The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XXV (No. 4) April 1949
Year: 1949
Language: English
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino 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. Neto ton, and F. L. Worcester. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXV April, 1949 No. 4 Contents Editorials — The Atlantic Tact and the Marx Opium Dream Wanted. Another John Hay ...................................... Communism and Communist Parlies ...................... Investment Risks, Natural and Otherwise .......... Leaders and Bosses .............................................. Tinkering with the Bell Act; the Taylor Bill The Tahada Alien Land Disposal Bill .......... The Dam Breaking? ............................................ 139 139 141 141 142 144 146 Two Speeches before the Business Writers Association The Business View - - Andres Soriano . Gil J. Puyat . . . 147 148 149 Office of the President of the Philippines .................................. Banking and Finance ........................................................................... American Stock and Commodity Markets ...................................... Manila Stock Market ........................................................................... Credit ........................................................................................................... Gross Sales (Ten leading business firms, 1937-1948) (Table) Real Estate ............................................................................................... Real Estate Sales in Manila. 1910-1919 (Table) ................ Building Construction in Manila. 1936 19:9 (Table) ........ Electric Power Production. 19IS-) 919 ............................................ Port of Manila ......................................................................................... Ocean Shipping ................................ Inter-Island Shipping ...................... Land Transportation (Bus Lines) Mining ...’.............................................. Copra and Coconut Oil ................ Manila Hemp ...................................... Automobile Textiles . New Import Conti Weekly Chang. Cost of Livini Trend of Real The “Let You and Trucks trol Orders and Circulars ...................... in Retail Prices (With graph) .......... Index. 1916-1949 (Table) .......................... Wages by Occupations, 1941-1948 (Table) Hair Down” Column ................................. Official Source .................................... F. C. Bailey .......................................... R. Ewing ................................................ A. C. Hall ............................................ W. J. Nichols ........................................ Bureau of the Census and Statistics C. M Hoskins .................................. Bureau of the Census and Statistics Bureau of the Census and Statistics J. F. Cotton ........................................ R. L. Bary ............................................ F-. M. Gispert ...................... .......... G. F. Vander Hoogt .......................... L. G. James ....................................... C. A. Mitke .......................................... E. C. Von Kauffmanr. ...................... M. Igual and K. B. Day .................. H. R. Hick ........................................... S. Jamieson ........................................... H. Robertson ....................................... Conde de Churruca .............................. C. JI. Helling ...................................... J. Traynor ... ................................... C. G. Herdman .................................... E. E. Selph ......................................... Official Sources .................................... Bureau of Commerce .......................... Bureau of the Census and Statistics Bureau of the Census and .Statistics 162 163 164 165 165 165 167 174 50 Centavos the copy 175 176 With these new low-pressure tires The new Super-Cushions will do wonders for your car’s performance! That’s because they’re bigger, softer! They hold more air— yet run on only 24 lbs. of air pressure! Put them on your car—old or new—and get a wonderfully different ride! YOU’LL BE AMAZED AT YOUR CAR! Softer, smoother ride on any road! V Greater traction—greater safety! V Less wear and tear on your carl V Fewer rattles—fewer repair billsl V More mileage and economyl V Greater blowout resistance! MORE PEOPLE, THE WORLD OVER, ON GOODYEAR TIRES THAN ON ANY OTHER MAKE THE BOODYEAR TIRE 8 RUBBER CO. OF THE PHILffPINES, LTD. BACOLOI. MANILA CEBU Editorials (i... to promote the general welfare” The adoption of the Atlantic Pact, which binds the major nations of the West into a defensive alThe Atlantic Charter and the Marxian Opium Dream liance, was the inevitable outcome of the deliberate wrecking by Russia of the United Nations Charter which it once was hoped would unite all the peoples of earth. The Russian oligarchs from the first have waged a campaign of virulent hostility just short of open warfare against all other governments, and the Atlantic Pact, to be followed possibly by a similar Mediterranean pact and, as advocated by President Quirino, a Pacific pact, is the measure of the price they have to pay, — a world on guard against them. In just retribution, Russia today stands isolated; without a friendly government or people to give it countenance; its only “allies,” those nations on its borders which it has overrun. They would save face by continuing to address their lying propaganda to the peoples of the world over the heads of their governments, but this becomes ever more exaggerated and absurd as they become more hysterical. So much for the “crafty” men in the Kremlin and their Marxian opium dream of world enslave ment to one totalitarian power. History is said — sometimes fondly, and some times with weariness — to repeat itself, and one wonders whether it could possibly repeat Wanted: itself in the present China case. One Another could hope that it might if the hope did John Hay not seem quite so vain. Henry Adams (1838-1918), in his autobiography, “The Education of Henry Adams,” wrote: “The drama acted in Peking, in the summer of 1900, was, in the eyes of a student [Adams], the most serious that could be offered for his study, since it brought him suddenly to the inevitable struggle for the control of China, which, in his view, must decide the control of the world; yet, as a money-value, the fall of China was chiefly studied in Paris and London as a calamity to Chinese porcelain. The value of a Ming vase was more serious than universal war. “The drama of the Legations interested the public much as though it were a novel of Alexandre Dumas, but the bear ing of the drama on future history offered an interest vastly greater. Adams knew no more about it than though he were the best-informed statesman in Europe. Like them all, he took for granted that the Legations were massacred, and that John Hay, who alone championed China’s ‘administrative entity,’ would be massacred too, since he must henceforth look on, in impotence, while Russia and Germany dismembered China, and shut up America at home. Nine statesmen out of ten, in Europe, accepted the result in advance, seeing no way to pre vent it. Adams saw none, and laughed at Hay for his help lessness. “When Hay suddenly ignored European leadership, took the lead himself, rescued the Legations and saved China, Adams looked on, as incredulous as Europe, though not quite so stupid, since, on that branch of education, he knew enough for his purpose. Nothing so meteoric had ever been done in American diplomacy. On returning to Washington, Jan uary 30, 1901, he found most of the world as astonished as himself, but less stupid than usual. For a moment, indeed, the world had been struck dumb at seeing Hay put Europe aside and set the Washington Government at the head of civil ization so quietly that civilization submitted, by mere instinct of docility, to receive and obey his orders; but, after the first shock of silence, society felt the force of the stroke through its fineness, and burst into tumultuous applause. Instantly the diplomacy of the nineteenth century, with all its painful scuf fles and struggles, was forgotten, and the American blushed to be told of his submissions in the past.” A few years after the diplomatic stroke so high ly praised by Adams, came the Russo-Japanese War, one of the results of which was, — thanks to the in tervention of the first Roosevelt, that Russia was ef fectively blocked in Asia for a number of decades. But Japan took Russia’s place as a menace to China and ultimately came near to total conquest. Today, with Japan eliminated, Russia has started rolling forward again, — thanks in part to the second Roosevelt’s concessions at Yalta. And the Russian gains in the North are made the more dangerous by the victories in the civil war of 139 140 AMERICAN CHAMBER OF COMMERCE JOURNAL_ April, 1949 ★ ★★★★★★★■★★★ A ★★★★★ EVERY PASSENGER OUR GUEST..! When you travel via Philippine Air Lines, you are much more than a passenger to us . . . you are our guest. . . and everyone of our employees does his best to make you feel at home in our planes. Thousands of air travellers will tell you of the pleasurable flights they have made via P.A.L. We want to give you the same experience! Philippine Air Lines serves all important points in the Philippines with daily flights — Hongkong, Guam, Honolulu and San Francisco with twice weekly flights — Tokyo and Okinawa with weekly flights — Calcutta, Karachi, Dhahran, Cairo, Rome, Madrid and London every other Saturday. P.A.L. gives connection service to points all over the world through inter-line agreements. P.A.L. serves European and Pacific routes with luxurious DOUGLAS DC-6 five-mile-a-minute pressurized-cabin sleepers. See your Travel Agent or the nearest P.A.L. office for reservations nv PHILIPPIRE AIR LIHES 1AI.R.S. Bldg. — Plaza Cervantes — MANILA Tel. 2-79-66 Tel. 2-79-67 Tel. 2-79-68 Branches: Manila Hotel - Tel. 2-91-35 — Avenue Hotel -- Tel. 2-79-66 General Managers — A. Soriano y Cia. those elements in China which draw their inspiration from Russian “communism” rather than from the free democracy of the West. China’s troubles and sufferings, and the world’s difficulties over China, do not come so much from faulty Western diplomacy, however, or even from any present lack of Western power to aid, as from the fact that China is still, in the international political sense, a virtual vacuum. With the threat of conquest from one direction eliminated, a threat from the other direction immediately develops. If the government which at present seems to be slowly forming can fill the vacuum, that may be a positive gain wherever the immediate ideological in spiration may come from, for there remains the hope that the Chinese “Reds” are, first of all, Chinese. America is not interested in winning for itself the control of China, and never was. Adams’ state ment that the struggle for the control of China must decide the control of the world, is to be doubted. He gemony is not determined by areas or populations, but by power. But America is deeply interested in China being controlled by the Chinese rather than by the Russians, acting for themselves or through pup pets. If the Chinese “Reds” are not puppets, then per haps America in due time could take certain mea sures, — of friendship and aid, to keep them from ever becoming an advance guard for further Russian penetration, imperialistic or ideological. As in the days of John Hay, fifty years ago, are we too prone to consider ourselves impotent and to accept in advance a prophesied result of current dev elopments, seeing no way to prevent this? Is there today a John Hay who, through some bold stroke, will wrest another chance for the Chinese people out of the welter and ruck of the present con fusion? Indian Home Minister Patel at New Delhi re cently pointed a distinction that may prove of value in clarifying the present world conCommunism tention over communism. and Commu- In warning the Indian commu nist parties nists that the Government would suppress violence, he said that it would not seek to exterminate the ideology under lying communism, but that it would have no alter native to suppressing the Communist Party “if it persisted in exploiting every situation in order to cause chaos.” There are no doubt numerous idealistic people in the world, outside of Russia (perhaps more outside than in), who, if not believers in the whole commu nist system, see a possible social gain in the abolition of the private ownership of the “means of produc tion,” — a gain in exchange for which they would as sume the risks of the consequent tremendous increase in the arbitrary powers of government. Many would favor such a development outright if the change from private to public ownership were progressively and always legally and ethically effected, as seems at pre sent to be happening in Britain. But even these people, — not hostile to commu nism as such and even convinced or half-convinced that a communist economic system would be prefer able to capitalism, are outraged and rightly execrate the means adopted by present-day Russia allegedly to promote world communism, and deeply distrust and flatly impugn its motives and aims, as a world power, as well. By what right, under any code ever lawfully framed by man, may the Russian oligarchy, through the conspiracies it foments everywhere, sap and de stroy the chosen institutions of other peoples, creat ing dissention and tumult and riot, disloyalty, betray al, crime, and treason? Is disintegration and chaos the road to a new and better order? Can hatred prepare the way for love? Does evil turn to good? Is not the Russian so-called communism plainly the satanic thing which its measures at home and abroad, show it to be? The ideology of true communism we can study and reason about. Present-day communist parties should be dealt with for the criminal organizations which they are. President Quirino, in his remarks on March 4 before the conference of the 81st District of Rotary International at the Manila Hotel, Investment deigned to make a good-natured Risks — Natural reference to the editorial in the and Otherwise February issue of this Journal in which we spoke of his wearing rose-tinted glasses when he delivered his address on the State of the Nation before Congress. He admitted that he was an optimist. He de clared that he does not propose to be a crape-hanger and that in addressing Congress he was not presid ing at a wake or leading a funeral. That was good rhetoric. He honored and pleased the assumed writer of the editorial by dubbing him a “very good friend of our people,” but implied in his speech that this writer was among those who are sour seekers of disaster, frightened by bugbears largely self-created. We are hesitant about taking advantage of Mr. Quirino’s condescension to enter into public argument with him. We would take no pleasure in proving him wrong, especially on the topic which he chose to speak on to the Rotarians, — conditions in the Phil ippines as they relate to American capital invest ment. We wish he were right and that our fears, so-called, were only self-created. But a wish is not a conviction, and we are sorry to say that Mr. Quiri no’s arguments were not convincing. Dropping all idea of arguing with the President, may we not simply advance a few reflections that oc curred to us in reading a report of what he said? In the first place, we do not believe the country is doomed because of import control. We do not be lieve that the country is doomed at all, though we do think that the country’s advancement is being serious ly retarded and that we may all come in for much needless suffering as a result of this. And not alone because of import control, but because of the ever extending autocratic government control over every phase of the country’s economy. And not only be cause of that, but because of the discrimination throughout much of this control against so-called alien enterprise, which, only to mention the Flag Law, goes so far as to deny the right to ownership of the smallest tract of land to aliens. Enacted legislation has been definitely handicapping established business and much of the projected legislation threatens to handicap it further, especially in the fields of corpo rative organization and of labor-capital relations. 141 The President suggested that American capital was not deterred from developing the American West because of the risks, the hardships and dangers of frontier life, including the menace of the savage In dian tribes, and said that he could not believe that American capital has lost its pioneering spirit and will fail to come to the Philippines because conditions here are believed to be “not attractive, not easy, not secure.” If we may quote: “I like to believe that American capital, as a potent ins trument of industrial progress for the advancement of de mocratic liberties and social amelioration wherever it has taken root, is still true to the spirit of Americanism which makes America the leader of the world today. I like to be lieve that being morally strong by tradition and inheritance, it does not have to rely solely on special privilege for itself, that it is not easily intimidated into retreat by mere chal lenges to its genius for adjustment in a new setting to justify its leadership of free nations.” This prompts the thought that the Indians, at first, at least, had only bows and arrows, knives, clubs, spears, and tomahawks, later some guns; they never had the mace of governmental authority,— executive, legislative, and judicial. And shooting members of Congress, judges, and department and bureau directors and other government officials, or putting them on reservations, can’t be done! American capital here asks for no “special privi lege,” but only for equal opportunity and freedom from arbitrary governmental intervention in the pro cesses of production, investment, and trade. The President bracketted “planning” and “na tionalization” together when he said: “Planning and nationalization are a dynamic political and social reality, spelling resistance to unregulated free enter prise and possibly keeping its rewards within humane and civilized sanctions.”. We are sure that American capital is not looking for anything outside such sanctions as the President mentioned, and there is no objection to national plan ning. “Nationalization,” however, is another thing. One certainly can not expect foreign capital to come into a country where the general trend is toward a rapid “nationalization,” — that is, where legislation is deliberately being framed to discriminate against such capital and to impair the capitalist’s control over it. “It is to be observed,” said the President, “that the systematic nationalization going on in England has not discouraged the billions of dollars that Ameri ca is pouring in there.” May we observe that these billions constitute gov ernment loans and not private capital investments? And that these loans- are being made as a part of the Marshall Plan for all of Europe chiefly for political and strategic and to some extent for humanitarian reasons, and certainly not for profit in the business sense ? The President said that he did not want an as signment as an undertaker, a mortician, for the Re public. If he and other leaders would only realize that the country has already had to bury some of its high hopes, — among them that during the past three years or so following the liberation American invest ment capital would come in in volume. That it has not is largely due to the fact that conditions have been more or less deliberately rendered less favorable and less propitious than they might have been. However, the very fact that Philippine leaders are showing signs of sensing this, is an important step in the di rection of the ultimate correction we still hope for. The general aim of present government policy is natural enough. As the President said: “We want our own people to have a proportionate share in the enjoyment of our economic opportunities.” American capital would not question this as any thing but commendable. But when the means adopt ed become frankly discriminatory, there can be but one result. Putting the matter in the simplest language: American, or any other, capital will accept natur al risks as a part of all capitalistic enterprise, but it does not choose to operate under a deliberately dis criminatory sovereign government. President Quirino pointed to a distinction which is important in a democracy, — that between leaders and bosses, in his address at the comLeaders mencement exercises last month of the and Bosses Philippine Women’s University. He said, in part: “Bossism is not real leadership. It is a corruption of leadership... If we are loyal to our democracy we must as sess our leadership in terms other than those of bossism... .We must believe in the common man’s right and capacity to think... The idea that the common people are gulls, useful pawns in the political game.. .belongs to the past... The people do not need anyone to whip them into line... Their will becomes clear... It is a sound government that recognizes and accepts its authority... A real democracy is where the people create the leaders...” In United States political slang, a boss (from the Dutch baas, master) is a “professional politician who controls a large number of votes in a party organi zation, or who dictates, unofficially, appointments and legislative measures”. A boss heads a political “machine”. The diction ary defines this word in that sense: “The committees or other working bodies, often under the power of a boss, especially in a political party, through which its policies and activities are directed and its nomina tions and patronage are often largely controlled, for private rather than for party or public end." Lincoln Steffens, author of the book, “The Shame of the Cities”, has told that when at the turn of the century he was visiting the various big cities whose corrupt governments he exposed, his first ef fort always was to discover not who was the mayor or the chief of police or who any of the other im portant officials were, but who the boss was. Some times this man held office, but often he did not and skulked in the background. There have also been such state machines, but, city or state, when they became too openly corrupt, the people revolted, “turned the rascals out” at the elections, and often sent the bosses to jail. Leaders of the American federal government have rarely been charged with graft, and the national party organization in the United States has, indeed, always been loose and without the compactness re quired for a regime of corruption. A distinction must be made between legitimate party organization anywhere, and the political ma chine of a boss or “ring” of public grafters. Political parties are natural to a democracy. They are broad divisions of the electorate, standing for certain dif ferences in ideals and policies of government. They naturally seek to influence the voters and to get their own candidates elected. But they do not resort to 142 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 143 Triumphs of Steelmaking Skill BETHLEHEM STEEL PRODUCTS Beginning with the mining of the ore, and continuing through to the shipment of the finished items, Bethlehem steel products are constantly under the rigid control of technical experts of wide experience. Thus Bethlehem steel has gained a world- — wide reputation for dependability and uniformity. Bethlehem's great Sparrows Point plant is the only steel-producing plant in the U. S. A. located on tidewafer. Prod ucts for export can be loaded at this plant directly aboard steamers, thereby minimizing possible damage due Io additional handling. Bethlehem Steel Export Corporation 25 Broadway, New York 4, N.Y, U.S.A. Cable Address: "BETHLEHEM, NEWYORK” Philippine Correspondent: L. W. Detzer 61 5 Trade & Commerce Bldg., Manila, P. I. M No. 302E bribery and blackmail and violence to get votes, or to fraud in the conduct of elections. Corrupt machines are parasitic upon the legitimate political parties, as they are upon the whole community. This parasitism is, or course, natural under cer tain conditions, just as it is natural for a dog to have worms and fleas. That we have criminals in the world is something that we must accept. But to put them over us, is not necessary. We do not have to choose them to run our public affairs. It is necessary, in a democracy, for the people to accept the responsibilities as well as the advantages of self-government. There must be general devo tion to the common interest and determined will to pursue the high aim of establishing and maintaining a sound nation. In the Philippines, the national political organi zation has, for a number of reasons, long had the com pactness that lends itself to one-man control. That, during the greater part of this time, the successive supreme leaders were good men, true patriots, who might have abused their power, but did not,; was largely a matter of the country’s good luck. The people trusted them and followed them more or less blindly. Death or retirement has ended their great careers. The people have now to choose leaders from among the present group of office holders or to project new leaders from among themselves. Blind faith is no longer wise. The people must be alert and on their guard, or the democratic system here will fail. What is probably the worst about the decision of the Philippine Chamber of Commerce to express itself as favoring a revision of the Bell Act, is its poor tim ing,—a timing which might perhaps become dangerous. The Chamber only declared that it favored revision looking toward “selective free trade Tinkering with the Bell Act; the Taylor Bill both ways”, as advocated by Mr. Sal vador Araneta, but its meetings and discussions and the final resolution, all played-up in the press, closely followed the introduction by the Wallace-ite Senator Glen Taylor of Bill No. 694 which would repeal the Philippine Trade Act of 1946 (the Bell Act) outright while “an investigation by the Congress and the enact ment of legislation governing the economic relations between the United States and the Republic” would still be “pending”. We would suddenly find ourselves entirely outside of the American tariff wall and the protection which it gives the Philippines. Repeal first; “investigation” later. And then what, if anything? Section I- of the Taylor Bill declares that the Bell Act is “inconsistent with the sovereignty of the Re public of the Philippines” as it limits Philippine con trol over the country’s resources, tariffs, foreign trade, and currency. The Section further declares that the Bell Act is “incompatible with American democratic principles” and is a “contributing cause to growing unrest in the Philippines”; “detrimental to American trade and the raising of the living standards of the American people and beneficial only to a small group of American monopolist interests”; and “prejudicial to the good neighborly relations between the United States and the Republic of the Philippines, and con tributing to friction and the unsettling of peaceful re lations in the Pacific”. This is a malignant indictment, and the full text, which was abbreviated in the preceding paragraph for the sake of clarity, is even more so. For instance, it is declared that free trade is continued “in varying degrees until 1974 so that the Philippines will remain dependent on the American market and fail to indus trialize and become self-sustaining.” Senator Taylor charges the United States Government with having that deliberate purpose! Also: the Bell Act is incom patible with American democratic principles because it imposes “onerous controls on the war-ravaged Phil ippine economy as the price of assisting in its rehabi litation and development.” However, in making this charge, the Senator un intentionally and illogically admits that this nefa rious Bell Act does, after all, assist in the rehabilita tion and development of the Philippines! We found cause for a satirical chuckle in the fact that at Havana, during the conference of the United Nations International Trade Organization (Novem ber, 1947—March, 1948) all this “exploitation” of the Philippines was considered “preferential treatment” by the other nations represented at the meeting. Some of them made objections, and it being feared both in the Philippines and the United States, that decisions might be taken which would alter the Philippines’ pre ferential position, the Philippine Government was quick to protest against any change. The then President of the Philippines, Manuel Roxas, issued a stament from Malacanan which read: “The President expressed great satisfaction this afternoon when he read the statement made by President Truman at a press conference in Washington yesterday, giving assurances that the preferential trade agreement (Bell Act) between the Philippines and the United States would not in any way be al tered by any decision which might be made at the ITO con ference in Havana. It will be recalled that President Roxas protested vigorously against attempts in connection with the ITO Charter to modify the trade preferences between the Philippines and the United States for the duration of the trade agreement, and that he instructed Secretary Abello, who is now head of the Philippine delegation in Havana, not to sign any agreement which might in any way disturb our preferen tial trade with the United States or prejudice the interests of the Philippines...” The communist-fringe of rattle-brains in the United States may not know what it is doing in giving backing to aspersions cast on United States policy, and to schemes to wreck rehabilitation and recovery in all parts of the world outside the Russian sphere, includ ing the Philippines. But we may be sure that the Cu ban sugar lobby, which keeps a covetous eye on the Philippine sugar quota, will be a most zealous sup porter of the Taylor Bill and of the Philippine Cham ber in any clamor in connection with securing possible changes in the Bell Act. In all the recent discussion of the Act, as reported in the Philippine press, we have noted not a single re ference to those sections which convey the most vital advantages to the Philippines,—such as sections 211 and 212, which establish absolute Philippine quotas for sugar and cordage. As to our sugar industry, one of the three main stays of our economy, we can think of no more un suitable time to weaken in any way the present secur ity of the industry under the Bell Act. A few years ago there might have been some excuse foi’ “econo144 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 145 The Only tire with AH of these Advantages Here is the greatest U. S. Royal in motoring history—the amazing new U. S. 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As for other elements of the Bell Act, “Par ity” for example, which has called forth the most emo tional outbursts from critics of the measure, we ad mit that with reference to this, some of the clauses might have been better phrased, at least if there had been more time, but in substances this feature would operate to the very great benefit of the country if it were not in part nullified by subsequent local legisla tion and other government action which is discou raging American investment even under the supposed advantages it bestows. We have yet to hear of a single case in which “parity” has been exploited by any American national or entity to the disadvantage of any Filipino, but even if a few individual cases of this kind could be brought forward, such disadvantage would be insignificant in comparison to the immense benefits conferred on the Philippines by the Bell Act as a whole. The Philippine Chamber of Commerce is not ask ing for the abbrogation of the Bell Act, only,—and that hesitantly, for certain changes the nature of which, or the advantages, if any, are still far from clear. We would ask the Chamber to be wary, lest it give aid and comfort to senator Glen Taylor whose bill is an insult both to the United States and the Philip pines and to be intelligence as well. The Tanada Alien Land Disposition Bill A bill introduced by Senator Tanada, providing for the “disposition of lands acquired by aliens in violation of the provisions of the Philippine Constitution,” which failed of passage during the third session of Congress, has been rein troduced. The plan set forth in this bill shows considerably more conscience than the proposal of the Solicitor General merely to confiscate such lands, which was the subject of an editorial in the March issue of this Journal. In his explanatory note prefaced to the bill, Sen ator Tanada states: “After the promulgation by our Supreme Court of its decision in the Krivenko case, there arose a certain confusion on what to do with the lands acquired by aliens in violation of our Constitution. To remedy this situation a plan is evolved by the undersigned whereby the aims and purposes of our Constitution could be given effect and be safeguarded without committing injustices to those alien purchasers who honestly believed that they were not suffering from a constitutional inhibition at the time they made their purchases. . .If we now deprive these aliens of all material benefits from these transactions we will be committing a grave in justice to them. “We must also take into consideration that outright con fiscation of the lands involved in these transactions in favor of the State might give rise to international complications... “The purpose of this measure is to correct the violation of our Constitution in such a way that the aims and purposes of our Constitution may be preserved and at the same time not unduly and unjustly deprive the aliens concerned of their rights on the properties held by them...” In short, the Tanada bill would give alien owners of lands held in violation of the Constitution (as in terpreted by the Supreme Court) one year to convey them to “persons duly qualified to own such lands.” After that time, if not thus conveyed, the lands would be confiscated. Sales made for the purpose of evading the mea sure would be nullified and the land in such cases would also be confiscated, those concerned in the eva sion on both sides being subject to loss of citizenship (in the case of naturalized citizens), and deportation. The measure would apply to corporations, partner ships, and associations as well as individuals, and in the case of the former, violations would lead to the dissolving of the entity. Violators, including the re sponsible officers and employees of corporations, partnerships, and associations would be subject to imprisonment of not more than five years or a fine of not more than P5,000, in the discretion of the court. Fairer though the Tanada plan is than a course of outright confiscation, the measure would actually cancel none of the fundamental objections brought against the Supreme Court’s interpretation of the Constitution with respect to alien landownership, which extends even to the ownership of small tracts for business and home-building purposes, — that, in Che first place, the decision itself was unconstitution.al as a constitutional ruling, as it was not the opinion of two-thirds of the members of the Court; and that the policy the decision underwrites is basically nar row, undemocratic, unjust, uneconomic, unpolitical, and, indeed, inhuman. The purchase of a piece of land is in the majority of cases much more than a mere “transaction,” in volving “material benefits.” Real estate agents and land speculators are few. Land is generally bought for a life purpose, — to develop a plantation or farm, to erect a mill or factory, a warehouse, an office build ing, a store, a home. Land purchase in most cases involves long-term plans and projects, purpose, enter prise, confidence, contentment, good citizenship. The new land policy proclaimed by six men on the Supreme Court (we assert that it is new and not to be read in the Constitution if one is able to under stand plain English), affects all of these constructive economic and social and ethical concerns. Suppose that the Tanada bill became law and that aliens who acquired lands here since the year 1935, when the Constitution was adopted and ratified (ratified, May 14), were forced to throw all their lands and buildings onto the market, in many cases, no doubt, the contents, too. We do not have any of ficial figures available, but the total present values affected would probably run into many hundreds of millions of pesos. It is not difficult to foresee what would happen to these values in the glut which would ensue in the real estate market, the forced sacrifices, the tremendous losses. And what money would be obtained by the own ers from these forced sales, would these people, does anyone suppose, be in the mood to reinvest it in the country? What would they feel they could safely in vest it in? Would many of them even try to go on with their businesses, as tenants more or less at the mercy of the new landlords? There can be no doubt that there would be a con siderable fall in production, which the Government is otherwise trying to augment; in consumption, too, which the Government is otherwise trying to raise; in employment, which the Government is otherwise trying to increase; in a flight of capital from the 146 country, which the Government is otherwise trying to induce to come in. It would perhaps not be a flight of capital so much as a throwing of it out. The former owners of all the liquidated real estate would practically be forced to remit the money to the United States, and this would not only deprive the Philippines of the use of this capital, now here and still so badly needed, but would seriously reduce the country’s dollar balance in the United States, which the Government, on the other hand, is trying to conserve in various ways, as by import control! And all this would come just at the time when the Philippines will be faced with the complications which will result from the cessation of much of the present American financial aid! And what would a man and all the members of his family feel and think when they are forced to sell, among othei' things, a beloved home? Will any of such people, robbed of their dearest possession per haps in the world, have an iota left of respect for and confidence in the Government of this Republic? In addition to the more immediate effects of the new land-policy as it concerns those aliens who in vested their capital in lands and buildings during the past fourteen years, we must consider the inevitable long-term future effects as to capital investment and the economic development of the country. The pro spect is appalling. Already it has been reported that a number of foreign corporations in Manila have cancelled plans for erecting buildings here because it appears that it will not be possible for them to ac quire ownership of the comparatively small tracts of land which would be necessary. In such, cases there went months of productive and profitable work for Philippine architects, engin eers, steel workers, masons, carpenters, glaziers, plumbers, electricians, painters, furniture makers; there went business and profits for the importers of all sorts of materials and equipment and for the local stone, gravel, sand, cement, and lumber companies. There went fine buildings, which would have added to the wealth and dignity and sky-line of Manila and which would for years to come have afforded housing for many business offices and their hundreds of em ployees of this and coming generations. There went phut just a bit of the potential enter prise, activity, achievement, and continuing oppor tunity making for national advancement and progress, of that whole incalculable total which this new “nationalistic” land-policy will cost this country if it is not altered. We hope that Senator Tanada will withdraw his bill and that he and other enlightened Filipinos will see that it’is impossible to carry out a nation-wreck ing land-policy in a constructive manner, an unjust policy in a just manner, an immoral policy in a moral manner. We hope that Senator Tanada and other Filipino statesmen, instead of attempting futilely to carry out wisely this unwise and self-defeating policy, will take determined steps to wipe it off the books. According to a Malacanan statement, issued months ago, the decision in the Krivenko case does not affect Americans, under the “parity” principle. We, therefore, do not speak for ourselves but for what we believe is the good of the country. Is the dam of government competition and inter ference with business, which has been so disadvantageously effective in discouraging the The Dam investment of much-needed foreign caBreaking? pital, breaking? To the long-anxious gaze there seem to be signs that it is beginning to crack. For one, President Quirino’s recent announce ment that the Government is prepared to sell or to turn over to private management a number of govern ment corporations. For another, the consideration being given in the National Economic Council and in Congress, too, to liberalizing the Philippine Flag Law. As to the latter, the proposal made, even if en acted—to reduce Filipino capital participation from 75% to 60% in those firms entitled to the benefits of the Flag Law, would as to its practical effect mean little or nothing, but, at least, it is a gesture in the right direction. These developments are to be looked upon as im portant because if carried out they would strike at the foundations of the unwise politico-economic policy which is so largely responsible for the alarming re luctance which foreign capital has shown in investing in the otherwise inviting Philippine field. Since the establishment of the Republic, business here has looked upon the opening of each session of Congress only as the beginning of a new open season for the enactment of all sorts of crack-brained na tionalistic legislation, bound to defeat what should be the aim of true nationalism, the building of a great and prosperous country. Now Philippine business, at least the more intelli gent and responsible part thereof, is watching with bated breath what may be a return to reason and statesmanship. It may be that the policy-makers will turn to the right road leading to what we acknowledge was always a rightful objective, but which they were departing from even while they believed they were approach ing it. Nationalistic through the people properly are in this young Republic, we believe that they would sup port a policy which would successfully enlist the aid of outside capital in the development of the country, the creation of employment and opportunity, increas ing government revenues and strength and spreading wide a general prosperity. We advocate no “foreign exploitation” to the dis advantage and harm of the country. We advocate what the United States itself did during the great building-period of the nation,—welcome and offer rich opportunity to outside capital. Outside capital and foreign entrepreneurs- constitute, from the point of view of any undeveloped but sovereign country, only a means, an instrument, the need for which gra dually and naturally disappears as domestic capital takes its place. Philippine capital will later, in its turn, seek opportunity for investment in. other unde veloped regions, and there, as here, it would work the miracles of human enterprise. 147 Two Speeches Before the Business Writers’ Association Andres Soriano President, A. Soriano y Compania IT gives me great pleasure to be here tonight, and I sincerely thank the Business Writers Associa tion of the Philippines for its kind invitation. On this occasion I feel doubly honored. At the request of your Association I am here not only as the reci pient of your award, but also to make the response on behalf of my other friends chosen as outstanding in various fields of business endeavor in 1947. In their name as well as my own, many, many thanks. It would appear that the organizers of this award dinner have picked me as a spokesman precisely be cause I am not a speaker I The business writers know this only too well. Yet, in spite of my limitations as a public speaker, I have accepted the distinction and will, tonight, voice some thoughts which, for some time, I have considered of significance to business en terprise in this country. I feel deeply that at the root of our economic troubles lies the fallacy that the best way of ordering economic affairs is to place the full responsiblity for all crucial decisions in the hands of the Government. This is an error which, driven to its logical conclusion, can bring upon this country untold miseries. I am also of the opinion that the post-war pattern of economic development evolved for the Philippines is confused. One of our main tasks — of businessmen and the chro niclers of business — is to do what we can to bring about greater maturity in economic thinking, because economic confusion is the breeding and fertile ground of communistic ideas. Tonight, allow me to give you a brief and random expression of my observations in regard to the pro gram for the development of the economy of this young Republic which we all cherish and whose people we love. On an occasion like this, I must perforce be brief and limit myself to posing a few questions to provoke thought. Let us take the case of the National Development Company. What were the late President Quezon’s reasons for its creation, and has it fulfilled its great objec tives? I understand that it was organized as the in strumentality of the Philippine Government to assist in the exploitation of Philippine resources, the develop ment of industry, and the general advancement of Philippine economy by lending a helping hand to acti vities and industries in which private capital was not available. This assistance was conceived to involve and include auxiliary financial participation with pri vate companies qualified for an undertaking by hav ing made the necessary research and being possessed of the required technical “know-how”. It was only when private capital was not sufficiently available for a desired project that the Government, through the N.D.C., was to consider undertaking the new enter prise by itself for the benefit of the nation. Further more, once the Government should have demonstrated Manila, March 12, 1949 the profitable nature of an enterprise, it should dis pose by sale of that particular operation in favor of private businessmen and technical experts. Thus the Government would have a revolving fund available to pioneer in other fields. This original policy of government participation in industrial development — a participation primarily of a temporary and auxiliary character — has it been ratified and strictly adhered to in the post-war period? If we are to believe in the Beyster Report recommenda tions and the newspaper accounts of the purported plans for the economic development of this Republic, it should be radically altered since it appears that the Government will be competing with private enterprise and will try its hand in every conceivable venture. On the other hand, I am informed that the two-billionpeso plan of economic expansion provides just the type of financial assistance envisioned originally. It is natural that in a new nation like the Philip pines a marked nationalistic trend should initially be dominant in all its economic plans. Yet, we must not forget that we are a part of the world and, in the long term view, what is the position of the Philippines to be with respect to its international economic relations ? Before proceeding on any road, we should know def initely where we are heading for. Foreign capital — and by foreign I include all outside capital besides American — has repeatedly been invited to participate in the economic development of the Republic. However, the extent of foreign in vestment up to now has been a big disappointment. But I ask you, gentlemen, what concrete program has been outlined to attract, what definite assurances given to induce, foreign capital to invest heavily in the Philippines? When a country like the Philippines is favored by its climate conditions and geographic position to pro duce certain products which give it a practical world monopoly, is it economically safe to carry out a pro gram of complete industrialization whereby long estab lished industries in some other parts of the world will be undermined and unemployment there increased? If we wish to maintain our right to supply markets with products we are in a position to command and control, must we not keep the corresponding idea in mind, in our over-all position in the world trade, of our need to purchase goods which other countries can better produce and manufacture? • Let us worry about the rehabilitation of our abaca industry, for example, and allow some other countries to worry about providing us, with nails and condensed milk. What is our goal? The industrialization of the country, to the point of self-sufficiency regardless of the economic price, the cost of the products manufactured to. be borne by the people.? A preposterous idea! Will this country con tinue to be an example of democratic principles, or is its goal to be one approximating economic autarchy? I may be obstinate, but years ago when asked about the extent and type of industrial development that the Philippines should adopt, my thoughts then were as they are now, that, in addition to the vigorous 148 development of those natural resources of the country for which there are world markets, a program should be laid out which would coordinate our industries with the products of our soil that will obtain world markets on a semi-processed and not a final manufacturing stage. An illustration of this industrial development is the cellulose and paper-pulp program. Such a pro gram would utilize resources practically wasted, such as cana bojo, and utilize the cellulose content of ramie as a by-product. Another is the use of maguey and abaca waste for the manufacture of cloth for bags which, apart from substituting the imported jute or Hessian cloth containers, may find a demand in other parts of the world. The development of the ramie industry will open up large agricultural possibilities in this country. The world demand for ramie is at present restricted due to the limited production of the fiber, so limited that textile mills would not be justi fied at present in making changes in their looms to weave the processed fiber, a condition which would be altered with adequate supply. In passing, I need only to mention that climatic conditions in Mindanao are definitely highly favorable to the cultivation of this plant which is only awaiting exploitation to satisfy a world need. The studies presently being made by the National Power Corporation and the Westinghouse Survey for the eventual utilization of the power and energy, now wasted, from the rivers and water sources of the coun try, illustrates the constructive function of government aid. The electric power so developed will insure to industry and other consumers a potent means of ac complishment at most advantageous and reduced prices. Availability of cheap hydro-electric power would place within the reach of the Philippines the produc tion of commercial fertilizers and other needed heavy chemical industries. The Philippines is essentially an agricultural country and an important, if not the main, deterrent to agricultural sufficiency is the lack of cheap commercial fertilizers. With the availability of fertilizers the important sugar industry of the Philippines would be substantially advanced by the increased yield of its sugar-cane fields; cultivation of the ramie plantations — a project I hope to see realized in the near future — will be feasible. As an aid to the cultivation of rice, the result would have world import. Not only would the Philippines become a granary to protect its own food supply, but it would join Siam, Burma, and Indo China as an exporter of this stape food and provide insurance against famine in Asia. I hope I shall not be thought overly critical by reason of my remarks of a general nature. May I say, parenthetically, that I with the rest of my fellow businessmen are to a great extent to blame for not devoting more time to participating in services essen tial to the welfare of this country? We must find the time and take the trouble to rebut misrepresenta tions — we must keej> in closer touch with the Legis lature by requesting public hearings and attending them, and with the press, on mattters of national con cern. We should express our honest views when the occasion demands it. By giving what cooperation we can to business writers in the way of information, we can perhaps, among other things, influence and modify the ten dency of the Legislature in the past years of mainly concerning itself with the “rights of labor”, to the neglect of the other classes of the body economic. I may cite, though, as one of the exceptions, the Bill exempting new industries for a period of five years from taxes. There are, undoubtedly, immediate poli tical rewards to this partisan course of action, but it is confused thinking and certainly a very short sighted policy that which denies that the welfare of labor is bound up with the welfare of the other classes of society. A gigantic step forward in the economic develop ment of the Philippines would be attained if the distri bution of ownership were in the future progressively and proportionately extended as, let us say, in the United States, where a number of utilities and major industries count their stockholders by the tens of thousands. The disposition of the savings of the salary-wage earners and small capital of the Philippines should fol low the United States pattern. I have been accused of being a perennial optirrtist, and with respect to the economic future of the Philip pines, I again concede the accusation. Being aware of the vigorous and civic spirit shown, as an example, by the young businessmen of the Jaycees, and the generation that has taken over from their elders, farm ing their lands and conducting new business and in dustry in that rich island of Negros, I have complete confidence that their energy, industry and enterprise will develop the Philippines along the solid lines those of us who love her have always envisioned. Gil J. Puyat President, Gonzalo Puyat & Sons, Inc. I AM deeply grateful for this award. I feel you have been overgenerous to me. I accept it in all humility. In accepting this award, I can think of no more fitting resolution than to rededicate my self to the service of our people and of our country... I would like very briefly tonight to diagnose with you the state of the economic health of the nation. Agriculture, which is still the main source of the income of the people, is in an under-developed state. Our agricultural methods and practices are, to use an exaggeration, still medieval. The reasons for this backwardness have been known to us all these years, and while we have made attempts at palliatives and at times have shown a resolution to attempt basic re medies, our interest in applying these remedies has been unsustained. The only encouraging sign on the horizon seems to be our belated decision to really develop irrigation on a big scale. I notice with dis couragement that we are doing very little in research and in experimentation, activities which in all forms of human endeavor, are foundational to accelerated progress. For as long as I can remember, our leaders, both in and out of the Government, have accepted the ne cessity of industrializing the country. The plans and proposals for such a program have been varied and conflicting. However, no matter what the methods may be or the approach that may be adopted, there is unanimity in our thinking that to increase the national income and to enhance the earning capacity of our people, there is need for industrialization. The emphasis laid on this phase of our national activity was set in bold relief when we applied for a loan with the International Bank for the development of water power at various strategic points in the Phil ippines. The exhaustive studies made are an eye 149 opener in visualizing how these various industrial projects, if carried out, could reshape our economy. I am only too cognizant of the fallacy of the phrase "economically self-sufficient” as applied to modern life. When I was in the United States some two years ago and had occasion to speak before cham bers of commerce, Rotary clubs, and foreign trade associations, and saw and felt the desire of the Ame rican people to import more of our products, I had to admit before these same audiencies that aside from the export items which now appear in our foreign trade, there are not many more that we could add. The objective, therefore, of any plan of industrializa tion is to lessen our dependence, in at least the es sential commodities, on foreign markets, and, to the extent that our resources will allow, to increase oui' exportable goods. The Philippine peso today is stable. It enjoys a sdund standing because of the dollar reserves we have piled up in the United States in the past. Studies show that unless we radically improve our foreign trade and decrease the unfavorable balance against us by the time the different sources of dollar revenues we now have will dry up (1951), it will be a serious matter for our Government to maintain the position of the peso. Our commerce is predominant ly in the hands of aliens. Our industries are in like, if not as serious, a predicament. Our system of public instruction which was initiated at the turn of the century and which had for its principal objective the supplying of personnel for government service, continues to lay undue emphasis on the professions though we have known for years that a saturation point has been reached in many of these professions and in some cases an over-supply actually exists. While the development of vocational schools and technological institutions has been the subject of de bate and the theme of many well written articles, vocational schools and technological universities of standing are still in this country, to use another ex aggeration, a figment of the imagination. Our public utilities leave room for improvement, and our mer chant marine is still in its skeletal formation. These facts must lead to the conclusion that the country and its productive agencies have neither developed the proficiency nor the capacity to main tain the rather elevated standards of living that we have adopted. I once said in delivering a short ad dress before a labor group that perhaps one of the tragedies that has befallen us is that while we have shown a ready inclination to adopt the American standards of living, we have not been as apt pupils in adopting American proficiency in the industries. And while 1949 finds us in this state of economic stagnation, with no immediate signs of revitalization, we find ourselves carried along in that universal cur rent which has for its inspiration and motivation the uplift and betterment of the masses. Our Govern ment, and, for that matter, any other government, can ill-afford not to subscribe to so humanitarian and laudable a program. There can be no controversy as to the reasonableness of adopting it for our peo ple. And yet’, while we may be committed to this program, judicious thinking counsels us that in adopting measures for the betterment of our masses, the capacity and the ability of our productive agen cies should be taken into account. These two basic features of our developmental program should be kept in fine balance, otherwise we may retard and even ruin the development of our productive agencies. A disproportionate emphasis laid on social amelioration, when neither our productive ability noi’ capacity will support such a program, would conduce to calamity. It would seem almost a superfluity and an unneces sary restatement of what seems to be most obvious to say that industry can pay labor generously or nig gardly in direct proportion to industrial ability and capacity. Giving labor a share beyond this point, is in effect a liquidation of capital. And the harm that will ensue will be felt by society at large. It might be well for us to consider in deciding the pattern of our economy to take into account that, geographically, we are in the midst of countries char acterized by cheap and unskilled labor. I was in Japan some two months ago and I was informed that the average monthly income of a Japanese laborer to day is 6,000 yen. Converted at the official rate of 270 yen per dollar, this is an approximate $22, or P44, monthly income for the Japanese laborer. If I remember correctly, when the Undersecretary of Commerce of India was here recently, he gave us the information that the average daily income of a labor er in India is much less than a peso. We do not hap pen to have statistics on the average labor wage in China, in the Dutch East Indies, or in Malaya. We can only surmise that the wages there are not much higher or would be along the same levels as those now prevailing in the two countries I have mentioned. I make mention of these figures so that both labor and management may know the real situation. It is important that we know the facts in order to establish for our country a well-proportioned econo my. During the two years since the enactment of the Bell Act, both officially and in private, the desire to welcome foreign capital to invest here has been made manifest. For some reason or other, or a combina tion of reasons, that capital has not come in suffi cient volume to affect even fractionally our economy. The word has gone around that the Philippines is one of the most expensive places to live in in the world today. The same holds true with our cost of pro duction. Here we have the paradox that while the commodity-index has gone down and the trend is for it to continue to go down, the demand on the part of labor for increased wages is continuously asserted. On top of this, the fact must be admitted that our labor today is not as efficient as it was before the war. These factors are not conducive to attracting foreign capital to our shores. I can well understand the desire of labor to con tinuously raise the level of wages here. But as I stated a while ago, there is a limit to what our in dustries can bear. What should be done here, and this should receive the support of both labor and management, is not to further raise the wage level but to provide for a broader occupational base, so that instead of one wage earner supporting a big family or two or three families, there would be seve ral wage earners in one family. Instead of encourag ing our masses to rely and depend on the Govern ment for its welfare, security, and uplift, this plan would provide more enduring results because it would not be a drain on any one section of our population or on government revenues, but would be a partici pation in increased production. Unless we reorient our policies so that these objectives may be achieved, Cooclwlmt nt bottom of next patte 150 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source MARCH 2 — The Cabinet sustains the policy of using Philippine Naval Patrol ships to carry strictly gov ernment inter-island cargo, particularly cement from Cebu to Manila, but rules against permitting government of ficials and employees to ship personal goods by these vessels. The Cabinet also approves an agricultural and industrial program to make the penal colonies self-supporting, including intensification of lumber and abaca projects at Davao and Iwahig, coconuts at Iwahig and San Ramon, and fishing at Iwahig; the machine and vehicle repair shop and the carpen ter shop at Muntinglupa will be enlarged. March 4 — A Treaty on Academic Degrees and the Ex ercise of Professions and a Cultural Treaty between the Phil ippines and Spain are signed at Malacahan. President Elpidio Quirino in formally bidding goodbye to Maj.-Gen. Albert M. Jones, military adviser to the Govern ment, states that he is leaving on “an important mission” and will recommend to the United States Congress “certain mea sures which will bolster the defenses of the Philippines.” Secretary of Commerce and Industry Cornelio Balmaceda suspends Mrs. Felicidad Manuel as manager of the National Cooperatives and Small Business Corporation, pending inves tigation of charges brought against her involving neglect, mis conduct, and malversation of funds. March 5 — The President and party leave Manila for Tuguegarao to open the national inter-scholastic athletic meet. The President will also visit Aparri and Ilagan. March 6 — Dr. Y. T. Pyun of Korea leaves Manila for Seoul carrying a note from the Philippine Government extend ing de jure recognition to the United-Nations sponsored Re public of Korea. March 7 — The National Economic Council brings to final form a draft resolution to implement the Administration’s P200,000,000 development plan. It also reaffirms the Pres ident’s decision approving the tax exemption requested by PRATRA only on such goods as are issued for relief. March 8 — The President returns to Manila and tells the press that an extension of the Manila Railroad Company line from San Jose, Nueva Ecija, to Bayombong, and eventually Aparri, will soon be begun. March 9 — Maj.-Gen. Hughes Casey, Chief Engineer of SCAP and former adviser to the National Power Corporation, calls on the President. He has been requested by the Power Corporation to assist its engineers and consultants in review ing the power development program of the Government which he was largely instrumental in planning in its initial stages. He was accompanied by Filemon C. Rodriguez, manager of the Corporation. March 10 — Dr. A. J. Hermano, chemist of the National Development Company, calls on the President to submit a re port »of his studies of ramie manufacture in Japan, recom mending large-scale development of ramie planting and manu facturing here. He was wearing a ramie suit made of cloth manufactured in Japan of ramie fiber imported from the Philippines. March 11—Norris Ei Dodd, director-general of the Food and Agriculture Organization of the United Nations, calls on industrialization in this country will progress at a snail’s pace; further, our industrial program may re main a perennial dream. I want to thank you once again for the distinc tion you have conferred upon me tonight, and while realizing that a discourse on economics is unpalatable to some and uninteresting to many, I dared invite you into an examination of the state of the economic health of the nation in the hope that this promised land of ours may not continue to be unpromising. I thank you. the President and assures him the FAO will give full support to Philippine efforts to speed economic rehabilitation. The President reiterates his desire to see foreign capital invested in the Philippines and states capital should not be disturbed by the present political agitation which is but a “passing cloud” and a part of the Administration’s determined effort to establish a clean and honest government. As a first step in the implementation of the Government’s P200,000,000 development program, the Central Bank advances P469.200 to the Treasurer of the Philippines who will loan this amount to the National Development Company as first payment for the construction of three 10,000-ton ships to be built in Japan under the sponsorship of SCAP. When com pleted the ships will be operated in collaboration with the De la Rama Steamship Company of which Sergio Osmena, Jr. is president. Secretary of Finance Pio Pedrosa states that the opera tions of 13 government corporations during the 1948 fiscal year yielded P23,600,000 in profits (not including the net proceeds of P33,900,000 of such fund-raising agencies as the Surplus Property Commission, the Shipping Administration, and the Philippine Charity Sweepstakes), while 7 corpora tions incurred losses amounting to P9,900,000,— a net gain of P13,700,000. March 12 — The President, in addressing the annual con vention of government health officers, states that the Philip pines could easily support a population of 50,000,000 but em phasizes that what is needed is the organization of the coun try’s man-power and the utilization of machinery and other equipment to increase production, thereby advancing the eco nomy and raising the standard of living. March 13 — The President, in addressing a convention of Philippine contractors, urges them to hasten the completion of their contracts to meet the War Damage Corporation dead line and assures them that adequate credit facilities will be extended and “red-tape” difficulties will be attended to. March 14 — The Supreme Court rules that a quorum is one more than half of the total number comprising a legislative body present in the Philippines, thus upholding the election of Senator M. J. Cuenco as President of the Senate. The President announces that the Government is prepared to lease or sell or place under private management-contract all the profitable government corporations and production projects with the exception of those concerned with prime necessities such as rice and corn; also, for the present, the cement plants. He states offers from private investors to buy the government lumber projects in Batangas and Agusan are now being con sidered. March 15 — The Council of State concurs in the Pres ident’s newly announced policy to withdraw from industrial activities in favor of private enterprise. The President states the policy does not apply to public utilities and government financial institutions. The Council approves a suggestion by legislative leaders that Filipino investors, or corporations at least 60% Filipino, be given preference. The President approves a National Economic Council plan to make immediately available ?30,000,000 for income-producing projects in the top priority list and P35,000,000 more for the Rehabilitation Finance Corporation for financing private or government projects with top priority. These are parts of the P200,000,000 development scheme. March 16 — The President issues a proclamation making public the Consular Convention with the United States, and another extending the period for the Philippine National Red Cross fund campaign to April 15. He also issues an executive order amending section 4 of Executive Order No. 193 on Im port Control, as follows: "The Import Control Board shall fix the quota for each article in terms of quantities or total money values and shall allocate such quota, by authority of the President, to the importers duly registered for such article on the basis of their respective quantities or values of imports during the base period reduced in accordance with the percentages herein prescribed in Appendix “B”: Provided, that the Board, upon request of an importer, may transfer his quota from one article to another.” Reported that the National Development Company board of directors is considering a number of offers for the purchase of government agencies, including the nail plant and textile mill, the Batangas lumber finishing mill; and the Agusan saw mill. The Board decided to give other bidders up to March 31 to make their offers. It is indicated that M. Lowenstein Company, a large American textile distributor, originally of 151 fered to buy the NDC textile mill during the Roxas Adminis tration. March 18 — The Capital City Planning Commission, through its chairman, Juan H. Arellano, submits to the Pre sident a complete report on its work, including a program for the execution of various phases of the plan and construction estimates. The President, at a Cabinet meeting, instructs both Secre tary of Finance Pedrosa and Under-secretary of the Interior M. Roque to take “drastic steps” to eradicate reported abuses by tax collectors and other government agents who are said to be victimizing certain business establishments. The action followed charges made by Mrs. Gladys Savary in an article published in the Manila Daily Bulletin in which she stated that she sold the French Restaurant, famous Manila eating-house, because of allegedly irregular practices of tax collectors and other local officials. March 19 — The President appoints Eustaquio Balagtas, Director of the Bureau of Prisons, following the death, a few days ago, of Director Eriberto Misa. He names Pablo J. Norona, manager of the National Development Company rice-pro duction project in Mindoro. The President also signs two bills, one appropriating P33,698,988 to cover the deficiency in the. current appropriation of the Bureau of Public Schools for the operation and maintenance of some 6,000 existing elementary classes, and another, appropriating P12,000,000 for the adjust ment of salaries of public school officials and teachers. The President issues an executive order reducing govern ment office hours during the hot season to 5 continuous hours from 8 a.m. to 1 p.m., April 1 to June 15. Brig. Gen. Alberto Ramos, Chief of Constabulary, an nounces that his organization has taken over the guarding of the surplus army goods depots in line with recent instruc tions of the President. The measure was taken to check the extensive thievery and looting which exists. March 21 — President Quirino signs House Bill No. 1209 (Republic Act No. 344), eliminating the specific tax on skimmed milk. The National Economic Council votes an intial sum of Pl ,000,000 to 'the National Power Corporation for the Lumot power plant project on which work is set to start next month. In accordance with a request of tthe World Bank, the NPC will prepare a detailed report on the various auxiliary in dustries which may be (set up in the vicinity of the proposed Maria Cristina hydro-electric power plant, as the Bank (wishes to know whether the full power would be utilized. The Coun cil also 'requested. the Corporation to study the fesibility of erecting an oil refinery and an auxiliary fertilizer plant in Luzon against the contingency that the Maria Cristina pro ject may be abandoned. The Council approves the release of a substantial sum to the National Coconut Corporation for startig several projects, including a hard-board plant, copra driers in the provinces, and the rehabilitation of the NACOCO food and soap factories at Alaminos, Pangasinan. March 22 — The .President instructs Secretary of Justice Sabino Padilla to appoint a special prosecutor from among the senior officials in the Solicitor General’s loffice to give his full time to prosecuting persons involved in illegal surplus property transactions. March 23 — Following a conference with Dr. Frank War ing of the War Damage Commission who recently suspended war damage payments in the provinces of Lanao and Cotabato because of anomalies discovered in the delivery and payment of the Commission’s checks by post-office and municipal trea sury officials, .the President issues urgent instructions to Sec retary of Justice Padilla and Secretary of Public Works and Communications Ricardo Nepomuceno to take immediate cri minal and Administrative action against the racketeering of ficials. Reported that preliminary steps 'have been taken in the proposed sale of the Binalbagan-Isabela Sugar Company, a semi-government entity, to the National Federation of Sugar cane 'Planters. ’ March 24—The resident instructs the Board of Regents of the University of the Philippines to reject all bids submitted for the construction of the library building at Diliman and to open a rebidding as soon as possible. This ends a long contro versy over the legal aspects of the acceptance some time ago of the bid of G. E. Koster, Inc., which was challenged by one of the unsuccessful bidders. The President instructs the Board to take over the order for steel which had already been placed, and to eliminate this item in the new bidding. March 25—Government officials and private businessmen meet in the Malacanan Council of State room to discuss the present state of the three principal Philippine industries,—su gar, coconut, and abaca, in the presence of William Gilmartin, one of two World Bank officials here to conduct a survey of these industries. It is brought out that the sugar industry has filled 75% of its quota for this year, and that 90% may be filled next year and the full quota in 1951. Its main problems are the deciding on the ownership of individual quotas and their distribution to those with the capacity to produce, and a speeding up of war-damage payments. The NACOCO program for improving the quality of copra is discussed, and also the plants to spend P500,000 toward the establishment of a wallboard factory and P200.000 more for resuming the work on coconut by-products such as coco-honey, clear oil, and floor-mats and other household articles out of coconut husk. The NACO re presentatives discuss the 5-year P30,000,000 program for the rehabilitation of the abaca industry ot regain the pre-war pro duction of Pl ,200,000 bales of hemp. Secretary of Finance Pedrosa, speaking before a Manila Railroad Company worker’s union convention, states that it is his aim to raise the wage standards and shorten the workingweek to 5 days or 40 hours; but that this a long-range objectfive and that in the meantime it is necessary to increase the earning capacity of the Railroad and the efficiency of the work ers. He states that President Quirino has authorized the 270kilometer extension of the line to the Bicol and that a survey is now being made, and that the project will take 3 years and cost P37,000,000. Speaking of the bonded indebtedness of the Company, he states it has not paid interest on its 1956 bonds since the outbreak of the war. When the lines were returned by the U.S. Army in February, 1946, only 483 kilometers were operatable as against 1,189 before the war, and an equivalent of only 30% of the pre-war rolling stock was available. The Government granted the Company an accomodation loan of P20,000,000. It lost P2,400,000. the first year and Pl,400,000 Banking and Finance By F. C. Bailey National City Bank of New York THE Central Bank having published its second monthly report as of February 28, 1949, it is possible to give the following comparative fi gures : Pesos 000 omitted Assets January February International Reserve ................................. 714,969 648,758 Contribution to International Monetary Fund .................................... 30,000 30,000 Account to Secure Coinage ....................... 113,106 113,306 Liabilities Currency Circulation — Ntes ................. 621,520 597,472 Currency Circulation — Coins ................. 73,035 73,322 The decrease of P66,000,000 in International Re serves is partially due to lower receipts of War Da mage funds and reflects the continued heavy purchases of cover for imports by the commercial banks. While import and export statistics for February are not yet at hand, it is gathered from such infor mation as is available that exports decreased substan tially below the average of the past few months, re sulting in a higher adverse trade balance and greater need for purchases from the Central Bank. The Central Bank is organizing its statistical de partment and plans to publish periodically the reports on the Assets and Liabilities of the Manila Banks which, previously, were compiled by the Bureau of Banking. There has been no change in the exchange rates quoted by the Central Bank, which continues to sell Dollars at P201 for Telegraphic Transfers, and P200.95 for checks. Commercial banks are permitted to operate with in the following rates: Selling Buying U.S. Dollars T.T., over $500.00 ............. P201.50 P200.50 U.S. Dollars Demand over $500.00 ... 201.375 200.375 U.S. Dollars T.T. and Demand under $500.00 ...................................... 202.00 . 200.00 Banks are presently quoting for prime business T.T. P201.50, Selling, and P200.75, Buying. 152 American Stock and Commodity Markets By Roy Ewing Sivan, Culbertson & Fritz, Inc. March I, 1949, to March 28, 1949 DURING the past month prices on the New York Stock Exchange moved in extremely narrow range, and volume of business done averaged only 745,000 shares per day. The high for the period, as measured by the Industrial Average, was 176.98 on March 14 and the low 173.66 on March 4. In spite of reassurances from Washington and some economists, caution continued as such business indices as car-loadings, department store sales, scrap and raw materials prices, and unemployment at a high since 1942, indicated that the recession is spreading. Further evidence was price cuts in many lines made in an attempt to hold up sales, and the Federal Re serve Board’s easing up on restrictions on install ment buying. Corporate news remained good because it consisted mostly of 1948 earnings records, but first quarter, 1949, figures will be more important for an indication of trend. Some production remained at high levels, as for example steel, which operated in excess of capacity for weeks until the coal stoppage necessitated some curtailment, but it is predicted that even steel will be in supply by the second half of this year. Technically, the market continues to drift with no decisive trend, but chartists can point out that the current business declines were predicted by the aver ages months ago. The present market firmness may indicate that the recession is to be of moderate size only and has already been fully discounted. If, on the other hand, the remainder of this year is to see severe decliness in general, the averages will probably decline into new low ground long before it happens. COMMODITIES were mixed and also moved in a narrow range. New York Spot Cotton is 33.52, as compared to 33.43 a month ago. February consumption was 640,000 bales, 18% less than for the same period in 1948. May Chicago Wheat is 214, down from 2191/2 on February 28. The supporting effect of a prospective loan could not overcome favorable new crop reports and the fact that all exporting countries will have wheat for sale this year. Distant futures are selling as much as $0.35 under the estimated 1949 loan level. Corn declined moderately, being 131-3/4, as compared to 134 last month. Export purchases were disappointing. March No. 5 Sugar declined from 5.42 on February 28 to a low 5.21 nominal on March 17 but has recovered to around 5.32. Manila Stock Market By A. C. Hall A. C. Hall & Company February 19 to March 18, 1949 Mining Shares PRICES have continued to sag during the past month. With buying interest at a very low le vel, small-scale necessitous selling has been suf ficient to drag the market down in a serious of very inactive sessions. The recent trend probably reflects the local bu siness outlook, which is uninspiring at the moment. Export prices, with the exception of sugar, are easier, most importers are overstocked with goods, and credit is tighter. In addition, recent political scandals are not conducive to investment confidence. For the present, therefore, the line of easiest resistance appears downward, but the technical posi tion is improving and any constructive developments could cause a sharp rebound, as there is little stock offering at current levels. Evidence of the market’s ability to respond to good news was provided by Su rigao Consolidated which moved against the general trend on reports of a substantially increased monthly production rate from now on. In addition to the foregoing, over-the-counter bu siness during the month included small lots of Balatoc at P2, and 17,000 shares of Benguet Consolidated, high P2.95, low P2.72, closing at P2.83. Commercial and Industrial San Miguel Brewery stock was in good demand at improved prices following publication of the Com pany’s annual report showing record profits for 1948. The demand for leading sugar issues continues, but business otherwise in this section was very quiet. P70.00 PH.00 Bank of the Philippine II. ..P64.00 P64.00 P64.00 Unchanged II 620.00 100.00 Central Azucarera de Bais ... 620.00 620.00 620.00 Unchanged 41 lota ..................................IH.OO 149.00 111.00 Unchanged 294 107.00 70.00 Central Azucarera del Pilar .101.00 101.00 101.00 Unchanged 167 71.00 10.00 Central Azucarera de Sara 60 00 40 00 C Ai“[ A........... d T i’"’ —- 7, 00 60 00 111.00 171.00 China Banking Corporation .. ----- 180.00b ------22.00 22.00 Filipinas Cia. de Segurot .... ----- 22.00b ------1.00 l.«0 Manila Wine Merchant!, Inc 1.80 1.80 1.80 Off 141.00 140.00 Metropolitan Insurance Co. .. ----- — 140.00b ------.101 .12 Philippine Oil Development Co............................................II .12 .14 Off 1.42 1.20 Philippine Racing Club ......... 1.28 1.20 1.20 Off 71.00 11.00 San Migued Brewery ............ 60.00 14.00 19.00 Up 100.00 71.00 Williams Equipment Co. Pfd.-------------- 71.00b ------10.00 7.00 Williams Equipment Co. Com. ----- ----- 7.10b ------Over-the-counter commercial business during the month included 400 shares Hawaiian-Philippines at P4; 5,000 Manila Jockey Club at P2; and 134 shares Victorias Milling, between P155 and P150. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. THE annual meeting of the members of the As sociation of Credit Men, Inc., (P.I.) will be held April 19. At the end of almost two years of activity since the war, the Association finds itself in a very healthy condition. Membership now totals 69, the highest it has ever been, and several additional firms are considering joining. Interest in the work of the group continues to grow and the exchange of credit information will undoubtedly increase during the year. We notice that some foreign manufacturers are beginning to find their normal domestic markets growing too competitive and are looking more and more to the Philippines as an attractive outlet. Exporters willing to ship to this country during the 153 GROSS SALES (TEN LEADING BUSINESS FIRMS) 1937-1949 Bureau of the Census and Statistics (1937 = 100) 1937 1938 1939 1940 1941 1945 1946 1947 1948 1949 January . ................ 95.1 75.5 88.8 106.7 104.8 _ 49.6 160.9 ” 225?2 February . ............... 102.5 71.6 80.3 99.8 95.9 — 34.6 228.9 228.3 — March . . ................ 105.9 85.2 87.1 104.3 107.2 — 61.1 218.8 257.5 — April . . ................. 107.5 81.4 79.8 100.3 105.6 75.1 155.3 254.0 _ May . . . ................ 100.4 76.9 80.1 97.5 113.0 1.6 117.5 216.0 273.8 — June . . . ................ 100.3 76.6 107.7 103.5 117.0 5.4 85.3 249.4 308.7 — July . . . ................ 105.7 72.0 90.8 98.8 110.0 8.4 89.7 240.4 313.2 _ August . . ............... 97.4 75.2 90.8 98.3 109.8 10.4 118.9 202.8 272.2 — September ................. 83.4 76.8 103.3 93.1 114.0 110.7 116.4 219.2 261.1 — October . . ............... 97.0 80.1 103.4 85.8 100.1 10.8 147.0 222.9 252.5 _ November ................. 100.4 104.2 110.1 105.6 97.7 21.4 165.1 278.7 215.8 — December . .............. 104.3 88.6 119.4 119.1 64.8 27.9 184.4 291.8 253.4 — early post-war period only under letters of credit, ■ are now considering granting more liberal terms. In addition to encouraging trade, this trend brings with it the need for more accurate and extensive credit information. As more data becomes available, this should be helpful to local business houses as well as to foreign sellers. The amount of cash required for advance salestaxes on stocks imported into the Philippines, conti nues to aggregate millions of pesos. In cases where the merchandise is not sold immediately, financing is quite frequently needed and some importers have found it necessary to arrange special credit facilities with banks in order to meet their tax payments. Real Estate By C. M. Hoskins C. M. Hoskins & Co., Inc. HE Manila real estate market continued firm as to prices during March. Volume of sales was slightly higher than for the previous two months, preliminary figures showing sales of P2,396,578 during March, as compared with P2,017,139 for February and Pl,889,925 for January. The number of transactions likewise showed a slight increase. Residential rentals, after having eased off during the past six months, seemed to have reached a point of stability. Much of the 1946 rental construction which was leased on the basis of very high building costs, is now being rented on the basis of today’s re placement costs, which are expected to continue ma terially unchanged for some time to come. Demand for desirable rental proper ties is brisk, but tenants are now demand ing more in the way of amenities than they expected two years ago. City plan ning proposals have tended to slow up reha bilitation i n some sections, owing to the efforts of public officials to enforce the proposed new build ing-lines before these have been officially approved and new rights-of-way acquired. Late in March, what promises to be a test case was filed with the courts, in which an applicant for a building permit seeks a mandamus compelling the city engineer to issue him a building permit, although the planning office has proposed a street encroaching upon his lot without of fering to compensate the owner. The outcome of this case is watched with interest by real estate and build ing interests. It is generally recognized that considerable street widening is needed in Manila to meet growing traffic volume. The City of Manila has an area of 3,600 hectares (9,000 acres), but the area devoted to streets is only 11.4% (410 hectares), compared with the gen erally accepted 20% which community planners consi der necessary. The City of Manila is seeking author ity for issuing a P40,000,000 public works bond issue to provide the funds for street widening and construc tion, as well as other permanent public improvements. Financial circles consider the amount sought to be well within the paying capacity of the city, being less than 10% of the value of the taxable realty. Another city project for which authority is sought, is the issuance of tax-anticipation warrants, bearing 3% interest, for the purchase of odd strips of land needed for street widening. The warrants would be divided in 15 annual installments, acceptable in payment of real-estatie taxes over the 15-year period. The warrants would be negotiable. If approved this would expedite the acquisition of rights-of-way for urgently needed street widening in congested dis tricts. Note : January . February March . . April . . May . . June . . July . . August . September October . November December Total . . P REAL ESTATE SALES IN MANILA, 1940-1949 Prepared by the Bureau of the ICensus and Statistics percentage of 1945 sales and a diminishing percentage of Japanese Occupation transactions not recorded until after P P P 1946 sales, re liberation. 1948 P 3,644,734 3,879,633 4,243,719 5,021,093 3,129,799 8,019,246 5,146,529 6,192,876 4,737,581 5.350,376 3,046,287 5,386,248 1949 P3,965,420 5,047,126 154 BUILDING CONSTRUCTION IN MANILA: 1936 TO 1949 Compiled by the Bureau of the Census and Statistics from data supplied by the City Engineer's Office. MONTH 1 1936 I 1937 1938 1939 1940 | 1941 1945 1 1946 1 1947 1 1948 1949 | (Value) | (Value) | (Value) | (Value) (Value) | (Value) (Value) | (Value) | (Value) | (Value) 1 (Value) January P 540,030 P 720,110 426,230 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 P4,807,320 February . 479,810 434,930 1,063,050 662,840 1,025,920 467,790 — 2,509,170 3,040,010 3,270,150 6,827,005 7,286,630 March . . 411,680 396,890 1,300,650 671,120 641,040 — 3,398,910 7,498,560 8,100,700 April . . 735,220 659,680 670,350 770,130 1,029,310 1,139,560 962,420 408,640 335,210 462,020 3,125,180 8,295,640 7,370,292 8,570,410 May . . . 400,220 1,063,570 740,510 1,496,700 3,968,460 3,904,450 5,564,870 June . . . 827,130 459,360 754,180 809,670 542,730 418,700 2,444,070 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 . . 368,260 827,660 627,790 684,590 622,050 661,860 590,380 306,680 1,418,360 1,015,250 4,889,640 7,326,570 7,428,260 7,770,310 7,568,950 September 393,100 777,690 554,570 530,830 7,095,860 October . . 663,120 460,720 971,780 718,190 645,310 738,700 699,040 639,030 4,630,550 6,747,240 5,368,800 November 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 P20.194.650 Annual Average P514.229 P627.557 P773.380 P754.438 P686.205 P474.356 Pl,015,513 P3,960,575 P6,158,937 P6,899,381 P6,731,550 Electric Power Production Manila Electric Company System By J. F. Cotton Treasurer, Manila Electric Company 1941 Average — 15 316 000 KWH Kilowatt Hours im!) um January..................... 33 745 000 27 301 000 February................... 31 110 000s’ 26 021 000 March......................... 34 615 000** 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 • 11 “vised •• Partially estimated The increase in March over February output is due mainly to February having only 28 days. The increase over March, 1948, was 7,664,000 KWH, or 35%. Port of Manila By R. L. Bary General Manager, Luzon Brokerage Company IN the meeting of the Manila Arrastre Service Ad visory Committee with the various brokers asso ciation on March 25, 1949, the matter of transfer of cargo from the piers to the Manila Terminal Bon ded Warehouse came under discussion with very little resultant change in policy. The brokers raised objection to the transfer of cargo to the Terminal Warehouse when such cargo is covered by permits, but Mr. Fermin Francisco, repre senting the Philippine Ports Terminals, Inc., pointed out that this is done in most cases to protect the cargo and in other cases, is necessitated by the crowded con dition of the piers. Whether or not the goods are covered by delivery permits, even though the threeday period of grace following completion of discharge of carrying vessel has not expired, goods which can be damaged by exposure to weather are often put in the Terminal Warehouse to protect them against damage, and Mr. Francisco further pointed out that in such cases, no transfer charges are made and no storage fees are imposed before the expiration of the free storage period. Mr. Francisco referred to the meeting of the Manila Arrastre Service Advisory Committee on April 19, 1947, in which the following clauses were agreed upon and which are still in effect: (a) On all cargo transferred to the Terminal Warehouse within the free-storage period and taken delivery of within the said period, no transfer and storage charges shall be collected. (b) On cargo transferred to the Terminal Warehouse within the free-storage period, and taken delivery of after its expiration, only storage charges shall be collected. (c) On small shipments not exceeding 10 packages for which the delivery permit has been filed and partial delivery made within the free-storage period, no transfer and storage charges shall be collected if delivery is made within 5 days from date storage begin. The representative of the brokers requested re duction in charges of goods transferred to the Ter minal Warehouse after expiration of the three-day period, but it was pointed out by one of the represen tatives present that the charge of Pl per ton per day was intended as a penalty because if the Terminal Warehouse is to charge the same storage fee as that charged for bonded warehouses of various brokers, it would be impossible to handle the volume of business that would result and further, it would place the Ter minal Warehouse in competition with privately-owned bonded warehouses. It was also called to the atten tion of the brokers that in cases where goods cannot be removed from the piers because of delay in securing delivery permits or other causes, they have the privi lege of transferring their goods to their own ware houses under guard, thus saving their customers the penalty charge. The matter of reducing the present rate of Pl per ton per day to P.50 per ton per day is now under consideration. Other matters under consideration before the meeting included the piling of cargo on the pier, but little change can be expected. Mr. Francisco pointed out that it was often necessary to pile damageable cargo in various parts where roof-protection is avail 155 able in order to protect it from various elements, and this prohibits orderly piling. Whatever roofing there was on Pier 13 is being removed preparatory to start ing rebuilding, and, while this is a temporary handi cap, it is expected that one berth at Pier 13, two berths at Pier 9, and two berths at Pier 5 will have covered sheds before the rainy season begins. Piers 7 and 11 will be operated as they are. The other three berths at Pier 13 and the two berths at Pier 9 will not be available until, at least, the end of the year due to this reconstruction program. Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines EXPORTS continued to show a favorable increase for the current year over last year. During February of this year 85 vessels lifted 199,143 tons, as compared to 79 vessels lifting 143,414 tons during February, 1948. Principal exports carried during the month under review, compared with exports during Feb ruary, 1948, are as follows : February l!)i9 February 1!>48 Alcohol.................... 28 tons — Buntal fibre .... 21 ” — Coconut, dfesiccated 8,545 ” 6,245 tons Coconut oil............. 2,598 ” 2,259 ” Concentrates, copper 2,127 ” 177 ” ” gold . 297 ” 14 ” Copra....................... 38,655 ” 84,950 ” Copra cake, meal . . 5,310 ” 5,453 ” Embroideries .... 367 ” 43 ” Fruits, fresh ...... 70 ” — Furniture, rattan . . 709 ” 424 ” Gums, copal........... 50 ” 37 ” Hemp....................... 66,735 bales 62,678 bales Household goods . . 231 tons 85 tons Junk, metal............ 20,211 ” 4,374 ” Logs......................... 988,350 board feet 632,704 board feet Lumber.................... 2,918,245 ” ” 200,239 ” ” Molasses... 1,332 tons — Ores, chrome .... 28,150 ” 26,600 tons ” iron. 5,657 ” — ” manganese . . 1,400 ” — Pineapples, canned . 2,634 ” — Rattan, palasan ... 54 ” 120 tons Rope........................ 82 ” 18.9 ” Rubber..................... 129 ” 18 ” Shells........ 62 ” — Skins, hides............ 154 ” 29 ” Sugar, raw............. 59,373 ” 13,385 ” Tobacco................... 778 ” 199 ” Vegetable oil pro ducts .................... . 27 ” 307 ” Wines....................... 125 ” 13 ” Transit cargo .... 1,410 ” — General cargo .... 1,982 ” 4,320 ” Inter-Island Shipping By G. F. Vander Hoogt Manager, Everett Steamship Corporation HEARINGS are being held by the Public Service Commission concerning a general increase of inter-island freight rates, which increase is con sidered vitally necessary by the inter-island operators. The Philippine shipowners have submitted financial statements in support of their position, and the state ments show that the companies operating these ser vices are unable to earn sufficient to provide reserves for necessary repairs, dry-docking, etc., to say nothing of building up reserves for fleet replacement. Indi vidually, a number of operators have suffered actual operating losses and, without an authorized increase in the rates, some operators will without doubt be forced to cease operations entirely. Naturally, such increases will be opposed by shippers, but it appears that if such relief is not granted to the operators soon, the services will no doubt be curtailed to such an extent that serious inconvenience will result to all shippers and the public in general. It is hoped that the Public Service Commission and other authorities will have sufficient incentive to maintain and improve the inter-island transportation service. Land Transportation (Bus Lines) By L. G: James Vice-President and Manager, A. L. Ammen Transportation Co., Inc. OF primary interest, both to pre-war and post war operators of bus services are current hear ings in the Public Service Commission on ap plications for the conversion of temporary operating rights under which all so called post-war bus trans portation facilities are operating, to regular status with Certificates of Public Convenience giving speci fic rights for a specified period of time. Thousands of holders of temporary certificates have applied for regular certificates. In most cases, operators holding pre-war rights on the lines concerned are strenuously opposing these applications. Several recent decisions of the Commission may serve to establish a general policy which seems to provide a solution more or less satisfactory to the contesting parties and which may be used as a broad basis for the granting of regular operating rights to “temporary” operators. In these decisions, which have been based upon compromise agreements be tween applicants and oppositors, temporary certifi cates have been converted to regular certificates with the following limitations: 1. That the operating rights shall be granted for a 5-year period, without extension. 2. That no increase of present equipment will be granted. 3. That no application for additional trips, ex tension of lines, or additional lines will be enter tained. 4. That Certificates of Public Convenience granted under this authority will be non-transferable. These provisions enable both applicant and oppositor to determine exactly where each stands and to plan accordingly. The operator now under tem porary status has a five-year period within which to recover his investment and to make plans for ulti mate liquidation. The pre-war operator holding per manent operating rights can look forward to not more than five years of a gradual disappearance of his competition and build up his fleet of buses during that period to meet the actual need of the public on the lines that his operations cover. 156 Mining By Chas. A. Mitke Consulting Mining Engineer GOLD—its production and sale, is a subject of vi tal importance to Philippine producers. M. A. Kriz, economist for the Federal Reserve Bank of New York, reviewing present conditions and fu ture trends, discerns three important developments. (1) In 1948, for the third year, the world’s gold out put showed a rising trend. (2) Foreign sales of gold to the United States slackened. (3) Legal open mar kets for gold were established in some countries. On these markets, as well as on the Far Eastern and Middle Eastern free markets, the price of gold tended, on the whole, to rise. The overall world increase in gold production in 1948 stemmed entirely from three countries: the Union of South Africa, Canada, and the Philippines. Mr. Kriz states it is not yet possible to ascertain if, and to what extent, last year’s output was affected by subsidies, tax reductions and other measures for stimulating gold production. In Canada, subsidies be came effective on January, 1, 1948, for a period of three years. In Western Australia and in Southern Rhodesia they were established during the year. The Canadian and Australian subsidies are not uniform payments for each ounce of gold mined, but are differential payments, designed to enable indivi dual marginal mines to continue operations despite rising costs of production. In the opinion of the In ternational Monetary Fund, which was first consulted by the Canadian and Australian Governments, such subsidies, where extended on the merits of particular cases and and in the light of special circumstances, are not to be understood as casting doubt on the uni formity of the monetary value of gold, nor as con travening the obligations from member countries to engage in gold transactions solely at prices based on the par values of members’ currencies. On the other hand, the original Rhodesian sub sidy was a general subsidy on all gold produced. In direct subsides, such as tax relief, preferential rail way rates, government financing of technical research, etc., exist in a large number of countries. Import licenses for gold-mining materials and equipment are likewise administered in such a way as to aid the gold-mining industry. The year 1948 saw the creation of legal open markets for gold in France (and Algeria, Tunisia, and Morocco), Italy, and Finland. At these markets, trading is wholly free and buyers and sellers need not even give their names, an aspect of the trade that has special significance under the conditions pre vailing in these countries today. Export and import of gold continue to be subject to license, but accord ing to various reports, there has been some interna tional gold arbitrage through smuggling. No gold sold on the open market has thus far found its way into the French Stabilization Fund, which is of course precluded from buying gold at a premium. Elsewhere in Europe, private business in gold has dwindled to an insignificant volume. Very few countries, it appears, continue to at tach importance to the domestic role of gold as a cover for legal currency. On the other hand, gold continues to play a role as the final means of international settlement. How ever, under the circumstances of the present day dollar shortage, this role is of course, confined prin cipally to use by foreign countries in making pay ments to the United States. Under the European Re covery Program, which became effective last April, two important developments have occurred in respect to the use of gold for international payments, the ul timate implications of which cannot yet be foreseen. First of all, Marshall Plan dollars have enabled the participating European countries, Canada, and also some Latin American countries to have gold that otherwise would have found its way to the United States. By taking care of a large part of the require ments of ERP countries directly, or indirectly through off-shore purchases, the Marshall Plan has slackened the flow of gold to the United States. In addition, European countries participating in the European Recovery Program are likely to have smaller recourse to reciprocal gold payments than a year ago. Under the post-war bilateral agreements,, balances that accrued beyond a stipulated credit-ceil ing were to be paid off by gold transfers. In con trast, under the intra-European clearing scheme which began operations in October, 1948, the financial bar riers to foreign trade have been lowered, with the prospect that gold payments will become less fre quent. The European Recovery Plan has thus limited, for the time being, the intel-national role of gold as a balance-of-payments settler. Yet, if the Marshall Plan succeeds in protecting the gold reserves of the parti cipating countries or permits some accumulation of gold, conditions may be gradually be re-established under which gold, in conjunction with the additional source of funds that has been provided foreign coun tries through the creation of the International Mone tary Fund, may again perform its traditional role of international medium of exchange. In the United States, Representative Clair Engle, of California, has introduced a bill in Congress (H.R. 387) which would allow gold in any form to be bought, held, sold, or traded on the open market, and would allow export without the imposition of duties, excise taxes, licenses, permits, or “any restrictions whatsoever”. Gold imported into the United States would be given the same rights as domestically mined metal. ________ Lumber By E. C. Von Kauffmann President, Philippine Lumber Producers' Association LUMBER producers have been discussing the pre sent alarming situation both in the local market and in the United States. Lumber arrivals in the city average 15,000,000 board feet per month against 7,500,000 pre-war, and apparently construc tion cannot absorb this increased amount notwith standing all the building which is going on, a good share of lumber having been sold recently to the U. S. Army for export. The United States market is at a standstill, caused likely by an expected recession in business. Most importers of Philippine mahogany have been caught with stocks which accumulated in their yards since the Pacific Coast strike and stand to lose money on them because of the recent serious drop in prices. Dealers in the Philippines are trying hard to cut down their inventories as their stocks are not moving as they should and most of them are overstocked. Apparently competitors ’from South 157 158 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 America and Africa have also cut down their prices, which were already too close to Philippine mahogany prices. Lumbermen feel they need some help from the Philippine Government in the form of reduction of taxes, which is a big item in their pre sent costs, and an appeal is being made to that effect. Many mills have shut down, and unless the situation is improved in the very near future it is feared that many more mills will go out of production. Copra and Coconut Oil By Manuel Igual General Manager, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company, Inc. February 16, 1949, to March 15, 1949 COPRA and coconut oil markets improved mode rately during the second half of February ow ing to generally better feeling in world markets resulting from the discontinuance of IEFC allocations plus relatively small stocks of copra and coconut oil available in the United States. Beginning the first of March, however, the tremendous surpluses of cot-.tonseed oil, soya, and tallow again made themselves felt and the market dropped faster than it had ad vanced. By mid-March it was at a low point. As noted in our February report, copra produc tion was light and unsold stocks were negligible as of mid-February. Sellers therefore were not inclined to trade except as copra came to market and at advan cing prices. At that time buyers were indicating $185 c.i.f. and $180 f.o.b. without attracting sellers. The market gradually worked up to a point where busi ness was actually done at the very end of February at $195 c.i.f., possibly $200, but no trades at better than $185 f.o.b. were reported for Europe. During this time the CCC stepped in occasionally for round lots on an f.o.b. basis, presumably for Bizonia Ger many, and purchased perhaps 12,000 tons. The French were also buyers but their ideas were around $180 f.o.b. landed weights, not attractive in February. Trading with United States Pacific Coast mills conti nued through February on a guarded basis. No large buying or selling interest was noted. When the mar ket turned in March, buyers followed their usual tac tics of running away from business offered and copra traded sparingly on the way down to a low of $175 c.i.f. with limited sales also made at $175 f.o.b. At the end of the period, markets were very depressed and seemed aimed for even lower levels. It was ob served, however, that at current prices there was somewhat more buying interest, which indicated that the market might be nearing the bottom of the pre sent sag. DURING the first half of March cottonseed oil, soya oil, and tallow slipped off badly, and where as they were in demand at 13%, 12% and 8 cents re spectively at the end of February, by mid-March they were selling 11%, 10% and 7%, cents, approaching pre-war prices. It has become evident that unless export demand for these commodities accelerates, prices must remain low until they are in greater do mestic demand. It must again be emphasized that coconut oil is still far out of line even at present comparatively low levels and that its demand is restricted to minimum Provincial Dealers: VALERIANO ALONZO CEBU • WARNER, BARNES & CO., INC. ILOILO & BACOLOD • FELIX CABURIAN CAGAYAN, MIS. OR. • VISAYAS-MINDANAO ADVT. & PROM. LEYTE & BOHOL • HANSON, ORTH & STEVENSON DAVAO • April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 159 requirements by soapers plus a lessened edible usage. The Netherlands East Indies were offering copra all month and finally sold one lot at $187.50 c.i.f. This copra, however, is a dangerous buy because it is prob able that the President of the United States will soon restore the 2 cents excise tax-differential in favor of Philippine copra, which will make other copra very expensive in America. In European markets, busi ness has been done in sterling currency, with buyers immediately exchanging sterling for American dollars in the gray market of Hongkong at the rate of 3 to 1. A good deal of the selling during the period was done by speculators both in the Philippines and on the West Coast of the United States, which helped consi derably to depress the market as a whole. Because of shortage of supplies of coconut oil, there was some buying interest in the last half of February and sales were reported as high as 15^ cents f.o.b. Coast for scattered immediate tank cars and 161/2 cents c.i.f. N.Y. for bulk. A fair amount of bulk business was done between 15 and 16 cents c.i.f. N.Y., mostly afloat or for prompt shipment. After the first of the month, however, buyers disap peared and preferred to wait the market down, which they were doing successfully at the close of the period, the indicated selling prices at which time were about 15 cents c.i.f. N.Y., with buyers on the sidelines. There was some interest in oil for Germany, where there is no 3 cent excise tax, and a fair amount of this business was done at approximately 15 cents c.i.f. At the close pf the period not too much oil was available, but buying interest was particularly light and there was enough babassu oil available to take the edge off spot demand. LOCAL copra prices in Manila fluctuated up and down, rising from a low of 33 to as high as 41, only to drop back at the close to between 35 to 37 Supplies were very short in February, but were im proving in March, particularly because of shipments received from southern parts. Copra shipments for February totalled 38,655 tons, a substantial drop as against 63,148 tons in Feb ruary, 1948. The breakdown follows: U. S. Pacific Coast and Canada ................ 8,537 U. S. Atlantic Coast ..................................... 5,710 Total .......................................... 14,247 U. S. Total .... 14,247 France ............. 5,050 Denmark .......... 3,000 Italy ................ 3,994 Norway ............ 2,400 Bizone ............. 2,914 Trieste ............. 6,000 Holland*............ 1,050 Total ................................................... 24,408 GRAND TOTAL...................... 38,655 It is expected that March shipments will be con siderably heavier. Oil shipments were again negligi ble, totalling 2,598 long tons consigned as follows: U. S. Atlantic Coast ........................................ 2,107 Italy ................................................................... 491 2,598 Total 160 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 Copra cake and meal markets weakened. There was no real buying interest from Europe, with the best price indication nominally $42 per long ton f.o.b. at the close. Meal on the United States West Coast was down to approximately $62 per short ton c.i.f., which was somewhat better than Europe. As the spring advances, green feeding supplies should im prove, and prices consequently ease. AS the period closed, there seemed to be no strength in either copra or coconut oil, nor were there any indications of support to prices in the United States. On the contrary, in Europe, where the excise tax is no factor, Philippine copra was still the cheapest copra in the world, and far more rea sonably priced for European buyers than for Ameri cans. Should American dollar allocations permit, wholesale European copra buying during the next quarter might help support the market, but it is pre dicted that most of these dollars will be largely re stricted to the purchase of American domestic fats. Export demand for Europe in any form is, nonethe less, a very important factor at this time. The market has dropped to such an extent that a turn sooner of later is inevitable. But when this turn will come nobody can estimate with assurance, and we may w’ell see lower prices before then. It would be surprising, however, if the market should suffer any major collapse at this time, and the chances favor a series of dips and rises in ever-narrowing cycles. But, in view of their vulnerable position, coconut oil and copra are in a very delicate situation, and may easily be upset either way. Desiccated Coconut By Howard R. Hick President and General Manager, Peter Paul Philippine Corporation THIS report covers the period from February 15 to March 15. During this period copra prices firmed up and continued to rise until early March when buyer resistance outside the Philippines proved stronger than local conditions. A shortage of copra locally was responsible for an increase in prices, but world conditions are such today that buyers are not affected by local conditions as they were six months ago. This observation has been the healthiest sign in the copra and desiccated coconut industry since the war, pointing toward more equitable buyer-seller re lations. Raw coconut prices closely paralleled the copra prices throughout the period, and with the coming season of more plentiful harvests and easier procure ment, nut prices may go under equivalent copra values. Severally, factories have curtailed production during the first quarter of this year but will soon re sume normal plant capacity. The Red V Coconut Products, Ltd. has had some labor difficulties and al though shut down for a short period the differences have been compromised and it is now operating on schedule. The shipping statistics for the month of Feb ruary are as follows: ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS ★ ★ ★ Gen. & Sales Office 174 M. de Comillas Manila Tel. 3-26-20 Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal ' Tel. 6-65-68 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 161 Franklin Baker Co. of the Philippines . . 5,931,570 lbs. Blue Bar Coconut Co.................................. 941,860 ” Peter Paul Philippine Corp....................... 4,793,500 ” Red V Coconut Products, Ltd................... 2,808,900 ” Sun-Ripe Coconut Products, Inc................. 966,600 ” Standard Coconut Corp............................... 637,000 ” Isabelo Hilario ............................................ 0 ” Cooperative Coconut Products, Inc........... 0 ” Tabacalera ................................................... 424,900 ” Luzon Desiccated Coconut Corp................. 442,420 ” Grand Total .................... 16,946,750 lbs Sugar By S. Jamieson Alternate Secretary-Treasurer, Philippine Sugar Association HIS review covers the period from February 28 to March 26, 1949. New York Market. The period under re view opened with spot sugar at 5.75c*, refiners taking up practically all raw sugar on offer, including a sub stantial quantity of Philippines, at that price, and sellers indicating 5.800 for further business. There after, there was a pause in the market, which weak ened somewhat, even in face of a strike in the Puerto Rican sugar industry during the first half of March. There were sellers at 5.75c* but buyers would not pay more than 5.70c. At the middle of March there was heavy liquidation on the New York sugar exchange and this, aggravated by pressure to sell large quanti ties of unplaced sugar afloat, some of which was due for prompt arrival, caused a sharp decline in the mar ket. Large sales were made at 5.650, then at 5.600, and finally at 5.55c. However, this lasted only a few days, and once the distressed parcels were out of the way and the exchange liquidation had run its course, the market rallied and sales were made at 5.65<*. On March 25, some refiners announced an advance in the price of refined to 8.100, though indicating a willing ness to accept 30 days’ contracts at 7.850, and this gave further strength to the market, which closes with sales reported at 5.700 to refiners and at 5.750 to operators. Operators are showing interest in buy ing further at 5.750 for April/May/June shipment, while buyers’ ideas are now 5.800. Spot is 5.700 The following sales of Philippine sugar were re ported : March 4, 1949 February 28, 1949 — 7,000 tons March/April. 5.75tf ” ” ” — 2,000 ” A’pril/May . 5.75 ” ” ” —21,000 ’’ ” . 5.75 ' 2,000 ” March/April. 5.75 2,000 ” April/May .. 5.75 11, ” — 2,000 ’” March/April . 5.75 14, ” — 2,000 ’’ due end March 5.70 17, ” — 2,500 ’" ” May 5 ... 5.55 25, ” — 2,000 ’’ April/May .. 5.75 — 2,000 1” afloat..............5.70 — 2,600 ’’ April/May .. 5.75 — 5,000 ’’ May/June ... 5.80 52,100 tons Quotations on the New York sugar exchange for the period February 16 to March 22, 1949, under con tracts Nos. 4 and 5, were as follows: High Low Close Sales Contract No. 4 (World Market) March .................... 4.15 3.89 3.89 5,950 tons May ............ .......... 4.29 3.90 3.89 27,150 ” July ............. ......... 4.29 3.90 3.89 47,400 ” ALLIS-CHALMERS WORLD'S LARGEST LINE OF MAJOR INDUSTRIAL EQUIPMENT CONSULT US ON MACHINERY: With PUMPS FOR MAXIMUM OUTPUT —LOW MAINTENANCE COST! For over 60 years, Allis-Chalmers cen trifugal pumps have been known for their high efficiencies and dependa bility. The reasons are — finest ma terials, advanced engineering, pre cision workmanship. the Allis-Chalmers line, we can supply All in Electrical Equipment pumps, motors and special equipment for many different industries, quiries receive prompt attention. 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 B Crushing, Cement and Mining Machinery 162 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 September ............ 4.17 3.85 3.85 16,500 ” March, 1950 ......... 3.49 3.24 3.23 8,800 ” Contract No. 5 March ..................... 5.43 May ....................... 5.36 July ....................... 5.35 September ............. 5.34 November ........................ December ............. 5.28 March, 1950 .......... 4.94 Total ......................... 105,800 tons 5.21 5.20 32,300 tons 80,750 ” 5.18 5.18 5.17 5.17 108,600 ” 5.17 5.17 53,300 ” 5.18 ... ” 5.22 5.14 200 ” 4.78 4.78 1,600 ” 276,750 tons Total Local Market. (a) Export Sugar. The price advanced to P13.25 in the early part of March, and then fell to P13 following the trend of the New York market. With the recovery of the latter market, however, there has been an active demand for export sugar here at steadily advancing prices. At the close, there are buyers at P13.35 per picul, ex mill ware house. (b) Domestic Sugar. PRATRA is reported as a buyer of domestic centrifugal sugar at P16 per picul, ex mill warehouse, and the provincial market seems to have stabilized itself at that price. Latest Manila quotations are P16.50 per picul for centrifugal sugar and from P17 to P18.50 per picul for the various grades of washed sugar. General. The effective period for the freight rate of $15.50 on centrifugal sugar from the Philip pines to United States Atlantic and Gulf ports has been extended from April 30 to June 30, 1949. Our 1948-49 milling operations are proceeding normally. Indications are that the crop in Luzon will be below estimate. In Negros, a few districts are running over estimate, but drought is affecting the cane in others. Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period February 16 to March 15, 1949. During this time abaca prices declined steadily, both in consuming markets and in the Philippines. An unusual feature has been the severity of the decline in Davao values in the Philippines which amounted to some P6.50 per picul in the more common grades, as compared with a de cline of only P0.50 per picul in the corresponding non Davao grades. This has resulted in certain Davao grades being offered currently in New York,at i/2ft to 1<* under the price of these non-Davao grades. The present state of affairs must right itself soon by a decline in non-Davao values or a firming up in Davao. Davao hemp almost always demands a pre mium over non-Davao. The cause of this unusual feature is believed to be the existence of a substan tially oversold position in non-Davao hemp and the scarcity of the better non-Davao grades other than G and JI. The United States market has ruled dull to very weak throughout the period, with Davao exporters pressing to get ahead with sales at a time when con consider offset printing FOR MORE SPEED MORE VOLUME MORE VERSATILITY a o V April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL________ 163 sumers were displaying no interest. Non-Davao of ferings were small and prices nominal. Relatively little non-Davao business was done during the period. SCAP bought both Davao and non-Davao grades quite heavily on the decline. Purchases made by SCAP of non-Davao G and JI were made at prices cheaper than those which exporters had to pay in the provinces to obtain their fiber. This would be under standable if SCAP bought for forward shipment, but their purchases are for prompt shipment. At no time did SCAP purchases of non-Davao G and JI re flect the provincial values of these grades. Demand from Europe was scattered, but was probably up to the level of the past two months. The following nominal provincial values on March 15 illustrate the trend of prices over the period. Per Picul Basis Loose Davao I . . . P62.50 — Down P6.50 per picul from February 15 Davao J1 . 61.00 — ” 6.50 ” Davao G . . 55.00 — ” 5.00 " Non-Davao I 64.50 — ” 0.50 ” Non-Davao G 47.00 — ” 0.50 ” Non-Davao K 28.00 — ” 1.00 ” New York quotations on March 15: Per lb. C.I.F. Neiv York Davao I . . . . 281/->(1— Down l1,if1 per lb. from February 15 Davao JI . . . 28 Vat1 — ” Hit1............................. Davao G . . . . 25% ” I’hC ” ” ” ” ” Non-Davao I . 29<* — ” lit1 ” ” ” ” ” Non-Davao G. 22 ” ” ” ” ” Non-Davao K. 15f — ” %<* ” ” ” ” ” Production for February, 1949, was 45,841 bales — a decrease of 956 bales from January, 1949. NonDavao balings totaled 30,578 bales — up 3,009 bales from January. Davao balings were 15,263 bales — down 3,965 bales from January. Tobacco By the Conde de Churruca President, Manila Tobacco Association THE Tobacco News for January brings the fol lowing information from the United States. “Cigarette exports for the first 9 months of 1948 totalled 18,176,000,000 pieces valued at $49,252,000, compared with 16,688,000,000 pieces with a valuation of $43,628,000 for the January-September, 1947, period. The increase in shipments may be attributed to growing demand in many foreign countries for American-type blended cigarettes. “The chief market outlets for United States cigarettes during the first 9 months of 1948 were: the Republic of the Philippines which purchased 8,225,000,000 pieces; Belgium and Luxemburg, 1,405,000,000; Curacao, 884,000,000; Tangier, 715,000,000; and Switzerland, 615,000,000." We quote these figures because they emphasize the importance of this Republic, a natural tobacco producing country, as a consumer of imported ciga rettes. We have reason to believe that most of the ciga rettes imported are the higher priced brands which are selling at over P3.50 per thousand, and consequent ly do not seriously compete at the moment with the local cigarettes, most of which sell at lower prices. The average sale of local cigarettes is about 1,440,000,000, a year, as compared to the 10,000,When home is uncomfortably warm, a PHILCO air-conditioner is really welcome for cool, comfor table ventilation. PHILCO gives you cleaner, fresher air with less noise! You find it difficult to work when hot and list less ... a PHILCO air-conditioner brings you a constant, gentle flow of refreshing air. In of fices, windows can be closed eliminating dust. Work is a pleasure! PHILCO Single-Room AIR CONDITIONERS PHII.CO MODEL 91-C. A new single-room conditioner in a beautiful walnut console. Ample power to serve lurge living rooms and offices up to 500 square feet maximum. The Store of Quality 454 DasmariAas 16th & Atlanta Sts., Port Area Tels. 2-79-78 & 2-79-79 Tel. 2-94-89 164 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 000,000 which would be the approximate imports for 12 months. It is out of the question to expect manufacturers to supply any important part of this total volume, not even (at the moment) the 30% cut effected by the Import Control Board. It will take a long time to supply them with enough native yellow and Virginiatype tobacco to absorb a part of the market, and this being the case, they will continue to be obliged to im port American leaf tobacco or to bring about a change in the smokers, preference for yellow as against the native type. If we, manufacturers, could double our output, which would mean a cut of less than 20 c/o in the pre sent imports, nobody would be hurt; eventual changes could be adjusted to slowly and progressively. But we at least insist on maintaining our output at no lower a volume than it is, and this will not be pos sible if cheap cigarettes keep pouring into the country, elbowing us out of the scant 20% of the total sales now covered by us. In all fairness, this is not much to ask, and we believe it would be to the interest of the importers to respect our rights in our market. Already the Government is taking certain meas ures, even to its own inconvenience as it will deprive it of much-needed revenue. Even the workers are aware that our factories cannot keep on competing unless rtiore processes are mechanized and the cost of pro duction is lowered. As for us, manufacturers and businessmen, we have in mind, in the first place, the welfare of our workers and farmers and also the necessity of coope rating with the Government, but this does not mean that we want to put the importers out of business. We are not like the dog in the manger, and if we cannot supply the smokers’ demand for the yellow to bacco of the well known brands, the importers are wel come to the market. Luckily, there is no serious com petition between these brands and our locally manu factured cigarettes. But the cheaper brands, which in spite of their selling in the United States at over $14 a case (factory price), are shipped here at $12.50, c.i.f. Manila, can really harm us, and it is our duty to protect the local business. We appreciate sincerely the efforts which the Sec retaries of Commerce and of Finance are making in this connection, and also the concern shown by the Collector of Internal Revenue. We understand their their position and their desire to help local industry without discriminating against imported products. We are hoping that a solution will be arrived at which will not hurt anybody’s established business. The day may come when the local manufacturers and farmers will have to take over practically the whole market. This is happening in one country after another, but the change could not be sudden; it would take plenty of time. Existing business does not have to worry about the near future, and it will have a good chance to adjust itself progressively to any changes. Automobiles and Trucks By Harold Helling General Motors Corporation THE United States automobile manufacturers as sembled, during the week of January 17-22, 109,929 units to counter the pessimists who see omens of an automobile-industry depression. An es timated 82,137 cars and 27,788 trucks rolled from the ENGINEERS CONTRACTORS MANUFACTURERS SPECIALIZING IN THE FABRICA TION AND ERECTION OF BRIDGES, TANKS AND BUILDINGS ----------------------- Operating:-----------------------MACHINE SHOPS FOR MANUFACTURING AND REPAIRS FOUNDRY FOR CAST IRON, BRASS AND BRONZE STRUCTURAL STEEL SHOPS STEEL PLATE SHOPS MARINE REPAIR SHOPS • WOOD PRESERVING Pi. A NT FOR 48 YEARS THE GREATEST NAME IN ENGINEERING & CONSTRUCTION Atlantic, Gulf & Pacific Company of Manila ENGINEERING DIVISION Barrio Punta, Santa Ana, Manila Tels. 6-75-31 — 6-75-32 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 165 assembly lines. The week’s output topped that of the previous week by more than 4,000 units, despite the fact that cutbacks went into effect at some of the plants. As of January 22, 1949, United States manufac turers had produced 232,342 passenger cars and 80,119 trucks, or a total of 312,461 units. The goal for the month of January was set at 446,500 units; up to January 29 the industry has produced a total of 423,898 units. Prices of motor cars remain high despite the re cent reductions of from $10 to $40 on certain units of one of the major producers of motor cars. Price reduction on the various makes will be based on labor demands in the future. The entire industry is looking forward to a big ger year, barring strikes, and shutdowns due to short age of materials, than it had in 1948, in which year it produced approximately 5,500,000 cars and trucks. With this greater production, the long waiting-lists and the black-market business should disappear; this has already been realized with respect to some makes and models which are becoming hard to sell in the United States and overseas markets. Automobile shows seem to be the big thing in the United States, and by late fall most manufacturers will be ready to display their new post-war models. Several of the leading manufacturers plan individual shows to present their models to the public. This brings up the idea of a local automobile show in the Philippines. It would be a good thing to have a show here, with all the various automobile distributors participating to demonstrate to Philip pine buyers just what has been accomplished by the automobile manufacturers since the war. Textiles By James Traynor THE slump in the local textile market which first showed itself toward the end of January, con tinued throughout the month of March. Import ers report that practically all sales are being made at prices below replacement, and that their inventories are not being reduced due to the continued large arri vals. During March the arrivals were larger than ex pected and amounted to about half the average of January and February. The situation is such that there was practically no new buying from abroad during March. Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Die. THERE has been no change in the Philippine market on imported foodstuffs during the month of March, and remarks in the last two issues of the Journal apply in full today. The market is faced with continued overstocks on major food products staples and importers are forced to continue sales, in most cases, at a loss as compared with both actual costs and replacement costs, if they are to show any volume sales. There would seem to be no grounds to anticipate any change in this condition for some time to come. As a mat ter of fact, even worse conditions should be antici pated as goods entering into consumption continue to decrease in volume and cannot be expected to increase before June or July. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda IN the case of Li Kim Tho vs. Sanchez & Go Siu Kao the Supreme Court said: “As the lease to Li Kim Tho is from month to month and the Lessee has not given up the lease, tacit renewal must be presumed until the Lessor gives proper notice to terminate it.” This was a case in which a sublessee tried to avoid ejection by attempting to go around his sub modem Science of Blending. ONE GREAT BEER ___Blue Ribbon— Sole Distributors: F. E. ZUELLIG, INC. 55 ROSARIO ST., MANILA TEL. 2-95-43 Hear MUSICANA - DZRH—SUNDAY, 9 P.M. 166 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 lessor and make a new deal with the owner of the property. The original lessee was sustained in his right to possession. In the case of Batangas Transportation Co. (L-1706, March 10, 1949) the Supreme Court af firmed the decision of the Court of Industrial Rela tions in finding dismissal to be too severe a penalty for misconduct of an employee and that suspension during the period from his dismissal to the date of the decision ordering his reinstatement was sufficient punishment. The Supreme Court said: “Discipline is, indeed, essential to the smooth running of a public service such as that of the petitioners. But the stern rules of discipline must be applied with fairness and justice. This means that a laborer should not be dismissed for unimportant infractions and that before he is deprived of his job he should be given a fair hearing. “Under the circumstances of this case, we find no ground for disturbing the order of the Court of Industrial Relations which acted within the ample bounds given it by law. There is no showing that said Court has committed an error of law in the selection of a specific measure for the solution of the parti cular conflict submitted to it. It merely modified the penalty imposed in its original decision in view of a circumstance it had previously failed to consider.” The dissenting opinion of Mr. Justice Perfecto sets forth his view on a norm of conduct for both em ployer and employee. Mr. Justice Perfecto said: “We yield to no one in upholding just rights and pri vileges of employees and laborers. At the same time, we are not to relieve them from their responsibilities to themselves and to society. Employees and laborers have duties to perform, and they should perform them conscientiously if they are to preserve their own rights and privileges and not to disrupt the orderly processes that are essential to keep society a going con cern. Violation of those duties would impair the welfare of the community. “Success of industries and public services is the foundation upon which just wages may be paid. There cannot be success without efficiency. There cannot be efficiency without disci pline. Consequently, when employees and laborers violate the rules of discipline, they jeopardize not only the interest of the employer, but also their own. In violating the rules of disci pline, they aim at killing the hen that lays the golden eggs. Laborers who trample down the rules set for an efficient ser vice are, in effect, parties to a conspiracy, not only against capital, but also against labor. The high interests of society and of the individuals demand that we should insist in requir ing everybody to do his duty. That demand is addressed not only to employers but also to employees.” The Supreme Court rendered another opinion on payments of pre-war debts in Japanese currency. In the case of Araneta vs. Philippine Trust Company, March 17, 1949, the Supreme Court said: “In the case of A. Laurel v. E. B. Misa, this Court held: ‘Considering that, although the military occupant is enjoined to res pect or continue in force, unless absolutely prevented by the circumstances, thes? laws that enforce public order and regulate the social and commer cial life of the country, he has, nevertheless, all the powers of a de facto government and may, at his pleasure, either change the existing laws or make new ones when the exigencies of the military service demand such action, thnt is, when it is necessary for the occupier to do so for the control of the country and the protection of his army, subject to the restrictions or limitations imposed by the Hague Regulations, the usages established by civilized nations, the laws of humanity and the requirements of public conscience (Peralt v. Director of Prisons, supra: 1940 U. S. Rules of Land Warfare, 76, 771 : and that, consequently, all acts of the PRODUCTIVITY OF LAND BY IRRIGATION USING BYRON JACKSON DUTCH PUMPS CAPACITIES: Up to 7500 GP. . DRIVE: Motor, Gear or Belt SIMPLE & RUGGED CONSTRUCTION Your Inquiries Are Invited INS, KROLL & CO., INC. MACHINERY DEPT. Port Area, Tel. 2-94-67 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 167 military occupant dictated within these limitations are obligatory upon the inhabitants of the territory, who arc bound to obey them, and the lawa of the legitimate government which have not been adopted, as well nnd those which, though continued in force, are in conflict with such laws nnd orders of the occupier, shall be considered r.s suspended or not in force and binding upon said inhabitants;’ (A. laurel v. E. H. Misa, ct r,l., G. R. No. L-409, pp. 3-4, minute resolution.) "And in the case of Haw Pia v. China Banking Corpora tion we held that, under the rules of Public International Law, the right of the military occupant, in the exercise of his govern mental power, to order the liquidation of enemy banks and the reopening of others in the occupied enemy territory, as well as to issue military currency as legal tender, has never been seriously questioned. "In view of the foregoing, it is evident that the payment made by the respondent-appellee and accepted by the petitioner-appelllant during the Japanese occupation in compliance with the said orders of the Japanese military occupant, can not be considered as made under a collective and general duress, be cause an act done pursuant to the laws or orders of competent authorities can never be regarded as executed involuntarily or under duress or illegitimate constraint or compulsion that in validates the act.” OFFICE OF THE PRESIDENT (Continued from page 152) the second, but hopes to break even this year. He declares it would be to the interest of the bondholders to allow the Com pany to rehabilitate itself, but that if they are willing to make a compromise settlement, he believes President Quirino would be receptive. Before the war, he states, they offered to sell their bonds at 80%, but they are demanding 100% today. Announced that the Central Bank will soon issue a new set of paper currency notes in denominations of from Pl to P500. They will bear the inscription, “This note is a liability of the Central Bank of the Republic of the Philippines”, and another one, “This note is a legal tender in the Philippines, for all debts, both public and private”. The Cabinet names the delegation which will represent the Philippines at the Bangkok ECAFE conference, opening March 28, it being composed of I. Coscolluela, PRATRA manager, S.R. Mendinueto, Director of Commerce, Blas Gomez (textile engineer), and J. E. Velmonte (Central Bank). Under-Secretary of Foreign Affairs F. Neri informs the Cabinet of the report that some 200 Chinese communist troops have occupied Itu Aba, 210 miles from Palawan, but outside Philippine territorial treaty limits. A 3-man U.S. Army grave registration team made the discovery recently. President Qui rino states that when he was Secretary of the Interior before the war he made representations to the United States recommend ing that both the Karafuto and Turtle Island groups be claimed for strategic and defense reasons; the latter group was ceded to the Philippines last year. New Import Control Orders and Circulars Official Sources February 7. l'JIv CIRCULAR S (Revised i 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 without their being charged to quotas. The manner of clearing them is as set forth in Circular 8. There >:> no need of applying fcr a license beforehand. Licenses For Articles For Personal Use Articles under control for personal use nnd not for re-sale shall be allowed to enter the Philippines by mail, sir or ship. The manner of clearing them upon arrival in the Philippines is ns set forth in Circular No. 8. When the value of such articles does not exceed P200.00, no ap plication is necessary at the time the Older is placed. For .orders above P200.00, an application to import the controlled articles must be filed with the Import Control Office so that the license number can be sent with the order and placed on the Consular Invoice as required by Executive Order No. 193. When the controlled articles arc to be brought in by passengers, the applications must be filed with the Philippine Consulates abroad. FURNISHED APARTMENT Modern, two bedrooms, bathroom, living, dining room, garage and servants’ quarters completely furnished including refrigerator, gas range, washing machine, silver and chinawares in Singalong. Con tract for one year, beginning May 16th, to reliable American or European couple. Call 2-77-81 Office Manager. Rayon Price Limits The price limits set for Rayon fabrics in Appendix "H" of Executive Order No. 193 apply to cloths of single width not to exceed 40". The price limits for cloths with widths over 40" arc two times those of single width. Chandeliers (Item 13.2) For purposes of the Import Control Law, CHANDELIERS nrc defined as lighting fixtures with more than six (6) outlets for lights. Chandeliers with six (6) or less numbers of outlets are not subject to control. Chandeliers made of cut glass arc subject to control irrespective of the number of outlets. (Sgd.) ERNESTO B. LEDESMA Executive Officer CIRCULAR LETTER No. 350 TO ALL COLLECTORS OF CUSTOMS. CHIEFS OF DIVISIONS, MANILA CUSTOMHOUSE, CUSTOMS BROKERS, IMPORTERS AND OTHERS CONCERNED: There is quoted hereunder a 2nd indorsement from the Executive OfONLY.;: Pan American offers Sleeperette service i to the U. S Aboard Pacific Clippers...your comfortable chair lounge...adjusts to restful bed-length ...with curtains for privacy. No extra cost! 3 flights weekly to the U.S. via GUAM HONOLULU SAN FRANCISCO or LOS ANGELES Go Flying Clipper! vxu r ly mg kjiippci . \\ i // Over the Smooth Southern route to the U. S. A. • You can fly straight through or stop over at beautiful Hawaii Manila Hotel • Phones 2-97-96,2-79-01 Downtown Office (270 Plaza Cervantes) Phones 2-82-61,2-68-69 Airport Office • Phones 5-10-75, 5-12-65 Pan American World Airways \__ J Clipprr, TraJt Mark, Pan American Airwayl, Int, 168 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 SUPERIOR GAS & EQUIPMENT CO. MANUFACTURERS AND MANUFACTURERS REPRESENTATIVES ■■ CARBONE DIOXIDE You'll sense 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 1 SMITH,BELLaCO.,LTD. TRACE ano COMMCPCE BIOG^ MANILA ,n for'1 bot lied' '.I rinks • CARBON DIOXIDE solid form for Frozen food pr< ser\ation _______ • ^■^M CAItBON DIOXIDE for Fire Extinguish • HYDROGEN GAS For Balloons & Underwater cutting of Steel • ■ Distributors of NATION A J, WELDING EQUIPMENT & TOUDY" Welding Rods For 11 niplements — Machinery pa AUTOM. iAS RANGES TEL. 6-88-02 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 169 SWAN, CULBERTSON & FRITZ, INC. 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 „ J 2-74-55 143 JUAN LUNA 1 1 2-80-53 SILVER AND JAVA PACIFIC LINES SILVER LINE. LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York JAVA 25 Broadway New York MANILA VANCOUVER ILOILO To and From SEATTLE CEBU PORTLAND LOS ANGELES and SAN FRANCISCO To and From BOMBAY and CALCUTTA ★ SILVER LINE, LTD. KERR STEAMSHIP COMPANY. INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. ATLANTIC COAST PORTS TO MANILA U. S. 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 WELDED STEEL All Ball Bearing FILING CABINETS designed for those who recog nize the overall worth of a qua lity product. to) la) S) O o ■ © •v (g) £3 IS 's INQUIRIES AT F. H. STEVENS & CO., INC 4th FLOOR, EL HOGAR FILIPINO BLDG. Manila—Tel. 2-86-13 170 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 MERCURY Mercury 6 Passenger Coupe Mercury Sport Sedan NASH 600 SEDAN 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 OLDSMOBILE Oldsmobile Series "76’’ Standard OLDSMOBILE (EXCEPT SERIES “98”) PACKARD Standard Six, Model 2282 Standard Eight, Model 2292-2295 PLYMOUTH P-17 Plymouth de Luxe (All Models) P-18 Plymouth Special de Luxe (all models) except Convertible Coupe and Station Wagons PONTIAC De Luxe Models 6 6 Passenger — 5 Passenger — 6 Passenger — 6 Passenger — cylinder: 4 Door Sedan Sedan Coupe 2 Door Sednn 4 Door Sedan Sedun Coupe De Luxe Models 8 cylinder: 5 Passenger — 4 Door Sedun 5 Passenger — Sedan Coupe 6 Passenger — 2 Door Sedan 6 Passenger — 4 Door Sedan 6 Passenger Sedan Coupe Standard Models 6 cylinder: 3 Passenger — Business Coupe 6 Passenger — 4 Door Sedan 5 Passenger — Sedan Coupe 6 Passenger — 2 Door Sedan G Passenger — 4 Door Sedan G Passenger — Sedan Coupe Standard Models 8 3 Passenger -■ 5 Passenger — 6 Passenger — 6 Passenger cylinder: Business Coupe Door Sedan Sedan Coupe 2 Door Sedan 4 Door Sedan Sedan Coupe Hydramatic Drive Without Left Hand Drive Only SUNBEAM TALBOT Sunbeam Talbot (SGD.) ERNESTO B. LEDESMA Executive Officer CIRCULAR 9 March 10, 194!) THE JOURNAL GOES STRAIGHT TO THE DESK OF LEADING BUSINESS EXECUTIVES Tris Circular amends Circular 6 (Revised) dated February 7, 1919 with respect to the Price Limits on Rayon, as follows: 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”. Thu price limits for cloths with widths over 40” will be in proportion to the width, taking 40” as the basis. This ruling will become effective on April 15, 1949 and will apply to rayon cloths leaving ports of embarkation nfter said date. (SGD.) ERNESTO B. LEDESMA Executive Officer CIRCULAR 10 March 21, 1919 Transfer of Quotas Section 1 of Executive Order No. 193, titled "Prescribing rules and regulations to and regulations of imports of non-essential dated December 28, 1948, encarry into effect the control and luxury articles into the MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL _______ 171 134 San Marcelino, Manila Sec. 2. Effective May 1. 1949, Appendix "B" of Executive Order No. 193. dated December 28. 1918. is hereby umend-ed so as to include or sub stitute. ns the case may lie. in the schedule of percentage reduct'ons pres cribed therein, the following: Onions, 90'/ : Sugar 90'/, ; Perfumed Talc face powdur, 50'/,; Dentifrice. 50'.; : Matches costing more than P2.00 per gross c.i.f. Philippines, 30'/; Rubber Shoes costing more than Pt.50 per pair, c.i.f. Philippines. 50'7. Sec. 3. The Import Control Board is hereby authorized to allow an importer to choose as basis for the determination of his quota, either his importation during the Base Period as specified in Appendix "B" of Execu tive Order No. 193. dated December 28. 1948, or two-thirds of his importa tion from July 1. 1947, to December 31. 194S. Sec. 4. The Import Control Board is hereby authorized to deciare goods in dock, on lighter or on board an exporting vessel, on the date of effectivity of the Import Control Law as having left port on that date, and to allow the entry of goods that were already paid for, or in transit to port, prior to the effectivity of the Import Control Law. charging the same against the quotas of the importers and disposing of any excess over such quotas as the board may deem just and reasonable. Sec. 5. The Import Control Board is hereby authorized to defin: what articles come under the items listed in Appendix "A" and under the price limits set in Appendix "B”, of Executive Order No. 193. dated December 28. 1948 Sec. 6. The Import Control Beard is hereby authorized to issue such supplementary rules anil regulations as it may deem necessary to carry out the purposes of Executive Order No. 193. dated December 28. 1948, and its amendments. FOR RE-WINDING OF GENERATORS—MOTORS CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85 K E R M A T H “Sixteen 5” FIVE HORSE POWER A COMPACT. DEPENDABLE. LIGHT WEIGHT WATER COOLED, ALL-MARINE 4 CYCLE INBOARD ENGINE Marine Tailored FOR RUNABOUTS — FISHING BOATS — UTILITY BOATS - DINGHIES — TENDERS - - AUXILIARIES Exclusive Distributors MANILA MACHINERY & SUPPLY CO., INC. 233 David (YWCA Bldg.) and G75 Dasmarinas P. 0. Box 607 Mnnila Tel. 2-72-98 172 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 ★ The initiation fee for an active membership in the American Chamber of Commerce of the Philippines has recently been reduced to P250. ¥ Weekly Changes in Retail Prices Bureau of Commerce, Market Division March 21-26, 1949 THE Bureau of Commerce Price Index, which had moved upward slightly for the past two weeks, resumed its downward swing to 232.57-mark level, off .53 point. Mo derate declines in the prices of locally produced commoditie accounted for the slight drop of the price index. At the current level, the value of the Victory Peso, measured in terms of its ability to purchase 150 prime necessities included in the index, is equivalent to 43 centavos of the pre-war peso as compared with the previous week’s purchasing capa city of 42.90 centavos. The constant fluctuation in the price structure of perish able goods, no doubt, is causing the ordinary housewife no little worry in making day-to-day budgetary adjustments. This week, however, it has been favorable owing to abundant supply. Fish items sank to lower levels: Bangus declined to P2.32, off 11 centavos per kilo; apahap and tanigue at P2.50, off 10 centavos each per kilo; and talakitok at Pl.40, off 10 centavos. Eggs followed suit with white leghorn eggs spearheading the drop, off 20 centavos to P2.30 per dozen. Native hen’s eggs, were lowei- by 10 centavos at Pl.40 per dozen; and fresh and salted duck’s eggs, off 5 and 15 centavos, respectively at Pl.60 per dozen. Red corn lost 5 centavos to P0.70 per ganta. Green mon go also suffered a cut of 5 centavos to Pl.45 per ganta on plentiful supply. As the demand for bananas and papayas became weak, prices dropped slightly by 2 centavos per 100. Green papaya also lost 3 centavos to P0.15 each; medium size. 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 April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 173 Rice, however, was stationary and prices unchanged at Pl.40 per ganta of elon-elon, 1st class, and Pl.35, elon-elon, 2nd class. Macan, 1st class, was steady at Pl.30 and 2nd class at Pl.25 per ganta. Meanwhile, Washington announced that the Department of Agriculture allocated for export to the Philippines 551,200 bags of rice of 100 lbs. each. The an nouncement further stated that this quantity was part 6f of the rice the Philippines will get from the United States under its regular allocation from the International Emergency Food Council. The Philippines is scheduled to receive 45,000 tons of rice from the United States this year, including the loan from China. Some imported articles have been on the downgrade, though gradually. Some drugs and medicines have almost reached reasonable levels. Stationery and school supplies, and elec trical supplies, likewise, have gone down. On textiles, with the exception of plain and printed flan nel, which sagged down to P0.65 and P0.75 per yard, off 8 and 10 centavos, respectively, due to light demand owing to the hot season, the market was generally stationary and prices unchanged. The market for construction materials was also steady and prices were generally unchanged with the exception of adobe stones which moved lower to P21.25 and P16.25; off 50 centavos per 100 pieces for Baesa and Mandaluyong, respec tively. 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. O. Box 2485 Tel. 4-76-43 HUME PIPE & ASBESTOS CO. MANUFACTURERS of B/S Concrete Pipes 4” to 16” x 1 meter for Sewers and Storm Drain. T/G Reinforced Concrete Culvert Pipes 18” to 60” by 5’ or 10’ made to ASTM Designation C 76-41. Reinforced Concrete Sewer Pipes 18” to 60” by 5’, or 10’ plain ends for use with external bands (collars) at the joints. All pipes are manufactured by the Hume high speed jolt-spun process. We are the only manufacturers in the Philip pines using this method. Distributors : Theo. H. Davies & Co.-Far East, Ltd. 6th Floor, Ayala Building, Manila CONNELL BROS. COMPANY Manila Cebu • Iloilo • Davao Red ond White Lead5 Colors in Oil Wonsover_ _ _ _ _ Prepared House Paints Quick-Drying Enamels Varnishes Marine Paints 174 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES. INC. ARTHUR li. HENDERSON President Seventh Floor, Wilson Bldg., Manila Telephone: No. 4-79-86 Cable: “Underiters” Managers in the Philippines for: — AMERICAN INTERNATIONAL ASSURANCE CO., LTD. COMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN’S INSURANCE COMPANY THE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY THE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS’ INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY — AUTOMOBILE — MARINE REINSURANCE DE LUXE ANEROID BAROMETER Solid Walnut Frame. Dial and Scale of rich low Brass. 18” x 6 1/2” x 1 3/4” From P35.00 to P55.00 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY' IN MANILA BY MONTH, 1946 TO 1949 (1941 = 100) Bureau of the Census and Statistics Manila 1946 | Items | Food *59.16) House 1 Rent (8.43) | Cloth ing (0.62) Fuel, Light and Water (13.94) 1 Miscel laneous 1 (17.86) Purchas ing Power of a Peso January . 603.4 759.2 236.4 984.0 363.8 434.8 .1657 February 547.2 656.3 236.4 940.3 369.5 460.5 .1827 March . . 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April . . 556.2 684.1 236.4 910.3 345.5 435.9 .1798 May . . 545.1 675.6 236.4 762.5 342.3 409.6 .1835 June . . 538.7 666.4 236.4 737.9 343.3 404.2 .1856 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) • Average number or persons in a tamiiy = 4.y memtiers. 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 . 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 387.4 419.8 452.9 210.2 292.0 269.1 .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 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 February 343.8 355.5 453.9 203.0 277.5 258.9 .2909 March . . 346.3 358.2 453.9 202.0 276.3 258.5 .2896 AGENCIES CHARTERS SALES TELEPHONE 2-97-23 American Steamship Agencies, Inc. MANILA, SHANGHAI, SINGAPORE, GUAM tCTICA ECIE On the Escolta, Manila CABLE ADDRESS: “AMERSHIP” 214 MYERS BLDG. PORT AREA MANILA April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 175 Republic of the Philippines Office of the President BUREAU OF THE CENSUS AND STATISTICS MANILA TREND OF REAL WAGES OF WAGE EARNERS IN INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS IN MANILA, BY OCCUPATIONS: 1941, 1945,_1946, 1947, 1948_________________________________________ ________ OCCUPATION AVERAGE DAILY WAGES (PESOS) INDEX (1941 = 100) DAILY REAL WAGES 2 (PESOS) 1941 | 1945 | 1946 1947 1948 > 1945 | 1946 | 1947 | 19481 1945 | 1946 | 1947 1 19481 Blacksmiths . . . . 2.55 4.25 5.57 6.55 6.57 166.6 218.4 256.9 257.6 0.62 1.07 1.69 1.80 Boilermen . . . . 2.82 6.40 5.20 6.12 6.93 226.9 184.3 233.6 245.7 0.94 1.00 1.58 1.90 Carpenters . . . 2.75 6.02 6.66 7.20 7.21 218.9 242.1 261.8 262.2 0.97 1.28 1.86 1.98 Chauffeurs . . . 1.64 4.05 5.78 6.55 6.22 264.9 352.4 399.4 379.5 0.59 1.11 1.69 1.71 Cigar-markers . . . 0.96 2.83 4.87 5.37 5.21 294.7 507.2 559.3 542.7 0.41 0.93 1.39 1.58 Compositors . . . 1.84 6.14 7.29 7.86 7.54 333.6 396.1 427.2 409.8 0.90 1.40 2.03 2.07 Draftsmen . . . . 3.28 7.54 7.48 8.73 10.00 232.9 228.0 266.2 304.9 1.10 1.44 2.25 2.75 Electricians . . . . 2.67 5.20 7.82 7.88 7.84 194.7 292.8 295.1 293.6 0.76 1.50 2.03 2.15 Foremen .... . 3.35 7.38 7.96 8.63 8.63 220.2 237.6 257.6 257.6 1.08 1.53 2.23 2.37 Lathemen . . . . . 2.60 4.88 7.31 8.23 8.14 187.7 281.1 316.5 313.1 0.71 1.40 2.13 2.23 Linotypists . . . . 2.64 10.22 10.17 10.08 10.07 ■ 387.1 385.2 381.8 381.4 1.50 1.95 2.22 2|76 Machinists . . . . 2.23 5.75 6.48 8.59 8.79 257.8 290.5 385.2 394.2 0.84 1.24 2.60 2.41 Masons................ 1.94 5.90 6.58 6.89 6.68 304.1 339.1 355.2 344.3 0.86 1.26 1.78 1.83 Mechanics (auto) . . 3.00 7.46 6.90 8.08 8.02 248.6 230.0 269.3 267.3 1.08 1.32 2.09 2.20 Painters .... . 1.83 7.77 6.28 7.73 7.11 424.5 343.1 422.4 388.5 1.14 1.21 2.00 1.95 Plumbers .... . 2.00 4.80 7.67 7.77 7.73 240.0 383.5 388.5 386.5 0.70 0,62 1 47 2.01 2.12 Tinsmiths . . . . . 1.72 4.23 5.04 8.28 8.20 245.9 293.0 481.4 476.7 0.97 2.14 2.25 AVERAGE Skilled laborers . 2.34 5.93 6.76 7.68 7.70 261.7 306.1 328.2 329.1 1 0.87 1.30 1.99 2.12 Common laborers 1.24 3.27 4.53 4.66 4.69 •263.7 365.3 375.8 378.2 | 0.66 0.87 1.20 1.28 limits regular v 1946. ' jbtained by <liv ling the 1945, 1946, 1947 nnd 1948 wages, by the cost of living index for id 1943 (364.1) respectively. lours to eight a day. of Living in Manila” by Department of Labor nnd the Bureau of the Census nnd Sta1 Preliminary, subject to change. - Wage in terms of goods and services it can buy. Thi the year 1945 (683.3), 1946 (520.9), 1947 (387.' Commonwealth Act No. 444 ’ 3 Revised in accordance with the new tistics, conducted in December, LONGEST MILEAGE! QUICKEST STOPS! GENERAL FOR BETTER SERVICE — Call 2-77-03 ALLIED BROKERAGE CORPORATION Manila Port Terminal Building Port Area Documents may be delivered to our repre sentative in the branch offices of MACKAY RADIO & TELEGRAPH COMPANY, Plaza Moraga and Trade & Commerce Building. Individual attention and competent super vision given to your customs brokerage require ments. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING 176 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1949 THE BEST IN OFFICE TYPEWRITERS [SMITH-CORONA LATEST MODELS/ STANDARD OR SILENT? THEY HAVE EVERY THING........ AUTOMATIC MARGIN SET, INTERCHANGEABLE PLATENS, TABULATOR, TOUCH SE LECTOR, EVERYTHING! HERE’S YOUR CHANCE TO REPLACE OLD WAR WORN MACHINES WITH THE FINEST OF MODERN TYPEWRITERS ..... TIIE FAMOUS S M I T H-CORONAS! See us for demonstration Erlanger & Galinger, Inc. 123 T. Pinprn Between Escolta and Dasmarinas The _ = "LET YOUR HAIR DOWN” Somebody sent us a copy of a let ter written by an American oldtimer here who had been away, to friends in the United States, from which we select the following parts: “Among the Filipinos I find a rather frightening optimism, self-satisfaction, and rampant nationalism that are more founded on the present situation than upon awareness of how much their new found independence and prosperity are based on American help and protection (economic and military), and who have not the precaution to provide for their own future or even to think of the me nacing conditions in China and other neighboring countries (over-populated and in the throes of violent revolution ary changes) which can so quickly an nihilate the momentary improvements in the Philippines. “The Filipinos are actually quixotic and fanciful in their idealistic atti tudes, and neglect taking the practical steps that would use the present pros perity for permanent improvement of their own most urgent necessities, agri cultural ‘know-how’, technical educa tion, sanitation, and an economic and political integrity in their public ser vices, which could help to withstand the pressure of another catastrophe they might have to face without any cer tainty of American help and libera tion. However, many individuals are doing fine work... “The American professional and ‘small business’ people, who are the few who have not as yet been in any way indemnified for war-losses by the United States or Philippine Govern ments, or had any pre-war obligations ‘written off,’ have now, as they had before the War. a disproportionately great part of the tax burden. Under these circumstances I have the fixed de termination to get out from under a sit uation that shows no signs of giving me any personal advantage without fur ther prolonged expenditures and efforts. I am in no way disposed to risk preca rious health and a minimum of financial security (from all-American assests) so hardly won... “These are just impressions. It has been a crowded, interesting, and happy time for me here, in spite of the noise and expense that Manila living demands. Prices are fabolous and service unbe lievably bad, but those are frontier con ditions and rehabilitation necessities, — everywhere the terrible effects of war devastation are being felt...” This letter shows evidence of having been somewhat hastily written and might have been bet ter rounded, but is interesting as a spontaneous expression of the state of mind of many of the oldtime Americans here, — we might say a very mixed state of mind compounded of a love of the coun try and its people, irritation, con---------■ - Column cern, and more thought than for merly in many cases, to their own personal interests, — now that they are getting old and the coun try is independent and they feel less responsible. The editor had a letter from Major Mrs. H. G. Hornbostel dur ing the month who, both, are still living at Carville, Louisiana. The Major, who for some years was the advertising manager of the editor’s still suspended Philippine Magazine, referred to this column as follows: “Both Gertrude [wife] and I enjoy reading the Journal, particularly the ‘Let Your Hair Down’ Column, which is more YOU than the rest of it.” “There we go again,” said the editor when he read this line. “What’s the matter with the rest of the Journal, or didn’t he mean it that way? But it was a plea sant letter otherwise. I don’t think he meant that this column is no good. He must have meant that the editorials, which, gen erally, it is both my duty and my pleasure to write, do not sound so much like me as he used to know me. You know, that hurts. Granted that one should develop and perhaps change, one is proud to maintain a certain integration of character, not to say one’s in tegrity. “Naturally, the Journal being an organ of the Chamber, the editorials express or try to ex press what may be taken as a sort of average of the opinions of the members on any subject, but I must insist that I share those opinions. I can say that during the whole of my writing career I have never written a single line that I did not believe to be true. I would not start lying for the Chamber, and I was never asked to or expected to. “To those of my old friends who are thinking that I am developing a second personality, if not a dual one, I can say that the truth is really very simple. Most of them know me from the Philippine Ma gazine and that was a politicalliterary monthly, naturally devot ed to all sorts of broad, cultural matters. That was my life and thought in those days, — you might say somewhat high-brow! April, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 177 “Now I am engaged in a very different sort of journalism, al though the Philippine Magazine never wholly neglected business and economics and the country’s trade relations as a part of the general Philippine-American cul ture. The Journal, however, is devoted practically exclusively to business, so that naturally my pre sent field is narrower. No dif ference has arisen in me. I am just looking more closely and more intently at once particular element of culture. “And while I miss the broader and perhaps more flowery fields which are the pasture of a gen eral monthly magazine, I am not sorry that I am now able to con centrate my interest on what I think is at present the most im portant sector. “Literature, music, the other arts, — those were important in the happy, piping days before the War; there was money and leisure for them. Now, after all the des truction, material and moral, we have had to go back to the econ omic and political fundamentals. That is where now, as a voice if nothing else, I hope, at least, that I can be most useful. “I insist that I am always me.” We had a letter from the edi tor Oils and Oilseeds Journal of Bombay, a new publication which we mentioned in this column some months ago. He wrote: “We are in receipt of a copy of the December issue of your esteemed Jour nal and are pleased to find on perusal a pointed reference has been prominent ly made to our letter in the ‘Let Your Hair Down’ column at page 468 in in troducing this Journal to the vast num ber of your readers. “This column has a fascination of its own and always makes a very interest ing and lively reading. Please accept our warmest thanks for having intro duced our Journal through the medium of this lively column. "With best regards, Yours faithfully, “R. C. Sheth." We don’t always receive such a courteous .acknowledgement of anything, — and the praise (we hope it is not just flattery) is overwhelming. Could it be that this column is not so bad after all? Look at those words again: “interesting”, “lively” (twice), a “fascination all its own”. Now what can we put in this month to live up to such praise? Some of the most lively mat ters that came to our attention, as well as the more funereal, have already been dealt with in the editorial column. Of course, there are always the editor’s grand children, but he grimly swore some months ago he never wanted to see them mentioned here again. The trouble is so little except hard work goes on in this office. Peo ple rarely come in with a joke. Usually they just come in to make some protest and demand we have a row with the Government over this thing or the other. Or they ask for information that is often impossible to obtain. Well, we’ve moved to our new quarters in El Hogar Filipino Building, fourth floor, two large communicating rooms, — one our offices and the other a rest and reading room where one may al so obtain coffee, sandwiches, etc. There was some question for a while whether Meralco could sup ply the power for the elevator in the newly reconstructed building, but it is running, thank goodness. The house-warming, to which a good many people have been in vited, will be held a few days after this issue of the Journal will have come off the press. Since the Liberation, the Cham ber has moved no less than six times, — showing how difficult the housing situation in Manila has been. On February 21, 1945, just a few weeks after the Santo Tomas internees were freed, and long before the fighting in Manila was over, a number of the direc tors of the Chamber who had been interned, including the late S. F. Gaches, the then President, opened temporary offices in a private house on Espana Street, just across from the University of Santo Tomas where a good many of the liberated internees were still living in nipa shacks. Some three months later, the Chamber moved to the People’s Bank Build ing on Dasmarinas Street (now Heacock’s), sharing the ground floor, one large room, with five or six other business entities while the streets were still being cleared of the debris of war and the building was just beginning to be repaired. This work forced a move to the Gibbs Building, nextdoor, and from there, in May, 1946, the Chamber moved to the eight floor of the Trade and Com merce Building on Juan Luna Street, shortly after that building had been vacated by the U. S. Army. In July, 1947, the Cham ber moved to a larger room on the TRADE AND COMMERCE BLDG, MANILA EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U. S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf Ports — Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarinas St., Manila Tel. 2-98-46 ' (Priv. Exch. All Lines) 178 AMERICAN CHAMBER OF COMMERCE JOURNAL_____________April, 1949 C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS — AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE IVARAN LINES — FAR EAST SERVICE (Holter-Sorensen — Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLE V-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE & YOUNG New York V. MUELLER Kobenhatn, Denmark Head Office: 5TH FL., INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-S7-29 2-96-17 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANO TOKYO—YOKOHAMA—KOBE NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUGARCRAFT” all officers fifth floor of the Insular Life Building, two blocks away, and now, from there, we have moved to our new and still more com modious quarters. El Hogar Filipino Building (li terally, the Filipino Home Build ing, from a building and loan as sociation of that name), also on Juan Luna Street, stands on the right-hand bank of the Pasig River, across the street from the Ayala Building which houses the National City Bank of New York and the offices of numerous other firms. Between the two buildings runs the ramp of the temporary Juan Luna Bridge. A h undred yards upstream, the Puyat Com pany is cleaning up the wreckage of the Jones Bridge, blown up and destroyed by the Japanese, pre paratory to building a new one in the same place. Power-drills are making a terrific racket and several times a day all the build ings in the area are shaken by the dynamite explosions. Across the river lies what is left standing of the old Walled City of Manila (Intramuros), and right opposite stands the recons tructed building of the Philippine Chamber of Commerce. Most cons picuous from our windows over looking the river are the Manila Postoffice Building to the left, which looks allright from the out side now, and to the right the Intendencia Building, soon to be the home of the new Central Bank also being reconstructed. The large City Hall, with its tower, rises in the center distance. The Metro politan Theater is still largely un reconstructed. The largest ruins in sight are those of the old Santo Tomas Convent and the Santo Domingo Church and the greater part of the famous San Augustin Church and Convent, the oldest buildings in Manila. Farther off on the horizon are the Army and Navy Club and the Elks and Uni versity Club Buildings, the Manila Hotel, of which only the upper parts can be seen, and still far ther, the American Embassy. We can not see much of the Bay, but we can see the broken arch at the entrance of the old Pier Seven now Pier 13, and the superstruc tures of a number of large ocean going ships. Though, from this view, Manila is still largely a city of ruins, the sight is no longer dreary. There is too much movement and too much noise for that. Automobiles and trucks and buses rush across the field of vision in unending streams. In the acoustical scale far below the occasional dynamite ex plosions and the intermittent rac ket of the drills, but" all-pervad ing, is the deeper rumble of the traffic in the streets and over the temporary bridge with its sharp horn-blowing, and in counterpoint one hears the chugging and putputting of the tugs and launches in the river. From nearer by, in arpeggios, comes the sound of stone-chissels, saws, and hammers, and everywhere one hears the voices of men. It is all in very great contrast with the days of the enemy oc cupation, especially during the months toward the end, when the whole great city was as silent as a country town, when the grass grew in the dirty streets, and only an occasional push-cart was to be seen and the ragged, famishedlooking people slinked along and never raised their voices. Automatic Calculators To all who need accurate figures in a hurry... PHONE OR WRITE US FOR DEMONSTRATION ON YOUR OWN WORK r Mivtiu filttiiurotl ih fSt iiuuHutft SMITH,BELL^CO..LTD. TRADE AND COMHERCE BLOG, HANILA Republic of the Philippines Depurtment of Public Works and Communi cations BUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, A. V. H. Hartendorp, editor and manager of the American Chamber of Commerce Journal, published monthly in English at the Office of the American Cham ber of Commerce of the Philippines, Manila, after having been duly sworn in accordance with Jaw, hereby submits the following state ment of ownership, management, circulation, etc., which is required by Act No. 2580, as amended by Commonwealth Act No. 201: Editor, A. V. H. Hartendorp, 404 El Hogar Filipir.o Building, Manila Business Manager. A. V. H. Hartendorp 404 El Hogar Filipino Building, Manila Owner, American Chamber of Commerce of the Philippines 404 El Hogar Filipino Building, Manila Publisher, American Chamber of Commerce of the Philippines 404 El Hogar Filipino Building, Manila Printer, Carmelo & Bauermann, Inc. 2057 Azcarraga, Manila Stockholders owning one per cent or more of the total amount of stocks: None. Bondholders, mortgagees, or other security holders owning one per cent or more of the total amount of security. None. Total number of copies printed and circu lated of the last issue, dated March, 1949: Sent to paid subscribers .................. 800 Sent to other than paid subscribers . 1200 Total .......................... 2000 (Sgd.) A. V. H. Hartendorp Editor and Manager Subscribed and sworn to before me this 18th day of March, 1949, at Manila, the af fiant exhibiting his Residence Certificate No. A-49130. issued at Manila on January 17, 1949. Emilio V. Salas Notary Public Until December 31, 1949 Doc. No. 60: page 95; Book No. II : series of 1949. GIVES you MORE MORE IN YOUR NEW TIRES This B. F. Goodrich passenger car Silvertown costs less per mile. It is wider, flatter, so -that more tread rolls on the ground. Hundreds of curved tread edges give you quicker, safer stops and better traction. And the cord body is stronger. Tests prove it outwears prewar tires. Safety with Seal-o-matic Puncture-Sealing Tubes Seal punctures as you ride. 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THE NATIONAL CITY BANK or NEW YOLK First in World-Wide Banking Branches in the Philippines MANILA Branch: Juan Luna Street corner M. de la Industria Port Area Branch: Bonifacio Drive corner PAMPANGA: Clark Field CEBU: Cebu City 13th Street AMERICAN EXPRESS TRAVEL SERVICE When thinking of TRAVEL always consult AMERICAN EXPRESS TRAVEL SERVICE REMEMBER it costs no more to buy your travel tickets by Air, Rail or Steamship through AMERICAN EX PRESS. A chain of offices throughout the world is maintained to lender service to our clients. NEVER TRAVEL WITHOUT AMERICAN EXPRESS T R A V EI. E R S CH EQU ES THE AMERICAN EXPRESS CO., INC. El Hogar Filipino Bldg.—Juan Luna St.—Tel. 2-71-56 General Foreign Agents NEW YORK CENTRAL RAILROAD G-E lamp research is constantly at work to give you more light for less money, to make G-E lamps stay brighter longer! Be sure your lamp is G-E... for utmost light value and economy. GENERAL © ELECTRIC (P.M ^"IHC. 120 13th Street, Port Area, Manila Tel. 2-98-31