The American Chamber of Commerce Journal Vol. XXVI, No.4 (April 1950)

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XXVI, No.4 (April 1950)
Issue Date: Vol. XXVI, No.4 (April 1950)
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino Building — Telephone No, 2 95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines Paul H. Wood, President; R. J. Newton, Vice-President; C. R. Leaber, Treasurer; J. H. Carpenter, C. H. Hirst, Paul T. Millikin, N. Most, J. A. Parrish, and E. A. Perkins. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary Vol. XXVI April, 1950 No. 4 Contents .c-ditorials— ‘‘Closing the Dollar-Gap at a Low Level of Productivity”. $ •$ Wanted?..................................................................................... The Economic Advisory Commission............. The British Election — Socialism ... The Whence of Russia’s Strength . . International Harvester Company of Philippines The United States Export - Import Imbalance. The Business View— Office of the President of the Philippines Banking and Finance............... Stock Market...................... Credit................................. Real Estate............................... Electric Power Production.................... Ocean Shipping — Exports. . . Mines Lumber Copra and Coconut Oil Desiccated Coconut Manila Hemp Sugar. Tobacco Imports Automobiles and Trucks Food products Textiles Legislation, Executive Orders, Court Decisions Philippine Safety Council Cost of Living Index, 1946-1950 (Table). The “Let Your Hair Down” Column .... 135 136 136 136 ........................................................................................... 138 Paul H. Wood....................... 140 T Charles G. Ross 144 Official Source............................................. 146 R. E. Russell 147 R. Ewing. . . 147 W. J. Nichols............................... 148 C. M. Hoskins....................................... 148 J. F. Cotton...............................■............. 149 F. M. Gispert............................................ 149 C. A. Mitke............................................... 149 L. J. Reyes.........................,...................... 150 M. Ic.ual and K. B. Day. . ............... 150 H. R. Hick........................ 151 F. Guettinger.......................................... 152 G. G. Gordon............................................ 153 L. A. Pujalte............................................ 154 L. S. Kraemer........................................... 154 K. E. Gay.................................................... 156 C. G. Herdman.......................................... 158 L. W. Wirth.............................................. 159 E. E. Selph . . .......................................... 160 F. S. Tenny................................................ 161 Bureau of the Census and Statistics.. . 163 ........................................................................ 164 50 CENTAVOS THE COPY FIRST IN QUALITY! ■ MOBILOIL-lubricated race car RUNS 403.135 MILES PER HOUR! In speed runs across the parched Bonneville salt flats, Utah in 1947, Sir John Cobb traveled faster than any man previously had sped on land when he hurled his “Mobil Railton Special” race car through the measured mile at the rate of 403.135 miles per hour. Keepihg pace with engine design and construction, the makers of Mobiloil have to day developed a NEW, IM PROVED MOBILOIL with all three modern qualities—Anti Acid—Detergent—High V.I.— to get and maintain the out standing performance and de pendability built into today’s fine motor cars. Regular stock Mobiloil was used in this most venture to add achievement to this lorful history. thrilling another oil’s coIn performance and quality Mobiloil has proven itself time and time again as the oil that’s FIRST IN HISTORY —FIRST IN QUALITY! ///////////////////////////// NOW----- BETTER THAN EVER/ STANDARD - VACUUM OIL COMPANY Editorials *' ... to promote the general welfare” We in the Philippines may well ponder a number of the statements made by Assistant Secretary of Commerce Thomas C. Blaisdell, Jr., in a speech be‘‘Closing the fore the conference on International Dollar-Gap at Cooperation for World Economic Devea Low Level of lopment, held recently at the University Productivity.” of California. One thing he said was: “Some money both public and private, can be constructive. But large funds made available in the Far East carry some possibility of doing harm. Instead of creating strength, they might create weakness. Strength comes from work and self-dep’ dence and aid discreetly accepted, wisely handled, and strategically applied.” In other words, at certain stages in a country’s eco nomic development, it is not always possible to invest large sums advantageously because of lacks other than capital, and capital may thus be unprofitably applied and wasted, leaving the country worse off rather than better. He said also: “If we were to assume that the problems of the Far East are similar to the problems of Europe, we would go far astray. To assure that the problems of an area which can readily become dollar-long are similar to those of a community which is dollar-short, is, of course, a complete misreading of the social scene.” Enlarging on this, we may point out that even before the war the industrialized European countries did not enjoy any great market in the United States; because of American self-sufficiency, they were generally dollar-short. But, after the war, they had the remains, at least, of great industrial plants, and, more important, they had the technical knowledge and the skilled labor and the experience acquired over years of successful manufacture and trade. Their industries had only to be rehabilitated and they would be able to resume their production and revive their trade. However, unable to feed themselves, and without “dollars” either to import the goods they needed for their immediate wants or to invest in rehabilita tion, they were in desperate straights. America aided them and is still aiding them in various ways, chiefly through loans and the Economic Cooperation Administration. As Secretary Blaisdell said: “With our financial assistance we buy time to create conditions which will make it possible to balance trade—close the dollar-gap—at high levels of productivity and income rather than low levels.” That sentence, in Secretary Blaisdell’s speech, when we first read it, struck us particularly because what we are doing in the Philippines, in attempting to close our dollargap, is to close it at a low level of productivity and in come. That is all the more a mistake because the Philippines is not normally a dollar-short, but a dollar-long country. Our situation with respect to the American market is entirely different from that of the European countries. We have a great and guaranteed market there for products which in large part are still to be delivered. Even of the products which are under quota restriction, we are still sending less than half of the totals we could freely export and exchange for dollars. And these products which we may send to the United States either under liberal quotas or under no restrictions at all, are products which we produce for the most part simply, without need of any very great investment of capital, in our fields and groves and forests and mines. As we have stated before in this Journal, we support “industrialization” along lines which are natural to the country, but this will take time as well as considerable capital, and is anyway not the main nor the immediate line of advance in our economic development. As Mr. Eugene Clay, American Embassy economic adviser, said recently: “The Philippines has such vast resources that I feel it can, with luck and hard work, balance trade in three or four years.” He went on to say that this would be possible mainly through rehabilitation and expansion of the sugar and abaca industries, and limited expansion of the tobacco and lumber industries. He expressed himself as confident that the Philippines could balance its food bill soon and that the best prospects for achieving this is through an increased production of rice, corn, and fish. Mr. Filemon C. Rodriguez, Manager of the National Power Corporation, was also quoted in the press as saying that— 135 “A study of Philippine production and trade patterns shows that a realistic balancing of reduced consumption, together with increased agricultural production for domestic use and export and some measure of industrialization for dollar-saving purposes and for partial selfsufficiency, will go a long way in ameliorating our present difficult economic situation.” To close our dollar-gap let us save dollars in every reasonable way, but let us turn our main efforts to earning more dollars. To force a closing of the gap at the present low level of production and income will result not only in an arrest of our economic progress, but in disintegration and collapse. Although legislation on the Point Four Program,- on which we wrote at some length in the March issue of this Journal, is moving forward in the United $$ Wanted? States Congress, the House having acted favorably on one bill while the Senate is to take up another bill somewhat different in its provisions, all the indications are that American business leaders are certainly not on fire over the Program and continue, indeed, to show only the slightest interest. That is because capital investment is reciprocal, a two-way, affair. It has always been evident that even if the Program is duly implemented by congressional legislation, little is to be expected from it unless the countries which need American capital will do their own part and go a great deal further than they have up to now to attract it. Adjurations and blessings from a government entity in Washington and prissy platitudes from federal banking authorities will have as little effect on private capital in vestment in foreign lands as the wishful appeals of foreign cabinet ministers and foreign promoters so long as the “welcome” remains merely verbal and real opportunity for profitable investment is hopelessly circumscribed by all sorts of government interference and even competition, by all sorts of controls and limitations, and by continuous “nationalization” maneuvers deliberately aimed at elimi nating foreign business interests. The contradiction is so obvious that it becomes absurd. In the Philippines, the adoption of the “parity” prin ciple was a move in the direction of providing a real attrac tion, although this is limited in itself and bounded by other existing restrictions, but for this one step forward, back ward steps are being taken all the time as the reading of any day’s issue of any Manila newspaper will show. And as for the one, main thing necessary, the conclu sion of the Philippine-American Treaty of Friendship, Commerce, and Navigation, the negotiations concerning this still remain, after several years, a “dance in place”, getting nowhere. Capital must have both opportunity and guarantees of fair treatment. It is very, very simple. It is unfortunate that a difference has arisen between American and Philippine authorities on whether the pro posed economic advisory commission The Economic is to be wholly American or a joint Advisory Philippine-American body, and it is to Commission be ardently hoped that the difference can be reconciled. At the time we wrote on the subject for last month’s Journal, this issue had not come up. Since then, American news sources have indi cated that the State Department favors an all-American group, while President Quirino desires it to be a joint group “in order to inspire the fullest confidence in the Philippine people”. The State Department was reported to favor an ex clusively American body composed of leading businessmen, like the Dodge Mission which studied Japan’s economy last year, for two reasons mainly: (1) speed is desired, and (2) the impersonal and disinterested evaluation of conditions by such a body would have greater weight than the con clusions of a mixed group “if the Philippine Government choose to present the Commission’s findings to some United States or international lending agency to support a loan request”. Since the writing of our previous editorial on the sub ject, another aspect of the matter has also presented itself, and that is that while President Quirino had stated in con nection with the organization of a joint body that he would look for his appointees among Filipino businessmen and professionals, he recently appointed a group that is heavily official. The men designated are former Justice Jose Yulo, member of the Council of State, Chairman, and Messrs. Pio Pedrosa, Secretary of Finance, Miguel Cuaderno, Governor of the Central Bank, Bienvenido Gonzalez, President of the University of the Philippines, and Filemon Rodriguez, Manager of the National Power Corporation, members. It is manifest that sincere and able as these men are, they would represent, as members of the Commission, the established official viewpoint and could hardly be expected to come up with anything new. They all, in one capacity or another, are identified with the present economic policies of the Government and could hardly be expected to do any thing else than to defend them. Their membership in the Commission would doubtless definitely tend to modify and attenuate any conclusions a more disinterested body would reach and the recom mendations it would make. Their membership would render the work of the Com mission largely tantamount to the Philippine Government evaluating its own actuations and advising itself as to what to do in a situation in which it is most necessary that it obtain disinterested outside evaluation and, possibly, advise. The question that is now raised, therefore, is whether the Philippines wants wise, outside counsel as to present and future policies, or mere approval of policies which it is already clear to any disinterested observer require revision and, in some cases, reversal. There is another important aspect of the question and that is that it would hardly have been either desirable or correct, politically and diplomatically, had the American President announced a plan, even at the request of Pres ident Quirino himself, to send an advisory commission of American officials here. The plan of President Truman to send a group of private persons, of business leaders, would, on the other hand, seem to be wholly unobjectionable from the political and diplomatic points of view, but if these persons are to have any Filipino counterparts at all, then these should also be persons without official office or rank. And they should as nearly as possible be equals in every other respect,—as businessmen, financiers, and economists. Any other course would be almost certain to lead to possibly keen embarrassment all around. The question of the confidence likely to be reposed in the conclusions of any advisory group, whether on the part of the Filipino people themselves or foreign lending agencies, clearly must resolve itself in favor of the State Department view of the matter. The British Election— Socialism Those who are convinced that freedom and true democracy can be maintained and developed only by the maintenance of certain checks on the power of the state,—the most important of which checks is the continued existence of free private economic enterprise (involving the separation of business and the state), other checks being the separation of church and state, the school and state, and the press and state, as well as the division of 136 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 137 Tel. 2-70-39 Victor H. Bello, Supervisor The American Foreign Insurance Association has been transacting business in the Republic of the Philippines through its member insurance companies for 32 years. These companies are amongst the largest, soundest and most experienced insurance companies in the United States and are represented by the following General Agents carefully chosen for their experience and integrity and who are authorized to write practically all forms of property and casualty insurance. Aetna Insurance Company Marsman & Company, IncWise & Company, Inc. The American Insurance Company Guttridge & Chambers, Inc. The Continental Insurance CoE. E. Elser, Inc. Fire Association of Philadelphia F. E. Zuellig, Inc. Fireman’s Fund Insurance Co. American Factors (Phil.) Inc. United Underwriters, Inc. Great American Indemnity Ins. Co. J. J. de Guzman R. C. Staight & Co. Inc. A. Soriano y Cia. Great American Insurance Co. Fidelity & Surety Co. of the Phil. J. J. de Guzman R. C. Staight & Co. Inc. Hartford Accident & Indemnity Co. American Factors (Phil.) Inc. Hartford Fire Insurance Co. American Factors (Phil.) IncThe Home Insurance Company A. Soriano y Cia. The Phoenix Insurance Company Manila Underwriters Ins. Co. Inc. Marsman & Company IncUnited Underwriters, Inc. Spring field Fire & Marine Ins. Co. Kuenzle & Streiff, Inc. St. Paul Fire & Marine Ins. Co. Theo. Davies & Co., F. E., Ltd. Head Office: 80 Maiden Lane New York 17, N. Y. L. C. Irvine, General Manager the government itself (as in the United States) into three co-equal departments,—those who are convinced of this have rejoiced over the outcome of the last general election in Britain. The socialist government in power has so far managed to remain in office by only the barest majority of a few votes, but the conservative party, led by Winston Chur chill, is generally felt to have won the real victory by its dramatic demonstration of revived strength. What is so heartening about this is that this conser vative victory was won in the face of the supposed benefits which have allegedly been showered upon the people in.the lower income groups by the socialist government during the past few years. But in so far as any actual benefits were not made pos sible, indirectly, by the vast loans from the United States, which thus unintentionally abetted these socialist experi ments, they were made possible by the despoliation of the middle classes; and the nationalization of various basic industries and social services (as in medicine) has not only disastrously disrupted the whole economic system, but has resulted in a vast increase in the cost of government, the imposition of ever-increasing taxes (with less and less to tax), and ever-spreading controls over every phase of life. Under such conditions, any benefits afforded the poor can only be temporary because the nation is feeding on its own flesh. No man can grudge the poor a better life; that is what we all want. But it can not be achieved through a mere “re-distribution” of existing wealth, nor is it possible for a government, through a nationalization of industry to estab lish better conditions for the workers than private industry can. A government industrial or business monopoly is bound, as practically always subject to political inter ference and under no stimulation of competitive activity, to be less efficient and less productive, and the creation of greater general prosperity depends on more efficient and greater production. America has proved that to be true. While in Britain, the promised socialist “abundance” has turned into a grim “austerity”. In the end it is poverty that is distributed. The trouble with socialism is that it bases itself on theory and not experience, and resorts to artificial and interfering measures and, indeed, to a total reorganization of government and industry, destroying what has been laboriously built up over many years of development, instead of furthering, through wise and proper fostering measures, those natural processes which will lead to what all of us want,—a freer and more abundant life for all. Socialist measures may lead to small and partial im mediate gains to a small group of the very poorest, but at the cost of loss on the part of the majority, and a loss to all of individual freedom. And the ultimate loss will be that of all the precious things in our democratic civilization, for socialism, like communism, leads in the end to totalita rianism. The British general election seems to show that the people of Britain are beginning to see the truth of this. This public reaction in Britain certainly holds a lesson for us in the Philippines. The Whence of Russia’6 Strength At first thought it is difficult to understand why Russia, being what it is felt to be, can be so powerful; how it has been able to extend its dominion over such great areas; how it seemingly con tinues to spread, both its rule and in fluence, menacing, today, the whole world. Could it be that communist ideology, communist techniques, and communist organization are actually superior, in effectivity, to those of any other system of human organization and government, and therefore bound to triumph everywhere? If thus superior, could the Russian system be so evil as it is almost universally felt to be? Could we be wrong in believing it to be evil? And, with our faith in the inevit able victory of right, shall we have to reconcile ourselves to this “communism” as ultimately the whole world’s way of life as well as to a Kremlin-dominated world empire? But we know that we can not be wrong in believing that system to be evil, for everywhere,—however “scien tific” and however “altruistic” the ideology of communism may be claimed to be, we see it to be evil, evil in its covert if not its announced aims, hideous in its methods, mon strous in its achievements. We know it to be a lying, mur derous, mass-enslaving, diabolic system. And there lies the explanation of communist Russia’s strength. It lies in the strength of evil, and evil is very strong. And even a little of that which is evil can, like a poison, corrupt a great mass. A sound man may be perverted by one wrong twist in his brain, and he may be destroyed by a minute bacterial infection. There is no need for any mystic explanation of the source of evil, for evil is to be equated with error and wrong, with individual and social disease and perversion, with the anti-social and the sub-human. And everywhere, the sub-human lies very near the sur face of humanity, in whom the beast of prey, the brutal savage, and the ignorant and amoral child underlies the mature social and ethical being who is modern man at his best. It is for this reason that irresponsibility and reckless ness, envy, greed, hatred, and blood-lust are all too easily aroused in man. Rapacious and murderous passions, generally suppressed, rise easily to the surface. The balance between the social and the anti-social, as between health and sickness and between sanity and insanity, is often a precarious one in men both as individuals and in the group. "Men’s pacific tendencies are often separated from his destructive tendencies by little more than passivity and sloth. The whole life of humanity is bound up in the develop ment of self-discipline and social discipline, and in the gradual building up of ever more humane and more com prehensive ethical standards. Human society is generally conservative and stable; yet, under circumstances, disci pline may turn quickly into wildness, with ethical standards abandoned, and disorder ending in complete break-down. This dissolution is what the Kremlin criminals seek to provoke in other countries. And all atavistic brutishness and savagery and all immaturity is on their side. And more and worse than that is the fact that besides exploiting all the baser and weaker instincts of men, in both their tools and their victims, Russian “communism”, so deceitfully so-called, through a meretricious ideological structure and a systematic process of suppressing truth and propagating lies, also inspires and maintains a false appeal to human idealism, loyalty, and courage. That is the fata morgana which is leading many good people into the wil derness of the most brutal despotism that has yet been seen on earth. We should not, therefore, be amazed by the apparent strength of the Russian system, or be misled as to the satanic source of that strength. But the communist mirage is fading in the pure light of the events of the time in many parts of the world under Kremlin misrule, which no suppression of the truth can conceal and no propaganda can misinterpret. The appeal to idealism, therefore, can certainly not be much longer maintained. 138 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 139 nil KC0UNTIH6MMI EASY YOUR PAYROLL WORK. BURROUGHS METHOD: The new Burroughs COMPLETE accounting machine accomplishes a complete payroll operation with one handling of forms and figures. OLD-FASHIONED METHOD REQUIRED 8 MANUAL OPERATIONS 1. Compute time & earnings 2. Write payroll 3. Compute net pay 4. Total columns 5. Write statement of earnings 6. Write check 7. Post earnings record 8. Balance to payroll 1. Compute time & earnings. 2. Complete checks and payroll records together—automatically computing net pay and column totals. Ask your local Burroughs dealer for a demonstration today. Let him show you how this great new Burroughs can speed up your pay roll operation ... and at the same time lower your operating costs. WHEREVER THERE’S BUSINESS THERE’S Phil. Chamber of Commerce Bldg., Manila Tel. 3-20-96 Burroughs BURROUGHS DEALERS DAVAO CITY: (also for MINDANAO-SULU), Burroughs Sales Office; BAGUIO: Baguio General Trading; NAGA, LEGASPI, LUCENA: Gabriel & Co.; CEBU: Valeriano Alonzo; BACOLOD: Warner, Barnes & Co.. Ltd.; ILOILO: Warner, Barnes & Co., Ltd.; DAGUPAN CITY: Villamil Bldg. Tel. 95. The exploitation of the weak and the evil in men is also bound to fail, for, because of the millenniums of human evolution from the beast and the savage, there is more of strength than of weakness in men and more of good than of evil. The very uprush of evil in the world today, forces a reassertion of all our highest beliefs and a reenforcement of our moral standards, and we may be witnessing a series of events which will lead to a great purging and a great world purification. The noble values of civilization will then be all the more firmly established,—individual liberty, opportunity for personal initiative and creativeness; honesty, trust, good faith and good will among men; world-wide coopera tion; order, peace, security, plenty. That is what, in history, civilization, in spots here and there, has always brought, and that is what the spread of civilization will bring to all men in the goodness of time, the goodness of men, and the goodness of life. International Harvester Company of Philippines By Paul H. Wood Vice-President and General Manager, International Harvester Company of Philippines IT was shortly after the turn of this century that Inter national Harvester Company became interested in the Philippines as the source of raw materials, particularly hemp to be manufactured into binder twine. There was here, at that time, a Scotch firm by the name of Macleod and Company, which had been established in the Philip pines about 1870. International Harvester acquired that company and continued to use the firm’s name until 1931, when the firm name was changed to International Har vester Company of Philippines. During this first 30-year period under the name of Macleod and Company, the firm became importers and Philippine distributors of the Harvester line of agricultural machinery, tractors, and International trucks, as well as continuing to be large exporters of Manila hemp. Macleod and Company of Philippines was reformed soon after liberation, and the production and processing and ex portation of hemp no longer was carried out under the name of International Harvester Company of Philippines, although the firm Macleod and Company is an affiliated company in the same sense as others. Since about 1920, the Company has conservatively introduced mechanized farming into the Philippines, most particularly in the sugar-producing areas, on the abaca plantations, and in the Central Luzon rice area. Today, the investment of International Harvester Company of Philippines in buildings, land, plant facilities, inventory, receivables, etc., is many millions of pesos. The Company and its affiliated entities employ many hundreds of people, more than 98% of whom are Filipinos. In Manila are situated general offices, service parts depot, large service station (perhaps the most modern between San Francisco and New York), and bodegas for the storage of goods in transit from the United States to users. The Company also operates here, (and is now engaged in its rebuilding) a large assembly plant where motor trucks, tractors, and farm implements are assembled from the component parts shipped into the Philippines and added to in some cases by local materials. The degree of assembly in the Philippines on many items, and particularly motor trucks, is equal to that done in such countries as Brazil, Mexico, Union of South Africa, European countries, and Canada. Assembly and fabrication is also done at Cebu, where the Company has just built a new and modern assembly plant, service station, parts depot, bodegas, and office building. Similar installations have been provided at Bacolod and Davao, although on a smaller scale. A Dealer Organization, consisting of 27 Filipino firms, sells and services Harvester products throughout the Phil ippines. This Dealer Organization includes approximately 400 persons engaged in selling, demonstrating, servicing and providing service parts, motor trucks, industrial power equipment, farm equipment, and tractors. Most of these dealers have erected new, modern, and properly designed post-war facilities. Generally, these are built to conform to recommendations of the Company, based on its experience and knowledge of the needs of the dealer and with regard to the potentials of the territory which the dealer will serve. Financing of dealers and their cus tomers is done by Harvester of Philippines. Retail operations are carried out only in the cities and areas adjacent to Manila, Bacolod, Cebu, and Davao. These territories are not considered exclusively as retail areas for Company-employed retail salesmen but dealers are at liberty to make sales in these territories where the same prices are maintained as those offered by the Dealer Organization. It is not the intent of the Company to act as a retailer and it only does so when it cannot find suitable dealer repre sentation. It is, of course, difficult to obtain such represen tation with adequate facilities, financial backing, and an organization, to provide for the proper amount of business in the larger cities. Nevertheless, International Harvester Company is ready and willing to turn over its retail business in Manila, in Bacolod, in Cebu and in Davao to any pro perly financed and organized dealership that will and can provide the same service to the user that Harvester offers. The Company does not normally sell at retail in other territories and is engaged constantly in seeking out and helping to finance suitable Filipino nationals as dealers to handle all the retail business. At no time in the post-war period has there been a sufficient amount of farm tractors and farm equip ment to meet world demands, and that has been just as true here as elsewhere. It has only been in the late months of 1949 that the Company could deliver some items of farm equipment from inventory. Since October, 1949, the inventory of that date has shrunk more than P3,000,000 and what is left is about half in service repair parts. •Harvester operates its own iron mines, coal mines, and steel mills. Its ore is shipped on its own boats on the Great Lakes. In the United States, more than 20 factories, principally located in the Middle West and the southern part of the United States but with some plants located in California and Eastern States, produce com plete lines of farm and industrial tractors, agricultural equipment, industrial power machinery, motor trucks, refrigeration, and allied equipment. Large-scale manu facturing is carried on in 3 plants in Canada, factories in France, in Germany, Swe den, Australia, Mexico, Great Britain, and other countries. Several affiliated com panies operate in Europe, more in Latin American countries, others in South and East Africa, Australia, New Zealand, and the Philippines. Each such affiliated company has from 1 to 14 branches for wholesale sale, storage, and distribution of service parte, assembly of machinery, and other functions necessary to the business and service to the users. 140 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 141 Reynolds Lifetime Aluminum Corrugated Roofing and Siding does a better job . . . for more years... at lower costs. Here are the reasons: Lifetime Aluminum is an investment in long range economy. It cannot rust or decay, never needs protective painting. Properly applied, it will last a lifetime with little maintenance. Lifetime Aluminum insulates by reflecting radiant heat. This means interiors up to 15° cooler in summer, warmer in winter. Light and strong, this modern roofing and siding material is easy to handle, easy to apply, easy to cut and form. We suggest you tell us your problems. Our technicians will work with you closely and give you full details on the most ad vantageous way to use these sheets. NAILS .. . Aluminum wherever Reynolds Aluminum Corrugated Sheets are used. nails are strongly recommended --------------------------------- REYNOLDS METALS COMPANY--------------------------------—1 EXPORT DIVISION . 19 EAST 47TH STREET, NEW YORK 17, N. V.. U.S.A. * CABLE- FOILWAX N EW YO RK SORIANO TRADING COMPANY M. It. S. Building Manila Tel. 2-«9-36 Offices of the International Harvester Company on Marques de Comillas, Manila This inventory is considered entirely inadequate for serving any proper agricultural improvement in the country. It has been brought about by the imposition of the various controls, principally exchange control. During this same period of about four months, the Company has continued to sell farm equipment and tractors on time to Filipino agriculturists with the result that receivables, at present, are about 1-1/2 times those of one year ago. While we are agreed that present conditions in the Philippines justify import and exchange controls as tem porary measures, we are not in favor of central planning and controls as a way of life. We believe this country cannot have a dynamic, flexible production system based on a few official planners and millions of obeyers. With respect to our present controls, we are extremely hopeful that the authorities will soon adopt a more practical method of ascertaining the amounts of imports in various categories that should be permitted and the exchange that should be provided for them. Instead of following an arbi trary percentage basis on which all goods may be imported and paid for, we believe the Boards should be guided by a sys tem that would provide information on consumer demands and essential requirements so that these authorities can reduce the amount of importation and dollars allowed for commodities already here in excess of normal require ment, and thus be able to increase the amount of dollars available for the importation of the essential goods for which the country is in bad need. It would not be difficult for the control bodies to collect and have current knowledge of inventory levels and con sumption demands. This is done in other countries. Certainly the agricultural production program and the development of Philippine natural resources must take high priority. It will not be enough to say this priority is provided. It is necessary that the statement be imple mented by action based on the needs of the country and how they can be filled. ^pHE very foundation upon which this independent r country must stand and grow will be obtained through the development of its agricultural and natural resources, and by the establishment of an independent small farmer class. As proof that there is opportunity for the establish ment of such a farmer class, there is the fact that there are 20,756 farms in the Philippines of more than 20 hec tares; 48,367 of between 10 hectares and 20 hectares; and 142,587 farms of from 5 to 10 hectares. This is a total of 211,710 farms on which mechanization is economically advantageous. Less than 10% of this number now use modern power farming methods. International Harvester Company of Philippines is now, and has been for many years past, engaged in a con scientious attempt to aid in this agricultural development, particularly with respect to food production and the pro duction of dollar-producing crops and the necessary equip ment to transport such crops. As an indication of that effort, last year the Company conducted 33 farming demonstrations using modern power equipment. These were seen by 13,689 Filipino farmers. The Company also exhibited educational motion pictures on soil conservation and modern farm practices to 782,384 people in the Philippines during 1949. The Company has the benefit of 118 years experience in such work and in every civilized country in the world. * * 7E Americans are enlisted in a common enterprise — whatever our antecedents, whatever the creed we may avow or reject— ▼V the bold experiment of freedom. It is bold because it can not be realized without the most difficult and persistent colla borative effort. It demands the continuous exercise of reason, of self-discipline of the highest order. This is so because it places ultimate faith for attaining the common good in the responsiblity of the individual. . .” —Justice Felix Frankfurter. “The whole art of government consists in the art of being honest.”—Thomas Jefferson. 142 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 143 U. S. RUBBER AGAIN RREAKS TRADITION WITH TIRE FEATURES NEVER KNOWN REFORE Protective Curb Guard Keeps your whitewalls clean and spotless— gives lasting protection against curb scuffing. Triple-Traction Tread Sweeps-Grips-Holds. Sweeps away water, mud, oil film. Flexible tread grips and holds, the instant you touch your brakes. Now Combined With The Original U. S. Royal Low-Pressure Principle In THE GREAT NEW U.S. ROYAL MASTER They Make Any Car Appear Lower They Lengthen the Appearance of Any Car They Modernize Any Car Never before has there been a greater advance in tire design and construction than in the new Mid-Century U. S. Royal Master. Styled to complement the lines and -mprove the appearance of any car . . . built for greater riding comfort and longer wear. A superior tire with renewable tread to give more—60% more—safe miles. It’s the tire that’s years ahead—today! SERVING THROUGH SCIENCE UNITED STATES RUBBER COMPANY 16th Street & Atlanta — Port Area — Tel. 3-20-36 — Manila Distributors: Manila Dealers: KER & CO., LTD.—Cebu, Iloilo, Davao REYES AUTO SUPPLY, 687-89 Evangelista PHIL. AGRICULTURAL EXPORT CO. (PAECO)—Legaspi SQUARE AUTO SUPPLY, 635 Juan Luna The United States Export-Import Imbalance* By Charles G. Ross SINCE the end of the war, world trade has been maintained by the huge volume of exports needed for post-war relief and recovery. We are now ex porting annually about $16,000 million of goods .and ser vices. We are importing annually only $10,000 million of goods and services. Of the difference of about $6,000 million, approximately $5,000 million is being paid for by United States grants. In short, about one-third of our exports is being financed by grants. The European Recovery Program will come to an end at the close of 1952. The reduction and eventual ter mination of foreign assistance will create tremendous eco nomic problems at home and abroad unless vigorous steps are taken both by us and foreign countries. If no offsetting measures are worked out, it may well be that United States exports will be sharply reduced, with serious repercussions on our domestic economy, and with equally serious effects on friendly areas of the world which are dependent on our goods. Our international accounts will always and inevitably reach a balance. Our exports of goods and services stand on one side of the ledger. On the other side are our imports of goods and services, our foreign investment, and our foreign assistance. In the final analysis if any one of these items changes, some other item must change as well. It is of great importance to us and to other countries that the new balance is struck at a high level which will provide full employment, greater production, and higher standards of living. There has been some decline in our merchandise exports since the all-time peacetime record of 1947 when the United States shipped abroad $14,400 million of com modities. In that year the gap between our merchandise exports and our merchandise imports was $8,700 million. In 1948, our exports dropped by about $2,000 million; imports increased; and the merchandise gap dropped to slightly over $5,400 million. In 1949, both exports and imports fell by about $500 million, and the merchandise dollar gap was about $5,300 million. As compared with 1947, American commodity exports in 1949 were down $2,500 million and commodity imports had increased by slightly less than $1,000 million. The annual figures for 1949 do not disclose the more recent developments in the trade pattern. The 1949 decline took place in the last half of the year. Moreover, exports in January, 1950, were the lowest since October, 1946. ♦ From a memorandum prepared for President Truman. On the other hand, in only four months since the end of the war have United States imports exceeded those of January, 1950, while the dollar gap has thus narrowed. This has been achieved in large part by the reduction in United States exports. Three negative factors were at work in 1949 which affected trade in the latter part of the year: our own bus iness recessions; the weakening of the British financial position and the resultant cut of dollar purchases by the sterling area; and curtailment by several Latin American countries of dollar imports until they could reduce their heavy backlog of commercial obligations. Fairly new fac tors which are at work to increase United States imports are the devaluation dollars; and new and vigorous efforts by foreign countries and businessmen to sell the United States market. There is increasing recognition in the United States that we are a great creditor nation and that we cannot continue to sell our goods abroad, or receive a return on our investment and the credit obligations due us, unless foreign countries in some way or other can obtain the necessary hard currency to make these payments either by exports of merchandise to the United States, through services such as shipping, insurance, tourism, etc., or through increased United States investment abroad. The goal toward which all nations must work is clear—one where international trade flows freely with as little arbitrary interference as possible. This is the heart of the principle of the International Trade Organization (I.T.O.) now before Congress for approval. We have also been instrumental in effecting the general agreement on tariffs and trade (G.A.T.T.), the largest general reduction in barriers to trade the world has ever seen. Concurrently, we are negotiating a number of bilateral commercial and investment treaties which will promote trade and foreign investment, but controls and restrictions appear to be necessary if trade is out of balance and they have a ten dency to perpetuate themselves. To win freedom for the trading world from these • restrictions requires vigorous and sustained United States effort. The economic progress made since the end of the war is tremendous. The period of acute shortages has ended. Today’s international economic problems lie in the field of international trade and that is why the dollar gap is of such crucial importance. The policies which are made now will shape the future of our foreign trade and must be considered not only in domestic but in interna tional terms. On the Point IV Program ^^T<HE Convention is in accord with the general objec1 tives of the Point IV Program as enunciated in statements by President Truman and administra tion officials; but it emphasizes that this is a long-term program, whose ultimate success will depend on the sound ness of the policies by which it is implemented. “The Convention endorses the proposals of the Na tional Foreign Trade Council in its report entitled, ‘Private Enterprise and the Point IV Program’, which recommends that implementing legislation be formulated as an inte grated program. The Report of the Council properly stresses that the Program should place primary emphasis on the establishment in participating countries of condi tions that will serve to attract private capital investments, with the industrial techniques and experienced manage ment that characteristically accompany them. It empha sizes, further, that the technical cooperation by agencies of the United States Government should be limited to such fields as health, sanitation, agriculture, and educa tion. The Council’s Report considers that loans to foreign governments and their agencies should not be a part of this Program, and that if such loans are granted, they should be made by the International Bank. The Report also takes the sound position that participation in the benefits of the Program should be limited to those coun(Continued on page 146) 144 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 145 INTERNATIONAL HARVESTER—BUILDER OF ESSENTIAL EQUIPMENT FOR ESSENTIAL WORK Power to generate electricity Famous design features of INTERNATIONAL DIESEL power units account for their un equalled reputation. Replaceable cylinder sleeves ... Tocco-hardened crankshafts . . fulllength water jackets are only a few of the features that have made INTERNATIONAL power units outstanding for trouble free, economical operation . . . There is an INTERNATIONAL power unit for your every purpose. For more power... at lower cost, see your INTERNATIONAL HARVESTER Dealer today. CRUSH RCCK MILL R I CL -A'.V LUMBER <&> p internationaLharvester company OF PHILIPPINES" 154 Marquez de Comillas, Manila Ouczon Blvd, at Palma St.. Cebu Sasa, Davao-Lacson St., Bacoiod McCORMICK International Tractors and Farm Equipment International Industrial Power International Trucks International Refrigeration The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source MARCH 1 — President Elpidio Quirino formally inaugurates the radio-telephone service between Manila and Cebu in a 3minute conversation with former President Sergio Osmena and Mayor M. Rafinan; present were officials of the Government and of the Philippine Long Distance Telephone Company headed by H. P. Mahoney. March 2 — The President inducts the members of the new Govern ment Reorganization Commission into office, — Ramon J. Fernandez, Chairman, indicating that the ideal he envisages is an “economical, efficient, and simple” government organization. Under-Secretary of Foreign Affairs F. Neri states that a proposed draft of an executive order to regulate the importation of flour on the basis of the International Wheat Agreement has been submitted to the President by economists of the foreign office in conjunction with PRATRA officials. . March 3 — Secretary of Finance Pio Pedrosa and Secretary of Labor P. Lovina submit to the Cabinet the drafts of 12 bills which would impose various new taxes and fees. The Cabinet directs the Department of Foreign Affairs to nego tiate with the American Embassy for the final determination of the status of the sunken ships in Philippine waters claimed by United States authorities as enemy alien property, which question has held up the execution of the contract of Mollers & Choy (Hongkong) with the Government for the removal of the wrecks. The Cabinet approves the recommendation of Secretary of National Defense R. Kangleon that representations be made with the Far Eastern Commission for payment of the costs of replacement of the presidential yacht Casiana which was destroyed in a Japanese air raid on January 6, 1942. The President directs Secretary of Public Works and Communica tions P. Sanidad and Secretary of Health A. Villarama to collaborate in the project to clean up Manila’s esteros for which purpose 6 small dredges are being acquired. The President states he will name Secretary Pedrosa and Governor P. Lorenzo of the Reconstruction Finance Corporation to the Board of the Philippine Electrical Manufacturing Company which will soon begin manufacture of electric light bulbs. The Government, through the National Development Company, holds shares in this firm in which the Westinghouse Electric Company also holds an interest. March 4 — The President receives in Malacanan the foreign delegates of the" Junior Chamber of Commerce International attending the fifth world conference being held in Manila this week. The President receives Admiral Sir Patrick Brind, R.N., com mander of the British naval unit taking part in the joint AmericanBritish fleet maneuvers in Philippine waters. Vice-President Fernando Lopez assures a delegation from the Small Industrialists and Machine-Shop Owners of the Philippines, in convention in Manila, that they may go ahead with a project to estab lish a caustic soda plant without fear of government competition, stating "there won’t be any to be afraid of”, and promising that all possible opportunity will be given to small industrialists to participate in the country’s industrialization program; the group was headed by H. G. Henares. The Government Reorganization Commission announces it will welcome suggestions from the public in connection with the reorganiza tion plans. March 6 — The National Urban Planning Commission approves the plans of the People’s Homesite and Housing Corporation for a new housing project in Tondo involving the erection of 92 two- and threestory buildings, each accommodating 14 families, and to cost around ?5,000,000. March 7 — Vice-President Lopez opens the third annual conven tion of the National Federation of Sugar-cane Planters at Bacolod, stating in an address that if the sugar industry would be unable to com pete with the Cuban industry in the American market after 1954, it must look for other customers, perhaps in China and Japan. In a mes sage to the convention. President Quirino states: “I am informed that the industry will be hardly able to fill 60% of our export quota to the United States. At present prices, this means a loss to us of approxi mately $45,000,000. I am also informed that the capacity of the sugar mills today is more than sufficient to take care of our pre-war production, and that the defi ciency is due to the insufficient amount of cane being produced. This, in turn, is due mostly not only to the disorders obtaining in certain sections of Luzon, but, until recently, to fear among some planters in this premier province in sugar production. It is my earnest endeavor to remove the causes of that fear...” March 8 — The Joint Executive Committee, composed of Amer icans and Filipinos, which was in charge of raising the funds for the inauguration of the Republic in 1946, announces that an unexpended balance of around P250.000 will be turned over to the Bureau of Public Works to defray in part the cost of construction of the permanent grandstand to be erected on the Luneta. March 11 — Under-Secretary of Foreign Affairs Neri and Amer ican Ambassador M. M. Cowen sign the supplement to the Military Assistance Agreement which will implement the U.S. Mutual Defense Act of 1949 extending military aid to the Philippines, Korea, and Iran. March 14 — Secretary of Agriculture and Natural Resources P. L. Mapa declares as open agricultural land 1650 hectares in Manicahan, Zamboanga, and 421 hectares in Bani, Pangasinan; placed under the control of the Bureau of Lands, the areas will be disposed of under the President’s program to provide “land for the landless”. March 15 — The President accepts the resignation of his younger brother, Judge Antonio Quirino, as member of the Guerrilla Screening Board, effective March 1. Vice-President Lopez receives a group of local manufacturers and merchants, headed by Mrs. Rosario Yulo, President of the Philippine Industries Federation, which is sponsoring a round-the-world floating exposition of around Pl,000,000 worth of locally-made products, prin cipally embroideries, on the S. S. Sacramento, scheduled to leave Manila in April and to touch at some 18 ports of call around the Pacific and in America and Europe. The Vice-President -assured the group of his full support. March 16 — Distribution of relief to 1,700 families, over 8,000 persons, in Laguna province is announced by Commissioner Asuncion A. Perez, Chairman of the President’s Action Committee on Social Amelioration (PACSA), following a “zoning” of the area by the Cons tabulary against a group of some 5,000 dissidents reported in the moun tains bordering Alaminos. It is feared that the harvesting of com, camote, and vegetable crops and the making of copra will be affected. March 17 — Vice-President Fernando Lopez in an address before the convention of provincial governors and city mayors in Baguio, endorses the current efforts on the part of these officials toward securing greater autonomy for local governments. “Mr. Lopez recalled that even under the American sovereignty the spirit of On the Point IV Program... {Continued from page 144) tries which show a willingness to cooperate by entering into treaties providing assurances of fair and non-discriminatory treatment for American enterprises and com mitments for the elimination of double taxation. “The Convention believes that the creation in foreign countries of an environment favorable to American invest ments will provide incentives to induce American private enterprises to participate in the Program, without direct guarantees by the United States Government. In the opinion of the Convention, United States Government guarantees are wrong in principle, since they shift the responsibility for encouraging and protecting private foreign investments from the recipient country to the United States. The Convention believes that this is not a proper activity for the United States Government, and it is convinced that United States Government guarantees would tender either toward undue interference by the Government in the affairs of American private enterprises operating abroad, or toward undesirable discrimination among various classes of investments or investors.” From the “Final Declaration” of the Thirty-Sixth National Foreign Trade Convention, October 31, November 1 and 2, 1949, New York, National Foreign Trade Council, Inc. 146 diacretion and wider field of administration to local executives. That spirit, accord ing to the speaker, persistently prevails now and he believes that it is high time to put it into realization as envisaged by the American and Filipino authors.” March 23 — Vice-President Lopez and American Ambassador Myron M. Cowen are joint guests of honor at the ceremony accom panying the turning over of the newly reconstructed Jones Bridge to the Philippine Government by the United States Public Roads Ad ministration. The new bridge cost around Pl,600,000. Vice-President Lopez requests Judge Arsenio Roldan of the Court of Industrial Relations to take immediate action with respect to a strike of over 1000 workers of the Philippine Railway Company in Iloilo, fear being felt that the strike will interfere with the current sugar milling operations and result in large losses. March 24 — President Quirino instructs Secretary of Finance Pedrosa and Secretary of Agriculture and Natural Resources P. L. Mapa to draw up a list of the most urgent projects to determine the allocation of the remaining P90,000,000 of economic development funds. The matter was brought up before the Cabinet in connection with the request of the National Power Corporation for P5,000,000 to continue work on the Ambuklao hydro-electric project. The Cabinet agreed that in line with the recommendation of the National Economic Council, such dollar-producing and dollar-saving industries as those of rice, abaca, sugar, and tobacco should be given priority. March 25 — Australian Minister of External Affairs Percy C. Spender, accompanied by his wife, arrives in Manila on a 4-day good will visit. The Minister conferred with President Quirino in Baguio on the 26th and addressed, the Philippine Senate on the 27th. March 28 — Vice-President Lopez receives representatives of the National Land Transportation Operators Association and issues a statement discounting their fears that gasoline may have to be rationed because of the import controls but admitting that gasoline and lubri cating oil made available will probably not exceed the quantities mar keted here during the past year. March 30 — The President issues Executive Order No. 308 reor ganizing the armed forces of the Philippines, dividing them into five major commands: Philippine Constabulary, Philippine Ground Force, Philippine Naval Patrol, Philippine Air Force, and Philippine Service Command. All are under the direct command of the Commanding General of the Armed Forces of the Philippines, but “the Philippine Constabulary shall continue to perform its present duties as a national police force under the operational control of the Secretary of the In terior”. According to a Malacanan press release,— “from now on, the Philippine Army takes over the job of dealing with the outlaws and other dissident organizations. Ten combat battalions will be thrown into the field by the ground forces. An appropriation of ?20,000,000 is sought by the Pres ident from Congress to finance the campaign that will liquidate once and for all the outlaws and all dissident elements. March 31—According to a PACSA announcement,— “the present situation is tending to surpass the emergency created in mid-1948 when more than a million people in Central Luzon and other provinces were dis placed following the breakdown of the amnesty for the Huks. This time, more people are being forced to leave their homes and farms because of outlaw activities. During the month, the PACSA extended its relief operations to 6 additional prov inces, Mountain Province, Isabela, Nueva Vizcaya, Cavite, Batangas, and Min doro. It used to cover only Pangasinan, Pampanga, Nueva Eciia, Bataan, Zambales, Bulacan, Rizal, Laguna, Quezon, San Pablo City, the Bicol regions, and Leyte." The Department of Foreign Affairs announces that a 15-man Ko rean trade mission, sponsored by the Economic Cooperation Adminis tration, will visit the Philippines in a market survey of Southeast Asia. A 5-man trade mission from SCAP is also expected shortly. According to the latest cumulative ECA statement, for the April 3. 1948 — Feb ruary 28, 1950 period, Philippine offshore purchases for ERP countries totaled >40,043,000, of which $39,653,000 was for food and agricultural products and $390,000 for industrial gcods. For Korea, the Philippines supplied $568,000 worth of agricultural and $682,000 worth of industrial items, chiefly lumber and hemp. Banking and Finance By R. E. Russell Sub-Manager, National City Bank of New York COMPARATIVE Statements of Central Bank: Conditions of the ASSETS International Reserve............... Contribution to International Monetary Fund.................... Account to Secure Coinage. . . Loans and Advances................. Domestic Securities.................. Other Assets................................ As of As of As of Dec. 31 Jan. 31 Feb. 28 (In thousands of pesos) P460.689 P442.432 P441.999 30,000 113,306 77,047 92,197 20,390 30,000 113,306 83,374 96,774 25,248 30,000 113,306 85,451 104,649 25,462 P793.629 P791.136 P800.868 LIABILITIES Currency: Notes...................... P555.576 P540.849 P541.577 Coins...................... 74,384 74,723 77,966 Demand Deposits: Pesos. . . . 117,682 128,571 130,328 Securities Stabilization Fund.. 2,000 2,000 6,848 Due to International Mone tary Fund................................. 22,498 22,497 22,497 Due to International Bank for Reconstruction and Reha bilitation................................... 2,389 2,389 2,389 Other Liabilities......................... 2,636 2,942 6,354 Capital.......................................... 10,000 10,000 10,000 Individed Profits....................... 6,464 7,161 1,291 Surplus.......................................... — — 1,616 P793.629 P791.136 P800.868 CONTINGENT ACCOUNT Forward Exchange Sold........... P 6,460 P 6,460 P 6,000 'J'he continuous decline in the International Reserve seems to have come to at least a temporary halt during the February period. This was not unexpected and perhaps March will see an increase in this reserve as more export dollars from shipments made in December accrue to the Central Bank of the Philippines. (Shippers are given 90 days in which to sell their product and return the dollar proceeds to the Philippines.) Other Liabilities have been increased nearly P3.500,000. This increase represents funds held in trust by the Central Bank of the Philippines for the Philippine Govern ment. Gold acquired during the month under the recent ruling that 25% of all newly mined gold must be sold to the Central Bank, amounted to some P300.000. The silver-coin situation has improved slightly as far as withdrawals from the banks are concerned. However, all banks report that no silver coin is coming in. The Central Bank continues to push the use of nickel and copper coins. Stock Market By Roy Ewing Swan, Culbertson & Fritz, Inc. March 1 to March 28 WITH few exceptions, prices on the Manila Stock Exchange are near what they were a month ago. The mining share average is 81.77 as compared to 83.20 on February 28, and after recording a high of 84.86 on March 15 and a low of 80.74 on March 25. Volume of business remained small. Several of the shares of producing mines responded, one way or the other, to the news of 1949 operations re leased in annual reports. These included: 1. Atok-Big Wedge showed a net profit of P2.305,495.22, or about P0.065 per share. Ore reserves as of December 31, 1949, were estimated to be 375,727 tons of all classifications, with an average value of P22.69. This compared to mill heads of P32.25 for 1949. 2. Lepanto made a net profit of Pl,758,022.57, about P0.059 per share on present capitalization. Ore reserve, positive and probable, improved to 2,073,540 tons, from 1,632,800 at end of 1948; copper content 4.26% as com pared to 4.39% milled in 1949, and gold .136 oz/ton against .178 oz/ton. In regard to the company obtaining its production goal of 1,000 tons per day, the President stated, “We are on the home stretch, with the equipment mostly at hand and the financial needs adequately arranged.” 3. Surigao Consolidated reported net profits of P137,560.27, or P0.0094 per share. Positive and probable ore reserves, the first estimated since the war, totalled 301,674 tons with an average gold content of P26.70. This com147 pares with an average value mined in 1949 of P22.96 per ton, and reserve of Pl7.75 per ton in 1941. 4. Consolidated Mines, able to publish its first com plete Balance Sheet since the war, showed a net profit of P138,599.46, or about PO.00034 per share. The above reserves are computed with gold at P70 per ounce. On the free market the price declined further to the present price, reported to be around Pl00 per fine ounce. Interest in sugar shares declined considerably from the previous two months, attributable to moderate declines in New York and world prices, as well as to disappointing reports of some local companies. A fair amount of invest ment buying continued in industrial and commercial shares. Off 035 175 175 3 3 “ ?65 25 06 .0038 1,020,000 .O42A 31,000 .0105 3,050,000 Feb. 28 Total High Low Close Change Closing Sales 41 80.74 81.77 Off 1.43 83.20 .......................21 MINING SHARES Off .10 3.70 3.70 COMMERCIAL SHARES 00 86 00 Up Un 1.00 74 5 00 200 00 00 Up 10 00 50 Up 10 00 .043 .05 .80 2.80 Off .20 085 Off 0025 High Low Clot Over The Counter Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. IMPORTERS who are now finding their exchange quotas restricted are making changes in their credit policies. When the amount of exchange available is limited, an indentor considers it more advantageous to use his dollar quota for the purchase of imports in connection with which no or little credit risk is involved. The result is that in many cases imports which could play a part in the development of dollar-producing or dollar-saving industries, are being reduced. It is a little early yet to say whether this is going to be a serious prob lem, but there is no question that it is being reflected in the credit situation. It is noted that already some agencies of the Govern ment have found it difficult to obtain satisfactory bids for public improvements because suppliers are hesitant about using their allotted exchange for this type of business. The annual meeting of the Association of Credit Men, Inc. (P.I.) will be held April 18 at the Majestic Hotel. The yearly election of officers will take place followed by a short business meeting and luncheon. Real Estate By C. M. Hoskins C. M. Hoskins &• Co., Inc., Realtors THE Manila real estate market during March showed little change, values continuing, buyer interest active, and volume of sales recorded being but slightly less than in February. The largest sale registered during the month was the 10,000 sq. m. lot on Dewey Boulevard at Figueras Avenue, Pasay, sold to San Juan de Dios Hospital for P525.000. This is the Boulevard section of the former George Fair child property acquired late in 1948 by Benjamin Jalandoni. Deducting the value of the rehabilitated residence, this sale represents a new high price level in the vicinity, roughly P40 per square meter. Mortgages in the City of Manila were registered to a total of P5,132,988, of which P2,320,000 were loans made by the Reconstruction Finance Corporation and the Philip pine National Bank, Pl,819,000 by private banks, and P994.000 by insurance companies and private investors. Suburban mortgages totalled P3,000,000. Monthly figures of sales, as procured from the several registers of deeds, are as follows: REAL ESTATE SALES, MANILA AND SUBURBS* Monthly Totals Months September, 1949 — February, 1950 1949 September.................................... October......................................... November.................................... December..................................... 1950 January...................................... February...................................... March........................................... Cumulative................................. Manila P3,668,662 3,032,543 1,861,723 6,037,740 4,486,846 3,002,289 2,660,652 24,750,455 3,535,780 Suburbs P3,786,671 2,872,327 1,883,727 2,047,602 3,554,460 3,703,126 3,564,944 21,412,857 3,058,980 Combined P7,455,333 5,904,870 3,745,450 8,085,342 8,041,306 6,705,415 6,225,596 46,163,312 6,594,760 CityIt is interesting to note in the accompanying table the sharp drop in sales during October and November of last year, and the sudden upsurge in December and January following. Some observers suggest that this reflects the flight of pesos in October and November and the switch to real estate with the imposition of exchange control early in December. 148 Electric Power Production (Manila Electric Company System) J. F. Cotton Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH Shells........................... 27 Soap............................ 15 Sugar........................... 42,999 Tobacco..................... 196 Vegetable oil products.. . 28 Transit cargo............ 540 General merchandise. . . 4,536 59,373 ” 778 ” 27 ” 1,410 ” 1,982 ” January.......................................................... February........................................................ March............................................................. April............................................................... May................................................................. June................................................................. July................................................................. August............................................................ September..................................................... October.......................................................... November...................................................... December...................................................... Total....................................... KILOWATT 1950 37,661,000 33,828,000* 38,100,000** HOURS 1949 33,745,000 31,110,000 34,776,000 33,048,000 34,453;000 34,486,000 35,726,000 35,394,000 35,763,000 37,461,000 35,856,000 38,673,000 Mines By Chas. A. Mitke Consulting Mining Engineer Production: February, 1950 Tons Value Benguet-Balatoc..................................... 52,789 F803,928.36 Atok-Big Wedge..................................... 12,236 330,089.00 Lepanto..................................................... 50,415 487,600.00 Mindanao Mother Lode....................... 7,400 291,443.00 Surigao Consolidated............................. 8,200 246,974.00 Acoje.......................................................... 4,272 120,000.00 Consolidated Mines............................... 5,000 100,000.00 420,411,000 »* Partially estimated ' Kwh, or 9.6% over March, 1949. The use per day in March was about 2r' o higher than February, probably due to increased use of air-conditioning equipment. V/TARCH output was 3,324,000 ■LTA hfnrrk TOAO T'ha nofi Hl The first 25,000 Kw turbo-generator unit for the new Rockwell Station was shipped from New York on March 10 and should arrive in Manila mid-April. However, several more months will be required for installation and testing of this unit before power will be available. Ocean Shipping and Exports By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for the month of February amounted to 163,165 revenue tons, which is about 35,000 tons less than for the same month last year. This is to be attributed largely to a reduction in copra exports and a decided drop in scrap-metal shipments. Exports ‘ by commodities, during February of this year, as compared with exports for the same month last year, were as follows: 1950 1949 Alcohol................................. 29 tons 28 tons Coconut desiccated......... 6,591 ” 8,545 ” Coconut oil........................ 3,531 ” 2,598 ” Concentrates, copper... . 3,145 ” 2,127 ” ” gold........... 530 ” 297 ” Copra................................... 29,536 ” 38,655 ” Copra cake, meal............... 3,940 ” 5,310 ” Embroideries...................... 101 80 ” Empty cylinders.............. 304 ” 367 ” Fruits, fresh........................ 17 ” 70 ” Furniture, rattan.............. 646 ” 709 ” Glycerine............................ 138 ” — Gums, copal....................... 64 ” 50 ” Hemp................................... 42,827 bales 66,735 bales Hemp, knotted.................. 26 tons — Household goods............... 284 ” 231 tons Junk, metal........................ 1,562 ” 20,211 ” Kapok.................................. 60 ” — Logs...................................... 1,432,142 bft. 988,350 bft. Lumber................................ 2,093,188 ” 2,918,245 ” Molasses.............................. 8,714 tons 1,332 tons Plywood............................... 16 ” — Ores, chrome...................... 15,820 ” 28,150 ” Ores, iron............................ 18,985 ” 5,657 ” Pineapples, canned........... 6,864 ” 2,634 ” Rattan, palasan................. 112 ” 54 ” Rope..................................... 189 ” 82 " Rubber................... 898 ” 129 ” IS the era of managed currencies slowly passing, and will there be a return to gold before many decades? There are some who maintain that this is so, and they point to the fact that in spite of everything that has been done to disparage gold, it still has an attraction for people. Officials of the Federal Reserve Bank of New York state that some 6,000,000 ounces of gold now find its way annually into private gold hoards. The International Monetary Fund, in its annual report for 1949, put the disappearance of gold at $200,000,000 annually. One thing no soft-money addict can refute is this: “If the United States were to spring $5,000,000,000 in gold coins tomorrow—which equals only about $35 per capita— within 30 days it would be practically impossible to find a double eagle in a bank. Where would the gold go? It would be in the possession of individuals, because in having it, they possess something of small size, of high value, and redeemable at any time in goods or services”. This puts a damper on the argument that the average citizen does not want hard money. When the Chinese Nationalist Government announced, in its final days before removing to Formosa, that citizens would be allowed to convert their paper money into gold, one ounce to a person, there was rioting as peasants, coolies, merchant princes, men, women, and children mobbed the banks, endeavoring to exchange depreciated currency for hard money. During 1948, Macao is said to have taken the astonish ing quantity of 3,400,000 ounces of gold for smuggling into China. About 1,300,000 ounces is believed to have been smuggled into India, and several hundred thousand ounces are presumed to have gone to Egypt. Yet, if we are to believe economists, the people no longer care for gold! Whereas, in 1947, all foreign countries, with two ex ceptions, were losers of gold, and, in 1948, only a few added to their holdings, quite a number began to build up their gold reserves gradually in 1948. It has been announced that Switzerland, as of January 1, 1950, would return to redeemable currency, backed by gold. Italy, also, has indicated that it too might return to gold-backed currency, this being borne out by the report that the Italian Government recently purchased 116.6 metric tons of gold bars from the United States. World production of gold for 1948 was estimated at $765,000,000 (excluding Russia). Russia’s gold production for the same year is estimated by the Bank of International Settlements as about 4,000,000 ounces. Russia is reported to be mining gold at a rate variously estimated at between $140,000,000 and $400,000,000 annually. Its gold reserves have been conservatively estimated at $3,000,000,000, and some think they are nearer $10,000,000,000. 149 The May, 1949, Monthly Economic Letter of the National City Bank of New York, stated that the United States stocks of gold amounted to $24,311,000,000, and that the ratio of gold stock to money supply was 22.9%. Stocks of gold held by other Governments are estimated at $9,000,000,000. There are rumors of the adoption of a uniform world wide monetary system, based on a universal standard of value. This standard of value will undoubtedly be gold, which has stood the test of centuries as a monetary base. The world has learned from past experience that all other mediums have resulted in chaos. The only method of establishing the value of money is by agreement, whether among the people of a nation, or among nations, and even then money has value only as long as all parties agree to recognize and respect that estab lished value. Arthur B. Foote, well known California mining en gineer, is quoted as saying “For a hundred years previous to 1930, a $20 bill could be changed for a $20 gold-piece, weighing nearly an ounce, and the British pound was worth $4.85.” Mr. Foote, however, need not have stopped at a hundred years. The value of gold as a medium of exchange goes far back of that. Even in Abraham’s time, gold and silver (hard money), was prized for the settlement of debit and credit balances. In all the centuries since then, none of the financial experts have been able to invent a better or more sure commercial and financial foundation. Mr. M. A. Kriz, of the New York Federal Reserve Bank, gives the definition of a monetary standard as “a certain metallic unit that has been given, by agreement, a fixed weight, fineness, and value, from which all other types of money take their value.” The fixing of a gold unit at an amount per fine ounce is an act of adjusting the gold unit to correspond with prevalent and anticipated economic requirements. It may generally be assumed that all nations will agree to the use of gold as an international monetary base, be cause most of the nations in the world, whether on or off the gold standard, directly or indirectly recognize gold as the tried standard by which wealth and values are measured. Lumber By Luis J. Reyes Philippine Representative, Penrod, Jurden & Clark Company OF the total timber export for the month of February amounting to 3,218,653 board feet, the United States led all the importing countries by taking 2,513,446 board feet of which 1,793,668 board feet was lumber and the rest logs. This is about 300,000 board feet over the previous month, an increase in the right direction. On the other hand, all other countries, namely, Canada, Hong kong, and South Africa took 705,207 board feet, or 22% of the total February exports. Shipments to Japan and other countries of the Far East have been below normal, but we are aware of numerous inquiries from private concerns in Japan and, undoubtedly, this will result in a greater volume of trade in the future. Japan took the bulk of our log exports before the war for the manufacture of plywood. In the local markets, prices have dropped down P10. to P15 per thousand for Manila-grade lumber, with lauan" selling at P155 to P160 per M, apitong P150, and tangile P175 and P180. In spite of the efforts of some Manila wholesalers to pull the prices down, these have remained almost stationary because we are in the height of the build ing season and lumber supply barely meets the demand. During the rainy months, when building construction slackens, prices may go down another P5 to P10 per M. The Philippine Government has been invited by the Food and Agriculture Organization (FAO) of the United Nations to participate in an international technical meeting on Terminology, Testing Methods, and Grades and Di mensions of Timber, which is being organized in pursuance of a recommendation of the Forestry Conference held at Mysore, India, in 1949. This meeting will be held at Dalat, Indo-China, from April 3 to April 8. The conference seems desirable in view of the similarity in the composition of forests in these regions, the same timbers being known by a profusion of names in the world’s markets. If the recom mendations of Director Tamesis go through, two foresters of the Bureau of Forestry, namely, Felipe Amos and Luis Aguilar, will represent the Philippines. Forester Amos is a certified lumber inspector and for years Chief of the Divi sion of Sawmills, while Forester Aguilar is a civil engineer, besides being Wood Technologist of the Bureau of Forestry. Perhaps this conference may not be of much importance to our lumber industry in the immediate future, as there is only a relatively small timber trade among these coun tries, but this is a changing world and we may, someday, enjoy a greater volume of business with our neighbors. The Philippines has, since the American occupation, adopted American standards in lumber-manufacture and grading, as well as in timber testing. In so doing, our tim bers have become better known in the United States and other world markets, and because of the mechanical tests adopted, the strength-values of our timbers are easily comparable with those of the United States. It is not likely that the Philippines will change the standards which have been found so beneficial in marketing our timbers in the world markets. Copra and Coconut Oil By Manuel Igual Executive Vice-President, El Dorado Oil Works and Kenneth B. Day President, Philippine Refining Co., Inc. February 16 to March 15 ONCE more shortage of copra supplies upset the general opinion of the trade that March would see lower prices. To the contrary, after holding steady through the last half of February at around $185 c.i.f., prices gradually advanced in March until by the 15th buyers were actually paying $195 c.i.f. and sellers were asking $197.50 and higher for the slender supplies available. Trading was compara tively narrow, for there was no time when oil could be sold profitably against copra prices, and buying was largely confined to mills requiring oil for their own use, or willing to operate temporarily without gain. Copra exporters generally limited themselves to selling supplies as they came to market, for the price level was too dangerously high to justify holding, and supply prospects too uncertain to encourage short selling. Contrary to opinion in the United States, the quantity of copra being held back from market was not significant. The European market was no great factor during the period, although a few trades were reported in late Feb ruary, all of them at about $190 f.o.b. The Japanese busi ness which has been in the offing for some time, still hung fire, possibly because of lack of dollars. Sterling buyers in general covered their requirements in their own areas and, if copra and coconut oil were not reasonably available, with other suitable oils and fats. C°conut oil buyers were few and far between during this period. Sellers were alternately anxious or reluctant to sell, depending on the copra prospects of the day. Thus we have seen sales ranging from 13-1/2 to 14-1/4 150 cents f.o.b.P.C. in quantities varying from one tank-car up, but mostly in small lots. By mid-March the Coast market was fully steady. In the East, tank-cars were sold at from 14-1/2 to 15-1/4 cents f.o.b., but bulk parcels were neglected in February, although two or three small sales were reported in March at 15 cents c.i.f. Soapers in general were holding their requirements down and 1950 statistics to date showed a consumption of only 15% of coconut oil in the fat-charge of their soap—clearly a minimum figure. Fair quantities of babassu oil were available at around 17 cents, which, because babassu carries no excise tax, offered a better buy than coconut oil. Apart from two or three parcels, what business there was went to refiners, and only to cover mini mum needs. Although buyers indicated some interest in futures at a small discount, sellers were generally dis inclined to offer. Meanwhile, cottonseed and soya-bean oil continued to advance and the spread between them and coconut oil has decreased by nearly 4 cents during the past few months. Tallow also was steady and export trading occurred at over official prices. Europe was a buyer of American lard, the best bargain in the market today. J^Tanila copra prices in February were steady at P36 with premiums available for dry quality, prompt delivery, and round lots. In March the ante was raised to P37, with very little copra available. Prices in Cebu and even in the outports were not appreciably lower. In the South, production was held back by unseasonably heavy rains. In the Manila district, the undeniably small crop hampered by district ‘ ‘ zonification ’ ’ because of disturb ance in law and order, was in demand by desiccators at better than copra equivalents. The effects of last year’s dry weather afe still in evidence, but are growing less. Philippine oil mills were generally unable to trade for export except at a financial sacrifice, and for that reason milled mainly for their own consumption needs. On the Coast, mills were shut down in early March because of the California floor-tax on oil, an annual affair which makes oil stocks undesirable on the inventory date. Apart from that, however, mills both in the United States and in the Philippines were very much discouraged over market prospects for the present and near future. /"''opr a shipments for February were the lowest on record since January, 1949, totalling a most disappointing 29,736 tons.. This contrasts with 36,708 tons in January, and 38,655 tons in February, 1949. These shipments were distributed as follows: United States Pacific Coast................................................ 15,145 tons Atlantic Gulf Coast................................... 4,669 ” Canada Pacific Coast................................ 1,450 ” Europe.................................................................... 7,172 ” Israel....................................................................... 1,000 ” Africa...................................................................... 1,300 ” Total........................................................... 29,736 tons Oil exports were also low, totalling but 3,531 tons, a trifle better than the 2,766 tons shipped in January and the 2,598 tons shipped in February, 1949, but still most un satisfactory to crushers in view of their idle mill capacity. These shipments were distributed as follows: United States Atlantic Coast.......................... 3,202 tons South Africa.......................................................... 329 ” Total........................................................... 3,531 tons Pacific Coast meal markets after lagging a bit in late February firmed up in early March on light offerings, and at the close Philippine meal was selling $54/$55 per short ton c.i.f., equivalent to about P75/P76 per long ton. Denmark procured $400,000 ECA money for March/July meal purchases, and was negotiating with Philippine sellers for part of this business as the period ended. Jn a surprise move, the Secretary of Finance closed the outports on March 1 to direct shipments, the reason given being to prevent smuggling and other illegal prac tices which operate to the detriment of the Government. This step caused great concern to exporters and upset the market for a few days. Upon urgent representations, the Secretary gave a period of grace up to April 30 to take care of legitimate commitments entered into prior to March 1. With this exporters had to be content, but undoubtedly they will make strenuous,efforts to have the ruling set aside before May 1. General opinion as to the effects of this order, if fully enforced, vary widely, but the amount in volved was less in 1949 than 30% of the crop, and if the economy of the country as a whole is likely to be benefited, which is claimed in many quarters, the closing of small ports is not likely to prove as serious a matter as many fear. This column is a poor.place to debate this issue be cause its co-authors are on different sides of the fence. But all agree that its enforcement should logically work to the advantage of the local crushing industry, and hence further the Philippine industrialization program. this period closes, the market situation looks very v tight. Indications are that copra supplies will be low through the remainder of March, probably April, and pos sibly May/June. There should be good demand for every thing available. But whether this situation will reflect itself in advancing coconut oil prices is a moot question, and will largely depend on the prices and abundance of competing oils and fats. It is probable that small consumers may have to pay up for their needs, for there is but little chance that there will be enough copra within the next month to depress the market. But with oil stocks in the United States improving, buyers, particularly soapers, are not too uncomfortable. The entire picture at present is, however, not a very happy one for any except the copra producer, who continues to get good prices for his crop, although he, too, is the victim of a temporarily reduced crop. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from February 15 to March 15. During this period the copra market remained firm despite the fact that competitive oil products were considerably lower than coconut oil. This situation seems to continue indefinitely and is a source of considerable trouble in planning future operations. The price of raw nuts follows the copra market closely, but is generally a little higher than the copra-equivalent. The constabulary “zoning” mentioned in our report for January-February was not severe and, although some regions were closed off, they were opened periodically to permit harvesting in these areas. This was principally in Laguna province with some zoning also in Quezon province. Action against the dissidents at times amounted to smallscale warfare. The labor front remains quite active, and of foremost interest was the reversal of the Court of Industrial Rela tion’s decision in the Standard Coconut and Franklin Baker cases. The Peter Paul case is still before the Court and considerable delay seems likely because of dilatory union tactics. The shipping statistics for the month of February are as follows: Shippers Pounds Franklin Baker Company................................. 3,233,400 Blue Bar Coconut Company............................ 1,340,010* Peter Paul Philippine Corp............................... 850,000* 151 152 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1950 Red V Coconut Products, Inc......................... 2,676,800 Sun-Ripe Coconut Products, Inc.................... 0 Standard Coconut Products, Inc.................... 0 Cooperative Coconut Products, Inc............... 315,600 Tabacalera............................................................. 193,000 Coconut Products Philippines, Inc................. 0 Luzon Desiccated Coconut Corp.................... 299,085 Grand Total......................................... 8,907,895 Davao I.................... Davao JI.................. Davao G................... Per lb. C.I.F. New York February 15 March 15 Change Year ago 28-1/2 28-1 8 25-3. 4 ........... 26-5. fit ........... 26-3 8 ........... 25 26-3.81* Down 1,4 26 Down 3, 8 25 Unchanged Non-Davao JI........ ........... 24-1 2 24 Down 1. 2 27-1, 4 Non-Davao G......... ........... 19-1 2 18—1 2 Down 1 22-1 8 Non-Davao K......... ........... 16-1 4 16 Down 14 15 NOTE : 'Zamboanga Factory production Pounds 589,360 750,650 Total Blue Bar shipment............................................................. 1,340,010 ••Peter Paul Production...................................................................... 581,100 Standard Coconut Production ..................................................... 268,900 Total Peter Paul ahipment.............................................. 850,000 Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines THIS review covers the period February 16 to March 15, 1950. Throughout this period all terminal mar kets ruled quiet. Price changes were small except for Non-Davao G which declined one whole cent. Certain local shippers seem to have run into difficulty with SCAP on recent deliveries of this grade and were forced to un load in other markets. Poor quality hemp and bales of less than standard weight had been shipped to Japan be fore, but under the terms of the new SCAP contract the shippers concerned are now made liable for payment of claims if their deliveries are found unsatisfactory. Business to the United States was limited as buyers operated with great caution. New York quotations: In Europe, France and Germany were the only coun tries showing interest—and only in G and grades below. The high prices ruling on abaca and the strict limitation of dollar currency have caused demand to run to cheaper grades. During most of the period United Kingdom spin ners were waiting for new import licenses and dollar ex change. SCAP purchased considerably less than during the previous four weeks. Total sales to SCAP from December last year—when selling was resumed—to mid-March are estimated to amount to about 55,000 bales. Local provincial prices closed the period fractionally lower than a month ago. Philippine provincial quotations: Per Picul — Basis Loose February 15 March 15 Change Year Ago Davao I............. P60.50 P60. Down P .50 P62.50 Davao JI............... 59 50 59. Down .50 61. Davao G............................ 53 50 53.50 Unchanged 55. Non-Davao JI................. 52.50 52.50 Unchanged 60.50 Non-Davao G............ 39.50 38.50 Down 1.00 47.50 Non-Davao K................. 27.50 27.50 Unchanged 29.50Pressings in February amounted to 61,270 bales. There was not a single month in 1949 that equalled or ex ceeded this figure. In 1948, only February and April had higher balings; while in 1947 there were nine months with pressings above the 60,000 mark. The increase in the February balings over the corresponding month last year is 5429 bales; and over January this year, 7154 bales. \ THE GREATEST NAME IN ENGINEERING & CONSTRUCTION SINCE 1900 Irtfi \ ENGINEEBS*CONTRACTORS W \ VI AMIFM‘IUBFBS*IHSIBIBIIIOBS ★ ★ ★ A G & P's facilities extend to every industrial, agricultural and public utility fields. Mining, sugar manufacture, chemical plants, air conditioning and refrigeration, power and light plants, irrigation systems, drainage, steel fabrication, etc. ATLANTIC, GULF & PACIFIC CO. EXECUTIVE OFFICES • ENGINEERING DIVISION 017 AT A MIT A MERCHANDISE SALES DIVISION STRUCTURAL & MACHINE SHOPS "J F IVl/All I I J A Itob.-rl Dollar 1H<IU., Murllr del San Francis,•<. Barrio Pania. Santa Ana, Manila * 23rd Street, Port Area, Manila OF Specializing in TION OF BRIDGES. BUILD INGS AND TANKS SIEEI. A April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 153 Balings—First two months 1950 1949 1948 1947 Davao................................... 47,473 34,541 40,147 50,511 Camarines, Albay and Sorsogon.......................... 34,400 23,677 43,781 36,732 Leyte and Samar.............. 19,338 18,398 20,692 10,865 All other Non-Davao 14,175 16,022 25,841 6,488 Total (Bales)............. 115,386 92,638 130,461 104,596 Exports—First two months 1950 1949 1948 1947 United States and Canada................... 41,579 31,383 65,195 65,209 Japan.................................... 20,475 32,416 3,816 — Continental Europe......... 15,872 19,016 20,106 13,070 United Kingdom............... 12,885 3,180 25,335 575 China.................................... 1,309 2,939 1,305 50 India..................................... 1,000 200 — — Korea................................... 700 — — — Australia and New Zea land................................... 625 — 42 — South Africa....................... 395 300 — — All other countries........... — — 1,580 175 94,840 89,434 117,379 79,079 Sugar By G. G. Gordon Secretary-Treasurer Philippine Sugar Association THIS review covers the period from March 1 to March 31, inclusive. New York Market: February closed with the market having declined to the level of 5.50jZ, but March opened with a firmer undertone, sellers for March and April arrival holding for 5.60<^. However, buyers did not indicate interest above 5.50/. On March 3, some March arrival sugar was obtainable at 5.55/, but refiners continued in different to offerings. On March 1 the Atlantic Coast refined price declined to 7.80/, without, however, attracting any increased business. On March 6 all offerings in prompt position at 5.55/ were taken and there were further sellers at 5.60/. On March 8 a small parcel of Philippines, 2,000 tons due early May, was reported as having been sold at 5.60/, and the spot price advanced to 5.57/. There was little change in the situation until near the close of the month, most of the business being done at 5.55/, at which price there were usually buyers though sellers in the main continued to hold for 5.60/. On March 25, however, a weaker tendency set in, and on March 29 small sales to refiners were reported at 5.50/. Buyers continued to be uninterested in contracting ahead, and with production at the peak in Cuba and Puerto Rico, they were able to fill their requirements apparently without any difficulty at gradually declining prices. The month closed on a still weaker note, and on March 31 the spot price in New York was quoted as $5.48. It was generally considered that the refined trade had not stocked up but was continuing to purchase supplies on a hand-to-mouth basis, evidently in the belief that a further decline in refined prices was possible. Other factors which possibly influenced the market were the reports that the Cuban crop is larger than originally estimated and is now expected to out-turn 5,800,000 short tons, also that the domestic beet sugar production for 1950 would exceed the production for 1949 by 300,000 tons. There was some mention that a downward revision of the 1950 quota of 7,500,000 short tons was under consideration, but no action has yet been announced in this respect. Cuban production to March 15, 1950, was reported as 2,997,000 short tons, as compared to 2,750,000 short tons in 1949. We give below the quotations on the New York Sugar Exchange as of March 24 for Contracts Nos. 4, 5, and 6: ENGINEERING EQUIPMENT r> & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING DESIGN — APPLICATION - ESTIMATES INSTALLATION - MAINTENANCE — SERVICE REPAIRS General & Sales Office 1 74 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ 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. 6-65-68 154 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1950 Contract Contract Contract No. 4 No. 5 No. 6 May.................................... ............. 4.40 5.06 5.04 July..................................... ............. 4.42 5.13 5.12 September......................... ............. 4.42 5.16 5.17 November......................... — 5.19 January.............................. ............. 4.24 — — March................................. ............. 4.09 — — Local Market, (a) Domestic Sugar:—During the month there was an easier tendency in the domestic sugar market, and at the close of the month centrifugal sugar, 97° polarization, was quoted by the Bureau of Commerce at P14.80 as against P15. to P15.20 at the beginning of the month. Washed sugar, polarizing 99°, quoted at P18 to P18.50 in February, is now quoted at P17.50 to P17.80. (b) Export Sugar:—There was little movement in the export quotations during the month following the dull con dition of the New York market. The month opened and closed with prices ranging from P13.30 to P13.55. Tobacco By Luis A. Pujalte Secretary-Treasurer, Manila Tobacco Association STOCKS of leaf tobacco in Manila at present are very low and factories are finding it difficult to obtain sufficient leaf to meet the greatly increased demand for manufactured tobacco products. Prices have gone up almost 100% above the prices paid late in November of 1949. The export of leaf tobacco during 1949 amounted to approximately $2,200,000, the highest since the liberation, but under present conditions it will be impossible to export tobacco this year or for some years to come as the crops can not be made to increase to the extent at which abundant stocks can be maintained and the prices brought down to world-level. The Manila Tobacco Association, through its Pres ident, Jose Ma. Rosales, has requested the Central Bank to authorize the importation of 20,000,000 pounds of Vir ginia leaf, additional machinery and spare parts, cigarette paper, and other materials amounting to approximately $8,000,000 in cost, necessary to stabilize the industry and to make it possible to export a part of the 40,000,000-pound crop expected this year so that the industry will be able to maintain its foreign markets. Leaf tobacco formerly was always an export product of the Philippines, but, due to the short crops since the liberation and the high prices, many of our good customers in the past have not been able to buy our product. Some countries have bought only in limited quantities and others nothing at all during the past ten years. Ten years is a long time and the smoking public in our former customer countries is already used to smoking to bacco from other countries than ours. Unless we can con tinue to export at least in small quantities we shall lose our foreign markets for leaf tobacco entirely and meet with extreme difficulty in regaining them again in the future. Imports By Louis S. Kraemer Vice-President, Mercantile, Inc. PHILIPPINE importation of Japanese goods steadily increased throughout the year 1949. The Robot Statistics has recently completed a study of this trade and split the study into four booklets covering the four quarters of the year. I i. TWICE AS STRONG AS ANY OTHER BELT BUILT! THE steel-cabled Goodyear Compass 250 bell is the toughest, longest-wearing transmission belt ever built— delivers 37 H.P. per inch of width . . . twice the power of the best belt built previously. For your belt drive require ments—whether for transmission or transport—consult the Goodyear Technical man. There’s a special Goodyear belt to fit your needs. BELTS PACKING HOSE good/Vear Telephones: 3-32-16, 3-38-07, 3-38-08 I April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 155 An indication of the increase of Japanese imports is the fact that the booklet covering the 1st Quarter contains 17 pages whereas the succeeding quarters contain 25, 36, and 83 pages respectively, the 4th Quarter booklet being five times the size of the 1st. Some of the most prominent items are bicycles, elec tric insulators, nails, bolts, clocks, porcelainware, aluminumware, sewing machines, aluminum sheets, galvanized iron sheets, rods and bars, fresh pears, fresh garlic, fresh onions, fresh potatoes, dried fish, cigarette paper, toys, chucherja, cotton goods, cotton knit goods, and fish nets. Whereas in the early months of 1949 there was still considerable consumer prejudice against goods of Japanese origin, the feeling rapidly diminished during the latter part of the year. This has been largely due to the low cost of the Japanese articles which more comfortably meet the relatively small pocket-book of the average individual Filipino consumer. Recently, the Philippine Government has adopted, a policy of not permitting dollar exchange for Japanese im ports in order-to try to develop some sort of barter arrange ment or trade agreement. There has been no definite accomplishment in this direction up to the time of this article. All figures shown below are in kilos with the exception of those for foodstuffs which are given in package units (excluding the figures for the totals). Com modi ties February 1950 February 1949 Trucks..................................................... 54,191 Truck Chassis........................................ 181,319 Building Materials (Total)................... 7,643,084 Board, Fibre........................................ 24,849 Cement................................................... 4,372,791 Glass......................................................... 949,977 Plumbing, Misc..................................... 1,072,420 Chemicals (Total)..................................... 4,079,404 Caustic Soda............................ 794,988 Explosives (Total).................................... 10 Firearms, (Total).................................... 6,459 Ammunition............................................ 2,050 Hardware (Total)..................................... 5,070,021 Household (Total).................................... 680,242 Machinery (Total)................................... 1,295,205 Metals (Total)............................................ 14,274,080 Petroleum Products (Total).................. 87,226,453 Radios (Total)............................................ 23,231 Rubber Goods (Total)............................. 1,837,003 Beverages, Misc. Alcoholic.................... 270,003 Foodstuffs (Total kilos).......................... 13,575,849 Foodstuffs, Misc. (Total).................... 408 Foodstuffs, Fresh (Total)....................... 25,335 Apples...................................................... 700 Oranges..................................................... — Onions...................................................... 8,500 Potatoes................................................... 2,555 Foodstuffs, Dry Packaged (Total).. . . 6,697 Foodstuffs, Canned (Total).................... 174,874 Sardines................................................... 304 Milk, Evaporated................................. 108,881 Milk, Condensed................................... 26,309 Foodstuffs, Bulk (Total)........................ 340,839 Rice........................................................... 221 Wheat Flour........................................... 309,092 Foodstuffs, Preserved (Total)............... 168 35,769 534,618 14,926,045 345,864 7,203,183 1,114,632 2,692,864 12,441,021 7,932 38,732 19,527 7,722,045 2,888,165 2,252,816 12,639,712 43,547,889 133,039 1,657,282 569,017 23,878,101 13,592 164,955 32,040 10,210 34,525 11,698 76,132 347,574 66,046 74,256 14,347 273,141 500 177,864 2,131 Automotive (Total)............................... Automobiles........... .............................. Auto Accessories................................. ” Parts.............................................. Bicycles................................................... 1,185,248 191,895 638 225,760 5,603 1,794,437 478,915 21,297 470,263 50,588 Bottling, Misc. (Total)........................... 1,587,222 Cleansing and Laundry (Total)........... 636,162 Entertainment Equipment (Total) . . . 3,289 Livestock — Bulbs — Seeds (Total).. 5,276 Medical (Total).......................................... 607,032 3,821,153 248,127 27,419 663 635,339 INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS -------------------- *--------------------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila D. C. Chuan & Sons, Inc. 14-30 Soler St. Manila insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE-. 401 FILIPINAS BUILDING 156 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1950 Musical (Total)......................................... 20,722 95,095 Office Equipment (Total)...................... 104,831 196,210 Office Supplies (Total)............................ 23,514 69,946 Paper (Total)............................................. 5,480,424 4,849,606 Photographic (Total)............................... 52,382 54,862 Sporting Goods (Total).......................... 21,605 38,119 Stationery (Total).................................... 198,170 352,342 Tobacco (Total)........................................ 400,455 752,326 Chucheria (Total)..................................... 80,239 207,612 Clothing and Apparel (Total)............. 196,541 790,353 Cosmetics (Total)..................................... 42,089 487,774 Fabrics (Total).......................................... 430,026 622,736 Jewelry (Total).......................................... 255 168 Leather (Total).......................................... 241,156 251,878 Textiles (Total)......................................... 1,605,707 476,595 Twine (Total)............................................ 18,237 86,484 Toys (Total).............................................. 6,077 56,594 General Merchandise (Total)............... 454,090 701,442 Non-Commercial Shipments (Total). . 25,391 46,164 Advertising Materials, Etc. (Total).. . 7,494 820,784 As to some of the principal imported foodstuffs, the figures, in somewhat greater detail, follow: February February 1950 1949 14,514 kg. 15,358 kg. 25,670 14,766 kg. 108,922 kg. 24,354 cases 95,850 kg. 1,188,847 kg. — 23,397 cases 2,948 kg. 1,123,308 kg. — 26,010 kg. 115,137 kg. 541,565 kg. 480 cases 4,650 cases 304 66,046 cases Butter.................................................... Butter canned..................................... Cheese.................................................... Coffee..................................................... Corn Starch.......................................... Grapes — Fresh.................................. Green Coffee........................................ Meat and Poultry.............................. Potatoes................................................ Pork and Beans................................... Sardines................................................. Fresh fruit, only 700 cases of apples. Fresh fruit, only onions, potatoes and taro. No canned meat or canned meat products except 500 cases corned beef. No seasonings, no canned vegetables. Automobiles and Trucks By Karl E. Gay Safes Representative, Ford Motor Company THE accompanying tables of sales reported by the various automobile dealers in January, 1950, as against the sales in January, 1949, show the reduc tion in sales, particularly in the provinces, where sales reported were less than half those of the preceding year. The demand for automotive products continues strong in spite of uncertainty regarding possible imposition of further import restrictions. Most dealers are in a depleted stock position, with no certain knowledge as to replenish ment. Although some licenses to import passenger cars were issued during the month of March, covering the first four months of the year, as yet none of these units have arrived in the Islands. Report of Sales, January, 1950, Compared with Same Month, 1949, Metropolitan Area of Manila and Northern Luzon MAKE CARS Jan. 1949 TRUCKS TOTAL Jan. 1950 1949 1950 Jan. 1949 Jan. 1950 Ford.................... 33 42 114 64 147 106 Mercury............. 23 8 23 8 Lincoln............... 4 4 4 4 Prefect................ 4 1 4 1 Chevrolet........... 34 110 60 119 94 229 Buick................... 3 12 3 12 Cadillac.............. 3 3 Pontiac............... 11 3 11 3 Oldsmobile......... 19 2 19 2 G.M.C................. 6 3 6 3 Chrysler............. 1 13 1 13 DeSoto................ 22 17 4 2 26 19 Plymouth........... 29 9 29 9 Dodge.................. 21 11 23 6 44 17 For the protection needs of every business, profession, or home . . . 4 Underwriters’ Approved Relocking Device Label 7 sizes. Standard Interiors. In olive green and grey. JFc invite you to see them today—or write for details. it Constructed of high tensile steel, completely insulated for resistance to fire up to 17009 F. for one hour ¥ They carry the “C” label of the Underwriters’ Laboratories, Inc. 1104 CASTILLEJOS QUIAPO, MANILA TELEPHONE 3-22-51 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 157 Fargo................... 8 3 8 3 International 74 14 74 14 Willys.................. 10 2 8 5 18 7 Packard .............. 4 1 4 Nash.................... 13 5 13 5 Studebaker........ 5 8 4 1 9 9 Vauxhall............. 1 1 Hudson............... 1 1 1 1 Fiat...................... 9 .9 White.................. 1 1 Reo...................... 1 1 Austin................. 1 1 Grand Total.. 241 249 311 219 552 468 Report of Sales, January, 1950, Compared „T„ Same Month, 1949, Provinces MAKE CARS TRUCKS TOTAL Jan. Jan. Jan. Jan. Jan. Jan. 1949 1950 1949 1950 1949 1950 Ford.................... 37 9 109 35 146 44 Mercury............. 16 1 16 1 Lincoln............... 2 2 Prefect Chevrolet........... 10 18 73 52 83 70 Buick................... 1 1 1 1 Cadillac.............. 1 1 Pontiac............... 1 1 Oldsmobile......... G.M.C................. 3 2 3 2 Chrysler............. DeSoto............... 3 3 Plymouth........... 2 2 Dodge................. 4 2 2 4 4 Fargo................... 6 6 International. . 43 5 43 5 Willys................. 4 1 2 5 2 Nash .................. 1 1 Grand Total.. 75 38 229 104 304 142 Report or Sales, January, 1950, Compared with Same Month, 1949, Philippine Total MAKE CARS TRUCKS TOTAL Jan. Jan. Jan. Jan. Jan. Jan. •. 1949 1950 1949 1950 1949 1950 Ford.................... 70 51 223 99 293 150 Mercury............. 39 9 39 9 Lincoln............... 6 4 6 4 Prefect................ 4 1 4 1 Chevrolet........... 44 128 133 171 177 299 Buick................... 4 13 4 13 Cadillac.............. 3 1 3 1 Pontiac............... 12 3 12 3 Oldsmobile......... 19 2 19 2 G.M.C................. 9 5 9 5 Chrysler............. 1 13 1 13 DeSoto................ 22 20 4 2 26 22 Plymouth........... 29 11 29 11 Dodge.................. 25 13 23 8 48 21 Fargo................... 8 9 8 9 International. . . 117 19 117 19 Willys.................. 14 2 9 7 23 9 Packard.............. 4 1 4 1 Nash.................... 13 6 13 6 Studebaker........ 5 8 4 1 9 9 Vauxhall............. 1 1 Hudson............... 1 1 1 1 Fiat...................... 9 9 White.................. 1 1 Reo...................... 1 1 Austin................. 1 1 Total 316 287 540 323 856 610 Subscribe to the JOURNAL To Keep Your Files Complete PERSONALLY YOURS. 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A new high in pumping Designed for waler Fairbanks-Morse PROPELLER PUMPS efficiency ... a new low in Other Fairbanks-Morse Lines—DIESEL EN GINES .GENERATORS • ELECTRIC MOTORS • SCALES • LIGHT PLANTS • MAG NETOS • WINDMILLS • FARM EQUIPMENT Inquiries are invited. Exclusive Distributors ATLANTIC, GULF & PACIFIC CO. OF MANILA MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muelle del San Francisco & 23rd St. Port Area. Manila Tel. 3-36-61 (Connecting all Depts.) Food Products By C. G. Herdman Director, Trading Division, Marsman Co., Inc. THE only development of particular interest during the month of March in connection with food pro ducts was Executive Order No. 305 signed by Pres ident Quirino on March 17. Under this executive order the regulation of importation of wheat flour was delegated to the Philippine Relief and Trade Rehabilitation Adminis tration (PRATRA) pursuant to the rules and regulations to be promulgated by the Philippine Wheat Flour Board. This Board is composed of the General Manager of PRA TRA as Chairman, a representative each of the Depart ments of Commerce and Industry, Foreign Affairs, and the Central Bank of the Philippines, and the President of the Chamber of Commerce of the Philippines. During the last week of March the Philippine Wheat Flour Board issued Circular No. 1 with the preliminary rules and regulations covering the importation of flour under I.W.A. This circular is undated but states that it is effective as of March 17, 1950. All entities interested in flour importations immediately filed applications for im port allocations with the P. W. F. B. but up to the present date (April 1) no allocations or import licenses for flour have as yet been granted to any applicant as far as can be learned. Circular No. 1 of the P. W. F. B. followed very closely Executive Order No. 305, but is in direct conflict with the latter in one point. Executive Order No. 305 in sections 9 and 14 provides that flour shipments covered by payments made by the importer prior to March 17 or covered by letters of credit issued prior to that date and in inland transit from point of origin, on dock, on lighter, or on ex porting vessel on March 17, shall be admitted into the country but charged against present or future quotas of the importer. Circular No. 1 of the P. W. F. B. in section 11 sets back this date and makes the order retroactive to February 27, 1950. There are certain quantities of flour en route to the Philippines purchased and paid for before March 17 which, under the terms of Executive Order No. 305, will be permitted to enter the Philippines, but under the terms of Circular No. 1 will not be permitted to enter. Clarification of this point has been requested of the P. W. F. B. but no reply has yet been made public. The procedure to be followed by the P. W. F. B. in making import allocations is not very clear from the wording of Circular No. 1, and all entities concerned in wheat flour importation are anxiously awaiting issuance of quotas to see just what procedure will be followed in actual alloca tion. There are very small quantities of flour now en route to the Philippines and no new orders have been placed during recent weeks, nor can there be till such time as flour quotas are allocated and import licenses. issued. Fortu nately we are at the period of lowest monthly consumption of flour, otherwise a serious shortage of flour would cer tainly develop before new shipments under P. W. F. B. could be imported. Jhffects in general of the import and exchange controls are becoming more apparent every day as stocks in the hands of importers are exhausted and replenishment of supplies of essential foods is impossible to secure in the necessary quantity. Many items of foodstuffs are disap pearing from the shelves of even the larger groceries. The smaller stores have smaller assortments every day and as they cannot secure replenishment stocks, in many cases such stores are being forced to discontinue business. Many items of which the store may have a small stock are with drawn from the shelves and only made available to pre ferred customers and then frequently at prices which would April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 159 be termed exceedingly high even if they may not be “black market.” This condition will probably become steadily worse as reserve supplies are disposed of. Conditions have been very greatly worsened by the extreme delays in issuance of import quotas and import licenses by the Import Control Board to bona fide im porters clearly entitled to import allocations under the law. Up to the present, only a small portion of the applica tions for import quotas have been acted on by the Import Control Board, and this although four full months have elapsed since the new import controls went into effect. ’ Another point now arises to perplex importers. It was generally understood previously that when import permits were issued by the Import Control Board, being in very limited quantities compared with previous importations, exchange would be available to cover imports under license. The Central Bank has now issued a circular advising all concerned that applications for special ex change license will be necessary to cover each order to be placed under import license and that such applications will have to be forwarded to the Central Bank for its consideration and decision. Cupplies of canned fruits and vegetables are extremely short in supply in the Philippines. Unfortunately, locally grown substitutes are far from sufficient in quantity to supply the demand, and prices of local produce are also increasing greatly. There are still sufficient stocks in the market of canned meat and of canned fish, but it is apparent that these will also be on the short side before long. Canned milk continues in ample supply. Fresh fruits and vegetables have been the most difficult of all foodstuffs to obtain in recent weeks and when available were extremely highly priced. Onions, for instance, were not to be found in many grocery stores and when available were priced at from P.80 per kilo up, although replacement cost from abroad is less than P.15 per kilo. Potatoes have been still shorter in supply and at correspondingly higher prices. Textiles By L. W. Wirth General Manager, Neuss, Hesslein Co., Inc, IN previous’ issues of the Journal we explained, contrary to the opinion in some quarters, that the Philippines is not over-supplied with cotton and rayon textile fabrics, as the post-war imports only averaged about 134,000,000 square yards yearly, as against pre-war imports of 160,000,000 square yards. Due to the delay in issuing import quotas for the first quarter of 1950, there were very few arrivals during March, with the result that a shortage in some important fabrics is now developing. This situation will become acute when the full effect is felt of the drastic cut of 75% to 95% in the imports of textile fabrics, as provided for in Executive Order No. 295. It must be realized that both cotton and rayon fabrics are essential to the well-being, health, and need of the people, and in this connection we quote from President Quirino’s “fireside chat” to the nation over the radio on March 16: “Our enemies within are three: complacency, defeatism, and des pair. To combat these enemies, we must bestir ourselves, morally and physically — morally, by acquiring the spiritual disciplines of civic duty and national unity, and physically, by engaging in every useful and productive enterprise in order to provide for every family food, clothing, and shelter in an atmosphere of peace that inspires internal security.” This emphasizes the importance of adequately clothing the people and re-emphasizes the desirability of reappraising the percentage cuts imposed on textiles in Executive Order No. 295 to ensure sufficient supplies of both cotton and rayon fabricsALCOHOL DISTILLERIES SUPPLIED TO I •LA CARLOTA SUGAR CENTRAL •CANLUBANG SUGAR ESTATE •CENTRAL AZUCARERA de BAIS •LOPEZ SUGAR CENTRAL MILL CO. •BINALBAGAN ISABELA SUGAR CO. •SAN CARLOS MILLING CO. I Manufacturers: OSCAR KRENZ INCORPORATED BERKELEY, CALIFORNIA; U. S. A. / SOLE REPRESENTATIVE IN THE PHILIPPINES THE EDWARD J. NELL CO. 1450 ARLEGUI, MANILA TEL. 3-21-21 160 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1950 Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso S’ Janda IN February the Supreme Court promulgated another decision relating to expropriation of private property (City of Manila vs. Arellano Law Colleges No. L-2929, February 28, 1950). The Court reiterated the principle that cities have the power to expropriate lands for home sites but that such power is limited. The Court again called attention to the slum clearance cases in New York in which the following language was used: “x xx The highest court of New York State has ruled that slum clearance and erection of houses for low-income families were public purposes for which New York City Housing authorities could exercise the power of condemnation. And this decision was followed by similar ones in other states. The underlying reasons for these decisions are that the destruction of congested areas and insanitary dwellings dimi nishes the potentialities of epidemics, crime and waste, prevents the spread of crime and diseases to unaffected areas, enhances the physical and moral value of the surrounding communities, and promotes the safety and welfare of the public in general, x x x “The condemnation of a small property in behalf of 10, 20 or 50 persons and their families does not inure to the benefit of the public to a degree sufficient to give the use public character. The expropriation proceedings at bar have been instituted for the economic relief of a few YOUR electrical servant, Reddy Kilowatt, has been doing some fast growing the past year. By the end of 1950 he is going to be 160% stronger than before the war. It is taking about fifty million pesos (P50,000,000) to build him up to that muscle power. It’s going to take a lot of money, men and materials to build our capacity up to what we expect electrical needs will be in the future. But that’s part of our job—to be there with the kilowatts when and where you want them. MANILA ELECTRIC COMPANY families devoid of any consideration of public health, public peace and order, or other public advantage. What is proposed to be done is to take plaintiff’s property, which for all we know she acquired by sweat and sacrifice for her and her family’s security, and sell it at cost to a few lessees who refuse to pay the stipulated rent or leave the premises.” Qn March 4, 1950, another insurance case was decided and the "abnormal conditions” clause was held to absolve the insurance company. The Court said: “On January 2, 1942, when the bakery owned by plaintiff was destroyed partially by fire, the conditions in Manila were entirely abnormal on account of the war. In the stipulation of facts submitted by the parties, it is stated that in the city of Manila from December 29, 1941, up to January 3, 1942, due undoubtedly to the evacuation of the Philippine and U. S. Army and to the imminence of Japanese invasion, the conditions of peace and order were totally abnormal and beyond control for they were characterized by panic and confusion and ac companied by unchecked looting, uncontrolled mobs, and outbreaks of fire. From December 8, 1941, to January 4, 1942, there had been at least fifty (50) fires in Manila and on January 2, 1942, there had been at least eight (8) fires in the city. And on January 6, a fire gutted the building opposite and directly in front of the bakery owned by plain tiff. Since two thirds (2. 3) of the population and two thirds (2. 3) of the police force of the city had evacuated to the provinces, many houses were left without vigilance and were the subject of general looting, and fire, in several instances, was the consequence. Looting and robbery were rampant in the city because only a handful of police men were left and they were generally ignored by the mob of looters. Fires breaking out in houses being looted were beyond control because a great portion of Manila’s firemen had also evacuated to the provinces or failed to report for duty in fear of imminent danger and calls for assistance received no response from the fire department. “The fire which destroyed partially the bakery in question, came from a grocery that was being looted. Such fire was the effect of abnor mal conditions caused by war.” The Court also upheld the one-year time-bar clause in the following language: “There is another reason why plaintiff’s action should be dismissed. In paragraph thirteen (13) of the Policies it is stipulated that ‘if the claim is made and rejected and an action or suit be not commenced within twelve (12) months after such rejection ... all benefit under this Policy shall be forfeited.’ According to the stipulation of facts, plaintiff’s claim was rejected on February 1942, and yet the complaint in this case was filed on May 22, 1946. The action, therefore, is barred by the limitation agreed upon by the parties.” Tn a case involving the moratorium (Estate of Bachrach L-3592, February 27, 1950) the Court held the morator ium could be and had been waived. Involved was a claim on a promissory note payable on demand 120 days after the signing of the treaty of peace between Japan and the United States. Neither of these points was raised in the original hearing and the appeal was not taken until long after the time therefor had expired. The Court said: “This Court is unanimous in the opinion that inasmuch as the ex ecutrix recommended payment of the note and the order of payment based on such recommendation has become final and outstanding for several years, the moratorium may not now be invoked, her action be ing a waiver thereof, which may not be withdrawn at will. FOR RE WINDING OF GENERATORS—MOTORS CALL MOR I ELECTRIC CO.. IM’. Address: 170-2 M. de Comillas Tel. 3-21-85 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 161 “And although relief might possibly be extended under Rule 38 if it is proved that her waiver was made through mistake, etc., her failure to appeal the orders denying her petition based on such grounds pre cludes the grant of any remedy along that line at this stage of the pro ceedings.” Jn a case decided March 4, 1950, (Sia Suan et al vs. Alcantara) a minor joined in a deed to plaintiff: and nine years later sought to annul the sale and recover his undi vided interest in the land. There was nothing in the deed to indicate that the plaintiff was a minor. There was a conflict of testimony as to whether the vendee knew the plaintiff was a minor. The Court said: “x x x We are of the opinion that the Court of Appeals erred. In the first place, in the case cited, the consideration for the sale consisted in greater part of a pre-existing obligation. In the second place, under the doctrine, to bind a minor who represents himself to be of legal age, it is not necessary for his vendee to actually part with cash, as long as the contract is supported by a valid consideration. Since appellee’s conveyance to the appellants was admittedly for and in virtue of a pre-existing indebtedness (unquestionably a valid consideration), it should produce its full force and effect, in the absence of any other vice that may legally invalidate the same. It is not here claimed that the deed of sale is null and void on any ground other than the appellee’s minority. Appellee’s contract has become fully efficacious as a contract executed by parties with full legal capacity.” Three justices disagreed with the majority opinion and stated that the minor’s contract was invalid but voted to concur in the result on the ground that the minor’s rights were barred by reason of his failure to bring action within four years after he became of age. Philippine Safety Council By FrankS. Tenny Executive Director IT is significant in the extreme that the largest single accident cause for each year was the same — Improper Passing. Reasons for this condition are numerous, in cluding impatience with slow moving traffic, poor judge ment of the speed of approaching vehicles by drivers, and others. However there is little doubt that the main cause is psychological and reflects the impetuousity and irrespon sibility of many drivers. It is believed that this can be improved by (1) continued safety-education efforts and (2) more strict examinations of applicants for new and renewed driver-operator permits. The second most frequent cause, Failure to Yield the Right of Way, reflects the lack of courtesy prevalent on our roads. Continued educational efforts may reduce this figure, but it is believed that only (1) an improvement in general courtesy and (2) strict enforcement of traffic regula tions by police will result in marked improvement. MOTOR SERVICE CO, INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area Tel. 3-36-21 ...WHEN YOU JUST HAVE TO GET THE PICTURE... use the all-weather film! Ever been disappointed when that “once-in-a-lifetime” picture op portunity turned out to be a flop? 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PORT AREA ’ TEL- 3"37'53 Branches l Bacolod • Hollo • Cebu • Davao • Cotabato • Zamboanga J 162 AMERICAN CHAMBER OF COMMERCE JOURNAL FERTILIZERS SULPHATE OF AMMONIA SUPERPHOSPHATES SULPHATE OF POTASH MENZI & CO., INC. Iloilo MANILA Cebu J. M. MENZI Bldg. Corner Reina Regente & Soler Streets Tel. 2-79-29 SUPERIOR GAS & EQUIPMENT CO. TELS: 6-61-02 & 6-75-29 P. O. BOX 2507 MANILA MANUFACTURERS OF: • Highest Quality OXYGEN & ACE TYLENE GASES For All Welding Purposes • SUPERFLAME Bottled & Tank Gas for all Cooking Purposes — Complete Installation & Service facilities • CARBON DIOXIDE In liquid form for bottled drinks CARBON DIOXIDE “Superfris” Solid form for Frozen Food preserva tion CARBON DIOXIDE In liquid form for Fire Extinguishers • HYDROGEN GAS For Balloons & Underwater cutting of Steel Distributors of NATIONAL CAR BIDE, WELDING EQUIPMENT & SUPPLIES — “STOODY” Welding Rods For hard surfacing of imple ments — Machinery parts — TAPPAN AUTOMATIC GAS RANGES The third “winner on the hit parade” is Following Too Closely. This is a complex cause, contributed to by poor arm signals, poor brakes, poor judgment of the speed of both the driver’s vehicle and that of the vehicle ahead, and congested traffic conditions which tend to keep vehicles close together. Probably the main effort toward improve ment should be education of drivers in the matter of “stop ping distances”, taking into consideration both the reac tion-time of the driver and the braking-distance of the vehicle. Again, this is a problem for the agency which exa mines applicants for new and renewed vehicle operator’s permits. The next several causes fall into a close group (1730 to 2188 for four years) and can be treated together. They are Speeding, Cutting-in, Operating Defective Vehicle, and Improper Turns. Three of them are more or less similar in nature, but the defective-vehicle total is unique. How ever, this offense is steadily declining due to the presence of newer vehicles on our roads and, if the trend continues, should be down to a more normal figure in 1952 or 1953. The creation of the industrial vehicles examination section of the new Bureau of Industrial Safety will assist greatly in this connection. MANILA TRAFFIC ACCIDENT REPORT Types of Violation 1946 1947 1948 1949 Totals 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Improper passing.......................... Failing to yield right of way. .. Following too closely................... Speeding.......................................... Cutting-in........................................ Operating defective vehicle.... Improper turns............................. Hit and run.................................. Driving on wrong side of road.. Disregarding traffic sign............. Failure to give signal................... Improper start from parked.. . . No driver license......................... Driving under influence.............. Improperly parked....................... Drove through safety zone........ iSd Chitf StatisHcim FelSTcw? SWAN, CULBERTSON & FRITZ, INC. MEMBER—MANILA STOCK EXCHANGE 701 S. J. WILSON BLDG. TELS I 2-74'55 143 JUAN LUNA ' | 2-80-53 April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 163 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 It*1* Food (59.15) (8.43* Cloth ing (0.62) Fuel, Light and Water (13.94) Miscel laneous (17.86) ing Power January.......... 603.4 759.2 236.4 984.0I 363.8 434.8 .1657 February........ 547.2 656.3 236.4 940.31 369.5 460.5 .1827 March............. 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April................ 556.2 684.1 236.4 910.3• 345.5 435.9 .1798 May................. 545.1 675.6 236.4 762.5i 342.3 409.6 .1835 June................. 538.7 666.4 236.4 737.9i 343.3 404.2 .1856 July................. 552.7 704.3 236.4 598.9i 341.3 364.6 .1809 August............ 477.9 590.0 236.4 384.7 320.9 346.3 .2092 September. . . 477.9 591.3 236.4 378.7 314.5 347.2 .2092 October.......... 487.4 587.2 236.4 382.7 405.8 342.7 .2052 November.... 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December.... 461.9 570.8 236.4 371.9' 344.7 302.1 .2165 1947; (100.00) (63.43) (11.96) (2.04) (7.73) (14.48) 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 September. . . 333.6 345.1 453.9 190.3 264.8 243.1 .2998 October......... 332.9 343.3 453.9 199.9 264.8 245.0 .3004 November.... 339 6 356.1 453.9 191.1 258.4 239.8 .2945 December ... 329 6 335.9 453.9 202 9 259.5 256.2 .3035 1950 January .... 332.3 336 8 453 9 238 0 253.1 269.3 .3010 February . . . . 336.9 340.2 453.9 233.3 257.8 284.1 .2969 March........... . 339.0 341.4 453.9 236.7 257.8 292.6 .2950 ' Average number of persons in a family = 4.9 members. Revised in accordance with the new survey on the "Levels of Living, :n Manila” by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. AGENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama Cable Address: 203 Myers Bldg. “AMERSHIP” Port Area Manila SILVER & JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. 2 JAVA PACIFIC LINE N. V. S. M. "NederlandAmsterdam Koninklijke Rotterdamsche Lloyd, N. V. Rotterdam KERR STEAMSHIP CO., INC. Geneial Agents 17 Battery Place New York MANILA JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York ILOILO CEBU To and From SEATTLE VANCOUVER LOS ANGELES and SAN FRANCISCO PORTLAND To and From CALCUTTA. BOMBAY and PERSIAN GULF PORTS ♦ ♦ ♦ PRINCE LINE, LTD. FROM U. S. ATLANTIC AND PACIFIC 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 Insist on G-E Lamps GENERAL^ ELECTRIC PORT AREA (P.I.) INC. MANILA A Product of General Electric Co., U.S.A. 164 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1950 * A Field Warehouse of Luzon Brokerage Company can be of great service in your 1950 financing. ¥ Enquire of your Banker or consult L B C. All enquiries in confidence. Telephone 3-34-31 ¥ The “LET YOUR HAIR DOWN” - ■ ---- - -. —■ = Column Though this Journal is a monthly periodical, we take pride in the fact that every new issue is apparently considered news by those who know what news is; most of the news agen cies in Manila go to the trouble of sending to our office to get their copies as soon as an issue is delivered to us by the printers, instead of waiting until they get their mailed copies, this making a difference of only a day or so. Of course, the “facts, trends, forecasts” brought out each month- by some twenty or more of our leading businessmen, are of interest and therefore of news-value at the time of publication, and then there is the convenience of having a great many facts and figures brought out together at one time in one pub lication and arranged for easy reading and reference. There is also the personal and name - interest as to what so-and-so has to say this time on this or that. “Be careful whom you call so-andso’s”, said the editor. “They might not like it.” Worried note from Marie (Mrs. Willimont, Executive Vice-President) to the editor: “Mr. H—: "A rather unfortunate omission in the Journal’s full-page ad of the Chamber. The name of Mr. Most was left out. I apo logized to Mr. Most, but I suppose some thing should be said about it in the next issue? “Marie” The editor checked and found that Mr. Most’s name was missing not only in the Chamber ad in the March issue, but also from that same ad run in the February issue! The editor knows very well that that is not the way to treat a Director, and he has tens to assure everybody that it certainly is not the case that he re fuses to recognize Mr. Most as a Director, as is proved by the fact that Mr. Most’s name occurs as a member • of the Board of Directors in the Journal masthead on the front cover. Mr. Most is one of the best friends the Journal has, and one of the most helpful. And as for the personal relations between him and the editor, let it be known that only a few weeks ago he sent the editor a box of very good cigars, for which the editor would recognize almost anybody. In fact, it was probably the smoke from one of those cigars that got into his eye when he was reading the proof on that ad the first time, and he confesses that when it was run a second time he hardly looked at it at all. And whether smoke got in his eyes or not, every one would admit that there are many much nicer things in the world to look at than printers’ proof. Of course, that is not a complete excuse. A man ought to keep his eyes on his work. “Well, well,” said the editor. “Here is something that proves again that ambition has its reward and ability finds its level. Look at this.” "Dear Mr. Editor: “You will probably remember the letter I wrote you some years ago, signed, ‘Ambi tious Office Boy’, asking you for a job as a researcher. Also later letters, telling you of my difficulties with the assignments you gave me. In the end you ‘ fired’ me in a rather rough way, but I bear you no ill will for that. It was the making of me. I studied hard at night school, and now, what do you think I I hold a responsible position in the Import Control Board office I There are very many papers and I must work and work and DARGAN & CO., (FAR EAST) LTD. FIRE ADJUSTERS and MARINE & CARGO SURVEYORS Natividad Building, Manila Cab/er NAGRAD Head Office: 110 William St., New York Branch Offices: Atlanta - Baltimore - Jacksonville • Miami • London • Sanjuan • Havana • Ciudad Trujillo • Port-au-Prince • Mexico • Caracas * Barranquilla • Cali • Medellin. CORRESPONDENTS WORLDWIDE April, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 165 work and work, but I am getting along fine and my sister is very proud of me when I come home all worn out because I still have to walk home. But I am getting ahead and one of these days I’ll be a real 'Big Shot’, riding around in a P. I. car. I am sorry the businessmen are having so much trouble, but I do the best I can for them. They have headaches and I have headaches, but now I am the 'Arrived Office Boy’, — yes?” “Ha, ha!” exulted the editor one morning. “At last someone tells me he was amused by something in the Hair-Down Column. Look at this...”, and he handed us the following letter: “Dear Mr. Editor: “I was amused by your joke in the 'HairDown Column’ about your favorite whiskeys, — bourbon, scotch, and blended, and in reci procation let me tell you of something funny in connection with drinks that happened in a hospital in my presence the other day. "A friend of rrtine had undergone a rather serious operation, and some hours later told the nurse that he would like to have a drink. “‘Oh,’ said the nurse, ‘the doctor does not permit that!’ “ ‘Young lady,* said my friend (who is not a ‘drinker’), ‘all I want is a drink of water or maybe a cup of tea!’ “ 'Ah’, said the nurse, ‘that’s all right,’ and she brought him a glass of water. ‘‘Now I maintain that nurse knew her English (or American) as well as her Amer icans. She must have learned long ago that when an American wants a glass of water, he generally asks for a glass of water, when he wants tea, he asks for tea, when he wants a C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS—AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE I VARAN LINES—FAR EAST SERVICE (Holter-Sorensen—Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE a YOUNG New York V. MULLER Kobenhavn, Denmark Head Office: 5TH FL., INSULAR LIFE BLDG MANILA, PHILIPPINES TEL. 2-87-29 2-96-17 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUG ARCRAFT" all offices beer, he asks for beer. But when he says he wants a drink, then nine times out of ten he means that he Wants whisky. “And I say it is a deserved honor that of all drinks, whisky, even more than water, is denoted by the generic term, ‘drink’.” “My dear Mr. Editor: “What’s the meaning of all this free ad vertising you are handing out to the whisky people? I would think that you would be careful about being fair to the beer people and the Coca-cola, Pepsi cola, and Bireley people, all of whom, I think, are advertisers in your Journal. And what about the coffee people and the tea people?” “Too much people”, said the editor, starting to tear up the letter. “I was not trying to be ‘fair’. I was just saying something in praise of whisky now that it is becoming harder and harder to come by.” He looked again at the half-torn sheet, and read: "And are you being fair to the government people who have to raise taxes somehow from the people, for the people?” “Gad!” said the editor. “And are you being fair to yourself as one of the people? One of the leaders, I may say, of the people? Do you wish to appear to be a drunk before the people?” “Lordy, Lordy!” groaned the editor. “As far the undersigned is concerned. I think plain, pure water, abundant and cheap, is best for the people.” The editor groaned again, then shrieked when he came to the signa ture, — a Mr. Poblacion from the People’s Homesite Corporation. The editor received the following letter from one of the column editors of the Journal, Louis S. Kraemer (“Imports”): "Confirming my verbal advice to you, I am leaving for a visit to California by steamer on or about April 30. The duration of my stay will be somewhat dependent on my progress in setting up the weekly newsletter service which I told you about. “The opinions of local businessmen with respect to this have been quite encouraging. If we meet with sufficient interest among stateside firms to justify commencing pub lication, it would probably take me some Subscribe to the JOURNAL to keep your files complete time to accomplish a smooth-running organ ization and build up a subscription list. “During my absence, you may depend upon complete cooperation from my asso ciate, E. G. Schmelkes, and I am confident that the Imports Column will be handled as well if not better than usual. "In your May issue, my friend and brother columnist, F. M. Gispert, may wish to include an item under ‘Exports’,—'Kraemer, 68 kilos’.” We rather doubted that Mr. Gis pert would want to give Mr. Kraemer a classification all by himself under “Exports”, and in an office discus sion as to what classification he should be included in, “Empty cylin ders”, “Skins”, “Household goods”, and even “Junk” were mentioned. We thought that was perhaps funny, but certainly unkind, and after put ting up a stiff fight succeeded in obtaining unanimous agreement on “Transit cargo” as it was found to be a fact that we all hoped that Lou would come back before long. About Mr. Kraemer’s projected weekly newsletter covering business The NEW MB fully automatic calculator A. Simple to Learn...in less than 15 minutes anyone in your office can be taught to multiply, divide, add and subtract. B. Simple to Operate ... exclu sive touch-one-key operation permits writing answers, while the ne:;c problem is being calculated. C. Simple to Get...just telephone and arrange for a demonstration on your own work. Try before you Buy! TRADE AND COMMERCE BLDG .MANILA Tel. 2-69-71 166 AMERICAN CHAMBER OF COMMERCE JOURNAL April, 1950 conditions in the Philippines, to be published in the United States and circulated by private subscription among business firms there especially interested in the Philippine market, we think that might work out if the response on the part of such firms is favorable enough to warrant estab lishing a good organization for the purpose. Mr. Kraemer’s association with Mercantile, Inc. and the Robot Statistics Service, — “Robot” be cause the firm uses the highly deve loped automatic equipment provided by International Business Machines, has given him a knowledge of business conditions here and also places at his disposition the mechanical means for rapid and dependable descriptive and analytical work. Mr. Kenneth B. Day, co-editor with Mr. Manuel Igual of the “Copra and Coconut Oil” column, in sending in the article for this issue of the Journal informed us by letter that inasmuch as he expected to go on leave before the middle of April, this would be his “last report for the time being”, and that, inasmuch as Mr. Igual is also away, — “somebody else will have to carry on until our return. Mr. H. Dean Hellis, who will take over much of my work in my absence and who knows the situation very well, is willing to do this if you so desire. If you want Mr. Hellis to carry on, please let him know. In case he does, my suggestion is that inasmuch as neither Mr. Igual nor I will be here, the column should be in his name as Manager, Philippine Refining Co., Inc.” As with all our column editors, we have greatly appreciated Mr. Day’s cooperation with the Journal over a considerable period of time, going back to before the War, and this, as well as his concern about keeping the column going in his absence, indicates that he believes the work well worth while, as, we are sure, all the readers of the Journal do. The editor says that he, himself, though not in the copra or coconut oil business, always reads Mr. Day’s reports with “technical appreciation and delight as a writer” because the wording and style is always so terse and effective and so perfectly suited to the subject. He sent a letter to this effect to Mr. Day and also wrote Mr. Hellis thanking him for his willingness to carry on if we “so desired”, and saying that we cer tainly do. What would the Journal be without a copra and coconut oil column? What, in fact, would the Journal be without each and every one of its contributed columns? “There would still be the editorials,” the editor ventured with a modest air, — “and the Hair-Down Column.” “Bah!” said we. EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U.S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf Ports—Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. 2-98-46 (Priv. Exch. 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