The American Chamber of Commerce Journal Vol. XXVI, No.10 (October 1950)

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Title: The American Chamber of Commerce Journal Vol. XXVI, No.10 (October 1950)
Issue Date: Vol. XXVI, No.10 (October 1950)
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino Building — Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines Paul H. Wood, President; J. A. Parrish, Vice-President; C. R. Leaber, Treasurer; J. H. Carpenter, Roy G. Davis, T. M. Knight, N. Most, E. E. Selph, and L. G. Wagner. Marie M. Willimont, Executive Vice-President; I. T. Sa Imo, Secretary Vol. XXVI October, 1950 No. 10 Editorials— Cabinet Changes............................................................................................. The Individual Income Tax........................................................... Economic Controls in Wartime.................................................................. Korea as a United Nations Demonstration Area............................. Letter to Mr. Hester...................................................................................... Credit Information.......................................................................................... Korea to be Rebuilt................................................................................. Trade Statistics, First Half of 1950, Compared with First Half of 1949 I. Foreign Trade of the Philippines, Summary................................... I A. Twenty Principal Imports............................................................. I B. Twenty Principal Exports............................................................. II A. Foreign Trade by Countries, First Half of 1950 .................... II B. Foreign Trade by Countries, First Half of 1949 .................... Contents 359 360 362 365 365 365 Secretary of State Dean Acheson. . .. 366 Bureau of the Census and Statistics.......... 368 368 368 369 371 372 The Business View— Office of the President of the Philippines.............................................................................................. Banking and Finance................................................................................................................ Manila Stock Exchange................................................................................ .......................................... Credit..........................................;................................................................................................................... Ocean Shipping and Exports..................................................................................................................... Real Estate............................................................................... ...................................................................... Electric Power Production......................................................................................................................... Mining.............................................................................................................................................................. Copra and Coconut Oil............................................................................................................ Desiccated Coconut...................................................................................................................................... Manila Hemp............................................................................................................................. Sugar.................................................................................................................................................................. Tobacco......................................................................................................................................... Imports............................................................................................................................................................. Automobiles and Trucks............................................................................................................................. Food Products............................................................................................................................. Textiles......................................................................................................................................... Legislation, Executive Orders, Court Decisions................................................................ Philippine Safety Council........................................................................................................................... Cost of Living Index, 1946-1950 (Table)....................................................................................................... The “Let Your Hair Down” Column................................................................................................................ Official Source.................................................... 367 I. G. Spering.................................................... 374 R. Ewing............................................................ 375 C. W. Muilenburg........................................ 375 F. M. Gispert.................................................. 376 A. Varias........................................................... 376 J. F. Cotton..................................................... 376 N. N. Lim........................................................... 376 H. D. Hellis.................................................... 378 H. H. Curran................................................... 380 H. Robertson.................................................. 380 G. G. Gordon................................................... 381 L. A. Pujalte................................................... 382 S. ScHMELKES......................................................... 383 K. E. Gay.......................................................... 384 C. G. Herdman................................................ 385 L. W. Wirth..................................................... 387 E. E. Selph....................................................... 388 F. S. Tenny....................................................... 390 Bureau of the Census and Statistics.......... 391 ............................................................................... 392 50 CENTAVOS THE COPY built to give you YOUR STANDARD-VACUUM REPRESENTATIVE WHENEVER YOU HAVE A LUBRICATION PROBLEM IN YOUR PLANT All this means IMPROVED MAIXTEXAXCE and OPERATION as well as REDUCED OPERATING COSTS. A testing laboratory such as ours is highly important in the solution of complex lubrication problems. A substantial force of technical men—chemists and lubrication engineers— is maintained to seek the solution to these problems and make the corresponding recommendations to the plant operator SERVICE NE of the finest of i the Far East, our Technical Service Laboratory offers our customers the last word in lubrication service Its opening marks a progressive step for ward in our never-ending desire to give the best in service through the use of the most modern tools available Standard-Vacuum Editorials “ to promote the general welfare” The promised and long-awaited reorganization of government departments, bureaus, and other entities got under way this month with important changes Cabinet brought about in the Cabinet. Changes President Quirino’s appointment of VicePresident Fernando Lopez as Secretary of Agriculture and Natural Resources was widely praised as he is well fitted to head the Department which is one of the key entities in the planned economic development of the country. The Vice-President’s appointment implies no reflec tion on the out-going Secretary, Mr. Placido L. Mapa, who held the position with distinction and who has been appointed Chairman of the Board of Governors of the Rehabilitation Finance Corporation vice Mr. Delfin Buencamino. Mr. Mapa is especially well qualified to direct the policies of the RFC along somewhat different lines than those followed up to the present, for while agricultural and industrial loans extended by the Corporation total considerable amounts, the larger part of the available funds has gone into real estate loans which, up to Novem ber 30, 1949, still constituted 48% of the total amount loaned. However, on this point, the latest annual report of the Corporation contains the following: “While obviously there appears to be a concentration of loans in real estate construction, it is desired to state that it has not been the policy of this Corporation to encourage real estate more than agricul tural and industrial pursuits. This happened only because at the begin ning, while agricultural loan applications were slow in coming in, it was thought advisable to employ as much as possible the funds of the Corporation in alleviating the acute housing shortage then prevailing...” Another appointment of special interest to business is that of Dr. Salvador Araneta as Secretary of the Depart ment of Economic Coordination. This Department, of which Mr. Mapa, as Secretary of Agriculture and Natural Resources was temporarily the acting head, was created by Executive Order No. 319 only last May. The Order abolished the Government Enterprises Council and the Office of the Economic Administrator, and placed the supervision of nearly all (17) of the government-owned or controlled corporations and agencies, not including the Philippine National Bank and the Rehabilitation Finance Corporation, under this new Department. Dr. Araneta, an educator (Feati Institute of Techno logy and the Araneta Institute of Agriculture) and civic leader as well as a lawyer and businessman who has gained recognition as an economist, has not previously been closely identified with the Government, but as a member of the Committee on Reorganization of Government-owned and Government-controlled Corporations, he may be expected to carry out many of the recommendations of that Com mittee. These recommendations were reprinted in last month’s issue of the Journal. This Journal has not always fully agreed with Dr. Araneta’s views, especially with his criticism of the Bell Act, but we do most heartily agree with a number of the recommendations of the Committee, recommendations which he personally reiterated in an address, a week after his appointment as Secretary of the new Department, before the Manila Junior Chamber of Commerce. Dr. Araneta emphasized that “on the whole, govern ment corporations should not engage in activities in compe tition with private enterprises”, and this, indeed, is funda mental to the continuation of our free-enterprise economy. It is a matter of satisfaction that Mr. Cornelio Balmaceda, Secretary of the Department of Commerce and Industry, is apparently to remain in that position. Again, this Journal has had its differences with Secretary Balmaceda with respect especially to import control and the PRATRA octopus, but there is evidence that in the light of experience, he is modifying his policies and there has never been any question as to his outstanding qualifica tions for the position he occupies. Other Cabinet appointments are of lesser direct interest to business, but the appointment of Under secretary of Justice Jose P. Bengzon as Secretary of Jus tice, of Representative Ramon Magsaysay as Secretary of National Defense, of Mr. Pablo Lorenzo as Secretary of Education, and Dr. Juan Salcedo, Jr., as Secretary of Health have all been well received. 359 This month we received No. 3 of Volume II of the Central Bank Statistical Bulletin, a voluminous publi cation on which the Department of Economic Research The Individual Income Tax of the Bank, headed by our good friend, Dr. Leonides S. Virata, is doing a truly magnificent job. One of the many enlightening tables in this issue of the Bulletin is especially interesting and gives rise to much thought and speculation. It is captioned: “Indivi dual income tax returns for 1949, showing number of re turns, net income, personal exemptions, and tax liability by nationality of taxpayer”. The table follows: A. Amounts Nationality No. of Returns ■ Net Income Personal Exemption Tax Liability Filipinos............... 34,890 P147,706,174 P 78,122,839 P 7,946,359 Chinese................. 6,064 36,713,866 15,764,361 2,176,616 Americans............ • 1,801 31,135,034 4,154,761 4,657,098 Europeans........... 1,460 20,462,395 2,677,161 2,947,949 Others................... 397 3,317,165 864,396 298,411 Total............. 44,612 P239,334,635 PlOl.583,519 P 18,026,436 B. Percent Filipinos........... 78.2 61.7 76.9 44.1 Chinese............. 13.6 15.3 15.5 12.0 Americans....... 4.0 13.0 4.1 25.8 Europeans. . .. 3.3 8.6 2.6 16.4 Others............. .9 1.4 .9 1.7 Total........ 100.0 100.0 100.0 100.0 American and European figures, If we combine the we get the following Number of returns.............. 3,261 or 7.3% Net income............................ P51,597,429 or 21.5 Personal exemption............. 6,831,922 or 6.7 Tax liability........................... 7,605,047 or 42.2 So that although the Americans and Europeans here constitute only 7% of those who pay a personal income tax, they pay 42% of the total tax collected, while the Filipinos, who constitute 78% of those who pay, pay only slightly more, 44%, and the Chinese, who constitute 13% of the number, pay only 12% of the total. A calculation shows that the average tax payment of the Filipino individual income-tax payer amounts to P227,_of the Chinese, P358, and of the American or Euro pean, P2332! According to information obtained from the Bureau of Immigration, the aliens registered as of May 31, 1950, numbered as follows: Nationality Chinese........................................... Americans...................................... Spaniards....................................... British.............................................. Indians............................................ Others.............................................. Total....................................... Number 133,099 14,226 3,062 1,361 1,763 5,647 Per cent 80.0 8.8 19 .8 1.0 3.5 161,158 100.0 This classification is not strictly comparable, but if we select certain of these figures and compare the tax figures on a per capita basis, we get the following approximation: Nationality Total number Income tax paid Per capita Filipino.. ......... 20,000,000 P 7,946,359 P 0 39 Chinese.. ......... 135,099 2,176,616 16 11 American , Spanish, and British. ......... 18,649 7,605,047 407.79 Per capita figures are, of course, of little significance and notably misleading inasmuch as they average the whole population, young and old, rich and poor. Never theless, the figures in the preceding table, even taken only for what little they may be worth, are so disparate as to be almost comic, though, to be sure, they will not appear so to the Americans and Europeans who pay almost half of the total collected in individual income taxes and who, per capita, pay an income tax 25 times more than the Chinese pay and over a 100 times more than the Filipinos pay! As we have said, the per capita calculation is based on figures which include everyone, from babies to the aged, male and female, workers and dependents, the idle and the ill, masters and servants, landowners and tenants, farmers, industrialists, and business and professional men, people of small incomes and large, and of no income at all. And in the case of the American and European groups in the Philippines, the men among them are mostly selected individuals of high earning capacity, though it must be taken into consideration, in the per capita figures, that these include their wives and children too. It would be possible, taking the per capita figures at their face value, to draw the conclusion that Americans and Europeans pay so much more than the Chinese and the Filipinos because the former have much larger incomes than the latter. The figures could be used in an attempt to demonstrate the low income and even the abject poverty and misery of the people of the Philippines as a whole. But we know that though the national production is not high and the people as a whole are not well-to-do and there is indeed much poverty from the Western point of view, the general conditions, physical (including the climatic) and social, are such that this poverty is not so bitter as in many other countries. The gross national product for 1949-1950 is estimated at nearly P4,000,000,000, on which basis the per capita product amounts to P200 a year, which, for a family of 5, would amount to P1000, against which an income tax of Pl.95 (5 times 39 centavos)is still ridiculously low, mathematical and imaginary though .this figure may be. And a strong point to bear in mind in all this is the fact that corporate earnings, on which an income tax is additionally paid, are not reflected in the American and European figures to the extent that they are in the Filipino and Chinese figures which, to a large extent, include the business earnings inasmuch as the most common forms of business organization among the Chinese and Filipinos are the single proprietorship and the partnership. Furthermore, the Filipino figures include the figures for the numerous well-to-do Chinese and some Europeans who have become Filipino citizens. Another table in the Central Bank Bulletin, cap tioned “Estimated number of income recipients, amount received, and per cent of distribution in the Philippines, by money-income classes”, shows that of the “income recipients”, estimated to number a total of 5,471,749, some 87.48% receive an income of less than P1000, and some 10.42% more of them receive incomes only up to P2000 a year. If we take it that none of these people pay or should pay an income tax, then there still are some 115,000 people who earn P2000 or more a year and who should pay an income tax, though only a small one in the case of those in the lower income brackets. But the first table shows that the total number of persons paying indi vidual income taxes is only 44,612, which would indicate that there are many thousands of tax dodgers. Another fact which strongly bears out this conclusion is that, according to a table credited to the Bureau of Internal Revenue and included in the Central Bank Bulletin, some 54% of the taxable individual income-tax 360 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 361 This new Burroughs TypewriterAccounting Machine provides typewriter descriptions, and posts any record or combination of related records, complete in one operation. It is fully equipped to handle all general accounting, accounts receivable, payroll, stock control and other specialized applications. It’s the only typewriteraccounting machine in world that computes . . . types ... as it posts. THIS MACHINE OF ANY ONE CAN CUT PESOS OFF THE COST OR ALL THESE OPERATIONS: them. Call your Burroughs office today I 1. Billing 8. Payroll 2. Budgetary Control 9. Stores & Material Accounting 3. Accounts Receivable 10. Operating Ledger 4. Sales Statistics 11. Earnings, Calculations and Accrual 5. Expense Distribution 6. Purchase & Payment Records Let Burroughs help you control 7. Cost Records rising office costs and get the figures you need when you need WHEREVER THERE'S BUSINESS THERE’S Phil. Chamber of Commerce Bldg., Manila Tel. 3-20-96 Burroughs BURROUGHS DEALERS DAVAO CITY — (also for MINDANAO-SULU), Burroughs Sales Office; BAGUIO — Baguio General Trading; CEBU— Valcriano Alonzo; BACOLOD — Warner, Barnes & Co., Ltd.; —ILOILO —Warner, Barnes & Co., Ltd.; DAGUPAN CITY — Villamil Bldg., Tel. 95. returns and some 77% of the total individual income taxes assessed in 1949 were Tor Manila alone.* Data on which to base really accurate conclusions are unavailable, but there are other figures which are at least broadly indicative of the facts as to the very inefficient and unfair collection of individual income taxes. There is, for instance, the table published by the Bureau of the Census and Statistics which shows the foreign trade of the Philippines in 1949 by nationality of the traders. The total foreign trade that year amounted to P 1,645,845,310, of which that credited to the American nationality was P589,009,361, that to Chinese, P494,732,080, and that to Filipino, P359,749,373. Roughly those national figures represent respectively 6/16, 4/16, and 3/16 of the total trade. Since most of the Americans and Europeans here are engaged in trade, it may be assumed that most of their individual earnings are derived from this trade, yet on that basis, the Chinese traders should be paying only about a third less in income taxes than the Americans and Europeans, and the Filipino traders should be paying about half of what the Americans and Europeans are pay ing. The tables we have do not, of course, show that the Chinese and the Filipino traders do not pay this much, but both the average and the per capita figures throw a great doubt on this. According to the Bureau of Public Works, there were some 94,000 motor vehicles registered in the Philippines in 1949, of which some 40% were private automobiles. It appears, therefore, that the number of automobile owners approximates the number of people paying individual income taxes, as if the fact that a man owns an automobile had been used by the Bureau of Internal Revenue as a check. But what about the many well-off people who do not own automobiles? Inadequate as the available data is for. formulating any definite conclusion, it is nevertheless very clear that the individual income tax is widely evaded and that Amer icans and Europeans who either scrupulously keep their account books or whose earnings are based on salary pay ments which can not be concealed, bear far more than a fair share of the income tax burden. The total income of the Government from individual income taxes has been judged so unsatisfactory that the Philippine Congress in the recent special session passed a bill raising the rates, which bill has, at this writing, just been signed by the President. However, on a comparative basis and for the degree of economic and governmental development reached by the Philippines, the rates which already had been raised once since the war, were high enough if not already too high.. Instead of again raising the rates, thus increasing the burden of those who are already carrying more than their proportionate share, measures should have been taken to provide for a more effective collection. What stares one in the eye on examining the new Act (Republic Act No. 590) is that though the rates in the lower income brackets have been raised from 3 to 5% for the first P2000, from 6 to 8% for the second P2000, from 9 to 12% for the third P2000, and from 13 to 18% for the next P4000, the exemption for married persons has been raised from Pl500 to P3000 and for each child from P500 to P600, so that the total tax for persons whose incomes lie within this range has been increased but slightly. •According to the same table, 66% of the taxable corporate income-tax returns were filed in Manila, and 93% of the total corporate income-tax assessment of P28,371,557 was assessed in Manila. The new law raises the corporate income tax from 12 to 16%. ••The generally higher scale of salaries paid Americans and Europeans occupy ing technical positions in the Philippines is to be accounted for chiefly by the law of supply and demand, and not by any established policy of discrimination against Filipino personnel. Unless a sufficient amount over the local salary scale is paid them to compensate for the disadvantages entailed in their establishing themselves so far away from home, for the higher costs of everything they are accustomed to (also largely due to distance and high freight rates), the extra traveling expenses for themselves and families, the education of their children, etc., they could not be induced to come here. Any attempt to level this salary differential through excessive income-taxation, therefore. i« uneconomical and well a« unfair The real slaughter begins with the second Pl0,000, on which the rate is 24% and the third Pl0,000, on which the rate is 30%. From there on the rates rise more and more sharply, but for practical purposes, the persons hardest hit are those within the brackets which cover the income of the great majority of Americans and Europeans here. It is impossible to avoid the conclusion that the law makers sought to save the group which includes the ma jority of government personnel from any further burden, while the alien business and professional men are dealt another blow.** As for the rates in the higher brackets, for instance, 50% on the last P10,000 in the case of an income of Pl 00,000, and 60% on anything over P500.000, there enters the factor which we referred to in an editorial in the Sep tember issue of this Journal,—the fatal effect of such confiscatory taxation on the highly essential process of capital formation. It is truly a “syphoning off” of private funds into the government treasury, and there is no guar antee,—there never is, that the Government will use such money more wisely than the man who earned it, and certainly not for capital investment, increasing the pro ductivity and raising the standard of living of the whole country. (Reprints of this editorial may be obtained at the Chamber) in Economic Controls in Wartime The idea that, in times of emergency and especially times of war or the threat of war, governments, even in free-enterprise countries, must resort to controls over the economy, is widely accepted. Socialists often use the fact that these controls are generally imposed and accepted at such times as “proof” that a controlled economy is actually more efficient than a free economy. The American Congress recently acted on this belief in granting the President mandatory powers over industry and over wages and prices in the Defense Production Act, greater powers, in fact, than the President himself asked for and which he appears loathe to use. The passage of this legislation led-, indeed, to the voicing of grave warnings that such controls constitute “dangerous interference”. The prominent economist and member of the Federal Reserve Board, M. S. Szymczak, advised the President not to use them. He said (as quoted in Time)-. “Direct controls are not the answer to our immediate inflation problem. They deal only with effects and not with basic causes. . . [In stead, the Government should cut down on the] rapid credit and mon etary expansion. . . [and] current Government deficits which threaten to grow larger and larger.” And the Committee for Economic Development declared: "Such [direct control] measures are not only unnecessary now but would actually impede the nation’s efforts to build its military force, prevent inflation, and strengthen our economy. Overall direct controls inevitably interfere with the process of production and distribution of goods. They weaken incentives, discourage attempts to increase supplies of scarce materials, and interfere with the growth of produc tivity. . . Their interference is cumulative, and is especially dangerous in a long-drawn-out period of rearmament.” The Committee, like Szymczak, advised the cutting of Federal spending on non-military projects, a general tightening of credits, and increased excise, income, and corporate taxes, but not an excess profits tax “except in extreme emergency”. The Committee summed up: “The nation needs quick and fundamental action now, quicker and more fundamental than is possible by the route of direct controls.” How slow direct controls are, we in the Philippines have learned in connection with the import control. And here is what one of the greatest of living economists says on “war and the market economy”,— Ludwig von Mises, internationally known as the head of 362 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 363 the so-called “Austrian’ school” of economics, in his book of nearly 1000 pages, “Human Action, A Treatise on Econ omics”, Yale University Press, 1949: “The market economy, say the socialists and interventionists, is at best a system that may be tolerated in peacetime. But when war comes, such indulgence is impermissible. It would jeopardize the vital interests of the nation for the sole benefit of the selfish concerns of capitalists and entrepreneurs. War, and in any case modern total war, peremptorily requires government control of business. “Hardly anybody has been bold enough to challenge this dogma. It served in both World Wars as a convenient pretext for innumerable measures of government interference with business which in many countries step by step led to full ‘war socialism’. When the hostilities ceased, a new slogan was launched. The period of transition from war to peace and of‘reconversion’, people contended, requires even more government control than the period of war. Besides, why should one ever return to a social system which can work, if at all, only in the interval between two wars? The most appropriate thing would be to cling permanently to government control in order to be duly prepared for any possible emergency. “An examination of the problems which the United States had to face in the second World War will clearly show how fallacious this reasoning is. “What America needed in order to win the war was a radical con version of all its productive activities. All not absolutely indispensable civilian consumption was to be eliminated. The plants and farms were henceforth to turn out only a minimum of goods for nonmilitary use. For the rest, they were to devote themselves completely to the task of supplying the armed forces. “The realization of this program did not require the establish ment of controls and priorities. If the government had raised all the funds needed for the conduct of war by taxing the citizens and by bor rowing from them, everybody would have been forced to cut down his consumption drastically. The entrepreneurs and farmers would have turned toward production for the government because the sale of goods to private citizens would have dropped. The government, now by virtue of the inflow of taxes and borrowed money the biggest buyer on the market, would have been in a position to obtain all it wanted. Even the fact that the government chose to finance a considerable part of the war expenditure by increasing the quantity of money in circulation and by borrowing from the commercial banks would not have altered this state of affairs. The inflation must, of course, bring about a marked tendency toward a rise in the prices of all goods and services. The government would have had to pay higher nominal prices. But it would still have been the most solvent buyer on the market. It would have been possible for it to outbid the citizens who on the one hand had not the right of manufacturing the money they needed and on the other hand would have been squeezed by enormous taxes. “But the government deliberately adopted a policy which was bound to make it impossible for it to rely upon the operation of the unhampered market. It resorted to price control and made it illegal to raise commodity prices. Furthermore it was very slow in taxing the incomes swollen by inflation. It surrendered to the claim of the unions that the workers’ real take-home wages should be kept at a height which would enable them to preserve in the war their prewar standard of living. In fact, the most numerous class of the nation, the class which in peacetime consumed the greatest part of the goods consumed, had so much more money in their pockets that their power to buy and consume was greater than in peacetime. The wage earners— and to-some extent also the farmers and the owners of plants producing for the government—would have frustrated the government’s endea vors to direct industries toward the production of war materials. They would have induced business to produce more, not less, of those goods which in wartime are considered superfluous luxuries. It was this cir cumstance that forced the Administration to resort to the systems of priorities and of rationing. The shortcomings of the methods adopted for financing war expenditure made government control of business necessary. If no inflation had been made and if taxation had cut- down the income (after taxes) of all citizens, not only of those enjoying higher incomes, to a fraction of their peacetime revenues, these controls would have been supererogatory. The endorsement of the doctrine that the wage earners’ real income must in wartime be even higher than in peace time made them unavoidable. “Not government decrees and the paper work of hosts of people on the government payroll, but the efforts of private enterprise produced those goods which enabled the American armed forces to win the war and to provide all the material equipment its allies needed for their cooperation. The economist does not infer anything from these his torical facts. But it is expedient to mention them as the interventionists would have us believe that a decree prohibiting the employment of steel for the construction of apartment houses automatically produces airplanes and battleships. “The adjustment of production activities to a change in the de mand of consumers, is the source of profits. The greater the discrepancy between the previous state of production activities and that agreeing with the new structure of demand, the greater adjustments are required and the greater profits are earned by those who succeed best in ac complishing these adjustments. The sudden transition from peace to war revolutionizes the strvccure of the market, makes radical adjust ments indispensable, and thus becomes for many a source of high profits. The planners and interventionists regard such profits as a scandal. As they see it, the first duty of government in time of war is to prevent the emergence of new millionaires. It is, they say, unfair to let some people become richer while other people are killed or maimed. “Nothing is fair in war. . . It may be admitted that it is not ‘fair’ that war enhances the profits of those entrepreneurs who contribute best to the equipment of the fighting forces. But it would be foolish to deny that the profit system produces the best weapons. It was not socialist Russia that aided capitalist America with lend-lease; the Rus sians were lamentably defeated before American-made bombs fell on Germany and before they got the arms manufactured by American big business. The most important thing in war is not to avoid the emerg ence of high profits, but to give the best equipment to one’s own coun try’s soldiers and sailors. The worst enemies of a nation are those malicious demagogues who would give their envy precedence over the vital interests of their nation’s cause. “Of course, in the long run war and the preservation of the market economy are incompatible. Capitalism is essentially a scheme for peace ful nations. But this does not mean that a nation which is forced to repel foreign aggressors must substitute government control for private enterprise. If it were to do this, it would deprive itself of the most efficient means of defense. There is no record of a socialist nation which defeated a capitalist nation. In spite of their much glorified war social ism, the Germans were defeated in both World Wars. “What the incompatibility of war and capitalism really means is that war and high civilization are incompatible. If the efficiency of capitalism is directed by governments toward the output of instru ments of destruction, the ingenuity of private business turns out wea pons which are powerful enough to destroy everything. What makes war and capitalism incompatible with one another is precisely the un paralleled efficiency of the capitalist mode of production. .. “The Wehrwirtschaftslehre, the German doctrine of the econ omics of war, contends that neither cost of production nor quality is important in matters of warfare. Profit-seeking business is concerned with costs of production and with the quality of products. But the heroic spirit of a superior race does not care about such specters of the • acquisitive mind I What counts alone is war preparedness. A warlike nation must aim at autarky in order to be independent of foreign trade. It must foster the production of substitutes irrespective of mammonist considerations! It can not do without full government control of pro duction because the selfishness of the individual citizens would thwart the plans of the leader. Even in peacetime the commander-in-chief must be entrusted with economic dictatorship. “Both theorems of the Erzatz doctrine are fallacious. “First, it is not true that the quality and suitability of the substi tute are of no importance. If soldiers are sent into battle badly nourished and equipped with weapons made of inferior material, the chances for victory are impaired. Their action will be less successful, and they will suffer heavier casualties. The awareness of their technical inferiority .will weigh on their minds. Erzatz jeopardizes both.the material strength and the morale of an army. “No less incorrect is the theorem that the higher costs of produc tion of the substitutes do not count. High costs of production mean that more labor and more material factors of production must be ex pended in order to achieve the same effect which the adversary, pro ducing the proper product, attains with lower expenditure. It is tanta mount to squandering scarce factors of production, material, and man power. Such waste under conditions of peace results in lowering the standard of living, and under conditions of war in cutting down the supply of goods needed for the conduct of operations . . . “Modern civilization is a product of the philosophy of laissez faire. It can not be preserved under the ideology of government omni potence ...” The foregoing quotation from the book of Ludwig von Mises is a long one, but this book has been described as the “counterweight of Marx’s ‘Das Kapital’, Lord Key nes’ ‘General Theory’, and of countless other books recom mending socialization, planning, credit expansion, and similar panaceas.” Henry Hazlitt said of it in a recent review in Newsweek: “If any single book can turn the ideological tide that has been running in recent years so heavily toward statism, socialism, and totali tarianism ‘Human Action’ is that book.” In view of not only this highly dangerous trend, but of all the hostile theorizing against our free enterprise system, it behooves us, who realize that political and econ omic freedom are inseparable, to know more than many of us do about the established economic principles which underlie that system so that we will not be so easily in duced to make concessions and to compromise where we should stand firm. 364 Secretary of State. Dean Acheson delivered a brilliant and inspiring address before the General Assembly of the United Nations on September Korea as a 20 which we should have liked United Nations to print in full, but as it ran to Demonstration Area some 22 typewritten pages we have had to content ourselves with sending only the latter part of it to our printers. The first part of the address, the part we have had to omit, embodies a brilliant exposition of the state of the world with reference to the conflict between the democratic nations and Russia, introduces a number of recommenda tions in connection with the establishment of a collective security system, and expresses the belief that with such defensive strength against further aggression it may be possible— “to pass through this time of tension without catastrophe and to reach a period when genuine negotiation may take its place as the normal means of settling disputes.” Mr. Acheson went on to say: "The Soviet leaders are realists, in some respects at least. As we succeed in building the necessary economic and defensive military strength, it will become clear to them that the non-Soviet world will neither collapse nor be dismembered piece-meal. Some modification of their aggressive policies may follow, if they then recognize that the best interests of the Soviet Union require a cooperative relationship with the outside world. “Time may have its effect. It is but thirty-three years since the overthrow of the Czarist regime in Russia. This is a short time in his tory. Like many other social and political movements before it, the Soviet revolution may change. In so doing, it may rid itself of the policies which now prevent the Soviet Union from living as a good neighbor with the rest of the world. “We have no assurance that this will take place. But as the United Nations strengthens its collective security system, the possibilities of this change in Soviet policy will increase. If this does not occur, the increase in our defensive strength will be the means of ensuring our survival and protecting the essential values of our societies. “But our hope is that a strong collective security system will make genuine negotiation possible, and that this will in turn lead to a co operative peace.” The latter part of the speech, about a third of the length of the whole, is reprinted elsewhere in this issue of the Journal. The section is led up to by Secretary Acheson’s statement that “even as we arm against aggres sion”, we must “carry on with our war against want”. “We must do these two things at the same time,” he declared, “because that is the only way we can constantly keep before us the whole purpose of what we are doing.” Then he averred flatly that “we have it in our power now ... to transform the lives of millions of people, to take them out from under the spectre of want, to give people everywhere new hope. We can meet and we must meet the challenge of human misery, of hunger, poverty, and disease.” He addressed a moving appeal to the United Nations that the various government's unite in improving land use and productivity everywhere as well as push ahead with problems of health, education, industrialization, and public administration. He would concentrate these efforts espe cially in “areas of particular need”, and then made his great point that “the place to begin is Korea”. He spoke of the devastation which has overtaken Korea, and we, in the Philippines, know very well what that means. And as the United States has done much to repair the damage of war and invasion here, he proposed that the United Nations be “prepared to marshal its re sources and its experience” to help the people of Korea. “My government’’, he said, “is prepared to join with other member nations in making resources and personnel avail able”. “These measures not only will aid in restoring the people of Korea quickly to a condition of peace and independence, but they will de monstrate to the people of the world the creative and productive pos sibilities at the command of the United Nations. “Out of the ashes of destruction, the United Nations can help the Korean people to create a society which will have lessons in it for other people everywhere. What the United Nations will be able to do here can help set a pattern of coordinated economic and social action in other places, where the need is for development aid rather than rehabilita“We look forward to a time when members of the United Nations will be able to devote their energies and their resources to productive and creative activities, to the advancement of human well-being, rather than to armaments.” Philippine readers will recognize that this splendid plan is not wholly new. When Ambassador-at-large Philip C. Jessup was in Manila early this year, he referred to the then proposed mission of American experts, and spoke of the Philippines as a “pilot area” in the implementation of the Point Four Program and of the intention of the United States Government to use the Philippines as a “show window for Democracy” in the Far East. Now Korea is to be this and something more, and we may well hope, strongly as we may endorse the Acheson proposal, that American interest will not be entirely shifted from the Philippines to Korea. As a matter of fact, the various developments in the Philippines since the liberation,—economic, political, and administrative, no doubt hold lessons which will prove valuable to those who will direct the planned efforts in Korea. As for us, we may well ask ourselves, with great earnestness if not anxiety, how we have measured up to our own necessary part in making this country the “show window” of Democracy in this part of the world. The word “show” has a number of different meanings, some of them far from felicitous. AMERICAN CHAMBER OF COMMERCE of the Philippines, Manila October 4 Mr. Evett D. Hester Counselor of Embassy for Economic Affairs Manila Dear Mr. Hester: On the occasion of your retirement from the service of the Government of the United States, announced in the newspapers this morning, I have the Letter honor, on behalf of the American Chamto Mr. Hester ber of Commerce of the Philippines, to express to you our deep appreciation of the helpful interest you have always given to the prob lems which have confronted the American business com munity here through the years, and to say to you also that the long, distinguished, and disinterested services you have rendered our Government and the personal integrity charac teristic of you have been the pride of all those Americans who have had the privilege of knowing you. Very sincerely yours, Paul Wood A member of the Chamber told us recently that he is often asked nowadays for credit information and that in such cases he has difficulty in recalling Credit what information is his own and Information he may impart, and what information he has received confidentially as himself a member of the Association of Credit Men, Inc. (P.I.) He can not properly divulge the latter and said that, any way, he does not think it is fair for anyone to ask for in formation which others obtain from a cooperative organ ization which they have formed and support and in which they all do their own part by imparting as well as merely receiving information. This contribution of credit infor365 matiun to a common store by numerous members is what makes the accumulation so valuable. This businessman said that the Credit Association is doing a “splendid job”, especially valuable at this time, and suggested that the Journal call attention to this and make the following quotation from the minutes of the latest meeting of the Directors of the Association: “The Manager reported discussions being held presently with several prospective members, and Directors and members alike were urged to inform the Manager of any prospective or possible members. The Manager is most willing to call on and discuss membership matters with any prospective member.” The Manager is Mr. Duncan Burn, office at 201 Wilson Building, telephone number 29372. Korea to be Rebuilt By Dean Acheson American Secretary of State WE have it in our power now, on the basis of the experience of the United Nations, to transform the lives of millions of people, to take them out from under the spectre of want, to give people everywhere new hope. We can meet and we must meet the challenge of human misery, of hunger, poverty and disease. As an example of the kind of need to which we must put our efforts, I would like to speak of the problem of the use and ownership of land, a source of misery and suffering to millions. In many parts of the world, especially in Asia, nations have been seeking to achieve a better distribution of land ownership. Leaders in India and Pakistan, for example, are keenly aware of this problem, and are taking steps to deal with it effectively. In Japan, as the result of a land-reform program, three million farmers—well over half of all the farmers in Japan—have acquired land. In the Republic of Korea, where previously there had been twice as many tenants as owners of land, a redistri bution of farmlands had, by the time of the invasion, changed this ratio so that those who owned land outnum bered those who held their land in tenancy. Plans sche duled for this summer would have made farm owners of ninety percent of the farm families. In each of these countries, the result of redistribution of the land has been to give the individual farmer an op portunity to work for himself and to improve his status. These examples I have cited are not slogans or phrases. They- suggest what can be done on a cooperative, democ ratic basis, by processes of peaceful change, which respect the dignity of the individual and his right to self-reliance and a decent livelihood. The result has not been what has been called land-reform' in certain other parts of the world—to collectivize the farmer and to place him under the complete control of the government instead of the landowner. Equally important is the problem of better use of the land. Control of soil erosion, better seeds, better tools and better fertilizers are needed in almost every country, but especially in parts of Asia, Africa, the Middle East, and Latin America, where the people suffer greatly from ineffi cient use of their land. The major responsibility in these fields rests, of course, with governments, but the United Nations should make special efforts to advise and assist governments in im proving land use and productivity. A considerable portion of the funds pledged for the technical assistance program is already available, to enable us to push ahead with an attack on such problems as these, as well as problems of health, education, industrialization and public adminis tration. A vast opportunity awaits us to bring, by such means as the United Nations has been developing, new hope to millions whose most urgent needs are for food, land, and human dignity. These efforts, and this experience, if concentrated on areas of particular need, can have a combined impact of exciting proportions. 'jpHE place to begin is Korea. Just as Korea has become the symbol of resistance against aggression, so can it become also the vibrant symbol of the renewal of life. A great deal is now being done through the United Nations and under the unified command for the relief of the Korean people. This aid needs to be vastly increased. But there is another job which needs to be done, and a greater one. As peace is restored in Korea, a tremendous job of reconstruction will be required. The devastation which has overtaken Korea is a consequence of the aggression from the north. It is prob ably unrealistic to expect that those who might have prevented or recalled this aggression will make available the help needed to repair the damage caused by this in vasion. The lives lost as the result of this aggression cannot be recalled, but as the people of Korea set about the task of reestablishing a free and independent nation, as they begin to rebuild their country, the United Nations must be prepared to marshal its resources and its experience to help them. Here, by focusing on one place of extreme need, the United Nations and the specialized agencies can demon strate to the world what they have learned about helping people to combat disease, to build hospitals, schools, and factories, to train teachers and public administrators, to make the land fertile. This is a job that can be done. It will take substantial funds and resources. Fifty-three governments have pledged their support to the United Nations’ defense of Korea. Some of them have been unable to contribute military personnel or equipment. But all of them, I am sure, will want to contribute food, transportation and industrial equipment, construction materials and technicians to the great task of reconstruction. My government is prepared to join with other member nations in making resources and personnel available. When the conflict in Korea is brought to a successful conclusion, many of the doctors, engineers, and other technicians, and much of the resources now being used to support the United Nations military action, will be made available by my government to a United Nations recovery force. I suggest that the General Assembly have the Econ 366 omic and Social Council set up a United Nations recovery force to harness this great collective effort. These measures not only will aid in restoring the people of Korea quickly to a condition of peace and inde pendence, but they will demonstrate to the people of the world the creative and productive possibilities at the com mand of the United Nations. Out of the ashes of destruction, the United Nations can help the Korean people to create a society which will have lessons in it for other people everywhere. What the United Nations will be able to do here can help set a pattern of coordinated economic and social action in other places, where the need is for development aid rather than rehabili tation. We look forward to a time when members of the United Nations will be able to devote their energies and their resources to productive and creative activities, to the advancement of human well-being, rather than to armaments. When the time comes that a universal collective secu rity system enables nations to reduce their burden of arma ments, we hope that other nations will join us in pledging a good part of the amount saved to such productive United Nations activities as have been described. A world such as this, in which nations without excep tion work together for the well-being of all mankind, seems a very distant goal in these days of peril, but our faith in its ultimate realization illumines all that we do now. In building a more secure and prosperous world, we must never lose sight of the basic motivation of our effort: the inherent worth of the individual human person. Our aim is to create a world in which each human being shall have the opportunity to fulfill its creative possibilities in ’ harmony with all. It is our hope that the relaxation in international tension, which we seek, will be accompanied by a great restoration of human liberty, where it is now lacking, and progress everywhere toward the “larger freedom.” But the safeguarding of human freedom is not a dis tant goal, nor a project for the future. It is a constant, immediate, and urgent concern of the United Nations. The United Nations should keep forever in mind the objective set forth in the Universal Declaration of Human Rights, and we should press forward with the work of our distinguished Human Rights Commission. While we are engaged in creating conditions of real peace in the world, we must always go forward under the banner of liberty. Our faith and our strength are rooted in free institutions and the rights of man. We speak here as the representatives of governments, but we must also speak the hearts of our countrymen. We speak for people whose deep concern is whether the children are well or sick, whether there is enough food, whether the roof leaks, whether there will be peace. But peace, for them, is not just the absence of war. The peace the world wants must be free from fear— the fear of invasion, the fear of subversion, the fear of the knock on the door at midnight. The peace the world wants must be free from want, a peace in which neighbors help each other, and together build a better life. The peace the world wants must be a moral peace, so that the spirit of man may be free, and the barriers between the hearts and minds of men may drop away and leave men free to unite in brotherhood. This is the task before us. The Business View A. monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source SEPTEMBER 1—President Elpidio Quirino administers the oath of office to Congressman Ramon Magsaysay, Chairman of the House Committee on National Defense, as Secretary of National Defense vice Col. Ruperto K. Kangleon whose resignation was accepted yesterday. Like his predecessor, Secretary Magsaysay distinguished himself as a guerrilla leader during the Japanese occupation. A number of members of the Economic Survey Mission, including Ambassador Daniel W. Bell, Maj. Gen. Richard J. Marshall, and Ed ward Bernstein, call on the President to say goodbye. At a meeting of the Cabinet, Secretary of Foreign Affairs Carlos P. Romulo reports that he has received requests from the United Nations for the delivery of the vaccines which the Philippines pledged as part of its contribution to the action in Korea; Secretary of Health Antonio Villarama states the vaccines are available for immediate shipment. Secretary Romulo reports also that the Philippine National Red Cross is donating a quantity of blood plasma. The President gives a luncheon in honor of the outgoing and in coming Secretaries of National Defense and of the members of the various Philippine delegations to international conferences: United Nations Delegation,—Secretary Romulo, Senators J. S. Montano, E. R. Abada, and L. Sumulong and Congressmen J. J. Roy and D. Macapagal; Inter-Parliamentary Union, (Dublin, Ireland)—Sena tors T. Cabili and C. P. Garcia and Congressmen A. Escareal, T. S. Clemente, and J. B. Laurel, Jr.; International Tariff Conference (Torquay, England)—Secretary of Finance Pio Pedrosa and Congress men C. S. Allas. Executive Secretary Teodoro Evangelista sends a letter to the Import Control Board directing that the Government and government entities and corporations must be given priority in the issuance of li censes covering imports from Japan under the new $25,000,000 agree ment with SCAP. Dr. L. R. Salvosa, General Manager and Actuary of the Govern ment Service Insurance Board, reports that dividends of Pl,259,534.33 have been declared and will soon be distributed to members; a reserve for contingencies amounting to P2,649,000 is “indicative of the financial soundness of the system”. Sept. 2—The President delivers the principal address at a rally held in the Rizal Memorial Stadium for the 1200-man Philippine Expe ditionary Force to Korea (Lt. Col. Mariano Azurin, commanding); the rally was sponsored by the Philippine Junior Chamber of Com merce. The National Urban Planning Commission is reported to have decided to hold in abeyance, pending final disposition of the Hipolito Case, all applications for building permits in areas affected by the general plan for the City of Manila. Recently, in a petition filed with the Supreme Court by Attorney Felipe R. Hipolito of Santa Ana to compel the City Engineer to grant him a building permit for the construction, with his own money, of a house on his lot at the corner of Invernes and Renais sance Streets which had been denied on the ground that the project was not in accordance with the general plan of the NUPC, the Court ordered the City Engineer to issue the permit. The NUPC has re quested the City Fiscal to file a motion for reconsideration and has also asked the Solicitor General to intervene. Sept. 4—The President designates Foreign Under-Secretary Felino Neri as Acting Secretary of Foreign Affairs during the absence of Secre tary Romulo. Sept. 5—The President discusses with the Cabinet a revision of the Executive Order covering the operation of the Philippine Relief (Continued on page 373) 367 Trade Statistics, first half of 1950, compared with first half of 1949 By the Bureau of the Census and Statistics I. FOREIGN TRADE OF THE PHILIPPINES: FIRST HALF OF 1950 COMPARED WITH FIRST HALF OF 1949 TOTAL TRADE . .. 1950 1949 Value (Pesos) Percent Value (Pesos) Percent 661,039,460 100.00 896,222,875 100.00 IMPORTS................. EXPORTS................. 379,487,074 57.40 281,552,386 42.60 623,335,508 69.56 272,887,367 30.44 IA. TWENTY PRINCIPAL IMPORTS: FIRST HALF OF 1950 COMPARED WITH FIRST HALF OF 1949 1. Cotton and manufactures.. . . Country of Origin 19 5 0 January-June 19 4 9 January-June Value (Pesos) Value (Pesos) United States.......................... Japan......................................... China... .'................................. Great Britain.......................... Hongkong................................. Switzerland.............................. India.......................................... France....................................... Belgium..................................... Italy........................................... Other countries...................... 2. Grains and preparations......... Canada...................................... United States.......................... Thailand (Siam)...................... Australia................................... China......................................... Denmark................................... Germany................................... Hongkong................................. Malaya...................................... Burma........................................ Other countries....................... 3. Mineral oils (Petroleum proIndonesia.:............................... British East Indies................ United States.......................... Arabia....................................... Persia......................................... China......................................... Canada...................................... Hongkong................................. Switzerland.............................. Great Britain.......................... 4. Iron and steel, and manu factures ............................................ United States.......................... Japan...................................,. . . Belgium.......................... Great Britain.......................... Germany................................... China......................................... Hongkong................................. Hawaii....................................... Sweden...................................... Malaya...................................... Other countries...................... 5. Paper and manufactures........ United States.......................... Canada...................................... China......................................... Spain.......................................... Japan......................................... Hawaii....................................... Netherlands............................. Hongkong................................. Sweden...................................... Austria....................................... Other countries...................... 36,149,936 65,649,350 30,477,242 59,178,064 3,216,642 179,204 618,360 3,038,362 537,760 725,208 521,638 393,402 280,706 1,609,554 198,656 21,648 186,314 93,736 46,426 173,380 30,262 207,514 35,930 29,278 30,873,828 54,386,790 15,620,164 9,681,114 13,121,302 31,036,282 1,161,800 9,588,730 409,040 50,126 173,308 604,684 146,630 97,182 84,326 — 44,624 107,106 33,310 3,800 — 3,106,596 19,324 111,170 29,688,446 37,283,652 12,243,712 15,244,004 7,171,672 7,425,032 4,338,234 11,253,766 4,162,634 2,817,650 1,685,408 517,520 46,936 6,442 31,796 — 8,002 — 52 — 19,238 29,154,070 42,103,862 15,112,364 28,050,234 8,881,146 3,407,028 1,954,448 6,400,434 1,424,464 , 1,197,098 928,368 548,934 345,212 721,988 252,754 251,172 103,008 — 73,698 — 25,002 — 53,606 1,526,974 22,485,540 27,194,732 20,631,984 24,585,804 357,588 1,103,560 247,940 77,850 182,772 132,558 168,516 49,834 154,194 356,642 144,926 — 125,378 — 100,220 320,512 88,768 — 283,254 567,972 6. Dairy products.............................. United States.......................... Australia................................... Switzerland............................... Netherlands............................. Canada...................................... New Zealand............................ Denmark................................... Belgium..................................... Norway..................................... Italy........................................... Other countries....................... 7. Automobiles, parts of, and tires.................................................... United States.......................... Great Britain.......................... France........................................ Canada...................................... Hongkong................................. China......................................... Italy........................................... Malaya...................................... 8. Chemicals, drugs, dyes and medicines........................................ United States........................... . Switzerland.............................. France........................................ Great Britain.......................... Italy........................................... Germany................................... China.......................................... Hawaii....................................... Spain.......................................... Sweden...................................... Other countries....................... 9. Machinery and part of (ex cept agricultural and elec trical) ................................................ United States.......................... Great Britain.......................... Japan......................................... Canada...................................... Germany................................... Hongkong................................. Sweden...................................... China......................................... Australia................................... Hawaii....................................... Other countries....................... 10. Electrical Machinery and ap paratus.............................................. United States.......................... China......................................... Hongkong................................. Japan......................................... Netherlands............................. Great Britain.......................... Canada...................................... Hawaii....................................... Germany................................... Spain......................................... Other countries..................... 11. Rayon and other synthetic textiles.............................................. United States.......................... Switzerland.............................. 21,908,616 • 24,025,870 20,541,632 22,404,540 497,197 828,506 440,558 241,856 294,772 255,234 50,108 — 39,482 132,580 28,106 128,768 14,594 20,636 2,142 3,514 26 — 10,236 19,766,932 36,870,742 19,675,244 36,756,658 73,540 60,860 10,784 22,240 3,384 20,758 2,826 1,766 1,000 8,460 118 — 36 18,961,520 18,764,028 17,964,146 18,119,420 429,580 184,530 110,658 29,808 107,566 74,602 56,520 48,220 52,616 — 44,304 48,042 40,546 — 37,634 34,720 35,218 31,084 82,732 193,602 18,233,674 26,540,040 14,702,148 22,826,096 1,228,792 1,093,916 1,049,466 940,198 424,662 711,514 333,626 42,330 176,640 — 114,200 206,542 74,480 27,598 44,220 27,978 38,728 49,896 46,712 613,972 14,994,576 21,297,308 14,592,672 20,749,158 77,606 95,394 75,874 20,572 53,760 36,040 53,540 146,770 41,268 27,376 28,526 139,552 25,380 — 20,244 — 12,830 13,250 12,876 69,196 14,411,550 52,473,332 14,272,044 52,241,366 37,610 44,678 368 Japan......................................... France............... ........................ Belgium...................... ........... Germany................................... Hongkong................................. Italy........................................... China......................................... India.......................................... Other countries....................... 12. Tobacco and manufactures... United States.......................... Hongkong................................. Great Britain.......................... China......................................... Canada...................................... Malaya...................................... British East Indies................ 13. Non-Ferrous metals and manufactures............................... United States.......................... Japan.......................................... Germany................................... Switzerland.............................. China......................................... Great Britain.......................... Malaya...................................... Hongkong................................. Sweden...................................... Australia................................... Other countries....................... 14. Fertilizers and fertilizing materials......................................... United States.......................... Canada...................................... Germany................................... Hongkong................................. China.......................................... Belgium..................................... France........................................ 15. Fish and fish products............. United States.......................... Japan......................................... Canada...................................... Portugal.............. .................. Spain.......................................... China.......................................... Indonesia................................... Mexico...'................................ Hongkong................................. Norway..................................... Other countries....................... 16. Glass and glass products......... United States.......................... Belgium..................................... Japan......................................... Czechoslovakia....................... Great Britain.......................... Hongkong.. . ......................... Netherlands............................. China......................................... Germany.......................... .. Sweden..............................'.. . Other countries....................... 17. Leather and manufactures... United States.......................... Australia................................... Hongkong................................. India.......................................... China......................................... Canada...................................... Great Britain.......................... Japan......................................... Hawaii........................................ Thailand (Siam)...................... Other countries....................... 18. Jute and other fibers................. India.......................................... United States.......................... Japan......................................... Italy........................................... 28,556 23,834 22,850 32,602 13,816 23,802 7,744 — 7,012 31,512 6,252 11,490 4,926 35,118 4,578 — 6,162 28,930 13,423,454 22,943,832 13,423,136 22,901,722 264 41,970 24 104 16 12 6 2 — 30 8,588,732 14,371,346 7,171,600 13,728,932 663,320 291,946 222,440 5,698 107,112 42,272 83,182 128,292 82,934 38,718 57,846 — 46,046 — 41,106 43,238 30,898 — 82,248 92,250 7,762,232 5,770,390 6,754,798 2,111,968 906,334 1,998,088 91,856 — 3,972 8,806 3,262 7,418 < 2,010 1,603,520 — 40,590 6,545,550 17,083,118 6,137,748 16,038,780 127,488 23,306 82,998 357,514 69,834 137,224 44,104 — 41,934 276,864 13,030 — 6,714 170,128 6,102 9,188 5,120 22,448 10,478 47,666 6,534,988 9,212,330 4,769,072 8,315,462 1,122,218 480,154 127,102 62,316 118,596 54,476 94,474 46,350 53,038 25,554 48,438 39,434 45,760 124,976 42,434 42,614 35,864 — 77,992 20,994 6,144,970 8,854,222 5,185,276 8,417,436 870,878 263,238 18,616 34,246 18,324 5,502 14,998 96,186 12,310 8,314 12,270 17,540 11,212 1,254 364 — 154 — 564 10,506 4,756,196 3,411,966 1,977,618 3,347,594 1,436,642 27,802 689,258 — 498,398 14,244 Belgium..................................... 86,600 Canada...................................... 45,460 __ Hongkong................................. 16,270 — Great Britain.......................... 5,950 1,938 Australia................................... — 14,698 Netherlands............................. — 1,770 Other countries....................... — 3,920 Paints, pigments, and var nishes................................................ 4,215,482 6,274,242 United States.......................... 3,938,984 6,068,942 Great Britain.......................... 190,330 124,856 China.......................................... 33,210 56,936 Hongkong................................. 27,654 16,790 Belgium..................................... 10,680 — Germany................................... 6,262 — Spain.......................................... 3,152 — Italy............................................ 1,794 1,592 Japan.......................................... 1,694 — France........................................ 1,578 1,928 Other countries....................... 144 3,198 Vegetable and preparations. . 3,517,598 10,915,966 United States........................... 2,520,644 8,983,916 Egypt......................................... 349,322 279,040 China.......................................... 297,810 1,055,930 Japan.......................................... 199,114 21,398 Malaya...................................... 54,718 3,070 Hongkong................................. 39,630 29,244 Mexico....................................... 26,746 174,968 Australia................................... 18,248 283,092 Canada...................................... 6,562 78,318 Cyprus Island.......................... 3,680 — Other countries....................... 1,124 6,990 Other Imports............... P 61,369,184 P 117,908,390 Total Imports............... P379.487.074 P 623,335,508 IB. TWENTY (20) PRINCIPAL EXPORTS: FIRST HALF OF 1950 COMPARED WITH FIRST HALF OF 1949 Article and country of destination 1950 (January-June) 1949 (January-June) 1 Value Quantity | (Pesos) 1 Value Quantity | Pesos 1. Copra Total............Kilo 244,715,643 90,797,105 209,337,149 57,145,868 United States... 162,190,924 60,321,505 109,511,541 37,520,747 Belgium.............. 13,847,600 5,174,875 3,457,400 1,139,354 Canada............... 10,820,429 3,949,341 1,828,800 654,077 Venezuela........... ' 9,643,874 3,622,926 — — Switzerlad......... 8,295,100 3,056,222 1,016,000 465,000 Netherlands.. . . 8,126,400 2,949,767 2,087,406 848,404 Italy.................... 8,087,360 2,928,997 7,880,120 3,347,461 Norway............... 6,273,800 2,164,276 5,334,000 1,936,053 Israel................... 5,364,800 2,141,653 3,068,967 1,080,302 Japan.................. 4,294,000 1,566,310 5,511,800 1,994,878 Other countries. 7,771,356 2,921,233 69,641,115 26,159,592 2. Sugar, cen trifugal Total............ Kilo 303,736,668 66,650,149 350,404,449 75,041,782 United States.. . 303,736,533 66,650,081 350,404,449 75,041,782 Japan.................. 135 68 — — 3. Abaca, un manufac tured Total............Bale 345,235 36,471,222 290,054 34,402,495 United States.. . 151,980 18,046,105 110,118 14,350,250 Japan.................. 64,701 6,667,569 85,982 9,578,396 Great Britain ... 39,831 3,795,229 17,277 2,102,131 France................. 15,111 1,229,161 15,189 1,532,413 Norway............... 9,140 995,451 2,550 335,611 Korea.................. 6,693 775,224 Germany............ 7,671 712,903 19,070 2,268,478 Denmark........... 7,800 694,769 9,221 986,721 Hongkong........... 8,360 ’ 651,411 6,510 589,138 Italy.................... 7,908 590,126 3,071 259,328 Other countries. 26,040 2,313,274 21,066 2,400,029 4. Desiccated coconut Total............ Kilo 32,827,705 22,123,605 27,874,658 20,111,768 United States.. . 31,817,659 21,389,441 27,368,930 19,702,598 Canada............... 845,627 621,983 466,947 374,367 Belgium.............. 116,303 77,676 21,382 19,674 Hongkong........... 41,420 29,802 — — Hawaii................ 6,696 4,703 17,399 15,129 369 5. Coconut Oil Total........... Kilo 26,283,917 United States.. . Venezuela........... British Africa.. . Hongkong........... China.................. Japan.................. Guam.................. Germany............ Switzerland.... Italy.................... Other countries. 25,107,056 644,415 514,125 7,620 5,102 3,206 2,393 6. Pineapple, canned Total...........Kilo United States.. . Spain................... 34,469,713 34,469,688 25 7. Base metals Total........... Kilo 324,910,606 Japan.................. United States... Canada............... Italy.................... Great Britain ... 204,262,970 110,563,636 9,982,400 101,600 8. Logs, lum ber and timber Total. . . Bd. ft. 37,069,933 United States... Japan.................. China.................. Hongkong.......... British Africa... Canada............... Hawaii................ Ireland................ Korea.................. Belgium.............. Other countries. 19,986,772 8,321,911 4,489,981 2,162,024 880,558 541,568 122,182 140,858 360,000 51,084 12,995 9. Embroide ries, cotton and silk Total.................. United States... Japan.................. Guam.................. Hawaii................ Hongkong........... 10. Copra meal TotaL.CaeKilo 28,687,765 United-States.. . Denmark........... Hawaii................ Belgium.............. 26,042,081 1,618,800 671,284 355,600 11. Gold and concentra tes Total................... United States. . Great Britain ... 12. Rope Total...........Kilo 1,445,478 United States.. . 461,608 Hongkong........... 244,786 French East In dies.................. 134,136 Thailand (Siam) 95,162 Indonesia........... 58,870 Porto Rico......... 88,800 China.................. 56,862 Venezuela........... , 59,241 British Africa.. . 36,910 Peru..................... 52,584 Other countries. 156,519 14,792,524 25,011,457 15,653,642 14,045,371 17,803,152 10,756,025 426,430 305,450 513,080 295,874 6,079 — — 4,613 — — 2,581 9,782 9,720 2,000 3,646 3,528 — 2,719,534 1,853,398 — 1,623,872 1,165,017 — 1,671,510 1,105,490 666,881 464,590 11,415,302 17,768,035 5,323,997 11,415,287 17,768,035 5,323,997 15 6,146,877 293,823,104 5,848,756 3,188,698 128,477,500 1,889,835 2,705,179 151,263,844 3,670,133 252,000 4,064,000 82,000 1,000 10,017,760 206,788 4,644,239 16,847,474 2,918,279 3,132,809 8,893,269 1,974,290 587,657 4,996,066 347,121 378,521 1,211,754 217,111 212,669 694,770 81,628 128,427 < 299,311 118,940 71,443 155,576 28,067 39,775 29,496 10,700 34,527 — — 32,064 — — 15,860 39,605 14,941 10,487 527,627 125,481 4,298,984 5,786,220 4,267,035 5,762,165 30,253 — 1,503 9,906 193 12,149 2,000 2,758,309 28,630,041 2,859,943 2,474,705 23,979,145^ 2,415,992 178,502 4,605,136 440,708 70,902 45,760 3,243 34,200 2,238,313 1,909,662 2,238,313 1,516,508 393,154 1,429,913 1,489,506 1,682,387 492,773 268,084 303,586 199,522 41,842 42,222 129,909 85,600 92,880 84,492 49,238 44,284 70,708 62,318 78,713 66,374 73,072 81,022 66,143 35,327 44,815 64,708 37,290 45,640 56,961 55,249 — — 74,019 92,324 143,074 762,716 856,901 13. Tobacco and manu factures Total...........Kilo Spain................... United States... Hongkong........... Belgium.............. French East In dies .................. Australia............. Hawaii................ Switzerland.... Thailand (Siam) Other countries. 14. Scrap me tals Total...........Kilo 8,172,846 United States... 5,386.217 India.................... 585,249 Hongkong........... 1,923,880 China.................. 37,500 Israel................... 240,000 Argentina........... — Great Britain... — Canada........................ — Belgium....................... — Malaya........................ — 15. Shells and manufac tures Total.................... United States.. . Italy.................... Canada............... Hawaii................ Indonesia........... 16. Rattan fur niture Total.................... United States.. . Hawaii................ Panama, Repulic of................ Porto Rico......... • Guam.................. Japan.................. Korea.................. Hongkong........... Israel................... Arabia................. Other countries. 17. Chemicals Total................... United States.. . Thailand (Siam) Hongkong........... Malaya............... 18. Abaca, other than rope and un manufac tured Total................... United States.. . Hawaii................ Japan.................. British Africa.. . Switzerland.... Peru..................... Hongkong.......... Canada............... Panama, Repub lic of............... Guam.................. Other countries. 734,830 183,655 86,543 74,550 72,136 36,058 24,571 6,272 5,890 2,973 2,126,780 1,604,977 242,243 61,365 65,253 74,764 5,804 14,000 2,530 55,844 1,211,802 55,616,310 4,869,471 719,909 40,748,643 2,456,313 420,263 2,618,376 1,862,318 61,630 634,787 114,420 7,000 1,090,900 38,500 3,000 — — — 6,056,000 170,720 — 4,330,000 173,200 — 92,204 22,000 — 25,400 21,000 — 20,000 11,000 759,908 750,982 5,625 3,241 60 612,835 383,357 110,434 51,618 32,004 20,311 4,841 3,333 2,774 1,764 982 1,417 563,199 526,745 36,454 481,959 451,295 16,490 4,777 3,147 2,682 1,615 1,518 252 178 5 580,479 575,879 4,600 547,361 261,387 133,550 35,513 23,324 38,222 38,936 2,876 13,553 733,885 613,680 22,980 78,225 19,000 215,931 211,426 3,140 795 560 10 370 19. Cotton, except embroi20. Molasses, Total............Kilo 28,981,465 342,758 43,703,105 1,078,487 aeries 380,671 55,666 Japan.................. 18,447,252 217,677 14,349,249 354,637 Total................... Thailand............ 7,043,397 84,238 3,963,000 99,075 United States.. . 352,579 6,085 Hongkong........... France................. 3,490,736 80 40,793 50 — China.................. 24,836 — Great Britain ... 25,390,856 624,775 Hongkong........... 2,332 45,006 Other exports (including re Guam.................. 500 3,137 Hawaii................ 224 438 exports).......... 12,205,234 33,994,508 Israel................... 200 — Belgium.............. — 1,000 Total Exports. 281,552,386 272,887,367 IIA. FOREIGN TRADE OF THE PHILIPPINES BY COUNTRIES: FIRST HALF OF 1950 Country | Total Trade | 1 | DMriteUon 1 Total Exports | Per cent Distribution | Domestic 1 I Exports | Re-exports Total................................. .... P661,039,460 100.00 P379.487.074 100.00 P281.552.386 100.00 P275,665,214 P5,887,172 United States......................... .... 502,798,876 76.06 285,921,090 75 34 216,877,786 77.03 215,347,314 1,530,472 Japan......................................... 30,968,170 4.68 18,213,852 4.80 12,754,318 4.53 12,464,498 289,820 Canada..................................... 23,114,739 3 50 17,875,898 4.71 5,238,841 1.86 5,212,447 26,394 Indonesia................................. 13,772,995 2.08 12,601,644 3.32 1,171,351 .42 70,738 1,100,613 Belgium.................................... .... 9,421,816 1.43 3,601,948 .95 5,819,868 2.07 5,819,868 — Great Britain.......................... .... 8,670,121 1.31 4,874,212 1 28 3,795,909 1.35 3,795,504 405 British East Indies............... .... 7,225,232 1.09 7,214,744 1 90 10,488 — 200 10,288 China......................................... 5,709,208 .86 4,055,470 1.07 1,653,738 .59 891,658 762,080 Switzerland.............................. 4,652,038 .70 1,578,640 .42 3,073,398 1.09 3,073,398 — Italy.......................................... 4,435,328 .67 846,812 .22 3,588,516 1 27 3,538,516 50,000 Arabia....................................... 4,177,013 .63 4,162,634 1.10 14,379 .01 14,379 — Netherlands............................. 4,175,332 .63 691,484 .18 3,483,848 1.24 3,481,700 2,148 Hongkong................................ 4,160,894 .63 2,122,606 .56 2,038,288 .72 1,688,600 349,688 Venezuela................................. 4,114,064 .62 — — 4,114,064 1.46 4,114,064 — Australia.................................. 3,346,624 .51 2,090,600 .55 1,256,024 .45 116,008 1,140,016 Norway.................................... 3,319,727 51 160,000 .04 3,159,727 1.12 3,159,727 — India.......................................... 3,272331 .50 2,332,144 .62 940,187 .33 901,271 38,916 Germany................................... .... 3,258,957 .50 2,383,084 .63 875,873 .31 867,473 8,400 Israel......................................... .... 2,054,267 .31 — — 2,054,267 .73 1,992,717 61,550 France....................................... .... 1,848,669 .28 612,708 .16 1,235,961 .44 1,235,961 — Thailand (Siam).................... 1,757,395 .27 1,429,750 .39 327,645 .12 246,534 81,111 Persia........................................ .... 1,685,498 .26 1,685,498 .44 Spain......................................... 1,634,597 .25 881,068 .23 753,529 .27 748,029 5,500 Colombia................................. .... 1,583,166 .24 16 — 1,503,150 .53 1,503,150 — Brazil......................................... 1,154,016 .17 1,154,016 .38 — Denmark.................................. 1,073,379 .16 200,108 .05 873,271 .31 873,271 — Ireland...................................... 971,609 .15 1,226 — 970,383 .34 970,383 — British Africa......................... 849,672 .13 1,898 — 847,774 .30 841,294 6,480 Korea........................................ 816,907 .12 42 — 816,865 .29 816,865 — Hawaii...................................... 789,359 . 12 376,862 .10 412,497 .15 399,324 13,173 Sweden..................................... 716,663 11 530,260 .15 186,403 .07 181,403 5,000 French East Indies............... 556,575 .08 — — 556,575 .20 202,045 354,530 Syria.......................................... 412,125 .06 — — 412,125 .15 412,125 — Argentina................................. 394,606 .06 394,606 .10 — — Egypt........................................ 363,322 .05 349,322 09 14,000 .01 — 14,000 Ceylon................. .................. 258,872 .04 258,872 .07 — — — — Malaya..................................... 247,074 .04 229,744 .06 17,330 .01 3,171 14,159 Guam........................................ 203,545 .03 236 — 203,309 .07 188,920 14,389 Porto Rico............................... 201,453 .03 — — 201,453 .07 201,353 100 Czechoslovakia......... ............. 147,758 .02 144,344 .04 3,414 — — 3,414 Costa Rica............................... .... 128,208 .02 128,208 03 — — — Portugal................................... 125,983 .02 98,578 .03 27,405 .01 27,405 — Austria..................................... 111,760 .02 111,760 .03 — — — — Mexico...................................... 87,074 .01 87,074 .02 — — — — Panama, Republic of........... 64,018 .01 40 — 63,978 .02 63,978 — Peru........................................... 59,666 .01 — 59,666 .02 59,666 — Chile.......................................... 59,184 .01 900 — 58,284 .02 58,284 — New Zealand.......................... 39,482 .01 39,482 .01 — — — — Poland....................................... .... 22,912 — 22,912 .01 — — — — Ecuador.................................... 20,277 — 900 — 19,377 01 19,377 — Dutch West Indies............... 15,063 — — — 15,063 .01 15,063 — Panama Canal Zone............. 13,551 — — — 13,551 — 13,551 — Newfoundland 6t Labrador. 12,579 — — — 12,579 — 12,579 — Other U. S. Possessions.. .. .... 8,848 — — — 8,848 — 8,848 — Morroco................................... 6,480 — 6,480 — — — — — Dominican Republic............ 5,473 — — — 5,473 — 5,473 — Burma...................................... .... 4,526 — — — 4,526 — 4,526 Dutch Guiana........................ .... 4,140 — — — 4,140 — 4,140 — Luxemburg.............................. 3,776 — 3,776 — — — — — Cyprus Island........................ 3,680 — 3,680 — — — — — Nicaragua................................ 3,632 — 3,632 — — — — — Guatemala............................... 2,598 — — 2,598 — 2,598 —' Finland..................................... 1,066 — 1,046 — 20 — 20 — Pakistan................................... 802 — 802 — — Cuba......................................... 690 — 366 — 324 324 371 IIB. FOREIGN TRADE OF THE PHILIPPINES BY COUNTRIES: FIRST HALF OF 1949 Country | Total Trade | (Pesos) 1 E Per cent listribution 1IrSXl Total Exports | Per cent Distribution I Domestic 1 I Exports | Re-exports Total................................... 896,222,875 100.00 623,335,508 100.00 272,887,367 100.00 264,371,355 8,516,012 — - : ........ .. - 1 United States........................... 697,924,978 77.88 507,891,420 81.47 190,033,558 69.65 187,972,390 2,061,168 Japan........................................... 23,332,283 2.61 8,330,614 1.37 15,001,669 5.51 14,624,675 376,994 Canada........................................ 16,829,395 1.89 15,302,852 2.45 1,526,543 .56 1,473,215 53,328 Indonesia (DEI)...................... 15,962,461 1.79 15,540,706 2.49 421,755 .15 122,468 299,287 China........................................... 13,718,840 1.54 12,993,724 2.08 725,116 .27 602,317 122,799 Germany..................................... 12,812,737 1.43 863,998 .14 11,948,739 4 38 11,948,739 — Belgium....................................... 11,295,360 1.27 9,576,084 1.54 1,719,276 . 63 1,719,276 — France......................................... 10,929,750 1.23 551,584 .09 10,378,166 3.80 10,369,866 8,300 Thailand (Siam)...................... 9,897,909 1.10 9,651,708 1.55 246,201 .09 182,645 63,556 Great Britain............................ 8,669,595 .97 5,120,972 .82 3,548,623 1.30 3,544,448 4,175 Hongkong.................................. 7,718,063 .86 1,452,056 .23 6,266,007 2.30 2,011,280 4,254,727 British East Indies.................. 7,530,674 .84 7,494,958 1.20 35,716 .01 4,809 30,907 Italy............................................. 6,266,304 .70 1,526,004 .24 4,740,300 1.74 4,732,800 7,500 India............................................ 5,780,628 .64 3,515,630 .56 2,264,998 .83 2,225,318 39,680 Denmark.................................... 5,703,937 .63 308,338 .05 5,395,599 1.98 5,394,999 600 Switzerland................................ 4,927,708 .55 3,289,304 .53 1,638,404 .60 1,638,079 325 3,156,676 .35 3,106,596 . 50 50,080 . 02 50,060 Sweden........................................ 3,076^934 .34 L215.010 .19 1,861,924 68 1,861,624 300 Arabia......................................... 2,910,549 .32 2,818,120 .45 92,429 .03 92,429 — Netherlands............................... 2,737,424 .31 737,782 .12 1,999,642 .73 1,997,642 2,000 Brazil........................................... 2,635,704 .29 2,634,182 .42 1,522 — 1,522 — Norway....................................... 2,586,528 .29 314,864 .05 2,271,664 .83 2,271,664 — Australia.................................... 2,077,472 .23 1,885,824 .30 191,648 .07 124,598 67,050 Spain............................................ 2,032,896 .23 356,938 .06 1,675,958 .61 1,654,333 21,625 Argentina................................... 2,010,380 .22 1,834,480 .27 175,900 .06 175,900 — Costa Rica................................. 1,322,888 .15 1,230,740 .20 92,148 .03 90,250 1,898 Czechoslovakia........................ 1,173,710 .13 162,350 .03 1,011,360 .37 1,011,360 — Palestine..................................... 1,170,390 .13 88 — 1,170,302 .43 1,080,302 90,000 British Africa............................ 985,189 .11 26,372 — 958,817 .35 934,469 24,348 Austria......................................... 968,098 .11 45,998 .01 922,100 .34 922,100 — Hawaii......................................... 919,532 .10 565,472 .09 354,060 .13 318,151 35,909 Poland......................................... 911,828 .10 — — 911,828 .33 911,828 — Malaya....................................... 840,353 .09 52,662* .01 787,691 .29 452,371 335,320 French Africa............................ 593,450 .07 593,450 .22 593,450 — Ceylon......................................... 570,787 .06 569,080 .09 1,707 — 1,707 — Guam.......................................... 531,081 .06 164 — . 530,917 .19 333,431 197,486 Persia.......................................... 518,966 .06 518,966 .08 — — — — French East Indies................. 490,167 .05 33,290 .01 456,877 .17 167,644 289,233 Mexico........................................ 498,767 .05 487,644 .08 9,123 — 9,123 — British Oceania........................ 308,246 .03 308,246 .05 — — — — Egypt.......................................... 298,114 .03 283,114 .05 15,000 .01 — 15,000 Panama, Republic of............. 240,495 .03 26,080 — 214,415 .08 214,415 — Luxemburg................................ 222,618 .02 222,618 .04 — — — — Portugal..................................... 189,661 .02 158,370 .02 31,291 .01 31,291 — Uruguay..................................... 155,390 .02 130,070 .02 25,320 .01 25,320 — New Zealand............................ 132,584 .01 132,584 . .02 — Chile............................................ 128,979 .01 526 — 128,453 .05 128,453 — Puerto Rico............................... 104,346 .01 — — 104,346 .04 104,346 — Peru.............................................. 92,324 .01 — — 92,324 .03 92,324 — Portuguese China................... 61,452 .01 — — 61,452 .02 468 60,984 Venezuela................................... 47,914 .01 — — 47,914 .02 47,914 — Alaska......................................... 46,478 .01 — — 46,478 .02 46,478 — Nicaragua.................................. 30,882 — 28,950 — 1,932 — 1,932 — Portuguese Africa.................... 28,977 — — — 28,977 .02 28,977 — Newfoundland and Labrador 22,769 — — — 22,769 .01 22,769 — Finland............................... 15,954 — 15,954 __ __ — Sto. Domingo, Republic of. 15,225 — 9,920 — 5,305 — 5,305 — Dutch Guiana.......................... 14,646 — — __ 14,646 .01 14,646 — Dutch West Indies.................. 10,798 — — __ 10,798 10,798 — Panama, Canal Zone.............. 8,307 — — __ 8,307 __ 8,307 — Colombia................................... 7,840 — 3,928 — 3,912 __ 3,912 — Ecuador...................................... 5,248 — — __ 5,248 __ 5,248 — Salvador..................................... 3,821 — — — 3,821 __ 3,821 — Syria............................................ 2,742 — 2,742 — — — — — Ireland........................................ 2,010 — 2,010 __ _ __ __ __ — British Guiana......................... 1,103 — __ 1,103 __ __ 1,103 British West Indies................. 888 — 888 — — — — Cuba............................................ 768 — 122 — 646 — 646 — Honduras................................... 743 — — — 743 — 743 — Greece......................................... 442 — 442 — — — — — Pakistan..................................... 414 — 64 __ 350 __ — 350 Turkey....................................... 306 306 — — — penury of these miserable masses [of Asia) is not caused by capitalism, but by the absence of capitalism. But for the triumph of laissez faire, the lot of the peoples of Western Europe would have been even worse than that of the coolies. What is wrong with Asia is that the per capita quota of capital invested is extremely low when compared with the capital equipment of the West.” — Ludwig von Mises. 372 Office of the President. ... (.Continued from page 367) and Trade Rehabilitation Administration (PRATRA) with a view to eliminating certain functions which place the entity in competition with private enterprise. “The Chief executive explained that in his recent luncheon conference, with the Philippine Association when he had inquired into local business problems several members pointed out to him certain functions of the PRATRA which they claimed were disadvantageous to private enterprise. The President during the luncheon conference requested the Philippine Association to submit a composite memorandum showing in what ways the PRATRA was competing with private business. Acting Secretary of Foreign Affairs Felino Neri, who serves as Executive Vice-President of the Association, told the Cabinet the Association’s memorandum will be ready in a few days. The composite memorandum will contain the representative views of all businessmen with Paul Wood, President of the American Chamber of Com merce, presenting the American view, Gil Puyat, of the Philippine Chamber, pre senting the view of Filipino businessmen, and Peter Lim, of the Chinese Chamber, the Chinese side. Pending submission of the memorandum, the President directed the cabinet members who are on the PRATRA Board to go over the PRATRA Executive Order carefully. He instructed them to formulate ways and means of giving due encouragement to private enterprise while at the same time giving im petus to wider Filipino participation in the retail trade. “The President during the Cabinet meeting also approved the transfer of relief goods in PRATRA bodegas to the PACSA (President’s Action Committee for Social Amelioration). In the course of the discussions, Welfare Commissioner Asuncion Perez called attention to the existence of these goods. Inasmuch as the PRATRA has already withdrawn its relief activities, she said, the relief articles in its possession such as canned goods, shoes, and clothing, should be inventoried and transferred to the PACSA which is now undertaking all the relief work through out the country.” The President announces the creation of a National Peace Fund Commission with Vice-President Fernando Lopez as Chairman and Senator Eulogio Rodriguez as Vice-Chairman and Treasurer. According to a semi-annual report of Secretary of Agriculture and Natural Resources Placido Mapa, Chairman of the Board of Directors of the Philippine Air Lines, Inc., the Line has registered a net profit of P38.947 as compared to a net loss of Pl76,095 during the first 6 months of 1949. “A breakdown of the reported profits indicated that while the Interisland Division made a net profit of Pl55,455 during the first 6 months of this year as compared to its net loss of Pl 14,351 during the same period in 1949, the Interna tional Division incurred a net loss of Pl 16,508 during the first 6 months this year as compared to its net loss of P61.643 for the same period in 1949. Secretary Mapa, however, indicated in his report that the increase in losses in the International Division during the first semester of this year has been ofTset by the net profit of P201.837 which the same division registered for July. Meanwhile, a net profit of no less than P300.000 is expected to be earned by the same division for August, the report added. A substantial decrease in the operating expenses in the Inter- ■ island Service was also reported during the first half of 1950 as compared to the same period last year. The decrease this year amounted to Pl,032,118 and was attributed primarily to economy adjustments effected by the management in the interisland schedules which more than offset the decrease in the revenue earned during this period. Considerable savings were realized in every category of expense except in depreciation, the report said.” Sept. 6—Acting Secretary Neri states that 1,000,000 doses of anti smallpox vaccine.and 12,000 bottles (60 cc) of anti-cholera-dysenterytyphoid vaccines, manufactured by the Alabang Laboratories of the Department of Health, are ready for shipment to Korea, and that he is arranging with the Philippine Sugar Association the sending of appreciable quantities of alcohol, also needed on the war-front. Sept. 7—The President receives a number of Manila Rotarians, including E. A. Perkins and R. V. del Rosario, who submit a plan design ed to help the Import Control Administration including the free tech nical services of member Rotarians; the President expresses his ap preciation. The Philippine Exporters Association committee, headed by Jesus Cabarrus, petitions the President to reconsider the provision in the pertinent Executive Order which requires Philippine exporters to sur render all dollars earned from exportation to Japan to the Central Bank to be exchanged for pesos, and asks that the Order be changed so as to entitle them to receive at least 75% of the money in dollars. Budget Commissioner Pio Joven states in a radio address that the Government’s deficit operation was necessary because of the heavy expenses since liberation for rehabilitation of the Government, the rebuilding and repair of damaged public properties, the natural in crease in the services demanded of the Government, the taking over of services formerly financed by the United States Government, the expenditures necessary because of the country’s new independent status such as the maintenance of foreign affairs establishments, the increases in the outlay for national defense in ground, air, and naval forces, the relief of veterans and their survivors, etc. Sept. 8—The Cabinet concurs in a directive issued by the President yesterday to Col. A. N. Bautista, General Manager of the National Development Company, instructing him to dispose of NDC subsidiaries which may be competing with private enterprise. “These moves are in accordance with the long-standing government policy of not competing with private industry and to pioneer only in enterprises con sidered essential to the development of the country but where private capital is not prepared to enter. In this connection, it will be recalled that the NDC recently disposed of its nail-manufacturing plant to a private concern in line with this govern ment policy. Proceeds from the sale of these projects will thus be available for investment in other economic development projects, the President said.” The President, with Cabinet concurrence, also rules that old ten ants on the Government-owned Tambobong Estate, be charged no more than the rates provided for in the original sub-division agreement but that others may be charged slightly higher rates to enable the Government to recover its investment. Sept. 9—The President at Camp Murphy reviews the 10th Bat talion Combat Team which will leave shortly for Korea and announces in a speech that the soldiers’ pay has been raised from a minimum of P50 a month to P240. R. V. del Rosario, heading a delegation of Manila Jaycees also present announces that a total of Pl5,000 had already been collected in the fund campaign to aid their families. During Jhe affair, the President donates Pl,000, the Vice-President P500, and other officials various amounts to the fund. The President approves the release of P5,000,000 in further aid in the rehabilitation of the Manila hemp industry; P4,500,000 of the amount to be made available to the Rehabilitation Finance Corpora tion for loans to the planters and P500.000 to the Department of Agri culture and Natural Resources for the control of the’ abaca mosaic disease. The latter amount is to be repaid out of the inspection fees collected by the Fiber Inspection Service, the rate of which is to be increased from P.80 to Pl.00 per bale as recommended by the National Economic Council. The P5,000,000 is to come from the Central Bank funds earmarked for direct advances to the Government for self-liqui dating development projects in accordance with Section 137 of Republic Act No. 265. Sept. 11—The President administers the oath of office to Judge Pompeyo Diaz as Immigration Commissioner, succeeding Jose P. Bengzon, recently named acting Secretary of Justice. The President visited the Immigration Bureau Building and instructed the personnel there to be “courteous and hospitable” to foreigners “because it is through you that they get their first impressions of this country”. Seeing a number of placards reading “Hats Off”, the President ordered them taken down immediately. “It is the respect that you inspire that counts, not the respect that you impose,” he said. Later he visited the Central Bank offices to inquire into the progress made in the sale of government bonds and to see for himself the lately publicized overly luxurious furniture installed there. Sept. 12—Secretary Mapa reports to the Cabinet that the Bureau of Lands approved a total of 29,756 applications for public lands aggre gating 222,474 hectares during 1949 and 1950, as against only 9,737 appli cations covering 76,438 hectares in 1947 and 1948. The number of patents issued for public lands rose to 6,574, covering 70,892 hectares, in 1949 and 1950, as against 1,245 patents, covering 24,042 hectares, in 1947 and 1948. Some 95% of the applications and patents approved were for small areas of from 8 to 12 hectares each. The surveying and sub dividing of lands has also been accelerated, with 35 survey parties in the field at present, of which 22 are in Mindanao. Secretary Mapa reports also that the Cebu Portland Cement Company at the close of the fiscal year ending June 30, 1950, made a net profit of ?2,403,032 for the year and that the stockholders have approved a 100% stock dividend increasing the capital stock from P6,000,000 to P12.000.000 in view of capital improvements. Produc tion increased from 3,688,000 to 5,581,000 bags and Secretary Mapa states that he has therefore disapproved further importation of ce ment from Japan. The Cabinet, on petition of the Association of Philippine Traders with Occupied Japan, cuts PRATRA’s proposed importation of-4000 tons of galvanized-iron sheets from Japan to 2,000 tons and orders it to be sold at a ceiling price of P6 a sheet. Secretary of Commerce and Industry Cornelio Balmaceda, who is Chairman of PRATRA, explains that— “the purpose of PRATRA is not to compete with private traders but only to hold a certain amount of G-I sheets ready to sell at the ceiling price whenever the public' finds any difficulty in buying them from the regular traders.” Sept. 13—Announced at Malacanan that the President has ap pointed Vice-President Fernando Lopez Secretary of Agriculture and Natural Resources; Jose P. Bengzon, Secretary of Justice; Pablo Lo renzo, Secretary of Education; Salvador Araneta, Secretary of Eco nomic Coordination; Placido L. Mapa, Chairman of the Board of Gov ernors of the Rehabilitation Finance Commission, and Prospero Sanidad as President and General Manager of the Manila Railroad Company. The United States Government transfers to the Philippine Govern ment, 32 housing units in the Diliman area valued at $246,585, a part of the 93 units ultimately to be thus transferred; 60 units are being retained temporarily for the use of the personnel of the Adjutant General Records Depository, U. S. Army. Sept. 14—The President inducts the five new cabinet members into office, including, besides those already mentioned, Dr. Juan C. Salcedo, Jr., as Secretary of Health. Sept. 15—The Council of State confirms the President’s policy of selling all government corporations except the public utility enter prises and such other entities as should continue to be operated by the Government in the public interest. Among those destined for early abolition are the Shipping Administration, the Surplus Liquidation Committee, and the Bureau of Hospitals. The Council also considered the release of 50 hectares of land on Culion Island, containing a high grade manganese deposit, as recommended by the Bureau of Mines; the release is opposed by the Bureau of Health because of the leper colony on the island. The Hibok-hibok volcano in Oriental Misamis again erupts, over 60 people being reported killed by showers of hot ashes. Sept. 16—The President inaugurates the newly rebuilt Manila Police Department Headquarters on Isaac Peral Street, formally turned over to the Philippine Government by the U. S. Philippine War Damage Commission. Sept. 18—The President confers with the members of the U. S. Military Defense Assistance Program survey team now visiting Far 373 Eastern countries headed by John F. Melby, special assistant in the State Department, Chief of Mission, and Maj. Gen. Graves B. Erskine, USMC, head of the military section of the group. The President administers the oath of office to Chairman Mapa of the RFC Board of Governors, as acting Secretary of Finance during the absence of Secretary Pio Pedrosa who left the Philippines recently to attend the conference on general agreements on tariff and trade at Torquay, England. Sept. 19—Upon receipt of information that the Philippine troop contingent has arrived in Korea, the President issues a statement: "I am happy to learn that the Filipino contingent arrived safely in Korea. I am sure that our fighters will give a good account of themselves. I shall be praying for them...” Malacanan announces the ad interim appointment of Secretary of Economic Coordination Araneta as member of the National Eco nomic Council, and the appointment of Secretary of Justice Bengzon as Chairman of the Board of Directors of the Rural Progress Adminis tration. At a Cabinet meeting the President directs the Secretary of Justice to expedite the trials of government officials facing charges of graft; Secretary of Defense Magsaysay to study the feasibility of utilizing ROTC arms for the peace campaign; Secretary of Education Lorenzo to emphasize vocational education in the public schools; and Acting Secretary of Finance Mapa to carry out a strict enforcement of the tax laws; all members of the Cabinet are instructed to enforce the rule that no government official or employee may teach more than six hours a week in any private school. The President issues Executive Order No. 345 creating a Peace Fund Campaign Commission to be headed by Vice-President Lopez. The funds to be raised by voluntary subscription are to be used for the purchase of loose firearms, compensation of additional members of the Armed Forces to be employed in the peace campaign, indemnity to the heirs of those who may be killed or injured in line of duty, relief to the civilian population, etc. All contributions and disbursements are to be audited by the office of the Auditor General. Sept. 20—The President announces his intention to call a con ference of representatives of various commercial organizations to secure their opinions on how the operations of the Import Control Adminis tration could be adjusted to serve the best interests of the public, the announcement following his receiving of a delegation from the Philip pine Chamber of Industries headed by Jose P. Marcelo. Sept. 21—The President inducts former Secretary of Public Works and Communications Prospero Sanidad as President and General Man ager of the Manila Railroad Company, and former Secretary of the Interior Sotero Baluyot as Acting Secretary of Public Works and Com munications. Sept. 22—The President signs an Executive Order providing for the organization of “Barangay Associations” throughout the country. The Cabinet acts favorably on the proposal of a number of im porting firms to stockpile a supply of canned evaporated milk to ease the existing shortage. A protest of the Bailey Stevedoring Company, the Philippine Ports Terminal, the Union Stevedoring Company, Ramon Caro, and Ray Higgins against the award of the bid for the Port of Manila arrastre service to the Delgado Bros. Inc., is referred to Secretary of Justice Bengzon by Executive Secretary Teodoro Evangelista. Sept. 26—The President receives a comprehensive memorandum from the Philippine Association on PRATRA and the projected Price Stabilization Corporation. Sept. 27—The President announces he will call representative elements of the country’s importers to consider import and exchange control problems, following the presentation by the National Land Transportation Operators Association of a petition seeking the lifting or relaxation of the controls on motor vehicles, tires, batteries, and spare parts. The President swears in Vice-President Lopez as Chairman of the Board of Directors of the National Development Company. Banking and Finance I. G. Spering Sub-Manager, National City Bank of New York COMPARATIVE Statement of Condition of the Central Bank of the Philippines. P793.629 P807.765 P818.151 P817.215 As of Dec. 31 As of June 30 As of July 31 As of Aug. 31 Assets (In thousands of pesos) International Reserve... . P460.689 P441.250 P439.328 P446.758 Contribution to Interna tional Monetary Fund. 30,000 30,000 30,000 30,000 Account to Secure Coin age .................................... 113,306 113,306 113,306 113,306 Loans and Advances........ 77,047 63,918 68,624 53,168 Domestic Securities......... 92,197 125,780 132,337 137,250 Trust Account-Securities Stabilization Fund. ... — 6,848 6,848 6,848 Other Assets....................... 20,390 26,663 27,707 29,885 P793.629 P807.765 P818.151 P817.215 Liabilities Currency — Notes......... P555.576 P531.477 P545,125, P556.9U Coins......... 74,384 81,320 81,929 82,557 Demand Deposits-Pesos.. 117,682 139,282 140,122 1'25,234 Securities Stabilization Fund................................. 2,000 6,848 6,848 6,848 Due to International Monetary Fund............. 22,498 22,498 22,498 22,498 Due to International Bank for Reconstruc tion and Development 2,389 2,388 2,388 2,388 Other Liabilities................ 2,636 8,130 2,749 3,590 Capital................................. 10,000 10,000 10,000 10,000 Undivided Profits............. 6,464 4,206 4,875 5,573 Surplus................................. — 1,616 1,616 1,616 Contingent Account Forward Exchange Sold. . I* 6,460 — — — *the International Reserve showed an increase in August of P7MM over July, and we are informed a further increase as of September 14 of P22MM. As a matter of interest, the trend of the International Reserve of the Central Bank and the net foreign exchange holdings of other Philippine banks for the past six months is shown in the following table in millions of dollars: International Reserve Central Bank Net FX Holdings Other Banks Total June 30, 1949................... .$ 320MM $ 20MM $340MM September 30, 1949........ . 279 35 314 December 8, 1949........... . 225 25 250 December 31, 1949......... . 231 29 260 January 31, 1950............. . 221 31 252 March 31, 1950............... . 221 33 254 June 30, 1950................... . 221 43 264 August 31, 1950.............. . 223 46 269 September 14, 1950........ . 234 46 280 The increase is attributed to the comparatively small volume of import licenses issued in the recent past, a larger volume of exports, and the dollar funds made available for the second war damage payments. Loans and advances decreased over P15MM, being the net of repayments of P20,456,000 by the Treasurer of the Philippines, and a further loan of P5MM to the Philippine National Bank. Domestic securities increased another P5MM representing further advances to the Government plus the net of bonds reacquired and sold. Currency notes in circulation increased by P11.786M. Demand deposits decreased by P15.889M, representing a decrease in deposits of local banks of P3.222M, of the Treasurer of the Philippines P11.434M, and of other govern ment entities P233M. The latest statistics issued by the Central Bank reveal that the money supply in the Philippines had increased from P1.037MM as of December 31 to P1.110MM as of May 31. Money supply consists of currency issued, minus cash in Treasury vaults and cash in banks; plus the peso demand-deposit liabilities of banks, excluding the national government deposits and inter-bank deposits, but including unused overdraft lines and manager’s, cashier’s, and certified checks. 374 Other figures of interest pertaining to all Philippine banks (excluding the-Central Bank) follow: May 31, 1950 Loans and acceptances .. 543 Bonds and securities. ... 69 Total earning assets......... 640 Total demand, savings, and time deposits......... 775 Capital net worth............. 80 Total resources........ 1045 Dec. 31, Dec. 31, 1949 (In millions of pesos) 571 53 624 739 76 1016 540 80 620 847 54 1238 0.021 0.70 0.22 0.08 0.22 0.26 0.043 0.11 Masbate Cons. Mining Mindanao Mother Lode.......................... Misamis Chromite, Inc.............................. Pax^acale Gumaus San Mauricio Mining Surigao Cons. Mining Co............................... Suvoc Cons. Mining United Paracale Min ing Co....................... 0.02 0.59 0.035 0.16 0.27 0.015 0.06 0.018 0.47 0.03 0.14 0.20 0.015 0.045 0.024a 0.59 Up 0.03a 0.16a 0.27 0.02a 0.07a 0.11 741,620 607,000 538,000 96,000 1,269,500 100,000 82,600 Money conditions continue generally easy. Gradual liquidation of inventories without replacements, caused by import controls, has resulted in an accumulation of cash balances by merchants and a lessened demand for bank credit. Idle funds seeking investment outlet have stimu lated interest in real estate and some speculation in com modities. 88.00 COMMERCIAL SHARES Bank c-f the Philippine Central Azucarera de Central Azucarera de Central Azucarera de China Banking Corp.. Filipinas Cia. de SeManila Wine MerMarsman & Co. — Manila Stock Exchange By Roy Ewing Swan, Culbertson & Fritz, Inc. September 1 to 30, 1950 100 00 97 00 Mar a man 8c Co.— Preferred.................. Philippine Guatanty Philippine Oil Deve lopment .................... Philippine Racing Club. San Miguel Brewery— THE market strength which started in July carried through September and sent the Mining Share Average to a new high since June of 1948. Volume broadened and all sections of the market participated as devaluation fears sent funds into shares. The improved international news also aided sentiment. 104.00 100.00 9.00 7.00 San Miguel Brewery— 7% Pfd.................... San Miguel Brewery— Williams Equipment *Ex-Dividend. 88.00 86.00 85.00b — 82.00 71.00 79.00a — 185.00 150.00 185.00a — 29.00 25.00 35.00a — — — 190.00b — — — 26.00b — — — 210.00b — — — 0.30b — — — 0.30b — — — 26.00b — 0.0725 0.07 0.0725 Up 0.0075 — — 1.20b — 33.50 30.00 33.00* Up 3.00 97.00 97.00 97.00a* — 104.00 104.00 105.00a* — OVER-THE-COUNTER 59 710 582 .1,288 497,000 32,425 400 225 Some of the largest gains were in the gold producing issues, reflecting the price of gold in the free market where it sold as high as P125 per ounce. Atok-Big Wedge, Min danao Mother Lode, and Surigao Consolidated reported favorable results from developments at depth. Surigao paid a $0.01 dividend to stockholders of record October 4. T nt erest picked up in several non-producers on announce ments of rehabilitation plans and the expectation of receipt of second war damage payments. In the Base Metal group Lepanto continued strong on excellent productions and earnings and the fact that it is a dollar earner. Acoje improved sharply on the news of a loan from the Rehabilitation Finance Corporation which will enable the Company to complete a mill to improve large tonnage of .uw-grade ore into a shipping product. Conso lidated Mines responded to the news of 21,500 tons shipped in August with around the same amount expected for September. In the Commercial and Industrial group the sugar shares continued in demand, a few advancing to record highs. San Miguel Brewery also moved up on heavy in vestment buying. Victorias Milling............... Taysan "A"....................... Wichman Philippine.......... Ortigas. Madrigal y Cia. .. Brias-Roxas, Inc................. High 225.00 0.01 0.0015 8.00 300.00 180.00 0.01 0.0015 8.00 300.00 Close Total Sales 225.00 639 0.01 20.000 0.0015 50,000 8.00 1,451 300.00 22 MINING 1949-50 Range High 94.40 60.32 M.S.E. Mining Share 0.375 0.09 Acoje Mining Co......... 0.024 0.011 Antamok Goldfields Mining Co............... 0.68 0.26 Atok-Big Wedge Min ing Co....................... 0.07 0.04 Baguio Gold Mining 3.75 2.00 Balatoc Mining Com0.0C52 0.0025 Batong Buhay Gold 5.30 2.50 Benguet Cons. Mining 0.05 0.012 Coco Grove, Inc.......... 0.014 0.0078 Consolidated Mines, Inc.............................. 0.115 0.038 Itogon Mining Com0.08 0.025 IXL Mining Company 0.53 0.17 Lepanto Cons. Mining Co............................... SHARES High Low Close Change Total Sales 102.21 80.65 102.21 Up 21.56 12,453,338 0.17 0.14 0.15a — 130,000 0.015 0.015 0.015a — 250,000 0.38 0.31 0.38 Up 0.05 752,000 0.06 0.06 0.0625a — 69,000 2.25 2.05 2.20 - 14,200 0.0031 0.003 0.003 — 162,000 3.80 3.05 3.80 14,832 0.02 0.012 0.02a — 75,000 0.0105 0.0086 0.01 — 3,185,000 0.08 0.05 0.075a 950,000 0.036 0.03 0.05a — 57,000 0.71 0.55 0.71 Up 0.17 1,963,500 Credit By C. W. Muilenburg Manager, Credit and Collection Department International Harvester Company of Philippines DURING the past few weeks there have been certain developments and trends in the extension of credit by the credit managers of some firms in the Philip pines. Although there have been no marked changes in established terms, several credit managers report that existing terms are much more rigidly enforced at this time than was true in “pre-control” days, when merchandise was plentiful and a sellers’ market existed. Credit managers now expect and enforce strict compliance with established terms. There has also been a tendency on the part of several firms to grant fairly liberal discounts on accounts that are paid within a specified time at the office of the seller. This accomplishes two very important objectives,—it obviates the necessity of sending collectors to the buyer’s establish ment to effect collection, thereby decreasing the cost of collection; and it brings the money in faster, with the resultant reduction in receivables for the seller firm to gether with improvement in the seller’s cash position and increase in working capital. These discounts vary from 2%, for payment in 10 days from date of invoice, to as much as 10% in 15 days. Many firms feel that the benefits derived from this policy are well worth the discounts granted and the additional bookkeeping involved. This is particularly true for firms which have set up the payment-discount plan in place of other discounts formerly granted, thereby ex periencing no actual decrease in net income. 375 Ocean Shipping and Exports By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for the month of August this year showed a general increase over exports during August of last year. 99 vessels lifted 249,118 tons of exports during the month, as compared to 162,829 tons lifted by 97 vessels, during the same month last year. Exports for August, 1950, as compared with exports during August, 1949, were as follows: Real estate mortgages placed in the Greater Manila area during the month numbered 346, with a total value of P9,280,361, of which 145, with a total value of P6.262,127 are in Manila proper, and 201, with a total value of P3,018,234, are in the suburbs. Monthly figures of sales and mortgages as compiled from reports of the offices of the Register of Deeds of Manila and suburbs, are: Month, 1950 1950 1949 Alcohol............................. 29 tons 27 tons Beer................................... 50 ” — ” Buntal fiber.................... 21 ” — ” Cigars and cigarettes.. 13 ” 9 ” Coconut, desiccated .. . 14,561 ” 8,090 ” Coconut oil..................... 7,535 ” 5,300 ” Concentrates, copper . ” gold... 2,566 ” 2,924 ” 487 ” 520 ” Copra........................ 81,084 ” 62,190 ” Copra cake, meal......... 6,722 ” 6,541 ” Embroideries.................. 213 ” 133 ” Empty cylinders........... 369 ” 235 ” Fish, salted..................... 29 ” 43 ” Fruits, fresh................... 11 ” 4 " Furniture, rattan.......... 936 ” 251 ” Gums, copal................... 84 ” 50 ” Hemp............................... 67,276 bales 33,108 bales Hemp, knotted............. 56 tons 14 tons Household goods........... 776 ” 166 ” Junk, metal.. . .............. 1,690 ” 380 ” Kapok.............................. 48 ” 25 ” Logs.................................. 3,667,222 bft. 3,497,563 bft. Lumber........................... 3,714,730 ” 1,072,748 ” Molasses.......................... 5,949 tons 504 tons Plywood.......................... 154 ” — Ores: chrome................. 22,352 ” 26,000 ” ” iron........................ 45,628 ” 25,052 ” Pineapples, canned . .. 8,375 ” 3,976 ” Rattan, palasan............. 268 ” 28 ” Rope................................. 191 ” 288 ” Rubber............................. 108 ” 71 ” Shells................................ 26 ” 34 ” Sugar................................ 17,847 ” 3,398 ” Tobacco........................... 514 ” 319 ” Vegetable oil products. 120 ” 50 ” Transit cargo............. 537 ” 282 “ General merchandise .. 5,964 ” 1,222 ” January................ February............... March................... April...................... May...................... July....................... September............ Cumulative.......... Monthly Average. January................ February.............. March................... SgL juiy^................... September............ Cumulative.......... Monthly Average. No. REAL ESTATE SALES (January to September, 1950) Suburbs Value MANValue (267) F 4,486,846 (240) 3,002,289 (239) 2,660,652 (146) 1,757,506 (225) 5,715,108 (196) 3,508,044 (180) 2,995,048 (169) 3,741,735 (184) 4,585,616 No. (1846) P32.452.844 (3668) ?27,897,926 (5514) (205) 3,605,872 (408) 3,099,769 3,605,872 (408) (613) . REAL ESTATE MORTGAGES (139) (191) (181) (131) (171) (164) (137) SIB (1370) (152) (216) P 2,837,526 (223) 3,141,507 (232) 2,946,095 (202) 2,388,683 (245) 2,763,435 (199) 2,568,183 (182) 2,306,606 (191) 4,127,315 (201) 3,018,234 (355) (414) (413) (333) (416) (363) (319) (302) (346) P36.271.049 (1891) P26.097.584 (3261) 4,030,117 (210) 2,899,732 (362) Electric Power Production (Manila Electric Company System) J. F. Cotton Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH KILOWATT hours Real Estate By Antonio Varias Vice-President, C. M. Hoskins &• Co., Inc., Realtors REAL estate sales in the Greater Manila area, regis tered during the month of September, numbered 590, with a total value of P7,760,444, of which 184, with a total value of P4,585,616, represented deals within Manila proper, and 406 sales, with'a total value of P3,174,828, were in the suburbs. A number of the larger properties which changed hands during the month in the City of Manila were : A lot with an area of 3,252.18 square meters at Rizal Avenue and Soler Street, Sta. Cruz, sold by the Heirs of D. Tuason, Inc. to the Far East Realty Investment Co., Inc. for P700.000; The site of La Insular Cigar Factory in Binondo, which is a com plete block between the destroyed Binondo Church and Oriente Build ing, facing Plaza Calderon de la Barca, and bounded by Condesa, Oriente, and Nueva Streets, and having a land area of 5,240 square meters, sold by its Spanish owners to Ana Balmocena for P524.000; A property with a lot of 1,981.61 square meters at Nos. 52-56 Azcarraga Street corner 298-342 Salinas Street, San Nicolas, sold by La Provincia del Santissimo, etc., to Antonio Chua Roxas y Ayala for P300.000; A 6-door accesoria on a lot of 3,116.6 square meters situated at Tanduay, corner Arlegui and Tuberias Streets, Quiapo, sold by Guia de Bayer to United Realty Corporation for P270.000; and A parcel of 14,047.5 square meters at Tanque Street, Paco, sold by Mariano H. Bautista, et al. to Mayon Realty Corporation for P105.000. January................................................. February............................................... March.................................................... April....................................................... May........................................................ June........................................................ July......................................................... August................................................... September............................................ October................................................. November............................................. December.............................................. Total.............................................. 420,491,000 1950 1949 37,661,000 33,745,000 33,828,000 31,110,000 38,107,000 34,776,000 35,378,000 33,048,000 37,611,000 34,453,000 37,529,000 34,486,000 38,774,000 35,726,000 39,872,000* 35,394,000 38,870,000** 35,763,000 37,461,000 35,856,000 38,673,000 * Revised ♦ ♦ Partially Estimated ceptember output was 3,107,000 kwh, or 8.7% over 0 September, 1949, Daily output records were exceeded on several occasions but the total was under August be cause of the shorter month. The new Rockwell Station started partial operation in September. The Company now has sufficient capacity to carry full load. For almost a year it had been necessary to interrupt service nightly in one or more districts on a rotation basis, but this will no longerjje necessary barring unforeseen circumstances. Mining By Nestorio N. Lim Secretary, Chamber of Mines of the Philippines THE gold-producing mines are enjoying the increase in the free market price of gold during the months of July, August, and September, 1950, starting from P104.75 per ounce on July 1, with a low price of P101.25 per ounce on July 3, and gradually rising 376 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 377 PHILIPPINE GOLD MINES PRODUCTION Mining Companies Tonnage JULY AND AUGUST, 1950 Oz. Gold Value of Au. Oz. Sliver Value of Ag. Total Value Atok-Big Wedge Mining Co.... . . — 13,193------ 4,089.737— P286.281.59------ 2,356.437— P 3,346.15------ P 289,62 7.74—July 13,128------ 4,316.934— 302,185.38------ 2,746.128— 3,899.51------ 302,584.89—Aug. Balatoc Mining Company......... .. — 38,408------ 7,874.262— 551,199.40------ 4,294.000— 6,269.24------ 557,468.64—July — 37,035------ 7,264.000— 508,480.00------ 8,726.000— 12,739.96------ 521,219,96—Aug. Benguet Consolidated................ .. — 26,011------ 5,766.368— 403,620.00------ 3,144.000— 4,590.24------ 409,210.24—July — 24,688------ 5,313.000— 371,910.00------ 6,498.000— 9,487.08------ 381,397.08—Aug. Lepanto Consolidated (X)... .. — 3.159.7C- 3,181.100— 222,677.00------ — — 222,677.00—July — 4.200.0C- 3,064.900— 214,543.00------ — — 214,543.00—Aug. Mindanao Mother Lode (X) . . .. — 8,700 3,563.410— 249,438.70------ 4,472.000— 6,529.12------ 255,967.82—July — 9,500 — 4,819.110— 337,337.70------ 5,230.000— 7,635.80------ 344,973.50—Aug. Surigao Consolidated (X)........... — 9,104 — 2,535.040— 177,452.80------ 1,781.570— 2,601.09------ 180,053.89—July — 10,489------ 3,050.696— 213,548.72------ 1,931.210— 2,819.57------ 216,368.29—Aug. Surigao Placer............................... . — — 416.546— 29,158.22------ — — 29,158.22—July — — 354.745— 24,832.15------ — — 24,832.15—Aug. Tambis Gold Dredging.................. - 30,161 Cu.yd. 171.000— 10,200.00------ — — 10,200.00—July — 29,715 Cu.yd. 161.268— 9,600.00------ — — 9,600.00—Aug. X — Lead, copper or zinc values are not included. during August and September, with the last sale, as of this report, at Pl20 an ounce on September 28. The gradual rise in the price of gold was believed to be due to the first reverses in Korea as well as to the local inflation. The promising results of the development work of the gold mines during the last two months also has strengthened the ore-reserve positions of the mining companies. According to recent reports, the Atok-Big Wedge has cut the Keystone vein and another structure on the 10th level. Mindanao Mother Lode’s 1025-foot level cut the Tabon-tabon vein carrying high gold values. Surigao Consolidated, on its 5th level, found the Siana structure to have widened, with good values, increasing the known ore reserve. Surigao Consolidated will give another 10% dividend on October 9, 1950. Benguet and Balatoc continue to be the biggest pro ducers of gold, with Mindanao Mother Lode and AtokBig Wedge coming next. Look! Smooth and dangerous Lookogain Recapped-ready to roll! ALMOST like magic, isn't it? That's what happens to your smooth, worn tires when renewed by the Goodyear repair and recapping service. Here’s what this famous tire treatment does for you. Puts new "grip" on worn, smooth tires for quick, safe stops. Saves money by giving you extra miles of safe driving. Assures you quality work done by factory experts—trained in Goodyear methods using only the best of mate rials. For finest service, see the Extra Mileage Recapping means new life for old tires, new safety for you. art di 11 GOODYEAR RECAP PLAINT 11th & Atlanta Sts., Port Area, Manila Telephone: 3-32-16 378 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 Copra and Coconut Oil By H. Dean Hellis Manager, Philippine Refining Company, Inc. August 16 to September 15 THE period under review has seen rather sharp price advances for copra and coconut oil in practically all markets abroad, particularly in the United States and in Europe, with corresponding higher levels being currently paid for supplies throughout the Philippines. Only as the period closes has there appeared to be a possibly easier undertone, due principally to a rather sharp decline in American domestic oils and fats. Notwithstanding that the most recent cotton crop estimate in the United States is lower than previously anticipated, also in spite of the fact that both the cotton and soybean crops are late this year due to unfavorable weather conditions, it would seem that the near advent on the market of the new crops is beginning to press somewhat on what have recently been quite high prices. Tallow in the United States, like wise, has advanced in price to such an extent that it has practically priced itself out of the export market. Nevertheless, demand for copra and coconut oil has continued fairly strong throughout the period, and there has been little difficulty in selling at steadily increasing prices. We still feel that most of this demand abroad has been occasioned by nervousness and a desire to add further to inventory positions, undoubtedly due in a large measure to the continued tense Korean and international situa tions. Were it not for the latter, it is our opinion that prices for both copra and coconut oil in the world’s markets would not have risen to anywhere near present levels. Supplies on the whole throughout the Islands have been quite plentiful, as they usually are at this time of the year. Otherwise we could well have seen still higher prices than those recently bid and paid. Freight space, particularly to Europe for September and October shipments, continues very tight, due, we are told, to rather heavy cargo movements from Japan, Malaya, and elsewhere in the Far East at more attractive rates than those currently quoted for copra from the Philippines. We mentioned this situation in our last month’s review, and it is just as acute now as then, perhaps even more so. If this condition should continue, freight rates are almost sure to be increased further. SERVING BOTH PUBLIC AND GOVERNMENT October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 3 79 ^The present market for both copra and coconut oil in general, however, continues to be felt as rather a dan gerous one for any trader who is not inclined to be at least somewhat conservative in his views and position, for any change in events for the better with regard to the interna tional picture, also the imminent pressure soon to be felt of the new crops in the United States, could easily bring a sharp downward reaction from present price levels. As the period under review opened, copra had been sold at $205 c.i.f. Pacific Coast, with sellers then asking $2.50 to $5 higher in anticipation of a further rise in the market. They did not have long to wait, as almost immediately thereafter they obtained their price, and the market continued to advance steadily until at close $227.50 c.i.f. was bid, while sellers were asking from $230 to $232.50 c.i.f. for prompt shipment on a named vessel. Considerable tonnage was sold all the way along on the market rise. Europe, also, continued to be a very interested and active buyer at increased price ideas, the main difficulty here being the Scarcity of available freight space for any nearby or prompt positions. This market advanced during the period from around $235 c. and f. basic European ports, to as high as $275 c. and f. at close, with business having been done on almost every occasion when freight space was made available to shippers. Whereas earlier, however, European buyers were interested in fairly forward positions, more recently their demand has been confined to shipment during September/October, in some cases perhaps even into November. Beyond this, there now appears a certain amount of reluctance to buy. The local markets for copra both in Manila and Cebu, particularly in Cebu, have also been exceptionally strong at steadily advancing prices. While it is difficult always to report accurate prices actually paid in these local markets, there is no doubt that better than P43 was paid in Manila, while in Cebu P45 to P46 was reported to have been done. Along with copra, the market for coconut oil naturally A commanded far more attractive prices than we have seen for some time. The demand, while not as strong as for copra, was likewise fairly brisk, and prices slightly better than 18 cents c.i.f. Atlantic Coast for November arrival were paid, with most sellers asking 18-1/4 cents to 18-1/2 cents c.i.f. at close. As of the close of the period, however, there is a slight tendency for both the copra and coconut oil markets to show some uncertainty as to nearby further probabilities. While sellers, generally, are not inclined to offer at, or to take, less, buyers do not appear quite as keen as they have been to buy. This, however, may only be a temporary condition, pending clarification of the domestic market situation in the United States. /'■'opra exports during the month of August, 1950, were fairly heavy, amounting to 81,084 tons, as compared to 67,017 tons during July, 1950, and 62,190 tons during August, 1949. The total for the January through August period in 1950 amounted to 378,185 tons, against 351,544 tons for the same period last year. August, 1950, exports are broken down as to destination, as follows: United States Pacific Coast....................................... 44,012 tons Atlantic Coast.................................... 6,543 ” Gulf Ports............................................ 7,293 ” Canada, Pacific Coast............................... 2,550 ” Europe............................................................ 8,050 ” Japan.............................................................. 6,201 ” Venezuela....................................................... 6,435 ” 81,084 tons Coconut oil exports for August, 1950, amounted to 7,535 tons, as compared to 5,945 tons during July, 1950, and 5,300 tons during August, 1949. The total exports for the January through August period in 1950 amounted to 35,959 tons, against 40,529 tons for the same period last year. August, 1950, exports of coconut oil are broken down as to destination, as follows: United States Atlantic Coast..................................... 5,997 tons Pacific Coast....................................... 195 ” Europe............................................................ 918 ” South Africa................................................. 425 ” 7,535 tons The market for Philippine copra meal is nowhere near as attractive as has recently been the case, due principally to increased available supplies on the Pacific Coast, plus the fact that Denmark has just about completed purchasing against the last ECA allocation for the purchase of this commodity. summarizing, though there is no definite indication of a break in the copra and coconut oil markets yet, it is our feeling that traders should view further probabil ities with the utmost of caution. We may not have yet seen the top, but at the same time prices have advanced so sharply and to such relatively high levels during the period under review that it is reasonable to assume that INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS -------------*-------------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila D. C. Cliuan & Sons, Inc, 14-30 Soler St. Manila Insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE-. 401 FILIPINAS BUILDING 380 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 we may be at least near the limit for the time being, with the possible danger of a reactionary downward movement to follow, perhaps even as sharp as the advance has been, particularly should there be any general improvement in the international situation. Desiccated Coconut By Howard H. Curran Assistant General Manager Peter Paul Philippine Corporation THIS report covers the period August 15 to September 15, during which time copra and nut prices rose sharp ly. Nut prices remained below the copra equivalent. Prices of copra and nuts started on a decline at the end of this period, however, probably due to the change of situa tion in Korea. The labor front remained quiet. Shipping statistics for the month of August, 1950, are as follows: Shipper Pounds Franklin Baker Company................................. 6,047,000 Blue Bar Coconut Company............................ 2,262,320 Peter Paul Philippine Corp.............................. 3,605,200 Red-V Coconut Products, Ltd......................... 4,632,200 Sun-Ripe Coconut Products, Inc.................... 1,477,700 Standard Coconut Corp..................................... 389,000 Cooperative Coconut Products, Inc............... 759,900 Tabacalera.............................................................. 747,000 Coconut Products (Phil.) Inc........................... 703,080 Luzon Desiccated Coconut Corp.................... 48,070 Total....................................................... 20,671,470 NOTE: Zamboanga Factory production ........................................ 548,490 lbs. Lusacan ” ” ...........................v . 1,713,830 ” Total Blue Bar shipments.................................................... 2,262,320 ” Peter Paul Production.......................................................... 3,019,200 " Standard Coconut production............................................. 586,000 " TOTAL Peter Paul Shipments........................................... 3,605,200 lbs. Manila Hemp By H. Robertson Vice-President and Assistant General Manager Macleod and Company of Philippines THIS review covers the period August 16 to September 15, 1950. During this period prices have moved somewhat lower. United States buying interest has been limited and, except for the few days immediately following Japan’s re-entry into the market, there was a slow but steady decline in values. As soon as it became evident that Japan’s requirements were principally low grades, United States buyers began to lose interest and the market continued to sag. Early in September Japan began to buy heavily against its quota. This quota, good until December 31, is $2,500,000 worth of abaca, or, say, 25,000 bales on the basis of $50 per bale c.i.f. The only result of Japan’s buying has been a distinct firming up in the coarse grades (around 19% of the total production), which have moved upward in value, while the higher grades have declined. Europe is also interested in buying and, as it also prefers to buy the cheaper grades, the spread between the prices of the higher and lower grades has decreased. New York Quotations: Per lb. c.i.f. New York August 15 September 15 Change Davao 1..................................... 28-3,4<f 26-5/8^5 - 1-1 8^ Davao JI................................... 27-1/2 26-3, 8 - 1-1.8 Davao G..................................... 27 25-3 8 - 1-5/8 Non-Davao 1........................... 27-1/8 26-3 8 - 3/4 Non-Davao JI......................... 26-1/2 25-5/8 - 7 8 Non-Davao G.......................... 19-1/2 19-3 '4 + 1 4 Philippine Provincial Quotations: Per Picul Basis Loose August 15 September 15 Change Davao I..................................... P61.50 P60.00 -Pl. 50 ENGINEERING EQUIPMENT r> & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS ★ ★ ★ Operating: General & Sales Office 174 M. de Comillas Manila Tel. 3-29-21 | MACHINE SHOPS • STEEL PLATE SHOPS Engineering Shops | STRUCTURAL STEEL SHOPS • WELDING No- 1 Ca,.,e L- Segura | SHOPS • BLACKSMITH SHOPS • SHEET Mandaluyong^Rizal METAL SHOPS • MARINE RAILWAY Tel. 6-65-68 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 381 Davao Jl..................................... P60.50 P59.00 - Pl . 50 Davao G..................................... P58.00 P56.50 - Pl . 50 Non-Davao I............................ P58.00 P57.00 -Pl.00 Non-Davao Jl......................... P56.00 P55.00 - Pl 00 Non-Davao G.......................... P41.00 P42.00 + Pl . 00 Pressings for August amounted to 68,931 bales—up 10,017 bales from July, and up 37,265 bales from the cor responding month last year. August Davao pressings were 38,032 bales, or 55% of the total. For the first eight months of this year, pressings totalled 481,939 bales, compared with 348,932 for the same period last year—an increase of 133,007 bales, or 38%. The following are the comparative figures for balings and exports for the first eight months of 1947 through 1950: Balings—January-August inclusive 1950 1949 1948 1947 238,643 143,848 141,783 250,551 115,300 79,717 130,931 163,847 77,022 72,253 78,867 58,284 50,974 53,114 84,382 57,203 481,939 348,932 435,963 529,885 Total bales................. Davao................................... Albay, Camarines, and Sorsogon.......................... Leyte and Samar.............. All other Non-Davao.. . . Exports—January-August inclusive 1947 1950 1949 1948 United States and Canada 240,564 129,854 195,608 366,502 Japan................................... 55,630 81,977 114,901 1,600 Continental Europe......... 80,390 67,108 72,354 77,536 United Kingdom............... 54,009 24,959 52,045 36,870 China................................... 9,258 9,531 7,916 2,121 India..................................... 4,030 3,100 818 4,850 Korea................................... 3,100 — — — South Africa....................... 4,125 3,034 2,257 4,300 Australia and New Zea land ................................... 1,631 1,187 42 750 All other countries........... — — — 2,075 Total bales................. 452,737 320,750 448,794 496,604 Sugar By G. G. Gordon Secretary-Treasurer Philippine Sugar Association THIS review covers the period from September 1 to September 30, 1950. New York Market. In view of the purchase by the United States Government of the available reserve sup plies from Cuba as reported in our review for last month, the market quotation was practically stabilized at 6.25/ during September for anything to arrive before the end of 1950. The distribution of refined sugar began to recede from the high points reached under the influence of the Korean War at the beginning of September, and on Sept ember 8 it was reported that the demand for household consumers was about back to normal, although there was a continued demand from industrial users which kept the market strong. Offshore refined sugar was sold at 50 points over the domestic price of $8.25. This demand by industrial users was attributed to their desire to rebuild inventories now that they could not look for lower prices for the rest of the year. On September 18 it was thought that there had been unreported transactions in the “free” raw market in Cubas, Puerto Ricos, and possibly Philippines at 6.25/. Some sellers offered Cubas at 6.30/ for October shipment, but these were ignored as long as government-held sugar is available at a shade less than 6.25/. As of September 16 refined distribution for the year to date was reported as 6,282,073 short tons, against 5,650,448 for the same period in 1949, an increase for this year of 631,625 tons. On September 26 Philippines for December/January shipment were reported as on offer at 6.25/, but buyers were not interested. THE LAST REGULAR MAIL ™ TIME TO HAVE YOUR GIFTS ARRIVE THERE BE FORE CHRISTMAS LEAVES for C. S. A........................ for Canada......................... for S. America.................. for Australia...................... for England.. • • • • • • ■ " for Continental Europe for Korea.......................... for Japan......................... for China......................... for Africa.......................... . Nov. 10 Nov. 10 .. Nov. 1 .. Nov. 25 .. Nov. .. Nov. .. Dec. .. Dec. .. Dec. ... Nov. 1 1 1 1 1 1 'Now is the time to purchase and mail your gifts to friends overseas. And what’s more appropriate than to send Philippine gifts. We offer a large variety of these— ★ Exquisitely Polished Narra HandCarved Gift Items ★ Sparkling Silver Filigrees ★ Beautifully made Easier School Luncheon Sets ★ Bizarre Igorot Carvings ★ ★ ★ ★ Abaca Novelties Moro Black-Coral Jewelry —and many other articles of shell distinctively typical of the tropic seas. Jusi Evening-Dress Materials Endearing Pina Luncheon Sets, Pina Tablecloth Sets, & Pina Altar Cloth Special packing for overseas PHILIPPINE tpUCATION CO./; 1104 CAST1LLEJOS, QU1APO, MANILA TEL. 3-22-51 382 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 It is evident that with the favorable developments in the Korean War situation, the only pressure on the market is for near positions. For next year, when new crop supplies will be available, the exchange positions have declined substantially. The Cuban world market remains very firm for the available supplies on hand, but the newcrop position on the exchange show a substantial decline. Spot was quoted at 5.85/ on September 29. We give below the quotations on the New York Sugar Exchange as of September 29 for Contracts Nos. 4 and 6: Contract No. 6 Contract No. 4 November................................ — 5.73 January.................................... 5.10 5.61 March....................................... 4 57 5.23 May......................................... 4.55 5.23 July........................................... 4 56 — September............................... 4.59 — October.................................... Local Market, (a) Domestic Sugar: There was a keen demand during the month for the free stocks of 194950 crop domestic sugar held by mills and planters. Dealers paid from P15.60 to P15.70 for the ordinary centrifugal sugar, Pl6.80 for the higher grades, and from P20.00 to P20.50 for washed sugar, all prices ex mill warehouse. The market for new crop domestic sugar was inactive pending the announcement by the Sugar Quota Office of the 1950-51 domestic quota. (b) Export Sugar: As stated in our last review, there is only a limited supply of old-crop export sugar available for purchase. Toward the end of the month there were buyers on the basis of Pl5.20 per picul ex mill warehouse. It is reported that there are buyers of new-crop sugar for delivery up to the end of the year at from P13.95 to P14.00 per picul, ex mill warehouse. 1950-51 Sugar Freight Rate. The Shippers’ Com mittee has had a meeting with the Carriers’ Committee regarding the new sugar freight rate. The negotiations will be continued later, but there is no indication as yet what the new rate will be. Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco Association, Inc. AS mentioned in previous articles, the cigarette manu facturing industry is booming, principally in the manufacture of Virginia-type cigarettes. During the first semester of this year, over 25,000 hogsheads of Vir ginia tobacco have been imported and will be consumed within the next few months. (Most of this Virginia tobacco which has been imported is of poor quality.) A vast major ity of the old manufacturers, and, I dare say, all the new, are completely in the dark on how to process and treat Virginia tobacco for cigarette manufacture. Cigarette smokers in the Philippines have acquired a taste for American cigarettes, which are blended of Vir ginia, Burley, and Turkish or Balkan tobaccos. A straight Virginia 'cigarette would be the British type of cigarette, which is not to the taste of this market. The Burley Tobacco Growers Cooperative Association of Lexington, Kentucky, has sent a Tobacco Consultant, Mr. R. C. Travis, on a tour to various countries to advise manufacturers on the best methods of processing, treating, and blending tobacco for the manufacturing of Americantype cigarettes. Though Mr. Travis is not on a tour to sell, but to promote, he emphasizes the fact that to produce an Amer ican-type cigarette a blend of Burley is essential, as the most popular brands in the United States use between 30% to 40% Burley in their blends. How One Machine^X Does Many. Job* • A P&H Excavator is really many ma chines in one. By changing simplified front end attachments, you can use it 'as a shovel or a dragline for digging ... as a crane for lifting ... as a trench hoe for ditching ... or as a pile driver. Users find this adaptability‘very prac tical because it permits them to handle a wider range of work—to eam more profits through the years. EXCAVATORS^ T3 Convertible lor a variety of services with front end attachments THESE P&H FEATURES CUT COSTS: > All-welded construction of rolled alloy steels — stronger > True tractor-type crawlers — better mobility > Smooth hydraulic control — easier operation P&H DISTRIBUTORS THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Corner Tacoma & Second Branch at BACOLOD Streets, Port Area, Manila Tel. 3-35-41 Occidental Negros Tel. 3-35-41 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 383 In my opinion, the Burley Tobacco Growers Coopera tive -Association is to be complimented on their selection of Mr. Travis, who is very likeable, hardworking, a wellversed man on the subject of tobacco and cigarette manu facture. Mr. Travis is, however, meeting with difficulties as he visits more and more of the local factories. He came on a mission to help by demonstrating that with the proper blending, locally manufactured cigarettes could be greatly improved, but he has found that our whole procedure is wrong. He is working hard to show how to process the tobacco from start to finish, but in the old factories, the makers, although they know he is right, shrug their shoul ders and say that the recent expansion has taken up so much of their available space that they can not act on all his suggestions. The old factories are indeed working under cramped conditions. The new factories can more easily profit from Mr. Travis’ pointers. The main question for both the old and the new cigarette factories is whether more tobacco will be allowed to be imported or if they all will have to revert to the use of purely native tobacco when the imported leaf has been consumed. Imports By S. ScHMELKES Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units. Commodities Augutt, 1950 August, 1949 • Automotive (Total)................................... 1,453,169 2,969,173 Automobiles............................................. 235,010 1,353,472 Auto Accessories..................................... Auto Parts................................................ Bicycles...................................................... Trucks........................................................ Truck Chassis.......................................... Truck Parts ............................................... Building Materials (Total)....................... Board, Fibre............................................. Cement....................................................... Glass, Window......................................... Gypsum..................................................... Chemicals (Total)....................................... Caustic Soda............................................ Explosives (Total)...................................... Firearms (Total)......................................... Ammunition.............................................. Hardware (Total)....................................... Household (Total)...................................... Machinery (Total)...................................... Metals (Total).............................................. Petroleum Products (Total).................... Radios (Total).............................................. Rubber Goods (Total)............................... Beverages, Misc. Alcoholic.................... Foodstuffs (Total Kilos).......................... Foodstuffs, Fresh (Total)......................... Apples........................................................ Oranges...................................................... Onions......................................................... Potatoes..................................................... Foodstuffs, Dry Packaged (Total)........ Foodstuffs, Canned (Total)...................... Sardines..................................................... Milk, Evaporated................................... Milk, Condensed.................................... Foodstuffs, Bulk (Total).......................... Rice............................................................ Wheat Flour............................................ Foodstuffs, Preserved (Total)................. 1,888 210,236 14,156 479,490 67,180 13,555,108 57,370 10,214,909 344,480 113,398 2,910,681 715,454 35,391 6,725 4,853 5,819,092 1,007,503 2,006,114 5,908,812 74,758,215 21,690 365,717 9,114 31,111,266 116,331 19,132 9,435 42,402 11,102 21,242 237,649 90,620 38,611 2,636 852,484 814,921 2,296 12,217 340,070 52,159 21,859 748,618 46,504 12,557,956 202,334 7,403,739 630,361 96,036 2,116,933 643,790 25,149 23,828 8,145 8,622,131 1,987,910 3,444,914 16,675,703 52,013,005 55,772 630,752 21,419 66,837,348 191,351 18,882 12,840 51,044 25,105 75,301 397,936 19,488 135,015 16,307 1,173,454 583,394 518,228 1,087 ENGINEERS • CONTRACTORS MANUFACTURERS - DISTRIBUTORS Specializing in the Fabrication and Erection of Bridges, Tanks and Buildings — OPERATING — MACHINE SHOPS FOR CONSTRUCTION AND REPAIR FOUNDRY FOR CAST IRON. BRASS AND BRONZE STEEL PLATE AND STRUCTURAL STEEL SHOPS MARINE REPAIR SHOPS • WOOD PRESERVING PLANT ATLANTIC, GULF & PACIFIC CO. OF MANILA PHILIPPINE CONTRACTORS SINCE 1905 Executive Offices • Engineering Division Structural & Machine Shops Barrio Punta, Santa Ana. Manila Tcls: 6-75-31 » 6-75-32 » 6-75-33 Merchandise Sale, Division Robert Dollar Bldg., Mnellc <lcl San Francisco A 2 3rd St., Port Area Tel: 3-36-61 (Connecting all Depts.) 384 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 PACIFIC MERCHMBISIi C 0 It I' 0 HIT I (I V 449 Dasmarinas 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 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 Bottling, Misc. (Total)......................... 367,691 2,222,616 Cleansing and Laundry (Total)........ 291,926 265,772 Entertainment Equipment (Total) . . 4,787 25,804 Livestock-bulbs-seeds (Total)............ 2,055 1,340 Medical (Total)........ 352,397 493,141 Musical (Total)........ 73,672 116,948 Office Equipment (Total). 20,602 179,163 Office Supplies (Total)........ 37,231 37,034 Paper (Total)............ 3,828,763 5,064,917 Photographic (Total)........... 15,147 31,091 Raw Materials (Total)........ 107,048 89,156 Sporting Goods (Total). .. . 19,789 57,931 Stationery (Total)... 183,646 270,755 Tobacco (Total).... 103,732 239,714 Chucheria (Total) ... 72,093 86,808 Clothing and Apparel (Total)............. 240,490 458,559 Cosmetics (Total) . . 46,792 174,983 Fabrics (Total)......... 879,853 860,532 Jewelry (Total)......... 244 273 Leather (Total)........ 185,644 228,283 Textiles (Total)........ 1,800,987 3,246,355 Twine (Total)........... 44,284 66,379 Toys (Total)............. 8,631 58,668 General Merchandise (Total)............. 289,292 568,028 Non-Commercial Shipments (Total). 53,925 56,942 Advertising Materials, Etc. (Total).. 349,381 622,140 Automobiles and Trucks By Karl E. Gay Sales Representative, Ford Motor Company REPORT OF SALES August, 1950, onLY Make Passenger Trucks Total No. % No. % No. % Philippines, Total Ford.................... 51 39.23 85 33.46 136 35.42 Mercury............. Lincoln. ■............. 2 1.54 2 .52 Prefect................ Chevrolet........... 41 31.54 66 25.98 107 27.86 Buick.................. Cadillac.............. Pontiac............... 2 1.54 2 .52 Oldsmobile......... G.M.C................. Chrysler............. 1 .77 1 .26 DeSoto............... 7 5.38 2 .79 9 2.34 •Plymouth........... Dodge................. 6 4.61 6 2.36 12 3.12 International . . 90 35.43 90 23.43 Willys.................. 12 9 23 1 .40 13 3.38 Nash.................... 3 2.31 3 .79 Packard............. Studebaker........ 3 1.18 3 .79 Reo...................... Austin................. 3 2.31 3 .79 Hudson............... 2 1.54 2 .52 Diamond T.... . 1 .40 1 .26 Total........... 130 254 384 Philippines, Total Accumulated to August 31. 1950 Ford.................... 382 28.69 619 32.31 1001 30.85 Mercury............. 49 3.68 49 .89 Lincoln............... 11 .83 11 .34 Prefect................ 5 .37 5 .15 Chevrolet........... 446 33.49 715 37.32 1161 35.78 Buick................... 51 3.83 51 1.57 Cadillac.............. 1 .07 1 .03 Pontiac............... 23 1.73 23 .71 Oldsmobile........ 2 .15 2 .06 G.M.C................. 28 1.46 28 .86 Chrysler............. 22 1.65 22 .68 DeSoto............... 51 3 83 29 1.51 80 2.46 Plymouth........... 15 1.13 15 .46 Dodge................. 38 2.85 64 3.34 102 3.14 Fargo................... 9 .47 9 .28 International . . 350 18 27 350 10.79 Willys................. 106 7.96 37 1.93 143 4.41 Nash.................... 48 3.60 48 1.48 Packard.............. 22 1.65 22 .68 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 385 Studebaker........ Reo .J................... Austin................. Hudson............... White.................. Bedford............... Renault............... Diamond T. .. . 38 2.85 14 1 05 7 .52 1 .07 21 1.10 14 .73 1 .05 2 .10 23 1 20 1 .05 59 1 82 14 .43 15 .46 7 .21 2 .06 23 .71 1 .03 1 .03 1,913 3,844 Total........... 1,331 Make Passenger No. Trucks Total % No. % % No. Manila and Northern Luzon Ford................ 304 26 81 322 27.63 626 27.23 Mercury........... 38 3 35 38 1.64 Lincoln............. 9 .79 9 .39 Prefect............. 5 .44 5 .22 Chevrolet.... 371 32 72 444 38 09 815 35.45 Buick................ 50 4 41 50 2.17 Cadillac............ Nil Nil Pontiac............. 19 1.67 19 .83 Oldsmobile. . . . 2 .18 2 .09 G.M.C.............. 19 1.63 19 .83 Chrysler........... 22 1 94 22 .96 DeSoto........... 46 4.06 29 2.49 75 3.26 Plymouth........ 13 1.14 13 .56 Dodge............... 34 3 00 40 3.43 74 3.22 Fargo................ 3 .26 3 .13 International. 239 20 51 239 10 40 Willys............. 101 8.91 34 2 92 135 5 87 Nash................. 41 3.61 41 1.78 Packard........... 21 1 85 21 .91 Studebaker... . 37 3.26 17 1.46 54 2 35 Reo................... 14 1 20 14 .61 Austin............... 14 1.23 1 .08 15 .65 Hudson............. 5 .44 5 .22 Renault............. 1 .09 1 .04 White............... 2 .17 2 .09 Diamond T. . . 1 .08 1 .04 Total........... 1133 1165 2298 Total.......... 198 Make Provinces Passenger No. Trucks Total % No. % No. % Ford................ 78 39.37 297 39.74 375 39 64 Mercury......... 11 5.55 11 1 16 Lincon............. 2 1.00 2 21 Prefect............. Chevrolet.... 75 37.85 271 36 23 346 36.57 Buick.............. 1 .50 1 .11 Cadillac.......... 1 .50 1 .11 Pontiac........... 4 2.00 4 .42 Oldsmobile. . . G.M.C............ 9 1.20 9 .95 Chrysler........... DeSoto........... 5 2 52 5 .53 Plymouth. . . 2 1.00 2 .21 Dodge............. 4 2.00 24 3.21 28 2 96 Fargo.............. 6 .80 6 .63 International. 111 14.85 111 11 73 Willys............. 5 2 52 3 .40 8 .84 Nash................. 6 3 03 6 .63 Packard........... 1 .50 1 .11 Studebaker... . 1 50 .54 53 5 .53 Reo................... Austin............... Hudson............. 2 1 00 • 2 .21 Bedford............ 23 3 08 23 2 43 748 946 Food Products By C. G. Herdman Director, Trading Division, Marsman & Co., Inc. THERE has been very little change in conditions in the local market during the past month. The status is practically the same as at the end of August except that the continued delay in issuance of import licenses has rendered still more acute the shortage of imported food stuffs, particularly in canned fruits and vegetables, canned meats, etc. I'm a busy little atom 1 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; lust push a switch and watch me zip With... light... or heat... or power. Reddy Kilowatt YOUR ELECTRIC SERVANT MANILA ELECTRIC COMPANY 386 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 REMEMBER THE FOLKS AT HOME! A box of put up in attractive holiday packing is a much appreciated CHRISTMAS PRESENT. The cigars can be mailed direct from the factory or delivered from our New York stock, to any place within the United States. Your personal card can be enclosed. PRICES for shipment from Manila by ordinary parcel post, (including postage, the U.S. Revenue Tax to be paid by recipient): Internal Shape Packing per box CORONAS 25’s Standard P 8.75 id 25’s Boite Nature, 9.50 id 50’s Boite Nature 16.00 id 25’s Tesorito 14.50 id 50’s Tesorito 22.50 id 50’s Chest 20.00 ESPECIALES 25’s Standard 7.75 id 25’s Boite Nature 8.25 ALCALDES 25’s Standard 7.25 id 50’s Standard 11.50 BELLEZAS 50’s Standard 7.50 Place your order now. Parcel post shipments from Manila should be forwarded NOT LATER THAN THE EARLY PART OF NOVEMBER, to assure arrival at destination before the holidays. PRICES for deliveries ex New York, (all expenses, including U.S. Internal Revenue Tax, prepaid; Reci pients pay no charges whatsoever): Shape Packing per box CORONAS 25’s Standard P 10.50 id 25’s Boite Nature 11.00 id 50’s Boite Nature 20.50 ESPECIALES 25’s Standard 9.50 Ask for Illustrated Folder ALHAMBRA CIGAR & CIGARETTE MEG. CO. P. O. Box 209 — Tel (2-64-94 31 Tayuman, Tondo—Manila The situation remains very serious in evaporated milk. Some shipments have arrived during the latter half of September but the quantities received are far from sufficient to meet consumption. It is understood that the Central Bank made special dollar exchange available to the Import Control Administration to permit additional importations of evaporated milk, that import licenses were approved last week for considerable quantities, and that larger ar rivals during late October and early November may be anticipated. Consumers in the meantime are encountering great difficulty in securing necessary supplies, and this condition will probably become even more serious before further stocks arrive in volume. qtocks of canned fish in the Islands are extremely low. The fishing season in Central California opened the middle of August and in Southern California opens the early part of October. Stocks of sardines in California were entirely depleted some time ago. Unfortunately the run of sardines in Central California has been so light as to be altogether negligible. Only a few canneries have been able to operate and then only in a very small way. It is hoped that the run of the fish will be much better in South ern California when the season there opens, but the pos sibility exists that the run there may also prove to be disap pointing. Reports from California are to the effect that canners in Central California had firm orders in hand for export for over 600,000 cases of canned fish which they were unable to fill and that such orders have perforce been cancelled. Many orders have been transferred to packers in Southern California who, however, have refused to accept them on a firm price basis and will only book orders subject to pack and subject to price in effect at the time they are available. Substantially increased prices are anticipated, particularly if the run of fish in Southern California is lighter than usual. As stated in this column at the end of August, it was **■ anticipated that quotas for flour imports corre sponding to the month of August would be issued by PRATRA on September 15. PRATRA made plans to issue import licenses at that time, allotting the quotas almost entirely to Filipino importers, mostly new importers. The Chinese Flour Importers Association, on the ground that the Import Control Act definitely specifies A Move In The Right Direction— with lamps GENERAL ELECTRIC (P.1.1, INC. PORT AREA MANILA A Product of General Electric Co., U.S.A. October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 387 that- 70% of imports, are to be given to old importers on the basis of their historical record, secured an injunc tion in the Court of First Instance against PRATRA is suing flour quotas or import licenses unless these were issued in accordance with the Import Control Act,—namely, 70% to old importers. Accordingly, PRATRA did not allot any flour quotas or issue any flour import licenses. It did, however, place orders for approximately 500,000 bags of flour for prompt shipment to PRATRA, viewing this step as necessary to avoid a flour shortage in the Philip pines. In order to avoid conflict with the terms of the injunction, PRATRA stated that the flour purchased for shipment to itself comprised 30% each of the August, September, and October quotas and 10% of the November quota. It is to be hoped that a prompt decision of the Court as to whether the injunction is to be made permanent or not, will be arrived at shortly so as not to hold up any longer than necessary flour imports into this country. The Philippines is very badly in need of flour. The large im portations made for account of PRATRA (orders placed last July) are entering into consumption rapidly. Davao stocks are completely exhausted and stocks in Iloilo and Cebu are very much depleted. In Manila probably at least half of the PRATRA July importations have already entered into consumption. Flour stocks remaining in the Philippines today will probably be exhausted around the end of October, certainly by the middle of November. The orders placed by PRATRA for its own account at the end of September will fill the gap here until the end of November or possibly the middle of December, but unless further imports of flour are arranged for by the end of October, a serious shortage of flour here during the month of December is inevitable. December and January are customarily the two months of heaviest flour consumption during the entire year. It is essential that import licenses for at least 750,000 bags of additional flour be issued by the end of October, otherwise the Philippines will be bare of flour stocks before the end of the year. SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. 17 Battery Place, New York KERR STEAMSHIP CO., INC. 350 California, S. F. SILVER JAVA PACIFIC LINE A msterd am /R ot t erdan FAST DEPENDABLE SERVICE PACIFIC NORTHWEST I CALIFORNIA PORTS DIRECT TO DIRECT TO MANILA ILOILO CEBU | MANILA ILOILO CEBU To CALCUTTA BOMBAY PERSIAN GULF PORTS CALCUTTA, COLOMBO, BOMBAY, PERSIAN GULF PORTS To MANILA PHILIPPINES Direct to Los Angeles, San Francisco, Portland, Seattle, Vancouver 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 Tel. 2-96-41 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 IMPORTERS EXPORTERS Textiles By L. W. Wirth General Manager, Neuss, Hesslein Co., Inc. ARRIVALS of textiles from the United States during August were about 2800 packages of cotton piece goods and 1100 packages of rayon piece goods. Arri vals of textiles, including made-up goods, from Japan were 300 packages, and from China 2700 packages. While a limited number of licenses were given out by the Import Control Office during August and September for manufacturers, very few, if any, were given to regular SWAM, CULBERTSON & FRITZ, INC. Keep Your Costs Down — Use Pasig River Bodegas GENERAL BONDED WATERFRONT WAREHOUSES Accessible by WATER or LAND Low Storage and Insurance Rates MEMBER-MANILA STOCK EXCHANGE Lighterage Service 701 S. J. WILSON BLDG. 143 JUAN LUNA TELS. j 2-74-55 I 2-80-53 145 M. de Binondo Tel. 2-63-10 388 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 requirements to the average diet. Manufactured in the United States and Repacked by BOIE-WATSONAL LABORATORIES BOIE-WATSONAL MULTIPLE VITAMINS And Mineral Capsules —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. At all Leading Drug Stores throughout the Islands Philippine American Drug Co. (BOTICA BOIE) On the Escolta, Manila ' CEBU ILOILO LEGASPI DAVAO COSTS Capacil M lo JO Uuuk and trolley types. LOWER YOUR YALE If your lifting methods are costing you "muscle money”—those needless costs that go with time stealing, effort-consuming hoisting operations, inves tigate the Yale Spur Geared Hoist. This star performer of all hand hoists is a modern lifting tool that saves you money. Ask for complete information. importers who still are waiting for licenses to be issued co vering the period of September to December, 1950. The continued dc-iay in the issuance of licenses for the past several months has caused a serious shortage in the local supply of practically all types of cotton as well as rayon piece goods, with the result that the local selling prices during the past month have advanced 15 to 25$'^,. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda THE official list of bills passed at the last special session of Congress with dates of effectivity are as follows: Republic Act 564 (H.B. 839), effective August 11, 1950, increases the tax on agents of foreign insurance companies not authorized to do business in the Philippines to twice the amount fixed in section 255 of the Internal Revenue Code, and the tax on owners of property who obtain insurance directly from foreign insurance companies is increased to 3% of the premiums paid. Republic Act 565 (H.B. 841), effective August 11, 1950, increases the taxes on radio sets, requires registration with the Collector of In ternal Revenue, notice of change of address, and requires the dealer to register the radio and pay the fees for the first year, which he is entitled to collect from the purchaser. •Republic Act 566 (H.B. 814), effective August 31, 1950, exempts from taxation bonds, certificates, and other evidence of indebtedness, and interest payable thereon, issued by the Government for economic rehabilitation under Republic Act 266. Republic Act 567 (H.B. 868), effective August 31, 1950, in creases the stamp taxes on original issue of stock certificates to 50i for each 9200; to 10£ for each 9200 on transfers; to 30 f on warehouse receipts; 50i. on each 920 on receipts issued by hotels and lodging houses; on passage tickets, not over 960, 97.50; over 960 but not more than 9120, 912; over 9120 but not over 9250, tl5; over 9250 but not over 9500, 930; over 9500 but not over 91,000, 950; over 91,000, 9100. (The Collector has ruled that this tax is due for each person covered by the ticket.) On mortgages, pledges, etc. over 91,000 but not over 93,000, the stamp tax is increased to 91.50, and 91.50 on each additional 93,000; on transfers of realty, net consideration over 9250 but not over 91,000, 75i, and on each additional 91,000, 93.* Republic Act 568 (H.B. 902), effective August 31, 1950, increases to P5 the stamp tax on transfer of large cattle. Republic Act 569 (H.B. 1141), effective August 31, 1950, provides for reciprocal affixing of stamps on tobacco (including cigars) or snuff in country of manufacture. Republic Act 570 (H.B. 1363), effective August 31, 1950, provides for a period of 5 years, refund of 50% of specific tax on oils used in aviation. This refund is not available to a foreign citizen or entity unless the foreign country grants equivalent exemption or refund. Republic Act 571 (H.B. 883), effective September 5, 1950, amends the Philippine Tariff Act by increasing the duty on gasoline, naphtha, etc. to 50 f per 100 kilos, and in any event not less than 20% ad valorem. Republic Act 572 (H.B. 1334), effective September 5, 1950, * Italic are the Editor's. MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES THE Elffllllll .1. Mill, I®«1 1450 Arlegui Street, Tel. 3-21-21 230 13th St., Port Area Tel. 3-36-21 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 389 provides for an import license fee of 1% of the amount authorized in the license and is applicable to ex-quota items. It also ratifies all license fees heretofore collected. Republic Act 573 (H.B. 1400), effective September 7, 1950, pro vides for the expeditionary force for service in Korea. Republic Act 574 (H.B. 842), effective September 8, 1950, pro vides that horse-race tickets shall bear a 12f* stamp. Republic Act 575 (H.B. 1393), effective September 8, 1950, is the additional Government Appropriation Act. Republic Act 576 (H.B. 1402), effective September 8, 1950, ap propriates additional funds for the Armed Forces. Republic Act 577 (H.B. 1283), effective September 12, 1950, pro vides school benefits for veterans. Republic Act 578 (S.B. 176), effective September 15, 1950, extends the period for registration of aliens 120 days from date of approval of this act. Republic Act 579 (H.B. 866), effective September 15, 1950, in creases the estate, inheritance, and gift taxes. Republic Act 580 (H.B. 1323), effective September 15, 1950, creates the Home Financing Commission, which is empowered to insure lending institutions against loss up to 10% of amounts loaned for repair, con struction, and improvement of business, agricultural, and residential structures. Republic Act 581 (H.B. 1369), effective September 15,1950, amends the powers of the Pension Board. Republic Act'582 (H.B. 322), effective September 18, 1950, au thorizes the President to make disbursements from the Sugar Stabiliza tion Fund for research on sugar production and for operation of ex perimental stations. It also provides for an economic survey. (Mill, landowner, and planter). Republic Act 583 (H.B. 372), effective September 18, 1950, consti tutes a small farmers revolving cooperative loan fund to assist small farmers and farm tenants. Republic Act 584 (H.B. 1146), effective September 18,1950, amends the law relating to operation of radio stations, radio receivers and trans mitters, and combination transmitter receivers, possession, transfer, and operation of which must be approved by the Secretary of Com merce. Republic Act 585 (H.B. 1340), effective September 18,1950, amends the requirements for the production of residence certificates by making more specific the reference to salaries and wqges. Republic Act 586 (H.B. 840), effective September 22, 1950, requires deduction and withholding from dividends on a winning jai alai ticket of a tax of 2-1/2% of the amount of the winning over and above the cost of the ticket. It also provides that admission fees or charges col lected by a charitable organization shall be subject to a tax at 50% of the regular amusement taxes, which on an admission charge of Pl or more is 30%. Republic Act 587 (H.B. 706), effective September 22, 1950, in creases the registration fees for motor vehicles. Republic Act 588 (H.B. 867), effective September 22, 1950, raises the basic sales tax from 5% to 7%; on luxury and semi luxury items the tax is raised to 50%, except that on automobiles the selling price of which is over 97000, the tax is 75%. On auto mobiles, the selling price of which does not exceed 95,000, and on refrigerators over 7 cubic feet, sporting goods, etc., the new tax is 30%. There are a few items taxed at 20%. The contractors tax which includes almost every conceivable kind of business is increased to 3%. Fixed taxes are increased on brewers, dis tillers, liquor dealers, dealers in soft drinks, and other lines of business. The percentage tax on brokers is raised to 6%. Republic Act 589 (H.B. 869), effective September 22, 1950, in creases the specific taxes on spirits, wines, fermented liquors, and cigar ettes. The tax on imported cigarettes of the type most popular will be P4 per carton. Republic Act 590 (H.B. 1127), effective September 22, 1950, is the new income tax which is applicable to income for 1950. It also provides for withholding from salaries and wages which will become effective with the first payroll in January, 1951. In the medium brackets the tax on husband and \yife is more than that presently imposed in the United States. The tax on corporate income is raised to 16% and the withholding tax on foreign corporations is 18%. Thewithholding tax on non-resident individuals is raised to 16% and the former proviso giving a non resident the benefit of the lower rates by filing the proper return has been eliminated in the new law. 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 ★ mizo sthu’ikikim; COMPANY, INC. 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 390 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 THE COLLINS COMPANY Established 1826 Incorporated 1934 COLLINSVILLE, CONNECTICUT Commonwealth Axes Dayton Pattern also Double Bit Patterns for swamping and falling The. Collins name on any axe is your guarantee of high quality Obtainable in all the leading Hardware stores everywhere Exclusive Agents CHAM SAMCO & SONS, INC. General Hardware 300-308 Sto. Cristo, Manila, P. O. Box 928 Telephones 2-81-72 & 2-8 L76 Private Exchange connecting all departments FOR BETTER SERVICE— Call 3-29-05 ALLIED BROKERAGE CORPOMTWS 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 Philippine Safety Council By Frank S. Tenny Executive Director THE organization of volunteer fire departments, both in Manila and the provinces, was discussed late last month at a meeting attended by ranking Manila City, fire, and safety leaders. The occasion was the show ing of the film, “Where’s the Fire?”, under the auspices of the Philippine Safety Council. Mayor Manuel de la Fuente revealed that he has already caused the organization of 52 volunteer citizen’s fire patrols within the city. Further training and advance ment of the VFD plan will begin with those units. The Fire Chiefs of Manila, Pasay City, Quezon City, and the U. S. Embassy were also present and heartily endorsed the idea. The film, obtained through the courtesy of the 20th Century-Fox Film Company and the Luzon Theaters, Inc., depicted the organization, functions, and training of a typical citizen’s fire group in the United States. Many of the procedures shown can be used here, according to the experts present. Further showings will be scheduled for VFD chiefs and municipal mayors. Asa means of consolidating the efforts of approximately **•17 organizations concerned with one or more phases of safety, and to provide a method of granting public recognition to outstanding safety work, the Philippine Safety Council is formulating an Annual Achievement Award plan throughout the Philippines. The several organizations will be grouped into different categories such as traffic safety, fire prevention, accident prevention, industrial safety, and security matters. Further subdivisions may be necessary in the fields of government safety groups, industrial and commercial units, military establishments, and civic organizations. Annual prizes will be awarded to the outstanding safety accomplishment in its category for the year. The national safety movement in the Philippines has progressed to the point where many groups and individuals are devoting much unselfish effort toward public safety on a daily basis. The Safety Council, as the primary and original national safety organization, desires to coordinate these plans so as to make them more efficient and effective. The awarding of prizes is intended to stimulate activity in this regard. Among the groups expected to participate in the competition are: Fire Prevention Board Rotary Clubs Lion’s Clubs Bureau of Industrial Safety Traffic Division of the M.P.D. Philippine Air Lines Philippine Society of Safety Engineers Philippine National Red Cross Mine Operators Safety Association Philippine Motor Association Philippine and United States Military Establishments San Miguel Brewery Manila Fire Department Manila Electric Company Boy Scouts of the Philippines and others. For DRUGS and TOILETRIES Shop at YUCUANSEH DRUG CO.. INC. “ Your favorite Druggists” 436 Dasmarinas, Manila Free delivery, Call Tel. 2-71-19 October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 391 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO 1949 (1941 = 100) Bureau of the Census and Statistics Manila 1946 I A" Food (59.15) (B.TT) Cloth ing (0.62) Fuel, Light and Water (13.94) Miscel laneous (17.86) ingl^wer 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............... . 552.7 704.3 236.4 598.9i 341.3 364.6 .1809 August......... . 477.9 590.0 236.4 384.7 320.9 346.3 .2092 September. . . 477.9 591.3 236.4 378.7 314.5 347.2 .2092 October........ . 487.4 587.2 236.4 382.7 405.8 342.7 .2052 November... . 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December... . 461.9 570.8 236.4 371.9 344.7 302.1 .2165 1947- (100.00) (63.43) (11.96) (2.04) (7.73) (14.48) January........ . 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February... . . 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March........... . 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April............. . 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May.............. . 381 0 404.4 453.9 250.9 325.4 269.4 .2625 June.............. . 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July............... . 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August......... . 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September. . . 368 9 392.1 453.9 216.4 283.3 266.8 .2711 October........ . 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November... . 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December.:. . 371.9 395.8 453.9 219.1 298.2 262.9 .2689 1948 January........ . 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February.... . 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March........... . 349.4 361.0 453.9 214.6 , 308.1 255.9 .2862. April............. . 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May.............. . 349.8 360.2 453.9 214.2 289.7 271.6 .2859 June.............. . 354.3 370.4 453.9 205.2 283.2 262.9 .2823 July............... . 356.4 374.2 453.9 201.3 281.6 262.4 .2806 August......... . 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September. . . 370.6 397.2 453.9 199.2 279.6 260.6 .2698 October........ . 374.9 404.0 453.9 204.8 283.2 257.9 .2668 November... . 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December... . 365.9 389.9 453.9 202.0 282.4 258.9 .2732 1949 January........ . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February.... . 343.8 355.5 453.9 203 0 277.5 258.9 .2909 March........... . 346.3 358.2 453.9 202.0 276.3 258.5 .2896 April............. . 348.7 362.6 453.9 197.6 287.5 257.1 .2868 May.............. . 348.8 362.8 453.9 197.2 287.5 257.1 .2867 June.............. . 349.0 362.9 453.9 203.9 287.5 257.2 .2865 July............... . 351.7 374.0 453.9 194.2 265.8 240.5 .2844 August......... . 337.5 351.2 453.9 196.3 266.6 241.2 .2963 September. . . 333.6 345.1 453.9 190.3 264.8 243.1 .2998 October . .. . . 332.9 343 3 453 9 199.9 264.8 245.0 .3004 November... . 339 6 356.1 453 9 191.1 258.4 239.8 .2945 December . . . 329 6 335.9 453.9 202 9 259.5 256.2 .3035 1950 January ____. 332 3 336.8 453 9 238.0 253.1 269.3 .3010 February . . . . 336.9 340.2 453.9 233.3 257.8 284.1 .2969 March........... . 339.0 341.4 453.9 236.7 257.8 292.6 . 2950 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 August.......... . 334 4 325 9 453 9 258.7 251.1 328.4 .2990 September . . . 341 3 335 0 453 9 317.4 252.5 327.5 .2930 1 Average number ol persons in a family = 4.9 members. 2 Revised in accordance with the new survey on the "Levels of Living, in Manila" by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. CHRYSLER CORPORATION . AIRTEMP packaged Air Conditioning and Refrigeration Exclusive Distributors: W. A. CHITTICK & CO., INC. Soles and Service 31 Romero Salas, Manila FERTILIZERS SULPHATE OF AMMONIA SUPERPHOSPHATES SULPHATE OF POTASH MENZI & CO., INC. Iloilo MANILA Cebu J. M. MENZI Bldg. Corner Reina Regente & Soler Streets Tel. 2-79-29 POWER LN ANY LANGUAGE The leadership of "CATERPILLAR" Products knows no geographical boundaries. you'll find them on the jobs in the Bolivian jungles, logging mahogany; in the Arabian desert, powering oil drill rigs,- in Pennsylvania, building highways,- or in the Philippines, plowing fields. When you think of the world's work, think of the big yellow machines that do so much of it. CATERPILLAR DIESEL ENGINES • MOTOR GRADERS TRACTORS • EARTHMOVING EQUIPMENT i—KOPPEL—> (PHILIPPINES) BOSTON & S3RD STREETS | N C ■ PORT AREA * TEL- 3’37-53 Branches: . Bacolod * Iloilo * Cebu * Davao • Cotabato * Zamboanga 7 392 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 LBC WAREHOUSING IS (HEW ¥ Why maintain a ware house, pay rent, person nel and all the attendant operating expenses, when Luzon Brokerage Co. offers General, Bonded and Field Warehousing at reasonable cost? * Consult LBC. We may solve your warehousing problem. Telephone 3-34-31 The ----“LET YOUR HAIR DOWN” -— ■ ■ --- Column WE sent Fred Mangahas, private secretary to President Quirino, a press proof of the editorial in last month’s issue of the Journal on the “vigilance committees” proposed by the President, now called barangays, and Mr. Mangahas wrote us the following acknowledgement addressed to the editor: “I am sorry not to have been able to acknowledge earlier the clipping of the editorial in the Journal which I submitted to the President immediately on receipt of it. He is very pleased with the editorial for the strong endorsement it gives to the project of organizing the people for more effective resistance to the basic threat to internal security. I hope you are doing very well. Sincerely, etc.” From an officer of the Board of Governors of the Federal Reserve System, Washington, D. C., we re ceived the following inquiry addres sed to the Chamber: “We should be interested in securing regularly for our Library the American Chamber of Commerce Journal, which you publish. If you would have need for our monthly Federal Reserve Bulletin, we should be glad to send it on an exchange basis. A sample copy of the August issue is being sent you under separate cover. If an exchange arrangement is agreeable, you may address your publication to the Library, Board of Governors of the Federal Reserve System. Very truly yours, etc.” Mrs. Willimont, our puisant Ex ecutive Vice-President, received a grateful note the other day from a prominent member of the Board of Directors of the Chamber of Com merce of the Philippines, which note also contains a lesson for our govern ment and business personnel. It read: “Dear Mrs. Willimont, “On one or two occasions I found it neces sary to call your office to request information regarding the whereabouts of certain Amer ican residents. I wish by this letter to ex press to you my appreciation of your un failing courtesy and willingness to help. If only some of our government and business offices would be as cordial and courteous as you have always been in talking to people over the telephone, this would be a happier world to live in. “Sincerely yours, (Name withheld by the editor)” Of course, Mrs. Willimont is one in a thousand, or a hundred thou sand. We have always admired her for her easy and natural manner of using the telephone. She is a whiz at it. She is never at loss for a num ber, and seems always to get her “party”. Every time you glance her way, you see her either telephon ing or answering the telephone, un ruffled, perfectly calm, speaking in such a low tone that you can’t hear her a foot away, yet never having to repeat herself, always in full com mand of the instrument and the situa tion. To us, the telephone has al ways been a nuisance and a menace. We put off making a desperately necessary call as long as possible, have trouble finding names and num bers, have to write the numbers down, get the “busy” signal, mislay the slip of paper with the number on it, have to do it all over again, and by the time we get our “party” we are perturbed, angry, exhausted, and have forgotten who it was we wanted to talk to and when we hear an impatient, “This is So-and-so. What is it you want?” we get so rattled that everything we wanted to say slips out of our mind and the best thing we can think of to do is to preserve a mysterious silence and slowly and softly hang up. When someone calls us up, we don’t catch the name, ask the caller to repeat it please, still get it wrong, but say, “Oh, yes, how are you?” Then we listen strainedly, trying to make out what the man is talking about, perhaps we finally get the drift, but usually not, and end up by saying recklessly that everything is understood and will be attended to. And we hang up dazed and feeling like a perfect fool. '-pH e papers made no reminiscent mention of it, but on the 21st of last month, in the Chamber coffee room, members talked of that same day, six years ago, when the first Amer ican planes bombed Japanese mili tary objectives in Manila. According to a contemporary ac count : “Early Thursday morning, September 21, the Japanese had again begun their anti aircraft firing practice very early in the morning, around 5 o’clock, and during and after breakfast there were 8 or 10 Japanese planes cruising about and maneuvering in the air, the Camp [Santo Tomas] paying very little attention to this. One wife said to her husband, ‘You’d laugh if they were our planes, wouldn’t you?’ “At 9:30 one plane was flying around drawing a target behind it, and in the direc tion of Nichols’ Field, 5 or 6 planes were engaged in a ‘dog-fight’. Puffs of smoke near them showed that they were firing or being fired at. ‘That’s rather dangerous practice, I should say,’ said one internee to a friend. A few moments later, the latter exclaimed, ‘That’s a real fight! That plane is on fire!’ “Simultaneously, people in other parts of the Camp suddenly saw a large number of planes, estimated at around 70, coming October, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 393 EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U.S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf PQits—Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarinas St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) ONE calculator for EVERYTHING The NEW FRIDEN fully Automatic calculator pro duces perfect answers to every type of figure-work problem, in every type of business. AsA; for o demonetration today. FRIDEN sMimBEu^cbarDi TRADE AND COMMERCE BLDG MANILA Tel. 2-69-71 out of a cloud bank to the northeast in a beautiful formation, some of them already overhead and flying quite low, and others in tiers above them, in groups of threes, with numbers of smaller planes darting from side to side above and below. To the northwest another large group appeared over the Bay. Almost immediately, the planes overhead broke into smaller groups, some heading to the north for the Grace Park airfield, the larger number to the east and southwest for the Zablan, Nielson, and Nichols fields. Heavy anti-aircraft fire now broke out, but as if entirely indifferent to this, the planes began diving among the smoke-rings and through the more deadly but invisible shrapnel, apparently both strafing and bombing. As the ground-fire started and the bombs began to fall, people in the Camp ran for shelter. Not until then did the air-raid siren sound. The Japanese had been taken completely by surprise. The Japanese planes in the air were either shot down or were seen to make their escape by flying away low over the roofs of the houses. A Japanese transport plane which at the time ran into the battle unawares was also said to have been shot down. For 15 minutes the air was full of the sound of machine-gunning and the distant thudding of bombs, the puffing of the pompom guns, and the sharp whine of shells from the anti aircraft cannon. Columns of smoke shot up over the various airfields and over the Port Area and the Bay. “An excited crowd of internees jammed the lobby of the Main Building. ‘They are herel They are herel’ There were smiles on every face and tears of joy. Women embraced each other. The internee guards had a hard time in getting people who wanted to see the bombing to stand away from the doorway, but when a machine-gun bullet (later found to be Japanese) dug a 6-inch hole in the asphalt near the door, their task became somewhat easier. “Shortly after the attack began, three Japanese soldiers came into the Building to go up in the tower. They carried their rifles and red and white signalling flags. The people caught in their shanties took refuge under beds and mattresses and behind chests and pieces of furniture. It was said that one plane, before anything had started, flew low over Santo Tomas and dipped its wings in salute, rolling over from side to side several times. An Englishman said that the British called this maneuver the ‘victory roll’. The blessed emblem of the white star on a blue field was plainly visible. It was reported later that guards on the walls fired their rifles at the plane. It was also said that the first wave of planes had been seen to drop leaflets over Manila, probably advising Manila citizens to stay away from military objectives. “At around 10 o’clock, another wave of planes came over, and there was heavy firing right overhead. A little later the room and building' monitors were asked over the loudspeaker to report the names of children who had taken refuge in buildings and rooms to which they did not belong, and from time to time after that the names and whereabouts of the children were given so that their parents would be assured of their safety. At 10:30 there was considerable firing and around 11 there was again heavy bombing and firing. From somewhere nearby, a sharp cannon explosion came at 11:24, and this proved to be the last. The raid had lasted nearly two hours. “At 12:10 it was announced over the loudspeakers that though the all-clear had not yet been sounded, people might return by the most direct routes to their own build ings and shanties, and at 12:30 a lunch con sisting only of a little-fish gravy and a toasted piece of rice-bread like a hard-tack biscuit was served, not at the regular food-lines, 0. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS—AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE IVARAN LINES—FAR EAST SERVICE (Holler-Sorensen—Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE & YOUNG New York V. MULLER Kobenhavn, Denmark Head Office: 5TH FL., INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 2-96-17 Branch Officer: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUGARCRAFT" all offices Republic of the Philippines Department of Public Works and CommuniBUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, A. V. H. Hartendorp. editor and manager of the American Chamber of Commerce Journal, published monthly in English at the Office of the American Cham ber of Commerce of the Philippines, Manila, after having been duly sworn in accordance with law, hereby submits the following state ment of ownership, management, circulation, etc., which is required by Act No. 2580, as amended by Commonwealth Act No. 201: Editor, A. V. H Hartendorp, 404 El Hogar Filipino Building, Manila Business Manager, A. V. H. Hartendorp 404 El Hogar Filipino Building, Manila Owner, American Chamber of Commerce of the Philippines 404 El Hogar Filipino Building, Manila Publisher, American Chamber of Commerce of the Philippines 404 El Hogar Filipino Building, Manila Printer, McCullough Printing Company 1104 Castillejos, Manila Stockholders owning one per cent or more of the total amount of stocks: None. Bondholders, mortgagees, or other security holders owning one per cent or more of the total amount of security: None. Total number of copies printed and circu lated of the last issue, dated October, 1950: Sent to paid subscribers........................... 800 Sent to other than paid subscribers. .. . 1200 Total............................... 2000 (Sgd.) A. V. H. Hartendorp Editor and Manager Subscribed and sworn to before me this 20th day of Sept., 1950, at Manila, the affiant exhibiting his Residence Certificate No. A-63739, issued at Manila on January 16, 1950. Emilio V. Salas Notary Public Until December 31, 1950 Doc. No. 239; page 90; Book No. Ill; series of 1950. 394 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1950 but in the different buildings. It had been possible to do only very little cooking, as the gas had been turned off in the city and the cooking had to be done over the emergency wood-stoves under the dining-shed. Electric current was also off for several hours. Water pressure was so low that water had to be obtained from a few outside hydrants and the emergency wells. Water for the toilets had to be carried up in buckets. The emergency squad and volunteers were called to connect up the water in the swimming pool and to run hoses from the roof-tanks to the outside kitchen, the Commandant having granted permission for this. “Although considerable shrapnel had fal len over the Camp, no serious casualties were reported. Dr. Fletcher was just com pleting an emergency abdominal operation in the camp hospital when the bombs began to fall. The patient, a woman, had always said that on the day of the first bombing she would open a hoarded can of meat to celebrate the event with the family, but as it happened, she was under ether through the whole of it. “Was this, internees asked each other, only a sporadic raid of planes from a cruising group of aircraft-carriers somewhere off the coast? Was this sudden attack to be followed by more days and weeks, months, perhaps, of waiting, now suddenly made so much more unbearable? “At 2:50 in the afternoon, planes were again heard, and a few minutes later they appeared, in two groups of 60 or more each, one approaching from the northeast and the other from the northwest. The cloud ceiling was high and the planes were flying higher than that morning. The down-town sirens again sounded late, and over the camp loudspeakers people were warned to take cover immediately just before the bombing and shooting started once more. Despite the anti-aircraft fire, the squadrons ap peared to move very deliberately, though swiftly, and they were seen to dive headlong over the Manila North Harbor and the Pandacan oil district. The planes went into their dives, one after the other, like a cascade of steel and death, climbing up again rapidly and making giant ‘V’s’ against the horizon to the south. “Another group of planes,—around 30 could be counted, came into sight a little after 3 o’clock and worked their havoc. Some 60 more came over from a northernly direc tion at 3:30. Two American planes ap parently coming from the water-front area were seen darting northward just over the housetops as the anti-aircraft fire went over them. There was a loud explosion from the Bay at 4:15; probably some ship, previously set afire, had blown up. What proved to be the last attack came from some 60 or more planes which appeared at 4:30 and split up, some flying in the direction of the Bay and others toward Quezon City and Camp Mur phy to the east. At 4:40 large clouds of smoke were rising once more from the Bay and from the North Harbor area. One plane was seen apparently diving into a column of smoke. When it came up again, it was on fire, lost speed and altitude, and disappeared from sight. This was the first apparent American casualty seen in the Camp. “Sqpper was again served in the buildings, the internees this time getting a double portion of rice and some vegetable-meat gravy (very little meat). There was no tea, but boiled water was served after supper and until roll-call time at 7. Pressure in the water-mains had in the meantime been restored. “Despite the all-clear signal, which was sounded at 6, everyone except those on emer gency duty were ordered by the Command ant’s office to remain indoors after roll-call. This made for an uncomfortable evening in the dark, crowded halls and rooms, but the Camp was deliriously happy. “Although there had been no serious casualties in the Camp, there had been some narrow escapes. Two anti-aircraft shells had fallen in the campus, one exploding near a shanty. A 5-inch piece of shrapnel went through a window in the Annex and hit a mattress, slightly scratching the leg of a man lying underneath. Another man in a room on the ground floor of the Main Build ing, west side, also received a scratch on the leg from a piece of shrapnel. A man under his bed in a shanty was scratched on the arm. Not only had the American planes carefully avoided Santo Tomas, but the bombs had apparently fallen only in military areas, so that men in the Camp with families outside were not too greatly worried. “At 8:20 the whole western half of the sky was suddenly as bright as during a full moon, an awful sight, for there was no sound or any obvious explanation for it. Then, after 15 or 16 seconds of suspense, came the heaviest explosion of the day, which shook the Santo Tomas buildings. It was probably some war or ammunition ship that had gone up. “It was announced over the loudspeakers during the camp news-period that night that Gordon MacKay had been appointed chief of the camp order division, in place of Forrest who had resigned some weeks previously. Beliel ended the announcements by saying, instead of the usual ‘Good night’, ‘This is a good night!’... "A Scotsman going to bed sighed audibly and then said in a low voice, as if to himself, ‘Good night, boys. It’s been nice seeing you!’ A gem of understatement. Brunner selected for his song at reveille the next morning, ‘Pennies from heaven for you and for me’.” "Buy TSlational 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? 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AVAILABLE AT YOUR GOODRICH DEALERS GOODRICH 1JITEROT1IIHL It Ullin COMPANI Listen to the Bing Crosby CHESTERFIELD Show on Thursday and to the Arthur Godfrey CHES TERFIELD Program Saturday through Wednesday, both from 8:30 to 9:00 P. M. over Station DZPI.