The American Chamber of Commerce Journal Vol. XXV, No.7 (July 1949)

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XXV, No.7 (July 1949)
Issue Date: Vol. XXV, No.7 (July 1949)
Year: 1949
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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; C. R. Leaber, Treasurer; F. C. Bennett, J. H. Carpenter, C. H. Hirst, N. Most, R. J. Newton, and F. L. Worcester. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXV July, 1949 No. 7 Contents From "The Poem of Bunker Hill” Editorials — JfaiTy Brown 271 * The Fourth of July ........................................................ The Fortune and the Wall Street Journal Articles "Industrialisation" in the Philippines .................... The Petroleum Act of 1949 ............................................ Murder and Justice .......................................................... The 4-H Clubs — A Suggestion for the Philippines Favorable Aspects of The New Bureau of The U. S. Veterans the Philippine Economy Industrial Safety ................ Administration and Recent Investment Opportunities in the Philippines Legislation . The Business View — Office of the President Banking and Finance .............................................................................. Stock and Commodity Markets ............................................................ Credit ............................................................................................................. Gross Sales (Ten Leading Business Firms) 1937-1949 (Table) Real Estate ................................................................................................... Real Estate Sales in Manila, 1940-1949 (Table) ... Building Construction in Manila. 193G-1949 (Table) Electric Power Production ...................................................... Ocean Shipping ........................................................................... -............. -Mining ............................................................................................................. Gold Production for May (Tuble) .............................................. Production of Minerals other than Gold and Silver (Table) Lumber ............................................................................................................. Copra and Coconut Oil ............................................................................... Desiccated Coconut ..................................................................................... Manila Hemp ............................................................................................... Tobacco ............................................................................................................. Food Products ............................................................................................... Automobiles and Trucks ......................................................................... Textiles .............................................................................. Legislation, Executive Orders, and Court Decisions .................. Philippine Safety Council ..................................................................... U. S. Government Agencies, — Ports and Harbors and Philippine Recovery (U.S. Information Service, Manila) Executive Order No. 231 ................................................................................. Cost of Living Index, 194G-1949 (Table) ................................................ The "Let Your Hair Down” Column ........................................................ Official Source ........ C. V. Grant ................ A. C. Hall .................. W. J. Nichols .......... Bureau of the Census C. M. Hoskins ............ Bureau of the Census Bureau of the Census R. J. Baker ................ F. M. Gispert ............ C. A. Mitke ................ Bureau of Mines ........ Bureau of Mines ........ L\ J. Reyes .............. M. Igual and K. B. H. R. Hick ................ S. Jamieson ................ H. Robertson .............. Conde de Churruca C. G. Herdman C. H. Helling . J. Traynor .... E. E. Selph .. F. S. Tenny .. and Statistics and Statistics and Statistics Day 286 288 288 290 290 290 290 291 291 291 292 292 292 294 294 297 298 299 300 302 303 304 304 306 J. G. Planas ........................................ 307 President of the Philippines ............ 309 Bureau of the 'Census and Statistics 311 ......................................................................... 312 50 Centavos the copy THIS NEW KIND OF TIRE gives you an amazing ride... a completely different ride! The new / by GOOD/YEAR MORE PEOPLE, THE WORLD OVER, RIDE ON GOODYEAR TIRES THAN ON ANY OTHER MAKE THE GOODYEAR TIRE & RUBBER CO. OF THE PHILIPPINES, LTD. Bacolod Manila Cebu Editorials “ . . . to promote the general welfare” HERE on this spot was boro a nation that will be Adept in all the humanities. Spreading in cir cles, as when A pebble is thrown into a morning lake, Its concepts will cover a continent with a vision of dignity At last made real. Here a race of men will evolve That will instruct the world in justice and in love. A race of men to whom the entire world is a religion, Whose vessels, laden with much more than car goes. Will pass through the seven oceans, bearing with them The beliefs of all our countries, all our hearts. From The Poem on Bunker Hill by Harry Brown The American Chamber of Commerce of the Philippines extends its felicitations to the people and Government of the Republic of the PhilThe Fourth ippines on the occasion of the third anof July niversary of the establishment of Phil ippine independence, — on which same day Americans in all parts of the world celebrate the 173rd anniversary of the independence of the Mother land, the United States of America. When the February issue of Fortune came out with the article by Dr. Claude A. Buss entitled “Na tionalization in the Philippines”, The Fortune and in which he said that “some Wall Street Journal things are going on there that Articles have U. S. businessmen wor ried”, the American Chamber of Commerce Journal withheld comment. Recently (June 17) an article appeared in the Wall Street Journal which was more or less the same in the upshot, but bit deeper and therefore created a greater furore. We realize that readers both here and in the United States would be surprised and would possi bly misinterpret the Journal again remaining silent. In our opinion, both the Fortune and the Wall Street Journal articles should be considered by us in the Philippines not on the basis of whether the va rious statements made are the whole truth and noth ing but the truth, but on the basis that they are made at all. We should recognize that these two articles embody definite American opinion on matters of transcendant importance to this country involving its entire future development and welfare. If American officials, though unnamed, and American businessmen are authoritatively reported to be “worried”, then we can not argue about that but must accept it as a fact. What we should do is to look about us to find out (if we do not know this well enough already) what they are worried about and do something about that. We can not remove the w'orry, the doubt, the mistrust except by going to the roots of these feelings and removing their cause. The Wall Street Journal article was published under the following headlines on the right-hand co lumn of the first page, top of the column, being the leading article in the issue: Baby Marshall Plan ECA-Type Plan to Put Philippine Islands on Their Feet is Failing First of Big U.S. Foreign Rehabilitation Programs is Now Three Years Old Nearly $1,500 Million Spent We can maintain that the rehabilitation plan is not failing, we can argue about the exact amount 272 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 rASTeR...FW£K to five continents The Orient's most luxurious airline is ready to fly you in greater comfort to five continents. Fleet P.A.L. DC-6's are the fastest "over-the-weather" transports in use today for Inter-Continental flight service. Make your next trip via P.A.L. ... no extra charge for personalized service! SAN FRANCISCO HONOLULU WAKE GUAM MANILA HONGKONG OKINAWA TOKYO DARWIN SYDNEY CALCUTTA KARACHI DHAHRAN CAIRO ROME MADRID LONDON FLY P.A.L. DC-6 FIVE MILE A MINUTE PRESS (J HIKED CABIN SLEEPERS PHILIPPII1E AIR LHlESinc. A. Soriano y Cia.— General Managers Central Office: M.R.S Bldg. Plaza Cervantes Manila Tel. 2-79-66 Tel. 2-79 6? Tel. 2-79-68 Branches: Manila Hotel—Tel. 2-91-3S * Avenoe Hotel—Tel. 2-79-66 spent, but even the best and the most hopeful friends of the country must accept the truth of the state ment made in the text of the article that there is a "bog-down” in the Philippines. While considerable progress has been achieved, it must be admitted that production and trade still run far below the pre-war norms and that the re covery is not as far advanced as it might and should have been because American capital, other than gov ernment funds, has not come into the country in the volume required and this is because.... The Wall Street Journal sums up the causes un der the following headings: The natural “growing pains’’ or difficulties of a country trying to recover from a serious war and to adjust itself to the exercise of national sovereignty at the same time. The belief of the Filipinos that if they get into “dollar difficulties”, “Uncle Sam will bail them out”. Government “indecision” as to its economic policies and American fear of “nationalization” and a “big government hand in business.” “Over-ambitious” government plans. We may argue about the relative importance of the causes listed and some may argue about their actual existence, but we can not argue away the Amer ican feeling about these aspects of the situation in the Philippines; that feeling exists. And certainly no one conversant with Philippine developments can say there is no warrant whatever for such a feel ing. This Journal has for several years been very frank in stating what we believe to be the American view of the economic policies being pursued and the various legislative measures adopted to implement them. These various policies and laws were and are not all wrong; some of them were and are wise. But there have been some aspects of policy and a number of legislative -acts which have created the feeling in United States official and financial circles which both Fortune and the Wall Street Journal, two of the most authoritative business publications in the world, have now described in terms which can not be mis understood. And their analyses are backed by the material fact that capital has not come to the Phil ippines in the volume hoped for and so desperately needed. The National Foreign Trade Council of New York was recently quoted in the press as stating that the United States “must give ‘much more’ than its al ready substantial assistance to the Philippines” and that “the Governments and business committees in both countries can and must cooperate in ‘developing a vigorous program for Philippine economic recovery and growth.’ ” The Council went on to say: “Over the years, American enterprises in the Islands have made noteworthy contributions to economic stability and pro gress there. Changed conditions now exist, but the continu ance and expansion of American enterprise in the Philippines would contribute to economic stability and progress there. The efforts of Philippine enterprise would be enhanced... "The starting point for development of the PhilippineAmerican program should be intensive consideration of rea sons why American capital is not now going into the Philip pines. “Firm intention to take the steps thereafter required by the Philippine and United States Governments is essential to provide inducements for American private capital invest ment in the Philippines... “Prompt action by the Governments of the Philippines and the United States should remove obstacles to private in vestment and trade so that Philippine exports and increased investment of domestic and foreign capital can cover Philip pine requirements for imports and economic development." There we have the answer: Expansion, not limitation, restriction, and discrimination. Industrialization has become a word to conjure with. Too often we are tempted to think that the industrialization of the economy “Industrialization” will end poverty, solve all our in the Philippines economic and even many of our social problems, and make the country great and powerful. Grandiose schemes are conceived, and if outside private capital can not be convinced of their sound ness, why, then the Government itself will undertake the projects. There has already been an “ear-mark ing” of hundreds of millions of pesos of the people’s money for the purpose, mostly from the currency re serve, and it is planned to borrow hundreds of mil lions more, — from abroad, if possible, or else from the people here . . . But have we got it? Let us remember that a government is actually only what might be called a committee of the people, and that the limits of what a people can do are the limits of what a government can do. If a people are poor, the government must needs be poor. Govern ment borrowing from abroad is generally possible only under special circumstances and under gua rantees that the loans will be productive and will ul timately be repaid. Even when government bonds are successfully marketed, this is, of course, not the end of the matter; they must be serviced and eventually redeemed with money that comes from the people, the tax-payers. Though government aid is often valuable in ini tiating new economic enterprise, — in a manner which is likened to “pump-priming” (one throws a little water into a pump to start the suction which will draw the water from the well, but there must be water in the well), the money which a government borrows and then loans or invests ultimately comes from the people. And to paraphrase a statement in the last annual report of the President of the Interna tional Bank of Reconstruction and Development. — Sound investment over the long pull must be based on the willing assets of the saving public, rather than on the power of the tax collector. The actual long-range effect of a government going into business is not to encourage private en terprise, — as is said to be the aim here, but to dis courage it. And government-in-business brings in its train all the evils inherent in political control over what are essentially non-political activities, — the usual inefficiency and wastefulness of bureaucratic organization, and often also graft and corruption; most serious of all, if government-in-business becomes general, it leads swiftly to the destruction of democ ratic government and the establishment of totali tarianism. The topic, however, is not government-in-busi ness, but industrialization, whether by government or private enterprise. As a matter of fact, the Philippines has been in dustrializing for many years and this movement has in the main been very sound. According to the census reports, there were only some 2000 manufacturing establishments in 1903, with a total investment of 273 around P36,000,000. In 1918 there were over 5000 of such establishments, with a total investment of P165,000,000. In 1938 there were nearly 140,000 manufac turing establishments (individual and corporate), with an investment of over P356,000,000. Not so much, — but a start. Our lumber and sugar and oil mills, desiccated coconut factories, distilleries, cigar and cigarette fac tories, cement factories, gold and copper mines and mills, pearl-button factories, — all these are sound enterprises, established mainly by private capital which carefully felt its way and advanced only with due caution and generally operated economically and efficiently. These enterprises are all in line with the country’s natural products and raw-material resour ces; therefore they have been successful and are pay ing off. These industries are not pleading for any ex tensive government aid, money to be taken ultimately from the people. They are paying their own way. With the exception of the cement factories, they are producing largely for export and are not dependent on local tariffs and other forms of protection for their success. All they ask for is government understand ing of their position and that they be not unnecessari ly interfered with or taxed to death. We should understand that the Philippines is primarily an agricultural and raw materials country and that this is our great good fortune. The country is inestimably rich in natural resources,—fertile farmlands, great forests, rich mineral areas. And the country is not over-populated. That means that we are not inescapably compelled to import vast quanti ties of food, in exchange for which we are driven to manufacture all sorts of factory goods. If we can be said to be driven at all, we are driv en to export, but only from our great abundance, and in exchange only for what in some respects may be looked upon as the superfluities of living. That we are not making the best of our resources,—getting as much out of them as we might for a good life, is another matter. Our economic status is not a “colonial status” in the disparaging sense. The Philippines is inherently far more independent, economically,—or could be, than many industrialized countries which are small and over-populated and poor in natural resources. Our position is that which was also, and in a way still is, the position of the United States of America, which remains a great agricultural country though it has also become the greatest industrial country of the world. And American industrialization is based on its agricultural and mineral and raw-material re sources,—just as ours here must be if we hope for a sound industrialization. Industrialization should and will proceed here, but it should be allowed to follow the natural lines laid down by the country’s own resources. Some of the government projects are sound enough,—especial ly the Luzon hydro-electric power and the fertilizer plant projects. For the present, however, the greater emphasis should be laid on increased production of our estab lished world-staples, rather than on industrialization * . * President Elpidio Quirino said recently: "In fundamental terms, our Government, like all other governments ,n„ the Post-war world, has for its main objective the attainment of self-sufficiency in foodstuffs and a balanced foreign trade wherein the value of imports is roughly covered at least by the value of exports. But, given the structure of our present economy, and the character of our international commitments, we can not and should not, for the time being, depart radically from our accustomed grooves of production. It is the pre-war export industries, — sugar, copra, hemp, tobacco, lumber, gold, and base metals, pineapples, and ramie, that we have for the present to depend on. We have to continue rehabilitating these as rapidly and as intensively as our means will allow in order to get the wherewithal to diversify our agriculture, and to establish the light industries that will meet our needs in consumption goods. Under the tested principle of first things first, these export industries for which we have a ready market and existing plants, or for which we can readily provide capital, labor, and know-how, should receive top priority in our efforts at re habilitation because these industries are the ones capable of giving us immediate national income as well as opportunities for gainful work to our laboring class." The easiest, simplest, safest, most natural, and most economical way to prosperity is to increase our production of rice, sugar, copra, hemp, rope, lumber, coconut oil, etc.—not the production of products which can be cheaper and better manufactured else where. The sale of such imported goods here is what enables foreign nations to buy our products. If they could not sell their manufactures here, they could not buy from us what we produce best. The local market for locally manufactured goods would be small, and it will probably be many years, if ever, before we could compete successfully on an even basis with the United States, the European coun tries, Japan, China, and India in manufacturing enter prise which would call for large capital investment, . highly developed technology, and an exceptionally frugal, industrious, and efficient laboring class. Our greatest immediate opportunity lies simply in fully supplying the quotas granted us under the Bell Act. In 1948 we were able to fill only one-third of our pearl-button quota and even only one-third of our coco nut-oil quota; less than one-third of our sugar quota; only one-fifth of our cordage quota; only one-thir tieth of our tobacco quota, and only one two-hund•redth (1/2 of 17c) of our cigar quota! Truly, there is no pressing need for a “liberal ization” of the Bell Act quotas. What we need is more production under the granted quotas. Greater produc tion will mean a greater volume of exports, which will mean more money coming in, which will mean a better living for all of us, and money left over which will naturally seek investment. Let us look after this type of production and worry about the local manu facture of knick-knacks later, some other time. Let business attend to business, and let the Govern ment go back to governing. Let our Government tend to what governments are organized to do,—maintain peace and order, administer justice to every man, and provide those few but basic public services which are important to all,—health and sanitation, education, ports and harbors and roads, an honest postal service. All that is enough for any government to be respon sible for. Let it regulate, but not seek to direct and control business or go into business for itself, thus competing with and destroying the ultimate source of its revenues. Let business itself use its brains and energy and capital in those fields in which these may, for the pre sent, be best applied. And let us give furlough to those few psuedobusinessmen among us who would use political in fluence and governmental power to establish them selves in protected positions to push uneconomic schemes that would do nothing but harm to the coun try. 274 July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 275 There’s Money in the Air when Worthington moires the Air! Your customers prefer to patronize stores, theatres, hotels and restaurants that are air-conditioned The reasons why so many business men the world over have chosen Worthington air conditioning are: an experience in air conditioning extending for over 50 years ... a a complete line ranging from unit conditioners for small enclosures to completely engineered systems for entire buildings. Also, the fact that all the vital components are built, not merely assembled, by Worthington, means smoother running of interrelated parts and a single responsibility for the performance of the equipment. For the best advice on your air conditioning problem, see your local Worthington representative—or write to Worthington Pump and Machinery Corporation, Export Department, Harrison, N. J., U. S. A. Representati ves: Fred Wilson & Co., Inc., Manila A 540-ton Worthington Centrifugal Refrig eration machine, mounted on a structural steel base in roof-top penthouse, provides year-round air conditioning for Burdine’s Department Store in Florida. WORTHINGTON THE SIGN OF VALUE AROUND THE WORLD f.9.17 F The Petroleum Act of 1949 What may prove in time to be one of the most constructive acts passed by the First Congress of the Philippines is House Bill No. 2804, now Republic Act No. 387, the short title of which is “The Pe troleum Act of 1949.” The full title is: “An Act to promote the exploration, develop ment, exploitation, and utilization of the petroleum resources of the Philippines; to encourage the con servation of such petroleum resources; to authorize the Secretary of Agriculture and Natural Resources to create an administration unit and a technical board in the Bureau of Mines; to appropriate funds there for; and for other purposes”. If it is to be determined whether petroleum de posits in commercial quantities exist in the Philip pines, and, if so, this resource is to be developed, then the enactment of new legislation on the matter was absolutely necessary, for the old Petroleum Law (Act No. 2932) of 1920 was so obsolete that it was twice suspended, once in 1938, by an Act of the Phil ippine Legislature, for five years, and again for five years in 1944 by President Quezon. In 1938, Pres ident Quezon also obtained enactment of Common wealth Act No. 351 which declared it to be the policy of the Government to undertake the search for and exploitation and development of the petroleum re sources, in which undertaking the Government could engage the services of an independent contractor or contractors. Only one company submitted a bid to render such services, but this was rejected on consti tutional grounds. After the liberation, the National Development Company not having the means to continue the ex ploratory work it had begun prior to the war, Pres ident Roxas secured approval by Congress of a Joint Resolution (No. 5, 1947) under the provisions of which he created the Philippine Oil Commission to make a thorough study of the subject. This Com mission was at work for nearly two years, called for suggestions and proposals from various oil com panies, and also sent abroad Director Demetrio An dres, of the Bureau of Mines, and Mr. P. Bautista, chief attorney of the same Bureau, to make a study of present trends in petroleum legislation in different countries. The present Law embodies the principles of the Venezuela laws on the subject and also the conserva tion measures now included in United States Federal and States laws. Under the new Law the petroleum resources re main the property of the State, and, because of the importance of petroleum to the life and security of a nation, petroleum operations are declared to be a public utility. The Government itself may undertake exploration and development and exploitation work, or concessions may be awarded to private persons or entities. According to Article 31,— “...During the effectivity and subject to the provisions of the ordinance appended to the Constitution of the Philip pines, citizens of the United States and all forms of business enterprises owned and controlled, directly or indirectly, by citizens of the United States shall enjoy the same rights and obligations under the provisions of this Act in the same man ner as to, and under the same conditions imposed upon, citi zens of the Philippines or corporations or associations owned or controlled by citizens of the Philippines...” Five kinds of concessions are provided for: non exclusive exploration permits, exploration concessions, refining concessions, and pipeline concessions. The first, or non-exclusive exploration permits will be granted in order to give persons qualified to acquire exploration concessions opportunity to examine the ground before filing a formal application for an ex clusive exploration concession. The granting of initial concessions is discre tionary with the Government, but the granting of concessions arising from the initial ones is obligatory upon the Government if a concessionaire fulfills his obligations. An exploration concession may not cover more than 100,000 hectares nor less than 20,000 hectares in one block, and the total area a concessionaire may acquire for exploration purposes may not exceed 500,000 hectares in any one region nor 1,000,000 hec tares in the whole Philippines. The concession runs for 4 years, renewable for 3 years and again for 3 years, but a concessionaire may renounce the whole or any part of his concession at any time, in the lat ter case, the area retained to be not less than 20,000 hectares. In order to insure the exploration of such areas and to discourage mere speculation, the work obliga tions to be performed are specified in the Law, and, to compensate the Government for the administrative expense, an annual exploration tax on a gradually in creasing scale is to be levied. If oil is found, an exploitation concession will be granted under which the concessionaire is required to begin drilling within a year and must “dilligently” continue his operations and develop and bring to pro duction any discovery until at least the domestic pe troleum requirements of the Philippines are met by the total net production from all local sources if the deposits discovered make such development possible in accordance with good petroleum practice. The concessionaire will be obligated to pay an .increasing annual exploitation tax for the areas covered and to deliver to the Government a royalty of not less than 12i/>% of the petroleum produced and saved which may be paid in petroleum or in cash at the option of the Government. Taxes and royalties are not to be changed during the life of a concession. TO provide a technical analysis and criticism of the new Law is not the purpose of this editorial. We may say, however, that oil men in Manila speak wel of it and commend the Oil Commission for an ably done piece of work. The measure was passed by the Congress practically as drafted by the Commission. However, while the Law has been well received by local oil men, there is still a feature in the present situation which remains an obstacle to the develop ment of the possible petroleum resources of the coun try by American enterprises, and that is the fact that the Constitution and other laws limit their right to do so to a period which will expire on July 3, 1974,— unless, indeed, the Executive Agreement entered into between the Governments of the United States and the Philippines under the Bell Act can be extended beyond that date or the American entities concerned can come under contract of service as independent contractors in case the Government should decide to undertake the operations under the provisions of Article 5 of the Act. In the exploration for and the development of oil resources, particularly in a country where none have been proved to exist, 24 years is looked upon as too short a period to warrant the laying out of the huge amounts not only of risk-capital which may be re quired, but of the even greater amounts which would July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 27 TAKES THE BOUNCE OUT OF THE BUMPS Like. ttG- aUt&i tite! Yesterday's rough roads are smooth today on I'. S. Koval Air Hides. With greater aii capacitx —at extra low pressure—this amazing new tire absorbs the bumps before they bounce jom car - keeps you riding smoothly! Its trimly de signed tread makes your steering wheel lee) lighter than ever-yet its wider outside ribs steady your car around curses and corners. And the Air Bide is the ONLY low pressure tire that pros ides the new comfort ride whether mounted on standard or wide base rims. For a smoother, more comfortable ride than you’ve ever known before, see your U. S. Tire Distributor today about changing to U. S. Royal Air Ride tires. ORDINARY DRE AIR RIDE TIRE Un iumpi-piwidu V>% iwi auhioniBt cwnlorl U.S. ROYAL ?&cLe. — ~ — United States Rubber Company Myera Bldg., Port Area Tel. 2-98-61—2-98-62 Manila Distributors: Manila Dealers: KER & CO, LTD, ILOILO KER & CO, LTD, CEBU REYES AUTO SUPPLY, 687-89 Evangelista SQUARE AUTO SUPPLY, 635 JUAN LUb[A be called for if oil is found in paying quantities, for wells, pipelines, and refineries. It is well to remember, in this connection, that the Mexican Government, which, under President Lazaro Cardenas, in 1938, expropriated all the hold ings of foreign oil companies in that country, is now making strenuous efforts to re-attract foreign cap ital. At one time, Mexico ranked second to the United States in world oil production; today it ranks only sixth. In 1921 it produced 195,000,000 barrels of crude oil, but it produced only 58,000,000 barrels in 1948. It is true that the Mexican Government, at the time of the expropriation wanted to adjust the production to the national consumption. However, the Government now wishes to increase its oil ex ports to obtain much-needed dollars and bolster its currency, but. is having a hard time achieving this. Oil seeps have been known in various parts of the Philippines for many years. Early in the 1920’s, the Richmond Petroleum Company, a subsidiary of the Standard Oil Company of California, drilled four wells in the Bondoc Peninsula area, and while oil in dications were found, oil was not found in paying quantities, and the work was abandoned. The Far East Oil Development Company (a Soriano enter prise) began drilling a year or so before the war and resumed the work after the war in a number of local ities, but no evaluation of the commercial possibilities has as yet been arrived at. Both the Richmond and rhe Soriano enterprises were undertaken under the provisions of the old Petroleum Law of 1920, and the interests of the latter are recognized under the new Law. If the Philippines were found to be rich in oil, as is, for instance, near-by Borneo, then, as in the case of a number of other countries in the world, the royalties paid to the Government might well put an end to all its financial difficulties. The Philippine Government has shown itself exceedingly wise in en larging the opportunities for private investment in this prospective industry. ’’THE dangers of violence that threaten us come not from the heads of individuals but from social circumstances. Murder is an embolus. The disease lies elsewhere. It is not a matter of episodic violence, but of a continuous violation of the principle of the dignity and value of'human life. Actually in our society respect for human life is only a professed, theo retical ideal. We must vigorously remove the obstacles that prevent it from becoming a reality.”—Frederic Wert ham, in “The Show of Violence”. The Manila Lions Club sent a memorandum to President Quirino recently urging the strict enforce ment of the law and the regulations Murder, covering the right to own and to carry and Justice fire-arms and to sell and buy such dead ly weapons. The memorandum was en dorsed by a number of other civic organizations in cluding the American Chamber of Commerce. Not alone the unending newspaper reports of shootings and killings, but the fact that such crimes are frequently carried out in broad daylight in full public view, makes the need for the strictest possible enforcement of the fire-arm regulations obvious to all. But more radical measures should be taken, es pecially with respect to speeding the disposition of murder, cases by the courts. Murder, and indeed all major crime, was com paratively rare in the Philippines before the war. The Filipinos were a notably peaceable and law- abid ing people. Conditions during the enemy occupation combined in every way to lower the sense of the dignity and value of human life. The Japanese, as a race, no toriously had no sense of this, and their continuous wholesale individual and mass executions and their frequent bloody punitive expeditions, the bitter guer rilla warfare against them, which often degenerated into fighting among the guerrillas themselves, and the general banditry which sprang up among the unhap py population when the enforcement of normal law and order became impossible, — all this plunged the Philippines into a welter of blood. The summary killing of informers and traitors in those days came to be justified in the popular mind, and, in a sense, every man came to regard himself as accuser and judge and executioner, if need be, of his neighbor. Death from exhaustion, illness, and starvation became so common as hardly to shock anyone any more. People died in the streets and passers-by walk ed around the corpses. Infants and young children died by the thousands. Then, with the liberation, came the massacres in which tens of thousands of helpless civilians were shot or bayonetted or burned alive by the ferocious enemy. This was followed by the extermination of several hundred thousand of Japanese by the Amer ican armed forces and the Filipino auxiliaries. The land was soaked in blood and everywhere was the stench of decaying flesh. The war over, fire-arms of all kinds, without number, issued by the American army or captured from the enemy, were left in the hands of the people. Government efforts to collect them have been largely futile. The lawless elements refuse to surrender them; the more law-abiding feel they need them for self-protection. Not only did banditry continue to be widespread, but an insurrectory movement, — that of the Hukbalahap, developed into what amounted almost to civil war which has not even now been completely sup pressed despite large-scale military engagements and much killing, including the killing of hundreds of non combattants. In one way or another, millions have died in the Philippines since the fateful year, 1941, and in the minds of many life has become cheap. Many of the men who killed others during the terrible years of the war, either legitimately or otherwise and with or without justification, now live among us, largely in distinguishable from each other or from the rest, and some of them keep on killing. There are many possible motives for murder. It is preeminantly a passional crime and thus subject to mitigation in punishment. But murder nowadays in many cases is almost without motive or utterly wanton. The killer says: I wanted something he had, I killed him. He stood in my way, I killed him. He resisted me, I killed him. He was afraid of me, I killed him. He annoyed me, I killed him. So does the most worthless wretch build up his ego and the weakling gain a sense of power and do mination. I, the merciless and the invincible; I and my gun. Oppose me, — look at me sidelong, and die. In the end he kills indifferently, with only a faint bloodlust, and every man he meets becomes a poten tial victim. Such criminals are like vicious beasts. Nothing can be done with them; they can only be exterminat ed. The war brought us great wreckage of material things. The human wreckage includes the impoverish ed, the crippled, the ill, and also the morally wrecked 278 July, 1;)49 AMERICAN CHAMBER OF COMMERCE JOURNAL 279 Dependable low cost power... International Harvester provides equipment for every use that demands reliable and economical motor force from 39 to 180 h.p. 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Instructions to that effect should go out from the Central Government. The traditional law’s de lays should not be permitted to obstruct swift justice, especially in those cases where killers are caught redhanded and there can be no doubt of their guilt. There should be no foolish sentimentality, no truck ling to “influence,” no leniency. Judicial mercjr is misplaced in the case of those who themselves showed no mercy in the shooting down of their victims. A lawyer told us that a man came into his office some time ago who had been sentenced to from three to seventeen years’ imprisonment for murder. Now, after three years, he was out. And he was packing a .45! How was it that this man was given a license to carry a gun? Why was he loose at all? The news papers recently reported after a shooting affray be tween two notorious Tondo gangsters, that both men were licensed to carry guns! Such a state of affairs amounts to official complicity in murder. The country needs a clean-up not only of crimi nals but in the official agencies whose function it is to deal with criminals. And it should begin at the top and go down to the bottom of the whole hierarchy. The 4-H Clubs A Suggestion for the Philippines since its inception We, in the Philippines, who are vitally concerned in the improvement of the conditions under which the younger generation is being brought up throughout our rural areas, should take an interest in a remarkable youth organization in the United States which, __ in 1914, has helped to develop, physically, mentally, and morally, over 10,000,000 young citizens, and has also increased farm incomes, raised standards of living, and added greatly to the satisfactions of country life. We refer to the 4-H Clubs, for rural boys and girls between the ages of 10 and 20. The insignia of the clubs is a four-leafed clover with an H in each leaf, standing for head, heart, hands, and health. The movement has spread not only throughout the United States but to Hawaii, Alaska, and Puerto Rico, and is also being developed in many foreign countries. It appears to be well suited to Philippine conditions and needs, too. The 4-H Club work is a part of the national agricultural extension system organized by the U.S. Department of Agriculture in cooperation with State colleges of agriculture and the county extension or ganizations under the Smith-Lever Act of 1914 and other acts of Congress and of the State legislatures. The Clubs are usually organized and conducted under the immediate supervision of county extension agents cooperatively employed by the Department, the colleges, and the county governments. Clergymen, teachers, and other professional men and women, to gether with outstanding farmers and homemakers play an important part as local leaders in the devel opment of the work which now, in the United States alone, reaches some 2,000,000 rural young people each year. A club member does a piece of work each year which demonstrates or teaches “the better way in homemaking or agriculture” in somewhat the same manner as the school and home “projects” presently conducted in the Philippines by the public schools. The main difference appears to be that the Amer ican movement stresses the club idea as well as the individual effort. And each individual project is giv en more importance than it is here through the fact that each member keeps a record of costs, labor, and results; explains the work to others; takes part in an annual exhibit, and writes a final report which sum marizes the years’ work and often recounts the changed attitudes experienced through the activity undertaken. According to a guidebook published for local leaders by the Department of Agriculture, the 4-H Club work provides opportunities for voluntary part icipation in programs, built on needs and interests, through which rural boys and girls are — 1. Developing talents for greater usefulness. 2. Joining with friends for work, fun, and fellowship. 3. Learning to live in a changing world. 4. Choosing a way to earn a living. 6. Producing food and other products for home and market. 6. Creating better homes for better living. 7. Conserving nature’s resources for security and hap piness. 8. Building health for a strong America. 9. Sharing responsibilities for community improvement. The Smith-Lever Act declared the purpose under lying Federal aid to the Extension Service to be: “...to aid in diffusing among the people of the United States useful and practical information on subjects relating to agriculture and home economics and to encourage the ap plication of the same... That cooperative agricultural ex tension work shall consist of the giving of instruction and practical demonstrations in agriculture and home economics to persons not attending or resident in said colleges... and imparting to such persons information on said subjects through field demonstrations, publications, and otherwise.’’ The distinctive educational objectives of the 4-H Clubs are to help rural boys and girls develop desir able ideals and standards for farming, homemaking, community life, and citizenship; to afford them tech nical instruction; to give them an opportunity to learn by doing; to teach them the value of research and develop a scientific attitude toward their prob lems; to train them in cooperative action; to develop in them habits of healthful living; to provide them direction in the intelligent use of leisure; to arouse in them worthy ambitions and a desire to continue to learn; to teach them and to demonstrate methods designed to improve practices in agriculture and homemaking. The aim is to increase their sense of responsibility; to give them a view of agriculture as a basic industry and of homemaking as a worthy occupation; to increase their accomplishments and, through associated effort, better assist in the solving of rural problems; all so they may live fuller and richer and more useful lives. Club activities include team demonstrations; work in judging; special club days; dramatics, page ants, and music; tours and nature hikes; camps; ex hibits; club events at state agricultural colleges; spe cial ceremonies, etc. Some of the projects involve gardening and the raising of various crops, the feeding and handling of young farm animals, farm-machinery maintenance, home-ground development, home-improvement, home sanitation, planting of flowers, shrubs, and trees, problems in soil-conservation, problems in forestry, 280 July, 1919 AMERICAN CHAMBER OF COMMERCE JOURNAL 281 "Saving up to 30% on fuel "We’re saving up to 30% on fuel with the new Ford F-7 BIG JOB,” reports W. W. Caswell, General Manager of Anniston Motor Express, Inc. "This unit is hauling express shipments averaging around 14 tons payload. It is out performing higher priced u: its we are using.” Mr. Caswell isn’t the only Ford BIG JOB enthusiast. 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Iriga, Camarines Sur MINDANAO MOTORS CORP. Cagayan, Or. Misamis DAVAO MOTOR SALES Banquerohan, Davao City MONTILLA BROS. CO. Bacolod City EAST VISAYAN MOTORS, INC. 3 R. Palma, Cebu City PANAY MOTORS, INC. Muelle Loney, Iloilo City MANILA TRADING & SUPPLY CO. Port Area, Manila problems in entomology, wildlife studies, sewing and dress-making, cooking and baking, carpentry, elec trical work, etc. A report on secondary school education in the Philippines was recently submitted to the Govern ment by a committee of schoolmen headed by Dr. Pe dro T. Orata, of the National Commission on Educa tional, Scientific, and Cultural Matters. This report recommended that the secondary school curriculum provide for just such practical activities as are com prised in the work of the 4-H Clubs. This would be a move in the right direction, but we believe that the club-form of organization might well be adopted here for this could include young people both in and out side the high schools as well as grade-school pupils. And if the cooperation of our Department of Agri cultural and * Natural Resources could be obtain ed, and also that of the College of Agriculture, the College of Forestry, and the various regional agricul tural and farm schools, and, in addition to that, of those numerous private persons who now serve as local leaders in the Boy Scout and the Girl Scout or ganizations, then something might soon be accomp lished in the betterment of conditions in our rural communities. Favorable Aspects of the Philippine Economy PERHAPS a certain pessimism about the future prosperity of the Philippines may serve as a stimulus to better efforts, but to dwell on the unfavorable signs, without at the same time noting the favorable signs, tends to aggravate conditions by frightening people away from new ventures and from, the expansion of existing enterprises. There are abundant favorable signs and factors, both economic and social, which point to a steadily growing prosperity for as long a period in the future as may be prudently contemplated. Rehabilitation. Let us start with this nation of close to 20,000,000 people. After passing through a period of enemy occupation, with unprecedented destruction of lives and property, and universal de moralization of economic, social, and spiritual pat- ' terns, the Philippines today is a pretty fine countrycompared with the rest of the world. Without wait ing for government aid, private initiative on the part of all elements started rehabilitation immediately after liberation. Using such scrap materials as were available, homes and places of business sprang up. A shanty town, perhaps; but that was far better than a ghost town. Rehabilitation has continued as rapidly as supplies of goods became available, and nearly all of it through the private in'tiative of tens of thousands of little men who did not wait for the Government to help them, men who have re-established their lives on a livable basis through their own efforts. A nation which can go through the ordeal which the Philippines passed through, and reach the degree of reconstruction to be seen today, shows survival qualities of the highest order. In this lies the greatest promise for continued and growing prosperity. Peace and Order. Each year since 1945 has seen a steady improvement in the peace and order picture. When one looks back to 1900, and recalls that it took eight years for the “guerrillas-turned-bandit” to be brought under control and restored to peaceful pur suits, the present-day situation, involving ten times the number under arms, shows that amazing progress is being made. The Philippine nation has shown a steady re covery from the emotional shock suffered by practical ly all the inhabitants, who e:ther witnessed or heard at first hand of the horrible atrocities committed against their immediate families, relatives, and friends. A nation less embued with the fatalistic philosophy of life would have shown a far more serious dislocation of behavior patterns than we have witness ed here. Filipino Participation in Trade. Consumer goods are now abundant. The shelves of the merchants are once more filled. The amateur merchants who lacked aptitude for mercantile pursuits are being eliminated in the present buyer’s market, yet very many Fili pinos for the first time entering the commercial field, have demonstrated their ability, and are still in busi ness as permanent assets to the community. This broadening of the base of trade and distribution and the increase in the number of Filipinos participating in it, through free competition is indeed a wholesome sign. It gives us a more business-m:nded community, with greatei * powei * ovei- the body politic. Industrial Progress. New industries have mul tiplied rapidly, not big industries alone. Thousands of small new industrial establishments have been set up which in the aggregate have a marked effect on the national economy. The experience of the wai’ years developed a large class of resourceful men and women who had to improvise to survive, and these are the pioneers who are now establishing small industries everywhere. Several large new industries have also strengthened the national economy: modern plywood plants, a steel-window factory, plastics factories, rub ber-processing plants, a nail factory, a modern glass bottle plant, and various othei' establishments in the heavy-industry field have created new jobs and in creased national self-sufficiency. Despite the un certain groping which is sure to characterize some of the new industrialization efforts, the people as a whole are now more industrially minded, and this augurs well foi * future progress and prosperity. The sugai- industry by next year is expected to be back to full capacity. This will go far toward com pensating foi- reduced United States windfall pay ments. Trade Balance. Imports continue far in excess of exports. Yet one-third of our imports continue to be imports needed to replace items destroyed by the war. Discounting this class of commodities, imports and ex ports approach a balance. Increased exports during the coming years, together with continuing United States disbursements in the Philippines, should give us a favorable balance of payments sufficient to com 282 plete the replacement of war-destroyed items, even after war-damage payments cease. Import control has been more of a costly nuisance than an impediment to the import trade, with the ex ception of a few items. Private enterprise had anti cipated reduced consumer-demand long before import control took effect, and orders had been correspond ingly reduced. Labor. Labor demands have brought wage levels to an index figure of about four times pre-war. Wage levels seem now to be established at a base where they may continue, with little likelihood of general in crease in the face of dropping living costs. Except for the lack of decent housing due to war damage, laborers are eating better, dressing better, and enjoy ing more luxuries than before the war. The gradually declining cost of living will be offset by the needs of growing families, so no general reduct:on in wages may be looked for. The present higher general wage level in relation to living costs should add more to the prosperity of the Philippines than any single post-war factor. Reduct’on in labor costs to meet competitive markets will come from greater labor output per man hour, rather than from wage reduction. The pur chasing power of the people will therefore continue at high levels. The Philippines with its immense undeveloped resources represents an expanding economy, and des pite cyclical adjustments from time to time to bring the economy into balance, the continued progress and prosperity of the Philippines cannot be stopped. Any one who sells the Philipp:nes short fails to see the overwhelming long-range factors that give assurance of a continued rise in the prosperity level for all classes. Let not the day-to-day annoyances, unjust de mands, unfair decisions, and various vexations unduly influence our perspective. These troubles are not unique to the Philipnines. The businessman in Washington, London, New York, and San Francisco has an equal share of gripes. We complain and seek correction of grievances, and sometimes the situation improves. Viewing the overall picture, the percentages still favor us, or we would not be here. The New Safety Bureau By Frank S. Tenny Executive Director, Philippine Safety Council THE recently enacted Republic Act No. 367 (An Act creating the Bureau of Industrial Safety) has caused considerable comment in business circles and is deserving of explanation. Probably the most important single observation to be made at this time is that the Act is definitely not intended to unduly harass the employer; consider able effort was expended bv the authors to make it neither pro-, nor anti-labor. The Safety Act is in tended to serve the best interest of the people as a whole. From the immediate practical view point, those firms which now afford reasonably safe work ing conditions have nothing to fear from the Act; other firms will certainly be given adequate time to improve safety conditions before being subjected to any form of discipline. A good capsule description of the Act is that it is an important piece of social legislation, definitely a forward step in local progress and rehabilitation. No one can disagree with the statement that local safety-conditions badly need improvement. Some ac cidents rates here are from 3 to 11 times as high as those in other countries. To have a government agency of bureau rank devoted to safety, is probably the greatest advancement in public safety here since the war. The Act provides, among other things, for the establishment of a safety research laboratory, where materials of all kinds may be properly tested for their safety-factor. This will assist in guaranteeing the safety of construction materials, for example, or of industrial chemicals, and should serve to drastically reduce the apalling number of explosions, collapses, and fires which are taking lives almost daily in the Philippines. The activity of the new Bureau with which busi nessmen will most frequently come into contact is that of Industrial Safety Inspection. Trained safety engineers will from time to time inspect all industrial establishments. Recommendations will be made to the management as to safety-hazards noted and help ful suggestions will be made along these lines. Al though such an inspection may appear to be for the benefit of employees alone, it is an established fact that the prevention of accidents results in great fin ancial savings for management. The prevention of one fatal accident, for example, would save the loss of several thousand pesos represented by workmen’s compensation, insurance, hospital and funeral ex penses, loss of a trained employee, lost of interim production, unfavorable publicity, lowering of em ployee morale, etc. This is of course in addition to the human angle and the loss to the family. Other requirements of the Act include the main tenance of adequate first-aid facilities and the crea tion of a company safety-committee, both of these factors of a scope appropriate to the firm concerned. Certain local firms which have already entered upon company safety-programs have found them to be of great benefit to operational efficiency. Some of these are San .Miguel Brewery, Manila Electric Company, Pangasinan Transportation Company, Pepsi-Cola Bottling Company, Bachrach Motor Company, Manila Trading and Supply Company, and several others. Firms like these, of course, will have a “head start’’ in connection with ease in complying with the provi sions of the Act. Employers will note that they need not neces sarily be held liable for accidents which happen to persons due to their own extreme negligence or vio lation of regulations. Once a firm has properly in 283 stituted necessary safety-measures and once every reasonable effort has been made to protect both workers and the public, accident causes and respon sibilities will be easily established. There is no in tention to force an employer to stand any loss for which he is not responsible, or to hold him liable for an accident which he has previously exerted every reasonable effort to prevent. Under the Act, safety will be a joint responsibility of all. The Act is the product of necessity, built upon the broken bodies of those persons who have suffered from preventable accidents of all kinds. For years there has existed in the Department of Labor a littleknown but hard working section called the Safety Engineering Division. This group worked closely with the Advisory Safety Council to the Secretary of Labor. However, all too often, the voices of those safety pioneers were like the voice of those “crying in the wilderness.” For a variety of reasons, their findings and recommendations were often rendered ineffective. Meantime the accidents went on at steadily increasing rates. After much preparatory work, HR 1460, fore runner of the present Act, passed the lower House in 1948; it was passed by the Senate during the recent session, and was signed by the President on June 10. The approval was due in no small measure to the support of several civic, humanitarian, and rehabili tation groups here. Mr. Primo G. Maliuanag, long-time chief of the Safety Engineering Division and Chairman of the Advisory Safety Council, is the originator and fore most contributor to the Act. Other members of the Council are V. A. Brussolo, Cesario A. Grau, Maria no Salazar, and the writer. It can be safely stated that this body will not countenance any abuse of the powers of the Act. It will probably be some time before the new Bureau is completely staffed and in full operation. In the meantime, local industrial establishments may be surveying their own safety situation with a view toward passing any subsequent safety inspection with flying colors. The Philippine Safety Council will be available for assistance in this regard, if desired. In closing, I urge the general support of businessmen for this new Bureau, for it has been created with the highest of motives and will be administered wisely and fairly. The U. S. Veterans Administration By Warren F. Brumfield Chief Attorney, U. S. Veterans Administration, Manila AMONG the various United States Government agencies which are operating in the PhiliDpines, the Veterans Administration is the old est. This agency, now headed by Brig. Gen. R. B. Lovett, has had an office in the Philippines for about a quarter of a century. Before the second world war, the activities of the Veterans Administration were on a much smaller scale than now. Pensions and disability compensation then being administered embraced principally vete rans of the Spanish-American War, the Philippine Insurrection, the Boxer Rebellion, and former Phil ippine Scouts and their dependents. The total “case load”, — which is the term used in the Veterans Ad ministration to designate the whole number receiv ing the benefits it dispenses, was approximately 7,500. Of course, the various United States laws under which the Veterans Administration operated during that time were directly applicable to the Philippines, since the country was then under the American flag. The end of the second world war compounded the problems of the Veterans Administration manyfold, first, because of the considerable increase in the “case load” to be handled as the result of legislation extending various pension and other benefits to Fil ipino veterans of the second world war and their de pendents, and later because Philippine Independence had the effect of wiping out the whole legal struc ture upon which the Veterans Administration was then operating. Laws of the United States, which were then in effect in the Philippines, such as the statute exempt ing pensions and other benefits from taxation, and certain laws designed to protect the beneficiaries of Veterans Administration payments from scheming claim agents and attorneys, literally went out of the window with Independence. The status of the U.S. Veterans Administration as an agency operating in the Philippines also changed. It became, in fact, the first and only regional office of the U.S. Veterans Administration operating on foreign soil and under foreign laws. And yet, so thoroughly did the Government of the Philippines cooperate that the transition was ac complished with no trouble at all. Moving swiftly each time a need has been shown, a law has been passed by the Philippine Congress and approved by the President to take the place of some United States law which had been in effect and which Independence had obliterated. It is not generally known that the Veterans Ad ministration is required by law to guard with zea lous care the money it pays out in pension or other benefits in behalf of persons who are of unsound mind, or who, for other reasons, are legally incom petent to handle their own affairs. Included, of course, in this latter class are minors, most of them orphaned by war. In this respect, the Veterans Administration acts virtually as guardian ad litem in protecting the moneys paid out for the benefit of these individuals. Such protection can be extended only if there is legal 284 sanction for it. Complaints by the Veterans Admi nistration to the courts of the mishandling of funds by guardians or curadors must be judicially sanc tioned, the government attorneys making such com plaints must have standing in the courts and must be heard. Otherwise, little would come of it. ONE of the earliest acts passed by the Philippine Congress and approved by the President was Republic Act 146 which requires that notices of mo tions or petitions filed in any court of the Philippines relative to guardianship proceedings of any person or his estate, or both, when the whole or part of the estate under guardianship is derived from the U.S. Veterans Administration, shall be served to the of fice in Manila at least 20 days before the hearing to enable it to file its pleadings or to send its repre sentatives at the hearing of such motions or peti tions. It will at once be seen that, in the absence pf a statute of the kind quoted, the legal authorities of the Veterans Administration who are vested with responsibility for protecting estates of Veterans Ad ministration beneficiaries from dissipation through unwise investments, extravagance, or even fraud, would be helpless. Not the least of the concern of the Veterans Ad ministration has been the well-known tendency of shysters to exact fees from beneficiaries under the guise of helping them to secure their benefits from the Veterans Administration. A United States statute had been in effect for many years to curb this practice but, of course, with Philippine Independ ence it passed out of existence as far as the Philip pines was concerned. Again, the Philippine Government stepped into the breach by the enactment of Republic Act 145 which makes it a penal offense for any person who assists a claimant in the preparation, presentation, and prosecution of his claim for Veterans Adminis tration benefits to contract for, charge, receive, or so licit a fee for such services exceeding P20 in any one claim. Another Act of the Philippine Congress which greatly aids the program of administering pension and other benefits in the Philippines by the Veterans Administration, is Commonwealth Act 2567 which still remains in legal effect and provides a penalty for the filing of any false or fraudulent claims against any agency of the United States Government. The Act is wide in scope and drastic in penalty and has proved of considerable value not only to the Veterans Admi nistration but to other American agencies as well. THE session of the Philippine Congress which ad journed May 19, 1949, holds the record for bene ficial legislation passed in aid of the Veterans Ad ministration’s program in the Philippines. The various bills of this nature which were passed by this- Con gress were promptly signed by President Quirino and have becojne law. The lengthiest is Republic Act 390, known as the “Uniform Veterans Guardianship Act”. This law is similar in scope and nature to one which has been passed by the legislatures of practically all of the States of the Union and in Puerto Rico as well. It implements, in a detailed and comprehensive way, the whole program for protecting the estates of incom petents and minors who receive funds from the. Ve terans Administration from dissipation. It is a lengthy Act and only a few of its most important provisions can be examined here. It provides a limitation upon the number of wards for whom any single individual may act as guardian. It prescribes the methods by which guardians may be appointed for persons who are entitled to receive mo netary benefits from the Veterans Administration. It prescribes the manner in which notices are to be given to the Veterans Administration, of all petitions affecting the ward or his estate in any manner, and allows the Veterans Administration, as a party at in terest, to intervene wherever this appears necessary and to the best interest of the ward. It defines the responsibilities of guardians with respect to the ac countings which must be filed annually both with the Court and the Veterans Administration and provides that failure to file such accounting, when due, shall be regarded, prima facie, as embezzlement. The com pensation which guardians may exact for their ser vices, the types of investments which they may make, and the circumstances under which they may pur chase homes for their wards are, among other things, set forth in considerable detail in this law. The sta tute requires that copies of any public records re quired by the Veterans Administration in connection with claims must be furnished free of charge and that no legal or court fees shall be assessed in guardian ship proceedings filed by, in behalf of, or at the in stance of the Veterans Administration, or in any of the cases embraced by this Act. One effect of the Uniform Veterans Guardian ship Act in the Philippines will be to lay a legal foundation for the protection of the estates of incom petent and minor Veterans Administration benefi ciaries similar to that which has long existed through out the United States. Indeed, an attorney who has been in charge of such activity in any of the several jurisdictions where such a law is in existence, will, upon coming to the Philippines, find himself moving along thoroughly familiar paths. A considerable body of precedent law has already been built in the United States around the Uniform Veteran Guardianship Act. These precedents, which are based upon many years of experience covering a wide range of actual cases, will be invaluable to the courts of the Philip pines in the settlement of guardianship problems. To any American attorney assigned from the United States to this field, the transition from a do mestic to a foreign assignment now poses no parti cular, professional problem. Strange, unfamiliar prac tices and procedures of a foreign jurisprudence do not arise to haunt him. He moves with precision and complete assurance under an all-inclusive Act em bodying the same principles and procedures to which he was accustomed back home. At the same time, former servicemen with war-shattered minds, chil dren who were orphaned by war, and others requir ing that the protective arm of the law be placed around them to insure that the Veterans Adminis tration benefits due them will be used exclusively for their welfare, will benefit immeasurably from this law. At this writing there are slightly more than 4,000 such cases on the Veterans Administration rolls in the Philippines and these are being added to at the rate of 100 a month. The statute is, literally, a bas tion against greed and avarice! Another Act of the recent Philippine Congress is Republic Act 360, which specifically exempts the be nefits, which are payable by the Veterans Adminis tration, from taxation. It also provides that these (Continued on page 310) 285 The Business View Office of the President of the Philippines From an Official Source JUNE 1 — Announced that President Elipidio Quirino has persuaded Surplus Property Commissioners Jose Zulueta and Jose Romero to remain in their jobs until completion of the liquidation. The President tells representatives of the Indian Over seas Bank, Ltd., that foreigners are welcome to invest in the Philippines provided they observe the laws of the country. June 2 — The Cabinet approves a recommendation of the National Economic Council that the export ban on lumber be lifted; the ban expires on the 6th. The President instructs Secretary of Public Works and Communications R. Nepomuceno to rush work on all projects for which war-damage payments have been authorized in order to complete them before June 30, 1950, the dead-line set by the War-Damage Commission under the present. law. Thus far only some 50 projects have been completed. June 3 — The President’s appointment of Filemon A. Cosio as Acting Under-Secretary of Commerce and Industry is announced; also that of Maj. Victor H. Dizon as deputy administrator of the Civil Aeronautics Administration. Announced at Malacahan that on instructions of the Pres ident the Secretary of Agriculture and Natural Resources will shortly call a meeting of mining company representatives to find out what the Government could do to assist the re habilitation of the mining industry. Mine production in 1948 amounted to only P44.000.000 as compared to more than P100,000,000 before the war. June 4 — The President, addressing a group of bank auditors and comptrollers who call on him at Malacahan, ap peals to them to "cooperate decisively, aggressively, and quickly’’ in the economic mobilization program of the Govern ment. The President' appoints a committee headed by Vicente Aldaba to make a study of problems in connection with the establishment of the ramie industry in Mindanao “which is being seriously considered by the Government’’. June 5 — The President signs House Bill No. 2833 authorizing him to negotiate loans from the International Bank for Reconstruction and Development on behalf of the National Power Corporation for a sum not to exceed P100,000,000. He also signs House Bill No. 2834 increasing the borrowing capacity of the NPC from P20 000,000 to P170,500,000; House Bill No. 2885 providing for uniform taxes and fees in connection with wireless reception and transmission of wordage and pictures; House Bill No. 2002 appropriating funds for the rehabilitation of domestic insurance companies; and Senate Bill No. 391 converting the School of Forestry of the University of the Philippines to the College of Forestry June 6 — Malacahan announces that the International Emergency Food Council in Washington has removed ferti lizer from the list of controlled commodities, effective June 30. June 7 — The President and American Ambassador M. M. Cowen sign a formal agreement giving effect to the Rogers Act which provides for the hospitalization of Filipino veterans. The Foreign Office announces that additional reparations equipment from. Japan will come to the Philippines in ac cordance with a SCAP decision “virtually exempting” all Japanese reparation assets already allocated under the interim plan, from the United States May 12 directive which halted further reparation withdrawals. It is estimated that the Philippines’ additional share will approximate some 10 ship loads of assorted diesel generating sets, electrical equipment, and fuel pilot plants. June 8 — Inasmuch as Congress failed to act on the bill appropriating P5,000,000 for the November 8 general elections, the Cabinet, acting on the recommendation of Budget Com missioner Pio Joven. authorizes the Commission on Elections to incur all necessary expenses in connection therewith, these to be charged temporarily against present funds for supplies and salaries of emergency employees, so that it will not be necessary for the President to exercise his emergency powers. The President issues Executive Order No. 221 lifting the export ban on lumber on condition that — graded and of Forestry of Forestry "no lumber or timber shall be exported unless the same is inspected by an authorized lumber inspector of the Bureau and n certificate of inspection duly approved by the Director is issued therefor prior to shipment.” Secretary of Labor P. Lovina, in his capacity as Chair man of the Board of the National Land Settlement Ad ministration, announces that to revitalize the Koronadal Settlement projects, 20 tractors and some 200 carabaos (from French Indo-China) will be purchased, survey groups will be dispatched, and funds will be released for several irrigation works. Malacahan directs the Armed Forces of the Philippine to issue new back-pay checks for some 260 veterans who have been defrauded by forgers to a total of over P409.000, — “with out prejudice to the determination of the liability of either the Philippine National Bank or the Armed Forces of the Philippines with respect to each particular loss.” June 9 —The President signs a number of bills, including Senate Bill No. 311 (Republic Act No. 360) exempting from taxation and attachment, levy, or seizure all the benefits accruing to any person under the laws of the United States administered by the U.S. Veterans Administration; House ‘ Bill No. 2249 (R.A. No. 361) amending Sec. 190 of the In ternal Revenue Code so as to exempt from payment of the compensating tax vessels and their equipment purchased or received from outside the Philippines; H.B. No. 2611 (R.A. No. 362), appropriating P300.000 for the study, control, and eradication of kadang-kadang and other diseases and pests of coconut trees; H.B. No. 280 (R.A. No. 363) authorizing the Director of Public Schools to add a surcharge, not to exceed 15%, to the price of government-published anthologies used as textbooks to be paid to the copyright owners of the selections used; and H.B. No. 2811 (R.A. No. 364) authorizing ■ vocational schools to collect tuition fees, receive contributions from private persons, and contract loans creating a special trust fund for each such school. Announced that UNESCO has donated valuable scientific apparatus to the University of the Philippines, the National Research Council, the Institute of Science, the National Mu seum, and the Department of Education. A two-man commission from Paraguay is now in the Philippines to select some 500 persons from among the state less refugees temporarily domiciled at Guiuan, Samar, for permanent settlement in Paraguay. June 10 — The President signs a number of bills, including Housp Bill No. 2560 (Republic Act No. 369) providing for the redemption of emergency and guerrilla currency notes re gistered and deposited under the provisions of Republic Act No. 22, and H.B. No. 1460 (R.A. No. 367) creating the Bureau of Industrial Safety under the Department of Labor. The first Act appropriates P50 000,000 from the fiduciary fund received by the Philippine Government from the Government of the United States for the purpose. Acting General Manager Jose Agudo of the National Coconut Corporation dies of a heart attack, aged 59. June 11—The Liberal Party unanimously nominates President Quirino as its standard-bearer in the coming national elections. Nomination for the vice-presidency is postponed. Malacanan announces that of the 94 bills passed by both Houses of Congress. 83 have been transmitted to the President, 27 of which have already been signed by him. Of the 94 bills, 85 originated in the house and 9 in the Senate. June 13 — The President administers the oath of office to Pedro M. Gimenez as Deputy Auditor General, vice Pio Joven. now Budget Commissioner. The National Economic Council approves the first phase, involving the clearing and planting of 2,500 hectare area, of a 3-year, 10 000-hectare abaca project of the National Abaca and Other Fibers Corporation which will require a total out lay of P2,500,000. The Council adopts a recommendation of Governor M. Cuaderno of the Central Bank to reject a pro posal that the Government subsidize the gold mining industry. 286 The main features of the proposal which came from V. A. Brussolo, Vice-President of A. Soriano & Co., were that the Government have option to purchase and the producers of gold option to sell the metal “at a price calculated to induce operation of gold properties in general;” that this price would be “appreciably better” than the statutory price ($35 a troy ounce) and “also higher than the present free market price obtainable by the producers” (P90 to P96); all payment by producers to the Government to be made in bullion and all bullion purchased by the Government to be paid for in Phil ippine currency. Mr. Cuaderno stated that on the basis of the 1940 production, the Government, if it purchased the entire output at P100 an ounce, would require some P30,000,000 for the purpose, involving a considerable loss. “It would seem that as long as there is a free market for lecally-mined gold in the Philippines, which is absorbing their output at a much higher price than the official rate, the gold mining companies have a good incentive not only to increase production but also to rehabilitate mines which were damaged during the war," Mr. Cuaderno said. June 14 — The President issues Executive Order No. 223 authorizing PACSA (the President’s Action Committee on Social Amelioration), in consultation with the Director of Lands, to allot unoccupied agricultural land of the public domain to interested citizens in 10-hectare lots either under homestead or sales application, provided at least 1/5 of the area is placed under cultivation during the first year. In case of sale the grantee will be given 10 years to complete payment for the land. The President assures a large delegation of recently dis banded Philippine Scouts (U.S. Army) that he will issue an order to the Department of Public Works to give them prior ity second only to veterans of the Armed Forces of the Phil ippines in the matter of public-works jobs. June 15 — The President issues Executive Order No. 225 appropriating funds for the operation of the Government dur ing the period from July 1 to June 30, 1950, and another Order, No. 226, appropriating the sum of P6,000,000 to defray expenses in connection with the national elections next Nov ember, Congress having failed to enact a general appropria tion act. Order No. 225 appropriates P232,300,297, the same amount provided for in the Appropriations Act for the 1948-49 fiscal year, and “for the same purposes, services, and activities for the fiscal year ending June 30, 1950, or until such time as the Congress may determine otherwise.” The President signs House Bill No. 1748 (Republic Act No. 372) appropriating P2,000,000 for the rehabilitation of government stbck farms and breeding stations and the estab lishment and operation of additional such entities. He also signs a number of other bills including Senate Bill No. 425 (Republic Act No. 370) reclassifying Philippine trees for lumbering purposes. The President authorizes the release of P100,000 for the distribution of rice seed to small farmers, repayable after harvest in cash or in kind, through the local supervisors of the Department of Agriculture or the Department direct. June 16 — The President formally receives the Argen tine diplomat, E. A. Vieyra, as minister extraordinary and en voy plenipotentiary to the Philippines. Argentina is the first South American country to establish a legation here, though Ecuador, Nicaragua, and Venezuela maintain consulates. A delegation of sugar planters calls on the President to ask him to recommend the retention of the pre-war Philippine sugar-quota of 850,000 long tons in the Havana sugar con ference scheduled for next month. They also ask him to faci litate the presentation to Congress of a bill condoning interest on loans granted to sugar planters during the enemy occu pation. June 17 — The President vetoes House Bill No. 1527 which would have established a Typhoon Commission and which called for a total appropriation of Pl,000,000 to maintain the Commission and to enable it to "conduct researches and to find ways artd means of preventing or destroying typhoons in the Philippines.” Officers of the Philippine Dental Association call on the President to urge him to approve House Bill No. 2783 which would regulate the practice of dentistry and extend the pre sent 4-year course in dentistry to 6 years through a 2-year pre-dental course, and H.B. No. 2831 which would exempt im ported dental gold from the 30% luxury tax imposed under the Import Control Law. June 18 — The President accepts the resignation of Ma nuel C. Briones as Associate Justice of the Supreme Court who was nominated for the Vice-Presidency by the Nacionalista Party. The President administers oaths of office to Jose Nieva, Sr., as Officer-in-charge of the National Coconut Corporation and to Maj. Manuel Buenafe as Assistant Director of the Bureau of the Census and Statistics. The President, among other bills, signs House Bill No. 2118 (Republic Act No. 386), the new Civil Code which “seeks to give a more liberal interpretation of existing civil rights and obligations as well as afford women greater breadth of free dom in the exercise of their rights particularly with regard to the disposition of paraphernal and conjugal property.” "The Code becomes effective 16 days after publication in the Official Gazette und takes effect for one year after such publication during which it will be on a sort of a ‘trial run'. During this period the operation of the luws contained therein will be observed with a view to subsequently introducing proper amendments." The President also signs H.B. 2804 (R.A. 387) to pro mote the exploration, development, exploitation, and utiliza tion of Philippine petroleum resources; H.B. 2874 (R.A. 406) creating a Mines Special Fund in the Bureau of Mines to be used for the canvassing and evaluation of mineral deposits needed in the development of Philippine industries; H.B. 2756 (R.A. 412) providing for the establishment of a School of Fisheries at Tabaco, Albay; H.B. 2759 (R.A. 413) appro priating P100.000 for additional Bureau of Fisheries person nel in connection with the campaign against illegal fishing; H.B. 2831 (R.A. 396) withdrawing dental gold and gold al loys and other precious metals used in dental work from the classification as luxuries taxable 30% and placing them under ordinary articles taxable at 5%; withdrawing musical ins truments from the semi-luxury classification taxable at 15% if not more than P150 in value; also placing fountain pens if not more than P15 in value at 5% and more than P15 at 15%; H.B. 2783 (R.A. 417) regulating the practice of den tistry; H.B. 2822 (R.A. 414) appropriating P150,000 for the promotion of home industries and the revival of the crafts man section of the vocational education division of the Bu reau of Public Schools; H.B. 2699 (R.A. 401) condoning all unpaid interest accruing from January, 1942, to December 31, 1945, on all obligations outstanding on December 8, 1941, and to apply payments of interest paid after February 28, 1945, to the principal obligation if still outstanding, in certain cases; H.B. 2875 (R.A. 408) re unclaimed securities; H.B. 1910 (R.A. 397) granting the Boy Scouts of the Philippines 10,000 hectares of public agricultural land for the support of the organization’s activities; and H.B. 1461 (R.A. 418) exempt ing the Jai Alai from the 20% tax on gross receipts. With respect to the latter Act, it is explained that the former tax ation was discriminatory as it was in addition to the 3% on gross bets paid by other such recreational establishments and because the Jai Alai, alone among them, must surrender ownership of property worth P5,000,000 to the Government after 25 years. The President, among a number of other bills, vetoes H.B. 1602 re a Civil Aeronautics Board etc., H.B. 2053 which sought to limit the benefits of the Flag Law to naturalborn citizens of the Philippines; H.B. 2816 which would have appropriated P400.000 for the taking of an inventory of Phil ippine forest resources; and H.B. 2818 re the license to cut timber for mining purposes. F. C. Rodriguez, National Power Corporation manager, states that construction on the Lumot river diversion project which will make available an estimated 50,000,000 KWH a year is going “full blast” and that the project is expected to be completed about the end of next year. The Ambuklao pro ject on the Agno river “is scheduled to be in operation by the end of 1953 but at the present rate of progress this major source of power for Luzon may be in operation early in 1953.” The present work is being financed from advances made by the Government from Central Bank funds. farmers, repayable in kind or in cash after the next harvest. June 20 — The President signs the last of the bills signed bv him within the constitutional time limit, — House Bill No. 2217 (Republic Act No. 419) increasing the minimum specific tax on cigarretes mechanically packed. June 21—The President authorizes the release of P2,600,000 to the National Abaca and Other Fibers Corporation for the development of Davao abaca lands. The Cabinet approves the request of the International Refugee Organization for a 4-month extension of the stay of the refugees from China at Guiuan, Samar; the period would have expired at the end of the month. June 22 — The Philippine Department of Foreign Af fairs states that the Wall Street Journal article alleging that the “Little Marshall Plan” for the Philippines is failing, is 287 the “ultimate in misunderstanding of the contemporary situa tion in the Philippines.” The Philippine Embassy in Wash ington has been instructed to refute the article. The Australian Government has offered 4 fellowships and 1 scholarship to deserving Filipino students and technicians for study in Australia. Two Filipinos are now in Australia under fellowships granted last year, one studying animal husbandry and the other vegetable oils. June 23 — The Department of Foreign Affairs makes representations with the Chinese Legation for the return of 223 Chinese who were apprehended a few days ago in Quezon Province after their illegal landing. June 24 — The President appoints Anastacio de Castro as manager of the National Cooperatives and Small Business Corporation. The President creates a committee headed by Ricardo Nepomuceno to plan a coordination of the functions of the Capital City Planning Commission, the National Urban Plan ning Commission, and the People’s Homesite and Housing Corporation. The Cabinet discusses the advisability of sending a diplo matic representative to the Vatican. June 25 — Announced that the Board of Textbooks, Dr. Gabriel R. Manalac, Chairman, is prepared to consider the adoption of textbooks for Philippine public schools. June 27 — In ceremonies at Malacahan, 24 former alien properties of various categories, ranging from real and per sonal to stocks in former enemy corporations, to an aggregate value of P793,420.75, are turned over the the Philippine Gov ernment by the Philippine Alien Property Administration. The National Economic Council approves a 5-year plan for the rehabilitation of the tobacco industry with the recom mendation that the National Tobacco Corporation undertake it with starting funds of P3,000,000 obtained from the Re habilitation Finance Corporation and the Philippine National Bank. The Council also decides to recommend the establish ment of a national shipyard in the Mariveles-Sisiman area in Bataan, the project involving a total outlay of P16 000,000. The proposed shipyard would handle repairs, drydocking, and ship-construction, practically all the machinery needed being already available from reparation materials received from Japan. June 28 — The President issues Executive Order No. 231 amending the import control regulations “with a view to fur ther conserving Philippine dollar reserves by an estimated P60,000,000 or more a year. (The order is reprinted else where in this issue of the Journal.) June 29 — The President at the request of Secretary P. L. Mapa of Agriculture and Natural Resources, releases an other P100.000 for the purchase of seeds to be issued to small June 29 — The President reorganizes his Cabinet “to ef fect more efficiency and more speedy action,” as follows: Sabino Padilla (Secretary of Justice) becomes Associate Jus tice on the Supreme Court; Ricardo Nepomuceno (Secretary of Public Works and Communications) becomes Secretary of Justice; Prospero Sanidad (Senator) becomes Secretary of Public Works and Communications; Marciano Roque (Under secretary of Interior) becomes Assistant Executive Secretary and Technical Assistant to the President; Nicanor A. Roxas becomes Under-Secretary of Interior. Banking and Finance By C. V. Grant Sub-Manager, National City Bank of Neiv York THE first Regional Conference of the National Association of Bank Auditors and Comptrollers of the Philippines was held on June 3 and 4 in Manila. The Conference was attended by some 150 enthusiastic delegates from the banking communities throughout the country as well as by several bankers from abroad. Among the bankers who addressed the Conference during the first day of the session were Secretary of Finance Pio Pedrosa, Governor Miguel Cuaderno of the Central Bank, Chairman Delfin Buencamino of the Rehabilitation Finance Corporation, and President Vicente Carmona of the Philippine National Bank. During the session the following day the speakers In cluded Mr. C. R. Leaber, Manager of the National City Bank of New York, and Mr. Albino SyCip, Presi dent and General Manager of the China Banking Corporation. The speakers stressed the importance of the Cen tral Bank in the future development of the nation as well as the need of utilizing the reserves of idle capital in the hands of the public in order to attain the Gov ernment’s economic objectives. The delegates elected the following officers for the next two-year term; Mr. L. L. Pan, Auditor of the China Banking Corporation, as President; Mr. Conrado Sevilla, Auditor of the Philippine National Bank, as Vice President; and Mr. J. V. Macuja, Assistant to the Chairman of the Rehabilitation Finance Corpora tion, as Secretary-Treasurer. ON June 24 the Central Bank advised that until further notice it would sell dollars to the com mercial banks at 200.81 for Telegraphic Trans fer, and 200.76 Demand, against the previous rates of 201.00 and 200.95 respectively. No alteration was made in the rates at which the Central Bank will buy dollars from the commercial banks, i.e., 200.75 for Telegraphic Transfer, and 200.70 Demand. The rates between which the banks are permitted to quote for dollar exchange remain as follows: 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 At this writing the banks generally are quoting for prime business Telegraphic Transfer 201.25 sell ing and 200.625 buying. Editor's note:— No figures on total circulation, bank resources and liabilities, deposits, loans, etc., later than those published In the June Issue of this Journal, have been released by the Central Bank. Stock and Commodity Markets By A. C. Hall A. C. Hall & Company May 21 to June 21, 1949 NEW YORK STOCKS. — Automobile, Oil, and Steel shares weakened, causing softness in other sections of the general list. The market easily slid through the 171 area of the Dow Jones In dustrial Averages, and proceeded to test the post-war major lows in the 160 area, established during Oct ober, 1946. However, no great selling-pressure dev eloped at any time during the decline, and the mar ket held fractionally above these important lows. Since then prices have recovered a portion of the lost ground quite readily, but the rally has failed to gene rate activity, thereby casting doubts as to the mar ket’s underlying strength. At the moment, the posi tion would appear as follows: Any further advance on dwindling activity would very probably be follow ed by a renewed sell-off and test of the recent lows. If the latter holds again, a substantial recovery could follow this formation. However, penetration of the 160 area would probably result in important selling developing. Market fluctuations during the period, as mea sured by the closing Dow Jones Averages, were as follows: 288 Industrials .... Rails ............. May 20 High Low Jane 21 173.49 173.49 161.60 165.71 46.96 47.10 41.03 43.27 There is evidence of a deepening of the reces sion, and general business policy at the moment seems to be to further reduce inventories in expection of lower prices. The question uppermost in most busi nessmen’s minds is how much worse does it have to get, before it gets better? This point is also troubl ing investors at the moment, so perhaps a brief ex amination of the general market background may be helpful. In the past, bear-market declines in stock prices have shown considerable relation to the speculative excesses of the bull markets which have preceded them. With this in mind, it is of interest to compare the effect of the great post-war period of industrial activity on security prices, as compared with the 1936-1937 boom. In the following table, the shares of a number of outstanding companies, embracing most of the im portant industries, are used to illustrate the two periods. All prices are adjusted to the present cap italization of the companies involved. The first col umn shows the relationship of 1936-37 between peak earnings per share and highest share-prices on the basis of multiples of earnings per share which then prevailed. The next column shows the correspond ing multiples of the post-war period. Subsequent columns contain: the hypothetical post-war highs if peak earnings had been capitalized on the basis of the 1936-1937 multiples, the actual post-war highs registered, and the June 21 closing levels. Allied Chemical & Dye 23 American Can Co......... 24 American Tobacco Co. . 20 General Electric Co. .. 30 General Foods .............. 16 General Motors ............ 14 International Harvester 20 Kennecott Copper ....... 15 Sears Roebuck ............. 18 Standard Oil of New Jersey ....................... 13 U. S. Steel Corporation 16 Mull,pini Fo.t-W. r Ihxbt Po.i-'t'tr Ihpotbrh. l * >lr 21 15 $330 $212 $166% 14 194 112 89% 13 152 100 67% 12 121 52 35% 13 68 56 41% 8 136 80 54% 9 78 34 23% 7 130 60 43% 8 104 49 36% 7 158 90 63% 8 64 32 21% It is clear from the table that, on the surface at least, speculation has been very much restrained dur ing the period following the war, as compared with the last industrial boom period pre-war; also that stocks have declined substantially from post-war highs. Of course, the foregoing comparison cannot be considered as all inclusive by any means. It can be contended that times have changed, consequently, for many reasons, the previous relationship prevailing between stock prices and earnings possibly does not apply nowadays. While admitting the logic of this contention, as a result of the vast changes in the national economy which have arisen out of the late war, it seems reasonable to infer, in accordance with fundamental economic law, that new factors which operate to limit upside extremes will also tend to moderate downside fluctuations. Commodities. — The government policy of per mitting wheat stored on the ground to participate in the loan up to 75% of the full loan value has reversed the recent easier trend in prices; July Chicago wheat at $2.00 compares with $1.95% on May 20. The offi cial crop report as of June 1 indicates a larger crop than 1948. Corn was steadier in sympathy with other grains, healthy demand, and slackening country of ferings; July Chicago was quoted at $1,321/8 against $1.31% on May 20. As regards Cotton, the Journal of Commerce estimates this year’s crop at 15,000,000 bales. Good spot demand sustains nearby prices with July New York at 33.12 compared to 32.60 a month ago. Domestic Sugar futures were very steady with September No. 5 Contract advancing to 5.46 from 5.44 over the month. Refiners appear covered until early July. Seasonal increase in consumption is ap parent, but is possibly running somewhat less than estimated. Manila Market. — The downward trend in min ing-share prices continued during the past month. The market action reflects the continuing slow-down in local business activity, which in turn is in line with world trends. Arising out of the war, there are unbalanced price relationships in our economy, and these require adjustment. The signs are that the process will not be unduly delayed. The Commercial and Industrial section was quiet and easier in sympathy with the general trend. MINING SHARES COMMERCIAL SHARES Over-the-counter business during the period in cluded 9,000 shares Benguet Consolidated, high, 4.25, low 3.90, close 3.95; also 5,300 Philippine Iron Mines Common at P25; and 155,000 shares Taysan “A” from 10 to 13 centavos, closing at the latter price. Other business included 850 shares Jai Alai at P7; 3,900 shares Manila Jockey Club at P2 and Pl.95; and 110 shares Victorias Milling Co. at P150 and P145. 289 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 “ 213.5 * February . . . .. . . 102.5 71.6 80.3 99.8 95.9 — 34.6 228.9 228.3 241.3 March................ . . 105.9 85.2 87.1 104.3 107.2 — 61.1 218.8 257.5 289.6 April................. . . 107.5 81.4 79.8 100.3 105.6 75.1 155.3 254.0 231.2 May.................... . . 100.4 76.9 80.1 97.5 113.0 1.6 117.5 216.0 273.8 261.3 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 — • Revised figures for January, February, and March. Credit Real Estate By W. J. Nichols By C. M. Hoskins Treasurer, General Electric (P.I.) Inc. C. M. Hoskins & Co., Inc. THE May 7 and May 14 issues of the Saturday Evening Post cariied an interesting article on Dun and Bradstreet, Inc., the world’s oldest and largest credit agency. An indication of the scope and importance of credit information lies in the fact that the firm employs some 8000 people in the United States, has an income of about $45,000,000 a year, and supplies reports to around 76,000 suscribers to its services. It was Arthur D. Whiteside, President of Dun and Bradstreet, who coined what has become the semi-official definition of credit,—“Man’s Confidence in Man.” The next general luncheon meeting of the local As sociation of Credit Men will be held on Tuesday, July 19. It is planned to have a guest speaker give a short talk on some topic of special interest to the members, followed by a general discussion of the subject. We are hoping that this will be only the first of a series of regular quarterly meetings during which problems affecting credit executives can be brought into open forum. Since its incorporation in 1932, the Association has grown into an organization consisting of some 69 of the leading business institutions in the Philippines and has assets in excess of P23,000. Formed to establish closer credit co-operation among members and to obtain greater security and certainty in busi ness customs, the Association is constantly seeking ways to improve its services. THE real estate market in Manila was relatively quiet during June, with 259 sales registered having a total value of P2,793,217. Total num ber of sales continued high, and land values conti nued firm. The transactions analyzed showed a somewhat lower price for buildings, in line with de clining building costs. This is reflected in compara tive peso totals of preceding years. Comparative figures for the first six-months periods of 1946 to 1949 are as follows: January - June 1946 .......................................................... P18 513,538 1947 .......................................................... 37,632,010 1948 ......................................................... 27,938,224 1949 .......................................................... 20,058,383 Mortgages registered in June were up to P7.558,958, as compared with P5,583,332 for May. Private mortgage funds are entering the local real estate market in growing volume. THE new Revised Charter of Manila contains seve ral new features of interest to real estate inte rests. The Municipal Board is now authorized to re quire property owners to build sidewalks in front of their properties; if they fail to do so, the City may REAL ESTATE SALES IN MANILA, 1940-1949 Prepared by the Bureau of the Census and Statistics Note: A large percentage of 1945 sales and a diminishing percentage of 1496 sales, re present Japanese Occupation transacti ons not recorded until after liberation. January February March . April . . May . . June . . July . . August . September October . . November December Total . . P17.974 844 P10,617 285 P22,890.133 P45,537,914 P68.260 104 1940 P 6,004,145 918,873 1,415,246 883 207 403,866 542,187 1,324,861 1,905,828 1,141114 993,103 938,416 1,504,004 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858 235 (?) 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,780 1,123,565 699,740 1,870,670 2,096,893 2,555.472 2,874,408 1946 P 4,385,011 2,267,151 2,622 190 1,916,293 3,684 937 3,637.956 4,974,862 4 438,510 4,698,896 5,545,800 3 340,384 4,025,926 1947 P 6 030,012 7,217 317 7,166.866 8,611,076 4,618,181 3,988,560 4,097,183 5,627,572 7,437,213 6083,486 4,177,054 3,205,584 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 P57,798,121 1949 P 3,965,420 2,701,668 3,362,635 3,677,630 4,253,395 2,793,217 P20.753.965 290 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 1937 | 1938 1 1939 1940 1 1941 1 1945 1946 I 1947 1 1948 I 1949 | (Value) | (Value) | (Value) | (Value) (Value) | (Value) | (Value) (Value) | (Value) | (Value) | (Value) January . P 540,030 P 426,230 P 694,180 P 463,430 Pl,124,550 P 891,140 P — P■ 1,662,245 P 3,645,970 P 6,571,660 P 4,807,320 February 720,110 479,810 434,930 1,063,950 1,025,920 671,120 467,790 641,040 — 2,509,170 3,270,150 6,827,005 7,286,630 March . . 411,680 396,890 1,300,650 662,840 — 3,040,010 3,398,910 7,498,560 8,100,700 April . . 735,220 659,680 670,350 770,130 1,063,570 1,029,310 1,139,560 962,420 408,640 462,020 3,125,180 8,295,640 7,370,292 5,558,245 May . . . 400,220 740,510 335,210 1,496,700 3,964,460 5,564,870 8,570,410 5,070,380 June . . . 827,130 459,360 754,180 809,670 542,730 418,700 2,444,070 3,904,450 5,898,580 10 217,840 4,809,250 July . . . 302,340 691,190 756,810 495,910 357,680 609,920 1,741,320 3 062,640 9,875,435 7,771,487 August . . 368,260 827,660 627,790 622,050 661,860 306,680 1,418,360 1,015,250 4,889,640 7,428,260 7 568,950 September 393,100 777,690 684,590 554,570 590,380 530,8311 7,326,570 7,770,310 7,095,860 October 663,120 971,780 718,190 645,310 738,700 699,040 639,030 4,630,550 6,747,240 5,368.800 November 460,720 320,890 972,310 503,230 461,580 485,100 315 930 1,364,310 4,373,390 7,088,283 3,424,125 December 648,820 849,160 1,105,910 333,490 67,553 1,605,090 5,034,600 4,924,320 4,507,580 Annual 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 P35.632.525 Average P 511,229 P ' 627,557' P 773,380 P 754,438 P 686,205 P 474,356 P 1,015,513 P 3,960,575 P 6,158,937 P 6,899,381 P 5,938,754 build them and charge the cost to the landowner in the form of a special assessment payable in ten yearly instalments without interest. The old special assessment law, relating to municipal public improvements in general, has been extended to include national roads in the City of Manila, built by the central government. The Municipal Board is now empowered to “tax and regulate” the business of letting and subletting lands and buildings The general taxing powers of the Municipal Board have been extended to include practically any business, trade, or occupation. As a result, new in dustries are tending to seek sites in the suburbs to avoid the risk of unanticipated local taxation. Electric Power Production Manila Electric Company System By R. J. Baker Manila Electric Company 1941 Average — 15 316 000 KWH January February March April . May June July . . August September October November December . TOTAL 361 510 000 Kilowatt Hours 1949 1948 33 745 000 27 301 000 31 110 000 26 021 000 34 776 000 26 951 000 33 048 000 26 871 000 34 453 000 * 28 294 000 34 507 000 ** 29 216 000 31 143 000 31 993 000 32 012 000 33 943 000 32 661 000 35 104 000 •• Partially estimated June output was the same as May, as May has an extra day. June output was slightly more on a day-to-day basis. The increase over June, 1948, of 5,291,000 Kwh, or 18%, is less than the increase in previous months. Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for May, in the aggregate, show ed an increase over the preceding month of April and a decided increase over May of last year. 109 ships lifted 248,593 tons of export cargo dur ing May of this year, as against 93 ships and 159,065 tons for May last year. Exports by commodities, during May, as com pared with May last year, were as follows: 1949 1948 Alcohol.................... 71 tons 370 tons Coconut, desiccated 9,544 ” 7,849 ’’ Coconut oil ... . 7,716 ” 2,108 ’’ Concentrates, copper................. 2,322 ” — Concentrates, lead...................... 54 ” — Copra....... 59,604 ” 47,328 ” Copra cake, meal . . 6,204 ” 4,309 ” Embroideries .... 119 ” 119 ” Empty cylinders . . 470 ” 247 ” Fruits, fresh .... 350 ” 78 ” Furniture, rattan .. 497 ” 807 ” Glycerine. 301 ’’ 112 ” Gums, copal .... 64 ” 124 ” Hemp....... 46,309 bales 87,042 bales Household goods .. 274 tons 134 tons Junk, metal .... 9,198 ” 12,663 ” Kapok....... 164 ” 88 ” Logs........................ 1 402,188 board feet 1,542,437 board feet Lumber................... 1,895,942 ” ” 237,418 ’’ Molasses................. 15,044 tons — Ores, chrome .... 32 580 ” 18,500 tons ” iron.............. 12,598 ” — ’’ manganese . . 1,998 ” 1,900 ” Pineapples, canned . 1,633 ” 3,090 ” Rattan.................... 91 ” 127 ” Rope........................ 244 ” 554 ” Rubber................... 144 ” 167 ” Shells...................... 51 ” — Skins, hides .... 148 ” 138 ” Sugar, raw............ 70,084 ” 22,516 ” Tobacco................... 530 ’’ .653 ” General cargo . . . 3,803 ” 19,911. ” 291 Mining By Chas. A. Mitke Consulting Mining Engineer May Production: Acoje Mining Co. — 5,500 tons, worth ................. P153.000 Benguet-Balatoc ........................................................... 648,970 Mindanao Mother Lode ................................................ 204 25S Lepanto Consolidated .................................................... 501,000 Atok-Big Wedge Mining Co.......................................... 362,198 Consolidated Mines ....................................................... 515,600 Surigao Consolidated .................................................. 227,016 Gold and silver production for the first four months of 1949, according to Bureau of Mines fi gures, amounted to P5,359,316, which is at the rate of approximately P16,000,000 annually, as compared to £76,838,987 in 1940. Base-metal production for the first four months of 1949 was valued at £5,413,336, or approximately £16,240,000 annually. This gives an estimated total production from all metals of around £32:000,000 for the year, or about one-third of the 1940 production, and consi derably less than the estimates for 1941 and 1942. The base-metal returns for 1949 were largely made up of shipments of Lepanto Consolidated cop per concentrates and Acoje metallurgical, and Masinloc refractory, chrome production. Manganese shipments during the four-month period only amount ed to 5,900 tons, which would approximate a total of 18,000 tons for the year, as against 52,166 tons in 1940 and much larger shipments in 1941. Unfortunately for Philippine base metals, the chrome market in the United States at the present time has turned “soft”, and buyers are not even in terested in high-grade metallurgical chrome. Pro ducers who happen to have contracts are still able • to ship, but others cannot sell their product. Manganese, if obtainable in quantity, could be sold, but there are no large deposits of commercial manganese in the Philippines. There is very little high-grade metallurgical chrome in the Philippines. Furthermore, the pro ducers of both chrome and manganese are faced with severe competition from countries such as Rus sia, Turkey, Africa, and Brazil, where there are much lower labor costs, and freight rates to the United States are much less than from the Philip pines. Japan, before the war was the only market for low-grade chrome and manganese, and also for Phil ippine iron ores which cannot compete with the United States ores because of the long haul and high freight rates. Since the war, however, SCAP has insisted on United States specifications for base metals sold to Japan, and as a consequence Philippine producers are having a hard time. Philippine iron producers formerly sold large tonnages of raw ore to Japan, but now, where India and the United States receive individual contracts as large as 800,000 tons, Philippine producers can only get comparatively small orders. This, for va rious reasons,—high sulphur content; low iron (be low 60%) content, and so on. Both Hainan Island and India produce a more desirable ore than the Phil ippines. The impression prevails that “just as soon as War-Damage payments to the closed-down mines are completed, mining will return to its pre-war status as the second largest industry in the Islands”. This is an erroneous idea. A number of the pre-war gold producers, waiting for War-Damage payments, are now, due to high production costs, in the sub marginal class, and even if rehabilitated most of them will not be able to “make the grade”. WHAT THE ISLANDS NEED TO ENABLE THE MINERAL INDUSTRY TO EXPAND, IS NEW MINES TO TAKE THE PLACE OF THOSE THAT WILL NEVER OPERATE AGAIN. From time to time promising prospects are un covered, but without funds to prove them up in depth, they are returning to jungle. If we are to be suc cessful in the rehabilitation of our mining industry, the rate of new discovery must be drastically in creased. From 1932 to 1936 the Philippines experienced an unprecedented mining boom. Oddly enough, this oc curred at a time when the rest of the world was going through its greatest industrial panic. Many ex cellent gold-and base-metal prospects were uncovered which later became good producers and dividend pay ers. THAN GOLD AND SILVER METALS AND ORES OTHER 292 THE following article, “Investment Opportunities in the Philippines”, by Director of Commerce S. R. Mendinueto, published in this special four-page section of the American Chamber of Commerce Jour nal, serves as an introduction to a series of articles which will aim at presenting a concise and authoritative survey of a number of investment fields in the Philippines which are believed to be especial ly premising. Investment Opportunities in the Philippines By S. R. Mendinueto Director of Commerce THE Philippines today offers manifold and bright opportunities for new investment in di verse fields of activity. The havoc and de struction which th i last Pacific war wrought to the national economy has increased tremendously these investment opportunities which have been awaiting enterprising capital. These opportunities embrace such basic industries as agriculture, fishing, lumber ing, mining, and manufacturing. In addition, invest ments in transportation (especially water and aerial) and communications, building construction, trading, and other numerous services contributing to the re habilitation of the country’s economy promise to be no less profitable than in manufacturing and other basic industries. So far as the natural resources and.potentialities of the Philippines are concerned, it may be pointed out that this country has vast undeveloped areas with enough raw materials and manpower to become a great producing and manufacturing nation. The truth is that the Filipinos are just beginning to tap the country’s economic wealth. To blaze the trail to economic progress and prosperity, the Philippine Government has blueprinted and is now sponsoring both short-range and long-range economic programs designed to bolster up production of agricultural and industrial products and to establish new and vital in dustries, the ultimate goal being not only to supply the maximum domestic needs but also to utilize the surplus products for export. Time and again, the Philippine Government has frankly admitted the nation’s need of foreign capital, especially American capital, and technical know-how. In this connection, it may be pointed out that the following conditions existing here besides the rich ness of the Islands’ natural resources and abundant labor supply, are favorable to foreign investment: (1) the financial stability of the Philippine Govern ment; (2) the sound currency secured by pegging the Philippine peso to the American dollar; (3) pre ferential trade relations with the United States for the next 25 years; (4) parity rights granted to Ame rican citizens, enabling them to enjoy the same pri vileges as the Filipinos in the development of the natural resources and the operation of public utili ties; (5) four-year exemption from taxes allowed by Republic Act No. 35 to new and necessary industries; (6) the hundreds of millions of pesos still to come in during the next two years from the War Damage Commission and other United States agencies; and (7) the adherence of the Filipino people to the de mocratic way of life and their hospitable attitude to ward foreign investors, especially American. AS in ar.y other country, there are certain restric tions in the Philippines on'the freedom of for eign investment, which are in the nature of safe guards against any possible ruthless or excessive ex ploitation of the country’s natural resources by any one, whether Filipino or alien, and those which are adopted as measures to maintain mutually just rela tionship between the Philippines and other countries. The Philippine Constitution, for instance, provides that no in,diyic|ua.l can purchase more than 144 hec tares of public land, that no corporation can buy more than 1,024 hectares of land, and that not more than 1,024 hectares of public land can be leased to an individual^1 Corporation, or association, and, if for grazing purposes, not more than 2,000 hectares. Cer tain other safeguards affecting the mining, forestry, and other industries are more or less common to other countries. AMONG the most promising fields of business activity in the Philippines are the following: Cattle-raising — Philippine imports of meat products before the war averaged 4,500 tons annual ly, valued at £2,600,000. Local production of meat (largely swine and carabao) in 1937 was 75,000 me tric tons. The livestock population suffered consi derable damage during the war. Cattle were reduced from 1,300,000 head to about 800,000; carabaos, from 2,900,000 to 2,000,000; and hogs, from 4,300,000 to 4,000,000. The Philippine Government has appro priated £2,500,000 to replace losses of cattle, carabaos, horses, and swine. The island of Mindanao offers favorable pros pects for the development of the cattle industry be cause of its extensive virgin lands, where grasses and legumes suitable for cattle-feed grow in abund ance. It is believed that the development of beef herds on this island would accelerate meat produc tion to the extent of supplying domestic requirements and possibly leaving a surplus for exports. Commercial fishing — Before the war the Phil ippines imported an average' of 15,000 tons of fish products Valued at £3,000,000, while the annual com mercial in-shore catch amounted to about 21,000 tons, plus the additional 25,000 tons of bangus produced in salt-water fishponds. The total annual requirements of fish from all sources are estimated at 54,000 tons. Prior to the war about 50% of the fish caught and distributed in the local markets was controlled by the Japanese. Since liberation, considerable progress has been made in the rehabilitation of the fishing industry, which is now almost wholly in the hands of the Fil ipinos; however, the supply of fish food still falls short of the normal domestic requirements, as indi cated by the high prices of fish in Manila, which are from 3.5 to 5 times pre-war. Further development and expansion of the fishing industry is being given particular attention by the Philippine Government through the recently created Bureau of Fisheries, formerly a small unit in the Department of Agricul ture and Commerce. For the fiscal year ending June 30, 1948, the Bureau of Fisheries reported a total catch of 19,717,740 kilos of fish of different types by commercial fishing boats of three tons or over, as compared to 18,640,252 kilos for the preceding fiscal year. The importance of the fishing industry in Phil ippine economy may be gauged by the fact that next to rice, fish is the most important element in the Fil ipino diet. As the waters of the Philippines teem with the richest varieties of fish that can be found in any single fishing ground in the world of the same area, it goes without saying that commercial fishing offers one of the most profitable investments in this country. Chemical production— The manufacture of in dustrial chemicals, such as sulphuric acid, caustic soda, soda ash, chlorine, nitric acid, hydrochloric acid, synthetic oil, and fertilizers offers further wide possi bilities for investment. There is practically no chemical manufacturing industry in this country at present; all requirements for industrial chemicals are being sup plied by imports, which ran to £20,000,000 annually before the war, and to £40,000,000 in 1946. It is al together possible that these products may be profit ably manufactured locally, as raw materials in the form of limestone, salt, fibers, starches, and poten tial sources of hydraulic power are available. The domestic production of chemicals will assume greater importance when the hydro-electric projects of the Philippine Government will have been set into opera tion. Under Republic Act No. 216, the proceeds of the proposed £176,000,000 loan being applied for from the World Export-Import Bank, have been earmarked for the following hydro-electric projects: 1. Construction of complete hydro-electric power plants at: (a) Ambuklao, Mountain Province .. P 48,000,000.00 (b) Itogon, Mountain Province .... 70,000,000.00 (c) Maria Cristina, Lanao ................. 23,400,000.00 (d) Lumot River, Laguna ................. 6,000,000.00 2. Erection and construction of a fertil izer plant ................................................. 28,600,000.00 Total ......................... P176,000,000.00 Of these projects the construction of the Lumot • hydro-electrict plant project has been started, and it was announced by the National Power Corporation that before the end of 1951 the plant will be in ser vice and will bring into the Manila area its entire 50,000,000 KWH. Manufacture of paints and varnishes — Paints, pigments, and varnishes were imported into the Phil ippines before the war at the rate of 5,000 tons year ly, valued at £1,800,000. In 1946, imports of these products reached a total of £3,800,000, as against £9,000,000 in 1948. Domestic production of paints before the war was negligible, being confined to 3 small plants producing 1,500 tons a year. The man ufacture of paints and varnishes appears feasible in view of the availability of raw materials suitable for the purpose. Philippine forest abound in gums and resins, while turpentine could be gathered from the Benguet pines. Lumbang nuts produce an oil simi lar to tung oil. In 1938, production of lumbang oil amounted to £310,000 for 2,000 tons of nuts. With the building boom still going on, which promises to gather greater momentum as more materials become available and costs go down, an industry to produce paints for local use faces bright prospects. Manufacture of paper products — The average yearly importation of paper in this country before the war was valued at £9,300,000. In 1946, paper imports reached a total of £23,000,000; £38,887,246 in 1947; and £44,714,054 in 1948, comprising news print, wrapping paper, book and printing paper, wall board, insulating paper, and kraft paper. There was one paper mill operated in connection with a sugar centra) before the war, which produced 15 tons of cellulose and 10 tons of paper per day from bagasse. The possibilities for investment in the paper and related industries appear bright in view of the avail ability of raw materials in the form of abaca waste, cogon grass, bagasse, and wood pulp. Increased local demand for newsprint, book and printing paper, pa per containers, etc., offers sufficient justification to the development of the paper industry in this country. At present, there is only one operating local paper mill, the one owned by the National Development Company, and it produces only wrapping paper. This began operating only shortly before the end of June, 1949. Manufacture of miscellaneous products — Oppor tunities for sound investments are also present in the manufacture of soap and toilet preparations, shoes and leather, glass and glassware, ceramic and clay products, wooden and rattan funiture, and plastics. These products, except the last one, are being pro duced locally on a small scale. These industries are at best still in the handicraft stage, but with suffi cient capital and technical skill they could be deve loped and expanded for supplying local demand and for purpose of export. Local production of soap before the war was 20,000 tons a year, while the output for toilet pre parations amounted to about Pl,400,000. In 1946, soap and toilet preparations valued at P13,800,000 were imported, compared to P14,000,000 in 1948. With increasing demand for these products, oppor tunities for investment in this line of activity can not be overlooked. Recently, a large American man ufacturer of cosmetic and toilet preparations estab lished a factory at Polo, Bulacan. Shoe manufacturing is an old industry in the Philippines. There were 3 plants in Manila before the war producing a combined output of 3,000 pairs daily, in addition to about 2,000 small shoe-and-slipper making shops with an aggregate production of 5,000 pairs a day. Two of. the big pre-war factories as well as a considerable number of small shops, were destroyed during the war. With an increased popu lation, present requirements for shoes exceed those of pre-war days, thereby necessitating additional facil ities to supply the demand. The establishment of a modern shoe factory with a productive capacity of 5,000 pairs a day, would seem to be a good opportun ity for investment. Two pre-war shoe factories have already resumed operation. The Philippine bottle-making industry was des troyed during the war. There were 16 glass factories operating in 1941, two of which were making bottles, and their combined output was value at P657,000 a year. Before the war, glassware imports exceeded Pl,000,000. Because of the increased demand for toilet preparations and for tableware and glass con tainers, aS well as the increased consumption of soft drinks and native wines, present requirements for bottles offer a bright prospect for investment in this industry. A bottling factory owned by Don Andres Soriano was established recently. Ceramic and clay products, mostly fire-brick and kitchenware, were imported into this country in 1946 in the amount of P2,400,000. Before the war, bricks and tiles valued at P758.000 were produced locally. De posits of clay and kaolin as well as chromite are known to exist in this country, and with these raw materials the production of ceramic and clay products could b.e further developed to provide for construction requirements. The manufacture of wooden and rattan furni ture is an outstanding Philippine industry. The ex cellent quality and workmanship of Philippine-made furniture are well known. Production of wooden fur niture in 1938 was valued at P4,400,000, while the output of rattan furniture before the war amounted in value to approximately Pl,000,000. The Philippines produces exceptional kinds of hardwoods suitable for furniture-making. In 1941, rattan furniture was ex ported to the United States and other countries in the amount of P530,595. After the war, exports of rat tan furniture amounted to P980,788 in 1946; P947,32$ in 1947; and Pl,311,722 in 1948. With the present demand for furniture to replace that destroyed or taken out of the country during the war, and the possibilities for export, there are ample opportunities for the expansion of this industry. Lumbering — Lumber is an important item in the reconstruction projects for the restoration of nume rous public, commercial, and residential buildings destroyed or damaged during the war. Present re quirements in lumber for construction and recon struction have been estimated at 4,500,000,000 board feet. Pre-war production of lumber and timber to taled 941,604,499 board feet, valued at P46,272,000, of which 754,000,000 board feet were used locally and the rest exported to foreign countries. It is believed that if more logging equipment could be installed and additional sawmills of higher capacity operated, the Philippine lumber industry could be brought up to an annual production of 2,000,000,000 board feet, an out put which could cope with domestic reconstruction re quirements. With the lifting of the ban for lumber exports in late June, a very lucrative business in lumber and timber production avraits enterprising investors who could put up the necessary capital and provide the ingenuity in intensively developing this industry. Mining — Extensive deposits of gold, silver, iron, copper, manganese, and chrome are found in the Phil ippines. In addition thereto, such non-metallic min erals as asbestos, gypsum, sulphur, limestone, clay, marble and building stones, coal, petroleum and as phalt, existing in greater or lesser quantities, com prise the mineral wealth of this country. In 1940, the total gold production amounted to P76,563,888; chromite, P2,661,764; iron, P5,633,728; copper, P3,487,701; manganese, Pl,287,Oil; silver, Pl,874,701. The total invested capital in all mines in 1940 was P156,000,000. The milling industry, however, suffered considerable devastation during the war, the plants being demolished or carried away by the enemy. Today, efforts -are being made to rehabilitate, the industry, but so far only a few of the pre-war companies have reported production. The Surigao Consolidated produced 19,148 tons of gold (mine ore) worth P279,253 in 1947, and 69,473 tons, valued at Pl,386,002, in 1948. Benguet-Balatoc and Taysan re ported no production in 1947, but in 1948 they pro duced 406,146 and 5,753 tons valued at P5,637,327 and P256,729, respectively. Atok Big Wedge also produced 91,599 tons worth P4,066,494 in 1947, and 157,146 tons, worth P4,618,016, in 1948. Mindanao Mother Lode likewise reported 11,400 tons valued at P444,246 in 1947, and 68,700 tons, worth P2,670,779, in 1948. Of the base metals, Acoje registered 10,000 tons, worth P330,000, in 1948, but none in 1947. Consoli dated Mining produced 189,499 tons, valued at P3,319,489, and 39,099 tons, worth P4,409,881, in 1947 and 1948, respectively. Lepanto also produced P2,033,600 worth of base metals in 1948 only. The value of mineral production totaled P8,109,482 in 1947, and P21,342,324 in 1948. The resumption of production of high-grade gold, silver, copper, asbestos, and lead, and the replace ment of equipment, reconstruction of buildings and mills, and the development of new mines are esti mated conservatively to require an investment of about P40,000,000. The recovery of the mining in dustry, which is retarded by lack of machinery, equip ment, and other essential supplies, offers an oppor tunity for sound investment. 'T'HE foregoing lines of industrial activities have A been presented, in a nutshell, as suggestive of the trends in post-war investment possibilities in the Philippines. It was intended merely to give a gen eral view of the industrial resources and potentiali ties of this country, awaiting the capital, technical skill, and ingenuity of future investors. It would be well, however, for any prospective investor to make a further study of other branches of industry or business which may appeal to him, as possibly show ing even better prospects for investment. 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PINPIN BETWEEN ESCOLTA AND DASMARInAS VENTURE CAPITAL along with good engineer ing in the selection of promising mining prospects, created the mushroom growth and brought a new major industry into being. That was what unlocked nature’s vaults and brought to light the prospects which later became producing mines. Today, we have lost that combination. There is no VENTURE MONEY, consequently, nature’s vaults remain locked. _____________ Lumber By Luis J. Reyes Philippine Representative. Penrod, Jnrdcn & Clark Com pany LAST month we reported the passage in Congress of H. B. No. 2816 and H. B. No. 2818, the for mer setting aside P400.000 for taking an in ventory of our forest resources, the latter amending Section 1833 of the Revised Administrative Code con cerning licenses for cutting timber for mining pur poses. Both bills were vetoed by President Quirino. In the opinion of the writer, H. B. No. 2816 was a wise piece of legislation that would have enabled, the Government to develop a more comprehensive system of timber administration with the aim of protecting future timber supply. H. B. No. 2818 was intended to clarify certain provisions of the Revised Adminis trative Code. As it is, mining companies are privi leged to cut timber from public forests free of charge even after development work has ended and produc tion started, a privilege not enjoyed by any other in dustry, not even by the lumber companies, which pay for all timber used in their operations from the time licenses are issued to them. Exports for the month of May amounted to 3,114,857 bd. ft., as compared to 2,540,725 bd. ft. for the previous month. Most of these exports, as usual, consisted of Philippine mahogany (tanguile and red and white lauan) of which 59% was sawn lumber, the rest round veneer logs. The May exports included some 250,000 bd. ft. of dao. The United States took about 70% of our exports, the rest went to South Africa, Canada, Hongkong, China, Japan, Formosa, Netherlands East Indies, and Belgium. Prices ranged from about $100 to $130 for the Common grades, f.o.b. Philippine ports, up to $140 to $170 for FAS and CLEARS. These prices are the lowest since liberation and seem to have reached a point when local producers will no longer consider it profitable to cut lumber for export. The quality of ex port stock is much higher than that sold in the local markets, and not only is export stock given an allow ance of 1/8 of an inch for every inch of thickness, but it must also be 60 days dry before shipment is allowed. The records of mills cutting for export show that only from 25% to 35% of their production is of the grade suitable for export. In spite of the low prices, how ever, the demqnd in the United States continues slug gish. Importers continue to be cautious and, lately, reports have been received from the United States to the effect that a shipment of Philippine mahogany was sold at $40 below the current market price, to the consternation of all Philippine exporters! How ever, most producers anticipate a bigger demand and believe that the present condition is the result of the general business recession. Philippine producers realize the need of greater and more vigorous efforts to re-introduce woods in the United States market. Among the measures to be taken is the placing of more advertising in lumber and trade journals. As a preliminary move, two of the older and larger associations have amalgamated and have adopted the name, Philippine Lumber Pro ducers’ Association, the members of which are res ponsible for about 85% of all lumber produced in the Philippines. The new Board of Directors of the As sociation are Antonio de las Alas, President; H. C. Pope, First Vice-President; Carlos Fernandez, Second Vice-President; A. W. Robertson and Tomas Morato, Directors, and Luis J. Reyes and Manuel Diaz, alter nates. IN the local market, wholesale prices were reported at P137 to P140 per M for white lauan and api tong, and P150 to P160 for tanguile and red lauans. At these prices, only those mills advantageously lo cated and efficiently managed can hope to make a margin of profit. Some producers operating under less advantageous circumstances find it impossible to compete in Manila and other bigger markets and pre fer to send their product to smaller centers of popu lation . Reports coming from Korea state that the price quoted by the winning bidder in a tender under SCAP for about 4,000 cubic meters of red and white lauans was $71.00 c.i.f., Fusan, Korea. This is $3.50 higher than the price of the logs sold to Japan earlier this year. On June 9, 1949, President Quirino issued Exe cutive Order No. 221, lifting the ban on exports. This means that anybody may now export timber any where, the only requirement being that the quality and grade must be certified by the Government through the Bureau of Forestry. In other words, all timber exported from the Philippines must be un der a Certificate of Inspection of the Bureau of Fo■restry. Copra and Coconut Oil By Manuel Igual General Manager, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company, Inc. May 16 to June 15, 1949 E left the last period with buyers gradually backing away from copra at $175 c.i.f.P.C. and $170 f.o.b., all for nearby shipment. Sellers were offering sparingly at about $5 higher, but were playing safe anticipating light supplies in June. The feeling among sellers was that until the heavier crops of July there might be a tight position for prompt deliveries, thus maintaining or improv ing prices. Unfortunately, however, demand for oil and con sequently for copra slacked off alarmingly. While prices maintained fair levels until nearly the end of May, copra was unable to stand the pressure of in creasing surpluses of domestic oils and fats in the United States plus prospects for bumper crops this year, and the record of the first half of June is one of steady decline to the point where by June 15 co pra could not be sold for better than $140 c.i.f.P.C. with sellers as usual asking $5 more. In spite of the fact that supplies actually were light, there was nothing to hold the market up, for European buyers were not interested in Philippine copra, and Europ ean business was chiefly confined to speculators covering in earlier commitments. 294 July, 1549 AMERICAN CHAMBER OF COMMERCE JOURNAL 295 Thus in one month we have a 20% drop in prices, a truly serious matter for the Philippine economy. Sellers for once were not generally caught long, and most of them sold sparingly on the decline and tried to keep in a slightly oversold position. For while hopes of reaction were real, sellers had lost much of their confidence. Nearly all the trading, which was on the whole desultory, was for immediate or early shipment, and what few future sales there were did not reach be yond mid-July. It was generally felt that July for ward copra would sell on a further declining market. Producers tried to stall the tendency by holding off harvesting nuts and making copra, but it was re cognized that this can be but a temporary expedient. All in all as the period ended, the outlook was ex tremely discouraging. WHAT is the trouble with Philippine copra and oil? Immediately after the war, the world was starved for fats, and the Philippine copra crop, lar ly through the efforts of the Copra Export Manage HAPPY DAYS for Jonathan Wainwright and YOU! Jonathan Wainwright and you will both find Pabst Blue Ribbon a pleasant, friendly companion. That fine, real beer flavor was achieved by 105 years of pioneering in the Art of Brewing and Science of Blending. By tasting, by comparing, you’ll see why millions have settled down to blended, splendid Pabst Blue Ribbon. _ _ Blue Ribbon_ _ _ _ _ _ F. E. ZUELLIG, INC. 55 ROSARIO ST., MANILA Hear MUSICANA - DZRH SUNDAYS 9 P.M. 296 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 ment Corporation, was the first large fat supply to be rehabilitated. Thus our copra commanded unheard of prices, for everybody needed it. Times have changed, and more quickly than anticipated. Suc cessive bumper crops in the United States, the reha bilitation of the Dutch East Indies, the French co lonies, and British commonwealth nations, good whale catches, as well as other factors, have brought the world to a point where American supplies of oils and fats are actually greater than pre-war. Europe alone is still below 1941 levels. But Europe is short of dollars, and is depending more and more on supplies from within the sterling bloc. The Philippines can only sell in dollars, and its customers are therefore limited. Consequently, it must rely on the Ameri can market where coconut oil is still selling at 5 cents a pound, excise-tax paid, above cottonseed and soya oils and 10 cents a pound over tallow, which can largely substitute for coconut oil. Therefore, users of coconut oil are buying minimum quantities and await ing the day when coconut oil prices are what they consider reasonable, and more in line with compet ing fats. When that time comes, demand for copra and coconut oil will increase sharply, but there is a considerable and rough road ahead before then. Mean while, the current price-recession in the United States is a contributing factor toward lower prices. Under these conditions copra prices must depend on the oil market, and during our period oil declined, even for prompt delivery, from 14i/» cents f.o.b.P.C. to 12-3/4 cents, with futures selling down to 10-1/2 cents and 11 cents for August delivery. But there is very little oil in the United States today, and conse quently buyers, even on a hand-to-mouth basis, have had to cover immediate requirements with tank-car purchases at premium prices, there being sometimes a spread of 4 cents between spot and future quota tions. This is an abnormal state of affairs and re sults only from the scarcity of spot stocks. Philip pine mills are generally unable to take advantage of spot sales, but must sell bulk tanks for future delivery. But Philippine mills did sell fair quantities of oil for July and early August arrivals at fair but not par ticularly profitable prices. LOCAL markets held fairly firm for copra at about P32 until the end of May. In June, how ever,. both Manila and Cebu prices gradually sank to about a P26 level by the 15th. There was rather more copra available than expected in the Manila area, due to less consumption by desiccators, but the Cebu district remained short, as predicted. For the first time this year, exports of copra in May were greater than the corresponding 1948 month, to totaling 59,604 tons as contrasted with 42,836 in May, 1948, and distributed as follows: United States Pacific Coast ............... 27,813 Atlantic C< a t ............. 1 679 Gulf Coast ................... 3,803 Total ........................... 33,295 Japan ................................................ 500 Europe .............................................. 20,850 Africa ................................................ 4,504 Balboa ................................................ 455 Grand total—54,604 tons Atlantic, Gulf & Pacific Company of Manila FOR 48 YEARS THE GREATEST NAME IN ENGINEERING & CONSTRUCTION ENGINEERS CONTRACTORS MANUFACTURERS SPECIALIZING IN THE FABRICATION AND ERECTION OF BRIDGES, TANKS AND BUILDINGS Operating: MACHINE SHOPS FOR CONSTRUCTION AND REPAIRS' FOUNDRY FOR CAST IRON, BRASS & BRONZE STEEL PLATE & STRUCTURAL STEEL SHOPS MARINE REPAIR SHOPS WOOD PRESERVING PLANT A"oRro"4rioSLO"'t" ®s°"G ‘■WlSi c°- “F CHcor"or4tioBn“",>£ll C°£S"VG hoct com’“pre- brothers. MORSE S F,"oK»;tWG bteel “’oK’h/ “R»ver UISTlduuroits FOB ■ S comXv SEfiv,oe u?aa,v reectrb 3"co&" "» PRo’oucts A0HESJVE equipmeht krp"g I works”N BftAss I »GGK BO v°”< corporation I COMEXECUTIVE OFFICES • ENGINEERING DIVISION STRUCTURAL & MACHINE SHOPS Barrio Punta, Santa Ana, Manila Tels.: 6-75-31 • 6-75-32 MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muelle del San Francisco & 23rd Street, Port Area, Manila Tels.: 2-83-64 • 2-84-82 July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 297 Exports of coconut oil totalled 7,716 tons as con trasted with 2,106 tons in May, 1948, the distribution being as follows: United States Pacific Coast Atlantic Coast ................................ Europe ..................................................... Africa .............................................. 297 5,801 1,115 503 Total ......................... 7,716 tons Copra cake and meal remained steady during the period at $54-55 c.i.f.P.C. and $36-37.50 f.o.b. for Europe. Some small buying interest for Denmark was in evidence as the period closed, particularly for July shipment, but indications from the United States pointed to, if anything, an easier market. Although the immediate market is undeniably narrow, and subject to reaction on the slightest pres sure, if there are any signs in evidence pointing to better prices for copra during the third quarter, they are well hid at present. As long as American buyers are in the driver’s seat, and as long as coconut oil is out of step with tallow and other oils in American markets, it will be hard to move the Philippine crop without serious prices concessions. Undeniably, cot tonseed, soya, and tallow are very cheap. But the tallow production is nearly twice pre-war and these other oils are substantially above any previously known levels. Thus, while these oils and fats may advance, the chances for a decline in coconut oil are better. But, as we have seen so many times, mar kets these days are not governed by logic alone, and it is still highly possible that wholly unanticipated factors may come in, and completely upset the pre sent pessimistic outlook. For the good of Philippine economy, this is something to be hoped for. ON June 13 the copra and coconut oil industries lost one of its most stalwart and experienced friends in the death of Earle A. Seidenspinner, fo merly of the Visayan Refining Company, the Copra Milling Corporation, and the Philippine Refining Company of the Philippines, and in late years, Pres ident of El Dorado Oil Works of San Francisco. He will be missed by a great many of us out here, who have known him and dealt with him for over 30 years. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paid Philippine Corporation THIS report covers the period from May 15 to June 15, during which time copra reached the lowest values since late 1946. This reflects a healthy market condition in that copra is now following fats and oils all over the world. The raw-nut market followed copra steadily and supplies remained quite plentiful, which aided the market decline. Contractors and planters made ef forts to resist the falling market, but they have had to be satisfied with present prices, which, while not lucrative, do provide fair profits and have taken them out of the profiteering class. These new low prices in copra and raw-nuts will certainly affect the economy of the Philippines, and ALLIS-CHALMERS WORLDS LARGEST LINE OF MAJOR INDUSTRIAL EQUIPMENT MOTORS for Dependable Power This squirrel cage motor is one of the complete line of Allis-Chalmers motors — known for their long servic? and high efficiency. All types of motors — wound rotor, direct current and synchronous — are made in ratings from one to 500 hp, and up. They are available in totally enclosed, explosion-proof, or splash-proof models. CONSULT US FOR ALL ELECTRICAL NEEDS Representing Allis-Chalmers complete electrical lines we offer — motor control, trans formers, switchgear, circuit breakers, welders, induction heaters. Inquiries will be appreciated. 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 2-67-59 Electrical Equipment Motore and Texrope V-Belt Drives Transformers 298 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 most experts expect to see commodity prices drop in line with the buying-power of copra. Already plant ers are reducing the.r ideas of renumeration for work on the plantations, and so far no labor difficulty has occurred. The capacity of all manufacturers has continued at about 75% during the period because of high in ventories in the United States and the possibility of lower prices have kept consumers from carrying large inventories. Labor disturbances continue and the period co vered one strike and several threatened sympathy strikes which failed to materialize but kept manage ment jittery. The greatest threat to the industry seems to be labor difficulties, as pricing and costs have come in line with consumer-reach; as soon as inventories are adjusted business will be more secure. The following statistics indicate the shipments for the months of M'ay: Shippers Franklin Baker Co. of the Philippines .... 3,613,560 lbs. Blue Bar Coconut Company ......................... 309,500 ” Peter Paul Philippine Corp............................. 3,311,600 ” Red V Coconut Products, Ltd......................... 1,861,300 ” Sun-Ripe Coconut Products, Inc...................... 991,500 ” Standard Coconut Products Corp..................... 140,000 ” Isabelo S. Hilario .............................................. 0 Cooperative Coconut Products, Inc.................. 550,600 ” T a b a c a 1 e r a ........................................ 272,080 ” Luzon Desiccated Coconut Corp...................... 348,900 ” Universal Trading ............................................ 10,000 ” Coconut Products .............................................. 92,500 ” 11,501,540 Sugar By S. Jamieson Alternate Secretary-Treasurer, Philippine Sugar Association THIS review covers the period from May 31 to June 30, 1949. New York Market. May closed with the market very quiet but the undertone was steady. All lots offered at 5.85c4 had been cleaned up and sellers were firm in their ideas of 5.90c * , at which price there were approximately 100,000 tons in sight for arrival from the end of June to the end of August. Refiners showed no interest above 5.85c * . By June 2, however, an easier tone developed and on June 3 sellers let go of about 25,000 tons for August arrival of Cubas, Puerto Ricos, and Philippines at 5.85c * . This brought out other offerings at the same price, which were un taken. The situation continued to be uncertain. Early in June the C & H Refinery at San Francisco endeavored to line up Philippine sugar for shipment or diversion to their refinery because of labor trou bles in Hawaii having halted deliveries of raw sugar from there. On June 10 it was reported that the C & H Refinery had bought approximately 25,000 tons Philippines for diversion to San Francisco, and all offerings at 5.85c * were withdrawn, sellers’ idea again being 5.90c * . This situation continued up to the end of June. The refined position was not too clear and refiners hesitated to go up to 5.90c * for raws, although the equivalent of 5.90c * New York was paid by C & H for delivery at San Francisco. 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 ★ ★ ★ July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 299 Quotations on the New York sugar exchange for the period May 23 to June 23 under contracts Nos. 4 and 5 were as follows: Contract No. /, (World Market) High July ............... 4.17 September .... 4.10 March ............. 3.8G May ............... 3.70 July ............... 3.67 Low Close Sales 4.07 4.07 32,450 tons 4.06 4.04 13,200 ” 3.67 3.65 9 850 ” 3.70 3.64 50 ” 3.60 3.60 100 " 55,650 tons July .......... September November Decembei March . May July . . . 5.48 5.40 5.49 5.42 5.48 5.44 5.42 5.36 5.18 5.10 5.15 5.10 5.16 5.10 5.40 40,800 tons 5.42 50,700 ” 5.44 150 ” 5.34 350 ” 5.09 10,500 ” 5.09 5,350 ” 5.09 8,100 ” 115,950 tons The New York sugar exchange will put a new contract-form into operation probably on July 10. This will be called Contract No. 6 and will call for delivery ex ship at a refinery or licensed warehouse pier of 50 tons of in-quota raw sugar, without duty. Local Market, (a) Export Sugar. There was continued keen competition for the small balance of export sugar still available, and buyers are offering P13.65 ex mill warehouse. (b) Domestic Sugar. The market held firm at P17.50 to P18 per picul for centrifugal and P20 for washed sugar. General. The Associated Steamship Lines estab lished a temporary sugar freight rate to San Fran cisco of $12 on raw sugar. Further negotiations toward the enactment of a new international sugar agreement were held in Cuba during June, and a meeting of the International Sugar Council is scheduled to be held in London during September, when apparently an effort will be made to secure a new agreement which will allocate the sugar markets of the world among the sugar export ing countries. The Philippines, having a secured market under the Philippine-American Trade Act, has no vital interest in this matter as long as this country is not producing enough sugar to fill its United States quota allotment. Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period May 16 to June 15, 1949, during which a dull and sagging market was experienced. In New York, prices on the average closed l/2d to 3/4<? below those ruling on May 15. This tendency was principally caused by the apathetic attitude of consumers brought on by the extremely poor demand for finished pro ducts. Despite the rather limited buying of United States consumers during the past few months, stocks of both raw abaca and the finished article are high. The poor demand for rope coinciding as it does with a declining tendency in all commodities, makes man ufacturers determined to buy only enough to cover their immediate requirements—which are very limited. H. E. HE ACOCK COMPANY announces with great pride: HEACOCK’S The Store of Quality now sells the NEW GRAY MAGIC R0YAL "The new TYPEWRITERS: Standard and Portable GRAY MAGIC RgYAL betters the best!” ^f^EACOCKCO. The Store of Quality 454 Dasmarinas Phones: 2-79-78 & 2-79-79 16th & Atlanta Sts., Port Area Phone: 2-94-89 300 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 The SCAP fiscal year ends June 30, and as the funds available for purchasing abaca have been fair ly well depleted, it has bought rather less during the period than usual, despite the reduced prices asked by exporters. During the first half of the period there was some demand from Europe for June shipment to complete ECA allocations for the first half of the year. Once this demand was filled, European interest faded away, and at the time of writing, a weak and uninterested market rules in London. In the Philippines, the market declined on the average about P2.50 a picul, in line with reduced prices in consuming markets. Provincial dealers, however, continue reluctant to accept lower prices, and talk up the angle of small production. What pro ducers fail to take into account is the fact that abaca cannot escape the general deflation of all raw mate rials. At the close of the period, provincial markets became distinctly nervous and sellers began to lower their ideas. The following figures give an indication of the price changes recorded during the month: Philippine provincial quotations, June 15: Per Picul Basis Loose Davao I . . . . P61.00—Down P3.00 per picul from May 15. Davao Jl . . . P60.00—Down P2.50 ” ” ” ” ” Davao G . . . P53.00—Down P2.50 ” " ” ” ” Non-Davao I . P62.50—Down P3.00 ” ” ” ” ” Non-Davao G . P45.00—Down P3.00 ” ” ” ” ” Non-Davao K . P27.50—Down Pl.50 ” ” ” ” ” New York quotations, June 15: Per lb. c.i.f. New York Davao I . . . . 2814< * —Down per lb. from May 15. Davao Jl . . . 27 —Down 3/4<f ” ” ” ” ” Davao G . . . . 25<# —Down V2<- ” ” ” ” ” Non-Davao I . 2814( * —Down ” ” ” ” ” Non-Davao G. 21%i*—Down ” ” ” ” ” Non-Davao K. 15<? —Down ” " ” ” ” Production for May, 1949, was 41,174 bales—a decrease of 6,949 bales from April, 1949. Non—Davao balings totaled 22,907 bales—down 6,791 bales from April. Davao balings were 18,267 bales—down 158 bales from April. Exports for May amounted to 38,986 bales. Production for the first five months of the year amounted to 235,794 bales, against exports of 220,965 bales for the same period. Tobacco By the Conde de Churruca President, Manila Tobacco Association ON the 10th of this month (June), Secretary of Industry and Commerce Balmaceda and Sugar Quota Administrator Bunuan held a special meeting with businessmen to discuss the export sit uation and the possibility of filling the Philippine ex port quotas, some of which have hardly been used at all. Two points were unanimously brought forward; the present high cost of production and the high shipping rates which combined make competition in Jo Help tya technical and business magazines Every day alert industrial men and engineers all over the world are finding in the following tech nical journals the kind of information they need to increase production, reduce costs, and improve ■The ,-Hill DIGEST, an _ monthly publication (1 yr.—P10.00; 3 yrs.-P20.00) can be particularly valuable to you. This compact, interesting “Digest” is more than just another magazine—it is a service. A service restricted to overseas ibers and designed to keep iers in contact with the world-wide developments *, industry, The Magazines of the World — At One Place — At One Store! Prompt, dependable subscription service. TEL. 3*22-51 TANDUAY AT VERGARA QULAPO, MANILA July, 1U49 AMERICAN CHAMBER OF COMMERCE JOURNAL 301 foreign markets practically impossible for some producers. In the case of a manufactured product like cigars, the high cost of labor is an especially import ant factor, the more so as the time is not judged ripe for the introduction of a greater mechanization. The situation will remain difficult at least until the price of rice has been sufficiently reduced. Rice plays a double role in the tobacco industry because the to bacco planter, when the price of rice is high, has either to sell his tobacco at a higher price to live or to devote a larger part of his land and time to raising rice himself. At that, he is in a much better posi tion than the workers in the factories who have only their wages to depend on. And if the price of native tobacco is high, the tobacco factories find it more difficult to compete not only with imported cigarettes but with imported leaf. There are so many workers involved that their fate must be taken into consideration if the price of native tobacco remains as high as it has during the past few years. As to the quota situation, the factories now in operation have the capacity to fill their individual quotas, but there are a number of non-operating fac tories which together hold more than one-half of the total quota. The figures follow: Cia. Gral. de Tabacos de Filipinas . Quota: La Flor de la Isabela ........................ ” La Colonial ........................................... ” La Alhambra ...................................... ” 31,255,534 cigars 58,227 804,535 29,369,257 Those not in operation: Helena Cigar Factory ..................... El Oriente ........................................ La Flor de Intal ............................. La Yebana ........................................ Quota: 123,803,897 cigars ” 2,378,434 ” 760,917 ” 804,535 ” Total-Quota: 127,747,883 cigars It will be seen that the operating factories cover around 30% of the quota, (which amounts to about 200,000,000 cigars) so it is obvious that the quotas owned by factories that could not employ them even if conditions were favorable, represent 70% of the total. Leaf and Stripped Tobacco As per Order No. 27 of the Quota Administra tion, dated January 17, 1947, the yearly quota is dis tributed as follows: Helena Cigar Factory .............................. 1,794,124 Alhambra Cigar and Cigarette Factory 1,376,909 Aguado Hermanos .................................... 53,667 Bunning & Co., Inc...................................... 2,201,542 Go Fay & Co............................................... 113,311 Manila Tobacco Trading ......................... 824,637 Minerva ...................................................... 20,653 By Mail ...................................................... 1 Government Disposition ........................... 115,156 6,500,000 Total - Quota: 61,487,553 cigars 302 ___________ AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 Against these quotas the following shipments were made: ,19.'f7 19 W 1.9419 Total . Helena Cigar Factory . Alhambra Cigar and 336,495 28,128 22 364,645 Cigarette Factory . .. 3 — — 3 Aguado Hermanos ....... — — Bunning & Co., Inc. ... 817,907 186,096 330,605 1,334,608 Go Fay & Co................. — — — — Manila Tobacco Trading 13,500 — — 13,500 Minerva ......................... — — — — By Mail ......................... — — — — Government Disposition . 53 9 1,000 1,062 TOTAL SHIPPED. 1,713,818 From this it can be seen that in about 2% years during which a total of 16,250,000 lbs. should have been shipped in order to fully cover the quota, only 1,713,818 lbs. were delivered, or 10.55% of the total. The reasons for the inability of the quota holders to fill their quotas were: You’ll aenee 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! SMifOELL^eb'Xto. TRADE AND COMMERCE BLDG .MANILA 1. United States buyers are almost exclusively interested in stripped tobacco from Cagayan and Isabela. Weather conditions in these provinces during the past three years were so unfavorable for tobacco that only 1/3 to 1/2 of the normal crops were produced although farmers put out enough seedlings for harvesting crops of from 250,000 to 300,000 quintals. These crop shortages together with the fast-diminishing stocks of previous crops caused prices to rise beyond those which American buyers were willing to pay. In other words, Philippine tobacco priced itself out of the American market. 2. Ocean freight charges were increased to such an ex tent that the charges to the U.S. East Coast are now 40% higher than those to European North Atlantic ports, which fact contributed to the high c.i.f. costs which Philippine pro ducers had to ask for their stripped tobacco. 3. Stripped tobacco pays 3 different government fees: a. P0.50 per .100 kilos Internal Revenue Inspection fee before the tobacco is stripped. b. P1.00 per .100 kilos Internal Revenue Inspection fee when the stripped tobacco is exported. c. P0.55 per .100 kilos License fee to the Philippine Sugar Administration. The outlook for covering the quota for 1949 ia not encouraging. Advance information received from United States buyers indicates a substantial reduction in prices w,hich would force the Philippine producers of stripped tobacco to buy at considerably lower prices than last year. Whether this will be possible, is dif ficult to say at this moment. As every quota holder, old or new, has to face the foregoing facts, we believe that the inability to cover the entire quota, or a large part of it, cannot be met simply by a redistribution of the quotas, but only by adjusting the price of leaf-tobacco to the real ities of the world market. Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Inc. THE principal item of interest in imported food stuffs at present is the very heavy arrivals of wheat flour and canned milk in the Islands dur ing the month of June. Visible flour stocks today are sufficient to cover consumers’ requirements until the end of September at least. The market is very heavily overstocked. There has been very little ordering done by importers these several weeks and it is unlikely there will be any ordering in volume before late August. The very considerable disparity in price be tween Canadian and American flour is also to be noted. Canadian flours are being offered, after making allowance for Customs import duty, at prices from $0.25 to $0.50 per 100 pounds cheaper than equivalent American grades. The government loan value on wheat in the United States maintains an artificial price so much higher than in other wheat-producing countries that American export flours are being priced out of the market, and unless some method of subsidy or other protection for American flour exporters is arranged, it is apparent that a very large portion of the business they have previously enjoyed will pass to Canada. As regards canned milk, the stock situation is very much the same as in flour. There have been July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL very heavy arrivals during the last 60 days not only of the well established brands in the market but also miscellaneous brands from California which ordinarily enjoy only a very small sale here. This California milk for some little time now has been offered at prices from $0.45 to $0.75 per case, c.i.f. Manila, lower than for the established brands. Information is that California condensaries are carrying very ex cessive inventories of milk and are forced to unload regardless of loss. As in the case of flour, milk stocks actually in the Islands today are sufficient to fill con sumers’ requirements for at least 90 days. Import controls for the second half of 1949 have been extended to include additional commodities be yond those previously listed and the quotas established for the first semester of the year in many cases have been reduced for the second semester. An item seriously affected in foodstuffs is vegetables. Accord ing to a circular just issued, all forms of vegetables are now placed on the restricted list and importation will only be permitted up to 60% of the quantities im ported during the basic period. Incidentally, the basic period importation has been changed and is now fixed as the average annual importation of each im porter during the three calendar years 1946, 1947, and 1948. According to the circular, vegetables in all forms will be placed under license and this includes such related items as canned vegetable soups, although pickles and condiments are specifically excluded. Potatoes are also excluded from the heading of vege tables and free import will be permitted. Onions which haa been restricted, for the period of May and June only, are now to be restricted until the end of 1949. It is generally considered that the proposed restriction on imports of vegetables — both fresh and canned — will work a very serious hardship on the public in general as the local production of fresh vege tables is far from sufficient to fill the needs of the public. A. decided shortage of vegetables and possible profiteering on the part of dealers is generally forecast. There is no change in the status of canned fruits except that the importation of canned pineapple has been restricted to 10% of importations during the basic period. This will not work any hardship at all on the public as the California Packing plant in Min danao could easily furnish far greater quantities than the total consumption. The canned and bottled beer quota previouslyfixed at 60% of importations during the basic period has now been reduced to 40 %> only. Wholesalers continue to report sales as being very limited in quantity. Retailers, however, report a slight pick-up of sales during the last week and expect a material .increase th;s month with the opening of the public schools. Automobiles and Trucks By C. Harold Helling General Motors Corporation UNITED STATES automobile and truck produc tion reached 2,493,670 units during the first five months of 1949, a record mark, surpass ing the 1948 mark for the same period by approxi mately 500,000 units. 10-INCH SUI’ER-QUIET FAN Plenty of cooling air whirled your way. by quiet Vortalex blades—ex clusive with G-E fans. Sturdy, streamlined blade guard. 2-speed switch. Felt-covered base. 12-INCH SUPER-QUIET FAN Whisper—quiet Vortalex blades, driven by a powerful G-E motor, hoosh volumes of cooling air for your comfort. 3-speed switch, for ready adjustment of air move ment. AMERICAN FACTORS (PHIL) INC MARY BACHRACH BLDG 25TP °T - ~POR-r AREA ■ TCI ■ ■ Hotpoint radios make tuning in Over DZRH, let’s make it a date A real nice treat on “Spell to Win.” X Every Sunday night at eight. BACHRACH MOTOR CO., INC. PORT AREA, MANILA ★ NASH-ENGLISH AUSTIN AUTOMOBILES ★ WHITE-FEDERAL-NASH TRUCKS -------------------- OPER A TING-------------------RURAL TRANSIT PASSENGER—FREIGHT SERVICE BETWEEN MANILA—APARRI AND BMC TAXI CABS 304 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 "A BANK IS KNOWN... With this record-breaking production, the huge back-log of orders which the various manufacturers have had is disappearing rapidly. From reports re cently, some manufacturers are experiencing diffi culty in moving all of their production, which would indicate that the United States is back to a buyer’s market. Here in the Philippines, as elsewhere throughout the world, some makes and models remain in short supply. However, with production continuing at its present pace, this situation should be relieved shortly. According to a recent tabulation, more than 2,000,000 cars have been sold in the United States with automatic or semi-automatic transmission since these were introduced in 1948. Textiles By James Traynor THE slight improvement which was noted during May continued to accelerate during June. The position generally has been strengthened by comparatively small arrivals and increased local sales so that inventories have continued to drop. Local prices have increased somewhat on many grades, and this, together with lower prices in New York, brought local selling prices into line with replacement costs. During June importers showed more interest in placing new contracts for July and August shipment. Caution still is being used and the competitive situa tion has become keener. This healthy attitude should have its good effects on future operations and will undoubtedly prevent a recurrence of the overstocked conditions which led to the extraordinary drop in pri ces which ruled during the months of February through April. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda This film will take your pictures •• .TONIGHT! The ai.iazing speed of Ansco Superpan Press film makes night photography easier, surer, more enjoyable. It will enable you to take indoor pictures that you never believed possible . . . and with our expert developing and printing service, it’s easy to get crisp, clear, beau tiful prints. Better stop in today. BOTICA BO1E, Inc. Photo Department On the Escolta, Manila CEBU • ILOILO ■ LEGASPI • DAVAO AMONG the bills passed by Congress and approved by the President are the fol lowing: Senate Bills 311 — Exemption from taxation and claims of creditors, of benefits to persons residing in Philip pines derived from the United States and administer ed by the United States Veterans Administration. (Now Republic Act No. 360). 371 — Extension to December 31, 1949, for re construction of corporation and partnership records. (Nowr Republic Act No. 350). 425 — Amending forestry law re grouping of trees so that the Directory of Forestry may make changes every three years instead of five years as now provided. (Now Republic Act No. 370). House Bills 1209 — Amending the Internal Revenue Code, re pealing tax on skimmed milk. (Now Republic Act No. 344). 1460 — Creating a Bureau of Industrial Safety, authorizing reasonable inspection fees to be fixed by Department of Labor; also giving Department power July, 19 <9 AMERICAN CHAMBER OF COMMERCE JOURNAL 305 to order removal of hazardous buildings, tanks, ap pliances, etc. (Now Republic Act No. 367). 1461 — Amending Section 259, Internal Revenue Code, re franchise tax to cover franchises of indivi duals as well as corporations, and amending Section 260,Internal Revenue Code, eliminating “Jai-Alai” from amusement tax, and also providing that if amuse ment tax is not paid within 10 days after end of each month, the tax will be increased by 25C. (Now Re public Act No. 418. 2002 — Rehabilitation of domestic insurance companies. (Now Republic Act No. 353). 2118 — Revised Civil Code. Many new provisions affecting contracts, partnerships, sales, domestic re lations, labor, carriers, preferences in insolvency, and authorizing the award of moral and punitive damages. (Now Republic Act No. 386 to become effective one year after publication in Official Gazette). 2217 — Revision of specific tax on cigars and cigarettes which have been mechanically packed so that minimum tax will be P6 per 1000. (Now Re public Act No. 419). 2249 — Exempting purchase of vessels from com pensating tax. (Now Republic Act No. 361). 2383 — Provision re guardianship of incom petents and minors who are beneficiaries of moneys paid or payable by the United States through the Ve terans Administration. (Now Republic Act No. 390). 2520 — Revision of the Charter of Manila. This is a general revision; some new business and occu pation taxes are authorized. (Now Republic Act No. 409). 2560 — Redemption of certain emergency and guerrilla currencv issues. (Now Republic Act No. 369). 2710 — Franchise to Clavecilla Radio System for broadcasting, telecommunication, and television. (Now Republic Act No. 402). 2783 — Regulating the practice of dentistry. (Now Republic Act No. 417). 2804 — Regulation of petroleum exploration and development. (Now Republic Act No. 387). 2831 —Amending Sections 184 and 185, Internal Revenue Code. Reducing tax on dental gold from 30% to 5% ; reducing tax on medical and dental equip ment from 15% to 5‘/o ; reducing tax on fountain pens. (Republic Act No. 396). 2874 — Re evaluation of mineral deposits and publication of mining statistics. (Now Republic Act No. 406). . 2875 — Amending Act 62 re unclaimed securities so that securities to which title is not proved within the time prescribed are to be returned to issuer and become treasury stock. (Now Republic Act No. 408). 2885 — Uniform taxes for wireless reception and transmission of words, pictures, or other matter in tended for publication. (Now Republic Act No. 359). Joint Resolutions 31 — Request:ng President and Congress of United States to authorize additional funds for war damage losses. THE COLLINS COMPANY Established 1826. Incorporated 1934. COLLINSVILLE, CONNECTICUT Commonwealth Axes Dayton Pattern also Double Bit Patterns for swamping and falling The Collins name on any axe is your guarantee of high quality Obtainable in all the leading Hardware stores everywhere Exclusive Agents CHAM SAMCO & SONS, INC. P.O. Box 928, Manila 300-308 Sto. Cristo, Manila Phone: 2-81-72 306 AMERICAN CHAMBER OF COMMERCE JOURNAL___________ July, 1949 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 KARKOTE UNDERBODY COATING PREVENTS RUST ’ ROT • RATTLE Makes New Cars One application of Insul-Mastic Karkote prolongs the life of any auto... new or old. It insulates the exposed un derbody against further rust and rot... deadens road noises, too. Inexpensive quickly applied ...get full de tails today. Authorized Karkote Dealers: MANILA TRADING & SUPPLY CO. PHILIPPINE MOTORS RELIANCE MOTORS • UNITED MOTORS Distributed by. MARSMAN & CO., INC. Trading Division Sta. Lucia at Anda Tel. 2-79-31 Intramuros. Manila “Boy Scouting is Nation Building" Do Your Part Philippine Safety Council By Frank S. Tenny Executive Director SINCE the submission to President Elpidio Quirino of the Philippine Safety Council’s resolu tion suggesting the creation of a National Con ference on Fire Prevention, the following has taken place: 1. Written acknowledgement has been received from the Assistant Secretary at Malacanan and from the Secretary of the Interior. 2. Verbal acknowledgement and encouragement lias been received from the Executive Secretary at Malacanan. 3. The President has been reported as being em phatically in favor of the idea. 4. The Secretary of the Interior has been con tacted and has indicated his support and cooperation. 5. A conference has been held between the Un der Secretary of the Interior and the Executive Direc tor of the Philippine Safety Council regarding details of the proposed body and its duties. Subsequently, a detailed recommendatory plan was submitted to the Interior Department on June 28. 6. The Advisory Safety Council to the Secretary of Labor is also most interested in the plan and is now preparing its own Fire Prevention Code for In dustrial Establishments for submission to the Con ference, when formed. According to the resolution the duties of the Con ference would be “to formulate and implement plans for the prevention of fires in the Philippines.” All subordinate ideas would stem from this main purpose. As suggested by the Executive Director of the Safety Council in his recommendatory plan, the Con ference would consist of five groups, each with its own sub-chairman, and each composed of four mem bers. These twenty Conference members would be presided over by the Conference Chairman, the Sec retary of the Interior. The five groups are: (1) Government, (2) Pro fessional, (3) Safety, (4) Civic, (5) Insurance. The government group includes representatives from the Department of the Interior, Department of Public Works and Communications, Department of Educa tion, and Department of Commerce and Industry. The professional group includes selected fire chiefs and fire-fighting experts headed by the Chief of the Manila Fire Department. The safety group includes safety experts of the Safety Council, the Department of Labor, the Philippine National Red Cross, and fire fighting equipment distributors. Group Four (Civic) includes the presidents of the various chambers of commerce and the National Federation of Women’s Clubs. The final group is composed of both foreign and domestic casualty insurance experts. It was finally recommended that the Conference be created by executive order of the President and called to meet at once. The several groups and mem bers can then present their initial ideas and sugges tions to the entire body for discussion. The Manila Chamber of from the Chaco Building to Commerce moved its offices early this month 304 Ayala Building. July, 1919 AMERICAN CHAMBER OF COMMERCE JOURNAL JOT United States Government Agencies in the Philippines Ports and Harbors and Philippine Recovery By J. Gualberto Planas WHETHER the Philippines will be able to re sume its pre-war stride in commerce in order to arrive at a speedier national economic recover,y depends on the extent of rehabilitation work accomplished on the ports and harbors wrecked by war and damaged by lack of maintenance during the enemy occupation. Unrepaired and inadequately port and harbor facilities incapacitate the resumption of ship ping and trade — than which condition, many Filipino statesmen and economists believe, no greater hindrance to Philippine progress exists. To aid the young Republic in the task of rebuild ing and improving port and harbor installations, the American Government, under the terms of the Philip pine Rehabilitation Act of 1946, authorized the U. S. Army Corps of Engineers to undertake a program of rehabilitation on majTr Philippine ports. The Manila District Corps of Engineers (MANED) was placed in charge of the program. The rehabilitation program was evolved on the basis of a ‘preliminary survey report prepared by Col. C. L. Hall, CE, dated August 20, 1945. Subsequently, MANED made more detailed studies of the ports in cluded in the preliminary surveys and from these developed the Firm Works Program, designed to fit the aim outlined for MANED: that of accomplishing' within the limits of the funds available, the rehabilita tion of the Port of Manila and 14 other national ports selected by the Philippine Government and of restor ing their facilities substantially as they existed before the war. Also included in the program is the acquisi tion of a dredging plant and other equipment needed for the maintenance of navigable channels and harbor areas. In addition to the reconstruction work, a training program for 10 Philippine Army and Public Works engineers in the United States has been undertaken by MANED for the purpose of acquainting these technically trained men with the latest methods of locale selection, construction, maintenance, and opera tion of port and harbor facilities. These men are now in the United States and will return next June after completion of their training and studies. Accomplishments of the program to date include paving of Manila North and South Harbor streets, an initial breakwater extension at North Harbor, Manila, construction of a gate house on Muelle de San Fran cisco in Manila, and rehabilitation of the pier at Pulupandan, Negros Occidental. Work on Pakiputan Wharf at Davao was completed on March 16. In ad dition, rehabilitation vf the ports of Cebu, Iloilo, Tabaco, Cagayan, and Iligan are underway. Contracts have been let for work at Zamboanga and Jolo. Re construction of Pier 9 in Manila is about half com pleted, as are repairs to slips and piers and a second extension to the breakwater at North Harbor, Manila. Work on the Rockwell Station nt Makati is progressing as ra pidly as arrival of equipment allows. The completion of this new power station will make an additional 50.000 kilowatts available to supply the increased demand for electricity in Manila and its MANILA ELECTRIC COMPANY 134 San Marcelino. Manila PREFERRED and SOLD in 87 COUNTRIES . HIRAM WALKER & SONS ltd. WALKERVILLE ONTARIO. CANADA-EST. 1858 Sole Distributors in the Philippines KUENZLE & STREIFF, INC 343-347 T. Pinpin Street (Between Dasmarinas & Gandara Streets) Manila To equip the Philippine Port Works in the servicing of harbors and channels, the program turn ed over to the Philippine Government the 700-cubic July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 308 LUZON STEVEDORING COMPANY, INC. MANILA yard hopper dredge Barth, the 18-inch hydraulic pipe line dredge Sacramento, and a giant 60-ton capacity barge-mounted crane. In addition, three 3/4-cubic yard dipper dredges are being procured in the United States. One of the larger projects of the MANED pro gram is the reconstruction of Pier 13. Formerly Pier 7 and a famous landmark, this pier was gutted and severely damaged by bombing. The deck of the pier will be rebuilt and in place of the once spectacular ly long single cargo shed, four sheds will be construct ed on the rebuilt deck. Funds for the program come from the general ap propriation of $120,000,000 allocated from time to time by the American Congress in accordance with the terms set forth under Title III of the Philippine Re habilitation Act. To date, P35,600,000 has been ap propriated, of which the sum of Pll,200,000 has al ready been expended in the prosecution of the program. To supervise the rehabilitation projects all over the country, resident offices have been established by MANED at Manila’s North and South Harbors, at Davaox Cebu, and Tabaco (Albay). The Visayan re sident office at Cebu City has supervision over the projects at Cebu, Jolo, Zamboanga, Iligan, Cagayan, Iloilo, and Pulupandan. Other resident offices are located at Clark Field, Pampanga, and at Fort Mc Kinley, Manila, The present location of the district office is at Fisher streets and Harrison Avenue, Rizal City. The present district engineer is Lt. Col. W. W. Ragland, CE, who is also the head of the rehabilitation program. He succeeded Col. Clarence Renshaw, former MANED chief, last August, 1948. Pacific S Paints ... they will give you the most in protection, beauty and ease of use. So, remember that Pacific has a paint for every purpose— and a color for every taste. Distributed by Marsman & Co., Inc. • TRADING DIVISION • Anda at Sta. Lucia, Intramuros, Manila, Tel. 2-79-31 Branches: CEBU — ILOILO — DAVAO — BACOLOI) When completed in June, 1950, the MANED pro gram is expected to have restored Philippine port and harbor facilities to a condition where service to trade and shipping can be normally maintained. There after, the maintenance and the prosecution of the Phil ippine Government’s pre-war plans on improvement and expansion of Philippine ports and harbors may be resumed to keep up with the expected increase in for eign and domestic trade. At present, the unrepaired condition of Piers 13, 11, and 7 at Manila South Harbor complicates the problem of berthing cargo ships. Before the war there were 8 berths available for handing cargo; to day, there are but 7, while monthly cargo tonnage has increased from 105,000 tuns pre-war to as much as the present monthly 190,000 tons. The absence of cargo sheds makes handling this tonnage even more difficult. Philippine and foreign businessmen are optimistic about the improvement of port and harbor facilities. Reports from firms working on the Manila waterfront show that there has been a marked decrease in pilfer age and loss in 1948 over what was sustained the previous post-Liberation years. Officials and business men alike believe prospects for better port accommo dations and cargo handling will be much brighter when the MANED port and habor rehabilitation program is completed. With the consequent return of a once flourishing trade and commerce, Philippine economicrecovery will have rounded a difficult corner. United States Information Service, Manila July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 309 Executive Order No. 231 BY THE PRESIDENT OF THE PHILIPPINES AMENDING EXECUTIVE ORDER NO. 193, DATED DEC EMBER 28, 1948, AND NO. 209, DATED MARCH 30, 1949. By virtue of the powers vested in me by Republic Act No. 330, entitled “AN ACT AUTHORIZING THE PRES IDENT OF THE PHILIPPINES TO ESTABLISH A SYS TEM OF IMPORT CONTROL BY REGULATING IM PORTS OF NON-ESSENTIAL AND LUXURY ARTICLES, CREATING AN IMPORT CONTROL BOARD, AUTHORIZ ING THE ISSUANCE OF RULES AND REGULATIONS TO CARRY INTO EFFECT SUCH CONTROL AND PENALIZING VIOLATIONS OF THIS ACT,” I, ELPIDIO QUIRINO, President of the Philippines, do hereby order: SECTION 1. Effective August 1, 1949, Appendix “A” of Executive Order No. 193, dated December 28, 1948, is hereby amended so as to include in the list of luxury and nonessential articles, the following: NAILS (Common wire and finishing, from size 1” to 5” inclusive); CEMENT (Port land) ; RUBBER (Raw, in the form of crepe sheet, smoked sheet and latex); VEGETABLES (in any form) except po tatoes; and PINEAPPLES (canned). SECTION 2. Effective August 1, 1949, Appendix “B” of Executive Order No. 193 and Section 2 of Executive Order No. 209, are hereby amended so as to include or substitute as the case may be, in the schedule of percentage reductions prescribed therein, the following: NAILS (Common wire and finishing; from size 1” to 5” inclusive), 80%; CEMENT (Portland), 90%; RUBBER (Raw, in the form of crepe sheet, smoked sheet and latex), 90%; VEGETABLES (in any form) except potatoes, 40%; PINEAPPLES (canned), 90%; ONIONS, eliminating the date limit and changing the per centage cut from 90% to 40%; AUTOMOBILES, eliminating the price limit; PERFUMES, changing the percentage cut from 50% to 80%; BEER, changing the percentage cut from 40% to 60%; deleting items 11.1 to 11.4 and 17.1 to 17.4 and changing 10.1 — 10.4 to TEXTILES and MANUFACTURES OF COTTON, RAMIE, FLAX, LINEN, WOOL, SILK, RAYON, NYLON AND OTHER SYNTHETIC MATERIALS, 10.1 Fabrics (Woven, knitted or otherwise)—50% cut on those costing Pl.20 or more per yard c.i.f. Philippines, irre spective of widths, 10.2 READY MADE WEARING AP PAREL (outer or inner)—50% cut, 10.3 HOUSEHOLD ARTICLES — 50% cut, 10.4 Grey cloth (unbleached sheet ings and unbleached drills)—80% cut, 10.5 WEAVING YARNS —80% cut, 10.6 OTHER MANUFACTURES, ex cept threads, yarns, twines, fishing nets and other articles for industrial purposes — 50% cut; PIANOS, changing the price limit from Pl,500 to P3,000 and increasing the percent age cut from 40% to 70%; RADIO PHONOGRAPH COM BINATIONS, reducing the price limit from P250.00 to P200.00; RADIOS, BATTERY SET, reducing the price limit from P200.00 to P150.00; RADIOS, ELECTRIC, reducing the price limit from P150.00 to P100.00; CIGARETTES, increasing the percentage cut from 30% to 50%; TOILET SOAP, changing the percentage cut from 50% to 80%; LEATHER, SKINS AND IMITATIONS (MANUFACTURES OF), increasing the cut from 25% to 40%; RUBBER SHOES, eliminating the price limit of P4.50. FOR RE-WINDING OF GENERATORS—MOTORS CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85 The finest name in watch bands Made for men Adjustable to any wrist — any watch Stainless steel lined Completely flexible Thin as a dime. Every Good Watch Deserves Komfit! All Stainless Steel 1/10 14 Kt. Gold Filled Also 10 Kt. Sold nt all leading Jewelers and Bazaars. BEWARE OF IMITATIONS OCEANIC COMMERCIAL, Inc. (LEVY & BLUM) Manila’s Leading Jewelers 35 Pinza Stn. Cruz, Manila — Phones: 3-21-51—3-21-52 Cebu City Branch: Gotiaoco Bldg., 4 Comercio St. Comfort Everywhere OFFICE CLINIC HOTEL Hermitically scaled, for quiet, trouble-free performance. Aluminum fan circulates the drafllessly and efficiently. Three models available: Master, Executive, and Deluxe. Easy to install. Come in and s'? today. Free survey of your requirements to guarantee satisfactory service. AIR CONDITIONER Modernistic and streamlined. Fi circulates and cools the air. Eliminates humidity. Provides healthful ventilation. THE EDWARD J. NELL COMPANY 1450 ARLEGUI STREET TEL. 3 5-21-21 310 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 SILVER AND JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. Z JAVA PACIFIC LINE N. V. S. M. "Nederland” N. V. Rotlerdamsche Lloyd Amsterdam—Rotterdam KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York MANILA VANCOUVER ILOILO To and From SEATTLE LOS ANGELES and SAN FRANCISCO CEBU PORTLAND To and From BOMBAY and CALCUTTA ★ SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Piace, New York 4, N. Y. FROM U. S. ATLANTIC COAST PORTS TO MANILA FROM PHILIPPINES TO HALIFAX and U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 O RIGIN AL-QDHNER “THE MACHINE TO COUNT ON” • The "Original-Odhner" calculators are easy to handle, need no trained operator, and yet are so efficient and inexpensive that if one is used by a junior clerk for ten minutes a day it will pay for itself within a year. Devices that would increase the cost and complicate the construction have been eliminated; the "Original-Odhner" is streamlined down to main essentials. • Well known throughout the world, and used extensively in the Philippine Islands before the war, the Swedish "OriginalOdhner” calculating machines are once again in great demand. inexpensive machines twelve months’ guaran• These • Write now, or phone for full particulars of the range of 4 machines. SOLE DISTRIBUTORS 0. E. S. & S. CO., INC. SALES 673 DASMARInAS (Gibbs Bldg.) MANILA TEL. 6-72-36 • SERVICE • PARTS SECTION 3. Effective August 1, 1949, Appendix “B” of Executive Order No. 193 and Section 3 of Executive Order No. 209 are hereby amended so as to change the Base Period and use as basis of quota allocations the average yearly im portation of an importer during the years 1946, 1947, and 1948. SECTION 4. Effective with the allocation of the quotas for the second six-month period of 1949, Section 9 of Execu tive Order No. 193 is hereby amended so as to charge a license fee of Pl.00 for every One Thousand Pesos c.i.f. value of the article covered by an import license issued by the Board, in stead of One Thousand Five Hundred Pesos as heretofore. Done in the City of Manila this 28th day of June, in the year of Our Lord, nineteen hundred and forty-nine, and of the Independence of the Philippines, the third. (Sgd.) ELPIDIO QUIRINO President of the Philippines By the President: TEODORO EVANGELISTA Executive Secretary THE U. S. VETERANS ADMINISTRATION (Continued from page 285) benefits shall not be liable to attachment, levy, or •seizure by or under any legal or equitable processes whatsoever, either before or after receipt thereof by the beneficiary. The benefits which are being paid by the Veterans Administration in the Philippines are increasing in amounts from year to year. This year, these benefits will total approximately P100,000,000. One may judge from this, the tax-saving which has been made possible by this Act of the Philippine Con gress. Another Act passed by the recent Philippine Con gress is Republic Act 379 which makes it a penal of fense for any individual to pose as an agent or officer of an agency or department of a foreign government. This Act should have a salutary effect in cases, which are all too numerous, where persons claim to be re presenting a United States agency and extort money from potential beneficiaries under such a guise. Finally, one of the Acts passed by the recent Phil ippine Congress, Republic Act 385, aids all of the United States agencies which are operating in the Philippines and which may require investigations to be made before claims of various kinds may be paid. This Act legalizes the administering of oaths by re presentatives of such agencies. Now, any person swearing falsely to a representative of a United States agency in a matter pertaining to a claim of any kind may be subject to prosecution for perjury. MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 July, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 311 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY * IN MANILA BY MONTH, 1946 TO 1949 (1941 = 100) Bweau of the Censtts and Statistics Manila WELDED STEEL All Ball Bearing All Items Food 159.16) House I Cloth- I Fuel, Light] MiscelRent in* and Water laneous (8.43) (0.62) I (13.941 | (17.86) Purchas ing Power 1946 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 JAMESTOWN. N Y FILING CABINETS 19472 (100.00)(63.43) (11.96) (2.04) (7.73) (14.48) January . 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March . . 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April . . 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May . 381.0 404.4 453.9 250.9 325.4 269.4 .2625 June . . 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July . . . 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October . 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December 371.9 395.8 453.9 219.1 298.2 262.9 .2689 designed for those who recog nize the overall worth of a qua lity product. 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 INQUIRIES AT F. H. STEVENS & CO., INC. 4th FLOOR, EL HOGAR FILIPINO BLDG. Manila—Tel. 2-86-13 1949 January . 363.8 386.8 453.9 202.0 279.0 258.9 February 343.8 355.5 453.9 203.0 277.5 258.9 March . . 346.3 358.2 453.9 202.0 276.3 258.5 April . . 348.7 362.6 453.9 197.6 287.5 257.1 May . . . 348.8 362.8 453.9 197.2 287.5 257.1 June . 349.0 362.9 453.9 203.9 287.5 257.2 .2750 .2909 .2896 .2868 .2867 .2865 1 Average number of persons in a family = 4.9 members. 2 Revised in accordance with the new survey on the "Levels of Living, in Manila" by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. PASSPORT PHOTOS Almar Studio MARY OFTEDAHL 321 A. MABINI TEL. 5-33-26 AMERICAN PET SHOP 18 Escolta, Manila Philippines Dogs, Cats, Rabbits, Tro- I Dog Accessories pical Gold Fish, Baby Tur- Dog’s & Cat’s Foods ties, Canaries, Parrots, and Aquarium and Others all kinds of singing birds | TEL. 6-88-02 312 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1949 LBC DELIVERS THE GOODS/ • YOUR HOUSEHOLD E FF E C T S EXPERTLY PACKED & CRATED • DELIVERED SAFELY TO YOUR DOOR IN ANY PART OF THE STATES NO TROUBLE JUST PHONE 2-79-35 MR. R. L. BARY LUZON BROKERAGE COMPANY Derham Building, Port Area The . "LET YOUR HAIR DOWN” ~ Column AN American prospector in one of the provinces wrote us the following during the month: “Herewith my delayed remittance for the Journal. Thanks for your cour tesy. “Better give Mr. Mitke a nudge to carry on the fight. And how about a little consideration for the poor pros pector simps who, like some I know, can’t keep out of the jungle to learn a little about the great Creator’s mys teries. Some placer mining, a la Alas ka, might be carried out here if the min ing regulations were simplified as in Canada. “Here, after finding and locating ac cording to law, you have to do the fol lowing to avoid prosecution on techni calities: Arrange for a survey, with trim mings .................................... Pl,000 Apply for a mining permit, with trim mings, such as Manila and provin cial papers Look after the local posting of no tices Be ready for Internal Revenue agents “I think you would be likely to pull out a hank or two of hair if you had to go through all that red-tape...” A letter from the Valderrama Lumber Manufacturers Co., Inc. of Bacolod, Negros Occidental, Phil ippine mahogany exporters, enter ing a subscription to the Journal, had a sentence in it which we ap preciate: “. . .hoping that you will be able to forward to us the very interesting fact-giving Journal at an early date”. A letter from Mr. Chas. A. Mitke, addressed to Mr. Stevens, ran in part as follows: “I want to congratulate you on the very fair and consistant stand the Jour E. E. ELSER, INC. GENERAL AGENTS for ATLAS ASSURANCE CO. LTD.—THE EMPLOYERS’ LIABILITY ASSURANCE CORP. LTD. CONTINENTAL INSURANCE CO. OF NEW YORK—ORIENT INSURANCE CO. THE INSURANCE CO. OF NORTH AMERICA 404 Ayala Bldg., Manila Phone 2-77-58 Cable Address: “ELSINC” nal has taken since its inception regard ing Philippine-American relations, and particularly on the June issue which contained the editorial by Mr. Hartendorp on the Philippine Trade Act and Mr. Janda’s article on the Civil Code... In the past there have been too many unsound and over-complimentary state ments, — meaningless flattery which does nobody any good... We need more spokesmen like Ambassador Cowen, Frank Waring, A. V. H. Hartendorp, Vicente Villamin, and Bernardino Ron quillo, who are not afraid to tell the truth...” “That’s quite a company,” said the editor. “Am I flattered!” Another letter from Mrs. Ger trude Hornbostel came in the last mail and, to the editor’s ear, must have rung both sweet and sour, — as you will see. It was a reply to a letter he had sent her and she said: “What you said about my helping to keep you alive in Santo Tomas natural ly made me feel good, although it was so darn little I could really do for so very few people. Don’t let your ‘syba ritism’, as you call it, make you feel too badly. It was a perfectly natural act to want to die with ‘your belly full’. The main thing is that you’re very much alive and still kicking...” The editor explains that he had told Mrs. Hornsbostel that as one of the six hundred or so hostages of the Japanese in the Education Building, on the Saturday night when the rest of the Camp was liberated, he had lain flat on the floor with the others as the Ame rican tanks cannonaded the build ing, with the bullets and shells July, ISP9 AMERICAN CHAMBER OF COMMERCE JOURNAL 313 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) To all who need accurate figures in a hurry,.. PHONE OR WRITE US FOR DEMONSTRATION ON YOUR OWN WORK SMlfH.BELL^'caItD. TRADEAND commerce bldg..manila smashing clear through, content edly munching and swallowing the last of a few spoonsful of weavily skim-milk powder and flood-spoiled sugar, then precious food indeed which Mrs. Hornbostel had given him some days before from the re mains of her own small stock. “The April ‘Let Your Hair Down * Column was [Mrs. Hornbostel went on], as usual fine and I enjoyed the edi torials as I always do. I’ll say with Mr. X, the ‘prominent American law yer’, you’re getting better and better, and I don’t mean that you weren’t al ready good before. But when I said, in my previous letter, that the Column is more YOU than the rest of the Jour nal, I mean that it is like the ‘Four o’Clock teas’ we used to have in the Philippine Magazine office and we all were sort of relaxed and at our ease, — just what the names of the old ‘Four o’Clock’ column and now the ‘HairDown’ column imply. We don’t stand on ceremony... “Since I am seriously reading proof on the Star now, everything I read, is always being tested in my mind for ac curacy... In reading your ‘The Reci procal Immigration Bill and the White Australia Policy’, editorial, I came across what I think is a grammatical error... such as occasionally occur in the best of journalistic families. I don’t know whether you will agree with me. You wrote: ‘Just as the members of a fa mily have the right to determine whom their guests shall be or whom will be allowed to live in their home, so does a nation have that right...’ I would say ‘who’ in both instances. Please let me know if I am right.” Making a face, the editor said that when he wrote that sentence he had given those whoms some quick thought, but not enough. “I took,” he said, “both to be ob jects of the infinitive phrase, to determine, but analysis shows that the object of the phrase is compos ed of two clauses, the first of which should have been, in the order of subject, predicate, and subjective complement, guests shall be ivho (who, nominative because the pronoun refers to the subject guests), and the second of which should have been, in the order of subject and predicate, who zvill be allotved (ivho, nominative, because it is the subject of the clause). So Mrs. Hornbostel is right and I was wrong. What an admission for me to have to make! The rule that most writers have found it wise to follow in such involvements is easy: Just recast the sentence and say what you have to say in a simpler way.” “Then no one will be the wiser,” said we with an innocent face. The editor looked at us dubious ly and said, “Yeah.” HOSIERY PLANT FOR SALE Import Control on Hosiery! — See Circular 14 — One of the largest, if not the largest, manufacturer of Hosiery in the United States is interested in making an investment in a cor poration or as a partner with an individual in the Philippines for manufacturing hosiery. Or, will sell outright the plant, erect the machinery, supply the technicians necessary to train the workers. If thought advisable, will train local engineers in their plants in the United States, instead of sending American engineers. Would be willing to furnish their library of patterns and designs for the hos iery, give the plant the use of trade marks which have recogni tion in the Philippines. Full information from FREDERIC H. STEVENS El Hogar Filipino Building Manila, Philippines THE JOURNAL GOES STRAIGHT TO THE DESK OF LEADING BUSINESS EXECUTIVES 314 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 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 (D1TLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) Swe den GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE & YOUNG New York V. MUELLER Head Office : 5TH FL.. INSULAR LIFE BLDG. MANILA. PHILIPPINES TEL 2-87-29 2-96-17 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANQ TOKYO—YOKOHAMA—KOBE NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUCARCRAFT” all offices “You give up constructions And it would But he went on: some interesting that way, though, have been a pretty nice sentence, if I had gotten it right. Damn!” We can see that the whole thing must be pretty awful for him. Here he is set up as an authority over other people’s writing, and he makes a public boner like that. Well, well. Ho-hum. TO show how the Journal is get ting around these days, here is a partial list of especially in teresting new and unsolicited paid subscriptions: Institut National de la Statistique et Jes Etudes Economiques, 127 Faubourg Saint Honore Harold M. Lady, Office of the President, The Capitol, Seoul, Koren. Kenneth F. Noble, Canadian Cfovernment Trade Commissioner, P.O. Box 126, Hongkong. Wall Street Journal, Pacific Coast Edition, Canadian Vegetable Oils. Victoria Avenue and Burlington, Hamilton City, Canada. Department of Commodity Purchase, Colombo, Ceylon. University of Michigan. Ann Arbor, Michigan, U.S.A. Cos. Nauchn Ililioteka, Minist. Vyssh. Obraz, PI. Nogino. 2/5, Moscow, USSR. Kirstein Business Library, Boston Public Library, 20 City Hull Avenue, Boston, Mas sachusetts, U.S.A. Lbirary, International Monetary Fund, 1818 H. Street. N.W.. Washington 25, D.C.. U.S.A. Chartered Bank of India, Australia, and China, 38 Bishopsgate, London. E.C. 2, England. Philippine Legution, Buenos Aires, Argentina. RADIOTYPE YOUR MESSAGES S&'otc'ficl 't/ie “/uia For GLOBE MESSENGER Tel. 2-95-17 — 2-97-91 GLOBE WIRELESS Ltd. Main Office Sixth Floor China Bank Bldg. Branch Office Lobby, Filipinas Bldg. Plaza Moraga consider offset printing FOR MORE SPEED MORE VOLUME MORE VERSATILITY