, including the great Boulder Dam, enables Allis-Chalmers to offer equip ment engineered to highest standards of performance and efficiency. Allis-Chalmers makes hydraulic turbines of all types— Propeller, Francis, and Impulse—will build to order the correct turbine to give maximum output in your par ticular installation. Allis-Chalmers is the only manufac turer in the Americas that builds in one factory, turbines, generators, valves, and auxiliary equipment. CONSUL.T US ON MACHINERY: We supply many different types of Allis-Chalmers equip ment to meet a wide variety of industrial requirements. If a machine is made by AllisChalmers, you’re sure of fine craftsmanship, sound design! EXCLUSIVE DISTRIBUTORS THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Cor. Tacoma & 2nd Sts. Telephones Branch Office at: Port Area, Manila 2-68-48 & 2-67-47 Bacolod, Negros Occidental Electrical Equipment Cement and ^Mining Machinery Motors and V-Belt Drives Centrifugal Pampa bruaiy. 194b AMERICAN CHAMBER OF COMMERCE JOURNAL 75 pared with 15,612 bales for November. The bulk of the increase for the month, however, resulted from Davao balings reaching 20,948 bales, as compared with 15,127 bales for November, — an increase of 5,821 bales. Total pressings for 1948 amounted to 577,464 bales, compared with 786,765 bales for 1947, — a de cline of 209,301 bales for the year. Unfortunately for the trade, there are no signs at this time that 1949 production will be much in excess of 1948. Tobacco By the Conde de Churruca President, Manila Tobacco Association LATEST events in the tobacco business have been two conventions sponsored by the National To bacco Corporation; the first of manufacturers, and the second of planters. Many interesting points were discussed during the first one, among them the ways to obtain better tobacco and bigger crops; possibilities of. increasing the exports of cigars and leaf tobacco; and ways to stop the increasing imports of cheap brands of for eign cigarettes which are sold here at prices well under the original factory wholesale price. These imports are not only endangering the lo cal industry but are in very unfair competition with established and well known brands of American ci garettes. In one instance cigarettes invoiced and selling at P12.50 c.i.f. Manila, and naturally classified under the lowest income-tax bracket of P2 per 1000, have a wholesale factory price in the United States of $17’. During the tobacco planters’ convention, a Plant ers Association was created, and it is hoped that its success will benefit not only the farmer but the to bacco business in general. There is no change in the estimates of the size of the crops; if anything, there is a probable increase in the Union and Pangasinan figures. Sales are few and prices tend to decline, in ex pectation of the results of the 1949 crop. One of the chief causes for the high prices paid last year in the Union and Pangasinan provinces, and consequently in the other tobacco regions, was the speculation on war. Many Chinese merchants wanted to secure large quantities of tobacco, which in case of war would have represented a solid and very pro fitable investment. In the other case, as their over head expenses are practically none, they could always dispose of the tobacco without loss, selling to local small factories, many of which are owned by them. This year, with 80% or more production and talk of war having subsided, it is very probable that prices will descend to the 1947 and 1946 levels. AN analysis of the annual progress and program reports submitted to the Food and Agriculture Organization of the United Nations by 30 member nations reveals that in spite of a slight gain in food and agriculture supplies through out the world in 1947-48 over other post-war years, only seven of these reporting member nations had food supplies which, if equitably distributed, would have provided adequate nutri tion for ail their own people.”—United States Information Service. PACIFIC MERCHANDISING CORPORATION John R. Wagner, Pres. 209 Rosario Manila EXCLUSIVELY REPRESENTING. . . CORBIN LOCK COMPANY AMERICAN RADIATOR & STANDARD SANITARY CORPORATION NATIONAL CARBON CO., INC. “Eveready” flashlights & batteries LINDE AIR PRODUCTS CO., INC. “Union” Carbide THE PARAFFINE COMPANIES, INC. “Pabco” Products AMES BALDWIN WYOMING COMPANY BALL BROS. MASON JARS WEST BEND ALUMINUM COMPANY MALLEABLE IRON FITTINGS CO. FAIRBURY WINDMILL CO. CAPEWELL MANUFACTURING CO. SLOAN VALVE COMPANY BOMMER SPRING HINGE COMPANY HUBBARD & COMPANY COLUMBUS COATED PRODUCTS CO. KEENEY MANUFACTURING COMPANY BADGER METER MANUFACTURING CO. DICK BROTHERS MANUFACTURING CO. A. B. STRAUB CO. LIGGETT SPRING & AXLE COMPANY ★ STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING 76 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 Textiles By James Traynor rIE textile market during January continued to be sluggish. Importers report sales to be fairly large but the offtake did not keep up with ar rivals so that inventories continued to increase. Arrivals during the month were estimated to be about 20% greater than during December, all of which came from the United States with the excep tion of several hundred cases from Shanghai early in the month. These are probably the last we will see from Shanghai until conditions in that city stabilize. Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Inc. THE depression in the local market for imported foodstuffs which was noted at the beginning of January still continues. In fact, the situation is more aggravated now than at that time. The market is very seriously overstocked on flour. Quantities in storage in Manila and known to be arriving on nearby ■ steamers are sufficient to satisfy all local require ments until the latter part of April, at least, and we are approaching the season of smallest consumption. On canned milk, while conditions are not quite as serious, stocks on hand throughout the market are more than ample and those holding stocks, as in the case of flour, are selling at cost or below in an endea vor to secure movement. The third important staple item here in imported foodstuffs is canned fisih. Here again stocks are well above normal and the demand is very poor. Stocks are passing only slowly into consumption. The situa tion is not serious for those importers who are ade quately financed and have sufficient storage space. As the fishing season on the United States Pacific Coast has finished, stocks available for purchase there are very small and there will be no further catch of sardines until July at the earliest and probably the middle of August. In the meantime, replacement cost of canned fish has advanced materially. Those importers who can hold their canned fish for a rea sonable period of time should have no difficulty later in realizing a fair profit on their stock. At the mo ment practically all varieties of canned fish are selling at a loss or actual cost and far below replacement-cost. Canned meat stocks are only normal and the de mand is fairly brisk at reasonable prices. Exports from the United States require export license and quantities available are thereby limited. There is a steady, good demand for all varieties of canned meat, and this applies as well to canned soups. Arrivals of both fresh and dried fruits have been large but are not excessive and both are moving into consumption at a fairly rapid rate at prices which per mit of a fair return to the importer. Canned fruit stocks, likewise, are normal and moving in fair volume. Canned vegetable importations have been some what heavier than usual and stocks are above normal. We are now entering the season of smallest demand and sales of canned vegetables should be very slow for some time to come. ... to meet modern plant requirements— Present day competition demands that your business reduce its cost of pro duction in order to maintain competitive pricing and profits. Profitable produc tion depends on the efficiency, speed and economy of modern plant and modern equipment. We invite you to share our facilities and experience as designers, en gineers, contractors... and as machinery and equipment specialists on industrial, public utility, mining, sugar manufacturing, irrigation and drainage projects... including air conditioning, refrigeration, light and power plant installations. We are also contruction engineers and contractors of steel structures for buildings, bridges and steel tanks. Over 10,000 sq. meters of engineer ing machine and foundry shops... Big enough to handle any size of job. . Completely equipped to han dle any type of operation. °Perating: CONSTRUCTION "IS®NE„ SHOPS repair HApl^hsekvwg FOR 48 YEARS THE GREATEST NAME IN ENGINEERING & Atlantic, Gulf & Pacific Company of Manila Merchandise Salo * Div. — Robert Dollar Bldg. Engineering Div. & Shops: Muelle del San Francisco & 23rd St., l’oi-t Aren Punta, Santa Ana,. Manila Tels: 2-83-04 • 2-84-82 Tels.: 6-72-31 • 6-76-32 February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 77 Business in general in food products is very quiet and it is unlikely there will be any material improve ment in the near future. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda DURING the year 1948 only a few decisions of the Oourt of Industrial Relations reached the Su preme Court. In Case L-1557, January 29, 1948, the CIR or dered the reinstatement of an employee, stating that the prolonged suspension was sufficient punishment. In affirming this decision the Supreme Court said there was no question of law involved and that the Supreme Court would not review a decision on a ques tion of fact except in an evident case of abuse or the absence of evidence to support the judgment. The Supreme Court, however, stated that the right of an employer to select or discharge his em ployees is subject to regulation by the State in the exercise of its police power; that while an employer cannot legally be compelled to continue in his employ ment any person who is guilty iof bad conduct when such continuance may be prejudicial to the interests of the employer, because the law in protecting the rights of the laborer, does not authorize the oppression or destruction of the employer, it is however clear that there are cases in which the suspension or dis charge iof an employee may be capricious, unjustified, or illegal, in which case the laborer ought to be pro tected by the State by means of the agency designated by law for the purpose, which in such case is the Court of Industrial Relations. In Case 48411, February 24, 1948, the Supreme Court said that whether a company is an industrial or ganization, taking into consideration its purpose and activities which can only be determined by evidence, is a question of fact, and that only questions of law may be raised on an appeal. The Court also said agreements for work seven days a week on a monthly salary basis without any extra pay for holidays and overtime, are contrary to law and null and void. In Case L-1573, March 29, 1948, the Court 'had before it an objection to an order of the CIR compel ling the strikers to return to work. The laborers claimed the order was unconstitutional and was in violation of the prohibition against involuntary ser vitude. The Supreme Court said that any employee entering into a contract of employment under the pres ent law, voluntarily accepts the condition tha:t in case of disputes the CIR may proceed in accordance with the law, and that the section of the law authorizing the CIR to make such an order does not offend against the constitutional inhibition against involuntary ser vitude. The Court also said the public has an interest in preventing undue stoppage or paralyzation of the wheels of industry. In Case L-1668, March 29, 1948, the Supreme Court reaffirmed the power of the CIR to enjoin strikes and lockouts and said: for J High Speed Logging... Modernize your Logging Methods... You can increase your output three times over ground skidding methods with an Isaacson Karry-Arch. Economy of Operation... The use of Karry-Arches is the modern method of speeding-up production. You finish a job sooner, get a quick start on another and increase profits at each and every step. Isaacson Karry-Arches are available for immediate delivery for International TD-14, TD-18 and TD-24 crawler tractors already equipped with winches. INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA INTERNATIONAL TRUCKS AND BUSES McCORMICK-DEERING INTERNATIONAL TRACTORS AND FARM EQUIPMENT INTERNATIONAL INDUSTRIAL POWER 78 AMERICAN CHAMBEROFCOMMERCE JOURNAL February, 1949 MONROE ADDING LISTING MACHINE You don’t have to be an axeman to cut down your operating costs. Get a Monroe Adding-Listing Machine. It is a doubleedged business tool. It shortens and simplifies any long accounting work. Ideal for sales analysis, stock re cords, and other statistics. The Store of Quality 454 Dasmarlfias 16th & Atlanta Sts., Port Area Tels. 2-79-78 & 2-79-79 TH. J-94-89 “. . .It seems that in this respect our law has achieved an advance not attained by the capital-labor legislation of other countries. And considering that this progressive enactment is evidently aimed at preventing in the public interest an undue stoppage or paralyzation of the wheels of industry, the general welfare requires that it be upheld and enforced.” * * * * In Case L-1377, May 12, 1948, the Supreme Court said that whether the ruling icf the CIR will allow the petitioner a fair return on its investment or result in its bankruptcy, is a factual inquiry which the Supreme Court is not authorized to make. The Court also said the authority of the CIR to grant vacation and sick leave with pay is included in its general jurisdiction to deal with and settle labor disputes. In this case the petitioner objected to salaries and wages being fixed higher than those paid by the National Govern ment. The Supreme Court said the comparison is ra ther sad because the Government, unlike the petitioner, is not established for profit and mainly derives its income from taxes paid by the people, but that, as its finances permitted, the Government was endeavoring to raise the standard, especially for those in the lower brackets. * * * In Case L-1309, July 26, 1948, the Supreme Court said that as the CIR has the power to fix wages and salaries for day-work, so it has the power to fix the same with respect to night-work, and that as night work is considered more onerous than day-work, it merits a greater remuneration. Philippine Safety Council By Frank S. Tenny Executive Director DISCOURTESY and negligence were the greatest contributing factors to the 1948 toll of traffic accidents in Manila, which was the greatest since Liberation. The figures were compiled by Lieut. M. B. Nazareno, Chief of the Accident Investigation Branch of the MPD Traffic Bureau. The total motor vehicle accidents within Manila city limits has climbed from 5,400 in 1946 and 6,300 in 1947, to a new high of over 6,900 last year, 1948. The leading causes of the mishaps reflected direct ly the prevalence of discourteous driving on local roads, the analysis showed. Perhaps the best indication of this was the increase in “failing to yield the right of way”, which climbed to the number-two spot with 975 accidents recorded. This violation is conceded by traf fic authorities to be a direct result of lack of courtesy behind the wheel. “Improper passing” retained its three-year leader ship of accident causes with an annual total of 1,132 cases. A close tie for third place was registered by “cutting in” and “following too closely” with 694 and 687, respectively; 406 accidents were caused by per sons operating defective vehicles. It is believed that this latter cause can be remedied by stricter me chanical inspection of vehicles when application is made for licensing. “Speeding”, or exceeding safe or lawful speeds, was the principal cause of 346 mishaps, although it was undeniably a contributing factor in other cate gories. Other violations causing accidents running into the hundreds were “passing within an inter February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 79 section” and "turning from the wrong lane”. Many of such accidents could be prevented if drivers were subjected to a test on traffic regulations and rules of the road. A total of 54 persons were killed and 2,170 in jured. Of the over 12,000 vehicles involved, 96.7% were civilian-owned. Thirty-eight pedestrians were killed, including 17 minors under 14 years of age. Discouraging trends were noted in the categories of "hit and run” and “no driver’s permit”. These fac tors reflect directly upon the respect of the driver for law and order, and his sense of responsibility to so ciety. The 1949 totals were 292 hit-and-run cases, and 105 drivers involved in accidents had no vehicle operator’s permits. The districts of Tondo and Sampaloc contributed the heaviest to serious accidents, with 79% iof these happening north of the Pasig River. December, as usual, had the highest number of accidents, and April the least. A surprising number of accidents were caused by vehicles driving on the wrong side of the road (165), despite the fact that right-hand driving has been in effect since June, 1945. In order to combat this trend, stricter enforcement is urged <cf regulations prohibit ing parking on the wrong (or left-hand) side of the street. Summarizing this worsening condition, the need for a central traffic authority is re-emphasized in or der to strengthen the Enforcement, Engineering, Edu cation and Administration factors of the traffic prob lem. The traffic problem, both that of accidents and of congestion, is rapidly becoming Manila’s greatest sin gle civic problem. FIGURES supplied from an official source reveal the number and causes of fires in Manila last year, 1948. * For the third consecutive year the total number reported was in the 600’s. "Electricity” led the parade for the second year in a row. Investigation by fire department, fire in surance, and police arson experts determined that 175 fires began due to faulty wiring, short-circuits, or allied causes. This also caused 274 fires in 1947. The great majority iof these were the result of illegal in stallations, not approved by Meralco or the City Electrician. The number two cause (for the 2nd year) was "cigarette butts”. Careless disposal of used cigaret tes has been the bug-a-boo of fire departments the world over for years. They fall into piles of inflam mable materials, oil slicks, beds, waste-paper baskets, and similar places. More mature consideration by the smoking public of the results of such negligence, seems to be the only thing that might lead to a solu tion to the problem. This cause was number one in 1946 with 200, accounted for 126 in 1947, and totalled 162 last year. "Gasoline” held to number-three position for the 3rd year. Authorities hold that most of those start from illegal storage of fuel, and from hoarding. These fires are particularly devastating, once under way, and totalled 233 for the three-year period, al though the annual number is declining. A new member of the high-cause list was "spon taneous combustion”; 47 fires were attributed to this means of ignition, which usually begins in piles of rags, clothing, or textiles that have absorbed oils, directly or from the air. Specific warnings have been issued by the Safety Council to many firms last year in this connection. A long list of miscellaneous causes includes: firecrackers, bonfires, lamps, and “suspected arson”. This last category includes some of Manila’s largest 1948 blazes in crowded areas. The 1948 total, all causes, in Manila city limits — 607. "Nothing doth more hurt in a State than that cunning men pass for wise.” — Francis Bacon. New Clipper route to PORTLAND-SEATTLE U. S. A. • You can now fly Pan American all the way via Honolulu to Portland-Seattle... as well as via Los Angeles and San Francisco. Direct connections from Seattle to all Alaska. Pan American—world’s most experienced airline—was first to offer one-carrier service around the world to the U.S. . . . has flown more overseas miles than any other airline. Only Flying Clippers have Sleeperette service! Extra leg room ... extra comfort... at no extra cost 1 For fares, schedules, trip planning help, call your Travel Agent or . . . Pan American now offer* direct one-carrier service to the Pacific-Northwest area, Canada and Alaska —the sunny mld-Pacific way Direct ---- 1---SEATTLE PORTLAND 1 SAN FRANCISCO >0LOSANOaCS E7L one-carrier service from MANILA Manila Hotel • Phonei 2-97-96, 2-79-01 Downtown Office (270 Plaza Cervantei) Pbonet 2-82-61, 2-68-49 Airport Office • Pbonet 5-10-75, 5-12-65 PAM AffFfffCA/V World Airways \ J Sleeperette and Clipper, Trade Marks, Pan American Airways, Inc. ^ * ^ * XM * ’**f’ 80 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 United States Government Agencies in the Philippines U. S. Coast and Geodetic Survey UNLIKE land and air transportation hazards, maritime hazards are not above the surface; they lurk unseen, a little submerged under the outwardly safe expanse of water. No sober mariner would risk his vessel in waters where these dangers abound uncharted. And Philippine waters, because of the war, have become littered by wrecks of sunken ships to a condition where the channels in Philippine harbors are unsafe unless carefully charted. This need for re-charting Philippine waters was seen by the American Congress when it enacted the Philip pine Rehabilitation Act which provides, among other things, for the resumption of coast and geodetic sur vey work in the Philippines. You’ll oenae something differ ent when your fingers touch the highly responsive keys. It’s Rhythm Touch... to make your type* writing easier. Your fingers will find comforting ease in the light ning key response. You’ll note better-balanced finger action ... the free-and-easy rhythm of Underwood’s finest typewriter... the popular choice of secretaries and executives. With Rhythm Touch . . . plus other new refine ments . . . you get all the time-tried famous Under wood features... they make typing easier. See this new Underwood Standard Typewriter...with Rhythm Touch... NOW! SMmCBEil^cOrb. TRACS AND COMMERCE BLOG. HANILA The Act authorizes the U.S. Coast and Geodetic Survey to continue until June 30, 1950, the survey work it conducted prior to December 7, 1941. It also authorizes the Director of Coast and Geodetic Survey to train 20 Filipinos designated by the President of the Philippines each year until 1950. The rehabilita tion program is further discussed in the agreement between the American and Philippine governments signed on May 12, 1947. Under this agreement, the U.S. Coast and Geodetic Survey undertakes the re habilitation of its Philippine counterpart, the rechart ing of Philippine waters, the continuation of other survey work conducted before the war, and the train ing of qualified Filipinos for future officers and per sonnel of the Philippine Bureau. Immediately upon the start of the program, the U.S. Coast and Geodetic Survey acquired for the Phil ippine Bureau the three-story concrete Oracea build ing and compound in Binondo, Manila. Then the local office was headed by Lt. Glenn W. Moore, USCGS, who was at that time temporarily serving in the U.S. Army. He was succeeded in June, 1947, by Lt. Comdr. Charles Pierce, the current head. Capt. Andres O. Hizon heads the Philippine Coast and Geodetic Survey. Among the major accomplishments of the U.S. Coast and Geodetic Survey program are the outfit ting of the Philippine survey fleet with 5 vessels, the preparation of a weekly notice to mariners, the re-surveying of the Manila harbor and Bay area, the topographic mapping of Manila Bay and parts of the city of Manila, the establishment of precise level lines from Manila to San Fernando and to Sangley Point, and the establishment of primary tide stations FAN FUN For EVERYONE with REX COLE the draftless nonfreezing AIR-conditioning Philippine Distributors: F. H. STEVENS & CO., INC. El Hogar Filipino Bldg., Manila Tel. 2-86-13 February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 81 at Manila, San Fernando, Legaspi, Cebu, Davao, and Jolo. At the time of writing, arrangements are be ing made by the USCGS for the acquisition by the Philippine Government of complete reproduction and printing equipment which will enable the Philippine Bureau of Coast and Geodetic Survey to reproduce or print nautical charts, maps, coast-pilot notes, tide tables, and other related publications. The program is financed by funds, taken from the lump sum of $120,000,000 allocated by the Phil ippine Rehabilitation Act for the restoration and im provement of public property and essential public services. Varying amounts are appropriated every fiscal year; $178,235 were appropriated in 1947 and $306,178 in 1948. For the current fiscal year $381,892 has been appropriated. An estimated $330,000 is expected to be appropriated for 1950. More than one-third of the total appropriations has been used in rehabilitating the bureau offices, in the purchase or repair of equipment, and in the commissioning, re pairing, and outfitting of survey vessels. The U.S. Coast and Geodetic Survey training program for survey officers, consists of two 10-month training periods, the first spent in the Philippines and the second in the United States. Ten trainees al ready finished their training and are at present hold ing commissions ranging from ensign to captain in the Philippine Bureau of Coast and Geodetic Survey. Ten trainees are scheduled to return to the Philip pines early this year upon completion of their train ing period in the United States. Another 10 train ees have finished the Philippine phase of their train ing and are scheduled to leave for the United States this month. Applications are at present being enter tained for openings in the next group of trainees. It is generally expected that before the termina tion of the program in 1950, there will be enough able Filipino officers and personnel to run the affairs of the Bureau. It is also officially believed that if ad ditional responsibilities are delegated to the Philip pine Bureau of Coast and Geodetic Survey by Philip pine legislation, such as administering the lighthouse service, producing topographic maps, compiling aero nautical charts, gathering magnetic and seismic data, establishing a magnetic observatory, etc., the organ ization existing in 1950 will be in a position to take over additional duties and make full use of its trained personnel. The number of persons currently employed by the U.S. Coast and Geodetic Survey is 111; 8 are Americans and 103 are Filipinos. The Philippine Bureau of Coast and Geodetic Survey employs a total of 230 officers and civil service personnel. When the American rehabilitation agency ceases to operate in 1950, the Philippine Bureau is expected to func tion with a complement of 45 officers and some 200 enlisted men and civil service personnel. United States Information Service, Manila “The United States aid policy is not directed against any doctrine, but against hunger.” — Paul G. Hoffman WE ARE NOW AT THE CORNER OF TANDUAY & VERGARA —traditional promptness helpfulness courtesy The facilities of 7 Stores Under One Roof Textbooks — Outlines — Dictionaries — References — Catholic Books — Maps — Globes — Teaching Aids & Devices Novels — Books of Information, Travel, Music, etc. Commercial Stationery — Office Supplies Social Stationery — Everyday Cards — Seals — Gift Wrappings Toys & Games — Dolls — Candy — Burpee’s Seeds — Bulbs — Garden Supplies Artists’ Supplies & Picture-Framing Magazines — Subscriptions PHILIPPINE EDUCATION COMPANY 82 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 Text of Import Control Rules FERTILIZERS SULPHATE OF AMMONIA SUPERPHOSPHATES SULPHATE OF POTASH MENZI & CO., INC. Iloilo MANILA Cebu J. M. MENZI Bldg. Corner Reina Regente & Soler Streets Tel. 4-79-29 Wth (Directions issued by Secretary of Commerce and Industry Cornclio Balmaceda as Chairman of the Import Control Board, to importers who .arc affected by Executive Order No. 103.) 1. Importers concerned should register at once in the Import Control Office, 210 General Solano, Manila, bringing with them their registration papers either in the Securities and Exchange Commission or in the Bureau of Commerce, business license and tax clearance certificate. Each importer should fill out Form IC-6 of the Import Control Office entitled '‘Importer's Information Sheet.” Import values must be c.i.f., Philippine ports. Quan tity of commodities need not be stated. 2. After accomplishing the "Importer's Information Sheet,” it should be submitted to the Import Control Office for approval. A registration cer tificate will then be issued to the importer. This certificate is his authority to apply for quota allocation and import license. 3. Based on the figures submitted by the importer in Form IC-6, the Import Control Office will give him a tentative import quota. 4. To obtain final import quota, the importer must submit invoices or documentary proofs to support the value of his importations as sub mitted in Form IC-6. 5. To apply for import license, fill out Form IC-1, specifying the kinds of articles to be imported, value, names of foreign suppliers, port of origin, etc. 6. An import license is not transferable, except where the corporate or firm name of licensee has been changed, or when it is desired to transfer license to subsidiary of the licensee duly registered in the Import Control Office, or where the entire or a substantial portion of the assets of the corporation has been sold or transferred to any individual or firm duly registered in the Import Control Office. 7. To secure a consular invoice abroad, the importer must give the number of the import license, which must be shown on the consular invoice. 8. In order to clear shipments, the importer must present the criginal copy of the import license to the Collector of Customs at the port of 9. If only a partial shipment • has been made against an import license and no additional shipments against the unshipped balance is con templated, the license must be returned to the Import Control Office. 10. An import license is subject to revocation for cause. 11. In case the goods covered by an import license are not shipped before the expiry date of the license, request for1 extension may be made with the Import Control Board which may grant such extensions for justifiable cause. 12. Application to renew an expiring import license should be made 10 days before the expiry date. The request for renewal should consist of a new license application accompanied by the old license .and the reasons why renewal is requested. 13. If the Board finds that the importer has failed or has not taken steps to import the articles covered by his license, the Board may cancel it and reallocate the quantity of merchandise covered by such license. 14. Acceptance of orders by suppliers abroad should be reported im mediately to the Import Control Office, stating approximate date of ship ment, together with the documents evidencing acceptance. 15. Importers of goods under license will report in writing the ar rival of such goods to the Import Control Office within two (2) days of such arrival. 16. Goods in bonded warehouses in the Philippines are considered to have entered the country. 17. Goods not included in the list appended to Executive Order No. 193 do not need import license. 18. Goods in dock, on lighter and on exporting vessel on January 1, 1949 are considered to have left port on that date and therefore not subject to import control. 19. Import license numbers will not be required on consular invoices before January 20, 1949. However, importers in the Philippines must secure import license to clear shipments upon arrival. 20. Old importers must register on or before January 31, 1919 and new importers on or before February 28, 1949. CIRCULAR 2 (Revised) January 21, 1949 TEXTILES Specific Articles Under Woven Fabrics, Ready-Made Wearing Apparel, Household Articles And Other Manufactures Those not included are not under control. Woven Fabrics 1. Cloth, knitted and not knitted 2. Remnants the New Fire Retardant Coating Material ★ Excellent adherence and bonding qualities to insula tion boards, lumber, and other inflammable building materials. ★ Albi-“R” can be overcoated with any decorative or industrial oil paint, enamel, or lacquer, and retain fire protective quality. ★ Lasting fire protection—effective after 12 years weathering. ★ APPROVED by U. S. Underwriters’ Laboratories. Exclusive Distributors PHILIPPINE ENGINEERING CORPORATION 936 RAON, MANILA TEL. 2-98-71 SWAN, CULBERTSON & FRITZ BROKERS IN LOCAL AND FOREIGN SECURITIES Member—Manila Stock Exchange New York — San Francisco Correspondents — Honolulu — Uruguay Shanghai — Hongkong 701 S. J. WILSON BLDG. „T?T q J 2-74-5^ 143 JUAN LUNA 1 J 2-80-53 February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 83 3. Tapestries Tulles Veilings Applies to Rayon & other textiles, not ton except grey cloth 17.1. Ready-Made Wearing Apparel Inner Outer 2. 3. 5. controlled if made of cotSILVER AND JAVA PACIFIC LINES 5. Nightgowns Petticoats Sports Shirts Shirts Bathrobes Blouses Coats Dresses Kimonos Lounging Robes Rayon & other textiles. G. Applies to cotton, Household Articles ' Bath Mats Bed Sheets and Pillow Sheets Blankets Curtains and Draperies Mosquito Nets Quilt, Counterpanes, and Bedspreads Table Cloths Towels Table linens or covers, doilies, napkins and Not controlled if made of cotton. Other Manufactures 2. 3. Overalls Pajamas Pants Skirts Slacks Sun Suits Trousers SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York 1. 2. 3. G. 8. table runners Carpets 4. Embroideries 5. .. Handkerchiefs 6. ...... Items 1, 2, 3, 5 and 6 are not controlled if made of cotton, except item 4 (Laces) and weaving yarns. Umbrellas Veils (SGD.) ERNESTO B. LEDESMA Executive Officer CIRCULAR 3 SPECIFIC ARTICLES UNDER: January 13, 1949 JAVA PACIFIC LINE N. V. S. M. "Nederland" N. V. Rotterdamache Lloyd Amsterdam—Rotterdam JAVA PACIFIC LINE. INC. General Agents 25 Broadway New York MANILA VANCOUVER ILOILO To and From SEATTLE LOS ANGELES and SAN FRANCISCO To and From BOMBAY and CALCUTTA CEBU PORTLAND ★ SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FROM U. S. ATLANTIC COAST PORTS TO MANILA (a) (b) (c) (d) (e) (f) BEAUTY CULTURE EQUIPMENT 4.1 Beauty Parlor Equipment and Accessories ' ' Electric Permanent Wave Machine (including Wireless or Pre-Heat) Electric Hair Dryer Electric Steamer for hot oil treatment Shampoo Board Croquignole Heaters Spiral Heaters (For Toilet Preparations used by Beauty Parlors, please consult the heading PERFUMES AND TOILET PREPARATION.) 4.2 Manicure Apparatus and Accessories: Manicure sets, any component parti of which is of gold, silver or platinum (plated or not plated) 4.3 Dresser Sets: (a) ~ ’ ~ (b) (c) (d) (e) (f) —..................... When any component part of the above articles is of gold, silver or platinum (plated or not plated or if the glassware are of cut glass), Powder Boxes Perfume or Lotion Bottles Atomizers Combs Brushes Hand mirrors GAMES AND AMUSEMENTS 5.5 Other game equipment Includes pinball machines, chess, checkers, dominoes, bingo. ORNAMENTAL ARTICLES. INCLUDE: (a) Christmas trees, decorations and lights (b) Flower vases, bowls, stands, brackets and hangers (c) Figures (d) Candle sticks (e) Book ends (f) Curios and carvings (g) Artificial flowers and fruits (h) Picture frames Approved By The Import Control Board At Its Meeting On January 10, 1949 (SGD.) ERNESTO B. LEDESMA Executive Officer MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 FROM PHILIPPINES TO HALIFAX and U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 ENTERPRISE HEAVY DUTY DIESEL ENGINES for Electric Drive Prompt Delivery Exclusive Distributors MANILA MACHINERY & SUPPLY CO., INC. 675 Dasmarinas Tel. 2-72-98 84 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 CIRCULAR 4 January 16, 1949 SUPERIOR GAS & EQUIPMENT CO. MANUFACTURERS AND MANUFACTURERS’ REPRESENTATIVES Producers of: SUGECO Highest Purity OXYGEN and acetylene gases “SUPER FLAME” BOTTLED and Purposes CARBON dioxide Stolid to™ SSS^ATION hydrogen gas For balloons * SnSgas STOVES 1. Quotas to old importers may be based either on their total imports during the base period or on two-thirds of their imports from July 1, 1947 to December 31, 1948. 2. Shipments covered by payments made by the importers or by irrevocable letters of credit issued prior to January 1, 1949, certified by the issuing bank, shall be given import licenses. Such shipments shall be charged to the present and future quotas of the importers. 3. Merchandise shipped from the port of embarkation after January 1, 1949 but were in transit from the point of origin to the port on or before that date, shall be issued the corresponding import licenses. Such shipments shall be charged to the present and future quotas of the importers. 4. In the two preceding cases, should the total quota of the importer be insufficient to cover his shipment, the excess thereof shall be referred to the Import Control Board for decision. (SGD.) ERNESTO B. LEDESMA Executive Officer * * CIRCULAR 5 January 18, 1949 Specific Articles Coming Under Furniture, Item 24.4 of Appendix “A” (Hospital and Medical Equipment are not under control) Beds Benches Bookcases Buffet Cabinets (kitchen, storage, etc.) Chairs Commodes (comodas) Cupboards Dressers (vanities) Desks Hostess Serving Carts Magazine Baskets Nursery Furniture Racks (for hats or canes) Screens (mamparas or canceles) Sofas Stools Tables Wardrobes (SGD.) ERNESTO B. LEDESMA Executive Officer CIRCULAR 6 January 24, 1949 Licenses For Articles Used As Samples Articles under control brought in or sent to importers or indentors in the Philippines as samples shall be allowed to come in provided the necessary license has been secured for them. The licenses for such ar ticles will be for specific amounts and periods to be determined by the Import Control Office. Importers or indentors desiring such licenses must file their applications (Form IC-7) under oath with the Import Control Office. These articles are not chargeable to quotas. Licenses For Articles For Personal Use Articles under control for personal use and not for resale shall be allowed to enter by mail, air or ship provided the necessary license has been secured for them. These licenses will not require quotas. Applica tions for these licenses may be made by filling out the import Control Office Form No. IC-7. When the articles are to be brought in by in coming passengers, applications may be filed with the Philippine Con sulates abroad. These applications duly approved by the Philippine Con sulates should be presented to the Import Control Office at Manila or to the Collector of Customs at other ports of entry for a license to clear the shipments. with complete Installation & Service Facilities FOR RE-WINDING OF GENERATORS - MOTORS CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85 February, 1949 AMERICAN CHAMBEROF COMMERCE JOURNAL 85 Rayon Price Limits The price limits set for Rayon fabrics in Appendix ”B" of Executive Order No. 193 apply to cloths of single width not to exceed 40". The price limits for cloths with widths over 40" are two times those of single width. Chandeliers (Item 13.2) For purposes of the Import Control Law, CHANDELIERS ore de fined as lighting fixtures with more than six (6) outlets for lights. Chan deliers with six (6) or less numbers of outlets are not subject to control. Chandeliers made of cut glass are subject to control irrespective of the number of outlets. (SGD.) ERNESTO B. LEDESMA Executive Oificet CIRCULAR 7 January 31, 1949 TOYS UNDER CONTROL Air Rifles Construction Sets except those listed below under “NOT UNDER CON TROL” Dolls and Accessories Miniature Musical Instruments Roller Skates Rubber Balloons Toy Games Trains, Mechanical and Electrical and Accessories All other Toys not listed below under heading “NOT UNDER CON TROL" NOT UNDER CONTROL Airplane Model Construction Sets Alphabet Blocks Savings Banks Ship Model Construction Sets baby Carriages and Children's .Vehicles: Automobiles Beach Vehicles Gocarts Scooters and Sidewalk Cycles Strollers Sulkies Three Wheeled Play Carts Velocipedes and Tricycles Wagon (Coasters and Play) Walkers and Tenders 'SGD.) ERNESTO B. LEDESMA Executive Officer TRAILER TRAINS move along at a fast clip when the motive power is supplied by a nigged, easy-to-operate Yale Elec tric Tractor. Whether your hauls are in the plant, from building-to-building, in storage yards or on receiving and shipping docks, the dependable Yale Electric Tractor "delivers the goods” in a hurry —and saves you money. Yale makes a complete line of in dustrial electric tractors. There’s a THE EDWARD J. 1450 Arlegui St. TRACTOR model with exactly the pulling power you need. Two and four wheel drives. Fixed or automatic trailer couplers. We'll gladly tell you all about them, feature for feature. At the same time you can learn how Yale High-Lift Fork and Platform Trucks take all the hard work out of loading and unloading trailers. Make an appointment to suit your convenience. Call us today! NELL COMPANY Tel. 3-26-15 TOOLS THAT KEEP INDUSTRY Zya. - ON THE MOVE . . . MADE BY V ■ ALL ; Weekly Changes in Retail Prices Bureau of Commerce, Market Division January 2If to 29, 1949 THE deflationary trend of retail prices of essential com modities, which has been going on steadily since the last quarter of the past year, appears to be gathering mo mentum as reflected by the further drop of the Bureau of Commerce Price Index to the 235.94-mark, recording a new post-liberation low. The lowest point ever touched by the index previously was at the 237.10-mark during the middle part of 1948. Likewise, the recent decrease of the index by 4.05 points from the previous week’s level, was the sharpest made within the last four months. Principally responsible MANILA SHIPYARD, DRYDOCK AND ENGINEERING CO. OFFERS COMPLETE HULL AND ENGINE REPAIR THREE SLIPWAYS AND DRYDOCK AVAIL ABLE. Shipyard: Navotas, Rizal Tel. 40 Ask 499 Office: Room 507 Insular Life Bldg., Manila Tel. 2-89-06 86 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1949 WEEKLY CHANGES IN PRICE LEVEL, 1945-1948 Bureau of Commerce ★ LUZON STEVEDORING COMPANY, INC. MANILA ★ For BETTER pictures ANSCO FILM -A for the substantial decrease in overall cost of prime essen tials were declines in prices of foodstuffs owing to seasonal improvement in supplies. With the old crop rice varieties about exhausted by now, new crop varieties have been most in evident with elon-elon, first class, being retailed at Pl.40 per ganta, and second class at Pl.35; macan, first class, at Pl.30, and second class, at Pl.25. Difference in prices between the old and the new crop varie ties range from 20 to 23 centavos per ganta. Palay (unhusked rice) followed with a decrease of 3 centavos at P0.70 per ganta. Sugar again featured in the recession with brown easing off by 3 centavos at P0.35 per kilo and panocha also by 3 cen tavos at P0.25. Fresh fish items were generally on the downtrend -with bangus, lapu-lapu, apahap, and hito recording losses ranging from 24 to 35 centavos per kilo. Dried fish items, however, remained unchanged. Fresh vegetable items were also on the downtrend with tomatoes, white squash, red squash, chayote, silang beans, and string beans pacing the downward movement. Fowls, particularly suffered most in the recession. Inahin, tandang, dumalaga, and sisiw fell off by 5 to 50 centavos at P3.25, P2.25, P2.25, and Pl.25 each, respectively. Other items, like textiles and shoes, remained unchanged. All you need is a good vacation and plenty of Ansco Plenachrome. For Ansco Plenachrome is a wide-latitude film that will help you overcome ex posure errors ... help you get a better picture every time. It is an ideal film for morning-toevening picture taking. Bring your exposed film to us. Let our experts develop and print your negatives. You’ll get pic tures that sparkle ... pictures that will help you re-live the fun you had when they were taken. PHILIPPINE AMERICAN DRUG C«. (BOTICA BOIE) Photo Department On the Escolta, Manila NORTH COAST LUMBER DRY KILNS OPERATORS WITH VISION ARE NOW PLANNING FOR A COMPETITIVE MARKET. C. M. LOVSTED & CO. (MANILA) LTD. 33 — 23rd Street, Port Area, Manila P. 0. Box 2485 Tel. 4-76-43 February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 87 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO 1948 (1941 = 100) Bureau of the Census and Statistics Manila 1946 All 1 Items Food 159.15) House 1 Rent (8.43) | Cloth ing (0.62) Fuel, Light 1 Misceland Water lanesus Purchas ing Power of a Peso (13.94) |(17.86) January . 603.4 759.2 236.4 984.0 363.8 434.8 .1657 February 547.2 656.3 236.4 940.31 369.5 460.5 .1827 March . . 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April . . 556.2 684.1 236.4 910.3: 345.5 435.9 .1798 May . . 545.1 675.6 236.4 762.5 342.3 409.6 .1835 June . . 538.7 666.4 236.4 737.9 343.3 404.2 .1856 July . . . 552.7 704.3 236.4 598.9 341.3 364.6 .1809 August . . 477.9 590.0 236.4 384.7 320.9 346.3 .2092 September 477.9 591.3 236.4 378.7 314.5 347.2 .2092 October . 487.4 587.2 236.4 382.7 405.8 342.7 .2052 November 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December 461.9 570.8 236.4 371.9 344.7 302.1 .2165 19472 (100.00)(63.43) (11.96) (2.04} (7.73) (14.48) January . 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March . . 406.8 440.1 453.9 295.2 334.7 279.4 ■ .2458 April . . 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May . . 381.0 404.4 453.9 250.9 325.4 269.4 .2625 June . . 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July . . . 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August .. 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October .. 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December 371.9 395.8 453.9 219.1 298.2 262.9 .2689 1948 1 Average number of persons in a family = 4.9 members. 2 Revised in accordance with the new survey on the “Levels of Living, in Manila** by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. January . 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March . . 349.4 361.0 453.9 214.6 308.1 255.9 .2862 April . . 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May . 349.8 360.2 453.9 214.2 289.7 271.6 .2859 June . . 354.3 370.4 453.9 205.2 283.2 262.9 .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 370.6 397.2 453.9 199.2 279.6 260.6 .2698 October . 374.9 404.0 453.9 204.8 283.2 257.9 .2668 November 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December 365.9 389.9 453.9 202.0 282.4 258.9 .2732 1949 January . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR H. HENDERSON President Seventh Floor, Wilson Bldg., Manila Telephone: No. 4-79-86 Cable: "Underiters” Managers in the Philippines for: AMERICAN INTERNATIONAL ASSURANCE CO., LTD. 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On Muelle del Banco Nacional Entrance — 60 Escolta, Manila CEBU—DAGUPAN—SAN PABLO CEBU —BAGUIO The^=^ __ ___ . ____ _ _ ’’LET YOUR HAIR DOWN” —------------------------- ----- -----------------7 Column A FRIEND of the Journal has sent in a clipping from the New York Herald-Tribune, — a press copy of a letter in which Mr. J. Anthony Marcus, President of the Institute of Foreign Trade, let his hair down and told Mr. Amado Hernandez, President of the Phil ippine Congress of Labor Organi zations, who was then visiting the United States, what he thought of certain remarks Mr. Hernandez must have made: “I have sent the following letter to Senor Amado Hernandez, President of the Philippine Congress of Labor Or ganizations, who is visiting this country. “ ‘I have read your published remarks about this country. To say that your criticisms of our government and people will be resented by our fellow-citizens as much as by this writer, is to put it mildly. “ ‘On two different occasions and at enormous expense in lives and treasure, our country has liberated the Philippines from slavery. We have spent untold hundreds of millions of dollars to help your economy and still are. We have given you a stable government while in other parts of the Western Hemisphere so-called republics indulged in perennial palace revolutions, disturbing their economies and retarding their progress. We have given you the spirit of Tho mas Jefferson and Abraham Lincoln to guide you in your independent living. “ ‘What have you ever done for us? You have not even-the decency of being courteous to us while enjoying the hos pitality of our country. Had it not been for this country, your people would have been the slaves of Japan; you would not have known the meaning of freedom ... You certainly would never have known the feeling of having free labor unions in which you are particu larly interested. “ ‘You know as well as I do that you are merely mouthing the Red Fascist (Communist) lie when you stated that the independence we have granted you is ‘a mockery’, that the leaders of your country are subservient to the dictates of Wall Street and Army officials in Washington. “ ‘If we are so bad, why do you come here to study slum-clearance, housing, and labor conditions? Why don’t you go to the workers’ paradise in Stalin’s em pire? I have been there on many occa sions and can tell you what you will find. There you will find millions of people in slave-labor camps, other millions—workers and peasants—chain ed to their jobs in factories, mines, in the fields, etc. There you will find that the people have as much to say about ordering their lives as the animals in the zoo. And as for the labor unions, you will find them mere agents of op pression of the workers and not free as yours and ours are; in the U.S.S.R. they serve the same purpose as the secret police. “ ‘Having read your remarks, I am confident that you have come to the wrong country. Had you gone to the Soviet Union first, you might have ap preciated better what we have here or what we have given to your people, un less, of course, you are one of those in curable Red Fascists. “ ‘I seriously question your right to speak in the name of your workers and peasants when you state that they see no threat of Communism in China. It is possible that you refuse to see the threat in China if the Communists take over, all of which convinces me that you don’t belong here and what you will learn here will be of little value to you. You are fishing for something else and not the announced purpose.’ ” The following is a letter re ceived by the editor from Jim Halsema, well known in the Phil ippines, who is now in Washing ton, D.C. “I am writing to ask you if you will kindly furnish the library of the School of Advanced International Studies, 1906 Florida Avenue, N.W., Washing ton, D.C., with recent issues of the Journal. I am a student at the school this year and working on an M.A. in international politics before returning to the newspaper business. It is amazSUCCESS SOLE DISTRIBUTORS O.E.S.&S. CO., INC. 673 DASMABISAS (Gibbs Bldg.) MANILA TEL. 6-72-3C SALES ♦ SERVICE • PARTS February, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 89 ing to learn how little people here know about the post-war Philippines. Not that there is a lack of interest, — a number of the students here have been in the Islands with the armed forces during the war, but material is not readily available. I finally found back copies of the Journal in the Library of Congress, but that is hardly like hav ing them available in one’s own library. I would be glad to send you a check for whatever is needed to keep the Jour nals coming a while. “From this perspective it is appa rent, much more than it is in Manila, what a treasure trove of information is available in the Journal, and I would like to tell you again how much I ad mire your combination of literary talent and hard-headed editing.” The editor said he liked that word, “hard-headed”, as he al ways has a feeling that he is too sentimental. Talking about exPhilippine newspapermen, Fritz Marquardt, now editor of the Chi cago Sun-Times, and on a Far Eastern trip, was in the Journal office several times during the past month. He wanted issues of the Journal, and at his suggestion we sent sets of all the post-war is sues of the Journal to the follow ing: the libraries of the New York Times, the Christian Science Mo nitor, and the San Francisco Chronicle, and the Chicago Public Library and the Newberry Libra ry, Chicago. All complimentary, of course. Dr. Claude A. Buss also was a recent visitor, by the way, ,and carried off an armful of Journal issues. However, lest anyone should think that he was too deep ly inspired by the Journal in the writing of his article on the Phil ippines which appeared in Fortune (so far we have seen only news paper excerpts), we wish to say that he told us that he had also obtained various issues of Com merce, the monthly organ of the Philippine Chamber of Commerce here. “I suppose that you thought, or hoped, that I was dead, but I am still very much alive. I have not written you be cause I have felt that as a back-slidden ‘liberal’ (never trust a liberal), you are hopeless. Mammon has got you. But I must vent my indignation about your editorial, ‘Work and Wealth,’ in the last issue of the Journal which you so distinguishedly edit, as ordered. You start out innocently enough, as you often do, sneaking up on the reader, with some statistics about farm production in the United States, then comes something about total production, and then you ex press your admiration for the hard work that must have been done by the Amer icans in producing such great wealth. Check. But then you begin your mental sleight-of-hand. You say that all capi tal only represents hard work done in the past. And as hard work is so ad mirable and noble, therefore capital is, too, and so is the capitalist! You even propose to deify either capital or the capitalist, I don’t know exactly, for that is where you airily waved a veil, like a circus magician. Deify capital, or the capitalist! Good God! You object to the usual cartoonist’s picture of the cap italist. Then, in the back of the Jour nal, you, following Fortune Magazine, criticize the novelists for portraying cap italists for what they are. What a twis ter you are. I know that you know that capital has its origin in profits and that profits are what the capitalist withholds, steals, from the wages of labor. Capital stands for robbery, not for work.—Ad mirer." “No, I wouldn’t wish tihe man dead. He has a right to life, li berty, and the pursuit of hap piness, and makes himself so hap pily indignant over his wrong economics that it becomes almost a pleasure to listen to him. That’s the trouble with economics. It is a difficult science and it requires some brains to grasp even the fundamentals, but it is so close to all of us that all sorts of exciting untruths and half-truths are avid ly laid hold of and clung to. Often to account for personal short comings and failures. I don’t want to be mean, -or personal, but the man sounds to me as if he never did an honest day’s work in his life, or ever made a profit, or has anything but the pants he walks around in. “I had a laugh a few months ago,” the editor went on, “when one of my sons-in-law, a very stal wart and well-meaning young man, offered to lick ‘Admirer’ for me if I would point him out. Of course, I couldn’t, and I certainly wouldn’t if I could. No, let the man live and pursue the good life as he will. I have given up trying to de-misin form him... “The trouble is, there are so many like him, — fine subjects of the enemies of our civilization to operate with. All sorts of falla cies go round and round in their undeveloped brains. Why don’t our schools, even in the lower grades, give pupils some elemen tary understanding of the work-aday world they live in? I am sure ‘Admirer’ will now curse me for advocating ‘capitalistic propagan da’ in the schools. But capitalism, so-called, is our way of life, an in tegral part of what we know as democracy, and our youth should be given some understanding of its EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U. S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf Ports — Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarinae St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) Automatic Calculators To all who need accurate figures in a hurry,., PHONE OR WRITE US FOR DEMONSTRATION ON YOUR OWN WORK FRIDEN CALCULATING MACHINE AGENCt SMmtBELUCOUTD. TRADE AND COMMERCE BLOG. MANILA 90 AMERICANCHAMBER OF COMMERCE JOURNAL February, 1949 fundamentals so they will not be misled by what are not only such stupidities but such deliberate lies as are eating on ‘Admirer.’ “Capital does have its origin in saving, and a good part of it does derive from profits, though not all, because wage-earners and others can and do also save. Profits are not something that is taken away from wages. The workers alone are by no stretch of the imagina tion entitled to the whole of the value of what is produced. Wages are the price of labor, determined by the supply of and the demand for labor. Profits are the price or reward of enterprise and good management. Wages are earned by great numbers of people; pro fits are earned by far fewer, those few who can prove in practice that they have exceptional ability in the initiation and direction of work. Wages and salaries generally in the United States take up some three-fourths of the national in come, while profits take up only a part of the remainder. In the majority of enterprises there turns >out to be no profit at all, only losses, and they end in failure. What really sensible man can believe that the men who start a business, whether they suc ceed in keeping it going or not, do no real work and deserve no share in the value of the production or the service? Is that robbery? To call it that is nonsense. Nonsense, even if the idea lies at the bottom of Marx’s Labor Theory of Value The initiation fee for an active membership in the American Chamber of Commerce of the Philippines has recently been reduced to P250. and its corollary, the Surplus Value Theory, which would make ‘exploitation’ an integral part of the capitalist system. “Is the whole material structure of our civilization, our mills and factories, trains, ships, harbors, ’roads, hospitals, schools, churches, and homes only a monument, ba sically, to cupidity, rapacity, op pression, and theft? “Could men who are such mon sters and other men who are such dupes together ever have built any thing so great and so fair as is, with all present shortcomings, our modern democratic civilization, its freedom, its abundance, it zest and joy? “That could have been the thought, that could be the thought only of a baboon; of a hater of his kind and of life itself.” Said we to the editor, “You sure went to town that time!” “Wait, wait,” said he. “If there were no such thing as profits, we would be obliged to invent them. Profits serve as a guide to produc tion, — what goods should be pro duced at any particular time and; in what quantities. If there are no profits in a given enterprise that is an indication that the labor and capital involved are being misused. No government plan ning or control could ever be so effective as this profit barometer to production needs. Then, of course, the desire for profits serves also as an ever-present check on waste and ineffi ciency. ..” “Well, that’s enough for one lesson,” said we. “And that is in the interest, too, of labor. For the greatest pos sible production is to labor’s ad vantage. High wages can come only with high production...” We believed him, but we had no more time. After all, we don’t have to be told everything. “That’s the real reason why wages in the United States are so high...,” he shouted after us. C. F. SHARP & COMPANY, INC. 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