The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XXV (Issue No. 8) August 1949
Year: 1949
Language: English
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino Building—Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; R. J. Netuton, Vice-President; C. R. Leaber, Treasurer; F. C. Bennett, J. H. Carpenter, C. H. Hirst, N. Most, J. A. Parrish, and E. A. Perkins, Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXV August, 1949 No. 8 Contents Editorials — The Proposed Southeast Asia Union ............................................................... American Goodwill ................................................................................................ Warning Growl from Congress ......................................................................... Frank Murphy ........................................................................................................... Individualism, New and Old .............................................................................. Political Activity of Aliens Illegal ................................................................ New Members of the Chamber Board ........................................................... The 1943 Pact with Japan and the “Confidential Agreement'* ............ Application of Republic Act No. 35 on Tax Exemption of New Industry Recommendations re the Mining Industry ........................................................ Trade Promotion — A Jaycec Recommendation ............................................ The Business View — Office of the President of the Philippines ................................................ Banking and Finance ............................................................. ...................... Stock and Commodity Markets ...................................................... ................ Insurance ................................................................................................................. Credit ........................................................................................................................ Gross Sales, 1937-1939 (Ten Leading Business l*irmsl (Table) Electric Power Production ................................................................................... Real Estate................................................................................................................. Real Eslate Sales in Manila. 1940-1949 (Table* .................................... Ocean Shipping ....................................................................................................... Foreign Trade of the Philippines, January to June, 1948, 1949 (Table* ................................................ Mining ....................................................................................................................... Lumber ....................................................................................................................... Copra and Coconut Oil ....................................................................................... Desiccated Coconut ................................................................................................. Sugar ........................................................................................................................... Manila Hemp ......................................................................................................... Tobacco ....................................................................................................................... Legislation, Executive Orders, Court Decisions (The Ballantyne Scale) Textiles ..................................................................................................................... Food Products ........................................................................................................... Cost of Living Index, 1946-1949 (Table) ........................................................... The "Let Your Hair Down" Column ............................................................... A. V. H. Hartendorp .................. Pio Pedrosa ...................................... Chamber of Mines of the Philippines E. Escaler .......................................... Official Source C. V. Grant A. C. Hall V. H. Bello .......... W. J. Nichols .... Bureau of the Census R. J. Baker .............. C. M. Hoskins .......... Bureuu of the Census F. M. Gispert .... Bureau of the Census C. A. Mitke L. J. Reyes M. Igua) and H. R. Hick S. Jamieson H. Robertson Conde de Churr E. E. Selph .......... J. Traynor .............. C. G. Herdman .... Bureau of the Census 326 331 332 334 and Statistics 342 342 344 345 348 349 350 352 355 357 362 359 360 50 Centavos the copy Oil Old Cars Or New . . . THIS NEW KIND OF TIRE MEANS A NEW KIND OF RIDE I 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 “.. . to promote the general welfare” The proposal to call a preliminary conference of authorized representatives of such countries in East Asia and around the Pacific as may The Proposed desire to participate in the formation Southeast Asia of a union to “contain and counter Union act,” on a political and economic, rather than a military basis, the menace of Communism, was the chief result of the dramatic visit of Generalissimo Chiang Kai Shek to the Philippines and of the two-day conference be tween him and President Quirino in Baguio last month (July 10 and 11). The visit was unannounced, but it was stated in the communiques which were issued that the General issimo had come at the invitation of President Quirino. The President himself said in a later radio address that his invitation was a reiteration of an invitation extended during the lifetime of President Roxas. President Quirino is generally credited with having taken the initiative in the matter, but it was the Generalissimo who made the visit, and there are indications that the Chinese Minister in Manila played an important part in arranging the meeting. It is almost certain that there were no previous consulta tions with the United States Government and no American representatives were present at the con ference. It was emphasized that the Generalissimo came in his private capacity and that the conversa tions were-of a purely informative and exploratory nature. Communist voices, of course, were quick to as sert that President Quirino was acting for the United States, but it is clear that the Washington reaction was cool, if anything, though a section of the American press, led by the New York Times, was decidedly sympathetic. Ulterior motives in proposing such a union, just now, have been ascribed to the Generalissimo .and also to President Quirino, and this possibly accounts in part for the “coolness” in Washington, but in view of the undeniable importance per se of an autochthonous and spontaneous development of this kind, such con siderations may well be dismissed. More recently, in fact, the Washington attitude was decribed as still “aloof,” “but receptive.” At any rate, President Quirino resolutely pushed the plan,—as did Generalissimo Chiang in China, and one of President Quirino’s first steps was to summon Ambassador Romulo to Manila to assist him in making the preparations for the projected meeting. The President and Mr. Romulo held a number of prolonged conferences and the text of a “letter of instruction” addressed to Mr. Romulo, which places him in full charge of what is to be done, has just been released. The letter is an excellently framed and worded document and declares that the project, in the light of Philippine history and the history of some other na tions of Asia, is “rooted in deep stirrings of political consciousness.” The letter marks one important modification. The early proposals all referred to “Asia,” “East Asia,” the “Far East,” and the “coun tries around the Pacific,” but the letter speaks only of “forging a closer union among the peoples of Smitheast Asia." This, it will be seen at once, narrows the scope of the proposal but makes it a more practical one. There has never been any question among democratically-mindedi people, as to the desirability of an Asiatic union against Communism, but there has been and there remains the question of its practicability. It was emphasized from the first that the pro posed union would be one not of military, but of moral forces. According to the letter: “I envisaged such a union to be essentially an act of com mon faith on the economic, political, and cultural level, in tune with the work of the ECAFE and the program of UNESCO, and that it would involve no military commitments. For I am convinced that in the long run the strongest defense against totalitarian subversion would lie in providing a life of substance and contentment and promoting. higher living standards among the Asian peoples. Thus it would be a real union on the basis of common counsel and assistance for the preservation of peace, democracy, and freedom in Asia.” 319 320 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 when you so luxurious in the full-length There $ nothing quite air travel today as berth you'll find on P.A.L.'s roomy, comfortable DC-6. Plan on a good night's rest when you fly P.A.L. — the most up-to-date airline in the Orient today! FLY P.A.L. DC-6 FIVE-MILE-A-MINLTE PRESSl'RIZED-CABIN SLEEPERS. PHIUPPIRE AIR LIRESinc. A. Soriano y Cia.—Geueiul Manage™ Central Office: M.R.S. Bldg. Plaza Cervantea Tel. 2-79-66 Tel. 2-79 67 Branches: Manila Hotel—Tel. 2 91-35 Manila Tel. 2-79-68 Avenue Hotel—Tel. 2-79-66 Both President Quirino and Chiang Kai Shek in dicated that American support, in one way or another, is hoped for, and the letter recalls that the President last April, following the initialing of the North Atlantic Pact in Paris, declared— “on behalf of our Government that it was imperative that the free countries of Southeast Asia, with the active support of the United States, should consider at the earliest possible moment the conclusion of a parallel safeguard in Asia.” It is obvious that the United States Government could view with only disquietude any attempt at for cing its hand, fundamentally sympathetic though it no doubt is. However, meanwhile, and some days be fore the publcation of the letter to Mr. Romulo, Presi dent Quirino was invited by PresidentTruman to come to Washington,—a visit which it is known President Quirino has long been desirous of making. Although there are a number of important matters that the two heads of state are to discuss, it is not to be doubted that the proposed' union will also be a subject of con sultation. Perhaps American advise is already to be seen in the narrowing of the scope of the project to which allusion has been made. There is no doubt that the formation of such a union as is envisaged would serve both to alert the people of Southeast Asia to present dangers and stif fen their morale,—apart from such advantages as there might be in closer economic collaboration. All this would not only be desirable, but appears ne cessary . A danger is that the establishment of the union would tend to give the member nations a false sense of security. In case of aggression, what, actually, could they do with the armies of China defeated and the others with hardly any armed strength at all? But if the promotion of a false sense of security were guarded against, then an anti-communist entente, if effectively welded together even only on a largely non material plane, would be of great political and moral value. In time it could lead to an alliance of substan tial material power. The United States can not afford too greatly to disperse its power. It appears to be the present policy of the United States Government to “keep its eyes on the target” in Europe. Probably it is thought in Washington, rightly or wrongly, that not too great a fear need be felt for the armed power of the Chinese communists, at least with respect to aggression out side of China. It is probably true that the real danger, today, is communist penetration and infiltration through com munist “cells” in non-communist countries, but it is precisely on this level that an anti-communist moral entente, such a union as is envisaged, would be most valuable. We heed most of all to strengthen the belief in democracy throughout the world, for few peoples of the world have as yet had the opportunity to test it for themselves so triumphantly as have the people of the United States. So we may wish President Quirino well. If I ever hear that any of you are trying to play the big man’s game and forgetting the small man, I’ll be back in here fighting. —The late A. P. Giannini, founder of the Bank of America, speaking to his executives when he retired in 1945. The Office of the American Chamber of Com merce during the past month made a canvass of various churches, fraternal groups, and American other associations in the Philippines with Goodwill a view to compiling figures on the re habilitation funds received by them from the United States. The following is the compilation: Catholic Church ................................. $1,923,996.91 Episcopal Church ..................................... 1,500,000.00 Methodist Church ............................. 1,300,000.00 Philippine Union Missions, Seventh Day Adventists ....................................... 1,000,000.00 Presbyterian Field Office ...................... 1,245,000.00 Lutheran Service Center ................. (Figures not available) Knox Central Church ...................... (None as yet) Temple Emil ...................................... 15,000.00 Young Men’s Christian Association 1,011,500.00 Young Women’s Christian Associa tion .................................................. 121,000.00 Knights of Columbus ....................... 10,000.00 Boy Scouts of the Philippines ........ 12,500.00 Girl Scouts of the Philippines ....... 5,500.00 Masonic Lodges ................................. 172,000.00 Benevolent Protective Order of Elks 250,000.00 Philippine National Red Cross .... 904,640.00 Philippine War Relief Organization . 645,092.96 Manila Symphony Society ............... (None as yet) Escoda Memorial ............................... 27,965.74 Total......................... $10,144,195.61 Over P20,000,000 nobody hau? said much about, from (directly or indirectly) mostly private donors in the United States. And the list is probably not complete and funds continue to come in. A friend of ours recently received a personal let ter from a well known member of Congress, — we have no authority to name him, A Warning Growl in which he gave expression to from Congress certain ideas and feelings we in the Philippines must take in to account as they are those of a very influential man who takes a part in the determination of American government policy. He wrote: “The Administration now in power is active with the notion of industrializing the whole world with American ca pital, which means capital advanced by our Government, which means our tax-payers, including myself. “Of course, private capital will not venture off our shores unless it can be assured of protection in the place where it is employed, and with the growing of state socialism and of state monopolies all over the world, how is private capital going to be protected? “It isn’t going to be, and, hence, it isn’t going to ven ture. “If private capital can not be protected, you know well that the countries that would like to have Government (U.S ) money are not going to bother very much about repaying rich rich Uncle Sam! They never have, have they?” First paragraph — Fact. Second paragraph — Fact and question. Third paragraph — Answer, probably correct. Fourth paragraph — Recapitulation, conclusion, and a final sarcastic rhetorical question, the affirm ative answer to which lies in notorious historical fact. The whole represents an expression of Congres sional attitude and temper. Moral for its: Let us be very careful not to try Uncle Sam too far by further adventuring into state socialism and further toying with state monopolies which, together oi- separate are anathema to the whole American view of life. 321 President Quirino’s proclamation ordering the half-masting of the Philippine Flag for one week and the state necrological services held in Malacanan were touching as well as fitting expresFrank Murphy sions of the Filipino tribute to the late Justice Frank Murphy who died suddenly of a heart affliction on July 19 at the age of 59. Mr. Murphy was a noted Catholic liberal and one of the first supporters of the Rooseveltian “New Deal.” His place in Philippine-American history is that of the last of the American Governor-Generals and the first of the U. S. High Commissioners in the Philippines, in which two offices he served both our peoples during the years from 1933 to 1935. It was he who ably guided this country through the difficulties of that important transition period and the distinguished qualities of his strong yet tact ful leadership were generally recognized. On November 14, 1935, the day before the in auguration of the Commonwealth of the Philippines, he delivered a notable address on the state of the nation before a joint session of the Philippine Leg islature in which he voiced certain wise counsel of which we, today, may well be reminded. He realized fully the importance of the occasion and had given much thought to the preparation of this address. The following is taken from a sum mary published in the Philippine Magazine of Dec ember, 1935: "Nov. 14. — The Governor-General addresses the Philip pine Legislature in joint session on the ‘state of the nation,’ counselling the Filipino leaders and people to put aside per sonal aspects where the interest of the Government is con cerned and declaring that ‘all officials should be humble be fore the majesty of the law’ and that ‘above personal success and personal loyalty, the good citizen and true patriot will place the supremacy of the law, duty to the state, and devo tion to the public welfare.’ He praises the leaders and the Legislature, pays Spain a tribute for its contribution to Phil ippine culture, speaks of the rapid progress of education, of the improvements in public works, shipping, and aviation, stresses that economic advances made here have not been based on exploitation but that ‘a good share of the profit has been passed all the way down the line, resulting in the highest labor wage in the Orient,’ and declares that the Philippines ‘had led during the American administration all other Oriental countries in progress made in health and welfare,’ refers to the progress made in penology ‘with the adoption of the most advanced institutions in use in the United States and Europe,’ states that public finance is on a sound basis but warns against excess expenditures, and ends with the statement, ‘The great and happy venture of the American and Filipino people is not yet ended. With an altered framework and broader autonomy, the Philippine Government goes on under the American Flag with the full confidence and support of the people and Government of the United States.’ ” Though now the Commonwealth has given way to the independent Philippine Republic, we still may say that the “great and happy venture of the Amer ican and Filipino people is not yet ended,” for many, though less formal, ties continue to hold them in fruitful association. Though leaders pass away, may the great and happy venture never end. It is well understood that modern technology has been the principal factor in the development of socalled Big Business, and that Big Individualism — Business, in turn, has been an imNew and Old portant factor in the development of what is now called Big Govern ment. As stated before in these columns, the two serve as very necessary checks upon each other, — government restraining business and business re straining ^government to the general public interest. Some thinkers believe that one or the other, either government or business, will in the end be come all-powerful and will establish a state which, whether fascist or communist in origin, will be in herently the same monstrous thing. These theorists say that democratic government is possible only un der the conditions of an agricultural and small-enter prise economy, not under the conditions of modern industrialism. Is then the “independence and self-determination of the individual” under democracy to be inevitably lost and are we to resign ourselves to a society that will be built on the “discipline and dependence of a large majority of its members”? That is a question asked once again by Gerald Tanquary Robinson in an article in the July issue of Foreign Affairs entitled “The Ideological Combat”. He accepts the fact that there is a trend toward a new stateism, stating: “It is essentially the character of the tools, rather than the character of their ownership, that produces mass organ ization and mass discipline in an industrial society; in both Pittsburgh and Magnitogorsk, the forces of technology oper ate to this end... Machine industry seems to prepare the worker to appeal to the state for help, and to accept the dis cipline of the state...” Yet, though, as Mr. Robinson states, “there is ■hardly a man in the United States who does not be lieve that within recent decades it has become nec essary for the Government to do much more for the people than it did a hundred years ago” — “there still persists here, and perhaps more vigorously here than in any other great country, a vigorous individualism and a strong and wholesome fear of all great concentrations of power, whether in private or public hands”. The phrase, “there still persists”, impresses the writer of this editorial as rather weak, but another sentence of Mr. Robinson’s is stronger: “The Soviet Union is challenging the United States to renew and develop for our time the magnificent inheritance of western individualism,—an inheritance that has come to us out of the faith and morals of Christianity, the rationalism of the Renaissance and the Enlightenment, the English gift of compromise, the liberty of the democratic revolutions, and the ancestral independence of the farms and shops and homes of America.” Mr. Robinson advocates that we learn to recog nize the fundamental difference between “govern ment action which is designed to build up the inde pendence and self-sufficiency of the individual ci tizen, and government action which tends to estab lish permanent discipline and dependence”, applying this as a test in determining whether any state action is good or bad, and of course, supporting it in the one case and opposing it in the other. He points out that the “chief surviving centers of fundamental self-determination” in America, as in most countries, are the individual homes, farms, and small business enterprises. He would have the American Government act to save rather than to destroy these. The development in the production of cheap electric power and its distribution to “innum erable industrial undertakings of the smallest size” could, he thinks, result in the recapture by village shops and by farms of a good share in industrial production. And to humanize the work process in machine industry, he sees a hopeful prospect in the develop ment of labor participation in management, “with special emphasis on the smallest functional division of the plant, where the issues are simplest and the worker is best able to deal with them”, coupled with 322 August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 323 BETHLEHEM’S CONTROLLED PRODUCTION Gives You Dependable Steel Utni zing special skills and ad vanced methods, technical experts maintain constant control over every step in the manufacture of Bethlehem steel products. As a result you are assured of high quality, uniformity and dependability when you specify Bethlehem. Bethlehem Steel Export Corporation 25 Broadway, New York 4, N.Y, U.S.A. Cable address: "BETHLEHEM, NEWYORK’ Philippine Correspondent: L. W. DETZER 615 Trade & Commerce Bldg., Manila, P. 1. piece-rate wages and profit-sharing. This, he states, “might do something to give the individual worker a sense of vital participation in the day’s work’’. “If in the machine age the philosophy of individualism is to be preached, with full effect, to our people, the practice of individualism must be accessible to them, even in the fac tory.” If we can “renew and develop for our time” the spirit of individualism, then— “our people will feel a new strength and a new sense of pur pose and direction. The country can have again, in Europe, an even greater influence than it had a century and half ago; perhaps it can even extend that influence to Asia and Africa, where Communism ought not to be the only accessible philosophy of change in societies that have got to be remade. If we can first learn it, we can teach the new individualism overseas by precept, and above all by example....” Thus concludes Mr. Robinson. TO the writer of this rather sketchy review, it ap pears that Mr. Robinson is somewhat too fear ful for democracy and too tentative in his conclusions, though his suggestions and proposals are good. Americans and most other human beings do not have first to learn the “new individualism” or any individualism. A proud and independent spirit na turally dwells in all men which can be destroyed only by overwhelming force or misfortune. That brave spirit can take both big business and big government in its stride and dominate and direct them. We need never fear the ultimate outcome of either an “ideological” or military conflict with any totalitarian power. The present Russian menace is not an ideological, so much as a “pathological”, one,—as is suicide in the case of a neurotic or run ning amok in the case of a man in a despairing rage. The minds of the Russian leaders are as sick as those of the Nazi leaders of evil menory. The true spirit of individualism and self-deter mination, that spirit which inspires the love of, and the demand for, freedom and liberty and our constant assertion of the right to follow our own purposes and shape our own ends, is not based on mere intellectual conviction or on the promptings of a merely political or an idealistic faith, but on our deepest human in stincts. It is fiery and irresistible spirit. It is what makes us men. That spirit everywhere is on the democratic, side and against the totalitarian. Ultimately, in any contest, that aggregation of power will win which has the voluntary backing of the greatest number of free individuals, who, unlike cattle and sheep will not merge into the herd, and will not be controlled. The American Chamber of Commerce, during the Political Activity month, sent out the followby Aliens Illegal in* memorandum to all its members: “Concerning the coming elections for various offices in the Republic of the Philippines, the attention of the members of this Chamber is called to Section 56 of the Revised Elec tion Code (Republic Act No. 180) which reads as follows: “ ‘Active intervention of foreigners. — No foreigner shall aid any candidate, directly or indirectly, or take part in or influence in any manner any election.’ “The attention of the members of this Chamber is also called to the statement of His Excellency, the American Am bassador, in an interview published in the Manila Chronicle of July 3, 1949, as follows: " ‘In reply to a question whether political significance is attached to any consideration the Administration may give these matters [increased war damaged payments and military assistance to the Philippines], Mr. Cowen said: "I have noted there have been insinuations in various quarters of the Philippines that consideration of the matters is being re lated to the coming Philippine presidential elections. I touched on this question in a radio address I made in Manila on Memorial Day, and I can not reiterate too strongly that this Government adheres to the princi ple, not only in the Philippines but everywhere, of the fundamental right of the people to elect officials of their own choice. I hope all Americans in the Philippines, whether in official or private capacity, will recog nize the necessity, which Is not only a moral but a legal one, of non interference in a matter which is one solely for decision by the Filipino people”.’ ” In view of the absence from Manila of a number of members of the Board of Directors of the Chamber and the recent departure of several more on vacation to the United States, threatening a loss of quorum, the resignations of Mr. J. T. Hicks, the Vice-President, and of Mr. F. L. regretfully accepted and Mr. J. A. New Members of the Board ' of the Chamber Worcester were Parrish and Mr. E. A. Perkins were elected as new members at a meeting of the Board held on July 13. Mr. R. J. Newton was elected Vice-President. Mr. Newton is Vice-President and General Manager of the Williams Equipment Co., Ltd., Mr. Parrish is General Manager of the Philippine branch of the Standard-Vacuum Oil Company, and Mr. Per kins is head of the law-firm, Perkins, Ponce Enrile & Contreras. ’■^T’OU can not, you must not renounce the great moral responsibility which you have assumed in ushering into the family of nations this bastion of democracy. The fortunes of the Republic of the Philippines are inextricably tied up with those of her neighbors in the Far East as well as with the United States. We are confident that American diplomacy will reckon with the present-day situation in Asia as equally urgent as the contemporary situation in Europe, if not more.”—Presi dent Quirino in a statement made on the occasion of the presentation of his credentials by Ambassador Myron M. 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INTERNATIONAL TRUCKS The 1943 Pact with Japan and the “Confidential Agreement” By A. V. H. Hartendorp For frantic boast and foolish word, Thy mercy on Thy people, Lord... Lest toe forget — lest we forget —RUDYARD KIPLING UNFORTUNATELY, men’s memories are short, and when some men rant today on “imperial ism”, “foreign influence”, “special privilege”, the “national patrimony”, and like catch-words, we may well think back to the “Pact of Amity and Al liance” with Japan, which was published in the Jap anese-controlled Manila Tribune of that day and we. may also consider two memoranda in connection with that forced “Pact” between the spider and the fly, here made public for the first time. The first of these memoranda is entitled, “Memo randum on Questions between Japan and the Philip pine Arising from the Philippine Independence”, and the second, “Basic Principles and Policies.” Copies of both came into the hands of the writer during his internment in the Santo Tomas Camp, and are included in his still unpublished book on the his tory of Santo Tomas and of the Japanese rule in the Philippines. Subsequent to the liberation, the writer made a check and established the authenticity of these documents. First, however, it is well to reprint the text of the “Pact of Alliance” between the puppet Philippine Republic and the Empire of Japan, which was signed in Malacanan on the afternoon of the day of the inau guration of the “Republic”, October 14, 1943, although nothing was published about this until after the Pact was “ratified” by the hand-picked “Assembly” on the 18th. The President of the Republic of the Philippines and His Majesty the Emperor of Japan, now that Japan has decided to recognize the Philippines as an independent state; being determined that the two countries shall closely co operate, each as good neighbors respecting the self-asserting independence of the other, to establish Greater East Asia based on justice, thereby contributing to the peace of the whole world, and being determined firmly and unshakably to eradicate all sources of evil in the way, have resolved for that purpose to conclude a Pact of Alliance and named then respective Plenipotentiaries, that is to say: The President of the Philippines, His Excellencey Mr. Claro M. Recto, Minister of State; His Majesty the Emperor of Japan, His Excellency Mr. Syozo Murata, Zyusanmi, Ambassador Extraordinary and Plenipotentiary; who after having communicated to each other their respective Full Powers, found to be in good and due form, have agreed upon the following articles: Article 1 — There shall be between the High Contracting Parties perpetual relations of good neighbor and amity on the basis of mutual respect of sovereignty and territories. Article 2 — The High Contracting Parties shall closely cooperate on matters political, economic, and military for the successful prosecution of the War of Greater East Asia. Article 3 — The High Contracting Parties shall closely cooperate with each other for the establishment of Greater East Asia. Article 4 — The matters of detail necessary for the exe cution of the present Pact shall be determined through con sultations between the authorities concerned of the High Con tracting Parties. Article 5 — The present Pact shall come into force as from the date on which the High Contracting Parties shall have completed the ratification of the Pact. Article 6 —The present Pact shall be ratified as soon as possible. The ratification shall be exchanged at Manila as soon as possible. In witness whereof the respective Plenipotentiaries have signed the Pact and hereunto affixed their respective seals. Done in duplicate, at Manila, this 14th day of October 1943, corresponding to the 14th day of the 10th month of the 18th year of Syowa. Terms of Understanding Attached to the Pact of Alliance between the Philippines and Japan Ad Article 2 of the Pact. The principal modality of the close military cooperation for the successful prosecution of the War of Greater East Asia stipulated in the present Article shall be as follows: _ The Philippines will afford all kinds of facilities for the military actions to be undertaken by Japan; the Philippines and Japan will closely cooperate with each other to safeguard the territorial integritiy and independence of the Philippines. In witness whereof the undersigned, duly authorized to that end by their respective Governments, have signed the pre sent Terms of Understanding. Done in duplicate, at Manila, this 14th day of October, 1943, corresponding to the 14th day of the 10th month of the 18th year of Syowa. To allay the fears of the people, puppet officials declared that this “alliance” was “defensive only”, but Premier Tojo, in Tokyo, said that now “the Empire of Nippon looks forward to the successful prosecu tion of the current war in close collaboration with the Republic of the Philippines.” Though the “Ad” to Article 2 of the Pact stated, in the second paragraph, that the Philippines would afford “all kinds of facilities for the military actions to be undertaken by Japan,” this was, while compre hensive, still indefinite, and Section 4 of the Pact, which stated that “matters of detail” were to be “de termined through consultation”, left the question open as to tvhat "details.” THE principal Japanese propaganda organ, the Tribune, furnished no further enlightenment, and few people ever knew of the confidential “Me morandum on Question between Japan and the Phil ippines Arising from the Philippine Independence” which was drawn up, or of the other memorandum, already referred to, on “Basic Principles and Poli cies.” The two memoranda outlined the “understanding” arrived at for complete Japanese control of major in dustries and industrial establishments, including mines, sugar mils, machinery, manufacturing and re pair plants, shipyards, and munition factories, also the principal sawmills and electric enterprises; of the distribution of liquid fuels, and of enterprises con nected with the production and distribution of raw cotton, Manila hemp, and coconuts; of the country’s finances and currency; of all trade in “important commodities,” etc. Ostensibly, this control was to be exercised only during the prosecution of the War of Greater East Asia, but the phraseology was so ambiguous, obvious ly intentional, that textual criticism here would be only a waste of time. 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Memorandum on Questions between Japan and the Phil ippines Arising from the Philippine Independence. * The undersigned having reached the following under standing on questions between Japan and the Philippines aris ing from the latter’s independence, have made out the present memorandum. (A) Industries I. In view of the necessity of meeting the demands of the Japanese forces during the prosecution of the Greater East Asia War, the Japanese forces shall exclusively manage the mines, factories, and workshops listed below, for which the Philippine Government shall provide appropriate excep tions in respect of the exercise of its administrative power. The control associations and similar organizations con nected with such mines, factories, or workshops shall be di rectly subject to the guidance and supervision of the Japanese Forces. Measures to properly respect the shares of non enemy character of such mines, factories, or workshops shall be devised by the Japanese Forces. (1) Mines: (a) Copper mines (including gold mines containing copper); (b) Manganese mines; (c) Chromium mines; (d) Other mines needed by Japan for the prosecution of the Greater East Asia War; (2) Butanol factories and sugar mills intended for the production of butanol; (3) Principal machinery manufacturing and repairing factories; (4) Principal shipyards; (5) Munition factories. The enterprises other than those listed above shall be transferred to the Philippine Government. The Philippine Government shall pay attention not to hamper the economic activities of Japanese subjects and Jap anese enterprises. With regard to the under-mentioned en terprises in particular, which are closely connected with the prosecution of. the Greater East Asia War, the Philippine Government shall especially ensure the improvement of ef ficiency and the increase of production by way of capital par ticipation and financial and technical assistance to Japan. Pending completion of the procedure of transference, ths statutus quo shall be maintained in respect of the enterprises to be transferred and the guidance and supervision of the control associations and similar organizations connected with these enterprises. (1) Mines other than those listed in Item 1; (2) Shipyards and manufacturing and repairing factories other than mentioned in Item 1; (3) Workshops for motor-car repair and assembly; (4) Principal saw-mills; (5) Electric enterprises; (6) Distribution of fluid fuels; (7) Enterprises connected with the plantation and the collection of raw cotton; (8) Enterprises connected with the purpose, collection, and processing of Manila hemp and other similar fi bers and coconuts. (B) Transportation and Communication I. Air transportation, main overseas marine transporta tion, overseas electric communication, and radio broadcasting shall be operated by the Japanese forces exclusively during the prosecution of the Greater East Asia War, while the Philippine authorities shall provide the Japanese forces with all facilities in this regard. However, the above-mentioned en terprises, except overseas air transportation, may be trans ferred to the Philippine Government even in the course of the prosecution of the Greater East Asia War, if circumstances permit. Grammar, capitalization, punctuation, etc., as in the original. II. The harbors that are of military importance shall be managed and operated by the Japanese forces for the time being. III. With regard to main marine transportation lines within the territory of the Philippines, the Hito Unko Bu (The Philippine Marine Transportation Company) shall be reorganized as soon as possible into a corporation of Philip pine nationality, jointly owned and managed by Japanese and Filipinos, which shall be charged to conduct the unified man agement of the said lines, Procedures to realize the above ef fect shall be decided upon by consultation. However, the Japanese shipping enterprises may operate on these lines for the time being. IV. The railroad (including the main motor-car trans portation lines now under the management of the Rikuun Kanri Kyoku (The Bureau of the Management of Land Transporta tion) and the internal electric communication shall be trans ferred to the Philippine Government as soon as possible. The two Governments shall in mutual cooperation adopt necessary measures to maintain the existing unified manage ment of each of the said enterprises even after their trans ference. The Philippine Government shall thereafter obtain capital participation and financial and technical assistance from Japan. In operating these enterprises, the Philippine Government shall give priority to the military requirements of the Jap anese forces. Procedure to realize the effect mentioned in the pre ceding three paragraphs, shall be decided by consultation, ex cept the cases falling under Item III of (E). (C) Finance and Currency I. The deficit of the revenue of the Philippine Govern ment, which will inevitably occur immediately after her inde pendence, shall be partly made up by bond issues of the new Government and the remainder by the Japanese Government by way of loans from the Southern Development Bank; how ever, the Philippine Government shall exert adequate efforts to ensure as soon as possible its financial independence. II. The Philippine Government shall, in making up the budget appropriate the expenditure necessary for her co-ope ration with Japan in the prosecution of the Greater East Asia •War. III. During the prosecution of the Greater East Asia War, the Philippine Government shall consult previously with the Japanese Government in prescribing the tariff rates, as they are related to the mde [mode] of war-time trade stipu lated in (D), while the collection of duties in principal ports shall be affected for the time being by the Japanese author ities on behalf of the Philippine Authorities. IV. Pending the completion of a new note-issuing system of the Philippines, the present issuance of the military notes by the Southern Development Bank shall be continued. V. With regard to foreign exchange and financial and currency measures related to foreign countries, the Philippine Government shall consult previously with the Japanese Gov ernment. (D) Trade I. The trade of the Philippines in important commodi ties with Japan and with other regions shall be conducted directly by the Japanese Government during the prosecution of the Greater East Asia War, provided that due considera tion be given to the interest to be shared by Philippine firms in the actual handling of such commodities. The control as sociations and similar organizations connected with trade shall be directly subject to the guidance and supervision of the Japanese forces. II. The trade other than mentioned in the preceding paragraph shall be assigned as far as possible to the disposal of the Philippine Government. (E) Enemy Property I. The enemy property that was owned by the former Philippine Government of [or] local governments shall be transferred without compensation to the new Government. II. The enemy property falling under item I of (A) or item I of (B) shall be managed by the Japanese forces as heretofore. III. The Philippine Government shall adopt measures for the prohibition of the transference of enemy property, and co-operate with the Japanese forces in the administration of enemy property. 328 August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 329 Continuous Operation of Worthington Turbine-Generators for years at a time—saves you trouble—lowers power costs From all over the world come reports of 99%—and even 100%—continuous operation of Worthington TurbineGenerator units. Maintenance work— except during routine inspection—is seldom required. 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(F) Enemy Nationals The control of the nationals of the countries that are in a state of war or have severed relations with Japan, who are present reside in the Philippines, shall be effected by the Jap anese authorities stationed in the Philippines, and the Philip pine authorities shall extend to the former such co-operation as may be needed. (G) Japanese Subjects In order to effect perfect and smooth operation, parti cularly, in the economic field, between Japan and the Philip pines, the Philippine Government shall, in respect to the en joyment of civil rights, etc., accord Japanese subjects such treatment not unfavorable compared with that of the Philip pine nationals. The second memorandum ran as follows: Basic Principles and Policies The independence of the Philippines having been pro claimed and the Republic of the Philippines duly established and a Pact of Amity and Alliance, having been concluded be- • tween Japan and the Philippines based principally on the re cognition by Japan of the Philippines as an independent state and on the mutual respect of sovereignty and territories, the following understanding has been reached by the two Govern ments: I. Title to all State and Public Property belonging or appertaining to the Filipino people and to the former govern ment of the Philippines, its political subdivisions and instru mentalities, as the inception of the Greater East Asia War, including all military and other reservations, shall be con sidered as vested in the people and the Republic of the Phil ippines as of the date of the establishment of the Republic. II. Pursuant to the Pact of Amity and Alliance abovementioned, the two Governments shall enter into agreement regarding the occupation during the Greater East Asia War of military establishments and other public properties required by the Imperial Japanese Forces for military operations. III. Pursuant to the same Pact, the Philippine Govern ment shall make the necessary adjustments in the manage ment, operation, and utilization of certain properties and enterprises required to facilitate military operations to be undertaken by Japan, in accordance with the following con ditions : (1) All corporations, associations, and other entities or ganized and/or entrusted with governmental or semi-govern mental functions shall be owned and managed exclusively by the Philippine. Government, and all such corporations, asso ciations, and entities as may have been heretofore organized, controlled, or administered by the Japanese authorities shall be forthwith turned over to the Philippine Government; prov ided, however, that the Philippine government and the Jap anese Government may agree upon the utilization, manage ment, or operation by the latter for the duration of the Great er East Asia War, of the following entities and properties: (a) Manila Railroad Co., including the main motor car transportation lines now under the Rikuun Kanri Kyuku (Bureau of Land Transportation Management) ; (b) The main marine transportation lines with [in?] the territory of the Philippines, now under the management of the Hito Unko Bu (Philippine Marine Transportation Com pany) ; (c) Cebu Portland Cement Company; (d) All electrical enterprises, including the National Power Corporation and the electrical plant belonging to the City of Baguio; • (e) Principal machinery, manufacturing and repairing factories; (f) Principal shipyards, and (g) Munition factories. (2) Should the Philippine Government consider that any of the corporations and entities referred to in Paragraph (1) have already achieved their governmental purposes, and should decide to organize new entities to undertake the same activ ities exclusively for profit, the Philippine Government may organize now enterprises to take over such activities wherein Japanese interests may subscribed to not more than 40% of their capitalization. In all of these ventures, the co-operation of the Japanese government may be sought in regard to tech nical assistance and proper financial facilities. In enterprises established for purely private ends, Filipino citizens and Jap anese subjects will be free to share in their organization and capitalization, in any proportion they may decide, subject only to the limitations of the Constitution. (3) All mines essential for the production of war mate rials such as copper, manganese, and chromium, which are owned and/or controlled by the Philippine Government shall remain with the Japanese Government for exploitation and utilization for the duration of the Greater East Asia War. This condition shall extend to the exploitation and utilization of lumber and other natural resources required for military operations. (4) Air transportation, main overseas marine transport ation, overseas electric communication, and radio broadcast ing shall be operated by the Japanese authorities exclusively during the prosecution of the Greater East Asia War. How ever, the above-mentioned enterprises, except overseas air transportation, may be transferred to the Philippine Govern ment even in the course of the prosecution of the Greater East Asia War, if circumstances permit. (5) Harbors of military importance shall be under the control of the Japanese authorities when required for military operations in the course of Greater East Asia War. IV. During the prosecution of the Greater East Asia War, the two governments shall hold consultations on all mat ters affecting trade between the Philippines and Japan and other regions, foreign exchange and other financial matters related to foreign countries. With regard to tariff and trade on important commodities, the following conditions shall be taken into consideration: (1) In prescribing tariff rates, consideration shall be given to the mode of wartime trade between the Philippines and Japan and other regions, and the collection of duties in principal ports of the Philippines shall be effected to conform to the exigencies of the control of harbors by the Japanese authorities. For the time being, until more convenient ar rangements can be made, the collection of such duties shall be effected by Japanese authorities on behalf of the Philip pine government. (2) Trade in important commodities between the Philip pines and Japan and other regions shall be under the super vision and control of the Japanese Government during the prosecution of the Greater East Asia War, provided, that due consideration shall be given to Filipino citizens who desire to engage in such trade or business. Trade in other commo dities shall be placed at the disposal of the Philippine govern ment. V. The control of the national [s] of the countries that are in a state of war or have severed relations with Japan, who at present reside in the Philippines, shall be effected by Japanese authorities and the Philippine Government shall ex tend to the former "such co-operation as may be needed. Nationals of other countries and persons without nationality or owing no allegiance to any country shall be under the con trol and supervision of the Philippine Government, and the Japanese authorities shall extend to the former such assist ance as may be needed. VI. Enemy properties not required by the Japanese Gov ernment for prosecution of the Greater East Asia War shall be transfen ed to the Philippine Government and their man agement and ownership shall be subject to future negotiations between the two governments. VII. Subject to the limitations provided in the Constitu tion, the Philippine Government shall accord to Japanese sub jects equal treatment as that accorded to Filipino citizens by the Japanese Governments. THE reader will have noted that the second memo randum is a condensation of the first, with some changes. The most important change is in the last paragraph, which, in the second document, refers to the “limitations provided in the Constitution.” The Constitution referred to was not the Consti tution of the Commonwealth, which is today the Con stitution of the Republic of the Philippines, but a psuedo-constitution which bore only a superficial re semblance to a genuine basic law, embodying accept ed democratic constitutional principles. In this 330 fraudulent opus, qualifying clauses nullified every limitation of arbitrary power and every definition of a right. As to the country’s natural resources, this “Con stitution,” in Section 1 of Article VIII, declared: “All agricultural, timber, and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all sources of potential energy, and other natural re sources of the Philippines belong to the State, and their dis position, exploitation, development, or utilization shall be limit ed to citizens of the Philippines or to corporations or associa tions at least 60 per centum of the capital of which is owned by such citizens, subject to any existing right, grant, lease, or concession at the time of the inauguration of the government established under this Constitution,” The Japanese were further protected by Sec tions 7 and 8 of Article XI, entitled, “Transitory Provisions,” as follows: “Section 7. The provisions and limitations provided for in this Constitution notwithstanding, the President of the Phil ippines may enter into an agreement with any foreign nation for the utilization of natural resources and the operation of public utilities, which agreement shall expire upon the term ination of the Greater East Asia War.” “Section 8. All property rights and privileges acquired by any person, entity, or corporation, since the outbreak of the Greater East Asia War, shall be subject to adjustment and settlement upon the termination of said war.” This left the situation sufficiently indeterminate for the purposes of the Japanese overlords. HAD this so-called “Constitution,” the “Pact of Amity and Alliance,” and the Memorandum on “Basic Principles and Policies,” actually represented the mind of the people, the rape of the Philippines would have been converted into an even more tragic prostitution. The bogus Constitution ended with one obviously sincere paragraph which provided, after the war, for the election by popular suffrage of delegates to a con vention which would formulate a NEW CONSTITU TION to be submitted to the people in a plebiscite. This, on the part of the authors of that docu ment, is to be interpreted as having been not only a promise, but a barely disguised cry of shame, for which, in their sore extremity in those terrible days, we may now accord them some modicum of honor. Application of Republic Act 35 on Tax Exemption of New Industries DURING its first session, the First Congress of the Republic of the Philippines passed a bill, which; approved by President Roxas on Sept ember 30, 1946, became Republic Act No. 35. The Act, authorizing the exemption of new and necessary industries from the payment of internal revenue taxes, is short, and reads as follows: “Section 1. Any person, partnership, company, or corpora tion who or which shall engage in a new and necessary in dustry shall, for a period of four years from the date of the organization of such industry, be entitled to exemption from the payment of all internal revenue taxes directly payable by such person, partnership, company, or corporation in respect to said industry. “Section 2. The President of the Philippines, shall upon recommendation of the Secretary of Finance, periodically de termine the qualifications that the industries should possess to be entitled to the benefits of this Act. “Section 3. This Act shall take effect upon its approval.” As little was generally known about how or to what extend this Act was being implemented, and this matter is of especial interest to Philippine business, the editor recently wrote the following let ter to the Secretary of Finance, inquiring as to the facts: “The Hon. Pio Pedrosa Secretary of Finance “Dear Mr. Pedrosa: “Would you be so kind as to inform me as to what the present qualifications are of those industries entitled to the benefits of Republic Act No. 35, as determined by the Pres ident of the Philippines under Section 2 of that Act? “I should also like to know what persons, partnerships, companies, or corporations have so far taken advantage of the provisions of the Act, or, if the names can not be given or there are too many of them to be listed without much trouble, of their number and, possibly, the amount of new investment these entities represent. “With this information at hand it might be possible for the Journal to give this constructive piece of legislation more publicity than it has so far received.” To this letter the following reply has now been received: “With reference to your letter of June 27, 1949, relative to the industries which may be entitled to the benefits of Re public Act No. 35, I have the honor to inform you that, as provided in the said Act, the particular industry must be ‘new and necessary’ in order to qualify for exemption. “The term ‘new’ has been interpreted as referring to those industries which had not been commercially exploited in the Philippines before the war. “The term ‘necessary’ would refer to industries which contribute to industrial and economic development. “To date, the President of the Philippines, under Republic Act No. 35, has approved exemptions from all internal reve nue taxes directly payable by industries engaged in the local manufacture of plastic articles, steel windows, kitchen and household utensils, nails, etc. “Inasmuch as the Philippines is just entering the initial stage of its industrialization, it may be stated as a general proposition that a wide variety of industries or enterprises which may be established locally would fall within the scope of the exemption granted, under the provisions of Republic Act No. 35. “A paper mill, steel mill, caustic soda plant, factory for the manufacture of electrical appliances, etc. would be among those which are believed to be within the purview of the ex emption contemplated in Republic Act No. 35. “Respectfully, (Sgd.) PIO PEDROSA Secretary of Finance" While Secretary Pedrosa’s answer is phrased in rather broad terms and no particulars are given, we believe that it will nevertheless be helpful to those considering investment in “new and necessary” in dustries here. 331 Recommendations re the Mining Industry By the Chamber of Mines of the Philippines July 5, 1949 Honorable Placido L. Mapa Secretary of Agriculture and Natural Resources Manila Dear Secretary Mapa: ON June 7, 1949, you called a meeting of representatives of the mining industry at the Department of Agriculture Building, Echague Street, Manila, which, as announced by you, was held at the request of His Excellency, the Pres ident of the Philippines, for the purpose of threshing out the present problems of the industry and in order to formulate a plan of assistance by the Government. MINERAL PRODUCTION IN THE PHILIPPINES — 1948 Mineral Quantity Value Gold Chrome ore Copper concentrates Manganese ore Grand Total P14.617.466 5,261,801 1,965,500 761,853 252,000 P22.838.247 EFORE proceeding, we believe it necessary to give you a clear picture of what the mining industry actually was before the war and what it looks like at present, so that we will see the difference and will know the real extent of’the rehabilitation needed. As the last world war started in the Pacific area on the Sth of December, 1941, no complete records of the industry were kept during that year. However, complete records were kept by the Chamber of Mines of the Philippines from 1936 through 1940. During 1940, 79 mining companies with an ag gregate paid-up capital of P79,096,946 reported a total pro duction amounting to P92,832,911, which represented an in crease of 9.58% over 1939 production. The breakdown of 1940 production is as follows: It will be seen that the production of the whole mining in dustry for 1948 was only 24.6% of the production for 1940 and possibly about 20% of the production for 1941. It will also be seen that about 80% of the industry has not yet been reha bilitated. That is the extent of the rehabilitation needed if we would restore the industry to its pre-war condition. Compar ing the production for 1948 with the production for 1940, mine ral by mineral, it can be said that with the exception of lead concentrates and iron, the base-metal mines are on their way to rehabilitation, whereas gold mines are lagging quite far be hind. Gold production for 1940 with the by-product, silver, amounted to P78,823,790 whereas the production for 1948 was P14,617,456.82 only, or about 18.54% of the former. Most of the 'mines which have not yet been rehabilitated are gold mines. GRAND TOTAL GOLD AND OTHER METALS OUTPUT — 1940 Mineral Quantity Value Gold Copper concentrates Copper ore Chrome ore Lead concentrates Manganese ore 1.100.262 oz. 1,407,871 oz. 7,957 tons 29,874 ” 166,002 ” 1,236,206 " 1,058 ” 62,166 ” P76.834.425 1,989,365 3,338,635 954,905 2,612,192 6,564,992 118,008 1,420,389 Grand total P92.832.911 Fifty mining companies, including 2 copper producers and 5 placer mines produced the gold and silver, while 7 chromite companies produced the chrome, 16 gold mining companies in cluding the Lepanto Consolidated Mining Company produced copper concentrates, 2 produced copper ore, 4 produced iron ore, and 6 produced lead concentrates. There is no silver mine in the Philippines; silver is produced as a by-product in min ing gold. Out of the 79 operating mines, 24 distributed P18,335,215 in dividends to their stockholders. In contrast to the other major industries of the Philippines, the capital of which is owned by a few rich individuals or groups of individuals, the capital stock of the mining companies which is divided into millions of lowvaiue certificates, is owned by thousands of stockholders of different economic standing. With the exception of some foreigners, the stockholders are scattered all over the Philip pines and they are the ones directly intersted in the rehabi litation of the industry. The mining industry directly employed 42,931 workers in 1940 to whom a total of P21,984,914 was paid in wages. Among all industries, mining paid the highest wages to laborers, and housing facilities in the mining camps were better than in any other industry. The mining industry paid P7,447,615 in taxes to the Gov ernment in 1940, spent P36,660,647 for materials and supplies exclusives of lumber, and consumed 228,746,462 K.W.H. of power. The industry consumed 84,267,609 board feet of lumber, valued at P4,866,162. It was generally believed, although there are no available figures to prove it, that the 1941 production of the mining industry had actually passed the P100,000,000mark. On the other hand, the production during 1948 is as fol lows: *T1HE problems of the goldmining industry in the PhilipA pines are similar to the problems of the same industry all over the world. Whereas the costs of labor, machinery, supplies’ and materials have soared to two or three times the cost be fore the war, the price of gold has remained pegged at $35 a troy ounce, the price fixed for the metal in 1934. As a re sult, the operation of a gold mine precludes the making of any profit, the only incentive behind private enterprise. In our opinion, gold mining operation can only be carried on under any of the following conditions: 1. Where some profit is made in spite of the high cost of production due to the unusual richness of the ore. 2. Where some form of subsidy or aid is extended to the industry by a government. 3. Where due to lack of government restrictions a free open market in gold is permitted. Most of the gold mines in the Philippines are of the mar ginal or low-grade type, and with the exception of one gold mine among those already in operation, none will be able to continue operation if the producers are required to sell their gold at P70 a troy ounce. Event the one gold mine we are referring to may not continue in operation for any length of time. Due to the high cost of production, it will be compelled to leave much of its low-grade ore underground, so its reserve of high-grade ore may easily be exhausted. The Republic of the Philippines being party to the Inter national Monetary Fund Agreement, we can not make any specific recommendation under conditions Nos. 2 and 3 as enu merated in the foregoing because action along the lines in dicated might be construed as in violation of the agreement. However, we earnestly recommend that the Government through appropriate official channels, investigate what is being done by the governments of gold-producing countries such as Canada, South Africa, Western Australia, the Belgian Congo, and perhaps other gold-producing, countries to assist in the re habilitation of the mining industry in those regions through a system of subsidy to the mines to the end that similar ac tion may be taken in the Philippines. For its part, this Cham ber unreservedly places itself at the disposition of the Govern ment to assist in the necessary investigation and the obtain ment of needed data. VW E will now proceed with the other recommendations voiced “ in the meeting. As this Chamber was requested to sub mit a compilation of the recommendations, circular letters were sent to representatives of the mining companies immediately after the meeting, requesting them to furnish this Chamber with statements of their problems and with corresponding re commendations for inclusion in this report. A resume of the recommendations made to help the mining industry as a whole, follows: 332 1. Production Tax.—The production tax at present being collected on the output of gold mines is a great deterrent to the increase in the production of such mines because it prac tically penalizes such increase in production by taxing it at a maximum of 10% whether the mines make any profit or not.* On the other hand, all other minerals including base metals, are charged 1-1/2% only, irrespective of the amount of the output. This a very clear case of discrimination against gold mines, especially onerous in view of their present difficulties. In most countries of the world, no tax is charged on the pro duction of mines, so we believe that the tax should be eliminated if the Government really wants to help the mining industry. The Government should for the present be contended to depend on the income tax. When conditions in the industry improve, collection of the production tax could be resumed. 2. Compensating Tax.—The compensating tax is a heavy burden on many mining companies which before they can re sume operation must purchase costly machinery, equipment, and supplies from abroad. It is recommended that the compensating tax on machinery, equipment, and supplies used by the mining industry be suspended for a period of 5 years. 3. Assessment Work.—The present law requiring that P200 worth of annual assessment work be done on each mining claim results in a waste of money. It serves no useful purpose other than to protect a locator against claim jumpers. It accom plishes little, if anything, toward the exploitation of the hidden resources of the nation. The mining companies should be permitted to concentrate the assessment work required on a group of claims to any one claim selected by them to enable them to get real value from this tax. This would help them in making constructive plans for the development of their prop erty. 4. Forestry Charges.—The provisions of Section 1833 of the Administrative Code granting the holder of a mining claim a gratuitous license to cut timber on his claim should be al lowed to continue indefinitely. It is true that the forest charges paid under the forestry law are not large. However, as tim bering of mine tunnels is an indispensable factor in mining and as most of the tunnels in gold mines caved in during the war, much timber is required before those tunnels can be open ed up again. To help the mining companies, all lumber they must purchase should be exempt from the forestry tax. • 5. Miscellaneous Taxes.—Republic Act No. 215 exempt ing mining companies which have not yet resumed operation from the payment of certain taxes and fees in force up to December 31, 1949, should be extended for 5 years more. The payment of occupation fees on mining claims under Section 241 of the Internal Revenue Code should be suspended for a period of 5 years as a further inducement toward the location of new claims and the performance of exploration work thereon. It is also recommended that the general exemption from taxation extended to new and necessary industries by Repub lic Act No. 35 should be extended to those mining companies KTA°SQefliPr0PMtkS We5e destr°yed during the war. Senate Bill bC us?d as ? rmodel- This bill would exempt from taxation for a period of 5 years any business whose plants, 500,001 1,000,001 1,500,001 2,000,001 2,500,001 3,000,001 4,000,001 5,000,001 6,000,001 7,000,001 8,000,001 10,000,001 12,000,001 9'4% on 14,000,001 9'/>% on 16,000,001 9%% on 18,000,001 10% on 20,000,001 (2) On all other minerals, one and one-half per centum of the value of said output." properties, or equipment were damaged or destroyed during the last war by not less than 50% of their value. 6. Financing f acilities.—Some gold mines not yet in ope ration and some base-metal mines both in operation and not yet in operation need financing aid from the Government. They need long term loans at a nominal rate of interest. The gold mining companies need funds to put their mines in proper condition and purchase necessary machinery and equipment. Some base-metal operators need funds to increase their out put and to market their products. They would agree to con tract the loans on the security of (1) their machinery and equipment, (2) blocked-out ore reserves, (3) war damage claims, and (4) the mines as a whole on the valuation recommended by the Bureau of Mines. 7. Ocean Freight Rates.—Some companies are encounter ing difficulties in shipping copper concentrates and other ores to the United States. They are forced to pay very high freight rates in view of the monopolistic control over shipping by members of the Associated Steamship Lines. . . . 8. Lighterage Charges.—Some mining companies produc ing base-metals complain that the operators of lighters are also buyers of ores at prices dictated by them. If the miners do not want to sell their ores, lighters are made available to them only at exorbitant rates. As the mining companies suf fer big losses when they are required to pay demurrage, they recommend that the Shipping Administration help the mining industry by having some lighters made available for lease to them. 9. Hydro-electric Power.—Some mining companies have signified their willingness to develop hydro-electric power at their own expense in connection with the operation of their mills and other camp requirements. But the present procedure of the Government in granting concessions for hydro-electric installations is too complicated. Furthermore, the applying companies face the possibility of being classified as public util ities, which they most certainly do not want to be. It is re commended that the procedure for obtaining hydro-electric con cessions be simplified and made easier for mining companies. 10. War Damage.—The good offices of the Republic are solicited to urge on the War Damage Commission the speedy payment of the war-damage claims of the mining companies. 11. Labor Problems.—It is recommended that appropriate action be taken by the Government through the Court of In dustrial Relations >r through legislation to allay the fears and misgivings of the mining industry due to the instability of labor conditions. According to Bureau of Commerce statis tics, living costs and wages have both reached practically the same level. There is now no further justification for agita tion among the laborers. The present standard wages in the various mining districts for different classes of work should be legalized to avoid instability. 12. Legislation.—In addition to the changes recommended in respect to the various taxes mentioned, the mining compa nies also recommend that they be given assurance that dur ing a fixed period of time the tax situation will remain stable. It is further recommended that while the industry is in pro cess of rehabilitation, no harassing legislation of any kind be enacted. 13. Increased Appropriations for the Bureau of Mines.— It is recommended that bigger annual appropriations be given to the Bureau of Mines to enable it to widen its scope of ac tivities and increase its usefulness to the mining industry. The Bureau of Mines is the only authoritative source of in formation to which inquiring capitalists here or abroad can turn. Unless the Bureau is adequately staffed and given suf ficient funds to carry on and continue to completion the minerological and geological surveys and investigations that it has begun, and to extend this work also to other areas not yet surveyed and to publish the results thereof, a splendid oppor tunity will be lost which, if taken advantage of, would greatly benefit the country. 14. Mines of Tomorrow.—In view of the present diffi culties encountered by the mining industry, no prospecting work to discover new mines is being carried on. If the Gov ernment fails to act and allows this condition to continue in definitely, the time may come when the mining industry will totally fade out. In order to encourage prospecting and to find new mines which may add wealth to the nation, it is recommended that venture capital be encouraged to develop 333 Interna' Revenue Code provides as follows: by lease There ’I n6? taxes output of miner“> lands not covered vel.,e eV rT Th . ha * 1 be asses3ed “nd collected on the actual market «trZefeH OllJput °f the mineraIa °r mineral products extracted or produced from all mineral lands, not covered by lease, an ad valorem tax, payable to the Collector of Internal Revenue as follows: (1) On gold — to P 500,000 to 1,000,000 to 1,500,000 to 2,000,000 to 2,500,000 to 3,000,000 to 4,000,000 to 5,000,000 to 6,000,000 to 7,000,000 to 8,000,000 to 10,000,000 to 12,000,000 to 14,000,000 to 16,000,000 to 18,000,000 to 20,000,000 and over. promising prospects to bring them to the stage where they can be given a valuation. Under present regulations, the owner of a mining claim can not obtain a permit from the Securities and Exchange Commission to sell stock to the public to obtain funds to dev elop his claim unless he can show that exploration and develop ment work had already been done on his claim and positive commercial ore had been blocked out. But that is the time when all mining is in the specula tive phase, and the Bureau of Mines and the Securities and Exchange Commission should be requested to devise means whereby the owners of promising but undeveloped claims may be authorized to sell stock to the public. Only in this way may venture capital be obtained to develop such promising prospects; otherwise no new mines may be developed at all. 'T'HE mining industry which was next only to the sugar r industry in importance to the country before the war, is the last of all the major industries to receive the attention of the Government. Nevertheless, we wish to express our pro found gratitude to you for giving the representatives of the mining industry an opportunity to publicly outline their prob lems and to submit appropriate remedies. We earnestly hope that the forgoing recommendations will be duly studied and favorably acted upon by the authorities concerned. As the recommendations do not call for any monetary aid or subsidy but only for the suspension of certain taxes to give the in dustry a chance to grow, we believe that the Government could easily afford to grant the requests made. Very respectfully yours, CHAMBER OF MINES OF THE PHILIPPINES By Jesus S. Cabarrus President Trade Promotion A Jaycee Recommendation By Ernesto Escaler Treasurer, Regina, Inc., Assistant Secretary-Treasurer, Pampanga Sugar Development Company THERE is a pot of gold just waiting to be tapped by Philippine businessmen. It is not the kind one usually dreams of finding at the end of a rainbow. This one really exists in a mine of oppor tunities unlimited, just at the other side of the Pacific ocean—in the United States of America. This is the unanimous impression gathered! by the world delegates of the Philippine Junior Chamber of Commerce composed of young executives all below the Jaycee age limit of 35 years. This delegation made a scheduled speaking tour of 86 cities of the United States, Canada, Mexico, and Cuba, under the auspices of the United States Junior Chamber of Commerce, which counts with more than 1,500 chapters all over the country. The Philippine Jaycees addressed pre pared audiences at business meetings and banquets given in their honor by American Jaycees, who brought to these gatherings the leading businessmen of their communities, and at the meetings of the Ro tary, Lions, Kiwanis, and other similar civic clubs, the members of which were all interested and greatly im pressed in hearing the Philippine story. This same story was repeated by the Philippine Jaycees in 115 speeches, 1,798 column inches of publicity for the Phil ippines in the leading periodicals of the country, 23 radio broadcasts in the United States, Canada, and Cuba, 5 television appearances, all reaching a total combined audience estimated at about 45,000,000. The impressions obtained by this group of Fili pino Jaycees are necessarily those gathered during a very fast but extensive coverage of the American scene. This short article is also based on mere im pressions gained by a young businessman in search of business opportunities on a whirlwind tour during which he tried to see everything between breakfast and bed-time. When the delegation reassembled at San Fran cisco for the trip home, everyone had the same predo minant impression,—that the average American was very much interested in and impressed by the Philip pines, especially when reminded of the fact that our nation is their only and last democratic friend and ally in this half of the world, where communism is making its bid for supremacy. Another realization was that we have so far done little or nothing to take advantage of this goodwill and interest of the American people. In almost every gathering addressed by the Fili pino Jaycees a portion of the audience would invariably approach them, congratulate them on their speeches, and ask the same set of questions that always came up with stereotyped monotony. Why have we never been told about these things? Where can we see samples of your buri hats, abaca products, rattan furniture? Where can we get those good old Philippine cigars? Where can we get some literature on Philippine business ... tourism .... Philippine products? All of which questions add up to one conclusion of fact—that the American people know little or nothing at all about the Philippines and its products. But they are definitely interested. In an effort to find the best source of information on Philippine matters and1 products, toward which we could direct our many curious inquirers, we discussed the problem of trade promotion with our Consular of ficials in the few places we found, them in the United States. We asked them if they had samples of Philippine hardwoods, buri products, abaca articles, and similar manufactures which would appeal to American buyers. We asked them if they could supply printed matter on Philippine business to those who are interested. The answer was always the 334 same evasive refrain—“We have no samples and no propaganda matter here. We are always asking the Home Office to supply us with these materials. We have appealed to various government agencies to send us samples of native products—but nothing has come of these requests.” They all agreed that trade promo tion materials and literature about the Philippines, were of utmost importance, if they were to justify their existence as trade representatives of the Philip pine Government. They admitted that they receive numerous inquiries for samples of Philippine products —and the only reply they can make is, “We are ex pecting them in the near future.” One incident has stuck in our minds, apropos of the evidence of missed opportunities we have seen all along our route. A member of the consular staff in Chicago told us that a representative of the great Marshall Field Company, one of the largest merchand izing companies in the world, inquired concerning the addresses of Philippine suppliers of buri and abaca novelties. The Consulate could show no samples so it gave the prospective purchaser from Marshall Field a list of our local merchants dealing in these articles. Later on after a follow-up inquiry, it was learned that Marshall Field could not find a single Philippine source which could Supply them the volume and quality of the goods they wanted to order. Jf only our local business could have pooled its efforts to meet this profitable demand, a new and very promising market would have been opened. But nothing further was done about it. The pot of gold was there. But no one seemed interested. Our tour of the United States was made just at the start of the summer season. In many places huge window displays featured arrays of summer articles like straw hats, panama hats, straw bags, slippers, abaca rugs, and similar tropical goods. These dis plays attracted considerable attention. But we noticed one thing,—that the great majority of these straw, fiber, and abaca articles were of decidedly in ferior quality and much more expensive than similar articles we manufacture locally. We could turn out these kind6 of articles, and of better quality, at lower costs. Yet these products from Mexico, Cuba, and Porto Rico were creating large sales all over the coun try. We could only shake our heads at the thought of what profits we could reap if we could only bring our own products of that kind to the attention of American buyers. In Detroit we saw a large sale of straw slippers in a great department store, which were being literally gobbled up by eager buyers because they were being sold “at a very low price of $2.00.” We could sell our own abaca slippers, which are more attractive and more durable, on that same counter at half the price,—and what a sale that would be! During the summer, American buyers, mostly the women, have always shown a fondness for exotic, tro pical apparel and accessories. They are always look ing for something new, something different from the ordinary run of plastic-nylon-aluminum articles that flood every store-counter. We could very well exploit this natural market for novelties with our Igo rot curios, Ilocano table-linen, buri shopping-bags, buri hats, abaca slippers, buntal hats, abaca rugs, and similar articles manufactured locally. We were particularly besieged with inquiries as to where our American friends could get that “lovely rattan fur niture,” and “those quaint wooden shoes made in Manila, which would make such beautiful beach shoes.” Buyers for the big department stores are eager to see our products. All we have to do is to show them what we have to offer, and it would not be difficult for us to find a ready, willing, and profitable market. But we have to show them first. Nowhere else have we been more impressed than in the United States with the importance and neces sity of trade propaganda. One example of this type of salesmanship is particularly vivid in our minds. In a great majority of the cities we visited, we almost always met with “travelling conventions” of apparel salesmen. These “conventions” are held by the salesrepresentatives of almost all the apparel and garment manufacturing companies in the United States. They have their coast-to-coast schedules, which are given wide advance publicity all over the country. They select the best hotels and there take from 20 to 50 rooms where each salesman sets up his individual dis play of his company’s products. A large section of the hotel is thus transformed into an improvised ex position where are shown the latest styles of articles to be placed on the market for the coming season. Buy ers all over the surrounding counties flock to these travelling convention-expositions and then give their orders for future deliveries. It has been suggested that Philippine businessmen could easily unite in such a cooperative effort, get all their samples together, and join one of these travelling expositions, one that would suit the particular articles we are trying to promote. These samples could be exhibited by only one or two men who could at the same time solicit and receive orders. At New Orleans, the Jaycees were shown around the famous International House of that city. This is a large office building which houses a permanent ex position at which a great number of foreign countries exhibit their native products. Orders are received at the indivdual display room of each country. Very moderate rents are charged for room space for exhibit purposes in this building. The products represented thtere have found many new permanent customers among the multitude of businessmen that flock to this Internal House from all of the surrounding States. True to our recurrent pattern,—the Philippines was not represented in a single exhibit. These are typical .examples of practical possi bilities in trade promotion. The Philippine business men singly, or grouped together for greater effective ness, or the Government itself in the interest of boost ing a badly needed export trade, could certainly adopt these or other means, any means at all, as long as we do give the American public the opportunity of see ing what we have to offer them. Once that is done, the rest should follow without much difficulty. The American interest in the Philippines is now at its peak. Dollar exchange is no problem. Wexstill have virtually no trade barriers between our two countries. The pot of gold is there. All we have to do is to reach for it,—that is, if we are interested. 335 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines JULY 1—President Elpidio Quirino administers the oath of of office to Col. Margarito Torralba as deputy chief of staff of the Philippine Constabulary. The President confers with a number of the members of the Philippine Air Mission who are leaving today for Kara chi, Pakistan, to negotiate an air transport agreement. The Mission will also visit India, Greece, Egypt, Israel, and Siam for the same purpose. It is composed of Lucas Madamba, Chair man, and J. M. Arreglado (Foreign Affairs Department), D. M. Gomez (Philippine Air Lines), A. E. Albert (Civil Aero nautics Administration), and Capt. E. G. Lavadia (Philippine Air Force). Budget Commissioner Pio Joven informs the Cabinet that all essential services which were financed by the United States Government up to June 30, will be continued by the Philip pine Government under temporary financial arrangements pend ing regular budgeting, but that only essential personnel will be retained. July 4—Patriotic ceremonies are observed on the Luneta in the morning and at the American Embassy in the afternoon. Official felicitations are received from President Truman and from many other heads of state, Ministers of foreign affairs, and others, including Chiang Kai-shek, Franco, Ernest Bevin, Queen Juliana of the Netherlands, and the Presidents of France, China, Argentina, Cuba, and the Swiss Federation. President Quirino’s message to President Truman was: "Please accept, on this the 173rd anniversary of American independence and the 3rd of our own, the most cordial greetings and felicitations of the Republic of the Philippines and the Filipino people. My countrymen join me in wishing you and the American people continued strength, prosperity, and vision to sustain your role of world leadership on which liberty-loving nations everywhere place their hopes for a life of expanding freedom, peace, and justice.” President Truman’s message was: "It gives me much pleasure to extend greetings and good wishes to the President and people of the Philippines on the occasion of this anniversary of their national independence. These anniversaries are significant both to the people of the Philippines and the United States and I am sure that our peoples will be found associated always with other freedom-loving peo ples of the world in zealously guarding the fundamental principles under which free men live.” July 7—The President receives Mr. Oliver Zi, a Chinese official, who discussed with him the promotion of trade between the Philippines and Formosa. He declared that the island is able to export coal, cement, sea-products, etc., and needs rope, hemp, copra, lumber, and other Philippine products. Mr. Zi will also visit Siam and India. July 8—The President administers oaths of office to Dr. Cecilio Putong as Under-Secretary of Education, Benito Pangilinan as Director of the Bureau of Public Schools, and Venancio Trinidad as Assistant Director of Public Schools. The Department of Foreign Affairs announces that the following consulate transfers have been ordered: Roberto Re gala from San Francisco to Australia; Alzate from Australia (Sydney) to Honolulu; Mariano Ezpeleta from Shanghai to San Francisco; Meynardo Farol, former Consul in Portland, Ore gon, will be asigned to Calcutta, India; Tagakotta Sotto, ViceConsul in New York, will also go to India as Vice-Consul, Eugene, H. Clay, first assistant and economic adviser to Ambassador Myron M. Cowen, who arrived in Manila on the 6th, calls on the President, accompanied by Charge d’Affaires T. H. Lockett. During the war Mr. Clay was economic adviser to General Eisenhower and later to Gen. Lucius D. Clay, who is his uncle, when he was military governor of Germany. Mr. Clay was also chief deputy of the economic mission to Greece and economic adviser to the American Ambassador there. He resigned as special assistant to the administrator of the Eco nomic Cooperation Administration to assume the Manila posi tion at the request of Ambassador Cowen. July 10—Generalissimo Chiang Kai-Shek arrives in Baguio by plane from Formosa (Sunday, noon). President Quirino issued the following statement: "I am most happy to receive Generalissimo Chiang Kai-Shek. I have long wanted to meet him personally as an admirer of his strong will and effective leadership of Chinese affairs during his time. I am glad that 1 am now going to have an opportunity to exchange views with him regarding the overall picture of the situation in the Orient. I am hope ful that during his stay with us in the Philippines the relations between the Filipino people and the Chinese people will henceforth be stronger and that our common efforts to make our two peoples live a life of contentment will find a common ground of understanding for the develop ment of our two countries in particular and Asia in general. I am con fident that his visit will be fruitful of results toward this end and that the common understanding among the peoples of Asia will be greatly en hanced.” The Generalissimo issued the following: "It is most gratifying that upon the invitation of President Quirino, I am given the opportunity to make this personal visit to the Philippines. I feel happy to be in your midst, not only as a guest of your President, but also as an old friend, I claim, of the Filipino people with whom the • Chinese people and myself fought on the same side during the second World War, and at whose attainment of full nationhood and independence, China, besides the United States, was the first country to establish diplo matic relations with the Philippine Government. While my visit will ne cessarily be brief, both President Quirino and myself expect to have a full exchange of views at our meeting on matters of our common interest, especially the question of the menace of international communism in the Far East.” July 11—The following joint statement of President Quiri no and Generalissimo Chiang Kai-Shek is issued at the Man sion House during the evening: "During the past two days we had a full exchange of views on mat ters concerning Sino-Filipino cooperation and the relations among all the Far Eastern countries. We both feel happy to state that throughout the meeting the atmosphere was permeated with a spirit of frankness and harmony. In our discussions we agreed that the relations between China and the Philippines should bo further strengthened and that concrete and practical measures should immediately be taken by our respective govern ments for the promotion of a closer economic and cultural cooperation. Wc also had a full discussion on the imperative of coordinated full develop ment of the Far Eastern countries in order to insure their stability and security. In view of the lack of close collaboration among them in the past and considering the gravity of the Communist menace which con fronts their freedom and independence today, we deem it necessary that these countries should at once organize themselves into a union for the purpose of achieving solidarity and mutual assistance to contain and counter act that common threat. A preliminary conference of authorized repre sentatives of those countries desiring to participate in the formation of this union should be convened at the earliest possible moment to devise con crete measures for its organization. It is our hope that other countries in Asia and the Pacific will eventually respond to the highest aims of the proposed union. ..... . T u "Generalissimo Chiang Kai-Shek further stated: Although I have come to the Philippines upon the invitation of President Quirino to confer with him in my private capacity, I shall, as leader of the Kuomintang, undertake to advise and request the Chinese Government to give its full support and to take steps to implement the agreements as announced in the above joint statement.’ ” The Department of Finance directs government collect ing officers to accept government back-pay certificates of in debtedness in payment of taxes and government hospital obli gations, not only those incurred before the enactment of Re public Act No. 304, but those incurred after that date. July 12—President Quirino, informed of a “sympathetic reaction” in Washington to the proposed Pacific Union, states: “I am happy to learn that. It is not surprising because, after all, the countries taking the initiative in the move to contain and counteract the advance of Communism are friends of the United States.” He summed up his conference with Chiang as the first of the steps in the pursuit of a “program of moral rearmament through economic and political cooperation among countries facing the menace of Communism.” He “emphasized that the present scheme does not involve the military question ... [but] calls for coordination of mutual economic and production efforts to enable the people threatened by Communism to live in security and contentment and to eliminate hunger and discontent upon which Communism thrives.” Later, at a press confer ence, he states that “the Philippines and China did not bother the United States because it is the intention of these two Far Eastern countries to organize themselves with whatever re sources they have to stop Communism as their contribution to the American campaign against Communism. We are not asking anything from the United States. On the other hand, we are doing our bit here as our contribution.” The Generalissimo leaves Baguio on the Presidential plane Laong Laan for Floridablanca, Pampanga, where he boards his own plane, Ching Mei, to take him back to Formosa. July 14—Estimated that total revenue collections for the fiscal year ending June 30 will amount to around P320,000,000, an increase of about P57,000,000 over the preceding fiscal year, according to B. L. Meer, Collector of Internal Revenue. 336 July 15—The President authorizes the release of P900.000 for the eradication of a plague, the most serious in 37 years, of “army worms” which is spreading rapidly over 22 provinces, including those of central and southern Luzon and also Min doro and Palawan. Considerable damage has already been done to rice-seedling beds. The caterpillars (of the moths prodenia litura and spodoptera mauritia) also attack sugar cane and grass. Indonesian trade envoy Harsono Resoatmodjo has inform ed the Philippine Government that the first Indonesian Consul delegate to the Philippines will arrive next week. Reported that the President last week decided to establish a Philippine consulate in Jogjakarta. Observers state that Indonesia is considered a vital link in the proposed Pacific union. Secretary of Finance Pio Pedrosa has issued new instruc tions to be followed in the inspection of baggage at the air port and the piers in an effor to expedite this for the encourage ment of tourism. Personnel will be detailed to issue certificates of exemption f?bm tax clearance at the air port and custom house. July 16—The Philippine-Pakistan air treaty is signed, the first of such to be negotiated by the Philippine air mission now there. The Radio Control Board, headed by Under-Secretary of Commerce Filemon Cosio, lays down rules extending the great est possible freedom to political speakers in the use of the radio. Stations must divide the time as equitably as possible among properly authorized speakers and no censoring will be permitted except in respect to libelous and slanderous matter. Political broadcasts must be clearly stated to be such both at the beginning and end of a program. The National Economic Council and the Central Bank is sue figures showing that of the total paid-up capital registered by corporations and partnerships during the period from 1946 to the present of Pl 17,000,000, Filipino investment amounted to P58,000,000, or 49%. Chinese own 32%, Americans 14%, and the rest is in small percentages among other nationalities. A total of 2,609 corporations and partnerships were registered during the period, among which 1,681 were Filipino, 603 Chinese, and 260 American. June 17—-According to the Government Enterprises Council, the net worth of government-owned industrial and commercial enterprises has risen from P120,000,000 in 1946 to P355,000,000 by the end of 1948. It is emphasized that the government pro gram is confined to enterprises which private capital has shown a reluctance to enter and that the Administration has adopted a policy to dispose of these enterprises to private Filipino ca pitalists once they are operating at a profit in order to en courage free enterprise and avoid government competition with private capital. July 18—The National Economic Council .recommends that the balance of the subscription of the National Develop ment Company to the Philippine Electrical Manufacturing Company, amounting to P375.000, be paid out of advances to be made to the NDC by the Government for new develop ment projects. It is indicated that the manufacture of elec tric-light bulbs by PEMCO will soon begin. The Council also recommends that P890,000 needed for the operation of the pulp and paper mill of the NDC at Mandaluyong be released immediately. The Council further recommends that the offer of the International Hotels Corporation (subsidiary of Pan American Airways) to make a study of the tourist industry here, be accepted, expenses to be borne by the Manila Hotel. The Council expresses agreement with the recommendation of the Philippine Contractors Association that surety in lieu of cash bonds be accepted in public bidding as the putting up of 5% cash bonds is tying up operating capital. The Department of Foreign Affairs announces that the fertilizer quota from the United States has been tentatively set by the Office of International Trade at 5,000 tons nitro gen content; total available for allotment to countries all over the world has been set at 52,000 tons. Ambassador J. M. Elizalde has inquired whether PRATRA will continue to con trol all fertilizer importations or whether private importers will be allowed to function. July 19—The President issues Proclamation No. 134, revoking Proclamations Nos. 12 and* 16, series 1946, listing the values of foreign currencies for purposes of assessment and collection of customs duties, as recommended by Secretary of Finance Pio Pedrosa; the listing is based on prevailing ex change values. Secretary of Agriculture and Natural Resources P. L. Mapa having reported that the irrigation pump experiments Banking and Finance By C. V. Grant Sub-Manager, National City Bank of New York COMPARATIVE figures of assets and liabilities of the Central Bank follow: (in thousand# oj pesos') ASSETS January 31 As of Hay 31 As of June 30 International Reserve ... P714.969 P682.648* P641.617* Contribution to Inter national Monetary Fund 30,000 30,000 30,000 Account to Secure Coinage 113,106 113,306 113,306 Domestic Securities ....... — 3,686 9,739 Due from Treasurer of Philippines .................. — — 7,626 Other Assets .................. 19,320 21,994 22,681 P877,395 P851.634 P824.969 LIABILITIES Currency: Notes ......... P621.521 P544.970 P534.425 Coins ........... 73,035 74,372 74,293 Demand Deposits — Pesos 169,351 152,153 135,438 Dollars 40,553* 40,649* Securities Stabiliza tion Fund ................... 2,000 2,000 2,000 Due to International Mo netary Fund ............... — 22,499 22,499 Other Liabilities ............ 1,488 2,052 2,128 Capital ............................. 10,000 10,000 10,000 Undivided Profits .......... — 3,035 3,537 P877.395 P851.634 P824.969 * Note: The Demand Deposit liabilities in U.S. Dollars of the Treasurer of the Philippints. These amounts are the Asset side as part of the International Reserve. are deposits included on The June 30 statement was high-lighted by the drop of P41,000,000 ($20,500,000) from the previous month in the International Reserve. A decline in the amount of dollars received from the United States Treasury for account of the various United States Government agencies, which supplements the foreign exchange earned from exports, resulted in banks having to rely heavily on the Central Bank for im port exchange cover. The Government floated its first issue of Trea sury bills on July 11. The offering, on a discount basis, was composed of Pl,000,000 one-year certifi cates. One of the Manila banks was the successful bidder at P98.50. It has been reported that the pro ceeds of these certificates will be used to meet pre liminary expenses for the development of the new Capital City. The revised rates established by the Central Bank on June 24 for exchange transactions with the commercial banks, still hold; selling 200.81 telegraph ic transfer, and buying 200.75 telegraphic transfer. The rates between which the banks are permitted to quote to clients are unaltered at: Buying P200.50 P200.375 Selling P201.50 P201.375 U.S. Dollars, T.T. over $500.00 ............. U.S. Dollars, Demand over $500.00 ....... U.S. Dollars, T.T. and Demand under $500.00 ..................................................... P202.00 P200.00 Banks generally are quoting for prime business telegraphic transfer 201.25 selling, and 200.625 buy ingThe decreasing velocity of business turnover, particularly in evidence the past few months, conti nues, while importers are carefully watching price trends in the United States. Merchants in general complain that collections are slow. 337 Stock and Commodity Markets By A. C. Hall A. C. Hall Company June 22 to July 21, 19^9 NEW York Stocks.—The market has displayed quiet, sustained strength in the face of some disturbing news, which included the Sterling crisis and the possibility of a strike in the steel in dustry. The expansion in trading activity accompany ing some of the daily advances is bullish, but per haps recent volume figures are somewhat misleading due to heavy trading in a few low-priced stocks. At its closing today, the Industrial average is back up to the level prevailing before the May-June decline, but the Rails have lagged behind, and are still about 7% below their corresponding point. Market fluctuations during the period, as mea sured by the closing Down Jones Averages, are as follows: Low July 21 165.64 174.59 42.45 44.87 High 175.60 45.17 June 21 Industrials . . 165.71 Rails............... 43.27 Money market conditions now favor high-grade investment securities, and bonds have been quite strong recently. This is a favorable sign as far as it goes. Experience shows that firmness in the bond average is always a preliminary to any substantial advance in stocks. However, the most important factor in the stock market is still the probable extent of the current re cession. So far, there has been a considerable sag in business activity, and this has been reflected in a number of poor earnings statements recently re leased, with more to come. All of this has been ex pected, and has had little effect on stock prices. In the past, it has always been noted that the market has overdiscounted the business cycle. It has been anticipating this let-down for a long time, so possibly it is reasonable to conclude that present price levels are conservative on the whole, unless the business de cline is to get substantially worse during the next several months. COMMODITIES.—The Government report as of July 1 estimated total Wheat production as 1,190,000,000 bushels which is the third largest on record, but about 150,000,000 bushels less than the June 1 estimate. The report halted the recent ad vance in futures, but further damage to spring wheat is still possible. July Chicago was quoted at $1,991/4, against $2.00 on June 21. Indicated Corn production is large but weather will be an important factor from now on: Futures were irregular, the July open in terest is large with deliverable stocks small in com parison; July Chicago is quoted at $1.42-3/4 and De cember $1.17-5/8, as compared with $1.32-1/8 and $1.14-3/4 a month ago. Cotton worked moderately higher on commission-house short covering, New York October being quoted at 29.71, compared to 29.43 a month ago. Domestic Sugar futures were lower in sympathy with some easing in the seasonal improve ment in demand, and September No. 5 was quoted at 5.38 against 5.46 last month. A/T ANILA Market.—Following further mild weak-LVJ- ness early in the period under review, the mar ket has since displayed a pronounced ability to notice good news, which is in sharp contrast to the bearish psychology prevailing during May and June. Up to the present, the advance has been highly selective, but general sentiment has improved and this should cause a broadening of demand as time goes on. At this time of year, it seems appropriate to call attention to the strong seasonal characteristic which have been a feature of our market since the war. For four years, peak prices have been registered during the first quarter, to be followed by prolonged declines, which have bottomed out in the third quarter each year up to 1948. As the sell-off in June this year had all of the earmarks of the final stage of a bear market, it may well be that the seasonal pattern is in the process of repeating itself again, particular ly as local monetary factors tend to support these swings. Over.-the-counter business in mining stocks was principally confined to Benguet Consolidated which was strong and active following the listing of this stock on the New York Exchange: About 51,000 shares were traded in the range of low P3.95, high P5.30, closing P4.60. Other business included 40,000 shares Taysan “A” at 12 centavos, and 50 shares Philippine Iron Mines Common at P25. In commer cial issues, business reported included 315 shares Compafiia Maritima at P52; 1150 shares Manila Broadcasting at Pl.30; 7,600 shares Manila Jockey Club between Pl.95 and Pl.90; and 84 shares Victorias Milling Company at P145. Insurance Victor H. Bello Supervisor, American Foreign Insurance Association MUNICIPAL Ordinance 3297, which became effective on July 1, 1949, in essence and as carried out by fire insurance companies licensed to do business in the Philippines, requires that every person shall pay “a municipal tax of one half of one per centum of the total premium collected on fire insurance policies covering properties located within the City of Manila.” 338 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 85.3 249.4 308.7 278.9 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. “The proceeds of the tax............... shall be ex pended exclusively for the acquisition of fire-fighting equipment for the City Fire Department, subject to appropriation by the Municipal Board.” Fire insurance policy holders will therefore find on policies issued on or after July 1, 1949, and cover ing property (real or otherwise) in the City of Manila, an additional charge on their premium • of 1/2% of 1% of such premium. Fire insurance companies in general disapprove of this ordinance on the principle that a tax obtained from the few to favor the many is inequitable. Electric Power Production Manila Electric Company System By R. J. Baker Manila Electric Company ** Partially estimated 1949 1948 January . . ,................... 33 745 000 27 301 000 February . . .................. 31 110 000 26 021 000 March . . . . ................. 34 776 000 26 951 000 K April .... .................. 33 048 000 26 871 000 L May............. ................ 34 453 000 28 294 000 w June . . . . ,................... 34 486 337* 29 216 000 £ July............. ................ 35 706 500** 31 143 000 T August . . . 31 993 000 September . 32 012 000 H October . . . 33 943 000 g November . . 32 661 000 R December . . 35 104 000 TOTAL ......................... 361 510 000 This month three records were established. The monthly output exceeding the month of December, 1948, by approximately 600,000 kwh. A daily out put of 1,241,400 on July 30 and a peak-load of 87,550 kwh on the same day. The previous peak was 87,400, on December 31, 1948. The increase over July, 1948, was 4,563,500 kwh, or 14%. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. ONE of the chronic problems constantly confront ing the credit executive is not only when to re fuse credit to a customer but how to refuse it. If a client is bluntly told that he is not a desirable prospect for a charge account, his feelings are imme diately hurt and valuable goodwill may be lost. Some times a customer of good paying habits and reputation is temporarily overextended and unable to settle his accounts promptly. While it is often necessary in these cases to withhold further extensions of credit, it should be done in such a way that resentment is not created. There is probably no perfect way to say No, but we believe that if a refusal is made with tact and politeness much is accomplished toward keeping pa tronage and good relationship alive. Too frequently credit men are callous andi indifferent when a friendly letter or interview would be more effective. It seems to us that there is a need among credit managers for some sort of a digest of commercial laws now in effect in the Philippines. Answers to such questions as what constitutes legal evidence of settle ment of an obligation, the essential requirements of a binding contract, libel laws in the exchange of credit opinions, and other related information would, if com bined in a handy form, serve as a valuable reference guide for every-day credit work. Real Estate By C. M. Hoskins (Of C. M. Hoskins & Co., Inc., Realtors) THE month of July showed a substantial increase in real estate purchases, with a total recorded of 204 transactions having a value of P3,019,784, as compared with 259 transactions valued at P2,793,217 for June. Several transactions closed dur ing July have not yet been registered. Mortgages registered in July amounted to P12,446,530, as compared with P7,559,958 for Jatae. Comparative figures on transfers for the first six-month periods of 1946 to 1949 are as follows: January-July 1946 .............................................. P23.488.400 1947 .............................................. 41,729,193 1948 .............................................. 33,084,753 1949 .............................................. 23,078,167 339 340 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 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, represent Japanese Occupation transacti ons not recorded until after liberation. 1940 1941 1945 1946 1947 1948 1949 January . P 6,004,145 P 962,970 P 7,943,605 P 4,385,011 P 6,030,012 1P 3,644,734 P 3,965,420 February . 918,873 779,783 1,337,830 2,267,151 7,217;317 3,879,633 2,701,668 March . . 1,415,246 1,532,104 (?) 2,622,190 7,166,866 4,243,719 3,362,635 April . . . 883,207 988,380 213,262 1,916,293 8,611,076 5,021,093 3,129,799 3,677,630 May . . . 403,866 1,129,736 962,008 3,684,937 3,637,956 4,618,181 3,988,560 4,253,395 June . . . 542,187 598,431 1,212,780 8,019,246 2,793,217 July . . . 1,324 861 559,742 1,123,565 4,974,862 4,097,183 5,146,529 3,019,784 August . . 1,905,828 1,239,414 699,740 4,438,510 5,627,572 6,192,876 4,737,581 September 1,141,114 815,112 1,182,678 1,870,670 4,698,896 7,437,213 6,083,486 October . . 993,103 2,096,893 5,545,800 3,340,384 5,350,376 November 938,416 858,235 2,555,472 4,177,054 3,046,287 December 1,504,004 (?) 2,874,408 4,025,926 3,205,584 5,386,248 Total . . P17,974,844 P10,647,285 P22.890.133 P45,537,914 P68,260,104 P57,798,121 P23,773,749 The largest transaction recorded during the month was the purchase for P472,000 of the 8,586square-meter parcel on Azcarraga Street near Legarda by the Philippine College of Commerce and Busi ness Administration. Although only registered last month, the deal was closed a couple of years ago, before PCCBA began construction of its multirinillionpeso school plant. The seller was the Minerva Real Estate Company, a Sam Berger corporation, which bought the property from a religious corporation several years ago. This is the site of the old Civil Hospital, estab lished about 1902, which was replaced by the Philip pine General Hospital on Taft Avenue in 1912. The Civil Hospital building thereafter became the Minerva Cigar Factory, which was eventually acquired by the late Sam Berger, who had his commercial offices, in cluding the Acme Film Company, at the same site. This can probably be attributed to the drop in the copra market, the ban on the export of scrap Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for the month of June carried by 92 vessels amounted to 198,180 tons. Where as this figure is considerably in excess of the amount of cargo carried during the same month last year, it is 50,413 tons less than the amount listed dur ing the preceding month of May. Most commodities showed a falling off from last month, principally copra, scrap metal, ores, and sugar. August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 341 metal, less demand for certain ores, and the tapering Furniture, rattan .. 499 ” 607 ” off of the suffar season. Hemp...................... 47,228 bales 226 tons 47,786 bales Household goods . . 148 tons Exports for the month of June this year, as com- Junk metal ... 5,086 ” 4,468 ” pared with exports for June last year, are as follows: Kapok..................... Logs........................ 303 ” 1,448,462 board 25 ” feet 859,556 board feet. 1949 .1948 Lumber................... 1,484,078 ” ” 1,060,912 ” Molasses................. 1,350 tons 18,583 ” Alcohol................ . 40 tons _ Ores, chrome . . . . 18,357 tons Beer......................... 1,147 ” — ” iron.............. 23,805 ” — Coconut, desiccated 9,007 ” 6,498 tons ” manganese . . 3,395 ” 11,298 ” — Coconut oil............. 5,681 ” 2,508 ” Pineapples, canned. 2,452 ” Concentrates, Rattan.................... 98 ” — copper ................. 2,361 ” 107 ” Rope........................ 284 ” 346 ” Concentrates, gold. 559 ” 110 " Rubber .................... 60 ” 48 ” ” lead. 135 ” — Shells...................... 52 ’’ 105 ” Copra ...................... 34,748 ” 49,490 ” Sugar ...................... 58,207 ” 21,093 ” Copra cake, meal . 7,084 ” 3,813 ” Tanning extract . . 94 ” — Embroideries .... 146 ” 120 ” Vegetable oil prodEmpty cylinders . . 301 ” 271 ” ucts..................... 56 ” 13 ” Fruits, fresh .... 118 ” 62 ” General cargo . . . 1,320 ” 22,462 ” "Take a Memo, Miss Lazaro,..’9 The modern Executive's room is air-conditioned by PHILCO Air-Conditioner Work is a pleasure in the quiet, comfortably cool dust-free atmosphere of an office air-conditioned by a PHILCO AIR CONDITIONER. More things get done... better, with less effort and strain! Competent, efficient office-workers know and appreciate air-conditioning. They know that they are less susceptible to respiratory diseases. They know that their welfare is looked after ... They are grateful for this added thoughtfulness all the year round. Philco 91-C. .A handsome walnut-finish ed console model air-conditioner. In this compact cabinet are nil the ma chinery needed to filter outside nir, fix its moisture-content for proper humidity, cool it, and maintain a steady, silent circulation without an noying drafts for rooms of up to 500 square feet floor-area with normal ceiling height. A "must” for humid, muggy hot-weather days: a whole-year convenience for a really modern, truly practical, business office! The Store of Quality 454 Dasmarinas Phones: 2-79-78 & 2-79-79 16th & Atlanta Sts. 2-94-89 on DZPI for the Deems Concert from 6:30 to 7:30 very Tuesday and Sunday DZRH from 7:00 to 7:30 every Wednesday night for the PHILCO HOUR Bing Crosby Show. 342 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 FOREIGN TRADE OF THE PHILIPPINES FIRST HALF YEAR 1949 COMPARED WITH 1948 Bureau of the Census and Statistics Month 19 4 9 19 4 8 Total Trade Imports Exports Total Trade Imports Exports January 139,808,710 99,203,670 40,605,040 168,756,643 91,465,820 77,290,823 February 148,146,009 105,063,518 43,082,491 172,918,845 108,417,862 64,500,983 March 186,592,751 136,377,480 50,215,271 175,560,504 125,094,966 50,465,538 April 124,373,818 76,760,529 49,613,289 161,083,915 98,722,256 62,361,659 May 120,480,336 70,536,144 49,944,192 141,840,940 102,703,448 39,137,492 June 136,383,985 86,694,717 49,689,268 135,039,959 79,730,908 55,309,051 Total First Half Year 855,785,609 572,636,058 283,149,551 955,200,806 606,135,260 349,065,546 Mining By Chas. A. Mitke Consulting Mining Engineer June Production Acoje Mining • Co. . . . 3,500 tons Benguet - Balatoc . . . 46,007 ’’ MindanaoMother Lode . . . 7,600 ” worth P105.000. ” 682,071. ’’ 219,890. Lepanto Con concentrates prosolidated . 15,920 ” duced 2,087 tons, worth 492,000. Atock - Big Wedge . . 12,035 389,624. Consolidated Mines . . 10,250 205,000. Surigao Con ex-div. solidated . 7,322 228,496. INCENTIVES to increase mine production, and also to search for new and previously unknown orebodies, are becoming common topics of dis cussion in countries, where mining is an important Provincial Dealers: VALERIANO ALONZO CEBU • WARNER, BARNES & CO., INC. ILOILO & BACOLOD • FELIX CABURIAN CAGAYAN, MIS. OR. • VISAYAS-MINDANAO ADVT. & PROM. LEYTE & BOHOL • HANSON, ORTH & STEVENSON DAVAO • August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 343 issue. Chile provides assistance to miners; Canada has an Emergency Gold Mining Assistance Act, and has also offered other inducements. South Africa gives encouragement to miners, and now, in the United States, legislators are thinking along the same lines. As mentioned in an earlier article, President Truman, in his “Message on the State of the Union”, at the time of his inauguration, said:— “I recommend legislation which will authorize incentive payments for the exploration and development of strategic and critical minerals.” At the present time, there is before the American Congress what is known as the “Murray-Engle” bill This bill is a compromise measure in that it contains parts of several former measures on mining subsidies. It sets up a $100,000,000 fund for exploration pay ments and production premiums. Mr. Engle, one of the authors of the bill, is himself a mining engineer from California and is therefore fully conversant with the needs of the miners. Under the proposed bill, exploration con tracts could be made which would provide for fe deral contributions of part of the costs, determined on a sliding scale. Contributions could not exceed 90 % of the first $10,000; 80% of the next $10,000; 70% of the next $30,000; 60% of the next $50,000; 40% of the next $100,000; and 10% of any amount in excess of P250,000. The contributions could go up to 50 % of costs in excess of $270,000, when the Direc tor found that the project was desirable for the pur pose of the act, and the applicant was unable to bear more than 50% of such excess. Advance payments could be made for exploration projects on which annual cost did not exceed $150,000. Payments would be made on the search for new ore deposits or for extensions of knoion deposits. Something along these lines has been suggested for the Philippines which is so badly in need of new producers. It is known that very few of the closeddown mines will ever re-open unless the price of gold goes materially higher than at present. The problem confronting the country therefore is the finding of You JUST CAN’T LOSE the decimal in division with the new Marchant Figure master. The answer, pointed off auto matically, is indicated by distinct symbols either as a decimal or a percentage, as desired. Eliminat ing a mental computation to locate the decimal means faster, more accurate figure work... all adding up to more CPCC This and 17 other principal new achievements, together with Marchant’s traditional supremacy in jimpltaty, accuracy control, and silent-speed, estab lish the Figuremaster a; the world’s foremost calculator. fllARCHAHT ’o*pera£>“*"* P" Without obligation. I would like to see the new Figurcmaster IZJ Please send me free information about the new Figuremaster EZI City. ■State. ERLANGER & GALINGER, INC. 123 T. Pinpin Between Escolta & Dasmarinas 344 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 new mines or “prospecting and developing the mines of tomorroiv". The Philippines present a fertile field with many known mineral prospects. When venture capital was available about fifteen years ago, the best known prospects at that time were tested out in depth and ultimately became the mines of today. During the past nine years, many new promising prospects have again been located in virgin territory, but so far, there is no venture capital available to open up these mines of tomorrow. Since new mines mean dollar credits to these Is lands, possibly something might be done along the lines now proposed in America. Even though the United States is a country rich in minerals, it is of fering new incentives to promote an extensive pro gram of exploration for more minerals thereby to open up more mines. If the Philippine Government were able to follow suit, even in a more modest way, such, for instance, as authorizing the allocation of Pl,000,000 for an ex ploration and development campaign, it is believed that the results would much more than pay for the venture capital thus advanced. Lumber By Luis J. Reyes Philippine Representative. Penrod, Jurden & Clark Company THE month of June registered a further drop in export with 2,579,958 bd. ft. as compared to 3,114,857 bd. ft. for the month of May. Logs comprised 49% of this amount and sawn lumber 41%. Most of our export, as usual, went to the United States,—45% as compared with 70% of the previous month, followed by Japan with 35%, and all other countries nearly 20%. It is very probable that the export to Japan, which consists mainly of veneer logs, will materially increase in the future. Shortly be fore the outbreak of the war, Japan was operating around 100 veneer and plywood mills, and it will re quire increasing quantities of our woods as the mills are rehabilitated. Japan used to import an average of 111,000,000 bd. ft. a year before the war, surpassing the United States in volume to the proportion of 6 to 1. Conditions in the local market remain as in the previous month. With the low price of lumber, numerous lumber mills either switched their produc tion to other centers or temporarily stopped operation. As a result, lumber prices have not registered a further drop, as they generally dlo during the rainy season when construction slows down. The lifting of the export ban last month had no effect on the amount of our export, although it has helped slightly in that it is no longer necessary to go through the usual red-tape when applying for an ex port license. Many lumbermen are of the opinion that it was a mistake to have put a ban on exports after Liberation as at that time the United States was in great need of hardwoods. We could have sold from 25 to 30% of our log production at fair prices in the United States, thereby hastening the reconstruction and rehabilitation of our mills destroyed during the war. The log trade in Japan is of interest to many Philippine producers, particularly now that America has cut down its importation to a minimum. Some 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 Mandaluyorig, Rizal Tel. 6-65-68 August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 345 local producers, however, fear that competition in the next tender by SCAP will be so keen and the price will be so low as to leave little or no profit to loggers. Before the war, Japan took from 76,000,000 to 181,000,000 bd. ft. of veneer logs annually, and the price was so low then that about the only return sellers got, after deducting taxes, etc., was their salaries and wages. AN important addition to our wood-using indus tries is the installation of several veneer and plywood manufacturing plants of which there are now three in actual operation, with two more expected to be in production within the next month or two. The Santa Clara Lumber Co., the International Hardwood & Veneer Co., and the mill of the National Abaca and Other Fibers Corp. (NAFCO) in Davao, produce.in the neighborhood 900,000 sq. ft. of plywood a month, but these mills will be capable of doubling this amount when certain operational difficulties have been over come. Two other mills which will come into produc tion soon are those of Woodworks, Inc., situated at Tandoc, Camarines Sur, and the Philippine Plywood Corp., at Tagcauan, Tayabas. The former will be equiped with two veneer lathes, a slicer, and a hotpress, enabling it to turn out phenolic bonded plywood and dtoors. Conditions in the tropics are so severe to glues that for best results, plywood should be bonded with phenolic or urea resin glues. Of the three mills in operation, only the Interna tional Hardwood & Veneer Co. is equiped with a hotpress, although we understand that the Santa Clara Lumber Co. has ordered a hot-press in addition to its two cold-presses. There is no doubt that many more plywood mills will be established in the Philippines because we have the raw materials here and because considerably more plywood could be absorbed in the local markets. From reports released by the Bureau of Commerce, the quantity of plywood imported in 1947 was 3,498,055 sq. ft., valued at P860,704, and in 1948, 7,810,638 sq. ft., valued at Pl,848,960. Copra and Coconut Oil By Manuel Igual Executive Vice-President, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company, Inc. June 16 to July 15, 1949 IN a market such as coconut oil is going through at present, where buyers consider the product de finitely overpriced, the tendency is to keep inven tories at a bare minimum and rely on current pur chases to replenish the minimum requirements which cannot be dispensed with. Moreover, with future prospects pointing to lower prices, the temptation is to sell short. This makes the market particularly vulnerable to unexpected factors affecting supplies adversely, and is likely to backfire against the buyer who cannot wait and the speculator who fears being caught short. Disappointing copra supplies, due largely to the continued decline in oil and copra prices, upset the copra market twice in the period under review, at neither time very seriously or for long, but on both occasions sufficiently to add an ad ditional gamble to an already over-speculative busi ness. 346 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 On June 15 the copra market was stagnant at around $140 c.i.f.P.C. and perhaps $135 f.o.b. for Europe. Buyers were talking the market lower, but sellers were continuing to resist and we know of no actual business at under these prices, which however were chiefly for immediate or prompt shipment. Dur ing the last few days of the month, however, one of the Coast operators was caught short and within three days bid the market up $25, culminating in sales at $160 c.i.f. for July shipment. European quota tions also advanced and on July 1 there were buyers for small quantities at as high as $150 f.o.b. This flurry was soon over, shorts covered them selves, again the markets started down, and business was done at $145 or a bit more, with indications of continuing recession. On July 12, however, Pacific Coast mills awoke to the fact that copra was not in. good supply, and that they were short anywhere be tween 10,000 and 14,000 tons to meet August oil com mitments. Overnight, therefore, this very sensitive market tightened up and on the 15th business was done as high as $165 c.i.f.P.C., a pleasant surprise to copra producers. Again the spurt was shortlived, and even on the 15th there were signs that the edge was off. It could not be disguised, however, that there will probably still be plenty of demand for copra throughout July, but presumably at somewhat reduced prices. At any rate the decline was temp orarily checked during this period, and the price im provement gave new incentive to copra producers, who have been neglecting copra-making on a conti nuously falling market. On July 15 there were sellers at $165 c.i.f.P.C. or $150 f.o.b. with buyers holding back, but with good grounds to believe that coast mills are still somewhat short as well as some operators who have European shipments to make. There still is very little interest for August copra, most of the demand being for spot. MEANWHILE, coconut oil was slower to move, particularly on the East Coast where it hung persistently at around 12 to 12% cents per pound for August delivery, with July at a premium. This was influenced to some extent by threats of July import ation of Dutch East Indies oil via Rotterdam. Never theless, the market did advance, and reached a point where July delivery was sold in New York at 15 cents and August 12% cents, possibly 13. As in copra, there was a subsequent reaction, and on July 15 buy ers were again on the sidelines and waiting for lower prices. It was felt, however, that with Coast mills still short, East Coast buyers would have to re-enter soon to cover their requirements. Coast prices, be ing based on tank cars instead of bulk, fluctuated even more widely, and the spread in prices between July, August, and September oil was at times as much as 3 cents per pound, a very exaggerated spot pre mium, and an unhealthy one. During this period Philippine dealers sold a fair but not a great amount of copra and Philippine oil mills did a considerable volume of business to the Atlantic Coast, as well as a small amount to the Pa cific. LOCAL markets followed export trends closely, Manila prices ranging from P24 to P28, down to P25, and then back to as high as P30. Cebu prices ranged from P25 to P28. Supplies were disappoint ingly light, but gave promise of marked improvement if prices remained steady. Dictograph system is individuallyengineered to solve your firm’s specific intercom problems! ONLY DICTOGRAPH HAS ALL THESE ADVANTAGES! Please Consult FLEXIBLE. Engineer number of points.' GUARANTEED FOR 10 YEARS ... the proof of quality. Salaries are high these days. And if an employee spends part of his time running around the office or plant looking for in formation it’s an expensive waste of time! But with dictograph intercommunication at work, efficiency rises, costs drop! Be cause Dictograph keeps people at their work, helps everyone get more done in less time, and naturally saves you money in the process! Exclusive Distributor H. L CHITTICK £ CO., INC. lll-13th Street Port Area, Manila August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 347 Copra exports for June again lagged behind, totalling 34,748 tons as contrasted with 53,488 in June, 194.8, and distributed as follows: Total.................................... 7,874 ” U. S. Pacific Coast ............ ... 22,064 tons U. S. Atlantic Coast ........ ... 3,174 " U. S. Gulf Coast ............... ... 1,636 ” Total........ Canada ................................. 500 ” Europe ................................. ... 7,272 ” Ecuador ................................ 102 ” Grand Total.......... 34,748 tons Coconut-oil exports totalled 5,681 tons, as against 2,108 tons in June, 1948, distributed as follows: United States Pacific Coast ............... 316 tons United States Atlantic Coast ............... 3,857 ” Europe .......................................... 1,508 ” Total............................. 5,681 tons For the first six months of 1949, copra exports totalled 239,340 tons, as contrasted with 349,826 tons in 1948, and 447,693 tons in 1947, a truly remarkable decrease. Coconut-oil exports, on the other hand, are increasing modestly, totalling 25,757 tons for the first half of 1949, as contrasted with 15,556 tons for the corresponding period of 1948, and 8,496 tons for 1947. Indications are that the overall local production of coconut oil is increasing gradually. As predicted last month, copra cake and meal were easy, European prices ranging from $38 f.o.b. down to $36 and Coast prices from $54 c.i.f.P.C. down to $53, with the tendency downward. On the Coast, the preference seems definitely to be switching from meal to expeller cake, which Coast mills are selling in bulk. THE London Financial Times of July 4 makes the following statement: “There is a surplus of oils and fats in hard currency ter ritory with low price levels, but a shortage in the rest of the world, where very high prices prevail. The surplus, how ever, is inadequate to cover the shortage even if, by some means, it.could be made available to the rest of the world........ In 1948, supplies for Europe and the rest of the world exclud ing the United States, increased by 880,000 tons over 1947. In 1949 the increase over 1947 is expected to be nearly 1,100,000 tons. This is not thought satisfactory, the rate of in crease being lamentably slow considering the serious world shortage.” Europe appears to be largely out of our picture at present, and the Philippines today is chiefly de pendent on United States markets to sell its copra and oil. United States markets, although perhaps light on coconut oil, have a great surplus of other oils and fats. Consequently, in spite of minor fluc tuations and notwithstanding world shortages, the prospects for marketting our oil and copra during the remainder of the year at today’s levels are not too good, and ordinarily lower prices would be expected. Nevertheless, the Philippine copra crop is short, and American requirements, even though at a minimum, must be filled. For that reason there is still a chance that Philippine oil will remain at what appear to be artificially high levels, provided supplies do not pick up considerably during the next month. Usually at this time of year they do, but they have been disap pointingly slow so far in 1949. Consequently, al though signs at present point to lower prices for consider offset printing FOR MORE SPEED MORE VOLUME MORE VERSATILITY 348 AMERICAN_C1IAMBER OF_CqMMERCE JOURNAL____________ August, 1949 copra and oil, there is nothing certain about it, and until the market is more sufficiently supplied, minor fluctuations and spot premiums are likely to continue, but with an overall downward tendency. ON July 27, President Truman s’gned a proclama tion restoring the two cents additional excise tax assessed against coconut oil processed from copra of other than Philippine origin effective August 27. Prior to independence, this additional tax was im posed as a special protection to the Philippines, and it was subsequently continued in the Philippine Tradte Act of 1946. The preference was temporarily waived in 1946, however, by agreement between the Pres idents of the Philippines and of the United States, be cause of the world shortage of copra and coconut oil at that time. It was to be restored when supplies of. Philippine copra and oil were again adequate. This is now assumed to be the case, and President Truman’s action is but a compliance with the agreement, and restores the tax to its previous status. The significance of this additional tax is that copra and coconut oil of other than Philippine origin must pay a considerably heavier processing tax than Philippine copra and oil, the consequent result being that to -all intents and purposes Philippine copra and oil should have a virtual monopoly in American markets. This should serve to stabilize prices of these commodities, but will probably have very little effect on overall prices, because with plenty of Philippine copra and oil available, prices will be controlled by effective demand. The chief advantage to the Philip pines of the additional tax, therefore, will be to pre vent undercutting of normal levels by oil and copra produced outside of the Philippines, generally in softcurrency countries, where the urge to obtain dollars tends to encourage low selling prices. Desiccated Coconut By Howard R. Hick President, and General Manager Peter Paul Philippine Corporation THIS report covers the period from June 16 to July 16, 1949. Generally the situation in the industry has been maintained under normal condition. No-major developments ot changes have occurred and aside from the shutting down of some plants in Luzon (PPPC is not operating since July and Blue Bar is still shut down) all other plants are under normal operation. Red V Coconuts Plant in Oroquieta is undergoing tests preparatory to actual production. Price of copra now stands at P27 which marks an increase over the price a month ago. PRODUCTIVITY OF LAND BY IRRIGATION USING BYRON JACKSON DITCH PUMPS CAPACITIES: Up to 7500 GP. . SIZES: 12” And 16” DRIVE: Motor, Gear or Belt SIMPLE & RUGGED CONSTRUCTION Your Inquiries Arc Invited NS, KROLL & CO., INC. MACHINERY DEPT. Port Area, Tel. 2-94-67 August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 349 The following statistics indicate the shipments of desiccated coconut for the month of June: Shippers Franklin Baker Co. of the Philippines . 3,857,920’ lbs. Blue Bar Coconut Company ................ 429,920 ” Peter Paul Philippine Corporation .... 2,467,600 ” Red V Coconut Products, Ltd................ 2,075,000 ” Sun-Ripe Coconut Products, Inc.......... 498,500 ” •Standard Coconut Products .................. 81,400 ” Isabelo S. Hilario ................................. 0 ” Cooperative Coconut Products Inc. ... 275,000 ” Tabacalera............................................... 250,000 ” Luzon Desiccated Coconut Corp............. 0 ” Coconut Products Corporation of the Philippines ..................................... 172,440 ” Universal Trading Co............................. 0 ” 10,207,760 lbs. Sugar By S. Jamieson Alternate Secretary-Treasurer Philippine Sugar Association HIS review covers the period from July 1 to July 30, 1949. New York Market. June closed with 75,000 tons of raws, mostly Puerto Ricans and Philippines, on offer at 5.90 cents, and refiners, on the one hand, showing little interest in the offers, while sellers, on the other, were not forcing the sugar on the market. Both parties were seemingly disposed to let matters ride until the Tong week-end holiday for July Fourth was over. On the resumption of business after the holidiay, there were indications that sellers would shade their price and that moderate quantities might be bought at 5.85<s, and on July 7 small lots of Puerto Ricans, Philippines, and Cubas were actually sold at that price. As the longshoremen strike in Hawaii showed no signs of an early settlement, the California and Hawaiian Refinery, San Francisco, continued its buying of available Philippine parcels, and as these became scarcer, turned to Cuba for supplies, buying there about 25,000 tons at the equivalent of 6.03? New York basis, duty paid. It is estimated that altogether this refinery has bought about 75,000 tons of Philip pine sugar. It also bought a small lot of Puerto Ricans at 5.94<£ c.i.f. San Francisco. In spite of a good distribution of refined, the Eastern refiners stayed out of the market for raws, though indicating interest if sellers would shade their price, and on July 19 sellers let go of small lots at 5.80?, followed next day by a sale-of 2,000 tons Philippines nearby at 5.75e. It became evident that refiners would' be active buyers at these prices, but, though further small lots were sold at 5.80?, sellers generally held out for 5.85? to 5.90?. In the last days of the month, the market developed a firmer tone, and closed with sellers at 5.90? and buyers at 5.85? for suitable positions. In the New York sugar exchange quotations for the period June 24 to July 22, 1949, we are including quotations for the new contract No. 6 as well as for contracts Nos. 4 and 5. Contract No. 6 was referred to in our previous review and trading in it started on July 18. CLOSING QUOTATIONS ON THE EXCHANGE From June 24, to July 30, 1949 Contract !, Contract Contract e {From July 181 July .................... 4.11 5.35 Sptember ............ 4.11 5.37 November ........... .... .... 5.29 March ................. 3.87 5.12 5.07 May .................... 3.85 5.12 5.07 July .................... 3.89 5.16 September .......... 3.89 5.16 Total sales .. 59,900 tons 126,000 tons 46,100 tons Local Market, (a) Export Sugar. Buyers were quoting nominally P13.50 per picul ex mill warehouse for any 1948-49 export sugar that might yet be avail able. It is reported that forward contracts for fairly substantial quantities of 1949-50 sugar, for delivery up to December 25, 1949, have been made at prices ranging from Pl3.00 to Pl3.25 per picul ex mill ware house, and buyers seem disposed to enter into further contracts at P13.00. (b) Domestic Sugar. The market developed considerable strength and at the close there were buyers at from P19.00 to P19.50 per picul ex mill warehouse for centrifugals. It is reported that deal ers and large users of domestic sugar are interested in making forward contracts for 1949-50 domestic centrifugal sugar on the basis of PI 6.00 per picul ex mill warehouse. __7?^ZBlue Ribbon—, Distributors: F. E. ZUELLIG, INC. 55 ROSARIO ST., MANILA_______________ TEL. 2-95-43 Hear MUSICANA - DZRH SUNDAYS 9 P.M. 350 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 General. 1949-50 Philippine Crop. A prelimin ary estimate places total production at 790,000 short tons as compared with 723,600 short tons (approxi mately) for the 1948-49 crop. In some of the Visayan districts planting was delayed by -a prolonged dry spell, but rains have now fallen, enabling some districts to catch up on their planting, besides having a beneficial effect on the cane already planted. 1948-49 Cuban Crop. It is reported that the final out-turn was 5,763,014 short tons, as against 6,674,950 short tons for 1947-48. United Kingdom. The British Government has decided to reduce the present ration of sugar from 10 to 8 ounces weekly, and to re-impose the ration on sweets, hoping thereby to effect a saving of 180,000 tons of sugar purchases from hard currency areas. Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period June 16 to July 15. We have witnessed during this time what’ might be termed the initial period of readjust ment of abaca prices following the period of the in flated post-war values. For several months we have stressed in this re view the depressed state of the United States cordage industry, and the very cautious attitude of abaca con sumers over all the world. Abaca values declined only slightly earlier in the year when almost all other commodities declined materially, but, undoubtedly, a. latent weakness was present in the abaca market al though not reflected in prices at the time. The with drawal of SCAP buying late in June when its appro priation for the fiscal year July, 1948, to June, 1949, became exhausted, proved to be all that was necessary to bring out the incipient weakness of the market. The deteriorating dollar position in Europe and the fact that Germany and Norway were overstocked with abaca and endeavoring to resell their surplus, made it increasingly clear to United States buyers that their more or less complete withdrawal almost cer tainly would lead to substantially lower prices, which United States consumers quite rightly felt were over due in view of the depression-level operations of the cordage industry in the United States. Continued poor demand for the finished article made such a policy easy and, in many cases, absolutely necessary. The SCAP withdrawal is only temporary. It will probably be back in the market by September or October when details of the new appropriation will have been worked out. It is expected that the re quirements for the fiscal year July, 1949, to June, 1950, will run about the same as last year. It appears certain that we have now witnessed the death of the longest bull market for Manila hemp in history. The advance began in September, 1940, with Davao JI around P10 per picul, and terminated in February of this year, when this grade hit a high of P70 per picul. It is impossible to say at what level abaca prices will finally flatten out, but there is lit tle doubt that the high prices which have ruled for about the last year will not return in the foreseeable future. The severity of the decline during the last four weeks is illustrated in the following Philippine provATLANTIC, GULF & PACIFIC CO. OF MANILA FOR 48 YEARS THE GREATEST NAME IN ENGINEERING AND 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 Distributors for: Allen-Bradley Company American Blower Cor poration Armco' International Cor poration Armstrong Machine Works Chain Belt Co. of Mil waukee Cherry - Burrell Corpora tion Coffing Holst Company Dempster Brothers, Inc. Dodge Manufacturing Company Fairbanks, Morse & Co., Inc. Firth-Sterling Steel Com pany Gardner - Denver Com pany Gar-Bro Manufacturing Company Johnson Service Com pany Lincoln Electric Com pany McCray Refrigerator Com pany Marion Power Shovel Company Mystik Adhesive Pro ducts Pioneer Engineering Works, Inc. Smith Welding Equipment Corp. Staples &. Pfeiffer Tube Turns, Inc. Walsh Refractories Cor poration Western Brass Works Western Rock Bit Mfg. Co. York Corporation MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muelle del San Francisco & 23rd Street, Port Area, Manila Tela.: 2-83-64 • 2-84-82 EXECUTIVE OFFICES • ENGINEERING DIVISION STRUCTURAL & MACHINE SHOPS Barrio Punta, Santa Ana, Manila Tcls.: 6-75-31 • 6-75-32 * 6-75-33 August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 551 incial and New York quotations as of July 15, show ing the decline in prices since June 15: Philippine provincial quotations as of July 15: Per picul basis loose Davao I . . Davao JI . . Davao G . . Non-Davao I Non-Davao G Non-Davao K P52.50 — Down 51.50— Down 44.50 — Down 47.00— Down 35.00 — Down 24.00 — Down P 8.50 per picul 8.50 ” 8.50 ” 15.50 ” 10.00 ” 3.50 ” The readjustment in the price of abaca which has probably passed through only its initial phase should not work any great hardship on local produc ers who, even at prices lower than those now ruling, still have a good margin. On the contrary, the de cline should in the long run benefit the Philippine abaca industry as a whole because prior to this de cline, the industry had just about priced itself out of the United States market. Cheaper substitutes were being increasingly used and had such a state of affairs continued, it would eventually have lead to the possi bly permanent use of substitute fibers. New York quotations, July 15: Per lb. c.i.f. New York Davao I . . . .. 25 ne — Down per pound since June 15. Davao JI . . . 247s — Down 27sC ” ” ” ” ” Davao G . . ,. 22»/3 — Down 2 Y> ” ” ” ” ” Non-Davao I . 24 — Down 4 ” ” Non-Davao G .. 18% — Down 27s ” ” ” ” ” Non-Davao K . 13% — Down 1 % ” ” ” ” «e,e You’ll sense something differ ent when your fingers touch the highly responsive keys. It’s Rhythm Touch ... to make your type* writing easier. Your fingers will find comforting ease in the light ning key response. You’ll note better-balanced finger action . .. the free-and-easy rhythm of Underwood’s finest typewriter... the popular choice of secretaries and executives. With Rhythm Touch . . . plus other new refine ments . . . you get all the time-tried famous Under* wood features .. . they make typing easier. See this new Underwood Standard Type writer... with Rhythm Touch ... NOW! You can stop over in beautiful Hawaii... swim at famed Waikiki Beach ... enjoy Hawaii’s balmy climate, exotic flowers. 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Phones 5-10-75, 5-12-65 Pan American 4 % World Alrwain \ / •Trade Morlu, Pan American Air 352 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 All consuming markets ruled very weak during the period under review, with no business to speak of outside of limited stockpile purchases, principally of Davao grades. Exporters pressed sales which in the very weak state of the market naturally led to a wide break in prices with only negligible business being transacted. Philippine buyers have shown lit tle or no interest, prefering to stand by and await some indication as to the level at which prices will settle down. Af the time of writing, both consuming and pri mary markets continue very weak. Production for June, 1949, was 45,847 bales — an increase of 4,673 bales from May, 1949. NonDavao balings totalled 24,567 bales — up 1,660 bales from May. Davao balings were 21,280 bales — up 3,013 bales from May. Exports for June amounted to 45,089 bales. Production for the first six months of 1949 amounted to 281,641 bales, against exports of 266,054 bales for the same period. Production for the first six months of 1948 amounted to 362,246 bales — 80,605 bales more than for the first six months of 1949. Production for the second half of 1949 should exceed considerably th'at of the second Tobacco By the Conde de Churruca President, Manila, Tobacco Association THE National Tobacco Corporation, under the able direction of the Hon. Cornelio Balmaceda, Chairman, and Mr. Vicente Formoso, Manager, is giving very special consideration to ways and means of improving the quantity and quality of the tobacco crops, with the aim of eventually arriving at results that will permit Philippine tobacco to adjust itself to world market conditions, and thus become again a source of income to the country. It is stated officially that prices have been fixed at a high level so as to encourage the farmers to plant more, thus to increase production and consequently to lower future crop prices. Following is the list of prices fixed for the dif ferent localities and grades: Prices per Quintal (46 kilos) Province of Isabela Pueblos Pueblos altos bajos For la. Clase ......................................... P42 P36 ” 2. & 3a. Clase ................................ 35 34 ’’ 4a. Superior..................................... 32 32 ” 4a. Corriente ................................... 30 30 Province of Cagayan For la. Clase .......................................... P34 P32 ” 2a. & 3a. Clase ............................. 32 30 ” 4a. Superior .................................... 30 28 ” 4a. Corriente .................................. 26 26 WELDED STEEL All Ball Bearing JAMESTOWN. N.Y BURROUGHS FILING CABINETS You’ll worry less, get more done, with a dependable new Burroughs adding machine to speed and simplify your figuring work. Use it in your store, shop or office— large or small. Use it at home. Give us a call and find out why a Burroughs is your best adding machine buy. BURROUGHS, LTD. Phil. Chamber of Commerce Bldg., Manila Tel. 2-61-26 BURROUGHS DEALERS: DAVAO CITY. Burroughs Sales Office (also for MINDANAO-SULU) BAGUIO: Baguio General Trading NAGA, LEGASPI, LUCENA: Gabriel & Co. CEBU: Valeriano Alonzo BACOLOD: Warner Barnes & Co., Ltd. ILOILO: Warner Barnes & Co.. Ltd. INQUIRIES AT F. H. STEVENS & CO.. INC. 4th FLOOR, EL HOGAR FILIPINO BLDG. Manila—Tel. 2-86-13 August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 353 Province of La Union For la. Clase........................................... P32.20 ” 2a. & 3a. Clase ................................ 23.00 ” 4as........................................................ 16.10 Province of Pangasinan For la. Clase ...................................... P32.20 ” 2a. & 3a. Clase ............................... 23.00 ” 4as........................................................ 16.10 Obviously, at such prices the tobacco dealers and manufacturers will not be able to buy the lower grades unless they are prepared to suffer a substan tial loss; in spite of a willingness to co-operate with the Government, they will be forced to wait for big ger crops and lower prices, reducing their business for the present. The higher grades of tobacco in Isabela prov ince, from which wrappers and binders can be ob tained, will be purchased, as always, at a high price, for the competition to obtain this tobacco is very keen. But for the rehabilitation of the tobacco business, a further loss of foreign markets, even if for just a year or two, will mean another set-back; in some in stances, foreign manufacturers using Philippine leaf for blending may be forced to switch to other tobac cos, and perhaps may discontinue the use of our leaf for good. The higher cost of leaf tobacco for man ufacturers will put local cigarettes at a still greater disadvantage in competing with cheap imported brands, and will also probably encourage the import ation of Virginia leaf tobacco from the United States, as this can be obtained at fairly attractive prices and suits the taste of the public. All in all, we believe the Government is conduct ing a dangerous experiment; only time will tell. One of the products which competes with ours most seriously in European countries is the Santo Domingo leaf tobacco. During the month of June, 6,500,000 kgs. have been refused at $25 per 100 kgs. f.o.b. Offers from Kentucky have been refused at $28 per 100 kgs., and Rio Grande dealers are offer ing at $30, accepting payment in pounds. To be able to meet these prices and sell at about $30 Manila, per 100 kgs. f.o.b. a quintal (46 kgs.) would have to be valued at a maximum of P27.60 f.o.b. Manila, allow ing for a 5c/o margin — Pl.38. Fixed expenses for fermentation, commissions, transportation, arranging, inspection fees, etc....................................................................... P 7.00 Overhead expenses depending on volume of purchases, about ............................................. 5.00 There would be P14.22 left for the farmer. Although the stated prices can be paid for the lower grades, of the Pangasinan, Union, Ilocos, and Visayan provinces, it is very doubtful that they can be maintained in the Cagayan Valley where the farm ers last year received between P25 and P40 a quintal, depending on the quality. Exporters’ possibilities will be considerably reduced because they will be ob liged to sell at prices much over those of the world market, and even then will sustain a loss, for with small-volume purchases the overhead expenses run well over the P5 limit. In the local manufacture of cigars and cigaret tes, especially the latter, it is necessary to produce cigarettes which will attract buyers because of their low price, for if there is no saving, smokers, followSILVER AND JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. Z JAVA PACIFIC LINE N. V. S. M. '‘Nederland" N. V. Rotterdamache Lloyd Amsterdarrv—Rotterdam KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York MANILA VANCOUVER LOS ILOILO CEBU To and From SEATTLE PORTLAND ANGELES and SAN FRANCISCO To and From BOMBAY and CALCUTTA ★ SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Piacc, 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. 2-82-0 SUPERIOR GAS & EQUIPMENT CO. MANUFACTURERS AND MANUFACTURERS’ REPRESENTATIVES MANUFACTURERS OF: • Highest Quality OXYGEN & ACETYLENE GASES For All Welding Purposes • SUPERFLAME Bottled & Tank Gas for all Cooking Purposes — Complete Instal lation & Service facilities • CARBON DIOXIDE In liquid form for bottled drinks • CARBON DIOXIDE "Superfriz” Solid form for Frozen Food preservation • CARBON DIOXIDE In liquid form for Fire Extinguishers • Distributors of NATIONAL CARBIDE. WELDING EQUIPMENT & SUPPLIES, • HYDROGEN GAS For Balloons & Under water cutting of Steel 354 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 FERTILIZERS SULPHATE OF AMMONIA SUPERPHOSPHATES SULPHATE OF POTASH MENZI & CO., INC. Iloilo MANILA Cebu J. M. MENZI Bldg. Corner Reina Regente & Soler Streets Tel. 4-79-29 Wherever You Are ROOM AIR CONDITIONERS answer your need RAIN or SHINE CARRIER AIR CONDITIONER is just the thing for your office, home, or clinic, on hot, sticky days, or when it’s raining hard and the humidity is oppressive. THREE MODELS AVAILABLE: Master, Executive, and Deluxe. We will gladly make a survey of your requirements without obliga tion. THE EDWARD I. NELL CO. ing the trend of fashion, are apt to switch to the im ported products. We therefore have to employ the cheapest leaf tobacco possible, and anything higher than P20 per quintal at the factory makes it very hard to compete with the cheap imported cigarettes and the products of clandestine manufacturers who resort to all sorts of tricks to avoid legal require ments. We are well aware of the interest that the Gov ernment is taking in assisting farmers, workers, and business in general, and some practical achievements like the enactment of Bill No. 2217 (Republic Act No. 419) are to the benefit of all. Import control, if wisely applied, may also help the industry. The statistics will tell us what has been achieved after the first six months, though no great results will be felt until after at least a year, as large stocks had been accumulated by importers. The problem that has to be solved is simply how to obtain bigger crops of tobacco at substantially low er prices, and, more difficult, how this can be done without disrupting existing business conditions al ready none too good. Some of the following suggestions, put forward by the Manila Tobacco Association, may be worth trying: 1. Distribute seed to the farmers at the right time. 2. Provide seed beds, on government lands and with gov ernment funds, in the different tobacco regions so as to help the farmers who have not enough seedlings for transplanting when bad weather conditions damage their own. 3. Extend such facilities as working implements, cara baos, etc., to farmers who need them. 4. Give more lands to families which can develop them. 5. Mechanize some of the harder labor so as to help the farmers produce bigger crops. (The farmer would gladly pay a small fee for assistance in this matter.) 6. Distribute fertilizer to improve yields; provide better irrigation facilities; control insects and pests. 7. Offer cash prizes to farmers in each district who ob tain (a) the biggest crops, (b) the best tobacco, (c) the best classifications, etc. 8. Compensate in cash the farmers who lose their crops because of floods, typhoons, etc., but oblige them to help other farmers who have bigger crops than they can handle. 9. Subsidize farmers who because of world market con ditions, have received inadequate payment for their crops. 10. Prepare for the future and .increase the number of farmers by systematically emphasizing to the younger genera tion the necessity of agriculture to make the country as selfsufficient as possible; help young people to get established on farms. 11. Intimate co-operation between the Bureau of Agri culture and the National Tobacco Corporation is desirable. We know the Bureau of Agriculture has very capable men, but its funds are inadequate. • It would probably save a lot of money and avoid duplication of personnel to combine the efforts of the two organizations. Summing up, we believe that the problem of in creasing tobacco production has to be solved by at tacking the causes, and these are, as we have pointed out: a decrease in the number of farmers, as many of the younger people prefer to enter other lines of activity; lack of means, caused by the losses suffered during the occupation; very bad weather conditions during the past three years. Although it is not pos sible to change adverse weather conditions, much can be done to ameliorate the effects, so that our farmers will not get too discouraged and turn to other enter prises. August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 355 Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Boss, Selp, Carrascoso & Janda THE BALLANTYNE SCALE. — The value of Japanese currency was the subject of consider able study in the early days of liberation, Mr. Aik of the Foreign Funds Control section of the U. S. Treasury Department, and Mr. Belgrano of the Pank of America, financial adviser to U. S. High Commissioner McNutt, both worked on this problem. At the request of President Osmeiia, Mr. D. L. Ballantyne of the Chase Bank, who had been stationed at Hongkong prior to the war, came to the Philippines in 1945 as a Special Bank Adviser to the President. Mr. Ballantyne developed a schedule by which debts in Japanese currency could be paid with the equivalent in post-liberation currency, verified from known transactions of exchange between Japanese invasion currency and pre-war Philippine pesos, of which approximately P200,000,000 were in circulation as of January 1, 1942. It is substantially the same as the solution recommended by the others who work ed on the problem. The schedule prepared was: .1 9 42 ................. 1.00 .1 9 4 3 January .............. 1.05 February ............ 1.10 March ................ 1.15 April .................. 1.20 May ................... 1.25 June ................... 1.30 July ................... 1.40 August .............. 1.50 September ......... 1.60 October .............. 1.70 November .......... 1.80 December ........... 2.50 .19 45 January ............ 4.00 February .......... 5.00 March .............. 6.00 April ................. 9.00 May................... 12.00 June ................. 15.00 July ................. 20.00 August ............. 25.00 September ........ 30.00 October.............. 40.00 November ........ 60.00 December .......... 90.00 .1 9 4 4 January .......... 120.00 After that schedule was prepared, Common wealth Act No. 727 was approved, effective Jan uary 18, 1946. Among other items, this act contained the following: “SECTION 1. All payments made on demand or tendered and accepted during the period of the Japanese invasion on obligations incurred or contracted prior to and during such period shall be considered valid, and all obligations thereby satisfied during the period of Japanese invasion shall be con sidered fully discharged.” SWANr CULBERTSON & FRITZ, INC. BROKERS IN LOCAL AND FOREIGN SECURITIES Member—Manila Stock Exchange New York — San Francisco Correspondents — Honolulu — Uruguay Shanghai — Hongkong 701 S. J. WILSON BLDG. f 2-74-55 143 JUAN LUNA 1 \ 2-80-53 Work on the Rockwell biuiioi. al Makati is progressing as ra pidly as arrival of equipment allows. The completion of this new power station will make an additional 60,000 kilowatts available to supply the increased demand for electricity in Manila and ita 6 0 9 MANILA ELECTRIC COMPANY 134 San Marcelino, Manila 356 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 LINK-BELT BEARINGS Ball, roller and babbitted bearings are av ing Link-Belt line. Unique design plus prec to giv\? them dependable, economical, job ailable from the outstandmanufacture, combine -proved service. Complete lins of mounted and unmounted bearings to meet all requirements. OTHER LINK-BELT PRODUCTS INCLUDE: Chains and Attach ments... Sprockets... Shaft Couplings and Collurs... Clutches... Speed Reducers... Variuble Spved Changers... types, etc. Let us figure your needs. Conveyors of various Official Link-Belt Representative THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Cor. Tacoma & 2nd Sts. Port Area, Manila TELEPHONES: 2-G8--18, 2-G7-47 & 2-G7-59 “BLACK&WHITE" SCOTCH WHISKY Sole Distributors in the Philippines KUENZLE & STREIFF, INC. 343-347 T. Pinpin Street (Between Dasmarinas & Gandara Streets) Tel. 2-60-74 Manila “SEC. 4. Any balance remaining unpaid on an obligation incurred or contracted during the period of Japanese invasion, including contracts of sale with right of repurchase and other contracts of similar nature, shall be liquidated in accordance with the value of the Japanese Military note in relation to the Philippine peso obtaining on the date when and at the place where the obligation was incurred, unless the parties had agreed upon another value or kind of money in which the obligation shall be discharged. In case of disagreement as to the relative value of the Japanese Military note on the date the obligation was incurred, the determination of the propei- value shall be left to the competent court.” “SEC. 6. All remaining balances of deposits made with banks or other institutions of credit including mortgage banks, savings banks, commercial banks and trust companies, or with private individuals, prior to the Japanese invasion, shall be valid and collectible in legal tender currency after the libe ration of the Philippines but shall earn no interest during the period of Japanese invasion;...” The United States Government opposed this law on the ground that it would legalize payments made in Japanese currency on pre-war obligations, to the detriment of creditors. On April 1, 1946, official information was re ceived that President Truman had disapproved this bill. On April 30, 1949, in the case of Hilado vs. De La Costa, G.R. 150, the Philippine Supreme Court said: "... Contracts stipulating for payments presumably in Japanese was notes may be enforced in our courts after the liberation to the extent of the just obligation of the con tracting parties, and, as said notes have become worthless, in order that justice may be done and the party entitled to be paid can recover their actual value in Philippine currency, what the debtor or defendant bank should return or pay is the value of the Japanese Military notes in relation to the peso in Philippine currency obtaining on the date when and at the place where the obligation was incurred, unless the parties had agreed otherwise. In the absence of evidence of the value of the Japanese war notes in terms of Philippine currency, and for the purpose of this decision, we may adopt the Ballantine scale of values for the Commonwealth (now Republic) peso in terms of the peso in Japanese war notes during the occupation, which gives the ratio of 90 to 120 pesos in Japanese war notes to one peso in Commonwealth currency on December 24, 1944, ....” Following the principle of that decision, the Phil ippine Supreme Court, in case No. 1525, Soriano vs. Abalos, July 27, 1949, said: “It is also maintained by petitioner that the damages awarded to respondents were based erroneously on a value equal with that of Japanese war notes as were due in De cember, 1944. We believe that this contention is well taken. Petitioner is not liable to pay now in Philippine currency the same number of pesos in Japanese war notes to which ha was sentenced on December, 1944. He is liable only to pay MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS * ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 357 the equivalent which may be determined by means of the Ballentine scale of values, as held in Hidalgo v. De la Costa, G. R. No. L-150. According to that scale the value of Jap anese Military Notes in relation to the peso in Philippine currency on December 1, 1944, was 90 to 1. Consequently, instead of the sum of P3,200.00, petitioner should be sentenced to pay yearly P35.55 as damages beginning May, 1944, until the property is finally delivered to respondents. “For all the foregoing, the judgment of the Court of Ap peals is affirmed with the only modification that the peti tioner is sentenced to pay respondents, counting from May, 1944, until the property is delivered to respondents, as dam ages the amount of P35.55 yearly, plus costs. If the price consigned in ccurt was destroyed, petitioner must bear the loss.” Mr. Justice Perfecto concurred with the further observation that in his opinion Commonwealth Act 727 was not subject to veto by the President of the United States and that the Ballantyne formula has the force of law. Textiles By James Traynor THE local textile market continued to be satis factory during the month of July. The highly restricted purchasing in the New York market that went on during the months of February through June has shown its effect on local prices which have now come into line with replacement costs. Importers have shown more confidence in making commit ments at present New York levels, but are still cautious. The arrivals during July were about the same as for the month of June. Inventories are being kept at a sound level and sales and collections are reported to be satisfactory. Office of the President. . . (Continued front page 337) at Pasig, Tagiig, and Taytay, in Rizal Province, carried out by the Bureau of Plant Industry, have been highly succesful the President directs that plans be drawn up to expand irriga tion through the use of pumps. In connection with the plans for Far Eastern economic collaboration, initiated by the President, Malacanan releases figures showing that during the past year 'the Philippines has bought a great deal more than it sold to possible mem bers of the projected Pacific Union and that closer trade liaison would tend toward a better balance. The Philippines bought P4b,000,000 worth of good from China and sold only P4,000,000 worth to China. Comparative figures for other coun tries are: East Indies,—P30,000,000 against P10,000,000; India, —P13,000,000 against P3,000,000; British East Indies,— Pll,000,000,000 against P213.000; Australia,—P2,500,000 against Pl,800,000. FOR RE-WINDING OF GENERATORS—MOTORS CALL E. J. MORA ELECTRIC CO.JINC. Address: 170-2 M. de Comillas Tel. 6-65-85 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: 2-81-72 358 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 etwee... iBank of America NATIONAL Things ASSOCIATION WILSON BUILDING. 139 JUAN LUNA MANILA PHOTO DEPARTMENT On the Escolta, Manila CEBU — ILOILO — LEGASPI — DAVAO The President receives a courtesy call from John B. Jor dan, a Washington, D. C., businessman, who is here to in vestigate investment possibilities in heavy industry on behalf of an American syndicate (unnamed). He states that he came here at the invitation of Mrs. Jean Harrison, who has mining interests here, and that so far he finds local condi tions favorable. July 20—The President issues a proclamation calling for a week of national mourning for the death of Justice Frank Murphy, last American Governor-General of the Philippines and first U. S. High Commissioner. Announced that the Philippine Electrical Manufacturing Company of which the National Development Company is a stockholder, will start producing fluorescent lamps by Dec ember and incandescent lamps by the middle of 1950. On a one-shift a day basis, the plant will have an estimated pro duction capacity of 625,000 fluorescent and 2,500,000 incan descent lamps a year. PEMCO will operate under Westing house licenses and will sell 25% of its output to Westinghouse for export from the Philippines; PEMCO will be the sole distributor for imported Westinghouse lamps in the country. PEMCO was organized in October, 1947, jointly by the Gov ernment and the Philippine Industrial Equipment Company, with an authorized capital stock of P2,000,000, to which the NDC subscribed 25% and PIECO and its associates the rest. The machinery is leased from the Westinghouse International Electric Company. The President’s Action Committee for Social Amelioration announces that P20,000 is being allocated to purchase raw materials to start a number of home-industrial projects among displaced persons in the Central Luzon provinces, including the weaving of hats and mats, fish-net making, embroidering, and the manufacture of coconut-husk products and shell brica-brac. July 21—Emerson Ross, ECAFE (Economic Commission for Asia and the Far East) deputy executive secretary, states that the development of the iron and steel industry is being given top priority: Philippine experts are quoted as saying that the Philippines has iron ore reserves aggregating 22,000,000 tons, not including the Agusan deposits, and scrap metal re serves estimated at 2,000,000 tons. July 22—A requiem mass is held in Malacanan for the late Justice Murphy. The Cabinet approves the reclassification of the port of Ozamis, Occidental Misamis, as a national port. July 23—The President takes up the proposed construction of a national shipyard in the Mariveles-Sisiman area, Bataan with Col. A. N. Bautista, of the National Development Com pany, and Bernardo Abrera, chief of the Philippine Reparations Mission in Tokyo. The project involves an outlay of some P16,000,000; buildings and equipment may be purchased from the Oregon Shipbuilding Corporation, Portland, and much other machinery is available from reparation materials already re ceived from Japan. Commodore Jose Andrada, commander of the Philippine Naval Patrol, appeals to the public for cooperation in safe guarding lighthouses and others aids to navigation, especially buoys and wreck-markers; he states the looting of self-operat ing lighthouses and wreck-lights has grown to an alarming scale. The legal penalty for tampering with navigational aids is imprisonment for from 2 to 4 years or a fine of not less than Pl ,000, or both. AGENCIES TELEPHONE CHARTERS 2-97-23 SALES American Steamship Agencies, Inc. MANILA, SHANGHAI, SINGAPORE, GUAM CABLE ADDRESS: “AMERSHIP” 214 MYERS BLDG. PORT AREA MANILA August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 359 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO 1949 (1941 = 100) Bureau of the Census and Statistics Manila 1946 All Food 1(9.15) House Rent (8.43) Cloth- 1 Fuel. Light I laneous (17.86) Purchas ing Power ing a (0.62) | ind Water (13.94) | January . 603.4I 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 1947* (100.00) (63.43) (11.96) (2.04) (7.73) (14.48) 1948 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 . . . 893.4 426.8 453.9 217.7 309.3 269.9 .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 1949 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 1 Average number of persons in a family = 4.9 members. 2 Revised in accordance with the new survey on the "Levels of Living, In Manila" by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. January . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February 343.8 355.5 453.9 203.0 277.5 258.9 .2909 March . . 346.3 358.2 453.9 202.0 276.3 258.5 .2896 April . . 348.7 362.6 453.9 197.6 287.5 257.1 .2868 May . . . 348.8 362.8 453.9 197.2 287.5 257.1 .2867 June . 349.0 362.9 453.9 203.9 287.5 257.2 .2865 July . . . 351.7 374.0 453.9 *194.2 265.8 240.5 .2841 PASSPORT PHOTOS Almar Studio MARY OFTEDAHL 321 A. MABINI TEL. 5-33-26 CHRYSLER CORPORATION AIRTEMP packaged Air Conditioning and Refrigeration Exclusive Distributors : W. A. CHITTICK & CO., INC. Ill, 13th Street, Port Area, Manila AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR H. HENDERSON President Seventh Floor, Wilson Bldg., Manila Telephone: No. 2-98-86 Cable: “Underiters” Managers in the Philippines for: — AMERICAN INTERNATIONAL ASSURANCE CO., LTD. COMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN’S INSURANCE COMPANY THE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY THE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS’ INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY — AUTOMOBILE — MARINE REINSURANCE FOR BETTER SERVICE — Call 2-77-03 ALLIED BROKERAGE CORPORATION Marsman Building Port Area Documents may be delivered to our repre sentative in the branch offices of MACKAY RADIO & TELEGRAPH COMPANY, Plaza Moraga and Trade & Commerce Building. Individual attention and competent super vision given to your customs brokerage require ments. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING 360 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 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 TIIE STATES NO TROUBLE JUST PHONE 2-79-35 MR. R. L. BARY LUZON BROKERAGE COMPANY Derham Building, Port Area The.. ’LET YOUR HAIR DOWN” ------------ ■-T . . - ■ _ — . Column WE received a letter during the month from the U. S. Department of Commerce, Washington, D. C., asking us to make a slight change in the addressing of the Journals sent to the Department. The letter stated: “The Department of Commerce appre ciates receiving your periodical, which is of considerable value to its analysts... We are grateful for your cooperation.” JN a letter to the editor, Ifor B. Powell, one of the leading British authorities on the Philip pines, said in part: “I am very glad to be having the Journal once again. Apart from the war period, I have now been reading it for over 20 years. Such a long time breeds a feeling of- real affection, and that is why I was anxious to have the Journal once again as soon as I knew that it had started up once more... I find the section on Legislation and Court Decisions most useful (if a mere historian may use the word ‘useful’) and so is the summary of the Malacahan press releases and the record of bills passed by the Congress. Being very human and a gossip, I join with your other reader? in finding the ‘Hair-Down’ column interesting, though it has not yet won so warm a place in my affections as your old ‘Four-o’ Clock’ in the Philippine Magazine. That is perhaps because your Cham ber hasn’t yet been sufficiently long in any one place for you to make your room the rendezvous for Manila’s in teresting folk and for visitors from across the seas. I have, however, had from it news on our mutual friend Marquardt and of Hornbostel and a picture of what there is left of Old Manila and the rise of the New which no one else had given me. It would take me too long to list the Journal articles which I have found of especial interest, but I recall there were several in your double number of last autumn, there was your Santo Tomas record in the December number, and since then an illuminating one on American capi tal in the Philippines. Your editorials in the Journal, like your old ones in the Magazine, are well written, critical, frank, and of great interest to a longrange student of affairs Philippine like me.... I wonder could we have from you articles about the American firms in business in the Islands. You have done Macondray. May we have other such historical articles? May we havo also each year in addition to the most useful list of laws passed, a critical re view of the work of each session? You used to have such an article each year in the Philippine Magazine. Would it be asking too much to have an article on shipping and on each other import ant industry, one by one? And on the main provinces, and the chartered cities, —government, politics, and trade? It probably would. You would hardly have the time. But here’s one reader who would welcome such articles. In thank ing you for so much, I am appreciative enough to ask for more... All my is sues have come through except that for January, 1948. Have you a copy I might have to complete that year? I should also like to have any copies you may have before the July, 1947, issue, which is the number I started up with again... Doc Beyer will have given you all my personal news. My kindest regards and thanks. Ever yours,” etc. Mr. Powell has been a verysteadfast friend ever since he spent a year or so in the Philip pines, a long time ago, to make a study of the Philippine Govern ment as it was constituted at that time. One can see, from all the articles he asks for, why he is an authority. But the list made the editor throw up his hands. “If Powell only knew what a time I am having to shake those articles loose which we do print!” he said. “I am always trying to get just the kind of articles he mentions. I go around, I talk, I write letters, Automatic Calculators To all who need accurate figures in a hurry,,, PHONE OR WRITE US FOR DEMONSTRATION ON YOUR OWN WORK SMiTHBELL^cdTTD. TRADE AND COMMERCE BLDS .MANILA August, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 361 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) AMERICAN PIONEER LINE on orders originating in Eastern United States UNSURPASSED SHIPPING SERVICE TO AND FROM ATLANTIC COAST PORTS “via PIONEER LINE” A g e n t: UNITED STATES LINE COMPANY Port Area, Manila Tel. 2-66-02, 2-70-47, 2-76-49 I outline, I beg. But I am not dealing with literary people and artists, and scientists and profes sors, and officials and politicians now, as I did when I was publish ing the Philippine Magazine. They were easy to get good stuff from. Those kind of people naturally write; they like to write. But businessmen! They are practical men, doers, managers, executives. They are busy. Their time is worth too much. They write, of course, or, at least, dictate, let ters, instructions, plans, programs, reports, but to sit down calmly and write an article for general reading is something most of them have not the patience for,— and if it is not that, then the very idea of coming out with a signed article has them bluffed. I have a suspicion also, that, among them selves, they rather look down on a writing fellow, especially the occasional writer who is not a professional. But the reportorial kind of writing,—writing at sec ond-hand, from a short interview and hastily taken notes, is hard ly worth while either. And so good articles, authentic, vital, important articles, about business by businessmen, are all too rarely written.” “I shouldn’t be the one to say it,” concluded the editor, “but I, at least, think we have been doing very well in getting the writing out of our businessmen which we have been getting for the Journal. Powell is just asking too much. But we’ll keep on trying.” 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 Kobenhavn, Denmark Head Ottlce: 5TH FL.. INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 2-96-17 Brandi Offices: SAN FRANCISCO—SHANGHAI SINGAPORE— PENANO TOKYO—YOKOHAMA—KOBE NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUCARCRAFT” all office! All Business Offices Need 5? Mr. Herdman's column article on Food Products reached us after this issue of the Journal was made up and we thought it an im portant article, we decided to run it in this column. We assure the readers of the ‘Hair-Down’ column, — there may be a feiv, that the material thus dis placed was of no importance whatever. Food Products By C. G. Herdman Marsman & Co., Inc. Director, Trading Division, CONDITIONS existing in the Phil ippine market on imported food products remain unchanged from June in all essentials. Very ample stocks exist of all principal commodi ties and in fact the market is seriously overstocked on canned milk. Information at hand with regard to further supplies of canned fish is any thing but encouraging. Stocks in the Philippines for the moment are ample but we are now in the period of heaviest consumption and it is very probable B-8 Stapler A low-priced stapler that is really good. • A desk fast ener, a hand stapler, and a tacker, all in one. • ATTACH PAPERS SECURELY • FASTEN PLAN COVERS • TACK UP NOTICES AND CIR CULARS • SEAL PARCELS AND BIG EN VELOPES • HUNDREDS OF OFFICE USES Easy to use on desk or in hand. Compact to carry in portfolio or pocket. Built by Bostitch for years of use. A really good stapler at a really good price. Distributed Exclusively By ASSOCIATED MERCHANDISING CORPORATION Ground Floor, Calvo Building Escolto, Manolo 362 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1949 lliat all local stocks will disappear with in the next 60 to 90 days. In the mean time the new fishing season in the Mon terey district in California is supposed to have started on the 1st of August. Information from California, however, is to the effect that the cannery work ers have demanded materially increas ed wages and other benefits from the cannery owners. Similarly, the fisher men and the fishingboat owners are de manding higher prices for the fish, and the cannery owners, believing it impos sible to meet these demands and ope rate at a profit, are making no effort to open the canneries. There is also information to the effect that although fish were running in Monterey Bay dis trict around the end of July that that e , . musts At th of Lubricate every 1000 miles. MO BI LO IL - world’s largest selling motor oil. Replace worn tires with rugged, depen dable ATLAS Tires — proved in millions of miles of use. Mobilgas, Enjoy Flying Horse power — fill up with MO BI LG AS at the Sign of Friendly Ser vice. run has disappeared and that fish pre sently would not be available even if the canneries were working. The full moon comes on August 9, hence fishing in any quantity, even if fish are avail able, will not be possible until about August 12. Hence even if all other difficulties are settled and fishing is resumed, shipments are improbable be fore the 15th or 16th. Should the fish run in the Monterey district be very light, as was the case in 1947, then we will probably be faced with shortage of canned fish in this market, as supplies in quantity would not be available un til the fishing starts in Southern Cali fornia, October 1, at which time this market should be practically bare of stock. VW1TH regard to wheat flour there ’’ are ample stocks at present in the Philippines and afloat to take care of nearby requirements. The International Wheat Agreement entered into between the countries which are signatories to the agreement and ratified it, became effective on the 1st of August, with the result that wheat flour, which is being furnished from Canada to the countries included in that arrangement, has been reduced by about $0.60 per 100 lbs. be low prices ruling to non-member coun tries and in the United States. The difference between such prices amounts to as much as $0.80 per 100 lbs. on some grades of flour. The Philippines does not enjoy this preferential price as, although it was one of the countries which signed the agreement, it has never been formally ratified by the Philippine Government and cannot be formally ra tified until the Senate reconvenes, which is expected to be in January, 1950. In the meantime, the Philippine Gov ernment authorities are endeavoring to have the Philippines included among those countries enjoying the benefits of the International Wheat Agreement with the anticipation that agreement will be duly ratified as soon as it becomes pos sible to do so. Negotiations to this ef fect are underway, but as yet no in formation is available as to whether or not they will be successful. "D ETAIL sources around Manila report increasing sales during the month of July due to the opening of schools and colleges and the influx to Manila of provincial students. This applies, however, only to certain lines. They advise that retail sales in gen eral continue on the down-grade due to constantly decreasing purchasing pow er. Provincial retail stores generally report continued decreased sales except in certain commodities which are in seasonal demand. This Journal Goes straight to the Desks of the leading Govern ment and Business Ex ecutives OIL COMPANY GIVES you MORE MORE IN YOUR NEW TIRES I'his B. T. Goodrich passenger car Silvertown costs less per mile. It is wider, flatter, so that more tread rolls oh the ground. Hundreds of curved tread edges give you quicker, safer stops and belter traction. And the cord body is stronger. Tests proie it outwears prewar tires. Safety with Seal-o-matic Puncture-Sealing Tubes Seal punctures as you ride. A gum-like rubber lining grips sharp puncturing ob jects instantly. No air is lost. When the object is removed, this lining fills the hole permanently — and still no air is lost. These tubes outlast 2 or more sets of tires. Pl T THIS COMBINATION ON YOUR CAR— PUT AN END TO TROl BIJiSOME HATS B.F. Goodrich FIRST IN RUBBER GreatOaks Grow.. i (w of Little Aeor^ Start a Savings Account with the NATIONAL CITY BANK OF NEW YORK TODAY! ► THE NATIONAL CITY BANE or NEW YOKE FIRST IN WORLD-WIDE BANKING Branches in the Philippines MANILA Main Branch: Juan Luna Street corner M. de la Industria Port Area Branch: Bonifacio Drive corner 13th Street PAMPANGA: Clark Field CEBU: Cebu City J AMERICAN EXPRESS TRAVEL SERVICE When thinking of TRAVEL always consult AMERICAN EXPRESS TRAVEL SERVICE REMEMBER it costs no more to buy your travel tickets by Air, Rail or Steamship through AMERICAN EX PRESS. A chain of offices throughout the world is maintained to render service to our clients. NEVER TRAVEL WITHOUT AMERICAN EXPRESS TRAVELERS CHEQUES THE AMERICAN EXPRESS CO., INC. El Hogar Filipino Bldg.—Juan Luna St.—Tel. 2-71-56 General Foreign Agents NEW YORK CENTRAL RAILROAD G-E lamp reiearch ii constantly at work Io give you more light hr leu money, to make G-E lamp* rtay brighter longerl Bo lure your lamp ii G-E... lor utmost light value and economy. GENERAL © ELECTRIC (PAI^^UiC. 120 13th Street, Port Area. MaoBa lei. 2-M-3I CARMELO & BAUERMANN, INC.