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. 9) September 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 seoond 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. Newton, 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 September, 1949 No. 9 Editorials — Contents President Quirino's American Visit ................................................................ Real and False Conservation of Natural Resources .................................... War Damage Payments .......................................................................................... Excessive Taxation by Local Governments .................................................... Appointment of the War Claims Commission ................................................ Nationalistic Discrimination and the Declaration of Human Rights .. Recommendations re American Investment, Memorandum to President "All Feasible Assistance" to the Philippines ....................................................... American Aid to the Philippines, Past, Present and Future .......................... Export Control ................................................................................................................... The San Miguel Glass Plant ........................................................................................ The Business View — Office of the President of the Philippines ................................................................................................................ Banking and Finance ........................................................................................................................................................... Stock and Commodity Markets ..................................................................................................................................... Insurance ...................................• .............................................................................................................................................. Electric Power Production ................................................................................................................................................. Real Estate ......................................................................................................................................................................... Real Estate Sales in Manila, 1940-1949 (Table) ............................................................................................. Building Construction in Manila, 1936-1949 (Table) ................................................................................... Ocean Shipping ..................................................................................................................................................................... Philippine Exports, First Half, 1949 (Table) .................................................................................................. Land Transportation (Bus Lines) ................................................................................................................................... Mining (and Rice Production) Lumber ............................................................................................................................. ....................................................... Copra and Coconut Oil ............................................................................................. ....................................................... Desiccated Coconut ........................................................................••.................................................................................... Manila Hemp ........................................................................................................................................................................... Tobacco ..................................................................................................................................................................................... Legislation, Executive Orders, Court Decisions ................................................................................................... Philippine Safety Council (Executive Order No. 259) .......................................................................................... Gross Sales, 1937-1939, Ten Leading Business Firms (Table) ............................................................................ United States Government Agencies in the Philippines — The U.S. Maritime Commission ................................................................................................................................... The U.S. Civil Aeronautics ’ Administration ............................................................................................................. Weekly Changes in Retail Prices (With graph) ............................................................................................................. Cost of Living Index, 1946-1949 (Table) ............................................................................................................................ The “Let Your Hair Down” Column ..................................................................................................................................... ............................................................................................................................................... 366 ............................................................................................................................................... 365 ............................................................................................................................................... 369 ............................................................................................................................................... 369 ............................................................................................................................................... 369 ............................................................................................................................................... 370 Quirmo ........ By a Committee of the American Chamber of Commerce 372 ...................................................... Official White House Statement .............. 374 Ambassador .Myron M. Cowen ................ 376 ...................................................... V. E. Bunuan................................................... 381 ........................................................ Andres Soriano 384 Official Sourca ................................................ 386 C. V. Grant .................................................. 387 A. C. Hall ..................................................... 383 V. H. Bello .................................................. 389 R. J. Baker .................................................. 389 C. M. Hoskins ............................................... 389 Bureau of the Census and Statistics ... 390 Bureau of the Census and Statistics ... 390 F. M. Gispert ................................................ 390 Associated Steamship Lines .................... 391 L. G. James ................................................. 392 C. A. Mitke .................................................. 393 L. J. Reyes .................................................. 394 M. Igual and K. B. Day .......................... 394 H. R. Hick .................................................... 396 H. Robertson ............................................ 397 S. Jamieson .................................................... 396 Conde de Churruca ...................................... 398 J. Traynor ...................................................... 399 E. E. Selph ..........'......................................... 399 F. S. Tenny ............................................ 401 Bureau of the Census and Statistics ... 402 United States Information Service, Manila 404 United States Information Service, Manila 405 Bureau of Commerce .................................. 408 Bureau of the Census and Statistics ... 410 ................................................................................. 411 50 Centavos the copy Ever heard talk like this about a tire? vA hV Il ’ 5 I ^Conventional Tire Here’s the amazing new type of tire that’s causing all the excited talk. These people will tell you about the new Super-Cushion—and the wonderful things it will do for your car! Super-Cushion Conventional Tire Ordinary ride New softer ride 1. Softer Ride! The Super-Cushion runs on 24 lbs. of air! It absorbs 2. Remarkable Safety! The Super Cushion has larger contact area with by MORE PEOPLE, THE WORLD OVER, RIDE ON GOODYEAR TIRES THAN ON ANY OTHER MAKS THE GOODYEAR TIRE & RUBBER CO. OF THE PHILIPPINES, LTD, Bacolod Manila Cebu Editorials " .. . to promote the general welfare” President Quirino’s American Visit President Quirino left Manila for the United States on August 6 and returned on the afternoon of August 18, — the trip thus cover ing a period of twelve busily crowded days which, many will agree, could not have been better spent. The President was received in America not only with distinguished official courtesies, but with the utmost cordiality everywhere he went. He was wel comed at the airport by the President of the United States, who also, personally, bid him farewell there a few days later. He addressed both the House and the Senate in separate sessions, his speech in the Senate being an especially masterful one. He was also able to find time and energy to address a number of important financial and business groups in New York. In connection with the dinner given in his honor by the Philippine-American Chamber of Commerce there and the National Foreign Trade Council, the former asked the Manila American Chamber of Com merce to send a message of greeting to be read at the dinner. President Frederic H. Stevens dispatched the following radiogram: "American Chamber of Commerce of the Philippines is glad that President Quirino has been able to accept the dinner in his honor given by PACC and NFTC. We are sure the meeting will be to the mutual benefit of the Philippines and the United States. We are immensely pleased with the reports carried in the newspapers of the President’s outstanding success in reinvigorating Philippine-American friendship. Our greetings, respects, and best wishes to him and you all." That was a sincere expression of our sentiments. Other than his brief speech at the airfield on his return here, the President has not as yet at this writing, released an official statement regarding his possible achievements. But no man could say what practical results will follow from the President’s visit to America, though there are bound to be such effects, ramifying in many directions, political and economic, national and international. We believe that these will be of decided benefit to both coun tries. In reading a magazine article recently, we came across a paragraph which suggested to us certain side-reflections, a train of The Real and the thought, which had nothing to False Conservation of do with the article we were Natural Resources reading, but which is of inte rest here in connection with the frequent agitation concerning the so-called “protection on the national patrimony”. The paragraph read as follows: "Protection of natural resources: The richly endowed United States has been peculiarly vulnerable because of torrential rains and the succeptibility of our soils to sheet erosion. Conservation of the soil and of the moisture content by contour and strip farming, by improved rotation, and especially geater concentration on grass culture, is thus an indispensable requirement. The preservation and reproduc tion of timber resources is closely related to soil protection. Systematic conservation of minerals is not less important. We are obliged to think not in terms of centuries merely but of millenniums.” Note that here is no word about mere land owner ship or about preventing lands or other natural re sources from being acquired or developed by “aliens”. Such questions are of the most temporary and indeed trifling importance compared to the conservation and wise utilization of the resources. Here we enter the clear realm of science, of man agement, of constructive statesmanship. Here we re gard realities, meet Nature’s challenges, solve difficult problems, formulate sound policies, carry out wise programs, develop, advance, construct, establish. Here the air is fresh and clean and full of the hope of achievement. Here we are away from the emotive, the narrow, the invidious, the stagnating, the retrogressive, the unutilized and wasted, the lost. Are we in the Philippines to continue to waste time arguing about restrictive laws and unjust and unwise court decisions while the land itself is allowed to waste away through such torrential rains and such frightful erosion as few Americans can have any con367 368 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 COMFORT when you In the the gracious when you fly No other airline today can match living that's yours P.A.L. Make your next flight via PJLL and comparel FLY P.A.L. DC-6 FIVEWTTT.W-A-MYN~fT'It^~ "• >RE3 S UBIZED-OAfilX BXKEPERS. A. Soriano y Cia.—General Managers Central Office: M.R.S. Bldg. Plaza Cervantes Manila Tel. 2-79-66 Tel. 2-79-67 Tel- 2-79-68 Branches: Manila Hotel—Tel. 2-91-35 * Avenue Hotel—Tel. 2-79-68 ception of ? While some of our farmed areas are being utterly exhausted by years of cropping, always the same crop, producing harvests hardly worth the reaping, vast territories are still idle wilderness, spoiling for the will and labor and the implements of pioneers. With great wealth hidden in our lands and forests and mountains and seas, millions of our people hardly get enough to eat, and thousands are un employed and hundreds of thousands only half-em ployed. But some of our so-called leaders argue passion ately, but emptily, about who is to be allowed to do anything. Ranting about the protection of the patri mony, it is being wasted and lost. The living gen eration can have but little hope for a better future unless capital is enlisted and work is undertaken, no matter by whom. According to a recent Associated Press dispatch from Washington, the chances that President Tru man will ask Congress to provide adWar Damage ditional funds to the Philippine War Payments Damage Commission to be used for larger payments for private and pub lic war claims, appear to be slight, although it was emphasized, too, that the President still has the mat ter under consideration. We hope that the President and members of Con gress will realize that the War Damage Commission has been able to pay only approximately 30% of dam age payments approved, and that the amounts ap proved are themselves admittedly way below present replacement costs, valuations being calculated on pre war costs less depreciation, there being, furthermore, broad classifications of losses which, under the law, may not be paid for at all. The result has been that many claimants have received damage-payments so small in proportion to their losses that it has been impossible for them to re-establish their wardestroyed enterprises. The foregoing is true only on the medium and large-scale enterprises,—small losses (under P1000) have been or are, under the law, being paid in full, but these are just the type of payments which, though important enough to the individuals receiving them, do not figure greatly in the rehabilitation of Philip pine industry. We have been informed that if another P100,000,000 or so were made available, the 30% payments to the larger losers could be increased to around 75%, and this would make a more than proportionately great difference to the industries and enterprises af fected. We hope that this will be understood in Wash ington. The memorandum on Philippine investment prob lems, submitted to President Quirino at his request by an American Chamber of ComExcessive merce committee and published in Taxation by substance elsewhere in this issue Local Government of the Journal, made no direct re ference to the increased taxing powers of the Manila City Government under the new Charter, and we are pleased, therefore, to pub lish the following suggestive statement on the subject received from a member of the Chamber: One of the drawbacks to both foreign and do mestic investments in economic development projects is the fear of excessive taxation by local governments. Even with the limited taxing power vested in munici palities, they still have the power to make or break a business enterprise. The recent amplification of the taxing power of the City of Manila highlights the fear felt in some investment circles. We do not assume that a local government will abuse its taxing power. We have too much faith in the principle of local autonomy to entertain such an assumption. Yet Philippine history records some examples of the killing of the goose that laid the golden egg. Dependent as local governments are on hand-outs from the central government, there is steady pres sure to raise more taxes. Once a large enterprise has already made a heavy capital investment, has given employment to hundreds or thousands of local citizens, and seems to be prospering, it becomes a tempting target for local revenue-raising ordinances. The local officials are quite aware of the fact that a fixed plant cannot afford to move to a more taxfavored locality, so little by little the impositions tend to grow. Inspection fees, license fees, and mu nicipal taxes are all resorted to, to help the local gov ernment balance its budget. To the American investor, particularly, this at titude is disconcerting, because it is so different from what he has experienced. The dispersion of indus try to small communities in the United States during the past century has been largely the result of induce ments offered by the local communities. Local of ficials join with civic and business leaders to “lure” industries to their town. Generally a free site is of fered. Tax guarantees are made and observed. As a result, employment increases, retail trade expands, land values increase, and every element of the com munity enjoys greater prosperity. Hence, too, the revenues of the town from all sources increase, with out the need to bleed the enterprise which has brought this increased prosperity and tax revenue. Perhaps if local governments were granted authority to make “tax treaties” with industries they wish established in their midst, there would be greater incentive to private investment in industry, and with it a healthier geographical distribution of industrial employment. Appointment of the War Claims Commission Welcome to many Americans in Manila who were interned by the Japanese during the war, was the announcement that on July 29, President Truman had nomi nated the members of the War Claims Commission authorized by the War Claims Act, ap proved July 3, 1948, — more than a year before. The persons nominated are: Daniel J. Cleary, of Illinois; Mrs. Georgia L. Lusk, of New Mexico; and David N. Lewis, of New York. Both men are lawyers and Air Force veterans. Mrs. Lusk, a for mer Congresswoman, lost a son in the war. Rumors which circulated in the Santo Tomas Camp were that President Roosevelt had been heard to promise over the radio that internees would be given a per diem of $10, payable immediately after liberation, but in addition to the fact that the aid is being so long delayed, is the fact that the “detention benefit” authorized is only $60 per month of deten tion (or hiding to escape internment) for persons over eighteen years of age and $25 for persons under that age. However, also authorized are “injury, dis ability, or death benefits,” the latter payable to cer tain heirs, which are to be based on the assumption that earnings would have been $37.50 a week, with a total maximum payment of $7,500. Under the Act, prisoners of war and employees of contractors with the United States Government are entitled to certain benefits, and religious organiza tions may also be reimbursed for expenditures in curred in assisting members of the armed forces of the United States and civilian American citizens. The benefits, especially for the civilian intern ees, might well have been larger, all the more so as the payments are to be made from a fund to come from liquidated enemy assets in possession of the Office of Alien Property. However, any assistance at all will be a godsend to many of the people affect ed, especially to those who for reasons of advanced age or broken health have not been as successful as some of the others in rehabilitating themselves. The unfortunate thing is that there may still be further delay. At this writing, the Senate has not even as yet confirmed the President’s appointments. But there is a limit to delay. According to Sec tion 2(c) of the War Claims Act of 1948 — ".. .The time limit within which claims may be filed with the Commission shall in no event be later than two years after the date of enactment of this Act.” And according to paragraph (d) of the same Section, — “The Commission shall wind up its affairs at the earliest practicable time after the expiration of the time for filing claims, but in no event later than three years after the ex piration of such time.” Two years after July 3, 1948, will be July 3, 1950, and three years after that is July 3, 1953, a total of eight years from the time of liberation. Though many died in the Camp and many more have died since liberation, let us hope that most of the rest of the ex-internees will live that long at least. Let us hope also that the President’s appoint ments will soon be confirmed and that the Commis sion will then take hold and act promptly to make up for the already too, too long deferment. The delay would have been even greater if it had not been for the American Internees Committee in the United States which has done all it could to bring the plight of the former internees as a group to the attention of the American Government. Thanks are due especially to Mr. Frank Wilson, the Chairman of the Committee. The Board of Directors of the American Intern ees Committee in Manila is at present composed of Alva J. Hill, President, Mrs. Louise M. Smith, Sec retary, and Fay Bailey, Treasurer, with John Canson, Mrs. Ward B. Gregg, Donald Gunn, Stanley Leh man, and Julian A. Wolfson as the other members. Mrs. Germain Newman is the Executive Secretary. The Committee has asked all American civilian ex internees to send their names and addresses to Mrs. Newman, P.O. Box 2418, Manila. Nationalistic Discrimination and the Declaration of Human Rights claimed by the Gen A prominent American businessman in Manila has asked how the Philippine Government can square the Krivenko Case decision of the Supreme Court and such legislation as the Tanada Bill, with its acceptance of the Universal Declaration of Hu man Rights passed and proral Assembly of the United Na tions on December 10, 1948. The Supreme Court in the decision referred to in effect interpreted certain parts of the Philippine Constitution to mean that foreigners may not acquire ownership of any land here, even a residential lot. The correctness of this decision has been questioned and it is believed in some legal quarters that it did not definitely settle the constitutional question be cause it was not concurred in by a sufficient number of the members of the Court. The Tanada Bill, — not passed, or not as yet, would provide for the forced sale of lands “illegally” held by foreigners. Article 17 of the Declaration of Human Rights runs: “(1) Everyone has the right to own property alone as well as in association with others. “(2) No one shall be arbitrarily deprived of his prop erty.” Article 12 runs in part: “No one shall be subjected to arbitrary interference with his privacy, family, home, or correspondence...” Article 13 states in part: “(1) Everyone has the right to freedom of movement and residence within the borders of each state...” Article 22 states: “Everyone, as a membei- of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the or ganization and resources of each State, of the economic, social, and cultural rights indispensable for his dignity and the free development of his personality." Article 7 states: "All are equal before the law and are entitled without any discrimination to equal protection of the law. All are entitled to equal protection against any discrimination in violation of this Declaration and against any incitement to such discrimi nation.” Article 2 declares: “(1) Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, color, sex, language, religion, political or other opinion, national or social origin, property, birth, or status. “(2) Furthermore, 710 distinction shall be made on the basis of the political, jurisdictional, or international status of the country or territory to which a person belongs, whether this territory be an independent, Trust, Non-self-governing territory, 01 under any other limitation of sovereignty.” It is to be noted that the rights proclaimed are for “all,” for “everyone.” They are not limited to citizens as distinguished from other inhabitants of a country. Those who wish to follow discriminatory nation alistic policies may point out that the Declaration is not binding law, that the Preamble says that Mem ber States are only pledged to “achieve, in co-opera tion with the United Nations, the promotion of univ ersal respect for and observation of human rights 370 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 371 of construcBefhlehem's great Sparrows Point plant is the only steel-producing plant in the U.S.A, located on tidewater. Products for export can be loaded at this plant- directly aboard steamers, thereby minimizing pos sible damage due to additional handling. No matter what type tion you may have in mind—factories, bridges, storage tanks, office build ings, hotels or housing projects —re member that Bethlehem has every facility for handling your steel fabri cation requirements. This, plus years of experience in meeting the varied needs of the construction industry, is your assurance of complete satisfac tion in every detail. I BETHLEHEM FABRICATED STEEL for EVERY CONSTRUCTfON NEED ^J**^**- ” ... ............................. ... 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.I. Ad No. 305E and fundamental freedoms.” They may point out that the Declaration itself says that the various rights are proclaimed as a “common standard of achievement,” which they shall “strive” to reach, “keeping this Declaration constantly in mind.” But those who hold a decent respect for the Mem ber Governments of the United Nations as well as for mankind, must believe that a Government which joins in the proclamation of any international declaration, does so in all sincerity, in this case especially a Gov ernment like that of the Philippines which itself played a notable part in the framing of the Declara tion. Those who so believe in the good faith of all these Member States of the United Nations can not conceive of any of them searching the text of what they have solemnly signed for loopholes of escape and evasion. And if there are individuals in the Government here who would do such injury to the international good name and the dignity of the Philippine Re public, then let them scan the text of the Declaration more carefully and consider the meaning of Article 30 which runs: “Nothing in this Declaration may be interpreted as im plying for any State, group, or person, any right to engage in any activity or to perform any act aimed at the destruc tion of any of the rights and freedoms set forth herein.” This final article in the Declaration appears to be intended especially for those States, groups, or persons who might seek to misinterpret and evade the commitments made by signing the Declaration. Of course, this article is no more binding than any part or the whole of the Declaration or, it would seem, any international declaration so long as there is no true world government or any real enforcing authority. But the conclusion stands: There is no “squar ing” possible. And the question remains: Is the Philippine Government’s signature good or not. Recommendations re American Investment Memorandum To President Quirino By a Committee of the American Chamber of Commerce UPON President Quirino’s invitation, a group of members of the American Chamber of Com merce of the Philippines called upon him on the afternoon before he left Manila for his visit to the United States and had an hour’s conference with him regarding the local business situation and Philippine-American business relations generally. For the President’s convenience, a memorandum was left with him which, previously prepared, had formed the basis of the discussion. Because this is of general interest as the considered statement of an able business group, the memorandum is reproduced here in substance, as follows: IN appreciation of the opportunity given us to con fer with His Excellency, the President, at his in vitation, shortly before his departure for the United States on an official mission, and in confirmation of statements we made orally to him on this occasion, we have the honor to submit the present memoran dum. We expressed our support of the program of co operation between the Philippine and American Gov ernments and their respective business groups recent ly put forward by the National Foreign Trade Coun cil (New York) which is briefly summarized as fol lows: 1. Elimination of double taxation through the restoration of the tax incentives to American business in the Philippines before independence by extending the effectivity of Section 251 of the U.S. Internal Revenue Code. We stated that this would be one of the most practical steps the American Government could take toward encourag ing further American investment here. We expressed the opinion that private capital would not be attracted to the Phil ippines so long as its Philippine income is taxed not only here but in the United States as well, which results in American corporations paying a 26% tax-premium over that paid by the nationals of other countries with whom they are in competi tion and who also are extensive importers of American prod ucts. 2. Increased appropriations under the Philip pine Rehabilitation Act for war damages to private and public property, and the extension of the 1950 expiry date of this Act to permit of further recon struction under its terms. 3. Assistance to the Philippines in line with Point IV of President Truman’s Inaugural Address. 4. Early conclusion of the Treaty of Friend ship, Commerce, and Navigation now under negotia tion between the two countries to establish basic re ciprocal rights. We stated that the conclusion of this Treaty would probably be the most effective, positive action which could imme diately be taken. 5. Removal of the present obstacles within the Philippines to further private investment in industry and trade. .These obstacles we particularized as fol lows : A. — Import Control. Under this head we stated that we could not disapprove of Import Control as a means of balanc ing foreign exchange, but we pointed out that the rapid en largement of the scope of the Control and the use being made of it for extraneous purposes is creating alarm among Amer ican businessmen and potential investors. The whole course of the Control appears to threaten more controls to come. We stated that we feel very definitely that Import Con trol should be strictly limited to conserving the exchange pos ition and that it should not be used as a means of discrimina tion against foreign businessmen nor as a means of forcing them to make such commitments as may be desired by th9 Government. In this connection we referred to the 20% quotas assigned to “new importers” and to the recent insist ence of the Government that importers commit themselves to purchases of flour up to four years in advance. We pointed 372 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 373 MAKE YOUR PRODUCT LOCALLY of REYNOLDS A*'-- ALUMINUM This modern metal opens up a whole world of new products for far-seeing manufacturers. Whether you make pots and pans, step ladders, stools and chairs —nuts and bolts—windows or blinds —look to aluminum! Aluminum is usually easier to process than other metals, yet it offers so much more! TUBING, PIPE Ilt has a naturally attractive surface, yet is also subject to a wide variety of finishes. 2 It never rusts or rots, is highly corrosion resistant—always looks well. 3 Several Reynolds Aluminum alloys are stronger than structural steel but weigh only '/j as much. 4 Other aluminum characteristics important to certain types of manufacturing are its high thermal and electrical conductivity, its efficient light and radiant heat reflectivity. It is also non-toxic, non-magnetic and non-sparking. Reynolds Lifetime Aluminum is available as: pig; ingot; plate; plain, embossed and perforated sheet; circles; plain and printed foil for protective and sales appealing packages; wire; electric cable; rod; bar; screw machine stock; structurals; extrusions; architectural shapes; pipe; tubing; and powders for paint pigment, chemical processing, explosives and pyrotechnics. These various aluminum forms are made in alloys, tempers and sizes to meet every requirement. Among the fabricated parts made by Reynolds are: Building Products, which include corrugated and 5-V crimp roofing and siding, nails, gutters and downspouts, windows, reflective insulation, and prefabricated utility buildings; also Cooking Utensils, Golf Clubs, Boats, Truck and Trailer Bodies, and semi-fabricated and assembled aluminum parts for consumer products sold by other companies. PIG, INGOT PLATE WIRE, ROD, BAR STRUCTURAL AND EXTRUDED SHAPES REYNOLDS METALS COMPANY EXPORT DIVISION • 19 EAST 47TH STREET, NEW YORK 17, N. Y„ U. S. A. • CABLE; FOILWAX NEW YORK Representatives throughout the world REYNOLDS ALUMINUM THE COMPLETE ALUMINUM SERVICE FROM MINE TO FINISHED PARTS out that Import Control, as it is now exercised, goes far be yond the announced purpose of conserving foreign exchange. B. — Government Competition: PRATRA. We brought out the fact that equally discouraging is the direct competition in retail trade offered by the government trading company which is known as PRATRA. The arbitrary power granted PRATRA to commandeer and practically confiscate property or merchandise from private individuals and firms is such as to give hesitancy to any potential investor. Government-inbusiness stands opposed to everything which the American system of free enterprise represents. C. — Unequal Collection of Taxes. We referred to the recommendation of the Joint Philippine-American Finance Commission in regard to the more uniform collection of taxes. We stated that although American business in the Philippines is not objecting to the tax-rates at present in effect, it is our opinion that the legal requirements with respect to keeping books of account and the actual payment of the different taxes levied on business operations are not generally applied in such a manner as to effect a uniform collection. Though businessmen believe that the present tax-rates are high enough to support the increasing cost of government, they fear that the rates may be raised unless more effective methods of collection are adopted. They think that it may happen that those businesses which now comply strictly with the accountancy and tax laws may be asked to assume an even heavier tax-burden, while less honestly conducted business will continue able to avoid taxation and to retain the compet itive advantage which they thus hold. D. — High Manila Port Terminal Charges: Export Con trol. We pointed out that the cost of handling merchandisn through the Manila Port Terminal is very high and prevents the use of Manila as a distribution point in the trade of the Far East. We called attention to the fact that the Govern- ' ment gets a large share of the proceeds of the charges. We stated that in view of the present conditions in China, Manila has an opportunity to assume the handling of much of the trade formerly conducted through various China coast ports. We urgently recommended that the whole question of cargo handling costs here be carefully studied and that improved methods be adopted wherever possible, at reduced rates. Wc also recommended that export controls be removed insofar as possible and that a "free zone" be established in the Port in order to encourage the use of Manila as an entrepot. E. — Labor Difficulties. We submitted that the present methods of settling labor disputes were very unsatisfactory. We pointed out that the Department of Labor and the Court of Industrial Relations are without real authority in enforcing their decisions in respect to the labor unions. We also stated that decisions of the Court in a number of instances have followed the expressed policy of making awards to labor on the basis of the ability of the employer to pay, —which is obviously both uneconomic and unfair. We pointed also to the difficulty currently experienced by contractors and others in connection with the termination of the employment of their workers when the work for which they were hired has been completed. We emphasized that satisfactory solutions to the problems thus posed would be a very important factor m inducing foreign capital to enter the Philippines. F. — Threat of Discrimination Against Foreign Technical Men. We referred to the disposition shown by the Congress of the Philippines to pass legislation which would restrict the freedom of possible investors in bringing here engineers and other technicians experienced in their various lines of activity and how this causes fear on the part of such interests that their investments could not be properly supervised. G. — Attacks on the Bell Act and “Parity”. We spoke, finally, of the frequent attacks made on the Philippine Trade Act of 1946 (the Bell Act) and on the so-called “Parity Pro vision”, which lead possible investors to doubt the security of investment her. We started that we felt that much might be done to allay such fears if the President and other officials would when occasion arises forthrightly point out the manv advantages embodied in the present Philippine-American trade relationship. Unanswered charges that these relations were "forced” upon the Philippines and that they are designed to benefit American citizens at the expense of the Filipinos, have caused ill feeling toward the United States and has caused Americans to question the stability of political and economic thought in the Philippines. We declared that we felt that the President, with the high-level conferences he would hold in the United States and with the extensive publicity which his visit there would doubtlessly receive, could give strong support to the various proposals and sugges tions we had made and could do much to counteract the conviction being established in the United States that American capital and enterprise (the two must go together) are being discriminated against, as was indicated in recent articles in Fortune and the Wall Street Journal. We said that the statements made in these articles might possibly be refuted, but that the fact remains that worry and mistrust exist, and for cause. Finally, we stated that we felt that mere friend ly statements from both sides concerning American investment here could not fundamentally change the present situation, but that certain positive actions would have to be taken. We ourselves pledged our full co-operation with the President in the effort he is engaged upon to im prove present conditions and to strengthen the mut ually advantageous bonds which still unite the two nations. We ended by wishing His Excellency, the Pres ident, a safe voyage, a successful sojourn in America, and a happy return home. "All Feasible Assistance” to the Philippines Official White House Statement of August 11. THE President of the Republic of the Philippines and the President of the United States of America have met at Washington and discussed at length problems of common interest to the two nations. The spirit of these conversations has reflected the historic and unique relationship between the two countries. As in the past, it was the aim of the United States that the Philippines should assume its right ful position as a free and self-reliant member of the world community, so today the United States looks forward to the preservation and strengthening of the position the Republic of the Philippines has achieved in order that it may make its full contribution to that community. It is recognized that the capacity of the Republic of the Philippines to live up to the high hopes which the events of the past three years have kindled must depend in part upon its economic situation. The two Presidents have discussed measures for the reinforcement and development of Philippines economy in the terms of recommendations of the re port of the Joint Philippine-American Finance Com mission, issued in 1947, being convinced that the eco nomic progress of the Philippines will be not only in 374 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 375 HERE IT IS! CLIMAX OF 83 YEARS OF CONTINUOUS OIL DEVELOPMENTS AS NEW AS YOUR NEW CAR NOW BETTER THAN EVER! NEW Mobiloil gives TRIPLE ACTION FREE FLOWING- Here's fast engine turnover—Instant flow of lub ricant to all moving parts. With New Mobiloil, your engine turns over quickly, operates smoothly. This great new motor oil's high V.l. and rich lub ricating qualities result from years of advanced > FULL PROTECTION New Mobiloil'. choice ' selected stocks and “built-in" cleaning properties mean unsurpassed protection against friction, wear, and harmful de posits. The makers of New Mobiloil pioneered ith solvent-refined motor oils and effective detergents Engine Performance Not Just One Modern Oil Quality But STANDARD - VACUUM OIL COMPANY the immediate interests of the two countries, but will contribute vitally to the determination of free peo ples to resist those forces which seek their enslave ment so long as that menace shall threaten. The two Presidents are agreed that this resist ance will be most effective in areas where the mate rial well-being of the people allows full appreciation of the meaning of freedom and that conversely it is among peoples who have abandoned hope of indivi dual betterment that least resistance will be offered to those perverted forces which would destroy the ideals to which the two nations are dedicated. The President of the Philippines has expressed the determination of his country to pursue with vigour the courses of action which offer the greatest promise. The President of the United States has reiterated the desire and intention of the United States to ren der all feasible assistance. The United States will continue to watch sym pathetically the efforts of the peoples of Asia to forge stronger ties of economic co-operation and collabora tion to hasten the progress of self-government and to preserve their freedom. American Aid to the Philippines Past, Present, and Puture By Ambassador Myron M. Cowen AS a result of many years of experience, with countries in different parts of the world, my Government has come to certain conclusions concerning the most effective ways in which one country can aid another. These conclusions are as follows: (1) The type and amount of such aid should be determined in light of the needs of the receiving country and the ability of the contributing country to meet these needs. As the pre dominant needs of a country change with the passing of time, the types of aids by the assisting country must change cor respondingly if the best interests of the beneficiary nation are to be served in each of the successive stages of its development. (2) The most permanently beneficial type of aid for a na tion, as for a human being, is that type which is so planned and administered as to promote growth and self-development toward the ultimate goal of complete self-reliance. Aid which tends to prolong immaturity and dependence, in any phase of a na tion’s life, will prove, in the long run, to be more of a curse than a blessing, regardless of its immediate benefits. (3) Aid by the contributing nation should not be a sub stitute for, but a supplement to, self help by the beneficiary na tion itself. It should be accompanied by vigorous, sustained, local effort to utilize in maximum degree its own natural, hu man and capital resources. It should be the marginal incre ment which represents the difference between complete and par tial success of the beneficiary nation, after it has done all it can for itself. My Government, in its programs of aid to the Philippines in the past, has followed these three principles to some extent. In its future aid programs it is planning to follow them more closely. UNITED States aid to the Philippines in the past can be divided roughly into three types, corresponding to the paramount needs of your country in the three general periods of its history. The first period, I have in mind, runs from March 16, 1900, when President McKinley appointed the Second Philippine Com mission for the purpose of instituting civil government in the Philippines, to the invasion of the Philippines by Japan in December of 1941. We might call this the trusteeship period, during the last six years of which, the country, as a Commonwealth, enjoyed virtual independence except for military and foreign affairs. During this 41-year period, the over-all purpose of Amer ican aid were first to help the Philippines establish a demo cratic form of government and way of life suited to its needs and desires and second to prepare the country through guidance, training and experience to become a stable, prosperous, inde pendent state. Specific types of aid during this period included: protection of the territorial integrity of the country; protection against excessive immigration from neighboring countries; guid ance in the drafting of a constitution and the development of a governmental structure with executive, legislative and judicial branches; assistance in the development of a civil service to provide a permanent body of efficient public servants capable of administering the government in a manner to contribute to na tional stability and progress; assistance in the establishment of a system of public education which we considered indispensable to successful self-government; and assistance in the establish ment of modern systems of public health and social welfare to reduce disease, increase length of life and promote that phy sical health and energy on which alone could be based a sound and sturdy national development. These different types of assistance the United States con tributed to the best of its ability, through the services of some of its leading statesmen, jurists, economists, educators, en gineers and technicians in many fields. The second period, covers that nightmare period of Jap anese occupation which began with the arrival of the first enemy troops in Aparri in December of 1941 and ended with the unconditional surrender of the Japanese Imperial Army in Baguio on September 3, 1945. During this four-year period, the type of assistance over shadowing all others in urgency was military aid in liberating the country from the yoke of a brutal and oppressive conqueror. This assistance was forthcoming as soon as adequate men and material could be made available and the intervening island groups reclaimed. To liberate the Philippines and defeat Japan involved, in addition to the indomitable aid of Filipino guerrilla groups and the invaluable assistance of the Australian armed forces, a fighting force of more than 5,000,000 United States army, navy, marine corps and airforce men. Victory in the Pacific was won at a cost of 300,000 United States casualties and the expenditure of many billions of United States money which, for years to come, will constitute a tremendous debt to be carried, and ultimately amortized, by the United States tax payer. Thus did the United States fulfill its promise to use its manpower and resources to help liberate the Philippines. The third period, we might call the period of reconstruction running from 1945 through 1951. During this six-year period, which is now drawing to a close, the predominant need has been for United States money and technical assistance to supplement Philippine funds, natural resources and manpower in the reconstruction of your warshattered country. Public buildings and private homes had to be rebuilt, bridges, roads and docks reconstructed, public services re-established and the wheels of the economic life of the coun try set in motion. To this great reconstruction undertaking, the United States, by the end of 1951, will have contributed under present authorizations, Pl,244,000,000 and the services of nearly 200 technical experts. In addition to the foregoing amount of money which covers only the total of outright grants and relief, the United States Government will have spent over P2,500,000,000 in the Philip pines from V-J Day through 1951. This money which has been and still is being spent for wages, purchase of local supplies, and miscellaneous military expenditures has gone, and will con tinue through 1951 to go, into the nation’s total economy, thus assisting very materially in the post-war task of setting in mo tion the economic processes of the nation. 376 MISSING PAGE/PAGES A third type of aid received from the United States, which has received little public attention, consists of the sums of mon ey received by various church groups, organizations such as the Boy and Girl Scouts, YMCA and YWCA, and fraternal orders. These funds, which have been received either directly or in directly from private donors, total more than P20,000,000 to date and are still coming in. Thus the people of the United States, both through their Government and in person, have contributed substantial assist ance to this country during this period of post-war reconstruc tion, which is now drawing to a close. My purpose in thus briefly reviewing the history of United States aid to the Philippines to date has not been, I assure you, a desire to boast or to invite public praise for the aid my coun try has extended to your country during the last half century. Whatever the United States has done to help the Philippines down through the years has been motivated by a genuine devo tion to the welfare and progress of this country and its people. The consistent aim of the American government in all its re lations with the Philippines has been, as expressed by the Schurman Commission in 1898, to promote, to the best of its ability, “the well being, the prosperity, the happiness and the advancement of the Philippine people.” My real purpose in reviewing the history of American aidto the Philippines has been to focus attention on three simple facts, first, that aid, in one form or another, has been con tinuous for the past 50 years, second, that this aid has been varied from period to period to meet the predominant needs of your country in each stage of its development, and third, that this aid has been so planned as to promote national growth to ward the ultimate goal of complete self-reliance. CO much for American aid, past and present. Now let us consider the future. And may I open this second phase of my discussion this afternoon by reassuring you of the deep af fection and the great respect which the American people will always hold for the Filipino people. The unprecedented welcome your President recently received in the United States is elo quent testimony to this fact. May I also assure you that my Government is keenly desirous of continuing its aid to this country in future years, within the limits of its ability to do so, and with due regard to the independence and sovereignty of your nation. In view of the long standing policy of my country to furnish that type of assistance most needed at a given time, the following question naturally arises: “What type or types of aid, which the United States is in a position to render, will be most needed by the Philippines in the years that lie ahead?” From my talks with governmental officials and leaders in both countries, it appears that there are two types of aid which my country is in a position to render and which your country will urgently need in the years ahead. These are (1) assistance in economic development and (2) military assistance to aid in equiping, training and maintaining armed forces adequate to the country’s needs. So far as military aid is concerned, legislation is now being considered by the United States Congress to authorize such assistance. This was one of the measures I worked hardest for during my recent sojourn in Washington. I am confident of the passage of this enabling legislation. TVT OW let us turn our attention, in the remaining moments at my disposal, to the subject of the economic development of the Philippines, and what the United States can do to assis: in this all-important, long-range undertaking. Few subjects excite the imagination more than economic development. To most people these words signify more of the better things of life for more people, fuller and richer lives, social betterment, a higher standard of living for all. Economic development, in the broadest sense of the term, implies the increasingly effective use of a nation’s resources— human resources, natural resources and capital resources. It involves the production of more food, more clothing, more and better homes, and more mechanical power to lighten people’s burdens. It applies to farms as well as to factories; to intellec tual advancement as well as physical health; to habits of work and habits of leisure; to the saving of capital and to its con structive investment. There is no uniform pattern of economic development ap plicable to all countries. Different countries have different needs and different potentialities. Development should take into account and be adapted to local resources, attitudes, social and legal structures, customs and practices. In some countries basic improvement in health, literacy, and vocational skills may well be prerequisite to increased production and improved stand ards of living. In other countries, agriculture, rural and smallscale industry, and transportation may stand in most need of improvement. May I emphasize the fact that economic development, as I am discussing it this evening, is not limited to industrialization in the narrow sense of manufacturing. While the development of manufacturing enterprises is usually a necessary part of economic development, it is not the whole story and frequently not even the most important element therein. Economic dev elopment embraces advances in agriculture, mining, transporta tion, communications, power, and in the skills and capacities of the people. It requires the expansion of the distribution system and the full machinery required for the exchange of goods. All these economic activities are mutually reinforcing elements in the process of a nation’s economic development. NEXT let us consider for a moment the purely domestic prob lems of economic development which are numerous and difficult, as they involve basic changes in the economic, political, and social institutions and habits of a country. By and large, down through the ages, the habits and at titudes that have most effectively fostered economic development have been these of work, saving, venturesomeness and adapt ability. The need for work extend to all groups. The working, self-disciplined business manager is as important to the expan sion of production as the self-discipline and hard work of the farmer and laborer. Saving is the basis for capital accumula tion. It can take place whenever people have hope and confidence in the future of themselves and their country. Venturesomeness is perhaps the most difficult of all new habits to acquire. The farmer must be willing to abandon the habits of father and grandfather and use new methods that appear to him to involve risk and danger. Domestic capital must be ventured in produc tive enterprises rather than put into real estate or hoarded in jewels, gold and strongboxes. Finally, there must be adapt ability to changing concepts. Old forms of status and caste, archiac systems of land tenure and resistance to science and technology usually retard economic development. In addition to the habits and attitudes of the people, eco nomic development depends upon such normally unspectacular functions of government as the establishment of internal order, security and justice, the creation of money, credit and a sound fiscal system, the development of basic systems of communica tions and transportation, the spread of literacy and higher learn. ing in the arts and sciences, the provision of basic health and social services, and the assessment and conservation of natural resources. No country that aspires to economic development can say that it cannot afford these duties of government. It cannot afford not to educate its children. It cannot afford not to build up the health of its people. It cannot afford not to give aid and encouragement to art and science. It is the function of a government aspiring to economic development to establish and maintain the institutions which enable its citizens to become resourceful. The bulk of the capital for the economic development of a country must come from its own people. There are important reasons for this. In the first place, the amount of funds that can conceivably be obtained from foreign sources will always fall far short of a nation’s capacity to use capital. Larger amounts of capital have been moving across national boundaries since the end of World War II than at any time in the past, but the demands still far exceed the supply. Secondly, a coun try which imported too large a proportion of its capital would be faced for a long time with heavier carrying charges than it can readily meet in foreign exchange. Many industrialized countries, including the United States, have been developed in part by foreign capital, but in every case, the bulk of their capital investment is the result of their own savings. These considerations underline the importance for a government to create a climate and devise incentives which will stimulate and mobilize domestic savings, and then channel these savings into productive investment. Thus have I indicated some of the functions of government, which are basic, indispensable ingredients to economic develop ment. To discharge these functions effectively calls for govern ment personnel trained in the art of administration, devoted to the public service, scrupulous of the public welfare. In my discussion of economic development thus far, I have reviewed the main factors which a nation should keep in mind in planning and developing its economic life. In so doing I have attempted to emphasize the basic principle, applicable to every country in the world today, that national development must be based primarily on national resources and must come largely front the effort of the people concerned. 378 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 379 £ -WL There’s Money in the Air when Worthington makes the Air! Your customers prefer to patronize stores, theatres, hotels and restaurants that are air-conditioned The reasons why so many business men the world over have chosen Worthington air conditioning are: an experience in air conditioning extending for over 50 years ... a a complete line ranging from unit conditioners for small enclosures to completely engineered systems for entire buildings. Also, the fact that all the vital components are built, not merely assembled, by Worthington, means smoother running of interrelated parts and a single responsibility for the performance of the equipment. For the best advice on your air conditioning problem, see your local Worthington representative—or write to Worthington Pump and Machinery Corporation, Export Department, Harrison, N. J., U. S. A. With regard to assistance which a foreign country can furnish to aid and accelerate another nation’s economic dev elopment, my government has decided to place chief emphasis on: (1) Assistance in finding ways and means of tapping the reservoirs of foreign capital, to supplement local capital, in the creation and expansion of productive enterprises. (2) Assistance in providing scientific and technical "know how” and “show how” in the various fields of activity directly related to a nation’s economic development. T have briefly discussed up to this point what a nation must do for itself and what assistance it is reasonable to expect from a foreign country in a wide-ranging, long-term program of economic self-development. Now let’s apply this general information to the question at hand: the economic self-develop ment of the Philippines and what the United States can con tribute to this great undertaking. The conditions my Government considers essential before assistance to a country can be justified have been clearly de fined in connection with the European Recovery Program. These conditions, which will apply also to aid under the “Point Four Program,” have been inherent in all I have said thus far about economic development. Specifically they are: (1) practical and realistic plans of action, (2) maximum self-help, by the nation itself, and (3) existence of internal conditions favorable to economic development. . . . 1. Agriculture: The wealth necessary to support a pros perous nation exists in Philippine soil and waters. For this reason, the foundation of the country’s economic structure must be agriculture. Increase in agricultural production is essential today to relieve the drain on foreign exchange from food im ports and to maintain an expanding industrial population. Agricultural production can be increased by the use of better seed and fertilizer, irrigation, improved methods and techniques of farm operations, the more extensive use of mechanized equipment, improved marketing facilities, adequate credit at low rates for small farmers, a program of continuous research and experimentation and by bringing under cultivation a larger percentage of the arable lands. Is the country at present doing all it can to increase its agricultural productivity in these and othei’ ways? If not, what more can it do in terms of its own resources? 2. Industrialization: While I feel the primary emphasis should be placed on agriculture, it would appear that Philippine economy has developed sufficiently to warrant the launching of a carefully planned program of industrial development to produce products foY home consumption, which otherwise would have to be purchased in foreign markets. New small-scale-rural industries, including handicrafts, could be developed which would furnish farm laborers with work during those periods of the year when they are not engaged in agricultural activities, thus increasing both their total productivity and their stand ard of living. Mining could be further developed and the processing of ores advanced to increase their sales’ value in foreign markets and to form the basis for more advanced in dustrialization in the future. Of particular importance is the manufacturing of items to promote agricultural development, such as fertilizer. Progress in the field of industrial develop ment will, of necessity, be slow. It must, however, be built on a sound foundation, in proper balance with an expanding agricultural program. Does this country have plans for industrial development? If so, is it using its own resources, in maximum degree, to imple ment such plans? 3. Power: Basic to both industrial and agricultural develop ment is, of course, the use of the nation’s water resources for light, power and irrigation. Is the country, at present, doing all it can to utilize its water resources for economic development? 4. Public health: The economic development of your nation will depend to a considerable extent on the health and physical strength of the people. Every effort must be made to streng then the nation’s- health by the development of effective phy sical training programs in the schools and by the eradication of those diseases, such as malaria and tuberculosis, which to day are depriving the country yearly of millions of man-hours of productive labor. The United States Public Health Service lias demonstrated by its work on Negros and elsewhere what can be done to eradicate malaria and other disabling diseases. Is this country doing all it can for itself in the field of public health? Has it a future program leading eventually to the com plete elimination of serious health hazards? 5. Education: All phases of economic development de pend to a large extent upon education. The schools of a de mocracy such as yours and mine must produce men and women who have strong bodies, good minds, stable emotions, sound character; they must be able to read and write and think straight; they must possess the knowledge and skills essential to productive effort in the fields of agriculture, industry and commerce and in the professions. Is the country doing all it can, within the scope of its own resources, to so train its youth as to make possible for the nation a maximum use of its hu man resources? 6. Financial stability: Financial stability is a prime re quisite for economic development. In this connection, consid eration must be given to whether financial stability is being maintained by holding budgetary expenditures to a level that makes it impossible for the government to meet the genuine needs of the country. The percentage of the national income that can be taken through taxation, without acting as a drag on the economy, is an open question. It is somewhat difficult, however, to establish the need for outside assistance for inter nal expenditures if the percentage of national income taken through taxation is much lower than that of most other coun tries and particularly lower than that of the country from which assistance is asked. It would appear equally difficult to es tablish the need for foreign exchange assistance unless the' maximum effort is being made with what is available inter nally in the Philippines. Is the country providing and main taining essential government services at an adequate level? If not, what more can it do within the scope of its own financial resources? 7. Domestic capital: I said earlier in this speech that the bulk of capital for the economic development of a country must come from its own people. I understand that there is a con siderable amount of local capital, here in the Philippines today that could be used for capital investment. If this is true what is being done, and what more can be done in the future, to in crease the flow of such capital into productive enterprises? 8. Foreign exchange: A country that desires to use all the resources available to it to promote economic development, should make the most judicious use of its foreign exchange. By this I mean, the use of as a large a portion of such ex change as possible for capital imports and agricultural equip ment and supplies that will help to increase productivity, and, conversely, as small a portion as possible for goods that would be immediately consumed. How is the foreign exchange of your country used at present? What can be done in the future to increase still further the percentage of foreign exchange used for those types of imports that will directly contribute to in creased productivity? 9. Internal conditions: If United States private capital is to come to the Philippines in larger amounts in the future than it is at present, the government must establish internal condi tions and devise incentives which will stimulate such invest ments. This involves among other things, law and order, a sound fiscal system, and an effective program to alleviate so cial unrest by promoting a higher standard of living for those of your people who for generations have been able to eke out only the barest possible existence. Is your country doing everything it can to establish internal conditions favorable to economic development such as the main tenance of law and order, development of a sound fiscal sys tem, and raising the living standards of its lowest economic groups? 10. Production costs: Another internal factor vitally af fecting the inflow of foreign capital for industrial development is the question of production costs, which must be low enough to ensure the investor a reasonable profit on his investment. I discussed this matter a few weeks ago while I was in Wash ington. Unfortunately, my words were misquoted and my mean ing was misunderstood. Let me make myself clear on this mat ter once and for all. Production costs in the Philippines today are high—in fact substantially higher than in many countries currently seeking United States, private capital. If the Philipoines is to compete successfully with these other foreign countries for United States capital, such costs must be reduc ed. I want to make it very clear, however, that I am not talking about employee wages, which constitute only one ele ment in the total cost of production. I want to make it clear, also that I am definitely pro-labor, and confidently looking forward to the day when the standard of living of the laborer will be materially higher than it is today, as productivity in creases. In referring to a reduction in production costs ) have in mind such factors as the more efficient use of man power through better planning, training and supervision, more attention to employee health and welfare and the development of more efficient production methods and techniques. The re duction of labor costs in Negros, as a result of the malaria control program of the United States Public Health Service, 380 is a good example of what I mean by reducing production costs without reducing the wages of the laborers. What can be done to reduce production costs in other areas of the coun try without lowering wages? "P ROM the answers to such specific questions as I have just A raised should come the answers to such general questions as: Is the Philippines making a maximum use of its own re sources to promote its own economic development? If not, what more can it do for itself? With the answers to these questions in hand, the next step will be the formulation of a concrete, specific, realistic plan of action, based upon what appears to be the wisest course of action in terms of the most urgent immediate needs, as well as the long-range needs of the nation as a whole. Long-range projects necessary to the most beneficial dev elopment of the country’s resources must be carefully formu lated. On the other hand, today’s needs are urgent. Without prejudice to the plans for long-range development, top priority should be given to economic development projects which can be undertaken promptly and which will make the greatest net contribution within a reasonable period of time. In brief, a proper balance should be kept between long-run objectives and short-run realities. The members of my Embassy staff will be glad to assist, to the extent desired by your government, in the drafting of a plan of action such as I have just discussed. As soon as a plan has been completed, which provides for maximum self-help on the part of your country itself, my gov ernment stands ready and willing to cooperate in carrying out the plan by assistance under President Truman’s “Point Four Program,” when necessary funds are made available. Under the “Point Four Program,” two types of assistance will be available— 1. Assistance in finding ways and means of tapping the reservoirs of United States private capital, to supplement local capital, in the creation and expansion of productive enter prises. 2. Assistance, by furnishing scientific and technical know ledge and skill through such activities as training in admi nistration, in industry, and in agriculture; health programs, broad technical missions, and the supplying of individual ex perts; experiment stations, training fellowships and local tech nical training institutes; dissemination of information through conferences, seminars, and publications; provision of labora tory material; demonstration services and equipment; advice concerning particular industrial and agricultural projects; re sources surveys and general assessment of development po tentialities; analyses of methods of production, marketing and management; and advice on steps designed to mobilize do mestic savings for constructive investment. In addition to the foregoing types of assistance under the “Point Four” program, I shall be willing to recommend to my government, from time to time, other types of assistance which might be required to supplement maximum effort by the Fili pino people in order to enable them to build a sound balanced economy. In closing may I say, as strongly as possible, that the Filipino people have every reason to have full confidence in the future of their country. You have vast resources and an intelligent population and the United States stands squarely behind you today, asking only that you do all in your own power to develop your own economy to the end that a steadily increasing percentage of the Filipino people may realize their aspirations for a happier, healthier and more prosperous life. Export Control By V. E. Bunuan Administrator, Sugar Quota Office, Department of Commerce and Industry EXPORT control in the Philippines had its begin ning with the control exercised by the U.S. High Commissioner of the Philippines in 1940 over strategic war materials such as munitions, with base metals added in 1941, by virtue of a proclama tion of the President of the United States. With the re-establishment of the Philippine Government and of the High Commissioner’s Office in 1945, the United States shipped to the Philippines, through Philippine importers authorized, and whose credits were sponsored, by the U.S. Commercial Company, acting as official representative or agent of the High Commissioner, much needed goods, mainly food sup plies and articles of clothing, for sale among the in habitants of the Philippines and expressly prohibited from exportation. It will be noted that this prohibi tion referred only to American goods that were im ported into the Philippines and did not include any Philippine product. This control continued until 1946, when the Phil ippines took over, it may properly be stated, the func tion of export control with the enactment on July 2, 1946, by the Congress of the Philippines of Common wealth Act No. 728 authorizing the President of the Philippines, until December 31, 1948, to regulate, control, and prohibit the exportation to any destina tion, of agricultural or industrial products, merchan dise, articles, materials, and supplies, and the Sugar Quota Office, being in charge of the exportation of sugar and other quota products to the United States, such as coconut oil, cordage, cigar, leaf tobacco, and pearl buttons, was designated by the President of the Philippines as the logical office to take charge of the operation of the export control law in Executive Order No. 3, issued on July 10, 1946, prescribing rules and regulations for this control. Section 1 of this Order listed 41 products, articles, materials, and supplies, both of local and foreign origin, which were prohibited from exportation, among them articles of prime necessity such as rice, sugar, milk, cheese, but ter, eggs, lard, poultry, grains, vegetables, coffee, tex tiles, cotton, shoes, soap, and such other products as were in short supply at the time and which were needed for the agricultural and industrial rehabilita tion of the Philippines. The prohibition of the exportation of the prod ucts in Section 1 of this Order, however, was not ab solute in order not to unduly interfere with the coun try’s foreign trade. If, upon due survey and inves tigation by the offices and entities of the Government to which each application to export is referred, it was found that there was sufficient supply of the articles or products applied for to take care of local demand, limited quantities of these products were permitted exportation. Exportation of products, articles, materials, and supplies to the United States, whether of prohibited exportation or not, were not, under the provisions of this Executive Order, subject to the issuance of an export license; in other words, they were permitted to be shipped to the United States freely, the only requirement being the ordinary filing of a through 381 bill of lading with the Bureau of Customs. The Ex ecutive Order further provided that the exportation of products, materials, and articles purchased from the United States Foreign Liquidation Commission which were sold by said Commission specifically for export was, as it is now, permissible. In a separate Executive Order issued in 1946 by President Roxas under the emergency powers of the President of the Philippines, the exportation of lum ber was prohibited to the extent of 20 r/o of the out put of each lumber producer. Later this control was liberalized by permitting the exportation of lumber to the extent of 50% of the quantity of lumber pro duced. Finally, on June 7, 1949, the control was en tirely abolished and since then the exportation of lumber has been free. The President of the Philippines later amended Executive Order No. 3, imposing an application fee of P2 for each application submitted to the Sugar Quota Office, and an export license fee of P5 for each Pl,000 of the declared value of the goods applied for exportation or fraction of said value amounting to P500 or more, provided that the license fee for each license issued does not exceed P50. Later the Cabi net prescribed a royalty fee for each kind of scrap metal permitted exportation, to be collected in addi tion to the application and' export license fees. From November 1, 1946, when the license fees were put into effect, to August 31, 1949, the revenue derived by the Government from these sources amounted to Pl,914,803.27. On March 17, 1947, the President further amended the Executive Order, requiring the issuance of export license on all shipments to the United States of copra and all properties transferred to the Philippines under the agreement between the Republic of the Philippines and the United States, dated September 11, 1946. EXPORT control under Commonwealth Act 728 al ready referred to, expired on December 31, 1948. Though requested to do so by the President, the Con gress failed to re-enact this law and the President therefore extended the export control by the use of his emergency powers, through the issuance of Ex ecutive Order No. 192, dated December 24, 1948. The control, as ordered by the President under this Ex ecutive Order, however, was greatly liberalized. Many of the articles in the prohibited list of exporta tion in the previous Executive Order were removed, such as sugar, textiles, cotton and light material, soap, oils, fats, waxes, and derivatives thereof, lamps and other lighting supplies, coal, and coke. There were, however, some articles and materials that were in cluded in the new Executive Order as prohibited from exportation, and these were: all scrap materials, com bat vessels and other combat equipment, and prod ucts exported by the United States and foreign coun tries to the Philippines under allocation. Liberaliza tion of control was also effected through the aboli tion of the requirement that products not listed in PRODUCTS EXPORTED TO THE PHILIPPINES UNDER ALLO CATION BY EACH FOREIGN COUNTRY, INCLUDING THE UNITED STATES, AND BY THE INTERNATIONAL EMERGENCY FOOD COUNCIL AND. THEREFORE, PROHIBITED FROM EX PORTATION UNDER EXECUTIVE ORDER NO. 220, DATED JUNE 4, 1949, AMENDING ITEM 41, SECTION 1, OF EXECUTIVE ORDER NO. 192, DATED DECEMBER 24, 1948. UNDER UNITED STATES DEPARTMENT OF AGRICULTURE MEAT AND MEAT PRODUCTS Corned Beef MILK AND DAIRY PRODUCTS Condensed milk Butter Cheese Chemicals containing artificial radioactive isotopes Chromium salts and compounds Gallium salts and compounds Lead antimonate, lead arsenite, lead dioxide Radium ore concentrates Radium salts and compounds Tin componds (radium content) PIGMENTS. PAINTS, AND VARNISHES Lithopone Red lead, dry, in oil Litharge White lead, dry (basic lead carbonate), in Basic sulfate of white lead Chrome pigments containing 10% or more free chrome pigments oil chromium, except leadLead pigments, including blue lead and lead sulphate Lend sublimed in oil Paints containing radium Canned Codfish, salted UNDER THE OFFICE OF INTERNATIONAL TRADE (DEPARTMENT OF COMMERCE) COAL-TAR PRODUCTS Coal-tar pitch Creosote or dead oil Dimethyl phthalate NON-FERROUS METALS Copper pipes, tubes, plates and barewire Bronze and brass bars, plates Lead bars, sheets, solder type metal TIN PLATES IRON AND STEEL Galvanized iron Welded galvanized steel pipe Uncoated iron and steel wire MEDICINAL AND PHARMACEUTICAL PREPARATIONS Insulin UNDER INTERNATIONAL EMERGENCY FOOD COUNCIL Quinine sulfate, hydrochloride Quinidine alkaloid, salts and compounds Streptomycin Bismuth sub-carbonate, sub-gallate, sub-nitrate, sub-salicylate Radium salts and compounds Radon (radium emanations) Chemicals containing artificial radioactive isotopes CHEMICAL SPECIALTIES Naphthalene balls and flakes Synthetic gums and resins INDUSTRIAL CHEMICALS Ethylene glycol Lauryl alcohol Lead acetate Sodium carbonate, calcined or soda ash Soda ash, causticized Sodium nitrate, ammonium nitrate COCOA BEANS RICE FROM INDIA JUTE BAGS AND BURLAPS FROM AUSTRALIA HAM AND BACON CHEESE AND BUTTER FROM JAPAN STEEL SHEETS LIGHT RAILS REINFORCED STEEL BARS CONDUIT AND WATER PIPES RAILS BARBED WIRE BAILING HOOP Urea, urea Beryllium s ammonium salts nits and compounds Bismuth salts and compounds Sources: United States Embassy and Department of Foreign Af fairs. Manila, as of June 27, 1949. 382 the list of articles prohibited from exportation were to be permitted exportation without the issuance of export licenses. The products, materials, articles, and supplies listed in the Executive Order as prohibit ed may be permitted exportation as exceptions under the following conditions: 1. If, after due investigation by the government entities concerned, the available supply of the article to be exported is found to be in excess of domestic requirements, its ex portation may be allowed. 2. Shipment of materials and food, like fish and fish products, to the Filipinos in Hawaii and Guam shall be allowed. 3. Shipments by local firms of their own products to their branches or factories abroad, for the use of the latter, shall be allowed. 4. Exportation of articles or spare parts of articles in the prohibited list that have been brought into this country for assembly or for transhipment or reexportation, shall be allowed, provided that local needs for such articles are adequately supplied, or that new replacements for the same are made. 5. When a particular material under a prohibited class cannot be sold locally because there is no demand for it, its exportation shall be allowed. THIS was the situation in respect to export control in the Philippines when the Supreme Court de cided on August 26 that Executive Order No. 192, is sued under the emergency powers of the President, is not valid. As a result of this, export control is to be discontinued in accordance with the decision of the Supreme Court, 15 days from the date of the entry of final judgment, that is 15 days after the 15 days allowed by the rules of court to each side to file a motion for reconsideration. In other words export control will be discontinued 30 days after August 16, when the decision was promulgated, unless in the meantime, a way is found to permit it to continue pending enactment of the necessary legislation by Congress. The question of whether or not export control should be continued, has thus been brought to pub lic attention. It is believed that like other coun tries, including the United States, which still exercise export control, the Philippines should continue to do so, in a further liberalized manner, in the same way that the export control as exercised through Execut ive Order No. 192, in 1948, issued by the President of the Philippines, was more liberal than that which was exercised through the previous executive order issued by President Roxas in 1946, which is logical be reason of the fact that articles, products, and mer chandise that in the past have been of short supply are no longer so to the extent that they were in pre vious years. Export control is however to be deemed necessary in the following cases: 1. Export control should be continued in order to continue to prohibit the reexportation of products, articles, and merchandise that are exported to the Philippines under alloca tion by the International Emergency Food Council and by the United States and other foreign countries to needy countries. The Philippines is among the countries that receive allocations each year upon our request and that are given in consideration of our needs; in reciprocation, the exportation of these allo cated products is prohibited not only because of our need for such products but in due recognition of the interest of the allocating countries. 2. Export control should be continued to prevent the exportation of combat equipment and materials of war which formed part of the war surplus property turned over by the United States Goverment to the Philippines with the request, later, that the Philippine Government cooperate with the Amer ican Government to prevent certain war combat equipment and materials from falling into the hands of countries which do not subscribe to the ideals for which the last war was fought and won. This combat equipment and these war materials are included in Proclamation 2776 of the President of the United States, dated March 26, 1948, which, by virtue of a joint re solution of the Congress of the United States, makes it un lawful for any person to export or attempt to export from the United States to any other state any arm or ammunition listed in said Proclamation, unless an export license is issued by the Secretary of State. 3. Export control should be continued to prevent the exportation of those war surplus properties transferred by the United States Government to the Philippines which, under the Agreement between the two governments dated Sept ember 11, 1946, are not to be permitted to be imported into the United States, said Agreement being as follows: “That the Philippines shall use its best enleavors to insure that property transferred pursuant to this Agreement shall not be imported into the United States in the same or substantially the same form, if such property was originally produced in the United States and is readily identifiable as such, unless such property is to be imported into the United States for the purpose of reconditioning for reexport, or by a member of the United States armed forces for his personal use”. 4. Export control should be continued to prevent the exportation of articles and products which are in short supply in the Philippines, such as food products, building materials, tractors, agricultural implements, fertilizers and such products as are needed for the industrialization of the Philippines, which include scrap metals of all kinds and iron ore. These products being in short supply will, if permitted to be exported, result in the consequent rise in prices to the detriment of public interest. In this connection, it must be stated that nearly all the conutries of the world, including the United States, still exercise export control especially with regard to local products and needed materials for industrialization, be cause they can not produce said products to the extent of per mitting unlimited exportation. ^THE world is tired of political fanaticism. It is weary of the lies, propaganda, and hysteria created I by dictatorships. It is disgusted by the practice of torture and political allegiance which is in spired solely by fear. “Men want to live together in peace. They want to have useful work. They want to feel themselves united in brotherly affection. They want to enjoy that great privilege — a privilege denied to millions throughout the world today — the right to think their own thoughts and to have their own convictions.” PRESIDENT TRUMAN At the 75th annual conventions of the Imperial Council of the Shrine The New San Miguel Glass Plant By Andres Soriano President, A. Soriano y Compania AN admixture of raw materials mostly sand, some soda ash, limestone, borax, “cullets” (broken glass), etc. plus a lot of high temperature heat and a world of scientific research and technical “know-how” — this all adds up to the product we re cognize as “glass.” Chemistry and Engineering have played the most important roles in the formation of the structure or foundation on which the world’s glass industry of to day has been built, and it is upon this same founda tion that a new and modern unit of this important industry has been erected and recently put into ope ration by the San Miguel Brewery. This new Glass Plant unit is conveniently situat ed on the bank of the Pasig River in the Farola dis trict on a piece of property which the San Miguel Brewery acquired in 1946 from the former Pacific Commercial Company for the sum of P2,000,000. The “Farola Compound” as this property is. .generally referred to, comprises an area of 50,000 square meters, of which the Glass Plant proper covers an area of 8,540 square meters, with a total floor space area of almost 2 hectares. Both the main building, which is an imposing structure, built strict ly along factory lines but still retaining the tradition al San Miguel Brewery motif, as well as the so-called “batch house,” behind the main building, have been constructed entirely of steel and concrete at a cost of P2,650,000. All construction work was done by local ‘ building contractors who, during the period of con struction, which lasted about 15 months, employed on the average from 350 to 400 laborers daily. The production lines of the factory are in the rear of the building and consist of a melting furnace and a maze of intricate and automatically operated machines for making glass bottles. At present there is only one furnace in operation, but provision has The Batch Mixing Machine, where the automatically weigh ed raw materials are thoroughly mixed before being melted in the blasting heat of the furnace. The new glass factory of the San Miguel Bretvery on the Farola, near the mouth of the Pasig River. been made for two additional ones, one of which is now under construction. The furnace presently ope rating is capable of melting 80 tons of glass in 24 hours when operated at a temperature of 2700’ Fahr enheit. The glass is being kept at a constant level in the furnace and the amount present at any time inside this furnace is kept constant at 180 tons. The melt ing operation, however, is maintained at a continuous flow by automatically feeding the mixture of the sand and other ingredients into the rear of the fur nace at the rate required to produce sufficient mol ten glass to keep the bottle-forming machines, which stand in front of the furnace, in uniform continuous operation. There are four of these machines operating from the one furnace, and the speed at which they can be operated is in direct proportion to the size and weight of the bottles which are being made. The smaller the bottles, the faster is the production. Working on bottles that weigh 12 ounces, each machine is cap able of producing 40,000 bottles in 24 hours; in other words, the four machines are capable of producing 160,000 bottles in this length of time. The machines are the latest and most modern automatically operated glass-bottle-making machines yet devised. This complete installation, including melting furnace, tempering ovens or Lehrs, and aux iliary equipment such as air compressors, vacuum pumps, conveyors, etc., represents an overall invest ment of £2,403,000. In order to properly maintain and operate this installation, a complement of highly skilled technical, mechanical and chemical engineers, operators, fore men, inspectors, and laborers are employed. They are all Filipinos, many of whom received their train ing in the small pilot plant operated by San Miguel Brewery before the war. The quantity of the various kinds of raw mate rials entering into the manufacture of glass depends entirely upon the composition and purity of these materials. Representative samples of all materials must pass through the laboratories for exact deter mination of their composition so that the required quantity of each material can be accurately deter mined before mixing and a uniformly high-grade fin ished product may be assured. 384 Samples of the finished product are taken from the production lines at intervals of 30 minutes, night and day, and likewise submitted to the laboratories where they are subjected to rigid physical tests as well as chemical analysis. Two laboratories, one for physical and the other for chemical determination, are situated alongside the Administration Offices in the front part of the main building facing Pasig River. These two laboratories are elaborately equip ped with the most modern scientific instruments and are staffed by competent Filipino chemists who have acquired, through intensive training and study, the special technique pertaining to the analytical control of glass-making. The first requisite for a successful and economic al operation of a glass plant is an abundant supply of high-grade silica sand. After three years of in tensive exploration in many different parts of the Is lands, a supply of this material was found on the east coast of the island of Palawan, about 60 miles north of Puerto Princesa. The sand deposits in this locality proved to carry a high percentage of pure silica (98%) and for this reason are particularly well suited for making glass. After a thorough survey had been made of the area, it was estimated that the reserves of high-quality sand therein would assure a supply for the continuous operation of the glass plant for a period of from 40 to 50 years. Steps were immediately taken to establish min ing operations in this locality, and the first consign ment of sand consisting of 1,000 tons was delivered by barges to the Glass Plant op March 15 this year. Since then, an additional 10,000 tons has been ex tracted and delivered, to take care of the require ments of the Glass Plant which at present amount to 1,500 tons monthly. Incidentally, it should be mentioned that since the day of the inauguration of mining operations in Palawan, the population of the small barrio of Del Pilar, where the headquarters are situated, has in creased from 40 inhabitants to 400, of which more than 100 men are earning their livelihood by parti cipating in the work of extracting the sand. By his establishment of a great new Glass Plant, which he here describes, Mr. Andres So riano, who is a member of the American Cham ber of Commerce, has again demonstrated his faith in the Philippine future and has again shown how capital may be wisely invested here. The venture into the “heavy industry” bracket by the San Miguel Brewery has not only opened up new opportunities for employment of our people, but fits admirably into our young Republic’s economy program of conserving dollar exchange by eliminat ing importations of glass containers of all sorts. The following figures will substantiate the importance of this statement: During the year 1946 the value of imported glass ware into the Philippines (not including window glass or sheet glass) amounted to £3,650,140. The next year, 1947, this amount increased to £4,291,385. During 1948 the value of our importations showed a further increase of almost £2,000,000 to a total of £5,926,528. Considering that by far the greater part of raw materials entering into the glass manufacture are ob tainable in this country, the enormous benefits de rived from the establishment of this industry in the Philippines can easily be realized. In order to effect further economies, the San Miguel Brewery is proceeding with the installation of a modern carton-making plant for making corru gated carton boxes to be used for packaging the fin ished bottles, and a separate processing plant of the latest type of equipment for applying varied-color ceramic labels and other decorations on glass con tainers. These two new units will serve as a com plement to the glass factory and at the same time eliminate importation of finished products of this nature. But this is another story which can be bet ter told and appreciated after completion of these installations. Battery of intricate bottle-forming machines which form the molten glass into bottles. These machines are capable of producing 160,000 12-ounce bottles in 2 J, hours. In the back ground is the melting furnace which supplies the molten glass to these machines. The newly moulded bottles are conveyed to the annealing Lehrs for a 2-hour journey through various temperature zones to give them the proper temper; inspection and packing follozus. 385 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines JULY 25 — Announced that the British Government has ac cepted the nomination of Jose E. Romero as Minister. He will succeed Ramon Fernandez in London. The National Economic Council recommends to President Elpidio Quirino that the Rehabilitation Finance Corporation make a loan of P5,000,000 to the Metropolitan Water District for completion of its first priority projects. It also recom mends that P2,500,000 be released to the National Development Company to replenish its capital funds, out of advances to the Government for development projects by the Central Bank. F. D. Maramba, Director of Plant Industry, reports that the Rice and Corn Production Administration will have placed 20,000 hectares under cultivation by June, 1950, — rice, corn, peanuts, and other food crops, in Cotabato, Bukidnon, and Pa lawan. July 27—The President administers the oath of office to Hermenegildo B. Reyes as member of the Government Enter prises Council. He has a degree of master of mechanical en gineering from Cornell and is also an electrical engineer and a lawyer. He is Vice-President of the Manila Electric Company and former Vice-President of the University of the Philippines and President of the Far Eastern University. He will serve in the GEC as coordinator of the activities of the various govern ment corporations and agencies. Servillano de la Cruz, head of the National Rice and Corn Corporation, announces that rice will be sold at 90<f a ganta in the immediate future, at which price NARIC stands to lose from 7 to 80 a ganta, but this will be offset by the profit realized from the sale of imported rice. The Government at present has some 70,000 cavans and is expecting about 60,000 from abroad; 80,000 cavans will be placed in reserve. Delfin Buencamino, Chairman of the board of the Reha bilitation Finance Corporation, announces that a branch of the RFC will be opened in Davao on August 1. He reports that the RFC has so far extended loans totalling some Pl 16,000,000 for the building and rebuilding of homes, P28,000,000 for the rehabilitation of farms, not including some P33,000,000 to the sugar industry, P69,000,000 for the revival and promotion of industrial establishments, P8,000,000 for the construction of public markets and slaughterhouses, and some P10,000,000 for the purchase and subdivision of 14 estates (total area of 12,000 hectares) for resale to some 5,000 tenants. July 28 — The President issues the following statement concerning his trip to Washington: "I have accepted with pleasure an invitation from the President of the United States to visit Washington at an early date. The possibility of such a visit has been discussed in messages exchanged between us during the past several months and I am happy that we have been able to ar range a mutually satisfactory time. I know of President Truman’s deep interest in the welfare of the Filipino people and I am looking forward to the opportunity of discussing with him a wide range of subjects of concern to our two countries. There is, however, no single plan or policy on which I shall seek to obtain agreement during the course of my visit. It is my hope that the visit may serve to strengthen the friendship long felt between the United States and the Philippines. I plan to leave Manila in time to arrive in Washington on the 8th.” Ambassador J. M. Elizalde informs the President that President Truman has issued a proclamation restoring the 2-cent differential in favor of Philippine copra. “This will insure practically exclusive access to the United States market for Philippine copra and coconut oil,” he reports. July 29 — The President initiates action to hasten the reconstruction of the Metropolitan Theater, for which the War Damage Commission has allotted some P600.000. The President names Judge Antonio Horrilleno Chairman of the Labor-Management Advisory Board, succeeding Judge Rafael Corpus. July 31—The President gives a “despedida” dinner at Malacanan for U. S. Charge d’Affaires and Mrs. Thomas H. Lockett who are scheduled to leave the Philippines on August 15. A UGUST 1 — The President issues an executive order dis** continuing the waiver of the additional progressive tax on sugar unless the sugar central concerned can show it is operat ing at a loss. The National Economic Council adopts a resolution recom mending a more strict enforcement of import control measures. It also recommends release of Pl,000,000 out of the P5,000,000 made available by the Central Bank for irrigation projects, to be used as reimbursible funds for the purchase of portable irri gation pumps to strengthen the Administration’s rice-produc tion program. The President’s Action Committee for Social Amelioration (PACSA) reports that during the fiscal year ending June 30, it distributed palay seed and seedlings for root and other quick crops to the value of P383,500 to replant devastated farms; Pampanga, Tarlac, Laguna, and Nueva Ecija received the largest shares. This aid did not include around P100.000 distributed in crop loans. Aug. 2 — The President honors his former teacher in the old Manila High School, E. J. Albertson, New York newspaper publisher, with a cocktail party at Malacanan attended by around 60 members of the 111 original members of the Class of 1910. Aug. 3 — The President hands Ambassador C. P. Romulo his letter of instructions on the proposed Southeastern Asia . Union, placing him in full charge of the preliminary work. The installations and facilities of the U. S. Army at Fort McKinley and Nichols Field are formally transferred to the Philippine Government as a prelude to the eventual transfer of the title. Not included in the transfer is the 10th General Hospital and a number of othei’ units. Aug. 4 — Budget Commissioner Pio Joven announces that the Government is prepared to sell all former U. S. Army sur plus property to the highest bidder, “as is, where is”, bids to be received until 12 noon, August 15. Aug. 5 — The President holds a one-hour conference with a group of representative American businessmen headed by •F. H. Stevens, President of the American Chamber of Com merce, who call at his invitation to discuss the business situa tion and investment problems. A smaller group of representa tives of automobile dealers were received at the same time. Present also were Secretary of Finance Pio Pedrosa, Secretary of Commerce and Industry C. Balmaceda, and Central Bank Governor M. Cuaderno. The President directs Secretary of Public Works and Com munications P. Sanidad to release P100,000 for the immediate reconstruction of the Central Market in Manila which was des troyed by fire early this morning. Announced that the Government has made representations with the United States Government requesting a reimburse ment in the amount of over P29,000,000 paid by the Philippine Government in bonuses to enlisted men in the Philippine Army following its induction into the Armed Forces of the United States. Aug. 6 — The President leaves Manila for the United States on the Philippine Air Lines flagship Manila at 10 a.m., accompanied by Secretary Pedrosa and Jose Yulo, members of the Council of State. Among the technical advisers accompany ing him also are Brig. Gen. C. Duque, Deputy Chief of Staff, Armed Forces of the Philippines and F. Rodriguez, General Manager, National Power Corporation. A squadron of 35 ad vanced trainer planes and a fighter squadron of 16 planes escort the Presidential plane up to the Sierra Madre mountains. The U.S. Information Service, Manila, announces that U.S. naval installations along the route have been alerted and that arrangements have been made “for hospitality, personal secur ity, and aid in case of need” for the Presidential party. Aug. 9 — President Truman and Secretary of State Dean Acheson lead American officialdom in meeting President Quirino at the Washington airport on August 8 (Washington date). The Department of Foreign Affairs announces that the primary concern of the first Philippine consular envoy to In dia, Judge Maynardo Farol, will be to “foster effective collabora tion between the Philippines and India in the economic, cul tural, and political fields.” Aug. 10 (Washington date August 9) —President Quirino delivers separate addresses to the House and Senate of the U. S. Congress. He “pledged the Philippines to fight on the side of 386 America in defense of freedom, but appealed to America for a ‘redefinition of the fundamental attitudes toward Asia’ ”. "We are determined to carry on and fight to the last man on the side of America if freedom — our freedom and your freedom — should ever again be menaced and the democratic way of life imperiled... I have come to your country in ths furtherance of the mutual under standing between your country and mine: for the preservation not only of freedom and prosperity but. also of the peace of the world in our part of the globe. I hope this mightiest of legislatures in the world will give a timely and effective cooperation in our efforts to achieve a rich promise of understanding and enable us to contribute in our modest way toward the fulfillment of the high mission of the United States in the advancement and preservation of world peace and the security of all liberty-loving peoples.” (In the House.) "Today the most urgent problem that confronts the Philippines and other free countries of Asia is the problem of security. It is, in fact, the principal problem which besets all those states that lie athwart the advancing tide of Communism. The Philippines rejoices with the rest of the world for there, at least, has been erected a mighty bulwark against the advance of Communism in Europe. However, it is obvious to every one that the task of securing a free world is only half done. Asia, with its vast population which accounts for more than half of the total popu lation of the world and with its incalculable resources, can not and ought not to be lost to Communism by default. And yet this is bound to happen unless something of the courage and vision that went into the forging of the democratic defenses of Europe is applied through the forging of a similar system of defense for Asia. I feel very strongly that thr free countries of Southeast Asia and the Pacific must them selves start a movement toward closer cooperation and the furth»rance of their common interests in the political, economic, and cultural fields. No military commitments should be contemplated. It is my feeling that we still have time in the free countries of Asia to halt the advance of Commu nism by non-military means. The fundamental aim and purpose of the Pacific Union is to forge stronger ties of economic cooperation and collaboration between the free countries of Asia so as to enhance their prosperity, hasten the march of self-government, afford concentration in internal development, and to preserve their freedom..." (In the Senate.) Aug. 11 — The Department of Foreign Affairs orders the immediate evacuation from Canton and Amoy of all Philip pine nationals including non-essential dependents of members of Philippine diplomatic and consular staffs in these two cities. Aug. 12 (Washington date Aug. 11)—The White House releases a statement concerning the visit of President Quirino published else where in this issue of the Journal. President Quirino arrives in New York and receives a “gala welcome.” Aug. 13 (New York date August 12) —President Quirino at a banquet tendered in his honor by the Philippine-American Chamber of Commerce and the National Foreign Trade Council, issues “a direct invitation to American capital to come to the Philippines”. "Referring to reports on local attempts at nationalistic legislation and Huk activities. President Quirino said that these have been greatly exaggerated. Of course, all sorts of bills are always being filed by Philippine legislators, as elsewhere, he said, but these! do not necessarily reflect• public opinion, much less get enacted. As for the Huk problem, he cited the fact that he is able to go abroad as proof that there is nothing alarming about Huk activities. He concluded his talk by de claring that the Filipinos have always been friendly to America and will welcome active economic cooperation from Americans now and in the future.” Earlier in the day the President received the honorary de gree of Doctor of Laws from Fordham University. Malacanan announces the appointment of Marciano S. Ang eles as General Manager of the Insular Refining Corporation and as Manager of the Pulp and Paper Mill Department of the National Development Company. The Emergency Currency Board headed by Insular Treas urer M. Guevara announces that all registered emergency and guerrilla currency notes will be redeemed by the Government not later than September 9 of this year. Aug. 15 — President Quirino in a radio broadcast from San Francisco beamed to the Philippines by RCA states, with re ference to the honors and courtesies he has received in the United States: "All these public demonstrations are but fair manifestations of the high regard in >yh>ch America holds her Daughter-Republic in the Orient.” Aug. 17 — The Department of Foreign Affairs instructs the personnel of the Philippine liaison office in Canton to evacuate all non-essential personnel and all records to Hong kong. Associate Justice Gregorio Perfecto of the Supreme Court dies. Aug. 18 — The President returns to Manila and delivers a short address at the airfield expressing deep satisfaction with the results of his trip. Aug. 19 — The President signs an executive order making Butuan, Agusan, a national port open to coastwise trade. Announced that the air transport treaty with Thailand has been technically completed by the Philippine Air Mission. The Mission will shortly leave Bangkok for New Delhi. Aug. 20 — The President swears in Presiding Justice Luis P. Torres of the Court of Appeals as Associate Justice of the Supreme Court, replacing the late Justice Perfecto, and swears in also Justice Fernando Jugo, Associate Justice of the Court of Appeals, as Presiding Justice of that tribunal. Later in the day the President goes to Baguio for a rest. Announced that the resignation of Jose C. Zulueta as Acting Chairman of the Surplus Property Commission has been accepted, effective today. 242~ The President appoints Quintin Paredes. Jr. one of the Associate Commissioners of the Public Service Commissl?n- Since liberation Mr. Paredes has been provincial fisAug. 24 —President Quirino addresses the following ra diogram to president Truman: Allow me fo express my deep gratification over your formal an nouncement at Miami that thu Philippines is included in the United States military assistance program for Atlantic Treaty countries. Your speech has undoubtedly brought the United States closer to the hearts of p«£ples like ours whose national security is presently threatened by the advance of Communism. America’s stand in joining in the common defense of the rights of all mankind gives us renewed hope and confidence.” (Continued on page 407) Banking and Finance By C. V. Grant Sub-Manager, National City Bank of Neto York COMPARATIVE figures of assets and liabilities of the Central Bank follow: ASSETS (in thousands of Pesos) As of January 31 As of June 30 As of July 31 International Reserve ... Contribution to Interna tional Monetary Fund . Account to Secure Coinage Domestic Securities ........ Due From Treasurer of Philippines ................... Other Assets .................... P877.395 P714.969 P641,617* P573,031’ 30,000 30,000 30,000 113,106 113,306 113,306 — 9,739 10,354 _ 7,626 19,320 22,681 23,627 P824,969 P750.318 LIABILITIES Currency: Notes ............ P621.521 Coins .............. 73,035 Demand Deposits — Pesos 169,351 Dollars — Securities Stabiliza tion Fund ................. 2,000 Due to International Mo netary Fund ................. Due to International Bank for Reconstruction and Development ................. Other Liabilities .............. 1,408 Capital .............................. 10,000 Undivided Profits .......... P877.395 P824.969 P750,318 * The Demand Deposit Liabilities in U.S. Dollars are deposits of ths Treasurer of the Philippines. These amounts are included on the Asset sido as part of the International Reserve. A further substantial decline in the International Reserve occurred during July, which has focused con siderable press attention on the problem of the spreading gap between the value of imports and ex ports. While Import Control and a gradual decline in prices of some imported commodities, have brought about a drop in the monetary value of imports (main ly due to a decline by one-third since the end of 1948, 387 and a drop of 50% from a year ago, in the export prices of copra), the value of exports for the first 6 months of this year decreased by P66,000,000 com pared with the same period in 1948. This figure compared with the drop in value of imports of only P33,500,000. The other principal contributing factor to the continued decline in the International Reserve during July, was the comparatively limited amount of dol lars received from the U.S. Treasury, which funds cushion the effect of the adverse trade volume. On August 12, the Central Bank notified the banking community that the Secretary of Finance had issued a directive to the Treasurer of the Philip pines that henceforth the obtaining of a license from the Foreign Funds Control Office was no longer re quired for remittances abroad. Previously, such licenses were required for remittances in excess of $2,500 monthly for other than payments of imports. The Central Bank has recently released the fol lowing comparative figures for the period January through May, 1949. MONEY SUPPLY* Currency Deposit Net Money Total Deposits, National Savings Time Treasurer Deposits Deposits Year and Month 1948 Dec............ 526 607 ' 1,133 22 227 22 .1949 Jan............ 572 617 1,189 16 235 23 Feb............. 571 589 1,160 16 236 24 Mar........... 571 556 1,127 1,157 17 237 27 Apr............ 588 569 17 236 28 May ........ 552 549 1,101 16 237 28 Money supply consists of currency issued, _____ ___ ______ ______ .. ............................ .......... —...... banks; plua the peso checking-deposit liabilities of banks, excluding the national gov ernment deposits and interbank deposits but including unused over draft lines. During the past month there has not been any alteration in the rates at which the Central Bank buys and sells to commercial banks, nor in the rates between which the banks are permitted to quote to clients. For prime business, banks generally are quoting Telegraphic Transfers 201.25 selling, and 200.625 buying. Stock and Commodity Markets By A. C. Hall A. C. Hall Company New York Stocks. — The advance, which began on June 13, has continued to make headway during the past month, with chemicals, foods (including sugars), and oils amongst the best-acting issues. Leading automobile stocks showed little response to record-breaking first-half 1949 earnings. Steels marked time as Wall Street tends to await the report of the Presidential fact-finding board on the steel wage situation. As noted last month, monetary influences have continued to exert pressure toward lower yields for medium and long-term high grade bonds. This tendency is likely also to have a firming effect on the best quality common stocks. Market fluctuations during the period, as mea sured by the Dow Jones Averages were as follows:— July 2.1 High Low August 19 Industrials ............... 174.59 182.02 174.53 181.16 Rails ......................... 44 87 47.72 44.84 46.84 However, the movement of the averages is not too reliable a guide at the moment, as the market is a very mixed affair with numerous stocks moving against the trend of the averages, both on declines and advances. Recent business news indicates that with con sumption in many lines continuing to run ahead of output, inventories have been reduced to the stage that some shortages have appeared. This has resulted in satisfactory new buying and an increased rate of production in a number of industries. Other strong spots in the economy include the continuing high rate of automobile production and building construction. Offsetting these favorable factors in the business picture, are renewed wage demands in the steel and automobile industries. It is generally felt that fur ther wage increases or any prolonged strikes in ma jor industries at this time would seriously disrupt the progress already made toward a healthy peace-time economy. In the face of many uncertainties, it is not sur prising that financial opinion is very divided on the market outlook. According to Dow Theory, the cur rent advance is a secondary reaction in a primary bear market. A leading statistical service feels that the November-July business recession has only ac complished part of the readjustments which are need ed. On the other hand, another equally prominent stock review has held and continues to hold the view that the recession would be relatively mild and brief, although admitting the possibility that some jolts lie ahead before the economy gets out of the woods. It is the writer’s opinion, based on a study of the market action of a large number of individual stocks since 1946, that share prices, for the most part, have already completed their post-war adjustment, and, as usual, ahead of the business picture. However, ‘having advanced uninterruptedly for nine consecutive weeks, the market must be considered vulnerable to any unfavorable new developments in the near future. /COMMODITIES. — The Government report as of August 1, estimated a further reduction of 57,000,000 bushels to 1,130,000,000 bushels as total wheat production. It is anticipated that larger amounts will enter the loan than last year, thereby creating a tightening of supplies later on in the year. September Chicago Wheat was quoted at $1.98% against $2.02 % last month. There was a small in crease in estimated total production of Corn as of August 1. Cash demand continues good but abund ant supply is a depressing factor on Futures. Sept ember Chicago Corn was $1.21% against $1.29% the previous month. Cotton futures were slightly higher on good domestic and foreign demand with New York October closing at 29.85 as compared with 29.71 a month ago. The present sugar quota is caus ing a tighter statistical situation; September New York #5 Contract improved to 5.44 from 5.38 last month. MANILA Market. — There was a good followthrough to last month’s advance in well placed mining issues, but the sharpness of the advance car ried the market into an overbought position, and vul nerable to profit-taking latterly. An unfavorable de velopment during the past few days has been the slower demand for gold in the local market as a re sult of the deteriorating position in South China. 388 This is of major importance to the local gold indus try in view of continuing high costs. It remains to be seen whether this is a temporary or permanent state of affairs. If the latter, then profit estimates of local gold mining companies in future will be subject to downward revision. In the Commercial and Industial section, selective demand for Sugar issues has been a feature. impersonal expression of pesos and centavos cannot accurately gauge the human suffering involved nor the overall loss to the Philippine economy. This staggering fire loss and burden to the Phil ippines should be of concern to all the people, for in one way or another they affect all the people be they taos or captains of industry. Mining Shares Electric Power Production Manila Electric Company System By R. J. Baker Manila Electric Company ■1949 1948 January......................... 33 745 000 27 301 000 February........................ 31 110 000 26 021 000 March............................. 34 776 000 26 951 000 April............................... 33 048 000 26 871 000 L O May................................ 34 453 000 28 294 000 w June................................ 34 486 337 29 216 000 £ July................................ 35 726 123* 31 143 000 T August........................... 35 381 500** 31 993 000 September...................... 32 012 000 h October.......................... 33 943 000 November...................... 32 661 000 R S December....................... 35 104 000 Over-the-counter business in mining stocks was again principally confined to Benguet Consolidated, with about 22,000 shares traded between high P4.75, low P4.35, close P4.45. Other business included 10,000 shares Taysan “A” at 12 centavos In Commercial issues, 100 shares Kabankalan Sugar were reported at P85, also 4,300 shares Manila Broadcasting at 1.30 and 340 shares Victorias Milling at P155 and P160, with almost all business at the latter price. TOTAL ......................... 361 510 000 * Revised ** Partially estimated The Caliraya Hydro Plant was shut-down for the period August 14-20, and we estimate a 1,200,000 KWH was not used during that period due to our in ability to carry the load with the remaining generat ing equipment. The increase over August, 1948, was 3,388,500 KWH, or 16%. Insurance Victor H. Bello Supervisor, American Foreign Insurance Association RECENT investigations by Government entities into alleged arson anomalies should be applaud ed by all concerned. All concerned in this instance means not only those bodies appointed to uphold law and order or fire insurance companies but the entire citizenry of the Republic of the Philippines. Arson is a despicable crime. Perhaps more de spicable and onerous than premeditated murder, in juring as ’it does in most instances the innocent stranger. The magnitude of such a crime is recog nized throughout the world and is prosecuted by law enforcing bodies with such vigor that the crime of arson in most countries is rare in comparison to other major crimes. The Philippine economy today is burdened with a fire-loss ratio that it can ill afford. Manila alone, for the fiscal period ending June 30, 1949, suffered fire losses in excess of P10,000,000, or a per capita loss of P7.25 based on a population of 1,500,000. This Real Estate By C. M. Hoskins (0/ C. M. Hoskins & Co., Inc., Realtors) REAL estate transfers in Manila during August totalled P2,228,597, compared with P3,019,784 for the month of July. Mortgages recorded amounted to P4,924,841 for August, against P12,446,530 for July. Cumulative totals of sales for the first 8 months from 1946 to 1949 were as follows: Januar-July 1946 ...................................................... P27.926.910 1947 ...................................................... 47,356,765 1948 ...................................................... 39,277,629 1949 ......................................................... 25,306,764 City of Manila real estate statistics seem to be losing some of their value as an index to metropo litan real estate activity, due to the steadily increas ing volume of sales in other portions of the Greater Manila area, such as Santa Mesa Heights, New Ma nila, Diliman, and Mandaluyong. These sections are capturing a substantial share of the residential pur chasing power of the metropolitan community. 389 REAL ESTATE SALES IN MANILA, 1940-1949 Prepared by the Bureau of the Census and Statistics Note: A large percentage of 1945 sales and a diminishing percentage of 1496 sales, re present Japanese Occupation transactions not recorded until after liberation. January February March . April . . May . . June . . July . . August . September October . . November December Total . . 1940 P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 P17,974,844 PIO,647,285 P22,890,133 P45,537,914 P68,260,104 P57,798,121 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 (?) 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,780 1,123,565 699,740 1,870,670 2,096,893 2,555,472 2,874,408 1946 P 4,385,011 2,267,151 2,622,190 1,916,293 3,684,937 3,637,956 4,974,862 4,438,510 4,698,896 5,545,800 3,340,384 4,025,926 1947 P 6,030,012 7,217,317 7,166,866 8,611,076 4,618,181 3,988,560 4,097,183 5,627,572 7,437,213 6,083,486 4,177,054 3,205,584 1948 P 3,644,734 3,879,633 4,243,719 5,021,093 3,129,799 8,019,246 5,146,529 6,192,876 4,737,581 5,350,376 3,046,287 5,386,248 1949 P 3,965,420 2,701,668 3,362,635 3,677,630 4,253,395 2,793,217 3,019,784 4,924,841 P28,698,590 The rental situation in Manila shows an abund ance of residential properties available in the Pl50 to P500 class, including both apartments and detach ed dwellings. Housing for low-income groups con tinues critically short, as very little reconstruction money has been channelled into low-income housing since 1941. Choice retail locations are still in good demand, with a slight easing of rental rates. Office space shows a growing percentage of vacancies in new buildings, and warehouse space is more readily avail able than at any time since 1945. Office and ware housing space appears to be feeling the effects of import control. During August the Supreme Court held invalid the executive order of President Roxas limiting res idential rentals to 12% of assessed value. This de cision restores to effectivenes -Republic Act No. 66, which establishes a rental ceiling of 20% of assessed value. In some quarters it is felt that if the 20 fi gure is allowed to stand, it will bring about sub stantial activity in the construction of low-rent dwell ings, particularly of the “accesoria” or row-house class. Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports continued to show an increase in tonnage over last year. A total of 189,210 tons was exported to all destinations during ■ July of this year, as against 170,156 tons exported during the same month last year. Exports of the more important commodities dur ing July this year, as compared with July last year, were as follows: 1949 1948 Alcohol ................. 86 tons 174 tons Coconut desiccated. 9,412 ” 8,376 ” . Coconut Oil ........... 9,472 ” 2,800 ” Concentrates, copper ................ 1,397 ” 151 ” Concentrates, gold . 174 ” 44 ” Copra .................... 50,014 ” 38,516 ” Copra cake/Meal .. 4,544 ’ 4,544 ” Embroideries ........ 176 ” 171 ” Empty containers . 450 ” 310 ” Fish, salted ........... 51 ” 6 ” Furniture, rattan .. 307 ” 590 ” BUILDING CONSTRUCTION IN MANILA: 1936 TO 1949 Compiled, by the Buread of the Census and Statistics from data supplied by the City Engineer’s Office. Annual Total . P6,170,750 P7,530,690 P9,280,560 P9,053,250 P8,234,460 P5,692,273 P12,186,150 P47,526,905 P73,907,248 P82,792,569P40,233,975 Average P 514,229 P 627,557 P 773,380 P 754,438 P 686,205 P 474,356 P 1,015,513 P 3,960,575 P 6,158,937 P 6,899,381 P 5,747,710 1936 1937 1938 1939 1940 1 1941 | 1945 1946 1947 1948 1949 1VLUJN 111 | (Value) (Value) | (Value) | (Value) | (Value) | (Value) | (Value) (Value) | (Value) | (Value) | (Value) January . P 540,030 I> 426,230 P 694,180 P 463,430 Pl,124,550 P 891,140 P — F► 1,662,245 P 3,645,970 P 6,571,660 P 4,807,320 February 720,110 479,810 434,930 1,063,950 1,025,920 467,790 _ 2,509,170 3,270,150 6,827,005 7,286,630 March . . 411,680 396,890 1,300,650 662,840 671,120 641,040 — 3,040,010 3,398,910 7,498,560 8,100,700 April . . 735,220 659,680 770,130 1,029,310 962,420 408,640 462,020 3,125,180 • 8,295,640 7,370,292 5,558,245 May . . . 400,220 670,350 1,063,570 1,139,560 740,510 335,210 1,496,700 3,964,460 5,564,870 8,570,410 5,070,380 June . . . 827,1'30 459,360 754,180 809,670 542,730 418,700 2,444,070 3,904,450 5,898,580 10,217,840 4,809,250 July . . . 302,340 691,190 756,810 495,910 357,680 609,920 1,741,320 3,062,640 9,875,435 7,771,487 4,601,450 August . . 368,260 827,660 627,790 622,050 661,860 306,680 1,418,360 4,889,640 7,428,260 7,568,950 September 393,100 777,690 684,590 554,570 590,380 530,830 1,015,250 7,326,570 7,770,310 7,095,860 October . 663,120 971,780 718,190 645,310 738,700 699,040 639,030 4,630,550 6,747,240 5,368,800 November 460,720 320,890 972,310 461,580 485,100 315,930 1,364,310 4,373,390 7,088,283 3,424,125 December 648,820 849,160 503,230 1,105,910 333,490 67,553 1,605,090 5,034,600 4,924,320 4,507,580 390 Hemp ..................... 43,284 bales 55,071 bales Household goods .. 154 tons 138 tons Junk, metal .......... 12,345 ” 12,782 ” Logs ....................... 1,485,976 board feet 1,970,323 board feet Lumber ................. 700,266 ” 1,848,590 ” Ores, chrome ......... 13,000 tons 22,900 tons Ores, iron .............. 21,084 ” — Ores, manganese .. 4,329 ” 1,350 ” Pineapples, canned. 11,564 ” 4,196 ” Rattan, furniture . 119 ” 85 ” Rope ...................... 360 ” 486 ” Rubber .................. 114 ” — Skins, hides .......... 52 ” 104 ” Sugar, raw ............ 35,412 ” 48,435 ” Tobacco .................. 50 ” 518 ” Vegetable oil prod ucts .................... 102 ” 253 ” Wines ..................... 57 ” — Transit cargo........ General 2,107 ” 601 ” merchandise .... 2,181 ” 5,915 ” TOTAL exports from the Philippines for the first half "of 1949 showed a decided increase over exports during the same period of 1948. 1,285,195 tons of cargo left the Islands during the first six months of this year, as against 923,680 tons during the first semester of 1948. Sugar, of course, showed the greatest gain, fol lowed by ores and lumber and the minor commodities in general. Copra which moved in such large quantities dur ing the first post-war years, showed a decline of some 90,000 tons. The following figures will show at a glance how the various exports for this period compare with those of last year for the same period. GOLD U.S.A.................... 1,270 ” 556 CONCENTRATES, First Half First Half ALCOHOL 1949 .1948 China ................. 95 tons 195 tons Saigon, Straits, India ............... 180 175 ” BEER Guam, Honolulu . 171 ” — Japan ................ 1,029 ” — BUNTAL FIBER China ................. 53 ” — CIGARS AND CIGARETTES Guam, Honolulu . 12 ” 46 ” China ................. 24 ” 47 ” Europe .............. 4 ” — COCONUT, DESICCATED U.S.A.................... 48,445 ” 41,689 ” Canada ............... 329 ” 423 ” Europe .............. 94 ” — COCONUT OIL U.S.A............... 17,710 ” 15,385 ” Europe .............. 7,544 ” 171 ” Africa ................ 503 ” — CONCENTRATES, COPPER U.S.A.................... 13,033 ” 410 ” CONCENTRATES, LEAD JT.S.A..................... 189 ” COPRA U.S.A.................... 130,571 ” 202,240 Canada .............. 2,750 ” 15,549 Japan"................. 6,075 ” 18,340 Europe .............. 91,897 ” 111,486 Africa ............... 5,728 ” — South America . 2,319 ” 2,211 COPRA CAKE/MEAL U.S.A.................... 23,236 tons 3,098 tons Europe ............... 9,698 ” 19,628 ” South America . 100 ” — EMBROIDERIES U.S.A.................... 673 ” 495 ” EMPTY DRUMS U.S.A.................... 2,096 ” 2,031 ” China ................. 17 ” 10 ’’ N. E. Indies .... — 81 ” Saigon, Straits, India .............. 181 ” 40 ” Australia ........... 101 ” 114 ” FISH, SALTED, SMOKED U.S.A.................... 81 ” 101 ” FOODSTUFFS, CANNED U.S.A.................... 1 ’’ 198 ” China ................. — 32 ” FRUITS, FRESH U.S.A.................... 5 ” - China ................. 1,029 ” 140 ” FURNITURE, RATTAN U.S.A.................... 3,080 ” 2,971 ” Canada ............. — 4 ” China ................. 9 ” 13 ” Japan ................ 182 ” 282 ” Saigon, Straits, India ............... 18 ” 6 ” Europe ............... 16 ” — Africa ............... 4 ” 5 ” South America 354 ” 360 ” GLYCERINE U.S.A.................... 952 ” 112 ” China ................ — 5 Europe .............. — 70 ” GUM, COPAL U.S.A.................... 318 ” 443 ” China ................. 2 ” 2 ” Europe .............. 17 ” 53 South America . — 6 ” GUM, ELEMI U.S.A.................... 1 ” 2 ” Europe .............. 19 ” 9 ” South America . — 1 ” HEMP U.S.A.................... 107,008 bales 190,522 bales Canada .............. 1,553 ” 3,301 ” China ................. 8,131 ” 6,530 ” Japan ................ 85,822 ” 77,718 ” Saigon, Straits, India .............. 3,745 ” 2,385 ” Europe .............. 83,243 ” 103,569 " Australia ........... 800 ” 42 ” Africa ................ 2,266 ” 1,460 ” South America . 100 ” 2,950 ” HEMP, KNOTTED U.S.A.................... 18 tons 28 tons Europe ............... 1 ” 28 ” HOUSEHOLD GOODS U.S.A.................... 689 ” 524 ’’ Canada .............. 5 ” 1 ” China ................ • 113 ” 42 ” Japan ....................... 68 ” 31 ” Saigon, Straits, India .............. 117 ” 14 ” Europe ............... 229 ” 41 ” Australia .................. 24 ” 24 ” Africa ...................... — 8 ” South Africa ... 18 ” 7 ” JUNK, METAL U.S.A.................... 46,341 ” 39,396 ” Canada .............. 96 ” — China ................. 1,806 ” 2,779 ” Saigon, Straits, India .............. 3,139 ” 579 ” Europe .............. 4,398 ” 61 ” Africa ................ — 71 ” South America . 3,140 ” 336 ” 391 KAPOK U.S.A.................... KAPOK SEEDS 188 tons 432 tons Japan ................ LOGS U.S.A.................... 303 ” — 3,269,364 board feet 5,597,260 board feet Canada ............... 101,525 ” ” 150,073 ” China ................. 1,244,385 ” ” 653,452 ” Japan ................. 4,092,256 ” 26,914 ” ” 271,268 ” N. E. Indies .... Saigon, Straits, India .............. 86,461 ” ” — Europe .............. LUMBER — 1,371 ” U.S.A.................... 7,984,294 ” ” 3,823,715 ’’ China ................ 1,299,897 ” ” — Japan ................ Saigon, Straits, 3,244,000 ” India .............. — 600 ” Europe .............. 111,069 ” — Africa ............... MOLASSES 348,320 ” — U.S.A.................... 1 tons — tons Japap ................ Saigon, Straits, 14,005 ” 3,887 ” India .............. 3,900 ” — Europe ............... 37,811 ” — ORES, CHROME U.S.A.................... 146,266 ” 120,157 ” Canada .............. 4,000 ” — Europe .............. ORES, IRON 9,860 ” 6,000 ” Japan ................ ORES, ’ MANGANESE 123,172 ” U.S.A.................... 4,795 ” 4,300 ” Japan ................. PINEAPPLES, CANNED 4,079 ” 1,900 ” U.S.A.................... 18,360 ” 6,341 ” RATTAN, PALASAN 95 ” U.S.A.................... 631 ” — 845 ” Canada .............. 6 ” — China ................ — 9 ” Europe .............'• ROPE 1 ” U.S.A.................... 344 ” 708 ” Canada .............. — 7 ” China ................ 61 ” 140 ” Japan ................ — 153 ” N. E. Indies .... Saigon, Straits, 65 ” 163 ” India .............. 617 ” 740 ” Europe .............. 57 ” 48 ” Africa ................ 9 ” 95 ” South America RUBBER 326 ’’ 218 ” U.S.A................... SHELLS 540 ” 580 ” U.S.A................... 244 ” 505 ” China ............... — 4 ” Europe ............ SHELL. BUTTONS 36 ” U.S.A.................. SOAP 10 ” 29 ” Canada ............. . — 58 ” China ............... 10 ” 1 ” Japan .......... "... SKINS, HIDES 6 " 2 ” U.S.A.................. 402 ” 300 ” Japan ............... Saigon, Straits, 59 ” 134 ” India ............. 3 ” — ” Europe ............ SUGAR, RAW 10 ” U.S.A.................. TANNING EXTRACT . 379,324 ” 125,737 ” China ............... 90 ” — Japan ............... 111 ” — TOBACCO U.S.A.................... 345 tons 132 tons China ................ 65 ” 211 ” Saigon, Straits, India ............... 171 ” — Europe .............. 1,603 ” — Australia ........... 55 ” 1,869 ” VEGETABLE OIL, EDIBLE PRODUCTS U.S.A.................... 51 ” 75 ” Canada .............. — 2 ” China ................ 20 ” 18 ” Japan ................ 8 ” 13 ” Saigon, Straits, India .............. 27 ” 36 " Africa ................ — 295 ” South America . 16 ” WINES 153 ” U.S.A.................... 139 ’’ Japan ................ 51 ” Saigon, Straits, 70 ” India .............. — 14 ” TRANSIT CARGO _ U.S.A.................... 1,410 ” 264 ” " China ................ 853 ” 437 ” Japan ................ 103 ” — Saigon, Straits, India .............. — 51 ” GENERAL MER CHANDISE U.S.A.................... 4,894 ” 34,240 ” Canada .............. 59 ” 135 ” China ................ 5,430 ” 13,411 ” Japan ................ 370 ” 3,106 ” N. E. Indies .... 1,432 ” 2,998 ” Saigon, Straits, India .............. 1,178 ” 2,667 ” Europe .............. 396 ” 1,190 ” Australia ........... 298 ” 2,439 ” Africa ............... 2,117 ” 3,234 ” South America .. 2 ” Land Transportation (Bus Lines) By L. G. James Assistant to the President A. L. Ammen Transportation Co., Inc. THE development of bus transportation facilities in the Philippines was pioneered by American capital and until the mid-1920’s the majority of the larger companies were under American man agement and control. During the late 1920’s and the following period prior to World War II, Filipino ca pital entered this field of enterprise on a broad scale. In the year 1941, there were many successful and substantial land-transportation companies in various parts of the country operated and controlled by Fili pinos. The post-war period has seen widespread de velopment of bus and truck operations representing new Filipino capital investment, with practically no new American capital entering this field, although the Parity Amendment offers American capital supposed ly equal opportunity to that enjoyed by local investors in this form of enterprise. * The oldest and, until December, 1941, the largest transportation company in operation in the Philip pines (with approximately 400 registered units) is A. L. Ammen Transportation Company, Inc., com monly known as “ALATCO”. Founded by A. L. 392 Ammen and Max Blouse as early as 1910 and start ing with one Grabowski truck unit, the company was incorporated in 1914 with a paid-up capital of P100,000. The operations expanded along with the econo mic development of the Bicol region during the course of the years, and at the outbreak of the war the as sets of the corporation were in excess of P2,000,000. These were largely wiped out by the war. All rolling stock disappeared during the war years, along with company shops, maintenance equipment, and other facilities. Starting post-war in 1945 with a few military truck units, the company now operates 200 modern busses and is increasing the number as rapidly as new bodies can be constructed in the com pany shops. The Ammen Estate interests have owned the largest individual holding of the stock of the corpora tion. These holdings plus those of other American in terests have represented control of the company. After lengthy negotiations, the Heirs of D. Tuason, Inc.; a Filipino corporation, recently purchased the major part of these holdings, giving that company ownership of some 60% of the paid-up capital of Alatco. The transaction also included the purchase of approxi mately 80% of the capital stock of Bicol Trading, Inc., truck and automobile dealers in the Bicol region. The Tuason interests have announced that there will be no changes in the management of either com pany or in policies or procedure. The name of “Alat co” will continue to symbolize bus transportation in the Bicol Provinces and the withdrawal of American financial interests from that local field will be noted by only the few who remember the early efforts of Messrs. Ammen and Blouse and those who have watched the growth and expansion of the company over the years. This transaction may be indicative of a trend whereby Filipino capital, seeking sound investments, will gradually absorb American enter prises that have been business successes for extended periods, thus taking an increasingly active responsi bility in the various phases of the country’s economy. Mining By Chas. A. Mitke Consulting Mining Engineer July Production Benguet-Balatoc ..................... Acoje Mining Co....................... Atok-Big Wedge .................... Consolidated Mines ............... Lepanto Consolidated ........... Mindanao Mother Lode ........ Misamis Chromite ................. Surigao Consolidated ............. 2,855.7 tons cone. 656,300.00 2,800 287,956.00 Tons Valued at 47,492 tons P680,750.00 2,500 ” 113,750.00 12,732 ” 378,765.00 16,000 ” 320,000,00 6,684 186,561.00 THE Philippine mining industry at the present time’ is experiencing difficulties. While only a few of the former producers have been rehabi litated, the outlook, particularly for the gold mines, is not very promising. Their best market — China — is fading, in consequence, the price of gold has been shrinking rapidly. There may come a time in the not too far distant future when the gold mines may have to reconcile themselves to selling in a $35 market. Until recently, gold producers in the Philippines were enjoying prices which ranged between P90 and P110 per ounce. It is assumed that most of the gold went to China. A tremendous amount of gold must have found its way into China in recent years. Now, however, the Communists have taken over a large part of that country, and it is hinted that the Na tionalist Government has been dumping its gold into the Hongkong market and exchanging it for silver with which to pay its troops. As evidence of this, the price of gold has gone down to somewhere in the 80’s (pesos), while the price of silver in the New York market has gone up. It has been remarked that gold mining is the only industry whose market is confined to a single buyer, the United States Government — by far, the largest gold buyer paying a fixed price for gold. This arrangement makes the producer a victim of the squeeze between rising costs and the fixed price. Present operating costs in the Philippines are two to three times the pre-war costs, but the local price of the product is now rapidly approaching the 1941 figures — $35 an ounce. Moreover, the mines are not as well equipped to meet a situation like the present, as none of them are up to former production levels and a considerable cash outlay would be necessary be fore they could achieve this position. Something however, must be done to cope with the emergency. Short of a subsidy, which is not favored by government officials, no one thing can meet the situation, but a number of small aids and eco nomies may, in the aggregate, afford relief. There are measures that can and are being taken by the Government, such as the levy of lower taxes, elimi nation of import duties on mining machinery, as sistance offered by the Bureau of Mines, etc., but the greatest help of all would be to bring down the price of rice, which would have a marked effect on the cost of living. WHILE considerable bread, made of imported wheat flour, is now consumed in the Philippines, for the great mass of the people, rice is still the staff of life. It is estimated that 40% of this rice is still being imported from abroad, and paid for with dollars. This swells the imports, reduces dollar credits, and keeps the cost of living high. Before the war, the cost of rice was in the neighborhood of P5 to P7 a sack or cavan. Today, in the open market, it costs from P31 to P32 per sack or cavan. Think what a re lief it would be to many if the price of rice could be cut in half. Even then, it would be twice the pre-war cost! However, before the price of rice can come down, more rice must be grown at home. This can only be done by me chanized farming on a large scale. At one time there were plenty of tractors available from surplus, and there may still be a sufficient number of them left to save the situation. Some temporary arrangement should be made to permit rice planting and farming on a large scale, using mechanized methods at least until such time as the country becomes selfsupporting. Otherwise, the fate of certain European nations will be ours. In these countries, much of the funds advanced by America have gone into consumer goods rather than equip ment, improved efficiency, and lower production costs. Con sumer goods such as food, clothing, etc. do not reproduce them selves, and once they are gone the nation is no better off than before. There are many places in the Philippines where corn flourishes, particularly in Cebu, where it is preferred and used as a substitute for rice. Everyone knows the value of corn as a food both for human beings and animals. Recently, in the company of two Filipino government engineers, I rode horseback over 60 miles of beautiful hills in another island of the Visayan group. Here and there, were isolated farmhouses, about a mile apart. Each was sur rounded by an acre of corn and an acre of mountain rice. The corn was 6 feet high, and the rice newly planted. Elsewere, the hills were uncultivated and covered with cogon grass about 2 feet high, so that for mile after mile the country looked like the wheatfields of Western Canada. The engineers remarked over and over again .that they did not believe enough people realized the tremendous possibilities 393 that exist, not only on this island, but on many others, to pro duce corn and rice on a large scale through mechanized farm-* ing. One of them mentioned that there was room for half a dozen large corporations or organizations in this one island alone, each farming around 100,000 acres. What they said about this particular island, is true of many others, they reiterated, especially Mindanao. Rice and corn are annual crops and do not require years to grow. With tractors and other machines, large acreages can rapidly be cultivated and planted. In a matter of several months, the crops are ready for harvesting. Where there is plenty of food, there is contentment, and the cost of living is low. A low cost of living has its bene ficial effect, not only on mining, but on all other activities. As stated before, this could be done very quickly with big corporations, large acreages, and many tractors. One season would change the entire picture, but it must be done on a large scale to be effective. The corporation, so far, is the only instrument that has been found capable of doing this type of job in a hurry. A plentiful supply of corn and rice would do more to bring the cost of living back to pre-war levels than anything else. This would naturally reduce the large number of dollars now going out for the purchase of the immense quantities of rice necessary to make up the 40% deficit. GOVERNMENT officials and business men recog nize that in order to increase exports, and add to the wealth of the nation, mining, once the No. 2 industry, must be brought back to its pre-war status. The country needs more producing mines, but lack of venture capital, and the high cost of living, have acted as deterrents so far, preventing the opening up of many promising prospects. In 1934, venture capital invested in mining re sulted in the development of a number of meritorious exposures, which eventually became the mines of to day. This brought about a mining boom in the Phil ippines in the midst of a world-wide depression. The same thing could happen again if venture capital were available. At the present time the general public has no venture capital for mining, but if the Philippine Gov ernment, through one of its various agencies, could see its way to- allocate merely Pl,000,000 of venture capital, for the proving up of — say, twenty meri torious prospects — there is no question but that a number of them would, eventually, become the mines of tomorrozv, and offer opportunities for investors to make money. One or two good finds would serve to prime the market and result in the loosening up of private funds for use in an intensified search for, and development of, other mines, and with a lower cost of living, brought about by a reduction in the price of rice, mining would once more be on its way to resume its position as a leading, if not the leading industry of the Philippines. Lumber By Luis J. Reyes Philippine Representative. Penrod, Jurden & Clark Company THE total lumber export for the month of July amounted to 3,505,004 bd. ft., of which 2,245,371 bd. ft. were logs and 1,259,633 bd. ft., sawn lumber. Half of this amount went to the United States, 40% to Japan, and the rest to four other coun tries. Importers of Philippine mahogany (lauan and tangile) in the United States still think that our prices should come down in order to meet the stiff competition offered by African and Mexican maho ganies. The Philippine Mahogany Import Association in the United States, held its Annual Convention recent ly at Colorado Springs. Though business has been poor during the past six months, there was optim ism, and the delegates believed that Philippine maho gany will eventually recapture its lost market. A need was felt for more effective advertising, and, in this connection, ways and means have been agreed upon. The Philippine Lumber Producers Associa tion also has had under consideration for some time a possible levy on all exports for advertising. With these two organizations thus working hand in hand, Philippine woods face a brighter prospect in the United States market. Manila wholesale prices have gone down from P10 to P15 per 1000 bd. ft. as compared with the pre vious month. Prices in Manila are reported as fol lows : P125 to P130 per 1000 for white lauan, P135 for apitong, and P140 to P150 for tangile and red lauan. These prices are lowest since liberation and seems to be due to the general business recession and, to a certain extent, the rainy weather. More mills in the provinces have suspended operation. In Japan, prices of Philippine logs have likewise gone down, with some companies quoting $58.50 c.i.f., but there were some transactions on a barter basis in which the price quoted was $57 c.i.f. It has been reported that Japan is beginning to take an increa singly large volume of Borneo lauan logs, which are quoted at a lower price than the Philippine logs. It is claimed, however, that Borneo shipments are com posed of several species of “lauans” some of them sinkers,* and that the shipments are not as well pre pared for export as Philippine logs. Even before the war, Japan tried Borneo and Sumatra logs, but even tually turned to the Philippines for most of the logs to supply their mills. •Editor’s Note:—Logs which sink when thrown overboard at point of destination and which may therefore be lost unless loaded into barges, thia entailing higher transportation costs. Copra and Coconut Oil By Manuel Igual Executive Vice President, El Dorado Oil Works and Kenneth B. Day President, Philippine Refining Company, Inc. July 16 to August 15, 1949 IN the very height of the copra season and in spite of the fact that coconut oil is very much out of line with competing oils and fats and particu larly with tallow, instead of the gradually declining prices we anticipated, we have seen a steady copra market throughout the period under review, with a sharp upward surge at the close. Three circumstances have contributed to this sit uation. The first is a very definite shortage of copra and coconut oil in the United States for immediate and prompt delivery. This has been explained by European correspondents as follows: “Early this year, all the ‘pipelines’ were filled and con sumers, retailers, and wholesalers were all well stocked. It is hardly surprising that with prospects of large new crops ahead there was a general tendency to reduce stock without replacing. Subsequent events point to the fact that by earl} summer the ‘pipelines’ were empty. Persistent premiums for spot and early delivery bear this out. There was, however, still insufficient confidence in the future to encourage buy 394 ing more than day-to-day requirements and it needed a new feature to induce retailers and wholesalers to restock. Ob viously only the possibility of higher prices would induce them to buy in anticipation of improved demand from the house holder.” The second factor is that the American Govern ment has provided this reason by deciding to give price support to cottonseed oil in the face of an ex pected bumper crop. This proposal served to streng then all domestic oils and fats, which promptly ad vanced several cents a pound. The consequent de mand created by this decision does not necessarily represent increased consumption, but rather an all around refilling of the “pipelines”. Furthermore, it has been persistently felt that while coconut oil was overpriced, domestic oil and fat surpluses have been more than discounted in Amer ican markets, and, frankly, these commodities were underpriced. This situation, together with certain inflationary trend-indications from Washington and combined with the probability of an upswing in con sumer demand, contributed to stronger markets and higher prices, in which, rather unexpectedly, coconut oil held its relative position. The third factor, which bears on the first two, is the disappointing production of copra this year in the Philippines. All reports indicate that coconut trees in general are full bearing. If the nuts were made into copra, supplies should be heavy. But the Philippine producer this year is in a more independent position than ever before due to the high prices he has enjoyed for the past two years, and unless prices are attractive, his tendency is to neglect copra-making until prices suit him. This has resulted in less copra for sale in primary markets than was expected, and consequently buyers, who had been counting on heavy purchases at this time of the year, are disappointed. We entered the period under review with copra buyers desultory at $160 c.i.f. and $150 f.o.b., sellers ideas being $5 higher. For a. few days the market eased off but without substantial business, although every so often there were temporary reactions to cover immediate requirements of individual buyers. Shortly after the first of August, however, the market commenced to advance and reached a point by the 15th when buyers were perfectly willing to pay better than $170 c.i.f. with sellers holding off for up to $180. Practically all of this demand was for immediate or very prompt shipment, thus accentuating the Coast position where immediate supplies were all but ex hausted. During this period a good deal of business was transacted on the advance, and there was reason to suppose that more business would be available if prices continued favorable. Very little European business was done, for few European buyers have any U.S. dollars available nor will they have until new ECA allocations. When this time comes, there will be some European demand, but the demand may be restricted because these dollars will probably be earmarked primarily for purchase of domestic oils and fats. However, undoubtedly, some business is to be anticipated within the next month, which may well serve to keep strength in the market. During this period, coconut oil, which was going begging at 14 cents a lb. f.o.b. P.C. on July 15 gra dually advanced particularly for spot delivery until tankcar sales were registered at as high as 16 cents a lb., with offerings very light. Bulk oil from the Philippines, which had been selling as low as 13 cents for September arrival, jumped to 15 cents for Sept ember and 1414 cents for October, with the greater part of Philippine supplies already sold. Most Phil ippine crushers participated in considerable business during the period, but the bright dealers were those who withheld part of their sales, and took advantage of spot premiums at near arrival dates. It should be noted that during this period cot tonseed oil and soybean oil advanced nearly 4 cents a lb. and tallow 7 cents to the highest levels since early in the year. While new crops are right around the corner, there is a definite squeeze for the August/ early September position. AS usual, local markets followed export trends closely, copra prices ranging from P27 to P31 and perhaps higher in Manila and approximately the same in Cebu. Desiccators, who have been laying off the market for two months, once more resumed buy ing, probably largely for the American Christmas trade. Copra exports for July totaled only 44,114 tons, as contrasted with 38,013 in 1948, distributed as follows: United States Pacific Coast ............ 23,159 long tons Atlantic Coast ........... 2,551 ” ” Gulf Coast ................. 6,499 ” Canada ............................... 1,500 ” ” Europe ................................ 9,663 ” Africa ................................. 538 ” " Equador ............................. 204 ” ” Total .............. 44,114 ’’ These figures are somewhat misleading because actually 5,000 to 6,000 tons of copra was loaded in vessels in July which did not sail until the first days of August. Coconut oil exports were on the increase and totalled 9,472 tons for July, as contrasted with 2,800 tons for July, 1948, distributed as follows: United States Pacific Coast ........ Atlantic Coast ... . Europe .......................... 2,002 long tons 7,307 ” 163 ’’ Total ......... 9,472 ” Adding copra and the copra-equivalent of coco nut oil together, we get a figure of between 55,000 and 60,000 tons of copra as such. Indications point to approximately the same volume in August, parti cularly if prices maintain their present trend. American markets for copra meal and expeller cake were on the easy side, declining to about $51 to $52 c.i.f. Pacific Coast per short ton. The European markets remained steady at $34 to $35 f.o.b. Early in August, the Philippines-European Freight Conference reduced the basic rate on copra meal to Europe by S20/6, equivalent to a little over $4, which should be of help in encouraging additional sales of meal to Europe. Copra shippers have been negotiating for two months for a substantial decrease in copra freight rates to the United States. At the present writing, it appears possible that no reduction will be granted at this time, which may force copra shippers to charter their own space; in a market such as this 395 they can easily do that at substantially under Con ference rates. WE have persistently stated that anything can happen in copra and coconut oil markets, and usually it is the unexpected which comes up. Two months ago, everything pointed to lower copra and oil prices during the remainder of the year. Today the picture is changed and it may be that we have seen our low prices for the year in July, and that the markets may hold steady for the rest of 1949. Un deniably, there is a great deal of speculation going on, and so many false reports and rumors are current that there is no real certainty of anything. At the same time, signs do point to a steadier situation dur ing the coming months than had been thought possi ble. This does not preclude drops in price, which are to be expected, nor does it rule out an entire change in the overall picture at any time due to gov ernment action or to foreseeable circumstances. But it does indicate that the practically unanimous opi nion of the trade of a few months ago, has once again been upset and that, for the moment at least, copra and coconut oil prices are likely to maintain higher levels than anyone had expected. The unjustified spread between coconut oil and domestic fats and oils remains unchanged, however, and as long as this per tains, coconut oil will be used only where essential and in minimum quantities. This invites eventual adjustment, possibly later this year, when the “pipe lines” are again full, and production and consump tion are more nearly stabilized. Dessicated Coconut Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period July 15 to Aug ust 15, 1949. Generally the industry continued at re duced capacity. The Peter Paul Philippine Corpora tion was shut down due to high inventory in the United States and Blue Bar remained shut down in Luzon. The copra market firmed up during this period but generally the desiccators were able to bring coco nuts down to lower than copra-value due to less activ ity in the Luzon area. At the close of the period the desiccators experienced a little difficulty getting nuts due to the fact that while they were shut down, nut supplies had been diverted to copra and to bring nuts back to the desiccators it was necessary to campaign and even pay .a little more than the copra-equivalent to re-establish connections again. Philippine copra and nut prices have well re flected world-values, and after four months of such a trend it can be said that copra and nut prices are normal and no longer so easily affected by local con ditions as up until four months ago. Labor-management problems were at a minimum and generally labor seemed to be settled as far as management was concerned. The Franklin Baker Company labor problem is an inter-union problem at bottom and does not directly affect the management. The shipping statistics for the month of July are as follows: Shippers Pounds Franklin Baker Company ............ 4,409,340 Blue Bar Coconut Co..................... 584,130 Peter Paul Philippine Corporation 0 Red V Coconut Products, Ltd. ... 2,167,300 Sun-Ripe Coconut Products, Inc. . 883,000 Standard Coconut Corporation ... 396,500 Co-operative Coconut Products .. 252,000 Tabacalera ..................... 642,000 Coconut Products, Inc.................... 543,850 Luzon Desiccated Coconut Corp. . 227,200 Universal Trading Company ....... 0 10,105,320 pounds Sugar By S. Jamieson Alternate Secretary-Treasurer Philippine Sugar Association THIS review covers the period July 16 to Aug ust 15. Following the very severe decline re corded in our last report, markets generally steadied, closing distinctly firm. Before the end of July, it became apparent that production for the month would be materially smaller than for the previous month, and exporters withdrew their offers on the New York market or only offered very sparingly. This policy steadied consuming markets, and buyers who had watched the decline came in only to find that there was little available. Prices recovered sharply with a minimum amount of business being recorded. In the Philippines, the market developed a firm tendency as soon as the improvement in consuming markets began, and at present local dealers are hold ing off expecting higher prices. Philippine provincial quotations, August 15: Per Picul Basis Loose Davao I . . . . P55.00 --Up P2.50 per picul since July 15. Davao JI . . . . 54.00 --Up 2.50 ” ” ” ” ” Davao G . . . . 47.50--Up 3.00 ” ” ” ” ’’ Non-Davao I . . 50.00--Up 3.00 ” ’’ ” ” ” Non-Davao G .. 36.00 --Up 1.00 ” ” ” ” ” Non-Davao K .. 24.00--Unc:hanged. New York quotations, August 15: Per Lb. c.i.f. New York Davao I . . . . . 26%<f— Up 1<? per lb. since July 15. Davao Jl . . . . 25% —Up % ” ” ” ” ” Davao G . . . . 23% —Up 1% ’’ ” ” ” ” Non-Davao I . . 24% —Up % ” ” ................... Non-Davao G . . 18 —Down %(*” ” ” ’’ ” Non-Davao K . . 14% —Up ” Production for July, 1949, was only 35,625 bales — a decrease of 10,222 bales from June, 1949. Non Davao balings totaled 19,203 bales — down 5,364 bales from June. Davao balings were 16,422 bales — down 4,858 bales from June. Exports for July amounted to 29,816 bales. Production for the first 396 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 397 seven months of 1949 amounted to 317,266 bales, against exports of 295,870 bales for the same period. Production for the first seven months of 1948 amounted to 401,131 bales — 83,865 bales more than for the same period this year. Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period from August 1 to August 31, 1949. New York Market. — The market opened with sellers at 5.900 for prompt shipment but no buy ers. For the first 10 days of the month, it was quiet but steady; there were small sales of Puerto Ricos at 5.85^ for August shipment and a parcel of 3,000 tons Philippines afloat was resold at the same price. Thereafter the market firmed up and became quite active, starting off with a sale of 9,000 tons of Puerto Ricos at 5.880 for August/September shipment, fol lowed by sales of close to 100,000 tons at 5.900 for August/September/October shipment. The market became still firmer toward the end of the month, perhaps upon the trade’s realization that the avail able balances of United States quota sugar in Cuba and Puerto Rico were fast dwindling, and small sales of Cubas for second half of September shipment were made at 5.950. On August 29, the U. S. Secretary of Agriculture announced the re-allocation of an esti mated Hawaiian deficit of 200,000 short tons, of which Cuba got 126,220 tons, Puerto Rico 48,696 tons, and United States mainland cane 25,084 tons. This re-allocation does not, of course, increase the total quantity of quota sugars allotted to the United States market during the year, but will have the effect of making additional supplies of Cuban and Puerto Rican sugar immediately available to United States buyers. However, it is believed that the statistical position of supplies in relation to demand is such that this re-allocation is not likely to curb the growing strength of the market. We give below the closing quotations on the New York Sugar Exchange for the period August 1 to 24, 1949, for contracts Nos. 4, 5, and 6: Contract No. 4 Contract No. 5 Contract No. 6 September ............ November ............ 4.170 5.420 5.344 December ............. 5.41 5.38 January ............... 5.31 5.30 March .................. 3.92 5.20 5.13 May ....................... 3.92 5.21 5.14 July ...................... 3.92 5.21 5.16 September, 1950 . . 5.21 5.16 November ” .. 5.17 Local Market. — (a) Domestic. A survey of supplies available for domestic consumption as of August 1 indicated a stock of 31,000 tons, which was barely sufficient to cover requirements up to the end of September. As a result of the long dry spell earlier in the season, the start of next milling season will be delayed until well into October, and in an ef fort to assure adequate domestic supplies at reasonENGINEERING 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 aud INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS Gen, & Sales Office 174 M. de Comillas Manila Tel. 3-26-20 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 able prices until new-crop sugar is available, the Su gar Quota Office authorized the conversion of export sugar to domestic sugar, stipulating that PRATRA would be the sole buyer of the converted sugar at P16.50 per picul, of which P15.50 would go to the owner and P1.00 to Sugar Quota Office for later ap portionment to the producers of each district. It is evident that there has been a considerable increase in the consumption of domestic sugar this season, to which the soft-drinks industry has no doubt substantially contributed. On September 1 the Sugar Quota Office, under Philippine Sugar Order No. 1, allotted a domestic quota of 2.00,000 short tons for the crop-year 1949-50 and stipulated that the sugar may be withdrawn at any time during the season up to the limit of the planters’ and mills’ domestic allotments. (b) Export Sugar. The authorization referred to for the conversion of available export stocks to domestic sugar at a price higher than exporters could afford to pay, naturally had the effect of taking the remaining free stocks of 1948-49 export sugar, which were in any case very limited, out of the market. Buyers are quoting P13.25 per picul ex-mill warehouse for new crop sugar. General. — Freight Rate. The existing freight rate of $15.50 on raw sugar from the Philippines to the United States Atlantic Coast ports has been ex tended to October 31, 1949. Hawaii. The longshoremen’s strike, which start ed on May 1, has not yet been settled, and there are now approximately 400,000 tons of raw sugar waiting to be shipped. The California and Hawaiian Re finery at Crockett, California, which depends on Hawaii for its raw sugar supplies, has announced that it will close its refinery on September 3 inde finitely owing to lack of raws. The stock on hand in Hawaii represents about 6 months supply for this refinery. Tobacco By the Conde de Churruca President, Manila Tobacco Association WHILE the buying season is ending in the provinces of Pangasinan, Union, and Ilocos, it has just started in the Cagayan Valley, es pecially in the province of Cagayan, the principal buyer being the National Tobacco Corporation, with other buyers following cautiously, as prices are still too high and can only be afforded for what is abso lutely necessary to cover factory requirements or con tracts already entered into by tobacco dealers which have to be completed. Although the tobacco business and tobacco prices are both elastic, there is no getting away from the fact that the law of supply and demand cannot be rendered ineffective unless economic barriers are erected and imports are made practically impossible. Some European countries have adopted this policy and jealously guard their local markets for their own products, the practical result of this being that they lose many customers in foreign countries. The biggest buyers are the richest countries, and naturally they are also the biggest sellers, and aim to continue so. They use every conceivable system to sell, — from manufacturing the best and cheapest products, to financing their customers; and in the long run they are sure to get the business. The Philippines is in a privileged situation, and its products could be sold practically everywhere if the prices could meet world competition; but high costs of prime materials and high wages make this impossible, and thus many hundreds of millions of pesos are lost and many workers remain idle. For example, before the war 200,000,000 cigars were exported every year to the United States, this giving work to many thousands of men and women whose labor earned them over Pl,000,000. Now most of these workers are out of work or if they have found other jobs, they automatically are keeping other workers out of them. Those who are working at their own trade, even at wages 3 or 4 times higher than pre-war, are able to do only about one-fifth of the work they used to do, so, actually, they get less income than they did be fore. I will give two examples: For the “Corona” cigar, a worker used to get P18 per 1000 and he made around 1000 weekly; now he gets P50 per 1000 but he only makes around 300 (or P15), as the workers divide the work among themselves so as to help each other. The practical result is: P3 less income, despite the increase in the rate for their work. In the case of the “Londres”, a cigar maker used to earn P5 per 1000 and he produced around 2,000 weekly; now he get P15 but only produces about 500. Total wage: P7.50 instead of the P10 he made before. Another practial result is a higher cost of production as well as less money for the worker. The only “benefit” is more “leisure” or time for extra work somewhere else. The same thing will probably happen in many •other businesses; for example, gold mining. It is a pity that we have not arrived at some type of wage that would permit the workers to do a full job at a much better income, without increasing the cost of production to such an extent that manufacturers have great difficulty in selling their products . The theory that higher wages are necessary to make up for the higher cost of living, explodes, for actually, in the cigar business at least, the workers get less money now than before. If wages were still increased, there would be still more jobless workers or they would have propor tionately less work to do. It would benefit everybody concerned, especially the workers, to arrive at a level of wages that would permit an increase in production, for it is a well re cognized fact that the basis of the prosperity of any nation is increased production (which means more and better work to compensate for higher wages), and not higher wages for less work, am chamber textiles LDR Textiles By James Traynor THE textile market during August continued the more or less satisfactory trend which ruled during July. Prices generally were fair, but during the month the New York market recovered from its low point with some cottons rising upward of 10%, and rayons even more. The local market 398 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 399 has not risen proportionately, causing buyers to show little interest in making commitments at present New York levels. Arrivals from abroad are estimated to be about 25 c/o greater than for July. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selp, Carrascoso & Janda, IN the case of Sunripe Coconut Products Company, G. R. No. L-2009, the Supreme Court has decided that piece workers under the pakiao system are not independent contractors and are employees cover ed by the law governing the Court of Industrial Rela tions. The Court said: “Petitioner also insists that the ‘pavers’ and ‘shelters’ are piece-workers under the ‘pakiao’ system. In answer, suffice it to observe that Commonwealth Act 103, as amended, expressly provides that ‘a minimum wage or share shall be determined and fixed for laborers working by the hours, day or month, or by piece-work, and for tenants sharing in the crop or paid by measurement unit, x x x’ (Section 5.) The organic law of the Court of Industrial Relations, therefore, even orders that laborers may be paid by piece-work; and the fact that the ‘parers’ and ‘shelters’ are paid a fixed amount for a fixed number of nuts pared or shelled, does not certainly take them out of the purview of Commonwealth Act. 103. “It is unnecessary to discuss at length the other facts pointed out by the petitioner in support of the proposition that said ‘parers’ and ‘shelters’ are independent contractors, because a ruling on the matter would necessarily involve a factual inquiry which we are not authorized to make. Even so, we would undertake to advance the general remark that in cases of this kind, wherein laborers are usually compelled to work under conditions and terms dictated by the employer, a reasonably wide latitude of action and judgment should be given to the Court of Industrial Relations with a view to settling industrial disputes conformably to the intents and purposes of its organic law.” In another labor case (Philippine Can Company, G. R. No. L-2028) the Supreme Court affirmed a de cision of the Court of Industrial Relations authorizing the dismissal of a number of laborers no longer need ed by reason of the installation of labor saving machinery. The Court said: “It appearing that there has been fair hearing and that there is ample evidence to support the conclusions of fact of the lower court, we would have no ground for interfering with those conclusions. And these make it clear that there was real justification for reducing the number of workers in res pondent company’s factory, such a measure having been made necessary by the introduction of machinery in the manufac ture of its products, and that the company cannot be charged with discrimination in recommending the dismissal of the fifteen laborers named in the above list since their selection was made by a committee composed of both officers and em ployees who took no account of the laborers’ affiliation to the unions and only considered their proven record. “There can be no question as to the right of the manu facture to use new labor-saving devices with a view to ef fecting more economy and efficiency in its method of pro duction. As the lower court observes in its order, " ‘No se puede detener el cursa de I03 tiempos. Si se quiere sobrcvivir y prosperar, la unica alternative es adaptarse a las exigencies del prcsente mundo moderno. No se puede cerrar los ojos a la realidad. No sc puede depender de metodos antiguos. hay que recurrir a metodos mas eficients y avanzados. La produccion no solo deba ser de elcvada calidad B ALLIS-CHALMERS WORLD'S LARGEST LINE OF MAJOR INDUSTRIAL EQUIPMENT CRUSH MORE TONS AT LOWER COST! ALLIS-CHALMERS builds efficient gyratory and jaw crushers for every crushing operation. For primary or secondary reduction, gyratory crushers like the one shown at left crush large amounts of rock or ore at low cost. ALLIS-CHALMERS jaw crushers handle the heaviest crushing jobs. They have large feed openings, and are massively built throughout. CONSULT US ON MA CHINERY: With the Allis-Chalmers line, we supply many different industries with machines famous for dependability and sound design. Inquiries receive prompt attention. EXCLUSIVE DISTRIBUTORS THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Cor. Tacoma & 2nd Sts. Telephones: Branch Office at: Port Area, Manila 2-68-48, 2-67-47 & 2-67-59 Bacolod, Negros Occidental Electrical Equipment Cvment and Mining Machinery Motors and Tex rope V-Belt Drives Centrifugal 400 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 eino ilimitada y bu costa al alcance de todos. Debc seguirse el ejemplo de otros paiBes. ’ “The right to reduce personnel should, of course, not be abused. It should not be made a pretext for easing out laborers on account of their union activities. But neither should it be denied when it is shown that they are not dis charging their duties in a manner consistent with good dis cipline and the efficient operation of an industrial enterprise. We, therefore, approve of the following pronouncement of the court below: "‘La compania tiene derecho de despedir a sus cmpleados u obreros. Si bien este derecho esta sujeto a la rcgulacion del Estado, en su normal ejercicio no se inmiscuye la ley. El patrono paga el jornal de sus obreros por su trabajq, y es logico y justo qua el mismo tonga derecho a esperar de los mismos lealtad y fiel cumplimiento de sus obligaciones. No es el proposito de la ley obligar al principal a retener en su servicio a un obrero cuando no recibe de esta trabajo adecuado, deligencia (diligencia) y buen comportamiento, o cuando su continuacion en el empleo es claramente opuesta a los intercses de su patrono, porque la ley al proteger los dere chos del obrero no autoriza la oppresion ni la destruccion del principal.’ ” REPUBLIC OF THE PHILIPPINES SUPREME COURT ANGELITA V. VILLANUEVA and PABLO C. SANIDAD, Peti tioners, G. R. No. L-2035 Present: — versus — MORAN, C.J. OZAETA, PARAS, FERIA, BENGZON, PADILLA, TUASON, MONTEMAYOR, REYES, JJ. THE DIRECTOR OF POSTS, Respondent. Promulgated: AUGUST 23, 1949 ♦ Translations: Decision “One cannot stop the march of time. If one must survive and pros per, the only alternative is to adapt oneself to the exigencies of the modern world. You cannot close your eyes to reality. You cannot.depend on old methods, you have to resort to more efficient and advanced methods. The produotion should not only be of high quality but un limited and its cost within thn reach of everybody. The examples of other countries should be followed.” "The Company has the right to dismiss its employees or laborers. • While this right is subject to the laws of the State, the law however does .not interfere in its normal exercise. The employer who pays the wages of his laborers in return for their work has in logic and justice the right to expect from them loyalty and faithful observance of their duties. It is not the purpose of the law to force the employer to retain in his service a laborer who does not render! adequate and diligent service and who does not comport himself decorously, or when his continued employ ment in the servioe is clearly detrimental to the interests of his employer, because the law while it protects the rights of the laborer, will not coun tenance oppression not destruction of the principal.” OZAETA, J.: Before the war the petitioner Angelita V. Villa nueva maintained a savings deposit with the Philip pine Postal Savings Bank, which as of October 22, 1941, had a balance in her favor of P4.60. She made no further deposit in said account until the month of October, 1944. Between the 10th and the 31st of said month she made four deposits totaling P5.940. The Director of Posts refused to recognize the validity of that deposit made during the occupation in Japanese Military notes on the ground that it had been declared invalid by Executive Order No. 49, series of 1945. ATLANTIC, 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 Hoist Company Dempster Brothers, Inc. Dodge Manufacturing Company Fairbanks, Morse & Co lne. 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 Tels.: 2-83-64 • 2-84-82 EXECUTIVE OFFICES • ENGINEERING DIVISION STRUCTURAL & MACHINE SHOPS Barrio Punta, Santa Ana, Manila TcIb. : 6-75-31 • 6-75-32 *> 6-75-33 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 401 The petitioner, assisted by her husband, seeks to compel the Director of Posts to recognize the validity of said deposit, contending that Executive Order No. 49 is unconstitutional in that it deprives her of her property without due process of law. That question has been resolved by this court adversely to the petitioner in Hilado vs. De La Costa and the Philippine National Bank, G. R. No. L-150, April 30. 1949, wherein it was held: “We are of the considered opinion, and therefore hold, that the provisions of Executive Order No. 49, do not deprive the plaintiff of his property without due process of law or impair the obligation of contract entered into between him and defendant bank; because they are but the logical corollary and application to bank deposits in Japanese war notes of Executive Order No. 25, in so far as it declares that said notes are not legal tender in territories of the Philippines liberated from Japanese occupation, the validity of which is not, and cannot seriously be, questioned. “x X X X “It may safely be laid down as a rule that when a de posit is mdde with a bank or a person of notes made legal tender or currency by the military occupant of an enemy territory, and the occupation does not ripen into a conquest by the occupant because the territory is liberated and reoc cupied by its legitimate government, the deposit must be considered as with specification of currency, that is, as a deposit of money made legal tender or currency by the oc cupant, without necessity of stating it expressly unless there, is evidence to the contrary, because it is the only kind of money or legal currency in circulation after the genuine money of the territory has disappeared from circulation, as in the present case. It should not be understood to be a general deposit without specification of currency, that is a deposit of lawful money of the legitimate government, and it will have the same effect as if it were made with money that was legal tender or currency of a foreign country having no monetary treaty or agreement with the legitimate government; and therefore if such currency becomes valueless, the depositor- shall have to suffer the loss, because the currency so deposited is exactly of the same condition and validity as that kept in the pockets, or safe of the depositor.” The petition is denied, without any finding as to costs. (Sgd.) ROMAN OZAETA We concur: (Sgd.) MANUEL V. MORAN ” RICARDO PARAS ” F. R. FERIA ” CESAR BENGZON ” SABINO PADILLA ” PEDRO TUASON ” MARCELIANO R. MONTEMAYOR ” ALEX. REYES Philippine Safety Council By Frank S. Tenny Executive Director BY affixing his signature to Executive Order No. 259, the President of the Philippines creat ed a Fire Prevention Board on August 30, 1949. This marked the successful culmination of a move ment led by the Philippine Safety Council in recent weeks. Local citizens, residents, and organizations hailed the move. The order gives the Philippines a 21-member board of governmental department heads, professional fire-fighting experts, local safety experts, fire insur ance executives, and chiefs of large civic organiza tions. One-half are members of the Government, the overall Chairman being the Secretary of the Interior. At least 16 members are citizens of the Philippines. SAFEMADE BY: GENERAL FIRE-PROOFING CO. SUREST WAY TO SAVE MONEY, DOCUMENTS, RECORDS ... from BURGLARY, FIRE, DISHONE5TY! All materials and construction in GF Safes bear the Underwriters’ Laboratories, Inc. Label for Fire Endurance, Impact Resistance after extreme heat, Explosion-Proof qualities, Resistance to burglars’ tools! GF Safes are eligible for 20% discount in insurance rates! GF 1511 C: 1-hour fireresistive safe. U L Labels: Class C (1 hour) and T20 Burglary. Finished i n solid gray, in side and out. 16”W x 22”H x 16”D. GF 148: Bur glar Resistive Money Chest. UL Relocking Device. Robbery and Burive. Available in hard or soft chests. 14"W x 18”H x 19’’D. Exclusive Distributors: The Store of Quality 454 DASMARIRAS 16th & ATLANTA STS. TELS. 2-79-78 & 2-79-79 TEL. 2-94-89 $ Tune in on DZPI for the Deems Taylor Concert from C :30 to 7:00 P.M. every Tuesday and Sunday and on DZRH from 7:00 to 7:30 every Wednesday night for the PHILCO HOUR Bing Crosby Show. 402 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 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 89.7 240.4 313.2 238.2 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. Each group is led by its own Chairman, who is em powered to call meetings of his group. You'll sense something differ*' ent when your fingers touch the highly responsive keys. It’s Rhythm Touch... to make your type writing easier. Your fingers will find comforting ease in the light ning key response. You’ll note better-balanced finger action ... the free-and-easy rhythm of Underwood’s finest typewriter... the popular choice of secretaries and executives. With Rhythm Touch . . . plus other new refine ments . . you get all the time-tried famous Under wood features .. . they make typing easier. See this new Underwood Standard Typewriter...with Rhythm Touch... NOW I SMITH .BELhCOATD. TRADE AND COMMERCE BLDG..MANILA Tel. 2-69-71 The purpose of the Board, as outlined in the ori ginal recommendations sent to President Quirino by the Safety Council a few weeks ago, is “to formulate and implement plans for the prevention and fighting of fires in the Philippines”. The Executive Order defines these powers and purposes. It is hoped that the Board may be able to suggest and activate ways to lessen the destructive fires that are taking place almost daily in our towns and cities. Names of the General Chairman and the Group Chairmen are as follows: General Chairman; Hon. Sotero Baluyut, Secretary of the Interior; Chairman Group One (Government), Hon. Nicanor Roxas, Un dersecretary of the Interior; Chairman Group Two (Professional), Chief Cipriano Cruz, Manila Fire De partment; Chairman Group Three (Safety), Execu tive Director Frank S. Tenny, Philippine Safety Coun cil; Chairman Group Four (Fire Insurance), L. P. Ralph, Chairman of the Manila Fire Insurance As sociation; Chairman Group Five (Civil Organiza tions), Mr. Aurelio Periquet, President of the Cham ber of Commerce of the Philippines. The PSC Executive Director has contacted Sec retary Baluyut and expressed the belief that meetings will be called in the very near future. The full co operation of all members is expected, due to the im portance of the subject matter. The full text of Exe cutive Order No. 259 follows: EXECUTIVE ORDER No. 259 CREATING A FIRE PREVENTION BOARD WHEREAS, destructive and dangerous fires occur fre quently in some sections of the country, rendering people homeless and destitute; and WHEREAS, the planning and study of efficient and mo dern methods of preventing and fighting fires are necessarv to insure the safety of the people and the protection of their properties; NOW, THEREFORE, I ELPIDIO QUIRINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby create a Fire Prevention Board composed of the following: PHOTOGRAPHIC CHRISTMAS CARDS Place Your Order Now Avoid Rush MARY OFTEDAHL ALMAR STUDIO 321 A. Mabini Tel. 5-33-26 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL_____________________ 403 The Secretary of the Interior General Chairman GROUP ONE (GOVERNMENT) The Undersecretary of the Interior .............................. A representative of the Department of Public Works Group Chairman A representative of a local fire-insurance firm to be designated by the Group Chairman ...................... The Manager, American International Underwriters (Phil.) .................................................................................. and Communications to be designated by the Sec retary thereof ...................................................................... representative of the Department of Education to be designated by the Secretary thereof .................. representative of the Department of Commerce and Industry to be designated by the Secretary thereof .. Member GROUP TWO (PROFESSIONAL) The Chief of the Manila Fire Department .................. Group Chairman A Fire-fighting expert from the Manila Fire Depart ment to be designated by the Chief thereof .......... Member A provincial fire-fighting expert to be designated by the Group Chairman ........................................................ A fire marshal, civilian or military, to be designated by the Group Chairman ........................................................ GROUP THREE (SAFETY) The Executive Director, Philippine Safety Council .. The Chairman, Advisory Safety Council to the Secre tary of Labor .................................................................. The Chief of Safety Servcies, Philippine National Red Cross .......................................................................... Group Chairman Member A representative of fire-fighting equipment distributors to be designated by the Group Chairman .............. GROUP FOUR (FIRE INSURANCE) The Chairman, Manila Fire Insurance Association .. Group Chairman The Manager, American Foreign Insurance Association Member GROUP FIVE (CIVIC) The President, Philippine Chamber of Commerce ... Group Chairman The President, Chinese Chamber of Commerce ........ Member The President, American Chamber of Commerce of the Philippines ................................................................ The President, National Federation of Women’s Clubs of the Philippines .......................................................... The Board which shall meet at the call of the General Chairman shall have the following duties: (a) To investigate the origin and causes of fires; (b) To study ways and means of preventing fires; (c) To study suitable fire-fighting plans and facilities; (d) To arouse the inhabitants of the Philippines to the necessity of combating and preventing fires by ap pealing to their sense of individual responsibility through the newspapers, radio, posters or other means of dissemination; (e) To cooperate with the authorities concerned in the adoption of such measures as may be necessary for the effective supervision and regulation of the man ufacture, distribution, storage, and possession of peA great new folding camera Kodak Tourist Kodak’s newest, finest folding camera for 2‘/i x 31/, snapshots. The Lumenized f/4.5 lens ’’gets the picture” sharp and clear. A precise ’’flash” shutter clicks off speeds to 1/200 seconds. An ingenious built-in sliding scale quickly computes exposures. A newtype shutter release makes for greater conMake every exposure count...use Kodak Film TWO CONVENIENT LOCATIONS TO SERVE YOU THE KODAK STORE 138 ESCOLTA, MANILA KODAK PHILIPPINES, LTD. 104 - 13th STREET PORT AREA, MANILA BURROUGHS 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 (also for MINDANAO-SULU I : Burroughs Sale Office: BAGUIO: Baguio Generul Trading: NAGA. LEGAS PI, LUCENA: Gabriel & Co.: CEBU: Valerinno Alonzo: BACOLOD: Warner Baines & Co.. Ltd.; ILOILO: Warner Baines & Co., Ltd. 404 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 troleum, gas, acetylene, dynamite, gunpowder, explo sives, blasting supplies, or ingredients thereof, ana other highly combustible matter; (f) To cause the inspection of factory buildings and other structures which are considered fire hazards and re commend to the proper authorities their removal or remodelling so as to provide sufficient protection against fire; (g) To encourage the observance in every municipality and chartered city of Fire Prevention Week Pro claimed in Proclamation No. 248 dated January 20, 1938; and (h) To submit from time to time to the President of the Philippines its recommendations on fire-fighting and prevention. The General Chairman may also call the group chairmen to a meeting from time to time. The groups shall meet at the call of their respective chairmen. All officers and employees of the different departments, bureaus, offices, agencies, and instrumentalities of the Na tional Government and those of the provinces, cities, muni cipalities, and other political subdivisions are hereby enjoined to cooperate with the Board in the performance of its func tions and, with the approval of the corresponding Head of Department, shall, when necessary, render such service as the Board may assign to them. Done in the City of Manila, this 30th day of August in the year of Our Lord, 1949, and of the Independence of the Philippines, the fourth. (SGD.) ELPIDIO QUIRINO President of the Philippines By the President: (SGD.) TEODORO EVANGELISTA Executive Secretary WELDED STEEL JAMESTOWN. N.Y. FILING All Ball Bearing CABINETS prepared by those who recog nize the overall worth of al qua lity product. Any size to fit your needs. INQUIRIES AT F. H. STEVENS & CO., INC. 4th FLOOR, EL HOGAR FILIPINO BLDG. Manila—Tel. 2-86-13 United States Government Agencies in the Philippines The U. S- Maritime Commission THE U. S. MARITIME COMMISSION, the Amer ican Federal Agency entrusted under the Phil ippine Rehabilitation Act of 1946 with restoring and improving Philippine inter-island commerce, has been quietly engaged for three years in rehabilitating the Philippine maritime industry and looking after the interests of Filipino seamen who served in Amer ican ships. To carry out its portion of the Philippine Reha bilitation Program, the Agency started operations with a large staff in April, 1945. Today, with most of its work done, the staff consists only of two Amer icans: Capt. F. H. Byrne, Superintendent of Engin eers, USMC, and Mr. R. R. Spence, Maritime Attache of the American Embassy. Perhaps the most important work of the Com mission is the chartering on a “bareboat” basis of U. S. Maritime Commission-owned vessels to local steam ship companies. The company that charters a boat on “bareboat” basis acquires the boat alone without supplies, furnishings, or crew; the company itself has to supply these. At present there are nine ships chartered; two to the Everet Oriental Lines, three to the Philippine Steam Navigation Company, three to the Compania Maritima, and one to the Manila Steamship Company. These chartered ships, together September, 1949 AMERICAN. CHAMBER OF COMMERCE JOURNAL 405 with those turned over to the Philippine Republic by the U. S. Army, have helped Philippine shipping estab lish normal inter-island traffic once more. At the time these vessels for charter were put to commercial use, many of the companies that charter ed them were pressimistic about the enormous over head expenses involved both in servicing and in operating the vessels. However, means were found to cut down on costs and today the country’s seaways are traversed by ships that once flew the American colors but now display the flag of the Republic. Shipping operators, whose first reactions to the U. S. Maritime Commission’s aid were dubious, ad mit today that if this Federal Agency had not cut through maddening red tape in 1945 to secure ships for transporting badly needed consumer goods to the Philippines, the situation would have become critical. The first shipments started as a trickle in August of 1945, but later shipments flowed so copiously they chocked harbor traffic. Another important portion of the U. S. Maritime Commission’s assignment is the training Filipinos as future deck and engine officers. Paragraph B of Section 306 of the Philippine Rehabilitation Act of 1946 authorizes the U. S. Maritime Commission to train Filipinos to be designated by the President of the Philippines at the U. S. Merchant Marine Aca^ demy at Kings Point, Long Island, New York. To date, 70 cadets have been sent. Fifty were sent in 1947 and are expected to graduate next year. Twenty were sent last February and will graduate in 1953. These students have been establishing records that reflect credit on the Philippines. An important part of their training is the one-year of sea duty spent on American ocean-going merchant vessels. Each cadet serves at sea in the second year of his four-year course. The graduates will qualify either as officers' in the Philippine merchant fleet or in the Philippine naval reserve. The Maritime Commission, in looking after the interests of Filipino seamen who served in the Amer ican merchant fleet, has been paying the beneficiaries to those Filipinos who were killed during the war while serving on American ships. To date, all claims, with the exception of two whose beneficiaries can not be found, have been paid. Total value of all claims is P600.000. The U.S. Civil Aeronautics Administration WHEN AN AIRLINER or an international flight stops at Manila in 1950, it will land on the Manila International Airport’s modern run way under the guidance of expert airways communi cators and airport traffic controllers — all Filipinos. In fact, by that time, all the service facilities neces sary for the maintenance of interisland and internation al air navigation will be in the hands of Filipinos who know their business. This is the situation the U.S. Civil Aeronautics Administration will leave behind in 1950'after completing its assignment as provided in the Philippine Rehabilitation Act of 1946. Section 307 of this Act authorizes the U.S. Civil Aeronautics Administration “to acquire, establish, operate, and maintain a system of air-navigation fa cilities and associated airways communications serv ices in the Philippines for interisland airways opera tion and to connect Philippine airways with interna tional and interoceanic routes.” The Federal Agency SILVER AND JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO.. General Agents 17 Battery Place New York MANILA VANCOUVER INC. JAVA PACIFIC LINE N. V. S. M. "Nederland" N. V. Rotterdamache Lloyd A msterdam—Rotterdam JAVA ILOILO To and From SEATTLE PACIFIC LrNE, INC. General Agents 25 Broadway New York CEBU PORTLAND LOS ANGELES and SAN FRANCISCO and To and From BOMBAY and CALCUTTA ★ PRINCE LINE, LTD. FROM U. S. ATLANTIC COAST PORTS TO MANILA FROM PHILIPPINES TO HALIFAX and U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 LOWER YOUR LIFTING COSTS WITH Cyale^) I SPUR-GEARED HOISTS (o) If your lifting methods are costing you "muscle money” — those needless costs that go with time stealing, efTort consuming hoisting operations, inves tigate the Yale Spur Geared Hoist. This star performer of all hand hoists is a modern lifting tool that saves von money. Ask for complete information. THE EDWARD J. NELL COMPANY 1450 Arlegui Street Tel. 3-21-21 406 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 Work on the Rockwell Station progressing as ra pidly as arrival of equipment allows. The completion of this new power station will make an additional 50,000 kilowatts available to supply the increased demand for electricity in Manila and its environs. MANILA ELECTRIC COMPANY 134 San Marcelino, Manila ENTERPRISE HEAVY DUTY DIESEL ENGINES FOR ELECTRIC DRIVE THREE ENTERPRISE GENERATING UNITS OF 300 KW EACH HAVE BEEN FURNISHED THE JAI-ALAI CORPORATION FOR ITS POWER PLANT. Prompt Delivery Exclusive Distributors MANILA MACHINERY & SUPPLY CO., INC. 675 Dasmarinas Tel. 2-72-98 was also authorized to train Filipinos in the handling of facilities and the discharge of various functions of the service. Prior to the enactment of the Act, a preliminary survey of the possibilities for establishing a modern network of adequately equipped airports in the Phil ippines was conducted in December, 1945. A tenta tive estimate of a proposed program made by the Survey Mission later became the basis for the ap proval under Public Law 521, 79th Congress, of funds amounting to P16,000,000 to finance this particular rehabilitation project. After the Act went into effect, the Federal Agency established a regional office in Manila and assigned 60 American technicians to work in the Pro gram. In October, 1947, the U.S. Army airways traffic control center and airport control tower at Nichols Field and the Pan American Airways aero nautical communications station at Makati were ac quired by the regional office of the U.S. Civil Aero nautics Administration. Besides these facilities, the regional office decided it would operate an interim station at Laoag and set about planning the construc tion of other major facilities which include a 7,500 feet runway at the Manila International Airport cap able of handling large aircraft weighing up to 200,000 pounds, high-powered homers or radio beacons at Manila and Zamboanga, airways communication sta tions at Manila and Cebu, and a control tower at Ma nila. The modern runway planned for the Manila In ternational Airport is in accordance with the latest standards for airports and terminals of the Inter national Civil Aviation Organization. Ground sur veys and engineering plans were prepared by Amer ican and Filipino engineers. A prominent feature of the runway will be the installation of high intensity lights for night operations. The lights also will be extended to all runways and taxiways. Construction of this project started October 13, 1948, with the awarding of the P5,240,000-contract to two contrac tors. The high-powered homer facilities at Manila and Zamboanga are at present under construction and are expected to cost around Pl,040,000. These facil ities are in addition to transmitting, receiving, and control stations being constructed in Manila at an estimated cost of P2,300,000. The Overseas-Foreign Aeronautical communica tions at Manila is in communication with Guam, Tok yo, Shanghai, Hongkong, Bangkok, Saigon, Australia, Honolulu, and Wake Island. At the inception of the program, the airways fa cilities were operated under the supervision of Amer ican airways communications experts and airport traffic controllers. A systematic training program however, enabled the Americans to relinquish many of these technical functions to trained Filipinos as time went on. For instance, 9 Americans and 8 Filipinos worked in the beginning at the Air Route Traffic Control Center. Today, there are only 3 Americans, and 13 Filipinos. The Americans will return to the United States by December this year. September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 407 In accordance with the authorization in the Philip pine Rehabilitation Act, the American agency sent 50 trainees to the States in 1947 and another group of 50 in 1948, to train for one year in the various technical phases of civil aeronautics service. Of these two groups, 30 specialized in airways communi cations, 30 in traffic control, and 40 in maintenance of airways facilities. An additional group of 46 trainees will be sent early this month. The Philip pine CAA officials believe that the next class of trainees will consist of key personnel now operating and maintaining the communications and air traffic control facilities. They may be sent to the United States in small groups for familiarization training of at least three months. Many of the returning trainees have replaced American technicians, 20 of whom have already re turned to their old positions in the United States. Meanwhile, the Philippine Civil Aeronautics Admin istration, patterned after its American prototype, is gradually taking over many of the functions former ly handled by the Americans. In July this year, it will take over operation and maintenance of all fa cilities. Activities of the U.S. Civil Aeronautics Ad ministration will be confined the rest of the year to an advisory capacity in maintenance and operation-, and the construction of the remaining projects. Official of the Philippine Civil Aeronautics Ad ministration believe that if the Philippine Govern ment cooperates with USCAA in setting aside the yearly appropriations for the maintenance of the fa cilities and organization established, the program will be successful. With the completion of these facilities, the Philippines*will have a modern system of communications and air navigational aids like those available to any country in the world today including the United States. The Manila Overseas-Foreign Aeronautical communi cations station will be equal to any similar type sta tion operated elsewhere and the runway at the Manila International Airport will be one of the most safe and largest runways in this part of the world. The U.S. Civil Aeronautics Administration ex pects to leave well established system of air naviga tional facilities when it ceases operations at the close of the Philippine Rehabilitation Program. United States Information Service. OFFICE OF THE PRESIDENT (Contimied from page 387) Aug. 26 — The Supreme Court promulgates a decision covering 5 cases involving the powers of the President under the Emergency Powers Act of 1941, voting 5 to 4 against the continued existence of these powers, which, however, is no judgment as the required majority vote is 6. On the validity of the executive orders putting into effect the General Ap propriations Act of last year and releasing funds for the coming November general elections, the vote was 5 to 2 against their validity; also inconclusive. However, on two other executive orders, one by the late President Roxas on rent control and one by President Quirino on export control, the vote was 9 to 10 against their validity. The majority opinion is based on the view that the emergency powers were granted to the President only until the legislative body could meet again aftei- the war. The President receives word from Ambassador J. M. Elizalde that the United States has approved the bill providing $12,685,000 for the Philippine veterans hospital and medical program. Distilled, Blended and Bottled in Scotland BLACKiWHITE SCOTCH WHISKY JAMES BUCHANAN A CO. LTD., GLASGOW, SCOTLAND Sole Distributors in the Philippines : KUENZLE & STREIFF, INC. 343-347 T. Pinpin St., Manila, Tel. 2-60-74 (Between Dasmarinas & Gandara Sts. 408 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 NOTICE TO OUR CUSTOMERS Due to greatly improved manufacturing me thods, ive are now offering our “ELEPHANT Brand” ASBESTOS CEMENT SHEETS Plain — 4‘ x 8' x 3/16" Plain — 4' x 8' x 1/4" Corrugated 8' x 40 - 1/4" x 1/4" AT REDUCED PRICES Fur further information please call THEO. H. DAVIES & CO., FAR EAST. LTD. 6th Floor, Ayala Bldg. Manila Tel. 4-79-41 to 4-79-45 Distributors for: HUME PIPE & ASBESTOS COMPANY Mandauyong, Rizal Provincial Agents: Davao : Ker & Co., Ltd. Iloilo : Ker & Co., Ltd. Legaspi : Smith, Bell & Co., Ltd. Cebu : F E. Zuellig. Inc. Bacolcd : Earnshaws Docks and Honolulu Iron Work Aug. 27 — Secretary of Finance Pedrosa, in a press in terview in Baguio, stresses the need of extending the import control program “because we are just beginning to feel its salutary effects”. To counteract the drain on foreign ex change reserves because of the excess of imports over exports, he urges three remedies: providing reserves for the purchase of imported goods necessary for rehabilitation, encouraging expansion of Philippine industries, and coordinating the poli cies of the Import Control Board with those of the Monetary Board of the Central Bank. Aug. 30 — The President signs Executive Order No.259 creating a Fire Prevention Board. Aug. 31 — The President signs Executive Order No. 261 waiving the additional progressive taxes due from certain sugar mills from the 1948-49 crop, “either because they are now operating at a loss or are still heavily indebted and need assistance for rehabilitation”. The Centrals listed are: Central Asturias, Central del Norte, Central Santos-Lopez, Luzon Su gar Company, Central Paniqui, Central Milling Co., BogoMedellin Milling Co., Central de Tarlac, Central Don Pedro, Hind Sugar, Co., Ormoc Sugar Co., and Central Pasudeco. Budget Commissioner Joven in his capacity as Chairman of the special Cabinet committee to evaluate existing surplus army property, announces that sealed bid for the purchase of all the remaining properties of this kind in possession of the Government will be received until September 15, 1949; the properties have been divided into 8 lots in accordance with the situation of the bases, and offers may be made for a single, several, or all lots. Weekly Changes in Retail Prices Bureau of Commerce, Market Division MINOR increases in prices of several native food com modities slightly pushed up the Bureau of Commerce Price Index to the 222.23 mark, up 0.59 point com pared with the level prevailing a week before. As a consequence, the goods-exchange value of the Philippine peso which only last week reached a record high, wa$ automa tically reduced to 44.99 centavos compared with the pre-war (1941) peso. Mainly responsible for the upswing of the index were marked increases in prices of eggs owing to lack of arrivals and seasonal decline in domestic production. Spearheading the upward movement were hen’s eggs which recorded a cons picuous gain of 30 centavos at Pl.70 per dozen, followed by increase of 10 centavos made by leghorn eggs at P2.50 per dozen. In sympathy with the rise in prices of hen’s eggs, duck’s eggs advanced by 10 centavos at Pl.70 per dozen for either fresh or salted Except for a 25-centavo increment registered by lapu-lapu at P3.75 per kilo, prices of other fish item recorded decre ments. Prominent among the downward movers in this group were apahap, dalag and shrimps. Fresh vegetable items were generally steady. Only string beans and chayote registered changes; the former recording a drop of 2 centavos at P0.45 per kilo and the latter easing off by 3 centavos at P0.18 per kilo. MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 409 LIARKETS DIVISION The rice market was virtually quiet and featureless. Prices remained unchanged at Pl.48 per ganta for first class wag-wag and Pl.43 for second class; Pl.35 for first class macan and Pl.30 for second class. A peculiar situation prevailed in the sugar market. While increases have been continually registered in wholesale prices, retail prices have remained steady at ceiling levels. How ever, there has been an apparent tightening of supplies of the commodity, particularly the refined variety, in some places. The continued relaxation in prices of textiles and cons truction materials has been providing a most encouraging as-’ pect to the overall price developments for the past several weeks. Widespread mark-downs in quality fabrics dominated the recession in prices of textile goods. Taffeta, Romans Crepe, Baby Sharkskin, Sand Crepe, La Conga (Celanese) and Goodall Palmbeach suffered 5 to 10 centavo outs per yard. Slashes in a good number of important Duilding items highlighted the general recession in this group. Galvanized Iron, No. 26, 3’ x 8’, plain, led off the deflationary movement with a drop of 15 centavos at P6.65 per sheet. Plaster Board, 1/4” x 4’ x 8’, receded to P3.90, off 10 centavos while size 3/8” x 4’ x 8’ eased off by 5 centavos at P5.85 per sheet. Recording 10-centavo decreases were Masonite (tempered), size 1/8” x 4’ x 8’, at P7.65 per sheet, Asbestos Board, size 3/16” x 4’ x 8’, at P6.65 per sheet, and Hardboard, size 1/8’ x 4’ x 8’, at P5.65 per sheet. Gravel and sand recorded 5-centavo declines at P6.00 and P5.00 per cubic meter, respectively. FOR RE-WINDING OF GENERATORS—MOTORS CALL E. J. MORA ELECTRIC CO., INC. 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 This film will take your pictures •• .TONIGHT! The 'amazing speed of Ansco Superpan Press film makes night photography easier, surer, more enjoyable. It will enable you to take indoor pictures that you never believed possible . . . and with our expert developing and printing service, it’s easy to get crisp, clear, beau tiful prints. Better stop in today. BOTICA BOIE, Inc. Photo Department On the Escolta, Manila CEBU • ILfJlLO • LEGASPI • DAVAO 410 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 the sign that means . . • BETTER SERVICE SERVICE When it’s automotive service you need, look for the familiar “Nash Service” circle. It’s the symbol of superior service for all makes of cars. More and more motorists are taking advantage of Nash Select Service because it’s complete, reliable and fairly priced. Your friendly local Nash dealership is staff ed by skilled mechanics who know all makes of cars from bumper to bumper. We use the newest, scientific tools and equipment to give your car that like-new appearance and performance. For any job—large or small—you’ll find Nash Select Service the best in town. THE BACHRACH MOTOR CO., INC. Port Area Tel. 2-93-78 Manila 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 1 A" 1 Items 1 Food (69.15) | House | Rent | (8.43) | Cloth ing (0.62) Fuel, Light and Water (13.941 1 Miscel-I laneoual | (17.86) | 1 Purchas ing Power January . 603.4 759.2 236.4 984.0 363.8 434.8 .1657 February 547.2 656.3 236.4 940.3 369.5 460.5 .1827 March . . 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April . . 556.2 684.1 236.4 910.3 345.5 435.9 .1798 May . . 545.1 675.6 236.4 762.5> 342.3 409.6 .1835 June . . 538.7 666.4 236.4 737.9 343.3 404.2 .1856 July . . . 552.7 704.3 236.4 598.9 341.3 364.6 .1809 August . . 477.9 590.0 236.4 384.7 320.9 346.3 .2092 September 477.9 591.3 236.4 378.7 314.5 347.2 .2092 October . 487.4 587.2 236.4 382.7 405.8 342.7 .2052 November 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December 461.9 570.8 236.4 371.9 344.7 302.1 .2165 19472 (100.00) (63.43) (11.96) (2.04) (7.73) (14.48) January . 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March . . 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April . . 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May . . 381.0 404.4 453.9 250.9 325.4 269.4 .2625 June • . 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July . . . 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October . 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December 371.9 395.8 453.9 219.1 298.2 262.9 .2689 1948 January . 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March . . 349.4 361.0 453.9 214.6 308.1 255.9 .2862 April . . 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May . . 349.8 360.2 453.9 214.2 289.7 271.6 .2859 June . . 354.3 370.4 453.9 205.2 283.2 262.9 .2823 July . . . 356.4 374.2 453.9 201.3 281.6 262.4 .2806 August 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September 370.6 397.2 453.9 199.2 279.6 260.6 .2698 October . 374.9 404.0 453.9 204.8 283.2 257.9 .2668 November 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December 365.9 389.9 453.9 202.0 282.4 258.9 .2732 1949 January . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February 343.8 355.5 453.9 203.0 277.5 258.9 .2909 March . . 346.3 358.2 453.9 202.0 276.3 258.5 .2896 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 .2844 August . 337.5 351.2 453.9 196.3 266.6 241.2 .2963 • Average number of persoins 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. CHRYSLER CORPORATION AIRTEMP packaged Air Conditioning and Refrigeration Exclusive Distributors: W. A. CHITTICK & CO., INC. Ill, 13th Street, Port Area, Manila September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 411 We do all these: * CUSTOMS BROKERAGE * WAREHOUSING * TRUCKING * PACKING AND CRATING * FREIGHT FORWARDING * SHIP HUSBANDING * CARGO SUPERINTEN DENCE * ARMORED CAR SERVICE * AIR CARGO HANDLING ...and well! PHONE NO. The= "LET YOUR HAIR DOWN” =------- ----■ Column WHAT I admired most about your exposure of the 'Confi dential Agreement,’ truly a historical scoop from a journalistic point of view, was the restraint with which you presented it...” “Seems to me you lost an opportu nity to show up those fellows who dur ing the Japanese regime swallowed whales without as much as a peep out of them and who now strain at a gnat and scream their ‘injury’ to high heaven. Of course, I refer to the Bell Act and ‘Parity,’ as against that euphoniously entitled ‘Confidentia1 Agreement’ with the Japs which just meant that the Filipino ‘leaders’ of that time ‘agreed’ that the Japs should have the whole country.” We feel that the first of the two writers from whose letters we have quoted in the foregoing, understood us rightly. The art icle was written and presented with “restraint” and for the re cord, rather than for argument, and any comparison was delibe rately avoided. To us it seemed deeply offen sive even to imply that there is any basis of comparison between that “Confidential Agreement,” — voracious and utterly cynical, and secret, covert, never avowed, and the long and openly discuss ed terms of the Bell Act, frankly advocated and’ opposed, popularly accepted in a national plebiscite; between the special position which the Japanese sought secretly to “legalize” for themselves as mas ters of the country and every thing in it, and the privilege ex tended to Americans to continue to participate, as before independ ence, on an equal basis in the dev elopment of the country’s natural resources and public utilities, 2-79-35 DOWNTOWN OFFICE AT: RCA, Ground Floor INSULAR LIFE BLDG. E. E. ELSER, INC. GENERAL AGENTS for ATLAS ASSURANCE CO. LTD.—THE EMPLOYERS’ LIABILITY ASSURANCE CORP. LTD. CONTINENTAL INSURANCE CO. OF NEW YORK—ORIENT INSURANCE CO. THE INSURANCE CO. OF NORTH AMERICA 404 Ayala Bldg., Manila Phone 2-77-58 Cable Address: “ELSINC” which the American Congress be lieved would be necessary for the encouragement of further Amer ican capital assistance, so badly needed, and which the American Congress furthermore knew would be of far greater importance and benefit to the Philippines itself than it could possibly be to Amer ica. Too much is made, in some hostile quarters, of this Parity. It extends no whit further than has been stated. There is no parity in the economic and busi ness position in general, for in stance, as is shown by the Phil ippine Flag Law and other leg islation. There is no parity in civic or political rights. Amer icans have no right to vote or to hold office or to take any part whatever in politics. Americans have to register and be finger printed like every other alien, and they must report and fill out forms and answer questions and pay various fees just like any man from China or India or any where else. Regardless of the fact that they helped to build and establish the Philippine Republic, in fact, established by the wholly American act of a withdrawal of sovereignty, the Philippine Re public being truly a DaughterRepublic of the United States of America, — regardless of that, a bitter thing to many Americans, they are now officially foreigners and aliens, just as much as the Japanese are, except for that lit tle parity clause which gives them a few privileges, no more, in fact, less than they had before, in such activities as mining and 412 AMERICAN CHAMBER OF COMMERCE JOURNAL September; 1949 NEW TOUCH! NEW FEATURES! Finger-Flow keys! New removable cylinder! “Clean Change” Ribbon! Magic* Margin! TRY ITS MAGIC IN YOUR OWN OFFICII CAUSEE YOUR LOCAL DEALER: Aurora Bazaar, Tacloban, Leyte Chas. M. Bishop Co., Manila H. E. Heacock Co., Manila Federal Office Equipment, Manila Philippine Education Co., Manila OR CALL US DIRECT: Philippine Representative Marsman & Co , Inc. Sta. Lucia at Anda Intramuros Manila Tel. 2-79-31 Branches: Cebu * Iloilo * Davao lumbering and running transport ation companies and electric light plants. Is that so out-of-the way? Is that for a moment to be com pared with the Japanese dicta tions and ferocious impositions? WHEN the following letter and the accompanying comment had been pre pared, a Chamber authority ex pressed the opinion that the sub ject was worthy of the more serious treatment it would re ceive in the editorial columns of this Journal than anything gene rally receives in these more ribald columns of the "Hair-Down” sec tion. So the editor wrote the editorial which readers may turn to, — if they are interested, on page 370. .However, on compar ing the two compositions, — on the sarnie subject and practically the same in content, but in dif ferent styles, the one (supposed ly) sarcastic, ironic, cutting, and the other (supposedly) sober, dig nified, earnest, some of us here thought that it might be interest ing to print both, each in its proper place, allowing the reader to judge for himself which is the more effective. As for us, it seems just as likely that, for the reader, this experiment may turn out to be a frightful bore. Read ing the editor once, — well, we suppose it has been done; but reading him (or virtually him) tivice, in any “style,” ye gods’. And, we ask, in all this atten tion being directed to the “style,” or rather, they mean the manner, isn’t the message likely to be lost? And wouldn’t that be just too bad? “You’re always sneering,” said the editor, heavily. “We sneer when there is some thing to sneer at,” said we. “Remember we are talking about human rights. Is nothing sacred to you?” “Oh, is that so? Didn’t you shift the talk to ‘style,’ so called?” “Did I shift the talk to style?” “Come on, come on! Didn’t you? Who (whom) do you think you’re kidding?” “Well,” said the editor plain tively, “is it so wrong for anyone to take a little pride in his work?” “Tschh!” said we. 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 (DITLEV-S1M0NSEN LINES) (TRANSATLANTIC STEAMSHIP CO., LTD.) Swe den GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE & YOUNG New York V. MUELLER Kobenharn, Denmark Head Office: STH FL., INSULAR LIFE BLDQ. MANILA, PHILIPPINES TEL. 2-87-29 2-96-17 SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA—KOBE NAGOYA—OSAKA Cable Address: "SUGARCRAFT” all offices THE JOURNAL GOES STRAIGHT TO THE DESK OF LEADING BUSINESS EXECUTIVES 414 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1949 Automatic Calculators To all who need accurate figures in a hurry... PHONE OR WRITE US FOR DEMONSTRATION ON YOUR OWN WORK SMifHJELL^CdjfD. TRADE AND COMMERCE BLDG..MANILA •MOCK CIBV • iu>lio ■ UCOU» • LIOMM ■ MWO Tel. 2-69-71 claration and those who voted for it thought should be or ought to be. “If you will read the last of the ‘whereases’, you will see that the ‘Member States’ only ‘pledged’ themselves to ‘achieve.. .the pro motion of universal respect for and observance of’ these so-called rights. “According to the paragraph which follows this, the Declaration itself states that these so-called rights are proclaimed only as a ‘Common standard of achieve ment’, something to ‘keep in mind’, something to ‘strive... to secure the universal and effective re cognition’ of, — sometime. “So, you see, the Philippines is not committed to anything much. We’ll just keep these things in mind. Oh, we’ll strive all right. But give us time. We want to do a little discriminating first. Our Government may have joined the other nations in authoring and proclaiming' the Declaration, but that was mostly for show. You know how it is.” And so some of our judges and law-makers seem to think they can uphold the dignity and inter national good name of the Re public. AMERICAN PIONEER LINE on orders originating in Eastern United States UNSURPASSED SHIPPING SERVICE TO AND FROM ATLANTIC COAST PORTS “via PIONEER LINE” Agent: UNITED STATES LINE COMPANY Port Area, Manila Tel. 2-66-02, 2-70-47, 2-76-49 consider offset printing FOR MORE SPEED MORE VOLUME MORE VERSATILITY B.F. Goodrich Tires GIVE LONG MILEAGE ® Inside and out, B. F. Goodrich tires are built to give long mileage. Note the broad, flat tread that grips the ground and spreads the weight of your car over a wider road surface. A tough extra layer under the tread protects against road shocks. For longer, safer mileage, buy B.F.Goodrich tires. 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El Hogar Filipino Bldg. — Juan Luna St. — Tel. 2-71-56 General Foreign Agents NEW YORK CENTRAL RAILROAD G-E lamp retaarch it eomtantly at *ot4 to gko you mart light for left money, to male G-E lamp* ttay brighter longerl Bo wro yo« lamp it G-E... for utmoet Bght vako aad tesnomy. You can put your confidence in GENERAL® ELECTRIC (Fx>^rntc. ToL 2-M-JI