The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XXVI (Issue No. 8) August 1950
Year: 1950
Language: English
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino Building — Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines Paul H. Wood, President; R. J. Newton, Vice-President; C. R. Leaber, Treasurer; J. H. Carpenter, Roy G. Davis, T. M. Knight, N. Most, J. A. Parrish, and E. E. Selph. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary Vol. XXVI August, 1950 No. 8 Contents Editorials— Secretary Romulo’s Economic Policy Speech............................................................................................................................................................................. 287 Romulo’s Tribute to American Business Pioneers..................................................................................................................................................................... 287 Some Elemental Truths from Governor Cuaderno.................................................................................................................................................................. 287 Immigration and Registration Fees 10 Times as Much as in the United States........................................................................................................... 287 Moving Away from Democracy..................................................................... 288 The World Issue.................................................................................................................................................................................................................................. 288 New Board of the Philippine Chamber of Commerce....................................................................... Letter from the Hon. Ild. Coscolluela and Reply......................................................................................... Membership of the U. S. Economic Survey Mission for the Philippines.............................................. The Philippine Economic Policy.......................................................................................... Economic Policy in Palestine . ......................................................................................................................... When the Santo Tomas Camp ^earned of the Death of President Quezon....................................... The “New Importer” Reservations on Non-quota Importations ..................................................... Secretary Carlos P. Romulo................ From Fortune................................................. A. V. H, Hartendorp................................... Chamber Press Release................................ 290 288 290 292 294 295 296 The Business View— Office of the President of the, Philippines............................................ ................ Banking and Finance................................................................................................................................... Manila Stock Exchange.......................................................:..................................................................... Credit..................................................................................................•............................................................ Electric Power Production.......................................................................................................................... Real Estate..................................................................................................................................................... Ocean Shipping and Exports...................................................................................................................... Lumber............................................................................................................................................................. Mines................................................................................................................................................................ Copra and Coconut Oil............................................................................................................................... Desiccated Coconut..................................................................................................................................... Sugar.................................................................................................................................................................. Manila Hemp................................................................................................................................................. Tobacco............................................................................................................................................................ Imports............................................................................................................................................................ Automobiles and Trucks............................................................................................................................. Food Products............................................................................................................................................... Textiles............................................................................................................................................................ Legislation, Executive Orders, and Court Decisions.......................................................................... Philippine Safety Council.......................................................................................................................... Cost of Living Index, 1946-1950 (Table)....................................................................................................... The "Let Your Hair Down” Column.............................................................................................................. Official Source.................................................... 297 R. E. Russell.................................................. 298 R. Ewing........................................................... 298 C. W. Muilenburg........................................ 299 J. F. Cotton..................................................... 299 A. Varias........................................................... 299 F. M. Gispert.................................................. 300 L. J. Reyes........................................................ 300 C. A. Mitke...................................................... 301 H. D. Hellis..................................................... 303 H. R. Hick......................................................... 305 G. G. Gordon................................................... 305 F. Guettinger................................................ 307 L. A. Pujalte................................................... 308 S. ScHMELKES.................................................... 308 K. E. Gay......................................................... 309 C. G. Herdman................................................ 310 L. W. Wirth........................................ 312 E. E. Selph....................................................... 313 F. S. Tenny....................................................... 315 Bureau of the Census and Statistics........... 316 .............................................................................. 317 50 CENTAVOS THE COPY KEEP'EM ROLLING! Mobilubrication now! STATIONS! AT MOBILGAS SERVICE ',ROtT.rnLE,MOlBl'-O|l-! As fewer new cars become available, many motorists will be using the same car for a longer period than in the past. It means you've got to give your car the best protection available. Call on your friendly Mobilgas dealer and tell him to give your car the finest kind of all 'round protection service -MOBILUBRICATION! Full protection of every chassis point with special Mobilgreases-the right amount, correct ly applied in accordance with your make and model of car - that's Mobilubrication! Mobilgasl standard-vacuum oil company P II I L I P P I N E S 7 Editorials “ . . . to promote the general welfare” We publish elsewhere in this issue of the Journal the speech delivered by Secretary of Foreign Affairs Carlos P. Romulo on the occasion of the Secretary Romulo’s dinner given in his honor by Economic Policy the American Chamber of ComSpeech merce at the Manila Hotel on the evening of July 8. It is understood that the address, being considered a "policy” speech, was carefully gone over by the Cabinet before its delivery. Secretary Romulo,' therefore, spoke asa member of the Government and in his official capacity in exposition, explanation, and/or defense of the present government policies in the economic field, with especial reference to American business interests. Americans owe Foreign Secretary Romulo thanks for his address, delivered on the occasion of his pre sentation of the Young Men’s Romulo’s Christian Association’s highest Tribute to award to Dr. E. Stanton Turner American Business last month, in the course of which Pioneers he paid tribute to a long list of Americans, mentioned by name, who pioneered in the fields of government, edu cation, health, science, scholarship, and industry and commerce, "bearers to the Philippines of ‘the goodwill, the protection, and the richest blessings of a liberating rather than a conquering nation’.” In speaking of the business group, Mr. Romulo said: “Let us conclude our roll with the individual Americans who engag ed in private ventures and laid the corner-stone for the material pro gress of our people. These men,—business and industrial entrepre neurs, pioneered in the mobilization of our natural resources. Through their efforts and by their example they made our people economyminded. It is because of their past efforts that the acquisition of tech nical know-how became an ambition among Filipinos. The depth of their impress on our national life may be measured by the elevated standards of living of our people, the rise in our productivity, the broad ening of the bases of our national economy, and the increase in our economic potential. . .” To all the men who took part in "the great work achieved by America in our country”, said Mr. Romulo, “we owe a debt of gratitude which is America’s greatest asset in the Philippines”, Central Bank Governor Miguel Cuaderno made a number of statements in a speech delivered before the Caloocan Lions Club during the month with which all busi nessmen fully agree. These statements were not new, not original, but they were well phrased, and it is the source which gives them their importance and significance. As reported by Mr. Bernardino Ronquillo, of the Manila Daily Bulletin, Governor Cuaderno— Some Elemental Truths from Governor Cuaderno “warned that there could be no monetary stability in this country without a sound government fiscal policy”, and he pointed out that— “in an inflationary period such as the present, it should be the respon sibility of the Government to keep its expenditures within reasonable bounds in order to permit monetary stability.” He admitted, however, that the costs of various gov ernment functions, such as defense and education, are mounting, "leaving the Government no choice in the mat ter”, and that “the Philippines should be prepared to meet these mounting costs”. “The ultimate solution to the Philippines’ currency problems, he pointed out, would be to expand the nation’s productive capacity. ‘We have the means and the resources’, he said. ‘The remedy is in our hands. It is just a matter of doing instead of talking * . ” These remarks do not cover the whole situation, but they are very true in so far as they go, and it is encouraging to hear them from such a high authority as the head of the Central Bank. They are elemental,—not elementary, truths. Immigration and Registration Fees 10 Times as much as in the United States Concerning the recent compulsory re-registration of aliens and the exorbitant fees imposed, the Chamber wrote to the Philippine American Cham ber of Commerce, Inc., in New York, asking what the immigration and registration fees are in the United States. A reply from Colonel John F. Daye, Secretary of the New York Chamber, read in part: “With regard to your query concerning immigration fees exacted by the United States Government from Filipinos, we telephoned to the Immigration and Naturalization Service of the U. S. Department 287 of Justice and were informed that the only fee exacted is an $8.00 head-tax charge made upon entering the country. There is no re gistration fee for any alien.” On a rough calculation it appears that aliens in the Philippines pay at least ten times as much in immigra tion and registration fees as Filipinos and other aliens pay in the United States! What constitutes a danger in every democracy, is the swing of the political pendulum over periods of time from the “left” to the “right” and back again,— from socialistic to fascistic trends, this phe nomenon being greatly confused, further more, in these times, by the fact that com munism, supposedly “leftist”, is in reality Moving Away from Democracy as reactionary as the fascism of the “right”. We should take democracy as the norm toward which all the world would be slowly advancing if there were no forces set upon- thwarting this natural development. In a democracy, the people, through their representatives, freely chosen, govern themselves. The supreme power, formally and actually, is vested in the people; there is freedom of the individual and freedom of individual enter prise; and every citizen accepts the individual risks of that freedom along with its great benefits. To the left is socialism which stresses social over indi vidual values, and under which, though the people are still supposedly sovereign, the government acquires such broad powers, both economically and politically, that freedom must in the end perish. To the right is fascism under which power is also strongly centralized but in a self-established and selfperpetuating government which openly scorns and deliberately stamps out all individual rights. Communism differs little from fascism, except that it masquerades as socialism, and while fascism stresses a hyper-nationalism, communism pays lip-service to a false internationalism to cloak its world-embracing tyranny. The fact that, in a democracy, the shift from the democ ratic norm toward socialism on the one side or toward fascism on the other side, or yet further toward communism which lies beyond both, is often unconscious, does not affect the reality of this shift and only increases the peril. We should try to determine at every moment in just what direction we are moving, so that we shall not, sud denly, find ourselves where we had no intention of going. A system of government with strong centralized powers, controlling all affairs of the nation—the industrial and commercial, as well as the political,—is not a democracy. It is a matter for careful discrimination to determine whe ther we, here in the Philippines, are moving to the right or to the left. Moving, we certainly are. Nearly two years ago we published a short editorial in this Journal on the great world issue at that time; the point brought out was what the writer The World believed the issue to be. Today that Issue issue is still unresolved, though it has become sharper. It may therefore be considered worth while, in the interest of clear thought, to repeat the statement. It ran: A s we and all the people of the world tensely watch the A great drama unfolding in Europe,—centered for a time in Berlin and now in Paris [today in Korea], it is very neces sary for us to understand and to hold ever in mind that the conflict is not basically between any of the following: (1) Democratic and communist ideologies', (2) The capitalist and communist economic sys tems; (3) Russia and its satellites and the United States and its Allies; (4) American and Russian imperialism. The conflict is neither basically philosophical nor materialistic; neither geographic nor strategic; neither national nor imperialistic. Such aspects present themselves, but the conflict is basically political,—political in a practical and real sense, very close to all of us; closer, perhaps, than the next elec tions. It is a conflict between human freedom, its spirit and institutions, and despotism and all its iron machinery; between two systems, the one representing democratic liberty and the other totalitarian tyranny. As such it is a world conflict,—in which the security and happiness of all mankind is at stake. wfE may say in addition, at this time, that American w forces and those of some other members of the United Nations in Korea are not fighting for the Koreans, nor are they fighting to maintain the position of the United States and its allies in Japan or in the Pacific. Again, these as pects present themselves and they are real enough. But still the conflict, which has now broken out into open war fare, remains basically political,—freedom versus slavery, not in Korea only, but in all the world. Republic of the Philippines Philippine Relief and Trade Rehabilitation Administration August 3, 1950 Mr. Paul Wood President, American Chamber of Commerce Manila Sir: I have the honor to inform you that in the last meeting of the Philippine Wheat Flour Board, held on August 2, 1950, Americans have been classified under a special group and are given special conces sions as to entitle them to the same privileges as Filipino importers. This is to correct the impression created by false newspaper reports to the effect that Americans are treated as aliens when it comes to flour quota allocations. I shall be grateful to you if you will transmit the contents of this communication to the members of the American Chamber of Commerce. Sincerely yours, Ild. Coscolluela, General Manager. American Chamber of Commerce of the Philippines August 4, 1950 The Hon. Ildefonso Coscolluela General Manager Philippine Relief and Trade Rehabilitation Admin istration Manila Dear Mr. Coscolluela: Please accept the thanks of the members of the American Chamber of Commerce of the Philippines for your letter of August 3, 1950, informing us of the decision of the Philippine Wheat Flour Board to the effect that American importers will be entitled to import wheat flour on the same basis as Filipino importers. Sincerely yours, Paul Wood, President. 288 August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 289 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.) Inc. The Home Insurance Company A. Soriano y Cia. The Phoenix Insurance Company Manila Underwriters Ins. Co. Inc. Marsman & Company IncUnited Underwriters, Inc. Springfield 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 At the annual election of the officers and directors of the Chamber of Commerce of the Philippines, held last New Board of the Philippine Chamber of Commerce month, the Hon. Aurelio Periquet and Dr. Olimpio L. Villacorta were re-elected President and Vice-Pres ident, respectively, while Mr. Pedro J. Ocampo was re-elected Secre tary-Treasurer. Newly elected to the Board of Directors were Mr. Daniel R. Aguinaldo, Col. Amado N. Bautista, Mr. Ci priano S. Gonzalez, and Mr. Enrique J. C. Montilla. The hold-over members of the Board are Mr. Juan J. Carlos, Mr. Francisco Dalupan, Mr. Fermin Francisco, Dr. Eduardo Z. Romualdez, and Mr. Jose M. Valero. Our congratulations and respects to the new Board and its officers. Membership of the U. S. Economic Survey Mission for the Philippines Members Daniel W. Bell, American Security and Trust Co., Washington, D. C., Chief of Mission. Richard J. Marshall, Virginia Military Institute, Lexington, Virginia, Deputy Chief of Mission. Edward M. Bernstein, International Monetary Fund, Washington, D. C., Chief Economist. August L. Strand, Oregon State College, Corvallis, Oregon. Francis McQuillin, West Penn Power Co., Pittsburgh, Pa. Advisers Albin H. Cross, Bureau of Internal Revenue, Department of the Treasury, Washington, D. C. Michael J. Deutch, 1737 H St., N. W., Washington, D. C. David I. Ferber, American Consul, Cebu, Republic of the Philippines. Lawrence Fleishman, Department of the Treasury, Seattle, Washington. Joseph B. Friedman, 1026 Woodward Bldg., Washington, D. C. Wilbur A. Gallahan, Bureau of Internal Revenue, Department of the Treasury, Washington, D. C. William T. Heffelfinger, Department of the Treasury, Washington, D. C. Richard A. Miller, 422 E. 23rd St., New York City. Austin Nisonger, CAA, Department of Commerce, Washington, D. C. Jameson Parker, 2116 Bancroft Pl., N. W., Washington, D. C. Clarence M. Purves, Department of Agriculture, Washington, D. C. Louis Shere, University of Indiana, Bloomington, Indiana. William W. Tamplin, Bureau of Mines, Department of the Interior, Washington, D. C. Donald Thompson, Federal Reserve Bank of Cleveland, Cleveland, Ohio. Carlton L. Wood, Office of the International Trade, Department of Commerce, Washington, D. C. Additional Advisers Henry G. Gomperth, Assistant Director, Department of the Interior, Labor Affairs. Ealton L. Nelson, Field Representative, Bureau of Employment Security. Vincent Checchi, 10111 Gardiner Ave., Silver Springs, Md. Administrative Officer Albert J. Ciaffone, Division of International Conferences, Department of State, Washington, D C. Administrative Assistant Goodwin Shapiro, Division of Central Services, Department of State, Wash ington, D. C. Stenographers Cecelia Lucas, Department of State, Washington, D. C. Moss H. Pritchard, Department of State, Washington, D. C. Margaret L. Spradlin, Department of State, Washington, D. C. Marguerite J. Tise, Department of State, Washington, D. C. “ jrr/’HEN the State achieves mastery it is no longer possible even to identify those in the maze of bureaucracy who actually wield FT the power of government. If the exercise of power seems less flagrant than in the hands of industrial autocrats, that is only because the processes are more surreptitious and because the cost of inefficiency and corruption is concealed; to be made up later under the whip of the tax collector. To expect the dictatorial State to break a monopoly, and to restore the bene fits of competition, is almost the height of human folly. The State from its very nature is, and must be, monopolistic ... The State monopoly outlaws competition. The centrifugal tendency is crushed. And every aspect of life becomes centripetal. In deed, this is apparent even before the stage of State monopoly is reached, For governmental regulation always tends to weigh more heavily on small business than on big business. .. Since the spiritual urge of liberty demands the physical condition of freedom in order to be effective, contraction of freedom is at best debilitating—and will eventually prove fatal—to liberty itself. The loss of liberty is the more probable because, once the State has assumed a function, the deprivation suffered by Society is likely to be permanent. A relative immortality has been bestowed on the State. So the advantage of this false god over every form of social organization is enormous and devastating.”—Felix Morley in “The Power of the People”. 290 August, £950 AMERICAN CHAMBER OF COMMERCE JOURNAL 291 STATEMENT WITH THIS Multiple Total, Multiple Print Burroughs Ledger, Statement and Journal... This new Burroughs Multiple Printing Machine provides the high speed and automatic operations required for volume production in posting ledger accounts and in preparation of statements. With this machine more work can be pro duced in less time, and with accuracy that was previously believed impossible. After you have seen the Burroughs—its speed and ease of operation, its beauty in soft tones of brown and ivory you, too, will agree that this is the finest machine made for posting accounts re ceivable records . . . for Burroughs has set a new standard of performance that is unequalled in this field. Phone your Burroughs representative today. Let him show you how you can improve your accounting efficiency and at the same lime cut costs and increase job satisfaction. WHEREVER THERE'S BUSINESS THERE’S Burroughs BURROUGHS DEALERS Phil. Chamber of Commerce Bldg., Manila Tel. .1-20-96 DAVAO CITY —(also for MINDANAO-SULU), Burroughs Sales Office; BAGUIO — Baguio General Trading; NAGA, LEGASPI, I.UCEN A — Gabriel & Co.; CEBU — Valeriano Alonzo; BACOI.OD — Warner, Barnes & Co., Ltd.; ILOILO— Warner, Barnes & Co., Ltd.; DAGUPAN CITY — Villamil Bldg. Tel. 95. The Philippine Economic Policy * * Address delivered July 8 at a dinner given in honor of Secretary Romulo by the American Chamber of Commerce. By Carlos P. Romulo Secretary of Foreign Affairs YOUR President, Paul Wood, and my very good friend, Joe Par rish, have made the request that I come here this evening equip ped, as it were, with a lighted candle and a book entitled, “The Official Policy of the Republic on the Participation by American Citi zens in the Economic Development of the Philippines.” The ritual is familiar to me, the book is not abstruse despite the formidable title, I think the candle provides sufficient illumination, and I am sustained by the knowledge that I am with friends and with friends of the Filipino people. I am happy to be with you and I feel sure that we will part tonight in a spirit of better understanding. I was invited to attend this dinner one month ago, before my last trip to the United States and before the Communist invasion of South Korea. Had I appeared before you prior to the last mentioned event, I would have been compelled to strain my powers of persuasion in speaking to you on the subject that has been assigned to me. Fortun ately for me, recent developments have made my task much easier than it might have been otherwise. On June 25 President Truman issued the historic declaration on the Communist invasion of South Korea which, in effect, establishes American policy towards Asia and, in particular, towards the Philip pines on a new basis. He said: “I have .. . directed that United States forces in the Philippines be strength ened and that military assistance to the Philippine Government be accelerated.’’ The next day, President Quirino, speaking on behalf of the Phil ippine Government, commented on President Truman’s statement as follows: "I am deeply gratified to learn of the acceleration of military assistance not only to our Government but to the area in general. Nothing could have reinforced better Filipinos' confidence to contain Communism and preserve the peace we need to build the Republic and cooperate with our neighbors." This pledge of assistance and cooperation was limited in the abovementioned statements to strictly military matters. However, as if to emphasize that the acceleration of military assistance is but a part of the over-all program of cooperation between the "United States and the Philippines, the texts of the letters recently exchanged between Pres ident Truman and President Quirino regarding the United States Eco nomic Survey Mission to the Philippines were released for publication two days later. I quote a significant portion of the letter of President Truman: “The American Government has continued to take an active interest in the problems of the Philippines ... We desire to give help in any feasible and practic able way . .." The reply of President Quirino was equally significant, and I quote his words: “A proper regard for’the abiding interest which you, Mr. President, and your Government, have in the welfare of my country and my people, moves me to express my concurrence in your proposal.. .” I am citing from the latest available documents relating to Phil ippine-American relations. It is not to be thought, however, that these relations are of such recent vintage as the passages I have just cited might seem to imply. The documentation of the relations between the United States and the Republic of the Philippines goes back to the very day of our independence on July 4, 1946. During the inaugura tion of the Republic, the late President Roxas made the following state ment: On Dec. 30, 1949, upon his inauguration for a second term, Pres ident Quirino declared: “The United States of America is still our best friend and we look to her to realize increasingly that, in this atomic age, her area of safety, and that of mankind as a whole, have no delimiting frontiers.” I continue reading from the book. On the same day there was signed a Trade Agreement between the Philippines and the United States by the terms of which the Gov ernment of the Philippines gave the following special concessions to American citizens in this country: (1) Parity or equal rights for American nationals and corpora tions in matters relating to the disposition, exploitation, development, and utilization of nature1 resources, principally agriculture and mining, and in the operation of public utilities. (2) Duty-free entry of United States articles into the Philippines. (3) The pegging of the Philippine peso to the American dollar in order to insure the stability of the former and protect the invest ments and properties of American citizens doing business in the Phil ippines from the possibility of devaluation. On September 30, 1946, Republic Act No. 35 came into force, authorizing the exemption of new and necessary industries from the payment of internal revenue taxes for a period of four years from date of organization. As you all know, this enactment was intended prim arily to attract American capital to this country, thus implementing the grant af parity rights to American citizens and corporations under the Trade Agreement. The Military Assistance and Military Bases Agreement of 1947 guarantees continued comradeship in arms between the American and the Filipino peoples, and incidentally provides added assurance for the security of American investments in the Philippines. Insofar as it provides for the gradual nationalization of import quotas, the new Import Control Law reflects a tendency that is quite natural in a newly independent state like the Philippines. It is inspired in part by a spirit of nationalism which, properly directed, constitutes the great motive power in the progress of any people. That this senti ment does sometimes result in abuse is admittedly a matter for regret; that it sometimes requires emphatic expression is in keeping with pre vailing practice everywhere in the world, including, I must say, the United States of America. In this particular instance, it amounts to no more than the universally recognized right of a State to treat its own nationals in a manner more favorable than foreigners. Nevertheless, in approving this Law, the Philippine Congress was careful to recognize the obligations of the Philippine Government under existing agreements. Accordingly, the Congress explictly included in Section 14 of this law a reservation in favor of American nationals which reads as follows: “Finally, that nothing in this Section shall in any way impair or abridge the rights granted to citizens and juridical entities of the United States of America under the Agreement signed on July 4, 1946, between that country and the Repu blic of the Philippines.” ’ The intention was to preserve the spirit of preferential rights previously granted to American citizens under the parity amendment. Moreover, on the basis of the 1948-1949 import figures, the Im port Control Law places luxury and non-essential items valued at P500,000,000 on the control list, while exempting from control essential raw material and capital goods valued at P600,000,000. Since Amer ican firms are mainly engaged in importing the latter category of goods, it is obvious that the Import Control Law does not seriously affect existing American investments. It can thus be seen that economic collaboration with the United States will remain for an indefinite period as the cornerstone of the commercial policy of the Philippines. The United States absorbs from 80 to 85% of the total exports of the Philippines every year, while the Philippines, notwithstanding its small size and limited resources, has consistently figured as one of the first ten overseas customers of Amer ican goods. Although no official or body of this Government can com mit the Philippines to any irrevocable policy beyond the terms of exist ing agreements, I believe it reasonable to predict that this policy of economic cooperation between the two countries will remain if for no other reason than by virtue of the tendency to let long established trade channels and commercial relations continue undisturbed. It should not be necessary to justify the dollar conservation meas ures that the Philippines has so far adopted by means of import and exchange controls. As businessmen you are familiar with the conditions that have rendered these measures imperative. You know that these measures had to be taken in the interest of the Philippine economy as a whole, and therefore in the interest of all elements, Filipino or non Filipino, that have a stake in the future of that economy. The first thing to remember about these control measures is that they are non-discriminatory. They are not directed against the na tionals of any particular country. They spring from the earnest desire of the Filipino people and their Government to live within their means and to make provision for the time when dollar receipts from the United States in the form of war damage and other payments completely stop in June, 1951, and when the preferential position of Philippine products in the American market will diminish at the rate of 5% a year starting from July 1, 1954. We are trying to remedy a difficult situation which we hope is temporary. The restrictions that have been imposed must therefore be borne by all elements of the community in the knowledge that all will share in the benefits that will accrue as a result of our com mon sacrifices. American businessmen have always found ready welcome to the investment opportunities which this country offers. They are still welcome and they will continue to be welcome. If you examine the instruments under which other countries in Southeast Asia have achiev ed their independence in recent years, you will find nothing to compare with the equal rights provisions of the Trade Agreement between the Philippines and the United States—a provision that required the amendment of the Philippine Constitution. 292 August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 293 Helping to build the nation I The great NEW INTERNATIONAL TRUCKS ...transport essential goods for essential industries throughout the Philippines! Emeterio S. Morales says: “In the past 22 years I’ve sold hundreds of International Motor Trucks. In Pampanga, Bataan and Zambales, which I cover, International Motor Trucks are hauling sugar, rice and palay. Owners say they are dependable and economical trucks on today.” Throughout the Philippines rugged, International Motor Trucks are helping the nation by providing economical, dependable transportation of essential goods for esse?itial ndustry. the most the road versatile to rebuild 4 INTERN ATIONAlZll ARY ESTER company OF PHILIPPINES/McC0RM,CK “”al 154 Marquez de Comillas, Manila * ' < Qn»7nn Rlvri nt Palma St Cphil □ Quezon Blvd, at Palma St., Cebu Sasa, Davao—Lacson St., Bacolcd Tractors and Farm Equipment International Indus trial Power International Trucks International Refrigeration I am not saying that the favor was one-sided. As the Resident Commissioner of the Philippines to the United States when the Philip pine Trade Act was approved and having campaigned in favor of the parity amendment to the Philippine Constitution, I am fully aware that we did not give something for nothing. Yet it is certainly worth recalling that in the exchange of favors our people had to effect a vital amendment to their fundamental law—the supreme political act of the people in a democracy. We have kept our doors open to American investments under at tractive inducements of every kind. It now remains for American busi ness to demonstrate its faith in the future of the Philippines by keep ing and increasing its investments in this country, thus helping tide us over this crucial period of our economic construction and development. That American capital would be rendered somewhat timid by oc casional demonstrations of ultranationalism and even more perhaps by domestic disorders and the fear of war, is quite understandable. But the idea that American capital is shy because of domestic disorders ignores the equally valid idea that domestic disorders arise from lack of employment, low productivity, and depressed living standards, and that these in turn are due to the paucity of capital investments. The result is a vicious circle that must be cut somewhere, and I believe that the way to cut it is for American and Filipino investors to take decisive action by rationalizing and expanding existing industries and establish ing new essential industries before the economic situation deteriorates beyond repair. Otherwise, our people and Government will ask, as they are asking even now; whether there is any further benefit to be obtained from the special rights and opportunities that have been granted to American citizens in the Philippines. One further factor that should be considered in this connection is the United States Point Four Program of assistance to underdevel oped countries. This program is based on the theory that the priority requirement of the less developed countries of the world, particularly in Asia, is not direct aid in the form of money or industrial equipment but rather assistance to improve health and education and technical know-how, by means of which the peoples of these countries may be enabled to increase their productivity and thus exploit their economic potentialities to the maximum for their own benefit and ultimately for the benefit of all mankind. The Point Four program is thus one of the most heartening fea tures of the United States policy toward the underdeveloped countries of Asia and elsewhere. It is a program fundamentally dedicated to the interests of the people of these countries. However, if it succeeds, Amer ica and the free world of which it now stands as the leader, will reap their share of the common harvest. This share will come in two forms: first, in the wider investment opportunities that American capital will have as a result of the opening up of the economic potentialities of these countries: and second, in the tremendous boost to the free world that will be provided by the raising of the standards of living of the peoples of these countries and their consequent immunization against the virus of Communism. Finally, I feel I must call your attention to the implications of the resolutions approved by the Baguio Conference last May. Of partic ular interest in this connection is the resolution recommending that the participating governments promote the expansion of trade within the region by every means including bilateral trade and payments agree ments and, possibly, by means of multi-lateral clearing arrangements among themselves. As you are aware, this proposal is intended prim arily to revive and to encourage intra-regional trade. It may have great value in the face of the severe dollar shortage which is prevalent in most of the countries of this region. However, this resolution should not be interpreted as an attempt to weaken the economic ties at pres ent existing between the participating countries and those outside of the region, in particular, between the Philippines and the United States. As a matter of fact, the expansion of intra-regional trade, by stimulating production in the countries of the region, will ultimately result in a corresponding increase in the trade of the area with the rest of the world. Furthermore, to the extent that the Philippines will participate in such expanded trade, the national economy will be further developed to the benefit alike of local and foreign investors. Eventually, trade ex pansion within the region will surely reduce the dollar-aid require ments of the countries within the region. Finally, the resolution of the Baguio Conference explicitly states that such bilateral trade and pay ments agreements will not be sought by the participating countries except in a manner “consistent with their obligations under interna tional agreements to which they are parties.” Here, again, is the familiar proviso intended to safeguard exist ing ties and commitments, in the spirit so very aptly described by the Australian delegate to the Conference who said that “the making of the new friends need not in any respect whatsoever lessen the ties which bind us to our old friends.” I like the phrase “old friends,” for that is what we are and what we must remain. In the face of the present danger, the Philippines is fortunate to be able to count on the friendship and assistance of rich and powerful America. But America, even in her wealth and power, has need of friends and'allies too, and none in this part of the world have better proved their loyalty as such than the Filipino people. The Philippines is America’s original pilot-plant for democracy and freedom in Asia. What American does here as our friend in peace and ally in war will be appreciated by our people and measured by our neighbors. Yet, though the acts of the United States as a government are certain to impress our people and their neighbors, nothing in the long run will impress them more than what Americans individually and collectively are doing and will do here. Ambassador Cowen is an able diplomat and truly represents your great country here. But you Americans, who have elected to live and work amongst us and have cast your lot with our people—it is you who are America’s permanent ambassadors in the eyes of our people, the practising exponents of American vision, energy, and enterprise. Economic Policy in Palestine * THE Socialist Parliament of Israel two months ago adopted one of the most enlightened foreign-invest ment codes in force in any of the world’s “under developed” countries. Israel, painfully deficient in natural and industrial resources, is by no means underdeveloped in courage and economic realism. Philanthropic funds, principally from American Jews, have kept the new state going so far, but to get on to a sound economic basis the Israelis are well aware that they need private investment capital, principally from Amer ica. Propaganda is pouring from government offices in Haifa and Jewish agencies in New York, pointing to the advantages of doing business in Israel: serious inflation has been curbed and the cost of living, though still high, is beginning to come down; wages, which are tied to the cost of living, are high too, but the controlling labor federation, Histadruth, has recently taken some cuts and allowed piecework. Most alluring to U. S. businessmen is the new law—passed with only three dissenting (Communist) votes —that gives substantial tax advantages to any approved investment coming into Israel, and guarantees foreign investors equal treatment with Israelis. ** Necessary raw materials and machinery will come into Israel duty-free; ♦From the June, 1950, Fortune. **Journal editor’s italics. owners of new enterprises are relieved of property taxes for 5 years; double the ordinary depreciation rate on plant and equipment is allowed for the first 3 years, and an enter prise may be completely written down in 5 years; for 5 years 25% will be the maximum tax on income from new investment; there is no profit ceiling, and the foreign in vestor may take out of Israel 10% of his investment an nually in profits, interest, or amortization. The law will be administered by a government Investment Center that has discretionary powers to extend the concessions granted, and there is provision for appeal from the rulings of the Investment Center. Investments trickled in at the rate of about $2,000,000 a month in 1949 (mostly from Jews in America who were sending goods for distribution or setting up businesses for their families), but recently large American firms have joined with Israel capital to start the first modern, mass production factories in the Middle East. Individual nego tiations with the Israel Government preceded these invest ments, with the United States firms obtaining terms in line with those now written into the investment law. Gen eral Tire & Rubber is building a $2,000,000 factory outside Haifa. Kaiser-Frazer is putting up a $2,500,000 assembly plant at Acre. Philco is about ready to produce refrigera 294 tors in Tel Aviv. General Shoe will open its new Jerusalem plant this month. The Moller-Dee Textile Corporation has filed a $2,500,000 stock issue with the SEC to finance modern spinning and weaving mills, and the American Is rael Foundries Corporation has filed a $500,000 issue for a nonferrous-metals foundry near Haifa. In addition, two American investment companies with combined assets of about $18,000,000, Palestine Economic Corporation, and American Palestine Trading Corporation, have partici pated in housing, banking, and industrial developments in Israel. British, Dutch, and South African capital is also being attracted to Israel. This money, like the American, is not going into Israel out of compassion, but in the expec tation of profits. As the second anniversary of independence was cel ebrated last month, the Israel Government issued a proclama tion citing the achievements of the new state—and stating the obvious truth that “the road ahead is still long and hard.” With almost no national wealth and an area no greater than New Jersey’s, *** Israel is committed to accept ing all the Jewish immigrants who come to it. The pop ulation is now 1,000,000—an increase of 60% cent in less than 2 years, and the new settlers are still coming. Most raw materials and many goods and foods must be imported, and so far the balance of trade has been lamentably one sided. Imports and other foreign expenditures in 1949 were $260,000,000; exports, income from tourists, etc., only $60,000,000. The initial task of housing and feeding the immigrants (some 100,000 are still in tent cities and * From an unpublished history of the Santo Tomas Internment Camp. **A reference to the growing starvation in the Cainp, an ala.-ming survey of the children's state of health, the Japanese order that both camp and individual funds be deposited in the Bank of Taiwan, etc. emergency camps) is paid for largely by gifts from more fortunate Jews in other countries. The long-run task is to provide jobs for the new citizens and thereby establish a sound industrial economy. President Chaim Weizmann talks of Israel’s becoming “the new Switzerland,” supplying consumer goods to the untapped markets of the Middle East. Weizmann expects that Israel, like Switzerland, can develop an enormous tourist business, although the shortage of first-class hotel space now limits the numbers who can be decently accom modated in the Holy Land. Many of the Jews who have made their way to Israel are highly skilled workers; with modern equipment and production methods they are con fident they can apply their skills to low-cost raw materials and produce such exportable items as precision instru ments, textiles, metals, and chemicals. American firms based in Israel will be able to sell in the soft-currency countries of Europe and the Middle East, and from tourist and export trade Israel expects to earn enough hard dollars so United States investors can take out their annual 10%. Whether United States investors can actually make the 10% they are allowed to remit from Israel is, of course, another question. But quite a few of them are eager to take a crack at it. This phenomenon might profitably be studied by a number of governments in Latin America, Western Europe, and the Arab world. Israel is practicing a brand of “socialism” that can be recommended to much of the technically capitalist world. ♦ ♦•About one-fourth of the area of Luzon. When the Santo Tomas Camp Learned of the Death of President Quezon * By A. V. H. Hartendorp TJEPORT of the Death of President Quezon.—It J\" was during this period of general anxiety and excite ment in the Camp, ** on the morning of the 3rd [of August, 1944], that a shocking rumor ran about. President Quezon was dead. Early in 1942, the Tribune had reported his death, but the report had happily proved false. Alas! this time it was soon beyond doubt that the President had died in a New York sanitarium on August 1, succumbing at last to the disease which he had fought so long and so stubbornly,—tuberculosis. There were many in the Camp, people who had not made their home in the Philippines, who knew little about him. Others, even residents of the Philippines, knew him only as the President of the country. Among the residents were those who had never understood his problems and who were critical of his acts and policies. Some of the businessmen held that Quezon’s attitude toward large capital investment had retarded economic development. A few believed him to have been “too friendly to Japan”, at least before the war! It could not, therefore, be said that the Camp as a whole deeply mourned his passing, although all realized that his death was peculiarly tragic at this time. But there was a large number of Americans in the Camp, some of them close personal friends, who did sin cerely mourn his death, and many who grieved over it bitterly. There were many who understood what a shat tering loss this was to his country and his people,—who idolized him. They realized also the loss to America of this great friend of America in the Philippines. They knew that America, and America in the Philippines, after the expulsion of the enemy from the Archipelago, would face many serious and complicated problems, in the solution of which Quezon’s leadership and high ability had been heavily counted upon. They asked anxiously who there was who could take his place; who there was who could control the passions which would be loosed, re-unite the people, bring them back to ways of peace. Quezon had time and again been seriously ill and near death, but his vitality and almost miraculous recuperative powers had always brought him back. The flame of life burned so high in him that it was almost impossible to think of him as dead. He was truly one of the world’s great men,—a political genius. Impulsive, impatient, irrascible, imperious, he was always intensely human and always lovable. With his frank love of pleasure, or, better perhaps, of life, as if he were driven to make every moment count; with his taste for luxury and fine raiment, his streak of vanity (overcome in his later years), he was the complete man, and therefore had something for every man, whatever his age, status, or degree of cultivation. Gen erous, open-hearted, outspoken, he himself read men at a glance and attracted them like a magnet, won them over often in spite of themselves with the glow of his personality, the charm of his manner, his quick logic, his golden words. Enlightened, tolerant, progressive, liberal, democratic, 295 his leadership was as vital and electric as himself. Volatile and mercurial as he was often called by those who did not understand his many-sidedness, he was willful and tena cious in achieving his aims. He was fearless and audacious and never fought better than when at a disadvantage. With his idealism, his love of country, his intuitively wise statesmanship, his astounding capacity for work, he was (from the Filipino side, and since he had assumed leader ship) largely the creator of the modern Philippines. Osmena and Quezon.—Of course, he had not worked alone, and especially Osmena had with patriotic selfabnegation, stood loyally at his side as Vice-President of the Philippine Commonwealth. Now that Quezon was gone, the Filipinos, and America, too, could be thankful that Osmefia remained, for he, too, is a great leader. It was always remarkable that two such men should have lived in the same small country at the same time,—two men so alike in some of their characteristics, so unlike in others. Both of nearly the same age, it seemed as if one had magic ally evoked the other. Whether in friendship or in rivalry, in conflict, in truce, or in collaboration, they were each other’s counterpart, bearing within them the mingled qualities of the Filipino, Quezon developing to superior heights the more Occidental, Osmena the more Oriental characteristics of the race. Osmena, quiet and self-con - trolled, cautious, wise even in his youth, and rising early to power, a man of elevated principles, statesman rather than politician, had won all the earlier political victories for the Philippines. Now, universally respected, loved by his followers, it seemed he had only to rally them. . . The situation following the relief of the Philippines would call for all of Osmefla’s great powers, and not only in the field of political maneuver. The purely administra tive problems and the work of reconstruction awaiting him would be overwhelming to a less able man. Then there would be the problems, political, financial, and econ omic, involved in the establishment of the Philippine Republic, though America, no doubt, stood ready to help. Plans and arrangements had probably been worked out already, but what these were, of course, interested internees in Santo Tomas could not know. Friends of Quezon in Santo Tomas could comfort themselves with the thought that he did not die in exile among strangers. He died in what was, in more than just the political sense, his own country. He had spent many years there, early in his life, as a member of Congress (Phil ippine Resident Commissioner), and went to America many times on various political missions. Quezon was at home in America and had countless friends there. When President Quezon and Vice-President Osmena left the Philippines early in 1942, the Japanese charged them with “deserting” their people. Indeed, the Japanese would have liked to lay hands on them! They were no more deserters than was General MacArthur. They left the country for reasons of state, unwillingly enough, as did the heads of countries in Europe which were invaded by the Germans. It was one thing for an official like Vargas to remain behind in Manila. He was under instructions to receive the enemy, to follow their orders (no doubt, within certain limits), and to do what he could to save the population during the enemy occupation. It would have been a different thing if the acknowl edged leader of the country and the recognized head of the Government has fallen into the hands of the enemy. Quezon would never have submitted to their demands and would have been held a close prisoner. They would have been at him night and day. They would have issued false state ments in his name. And if they would not have finally murdered him, he would have died of the torture. This he was spared. This his country was spared. He drew his last breath in freedom, the honored guest of the American nation. . . He must have suffered deeply over the catastrophe which had overwhelmed the Philippines; he must fre quently have been racked with impatience, anxiety, grief; he must have longed passionately that he would live to see the deliverance of his country; yet he could never have despaired of the ultimate outcome. He must have known, and it must have been in his mind at the last, that before long, in the land which he loved and served so well, freedom would ring again. The “New Importer” Reservations on Non-quota Importations The American Chamber of Commerce of the Philippines released the following statement to the press on August 9: AS a matter of interest to the Government, the American Chamber of Commerce recently invited the attention of the Import Control Board to the detrimental effects, as well as the questionable legality of the 30% new importer reservations on non-quota importa tions. It is the opinion of the American Chamber that articles, goods, and commodities NOT enumerated in the Appendices of Republic Act No. 426 are NOT subject to such reservations. The 30% reservations for new importers are currently being ap plied against further percentage cuts that result in total reductions to most old importers of from 42% to 66% of their 1948 importations on non-quota and formerly uncontrolled essential capital goods, materials, and supplies. Included in these categories are lubricants; agricultural and indus trial machinery and equipment; commercial motor vehicles; tires and tubes; carpenter and garden tools; service repair parts of many kinds required to maintain essential equipment already in use; and other essential dollar-saving and dollar-producing materials, supplies, and equipment required in industry and agriculture. It is contended that Section 9 of the Act, following the intent of the authors of the Bill and as endorsed by the Congress, was meant to specifically exempt such essential importations from the limitations now enforced by the Import Control authorities. The American Cham ber also brings to attention that this action is contrary to the best interests of the people and the Government since it denies entry and removes from the market established and serviced makes and brands of capital goods and essential supplies in order to provide for entry by new importers of less desirable substitutes for which services and mar kets are not established. Equally serious is the detrimental effect on Filipinos and Philippine retailing firms principally established in the post-war period, as old importers have nationalized their retail opera tions into the hands of Philippine citizens. These Filipino firms have made sizable investments to provide before- and after-sales service in their respective territories and are supplied by old established importers. Some of the old established importing firms have also invested large sums in initial industrialization projects, which are now seriously curtailed by the substantial reduction of the quantities of components and materials for which they are allowed import license. Further detriment to agricultural and industrial production is expected to result from the substantial reductions in the importation of service repair parts. Most capital goods were practically new in 1948, even including war surplus items, and required few service repair parts. Local suppliers are now expected to service such equipment on the basis of a reduction of from 42% to 66% from their 1948 service repair parts importation. This has already resulted in critical and serious shortages and made some equipment inoperative. A critical supply situation is developing in the United States as increased military production for preparedness gets under way. Rail road cars and ocean shipping space are already at a premium and the American Chamber is fearful that, unless remedial action is promptly taken by the Import Control Board, even more serious consequences will result. 296 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source JULY 1 — President Elpidio Quirino accepts the resignation of Secretary of Justice Ricardo Nepomuceno. The President issues two executive orders, Nos. 329 and 330, creating the Civilian Emergency Administration and the National Security Council; the first will provide for the coordination and control of civilian organizations for the protection of the civil population in case of emergency, and the second will advise the President on matters of national defense. July 3 — The President makes the following appointments to the Civilian Emergency Administration: Modesto Farolan, director of publicity and propaganda; Ildefonso Coscolluela, food administrator; Col. Amado Bautista, industrial production administrator; Sergio Bayan, fuel and transportation administrator; Alfredo Eugenio, na tional air-raid warden; Felipe Cuaderno, director of communications; and Marciano Roque, director of community councils. The CEA will be administered by the National Emergency Commission, with Teofilo Sison as chairman. July 4 — United States Army units and veterans take part in the consecration of the remains of the Filipino Unknown Soldier enshrined in Fort Santiago during the Fourth of July observances. Since both countries celebrate Independence Day together, units of the Armed Forces of the Philippines fire a 21-gun salute in honor of the United States, which salute is returned by United States Army units in honor of the Philippines. President Quirino and President Truman exchange messages of congratulation. Messages from many other countries are received and returned. July 7 — The Cabinet votes to pledge mbral support to the de- ' fenders of the Republic of South Korea and also to contribute stocks of coconut oil, soap, rice, and cholera-typhoid-dysentery vaccine. Sec retary of Foreign Affairs Carlos P. Romulo informs Secretary-General Trygvie Lie, of the United Nations, accordingly. The President orders the immediate opening of all intermediate school classes throughout the Philippines after Budget Commissioner Pio Joven informs him that a saving of some P23,000,000 could be effected if the one-teacher-one-class system is adopted, this being enough to cover most of the expenses of the intermediate classes. The President issues Executive Order No. 331 fixing importers’ or producers’ and wholesale and retail prices of certain prime commodi ties in the city of Manila and its immediate environs, as recommended by the new Price Control Administration. July 8 — The President attends a caucus of the Liberal Party and later announces that at a special session of Congress to be called shortly certain legislative measures will be taken up including new tax meas ures, an additional appropriation for the Armed Forces, an appropria tion for the Civilian Emergency Administration, and an appropriation for public works, “the amount to be determined in accordance with the availability of funds”. Announced at Malacafian that the Departments of Finance, Jus tice, and National Defense will cooperate in a drive against the illicit manufacture of cigars and cigarettes rampant in and around Manila; the Bureau of Internal Revenue has been unable to deal with the situa tion as “the manufacturers and their men are armed and allegedly determined to defy any interference with their activities". July 9 — The President appoints a special Cabinet committee, headed by the Secretary of Finance as chairman, to draw up rules and regulations to govern the pilgrimage of Filipino Mohammedans to Mecca. A large number of Moros were stranded in the Near East some time ago because of inadequate arrangements made for them. July 10 — The United States Economic Survey Mission, with the Hon. Daniel W. Bell as chairman, arrives in the Philippines. The President appeals to the citizenry to support the Govern ment’s bond campaign following his own purchase of Pl000 worth of the new Central Bank bonds, a part of the P500.000 issue to be placed on sale in 6 denominations ranging from P20 to P10.000; the bonds are negotiable and will yield 4% annually free of tax. July 11 — The Cabinet authorizes the sending of 60 officers and 22 enlisted men of the Armed Forces of the Philippines to the United States for a period of training under the program established by the Philippine Rehabilitation Act of 1946. The President gives a dinner in honor of the American Mission. July 12 — In connection with the offers of groups of former Phil ippine Scouts (U. S. Army) and the National Volunteers of the Philip pines to volunteer for service in Korea, the President states that the Philippine Government has no objection to this if the United States Army is willing to equip such forces. The President orders the cancellation of the government contract with Mollers & Choy, Ltd., of Hongkong for the salvage of sunken vessels in Philippine waters, and confiscation of the company’s P100,000 bond given for faithful compliance with the contract and of its additional P200.000 bond given for compliance with the obligation to set up a re-rolling mill in connection with the salvage work; he also orders a request for new bids. Malacafian releases Bureau of Public Works figures showing that, during 1949, 94,317 motor vehicles were registered in the Philippines as compared to 54,764 just before the war, or an increase of 72%. July 17 — The President inaugurates the new P600.000 capitol in La Union. Secretary of Justice Nepomuceno renders a ruling stating that under the Constitution, an American citizen may sue the Philippine Government for certain claims and that Commonwealth Act No. 327 defines the conditions under which the Government may be sued; the opinion was sought in connection with the case of Emiterio Pascual, a Filipino citizen, who has filed a case against the United States Govern ment in the U. S. Court of Claims in an action arising out of a contrac tual relationship between him and the U. S. Army and after the U. S. Attorney General had indicated his intention to file a motion to dismiss the case on the ground of want of reciprocity in this matter between the United States and the Philippines. July 18 — The Bureau of the Census and Statistics reports to Malacanan that the estimated number of persons out of work in 1949 was 1,085,600 as compared to 1,229,400 in 1948, a decrease of 11.7%. The average daily wage of skilled industrial workers in Manila in 1949 was P7.61 as compared to P2.29 in 1941; in the provinces, skilled workers received an average of P3.52 as compared to Pl.41. Unskilled labor ers in Manila received P4.90 as compared to Pl.24; and in the provinces P2.03 as compared to P.96. Farm laborers in 1949 received an average of Pl.73 as compared to P.56 in 1941, in addition to at least 2 meals. Industrial disputes have nevertheless shown an up ward trend,—69 in 1946, 93 in 1947, 212 in 1948, and 247 in 1949. Labor unions in 1941 numbered 438, and in 1949, 860. Active member ship rose from 100,907 in 1941 to 140,000 in 1949, an increase of 38.7%. July 19 — Maj. Gen. Leland Standford Hobbs, new United States military adviser to the Philippines and successor to Maj. Gen. Jonathan Anderson, confers with President Quirino. July 20 — President Quirino announces his intention to utilize all available talent in the country regardless of party affiliation or serv ice in the government during the enemy occupation. The President receives the credentials of Admiral George Dunbar Moore, Australian Minister to the Philippines, at a ceremony in Malacafian. July 21 — The Cabinet approves the rules drafted by a special committee composed of Secretary of Finance Pedrosa, Secretary Nepo muceno, and Budget Commissioner Pio Joven, requiring the organizers of pilgrimages to Mecca to post sufficient guarantee to cover the round trip and all incidental expenses; the number of pilgrims will be limited this year to 1000, the same number granted in the case of Catholic pilgrims to Rome. On recommendation of Budget Commissioner Joven, the Cabinet rules that government corporations must pay rent for the use of govern ment buildings. July 22 — The President inaugurates the new P300.000 BCG Labo ratory at Alabang, the only institution in the Far East manufacturing this anti-tuberculosis vaccine. The Cabinet, approving a recommendation of Director of Prisons Eustaquio Balagtas, suspends the projected transfer of prisoners from the Iwahig Penal Colony to the Davao Penal Colony on the grounds of the excessive costs which would be entailed. July 25—The President issues a proclamation calling the Congress of the Philippines to a special 10-day session opening August 1. The President, speaking before members of the United States Filipino Students Association, declares that the Philippines is ready to fulfill, within its limited means, its obligations to the United Nations and to assist in the defense of democracy in this part of the world. The President issues an executive order transferring 5000 officers and enlisted men in the Philippine Constabulary to the Armed Forces of the Philippines in order “to provide for a greater concentration of military effort in suppressing lawlessness, disorder, and violence in certain troubled areas of the Philippines”. According to a Budget Commission release, Budget Commissioner Pio Joven has been asked by the Reorganization Commission to prepare a plan to allow provincial and municipal officials to purchase equipment and supplies under strict requisition and price control regulations in order to “minimize if not totally to eliminate” fraud; the plan involves the abolition of the Central Procurement Agency and is also aimed at eliminating "red tape”. July 26—The President issues Administrative Order No. 127 placing all constabulary units under the operational control of the Commanding General of the Armed Forces of the Philippines. July 27—Secretary of Finance Pedrosa, Chairman of the National Economic Council, announces that the Council has drafted a proposed executive order to be submitted for consideration by the President 297 which would define the “new and necessary” industries which may be entitled to tax exemption under Republic Act No. 35. July 27—The President issues Executive Order No. 337 fixing the ceiling prices of school supplies. July 28—The President, speaking at a “loyalty rally” of govern ment employees at the Rizal Memorial Stadium, states that he will request a large appropriation from Congress for the Armed Forces so as to “enable the Government to maintain internal security and so that our armed forces, if needed, may be prepared to fight beyond our borders for world freedom and peace". Secretary of National Defense Ruperto Kangleon reports to the Cabinet that considerable quantities of assorted military materiel has been received under the United States-Philippine military pact, and that more is en route. July 29—The President receives the delegation of the International Confederation of Free Trade Unions, now on a tour of Asian countries; the delegation is composed of John Brophy of the American Congress of Industrial Organizations, Gordon M. Chapman, of the American Federation of Labor, Roger N. Kekeyser, of the Belgian Federation of Trades Union, Deven Sen, of the Indian National Trade Union Congress, and Jay B. Krane and Richard Deverall, secretaries. Secretary of Agriculture and Natural Resources Placido Mapa reports to the Cabinet that since the outbreak of the Korean fighting, Davao hemp, class “F”, has risen from P53 to P59 and non-Davao hemp registered gains of from P3 to P5; copra “resecada” from P29.75 to P36.50; and coconut oil from P0.57 to P0.65. He also reports that the farming population is responding enthusiastically to the Govern ment’s fertilizer assistance program, the initial stock of 6,000 bags of fertilizer having been disposed of to some 1,500 farmers most of them in the rice-producing areas. Secretary of Commerce and Industry Cornelio Balmaceda reports that during the first 6 months of this year the gap between exports and imports has been reduced to around P81,000,000 as compared to the gap of P250,000,000 during the first 6 months of last year. May showed a favorable balance of P2,000,000. The figures: first 6 months of 1950,— imports, P370,423,488; exports, P289.405.928. Banking and Finance By R. E. Russell , Sub-Manager, National City Bank of New York /COMPARATIVE the Philippines: Statement of the Central Bank of As of As of As of As of Dec. 31 Apr. 30 May 31 June 30 Assets In thousands of pesos International Reserve.. . . Contribution to Interna P460.689 P448.571 P450.432 P441.250 tional Monetary Fund. Account to Secure Coin 30,000 30,000 30,000 30,000 age .................................... 113,306 113,306 113,306 113,306 Loans and Advances........ 77,047 72,749 48,018 123,817 63,918 Domestic Securities......... Trust Account—Securi 92,197 115,501 125,780 ties Stabilization Fund. — 6,848 6,848 6,848 Other Assets...................... 20,390 26,232 32,230 26,663 P793.629 P813.210 P804.651 P807.765 Liabilities Currency—Notes.............. P555.576 P537.948 P534.567 P531.477 Coins.............. 74,384 80,188 80,779 81,320 Demand Deposits—Pesos Securities Stabilization 117,682 141,283 134,546 139,282 Fund................................. Due to International 2,000. 6,84’8 6,848 6,848 Monetary Fund........... Due to International 22,498 22,497 22,498 22,498 Bank of Reconstruction and Development......... 2,389 2,387 2,388 2,388 Other Liabilities............... 2,636 7,555 7,837 8,130 Capital................................. 10,000 10,000 10,000 10,000 Undivided Profits............ 6,464 2,874 3,572 4,206 Surplus................................. — 1,616 1,616 1,616 P793.629 P813.210 P804.651 P807.765 Contingent Account Forward Exchange Sold.. P 6,460 — — — npHE International Reserves declined over P9,000,000 A in June. Banks surrendered $37,440,000 to the Central Bank on account of their purchases and were permitted to purchase $42,430,000 to cover their authorized sales. Loans and advances increased P15,900,000. Notes in circulation continued the decline which began in April. “Notification to Authorized Agents No. 38” was issued on June 29 and ordered that henceforth all applications for import licenses must be directed only to the Import Con trol Administration. The Exchange Control Department of the Central Bank no longer has jurisdiction in the is suance of any import licenses. At the same time, the Mo netary Board of the Central Bank certified to the Import Control Board the amount of exchange available for all imports during the third quarter July-September. On July 10 “Notification No. 39” was released, this covering the method of effecting payments in respect to trade with Japan under the provisions of the Trade Agree ment between the Philippines and SCAP for and on be half of Occupied Japan. “Export Regulation No. 2” was announced on July 22. This makes it mandatory for all exports of copra and coconut oil to be covered by irrevocable letters of credit with drafts to be drawn at sight. Exceptions may be per mitted but must be covered by specific licenses. The tight money situation which has prevailed for some time is showing some signs of easing. The import and exchange controls have created a situation which demands less import financing, and as inventories are sold off, the proceeds accumulate and seek an investment outlet. The Central Bank has placed on sale an issue of P20 Reconstruction and Development Bonds bearing interest at the rate of 4% per annum. These are coupon bonds payable to bearer and may be endorsed from hand to hand without notification to the Central Bank. These bonds are designed primarily for the small investor. Bonds in larger denominations will be placed on sale when received from the printers. Proceeds will be used to finance agricultural and industrial projects of the country through the lending operations of the Reconstruction Finance Corporation and through the financing and development projects under taken by the Government and its agencies. Manila Stock Exchange By Roy Ewing Swan, Culbertson & Fritz, Inc. July 1 to July 31, 1950 IN the first half of July the market sagged to within a few points of its post-war low, 61.71, as recorded by the Mining Share Average, and to the lowest level in over a year. In the latter half it rallied moderately, to close quiet but firm with the average at 66.89. International news and developments in Korea con tinued to be the principal market factors. More than usual, the action of the New York market and its interpretation of the news influenced local traders. Reports from operating mines were entirely satis factory but of secondary importance to foreign develop ments. The fear that gold mines would have to suspend operations in the event of full-scale war, was responsible for the comparative lack of interest in the gold shares and offset the high price of gold on the free market where it sold at around Pl05 per ounce for the entire month. Le panto remained the leading issue, reflecting the record June production of about Pl,000,000 and the strong posi tion of copper. The chromes failed to respond to the news of increased demand and the report that Consolidated Mines expects a record production in August. With the exception of San Miguel Brewery which continued to attract investment buying, the Commercial and Industrial section remained dull. Sugar shares at tracted no attention in spite of the rise in the price of the commodity in the United States and world markets and the bullish action of this group on the New York market. Devaluation fears and rumours appeared to subside, probably due to the presence of the United States Economic Mission and President Truman’s announcement of increased aid to the Philippines. 298 1949-1950 High Low 94.40 60.32 O.37S 0.09 0.024 0 011 0.68 0.26 0.07 0.04 3.75 2.00 0.0052 0.0025 5.30 2.50 0.05 0.016 0.014 0 0078 0.1J5 0.038 0.08 0.025 0.88 0.28 0.021 0.016 0.70 0.31 0.22 0.10 0.08 0.03 0.22 0.105 0.39 0.18 0.043 0.015 0.11 0.04 MINING SHARES M.S.E. Mining Shuie Acoje Mining Com pany ........................ Antamok Goldfield, Mining Co.............. Atok-Big Wedge Min ing Co..................... Baguio Gold Mining Co............................ Bolatoc Mining Com pany ...................... Batong Buhay Gold Benguct Cons. Mining Co............................ Coco Grove, IncorConsolidated Mines, Inc........................... Itogon Mining Com pany ...................... I.X.L. Mining Com pany ...................... Lepanto Cons. Min ing Co..................... Masbate Cons. Mining Co............................ Mindanao Mother Lode........................ Misamis Chromite, Inc........................... Paracale G u m a u s San Mauricio Mining Co............................ Surigao Cons. Mining Co............................ Suyoc Cons. Mining United Paracale MinHigh 68.84 .27 3.00 61.71 .26 0.04 2.50 .0086 .05 .77 0.016 .39 .28 .008 .05 .69 0.016 .31 .25 Zu ly 28 Close Change 0 018i 27 Oil 04 002b 3 00 Up .50 018a 0086 OS 08a 74 Up .06 016 37 Up .04 08b 085a 16a 27 .06a Total 70,500 10,000 10,420 850,000 30,000 397,000 160,000 111,000 93,500 19491950 High Low 88.00 59.00 75.00 51.00 200.00 111.00 35.00 20.00 200.00 185.00 25.00 23 5C 0.35 0.35 0.40 0.40 135.00 95.00 25.00 25.00 0 165 .04 1.28 1.00 38.00 24 50 103.00 100.00 9.00 7 00 COMMERCIAL SHARES Bank of the Philippine High Low Islands ................. 85.00 85.00 Central Azucarera de Bsis......................... Central Azucarera de la Carlotn............... 135.00 135.00 Central Azucarera de Tarlac..................... China Banking Corp . 200.00 200.00 Filipinss Cia de Seguros....................... Marsman & Co., Com. Marsman & Co., Pfd.. Metropolitan Insur ance Co................... Philippine Guaranty Co...................... ,.. Philippine Oil Deve lopment ................. .05 .04 Philippine Racing Club ...................... 1.20 1.20 San Miguel Brewery, Com....................... 28.50 27.50 San Miguel Breweiy, 7 V Pfd................... 97.00 97.00 San Miguel Brewery, 8% Pfd................... 100.00 100.00 Williams. Equipment 85.00 60.00a — 135.00 Off 5.00 is.00a — 200.00 — 26.00b ,40a 45a 120.00b — 26.00b — .05 — 1.20 — 28.50 Up 1.00 97.00 — 100.00 — OVER THE COUNTER July 28 Close Change Total Sales 200 65 10 230,000 12,000 11,908 25 55 Compania Maritima. . Hawaiian-Philippine, Philipoine American Drug. Coin............. Philippine Dorado . . . Provident Insurance Co............................ Syndicate Investments, Pfd.......................... Victorias Milling Co. . Wirhman Philippine Mindanao DevelopHigh 70.00 5.00 130.00 .01 45.00 150.00 * .001 Low 70.00 5.00 130 00 .01 45.00 . .004 160 00 .001 July 31 70.00 5.00 130.00 .01 45.00 .004 150.00 .001 Credit By C. W. Muilenburg Manager, Credit and Collection Department International Harvester Company of Philippines THE Ledger Interchange Bureau, operated under the direction of the Association of Credit Men, Inc., (P.I.), Manila, renders a very valuable service to credit managers whose firms are members of the Associa tion, by giving them the benefit of the ledger experience of other members on a given account. The information supplied gives the experience of those firms having business with the account and lists date of sale, terms, highest credit, amount owing, and amount overdue together with the number of days overdue. Other information is sup plied, such as the manner of payment and the firm’s opinion of the account. The information has proved of inestimable value to credit managers and is a valuable guide to them in the extension of credit. During the past year, 2,062 account names have been processed and cleared through the Ledger Interchange Bureau, with a total of 9,530 company responses. The average response per account name cleared was approxi mately five. t isting of court cases and supplying these lists to ■ * “' members of the Association monthly, is another valuable service performed by the Association. These listings were started in December, 1948, and have been continued and will be continued on a monthly basis with alphabetical listing of defendants and data as to case num ber and court location. The consolidation is alphabetically made at the end of each year. /credit managers in the Philippines have long felt the need for a Credit Manual or Guide, similar to those in use in the United States and other countries. Now that the new Civil Code has been published, the need for this credit guide has become greater, and steps are being taken by the Association of Credit Men to supply this need. It is planned to have this guide contain, among other things, instructions on procedures involved in selling to and collecting from various Government entities. It is also planned to have a chapter on Commercial Law as it is practiced in the Philippines and various interpreta tions of the new Civil Code and the application of these interpretations to business methods and practices in the Philippines. Electric Power Production (Manila Electric Company System) J. F. Cotton Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH KILOWATT HOURS 1950 1949 January.............................. 37,661,000 33,745,000 February........................... 33,828,000 31,110,000 March................................. 38,107,000 34,776,000 April................................... 35,378,000 33,048,000 May.................................... 37,611,000 34,453,000 June.................................... 37,529,000 * 34,486,000 July..................................... 38,810,000 ** 35,726,000 August............................... 35,394,000 September......................... 35,763,000 October.............................. 37,461,000 November......................... 35,856,000 December.......................... 38,673,000 Total.......................... 420,491,000 " Revised *♦ Partially Estimated Output in July set a new monthly output record. Production was 8.7% or 3,084,000 kwhs greater than July, 1949. Final work is being pushed on the new 50,000 kwh Rockwell Steam Station which probably will start operation in September. Real Estate By Antonio Varias Vice-President, C. M-. Hoskins S’ Co., Inc., Realtors REAL estate sales in the Greater Manila area registered during the month of July numbered 545, with a total value of F6,058,320, of which 180 sales, with a total value of P2,995,048, represented deals within Manila 299 proper and 365 sales, with a total value of 1 * 3,063,048, are in the suburbs. A few of the larger properties which changed hands during the month were: A property with a lot of 2,914.6 square meters at Plaza de Conde, Barraca and Urbiztondo Streets, San Nicolas, sold by Rafael Corpus, et al. to Florencio Reyes for P370.000; A property with a lot 1,701.1 square meters at San Luis and L. Guerrero Streets, Ermita, sold by the Luneta Motor Company to the Philippine Manufacturing Com pany for Pl70,000; A property with a lot of 678.8 square meters at Ongpin Street, Santa Cruz, sold by Aurora T. de Hidalgo to Angela S. Vda. de Villongco for P120.000; and the property ad joining the Philippine Education Company at Castillejos Street, Quiapo, with an area of 4,171.9 square meters and occupied by some old houses of tenants and squatters, sold by Joaquin Zamora to Tomas de Vera for Pl 13,000. Real estate mortgages placed in the Greater Manila area during the month numbered 319 with a total value of P7,201,342, of which 137 mortgages, with a total value of ?4,894,736 are in Manila proper and 182 mortgages, with a total value of P2,306,606, are in the suburbs. Monthly figures of sales and mortgages as compiled from reports of the offices of the Registers of Deeds of Manila and suburbs are: REAL ESTATE SALES (January to July, 1950) Month, 1950 January......... February....... March............ April.......................... May.......................... June.......................... July........................... 267) 240) 239) 146) 225) 196) Monthly Average. . . 180) P4.486.846 474) 3,002,789 404) 2,660,652 455) 1,757.506 351) 5,715,108 413) 3,508,044 405) 2,995,048 365) P3.554.460 741) 3,703,126 644) 3,561,944 6943 3,176,939 497) 2,567,044 638) 2,180,895 601) 3,063,272 545) P8.041.306 6,705,415 6,225,596 4,934,445 8,282,152 5,688,939 1493) P24,125,493 2867) P21.810.680 4360) 217) 3,446,499 410) 3,115,811 62.3) 6,058,320 P45.936.173 6,562,310 Month, 1950 January.................... February.................. March....................... May.......................... j»iy::::::::::::::: Monthly Average. . . ESTATE MORTGAGES (January to Mamla Suburbs 139) P3.054.080 216) P2,837,526 191) 3,427,844 223) 3,141,507 181) 5,132,988 232) 2,946.095 131) 3,928,477 202) 2,388,683 471) 4,086,336 245) 2,763.435 164) .3,197,960 199) 2,568,183 137) 4,894,736 1S2) 2,306,606 July, 1950) Combined 355) 414) 413) 333) 416) 363) P 5,891,606 6,569,351 8,079,083 6,317,160 6,849,771 5,766,143 1114) 27,722,421 1499) 18,952,035 2613) 159) 3,967,463 214) 2,707,434 377) 319) 7,201,342 46,674.455 6,667,779 Ocean Shipping and Exports By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for the first half of 1950 amounted to 1,180,857 tons, as against 1,285,195 tons for the first half of 1949, or .practically 100,000 tons less this year than last year. Exports of most commodities were about the same for both periods, with lumber and logs showing an increase for this year. Scrap metal exports showed a considerable falling off, and sugar shipments were about 70,000 tons behind last year’s figures for the half year. Total exports for the first six months of 1950, as com pared with the first six months of 1949, were as follows: First half 1950 First half 1949 Alcohol ............................... 162 tons 275 tons Bamboo poles.................... 2 ” — Beer....................................... 161 ” 1,201 ” Betel-nut............................. 1 ton — Buntal fiber....................... 93 ” 53 ” Cigars and cigarettes. . . 47 ” 40 ” Coconut, desiccated........ 57,191 ” 48,868 ” Coconut oil........................ 22,479 ” 25,757 ” Concentrates, copper.... 15,393 ” 13,033 ” Concentrates, gold........... 2,586 ” 1,270 ” Copra.................................... 230,084 ” 239,340 ” Copra cake/meal.............. 26,904 ” 33,034 ” Embroideries...................... 967 ’’ 673 ” Empty drums: cylinders.. 2,523 ’’ 2,395 ” Fish, salted........................ 74 ” 81 ” Foods, canned................... 13 ” 1 ton Fruits, fresh....................... 789 ” 1,034 ” Furniture, rattan............. 4,482 ” 3,663 ” Glycerine............................. 871 ” 952 ” Gums, copal....................... 351 ” 337 ” Gums, elemi....................... 27 ” 21 ” Hemp.................... 343,941 bales 292,668 bales Hemp, knotted.................. 101 tons 19 tons Household goods.............. 2,627 ” 1,263 ” Junk, metal........................ 11,661 ” 58,920 ” Kapok.................................. 139 ” 188 " Logs...................................... 15,354,188 bft. 8,820,905 bft. Lumber................................ 16,411,487 ” 12,986,580 ” Molasses.............................. 29,131 tons 55,717 tons Plywood............................... 265,114 sq. feet — Ores, chrome...................... 108,908 tons 160,126 ” Ores, lead............................ 387 ” — Ores, iron............................ 175,701 ” 123,172 ” Ores, manganese.............. 18,083 ” 8,874 ” Pineapples, canned........... 27,531 ” 18,360 ” Rattan, palasan................ 849 ” 638 ” Rope..................................... 1,404 ” 1,479 ” Rubber................................. 1,258 ” 540 ” Shells..................................... 190 ” 244 ” Shell, buttons.................... 24 ” 10 ” Skins..................................... 519 ” 474 ” Soap...................................... 31 ” 16 ” Sugar..................................... 304,806 ” 379,324 ” Tanning............................... 179 ” 201 ” Tobacco............................... 1,035 ” 2,239 ” Vegetable oil products ... 284 ” 122 ” Transit cargo..................... 2,677 ” 2,366 ” General merchandise.... 18,715 ” 16,174 ” Lumber By Luis J. Reyes Philippine Representative, Penrod, Jurden & Clark Company THERE is marked activity on the part of the bigger and better established sawmills, many of which are now fully booked until the end of the year. During the month of June, there was inspected for export by the Bureau of Forestry a total of 9,578,229 board feet of timber of which 5,469,823 board feet went to the United States, 1,584,406 to Japan, 602,002 to South Africa and 1,921,998 to other countries. Of these shipments, logs constituted 55% of the total and lumber 45%. As report ed by the Bureau of Forestry, the shipments of logs and lumber abroad by local companies during the month of June were as follows: Shipper Xmounfs Destination inspected Lumber in board feet Logs Remarks Nasipit Lum ber Company United States. .. Canada............. South Africa.. .. 1,152,008 : 97,201 1,291 1,012,885 213,739 Western States Canada South Africa Basilan Lum ber Company United States... Hongkong, BCC 353,767 625,667 48,936 120,978 Western States Hongkong, BCC Lumber Company United States. .. 529,114 152,870—Western States 114,831—Middle States 261,413—Eastern States South Africa.... Ireland ............ 161,224 78,132 South Africa Dublin, Ireland Santa Clara Lumber Co. United States... 157,288 432,955 Lumber—Western States Logs—182,981—Western 249,974—Eastern Canada 30,012 Canada Western Min danao Lum. Co. Inc. United States.... Japan ............... 357,153 751,457 118,155 Eastern States Okinawa, Japan Woodcraft Tnpan 673,484 Japan South Africa Works, Ltd. South Africa.... 133,743 Marsman Development Co. United States. .. 303,712 128,769—Western States 174,943—Eastern States 300 Dad Lumber Japan................ 235,579 Japan Woodworks, United States... 179,982 168,866—Western States Inc. 11,116—Eastern States Hongkong, BCC. 176,757 Martha Lum- United States.. . S00.392 Eastern States ber Mill Japan................. 200,035 Japan Reynaldo United States... 47,327 Western States Lumber Co.. Getz. Bros & Co. Hawaii.............. 5.01! Gonzalo Puyat Hawaii.............. 240 Taligaman Lumber Co. Formosa............ 574,257 Formosa Gulf Lumber Company South Africa.... 305,744 Total....................................... 4,312,294 5,265,935 Grand Total................................ 9,578,229 Bd. Ft. The table shows that the United States took about 5,500,000 board feet as compared to a little over 4,000,000 shipped to other countries. About one-half of the amount shipped to the United States was in round logs which go largely to the veneer and plywood manufacturers. Japan, on the other hand, led all other countries, followed by Hongkong, South Africa, and Formosa. Shipments for the month of July are expected to be big, but might be affected by typhoons and heavy rains which generally occur in the Philippines during these months. In the Manila market, wholesale prices have remained low, as in May, namely: Pl65 for tangile and red lauan, P150 for apitong, and P135 for white lauan. A year ago this month, lumber prices were P10 lower, which was the cause of the closing down of quite a number of mills. Prices will, in all probability, remain unchanged for the month of July as there will likely not be an over-supply of lumber in the local markets because of the big demand for Philippine logs in Japan and elsewhere. It is also likely that the Korean conflict will cause a greater demand in neighboring countries such as Hongkong and Formosa which have lately shown a marked increase in the importa tion of Philippine woods. Mines By Chas. A. Mitke Consulting Mining Engineer May and June Production Company Acoje Mine.......................... Mon ths April Tons 5,699 Value Pl 96,000 Atok Mine............................ May 13,445 301,319 June 13,370 311,908 Balatoc Mine....................... May 18,251 262,668 June 36,620 542,261 Benguet Mine....................... May 13,578 215,371 June 25,158 405,268 Consolidated Mines........... May 24,000 480,000 June 10,000 200,000 Lepanto Consolidated........ May 16,025 533,650 June 30,234 986,620 Mindanao Mother Lode... May 9,000 323,085 June 9,300 306,786 Surigao Consolidated.......... May 9,360 225,200 June 8,966 220,080 IT is a recognized fact that the Philippines must in crease its production to correct the present difficult economic situation. It is impossible, however, to increase production without the use of private capital. The greater the production the more the capital necessary. Domestic capital, however, does not exhibit the pio neering spirit that characterized the early growth of the United States. While willing to invest in mining enter prises after they have reached the investment stage, it does not care to make the venture in the early years in creating possibly great enterprises out of virgin undevel oped mineral lands. It prefers to allow foreign capital to take the risk and carry such enterprises through the spe culative period. Much has been said, over and over again, that the Philippines welcomes foreign capital, particularly Amer ican capital, to assist in the development of its vast natural resources. So far, however, this has been merely lip-service as absolutely nothing has been done to provide a “climate” attractive to American and foreign capital. In fact, at the same time that money is being raised to “sell” the Philip pines to American capitalists, steps are also being taken to' repel that capital from coming to these shores. This is a peculiar situation. On the one hand, the Filipinos invite capital to come in; on the other hand, they do many things to keep it out. Take for instance the recent two alien registration laws which require aliens, including American citizens, to pay Pl00, plus documentary stamp costs, to register. This law does not apply to Filipinos but is directed solely against aliens, including Americans, and is, therefore, class legisla tion in that it is imposed on one section and only one sec tion of the population. After the billions that the United States has poured into the Philippines, and the expressed hopes that more will follow, this seems to be a very short-sighted policy. To paraphrase Dale Carnegie, it might be described as a good example of “How not to make friends and influence people”. Such action, coming on top of other recent dis criminatory measures is definitely not conducive to amic able relationships. Not only are resident aliens compelled to pay this tax, but American visitors, tourists and American investors arriving to look the situation over, are penalized if they remain over 30 days, and are required to pay the Pl00 alien registration fees. Cases have also been known where reputable persons coming to the Philippines on business have been subjected to the indignity of personal search. One such instance was given wide publicity in the newspapers recently. A repre sentative of SCAP, arriving on official business, was the victim. This is not exactly the way to create a “climate” that would encourage foreign investment. J^eferring specifically to mining, there are other dif ficulties which a foreign investor encounters. In the Philippines, as in other countries, mining is supervised and controlled by the Government. After the Battle of Manila Bay, the United States Congress in 1902 included a mining law for the Philippines in the “Philippine Bill” authorizing the organization of the government. Under this Act, titles to mineral lands were initiated by discovery of minerals therein. The title be came complete upon location and record of the claim in the Office of the Mining Recorder. The right to such claim could be held indefinitely upon the performance of at least P200 worth of annual development work on the claim. At any time, should the claim owner desire, he could ac quire a patent to his claim by proving that he had per formed at least P 1,000 worth of work on the claim and paid the customary fees. On November 15, 1935, such location, registration, and patenting of mining claims was suspended under the new Constitution of the Philippines. The National Assembly, after the inauguration of the Commonwealth, created the Bureau of Mines under the Department of Agriculture and Commerce. The duties of 301 the Bureau of Mines, with certain exceptions, are the same as the duties of similar bodies in other countries. It com prises the Geological Survey Section, the Mining Tech nology Section, the Mineral Lands Administration Section, and Mineral District No. 1, Baguio. It also exercises supervision over the offices of mining recorders. On November 7, 1936, Commonwealth Act No. 137 was approved. This was an act to provide for the conserva tion, disposition, and development of mineral lands and minerals. Commonwealth Act 137 embodied a partial reversion to the old Spanish Law. Under the Regalian Act, all min erals were the property of the crown and a deed to the surface did not carry with it a deed to the minerals beneath unless so specifically provided. Section 3 of Chapter 3 of Commonwealth Act 137 states: “All mineral lands of the public domain and minerals belong to the State, and their disposition, development, or utilization shall be limited to citizens of the Philippines, or to corporations, or associations, at least sixty per centum of the capital of which is owned by such citi zens . . .” The new law (Commonwealth Act 137) substituted 25year government leases for outright patents. It also required a locator to determine within 4 years whether or not his claim was worthy of being leased. If he did not apply for a lease before the termination of the 4 years, the land was declared forfeited and open for relocation by someone else. Inasmuch as the Philippines is a semitropical country, with an average rainfall of 150 inches, and a dense tropical growth covers most of the mineralized areas, the prospecting period is necessarily limited to some 4 or 5 months in the year. It is impossible to study out crops that are covered with thick wild “cogon” grass grow ing to a height of 5 feet or more or with other forms of vegetation that are too green to bum except during the very short dry period. Apparently the framers of the law were possessed of unwarranted fears that mining booms would occur, result ing in the “location” of a large part of the Islands as min ing claims, for they limited the area of mineral ground that could be located by any one individual to 3 claims on the same vein or lode. Philippine mining claims are 300 by 300 meters. This is approximately 900 by 900 feet. Three claims on a lode give a total length of approximately 800 meters or 2700 feet. If the claims are located end to end, adjoining each other along the lode, with the vein running down the center, there would be only 150 meters or 300 feet on either side to cover the extension of the vein in depth. Should the vein dip at an angle of 45° or flatter, the mine operator could follow his ore down to a depth of only 150 meters, or 450 feet before passing into someone else’s ground. Also, if the vein is narrow, and most gold veins in the Philippines are narrow, the tonnage of ore which might be developed to this depth (150 meters) would not justify the large expenditures usually nece.ssary for surface treatment plants. This clause should be liberalized if large mining developments are anticipated. The procedure involved in the securing of mineral leases is complicated and expensive,—far too expensive for the average man. A minimum of P 1,000 per claim is a fair estimate. Under the United States mining laws, only a small percentage of claims are ever patented. By far the majority are held merely by location and performance of annual assessment work. In the Philippines, however, application for government leases—which take the place of patents—is compulsory. The only alternative is forfei ture of the property. The vast amount of detail work required in a Bureau of Mines survey, with all its double and triple checks, its volumes of computations, and checking and double check ing of long tie-line surveys, seem unnecessary and too ex pensive to be of practical value, particularly when com pared to mining companies’ surveys. After the lease has been secured the lessee is required to pay an annual rental in advance of Pl per hectare or fraction thereof and to perform P200 worth of assessment work annually on each claim. Should he proceed with the development of his properties, he must pay a gross produc tion tax on all minerals extracted or produced from his mineral lands. In the case of gold mines, this consists of a graduated tax starting at 1J4% of the gross value of the output and increasing to 5J^% maximum depending on the value of the ores produced. This expense is in addition to the regular corporation or individual income tax. In addition, in the Internal Revenue Code, Common wealth Act 466, approved July 1, 1939, Sec. 241 requires the payment of an occupation fee of Pl per hectare begin ning 2 years from the date of registration of the mining claim and on the same date thereafter until lease has been granted. Why this should have been included in the Rev enue Act instead of the Mining Law is difficult to under stand. Also why a man should have to pay an occupation tax on a property that he may later discard as valueless and on which he may never apply for a lease, is also hard to understand, particularly when, as is often the case, some one else is paying a tax on the surface area. The provisions of the Mining Act covering conflicts and disputes arising out of mining locations are cumber some, to say the least. While conflicts on overlaps are required to be submitted to the Bureau of Mines, that body is powerless to make final decisions. After the delib erations have consumed anywhere from 6 months to a year, the protestant can appeal his case to the Department of Agriculture and Natural Resources before filing suit or he may go direct to court and repeat the proceedings origin ally heard in the Bureau of Mines. The duplication leads to nothing but delays. Moreover, after a protest has been dismissed, protestants can use the same case as a basis for an adverse claim and proceed to try the same in a court of first instance. The present law offers every opportunity to claim jumpers to hold up legitimate work for indefinite periods in the hope of obtaining monetary settlements to which they are not entitled. This retards the opening of new ■producing mines, and gives no assistance to genuine dev elopers of future producers. Some deterrent should be placed on such procedure, possibly the requiring of the filing of a substantia! bond by persons filing overlap pro tests. Either the hearings before the Bureau should be elim inated entirely and the case go to court direct, or the Bureau should be granted power to render final decisions. More over, a conflict which has been dismissed by the Bureau should not be permitted to become the basis of an adverse claim. All the present operating mines were located and developed under the old mining law. The full effect of the new law, which was enacted in 1936, was not felt until after liberation. It is only now that prospectors, locators, and developers of mining property are beginning to realize what a hindrance it is to mine development. Not one single property has gone into operation under the new law. If the Government expects its mining industry to develop and expand, something must be done to liberalize the new mining law, so that it will be a help and not a hindrance in the development of new mines. The prices of all metals are much higher than before the war, some of them, such as lead and zinc, are 4 to 5 times the pre-war figures. If the defects in the Mining Law were corrected, and a favorable climate created for invest ment, mining might have a chance to expand and resume its former status as an important dollar-revenue producer. 302 August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 303 Copra and Coconut Oil By H. Dean Hellis Manager, Philippine Refining Company, Inc. June 16 to July 15 THE Korean hostilities and the resultant rather tense international situation have completely upset all earlier prognostications concerning the world’s fats and oil markets, and particularly here in the Philippines regarding copra and coconut oil. Markets in general have shown a certain amount of nervousness, in most cases being extremely sensitive and reflecting the various turns of events in the war news. For the most part, however, the trend has been definitely and sharply upward, with the consumer trade abroad, particularly in the United States, endeavoring to increase minimum inventories to a point at which there will be more adequate coverage against any possible contingency. For some time past, these buyers, due to the relatively high prices for both copra and co conut oil, have been operating mostly on a “hand-tomouth” basis, buying only spot or nearby deliveries as and when required. The present situation, however, is somewhat different in their desire to build up their stock positions within reasonable limitations. Also, just prior to the outbreak of hostilities in Korea, another unexpected situation arose in the Philippine copra market, and this was the reported purchase by Japan of some 23,000 tons of copra for July/August/September shipment at prices averaging about $185 per ton c.i.f. Japanese port. This business was repprtedly done under the present Trade Agreement between the Philippines and Japan, but even at this late date, several weeks there after, it is very difficult to ascertain actually what tonnage was sold. There has been considerable rumor that certain contracts have been cancelled, in some cases because the credits were not forthcoming on time while in other instances shippers were having difficulty in arranging the necessary export permits and licenses pursuant to Central Bank requirements. We are, therefore, inclined to believe that there will be far less than the reported 23,000 tons sold, actually shipped to Japan during the period indicated, particularly in view of the difficulties being encountered when meanwhile copra prices have advanced so sharply. As the period under review opened, the current market for copra was nominally about $165 c.i.f. Pacific Coast, with sellers holding off and not showing much interest to operate. Much the same was true in connection with f.o.b. quotations, with buyers indicating their views at $165 f.o.b. As the period closes, however, we find buyers willing to pay $195 c.i.f. Pacific Coast, with sellers generally holding for $197.50 to $200 c.i.f., and business done at $195 and $197.50 f.o.b. for first half of August shipment. A fair amount of business has also been done c.i.f. and c. and f. terms to Europe at steadily advancing prices, the buyers in Europe likewise evidencing some nervousness regarding the tense international situation. Only during the short period between about July 6 and July 12 did the copra and coconut oil markets display any signs of perhaps becoming easier after the initial rise during the second half of June, but this decline in prices was very short-lived and moderate, only to be followed immediately by even a sharper advance than previously experienced. All in all, we would say that considerable copra for export has been sold during the period under discussion for nearby, July, and August positions, and it has become most difficult to properly judge future probabilities, as Ideal for reference in travel offices and shipping rooms— ACCURATE DETAILED UP-TO-DATE Size 33” x New Wall Map OF THE PHILIPPICS By Manuel T. Cunanan B Frmd.ly printed in dear, attractive a Show. tlx- important new ,-ilies— • l.-.iturcs the division of Mindoro into Mindoro Orc. 4 Mindoro Or. a Three inset maps: 1. Physical Map of the Arel.ipdago 2. Philippines’ Physical 4 Eeonon.ic Unframed, only .................... P 8.00 Framed .................................. 18.00 requirements to tile average diet. Manufactured in the United States and Repacked by BOIE-WATSONAL LABORATORIES ^Multiple Vitamins Supply daily vitamin Cod Liver Oil Specific against rickets and the resulting bone malformation. Liver, Iron, and Vitamin B-Complex Specific against simple anemia and corresponding blood de ficiencies. BOIE-WATSONAL MULTIPLE VITAMINS And Mineral Capsules Lit At all Leading Drug Stores throughout the Islands Philippine American Drug Co. (BOTICA BOIE) On the Escolta. Manila CEBU ILOILO LEGASPI DAVAO 304 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 much will depend upon the developments in Korea and possibly elsewhere, also on how much short-covering will have to be done by suppliers and sellers in the Philippines against their sales already made. Locally in Manila the copra market has followed much the Same pattern as the export market, with prices up from a low of P30 at mid-June to about P35 or P36 as we close at mid-July. as usual, and though there has been increased activity on the part of coconut oil buyers abroad, the coconut oil markets have continued to lag behind most of the ex citement in the copra market. Accordingly, we have not seen quite the same proportional increase in oil prices, which have advanced only from around 13-1/4 cents to about 14-1/2 cents c.i.f. Atlantic Coast. In view of the firm copra situation, however, undoubtedly this market must soon follow, as, obviously, sellers are reluctant to offer. z^opra exports during the month of June, 1950, amounted to 48,451 tons, as compared to 35,713 tons during May, 1950, and 34,748 tons during June, 1949. The total for the January through June period in 1950 amounted to 230,034 tons, against 239,340 tons for the same period last year. June, 1950, copra exports are broken down as to destination, as follows: United States Pacific Coast................................................ 21,359 tons Atlantic Coast.............................................. 4,227 ” Gulf Ports..................................................... 3,029 ” Canadian Pacific Coast..................................... 1,500 ” Europe.................................................................... 5,600 ” Japan................................................................. 3,801 ” South America...................................................... 6,635 ” Palestine................................................................ 2,300 ” 28,451 tons Coconut oil exports for May, 1950, amounted t-J only 3,635 tons, as compared to 3,256 tons during May/ 1950, and 5,681 tons during June, 1949. The total exports for the period January through June, 1950, amounted to 22,479 tons, against 25,757 tons for the same period last year. All of the June, 1950, exports of oil were shipped to the United States Atlantic Coast. Along with all other markets, the market for copra meal has also improved considerably, to a point where at close a price of about $74 c.i.f. Pacific Coast is obtainable. As far as we know, there still has been no business done from the Philippines against Denmark’s latest ECA allo cation of $400,000 for Philippine copra cake/meal. summarizing, and as previously stated, the future trend of the copra and coconut oil markets is presently very confusing and difficult to foresee, though it now will not surprise us any to see still higher prices than those in effect as we does. Copra production throughout the Philip pines should be very good during the next few months, and were it not for the Korean and international situations we still incline to the belief that prices for the remainder of the year would be considerably lower. With the situa tion as it is, however, it is anyone’s guess as to the future, even the nearby future, and therefore it becomes dangerous speculation for any trader who does not keep as closely balanced a position as possible. If the international situa tion should worsen considerably, which we hope will not be the case, it is quite possible that we may see certain price controls made effective again in the United States, which, if done in the case of copra and coconut oil, may bring about a complete change in the present picture. ‘Buy Blational City ‘Bank Travelers Checks If you’re wise you’ll make reservations for i hotels, train berths, ships, planes to avoid a spoil ed trip. Why take chances with your travel money? Carry National City Bank Travelers Checks and protect yourself against theft or loss. Your money refunded if lost or stolen. NCB Travelers Checks faithfully guard your funds wherever you travel—at home or overseas, and save you needless worry. Because NCB Travelers Checks are backed by America’s greatest World Wide Bank, they, are known and accepted everywhere. In denom inations of $10, $20, $50 and $100—good until used. THE NATIONAL CITY BANK OF NEW YORK 9irit in World-Wide Banking Branches in the Philippines MANILA Main Branch: Juan Luna St. Port Area Branch: 13th Street PAMPANGA: Clark Field CEBU: Cebu City August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 305 Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from June 15 to July 15, during which time copra see-sawed up and down due to local speculation and mostly to personal guesses as to what might happen in regard to the Korean situation. Nuts were plentiful during the period; so much so that some planters and contractors who ordinarily were 100% desiccated coconut suppliers turned to the tapahans and started making copra with their surplus nuts. Despite a sudden copra price rise near the end of the period, desiccated coconut manufacturers were well sup plied with nuts and paid prices considerably below the copra equivalent. Labor difficulties were not much in evidence during the period and most factories ran at peak production. A certain amount of stock piling due to the troubled world condition, was in evidence but not to the extent that it was in 1941, a pre-war year. The shipping statistics for the month of June follow: Shipper Pounds Franklin Baker Co...................................................... 5,533,782 Blue Bar......................................................................... 1,486,810 Peter Paul Philippine Corp..................................... 1,784,200 Red-V Coconut Products, Ltd............................... 4,221,500 Sun-Ripe Coconut Products Inc............................ 750,880 Standard Coconut Corp............................................ 0 Cooperative Coconut Products Inc....................... 805,500 Tabacalera...................................................................... 280,000 Coconut Products (Phil.) Inc................................. 451,800 Luzon Desiccated Coconut Corp............................ 0 15,314,472 pounds Note: Zamboanga Factory production........ 539,480 lbs. Lusacan................................................ 947,330 ” Total Blue Bar Shipment.................. 1,486,810 lbs. Sugar By G. G. Gordon Secre tary-Treas urer Philippine Sugar Association THIS review covers the period from July 1 to July 31, 1950. New York Market: After the advance recorded during June, July opened dull but unchanged, there being sellers of Puerto Ricos, Cubas, and Philippines at 5.90/, but buyers were not interested above 5.85/. However, influenced by the strong pressure of refined sugar with drawals, the market on July 5 advanced to 5.90/ on sales of Cubas and Puerto Ricos for July and August arrival. There were further offerings at 5.90/ which were all taken on July 6, including over 12,000 tons Philippines for August arrival. The market closed with the tone firm, there being no further sugar on offer. There was considerable discus sion in sugar circles as to the possibility of a quota increase and its effect on the market. Justification for an increase would be that refined distribution to the end of June was 150,000 tons ahead of last year. On the 7th sellers were talking 6/, but buyers sat tight in the belief that some action on increasing the quota was probable. During the week, advances were announced in refined prices up to 25/ per cwt. to become effective at varying dates up to July 17. The demand for refined sugar was stated to be beyond refiners ability to ship, regardless of price. On July 10 the spot price was reported as 5.95/ with the undertone firm and buyers now asking 6/. On July 11 small sales were made for August/September shipment of Philippines at 5.95/ and Cubas for July • shipment at 5.99/. There were indications of considerable quantities being available at 6/ but buyers did not indicate better than 5.95/. On the 12th a strong demand for refined forced refiners into the market and it was estimated that INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS --------- ¥---------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company D. C. Chuan & Sons, Inc. Insular Saw Mill, Inc. 814 Echague 11-30 Soler St. 340 Canonigo, Paco Manila Manila Manila MANILA OFFICE-. 401 FILIPINAS BUILDING 306 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 nearly 100,000 tons, mostly Cubas and Puerto Ricos to arrive up to the end of August, were taken at 6/. The undertone continued firm. On the 13th the Secretary of Agriculture announced an increase in the United States quota of 350,000 short tons, making the total quota 7,850,000 short tons; 98.64% of this increase went to Cuba. This increase failed to weaken the market, which continued very firm on the 14th when sugar was on offer at 6.08/ and 6.10/ with buyers inclined to wait. On the 17th the market continued firm with small offerings at 6.10/ but buyers still holding off. The 18th saw 6.10/ established as the spot price, considerable busi ness being done at that figure. The demand for refined continued at a high rate and this forced refiners to re-enter the raw market. On the 19th the market continued steady, refined demand being reported as strong. On the 21st the market advanced to 6.15/, at which price 27,000 tons covering August, September, and October shipment were taken. On the 24th' an operator purchased Puerto Ricos for September shipment at 6.20/. The market continued firm on the 25th when holders were reported to be expecting a further advance, but on the 26th small quantities were offering at 6.20/ and the market was reported easier with more selling pressure and rumors that the quota would be increased or suspended. The market continued quiet through the 28th and 29th, pending clarification of the situation, it being reported that the United States Govern ment would purchase reserve stocks of Cuban sugar and increase or suspend the quota. The price of the sugar so purchased was not announced, but it was rumored to be 6.25/. On the 31st, it was reported that the Government, in addition to purchasing Cuban reserve sugar, had also purchased Puerto Rico, Hawaiian, and Virgin Islands surplus sugar totalling about 230,000 tons; price unknown. The market, however, continued steady with light offering at 6.23/ but buyers waiting. In addition to the advance recorded above in the United States market, the Cuban world market made a notable advance during the month. On June 30 the spot price quoted was 4.30/ f.o.b. Cuba, and on July 31 this had advanced to 5.90/, which was well above the parity of the United States market price of 5.75/ c. and f. New York (equivalent to 6.25/ duty paid). To the public ap prehension as to possible shortages due to international developments, must be attributed the extraordinary activity during the month. We give below the quotations on the New York Sugar Exchange as of July 31 for Contracts Nos. 4 and 6: Contract No. 6 5.6815 5.65 5.46 5.38 5.39 Contract No. 4 5.87fi September November. January .. March. . . . May.......... July........... 5.49 5.10 5.08 Local Market, (a) Domestic Sugar: The market remained stationary during the month, centrifugal sugar polarizing 97° being quoted at the same figure as in June,— P 15.80 to Pl6.30 per picul. Washed sugar polarizing 99° was also unchanged, being quoted at P19/P19.50 per picul. (b) Export Sugar: There was little export sugar now available and the export price naturally advanced in sym pathy with the New York market. On July 31 it was quoted at P14.70 to P14.80, an advance of P0.50 per picul over the closing quotation in June. Philippine Crop Conditions: Reports on the 1950-51 crop continue to be favorable and an increase of from 30% to 40% over the 1949-50 figure appears to be possible unless adverse weather should interfere. ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS ★ ★★ Operating: General & Sales Office MACHINE SHOPS • STEEL PLATE SHOPS 174 M. de Comillas g STRUCTURAL STEEL SHOPS • WELDING Manila g SHOPS • BLACKSMITH SHOPS • SHEET Tel. 3-29-21 METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 ★ ★ ★ August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 307 Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines THIS review covers the period June 16 to July 15, 1950. During the first half of the period prices in the ter minal markets remained about the same level as at the closing of the previous period, with consumers display ing little interest. If there were any doubt about the pos sibility of the market continuing the downward trend of the past 6 months the outbreak of the Korean War com pletely removed it. It was, however, not until almost two weeks after the hostilities broke out that the markets started to advance, but that was due to scarce offerings and not to heavy buying by the manufacturers, who seem to be well supplied for the time being. Prices in the United States registered increases up to 1-3 4 cents per pound, while in the Philippines prices in provincial markets went up from P2 to P3.50 per picul. New York Quotations: Per lb. June 15 c.i.f. New July 15 York Change Davao I............. 23-1 2c 25-1 8<f + 1-5 8<f Davao JI........... 23-3 8 24-7 8 + 1-1 2 Davao G............. 22-5 8 24 + 1-3 8 Non-Davao I . . . 24 24-3 4 + 3 4 Non-Davao JI 22 23-3 4 + 1-3 4 Non-Davao G. . 16-1 8 17-3 8 + 1-1 4 Philippine Provincial Quotations: Per Picul — Qasis Loose Davao I............. P52 00 P55 50 + P 3 50 Davao JI........... 51 00 54 50 + 3 50 Davao G............. 49 00 51 50 + 2 50 Non-Davao I... Non-Davao JI.. Non-Davao G. . 51.00 47.00 32.50 54.00 + 3.00 49.00 + 2 00 35.00 + 2.50 Pressings in June amounted to 56,102 bales—down 7,941 bales from May but up 10,255 bales from the cor responding month last year. Davao pressings were 33,156 bales, or 59% of the total. For the first half of this year pressings totaled 354,094 bales, compared with 281,641 bales for the same period of last year—an increase of 72,453 bales, or 26%. The following tables show comparative figures for balings and exports for the first half of 1947 through 1950: Exports — First six months Balings — First six months 1950 1949 1948 1947 Davao ................................... Albay, Camarines and 166,038 112,696 116,744 187,923 Sorsogon.......................... 89,343 63,449 112,069 119,514 Leyte and Samar.............. 58,436 60,853 65,038 39,562 All Other Non-Davao .. . 40,277 44,643 68,395 34,585 Total (Bales)............. 354,094 281,641 362,246 381,584 1950 United States and Canada 157,669 Japan.................................... 50,724 Continental Europe......... 55,296 United Kingdom............... 37,204 China.................................... 7,960 India..................................... 3,830 Korea................................... 3,100 South Africa....................... 2,885 Australia and New Zea land................................... 625 All Other Countries .... — Total (Bales)............. 319,293 266,054 365,398 364,748 1949 1948 1947 100,092 166,279 271,057 75,777 83,175 1,600 59,677 57,926 64,955 17,688 47,185 18,570 7,673 5,988 831 2,181 490 4,850 2,616 1,460 2,000 350 42 . — 2,853 885 ^ach,ne,v Operates Worn p&H V^'dln9 Electrodes Save time, and the cost of replacement parts by repair welding with P&H Electrodes. P&H offers types and sizes for welding all kinds of steels, cast iron, sheet metal, etc.—also for building up and for putting hard surface; on worn parts. Using P&H Electrodes is your assurance of easier-lo-use electrodes and high quality welds because they are made by one of the world’s largest makers as well us users of arc welding equipment. Cel your P&H Electrodes from your P&H Representative. P&H ARC P&H WELDING EQUIPMENT DISTRIBUTORS THE EARNSHAWS DOCKS & HONOLULU IRON WORKS CORNER TACOMA & SECOND STREETS BRANCH AT: BACOLOD. PORT AREA. MANILA TEL. 3-35-11 OCCIDENTAL NEGROS 308 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco Association, Inc. IT is estimated that over 25,000 hogsheads of Virginia leaf, loose leaf, and scrap tobacco have arrived in Manila during 1950. With this tobacco on hand there is sufficient material to cover the needs of local fac tories, old and new, for at least 6 months, that is, for the remainder of 1950. If before the end of the year additional Virginia leaf is allowed to be imported, as may be warranted by the needs of different manufacturers, there will be a steady supply of cigarettes to meet the demand of the market; otherwise, the black market for this commodity will again flourish toward the end of this year. Purchasing of the new crop in Pangasinan, La Union, Ilocos, and Visayas is very slow, as a major part of the crop is already in the hands of merchants. In Isabela and Cagayan most of .the crop is already in the hands of mer chants and manufacturers, and it is expected that the purchasing season (acopio) will be over by late August or early September. The crop in Isabela and Cagayan has not come up to expectations, due to rains in the pre harvest, which “washed” the leaves. A big portion of the crop will be washed, i.e. leaf with little gum, elasticity, and flavor. To the cigarette manufacturers, under present circumstances when stocks are low, this will be boon as this type of tobacco can be put into immediate use. Some localities have produced very fine quality leaf; thus the reason why some lots have been sold at up to P 70 per quintal (100 lbs.) while inferior leaf sold as low as from P28 to P30 per quintal. This high-priced tobacco is pur chased direct by local factories which compete for these choice lots because of the fine texture and quality, and because there is a high percentage of it that can be used for wrapper and binder, which is scarce. The crop of 1950 is in many respects similar to. the crop of 1938. Imports By S. SCHMELKES Mercantile, Inc. The graph shows the fluctuation in flour arrivals during the first 6 months of this year as compared to the same period last year. It will be noted that whereas the total amount of flour arrived in 1950 is considerably less than arrived in 1949, chiefly due to the controls on wheat flour, nevertheless arrivals in May and June, 1950, show a strong uptrend. ENGINEERS CONTRACTORS MANUFACTURERS DISTRIBUTORS I j SPECIALIZING IN THE FABRICATION AND I ERECTION OF BRIDGES, BUILDINGS AND TANKS Operating MACHINE SHOPS FOR CONSTRUCTION AND REPAIR l'OUNDY FOR CAST IRON, BRASS & BRONZE MARINE REPAIR SHOPS WOOD PRESERVING PLANT Distributor, forALLEN-BRADLEY CO. AMERICAN BLOWER CORK. ARMCO INTERNATIONAL CORP. ARMSTRONG MACHINE WORKS CHAIN BELT CO. OF MILWAUKEE CHERRY-BURRELL CORP. CLAYTON MFC. CO. COFFING HOIST COMPANY DEMPSTER BROTHERS, INC. DODGE MANUFACTURING CO. FAIRBANKS, MORSE & CO., INC. FIRTH STERLING STEEL CO. GARDNER-DENVER COMPANY GAR-BRO MANUFACTURING CO. GIANT MANUFACTURING CO. JOHNSON SERVICE CO. LANDIS MACHINE CO. LINCOLN ELECTRIC CO. MARION POWER SHOVEL CO. MYSTIK ADHESIVE PRODUCTS PIONEER ENGINEERING WORKS, INC. SHEPARD ELEVATOR CO. SMITH WELDING EQPT. CORP. STAl’PLES & PFEIFFER TUBE-TURNS, INC. WALSH REFRACTORIES CORP. WESTERN BRASS WORKS WESTERN ROCK BIT MFG. CO. YORK CORPORATION Atlantic, Gulf & Pacific Co. of Manila (PHILIPPINE CONTRACTORS SINCE 1905) EXECUTIVE OFFICES * INGINEERING DIV. MERCHANDISE SALES DIVISION STRUCTURAL S MACHINE SHOPS Robert Dollar Bldg., Muelle del San Francisco & 23rd St. Port Area, Manila Barrio Punta, Sla. Ana, Manila • Tela: 6-75-31 * 6-75-32 » 6-75-33 Tel: 3-36-61 (Connecting all Dcpta.) August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 309 ALL figures are in kilos with the exception of those for foodstuffs which are given in package units. Commodities June, 1950 June, 1949 Automotive (Total)............................... 1,241,216 3,050,329 Automobiles......................................... 51,493 807,028 Auto Accessories................................. 1,733 28,308 ” Parts............................................ 223,845 453,616 Bicycles................................................. 1,161 48,966 Trucks.................................................... 42,588 Truck Chassis..................................... 543,305 611,700 Building Materials (Total).................. 17,811,719 16,608,306 Board, Fibre........................................ 78,069 91,901 Cement.................................................. 11,408,968 10,686,698 Glass, Window..................................... 271,311 593,470 Gypsum................................................. 1,214,871 134,640 Chemicals (Total).................................. 5,031,869 3,355,967 Caustic Soda........................................ 835,665 221,839 Explosives (Total).................................. 113,394 184,567 Firearms (Total)..................................... — 29,715 Ammunition.......................................... — 7,295 Hardware (Total)................................... 6,608,002 5,692,774 Household (Total)................................. 788,391 2,039,061 Machinery (Total)................................. 2,857,044 2,079,788 Metals (Total)......................................... 9,114,618 91,785,978 15,557,034 Petroleum Products (Total)............... 74,150,863 Radios (Total).......................................... 25,787 104,506 Rubber Goods (Total).......................... 411,013 918,346 Beverages, Misc. Alcoholic.................. 8,993 77,898 Foodstuffs (Total Kilos)...................... 32,966,328 63,862,722 Foodstuffs, Fresh (Total).................... 107,136 117,047 Apples.................................................... 3,260 27,149 Oranges.................................................. 20,353 4,903 Onions..................................................... 37,073 9,267 Potatoes................................................. 13,880 16,607 Foodstuffs, Dry Packaged (Total) ... 22,841 78,875 Foodstuffs, Canned (Total)................. 472,572 574,887 Sardines................................................. 173,925 136,456 Milk, Evaporated............................... 198,101 219,378 Milk, Condensed................................ 23,000 18,250 Foodstuffs, Bulk (Total)...................... 707,691 1,357,644 Rice........................................................ — 489,989 Wheat Four.......................................... 673,113 794,211 Foodstuffs, Preserved (Total)............ 249 970 Bottling, Misc. (Total)......................... 1,524,472 2,875,834 Cleansing and Laundry (Total)......... 674,078 525,576 Entertainment Equipment (Total) . . 17,117 11,295 Livestock-bulbs-seeds (Total)............ 608 6,089 Medical (Total)....................................... 666,768 414,799 Musical (Total)....................................... 39,757 109,890 Office Equipment (Total).................... 107,474 132,621 Office Supplies (Total).......................... 84,164 52,876 Paper (Total)........................................... 7,933,463 5,118,585 Photographic (Total)............................. 63,238 31,412 Sporting Goods (Total)........................ 14,684 37,228 Stationery (Total).................................. 709,338 426,497 Tobacco (Total)...................................... 6,314,861 1,857,135 Chucheria (Total).................................. 99,089 108,243 Clothing and Apparel (Total)............. 175,269 442,553 Cosmetics (Total)................................... 24,864 290,246 Fabrics (Total)....................................... 1,380,903 226,456 Jewelry (Total)....................................... — 114 Leather (Total)....................................... 148,963 250,165 Textiles (Total)....................................... 1,590,018 2,771,073 Twine (Total).......................................... 23,847 92,298 Toys (Total)............................................ 23,698 78,127 General Merchandise (Total)............. 611,323 900,862 Non-Commercial Shipments (Total). 45,777 26,441 Advertising Materials, Etc. (Total). 755,197 967,142 Automobiles and Trucks By Karl E. Gay Sales Representative, Ford Motor Company REPORT OF SALES Accumulated to June 30, 1950 Passenger No. % Manila and Northern Luzon Ford......... Mercury. . Lincoln. . . Prefect. . . Chevrolet. Buick........ Cadillac... Make 239 38 7 5 338 50 Nil 24.02 3.82 .70 .50 33.97 5.02 CUTTING COSTS These r&H Values Cut Costs B U T O R S P&H Trucks No. % No. Total % 249 359 27.42 39 54 488 38 7 5 697 50 Nil ON ALL KINDS OF JOBS looking for lower costs on a wide variety of jobs, here's the machine that can help you. A P&H Excavator enables you to handle a wider range of work because it is actually many machines in one. By changing simplified front end attachments, you can use a P&H as a shovel dragline for digging ... as a crane for lifting . as a trench hoe for ditching ... or as a pile driver. This versatility, combined with faster, easier operation, makes P&H first choice for general contracting work the world over. For full details, see your local P6H distributor.. THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Corner Tacoma & Second Branch at BABOLOl) Streets, Port Area. Manila Occidental Negros l ei. 3-35-11 1 310 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 PACIFIC WiCIIANIHSIiVC C (I IS P (Mt A T 10 A 119 Dasnuuinas Manila EXCLUSIVELY REPRESENTING.... CORBIN LOCK COMPANY AMERICAN RADIATOR & STANDARD SANITARY CORPORATION UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries LINDE AIR PRODUCTS CO., INC. “Union” Carbide THE PARAFFINE COMPANIES, INC. “Pabco” Products AMES BALDWIN WYOMING COMPANY BALL BROS. MASON JARS EKCO PRODUCTS CO. MALLEABLE IRON FITTINGS CO. FAIRBURY WINDMILL CO. CAPEWELL MANUFACTURING CO. SLOAN VALVE COMPANY BOMMER SPRING HINGE COMPANY KAISER ALUMINUM COLUMBUS COATED PRODUCTS CO. KEENEY MANUFACTURING COMPANY BADGER METER MANUFACTURING CO. DICK BROTHERS MANUFACTURING CO. CARBORUNDUM COMPANY BADGER FIRE EXTINGUISHER CO. STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING Pontiac............... 17 1 71 17 .89 Oldsmobile......... 2 .20 2 10 G.M.C................. 16 1 76 16 .84 Chrysler............. 21 2.11 21 1.10 DeSoto............... 39 3.92 27 2.97 66 3.47 Plymouth........... 13 1.31 13 .68 Dodge................. 28 2 81 35 3.85 63 3.31 Fargo................... 3 .33 3 .16 International. . . 154 16 96 154 8.09 Willys ............... 90 9 04 34 3.74 124 6.51 Nash.................... 35 3.52 35 1 84 Packard.............. 21 2.11 21 1 10 Studebaker........ 37 3.72 14 1 55 51 2 68 Reo...................... 14 1.55 14 .73 Austin................. 11 1.10 1 .11 12 .63 Hudson............... 3 .30 3 . 16 Renault............... 1 . 10 1 .05 Total........... Provinces Ford.................... Mercury............. Lincoln............... Prefect................ Chevrolet........... Buick................... Cadillac.............. Pontiac............... Oldsmobile......... G.M.C................. Chrysler............. DeSoto............... Plymouth........... Dodge................. Fargo................... International. . . Willys.................. Nash.................... Packard.............. Studebaker........ Reo...................... ’ Austin................. Hudson............... Bedford............... 995 73 40.56 11 6 11 2 1.11 64 35.56 1 .55 1 .55 4 2.22 5 2.78 2 1.11 4 2.22 4 2.22 6 3.33 1 .55 2 111 908 224 39.92 228 40.63 8 1.42 17 3.03 6 1.07 57 10.16 2 .36 2 .36 17 3.03 1,903 297 40.06 11 1.48 2 .27 292 39.39 1 .13 1 13 4 .54 8 1.08 5 .67 2 .27 21 2.83 6 .81 57 7.69 6 .81 6 .81 1 .13 2 .27 2 .27 17 2.29 Total. . . 180 561 741 Philippines, Total Ford.............. 312 27.06 473 32.19 785 29.67 Mercury.... 49 4 25 49 1.85 Lincoln......... 9 .78 9 .34 Prefect......... 5 .43 5 .19 Chevrolet. . . 402 34.87 587 39.95 989 37.38 Buick............ 51 4.42 51 1.92 Cadillac........ 1 .08 1 .04 Pontiac........ 21 1.82 21 .79 Oldsmobile. . . . 2 .17 2 .07 G.M.C.......... 24 1.63 24 .91 Chrysler........ 21 1 82 21 .79 DeSoto........... 44 3.81 27 1.84 71 2.68 Plymouth . 15 1.30 15 56 Dodge........... 32 2.77 52 3.54 84 3.17 Fargo............ 9 .61 9 .34 International 211 14.36 211 7.97 Willys........... 94 8.15 36 2.45 130 4.91 Nash............. 42 3.64 42 1.58 Packard......... 22 1.91 22 83 Studebaker.. 37 3.21 16 1.09 53 2.00 Reo................. 14 .95 14 .53 Austin............. 11 .95 1 .07 12 .45 Hudson.......... 5 .43 5 . 19 White........... 2 .14 2 .07 Bedford.......... 17 1.15 17 .64 Renault.......... 1 08 1 04 Total . . . 1,176 1,469 2,645 Food Products By C. G. Herdman Director, Trading Division, Marsman Co., Inc. THE month of July showed no improvement in local markets insofar as food products are concerned. Shortages previously noted in various lines have be come more pronounced. Many items seem to have been with drawn from the shelves of retailers and are only available in the blackmarket. Many items of fancy groceries which, after all, are not essentials, can not be found even in the blackmarket. August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 311 There have been some serious shortages. Evaporated milk has been decidedly on the short side, particularly in provincial districts. Canned meats which before were in ample supply, are rapidly disappearing and are much more difficult for consumers to secure even at increased prices. Fresh fruits and vegetables, imported, are very scarce. Canned fish stocks apparently are still ample. Butter and cheese are in very limited supply, and cannot be ob tained at all in many groceries. Flour stocks have been far from sufficient to supply the needs of bakeries and manufacturers of alimentary pastes, soda crackers, etc. Many bakeries are reported to be operating only part-time and some have closed altogether because of their inability to secure sufficient flour. This is more noticeable outside of Manila than in the city itself. The situation will be greatly alleviated during August with the arrival of the additional flour purchased by PRATRA over and above the regular monthly quota allotted to im porters. Importations in general are severely affected, even beyond the contemplated restrictions prescribed by law, as very few import licenses have as yet been granted by the new Import Control Board. Reports appearing recently in the newspapers imply that it may be as late as the end of September before the Board will have been able to screen the applications, both of old and new importers. Delay in acting on the applications of established importers is, of course, aggravating the shortages existing in the Philip pines in so many lines of supplies, not only of food products but of merchandise in general. During July the Price Control Administration pub lished ceiling prices on nearly all items of food products, and the expectation is that it will shortly issue additional bulletins establishing ceiling prices in prime commodities in other lines. There were some inconsistencies in the ceiling prices as named on foodstuffs. For instance, on I'm a busy little atom LYON Steel Shelves HAVE WIDESPREAD APPLICATION FOR DISPLAY OR STORAGE OF MERCHANDISE, PACKAGED ARTICLES OR TOOLS AND MACHINE PARTS. SHELVES HAVE LABEL HOLDERS AND ARE ADJUSTABLE EVERY l’/2 INCHES, UP OR DOWN. CLOSED OR OPEN TYPE. EASILY SET UP OR KNOCKED DOWN. STURDY AND BUILT FOR LIFE TIME SERVICE. OLIVE GREEN FINISH. IN SECTIONS OF 36” WIDE, 18” DEEP, 78” HIGH. WE INVITE YOUR INSPECTION TO OUR DISPLAY AT OUR SHOWROOMS Sole Distributors: F. H. STEVENS & CO., INC. I split myself in two, I multiply as many times As I have jobs to do. In summer, winter, spring or fall I'm ready every hour; Just push a switch and watch me zip With... light... or heat... or power. Reddy Kilowatt YOUR ELECTRIC SERVANT El Hogar Filipino Bldg. Juan Luna St. MANILA Du Chin Liu Bldg. Legaspi St. CEBU CITY MANILA ELECTRIC COMPANY 312 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 IF YOUR TIRES ARE LIKE THIS... GOODYEAR'S RECAP PLANT CAN MAKE THEM LIKE THIS... you SAVE 2 WAYS BY RECAPPING GOODYEAR’S expert recapping enables you to gel more mileage from any smooth tire which still has a sound carcass GOODYEAR’S expert recapping costs but 'a fraction of the price of a new tire—provides up to 80% of the original mileage of a tire Let the Goodyear Technical Man inspect your tires — he'll give you expert advice and prompt service. GOODYEAR RECAP PLANT: llth & Atlanta Streets, PORT AREA, MANILA Telephone 3-32-16 coffee in tins several brands of the same quality, priced on the same level in the wholesale market in the country of origin, and costing the same landed in the Philippines, were given price ceilings with a variation as great as P5 a case and even more between these different brands. These inconsistencies are being studied by the Price Control Administration and undoubtedly will shortly be corrected. The Philippine Wheat Flour Board through PRATRA has announced that, beginning with the month of August, monthly flour importation quotas will be allotted only to Filipinos and Filipino entities with the exception that American firms previously established in the flour business will continue to receive the same monthly allotments as before. Shortages existing in many lines of foodstuffs are not due altogether to actual shortage of supply but have been accentuated by the action of many individuals as well as some merchants who have been endeavoring to lay in stocks to guard against a possible stoppage of imports which might develop as a result of the trouble in Korea. Textiles By L. W. Wirth General Manager, Neuss, Hesslein Co., Inc. ARRIVALS of textiles from the United States during July were about 3800 packages of cotton piece goods and 1400 packages of rayon piece goods,—almost double the June arrivals. Under Republic Act No. 426, the most important categories of textiles come under Classification-B (Control led Essential Imports) and are subject to a 60% reduction. The outbreak of hostilities in Korea together with the U. S. Department of Agriculture’s estimate of the smallest cotton crop since 1937 caused a general increase of about 25% in textile prices in the United States. Although the new Import Law was approved on May 19, no new quotas have been issued for a period beyond August 31, and, since quotas are based on values rather than on quantities, the increase in State-side prices, in effect, means a further proportionate decrease in the amount of goods which can be imported under the percentage cuts. Insist on G-E Lamps ELECTRIC PORT AREA (P.I.) INC. GENERAL MANILA A Product of General Electric Co., U.S.A. August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 313 The textile market in the United States as well as in Japan continues to advance, with deliveries becoming more distant, and it must be realized that it would be advisable to release new quotas as quickly as possible for the period September/December, 1950, to afford im porters the opportunity to place orders while they still have a chance to contract at current prices for shipment during the last quarter, otherwise, should the issuance of quotas be further delayed, importers may be compelled to pay still higher prices, with shipments deferred until the first quarter of 1951, causing a further proportionate decrease in the quantity of goods which can be imported. SILVER & JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. 2 JAVA PACIFIC LINE N. V. S. M. “Nederland" Amsterdam Koninklijke Rolterdamsche Lloyd, N. V. Rotterdam Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, ' Selph, Carrascoso S' Janda ON July 6, 1950, the Supreme Court rendered a unanimous decision (U. S. Tobacco Corp. vs. Luna et al., G. R. No. L-3875) in the leaf tobacco case. Two points of interest to business men are embodied in this decision. One is that “all goods including leaf tobacco have been placed under control.” The other is disap proval of “an unbending adherence to a formalism” and of “trivial and questionable legalism.” On this phase of the question the Court said: “Granting the opposite premise, for the sake of this decision, that the petitioner’s importation comes under the provisions of the new law, still, the respondents’ position has behind it no’more than an unbend ing adherence to a formalism utterly unreasonable as applied to this case. The respondents would punish an importer solely for not having a license which at the time of the importation was unnecessary and unavailable. They would confiscate, for this reason, goods which have been brought to the Philippines through the Secretary of Commerce and Industry’s encouragement. In adopting such attitude, the Import Control Board would not only commit grave injustice to petitioner but would subvert the government’s policy of attracting foreign investors and jeopardize one of the principal ends for which the Board was creat ed, namely: conservation of the dollar reserves. “As has been seen, the Secretary of Commerce and Industry, who at the time was the official handling or having direct supervision over import control, not only told the petitioner’s president to go ahead with his proposed importations but commended and applauded his company’s projected venture as in furtherance of the government’s policy of industrialization. There is no valid justification for repudiat ing this assurance after the petitioner has acted on the faith of it. Tri vial and questionable legalism which affects no fundamental principle, no injury to public interest, no outflow of dollars, can afford to yield if for no other reason than to honor and instill confidence in govern ment commitments made through responsible officials. The Secretary of Commerce and Industry’s commitment does not have the legal and formal characteristics of a treaty, and it is far from our thought to in sinuate that said commitment should be so considered, but the under lying principle is the same and may be summoned to the petitioner’s aid.” KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York MANILA VANCOUVER ILOILO JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York To and From SEATTLE CEBU LOS ANGELES and SAN FRANCISCO To and From CALCUTTA, BOMBAY and PERSIAN GULF PORTS PORTLAND ♦ ♦ ♦ 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 RUBBER STAMPS Mean Convenience — Up-to-date Efficiency! JVe make Rubber Stamps for your SIGNATURE FILING INSTRUCTIONS DATERS FREQUENT ADDRESSES RETURN ADDRESS TITLE INDORSEMENT FORMS, etc. MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 IFe quote— We show samples— We fill provincial orders. Top-quality materials Know how accumulated through the years 100% Filipino Craftsmanship 1104 CASTILLEJOS, QUIAPO TEL. 3-22-51 314 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 ★ LUZON NmUDOKINi; COMPANY, INC. Manila ★ FERTILIZERS SULPHATE OF AMMONIA SUPERPHOSPHATES SULPHATE OF POTASH On May 31, 1950, the Supreme Court rendered a deci sion (Luzon Marine Department Union v. Roldan, G. R. No. I. 2660) on what constitutes an illegal strike. The Court said: “Counsel contend ‘that there is no provision of law, decision, ruling or doctrine which provides that a strike called for such a purpose is against the law.’ We have adverted to the ruling of this Court in Rex Taxicab Company vs. Court of Industrial Relations, supra, that in cases not falling within the prohibition against strikes, the legality or illegality of a strike depends, first, upon the purpose for which it is maintained, and, second, upon the means employed in carrying it on. Thus, if the purpose which the laborers intend to accomplish by means of a strike is trivial, unreasonable or unjust (as in the case of the Na tional Labor Union, Inc. vs. Philippine Match Company, supra), or if in carrying on the strike the strikers should commit violence or cause injuries to persons or damage to prqperty (as in the case of National Labor Union, Inc. vs. Manila Gas Corporation, 40 Off. Gaz. 37), the strike, although not prohibited by injunction, may be declared by the court illegal, with the adverse consequences to the strikers. “To summarize, the rulings of this Court in the cases hereinabove cited, are: “1. The law does not look with favor upon strikes and lockouts because of their disturbing and pernicious effects upon the social order and the public interests; to prevent or avert them and to implement Sec. 6, Art. XIV of the Constitution, the law has created several agen cies, namely, the Bureau of Labor, the Department of Labor, the LaborManagement Advisory Board, and the Court of Industrial Relations. (See Sec. 4, Commonwealth Act No. 103; and Executive Order No. 158, dated July 28, 1948.) “2. The law does not expressly ban strikes except when enjoined against by the court; but if a strike is declared for a trivial, unjust or unreasonable purpose, or if it is carried out through unlawful means, the law will not sanction it and the court will declare it illegal, with the adverse consequences to the strikers. “3. If the laborers resort to a strike to enforce their demands, instead of resorting first to the legal processes provided by law, they do so at their own risk, because the dispute will necessarily reach the court and, if the latter should find that the strike was unjustified, the strikers would suffer the adverse consequences. “The Court of Industrial Relations has merely applied to this case the settled doctrines of this Court as above summarized. We reaffirm those doctrines and must, consequently, sustain the resolu tion complained of. “We do not deem it necessary to decide the two collateral issues raised by counsel for petitioner in their memorandum, namely: (1) whether or not the business of the respondent company is coupled with public interest; and (2) whether or not the closed-shop agreement between the respondent company and the U.O.E.F. is valid, legal and binding. These questions do not affect the main issue of the illegality of the strike in question.” The Philippine Match Company case referred to, de cided in 1940, and cited in support of the present decision, declared illegal and unjustified a strike motivated by an unreasonable demand of the labor union for the dismissal of a factory foreman. 'There seems to have been no extension of the date of A effectivity of the new Civil Code. The Code Com mission has indicated that it is their interpretation that the new code will become effective July 1, 1950. In view of the many new provisions, it might be well for all busi ness men to consult their legal advisers before incurring any new obligations or entering into any new contracts. MENZ1 & HI., INC. Iloilo MANILA Cebu J. M. MENZI Bldg. Corner Reina Regente & Soler Streets SWAN, CULBERTSON & FRITZ, INC. MEMBER-MANILA STOCK EXCHANGE Tel. 2-79-29 701 S. J. WILSON BLDG. 143 JUAN LUNA TELS. | 2-74-55 / 2-80-53 August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 315 Philippine Safety Council By Frank S. Tenny Executive Director AT ceremonies conducted at Malacafian on July 14, President Elpidio Quirino accepted an Honorary Life Membership in the Philippine Safety Council. The certificate and other materials were presented by a delegation from the Council Board of Directors. The President expressed his sincere interest in the national safety movement, as led by the Council, and pro mised his continued support. It will be recalled that he created the Fire Prevention Board by executive order upon suggestion of the Council one year ago, and strongly backed the creation by Congress of the new Bureau of Industrial Safety. In addition to conferring the membership, the Council also offered its service® in connection with the Civil Emer gency Administration. Jose Razon, PSC President, and Executive Director and Founder Frank S. Tenny, both stressed the willingness of the Council to participate. In fact, a move toward emergency preparations has already been started by the PSC among its members and clients. The President accepted the offer with thanks. Action on a great variety of safety matters was taken at the July 24 meeting of the Philippine Safety Council. A complete study of the probable effects of atom bombing in this area is being prepared, at the personal request of President Quirino. This report includes both preventive and corrective measures, and will be submitted to the President for possible use by the Civil Emergency Administration. Material is now being gathered from several sources, both here and abroad. The Council is also awaiting action on plans submitted by it to government agencies in connection with the mis use of sirens and red lights on vehicles, and the overissuance of official badges and cards to unqualified persons. A donation of Pl00 was recently made by the Council to the “police bed fund” being raised by the Philippine Chamber of Commerce. This is intended to ease the dis comfort of police officers who must sleep at headquarters while on emergency reserve duty. Problems of traffic congestion at the Redemptorist Church, Baclaran, and at the intersection of Vito Cruz and Taft Avenue incident to events at Rizal Stadium, have been referred to the proper authorities with appro priate suggestions from the Council. The Council has commended the Fire Prevention Board for its initiative in tackling local fire-prevention and fire-protection matters. The Board visited the Balara filters on the 28th to inspect the Manila Water supply system, at the invitation of Director Manuel Mafiosa. Suggestions in connection with gasoline conservation have been submitted to the Mayor’s Traffic Committee. These include elements of parking, buses and jeepneys, taxicab cruising, bus stops, and other related matters. 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 SMITH-CORONA PORTABLE One glance at the new SMITH-CORONA. . . and you're convinced that it's the most beautiful and sturdy portable typewriter you’ve ever laid eyes on! Not just a “new model”. . . it’s a revolutionary all new typewriter. . . with a total of nineteen new features plus fifteen SMITH-CORONA “exclu sives”! Its smart, new Color-speed Keyboard is full standard office machine size. . . has rimless keys colored a restful non-glare green and “comfort shape” to cup your finger tips. ERLANGER & GALINGER, INC. 123 T. Pinpin, Manila • Magallanes St., Cebu City — -----------CATERPILLAR STEPS UP PRODUCTION AND STEPS DOWN COSTS DIESEL ENGINES..—■ TRACTORS MOTOR GRADERS EARTH MOVING EQUIPMENT “Caterpillar" machines will help you lick your pro duction problems with their hard-hitting power, their Tinely engineered design, and tested dependability and lierformance. "Caterpillar" pays off in increased proDIESEI. ENGINES * TRACTORS x- MOTOR GRADERS * EARTHMOVING EQUIPMENT i—KOPPEL—i (PHILIPPINES) BOSTON & 2 3RD STREETS NC PORT AREA • TEL. 3-37-53 1 Branchai: l Bacolod * Hollo * Ctbu * Davao * Cotabato * Zamboanga J 316 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 FOR BETTER SERVICE—Call 3-29-05 ALLIED BROKERAGE ITIIll’IIRITIin Marsman Building Port Area Documents may be delivered to our represen tative in the branch offices of MACKAY RADIO # TELEGRAPH COMPANY, Plaza Moraga and Trade $ Commerce Building. Individual attention and competent supervision given to your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING THE COJLIAS COHPOV Established 1826 Incorporated 1934 COLLINSVILLE, CONNECTICUT Commonwealth Axes Dayton Pattern also Double Bit Patterns for swamping and falling The Collins name on any axe is your guarantee of high quality Obtainable in all the leading Hardware stores everywhere Exclusive Agents CHAM SAMCO & SONS, INC. General Hardware 300-308 Sto. Cristo, Manila, P. 0. Box 928 Telephones 2-81-72 & 2-81-76 Private Exchange connecting all department COST OF LIVING INDEX OF WAGE EARNER'S FAMILY1 IN MANILA FY MONTH, 1946 TO 1949 (1941 = 100) Bureau of the Census and Statistics Manila ltA” Food (59.15) (8. Cloth(0?62) Fuel, Light Misceland Water laneoua (13.94) (17.86) ing Power 1946 January.......... 603.4 759.2 236.4 984.0 363.8 434.8 .1657 February........ 547.2 656.3 236.4 940.3 369.5 460.5 .1827 March.............. 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April................. 556.2 684.1 236.4 910.3 345.5 435.9 .1798 May................ . 545.1 675.6 236.4 762.5 342.3 409.6 .1835 June................ 538.7 666.4 236.4 737.9 343.3 404.2 .1856 July................. 552.7 704.3 236.4 598.9 341.3 364.6 .1809 August............ 477.9 590.0 236.4 384.7 320.9 346.3 .2092 September. . . 477.9 591.3 236.4 378.7 314.5 347.2 .2092 October.......... 487.4 587.2 236.4 382.7 405.8 342.7 .2052 November.... 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December.... 461.9 570.8 236.4 371.9 344.7 302.1 .2165 19472 (100.00) (63.43) (11.96) (2.04) (7.73) (14.48) January........ . 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February.... . 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March........... . 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April.............. . 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May.............. . 381.0 404.4 453.9 250.9 325.4 269.4 .2625 June.............. . 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July............... . 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August......... . 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September. . . 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October........ . 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November... . 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December... . 371.9 395.8 453.9 219.1 298.2 262.9 .2689 1948 January........ . 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February.... . 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March........... . 349.4 361.0 453.9 214.6 308.1 255.9 .2862 April............. . 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May.............. . 349.8 360.2 453.9 214.2 289.7 271.6 .2859 June.............. . 354.3 370.4 453.9 205.2 283.2 262.9 .2823 July............... . 356.4 374.2 453.9 201.3 281.6 262.4 .2806 August......... . 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September. . . 370.6 397.2 453.9 199.2 279.6 260.6 .2698 October........ . 374.9 404.0 453.9 204.8 283.2 257.9 .2668 November... . 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December... . 365.9 389.9 453.9 202.0 282.4 258.9 .2732 1949 January........ . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February.... . 343.8 355.5 453.9 203.0 277.5 258.9 .2909 March........... . 346.3 358.2 453.9 202.0 276.3 258.5 .2896 April............. . 348.7 362.6 453.9 197.6 287.5 257.1 .2868 May.............. . 348.8 362.8 453.9 197.2 287.5 257.1 .2867 June.............. . 349.0 362.9 453.9 203.9 287.5 257.2 .2865 July............... 351.7 374.0 453.9 194.2 265.8 240.5 .2844 August........... . 337.5 351.2 453.9 196.3 266.6 241.2 .2963 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 April............... 331.8 328.6 453.9 237.7 252.9 301.2 .3015 May............... . 320.2 308.6 453.9 244.7 249.7 309.1 .3123 June.............. . 323.1 310 9 453 9 243 5 249.7 319.1 . 3095 July............... . 332.0 322 4 453.9 252.6 249.7 328.7 .3012 i Average number of persona in a family = 4.9 membera. 1 Revised in accordance with the new survey on the “Levels of Living, in Manila” by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. CHRYSLER CORPORATION AIRTEMP packaged Air Conditioning and Refrigeration Exclusive Distributors: W. A. CHITTICK & CO., INC. Sales and Service 31 Romero Salas, Manila August, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 317 ¥ 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 IN the June issue of the Journal we published some figures, based on the answers of some 200 firms to a Chamber questionaire, showing the personnel losses already suffered and the further losses expected dur ing the year as a consequence of the business decline caused largely by the present various government con trol measures. But bare statistics are never very vivid. Certain related figures, how ever, which were given us recently, produce a stronger impression. We were told that the American School, Inc., a private school in Manila to which many American and Euro pean families send their children and which opened, for the present school-year, only six weeks ago, on June 16, has already lost 3 teachers and no less than 63 pupils since that time, as the families of which they are members were leaving the coun try. The total enrollment at the opening was 453. The loss, so far, has been 13%. ■p eaders of the Journal, that is, those among them who read this column (!), will recall the letters of protest against fees imposed at the Manila Post Office on gift packages from the United States, written by Mr. Amos C. Bellis, one addressed to the Import Control Board, one to the Philippine-American Chamber of Commerce in New York, and one to the Collector of Customs, reprinted in this space last month. Mr. Bellis, ex-marine, is thorough when he gets started. A few days ago he handed us the copy of a reply received from Mr. Isaac Sayoc, Acting Collector of Customs, coated July 19. It ran: “Sir: “Referring to your letter dated July 22, 1950, requesting for the refund of the amount of P3.30, please be informed that the afore mentioned amount is a proper charge repre senting internal revenue stamp, import control filing and license fees, as provided for in Customs Circular Letter No. 497, dated March 15, 1950, which embodies Import Control Circular No. 20, dated March 6, 1950. “While it may be true that Republic Act No. 426 does not provide such charges, yet it may be stated that the Import Control regulations require the imposition thereof, in view of which the refund sought for here in can not be entertained. It may however be suggested that this matter be brought to the attention of the Import Control Ad ministration under whose jurisdiction this matter falls. “Respectfully,” etc. Mr. Bellis is considering his next step, one of which, we understand, is to determine by what right the Import Control Administration seems to be able to impose almost any kind of regulation it feels like. Per haps, in this particular matter, the international postal authorities might be interested. qpHE editor was proudly showing around another letter of com mendation he received. As it came from an important personage, he said we should not use his name, but this is how the letter ran, believe it or not (we believe it because we saw it): “The July issue of the Journal is excellent. I believe it is the best all-round and com plete issue I have read in the [deleted] years I have been here. The make-up is extremely good, the subject matter well prepared, and the coverage extremely broad. “Please accept my thanks and my con gratulations for an excellent issue.” “There really must have been something about that July number,” said the editor. “Here’s part of 'attention FLOUR IHNUTHS’ Pasig River Bodegas GENERAL BONDED WAREHOUSES moved to bigger and better location 145 Muelle de Binondo Tel. 2-63-10 318 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1950 another letter I received from a mining man in the provinces: ‘ “The last issue of the Journal was super lative! I believe the renewal of my subscrip tion is due. Please send me the bill’.” ‘.‘When a man likes an issue of a publication so well that it reminds him of renewing his subscription, and he asks for the bill, isn’t that the final test?” “Nope,” said we. “Paying it.” “There you go again,” said the editor. “Just insulting people! Do you question that my friend will pay his bill? I will bet you right now that we have the smallest list of ‘accounts payable’ of any publica tion in Manila!” “Don’t you mean ‘accounts re ceivable’?” we asked. “All right!” he said. “A slip of the tongue. But I’ll bet you that both are the smallest!” “Yeh!” said we, “I’ll bet you that the Journal total earnings are about the smallest, too!” Double Checking Answers . Z Wastes Money / / 3' What does It cost... to double check needlessly the an swers to your figure work problems? Any duplhatlon ol work wastes time and operator effort. Due to the ultramatio perfoimance of this new calcula tor .. . you make worthwhile savings ..no double check ing, no refiguring for proof. Learn... that when you FBI DENIZE you ECONOMIZE. FRIDEN SMITH ,BELUCOJTI>. TRADE AND COMMERCE BLDG MANILA Tel. 2-69-71 “Now that is a dirty dig,” said the editor sadly. “Are you throwing the decrease in advertising in my face? Do you mean to say that proves that the Journal is no good?” “Well, when you begin to boast about people asking for their sub scription bills as proving anything. . . What about their asking about a renewal of their advertising con tracts?” “Do you expect me to perform miracles?” shouted the editor. Some of the members of the United States Economic Survey Mission who called at the Chamber office also spoke appreciatively of the Journal. Earlier, we had sent the Mission several complete sets of the post war issues with our compliments. Probably because the editor had all three of his sons singing in an opera staged in Manila last month, Mozart’s “Don Giovani”, with his oldest son in the title role, he made an allusion to the stage, saying that an editor is something like an actor, “he must please ‘his’ public and applause and hisses now and then help him to keep his bearings”. But, we asked, where are the hisses? “I haven’t heard any. . . yet,” he said. Early in July we received a note from Mr. A. C. Hall, editor of the “Stock Market” column, which read: “I am leaving for a vacation abroad at the end of this month, and have arranged for Mr. Roy Ewing of Swan, Culbertson & Fritz to take over my column during my absence.” In due course we received Mr. Ewing’s article for the Stock Market column in this issue. Mr. Ewing formerly edited a column on the United States stock and commodity markets for this Journal, while Mr. Hall edited the Manila Stock Market column, but some months ago it was decided to merge these two columns into one. We are sorry to lose Mr. Hall but pleased to have Mr. Ewing back again. We wish Mr. Hall a pleasant vacation. This Journal goes straight to the desks of leading business and government executives every month C. E SHARI' & COMPANY, INC. 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